SECTION 101.01. That sections 9.24, 9.981, 101.68, 102.02, 102.06, 108.05, 109.54, 109.57, 109.79, 109.91, 109.98, 117.10, 120.06, 120.13, 120.23, 120.52, 120.53, 121.37, 121.38, 122.011, 122.17, 122.171, 122.18, 122.40, 122.603, 122.71, 122.72, 122.73, 122.74, 122.75, 122.751, 122.76, 122.77, 122.78, 122.79, 122.82, 122.83, 122.95, 122.951, 123.01, 123.152, 123.17, 124.07, 124.321, 124.328, 125.041, 125.05, 125.11, 125.831, 125.832, 126.25, 127.16, 131.02, 131.23, 133.08, 133.081, 133.09, 140.01, 141.011, 141.04, 145.01, 145.33, 147.05, 147.10, 147.11, 147.12, 147.371, 149.30, 150.07, 150.10, 154.11, 173.26, 173.40, 173.99, 181.251, 181.51, 181.52, 181.54, 181.55, 181.56, 183.28, 184.02, 305.171, 307.37, 307.695, 307.86, 307.88, 317.08, 317.36, 319.20, 319.302, 321.24, 323.01, 323.152, 325.31, 329.04, 329.051, 339.72, 339.88, 340.03, 340.16, 351.01, 351.021, 351.06, 351.141, 351.16, 718.09, 718.10, 731.14, 731.141, 742.59, 901.43, 903.05, 905.32, 905.33, 905.331, 905.36, 905.37, 905.38, 905.381, 905.50, 905.501, 905.66, 907.16, 913.02, 913.23, 915.02, 915.16, 915.24, 921.02, 921.16, 923.44, 923.45, 923.46, 926.01, 927.69, 1111.04, 1327.511, 1502.02, 1509.06, 1509.072, 1509.31, 1515.14, 1517.02, 1521.062, 1531.27, 1533.10, 1533.11, 1533.111, 1533.112, 1533.12, 1533.32, 1541.03, 1548.06, 1707.01, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.261, 1707.431, 1707.44, 1707.46, 1711.52, 1711.53, 1713.03, 1751.03, 1751.04, 1751.05, 1901.26, 1901.31, 1907.24, 2113.041, 2117.061, 2151.352, 2151.416, 2152.43, 2152.74, 2303.201, 2305.234, 2329.66, 2743.191, 2744.05, 2744.08, 2901.07, 2913.40, 2921.13, 2923.25, 2923.35, 2923.46, 2925.44, 2933.43, 2933.74, 2949.092, 2971.05, 3107.10, 3111.04, 3119.54, 3121.12, 3121.50, 3125.18, 3301.079, 3301.0710, 3301.0711, 3301.0714, 3301.0715, 3301.12, 3301.16, 3301.311, 3301.32, 3301.56, 3301.86, 3301.88, 3302.03, 3313.207, 3313.208, 3313.209, 3313.489, 3313.975, 3313.976, 3313.977, 3313.978, 3313.98, 3314.013, 3314.015, 3314.02, 3314.021, 3314.03, 3314.031, 3314.032, 3314.06, 3314.074, 3314.08, 3314.13, 3315.17, 3315.18, 3315.37, 3316.06, 3316.16, 3317.01, 3317.013, 3317.02, 3317.021, 3317.022, 3317.023, 3317.024, 3317.026, 3317.027, 3317.028, 3317.029, 3317.0216, 3317.0217, 3317.03, 3317.031, 3317.05, 3317.052, 3317.053, 3317.06, 3317.063, 3317.07, 3317.081, 3317.09, 3317.10, 3317.16, 3317.20, 3317.21, 3317.22, 3317.23, 3317.50, 3317.51, 3318.091, 3318.33, 3319.081, 3319.17, 3319.22, 3319.235, 3319.55, 3323.021, 3323.091, 3323.14, 3323.16, 3327.01, 3332.092, 3333.04, 3333.044, 3333.12, 3333.121, 3333.27, 3333.28, 3333.36, 3333.38, 3334.01, 3334.02, 3334.03, 3334.07, 3334.08, 3334.09, 3334.10, 3334.11, 3334.12, 3334.15, 3334.16, 3334.17, 3334.18, 3334.19, 3335.02, 3345.10, 3345.19, 3345.32, 3353.01, 3353.04, 3353.06, 3353.07, 3362.02, 3365.01, 3365.02, 3365.04, 3365.041, 3365.05, 3365.08, 3375.40, 3375.48, 3375.49, 3375.54, 3375.55, 3381.02, 3381.04, 3381.05, 3381.06, 3381.07, 3381.15, 3383.02, 3383.09, 3501.141, 3501.17, 3513.04, 3513.041, 3513.05, 3513.052, 3513.257, 3513.259, 3513.261, 3517.13, 3517.151, 3701.023, 3701.146, 3701.65, 3702.141, 3702.51, 3702.68, 3702.71, 3702.74, 3703.01, 3703.03, 3703.04, 3703.05, 3703.06, 3703.07, 3703.08, 3703.10, 3703.99, 3704.035, 3704.143, 3704.99, 3705.24, 3712.03, 3714.07, 3721.01, 3721.011, 3721.02, 3721.03, 3721.07, 3721.121, 3721.15, 3721.19, 3721.21, 3721.50, 3721.51, 3721.52, 3721.56, 3721.58, 3722.01, 3722.02, 3722.04, 3734.01, 3734.20, 3734.21, 3734.22, 3734.23, 3734.28, 3734.57, 3734.573, 3734.85, 3734.901, 3734.9010, 3735.27, 3743.01, 3743.02, 3743.04, 3743.05, 3743.06, 3743.15, 3743.17, 3743.18, 3743.19, 3743.57, 3743.59, 3743.65, 3743.75, 3745.11, 3745.12, 3746.04, 3746.071, 3748.07, 3748.13, 3773.34, 3773.38, 3773.39, 3773.40, 3773.57, 3781.07, 3781.10, 3781.102, 3793.09, 3901.021, 3901.17, 3901.3814, 3901.78, 3903.14, 3903.42, 3905.04, 3905.36, 3905.40, 3923.27, 4112.12, 4115.32, 4115.34, 4117.10, 4117.24, 4121.12, 4121.121, 4121.125, 4123.27, 4123.44, 4123.47, 4301.10, 4301.43, 4303.182, 4501.01, 4501.37, 4503.103, 4503.471, 4503.48, 4503.50, 4503.53, 4503.571, 4503.59, 4503.73, 4503.85, 4503.91, 4505.06, 4506.03, 4506.07, 4511.191, 4511.75, 4517.01, 4519.01, 4519.02, 4519.09, 4561.17, 4561.18, 4561.21, 4703.15, 4705.09, 4709.05, 4713.02, 4717.05, 4723.32, 4723.33, 4723.34, 4723.341, 4723.63, 4731.65, 4731.71, 4736.11, 4736.12, 4740.14, 4753.03, 4753.06, 4753.071, 4753.08, 4753.09, 4755.03, 4755.48, 4766.09, 4905.10, 4905.54, 4905.95, 4911.18, 4973.171, 5101.16, 5101.181, 5101.184, 5101.21, 5101.241, 5101.26, 5101.31, 5101.35, 5101.36, 5101.46, 5101.47, 5101.75, 5101.752, 5101.80, 5101.801, 5101.821, 5104.01, 5104.02, 5104.32, 5107.05, 5107.10, 5107.26, 5107.30, 5107.58, 5110.01, 5110.05, 5110.352, 5110.39, 5111.011, 5111.019, 5111.0112, 5111.02, 5111.021, 5111.022, 5111.023, 5111.025, 5111.042, 5111.06, 5111.082, 5111.11, 5111.111, 5111.113, 5111.16, 5111.17, 5111.19, 5111.20, 5111.204, 5111.21, 5111.22, 5111.221, 5111.23, 5111.231, 5111.235, 5111.241, 5111.25, 5111.251, 5111.255, 5111.257, 5111.26, 5111.261, 5111.263, 5111.264, 5111.27, 5111.28, 5111.29, 5111.291, 5111.30, 5111.31, 5111.32, 5111.33, 5111.62, 5111.81, 5111.85, 5111.87, 5111.871, 5111.88, 5111.97, 5111.99, 5112.03, 5112.08, 5112.17, 5112.30, 5112.31, 5115.20, 5115.22, 5115.23, 5119.61, 5120.09, 5120.51, 5121.01, 5121.02, 5121.03, 5121.04, 5121.05, 5121.06, 5121.061, 5121.07, 5121.08, 5121.09, 5121.10, 5121.11, 5121.12, 5121.21, 5122.03, 5122.31, 5123.01, 5123.045, 5123.046, 5123.047, 5123.049, 5123.0412, 5123.34, 5123.41, 5123.701, 5123.71, 5123.76, 5126.01, 5126.035, 5126.042, 5126.054, 5126.055, 5126.056, 5126.057, 5126.12, 5139.01, 5139.36, 5153.16, 5502.01, 5502.03, 5531.10, 5540.01, 5540.09, 5549.01, 5552.01, 5573.013, 5703.052, 5703.053, 5703.47, 5703.50, 5703.70, 5703.80, 5705.091, 5705.391, 5705.40, 5709.07, 5709.12, 5709.121, 5709.40, 5709.73, 5709.77, 5709.78, 5711.01, 5711.16, 5711.21, 5711.22, 5711.28, 5713.01, 5715.01, 5715.24, 5719.041, 5725.01, 5725.19, 5727.01, 5727.02, 5727.06, 5727.08, 5727.10, 5727.11, 5727.111, 5727.12, 5727.23, 5727.84, 5727.85, 5728.01, 5728.02, 5728.03, 5728.04, 5728.06, 5728.08, 5729.08, 5731.01, 5731.05, 5731.131, 5731.14, 5731.18, 5731.181, 5731.22, 5731.23, 5731.39, 5731.41, 5733.01, 5733.065, 5733.066, 5733.33, 5733.351, 5733.352, 5733.40, 5733.41, 5733.49, 5733.98, 5737.03, 5739.01, 5739.02, 5739.025, 5739.03, 5739.033, 5739.034, 5739.035, 5739.08, 5739.09, 5739.10, 5739.12, 5739.16, 5739.17, 5741.02, 5741.16, 5743.01, 5743.02, 5743.03, 5743.05, 5743.071, 5743.08, 5743.10, 5743.111, 5743.112, 5743.14, 5743.15, 5743.16, 5743.18, 5743.19, 5743.20, 5743.32, 5743.33, 5747.01, 5747.012, 5747.02, 5747.05, 5747.08, 5747.113, 5747.212, 5747.331, 5747.70, 5747.80, 5747.98, 5748.01, 5748.02, 5748.03, 5748.04, 5748.08, 5749.02, 5907.15, 5919.33, 5920.01, 6109.21, 6121.04, and 6123.04 be amended; that sections 9.833, 9.90, 3311.19, 3313.12, 3313.202, 3313.33, 4117.03, and 4117.08 be contingently amended; that sections 181.251 (5502.63), 181.51 (5502.61), 181.52 (5502.62), 181.54 (5502.64), 181.55 (5502.65), 181.56 (5502.66), 3314.031 (3314.21), 3314.032 (3314.22), 3314.034 (3314.24), 3317.21 (3318.47), 3317.22 (3318.48), 3317.23 (3318.49), 4723.63 (4723.91), 5101.75 (173.42), 5101.752 (173.43), 5111.02 (5111.021), 5111.021 (5111.022), 5111.022 (5111.023), 5111.023 (5111.0115), 5111.112 (5111.113), 5111.113 (5111.114), 5111.231 (5111.232), 5111.257, (5111.258), 5111.81 (5111.085), 5111.88 (5111.97), 5111.97 (5111.86), 5121.01 (5121.02), 5121.02 (5121.03), and 5121.03 (5121.01) be amended for the purpose of adopting new section numbers as indicated in parentheses; that Section 41.36 of Am. Sub. H.B. 95 of the 125th General Assembly be amended and that Section 41.36 of Am. Sub. H.B. 95 of the 125th General Assembly be amended for the purpose of codifying it as section 3323.19 of the Revised Code; that new sections 3317.012, 3353.02, 3353.03, 3704.14, 4723.63, 5111.02, 5111.112, 5111.231, 5111.24, 5111.257, 5111.34, 5111.88, and 5123.048 and sections 9.23, 9.231, 9.232, 9.233, 9.234, 9.235, 9.236, 9.237, 9.238, 9.239, 9.241, 101.391, 103.132, 109.579, 109.981, 120.07, 120.36, 121.373, 121.381, 121.382, 121.403, 122.075, 122.083, 122.172, 122.173, 125.18, 125.25, 125.60, 125.601, 125.602, 125.603, 125.604, 125.605, 125.606, 125.607, 125.608, 125.609, 125.6010, 125.6011, 125.6012, 131.022, 153.02, 173.39, 173.391, 173.392, 173.393, 173.44, 173.45, 173.46, 173.47, 173.48, 173.49, 173.50, 305.28, 306.331, 307.676, 341.192, 901.44, 907.111, 1547.721, 1547.722, 1547.723, 1547.724, 1547.725, 1547.726, 1707.164, 1707.165, 1711.531, 1751.271, 2151.282, 2305.2341, 2307.65, 2744.082, 2913.401, 2927.023, 2949.093, 3125.191, 3302.10, 3310.01, 3310.02, 3310.03, 3310.04, 3310.05, 3310.06, 3310.07, 3310.08, 3310.09, 3310.10, 3310.13, 3310.14, 3310.16, 3310.17, 3311.11, 3313.6410, 3314.014, 3314.061, 3314.084, 3314.085, 3314.12, 3314.25, 3314.26, 3314.27, 3314.28, 3314.35, 3314.36, 3316.043, 3317.016, 3317.017, 3317.035, 3317.201, 3318.18, 3319.06, 3319.0810, 3319.172, 3323.20, 3323.30, 3323.31, 3323.32, 3323.33, 3324.10, 3325.10, 3325.11, 3325.12, 3325.15, 3325.16, 3325.17, 3333.047, 3333.122, 3333.123, 3333.162, 3354.25, 3365.11, 3701.073, 3702.83, 3704.144, 3705.242, 3714.073, 3715.04, 3721.032, 3721.541, 3721.561, 3745.015, 3745.114, 3770.061, 3781.191, 3903.421, 4115.36, 4117.103, 4121.126, 4121.127, 4121.128, 4123.441, 4123.444, 4123.445, 4506.101, 4506.161, 4723.61, 4723.62, 4723.621, 4723.64, 4723.65, 4723.651, 4723.652, 4723.66, 4723.67, 4723.68, 4723.69, 4766.14, 4905.261, 4911.021, 5101.07, 5101.071, 5101.163, 5101.244, 5101.461, 5101.802, 5101.803, 5101.93, 5101.98, 5107.301, 5111.0114, 5111.027, 5111.061, 5111.062, 5111.083, 5111.084, 5111.10, 5111.161, 5111.162, 5111.163, 5111.176, 5111.177, 5111.191, 5111.222, 5111.223, 5111.242, 5111.243, 5111.244, 5111.254, 5111.265, 5111.266, 5111.65, 5111.651, 5111.66, 5111.661, 5111.67, 5111.671, 5111.672, 5111.673, 5111.674, 5111.675, 5111.676, 5111.677, 5111.68, 5111.681, 5111.682, 5111.683, 5111.684, 5111.685, 5111.686, 5111.687, 5111.688, 5111.851, 5111.852, 5111.853, 5111.854, 5111.855, 5111.856, 5111.881, 5111.882, 5111.883, 5111.884, 5111.885, 5111.886, 5111.887, 5111.888, 5111.889, 5111.8810, 5111.8811, 5111.8812, 5111.89, 5111.891, 5111.892, 5111.893, 5111.914, 5111.915, 5111.971, 5111.98, 5112.341, 5121.30, 5121.31, 5121.32, 5121.33, 5121.34, 5121.35, 5121.36, 5121.37, 5121.38, 5121.40, 5121.41, 5121.42, 5121.43, 5121.44, 5121.45, 5121.46, 5121.47, 5121.48, 5121.49, 5121.50, 5121.51, 5121.52, 5121.53, 5121.54, 5121.55, 5121.56, 5123.16, 5703.057, 5705.211, 5707.031, 5709.112, 5725.32, 5727.031, 5727.241, 5729.032, 5739.012, 5739.36, 5743.031, 5743.072, 5743.331, 5743.71, 5747.056, 5751.01, 5751.011, 5751.012, 5751.013, 5751.02, 5751.03, 5751.031, 5751.032, 5751.033, 5751.04, 5751.05, 5751.051, 5751.06, 5751.07, 5751.08, 5751.081, 5751.09, 5751.10, 5751.11, 5751.12, 5751.20, 5751.21, 5751.22, 5751.23, 5751.31, 5751.50, 5751.51, 5751.52, 5751.53, 5751.98, 5751.99, 5919.31, 5919.341, 6111.30, 6111.31, and 6111.32 be enacted; and that section 9.901 of the Revised Code be enacted (certain of its phases contingently) to read as follows:

(A) "Allocable nondirect costs" means the amount of nondirect costs allocated as a result of actual expenditures on direct costs. "Allocable nondirect costs" shall be calculated as follows: direct costs actually incurred for the provision of services pursuant to a contract entered into under section 9.231 of the Revised Code divided by the minimum percentage of money that is to be expended on the recipient's direct costs, as specified in the contract, minus the direct costs actually incurred.

(B) "Contract payment earned" means payment pursuant to a contract entered into under section 9.231 of the Revised Code for direct costs actually incurred in performing the contract, up to the minimum percentage of money that is to be expended on the recipient's direct costs, as specified in the contract, plus allocable nondirect costs associated with those direct costs.

(C) "Direct costs" means the costs of providing services that directly benefit a patient, client, or the public and that are set forth in the contract entered into under section 9.231 of the Revised Code. "Direct costs" does not include the costs of any financial review or audit required under section 9.234 of the Revised Code.

(D)(1) "Governmental entity" means a state agency or a political subdivision of the state.

(2) "Contracting authority" of a governmental entity means the director or chief executive officer, in the case of a state agency, or the legislative authority, in the case of a political subdivision.

(E) "Minimum percentage of money that is to be expended on the recipient's direct costs" means the percentage of the total amount of the contract entered into under section 9.231 of the Revised Code that, at a minimum, has to be expended on the recipient's direct costs in performing the contract in order for the recipient to earn the total amount of the contract.

(F) "Political subdivision" means a county, township, municipal corporation, or any other body corporate and politic that is responsible for government activities in a geographic area smaller than that of the state.

(G) "Recipient" means a person that enters into a contract with a governmental entity under section 9.231 of the Revised Code.

(H) "State agency" means any organized body, office, agency, institution, or other entity established by the laws of the state for the exercise of any function of state government.

(I) A judgment is "uncollectible" if, at least ninety days after the judgment is obtained, the full amount of the judgment has not been collected and either a settlement agreement between the governmental entity and the recipient has not been entered into or a settlement agreement has been entered into but has not been materially complied with.

Sec. 9.231. (A)(1) Subject to divisions (A)(2) and (3) of this section, a governmental entity shall not disburse money totaling twenty-five thousand dollars or more to any person for the provision of services for the primary benefit of individuals or the public and not for the primary benefit of a governmental entity or the employees of a governmental entity, unless the contracting authority of the governmental entity first enters into a written contract with the person that is signed by the person or by an officer or agent of the person authorized to legally bind the person and that embodies all of the requirements and conditions set forth in sections 9.23 to 9.236 of the Revised Code. If the disbursement of money occurs over the course of a governmental entity's fiscal year, rather than in a lump sum, the contracting authority of the governmental entity shall enter into the written contract with the person at the point during the governmental entity's fiscal year that at least seventy-five thousand dollars has been disbursed by the governmental entity to the person. Thereafter, the contracting authority of the governmental entity shall enter into the written contract with the person at the beginning of the governmental entity's fiscal year, if, during the immediately preceding fiscal year, the governmental entity disbursed to that person an aggregate amount totaling at least seventy-five thousand dollars.

(2) If the money referred to in division (A)(1) of this section is disbursed by or through more than one state agency to the person for the provision of services to the same population, the contracting authorities of those agencies shall determine which one of them will enter into the written contract with the person.

(3) The requirements and conditions set forth in divisions (A), (B), (C), and (F) of section 9.232, divisions (A)(1) and (2) and (B) of section 9.234, divisions (A)(2) and (B) of section 9.235, and sections 9.233 and 9.236 of the Revised Code do not apply with respect to the following:

(i) The amount received for the services is a set fee for each time the services are provided, is determined in accordance with a fixed rate per unit of time or per service, or is a capitated rate, and the fee or rate is established by competitive bidding or by a market rate survey of similar services provided in a defined market area. The market rate survey may be one conducted by or on behalf of the governmental entity or an independent survey accepted by the governmental entity as statistically valid and reliable.

(ii) The services are provided in accordance with standards established by state or federal law, or by rules or regulations adopted thereunder, for their delivery, which standards are enforced by the federal government, a governmental entity, or an accrediting organization recognized by the federal government or a governmental entity.

(iii) Payment for the services is made after the services are delivered and upon submission to the governmental entity of an invoice or other claim for payment as required by any applicable local, state, or federal law or, if no such law applies, by the terms of the contract.

(b) Contracts under which the services are reimbursed through or in a manner consistent with a federal program that meets all of the following requirements:

(i) The program calculates the reimbursement rate on the basis of the previous year's experience or in accordance with an alternative method set forth in rules adopted by the Ohio department of job and family services.

(ii) The reimbursement rate is derived from a breakdown of direct and indirect costs.

(iii) The program's guidelines describe types of expenditures that are allowable and not allowable under the program and delineate which costs are acceptable as direct costs for purposes of calculating the reimbursement rate.

(iv) The program includes a uniform cost reporting system with specific audit requirements.

(c) Contracts under which the services are reimbursed through or in a manner consistent with a federal program that calculates the reimbursement rate on a fee for service basis in compliance with United States office of management and budget Circular A-87, as revised May 10, 2004.

(d) Contracts for services that are paid pursuant to the earmarking of an appropriation made by the general assembly for that purpose.

(B) Division (A) of this section does not apply if the money is disbursed to a person pursuant to a contract with the United States or a governmental entity under any of the following circumstances:

(1) The person receives the money directly or indirectly from the United States, and no governmental entity exercises any oversight or control over the use of the money.

(2) The person receives the money solely in return for the performance of one or more of the following types of services:

(a) Medical, therapeutic, or other health-related services provided by a person if the amount received is a set fee for each time the person provides the services, is determined in accordance with a fixed rate per unit of time, or is a capitated rate, and the fee or rate is reasonable and customary in the person's trade or profession;

(b) Medicaid-funded services, including administrative and management services, provided pursuant to a contract or medicaid provider agreement that meets the requirements of the medicaid program established under Chapter 5111. of the Revised Code.

(c) Services, other than administrative or management services or any of the services described in division (B)(2)(a) or (b) of this section, that are commonly purchased by the public at an hourly rate or at a set fee for each time the services are provided, unless the services are performed for the benefit of children, persons who are eligible for the services by reason of advanced age, medical condition, or financial need, or persons who are confined in a detention facility as defined in section 2921.01 of the Revised Code, and the services are intended to help promote the health, safety, or welfare of those children or persons;

(d) Educational services provided by a school to children eligible to attend that school. For purposes of division (B)(2)(d) of this section, "school" means any school operated by a school district board of education, any community school established under Chapter 3314. of the Revised Code, or any nonpublic school for which the state board of education prescribes minimum education standards under section 3301.07 of the Revised Code.

(e) Services provided by a foster home as defined in section 5103.02 of the Revised Code;

(f) "Routine business services other than administrative or management services," as that term is defined by the attorney general by rule adopted in accordance with Chapter 119. of the Revised Code;

(g) Services to protect the environment or promote environmental education that are provided by a nonprofit entity or services to protect the environment that are funded with federal grants or revolving loan funds and administered in accordance with federal law.

(3) The person receives the money solely in return for the performance of services intended to help preserve public health or safety under circumstances requiring immediate action as a result of a natural or man-made emergency.

(C) With respect to a nonprofit association, corporation, or organization established for the purpose of providing educational, technical, consulting, training, financial, or other services to its members in exchange for membership dues and other fees, any of the services provided to a member that is a governmental entity shall, for purposes of this section, be considered services "for the primary benefit of a governmental entity or the employees of a governmental entity."

Sec. 9.232. A contract entered into under section 9.231 of the Revised Code shall, at a minimum, set forth all of the following:

(A) The minimum percentage of money that is to be expended on the recipient's direct costs;

(C) If some of the recipient's obligations under the contract involve the performance of any of the types of services described in division (B)(2)(a), (c), or (f) of section 9.231 of the Revised Code, the name and telephone number of the individual designated by the governmental entity as the contact for obtaining approval of contract amounts for purposes of division (A)(2)(a)(ii) of section 9.235 of the Revised Code;

(D) The financial review and audit requirements established under section 9.234 of the Revised Code and by rules of the auditor of state adopted under section 9.238 of the Revised Code or, with respect to any contract described in division (A)(3) of section 9.231 of the Revised Code, any financial compliance requirements established for purposes of that contract;

(E) The provisions established by rules of the attorney general adopted under section 9.237 of the Revised Code;

(F) Permissible dispositions of money received by a recipient in excess of the contract payment earned, if the excess is not to be repaid to the governmental entity.

Sec. 9.233. (A) A recipient shall be entitled to the contract payment earned. In no event shall a recipient be entitled to more than the contract payment earned. A recipient shall repay any money received in excess of the contract payment earned to the governmental entity or, if a different disposition is provided for in the recipient's contract with the governmental entity, dispose of that money in accordance with the terms of the contract.

(B) In order to determine the contract payment earned, all financial books and records open to inspection pursuant to section 9.235 of the Revised Code shall be held to standards consistent with generally accepted accounting principles.

Sec. 9.234. (A) Unless otherwise explicitly provided in the Revised Code, a recipient shall do all of the following:

(1) With respect to any money received prior to the performance of the recipient's obligations under the contract entered into under section 9.231 of the Revised Code, and any money received in excess of the contract payment earned, keep current and accurate records of the receipt and use of the money in a manner consistent with the contract;

(2) With respect to any money received after the recipient has performed its obligations under the contract entered into under section 9.231 of the Revised Code, keep current and accurate records of the recipient's expenditures on direct costs;

(3) Annually provide the contracting authority of the governmental entity with a report that includes both of the following:

(a) (i) Subject to division (A)(3)(a)(ii) of this section, an audit report, if a financial audit is required by division (B)(3) of this section; a financial review, if a financial review is required by division (B)(2) of this section; a financial review, if a financial review is required by division (B)(1) of this section and is not waived; or financial statements, major categories of expenditure of the money, and a summary of the activities for which the recipient used the money.

(ii) With respect to any contract described in division (A)(3) of section 9.231 of the Revised Code, an audit report or financial review if the performance of a financial audit or review is a compliance requirement established for purposes of that contract.

(B) (1) A recipient that, pursuant to one or more contracts entered into under section 9.231 of the Revised Code, receives money totaling at least one hundred thousand dollars but less than three hundred thousand dollars in any fiscal year shall have a financial review performed for each fiscal year in which it receives that amount of money in accordance with the financial review standards of the American institute of certified public accountants. The financial review shall be performed by an independent public accounting firm. The financial review contract between the recipient and the firm shall provide that the state is an intended third-party beneficiary of the contract.

This financial review requirement may be waived, however, if the contracting authority of each governmental entity from which the recipient received money that fiscal year pursuant to a contract entered into under section 9.231 of the Revised Code agrees to the waiver.

(2) A recipient that, pursuant to one or more contracts entered into under section 9.231 of the Revised Code, receives money totaling at least three hundred thousand dollars but less than five hundred thousand dollars in any fiscal year shall have a financial review performed for each fiscal year in which it receives that amount of money in accordance with the financial review standards of the American institute of certified public accountants. The financial review shall be performed by an independent public accounting firm. The financial review contract between the recipient and the firm shall provide that the state is an intended third-party beneficiary of the contract.

(3) A recipient that, pursuant to one or more contracts entered into under section 9.231 of the Revised Code, receives money totaling five hundred thousand dollars or more in any fiscal year shall have a financial audit performed for each fiscal year in which it receives that amount of money according to generally accepted auditing standards by an independent public accounting firm. The engagement letter between the recipient and the firm shall provide that the state is an intended third-party beneficiary of the contract. The audit shall comply with rules adopted by the auditor of state under section 9.238 of the Revised Code. An audit performed pursuant to the federal "Single Audit Act of 1984," 98 Stat. 2327, 31 U.S.C. 7501 et seq., as amended, is sufficient if the state is an intended third-party beneficiary of the audit contract.

(C)(1) An audit conducted by the auditor of state pursuant to any other provision of the Revised Code is sufficient for purposes of division (B) of this section.

(2) A financial audit meeting the requirements of division (B)(3) of this section satisfies the financial review requirements of divisions (B)(1) and (2) of this section.

(3) The references in division (B) of this section to fiscal year mean the recipient's fiscal year.

(D) Nothing in this section shall be construed to limit in any way the authority of the auditor of state to conduct audits pursuant to any other provision of the Revised Code.

Sec. 9.235. (A)(1) Subject to division (A)(2) of this section, the financial books and records of a recipient, and the financial books and records of any person with which the recipient contracts for the performance of the recipient's obligations under the recipient's contract with the governmental entity, shall be open to inspection by the governmental entity and by the state from the time the recipient first applies for payment under the contract. If the recipient is paid before the performance of its obligations under the contract, the financial books and records of the recipient and of any person with which the recipient contracts for the performance of the recipient's obligations shall be open to inspection from the first anniversary of the payment or from any earlier date that the contract may provide.

(2) Division (A)(1) of this section does not apply to any person that contracts with the recipient solely for the performance of some of the recipient's obligations under the recipient's contract with the governmental entity that directly benefit the recipient's patients or clients, if either of the following applies:

(a) The services provided by the person are any of the types of services described in division (B)(2)(a), (c), or (f) of section 9.231 of the Revised Code and the full amount of the person's contract constitutes direct costs for the recipient and is reasonable and customary in the person's trade or profession. For purposes of division (A)(2)(a) of this section, the amount of the person's contract with the recipient shall be considered "reasonable and customary in the person's trade or profession" if any of the following applies:

(i) The amount is equal to or less than the maximum amount for those services specified in the recipient's contract with the governmental entity.

(ii) The amount was approved by the governmental entity after the recipient entered into the contract with the governmental entity.

(iii) A maximum amount for those services was specified in the recipient's contract with the governmental entity, the recipient's original contract with a person for the performance of those services was subsequently canceled or otherwise unfulfilled, the recipient entered into a replacement contract with another person, and the amount of that contract is not more than twenty-five per cent above the maximum amount for the services specified in the recipient's contract with the governmental entity.

(b) The services provided by the person are any of the types of services described in division (B)(2)(b), (d), or (e) of section 9.231 of the Revised Code.

(B)(1) Subject to division (B)(2) of this section, if a recipient contracts with another person for the performance of some or all of the recipient's obligations under the recipient's contract with the governmental entity, the recipient shall be entitled to claim spending by the other person as direct costs only to the extent the other person has spent money on direct costs in the performance of the recipient's obligations and only if the other person complies with all of the terms and conditions relating to the performance that the recipient is required to comply with under the contract with the governmental entity.

(2) The conditions set forth in division (B)(1) of this section do not apply with respect to any person described in division (A)(2) of this section.

(C)(1) Nothing in this section shall be construed as making any record of the receipt or expenditure of nonpublic money a public record for purposes of section 149.43 of the Revised Code.

(2) Division (C)(1) of this section does not limit in any way the authority of the auditor of state to conduct audits or other investigations when public money is commingled with nonpublic money.

Sec. 9.236. (A) A recipient is liable to repay to the governmental entity any money received in excess of the contract payment earned.

(B)(1) A governmental entity may bring a civil action for the recovery of money due to the governmental entity from a recipient under division (A) of this section. In such an action, any person with which the recipient has contracted for the performance of the recipient's material obligations to a group of beneficiaries under the recipient's contract with the governmental entity may be made a party defendant if the person is unable to demonstrate to the satisfaction of the governmental entity that the person has materially complied with the terms of the contract with the recipient. In such a case, the person may be made a party defendant and the governmental entity may obtain a judgment against the person in accordance with division (B)(2) of this section.

(2) If a governmental entity obtains a judgment against a recipient in a civil action brought under division (B)(1) of this section and the judgment is uncollectible, the governmental entity may recover from the person with which the recipient contracted an amount not exceeding the lesser of the following:

(b) The total amount received by the person from the recipient minus the total amount spent by the person on direct costs for services actually performed and retained by the person as allocable nondirect costs associated with those direct costs.

(C) If a governmental entity, pursuant to this section, obtains a judgment against a recipient or against a person with which the recipient contracted and that judgment debtor does not voluntarily pay the amount of the judgment, that judgment debtor shall be precluded from contracting with a governmental entity to the extent provided in divisions (A) and (B) of section 9.24 of the Revised Code for a debtor against whom a finding of recovery has been issued.

(D) In addition to other remedies provided in divisions (A) to (C) of this section, a governmental entity may void a contract between a recipient and another person for the performance by the other person of the recipient's obligations under the recipient's contract with the governmental entity to the extent that the other person has not yet performed its obligations under the contract or cannot demonstrate that the money it received was expended on direct costs or retained as allocable nondirect costs.

(E) If a recipient is liable to repay money to a governmental entity under this section and the judgment obtained by the governmental entity against the recipient is uncollectible, then in addition to other remedies provided in divisions (A) to (C) of this section, and after the governmental entity has obtained a judgment against any necessary third party, the governmental entity may void any of the following contracts:

(1) A contract made not more than one hundred eighty days before the judgment against the recipient became uncollectible between the recipient and a director, trustee, or officer of the recipient or a business in which a director, trustee, or officer of the recipient has a material financial interest, if either of the following applies:

(a) The recipient has paid substantial value for property received and the property can be returned to the other person. If the property has experienced only normal wear and tear, the person shall be liable to the governmental entity for the full amount the recipient paid for the property. Otherwise, the person shall be liable to the governmental entity only for the market value of the property.

(b) The person with which the recipient contracted has received money that the recipient obtained pursuant to the contract with the governmental entity and the money was not expended on direct costs or retained as allocable nondirect costs. In such a case, the governmental entity may void the contract to the extent the money was not expended on direct costs or retained as allocable nondirect costs, and the person shall be liable to the governmental entity for that amount.

(2) A contract made not more than one hundred eighty days before the judgment against the recipient became uncollectible between the recipient and an employee of the recipient or a business in which an employee of the recipient has a material financial interest, if the employee has direct knowledge of the use of the money that the recipient obtained pursuant to the contract with the governmental entity and either division (E)(1)(a) or (b) of this section applies;

(3) A contract between the recipient and another person pursuant to which the recipient has paid or agreed to pay money to the other person, to the extent that the other person has not yet performed its obligations under the contract;

(4) A contract made not more than one year before the judgment against the recipient became uncollectible between the recipient and a person other than the governmental entity if the other person has not given or agreed to give consideration of reasonable and substantial value for the consideration given by the recipient.

Sec. 9.237. The attorney general shall adopt rules in accordance with Chapter 119. of the Revised Code governing the terms of any contract entered into under section 9.231 of the Revised Code. The rules shall set forth all of the following:

(A) A definition of permissible components of direct costs, including a list of expenditures that may never be included in direct costs and a nonexclusive list of expenditures that may be included in direct costs pursuant to agreement of the parties;

(B) Permissible methods by which a recipient may keep records documenting direct costs and how long those records must be retained;

(D) Terms to be included in contracts between recipients and persons other than the governmental entity, including the notice of the remedies available to the governmental entity if the money under the contract with the governmental entity is not expended on direct costs or retained as allocable nondirect costs or, with respect to any contract described in division (A)(3) of section 9.231 of the Revised Code, is not earned under the terms of the contract with the governmental entity;

(E) Any other provisions that the attorney general considers necessary to carry out the purposes of sections 9.23 to 9.236 of the Revised Code.

Sec. 9.238. (A) The auditor of state shall prescribe a single form of the financial reviews required by divisions (B)(1) and (2) of section 9.234 of the Revised Code to be used for all governmental entities.

(B)The auditor of state may adopt rules in accordance with Chapter 119. of the Revised Code governing the form and content of the audit reports required by division (B)(3) of section 9.234 of the Revised Code and may prescribe a single form of the report to be used for all governmental entities. Upon request made by a recipient, the auditor of state shall, to the extent possible, require all governmental entities that have entered into a contract with that recipient under section 9.231 of the Revised Code to accept a particular audit report.

Sec. 9.239. (A) There is hereby created the government contracting advisory council. The attorney general and auditor of state shall consult with the council on the performance of their rule-making functions under sections 9.237 and 9.238 of the Revised Code and shall consider any recommendations of the council. The director of job and family services shall annually report to the council the cost methodology of the medicaid-funded services described in division (A)(3)(d) of section 9.231 of the Revised Code. The council shall consist of the following members or their designees:

(B) If an agency or organization represented on the council ceases to exist in the form it has on the effective date of this section, the successor agency or organization shall be represented in its place. If there is no successor agency or organization, or if it is not clear what agency or organization is the successor, the attorney general shall designate an agency or organization to be represented in place of the agency or organization originally represented on the council.

(C) The two members appointed to the council shall serve three-year terms. Original appointments shall be made not later than sixty days after the effective date of this section. Vacancies on the council shall be filled in the same manner as the original appointment.

(D) The attorney general or the attorney general's designee shall be the chairperson of the council. The council shall meet at least once every two years to review the rules adopted under sections 9.237 and 9.238 of the Revised Code and to make recommendations to the attorney general and auditor of state regarding the adoption, amendment, or repeal of those rules. The council shall also meet at other times as requested by the attorney general or auditor of state.

(F) The office of the attorney general shall provide necessary staff, facilities, supplies, and services to the council.

Sec. 9.24. (A) Except as may be allowed under division (F) of this section, no state agency and no political subdivision shall award a contract as described in division (G)(1) of this section for goods, services, or construction, paid for in whole or in part with state funds, to a person against whom a finding for recovery has been issued by the auditor of state on and after January 1, 2001, if the finding for recovery is unresolved.

A contract is considered to be awarded when it is entered into or executed, irrespective of whether the parties to the contract have exchanged any money.

(B) For purposes of this section, a finding for recovery is unresolved unless one of the following criteria applies:

(1) The money identified in the finding for recovery is paid in full to the state agency or political subdivision to whom the money was owed;

(2) The debtor has entered into a repayment plan that is approved by the attorney general and the state agency or political subdivision to whom the money identified in the finding for recovery is owed. A repayment plan may include a provision permitting a state agency or political subdivision to withhold payment to a debtor for goods, services, or construction provided to or for the state agency or political subdivision pursuant to a contract that is entered into with the debtor after the date the finding for recovery was issued.

(3) The attorney general waives a repayment plan described in division (B)(2) of this section for good cause;

(4) The debtor and state agency or political subdivision to whom the money identified in the finding for recovery is owed have agreed to a payment plan established through an enforceable settlement agreement.

(5) The state agency or political subdivision desiring to enter into a contract with a debtor certifies, and the attorney general concurs, that all of the following are true:

(a) Essential services the state agency or political subdivision is seeking to obtain from the debtor cannot be provided by any other person besides the debtor;

(b) Awarding a contract to the debtor for the essential services described in division (B)(5)(a) of this section is in the best interest of the state;

(6) The debtor has commenced an action to contest the finding for recovery and a final determination on the action has not yet been reached.

(C) The attorney general shall submit an initial report to the auditor of state, not later than December 1, 2003, indicating the status of collection for all findings for recovery issued by the auditor of state for calendar years 2001, 2002, and 2003. Beginning on January 1, 2004, the attorney general shall submit to the auditor of state, on the first day of every January, April, July, and October, a list of all findings for recovery that have been resolved in accordance with division (B) of this section during the calendar quarter preceding the submission of the list and a description of the means of resolution. The attorney general shall notify the auditor of state when a judgment is issued against an entity described in division (F)(1) of this section.

(D) The auditor of state shall maintain a database, accessible to the public, listing persons against whom an unresolved finding for recovery has been issued, and the amount of the money identified in the unresolved finding for recovery. The auditor of state shall have this database operational on or before January 1, 2004. The initial database shall contain the information required under this division for calendar years 2001, 2002, and 2003.

Beginning January 15, 2004, the auditor of state shall update the database by the fifteenth day of every January, April, July, and October to reflect resolved findings for recovery that are reported to the auditor of state by the attorney general on the first day of the same month pursuant to division (C) of this section.

(E) Before awarding a contract as described in division (G)(1) of this section for goods, services, or construction, paid for in whole or in part with state funds, a state agency or political subdivision shall verify that the person to whom the state agency or political subdivision plans to award the contract has no unresolved finding for recovery issued against the person. A state agency or political subdivision shall verify that the person does not appear in the database described in division (D) of this section or shall obtain other proof that the person has no unresolved finding for recovery issued against the person.

(F) The prohibition of division (A) of this section and the requirement of division (E) of this section do not apply with respect to the companies or agreements described in divisions (F)(1) and (2) of this section, or in the circumstance described in division (F)(3) of this section.

(1) A bonding company or a company authorized to transact the business of insurance in this state, a self-insurance pool, joint self-insurance pool, risk management program, or joint risk management program, unless a court has entered a final judgment against the company and the company has not yet satisfied the final judgment.

(2) To medicaid provider agreements under Chapter 5111. of the Revised Code ~~or payments or provider agreements under disability assistance medical assistance established under Chapter 5115. of the Revised Code~~.

(3) When federal law dictates that a specified entity provide the goods, services, or construction for which a contract is being awarded, regardless of whether that entity would otherwise be prohibited from entering into the contract pursuant to this section.

(G)(1) This section applies only to contracts for goods, services, or construction that satisfy the criteria in either division (G)(1)(a) or (b) of this ~~division~~ section. This section may apply to contracts for goods, services, or construction that satisfy the criteria in division (G)(1)(c) of this section, provided that the contracts also satisfy the criteria in either division (G)(1)(a) or (b) of this ~~division~~ section.

(a) The cost for the goods, services, or construction provided under the contract is estimated to exceed twenty-five thousand dollars.

(b) The aggregate cost for the goods, services, or construction provided under multiple contracts entered into by the particular state agency and a single person or the particular political subdivision and a single person within the fiscal year preceding the fiscal year within which a contract is being entered into by that same state agency and the same single person or the same political subdivision and the same single person, exceeded fifty thousand dollars.

(2) "Political subdivision" means a political subdivision as defined in section 9.82 of the Revised Code that has received more than fifty thousand dollars of state money in the current fiscal year or the preceding fiscal year.

(3) "Finding for recovery" means a determination issued by the auditor of state, contained in a report the auditor of state gives to the attorney general pursuant to section 117.28 of the Revised Code, that public money has been illegally expended, public money has been collected but not been accounted for, public money is due but has not been collected, or public property has been converted or misappropriated.

(4) "Debtor" means a person against whom a finding for recovery has been issued.

(6) "State money" does not include funds the state receives from another source and passes through to a political subdivision.

(1) "Governmental entity" and "a judgment is uncollectible" have the same meanings as in section 9.23 of the Revised Code.

(2) "Recipient" means a person that enters into or is awarded a contract with a governmental entity for the provision of goods, services, or construction.

(B) A recipient is liable to repay to the governmental entity any money received but not earned under the terms of the contract with the governmental entity.

(C)(1) A governmental entity may bring a civil action for the recovery of money due to the governmental entity from a recipient under division (B) of this section. In such an action, any person with which the recipient has contracted for the performance of the recipient's material obligations under the recipient's contract with the governmental entity may be made a party defendant if the person is unable to demonstrate to the satisfaction of the governmental entity that the person has materially complied with the terms of the contract with the recipient. In such a case, the person may be made a party defendant and the governmental entity may obtain a judgment against the person in accordance with division (C)(2) of this section.

(2) If a governmental entity obtains a judgment against a recipient in a civil action brought under division (C)(1) of this section and the judgment is uncollectible, the governmental entity may recover from the person with which the recipient contracted an amount not exceeding the lesser of the following:

(b) The total amount received by the person from the recipient minus the total amount earned by the person under the terms of the recipient's contract with the governmental entity.

(D) If a governmental entity, pursuant to this section, obtains a judgment against a recipient or against a person with which the recipient contracted and that judgment debtor does not voluntarily pay the amount of the judgment, that judgment debtor shall be precluded from contracting with a governmental entity to the extent provided in divisions (A) and (B) of section 9.24 of the Revised Code for a debtor against whom a finding of recovery has been issued.

(E) In addition to other remedies provided in divisions (B) to (D) of this section, a governmental entity may void a contract between a recipient and another person for the performance by the other person of the recipient's obligations under the recipient's contract with the governmental entity to the extent that the other person has not yet performed its obligations under the contract.

(F) If a recipient is liable to repay money to a governmental entity under this section and the judgment obtained by the governmental entity against the recipient is uncollectible, then in addition to other remedies provided in divisions (B) to (D) of this section, and after the governmental entity has obtained a judgment against any necessary third party, the governmental entity may void any of the following contracts:

(b) The person with which the recipient contracted has received money that the recipient obtained pursuant to the contract with the governmental entity and has used the money other than for the performance of the contract. In such a case, the governmental entity may void the contract to the extent that the person has used the money other than for the performance of the contract, and the person shall be liable to the governmental entity for that amount.

(G) This section does not apply with respect to any contract entered into by a governmental entity under section 9.231 of the Revised Code that is subject to section 9.236 of the Revised Code.

Sec. 9.833. (A) As used in this section, "politicalsubdivision" means a municipal corporation, township, county,~~school district,~~ or other body corporate and politic responsiblefor governmental activities in a geographic area smaller thanthat of the state, and agencies and instrumentalities of these entities. For purposes of this section, a school district is not a "political subdivision."

(B) Political subdivisions that provide health carebenefits for their officers or employees may do any of thefollowing:

(1) Establish and maintain an individual self-insuranceprogram with public moneys to provide authorized health carebenefits, including but not limited to, health care, prescription drugs, dental care, and vision care, in accordance with division (C) of this section;

(2) After establishing an individual self-insuranceprogram, agree with other political subdivisions that haveestablished individual self-insurance programs for health carebenefits, that their programs will be jointly administered in amanner specified in the agreement;

(3) Pursuant to a written agreement and in accordance withdivision (C) of this section, join in any combination with otherpolitical subdivisions to establish and maintain a jointself-insurance program to provide health care benefits;

(4) Pursuant to a written agreement, join in anycombination with other political subdivisions to procure orcontract for policies, contracts, or plans of insurance toprovide health care benefits for their officers and employeessubject to the agreement;

(5) Use in any combination any of the policies, contracts,plans, or programs authorized under this division.

(C) Except as otherwise provided in division (E) of thissection, the following apply to individual or jointself-insurance programs established pursuant to this section:

(1) Such funds shall be reserved as are necessary, in theexercise of sound and prudent actuarial judgment, to coverpotential cost of health care benefits for the officers andemployees of the political subdivision. A report of amounts soreserved and disbursements made from such funds, together with awritten report of a member of the American academy of actuariescertifying whether the amounts reserved conform to therequirements of this division, are computed in accordance withaccepted loss reserving standards, and are fairly stated inaccordance with sound loss reserving principles, shall beprepared and maintained, within ninety days after the last day ofthe fiscal year of the entity for which the report is providedfor that fiscal year, in the office of the program administratordescribed in division (C)(3) of this section.

The report required by division (C)(1) of this sectionshall include, but not be limited to, disbursements made for theadministration of the program, including claims paid, costs of thelegal representation of political subdivisions and employees, andfees paid to consultants.

The program administrator described in division (C)(3) ofthis section shall make the report required by this divisionavailable for inspection by any person at all reasonable timesduring regular business hours, and, upon the request of suchperson, shall make copies of the report available at cost withina reasonable period of time.

(2) Each political subdivision shall reserve fundsnecessary for an individual or joint self-insurance program in aspecial fund that may be established for political subdivisions other than an agency or instrumentality pursuant to an ordinance orresolution of the political subdivision and not subject tosection 5705.12 of the Revised Code. An agency or instrumentality shall reserve the funds necessary for an individual or joint self-insurance program in a special fund established pursuant to a resolution duly adopted by the agency's or instrumentality's governing board. The political subdivisionmay allocate the costs of insurance or any self-insuranceprogram, or both, among the funds or accounts ~~in thesubdivision's treasury~~ established under this division on the basis of relative exposure and lossexperience.

(3) A contract may be awarded, without the necessity ofcompetitive bidding, to any person, political subdivision,nonprofit corporation organized under Chapter 1702. of theRevised Code, or regional council of governments created underChapter 167. of the Revised Code for purposes of administrationof an individual or joint self-insurance program. No suchcontract shall be entered into without full, prior, publicdisclosure of all terms and conditions. The disclosure shallinclude, at a minimum, a statement listing all representationsmade in connection with any possible savings and losses resultingfrom the contract, and potential liability of any politicalsubdivision or employee. The proposed contract and statementshall be disclosed and presented at a meeting of the politicalsubdivision not less than one week prior to the meeting at whichthe political subdivision authorizes the contract.

A contract awarded to a nonprofit corporation or a regional council of governments under this division may provide that all employees of the nonprofit corporation or regional council of governments and the employees of all entities related to the nonprofit corporation or regional council of governments may be covered by the individual or joint self-insurance program under the terms and conditions set forth in the contract.

(4) The individual or joint self-insurance program shallinclude a contract with a member of the American academy ofactuaries for the preparation of the written evaluation of thereserve funds required under division (C)(1) of this section.

(5) A joint self-insurance program may allocate the costsof funding the program among the funds or accounts ~~in thetreasuries of~~ established under this division to the participating political subdivisions on thebasis of their relative exposure and loss experience.

(6) An individual self-insurance program may allocate the costs of fundingtheprogram among the funds or accounts ~~in the treasury of~~ established under this division to the politicalsubdivision that established the program.

(7) Two or more political subdivisions may also authorizethe establishment and maintenance of a joint health care costcontainment program, including, but not limited to, the employmentof risk managers, health care cost containment specialists, andconsultants, for the purpose of preventing and reducing healthcare costs covered by insurance, individual self-insurance, or jointself-insurance programs.

(8) A political subdivision is not liable under a jointself-insurance program for any amount in excess of amountspayable pursuant to the written agreement for the participationof the political subdivision in the joint self-insurance program.Under a joint self-insurance program agreement, a politicalsubdivision may, to the extent permitted under the writtenagreement, assume the risks of any other political subdivision. A joint self-insurance program established under this section isdeemed a separate legal entity for the public purpose of enablingthe members of the joint self-insurance program to obtaininsurance or to provide for a formalized, jointly administeredself-insurance fund for its members. An entity created pursuantto this section is exempt from all state and local taxes.

(9) Any political subdivision, other than an agency or instrumentality, may issue general obligationbonds, or special obligation bonds that are not payable fromreal or personal property taxes, and may also issue notes inanticipation of such bonds, pursuant to an ordinance orresolution of its legislative authority or other governing bodyfor the purpose of providing funds to pay expenses associatedwith the settlement of claims, whether by way of a reserve orotherwise, and to pay the political subdivision's portion of thecost of establishing and maintaining an individual or jointself-insurance program or to provide for the reserve in thespecial fund authorized by division (C)(2) of this section.

In its ordinance or resolution authorizing bonds or notesunder this section, a political subdivision may elect to issuesuch bonds or notes under the procedures set forth in Chapter133. of the Revised Code. In the event of such an election,notwithstanding Chapter 133. of the Revised Code, the maturity ofthe bonds may be for any period authorized in the ordinance orresolution not exceeding twenty years, which period shall be themaximum maturity of the bonds for purposes of section 133.22 ofthe Revised Code.

Bonds and notes issued under this section shall not beconsidered in calculating the net indebtedness of the politicalsubdivision under sections 133.04, 133.05, 133.06, and 133.07 ofthe Revised Code. Sections 9.98 to 9.983 of the Revised Code arehereby made applicable to bonds or notes authorized under thissection.

(10) A joint self-insurance program is not an insurancecompany. Its operation does not constitute doing an insurancebusiness and is not subject to the insurance laws of this state.

(D) A political subdivision may procure group life insurance for its employees in conjunction with an individual or joint self-insurance program authorized by this section, provided that the policy of group life insurance is not self-insured.

(E) Divisions (C)(1), (2), and (4) of this section do notapply to individual self-insurance programs in municipalcorporations, townships, or counties.

(F) A public official or employee of a political subdivision who is or becomes a member of the governing body of the program administrator of a joint self-insurance program in which the political subdivision participates is not in violation of division (D) or (E) of section 102.03, division (C) of section 102.04, or section 2921.42 of the Revised Code as a result of either of the following:

(1) The political subdivision's entering under this section into the written agreement to participate in the joint self-insurance program;

(2) The political subdivision's entering under this section into any other contract with the joint self-insurance program.

Sec. 9.90. (A) The governing board of any publicinstitution of higher education, including without limitationstate universities and colleges, community college districts,university branch districts, technical college districts, andmunicipal universities, ~~or the board of education of any schooldistrict,~~ may, in addition to all other powers provided in theRevised Code:

(1) Contract for, purchase, or otherwise procure from aninsurer or insurers licensed to do business by the state of Ohiofor or on behalf of such of its employees as it may determine,life insurance, or sickness, accident, annuity, endowment,health, medical, hospital, dental, or surgical coverage andbenefits, or any combination thereof, by means of insurance plansor other types of coverage, family, group or otherwise, and maypay from funds under its control and available for such purposeall or any portion of the cost, premium, or chargefor such insurance, coverage, or benefits. However, the governingboard, in addition to or as an alternative to the authority otherwisegranted by division (A)(1) of this section, may elect to procurecoverage for health care services, for or on behalf of such of its employeesas it may determine, by means of policies,contracts, certificates, or agreements issued by at least twohealth insuring corporations holding a certificate of authorityunder Chapter 1751. of the Revised Code and maypay from fundsunder the governing board's control and available for such purpose all orany portion of the cost of such coverage.

(2) Make payments to a custodial account for investment inregulated investment company stock for the purpose of providingretirement benefits as described in section 403(b)(7) of theInternal Revenue Code of 1954, as amended. Such stock shall bepurchased only from persons authorized to sell such stock in thisstate.

Any income of an employee deferred under divisions (A)(1)and (2) of this section in a deferred compensation programeligible for favorable tax treatment under the Internal RevenueCode of 1954, as amended, shall continue to be included asregular compensation for the purpose of computing thecontributions to and benefits from the retirement system of suchemployee. Any sum so deferred shall not be included in thecomputation of any federal and state income taxes withheld onbehalf of any such employee.

(B) All or any portion of the cost, premium, or chargetherefor may be paid in such other manner or combination ofmanners as the governing board ~~or the school board~~ may determine,including direct payment by the employee in cases under division(A)(1) of this section, and, if authorized in writing by theemployee in cases under division (A)(1) or (2) of this section,by such governing board ~~or school board~~ with moneys madeavailable by deduction from or reduction in salary or wages or bythe foregoing of a salary or wage increase. Division (B)(7) ofsection 3917.01 and the last paragraph of section 3917.06 of theRevised Code shall not prohibit the issuance or purchase of grouplife insurance authorized by this section by reason of payment ofpremiums therefor by the governing board ~~or the school board~~ fromits funds, and such group life insurance may be so issued andpurchased if otherwise consistent with the provisions of sections3917.01 to 3917.07 of the Revised Code.

(C) The board of education of any school district may exercise any of the powers granted to the governing boards of public institutions of higher education under divisions (A) and (B) of this section, except in relation to the provision of health care benefits to employees. All health care benefits provided to persons employed by the public schools of this state shall be medical plans designed by the school employees health care board pursuant to section 9.901 of the Revised Code.

Sec. 9.901. (A)(1) All health care benefits provided to persons employed by the public schools of this state shall be provided by medical plans designed pursuant to this section by the school employees health care board. The board, in consultation with the superintendent of insurance, shall negotiate with and, in accordance with the competitive selection procedures of Chapter 125. of the Revised Code, contract with one or more insurance companies authorized to do business in this state for the issuance of the plans. Any or all of the medical plans designed by the board may be self-insured. All self-insured plans adopted shall be administered by the board in accordance with this section. As used in this section, a "public school" means a school in a city, local, exempted village, or joint vocational school district, and includes the educational service centers associated with those schools.

(2) Prior to soliciting proposals from insurance companies for the issuance of medical plans, the board shall determine what geographic regions exist in the state based on the availability of providers, networks, costs, and other factors relating to providing health care benefits. The board shall then determine what medical plans are offered by school districts and existing consortiums in the state. The board shall determine what medical plan offered by a school district or existing consortium in the region offers the lowest premium cost plan.

(3) The board shall develop a request for proposals and solicit bids for medical plans for the school districts in a region similar to the existing plans. The board shall also determine the benefits offered by existing medical plans, the employees' costs, and the cost-sharing arrangements used by public schools participating in a consortium. The board shall determine what strategies are used by the existing medical plans to manage health care costs and shall study the potential benefits of state or regional consortiums of public schools offering multiple health care plans.

(4) As used in this section, a "medical plan" includes group policies, contracts, and agreements that provide hospital, surgical, or medical expense coverage, including self-insured plans. A "medical plan" does not include an individual plan offered to the employees of a public school, or a plan that provides coverage only for specific disease or accidents, or a hospital indemnity, medicare supplement, or other plan that provides only supplemental benefits, paid for by the employees of a public school.

(B) The school employees health care board is hereby created. The school employees health care board shall consist of the following nine members and shall include individuals with experience with public school benefit programs, health care industry providers, and medical plan beneficiaries:

A member of the school employees health care board shall not be employed by, represent, or in any way be affiliated with a private entity that is providing services to the board, an individual school district, employers, or employees in the state of Ohio.

(C)(1) Members of the school employees health care board shall serve four-year terms; however, one of each of the initial members appointed under divisions (B)(1) to (3) of this section shall be appointed to a term of one year. The initial appointments under this section shall be made within forty-five days after the effective date of this section.

Members' terms shall end on the same day of the same month as the effective date of this section, but a member shall continue to serve subsequent to the expiration of the member's term until a successor is appointed. Any vacancy occurring during a member's term shall be filled in the same manner as the original appointment, except that the person appointed to fill the vacancy shall be appointed to the remainder of the unexpired term.

(2) Members shall serve without compensation but shall be reimbursed from the school employees health care fund for actual and necessary expenses incurred in the performance of their official duties as members of the board.

(3) Members may be removed by their appointing authority for misfeasance, malfeasance, incompetence, dereliction of duty, or other just cause.

(D)(1) The governor shall call the first meeting of the school employees health care board. At that meeting, and annually thereafter, the board shall elect a chairperson and may elect members to other positions on the board as the board considers necessary or appropriate. The board shall meet at least four times each calendar year and shall also meet at the call of the chairperson or three or more board members. The chairperson shall provide reasonable advance notice of the time and place of board meetings to all members.

(2) A majority of the board constitutes a quorum for the transaction of business at a board meeting. A majority vote of the members present is necessary for official action.

(E) The school employees health care board shall conduct its business at open meetings; however, the records of the board are not public records for purposes of section 149.43 of the Revised Code.

(F) The school employees health care fund is hereby created in the state treasury. The public schools shall pay all school employees health care board plan premiums in the manner prescribed by the school employees health care board to the board for deposit into the school employees health care fund. All funds in the school employees health care fund shall be used solely for the provision of health care benefits to public schools employees pursuant to this section and related administrative costs. Premiums received by the board or insurance companies contracted pursuant to division (A) of this section are not subject to any state insurance premium tax.

(1) Design multiple medical plans, including regional plans, to provide, in the board's judgment, the optimal combination of coverage, cost, choice, and stability of health cost benefits. The board may establish more than one tier of premium rates for any medical plan. The board shall establish regions as necessary for the implementation of the board's medical plans. Plans and premium rates may vary across the regions established by the board.

(2) Set an aggregate goal for employee and employer portions of premiums for the board's medical plans so as to manage plan participation and encourage the use of value-based plan participation by employees;

(3) Set employer and employee plan copayments, deductibles, exclusions, limitations, formularies, premium shares, and other responsibilities;

(4) Include disease management and consumer education programs, to the extent that the board determines is appropriate, in all medical plans designed by the board, which programs shall include, but are not limited to, wellness programs and other measures designed to encourage the wise use of medical plan coverage. These programs are not services or treatments for purposes of section 3901.71 of the Revised Code.

(5) Create and distribute to the governor, the speaker of the house of representatives, and the president of the senate, an annual report covering the plan background; plan coverage options; plan administration, including procedures for monitoring and managing objectives, scope, and methodology; plan operations; employee and employer contribution rates and the relationship between the rates and the school employees health care fund balance; a means to develop and maintain identity and evaluate alternative employee and employer cost-sharing strategies; an evaluation of the effectiveness of cost-saving services and programs; an evaluation of efforts to control and manage member eligibility and to insure that proper employee and employer contributions are remitted to the trust fund; efforts to prevent and detect fraud; and efforts to manage and monitor board contracts;

(6) Utilize cost containment measures aligned with patient, plan, and provider management strategies in developing and managing medical plans.

(H) The sections in Chapter 3923. of the Revised Code regulating public employee benefit plans are not applicable to the medical plans designed pursuant to this section.

(I)(1) Public schools are not subject to this section prior to the release of medical plans designed pursuant to this section.

(2) Prior to the school employees health care board's release of the board's initial medical plans, the board shall contract with an independent consultant to analyze costs related to employee health care benefits provided by existing school district plans in this state. The consultant shall determine the benefits offered by existing medical plans, the employees' costs, and the cost-sharing arrangements used by public schools either participating in a consortium or by other means. The consultant shall determine what strategies are used by the existing medical plans to manage health care costs and shall study the potential benefits of state or regional consortiums of public schools offering multiple health care plans. Based on the findings of the analysis, the consultant shall submit written recommendations to the board for the development and implementation of a successful program for pooling school districts' purchasing power for the acquisition of employee medical plans. The consultant's recommendations shall address, at a minimum, all of the following issues:

(a) The establishment of regions for the provision of medical plans, based on the availability of providers and plans in the state at the time that the school employees health care board is established;

(b) The use of regional preferred provider and closed panel plans, health savings accounts, and alternative medical plans, to stabilize both costs and the premiums charged school districts and district employees;

(c) The development of a system to obtain eligibility data and data compiled pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), 100 Stat. 227, 29 U.S.C. 1161, as amended;

(e) The development of a timeline planning for the design and use of board medical plans by not later than December 31, 2007;

(f) The use of information on claims and costs and of information reported by districts pursuant to COBRA in analyzing administrative and premium costs;

(g) The experience of states that have mandated statewide medical plans for public school employees, including the implementation strategies used by those states;

(h) Recommended strategies for the use of first-year roll-in premiums in the transition from district medical plans to school employees health care board plans;

(i) The option of allowing school districts to join an existing regional consortium as an alternative to school employees health care board plans;

(j) Mandatory and optional coverages to be offered by the board's medical plans;

(k) Potential risks to the state from the use of medical plans developed pursuant to this section;

(l) Any legislation needed to ensure the long-term financial solvency and stability of a health care purchasing system;

(m) The potential impacts of any changes to the existing purchasing structure on all of the following:

(n) Issues that could arise when school districts transition from the existing purchasing structure to a new purchasing structure;

(o) Strategies available to the board in the creation of fund reserves and the need for stop-loss insurance coverage for catastrophic losses;

(p) Any legislation needed to establish and maintain medical plans designed pursuant to this section. The consultant shall submit all legislative recommendations not later than December 31, 2005, in writing, to the school employees health care board and to the governor, the speaker of the house of representatives, and the president of the senate.

(3) The public schools health care advisory committee is hereby created under the school employees health care board. The committee shall make recommendations to the school employees health care board related to the board's accomplishment of the duties assigned to the board under this section. The committee shall consist of eighteen members. The governor, the speaker of the house of representatives, and the president of the senate shall each appoint a representative from the Ohio education association, the Ohio school boards association, the Ohio association of school business officials, the Ohio association of health underwriters, an existing health care consortium serving public schools, and a health insuring corporation licensed to do business in Ohio and recommended by the Ohio association of health plans. The initial appointees shall be appointed to a one-year term not later than July 31, 2005, the members' term to begin on that date. Subsequent one-year appointments, to commence on the thirty-first day of July of each year, shall be made in the same manner. A member shall continue to serve subsequent to the expiration of the member's term until the member's successor is appointed. Any vacancy occurring during a member's term shall be filled in the same manner as the original appointment, except that the person appointed to fill the vacancy shall be appointed to the remainder of the unexpired term. The governor shall call the first meeting of each newly appointed committee. At that meeting the board shall elect a chairperson who shall call the time and place of future committee meetings. Committee members are not subject to the conditions for eligibility set by division (B) of this section for members of the school employees health care board.

(4) The school employees health care board shall submit a written study to the governor and the general assembly not later than January 15, 2006, of a plan to operate in compliance with this section, and on the governance of the school employees health care board. A copy of the board's plan of operation, including audit provisions, shall accompany the report on the board's governance and the report shall include the board's recommendations on any legislation needed to enforce the recommendations of the board on implementing the provisions of this section.

(5) Not later than January 15, 2009, and not later than the same day of each subsequent year, the school employees health care board shall submit a written report to the governor and each member of the general assembly, which report evaluates the performance of school employees health care board medical plans during the previous year. Districts offering employee health care benefits through a plan offered by a consortium of two or more districts, or a consortium of one or more districts and one or more political subdivisions as defined in section 9.833 of the Revised Code, representing five thousand or more employees as of January 1, 2005, may request permission from the school employees health care board to continue offering consortium plans to the districts' employees at the discretion of the board. If the board grants permission, the permission is valid for only one year but may be renewed annually thereafter upon application to an approval of the board. The board shall grant initial or continued approval upon finding, based on an actuarial evaluation of the existing consortium plan offerings, that benefit design, premium costs, administrative cost, and other factors considered by the board are equivalent to or lower than comparable costs of the board's plan options offered to the local district. Age and gender adjustments, benefit comparison adjustments, and the total cost of the consortium plan, including administration, benefit cost, stop-loss insurance, and all other expenses or information requested by the board shall be presented to the board prior to the board's decision to allow a local district to continue to offer health care benefits under a consortium plan. A district shall not participate in the consortium plan once the district has chosen to offer plans designed by the board to the district's employees and begins premium payments for deposit into the school employees health care fund.

(6) Any districts providing medical plan coverage for the employees of public schools, or that have provided coverage within two years prior to the effective date of this section, shall provide nonidentifiable aggregate claims data for the coverage to the school employees health care board or the department of administrative services, without charge, within thirty days after receiving a written request from the board or the department. The claims data shall include data relating to employee group benefit sets, demographics, and claims experience.

(J) The school employees health care board may contract with other state agencies as the board deems necessary for the implementation and operation of this section, based on demonstrated experience and expertise in administration, management, data handling, actuarial studies, quality assurance, or other needed services. The school employees health care board shall contract with the department of administrative services for central services until the board is able to obtain such services from other sources. The board shall reimburse the department of administrative services for the reasonable cost of those services.

(K) The board's administrative functions shall include, but are not limited to, the following:

(1) Maintaining reserves in the school employees health care fund, reinsurance, and other measures that in the judgment of the board will result in the long-term stability and solvency of the medical plans designed by the board. The board shall bill school districts, in proportion to a district's premium payments to all premium payments paid into the school employees health care fund during the previous year, in order to maintain necessary reserves, reinsurance, and administrative and operating funds. Each school district contributing to a board medical plan shall share any losses due to the expense of claims paid by the plan. In the event of a loss, the board may bill each district an amount, in proportion to the district's premium payments to all premium payments paid into the school employees health care fund during the previous year, sufficient in total to cover the loss. The state is not liable for any obligations of the school employees health care board or the school employees health care fund, or for expenses of public schools or school districts related to the board's medical plans.

(2) Providing health care information, wellness programs, and other preventive health care measures to medical plan beneficiaries, to the extent that the board determines to be appropriate;

(3) Coordinating contracts for services related to the board's medical plans. Contracts shall be approved by the school employees health care board.

(L) Not less than ninety days before coverage begins for public school employees under medical plans designed by the school employees health care board, a school district's board of education shall provide detailed information about the medical plans to the employees.

(M) Nothing in this section shall be construed as prohibiting public schools or school districts from consulting with and compensating insurance agents and brokers for professional services.

(N) The department of administrative services shall report to the governor, the speaker of the house of representatives, and the president of the senate within eighteen months after the effective date of this section on the feasibility of achieving all of the following:

(1) Designing multiple medical plans to cover persons employed by public institutions of higher education that achieve an optimal combination of coverage, cost, choice, and stability, which plans include both state and regional preferred provider plans, set employee and employer premiums, and set employee plan copayments, deductibles, exclusions, limitations, formularies, and other responsibilities. For this purpose, "public institutions of higher education" include, without limitation, state universities and colleges, state community college districts, community college districts, university branch districts, technical college districts, and municipal universities.

(2) Maintaining reserves, reinsurance, and other measures to insure the long-term stability and solvency of the medical plans;

(3) Providing appropriate health care information, wellness programs, and other preventive health care measures to medical plan beneficiaries;

Sec. 9.981. (A) Sections 9.98 to 9.983 of the RevisedCodeare applicable to bonds:

(1) The payment of the debt service on which is to beprovided for directly or indirectly by payments contracted to bemade in the bond proceedings by the absolute obligors, beingpersons other than the issuer; and

(2) Which are authorized to be issued under sections122.39to 122.62, Chapter 165., 902., 3377., 3706., division(A)(4)ofsection 4582.06, division(A)(8) of section 4582.31,section4582.48, or Chapter6121. or 6123. of the Revised Code,notwithstanding otherprovisions therein.

(B) Sections 9.98 to 9.983 of the Revised Code areapplicable to bonds issued under sections 306.37 and 6119.12 of the Revised Code and Chapters ~~133.,~~ 140., 152., 154., 175.,and 349. of the Revised Code, and to any bonds authorized underlaws which expressly make those sections applicable.

(C) Subject to division (A) of this section, the authorityprovided in sections 9.98 to 9.983 of the Revised Code issupplemental to and not in derogation of any similar authorityprovided by, derived from, or implied by, any law, the OhioConstitution, or any charter, resolution,or ordinance, and noinference shall be drawn to negate the authority thereunder byreason of the express provisions of sections 9.98 to 9.983 of theRevised Code.

(D) Sections 9.98 to 9.983 of the Revised Code shall beliberally construed to permit flexibility in the arrangementstherein provided to enhance the issuance of such bonds andprovidefor terms most beneficial and satisfactory to the personswhichundertake to provide for their payment, security, andliquidity.

Sec. 101.391. (A) There is hereby created the jointlegislativecommittee onmedicaid technology and reform. The committeemayreview or study any matter that it considers relevant to the operation of themedicaid programestablished underChapter 5111. of theRevisedCode, with priority given to the study or review of mechanisms to enhance the program's effectiveness through improved technology systems and program reform.

(B) The committee shall consist of five membersof the house of representatives appointed bythespeaker of thehouse of representatives and five members of the senateappointedbythe president of the senate. Not more than three membersappointed by thespeaker of the house of representatives and notmore than three membersappointed by the president of the senate maybe of the same political party.

Each member of the committee shall hold office during thegeneral assemblyin which the member is appointed and until asuccessor has been appointed,notwithstanding the adjournment sinedie of the general assembly in which themember was appointed orthe expiration of the member's term as a member of thegeneralassembly. Any vacancies occurring among the members of thecommitteeshall be filled in the manner of the originalappointment.

(C) The committee has the same powers as other standing or selectcommittees ofthe general assembly. The committee may employ an executive director.

Sec. 101.68. (A) ~~Within~~ Subject to division (D) of this section, within thirty days of the convening ofthe first regular session of the general assembly, each agencyrequired to submit reports or similar documents to the generalassembly pursuant to section 103.43, 3301.07, 5139.33,5501.07, 5537.17, or 5593.21 of the Revised Code shall sendwritten notice to each member of the general assembly in order todetermine whether the member desires to personally receive thereports or similar documents as they are made available by theagency. If the member desires to personally receive the reportsor similar documents as they become available, the member shallsend a written request to the agency within thirty days ofreceiving the notice.

(B) Whenever any statute or rule requires that a report,recommendation, or other similar document be submitted to thegeneral assembly under a law not cited in division (A) of thissection, to the members of the general assembly, to one house ofthe general assembly, or to the members of one house of thegeneral assembly, the requirement shall be fulfilled by thesubmission of a copy of the report, recommendation, or documentto the director of the legislative service commission, thepresident of the senate, the minority leader of the senate, thespeaker of the house of representatives, and the minority leaderof the house of representatives if both houses of the generalassembly or their members are specified, or to the director ofthe legislative service commission, the president of the senate,and the minority leader of the senate if only the senate or itsmembers are specified, or to the director of the legislativeservice commission, the speaker of the house of representatives,and the minority leader of the house of representatives if onlythe house of representatives or its members are specified. Thisdivision does not apply to items required to be distributed tomembers of the general assembly pursuant to section 103.14,149.04, 149.07, or 149.17 of the Revised Code.

(C) Each month the legislative service commission shallprovide to each member of the senate and to each member of thehouse of representatives a list of all reports, recommendations,and documents submitted to the officers of the general assemblyunder division (B) of this section. The list shall include ashort and accurate description of the content, length, and formof each report, recommendation, or document submitted, as well asa statement setting forth the number printed, if applicable, and the cost ofpreparation. Each member may request from the legislativeservice commission a copy of any report, recommendation, ordocument on the list, and the legislative service commissionshall comply with any such request.

(D) Notwithstanding any provision of the Revised Code to the contrary, whenever any statute or rule requires that an agency submit a report, recommendation, or other similar document to the general assembly or otherwise as described in division (B) of this section in a paper, book, or other hard copy format, the report, recommendation, or other document, to the extent technologically feasible, shall be submitted to the general assembly or otherwise as described in division (B) of this section through electronic means, rather than in the hard copy format, and shall be displayed by the agency on a web site it maintains.

Sec. 102.02. (A) Except as otherwise provided in division(H) of this section, all of the following shall file with the appropriate ethics commission the disclosure statement described in this division on a form prescribed by the appropriate commission: every person who is elected to or is acandidate for a state, county, or city office and every person who isappointed to fill a vacancy for an unexpired term in such anelective office; all members of the state board of education;thedirector, assistant directors, deputydirectors, division chiefs,or persons of equivalent rank of anyadministrative department ofthe state; the president or otherchief administrative officer ofevery state institution of highereducation as defined in section3345.011 of the Revised Code; the executive director and the members of the capitol square review and advisory board appointed or employed pursuant to section 105.41 of the Revised Code; thechief executive officer and the members of the board of eachstate retirement system; each employee of a state retirement board who is a state retirement system investment officer licensed pursuant to section 1707.163 of the Revised Code; the members of the Ohio retirement study council appointed pursuant to division (C) of section 171.01 of the Revised Code; employees of the Ohio retirement study council, other than employees who perform purely administrative or clerical functions; the administrator of workers' compensation and each voting member of the workers' compensation oversight commission; the chief investment officer of the bureau of workers' compensation; allmembers of the board of commissionerson grievances anddiscipline of the supreme court and the ethicscommission createdunder section 102.05 of the Revised Code; everybusiness manager,treasurer, or superintendent of a city, local,exempted village,joint vocational, or cooperative educationschooldistrict or an educational service center; every person whois electedto or is a candidate forthe office of member of aboard of education of a city, local,exempted village, jointvocational, or cooperativeeducation school district or of agoverning board of an educational servicecenter that has a totalstudent count of twelve thousand or more as mostrecentlydetermined by the department of education pursuant to section3317.03ofthe Revised Code; every person who is appointed to theboard of educationof a municipal school district pursuant todivision (B) or(F) of section 3311.71 of the Revised Code; allmembers of the board ofdirectors of a sanitary district that isestablished under Chapter 6115.of the Revised Code and organizedwholly for the purpose of providing a watersupply fordomestic,municipal, and public use, and that includes two municipal corporationsin two counties; every public official oremployee who is paid asalary or wage in accordance with schedule C of section 124.15 orschedule E-2 of section 124.152 of the Revised Code; members ofthe boardof trustees and the executive director of the tobaccouse prevention andcontrol foundation; members of the board oftrustees and the executivedirector of the southern Ohioagricultural and community developmentfoundation; and everyother public official or employeewho is designated by theappropriate ethics commission pursuant todivision (B) of thissection.

(1) The name of the person filing the statement and eachmember of the person's immediate family and all names underwhichtheperson or members of the person's immediate family dobusiness;

(2)(a) Subject to divisions (A)(2)(b) and (c) of thissection and except as otherwise provided in section 102.022 oftheRevised Code, identification of every source of income, otherthanincome from a legislative agent identified in division(A)(2)(b)of this section, received during the preceding calendaryear, inthe person's own name or by any other person forthe person's useorbenefit, by the person filing the statement, and a briefdescription of the nature of the services for which the incomewasreceived. If the person filing the statement is a member ofthegeneral assembly, the statement shall identify the amount ofeverysource of income received in accordance with the followingrangesof amounts: zero or more, but less than one thousanddollars; onethousand dollars or more, but less than ten thousanddollars; tenthousand dollars or more, but less than twenty-fivethousanddollars; twenty-five thousand dollars or more, but lessthan fiftythousand dollars; fifty thousand dollars or more, butless thanone hundred thousand dollars; and one hundred thousanddollars ormore. Division (A)(2)(a) of this section shall not beconstruedto require a person filing the statement who derivesincome from abusiness or profession to disclose the individualitems of incomethat constitute the gross income of that businessor profession,except for those individual items of income thatare attributableto the person's or, if the income is shared withthe person, thepartner's, solicitation of services or goods orperformance,arrangement, or facilitation of services orprovision of goods onbehalf of the business or profession ofclients, includingcorporate clients, who are legislative agents. A person whofiles thestatement under this section shall disclose theidentity of andthe amount of income received from a personwhothe publicofficial or employee knows or has reason to know isdoing orseeking to do business of any kind with the publicofficial's oremployee's agency.

(b) If the person filing the statement is a member of thegeneral assembly, the statement shall identify every source ofincome and the amount of that income that was received from alegislative agent during the preceding calendar year, in the person'sown nameor byany other person for the person's use or benefit, by theperson filing thestatement, and a brief description of the natureof the servicesfor which the income was received. Division(A)(2)(b) of thissection requires the disclosure of clients ofattorneys orpersons licensed under section 4732.12 of the RevisedCode, orpatients of persons certified under section 4731.14 oftheRevised Code, if those clients or patients are legislativeagents. Division (A)(2)(b) of this section requires a personfiling thestatement who derives income from a business orprofession todisclose those individual items of income thatconstitute thegross income of that business or profession thatare receivedfrom legislative agents.

(c) Except as otherwise provided in division (A)(2)(c) ofthis section, division (A)(2)(a) of this section applies toattorneys, physicians, and other persons who engage in thepractice of a profession and who, pursuant to a section of theRevised Code, the common law of this state, a code of ethicsapplicable to the profession, or otherwise, generally arerequirednot to reveal, disclose, or use confidences of clients,patients,or other recipients of professional services exceptunderspecified circumstances or generally are required tomaintainthose types of confidences as privileged communicationsexceptunder specified circumstances. Division (A)(2)(a) of thissectiondoes not require an attorney, physician, or otherprofessionalsubject to a confidentiality requirement asdescribed in division(A)(2)(c) of this section to disclose thename, other identity, oraddress of a client, patient, or otherrecipient of professionalservices if the disclosure wouldthreaten the client, patient, orother recipient of professionalservices, would reveal details ofthe subject matter for whichlegal, medical, or professionaladvice or other services weresought, or would reveal an otherwiseprivileged communicationinvolving the client, patient, or otherrecipient of professionalservices. Division (A)(2)(a) of thissection does not require anattorney, physician, or otherprofessional subject to aconfidentiality requirement as describedin division (A)(2)(c) ofthis section to disclose in the briefdescription of the natureof services required by division(A)(2)(a) of this section anyinformation pertaining to specificprofessional services renderedfor a client, patient, or otherrecipient of professionalservices that would reveal details ofthe subject matter forwhich legal, medical, or professionaladvice was sought or wouldreveal an otherwise privilegedcommunication involving theclient, patient, or other recipient ofprofessional services.

(3) The name of every corporation on file with thesecretaryof state that is incorporated in this state orholds acertificateof compliance authorizing it to do business in thisstate, trust,business trust, partnership, or association thattransactsbusiness in this state in which the person filingthe statement orany other person for the person's use andbenefit had duringthepreceding calendar year an investment of over one thousanddollarsat fair market value as of the thirty-first day ofDecember of thepreceding calendar year, or the date ofdisposition, whichever isearlier, or in which the person holdsany office or has afiduciary relationship, and a description ofthe nature of theinvestment, office, or relationship. Division(A)(3) of thissection does not requiredisclosure of the name of any bank,savings and loan association, credit union, or building and loanassociation with which the person filing the statement has adeposit or a withdrawable share account.

(4) All fee simple and leasehold interests to which theperson filing the statement holds legal title to or a beneficialinterest in real property located within the state, excluding theperson's residence and property used primarily for personalrecreation;

(5) The names of all persons residing or transactingbusiness in the state to whom the person filing the statementowes, in the person's own name or in the name of any otherperson,morethan one thousand dollars. Division (A)(5)of this sectionshall not be construedto require the disclosure of debts owed bythe person resultingfrom the ordinary conduct of a business orprofession or debts onthe person's residence or real propertyused primarily forpersonal recreation, except that thesuperintendent of financialinstitutions shall disclose thenamesof allstate-chartered savings and loan associations and ofallservicecorporations subject to regulation under division (E)(2)ofsection 1151.34 of the Revised Code to whom the superintendentinthe superintendent's own name or in the name of any otherperson owes any money,and that the superintendent and any deputysuperintendent of banks shall disclose the names of allstate-charteredbanks and all bank subsidiary corporations subjectto regulationunder section 1109.44 of the Revised Code to whomthe superintendent or deputy superintendent owes any money.

(6) The names of all persons residing or transactingbusiness in the state, other than a depository excluded underdivision (A)(3) of this section, who owe more than onethousanddollars to the person filing the statement, either in theperson'sownname or to any person for the person's use or benefit.Division(A)(6) of this sectionshall not be construed to requirethe disclosure of clients ofattorneys or persons licensed undersection 4732.12 or 4732.15 ofthe Revised Code, or patients ofpersons certified under section4731.14 of the Revised Code, northe disclosure of debts owed tothe person resulting from theordinary conduct of a business orprofession.

(7) Except as otherwise provided in section 102.022 of theRevised Code, the source of each gift of over seventy-fivedollars, or of each gift of over twenty-five dollars received byamember of the general assembly from a legislative agent, receivedby the person in the person's own name or by anyother person forthe person's use or benefit during the preceding calendaryear,exceptgifts received by will or by virtue of section 2105.06 oftheRevised Code, or received from spouses, parents, grandparents,children, grandchildren, siblings, nephews, nieces, uncles,aunts,brothers-in-law, sisters-in-law, sons-in-law,daughters-in-law,fathers-in-law, mothers-in-law, or any personto whom the personfiling the statement stands in loco parentis,or received by wayof distribution from any inter vivos ortestamentary trustestablished by a spouse or by an ancestor;

(8) Except as otherwise provided in section 102.022 of theRevised Code, identification of the source and amount of everypayment of expenses incurred for travel to destinations inside oroutside this state that is received by the person in theperson'sown nameor by any other person for the person's use or benefitandthat isincurred in connection with the person's officialduties, exceptfor expenses for travel to meetings or conventionsof a nationalor state organization to whichany state agency,including, but not limited to, any legislative agency or stateinstitution ofhighereducation as defined in section3345.011 ofthe RevisedCode,paysmembership dues, or any politicalsubdivision or anyoffice oragency of a political subdivisionpays membership dues;

(9) Except as otherwise provided in section 102.022 of theRevised Code, identification of the source of payment of expensesfor meals and other food and beverages, other than for meals andother food and beverages provided at a meeting at which thepersonparticipated in a panel, seminar, or speaking engagementor at ameeting or convention of a national or state organizationto whichany state agency, including, but not limited to, any legislativeagency orstate institution of higher education asdefined insection3345.011 of the Revised Code,pays membership dues, oranypolitical subdivision or anyoffice or agency of a politicalsubdivision pays membership dues,that are incurred in connectionwith the person's official dutiesand that exceed one hundreddollars aggregated per calendar year;

(10) If the disclosure statement is filed by apublic official or employee described in division (B)(2) ofsection 101.73 of the Revised Code or division (B)(2) of section121.63 of the Revised Code who receives a statement from alegislative agent, executive agency lobbyist, or employer thatcontains the information described in division (F)(2) of section101.73 of the Revised Code or division (G)(2) of section 121.63ofthe Revised Code, all of the nondisputed information containedinthe statement delivered to that public official or employee bythelegislative agent, executive agency lobbyist, or employerunderdivision (F)(2) of section 101.73 or (G)(2) of section121.63 ofthe Revised Code.

A person may file a statement required by this section inperson or by mail. A person who is a candidate for electiveoffice shall file the statement no later than the thirtiethdaybefore the primary, special, or general election at whichthecandidacy is to be voted on, whichever election occurssoonest,except that a person who is a write-in candidate shall file thestatement no later than the twentieth day before the earliestelection at which the person's candidacy is to be voted on. Aperson whoholds elective office shall file the statement on orbeforethefifteenth day of April of each year unless the personis acandidate foroffice. A person who is appointed to fill avacancy for anunexpired term in an elective office shall file thestatementwithin fifteen days after the person qualifies foroffice. Other personsshall file an annual statement on or beforethe fifteenth day ofApril or, if appointed or employed after thatdate, within ninetydays after appointment or employment. Noperson shall berequired to file with the appropriate ethicscommission more thanone statement or pay more than one filing feefor any onecalendar year.

The appropriate ethics commission, for good cause, mayextendfor a reasonable time the deadline for filing astatement underthis section.

A statement filed under this section is subject to publicinspection at locations designated by the appropriate ethicscommission except as otherwise provided in this section.

(B) The Ohio ethics commission, the joint legislativeethicscommittee, and the board of commissioners on grievancesanddiscipline of the supreme court, using the rule-makingproceduresof Chapter 119. of the Revised Code, may require anyclass ofpublic officials or employees under its jurisdiction andnotspecifically excluded by this section whose positions involveasubstantial and material exercise of administrative discretioninthe formulation of public policy, expenditure of public funds,enforcement of laws and rules of the state or a county or city,orthe execution of other public trusts, to file an annualstatementon or before the fifteenth day of April under division(A) of thissection. The appropriate ethics commission shallsend the publicofficials or employees written notice of therequirement by thefifteenth day of February of each year thefiling is requiredunless the public official or employee isappointed after thatdate, in which case the notice shall be sentwithin thirty daysafter appointment, and the filing shall bemade not later thanninety days after appointment.

Except for disclosurestatements filed by members of theboard of trustees and the executivedirector of the tobacco useprevention and control foundationand members of theboard oftrustees and the executive director of the southern Ohioagricultural and community development foundation, disclosurestatements filed under thisdivision with theOhio ethics commission by members of boards,commissions, orbureaus of the state for which no compensation isreceived otherthan reasonable and necessary expenses shall bekept confidential. Disclosurestatements filedwith the Ohioethics commission under division (A) of thissection by businessmanagers, treasurers, and superintendents ofcity, local, exemptedvillage, joint vocational, orcooperative education schooldistricts or educational service centers shall bekeptconfidential, except that any person conducting an audit of anysuch school districtor educational service center pursuant tosection 115.56 or Chapter 117.of the Revised Code may examine thedisclosure statement of anybusiness manager, treasurer, orsuperintendent of that schooldistrict or educational servicecenter. The Ohio ethics commission shallexamine each disclosurestatement required to be kept confidential todetermine whether apotential conflict of interest exists for theperson who filed thedisclosure statement. A potential conflictof interest exists ifthe private interests of the person, asindicated by the person'sdisclosure statement, mightinterfere with thepublic intereststhe person is required to serve in theexercise of the person'sauthority and duties inthe person's office or position ofemployment. Ifthe commission determines that a potentialconflict of interestexists, it shall notify the person who filedthe disclosurestatement and shall make the portions of thedisclosure statementthat indicate a potential conflict ofinterest subject to publicinspection in the same manner as isprovided for other disclosurestatements. Any portion of thedisclosure statement that thecommission determines does notindicate a potential conflict ofinterest shall be keptconfidential by the commission and shallnot be made subject topublic inspection, except as is necessaryfor the enforcement ofChapters 102. and 2921. of the RevisedCode and except asotherwise provided in thisdivision.

(C) No person shall knowingly fail to file, on or beforetheapplicable filing deadline established under this section, astatement that is required by this section.

(D) No person shall knowingly file a false statement thatisrequired to be filed under this section.

(E)(1) Except as provided in divisions (E)(2) and (3) ofthis section, the statement requiredby division(A) or (B) ofthis section shall be accompanied by afiling fee of forty dollars.

(2) The statement required by division (A) of this sectionshall be accompanied by the following filing fee to be paid by the person whois elected or appointed to, or is a candidate for, any of thefollowing offices:

(3) No judge of a court of record or candidate for judgeofa courtof record, and no referee or magistrate serving acourt ofrecord, shall be required to pay the fee required underdivision(E)(1) or (2) or (F) of this section.

(4) For any public official who is appointed to anonelective office of the state and for any employee who holds anonelective position in a public agency of the state, the stateagency that is the primary employer of the state official oremployee shall pay the fee required under division (E)(1) or (F)of this section.

(F) If a statement required to be filed under this sectionis not filed by the date on which it is required to be filed, theappropriate ethics commission shall assess the person required tofile the statement a late filing fee of ten dollars for each day the statement is not filed,except that the total amount of the late filing fee shall notexceed two hundred fifty dollars.

(G)(1) The appropriate ethics commission other than theOhioethics commission shall deposit all fees it receives underdivisions (E) and (F) of this section into the general revenuefund of the state.

(2) The Ohio ethics commission shall deposit all receipts,including, butnot limited to, fees itreceives under divisions(E) and (F) of this section and allmoneys it receives fromsettlements under division (G) of section102.06 of the RevisedCode, into the Ohio ethics commission fund,which is herebycreated in the state treasury. All moneyscredited to the fundshall be used solely for expenses related tothe operation andstatutory functions of the commission.

(H) Division (A) of this section does not apply to apersonelected or appointed to the office of precinct, ward, ordistrictcommittee member under Chapter 3517. of the RevisedCode; apresidential elector; a delegate to a nationalconvention; villageor township officials and employees; anyphysician or psychiatristwho is paid a salary or wage inaccordance with schedule C ofsection 124.15 or schedule E-2 ofsection 124.152 of the RevisedCode and whose primary duties donot require the exercise ofadministrative discretion; or anymember of a board, commission,or bureau of any county or citywho receives less than onethousand dollars per year for servingin that position.

Sec. 102.06. (A) The appropriate ethics commission shallreceive and may initiate complaints against persons subject to this chapter concerning conduct alleged to bein violation of this chapter or section 2921.42 or 2921.43 of theRevised Code. All complaints except those by the commissionshallbe by affidavit made on personal knowledge, subject to thepenalties of perjury. Complaints by the commission shall be byaffidavit, based upon reasonable cause to believe that aviolationhas occurred.

(B) The appropriate ethics commission shall investigate complaints, mayinvestigate charges presented to it, and may request furtherinformation, including the specific amount of income from asource, from any person filing with the commission a statementrequired by section 102.02 or 102.021 of the Revised Code, if theinformationsought is directly relevant to a complaint or chargesreceived bythe commission pursuant to this section. Thisinformation isconfidential, except that the commission, in its discretion, mayshare information gathered in the course of any investigationwith, or disclose the information to, the inspector general, anyappropriate prosecutingauthority, any law enforcement agency, orany other appropriateethics commission. If the accused person is a member of the public employees retirement board, state teachers retirement board, school employees retirement board, board of trustees of the Ohio police and fire pension fund, or state highway patrol retirement board, or is a voting member of the workers' compensation oversight commission the appropriate ethics commission, in its discretion, also may share information gathered in the course of an investigation with, or disclose the information to, the attorney general and the auditor of state. The person so requestedshallfurnish theinformation to the commission, unless withinfifteendays from thedate of the request the person files anaction fordeclaratoryjudgment challenging the legitimacy of therequest inthe court ofcommon pleas of the county oftheperson'sresidence,theperson'splace of employment, orFranklincounty. The requestedinformation need not be furnishedto thecommission during thependency of the judicial proceedings.Proceedings of thecommission in connection with the declaratoryjudgment actionshall be kept confidential except as otherwiseprovided by thissection. Before the commission proceeds to takeany formalactionagainst a person who is the subject of aninvestigationbased oncharges presented to the commission, acomplaint shallbe filedagainst the person. If the commissionfinds that acomplaint isnot frivolous, and there is reasonablecause tobelieve that thefacts alleged in a complaint constituteaviolation of section102.02, 102.021, 102.03, 102.04, 102.07, 2921.42, or2921.43 of the RevisedCode, it shall hold a hearing. If thecommission does not sofind, it shall dismiss the complaint andnotify the accused personin writing of the dismissal of thecomplaint. The commissionshall not make a report of its findingunless the accused personrequests a report. Upon the request ofthe accused person, thecommission shall make a public report ofits finding. The personagainst whom the complaint is directedshall be given reasonablenotice by certified mail of the date,time, and place of thehearing and a statement of the charges andthe law directlyinvolved and shall be given the opportunity toberepresented bycounsel, to have counsel appointed forthepersoniftheperson is unable to afford counsel without unduehardship,toexaminethe evidence againstthe person, toproduce evidenceand tocall andsubpoena witnesses intheperson's defense, toconfrontthe person's accusers, andtocross-examinewitnesses.The commission shall have astenographicrecord madeof thehearing. The hearing shall beclosed to thepublic.

(C)(1)(a) If, upon the basis of the hearing, the appropriate ethics commissionfinds by a preponderance of the evidence that the facts allegedinthe complaint are true and constitute a violation of section102.02, 102.021, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of theRevisedCode, it shall report its findings to the appropriateprosecutingauthority for proceedings in prosecution of theviolation and tothe appointing or employing authority of theaccused. If the accused person is a member of the public employees retirement board, state teachers retirement board, school employees retirement board, board of trustees of the Ohio police and fire pension fund, or state highway patrol retirement board, the commission also shall report its findings to the Ohio retirement study council.

(b) If the Ohio ethics commission reports its findings tothe appropriate prosecuting authority under division (C)(1)(a) ofthis section and the prosecuting authority has not initiated anyofficial action on those findings within ninety days afterreceiving the commission's report of them, the commissionmaypublicly comment that no official action has been taken onitsfindings, except that the commission shall make no comment inviolation of the Rules of Criminal Procedure or about anyindictment that has been sealed pursuant to any law or thoserules. The commission shall make no comment regarding the meritsof its findings. As used in division (C)(1)(b) of this section,"official action" means prosecution, closure after investigation,or grand jury action resulting in a true bill of indictment or notrue bill of indictment.

(2) If the appropriate ethics commission does not find byapreponderance of the evidence that the facts alleged in thecomplaint are true and constitute a violation of section 102.02, 102.021,102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Codeorif the commission has not scheduled a hearing within ninetydaysafter the complaint is filed or has not finally disposed ofthecomplaint within six months after it has been heard, it shalldismiss the complaint and notify the accused person in writing ofthe dismissal of the complaint. The commission shall not make areport of its finding unless the accused person requests areport.Upon the request of the accused person, the commissionshall makea public report of the finding, but in this case allevidence andthe record of the hearing shall remain confidentialunless theaccused person also requests that the evidence andrecord be madepublic. Upon request by the accused person, thecommission shallmake the evidence and the record available forpublic inspection.

(D) The appropriate ethics commission, or a member of the commission, mayadminister oaths, and the commission may issue subpoenas to anyperson in the state compelling the attendance of witnesses andtheproduction of relevant papers, books, accounts, and records.Thecommission shall issue subpoenas to compel the attendance ofwitnesses and the production of documents upon the request of anaccused person. Section 101.42 of the Revised Code shall governthe issuance of these subpoenas insofar as applicable. Upon therefusal of any person to obey a subpoena or to be sworn or toanswer as a witness, the commission may apply to the court ofcommon pleas of Franklin county under section 2705.03 of theRevised Code. The court shall hold proceedings in accordancewithChapter 2705. of the Revised Code. The commission or theaccusedperson may take the depositions of witnesses residingwithin orwithout the state in the same manner as prescribed bylaw for thetaking of depositions in civil actions in the courtof commonpleas.

(E) At least once each year, the Ohio ethics commissionshall report on its activities of the immediately preceding yearto the majority and minority leaders of the senate and house ofrepresentatives of the general assembly. The report shallindicate the total number of complaints received, initiated, andinvestigated by the commission, the total number of complaintsforwhich formal hearings were held, and the total number ofcomplaints for which formal prosecution was recommended orrequested by the commission. The report also shall indicate thenature of the inappropriate conduct alleged in each complaint andthe governmental entity with which any employee or official thatis the subject of a complaint was employed at the time of thealleged inappropriate conduct.

(F) All papers, records, affidavits, and documents uponanycomplaint, inquiry, or investigation relating to theproceedingsof the appropriate ethics commission shall be sealed and areprivate andconfidential, except as otherwise provided in thissection andsection 102.07 of the Revised Code.

(G)(1) When a complaint or charge is before it, the Ohioethics commission or the appropriate prosecuting authority, inconsultation with the person filing the complaint or charge, theaccused, and any other person the commission or prosecutingauthority considers necessary, may compromise or settle thecomplaint or charge with the agreement of the accused. Thecompromise or settlement may include mediation, restitution,rescission of affected contracts, forfeiture of any benefitsresulting from a violation or potential violation of law,resignation of a public official or employee, or any other reliefthat is agreed upon between the commission or prosecutingauthority and the accused.

(2) Any settlement agreement entered into under division(G)(1) of this section shall be in writing and be accompanied byastatement of the findings of the commission or prosecutingauthority and the reasons for entering into the agreement. Thecommission or prosecuting authority shall retain the agreementandstatement inthe commission's orprosecutingauthority's officeand, inthecommission's orprosecutingauthority'sdiscretion,may make the agreement, the statement, andanysupportinginformation public, unless the agreement providesotherwise.

(3) If a settlement agreement is breached by the accused,the commission or prosecuting authority, inthe commission'sorprosecuting authority'sdiscretion, may rescind theagreement andreinstitute anyinvestigation, hearing, orprosecution of theaccused. Noinformation obtained from theaccused in reaching thesettlementthat is not otherwisediscoverable from the accusedshall be usedin any proceedingbefore the commission or by theappropriateprosecuting authorityin prosecuting the violation.Notwithstanding any other section ofthe Revised Code, if asettlement agreement is breached, anystatute of limitations foraviolation of this chapter or section2921.42 or 2921.43 of theRevised Code is tolled from the date thecomplaint or charge isfiled until the date the settlementagreement is breached.

Sec. 103.132. The legislative service commission, in conjunction with the legislative information systems office, shall establish and maintain an electronic database containing current and historical revenue and expenditure data for each school district in the state that is easy to use and readily accessible through the internet.

Sec. 108.05. (A) The lieutenant governor shall be a member of thegovernor'scabinet and shall preside at its meetings in the absence of the governor.

(B) The governor may appoint the lieutenant governor as an administrativedepartment head listed in section 121.03 of the Revised Code, ~~as directorof the office of criminal justice services pursuant to section 181.52 of theRevised Code,~~ asthe governor's representative on any board, agency, committee, orcommission of which thegovernor is a member and has the authority to appoint a representative, or inan advisory capacity to any nonelective board, agency, committee, orcommission in the executive department or may give the lieutenantgovernorany special assignment as the governor considers in the interest of the state.

(C) When carrying out any of the functions described in division (B) of thissection, the lieutenant governor shall be reimbursed from funds of theparticular authority for necessary expenses incurred in the conduct ofauthority business.

Sec. 109.54. (A) The bureau of criminal identificationandinvestigation may investigate any criminal activity in thisstatethat is of statewide or intercounty concern when requestedbylocal authorities and may aid federal authorities, whenrequested,in their investigation of any criminal activity inthis state. The bureau may investigate any criminal activity in this state related to the conduct of elections when requested by the secretary of state.The bureau may investigate any criminal activity inthis stateinvolving drug abuse or illegal drug distributionprohibited underChapter 3719. or 4729. of the Revised Code. Thesuperintendentand any agent of the bureau may participate, asthe director of anorganized crime task force established undersection 177.02 of theRevised Code or as a member of theinvestigatory staff of a taskforce established under that section, in aninvestigation oforganized criminal activity anywhere within this state undersections 177.01 to 177.03 of the Revised Code.

(B) The bureau may provide any trained investigativepersonnel and specialized equipment that are requested by anysheriff or chief of police, by the authorized designee of anysheriff or chiefof police, or by any other authorized lawenforcement officer to aid andassist the officer in theinvestigation and solution of any crime orthe control of anycriminal activity occurring withinthe officer's jurisdiction.This assistance shall be furnished by the bureauwithoutdisturbing or impairing any of the existing lawenforcementauthority or the prerogatives of local lawenforcement authoritiesor officers. Investigators providedpursuant to this section, orengaged in an investigation pursuantto section 109.83 of theRevised Code, may go armed in the samemanner as sheriffs andregularly appointed police officers undersection 2923.12 of theRevised Code.

(C)(1) The bureau shall obtain recording equipment thatcanbe used to record depositions of the type described indivision(A) of section 2152.81 and division (A) ofsection2945.481 ofthe Revised Code, or testimony of the typedescribed in division(D) of section 2152.81 anddivision (D) of section2945.481 or indivision (C) of section 2937.11 of theRevised Code, shall obtainclosed circuit equipment that can be used totelevise testimony ofthe type described in division (C) ofsection 2152.81 anddivision (C) of section 2945.481or indivision (B) of section2937.11 of the Revised Code, and shallprovide the equipment, uponrequest, to any court for use inrecording any deposition ortestimony of one of those typesor in televising thetestimony inaccordance with the applicable division.

(2) The bureau shall obtain the names, addresses, andtelephone numbers of persons who are experienced in questioningchildren in relation to an investigation of a violation ofsection2905.03, 2905.05, 2907.02, 2907.03, 2907.04,2907.05, 2907.06,2907.07, 2907.09,2907.21, 2907.23, 2907.24, 2907.31, 2907.32,2907.321,2907.322, 2907.323, or 2919.22 ofthe Revised Code or anoffense of violence and shallmaintain a list of those names,addresses, and telephone numbers. Thelist shall include aclassification of the names,addresses, and telephone numbers byappellate district. Uponrequest, the bureau shall provide anycounty sheriff, chief ofpolice, prosecuting attorney, villagesolicitor, city director oflaw, or similar chief legal officerwith the name, address, andtelephone number of any personcontained in the list.

Sec. 109.57. (A)(1) The superintendent of the bureau ofcriminal identification and investigation shall procure from whereverprocurable and filefor record photographs, pictures, descriptions, fingerprints,measurements, and other information that may be pertinent ofall persons who have been convicted of committing within this state afelony, any crimeconstituting a misdemeanor on the first offense and a felony on subsequentoffenses, or any misdemeanor described in division(A)(1)(a) of section 109.572 of the Revised Code, of allchildren under eighteen years of age who have been adjudicateddelinquent children for committing within this state an act that wouldbe a felony oran offense of violence if committed by an adult or who have beenconvicted ofor pleaded guilty to committing within this state a felony or an offenseof violence, and of allwell-known and habitual criminals. The personin charge of anycounty, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-based correctionalfacility, halfway house, alternative residential facility, orstate correctional institution and the person incharge of any state institution having custody of a personsuspected of having committed a felony, any crime constitutinga misdemeanor on the first offense and a felony on subsequent offenses,or any misdemeanor described in division (A)(1)(a)of section 109.572 of the Revised Code or having custody of a childunder eighteen years of age with respect to whom there isprobablecause to believe that the child may have committed an act that wouldbe a felony oran offense of violence if committed by an adult shall furnish suchmaterialto the superintendent ofthe bureau. Fingerprints, photographs, or otherdescriptive information of a child who is under eighteen years of age,has not been arrested or otherwise taken into custody for committing an actthat would be a felony or an offense ofviolence if committed by an adult, has notbeen adjudicated a delinquent child for committing an actthat would be a felony or an offense of violenceif committed by an adult, has not been convicted ofor pleaded guilty to committing afelony or anoffense of violence, and is not a child with respect to whom there isprobable cause tobelieve that the child may have committed an actthat would be a felony oran offense of violence if committed by an adultshall not be procured by the superintendent or furnished by anyperson in charge of anycounty, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-based correctionalfacility, halfway house, alternative residential facility, orstate correctional institution, except asauthorized in section 2151.313 of the Revised Code.

(2) Every clerk of acourt of record in this state, other than thesupreme court or a court of appeals, shall send to thesuperintendent ofthe bureau a weekly report containing a summary of each caseinvolving a felony, involving any crime constituting amisdemeanor on thefirst offense and a felony on subsequent offenses, involving a misdemeanordescribed in division (A)(1)(a) of section 109.572of the Revised Code, or involving anadjudication in a case in which a child under eighteen years of age wasalleged to be a delinquent childfor committing an act that would be afelony or an offense of violence if committed byan adult. The clerkof the court of common pleas shall include in the report and summary the clerksends under this division all information described in divisions(A)(2)(a) to (f) of this sectionregarding a case before the court of appeals that is served by thatclerk. The summary shall be written on the standard formsfurnished by thesuperintendent pursuant to division (B) of this section and shallinclude the following information:

(a) The incident tracking number contained on the standard formsfurnished by the superintendent pursuant to division (B) of thissection;

(d) The date that the person was convicted of or pleaded guiltyto the offense, adjudicated a delinquent child for committing the act thatwould bea felony or anoffense of violence if committed by an adult, found not guilty of theoffense, or found not to be a delinquent child for committing an act thatwould be afelony or anoffense of violence if committed by an adult, the date of an entrydismissingthe charge, an entry declaring a mistrial of the offense in which the personis discharged, an entry finding that the person or child is not competent tostand trial, or an entry of a nolle prosequi, or the date of any otherdetermination that constitutes final resolution of the case;

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

(f) If the person or child was convicted, pleaded guilty, or wasadjudicated a delinquent child, the sentence orterms of probation imposed or any other disposition of theoffender or the delinquent child.

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

(3) The superintendent shall cooperate with and assistsheriffs,chiefs of police, and other law enforcement officers in the establishment ofa complete system of criminal identification and in obtainingfingerprints and other means of identification of all personsarrested on a charge of a felony, any crime constituting amisdemeanor on the first offense and a felony on subsequentoffenses, or a misdemeanor described in division(A)(1)(a) of section 109.572 of the Revised Code and of all childrenundereighteen years of age arrested or otherwise taken into custody for committingan act that wouldbe a felony or an offense of violence if committed by an adult. Thesuperintendent also shall file for record thefingerprint impressions of all persons confined in a county, multicounty,municipal, municipal-county, or multicounty-municipal jail or workhouse,community-based correctional facility, halfway house,alternative residential facility, or state correctional institution forthe violation of statelaws and of all children undereighteen years of age whoare confined in a county, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-basedcorrectional facility, halfway house, alternative residential facility, orstate correctionalinstitution or in anyfacility for delinquent children for committing an actthat would be a felony oran offense of violence if committed by an adult, and any otherinformationthat the superintendent may receive from law enforcementofficials of the state and its political subdivisions.

(4) The superintendent shall carry out Chapter 2950. oftheRevised Code with respect to the registration ofpersons who are convicted of or plead guiltyto either a sexually oriented offense that is not a registration-exempt sexually oriented offense or a child-victim oriented offense and with respect to all other duties imposed onthe bureau under that chapter.

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

(B) The superintendent shall prepare and furnish to everycounty, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-based correctionalfacility, halfway house, alternative residential facility, orstate correctional institution and to every clerk of a court in thisstate specified in division (A)(2) of thissection standard forms for reporting the information requiredunder division (A) of thissection. The standard forms that the superintendent prepares pursuant tothis division may be in a tangible format, in an electronic format, or in bothtangible formats and electronic formats.

(C) The superintendent may operate a center forelectronic, automated, or other data processing for the storageand retrieval of information, data, and statistics pertaining tocriminals and to children under eighteen years of age who are adjudicateddelinquent children for committing anact that would be a felony or an offense ofviolence if committed by an adult, criminal activity, crime prevention,lawenforcement,and criminal justice, and may establish and operate a statewidecommunications network to gather and disseminate information,data, and statistics for the use of law enforcement agencies. Thesuperintendent may gather, store, retrieve, anddisseminate information, data, and statistics that pertain to children who areunder eighteen years of age and that are gathered pursuant to sections 109.57to 109.61 of the Revised Code together with information, data, andstatistics that pertain to adults and that are gathered pursuant to thosesections. In addition to any other authorized use of information, data, and statistics of that nature, the superintendent or the superintendent's designee may provide and exchange the information, data, and statistics pursuant to the national crime prevention and privacy compact as described in division (A)(5) of this section.

(D) The information and materials furnished to thesuperintendent pursuant to division (A) of this section andinformation and materials furnished to any board or person underdivision (F) or (G) of this section are not public records under section149.43 of the Revised Code.

(E) The attorney general shall adopt rules, in accordancewith Chapter 119. of the Revised Code, setting forth theprocedure by which a person may receive or release informationgathered by the superintendent pursuant todivision (A) of thissection. A reasonable fee may be charged for this service. If atemporary employment service submits a request for a determinationof whether a person the service plans to refer to an employmentposition has been convicted of or pleaded guilty to an offenselisted in division (A)(1), (3), (4), (5), or (6) of section 109.572of the Revised Code, the request shall be treated as a singlerequest and only one fee shall be charged.

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

(2)(a) In addition to or in conjunction with any request thatis required to be made under section 109.572, 2151.86, 3301.32,3301.541, 3319.39, 3701.881, 5104.012, 5104.013, 5123.081, 5126.28,5126.281, or 5153.111 of the Revised Code, the board of educationof any school district; the director of mental retardation anddevelopmental disabilities; any county board of mental retardationand developmental disabilities; any entity under contract with acounty board of mental retardation and developmentaldisabilities; the chief administrator of any chartered nonpublicschool; the chief administrator of any home health agency;the chief administrator of or person operating any childday-care center, type A family day-care home, or type B familyday-care home licensed or certified under Chapter 5104. of theRevised Code; the administrator of any type C family day-carehome certified pursuant to Section 1 of Sub. H.B. 62 of the 121stgeneral assembly or Section 5 of Am. Sub. S.B. 160 of the 121stgeneral assembly; the chief administrator of any head start agency;or the executive director of a public children services agencymay request that the superintendent of the bureau investigate anddetermine, with respect to any individual who has applied foremployment in any position after October 2, 1989, or any individualwishing to apply for employment with a board of education mayrequest, with regard to theindividual, whether the bureau has anyinformation gathered under division (A) of this section thatpertains to that individual. On receipt of the request, thesuperintendent shall determine whether that informationexistsand, upon request of the person, board, or entity requestinginformation, also shall request from the federal bureau ofinvestigation any criminal records it has pertainingto thatindividual. The superintendent or the superintendent's designee also may request criminal history records from other states or the federal government pursuant to the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code. Within thirty days of the date that the superintendentreceives arequest, the superintendent shall send to the board, entity, orperson a report of any information that the superintendentdetermines exists,including information contained in records that have been sealedunder section 2953.32 of the Revised Code, and, within thirtydays of its receipt, shall send the board, entity, or person areport of any information received from the federalbureau of investigation, other than information the disseminationof which is prohibited by federal law.

(b) When a board of education is required to receive informationunder this section as a prerequisite to employment of anindividual pursuant to section 3319.39 of the Revised Code, it may accept acertified copy of records that were issuedby the bureau of criminal identification and investigation and that arepresented by an individual applying for employment with thedistrict in lieu of requesting that information itself. In such a case, theboard shall accept the certified copy issued by the bureau in order to make aphotocopy of it for that individual's employment application documents andshall return the certified copy to the individual. In a case of that nature,a district only shallaccept a certified copy of records of that nature within one yearafter the date of their issuance by thebureau.

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

(4) When the superintendent of the bureau receives arequest for information under section 3319.291of the Revised Code, the superintendent shall proceed as if therequest has been received from a school district board ofeducation under division (F)(2) of this section.

(5) When a recipient of ~~an OhioReads~~ a classroom~~orcommunity~~ readingimprovement grant paid under section 3301.86 ~~or 3301.87~~ of the RevisedCode~~or an entity approved by the OhioReads council~~requests, with respect to any individual who applies to participate inproviding any program or service~~through an entity approved by the OhioReads councilor~~funded in whole or inpart by the grant, the information that a school district board ofeducation is authorized to request under division(F)(2)(a) ofthis section, the superintendent of the bureau shall proceed as if therequest has beenreceived from a school district board of education under division(F)(2)(a) of this section.

(G) In addition to or in conjunction withany request that is required to be made under section 173.41, 3701.881,3712.09,3721.121, or 3722.151 of the RevisedCode with respect to an individual who has applied for employment ina position that involves providing direct care to an older adult, the chiefadministrator of a PASSPORT agency that provides services through thePASSPORT program created under section 173.40 of the RevisedCode, home health agency,hospice care program, home licensed under Chapter 3721.of the Revised Code, adult day-care programoperated pursuant to rules adopted under section 3721.04 of theRevised Code, or adult care facilitymay request that the superintendent of the bureauinvestigate and determine, with respect to any individual who hasapplied afterJanuary 27, 1997, for employment in a position thatdoes not involve providingdirect care to an older adult, whether the bureau has any informationgathered under division (A) of this section that pertainsto that individual. On receipt of the request, thesuperintendent shall determine whether that informationexistsand, on request of the administrator requesting information,shall also request from the federal bureau of investigation anycriminal records it has pertaining to thatindividual. The superintendent or the superintendent's designee also may request criminal history records from other states or the federal government pursuant to the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code. Withinthirty days of the date a request is received, the superintendentshall send to the administrator a report of anyinformation determined to exist, including information containedin records that have been sealed under section 2953.32 of theRevised Code, and, within thirty days of itsreceipt, shall send the administrator a report of anyinformation received from the federal bureau ofinvestigation,other than information the dissemination of which is prohibitedby federal law.

(H) Information obtained by a board,administrator, or other person under this section is confidentialand shall not be released or disseminated.

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

Sec. 109.579. (A) On receipt of a request pursuant to division (B) of section 4123.444 of the Revised Code, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, drug trafficking, or any criminal offense involving money or securities, as set forth in Chapters 2909., 2911., 2913., 2915., 2921., 2923., and 2925. of the Revised Code or other law of this state, or the laws of any other state or of the United States that are substantially equivalent to those offenses.

(B) The superintendent shall conduct a criminal records check pursuant to division (A) of this section as follows:

(1) The superintendent shall review or cause to be reviewed any relevant information gathered and compiled by the bureau under division (A) of section 109.57 of the Revised Code that relates to the person who is the subject of the request, including any relevant information contained in records that have been sealed under section 2953.32 of the Revised Code.

(2) If the request received by the superintendent asks for information from the federal bureau of investigation, the superintendent shall request from the federal bureau of investigation any information it has with respect to the person who is the subject of the request. The superintendent shall review or cause to be reviewed any information that the superintendent receives from the federal bureau of investigation.

(3) The superintendent shall forward the results of a criminal records check conducted pursuant to this division to the administrator of workers' compensation.

(C)(1) The superintendent shall prescribe a form to obtain the information necessary to conduct a criminal records check from any person for whom a criminal records check is requested pursuant to division (B) of section 4123.444 of the Revised Code. The form that the superintendent prescribes pursuant to this division may be in a tangible format, in an electronic format, or in both tangible and electronic formats.

(2) The superintendent shall prescribe standard impression sheets to obtain the fingerprint impressions of any person for whom a criminal records check is requested pursuant to section 4123.444 of the Revised Code. Any person for whom the administrator requests the superintendent to conduct a criminal records check pursuant to that section shall have the person's fingerprint impressions made at a county sheriff's office, a municipal police department, or any other entity with the ability to make fingerprint impressions on the standard impression sheets prescribed by the superintendent. The office, department, or entity may charge the person a reasonable fee for making the impressions. The standard impression sheets the superintendent prescribes pursuant to this division may be in a tangible format, in an electronic format, or in both tangible and electronic formats.

(3) The superintendent may prescribe methods of forwarding fingerprint impressions and information necessary to conduct a criminal records check. The methods shall include, but are not limited to, electronic methods.

(D) A determination whether any information exists that indicates that a person previously has been convicted of or pleaded guilty to any offense listed or described in division (A) of this section that the superintendent makes pursuant to information considered in a criminal records check under this section is valid for the person who is the subject of that criminal records check for a period of one year after the date the superintendent makes that determination.

(E) The superintendent shall prescribe and charge a reasonable fee for providing a criminal records check requested under section 4123.444 of the Revised Code. If another request for a criminal records check is made under this section for a person for whom a valid determination under division (D) of this section is available, the superintendent shall provide the determination for a reduced fee.

Sec. 109.79. (A) The Ohio peace officer trainingcommissionshall establish and conduct a training school for law enforcementofficers of any political subdivision of the state or of thestate public defender's office. The school shall be known as theOhio peace officer training academy. No bailiff or deputybailiff of a court of record of this state and no criminalinvestigator employed by the state public defender shall bepermitted to attend the academy for training unless the employingcourt of the bailiff or deputy bailiff or the state publicdefender, whichever is applicable, has authorized the bailiff,deputy bailiff, or investigator to attend the academy.

The Ohio peace officer training commission shall developthetraining program, which shall include courses in both the civiland criminal functions of law enforcement officers, a course incrisis intervention with six or more hours of training, andtraining in the handling of missing children and child abuse andneglect cases, and shall establish rules governing qualificationsfor admission to the academy. The commission mayrequirecompetitive examinations to determine fitness of prospectivetrainees, so long as the examinations or other criteria foradmission to the academy are consistent with the provisions ofChapter 124. of the Revised Code.

The Ohio peace officer training commission shalldeterminetuition costs which shall be sufficient in the aggregate to paythe costs of operating the academy. The costs of acquiring andequipping the academy shall be paid from appropriations made bythe general assembly to the Ohio peace officer trainingcommissionfor that purpose, or from gifts or grants received for thatpurpose, or from fees for goods related to the academy.

The law enforcement officers, during the period of theirtraining, shall receive compensation as determined by thepolitical subdivision that sponsors them or, if the officer is acriminal investigator employed by the state public defender, asdetermined by the state public defender. The politicalsubdivision may pay the tuition costs of the law enforcementofficers they sponsor and the state public defender may pay thetuition costs of criminal investigators of that office who attendthe academy.

If trainee vacancies exist, the academy may train and issuecertificates of satisfactory completion to peace officers who areemployed by a campus police department pursuant to section1713.50 of the Revised Code, by a qualified nonprofit corporationpolice department pursuant to section 1702.80 of the RevisedCode, or by a railroad company, who are amusement park police officers appointed and commissioned by a judge of the appropriate municipal court or county court pursuant to section 4973.17 of the Revised Code, or who are hospital policeofficers appointed and commissioned by the governor pursuant tosections 4973.17 to 4973.22 of the Revised Code, provided that nosuch officer shall be trained at the academy unless the officermeets the qualifications established for admission to the academyand the qualified nonprofit corporation police department,railroad company, hospital, or amusement park or the private college oruniversity that established the campus police department prepaysthe entire cost of the training. A qualified nonprofitcorporation police department, railroad company, hospital, or amusement park or aprivate college or university that has established a campuspolice department is not entitled to reimbursement from the statefor any amount paid for the cost of training the railroadcompany's peace officers or the peace officers of the qualifiednonprofit corporation police department, campus policedepartment, hospital, or amusement park.

The academy shall permit investigators employed by thestate medical board to take selected courses that the boarddetermines are consistent with its responsibilities for initialand continuing training of investigators as required undersections 4730.26 and 4731.05 of theRevised Code. The boardshall pay the entire cost of training that investigators receiveat the academy.

(1) "Law enforcement officers" include any undercover drugagent, any bailiff or deputy bailiff of a court of record, andany criminal investigator who is employed by the state publicdefender.

(a) Is employed by a county, township, or municipalcorporation for the purposes set forth in division (B)(2)(b) ofthis section but who is not an employee of a county sheriff'sdepartment, of a township constable, or of the police departmentof a municipal corporation or township;

(b) In the course of the person's employment by a county,township,or municipal corporation, investigates and gathers informationpertaining to persons who are suspected of violating Chapter2925. or 3719. of the Revised Code, and generally does not wear auniform in the performance of the person's duties.

(3) "Crisis intervention training" has the same meaning asin section 109.71 of the Revised Code.

(4) "Missing children" has the same meaning as in section2901.30 of the Revised Code.

Sec. 109.91. (A) There is hereby established within theoffice of the attorney general the crime victims assistanceoffice.

(B) There is hereby established the state victimsassistance advisory committee. The committee shall consist of a chairperson,to be appointed by the attorney general, ~~four~~ three exofficio members, and fifteen members to be appointed by theattorney general as follows: one member who represents the Ohiovictim-witness association; three members who represent localvictim assistance programs, including one from a municipallyoperated program and one from a county-operated program; onemember who represents the interests of elderly victims; onemember who is a board member of any statewide or localorganization that exists primarily to aid victims of domesticviolence, or who is an employee of, or counselor for, such anorganization; one member who is an employee or officer of acounty probation department or a probation department operated bythe department of rehabilitation and correction; one member whois a county prosecuting attorney; one member who is a city lawdirector; one member who is a county sheriff; one member who is amember or officer of a township or municipal police department;one member who is a court of common pleas judge; one member whois a municipal court judge or county court judge; and two memberswho are private citizens and are not government employees.

The committee shall include the following ex officio,nonvotingmembers: ~~the chief justice of the supreme court,~~ the attorneygeneral, one member of the senate to be designated by thepresident of the senate, and one member of the house ofrepresentatives to be designated by the speaker of the house.

Members of the committee shall serve without compensation,butshall be reimbursed for travel and other necessary expenses thatare incurred in the conduct of their official duties as membersof the committee. The chairpersonand members of the committee appointed bythe attorney general shall serve at the pleasure of the attorneygeneral. The ~~chief justice of the supreme court and the~~ attorneygeneral shall serve on the committee until the end of theterm ofoffice that qualified ~~them~~ the attorney general for membership on thecommittee. Themember of the senate and the member of the house ofrepresentatives shall serve at the pleasure of the president ofthe senate and the speaker of the house of representatives,respectively.

(1) Advise the crime victims assistance office indetermining crime and delinquency victim service needs,determining crime and delinquency victim policies for the state,and improving and exercising leadership in the quality of crimeand delinquency victim programs in the state;

(2) Review and recommend to the crime victims assistanceoffice the victim assistance programs that should be consideredfor the receipt of state financial assistance pursuant to section109.92 of the Revised Code. The financial assistance allocationrecommendations of the committee shall be based on thefollowingpriorities:

(b) Programs offering or proposing to offer the broadestrange of services and referrals to the community served,including medical, psychological, financial, educational,vocational, and legal services that were not in existence on July1, 1985, shall be given second priority;

(D) As used in this section and section 109.92 of theRevised Code, "victim assistance program" includes, but is notlimited to a program that provides at least one of the following:

(1) Services to victims of any offense of violence ordelinquent act that would be an offense of violence if committedby an adult;

(2) Financial assistance or property repair services tovictims of crime or delinquent acts;

(4) Assistance to victims of crime or delinquent actsunder the operation of any political subdivision of the state ora branch of the criminal justice system set forth in division(B)(1)(a), ~~(2)~~(b), or ~~(3)~~(c) of section ~~181.51~~ 5502.61 of the Revised Code;

(5) Technical assistance to persons or organizations thatprovide services to victims of crime or delinquent acts under theoperation of a branch of the criminal justice system set forth in~~divisions~~ division (B)(1)(a), ~~(2)~~(b), ~~and (3)~~ or (c) of section ~~181.51~~ 5502.61 of the RevisedCode.

A victim assistance program does not include the programfor the reparation of crime victims established pursuant toChapter 2743. of the Revised Code.

Sec. 109.98. As used in this section, "state retirement board" means the public employees retirement board, board of trustees of the Ohio police and fire pension fund, school employees retirement board, state teachers retirement board, and state highway patrol retirement board.

If a member of a state retirement board breaches the member's fiduciary duty to the retirement system, the attorney general may maintain a civil action against the board member for harm resulting from that breach. ~~The~~ Notwithstanding sections 145.10, 742.09, 3307.13, 3309.13, and 5505.23 of the Revised Code, after being informed of an allegation that the entire board has breached its fiduciary duty, the state retirement board may retain independent legal counsel, including legal counsel provided by the board's fiduciary insurance carrier, to advise the board and to represent the board.

The attorney general may recover damages or be granted injunctive relief, which shall include the enjoinment of specified activities and the removal of the member from the board. Any damages awarded shall be paid to the retirement system. The authority to maintain a civil action created by this section is in addition to any authority the attorney general possesses under any other provision of the Revised Code.

Sec. 109.981. If a voting member of workers' compensation oversight commission breaches the member's fiduciary duty to the bureau of workers' compensation, the attorney general may maintain a civil action against the board member for harm resulting from that breach. Notwithstanding section 4121.128 of the Revised Code, after being informed of an allegation that the entire oversight commission has breached its fiduciary duty, the oversight commission may retain independent legal counsel, including legal counsel provided by the oversight commission's fiduciary insurance carrier, to advise the board and to represent the board. The attorney general may recover damages or be granted injunctive relief, which shall include the enjoinment of specified activities and the removal of the member from the board. Any damages awarded shall be paid to the bureau. The authority to maintain a civil action created by this section is in addition to any authority the attorney general possesses under any other provision of the Revised Code.

Sec. 117.10. The auditor of state shall audit all public offices as providedin this chapter. The auditor of state also may audit theaccounts of private institutions,associations, boards, and corporationsreceiving public money for their useand may require of them annual reports in such form as theauditor of state prescribes.

If the auditor of state performs or contracts for the performance of an audit, including a special audit, of the public employees retirement system, school employees retirement system, state teachers retirement system, state highway patrol retirement system, or Ohio police and fire pension fund, the auditor of state shall make a timely report of the results of the audit to the Ohio retirement study council.

The auditor of state may audit the accounts of any provider as defined insection 5111.06 of the Revised Code~~, if requested by thedepartment ofjob and family services~~.

If a public office has been audited by an agency of the United Statesgovernment, the auditor of state may, if satisfied that thefederalaudit has been conducted according to principles and procedures not contraryto those of the auditor of state, use and adopt the federal audit and reportin lieu of an audit by the auditor of state's own office.

Within thirty days after the creation or dissolution or the winding up ofthe affairs of any public office, that public office shall notify the auditorof state in writing that this action has occurred.

Sec. 120.06. (A)(1) The state public defender, whendesignated by the court or requested by a county public defenderor joint county public defender, may provide legal representationin all courts throughout the state to indigent adults andjuveniles who are charged with the commission of an offense oractfor which the penalty or any possible adjudication includesthepotential loss of liberty.

(2) The state public defender may provide legalrepresentation to any indigent person who, while incarcerated inany state correctional institution, is charged with a felonyoffense,for which the penalty or any possible adjudication thatmay beimposed by a court upon conviction includes the potentialloss ofliberty.

(3) The state public defender may provide legalrepresentation to any person incarcerated in any correctionalinstitution of the state, in any matter in which the personasserts the person is unlawfully imprisoned or detained.

(4) The state public defender, in any case in which thestatepublic defender has provided legal representation or isrequested to do so bya county public defender or joint countypublic defender, mayprovide legal representation on appeal.

(5) The state public defender, when designated by thecourtor requested by a county public defender, joint countypublicdefender, or the director of rehabilitation andcorrection, shallprovide legal representation in parole andprobation revocationmattersor matters relating to the revocation of community controlor post-release control under a community control sanction orpost-release control sanction, unless the state public defenderfinds that the allegedparole or probation violatoror allegedviolator of a community control sanction or post-release controlsanction has thefinancial capacity to retainthe allegedviolator's owncounsel.

(6) If the state public defender contracts with a countypublic defender commission, a joint county public defendercommission, or a board of county commissioners for the provisionof services, under authority of division (C)(7) of section 120.04of the Revised Code, the state public defender shall providelegalrepresentation in accordance with the contract.

(B) The state public defender shall not be required toprosecute any appeal, postconviction remedy, or other proceedingpursuant to division (A)(3), (4), or (5) of this section, unlessthe state public defender first is satisfied that there isarguable merit to the proceeding.

(C) A court may appoint counsel or allow an indigentpersonto select the indigent's own personal counsel to assist the statepublic defender as co-counsel when the interests of justice sorequire. When co-counsel is appointed to assist the state publicdefender, the co-counsel shall receive any compensation that thecourt may approve, not to exceed the amounts provided for insection 2941.51 of the Revised Code.

(D)(1) When the state public defender is designated by thecourt or requested by a county public defender or joint countypublic defender to provide legal representation for an indigentperson in any case, other than pursuant to a contract enteredintounder authority of division (C)(7) of section 120.04 of theRevised Code, the state public defender shall send to the countyin which the case is filed ~~an itemized~~ a bill ~~for fifty per cent of~~ detailingthe actual cost of the representation that separately itemizes legal fees and expenses. The county, upon receiptof an itemized bill from the state public defender pursuant tothis division, shall ~~pay fifty per cent of the actual cost of thelegal representation as set forth in the itemized bill.~~ pay the state public defender each of the following amounts:

(a) For the amount identified as legal fees in the itemized bill, one hundred per cent of the amount identified as legal fees less the state reimbursement rate as calculated by the state public defender pursuant to section 120.34 of the Revised Code for the month the case terminated, as set forth in the itemized bill;

(b) For the amount identified as expenses in the itemized bill, one hundred per cent.

(2) Upon payment of the itemized bill under division (D)(1) of this section, the county may submit the cost of the expenses, excluding legal fees, to the state public defender for reimbursement pursuant to section 120.33 of the Revised Code.

(3) When the state public defender provides investigation or mitigation services to private appointed counsel or to a county or joint county public defender as approved by the appointing court, other than pursuant to a contract entered into under authority of division (C)(7) of section 120.04 of the Revised Code, the state public defender shall send to the county in which the case is filed a bill itemizing the actual cost of the services provided. The county, upon receipt of an itemized bill from the state public defender pursuant to this division, shall pay one hundred per cent of the amount as set forth in the itemized bill. Upon payment of the itemized bill received pursuant to this division, the county may submit the cost of the investigation and mitigation services to the state public defender for reimbursement pursuant to section 120.33 of the Revised Code.

(4) There ishereby created in the state treasury the county representationfund for the deposit of moneys received from counties under thisdivision. All moneys credited to the fund shall be used by thestate public defender to provide legal representation forindigentpersons when designated by the court or requested by acounty orjoint county public defender or to provide investigation or mitigation services, including investigation or mitigation services to private appointed counsel or a county or joint county public defender, as approved by the court.

(E)(1) Notwithstanding any contrary provision of sections109.02, 109.07, 109.361 to 109.366, and 120.03 of the RevisedCodethat pertains to representation by the attorney general, anassistant attorney general, or special counsel of an officer oremployee, as defined in section 109.36 of the Revised Code, or ofan entity of state government, the state public defender mayelectto contract with, and to have the state pay pursuant todivision(E)(2) of this section for the services of, privatelegal counselto represent the Ohio public defender commission,the state publicdefender, assistant state public defenders,other employees of thecommission or the state public defender,and attorneys describedin division (C) of section 120.41 of theRevised Code in amalpractice or other civil action or proceedingthat arises fromalleged actions or omissions related toresponsibilities derivedpursuant to this chapter, or in a civilaction that is based uponalleged violations of the constitutionor statutes of the UnitedStates, including section 1983 of Title42 of the United StatesCode, 93 Stat. 1284 (1979), 42 U.S.C.A.1983, as amended, and thatarises from alleged actions oromissions related toresponsibilities derived pursuant to thischapter, if the statepublic defender determines, in good faith,that the defendant inthe civil action or proceeding did not actmanifestly outside thescope of the defendant's employment or officialresponsibilities,with malicious purpose, in bad faith, or in awanton or recklessmanner. If the state public defender electsnot to contractpursuant to this division for private legalcounsel in a civilaction or proceeding, then, in accordance withsections 109.02,109.07, 109.361 to 109.366, and 120.03 of theRevised Code, theattorney general shall represent or provide forthe representationof the Ohio public defender commission, thestate public defender,assistant state public defenders, otheremployees of thecommission or the state public defender, orattorneys described indivision (C) of section 120.41 of theRevised Code in the civilaction or proceeding.

(2)(a) Subject to division (E)(2)(b) of this section,payment from the state treasury for the services of private legalcounsel with whom the state public defender has contractedpursuant to division (E)(1) of this section shall be accomplishedonly through the following procedure:

(i) The private legal counsel shall file with the attorneygeneral a copy of the contract; a request for an award of legalfees, court costs, and expenses earned or incurred in connectionwith the defense of the Ohio public defender commission, thestatepublic defender, an assistant state public defender, anemployee,or an attorney in a specified civil action orproceeding; awritten itemization of those fees, costs, andexpenses, includingthe signature of the state public defenderand the state publicdefender's attestation that the fees,costs, and expenses wereearned or incurred pursuant to division (E)(1) of this section tothe best of the state public defender's knowledge andinformation;a written statementwhether the fees, costs, and expenses are forall legal servicesto be rendered in connection with that defense,are only forlegal services rendered to the date of the requestand additionallegal services likely will have to be provided inconnection withthat defense, or are for the final legal servicesrendered inconnection with that defense; a written statementindicatingwhether the private legal counsel previously submitteda requestfor an award under division (E)(2) of this section inconnectionwith that defense and, if so, the date and the amountof eachaward granted; and, if the fees, costs, and expenses arefor alllegal services to be rendered in connection with thatdefense orare for the final legal services rendered in connectionwith thatdefense, a certified copy of any judgment entry in thecivilaction or proceeding or a signed copy of any settlementagreemententered into between the parties to the civil action orproceeding.

(ii) Upon receipt of a request for an award of legal fees,court costs, and expenses and the requisite supportivedocumentation described in division (E)(2)(a)(i) of this section,the attorney general shall review the request and documentation;determine whether any of the limitations specified in division(E)(2)(b) of this section apply to the request; and, if an awardof legal fees, court costs, or expenses is permissible afterapplying the limitations, prepare a document awarding legal fees,court costs, or expenses to the private legal counsel. Thedocument shall name the private legal counsel as the recipient ofthe award; specify the total amount of the award as determined bythe attorney general; itemize the portions of the award thatrepresent legal fees, court costs, and expenses; specify anylimitation applied pursuant to division (E)(2)(b) of this sectionto reduce the amount of the award sought by the private legalcounsel; state that the award is payable from the state treasurypursuant to division (E)(2)(a)(iii) of this section; and beapproved by the inclusion of the signatures of the attorneygeneral, the state public defender, and the private legalcounsel.

(iii) The attorney general shall forward a copy of thedocument prepared pursuant to division (E)(2)(a)(ii) of thissection to the director of budget and management. The award oflegal fees,court costs, or expenses shall be paid out of thestate public defender'sappropriations, to the extent there is asufficient available balance in thoseappropriations. If thestate public defender does not have a sufficientavailable balancein the state public defender's appropriations to pay theentireaward of legal fees, court costs, or expenses, the directorshallmake application for a transfer of appropriationsout of theemergency purposesaccount or any other appropriation foremergencies orcontingencies in an amount equal to the portion oftheaward that exceeds the sufficient available balance in thestate publicdefender's appropriations. A transfer ofappropriations out ofthe emergencypurposes account or any otherappropriation for emergencies or contingencies shall beauthorizedif there are sufficient moneys greater than the sumtotal of thenpending emergency purposes account requests, orrequests forreleases from the other appropriation. Ifa transfer ofappropriations out ofthe emergency purposes account orotherappropriation for emergencies or contingencies is made to payanamount equal to the portion of theaward that exceeds thesufficient available balance in the state publicdefender'sappropriations, the director shall cause the paymenttobe madetothe private legal counsel. If sufficient moneys do not existinthe emergency purposes account or other appropriation foremergencies or contingencies to pay an amount equal to the portionofthe award that exceeds the sufficient available balance in thestate publicdefender's appropriations, the private legalcounselshall request the general assembly to make anappropriationsufficient to pay an amount equal to the portion of theaward thatexceeds the sufficient available balance in the state publicdefender's appropriations, and no payment in that amount shallbemade until the appropriation has been made. The private legalcounsel shall make the request during the current biennium andduring each succeeding biennium until a sufficient appropriationis made.

(b) An award of legal fees, court costs, and expensespursuant to division (E) of this section is subject to thefollowing limitations:

(i) The maximum award or maximum aggregate of a series ofawards of legal fees, court costs, and expenses to the privatelegal counsel in connection with the defense of the Ohio publicdefender commission, the state public defender, an assistantstatepublic defender, an employee, or an attorney in a specifiedcivilaction or proceeding shall not exceed fifty thousanddollars.

(ii) The private legal counsel shall not be awarded legalfees, court costs, or expenses to the extent the fees, costs, orexpenses are covered by a policy of malpractice or otherinsurance.

(iii) The private legal counsel shall be awarded legalfeesand expenses only to the extent that the fees and expensesarereasonable in light of the legal services rendered by theprivatelegal counsel in connection with the defense of the Ohiopublicdefender commission, the state public defender, anassistant statepublic defender, an employee, or an attorney in aspecified civilaction or proceeding.

(c) If, pursuant to division (E)(2)(a) of this section,theattorney general denies a request for an award of legal fees,court costs, or expenses to private legal counsel because of theapplication of a limitation specified in division (E)(2)(b) ofthis section, the attorney general shall notify the privatelegalcounsel in writing of the denial and of the limitation applied.

(d) If, pursuant to division (E)(2)(c) of this section, aprivate legal counsel receives a denial of an award notificationor if a private legal counsel refuses to approve a document underdivision (E)(2)(a)(ii) of this section because of the proposedapplication of a limitation specified in division (E)(2)(b) ofthis section, the private legal counsel may commence a civilaction against the attorney general in the court of claims toprove the private legal counsel's entitlement to the awardsought,to prove that division(E)(2)(b) of this section does not prohibitor otherwise limitthe award sought, and to recover a judgment forthe amount of theaward sought. A civil action under division(E)(2)(d) of thissection shall be commenced no later than twoyears after receiptof a denial of award notification or, if theprivate legalcounsel refused to approve a document under division(E)(2)(a)(ii) of this section because of the proposed applicationof a limitation specified in division (E)(2)(b) of this section,no later than two years after the refusal. Any judgment of thecourt of claims in favor of the private legal counsel shall bepaid from the state treasury in accordance with division(E)(2)(a)of this section.

(F) If a court appoints the office ofthe state publicdefender to represent a petitioner in apostconviction reliefproceeding under section 2953.21 of theRevised Code, thepetitioner hasreceived a sentence of death, and the proceedingrelates to thatsentence, all of the attorneys who represent thepetitioner inthe proceeding pursuant to the appointment, whetheran assistantstate public defender, the state public defender, oranotherattorney, shall be certified under Rule20 of the RulesofSuperintendence forthe Courtsof Ohio torepresent indigentdefendants charged with or convicted of anoffense forwhich thedeath penalty can be or has been imposed.

(1) "Community control sanction" has the same meaning as insection 2929.01 of the Revised Code.

(2) "Post-release control sanction" has the same meaning asin section 2967.01 of the Revised Code.

Sec. 120.07. There is hereby created in the state treasury the civil case filing fee fund to receive all funds deposited in the fund pursuant to sections 1901.26, 1907.24, and 2303.201 of the Revised Code. All money credited to the fund shall be used by the state public defender for the purpose of appointing assistant state public defenders and for providing other personnel, equipment, and facilities necessary for the operation of the state public defender office.

Sec. 120.13. (A) The county commissioners in any countymay establish a county public defender commission. Thecommission shall have five members, three of whom shall beappointed by the board of county commissioners, and two by thejudge, or the presiding judge if there is one, of the court ofcommon pleas of the county. At least one member appointed byeach of these appointing bodies shall be an attorney admitted tothe practice of law in this state.

(B) The board of county commissioners shall select aspecific day for the county public defender commission to beestablished and on which all members' appointments shall takeeffect, and shall notify the Ohio public defender commission ofthe date.

(C) Of the initial appointments made to the county publicdefender commission, two appointments by the county commissionersand one appointment by the court shall be for a term of two yearsending two years after the date the commission is established,and one appointment by each of the appointing bodies shall be fora term ending four years after the date the commission isestablished. Thereafter, terms of office shall be for fouryears, each term ending on the same day of the same month of theyear as did the term which it succeeds. Each member shall holdoffice from the date of ~~his~~ appointment until the end of the termfor which he the member was appointed. Any member appointed tofill avacancy occurring prior to the expiration of the term for which~~his~~ the member's predecessor was appointed shall hold office forthe remainderof such term. Any member shall continue in office subsequent tothe expiration date of ~~his~~ the member's term until ~~his~~a successor takes office,or until a period of sixty days has elapsed, whichever occursfirst.

(D) The members of the commission shall choose as ~~chairman~~chairpersonone of the commission members, who shall serve as ~~chairman~~chairperson fortwo years. Meetings shall be held at least quarterly and at suchother times as called by the ~~chairman~~ chairperson or by requestof the countypublic defender. Members of the commission may receive an amountfixed by the county commissioners, but not in excess of theamounts set for the members of the Ohio public defendercommission pursuant to section 124.14 of the Revised Code perdiem for every meeting of the board they attend, and necessaryexpenses including mileage for each mile necessarily traveled.

(E) The county commissioners may terminate the countypublic defender commission at any time if at least ninety daysprior to termination, the commissioners notify the Ohio publicdefender commission in writing of the termination date. Upon thetermination date all pending county public defender matters shallbe transferred to the state public defender, a joint countypublic defender, or appointed counsel.

(F) ~~Fifty per cent of the~~ The cost of representation in allmatters assumed by the state public defender shall be charged tothe counties in accordance with division (D) of section 120.06 ofthe Revised Code.

Sec. 120.23. (A) The boards of county commissioners intwo or more adjoining or neighboring counties may form themselvesinto a joint board and proceed to organize a district for theestablishment of a joint county public defender commission. Thecommission shall have three members from each county, who shallbe appointed by the board of county commissioners of the county.

(B) The boards shall agree on a specific date for thejoint county public defender commission to be established, onwhich date the appointments of all members shall take effect.The joint board shall notify the Ohio public defender commissionof the date.

(C) Of the initial appointments made by each county to thejoint county public defender commission, one appointment shall befor a term of one year ending one year after the date thecommission is established, one appointment shall be for a term oftwo years ending two years after the date the commission isestablished, and one appointment shall be for a period of threeyears, ending three years after the date the commission isestablished. Thereafter, terms of office shall be for threeyears, each term ending on the same day of the same month of theyear as did the term which it succeeds. Each member shall holdoffice from the date of ~~his~~ appointment until the end of the termfor which he the member was appointed. Any member appointed tofill avacancy occurring prior to the expiration of the term for which~~his~~ the member's predecessor was appointed shall hold office forthe remainderof the term. Any member shall continue in office subsequent tothe expiration date of ~~his~~ the member's term until ~~his~~a successor takes office,or until a period of sixty days has elapsed, whichever occursfirst.

(D) The members of the commission shall choose as ~~chairman~~chairpersonone of the commission members, who shall serve as ~~chairman~~chairperson fortwo years. Meetings shall be held at least quarterly and at suchother times as called by the ~~chairman~~ chairperson or by requestof the jointcounty public defender. Members of the commission may receive anamount fixed by the agreement of the boards of commissioners ofthe counties in the district, but not in excess of the amount setfor the members of the Ohio public defender commission pursuantto section 124.14 of the Revised Code per diem for every meetingof the commission they attend, and necessary expenses includingmileage for each mile necessarily traveled.

(E) The agreement of the boards of county commissionersestablishing the joint county public defender commission shallprovide for the allocation of the proportion of expenses to bepaid by each county, which may be based upon population, numberof cases, or such other factors as the commissioners determine tobe appropriate. The county commissioners may amend theiragreement from time to time to provide for a different allocationof the proportion of expenses to be paid by each county.

(F) The county auditor of the county, with the greatestpopulation is hereby designated as the fiscal officer of a jointcounty public defender district organized under this section.The county auditors of the several counties composing the jointcounty public defender commission district shall meet at thecommission office not less than once in each six months, toadjust accounts and to transact such other duties in connectionwith the commission as pertain to the business of their office.

(G) Each member of the board of county commissioners whomeets by appointment to consider the organization of a jointcounty public defender commission shall, upon presentation ofproperly certified accounts, be paid ~~his~~ the member's necessaryexpenses upona warrant drawn by the county auditor of ~~his~~ the member'scounty.

(H) The board of county commissioners of any county withina joint county public defender commission district may withdrawfrom the district. Such withdrawal shall not be effective untilat least ninety days after the board has notified the Ohio publicdefender commission, the joint county public defender commissionof the district, and each board of county commissioners in thedistrict, in writing of the termination date. The failure of aboard of county commissioners to approve an annual operatingbudget for the office of the joint county public defender asprovided in division (C)(1) of section 120.24 of the Revised Codeconstitutes a notice of withdrawal by the county from thedistrict, effective on the ninetieth day after commencement ofthe next fiscal year. Upon the termination date, all jointcounty public defender matters relating to the withdrawing countyshall be transferred to the state public defender, a countypublic defender, or appointed counsel.

(I) ~~Fifty per cent of the~~ The cost of representation in allmatters assumed by the state public defender shall be charged tothe counties in accordance with division (D) of section 120.06 ofthe Revised Code.

Members of the joint county public defender commission whoare residents of a county withdrawing from such district aredeemed to have resigned their positions upon the completion ofthe withdrawal procedure provided by this section. Vacanciesthus created shall not be filled.

If two or more counties remain within the district afterthe withdrawal, the boards of county commissioners of theremaining adjoining or neighboring counties may agree to continuethe operation of the joint county public defender commission andto reallocate the proportionate share of expenses to be paid byeach participating county.

Sec. 120.36. (A) If a person who is a defendant in a criminal case or a party in a case in juvenile court requests or is provided a state public defender, a county or joint county public defender, or any other counsel appointed by the court, the court in which the criminal case is initially filed or the juvenile court, whichever is applicable, shall assess, unless the application fee is waived or reduced, a non-refundable application fee of twenty-five dollars.

The court shall direct the person to pay the application fee to the clerk of court. The person shall pay the application fee at the time the person files an affidavit of indigency or a financial disclosure form with the court or within seven days of that date. If the person does not pay the application fee within that seven-day period, the court shall assess the application fee at sentencing or at the final disposition of the case.

If a case involving a felony that was initially filed in a municipal court or a county court is bound over to the court of common pleas and the defendant in the case failed to pay the application fee in the municipal court or county court, the court of common pleas shall assess the application fee at the initial appearance of the defendant in the court of common pleas. If a case involving an alleged delinquent child is transferred to the court of common pleas for prosecution of the involved child as an adult and if the involved child failed to pay the fee in the juvenile court, the court of common pleas shall assess the application fee at the initial appearance of the child in the court of common pleas.

The court shall assess an application fee pursuant to this section one time per case. An appeal shall not be considered a separate case for the purpose of assessing the application fee. The court may waive or reduce the fee upon a finding that the person lacks financial resources that are sufficient to pay the fee or that payment of the fee would result in an undue hardship.

(B) No court, state public defender, county or joint county public defender, or other counsel appointed by the court shall deny a person the assistance of counsel solely due to the person's failure to pay the application fee assessed pursuant to division (A) of this section. A person's present inability, failure, or refusal to pay the application fee shall not disqualify that person from legal representation.

(C) The application fee assessed pursuant to division (A) of this section is separate from and in addition to any other amount assessed against a person who is found to be able to contribute toward the cost of the person's legal representation pursuant to division (D) of section 2941.51 of the Revised Code.

(D) The clerk of the court that assessed the fees shall forward all application fees collected pursuant to this section to the county treasurer for deposit in the county treasury. The county shall retain eighty per cent of the application fees so collected to offset the costs of providing legal representation to indigent persons. Each month, the county auditor shall remit twenty per cent of the application fees so collected to the state public defender. The state public defender shall deposit the remitted fees into the state treasury to the credit of the client payment fund created pursuant to division (B)(5) of section 120.04 of the Revised Code. The state public defender may use that money in accordance with that section.

(E) On or before the first day of March of each year beginning in the year 2007, each clerk of court shall provide to the state public defender and the state auditor a report including all of the following:

(1) The number of persons in the previous calendar year who requested or were provided a state public defender, county or joint county public defender, or other counsel appointed by the court;

(2) The number of persons in the previous calendar year for whom the court waived the application fee pursuant to division (A) of this section;

(3) The dollar value of the assessed application fees pursuant to division (A) of this section in the previous calendar year;

(4) The amount of assessed application fees collected in the previous calendar year;

(5) The balance of unpaid assessed application fees at the open and close of the previous calendar year.

(1) "Clerk of court" means the clerk of the court of common pleas of the county, the clerk of the juvenile court of the county, the clerk of a municipal court in the county, the clerk of a county-operated municipal court, or the clerk of a county court in the county, whichever is applicable.

(2) "County-operated municipal court" has the same meaning as in section 1901.03 of the Revised Code.

Sec. 120.52. There is hereby established in the statetreasury the legal aid fund, which shall be for the charitablepublic purpose of providing financial assistance to legal aidsocieties that provide civil legal services to indigents. Thefund shall contain all funds credited to it by the treasurer ofstate pursuant to sections 1901.26, 1907.24, 2303.201, 3953.231, 4705.09and 4705.10 of the Revised Code and income from investment creditedto it by the treasurer of state in accordance with this section.

The treasurer of state may invest moneys contained in thelegal aid fund in any manner authorized by the Revised Code forthe investment of state moneys. However, no such investmentshall interfere with any apportionment, allocation, or payment ofmoneys in January and July of each calendar year, as required bysection 120.53 of the Revised Code. All income earned as aresult of any such investment shall be credited to the fund.

The state public defender, through the Ohio legalassistance foundation, shall administer the payment of moneys outof the fund. Four and one-half per cent of the moneys in thefund shall be reserved for the actual, reasonable costs ofadministering sections 120.51 to 120.55 and sections 1901.26, 1907.24, 2303.201, 3953.231, 4705.09, and4705.10 of the Revised Code. Moneys that are reserved foradministrative costs but that are not used for actual, reasonableadministrative costs shall be set aside for use in the mannerdescribed in division (A) of section120.521 of the Revised Code. The remainder of the moneys in the legal aid fundshall bedistributed in accordance with section 120.53 of the RevisedCode. The Ohio legal assistance foundation shall establish, in accordance with Chapter 119. of the Revised Code, rulesgoverning the administration of the legal aid fund, including the~~program~~ programs established under sections 1901.26, 1907.24, 2303.201, 4705.09, and 4705.10 of theRevised Code regarding interest on interest-bearing trust accounts of anattorney, law firm, or legal professional association.

Sec. 120.53. (A) A legal aid society that operates withinthe state may apply to the Ohio legal assistance foundation forfinancial assistance from the legal aid fund established bysection 120.52 of the Revised Code to be used for the funding ofthe society during the calendar year following the calendar yearin which application is made.

(B) An application for financial assistance made underdivision (A) of this section shall be submitted by the first dayof November of the calendar year preceding the calendar year forwhich financial assistance is desired and shall include all ofthe following:

(1) Evidence that the applicant is incorporated in thisstate as a nonprofit corporation;

(3) The proposed budget of the applicant for these fundsfor the following calendar year;

(4) A summary of the services to be offered by theapplicant in the following calendar year;

(5) A specific description of the territory orconstituency served by the applicant;

(6) An estimate of the number of persons to be served bythe applicant during the following calendar year;

(8) The amount of the applicant's total budget for thecalendar year in which the application is filed that it willexpend in that calendar year for legal services in each of thecounties it serves;

(9) A specific description of any services, programs,training, and legal technical assistance to be delivered by theapplicant or by another person pursuant to a contract with theapplicant, including, but not limited to, by private attorneys orthrough reduced fee plans, judicare panels, organized pro bonoprograms, and mediation programs.

(C) The Ohio legal assistance foundation shall determinewhether each applicant that filed an application for financialassistance under division (A) of this section in a calendar yearis eligible for financial assistance under this section. To beeligible for such financial assistance, an applicant shallsatisfy the criteria for being a legal aid society and shall be in compliancewith the provisions of sections 120.51 to 120.55 of the Revised Code and withthe rules and requirements the foundation establishes pursuant to section120.52 of the Revised Code. The Ohio legal assistance foundation then, on orbefore the fifteenth dayof December of the calendar year in which the application isfiled, shall notify each such applicant, in writing, whether itis eligible for financial assistance under this section, and ifit is eligible, estimate the amount that will be available forthat applicant for each six-month distribution period, asdetermined under division (D) of this section.

(D) The Ohio legal assistance foundation shall allocatemoneys contained in the legal aid fund twice each year fordistribution to applicants that filed their applications in theprevious calendar year and were determined to be eligibleapplicants.

All moneys contained in the fund on the first day ofJanuary of a calendar year shall be allocated, after deduction ofthe costs of administering sections 120.51 to 120.55 and sections1901.26, 1907.24, 2303.201, 3953.231, 4705.09, and 4705.10 of the Revised Code that are authorized bysection 120.52 of the Revised Code, according to this section andshall be distributed accordingly on the thirty-first day ofJanuary of that calendar year, and all moneys contained in thefund on the first day of July of that calendar year shall beallocated, after deduction of the costs of administering thosesections that are authorized by section 120.52 of the RevisedCode, according to this section and shall be distributedaccordingly on the thirty-first day of July of that calendaryear. In making the allocations under this section, the moneys in the fundthat were generated pursuant to sections 1901.26, 1907.24, 2303.201, 3953.231,4705.09, and 4705.10 of the Revised Code and all income generatedfrom the investment of such moneys shall be apportioned asfollows:

(1) After deduction of the amount authorized and used foractual, reasonable administrative costs under section 120.52 ofthe Revised Code:

(a) Five per cent of the moneys remaining in the fund~~,plus any moneys reserved for administrative costs under thatsection that are not used for actual, reasonable administrativecosts,~~ shall be reserved for use in the manner described in division (A) of section 120.521 of the Revised Code or for distribution to legal aid societiesthat provide assistance to special population groups of theireligible clients, engage in special projects that have asubstantial impact on their local service area or on significantsegments of the state's poverty population, or provide legaltraining or support to other legal aid societies in the state;

(b) After deduction of the amount described in division(D)(1)(a) of this section, one and three-quarters per cent of themoneys remaining in the fund shall be apportioned among entitiesthat received financial assistance from the legal aid fund priorto the effective date of this amendment but that, on and afterthe effective date of this amendment, no longer qualify as alegal aid society that is eligible for financial assistance underthis section.

(c) After deduction of the amounts described in divisions (D)(1)(a) and (b) of this section, fifteen per cent of the moneys remaining in the fund shall be placed in the legal assistance foundation fund for use in the manner described in division (A) of section 120.521 of the Revised Code.

(2) After deduction of the actual, reasonableadministrative costs under section 120.52 of the Revised Code andafter deduction of the amounts identified in ~~division~~ divisions (D)(1)(a)~~and~~, (b), and (c) of this section, the remaining moneys shall beapportioned among the counties that are served by eligible legalaid societies that have applied for financial assistance underthis section so that each such county is apportioned a portion ofthose moneys, based upon the ratio of the number of indigents whoreside in that county to the total number of indigents who residein all counties of this state that are served by eligible legalaid societies that have applied for financial assistance underthis section. Subject to division (E) of this section, themoneys apportioned to a county under this division then shall beallocated to the eligible legal aid society that serves thecounty and that has applied for financial assistance under thissection. For purposes of this division, the source of dataidentifying the number of indigent persons who reside in a countyshall be the most recent decennial census figures from the UnitedStates department of commerce, division of census.

(E) If the Ohio legal assistance foundation, in attemptingto make an allocation of moneys under division (D)(2) of thissection, determines that a county that has been apportioned moneyunder that division is served by more than one eligible legal aidsociety that has applied for financial assistance under thissection, the Ohio legal assistance foundation shall allocate themoneys that have been apportioned to that county under division(D)(2) of this section among all eligible legal aid societiesthat serve that county and that have applied for financialassistance under this section on a pro rata basis, so that eachsuch eligible society is allocated a portion based upon theamount of its total budget expended in the prior calendar yearfor legal services in that county as compared to the total amountexpended in the prior calendar year for legal services in thatcounty by all eligible legal aid societies that serve that countyand that have applied for financial assistance under thissection.

(F) Moneys allocated to eligible applicants under thissection shall be paid twice annually, on the thirty-first day ofJanuary and on the thirty-first day of July of the calendar yearfollowing the calendar year in which the application is filed.

(G)(1) A legal aid society that receives financialassistance in any calendar year under this section shall file anannual report with the Ohio legal assistance foundation detailingthe number and types of cases handled, and the amount and typesof legal training, legal technical assistance, and other serviceprovided, by means of that financial assistance. No informationcontained in the report shall identify or enable theidentification of any person served by the legal aid society orin any way breach client confidentiality.

(2) The Ohio legal assistance foundation shall make anannual report to the governor, the general assembly, and thesupreme court on the distribution and use of the legal aid fund. Thefoundation also shall include in the annual report an audited financialstatement of all gifts, bequests, donations, contributions, and other moneysthe foundation receives. No information contained in the report shallidentify or enablethe identification of any person served by a legal aid society,or in any way breach confidentiality.

(H) A legal aid society may enter into agreements for theprovision of services, programs, training, or legal technicalassistance for the legal aid society or to indigent persons.

Sec. 121.37. (A)(1) There is hereby created the Ohio familyand children first cabinet council. The council shall becomposedof the superintendent of public instruction and thedirectors ofyouth services, job and family services,mental health,health,alcohol and drug addiction services, mental retardationanddevelopmental disabilities, and budget and management. Thechairperson of the council shall be the governor or thegovernor'sdesignee and shall establish procedures for the council'sinternalcontrol and management.

(2) The purpose of the cabinet council is to help familiesseeking government services. This section shall not beinterpreted or applied to usurp the role of parents, but solelytostreamline and coordinate existing government services forfamilies seeking assistance for their children.

(a) Advise and make recommendations to the governor andgeneral assembly regarding the provision of services to children;

(b) Advise and assess local governments on thecoordinationof service delivery to children;

(c) Hold meetings at such times and places as may beprescribed by the council's procedures and maintain records ofthemeetings, except that records identifyingindividual children areconfidential and shall be disclosedonly as provided by law;

(d) Develop programs and projects, including pilotprojects,to encourage coordinated efforts at the state and locallevel toimprove the state's social service deliverysystem;

(e) Enter into contracts with and administer grants tocounty family and children first councils, as well asother countyormulticounty organizations to plan and coordinate servicedeliverybetween state agencies and local service providers forfamiliesand children;

(f) Enter into contracts with and apply for grants fromfederal agencies or private organizations;

(g) Enter into interagency agreementsto encouragecoordinated efforts at the state and local level to improve thestate's social service delivery system. The agreements mayinclude provisionsregarding the receipt, transfer, andexpenditure of funds;

(h) Identify public and private funding sources for servicesprovided to alleged or adjudicated unruly children and childrenwho are at risk of being alleged or adjudicated unruly children,including regulations governing access to and use of the services;

(i) Collect information provided by local communitiesregarding successful programs for prevention, intervention, andtreatment of unruly behavior, including evaluations of theprograms;

(j) Identify and disseminate publications regarding allegedor adjudicated unruly children and children who are at risk ofbeing alleged or adjudicated unruly children and regardingprograms serving those types of children;

(k) Maintain an inventory of strategic planning facilitatorsfor use by government or nonprofit entities that serve alleged oradjudicated unruly children or children who are at risk of beingalleged or adjudicated unruly children.

(a) Reviews of service and treatmentplans for children forwhich such reviews are requested;

(b) Assistance as the councildetermines to benecessary tomeet the needs of children referred bycounty familyand childrenfirst councils;

(c) Monitoring and supervisionof astatewide,comprehensive, coordinated, multi-disciplinary,interagency systemfor infants and toddlers with developmentaldisabilities or delaysand their families, as establishedpursuant to federal grantsreceived and administered by thedepartment of health for earlyintervention services under the"~~Education of the Handicapped ActAmendments of 1986," 100 Stat. 1145 (1986), 20 U.S.C.A. 1471~~ Individuals with Disabilities Education Act of 2004," 20 U.S.C.A. 1400, asamended.

(B)(1) Each board of county commissioners shallestablish acounty family and childrenfirst council. The board may inviteany local publicor private agency orgroup that funds, advocates,or provides services to children and families tohave arepresentative become a permanent or temporary member of itscountycouncil. Each county council mustinclude the followingindividuals:

(a) At least three individuals who are not employed by an agency represented on the council and whose families are or havereceivedservices from an agency represented on the council oranother county'scouncil. Where possible, the number of membersrepresenting families shall beequal to twenty per cent of thecouncil's membership.

(b) The director of the board ofalcohol, drug addiction,and mental health services that servesthe county, or, in the caseof a county that has a board ofalcohol and drug addictionservices and a community mentalhealth board, the directors ofboth boards. If a board of alcohol, drugaddiction, and mentalhealth services covers more than one county, the director maydesignate aperson to participate on the county's council.

(c) The health commissioner, or the commissioner'sdesignee,of theboard of health of each city and general health district inthecounty. If the county has two or more health districts, thehealth commissioner membership may be limited to the commissionersof the twodistricts with the largest populations.

(e) The executive director of the~~county agency responsiblefor the administration of~~ public childrenservices ~~pursuant to section5153.15 of theRevised Code~~ agency;

(f) The superintendent of thecounty board of mentalretardation and developmental disabilities;

(g) The county's juvenile court judge senior in serviceoranother judge of the juvenile court designated by theadministrativejudge or, where there is no administrative judge,by the judge senior inservice;

(h) The superintendent of the city, exemptedvillage, orlocal school district with the largest number ofpupils residingin the county, as determined by the departmentof education, whichshall notify each board of countycommissioners of itsdetermination at least biennially;

(i) A school superintendent representing allother schooldistricts with territory in the county, asdesignated at abiennial meeting of the superintendents of thosedistricts;

(j) A representative of themunicipal corporation with thelargest population in thecounty;

(k) The president of the board of countycommissioners, oran individual designated by the board;

(m) A representative of thecounty's head start agencies, asdefined in section ~~3301.31~~ 3301.32 ofthe Revised Code;

(n) A representative of the county's earlyinterventioncollaborative established pursuant to the federalearlyintervention program operated under the"Education of theHandicapped ActAmendments of 1986";

(o) A representative of a local nonprofit entitythat funds,advocates, or provides services to children and families.

Notwithstanding any other provision of law, the publicmembers of a countycouncil are notprohibited from serving on thecouncil and making decisionsregarding the duties of the council,including those involving the fundingof joint projects and thoseoutlined in the county's servicecoordination mechanismimplemented pursuant todivision (C) of this section.

The cabinet council shall establish a state appeals processto resolvedisputes among the members of a county councilconcerning whether reasonableresponsibilities as members arebeing shared. The appeals process may beaccessed only by amajority vote of the council members who are required toserve onthe council. Upon appeal, the cabinet council may order thatstatefunds for services to children and families be redirected toa county's boardof county commissioners.

(2) A The purpose of the county council is to streamline and coordinate existing government services for families seeking services for their children. In seeking to fulfill its purpose, a county council shall provide for the following:

(a) Referrals to the cabinet council of thosechildren forwhom thecounty council cannot provide adequate services;

(b) Development and implementation of a process thatannually evaluates andprioritizes services,fills service gapswhere possible, and invents new approachesto achieve betterresults for families and children;

(c) Participation in the developmentof a countywide,comprehensive, coordinated,multi-disciplinary, interagency systemfor infants and toddlerswith developmental disabilities or delaysand their families, asestablished pursuant to federal grantsreceived and administeredby the department of health for earlyintervention servicesunder the "Education of theHandicapped ActAmendments of 1986";

(d) Maintenance of an accountabilitysystem tomonitor thecounty council's progress in achievingresults for families andchildren;

(e) Establishment of a mechanism toensure ongoinginputfrom a broad representation of families who are receivingserviceswithin the county system.

(3)(a) Except as provided in division (B)(3)(b)of thissection, a county council shall comply with thepolicies,procedures, and activities prescribed by the rules orinteragencyagreements of a state department participating onthe cabinetcouncil whenever the countycouncilperforms a function subject tothose rules or agreements.

(b) On application of a county council, thecabinet councilmay grant an exemption from any rules orinteragency agreements ofa state department participating onthe council if an exemption isnecessary for the council toimplement an alternative program orapproach forservice delivery to families andchildren. Theapplication shall describe the proposed programor approach andspecify the rules or interagency agreements from whichanexemption is necessary. The cabinet council shall approve ordisapprove the application in accordance with standards andprocedures it shall adopt. If an application is approved, theexemption is effective only while the programor approach is beingimplemented, including areasonable period during which theprogram or approach is being evaluated for effectiveness.

(4)(a) Each county council shall designate anadministrativeagent for the council from among the following public entities:the board of alcohol, drug addiction, and mental health services,including aboard of alcohol and drug addiction or a communitymental health board if thecounty is served by separate boards;the board of county commissioners; anyboard of health of thecounty's city and general health districts; the countydepartmentof job and family services; the county agencyresponsible for theadministration of children services pursuant to section 5153.15 ofthe RevisedCode; thecounty board of mental retardation anddevelopmental disabilities; any of thecounty's boards ofeducation or governing boards of educational servicecenters; orthe county's juvenile court. Any of the foregoing publicentities, other than the board of county commissioners, maydecline to serveas the council's administrative agent.

A county council's administrative agent shall serve as thecouncil'sappointing authority for any employees of the council.The councilshall file an annual budget with itsadministrativeagent, with copies filed with the county auditor and with theboard of county commissioners, unless the board is serving as thecouncil'sadministrative agent. The council's administrativeagent shall ensure thatall expenditures are handled in accordancewith policies, procedures, andactivities prescribed by statedepartments in rules or interagency agreementsthat are applicableto the council's functions.

The administrative agent for a county council may do any ofthe followingon behalf of the council:

(i) Enter into agreements or administer contracts withpublic orprivate entities to fulfill specific council business.Such agreements andcontracts are exempt from the competitivebidding requirements of section307.86 of the RevisedCode if theyhave been approved by the countycouncil and they are for thepurchase of family and child welfare or childprotection servicesor other social or job and familyservices for families andchildren. The approval of the county council is notrequired toexempt agreements or contracts entered into under section 5139.34,5139.41, or 5139.43 of the RevisedCode from the competitivebidding requirementsof section 307.86 of the Revised Code.

(ii) As determined by the council, provide financialstipends,reimbursements, or both, to family representatives forexpenses related tocouncil activity;

(iii) Receive by gift, grant, devise, or bequest anymoneys,lands,or other property for the purposes for which the council isestablished. Theagent shall hold, apply, and dispose of themoneys, lands, or other propertyaccording to the terms of thegift, grant, devise, or bequest. Any interestor earnings shallbe treated in the same manner and are subject to the sameterms asthe gift, grant, devise, or bequest from which it accrues.

(b)(i) If the county council designates the board of countycommissioners as its administrative agent, the board may, byresolution,delegate any of its powers and duties asadministrative agent to an executivecommittee the boardestablishes from the membership of the county council. The boardshall name to the executive committee at least the individualsdescribed in divisions (B)(1)~~(b) through(h)~~(a) to (i) of this section andmay appoint the president of the board oranother individual asthe chair of the executive committee. The executive committee must include at least one family county council representative who does not have a family member employed by an agency represented on the council.

(ii) The executive committee may, with the approval of theboard,hire an executive director to assist the county council inadministering itspowers and duties. The executive director shallserve in the unclassifiedcivil service at the pleasure of theexecutive committee. The executivedirector may, with theapproval of the executive committee, hire otheremployees asnecessary to properly conduct the county council's business.

(iii) The board may require the executive committee tosubmit anannual budget to the board for approval and may amend orrepeal the resolutionthat delegated to the executive committeeits authority as the countycouncil's administrative agent.

(5) Two or more county councils may enter into anagreementto administer their county councils jointly bycreating a regionalfamily and children first council. A regional councilpossessesthe same duties and authoritypossessed by a county council,except that the duties andauthority apply regionally rather thanto individual counties. Prior toentering into an agreement tocreate a regionalcouncil, the members of each county council tobe part of theregional council shall meet to determine whetherall or part ofthe members of each county council will serve asmembers of theregional council.

(6) A board of county commissioners may approve a resolutionby a majorityvoteof the board's members that requires the countycouncil to submit a statement to the board each timethe councilproposes to enter into an agreement, adopt aplan, or make adecision,other than a decision pursuant to section 121.38 of theRevised Code, thatrequires theexpenditure of funds for two ormore families. Thestatement shall describe the proposedagreement, plan, or decision.

Not later than fifteen days after the board receives thestatement, itshall, by resolution approved by a majority of itsmembers, approve ordisapprove the agreement, plan, or decision.Failure of the board to pass aresolution during that time periodshall be considered approval of theagreement, plan, or decision.

An agreement, plan, or decision for which a statement isrequired to besubmitted to the board shall be implemented only ifit is approvedby the board.

(C) Each county shall develop acounty service coordinationmechanism. The county service coordination mechanism shall serve as the guiding document for coordination of services in the county. For children who also receive services under the help me grow program, the service coordination mechanism shall be consistent with rules adopted by the department of health under section 3701.61 of the Revised Code. All family service coordination plans shall be developed in accordance with the county service coordination mechanism. Themechanism shall be developedand approved with theparticipation of the countyentities representing child welfare;mentalretardation and developmental disabilities; alcohol, drugaddiction, and mental health services; health; juvenile judges;education; the county family and children first council; and thecountyearlyintervention collaborative established pursuant tothefederal earlyintervention program operated under the"Education of theHandicapped Act Amendments of 1986." The countyshallestablish an implementation schedule for the mechanism. Thecabinet councilmay monitor the implementation and administrationof each county's servicecoordination mechanism.

(1) A procedure for assessing the needs of any child,including a child who is an abused, neglected, dependent, unruly,or delinquent child and under the jurisdiction of the juvenilecourt or a child whose parent or custodian is voluntarily seekingservices an agency, including a juvenile court, or a family voluntarily seeking service coordination, to refer the child and family to the county council for service coordination in accordance with the county service coordination mechanism;

(2) A procedure ensuring that a family and all appropriate staff from involved agencies, including a representative from the appropriate school district, are notified of and invited to participate in all family service coordination plan meetings;

(3) A procedure that permits a family to initiate a meeting to develop or review the family's service coordination plan and allows the family to invite a family advocate, mentor, or support person of the family's choice to participate in any such meeting;

(4) A procedure for ensuring that a family service coordination plan meeting is conducted before a non-emergency out-of-home placement for all multi-need children, or within ten days of a placement for emergency placements of multi-need children. The family service coordination plan shall outline how the county council members will jointly pay for services, where applicable, and provide services in the least restrictive environment.

(5) A procedure for monitoring the progress and tracking the outcomes of each service coordination plan requested in the county including monitoring and tracking children in out-of-home placements to assure continued progress, appropriateness of placement, and continuity of care after discharge from placement with appropriate arrangements for housing, treatment, and education.

(6) A procedure for protecting the confidentiality of all personal family information disclosed during service coordination meetings or contained in the comprehensive family service coordination plan.

(7) A procedure for assessing the ~~service~~ needs and strengths of ~~thefamily of~~ any child or family that has been referred to the council for service coordination, including a child ~~who is an abused,neglected, dependent, unruly, or delinquent child and under thejurisdiction of the juvenile court or a child~~ whose parent orcustodian is voluntarily seeking services, and for ensuring that parents and custodians are afforded the opportunity to participate;

~~(3)~~(8) A procedure for development of a ~~comprehensive~~ ~~joint~~ familyservice coordination plandescribed in division(D) of this section;

~~(4)~~(9) A local dispute resolutionprocess to serve as theprocess that must be used first to resolvedisputes among theagencies represented on the county council concerning theprovision ofservicesto children,including children who areabused, neglected, dependent, unruly,alleged unruly, ordelinquent children and under the jurisdiction of the juvenilecourt and children whose parents or custodians arevoluntarilyseeking services. The local dispute resolutionprocess shallcomplywith section121.38 of the Revised Code. ~~The~~ The local dispute resolution process shall be used to resolve disputes between a child's parents or custodians and the county council regarding service coordination. The county council shall inform the parents or custodians of their right to use the dispute resolution process. Parents or custodians shall use existing local agency grievance procedures to address disputes not involving service coordination. The dispute resolution process is in addition to and does not replace other rights or procedures that parents or custodians may have under other sections of the Revised Code.

Thecabinetcouncil shall adopt rules inaccordance with Chapter 119.of theRevised Code establishing anadministrativereview processtoaddress problems that arise concerning the operation of alocaldispute resolution process.

Nothing in division (C)(4) of this section shall be interpreted as overriding or affecting decisions of a juvenile court regarding an out-of-home placement, long-term placement, or emergency out-of-home placement.

(D)Each county shall develop a comprehensive ~~joint~~ family service coordinationplanthat does ~~both~~ all of the following:

(1) Designates service responsibilities among the variousstate and localagencies that provide services to children andtheir families, includingchildren who are abused, neglected,dependent, unruly, or delinquent childrenand under thejurisdiction of the juvenile court and children whose parents orcustodians are voluntarily seeking services;

(2) Designates an individual, approved by the family, to track the progress of the family service coordination plan, schedule reviews as necessary, and facilitate the family service coordination plan meeting process;

(3) Ensures that assistance and services to be provided are responsive to the strengths and needs of the family, as well as the family's culture, race, and ethnic group, by allowing the family to offer information and suggestions and participate in decisions. Identified assistance and services shall be provided in the least restrictive environment possible.

(4) Includes a ~~service coordination~~ process for dealing witha childwho is alleged to be an unruly child. The ~~servicecoordination~~ process shall include methods todivert the childfrom the juvenile court system;

(5) Includes timelines for completion of goals specified in the plan with regular reviews scheduled to monitor progress toward those goals;

(6) Includes a plan for dealing with short-term crisis situations and safety concerns.

(E)(1) The ~~service coordination~~ process provided forunderdivision(D)~~(2)~~(4) of this section may include, but is not limitedto, the following:

(a) ~~An assessment of the needs and strengths of the childand the child'sfamily and the services the child and the child'sfamily need;~~

~~(b)~~ Designation of the person or agency to conduct theassessment of the child and the child's family as described indivision~~(E)(1)(a)~~(C)(7) of this section and designation oftheinstrument or instruments to be used to conduct the assessment;

~~(c) Designation of the agency to provide case managementservices to the child and to the child's family;~~

~~(d)~~(b) An emphasis on the personal responsibilities of thechild and the parental responsibilities of the parents, guardian,or custodianof the child;

(2) The method to divert a child from the juvenile courtsystem that must be included in the service coordination processmay include, butis not limitedto, the following:

(a) The preparation of a complaint under section 2151.27 ofthe Revised Codealleging that the child is an unruly child andnotifying the child andthe parents, guardian, or custodian thatthe complaint hasbeen prepared to encourage the child and theparents, guardian, orcustodian to comply with other methods todivert thechild from the juvenile court system;

(b) Conducting a meeting with the child, the parents,guardian, or custodian, and other interested parties todeterminethe appropriate methods to divert the child from the juvenilecourt system;

(c) ~~A method for dealing with short-term crisis situationsinvolving a confrontation between the child and the parents,guardian,or custodian;~~

~~(d)~~ A method to provide to the child and thechild's familya short-term respite from a short-term crisis situationinvolvinga confrontation between the child and the parents, guardian,orcustodian;

~~(e)~~(d) A program to provide a mentor to the child or theparents, guardian, or custodian;

~~(f)~~(e) A program to provide parenting education to the parents,guardian, or custodian;

~~(g)~~(f) An alternative school program for children who aretruant from school, repeatedly disruptive in school, or suspendedor expelledfrom school;

~~(h)~~(g) Other appropriate measures, including, but not limitedto,any alternative methods to divert a child from the juvenilecourtsystem that are identified by the Ohio family and childrenfirst cabinet council.

(F) Each county may review and revise the servicecoordination process described in division (D)~~(2)~~ of this sectionbased on the availability of funds under Title IV-A of the "SocialSecurity Act," 110 Stat. 2113 (1996), 42 U.S.C.A. 601, as amended,or to the extent resources are available from any other federal,state, or local funds.

Sec. 121.373. There is hereby created in the state treasury the family and children first administration fund. The fund shall consist of money that the director of budget and management transfers from one or more funds of one or more agencies represented on the Ohio family and children first cabinet council. The director may transfer only money that state or federal law permits to be used for the cabinet council's administrative costs. Money in the fund shall be used to pay the cabinet council's administrative costs.

Sec. 121.38. (A) An agency represented on a county family andchildren first council that disagrees with the council's decision concerningthe services orfunding for services a child is to receive from agencies represented on thecouncil may initiate the local dispute resolutionprocess established inthe county service coordination mechanism applicableto the council. On completion of theprocess, the decision maker designated in the mechanism shall issue a writtendetermination that directs one or more agencies represented on the council toprovide servicesor funding for services to the child. The determination shall include a planof care governing the manner in which the services orfunding are to be provided. The decision maker shall base the plan of care onthe ~~comprehensive joint~~ family service coordination plan developed as part of the county'sservicecoordination mechanism and on evidence presented during the localdispute resolution process. The decision makermay require an agency toprovide services or funding only if the child's condition or needs qualify thechild for services under the laws governing the agency.

(B) An agency subject to a determination issued pursuant to alocal dispute resolution process shall immediately comply with thedetermination,unless the agency objects to the determination by doing one of the followingnot later than seven days after the date the written determination is issued:

(1) If the child has been alleged or adjudicated to be an abused,neglected, dependent, unruly, or delinquent child or a juvenile trafficoffender, filing in the juvenile court of the county having jurisdiction overthe child's case a motion requesting that the court hold a hearing todetermine which agencies are to provide services or funding for services tothe child.

(2) If the child is not a child described in division (B)(1) ofthis section, filing in the juvenile court of the county served by the countycouncil a complaint objecting to the determination.

The court shall hold a hearing as soon as possible, but notlaterthanninety days after the motion or complaint is filed. At least five daysbefore the date on which the court hearing is to be held, the court shall sendeach agency subject to the determination written notice by first class mail ofthe date, time, place, and purpose of the court hearing. In the case of amotion filed under division (B)(1) of this section, the court mayconduct the hearing as part of the adjudicatory or dispositional hearingconcerning the child, if appropriate, and shall provide notice as required forthose hearings.

Except in cases in which the hearing is conducted as part of theadjudicatory or dispositional hearing, a hearing held pursuant to thisdivision shall be limited to a determination of which agencies are to provideservices or funding for services to the child. At the conclusion of thehearing, the court shall issue an order directing one or more agenciesrepresented on the county council to provide servicesorfunding for services to the child. The order shall include a plan of caregoverning themanner in which the services or funding are to be provided. The court shallbase the plan of care on the ~~comprehensive joint~~ family service coordination plandeveloped as part ofthe county's service coordination plan and on evidencepresented during the hearing. An agency required by the order to provideservices or funding shall be a party to anyjuvenile court proceeding concerning the child. The court may require anagency to provide services or funding for a child only if the child'scondition or needs qualify the child for services under the laws governing theagency.

(C) While the local dispute resolution process or court proceedingspursuant to this section are pending, each agency shall provide services andfunding as required by the decision made by the county council beforedispute resolution was initiated. If an agency that provides services orfunds during the local dispute resolution process or court proceedingsis determinedthrough the process or proceedings not to be responsible for providing them,it shall be reimbursed for the costs of providing the services orfundingby the agencies determined to be responsible for providing them.

Sec. 121.381. A parent or custodian who disagrees with a decision rendered by a county family and children first council regarding services for a child may initiate the dispute resolution process established in the county service coordination mechanism pursuant to division (C)(10) of section 121.37 of the Revised Code.

Not later than sixty days after the parent or custodian initiates the dispute resolution process, the council shall make findings regarding the dispute and issue a written determination of its findings.

Sec. 121.382. Each agency represented on a county family and children first council that is providing services or funding for services that are the subject of the dispute resolution process initiated by a parent or custodian under section 121.381 of the Revised Code shall continue to provide those services and the funding for those services during the dispute resolution process.

Sec. 121.403. (A) The Ohio community service council may do any of the following:

(2) Sponsor conferences, meetings, or events in furtherance of the council's purpose described in section 121.40 of the Revised Code and charge fees for participation or involvement in the conferences, meetings, or events;

(3) Sell promotional items in furtherance of the council's purpose described in section 121.40 of the Revised Code.

(B) All monetary gifts and donations, funds from the sale of promotional items, and any fees paid to the council for conferences, meetings, or events sponsored by the council shall be deposited into the Ohio community service council gifts and donations fund, which is hereby created in the state treasury. Moneys in the fund may be used only as follows:

(1) To pay operating expenses of the council, including payroll, personal services, maintenance, equipment, and subsidy payments;

(2) To support council programs promoting volunteerism and community service in the state;

Sec. 122.011. (A) The department of development shalldevelop and promote plans and programs designed to assure thatstate resources are efficiently used, economic growth is properlybalanced, community growth is developed in an orderly manner, andlocal governments are coordinated with each other and the state,and for such purposes may do all of the following:

(1) Serve as a clearinghouse for information, data, andother materials that may be helpful or necessary to persons orlocal governments, as provided in section 122.07 of the RevisedCode;

(2) Prepare and activate plans for the retention,development, expansion, and use of the resources and commerce ofthe state, as provided in section 122.04 of the Revised Code;

(3) Assist and cooperate with federal, state, and localgovernments and agencies of federal, state, and localgovernmentsin the coordination of programs to carry out the functions andduties of the department;

(4) Encourage and foster research and developmentactivities, conduct studies related to the solution of communityproblems, and develop recommendations for administrative orlegislative actions, as provided in section 122.03 of the RevisedCode;

(5) Serve as the economic and community developmentplanningagency, which shall prepare and recommend plans andprograms forthe orderly growth and development of this state andwhich shallprovide planning assistance, as provided in section122.06 of theRevised Code;

(6) Cooperate with and provide technical assistance tostatedepartments, political subdivisions, regional and localplanningcommissions, tourist associations, councils ofgovernment,community development groups, community actionagencies, and otherappropriate organizations for carrying out thefunctions andduties of the department or for the solution ofcommunityproblems;

(7) Coordinate the activities of state agencies that haveanimpact on carrying out the functions and duties of thedepartment;

(8) Encourage and assist the efforts of and cooperate withlocal governments to develop mutual and cooperative solutions totheir common problems that relate to carrying out the purposes ofthis section;

(9) Study existing structure, operations, and financing ofregional or local government and those state activities thatinvolve significant relations with regional or local governmentalunits, recommend to the governor and to the general assembly suchchanges in these provisions and activities as will improve theoperations of regional or local government, and conduct otherstudies of legal provisions that affect problems related tocarrying out the purposes of this section;

(10) Create and operate a division of community developmentto develop andadminister programs and activities that areauthorized by federal statute orthe Revised Code;

(11) Until October 15, ~~2005~~ 2007,establish fees and charges, inconsultation with thedirector of agriculture, for purchasingloans from financial institutions andproviding loan guaranteesunder the family farmloan program created under sections 901.80to 901.83 of the Revised Code;

(12) Provide loan servicing for the loans purchased andloanguaranteesprovidedunder section 901.80 of the Revised Codeasthat sectionexisted prior to October 15, ~~2005~~ 2007;

(13) Until October 15, ~~2005~~ 2007,and upon approval by thecontrolling board under division(A)(3) of section 901.82 of theRevisedCode of the release of money tobe used for purchasing aloan or providing a loan guarantee, request therelease ofthatmoney in accordance with division(B) of section 166.03 of theRevisedCode for use for the purposesof the fund created bysection 166.031 of theRevised Code.

(B)The director of development may request the attorneygeneralto, and the attorney general, in accordance with section109.02 of the Revised Code, shallbring a civil action in anycourt of competent jurisdiction. The director maybe sued in thedirector's official capacity, in connection with this chapter,inaccordance with Chapter 2743. of the Revised Code.

(2) "Biodiesel" means a mono-alkyl ester combustible liquid fuel that is derived from vegetable oils or animal fats, or any combination of those reagents, and that meets American society for testing and materials specification D6751-03a for biodiesel fuel (B100) blend stock distillate fuels.

(3) "Diesel fuel" and "gasoline" have the same meanings as in section 5735.01 of the Revised Code.

(5) "Blended biodiesel" means diesel fuel containing at least twenty per cent biodiesel by volume.

(6) "Blended gasoline" means gasoline containing at least eighty-five per cent ethanol by volume.

(a) The difference in cost between blended gasoline and gasoline containing ten per cent or less ethanol at the time that the blended gasoline is purchased;

(b) The difference in cost between blended biodiesel and diesel fuel containing two per cent or less biodiesel at the time that the blended biodiesel is purchased.

(B) For the purpose of improving the air quality in this state, the director of development shall establish an alternative fuel transportation grant program under which the director may make grants to businesses, nonprofit organizations, public school systems, or local governments for the purchase and installation of alternative fuel refueling facilities and for the purchase and use of alternative fuel.

(C) The director shall adopt rules in accordance with Chapter 119. of the Revised Code that are necessary for the administration of the alternative fuel transportation grant program. The rules shall establish at least all of the following:

(1) An application form and procedures governing the application process for a grant under the program;

(3) A requirement that the maximum grant for the purchase and installation of an alternative fuel refueling facility be no more than fifty per cent of the cost of the facility;

(4) A requirement that the maximum grant for the purchase of alternative fuel be no more than fifty per cent of the incremental cost of the fuel;

(5) Any other criteria, procedures, or guidelines that the director determines are necessary to administer the program.

(D) There is hereby created in the state treasury the alternative fuel transportation grant fund. The fund shall consist of money as may be specified by the general assembly from the energy efficiency revolving loan fund created by section 4928.61 of the Revised Code. Money in the fund shall be used to make grants under the alternative fuel transportation grant program and by the director in the administration of that program.

Sec. 122.083. (A) The director of development shall administer a shovel ready sites program to provide grants for projects to port authorities and development entities approved by the director. Grants may be used to pay the costs of any or all of the following:

(4) Payment of professional fees the amount of which shall not exceed twenty per cent of the grant amount for a project.

(B) The director shall adopt rules in accordance with Chapter 119. of the Revised Code that establish procedures and requirements necessary for the administration of the program, including a requirement that a recipient of a grant enter into an agreement with the director governing the use of the grant.

(C) There is hereby created in the state treasury the shovel ready sites fund consisting of money appropriated to it. Money in the fund shall be used solely for the purposes of this section.

(1) "Full-time employee" means an individual who isemployed for consideration for at least thirty-five hours a week,or who renders any other standard of service generally acceptedby custom or specified by contract as full-time employment.

(a) A full-time employee first employed by a taxpayer inthe project that is the subject of the agreement after thetaxpayer enters into a tax credit agreement with the tax creditauthority under this section;

(b) A full-time employee first employed by a taxpayer inthe project that is the subject of the tax credit after the taxcredit authority approves a project for a tax credit under thissection in a public meeting, as long as the taxpayer enters intothe tax credit agreement prepared by the department ofdevelopment after such meeting within sixty days after receivingthe agreement from the department. If the taxpayer fails toenter into the agreement within sixty days, "new employee" hasthe same meaning as under division (A)(2)(a) of this section.

Under division (A)(2)(a) or (b) of this section, if the taxcredit authority determines it appropriate, "new employee" alsomay include an employee re-hired or called back from lay-off towork in a new facility or on a new product or service establishedor produced by the taxpayer after entering into the agreementunder this section or after the tax credit authority approves thetax credit in a public meeting. Except as otherwise provided in this paragraph, "new employee" does not includeany employee of the taxpayer who was previously employed in thisstate by a related member of the taxpayer and whose employmentwas shifted to the taxpayer after the taxpayer entered into thetax credit agreement or after the tax credit authority approvedthe credit in a public meeting, or any employee of the taxpayerfor which the taxpayer has been granted a certificate underdivision (B) of section 5709.66 of the Revised Code. However, if the taxpayer is engaged in the enrichment and commercialization of uranium or uranium products or is engaged in research and development activities related thereto and if the tax credit authority determines it appropriate, "new employee" may include an employee of the taxpayer who was previously employed in this state by a related member of the taxpayer and whose employment was shifted to the taxpayer after the taxpayer entered into the tax credit agreement or after the tax credit authority approved the credit in a public meeting. "New employee" does not include an employee of thetaxpayer who is employed in an employment position thatwasrelocated to a project from other operations of the taxpayer inthis state or from operations of a related member of thetaxpayer in this state. Inaddition, "new employee" does not include a child, grandchild,parent, or spouse, other than a spouse who is legally separatedfrom the individual, of any individual who is an employee of thetaxpayer and who has a direct or indirect ownership interest ofat least five per cent in the profits, capital, or value of thetaxpayer. Such ownership interest shall be determined inaccordance with section 1563 of the Internal Revenue Code andregulations prescribed thereunder.

(3) "New income tax revenue" means the total amountwithheld under section 5747.06 of the Revised Code by thetaxpayer during the taxable year, or during the calendar year that includes the tax period, from the compensation of newemployees for the tax levied under Chapter 5747. of the RevisedCode.

(4) "Related member" has the same meaning as underdivision (A)(6) of section 5733.042 of the Revised Code withoutregard to division (B) of that section.

(B) The tax credit authority may make grants under thissection to foster job creation in this state. Such a grant shalltake the form of a refundable credit allowed against the taximposed by section 5725.18, 5729.03, 5733.06, or5747.02 or levied under Chapter 5751. of the Revised Code. Thecredit shall be claimed for the taxable years or tax periods specified in thetaxpayer's agreement with the tax credit authority under division(D) of this section. ~~The~~ With respect to taxes imposed under section 5733.06 or 5747.02 or Chapter 5751. of the Revised Code, the credit shall be claimed ~~after theallowance of all other credits provided by Chapter 5733. or 5747.~~ in the order required under section 5733.98, 5747.98, or 5751.98of the Revised Code. The amount of the credit available for a taxable year or for a calendar year that includes a tax period equals the newincome tax revenue for ~~the taxable~~ that year multiplied by thepercentage specified in the agreement with the tax creditauthority. Any credit granted under this section against the tax imposed by section 5733.06 or 5747.02 of the Revised Code, to the extent not fully utilized against such tax for taxable years ending prior to 2008, shall automatically be converted without any action taken by the tax credit authority to a credit against the tax levied under Chapter 5751. of the Revised Code for tax periods beginning on or after July 1, 2008, provided that the person to whom the credit was granted is subject to such tax. The converted credit shall apply to those calendar years in which the remaining taxable years specified in the agreement end.

(C) A taxpayer or potential taxpayer who proposes aproject to create new jobs in this state may apply to the taxcredit authority to enter into an agreement for a tax creditunder this section. The director of developmentshall prescribethe form of the application. After receipt of an application,the authority may enter into an agreement with the taxpayer for acredit under this section if it determines all of the following:

(2) The taxpayer's project is economically sound and willbenefit the people of this state by increasing opportunities foremployment and strengthening the economy of this state;

(3) Receiving the tax credit is a major factor in thetaxpayer's decision to go forward with the project.

(2) The term of the tax credit, which shall not exceed fifteenyears, and the first taxable year, or first calendar year that includes a tax period, for which the credit may beclaimed;

(3) A requirement that the taxpayer shall maintainoperations at the project location for at least twice the numberof years as the term of the tax credit;

(4) The percentage, as determined by the tax creditauthority, of new income tax revenue that will be allowed as theamount of the credit for each taxable year or for each calendar year that includes a tax period;

(5) A specific method for determining how many newemployees are employed during a taxable year or during a calendar year that includes a tax period;

(6) A requirement that the taxpayer annually shall reportto the director of development the number of newemployees, thenew income tax revenue withheld in connection with the newemployees, and any other information the director needs toperform the director's duties under this section;

(7) A requirement that the director ofdevelopmentannually shall verify the amounts reported under division (D)(6)of this section, and after doing so shall issue a certificate tothe taxpayer stating that the amounts have been verified;

(8)(a) A provision requiring that thetaxpayer, except as otherwise provided in division(D)(8)(b) of this section,shall not relocate employment positions from elsewhere in this state to theproject site thatis the subject of the agreement for the lesser of five years from the date theagreement is entered into or the number of years thetaxpayer is entitled to claim the tax credit.

(b) The taxpayer may relocate employment positions from elsewhereinthis state to the project site that is the subject of the agreement if thedirector of development determines both of thefollowing:

(i) That the site from which the employment positions would berelocatedis inadequate to meet market and industry conditions, expansion plans,consolidation plans, or other business considerations affecting thetaxpayer;

(ii) That the legislative authority of the county,township, or municipal corporation from which the employment positions wouldbe relocated hasbeen notified of the relocation.

For purposes of this section, the movement of anemployment position from one political subdivision to anotherpolitical subdivision shall be considered a relocation of anemployment position, but the transfer of an individual employeefrom one political subdivision to another political subdivisionshall not be considered a relocation of an employment positionas long as the individual's employment position in the firstpolitical subdivision is refilled.

(E) If a taxpayer fails to meet or comply with anycondition or requirement set forth in a tax credit agreement, thetax credit authority may amend the agreement to reduce thepercentage or term of the tax credit. The reduction of thepercentage or term shall take effect in the taxable yearimmediately following the taxable year in which the authorityamends the agreement or in the first tax period beginning in the calendar year immediately following the calendar year in which the authority amends the agreement. If the taxpayer relocates employment positions in violation of theprovision requiredunder division (D)(8)(a)of this section, the taxpayer shall not claim the tax credit under section5733.0610 of the Revised Code for any tax yearsfollowing the calendar year in which the relocation occurs, or shall not claimthe tax credit undersection 5725.32, 5729.032, or 5747.058 of the Revised Code for the taxable year inwhich the relocation occurs and any subsequent taxable years, and shall not claim the tax credit under division (A) of section 5751.50 of the Revised Code for any tax period in the calendar year in which the relocation occurs and any subsequent tax periods.

(F) Projects that consist solely ofpoint-of-final-purchase retail facilities are not eligible for atax credit under this section. If a project consists of bothpoint-of-final-purchase retail facilities and nonretailfacilities, only the portion of the project consisting of thenonretail facilities is eligible for a tax credit and only thenew income tax revenue from new employees of the nonretailfacilities shall be considered when computing the amount of thetax credit. If a warehouse facility is part of apoint-of-final-purchase retail facility and supplies only thatfacility, the warehouse facility is not eligible for a taxcredit. Catalog distribution centers are not consideredpoint-of-final-purchase retail facilities for the purposes ofthis division, and are eligible for tax credits under thissection.

(G) Financial statements and other information submittedto the department of development or the taxcredit authority byan applicant or recipient of a tax credit under this section, andany information taken for any purpose from such statements orinformation, are not public records subject to section 149.43 ofthe Revised Code. However, the chairperson of theauthority maymake use of the statements and other information for purposes ofissuing public reports or in connection with court proceedingsconcerning tax credit agreements under this section. Upon therequest of the tax commissioner or, if the applicant or recipient is an insurance company, upon the request of the superintendent of insurance, the chairperson of theauthorityshall provide to the commissioner or superintendent any statement or informationsubmitted by an applicant or recipient of a tax credit inconnection with the credit. The commissioner or superintendent shall preserve theconfidentiality of the statement or information.

(H) A taxpayer claiming a credit under this section shallsubmit to the tax commissioner or, if the taxpayer is an insurance company, to the superintendent of insurance, a copy of the director ofdevelopment's certificate of verification under division (D)(7)of this section for the taxable year or for the calendar year that includes the tax period. However, failure to submita copy of the certificate does not invalidate a claim for acredit.

(I) The director of development, afterconsultation withthe tax commissioner and the superintendent of insurance and in accordance with Chapter 119. of theRevised Code, shall adopt rules necessary to implement thissection. The rules may provide for recipients of tax creditsunder this section to be charged fees to cover administrativecosts of the tax credit program. At the time the directorgives publicnotice under division (A) of section 119.03 of the Revised Codeof the adoption of the rules, the director shall submit copies ofthe proposed rules to the chairpersons of the standingcommittees oneconomic development in the senate and the house ofrepresentatives.

(J) For the purposes of this section, a taxpayer mayinclude a partnership, a corporation that has made an electionunder subchapter S of chapter one of subtitle A of the InternalRevenue Code, or any other business entity through which incomeflows as a distributive share to its owners. A credit receivedunder this section by a partnership, S-corporation, or other suchbusiness entity shall be apportioned among the persons to whomthe income or profit of the partnership, S-corporation, or otherentity is distributed, in the same proportions as those in whichthe income or profit is distributed.

(K) If the director of development determinesthat ataxpayer who has received a credit under this section is notcomplying with the requirement under division (D)(3) of thissection, the director shall notify the tax credit authorityof thenoncompliance. After receiving such a notice, and after givingthe taxpayer an opportunity to explain the noncompliance, the taxcredit authority may require the taxpayer to refund to this statea portion of the credit in accordance with the following:

(1) If the taxpayer maintained operations at the projectlocation for at least one and one-half times the number of yearsof the term of the tax credit, an amount not exceedingtwenty-five per cent of the sum of any previously allowed creditsunder this section;

(2) If the taxpayer maintained operations at the projectlocation for at least the number of years of the term of the taxcredit, an amount not exceeding fifty per cent of the sum of anypreviously allowed credits under this section;

(3) If the taxpayer maintained operations at the projectlocation for less than the number of years of the term of the taxcredit, an amount not exceeding one hundred per cent of the sumof any previously allowed credits under this section.

In determining the portion of the tax credit to be refundedto this state, the tax credit authority shall consider the effectof market conditions on the taxpayer's project and whether thetaxpayer continues to maintain other operations in this state. After making the determination, the authority shall certify theamount to be refunded to the tax commissioner or superintendent of insurance, as appropriate. ~~The~~ If the amount is certified to the commissioner, the commissionershall make an assessment for that amount against the taxpayerunder Chapter 5733. or, 5747., or 5751. of the Revised Code. If the amount is certified to the superintendent, the superintendent shall make an assessment for that amount against the taxpayer under Chapter 5725. or 5729. of the Revised Code. The timelimitations on assessments under ~~Chapter 5733. or 5747. of theRevised Code~~ those chapters do not apply to an assessment under this division,but the commissioner or superintendent, as appropriate, shall make the assessment within one yearafter the date the authority certifies to the commissioner or superintendentthe amount to berefunded.

(L) On or before the thirty-first day of March each year,the director of development shall submit areport to thegovernor, the president of the senate, and the speaker of thehouse of representatives on the tax credit program under thissection. The report shall include information on the number ofagreements that were entered into under this section during thepreceding calendar year, a description of the project that is thesubject of each such agreement, and an update on the status ofprojects under agreements entered into before the precedingcalendar year.

During the fifth year of the tax credit program, thedirector of development in conjunction with thedirector ofbudget and management shall conduct an evaluation of it. Theevaluation shall include assessments of the effectiveness of theprogram in creating new jobs in this state and of the revenueimpact of the program, and may include a review of the practicesand experiences of other states with similar programs. Thedirector of development shall submit a report onthe evaluationto the governor, the president of the senate, and the speaker ofthe house of representatives on or before January 1, 1998.

(M) There is hereby created the tax credit authority,which consists of the director of developmentand four othermembers appointed as follows: the governor, the president of thesenate, and the speaker of the house of representatives eachshall appoint one member who shall be a specialist in economicdevelopment; the governor also shall appoint a member who is aspecialist in taxation. Of the initial appointees, the membersappointed by the governor shall serve a term of two years; themembers appointed by the president of the senate and the speakerof the house of representatives shall serve a term of four years.Thereafter, terms of office shall be for four years. Initialappointments to the authority shall be made within thirty daysafter January 13,1993. Eachmember shall serve on the authority until the end of the term forwhich the member was appointed. Vacancies shall be filled inthe samemanner provided for original appointments. Any member appointedto fill a vacancy occurring prior to the expiration of the termfor which the member's predecessor was appointed shall holdoffice for theremainder of that term. Members may be reappointed to theauthority. Members of the authority shall receive theirnecessary and actual expenses while engaged in the business ofthe authority. The director of developmentshall serve aschairperson of the authority, and the members annuallyshall elect avice-chairperson from among themselves. Threemembers of theauthority constitute a quorum to transact and vote on thebusiness of the authority. The majority vote of the membershipof the authority is necessary to approve any such business,including the election of the vice-chairperson.

The director of development may appoint aprofessional employee of the department ofdevelopment to serve as the director's substitute at a meeting of theauthority. The director shallmake the appointment in writing. In the absence of the directorfrom a meeting of the authority, the appointed substitute shallserve as chairperson. In the absence of both thedirector and the director'ssubstitute from a meeting, the vice-chairpersonshall serve aschairperson.

(N) For purposes of the credits granted by this section against the taxes imposed under sections 5725.18 and 5729.03 of the Revised Code, "taxable year" means the period covered by the taxpayer's annual statement to the superintendent of insurance.

(1) "Capital investment project" means a plan of investmentat a project site for the acquisition, construction, renovation,or repair ofbuildings, machinery, or equipment,or forcapitalized costs of basic research and new product developmentdetermined in accordance with generally accepted accountingprinciples, but does notincludeany of the following:

(a) Payments made for the acquisition of personal propertythroughoperating leases;

(c) Payments made to a related member as defined in section5733.042 of the Revised Code or to an elected consolidated taxpayer or a combined taxpayer as defined in section 5751.01 of the Revised Code.

(2) "Eligible business" means a business with Ohiooperationssatisfying all of the following:

(a) Employed an average of at least one thousand employeesin full-time employment positions at a project site during each ofthetwelve months preceding the application for a tax credit underthis section; and

(b) On or after January 1, 2002, has made payments for thecapital investment project ofeither of the following:

(i) At least two hundred million dollars in the aggregateat the projectsite during a period of three consecutive calendaryearsincluding the calendar year that includes a day of thetaxpayer's taxable year or tax period with respect to which the credit isgranted;

(ii) If the average wage of all full-time employment positions at theproject site is greater than four hundred per cent of the federalminimum wage, at least one hundred million dollars in the aggregate at the projectsite during a period of three consecutive calendar years includingthe calendar year that includes a day of the taxpayer's taxableyear or tax period with respect to which the credit is granted.

(c)Is engaged at the project site primarily as amanufacturer or is providing significant corporate administrativefunctions;

(d) Has had a capital investment project reviewed andapproved by the tax creditauthority as provided in divisions (C),(D), and (E) of thissection.

(3) "Full-time employment position" means a position ofemployment for consideration for at least thirty-five hours aweek that has beenfilled for at leastone hundred eighty days immediately precedingthe filing of anapplication under this section and for at leastone hundred eighty days during each taxable year or each calendar year that includes a tax period with respect towhich the credit isgranted.

(4)"Manufacturer" has the same meaning as in section5739.011 of the Revised Code.

(5) "Project site" means an integrated complexof facilitiesin this state, as specifiedby the tax credit authority under thissection, within afifteen-mile radius where a taxpayer is primarily operating as an eligible business.

(6) "Applicable corporation" means a corporation satisfying all of the following:

(a)(i) For the entire taxable year immediately preceding the tax year, the corporation develops software applications primarily to provide telecommunication billing and information services through outsourcing or licensing to domestic or international customers.

(ii) Sales and licensing of software generated at least six hundred million dollars in revenue during the taxable year immediately preceding the tax year the corporation is first entitled to claim the credit provided under division (B) of this section.

(b) For the entire taxable year immediately preceding the tax year, the corporation or one or more of its related members provides customer or employee care and technical support for clients through one or more contact centers within this state, and the corporation and its related members together have a daily average, based on a ~~three hundred sixty-five day~~ three-hundred-sixty-five-day year, of at least five hundred thousand successful customer contacts through one or more of their contact centers, wherever located.

(7) "Related member" has the same meaning as in section 5733.042 of the Revised Code as that section existed on the effective date of its amendment by Am. Sub. H.B. 215 of the 122nd general assembly, September 29, 1997.

(8) "Successful customer contact" means a contact with an end user via telephone, including interactive voice recognition or similar means, where the contact culminates in a conversation or connection other than a busy signal or equipment busy.

(9) "Telecommunications" means all forms of telecommunications service as defined in section 5739.01 of the Revised Code, and includes services in wireless, wireline, cable, broadband, internet protocol, and satellite.

(10)(a) "Applicable difference" means the difference between the tax for the tax year under Chapter 5733. of the Revised Code applying the law in effect for that tax year, and the tax for that tax year if section 5733.042 of the Revised Code applied as that section existed on the effective date of its amendment by Am. Sub. H.B. 215 of the 122nd general assembly, September 29, 1997, subject to division (A)(10)(b) of this section.

(b) If the tax rate set forth in division (B) of section 5733.06 of the Revised Code for the tax year is less than eight and one-half per cent, the tax calculated under division (A)(10)(a) of this section shall be computed by substituting a tax rate of eight and one-half per cent for the rate set forth in division (B) of section 5733.06 of the Revised Code for the tax year.

(B) The tax credit authority created under section 122.17 ofthe Revised Code may grant tax credits under this section for thepurpose of fostering job retention in this state. Uponapplication by an eligible business and upon consideration of therecommendation of the director of budget and management, taxcommissioner, and director of development under division (C) ofthis section, the tax credit authority may grant to an eligiblebusiness a nonrefundable credit against the tax imposed by section5733.06 or 5747.02 or levied under Chapter 5751. of the Revised Code for a period up to fifteentaxable years and against the tax levied by Chapter 5751. of the Revised Code for a period of up to fifteen calendar years. The credit shall be in anamount not exceedingseventy-five per cent of the Ohio income tax withheldfrom theemployees of the eligible business occupying full-time employmentpositions at theproject site during the calendar year thatincludes the last day of such business' taxable year or tax periodwith respectto which thecredit is granted. The amount of the credit shallnot be based onthe Ohio income tax withheld from full-timeemployees for acalendar year prior to the calendar year in whichthe minimum investmentrequirementreferred to indivision(A)(2)(b) of this section is completed.Thecredit shallbeclaimed only for the taxable years or tax periods specifiedin theeligiblebusiness' agreement with the tax credit authorityunder division(E) of this section, but in no event shall thecredit be claimedfor a taxable year or tax period terminating before the datespecified in theagreement. Any credit granted under this section against the tax imposed by section 5733.06 or 5747.02 of the Revised Code, to the extent not fully utilized against such tax for taxable years ending prior to 2008, shall automatically be converted without any action taken by the tax credit authority to a credit against the tax levied under Chapter 5751. of the Revised Code for tax periods beginning on or after July 1, 2008, provided that the person to whom the credit was granted is subject to such tax. The converted credit shall apply to those calendar years in which the remaining taxable years specified in the agreement end.

The credit computed under this division is in addition to any credit allowed under division (M) of this section which the tax credit authority may also include in the agreement.

Any unused portion of a tax credit may be carried forwardfornot more than three additional years after the year for whichthecredit is granted.

(C) A taxpayerthat proposes a capital investmentproject toretain jobs in this state may apply to the tax creditauthority toenter into an agreement for a tax credit under thissection. Thedirector of development shall prescribe the form oftheapplication. After receipt of an application, the authorityshallforward copies of the application to the director of budgetandmanagement, the tax commissioner, and the director ofdevelopment,each of whom shall review the application todetermine theeconomic impact the proposed project would have onthe state andthe affected political subdivisions and shall submita summary oftheir determinations and recommendations to theauthority. ~~Theauthority shall make no agreements under thissection after June30, 2007.~~

(D) Upon review of the determinations and recommendationsdescribed in division (C) of this section, the tax creditauthority may enter into an agreement with the taxpayer for acredit under this section ifthe authority determines all ofthe following:

(1) The taxpayer's capital investment project will result inthe retention of full-time employment positions in this state.

(2) The taxpayer is economically sound and has the abilityto complete the proposed capital investment project.

(3) The taxpayer intends to and has the ability to maintainoperations at the project site for at least twice the term of thecredit.

(4) Receiving the credit is a major factor in the taxpayer'sdecision to begin, continue with, or complete the project.

(5) The political subdivisions in which the project islocated have agreed to provide substantial financial support tothe project.

(1) A detailed description of the project that is thesubject of the agreement, including the amount of the investment,the period over which the investment has been or is being made,and the number of full-time employment positions at the projectsite.

(2) The method of calculating the number of full-timeemployment positions as specified in division (A)(3) of thissection.

(3) The term and percentage of the tax credit, and thefirstyear for which the credit may be claimed.

(4) A requirement that the taxpayer maintainoperations atthe project site for at least twice the numberof years as theterm of the credit.

(5) A requirement that the taxpayer retain a specifiednumber of full-time employment positions at the project site andwithin this state for the term of the credit, including arequirement that the taxpayer continue to employ at least onethousand employees in full-time employment positions at theprojectsite during the entire term of any agreement, subject todivision (E)(7)of this section.

(6) A requirement that the taxpayer annually report to thedirector of development the number of full-time employmentpositions subject to the credit, the amount of tax withheld fromemployees in those positions, the amount of the payments made forthe capital investment project, and any other information thedirector needs to perform the director's duties under thissection.

(7) A requirement that the director of development annuallyreview the annual reports of the taxpayer to verify theinformation reported under division (E)(6) of this section andcompliance with the agreement. Upon verification, the directorshall issue a certificate to the taxpayer stating that theinformation has been verified and identifying the amount of thecredit for the taxable year. Unless otherwise specified by the tax credit authority in a resolution and included as part of the agreement, the director shall not issue acertificate for any year in which the total number of filledfull-time employment positions for each day of the calendar yeardivided by three hundred sixty-five is less than ninety per centof the full-time employment positions specified in division (E)(5)of this section. In determining the number of full-timeemployment positions, no position shall be counted that is filledby an employee who is included in the calculation of a tax creditunder section 122.17 of the Revised Code.

(8)(a) A provision requiring that the taxpayer, except asotherwise provided in division (E)(8)(b) of this section, shallnot relocate employment positions from elsewhere in this state tothe project site that is the subject of the agreement for thelesser of five years from the date the agreement is entered intoor the number of years the taxpayer is entitled to claim thecredit.

(b) The taxpayer may relocate employment positions fromelsewhere in this state to the project site that is the subject ofthe agreement if the director of development determines both ofthe following:

(i) That the site from which the employment positions wouldbe relocated is inadequate to meet market and industry conditions,expansion plans, consolidation plans, or other businessconsiderations affecting the taxpayer;

(ii) That the legislative authority of the county, township,or municipal corporation from which the employment positions wouldbe relocated has been notified of the relocation.

For purposes ofthis section, the movement of an employmentposition from onepolitical subdivision to another politicalsubdivision shall beconsidered a relocation of an employmentposition unless the movement is confined to the project site.Thetransfer of an individual employee from onepoliticalsubdivisionto another political subdivision shall notbeconsidered arelocation of an employment position as long astheindividual'semployment position in the first politicalsubdivision isrefilled.

(9) A waiver by the taxpayer of any limitations periodsrelating to assessments or adjustments resulting from thetaxpayer's failure to comply with the agreement.

(F) If a taxpayer fails to meet or comply with any conditionor requirement set forth in a tax credit agreement, the tax creditauthority may amend the agreement to reduce the percentage or termof the credit. The reduction of the percentage or term shall takeeffect in the taxable year immediately following the taxable yearin which the authority amends the agreement or in the first tax period beginning in the calendar year immediately following the calendar year in which the authority amends the agreement. If the taxpayerrelocates employment positions in violation of the provisionrequired under division (D)(8)(a) of this section, the taxpayershall not claim the tax credit under section 5733.0610 of theRevised Code for any tax years following the calendar year inwhich the relocation occurs, or shall not claim the tax creditunder section 5747.058 of the Revised Code for the taxable year inwhich the relocation occurs and any subsequent taxable years, and shall not claim the tax credit under division (A) of section 5751.50 of the Revised Code for the tax period in which the relocation occurs and any subsequent tax periods.

(G) Financial statements and other information submitted tothe department of development or the tax credit authority by anapplicant for or recipient of a tax credit under this section, andany information taken for any purpose from such statements orinformation, are not public records subject to section 149.43 ofthe Revised Code. However, the chairperson of the authority maymake use of the statements and other information for purposes ofissuing public reports or in connection with court proceedingsconcerning tax credit agreements under this section. Upon therequest of the tax commissioner, the chairperson of the authorityshall provide to the commissioner any statement or otherinformation submitted by an applicant for or recipient of a taxcredit in connection with the credit. The commissioner shallpreserve the confidentiality of the statement or otherinformation.

(H) A taxpayer claiming a tax credit under this sectionshall submit to the tax commissioner a copy of the director ofdevelopment's certificate of verification under division (E)(7) ofthis section for the taxable year or for the calendar year that includes the tax period. However, failure to submit acopy of the certificate does not invalidate a claim for a credit.

(I) For the purposes of this section, a taxpayer may includea partnership, a corporation that has made an election undersubchapter S of chapter one of subtitle A of the Internal RevenueCode, or any other business entity through which income flows as adistributive share to its owners. A tax credit received underthis section by a partnership, S-corporation, or other suchbusiness entity shall be apportioned among the persons to whom theincome or profit of the partnership, S-corporation, or otherentity is distributed, in the same proportions as those in whichthe income or profit is distributed.

(J) If the director of development determines that ataxpayerthat received a tax credit under this section isnotcomplying with the requirement under division (E)(4) of thissection, thedirector shall notify the tax credit authority of thenoncompliance. After receiving such a notice, and after givingthe taxpayer an opportunity to explain the noncompliance, theauthority may terminate the agreement and require the taxpayer torefund to the state all or a portion of the credit claimed inprevious years, as follows:

(1) If the taxpayer maintained operations at the projectsite for less than the term of the credit, the amount required tobe refunded shall not exceed the amount of any tax creditspreviously allowed and received under this section.

(2) If the taxpayer maintained operations at the projectsite longer than the term of the credit but less than one andone-half times the term of the credit, the amount required to berefunded shall not exceed fifty per cent of the sum of any taxcredits previously allowed and received under this section.

(3) If the taxpayer maintained operations at the projectsite for at least one and one-half times the term of the creditbut less than twice the term of the credit, the amount required tobe refunded shall not exceed twenty-five per cent of the sum ofany tax credits previously allowed and received under thissection.

In determining the portion of the credit to be refunded tothis state, the authority shall consider the effect of marketconditions on the taxpayer's project and whether the taxpayercontinues to maintain other operations in this state. Aftermaking the determination, the authority shall certify the amountto be refunded to the tax commissioner. The commissioner shallmake an assessment for that amount against the taxpayer underChapter 5733. or, 5747., or 5751. of the Revised Code. The time limitationson assessments under ~~Chapter 5733. or 5747. of the Revised Code~~ those chapters donot apply to an assessment under this division, but thecommissioner shall make the assessment within one year after thedate the authority certifies to the commissioner the amount to berefunded.

If the director of development determines that a taxpayerthat received a tax credit under this section has reduced thenumber of employees agreed to under division (E)(5) of thissection by more than ten per cent, the director shall notify thetax credit authority of the noncompliance. After receiving suchnotice, and after providing the taxpayer an opportunity to explainthe noncompliance, the authority may amend the agreement to reducethe percentage or term of the tax credit. The reduction in thepercentage or term shall take effect in the taxable year, or in the calendar year that includes the tax period, in whichthe authority amends the agreement.

(K) The director of development, after consultation with thetax commissioner and in accordance with Chapter 119. of theRevised Code, shall adopt rules necessary to implement thissection. The rules may provide for recipients of tax creditsunder this section to be charged fees to cover administrativecosts of the tax credit program. At the time the director givespublic notice under division (A) of section 119.03 of the RevisedCode of the adoption of the rules, the director shall submitcopies of the proposed rules to the chairpersons of the standingcommittees on economic development in the senate and the house ofrepresentatives.

(L) On or before the thirty-first day of March of each year,the director of development shall submit a report to the governor,the president of the senate, and the speaker of the house ofrepresentatives on the tax credit program under this section. Thereport shall include information on the number of agreements thatwere entered into under this section during the preceding calendaryear, a description of the project that is the subject of eachsuch agreement, and an update on the status of projects underagreements entered into before the preceding calendar year.

(M)(1) A nonrefundable credit shall be allowed to an applicable corporation and its related members in an amount equal to the applicable difference. The credit is in addition to the credit granted to the corporation or related members under division (B) of this section. The credit is subject to divisions (B) to (E) and division (J) of this section.

(2) A person qualifying as an applicable corporation under this section for a tax year does not necessarily qualify as an applicable corporation for any other tax year. No person is entitled to the credit allowed under division (M) of this section for the tax year immediately following the taxable year during which the person fails to meet the requirements in divisions (A)(6)(a)(i) and (A)(6)(b) of this section. No person is entitled to the credit allowed under division (M) of this section for any tax year for which the person is not eligible for the credit provided under division (B) of this section.

Sec. 122.172. (A) As used in this section, "tax liability" means the tax owed under section 5733.06 or 5747.02 of the Revised Code after allowance of all nonrefundable credits and prior to the allowance of all refundable credits. The tax owed under section 5733.06 of the Revised Code shall take into account any adjustments to such tax required by division (G) of section 5733.01 of the Revised Code that apply prior to allowance of refundable credits.

(B)(1) The director of development shall administer the manufacturing equipment grant program to provide grants for new manufacturing machinery and equipment qualifying for the grant under section 122.173 of the Revised Code. Except as provided in division (C) of this section, the grants apply to the taxes imposed by sections 5733.06 and 5747.02 of the Revised Code for taxable years ending on or after July 1, 2005.

(2) To claim a grant, a taxpayer satisfying the requirements of section 122.173 of the Revised Code shall complete a grant request form, as prescribed by the director in consultation with the tax commissioner, and shall file the form with the tax return for the taxable year for which the grant is claimed. In no event shall the grant reduce a taxpayer's tax liability below the minimum tax owed for the taxable year. The grant request form shall provide the information required to allow the grant for the taxable year and is subject to audit by the director and the commissioner. Any portion of the grant in excess of the taxpayer's tax liability shall not be refundable but may be carried forward as provided in section 122.173 of the Revised Code. Upon the director's request, the commissioner shall provide completed grant request forms filed under this section to the director in a mutually agreed upon format.

(C) If a taxpayer is required to repay any credit allowed under section 5733.33 or 5747.31 of the Revised Code for a taxable year ending prior to July 1, 2005, for a reason not specified in Chapter 5733. or 5747. of the Revised Code, a grant shall be available for that taxable year under section 122.173 of the Revised Code to the extent provided in that section.

(D) Any tax liability under section 5733.06 or 5747.02 of the Revised Code that is underpaid as the result of an improper claim for a grant under this section may be assessed by the tax commissioner in the manner provided by section 5733.11 or 5747.11 of the Revised Code.

(1) "Manufacturing machinery and equipment" means engines and machinery, and tools and implements, of every kind used, or designed to be used, in refining and manufacturing. "Manufacturing machinery and equipment" does not include property acquired after December 31, 1999, that is used:

(b) For the generation of electricity, if fifty per cent or more of the electricity that the property generates is consumed, during the one-hundred-twenty-month period commencing with the date the property is placed in service, by persons that are not related members to the person who generates the electricity.

(2) "New manufacturing machinery and equipment" means manufacturing machinery and equipment, the original use in this state of which commences with the taxpayer or with a partnership of which the taxpayer is a partner. "New manufacturing machinery and equipment" does not include property acquired after December 31, 1999, that is used:

(3)(a) "Purchase" has the same meaning as in section 179(d)(2) of the Internal Revenue Code.

(b) For purposes of this section, any property that is not manufactured or assembled primarily by the taxpayer is considered purchased at the time the agreement to acquire the property becomes binding. Any property that is manufactured or assembled primarily by the taxpayer is considered purchased at the time the taxpayer places the property in service in the county for which the taxpayer will calculate the county excess amount.

(c) Notwithstanding section 179(d) of the Internal Revenue Code, a taxpayer's direct or indirect acquisition of new manufacturing machinery and equipment is not purchased on or after July 1, 1995, if the taxpayer, or a person whose relationship to the taxpayer is described in subparagraphs (A), (B), or (C) of section 179(d)(2) of the Internal Revenue Code, had directly or indirectly entered into a binding agreement to acquire the property at any time prior to July 1, 1995.

(4) "Qualifying period" means the period that begins July 1, 1995, and ends June 30, 2005.

(5) "County average new manufacturing machinery and equipment investment" means either of the following:

(a) The average annual cost of new manufacturing machinery and equipment purchased for use in the county during baseline years, in the case of a taxpayer that was in existence for more than one year during baseline years.

(b) Zero, in the case of a taxpayer that was not in existence for more than one year during baseline years.

(6) "Partnership" includes a limited liability company formed under Chapter 1705. of the Revised Code or under the laws of any other state, provided that the company is not classified for federal income tax purposes as an association taxable as a corporation.

(7) "Partner" includes a member of a limited liability company formed under Chapter 1705. of the Revised Code or under the laws of any other state, provided that the company is not classified for federal income tax purposes as an association taxable as a corporation.

(8) "Distressed area" means either a municipal corporation that has a population of at least fifty thousand or a county that meets two of the following criteria of economic distress, or a municipal corporation the majority of the population of which is situated in such a county:

(a) Its average rate of unemployment, during the most recent five-year period for which data are available, is equal to at least one hundred twenty-five per cent of the average rate of unemployment for the United States for the same period;

(b) It has a per capita income equal to or below eighty per cent of the median county per capita income of the United States as determined by the most recently available figures from the United States census bureau;

(c)(i) In the case of a municipal corporation, at least twenty per cent of the residents have a total income for the most recent census year that is below the official poverty line;

(ii) In the case of a county, in intercensal years, the county has a ratio of transfer payment income to total county income equal to or greater than twenty-five per cent.

(9) "Eligible area" means a distressed area, a labor surplus area, an inner city area, or a situational distress area.

(10) "Inner city area" means, in a municipal corporation that has a population of at least one hundred thousand and does not meet the criteria of a labor surplus area or a distressed area, targeted investment areas established by the municipal corporation within its boundaries that are comprised of the most recent census block tracts that individually have at least twenty per cent of their population at or below the state poverty level or other census block tracts contiguous to such census block tracts.

(11) "Labor surplus area" means an area designated as a labor surplus area by the United States department of labor.

(12) "Official poverty line" has the same meaning as in division (A) of section 3923.51 of the Revised Code.

(13) "Situational distress area" means a county or a municipal corporation that has experienced or is experiencing a closing or downsizing of a major employer that will adversely affect the county's or municipal corporation's economy. In order to be designated as a situational distress area, for a period not to exceed thirty-six months, the county or municipal corporation may petition the director of development. The petition shall include written documentation that demonstrates all of the following adverse effects on the local economy:

(b) The impact that the job loss has on the county's or municipal corporation's unemployment rate as measured by the state director of job and family services;

(e) The impact that the closing or downsizing has on suppliers located in the county or municipal corporation.

(14) "Cost" has the same meaning and limitation as in section 179(d)(3) of the Internal Revenue Code.

(a) Calendar years 1992, 1993, and 1994, with regard to a grant claimed for the purchase during calendar year 1995, 1996, 1997, or 1998 of new manufacturing machinery and equipment;

(b) Calendar years 1993, 1994, and 1995, with regard to a grant claimed for the purchase during calendar year 1999 of new manufacturing machinery and equipment;

(c) Calendar years 1994, 1995, and 1996, with regard to a grant claimed for the purchase during calendar year 2000 of new manufacturing machinery and equipment;

(d) Calendar years 1995, 1996, and 1997, with regard to a grant claimed for the purchase during calendar year 2001 of new manufacturing machinery and equipment;

(e) Calendar years 1996, 1997, and 1998, with regard to a grant claimed for the purchase during calendar year 2002 of new manufacturing machinery and equipment;

(f) Calendar years 1997, 1998, and 1999, with regard to a grant claimed for the purchase during calendar year 2003 of new manufacturing machinery and equipment;

(g) Calendar years 1998, 1999, and 2000, with regard to a grant claimed for the purchase during calendar year 2004 of new manufacturing machinery and equipment;

(h) Calendar years 1999, 2000, and 2001, with regard to a grant claimed for the purchase on or after January 1, 2005, and on or before June 30, 2005, of new manufacturing machinery and equipment.

(16) "Related member" has the same meaning as in section 5733.042 of the Revised Code.

(17) "Qualifying controlled group" has the same meaning as in section 5733.04 of the Revised Code.

(18) "Tax liability" has the same meaning as in section 122.172 of the Revised Code.

(B)(1) Subject to divisions (I) and (J) of this section, a grant is allowed against the tax imposed by section 5733.06 or 5747.02 of the Revised Code for a taxpayer that purchases new manufacturing machinery and equipment during the qualifying period, provided that the new manufacturing machinery and equipment are installed in this state not later than June 30, 2006. The taxpayer need not be a manufacturer.

(2)(a) Except as otherwise provided in division (B)(2)(b) of this section, a grant may be claimed under this section in excess of one million dollars only if the cost of all manufacturing machinery and equipment owned in this state by the taxpayer claiming the grant on the last day of the calendar year exceeds the cost of all manufacturing machinery and equipment owned in this state by the taxpayer on the first day of that calendar year.

As used in division (B)(2)(a) of this section, "calendar year" means the calendar year in which the machinery and equipment for which the grant is claimed was purchased.

(b) Division (B)(2)(a) of this section does not apply if the taxpayer claiming the grant applies for and is issued a waiver of the requirement of that division. A taxpayer may apply to the director of development for such a waiver in the manner prescribed by the director, and the director may issue such a waiver if the director determines that granting the grant is necessary to increase or retain employees in this state, and that the grant has not caused relocation of manufacturing machinery and equipment among counties within this state for the primary purpose of qualifying for the grant.

(C)(1) Except as otherwise provided in division (C)(2) and division (I) of this section, the grant amount is equal to seven and one-half per cent of the excess of the cost of the new manufacturing machinery and equipment purchased during the calendar year for use in a county over the county average new manufacturing machinery and equipment investment for that county.

(2) Subject to division (I) of this section, as used in division (C)(2) of this section, "county excess" means the taxpayer's excess cost for a county as computed under division (C)(1) of this section.

Subject to division (I) of this section, a taxpayer with a county excess, whose purchases included purchases for use in any eligible area in the county, the grant amount is equal to thirteen and one-half per cent of the cost of the new manufacturing machinery and equipment purchased during the calendar year for use in the eligible areas in the county, provided that the cost subject to the thirteen and one-half per cent rate shall not exceed the county excess. If the county excess is greater than the cost of the new manufacturing machinery and equipment purchased during the calendar year for use in eligible areas in the county, the grant amount also shall include an amount equal to seven and one-half per cent of the amount of the difference.

(3) If a taxpayer is allowed a grant for purchases of new manufacturing machinery and equipment in more than one county or eligible area, it shall aggregate the amount of those grants each year.

(4) Except as provided in division (J) of this section, the taxpayer shall claim one-seventh of the grant amount for the taxable year ending in the calendar year in which the new manufacturing machinery and equipment is purchased for use in the county by the taxpayer or partnership. One-seventh of the taxpayer grant amount is allowed for each of the six ensuing taxable years. Except for carried-forward amounts, the taxpayer is not allowed any grant amount remaining if the new manufacturing machinery and equipment is sold by the taxpayer or partnership or is transferred by the taxpayer or partnership out of the county before the end of the seven-year period unless, at the time of the sale or transfer, the new manufacturing machinery and equipment has been fully depreciated for federal income tax purposes.

(5)(a) A taxpayer that acquires manufacturing machinery and equipment as a result of a merger with the taxpayer with whom commenced the original use in this state of the manufacturing machinery and equipment, or with a taxpayer that was a partner in a partnership with whom commenced the original use in this state of the manufacturing machinery and equipment, is entitled to any remaining or carried-forward grant amounts to which the taxpayer was entitled.

(b) A taxpayer that enters into an agreement under division (C)(3) of section 5709.62 of the Revised Code and that acquires manufacturing machinery or equipment as a result of purchasing a large manufacturing facility, as defined in section 5709.61 of the Revised Code, from another taxpayer with whom commenced the original use in this state of the manufacturing machinery or equipment, and that operates the large manufacturing facility so purchased, is entitled to any remaining or carried-forward grant amounts to which the other taxpayer who sold the facility would have been entitled under this section had the other taxpayer not sold the manufacturing facility or equipment.

(c) New manufacturing machinery and equipment is not considered sold if a pass-through entity transfers to another pass-through entity substantially all of its assets as part of a plan of reorganization under which substantially all gain and loss is not recognized by the pass-through entity that is transferring the new manufacturing machinery and equipment to the transferee and under which the transferee's basis in the new manufacturing machinery and equipment is determined, in whole or in part, by reference to the basis of the pass-through entity that transferred the new manufacturing machinery and equipment to the transferee.

(d) Division (C)(5) of this section applies only if the acquiring taxpayer or transferee does not sell the new manufacturing machinery and equipment or transfer the new manufacturing machinery and equipment out of the county before the end of the seven-year period to which division (C)(4) of this section refers.

(e) Division (C)(5)(b) of this section applies only to the extent that the taxpayer that sold the manufacturing machinery or equipment, upon request, timely provides to the tax commissioner any information that the tax commissioner considers to be necessary to ascertain any remaining or carried-forward amounts to which the taxpayer that sold the facility would have been entitled under this section had the taxpayer not sold the manufacturing machinery or equipment. Nothing in division (C)(5)(b) or (e) of this section shall be construed to allow a taxpayer to claim any grant amount with respect to the acquired manufacturing machinery or equipment that is greater than the amount that would have been available to the other taxpayer that sold the manufacturing machinery or equipment had the other taxpayer not sold the manufacturing machinery or equipment.

(D) The taxpayer shall claim the grant allowed by this section in the manner provided by section 122.172 of the Revised Code. Any portion of the grant in excess of the taxpayer's tax liability for the taxable year shall not be refundable but may be carried forward for the next three consecutive taxable years.

(E) A taxpayer purchasing new manufacturing machinery and equipment and intending to claim the grant shall file, with the director of development, a notice of intent to claim the grant on a form prescribed by the director of development. The director of development shall inform the tax commissioner of the notice of intent to claim the grant. No grant may be claimed under this section for any manufacturing machinery and equipment with respect to which a notice was not filed by the date of a timely filed return, including extensions, for the taxable year that includes September 30, 2005, but a notice filed on or before such date under division (E) of section 5733.33 of the Revised Code of the intent to claim the credit under that section or section 5747.31 of the Revised Code also shall be considered a notice of the intent to claim a grant under this section.

(F) The director of development shall annually certify, by the first day of January of each year during the qualifying period, the eligible areas for the tax grant for the calendar year that includes that first day of January. The director shall send a copy of the certification to the tax commissioner.

(G) New manufacturing machinery and equipment for which a taxpayer claims the credit under section 5733.31, 5733.311, 5747.26, or 5747.261 of the Revised Code shall not be considered new manufacturing machinery and equipment for purposes of the grant under this section.

(H)(1) Notwithstanding sections 5733.11 and 5747.13 of the Revised Code, but subject to division (H)(2) of this section, the tax commissioner may issue an assessment against a person with respect to a grant claimed under this section for new manufacturing machinery and equipment described in division (A)(1)(b) or (2)(b) of this section, if the machinery or equipment subsequently does not qualify for the grant.

(2) Division (H)(1) of this section shall not apply after the twenty-fourth month following the last day of the period described in divisions (A)(1)(b) and (2)(b) of this section.

(I) Notwithstanding any other provision of this section to the contrary, in the case of a qualifying controlled group, the grant available under this section to a taxpayer or taxpayers in the qualifying controlled group shall be computed as if all corporations in the group were a single corporation. The grant shall be allocated to such a taxpayer or taxpayers in the group in any amount elected for the taxable year by the group. The election shall be revocable and amendable during the period described in division (B) of section 5733.12 of the Revised Code.

This division applies to all purchases of new manufacturing machinery and equipment made on or after January 1, 2001, and to all baseline years used to compute any grant attributable to such purchases; provided, that this division may be applied solely at the election of the qualifying controlled group with respect to all purchases of new manufacturing machinery and equipment made before that date, and to all baseline years used to compute any grant attributable to such purchases. The qualifying controlled group at any time may elect to apply this division to purchases made prior to January 1, 2001, subject to the following:

(2) The election need not accompany a timely filed report, but the election may accompany a subsequently filed but timely application for refund, a subsequently filed but timely amended report, or a subsequently filed but timely petition for reassessment.

(J) Except as provided in division (B) of section 122.172 of the Revised Code, no grant under this section may be claimed for any taxable year for which a credit is allowed under section 5733.33 or 5747.31 of the Revised Code. If the tax imposed by section 5733.06 of the Revised Code for which a grant is allowed under this section has been prorated under division (G)(2) of section 5733.01 of the Revised Code, the grant shall be prorated by the same percentage as the tax.

(1) "Facility" means all real property and interests inreal property owned by a either of the following:

(a) A landlord and leased to a tenant pursuantto a project that is the subject of an agreement under thissection;

(b) The United States or any department, agency, or instrumentality of the United States.

(2) "Full-time employee" has the same meaning as undersection 122.17 of the Revised Code;.

(3) "Landlord" means a county or municipal corporation, ora corporate entity that is an instrumentality of a county ormunicipal corporation and that is not subject to the tax imposedby section 5733.06 or5747.02 of the Revised Code;.

(4) "New employee" means a full-time employee firstemployed by, or under or pursuant to a contract with, the tenant in the project that is the subject of theagreement after a landlord enters into an agreement with the taxcredit authority under this section;.

(5) "New income tax revenue" means the total amountwithheld under section 5747.06 of the Revised Code by the tenant or tenantsat a facility during a year from the compensation of newemployees for the tax levied under Chapter 5747. of the RevisedCode;.

(6) "Retained income tax revenue" means the total amount withheld under section 5747.06 of the Revised Code from employees retained at an existing facility recommended for closure to the base realignment and closure commission in the United States department of defense.

(7) "Tenant" means the United States, any department,agency, or instrumentality of the United States, or any person under contract with the United States or any department, agency, or instrumentality of the United States.

(B) The tax credit authority may enter into an agreementwith a landlord under which an annual payment equal to the newincome tax revenue or retained income tax revenue, as applicable, or the amount called for under division (D)(3)or (4) of this section shall be made to the landlord from moneysof this state that were not raised by taxation, and shall becredited by the landlord to the rental owing from the tenant tothe landlord for a facility.

(C) A landlord that proposes a project to create new jobsin this state or retain jobs in this state at an existing facility recommended for closure or realignment to the base realignment and closure commission in the United States department of defense may apply to the tax credit authority to enter intoan agreement for annual payments under this section. Thedirector of development shall prescribe the form of theapplication. After receipt of an application, the authority mayenter into an agreement with the landlord for annual paymentsunder this section if it determines all of the following:

(1) The project will create new jobs in this state; or retain jobs at a facility recommended for closure or realignment to the base realignment and closure commission in the United States department of defense.

(2) The project is economically sound and will benefit thepeople of this state by increasing opportunities for employmentand strengthening the economy of this state;.

(3) Receiving the annual payments will be a major factorin the decision of the landlord and tenant to go forward with theproject.

(D) An agreement with a landlord for annual payments shallinclude all of the following:

(3) Based on the estimated new income tax revenue or retained income tax revenue, as applicable, to bederived from the facility at the time the agreement is enteredinto, provision for a guaranteed payment to the landlordcommencing with the issuance by the landlord of any bonds orother forms of financing for the construction of the facility andcontinuing for the term approved by the authority;

(4) Provision for offsets to this state of the annualpayment in years in which such annual payment is greater than theguaranteed payment of amounts previously paid by thisstate to the landlord in excess of the new income tax revenue or retained income tax revenue, as applicable, byreason of the guaranteed payment;

(5) A specific method for determining how many newemployees are employed during a year;

(6) A requirement that the landlord annually shall obtainfrom the tenant and report to the director of development thenumber of new employees, and the new income tax revenue withheld inconnection with the new employees, or the number of retained employees and the retained income tax revenue withheld in connection with the retained employees, as applicable, and any other information thedirector needs to perform the director's duties under thissection;

(7) A requirement that the director of developmentannually shall verify the amounts reported under division (D)(6)of this section, and after doing so shall issue a certificate tothe landlord stating that the amounts have been verified.

(E) The director of development, in accordance withChapter 119. of the Revised Code, shall adopt rules necessary toimplement this section.

Sec. 122.40. (A) There is hereby created the developmentfinancing advisory council to assist in carrying out the programscreated pursuant to sections 122.39 to 122.62 and Chapter 166. ofthe Revised Code.

(B) The council shall consist of seven members appointedby the governor, with the advice and consent of the senate, who areselected for their knowledge of and experience in economicdevelopment financing, one member of the senate appointed by thepresident of the senate, one member of the house ofrepresentatives appointed by the speaker of the house ofrepresentatives, and the director of development or the director's designee. With respect to thecouncil:

(1) No more than four members of the council appointed bythe governor shall be members of the same political party.

(2) Each member shall hold office from the date of the member'sappointment until the end of the term for which the memberwas appointed.

(3) The terms of office for the seven members appointed bythe governor shall be for five years commencing on the first dayof January and ending on the thirty-first day of December. The seven members appointed by the governor who are serving terms of office of seven years on ~~the effective date of this amendment~~ December 30, 2004, shall continue to serve those terms, but their successors in office, including the filling of a vacancy occurring prior to the expiration of those terms, shall be appointed for terms of five years in accordance with this division.

(5) As a term of a member of the council appointed by thegovernor expires, the governor shall appoint a successor with theadvice and consent of the senate.

(6) Except as otherwise provided in division (B)(3) of this section, any member appointed to fill a vacancy occurring priorto the expiration of the term for which the member's predecessor wasappointed shall hold office for the remainder of thepredecessor's term.

(7) Any member shall continue in office subsequent to theexpiration date of the member's term until themember's successor takes office, oruntil a period of sixty days has elapsed, whichever occurs first.

(8) Before entering upon duties as a member of the council,each member shalltake an oath provided by Section 7 of Article XV, OhioConstitution.

(9) The governor may, at any time, remove any nonlegislative memberpursuant to section 3.04 of the Revised Code.

(10) Members of the council, notwithstanding section101.26of the Revised Code with respect to members who are members ofthe general assembly, shall receive their necessary and actualexpenses while engaged in the business of the council andshall bepaid at the per diem rate of step 1, pay range 31, of section124.15 of the Revised Code.

(11) ~~Four~~ Six members of the council constitute a quorum and the affirmative vote of six members is necessary for any action taken by the council.

(12) In the event of the absence of a member appointed bythe president of the senate or by the speaker of the house ofrepresentatives, the following persons may serve in the member'sabsence: the president of the senate or the speaker of thehouse, as the case may be, or a member of the senate or of thehouse of representatives, of the same political party as thedevelopment financing advisory council member, designatedby thepresident of the senate or the speaker of the house.

Sec. 122.603. (A)(1) Upon approval by the director ofdevelopment and after enteringinto a participation agreement withthe department of development, a participating financialinstitution making acapital accessloan shall establish a programreserve account.Theaccount shallbe an interest-bearing accountand shall containonly moneys deposited into itunder the programand the interestpayable on the moneys in the account.

(2) All interest payable on the moneys in the programreserve accountshall be added to the moneys and held as anadditionalloss reserve. The director may require that a portionor all ofthe accrued interest so held in the accountbe releasedto the department. If the director causes a release of accruedinterest, the director shall deposit the released amount into the capital access loan programfund created in section 122.601 of the Revised Code. The director shall notrequire the release of that accruedinterest more than twice inafiscal year.

(B) When a participating financial institution makes acapitalaccess loan, it shall requirethe eligible business to payto the participating financial institution afee in an amount thatis not less than one and one-half per cent,and not more thanthree per cent, of the principal amount of theloan. Theparticipating financial institutionshall deposit the fee into itsprogram reserve account,and it also shall deposit into theaccount an amount of its own funds equal to the amount of the fee.Theparticipatingfinancial institution may recover from theeligible business all or part ofthe amount that the participatingfinancial institution isrequired to deposit into the accountunder this division in any manner agreedto by theparticipatingfinancial institution and the eligible business.

(C) For each capital access loan made by a participatingfinancial institution,the participating financial institutionshall certify to the director, withina period specified by thedirector, that theparticipating financial institution has madethe loan. The certification shall include the amount of the loan,theamount of the fee received from the eligible business, theamount of its ownfunds that theparticipating financialinstitution deposited into its programreserve account to reflectthat fee, and any other information specified bythe director.

(D) On Upon receipt of each of the first three certifications from a participating financial institution made under division (C) of this section and subject to section 122.602 of the Revised Code, the director shall disburse to the participating financial institution from the capital access loan program fund an amount equal to fifty per cent of the principal amount of the particular capital access loan for deposit into the participating financial institution's program reserve account. Thereafter, upon receipt of a certification from that participating financial institution made under division(C) ofthis section andsubject to section 122.602 of the Revised Code,the director shalldisburse to the participating financialinstitution from the capital access loan program fund an amountequal to ten percent of theprincipal amount ofthe particular capital access loan for depositinto the participatingfinancialinstitution's program reserveaccount. The disbursement of moneys from the fund to aparticipating financial institution does not require approval fromthe controlling board.

(E) If the amount in a program reserve account exceeds anamountequal to thirty-three per cent of a participating financialinstitution'soutstanding capital access loans, thedepartment maycause the withdrawal of the excess amount and the deposit ofthewithdrawn amount into the capital access loan program fund.

(F)(1) The department may cause the withdrawal of the totalamountin a participating financial institution's program reserveaccount if any of the followingapplies:

(a) The financial institution is no longer eligible toparticipatein the program.

(b) The participation agreement expires without renewal bythedepartment or the financial institution.

(d) The financial institution has not made a capitalaccessloan within the preceding twenty-four months.

(2) If the department causes a withdrawal under division(F)(1) of this section, the department shall deposit the withdrawnamount into the capital access loan program fund.

(A)"Financial institution" means any banking corporation,trust company, insurance company, savings and loan association,building and loan association, or corporation, partnership,federal lending agency, foundation, or other institution engagedin lending or investing funds for industrial or businesspurposes.

(B)"Project" means any real or personal propertyconnectedwith or being a part of an industrial, distribution,commercial,or research facility to be acquired, constructed,reconstructed,enlarged, improved, furnished, or equipped, or anycombinationthereof, with the aid provided under sections 122.71to 122.83 ofthe Revised Code, for industrial,commercial,distribution, andresearch development of the state.

(C)"Mortgage" means the lien imposed on a project by amortgage on real property, or by financing statements on personalproperty, or a combination of a mortgage and financing statementswhen a project consists of both real and personal property.

(D)"Mortgagor" means the principal user of a project ortheperson, corporation, partnership, or associationunconditionallyguaranteeing performance by the principal user ofits obligationsunder the mortgage.

(E)(1)"Minority business enterprise" means an individualwhois a United States citizen and owns and controls a business,or apartnership, corporation, or joint venture of any kind that isowned and controlled by United States citizens, which citizenorcitizens areresidents ofthis state and aremembers of one ofthe followingeconomicallydisadvantaged groups:Blacks or African Americans, AmericanIndians, Hispanics or Latinos, and~~Orientals~~ Asians.

(2)"Owned and controlled" means that at least fifty-onepercent of the business, including corporate stock if acorporation,is owned by persons who belong to one or more of thegroups setforth in division (E)(1) of this section, and thatthose ownershave control over the management andday-to-dayoperations of thebusiness and an interest in the capital,assets, and profits andlosses of the business proportionate totheir percentage ofownership. In order to qualify as a minoritybusiness enterprise,a business shall have been owned andcontrolled by those personsat least one year prior tobeingawarded a contract pursuant tothis section.

(F)"Community improvement corporation" means acorporationorganized under Chapter 1724. of the Revised Code.

(G)"Ohio development corporation" means a corporationorganized under Chapter 1726. of the Revised Code.

(H)"Minority contractors business assistance organization"means an entity engaged in the provision of management andtechnical business assistance to minority business enterpriseentrepreneurs.

(I)"Minority business supplier development council" means anonprofit organization established as an affiliate of the nationalminority supplier development council.

(J) "Regional economic development entity" means an entity that is under contract with the director of development to administer a loan program under this chapter in a particular area of the state.

Sec. 122.72. (A) There is hereby created the minoritydevelopment financing advisory board to assist in carryingout the programs created pursuant to sections 122.71 to ~~122.89~~ 122.90 of the RevisedCode.

(B) The board shall consist of ~~seven~~ ten members. The director of development or the director's designee shall be a voting member on the board. Seven members shall be appointed bythe governor with the advice and consent of the senate andselected because of their knowledge of and experience inindustrial, business, and commercial financing, suretyship,construction, and their understanding of the problems of minoritybusiness enterprises; one member also shall be a member of the senate and appointed by thepresident of the senate, and one member also shall be a member of the house ofrepresentatives andappointed by the speaker of the house of representatives. With respect to theboard, all of the following apply:

(1) Not more than four of the members of the board appointed by thegovernor shall be of the same political party.

(2) Each member shall hold office from the date of the member's appointmentuntil the end of the term for which the member was appointed.

(3) The terms of office for the seven members appointedby the governor shall be for seven years, commencing on the firstday of October and ending on thethirtieth day of September of the seventh year, except that of the originalseven members, three shall beappointed for three years and two shall be appointed for fiveyears.

(5) Any member appointed to fill a vacancy occurring prior to theexpiration of the term for which ~~his~~ the member's predecessorwas appointed shall hold office for the remainder of ~~his~~ thepredecessor's term.

(6) Any member shall continue in office subsequent to the expirationdate of ~~his~~ the member's term until ~~his~~ the member'ssuccessor takes office, or until a period of sixty days has elapsed, whicheveroccurs first.

(7) Before entering upon ~~his~~ official duties as a member ofthe board, each member shall take an oathas provided by Section 7 of Article XV, Ohio Constitution.

(8) The governor may, at any time, remove any member appointed by~~him~~ the governor pursuant to section 3.04 of the Revised Code.

(9) Notwithstanding section 101.26 of the Revised Code, members shallreceive their necessary and actual expenses while engaged in the business ofthe board and shall be paid at the per diem rate of step 1 of pay range 31 ofsection 124.15 of the Revised Code.

(10) ~~Five~~ Six members of theboard constitute a quorum and the affirmativevote of ~~five~~ six members is necessary for any action taken by theboard.

(11) In the event of the absence of a member appointed by thepresident of the senate or by the speaker of the house ofrepresentatives, either of the following persons may serve in the member'sabsence:

(a) The president of the senate or the speaker of the house ofrepresentatives, whoever appointed the absent member;

(b) A member of the senate or of the house of representativesof the same political party as the absent member, as designated by thepresident of the senate or the speaker of the house of representatives,whoever appointed the absent member.

(12) The board shall annually elect one of its members as ~~chairman~~chairperson and another as ~~vice-chairman~~vice-chairperson.

Sec. 122.73. (A) The minority development financing advisory board and thedirector of development are invested withthe powers and duties provided in sections 122.71 to~~122.89~~ 122.90 ofthe Revised Code, in order to promote the welfare of the peopleof the state by encouraging the establishment and expansion ofminority business enterprises,; to stabilize theeconomy,; to provide employment,; to assist in the developmentwithin the state of industrial, commercial, distribution, andresearch activities required for the people of the state, and fortheir gainful employment,; or otherwise to create or preserve jobsand employment opportunities, or improve the economic welfare ofthe people of the state. It is hereby determined that theaccomplishment of those purposes is essential so that the peopleof the state may maintain their present high standards of livingin comparison with the people of other states and so thatopportunities for employment and for favorable markets for theproducts of the state's natural resources, agriculture, andmanufacturing shall be improved ~~and~~. It further is determined that it is necessary for thestate to establish the programs authorized under sections 122.71 to ~~122.89~~ 122.90of the Revised Code to establish the minority development financingadvisory board, and to invest it and the director of development with thepowers and duties provided in sections 122.71 to ~~122.89~~ 122.90 of theRevised Code.

(B) The minority development financing advisory board shalldo all of the following:

(1) Make recommendations to the director as to applications for assistancepursuant to sections 122.71 to ~~122.89~~ 122.90 of the Revised Code. The board mayrevise its recommendations to reflect any changes in the proposed assistancemade by the director.

(2) Advise the director in the administration of sections 122.71 to ~~122.89~~ 122.90 ofthe Revised Code.

Sec. 122.74. (A)(1) The director of development shall do all of the following:

~~(1)~~(a) Receive applications for assistance under sections 122.71 to ~~122.89~~ 122.90 ofthe Revised Code, and, after processing but subject to division (A)(2) of this section, forward them to theminority development financing advisory board together with necessarysupporting information;

~~(2)~~(b) Receive the recommendations of the board and make a final determinationwhether to approve the application for assistance;

~~(3)~~(c) Receive recommendations from a regional economic development entity for loans made under section 122.76 of the Revised Code and make a final determination, notwithstanding divisions (A)(1) and (2) of this section, whether to approve the proposed loan;

(d) Transmit the director's determinations to approve assistance to thecontrolling board together with any information the controlling board requiresfor its review and decision as to whether to approve the assistance.

(2) The director is not required to submit any determination, data, terms, or any other application materials or information to the minority development financing advisory board when provision of the assistance has been recommended to the director by a regional economic development entity.

(1) Fix the rate of interest and charges to be made upon or with respectto moneys loaned or guaranteed by the director and the terms upon whichmortgages and lease rentals may be guaranteed and the rates of charges to bemade for them and make provisions for the operation of the fundsestablished by the director in accordance with this section and sections122.80 ~~and~~, 122.88, and 122.90 of the Revised Code;

(2) Loan and guarantee moneys from the fund established inaccordance withsection 122.80 of the Revised Code pursuant to and in compliance with sections122.71 to~~122.89~~ 122.90 of the Revised Code.

(3) Acquire in the name of the director any property ofany kind orcharacter in accordance with sections 122.71 to ~~122.89~~ 122.90 of the Revised Code, bypurchase,purchase at foreclosure, or exchange on such terms and in such manner as thedirector considers proper;

(4) Make and enter into all contracts and agreementsnecessary orincidental to the performance of the director's duties and the exercise of thedirector's powers under sections 122.71 to ~~122.89~~ 122.90 of the Revised Code;

(5) Maintain, protect, repair, improve, and insure anyproperty that thedirector has acquired and dispose of it by sale, exchange, or lease for theconsideration and on the terms and in the manner as the director considersproper, but the director shall not operate any such property as a businessexcept as the lessor of it;

(6)(a) When the cost of any contract for the maintenance,protection, repair, or improvement of any property held by the director, otherthan compensation for personal services, involves an expenditure of more thanfifty thousand dollars, the director shall make a written contract with thelowest responsive and responsible bidder in accordance with section 9.312 ofthe Revised Code after advertisement for not less than two consecutive weeksin a newspaper ofgeneral circulation in the county where such contract, or some substantialpart of it, is to be performed, and in such other publications as the directordetermines, which notice shall state the general character of the work and thegeneral character of the materials to be furnished, the place where plans andspecifications therefor may be examined, and the time and place of receivingbids.

(b) Each bid for a contract for the construction, demolition,alteration, repair, or reconstruction of an improvement shall contain the fullname of every person interested in it and meet the requirements of section153.54 of the Revised Code.

(c) Each bid for a contract, except as provided in division(B)(6)(b) of this section, shall contain the fullname ofevery person interested in it and shall be accompanied by bond or certifiedcheck on a solvent bank, in such amount as the director considers sufficient,that if the bid is accepted a contract will be entered into and theperformance of the proposal secured.

(e) A bond with good and sufficient surety, approved by thedirector, shall be required of every contractor awarded a contract except asprovided in division (B)(6)(b) of this section, inan amount equal to at least fifty per cent of the contract price, conditionedupon faithful performance of the contract.

(7) Employ or contract with financial consultants,appraisers, consultingengineers, superintendents, managers, construction and accounting experts,attorneys, and other employees and agents as are necessary in the director'sjudgment and fix their compensation;

(8) Receive and accept grants, gifts, and contributions of money,property, labor, and other things of value to be held, used, and applied onlyfor the purpose for which ~~such~~ the grants, gifts, and contributions are made, fromindividuals, private and public corporations, from the UnitedStates or any agency thereof, from the state or any agency thereof,and from any political subdivision of the state, and may agree to repay anycontribution of money or to return any property contributed or the valuethereof at such times, in ~~such~~ amounts, and on ~~such~~ terms and conditions,excluding the payment of interest, as the director determines at the time ~~such~~ thecontribution is made, and may evidence ~~such~~ the obligations by notes, bonds, orother written instruments;

(9) Establish with the treasurer of state the fundsprovided in sections122.80 and 122.88 of the Revised Code in addition to such funds as thedirector determinesare necessary or proper;

(10) Adopt rules under Chapter 119. of the Revised Codenecessary to implementsections 122.71 to ~~122.83~~ 122.90 of the Revised Code.

(11) Do all acts and things necessary or proper to carry out thepowersexpressly granted and the duties imposed in sections 122.71 to ~~122.89~~ 122.90 of theRevised Code.

(C)(1) All expenses and obligations incurred by the director incarrying out the director's powers and in exercising thedirector's duties under sections122.71 to ~~122.89~~ 122.90 of the Revised Code shall be payable solely from revenues orother receiptsor income of the director, from grants, gifts, and contributions, or fundsestablished in accordance with such sections. Such sections do not authorizethe director to incur indebtedness or to impose liability on the state or anypolitical subdivision of the state.

(2) Financial statements and other data submitted to the director by anycorporation, partnership, or person in connection with financial assistanceprovided under sections 122.71 to ~~122.89~~ 122.90 of the Revised Code, or anyinformation taken from such statements or data for any purpose, shall not beopen to public inspection.

Sec. 122.75. The director of development shall, for theminority business development loan program ~~and~~, the minoritybusiness bonding program, and the minority business bond guarantee program under sections 122.87 to ~~122.89~~ 122.90 ofthe Revised Code, do all of the following:

(B) Adopt bylaws and rules for the regulation of thebusiness of the minority development financing advisory board;

(C) Receive and accept grants, gifts, and contributions ofmoney, property, labor, and other things of value, to be held,used, and applied only for the purpose for which the grants,gifts, and contributions are made, from individuals, private andpublic corporations, the United States or any agency of theUnited States, the state or any agency of the state, andany political subdivision of the state. The director may agree to repay anycontribution of moneyor to return any property contributed or its value at such times,in ~~such~~ amounts, and on ~~such~~ terms and conditions, excluding thepayment of interest, as the director determines at the time thecontribution is made. The director may evidence the obligationsby written contracts, subject to section 122.76 of the RevisedCode; provided, that the director shall not thereby incurindebtedness of or impose liability upon the state or anypolitical subdivision.

(D) Establish funds with the treasurer of state inaddition to the minority business bonding fund created undersection 122.88 of the Revised Code;

(E) Invest money in the funds the director establishes pursuantto division (D) of this section that is in excess of current needs,in notes, bonds, or other obligations that are direct obligationsof or are guaranteed by the United States, or in certificates ofdeposit or withdrawable accounts of banks, trust companies, ~~and~~ orsavings and loan associations organized under the laws of this state or theUnited States, and may creditthe income or sell the investments at the director'sdiscretion;

(F) Acquire any property of any kind or character inaccordance with sections 122.71 to 122.83 of the RevisedCode, by purchase, purchase at foreclosure, or exchange on terms and in amanner the director considers proper;

(G)(1) Maintain, protect, repair, improve, and insure anyproperty the director has acquired and dispose of it by sale,exchange, orlease for the consideration and on terms and in a manner thedirector considers proper. The director may not operate any property as abusiness except as a lessor of the property. When the cost of anycontract for the maintenance, protection, repair, or improvementof any property of the advisory board connected with the minoritybusiness development loan program, other than compensation forpersonal services, involves an expenditure of more than onethousand dollars, the director shall enter into a writtencontract with the lowest and best bidder after advertisement fornot less than four consecutive weeks in a newspaper of generalcirculation in the county where the contract, or somesubstantial part of it, is to be performed, and in otherpublications as the director determines. The notice shall statethe general character of the work and the general character ofthe materials to be furnished, the place where plans andspecifications for the work and materials may be examined, and the time andplace of receiving bids.

(2) Each bid for a contract for the construction,demolition, alteration, repair, or reconstruction of animprovement shall contain the full name of every personinterested in it and meet the requirements of section 153.54 ofthe Revised Code.

(3) Each bid for a contract, except as provided in division(G)(2) of this section, shall contain the full name of everyperson interested in it and shall be accompanied by a bond orcertified check on a solvent bank, in the amount of ten per centof the bid, that if the bid is accepted a contract will beentered into and the performance of its proposal secured. Thedirector may reject any or all bids. A bond with good andsufficient surety, approved by the director, shall be required ofall contractors in an amount equal to at least one hundred percent of the contract price, conditioned upon faithful performanceof the contract.

(H) Expend money appropriated to the department ofdevelopment by the general assembly for the purposes of sections122.71 to 122.83 and 122.87 to ~~122.89~~ 122.90 of the Revised Code;

(I) Do all acts and things necessary or proper to carryout the powers expressly granted and the duties imposed insections 122.71 to 122.83 and 122.87 to ~~122.89~~ 122.90 of the RevisedCode.

Sec. 122.751. The minority development financingadvisory board or a regional economic development entity shall onlyconsider an application for a loan from any applicant after a certification bythe equal employment opportunity coordinator of the department ofadministrative services under division (B)(1) of section 123.151 of theRevised Code that the applicant is a minority business enterprise, or after a certification by the minority business supplier development council that the applicant is a minority business, and that theapplicant satisfies all criteria regarding eligibility for assistance pursuantto section 122.76 of the Revised Code.

Sec. 122.76. (A) The director of development, withcontrolling boardapproval, may lend funds to minority businessenterprises and to communityimprovement corporations, Ohiodevelopment corporations, minority contractors business assistanceorganizations, and minority business supplier developmentcouncils for the purpose ofloaning funds to minority businessenterprises and for thepurpose of procuring or improving real orpersonal property, orboth, for the establishment, location, orexpansion ofindustrial, distribution, commercial, or researchfacilities inthe state, if the director determines, in thedirector'ssole discretion, that all of the following apply:

(1) The project is economically sound and will benefit thepeople of the state by increasing opportunities for employment,bystrengthening the economy of the state, or expanding minoritybusiness enterprises.

(2) The proposed minority business enterprise borrower isunable to finance the proposed project through ordinary financialchannels at comparable terms.

(3) The value of the project is or, upon completion, willbe at least equal to the total amount of the moneyexpended in theprocurement or improvement of the project, and one or morefinancial institutions or othergovernmental entities have loanednot less than thirty per centof that amount.

(4) The amount to be loaned by the director will notexceedsixty per cent of the total amount expended in theprocurement orimprovement of the project.

(5) The amount to be loaned by the director will beadequately secured by a first or second mortgage upon theprojector by mortgages, leases, liens, assignments, or pledgeson or ofother property or contracts as the director requires,andsuchmortgage will not be subordinate to any other liens ormortgagesexcept the liens securing loans or investments made byfinancialinstitutionsreferred toin division (A)(3) of thissection, andthe liens securing loans previouslymade by anyfinancialinstitution in connection with the procurement orexpansion of allor part of a project.

(B) Any proposed minority business enterpriseborrowersubmitting an application for assistance under this section shallnothave defaulted on a previous loan from the director, and nofull or limitedpartner, major shareholder, or holder of anequity interest ofthe proposed minority business enterpriseborrower shall have defaultedon a loan from the director.

(C) The proposed minority business enterprise borrowershalldemonstrate to the satisfaction of the director that it isable tosuccessfully compete in the private sector if it obtainsthenecessary financial, technical, or managerial support andthatsupport is available through the director, the minoritybusinessdevelopment office of the department of development, orotheridentified and acceptable sources. In determining whetheraminority business enterprise borrower will be able tosuccessfullycompete, the director may giveconsideration to such factors asthe successful completion of orparticipation in courses of study,recognized by the board ofregents as providing financial,technical, or managerial skillsrelated to the operation of thebusiness, by the economicallydisadvantaged individual, owner, orpartner, and the priorsuccess of the individual, owner, orpartner in personal, career,or business activities, as well as toother factors identified bythe director.

(D) The director shall not lend funds for the purpose ofprocuring or improving motor vehicles~~, power-driven vehicles,officeequipment, raw materials, smalltools, supplies,inventories,~~ or accounts receivable.

Sec. 122.77. (A) The director of development with controlling board approvalmay make loan guarantees to small businesses and corporations for the purposeof guaranteeing loans made to small businesses by financial institutions forthe purpose of procuring or improving real or personal property, or both, forthe establishment, location, or expansion of industrial, distribution,commercial, or research facilities in the state, if the director determines,in ~~his~~ the director's sole discretion, that all of the followingapply:

(1) The project is economically sound and will benefit the people of thestate by increasing opportunities for employment, by strengthening the economyof the state, or expanding minority business enterprises;.

(2) The proposed small business borrower is unable to finance the proposedproject through ordinary financial channels at comparable terms;.

(3) The value of the project is, or upon completion of it will be, atleast equal to the total amount of the money expended in the procurement orimprovement of the project and of which amount one or more financialinstitutions or other governmental entities have loaned not less than thirtyper cent;.

(4) The amount to be guaranteed by the director will not exceed ~~fifty~~ eighty percent of the total amount expended in the procurement or improvement of theproject;.

(5) The amount to be guaranteed by the director will be adequately securedby a first or second mortgage upon the project, or by mortgages, leases,liens, assignments, or pledges on or of other property or contracts as thedirector shall require and that such mortgage will not be subordinate to anyother liens or mortgages except the liens securing loans or investments madeby financial institutions referred to in division (A)(3) of thissection, and the liens securing loans previously made by any financialinstitution in connection with the procurement or expansion of all or part ofa project.

(B) The proposed small business borrower shall not have defaultedon a previous loan or guarantee from the director, and no full or limitedpartner, or major shareholder, or holder of any equity interest of theproposed minority business enterprise borrower shall have defaulted on a loanor guarantee from the director.

(C) The proposed small business borrower shall demonstrate to thesatisfaction of the director that it is able to successfully compete in theprivate sector if it obtains the necessary financial, technical, or managerialsupport and that support is available through the director, the minoritybusiness development office of the department of development, or otheridentified and acceptable sources. In determining whether a small businessborrower will be able to successfully compete, the director may giveconsideration to such factors as the successful completion of or participationin courses of study, recognized by the board of regents as providingfinancial, technical, or managerial skills related to the operation of thebusiness, by the economically disadvantaged individual, owner, or partner, andthe prior success of the individual, owner, or partner in personal, career, orbusiness activities, as well as to other factors identified by the director.

(D) The director shall not guarantee funds for the purpose ofprocuring or improving motor vehicles~~, power driven vehicles, officeequipment, raw materials, small tools, supplies, inventories,~~ or accountsreceivable.

Sec. 122.78. Fees, charges, rates ofinterest, timesof payment of interest and principal, and other terms,conditions, and provisions of the loans and guarantees made by the director ofdevelopment pursuant to sections 122.71 to ~~122.89~~ 122.90 of the Revised Code shall besuch as the director determines to be appropriate and infurtherance of thepurpose for which the loans and guarantees are made, but the mortgage liensecuringany money loaned or guaranteed by the director may be subordinate tothe mortgagelien securing any money loaned or invested by a financial institution, butshall be superior to that securing any money loaned or expendedby any other corporation or person. The funds used in makingthese loans or guarantees shall be disbursed upon order of the director.

Sec. 122.79. The exercise of the powers granted bysections 122.71 to ~~122.89~~ 122.90of the Revised Code, will be in all respects for the benefit of the people ofthe state, for the increase of their commerce and prosperity, for the increaseand expansion of minority business enterprises, and for the improvement ofconditions of employment, and will constitute the performance of essentialgovernmental functions; therefore, the director of development shall not berequired to pay any taxes upon any property or assets held by ~~him~~the director, or upon any property acquired or used by ~~him~~the director under sections 122.71 to ~~122.89~~ 122.90 of the Revised Code, orupon the income from it, provided that this exemption shall not apply to anyproperty held by the director while it is in the possession of a privateperson, partnership, or corporation and used for privatepurposes for profit, in which case such tax liability shall accrueto ~~such~~ the private person, partnership, or corporation.

Sec. 122.82. All moneys, funds, properties, and assets acquired by thedirector of development shall be held by ~~him~~ the director intrust to carry out ~~his~~ the director's powersand duties, shall be used as provided in sections 122.71to ~~122.89~~ 122.90 oftheRevised Code, and shall at no time be part of other public funds.

Sec. 122.83. Any person who intentionally misrepresents that person's self asowning, controlling, operating, or participating in a minority businessenterprise for the purpose of obtaining funds, contracts, subcontracts,services, or any other benefits under sections 122.71 to 122.85 or 122.87 to~~122.89~~ 122.90 of the Revised Code is guilty of theft by deception, pursuant tosection 2913.02 of the Revised Code.

(A) "Commercial or industrial areas" means areas ~~established by a state, county, municipal, or other~~ zoned either commercial or industrial by the local zoning authority ~~as being most appropriate for business, commerce, industry, or trade~~ or an area not zoned ~~by state or local law, regulation, or ordinance~~, but in which there is located one or more commercial or industrial activities.

(1) A county designated as being in the "Appalachian region" under the "Appalachian Regional Development Act of 1965," 79 Stat. 5, 40 U.S.C. App. 403;

(2) A county that is a "distressed area" as defined in section 122.16 of the Revised Code;

(3) A county that within the previous calendar year has had a population of less than one hundred thousand according to the most recent federal decennial census and in which three hundred fifty or more residents of the county were, during the most recently completed calendar year, permanently or temporarily terminated from a private sector employment position for any reason not reflecting discredit on the employee;

(4) A county that has a population of one hundred thousand or more according to the most recent federal decennial census and in which one thousand or more residents of the county were, during the most recently completed calendar year, permanently or temporarily terminated from a private sector employment position for any reason not reflecting discredit on the employee job loss numbering two hundred or more of which one hundred or more are manufacturing-related as reported in the notices prepared by the department of job and family services pursuant to the "Worker Adjustment and Retraining Notification Act," 102 Stat. 890 (1988), 29 U.S.C. 2101 et seq., as amended.

Sec. 122.951. (A) If the director of development determines that a grant from the industrial site improvement fund ~~will~~ may create new jobs or preserve existing jobs and employment opportunities in an eligible county, the director may grant up to ~~one million~~ five hundred thousand dollars from the fund to the eligible county for the purpose of acquiring commercial or industrial land or buildings and making improvements to commercial or industrial areas within the eligible county, including, but not limited to:

(1) Expanding, remodeling, renovating, and modernizing buildings, structures, and other improvements;

(2) Remediating environmentally contaminated property on which hazardous substances exist under conditions that have caused or would cause the property to be identified as contaminated by the Ohio or United States environmental protection agency; and

(3) Infrastructure improvements, including, but not limited to, site preparation, including building demolition and removal; streets, roads, bridges, and traffic control devices; parking lots and facilities; water and sewer lines and treatment plants; gas, electric, and telecommunications, including broadband, hook-ups; and water and railway access improvements.

A grant awarded under this section shall provide not more than seventy-five per cent of the estimated total cost of the project for which an application is submitted under this section. In addition, not more than ten per cent of the amount of the grant shall be used to pay the costs of professional services related to the project.

(B) An eligible county may apply to the director for a grant under this section in the form and manner prescribed by the director. The eligible county shall include on the application all information required by the director. The application shall require the eligible county to provide a detailed description of how the eligible county would use a grant to improve commercial or industrial areas within the eligible county, and to specify how a grant will lead to the creation of new jobs or the preservation of existing jobs and employment opportunities in the eligible county. The eligible county shall specify in the application the amount of the grant for which the eligible county is applying.

(C) An eligible county that receives a grant under this section is not eligible for any additional grants from the industrial site improvement fund in the fiscal year in which the grant is received and in the subsequent fiscal year.

(D) An eligible county may designate a port authority, community improvement corporation as defined in section 122.71 of the Revised Code, or other economic development entity that is located in the county to apply for a grant under this section. If a port authority, community improvement corporation, or other economic development entity is so designated, references to an eligible county in this section include references to the authority, corporation, or other entity.

Sec. 123.01. (A) The department of administrativeservices, in addition to those powers enumerated in Chapters 124.and 125. of the Revised Code and provided elsewhere by law,shall exercise the following powers:

(1) To prepare, or contract to be prepared, by licensedengineers or architects, surveys, general and detailed plans,specifications, bills of materials, and estimates of cost for anyprojects, improvements, or public buildings to be constructed bystate agencies that may be authorized by legislativeappropriations or any other funds made available therefor,provided that the construction of the projects, improvements, orpublic buildings is a statutory duty of the department. Thissection does not require the independent employment of anarchitect or engineer as provided by section 153.01 of theRevised Code in the cases to which that section applies noraffect or alter the existing powers of the director oftransportation.

(2) To have general supervision over the construction ofany projects, improvements, or public buildings constructed for astate agency and over the inspection of materials previous totheir incorporation into those projects, improvements, orbuildings;

(3) To make contracts for and supervise the constructionof any projects and improvements or the construction and repairof buildings under the control of a state agency, exceptcontracts for the repair of buildings under the management andcontrol of the departments of public safety, job andfamily services,mental health, mental retardation and developmental disabilities,rehabilitation and correction, and youth services, the bureau ofworkers' compensation, therehabilitationservices commission, and boards of trustees of educational andbenevolent institutions and except contracts for the construction of projects that do not require the issuance of a building permit or the issuance of a certificate of occupancy and that are necessary to remediate conditions at a hazardous waste facility, solid waste facility, or other location at which the director of environmental protection has reason to believe there is a substantial threat to public health or safety or the environment. These contracts shall be made andentered into by the directors of public safety, job andfamily services,mental health, mental retardation and developmental disabilities,rehabilitation and correction, and youth services, theadministrator of workers' compensation, the rehabilitation services commission,~~and~~ theboards oftrustees of such institutions, and the director of environmental protection, respectively. All such contractsmay be in whole or in part on unit price basis of maximumestimated cost, with payment computed and made upon actualquantities or units.

(4) To prepare and suggest comprehensive plans for thedevelopment of grounds and buildings under the control of a stateagency;

(5) To acquire, by purchase, gift, devise, lease, orgrant, all real estate required by a state agency, in theexercise of which power the department may exercise the power ofeminent domain, in the manner provided by sections 163.01 to163.22 of the Revised Code;

(6) To make and provide all plans, specifications, andmodels for the construction and perfection of all systems ofsewerage, drainage, and plumbing for the state in connection withbuildings and grounds under the control of a state agency;

(7) To erect, supervise, and maintain all public monumentsand memorials erected by the state, except where the supervisionand maintenance is otherwise provided by law;

(9) To lease or grant easements or licenses forunproductive and unused lands or other property under the controlof a state agency. Such leases, easements, or licenses shall begranted for a period not to exceed fifteen years and shall beexecuted for the state by the director of administrative servicesand the governor and shall be approved as to form by the attorneygeneral, provided that leases, easements, or licenses may begranted to any county, township, municipal corporation, portauthority, water or sewer district, school district, librarydistrict, health district, park district, soil and waterconservation district, conservancy district, or other politicalsubdivision or taxing district, or any agency of the UnitedStates government, for the exclusive use of that agency,political subdivision, or taxing district, without any right ofsublease or assignment, for a period not to exceed fifteen years,and provided that the director shall grant leases, easements, orlicenses of university land for periods not to exceed twenty-fiveyears for purposes approved by the respective university's boardof trustees wherein the uses are compatible with the uses andneeds of the university and may grant leases of university landfor periods not to exceed forty years for purposes approved bythe respective university's board of trustees pursuant to section123.77 of the Revised Code.

(11) To have general supervision and care of thestorerooms, offices, and buildings leased for the use of a stateagency;

(13) To assign and group together state offices in anycity in the state and to establish, in cooperation with the stateagencies involved, rules governing space requirements for officeor storage use;

(14) To lease for a period not to exceed forty years,pursuant to a contract providing for the construction thereofunder a lease-purchase plan, buildings, structures, and otherimprovements for any public purpose, and, in conjunctiontherewith, to grant leases, easements, or licenses for landsunder the control of a state agency for a period not to exceedforty years. The lease-purchase plan shall provide that at theend of the lease period, the buildings, structures, and relatedimprovements, together with the land on which they are situated,shall become the property of the state without cost.

(a) Whenever any building, structure, or other improvementis to be so leased by a state agency, the department shall retaineither basic plans, specifications, bills of materials, andestimates of cost with sufficient detail to afford bidders allneeded information or, alternatively, all of the following plans,details, bills of materials, and specifications:

(i) Full and accurate plans suitable for the use ofmechanics and other builders in the improvement;

(ii) Details to scale and full sized, so drawn andrepresented as to be easily understood;

(iii) Accurate bills showing the exact quantity ofdifferent kinds of material necessary to the construction;

(iv) Definite and complete specifications of the work tobe performed, together with such directions as will enable acompetent mechanic or other builder to carry them out and affordbidders all needed information;

(v) A full and accurate estimate of each item of expenseand of the aggregate cost thereof.

(b) The department shall give public notice, in suchnewspaper, in such form, and with such phraseology as thedirector of administrative services prescribes, published onceeach week for four consecutive weeks, of the time when and placewhere bids will be received for entering into an agreement tolease to a state agency a building, structure, or otherimprovement. The last publication shall be at least eight dayspreceding the day for opening the bids. The bids shall containthe terms upon which the builder would propose to lease thebuilding, structure, or other improvement to the state agency.The form of the bid approved by the department shall be used, anda bid is invalid and shall not be considered unless that form isused without change, alteration, or addition. Before submittingbids pursuant to this section, any builder shall comply withChapter 153. of the Revised Code.

(c) On the day and at the place named for receiving bidsfor entering into lease agreements with a state agency, thedirector of administrative services shall open the bids and shallpublicly proceed immediately to tabulate the bids upon duplicatesheets. No lease agreement shall be entered into until thebureau of workers' compensation has certified that the person tobe awarded the lease agreement has complied with Chapter 4123. ofthe Revised Code, until, if the builder submitting the lowest andbest bid is a foreign corporation, the secretary of state hascertified that the corporation is authorized to do business inthis state, until, if the builder submitting the lowest and bestbid is a person nonresident of this state, the person has filedwith the secretary of state a power of attorney designating thesecretary of state as its agent for the purpose of acceptingservice of summons in any action brought under Chapter 4123. ofthe Revised Code, and until the agreement is submitted to theattorney general and the attorney general's approval is certifiedthereon. Withinthirty days after the day on which the bids are received, thedepartment shall investigate the bids received and shalldetermine that the bureau and the secretary of state have madethe certifications required by this section of the builder whohas submitted the lowest and best bid. Within ten days of thecompletion of the investigation of the bids, the department shallaward the lease agreement to the builder who has submitted thelowest and best bid and who has been certified by the bureau andsecretary of state as required by this section. If bidding forthe lease agreement has been conducted upon the basis of basicplans, specifications, bills of materials, and estimates ofcosts, upon the award to the builder the department, or thebuilder with the approval of the department, shall appoint anarchitect or engineer licensed in this state to prepare suchfurther detailed plans, specifications, and bills of materials asare required to construct the building, structure, orimprovement. The department shall adopt such rules as arenecessary to give effect to this section. The department mayreject any bid. Where there is reason to believe there iscollusion or combination among bidders, the bids of thoseconcerned therein shall be rejected.

(15) To acquire by purchase, gift, devise, or grant and totransfer, lease, or otherwise dispose of all real propertyrequired to assist in the development of a conversion facility asdefined in section 5709.30 of the Revised Code as that section existed before its repeal by Amended Substitute House Bill 95 of the 125th general assembly;

(16) To lease for a period not to exceed forty years,notwithstanding any other division of this section, thestate-owned property located at 408-450 East Town Street,Columbus, Ohio, formerly the state school for the deaf, to adeveloper in accordance with this section. "Developer," as usedin this section, has the same meaning as in section 123.77 of theRevised Code.

Such a lease shall be for the purpose of development of theland for use by senior citizens by constructing, altering,renovating, repairing, expanding, and improving the site as itexisted on June 25, 1982. A developer desiring to lease the landshall prepare for submission to the department a plan fordevelopment. Plans shall include provisions for roads, sewers,water lines, waste disposal, water supply, and similar matters tomeet the requirements of state and local laws. The plans shallalso include provision for protection of the property byinsurance or otherwise, and plans for financing the development,and shall set forth details of the developer's financialresponsibility.

The department may employ, as employees or consultants,persons needed to assist in reviewing the development plans.Those persons may include attorneys, financial experts,engineers, and other necessary experts. The department shallreview the development plans and may enter into a lease if itfinds all of the following:

(a) The best interests of the state will be promoted byentering into a lease with the developer;

(c) The developer has established the developer's financialresponsibility and satisfactory plans for financing thedevelopment.

The lease shall contain a provision that construction orrenovation of the buildings, roads, structures, and othernecessary facilities shall begin within one year after the dateof the lease and shall proceed according to a schedule agreed tobetween the department and the developer or the lease will beterminated. The lease shall contain such conditions andstipulations as the director considers necessary to preserve thebest interest of the state. Moneys received by the statepursuant to this lease shall be paid into the general revenuefund. The lease shall provide that at the end of the leaseperiod the buildings, structures, and related improvements shallbecome the property of the state without cost.

(17) To lease to any person any tract of land owned by thestate and under the control of the department, or any part ofsuch a tract, for the purpose of drilling for or the pooling ofoil or gas. Such a lease shall be granted for a period notexceeding forty years, with the full power to contract for,determine the conditions governing, and specify the amount thestate shall receive for the purposes specified in the lease, andshall be prepared as in other cases.

(18) To manage the use of space owned and controlled by the department, including space in property under the jurisdiction of the Ohio building authority, by doing all of the following:

(a) Biennially implementing, by state agency location, a census of agency employees assigned space;

(i) Requiring each state agency to categorize the use of space allotted to the agency between office space, common areas, storage space, and other uses, and to report its findings to the department;

(ii) Creating and updating a master space utilization plan for all space allotted to state agencies. The plan shall incorporate space utilization metrics.

(iii) Conducting a cost-benefit analysis to determine the effectiveness of state-owned buildings;

(iv) Assessing the alternatives associated with consolidating the commercial leases for buildings located in Columbus.

(c) Commissioning a comprehensive space utilization and capacity study in order to determine the feasibility of consolidating existing commercially leased space used by state agencies into a new state-owned facility.

(B) This section and section 125.02 of the Revised Codeshall not interfere with any of the following:

(1) The power of the adjutant general to purchase militarysupplies, or with the custody of the adjutant general of propertyleased, purchased, or constructed by the state and used formilitary purposes, or with the functions of the adjutant generalas director of state armories;

(2) The power of the director of transportation inacquiring rights-of-way for the state highway system, or theleasing of lands for division or resident district offices, orthe leasing of lands or buildings required in the maintenanceoperations of the department of transportation, or the purchase ofreal propertyfor garage sites or division or resident district offices, or inpreparing plans and specifications for and constructing suchbuildings as the director may require in the administration ofthe department;

(3) The power of the director of public safety and theregistrar of motor vehicles to purchase or lease real propertyand buildings to be used solely as locations to which a deputyregistrar is assigned pursuant to division (B) of section4507.011 of the Revised Code and from which the deputy registrar isto conduct the deputy registrar's business, the power of the director ofpublic safety to purchase or lease real property and buildings to be used aslocations for division or district offices as required in the maintenance ofoperations of the department of public safety, and the power of thesuperintendent of the statehighway patrol in the purchase or leasing of real property andbuildings needed by the patrol, to negotiate the sale of real property ownedby the patrol, to rent or lease real property owned or leased by the patrol,and to make or cause to be made repairs to all property owned or under thecontrol of the patrol;

(4) The power of the division of liquor control in theleasing or purchasing of retail outlets and warehouse facilitiesfor the use of the division;

(5) The power of the director of development to enter into leasesof real property, buildings, and office space to be used solely as locationsfor the state's foreign offices to carry out the purposes of section 122.05of the Revised Code;

(6) The power of the director of environmental protection to enter into environmental covenants, to grant and accept easements, or to sell property pursuant to division (G) of section 3745.01 of the Revised Code.

(C) Purchases for, and the custody and repair of,buildings under the management and control of the capitol squarereview and advisory board, the rehabilitation services commission, the bureau ofworkers' compensation, or thedepartments of public safety,job and family services, mental health, mental retardationanddevelopmental disabilities, and rehabilitation and correction,and buildings of educational and benevolent institutions underthe management and control of boards of trustees, are not subjectto the control and jurisdiction of the department ofadministrative services.

(D) Any instrument by which real property is acquired pursuant tothis sectionshall identify the agency of the state that has the use and benefit of thereal property as specified in section 5301.012 of the Revised Code.

Sec. 123.152. (A) As used in this section, "EDGE business enterprise" means a sole proprietorship, association, partnership, corporation, limited liability corporation, or joint venture certified as a participant in the encouraging diversity, growth, and equity program by the director of administrative services under this section of the Revised Code.

(B) The director of administrative services shall establish a business assistance program known as the encouraging diversity, growth, and equity program and shall adopt rules in accordance with Chapter 119. of the Revised Code to administer the program ~~and~~ that do all of the following:

(1) Establish procedures by which a sole proprietorship, association, partnership, corporation, limited liability corporation, or joint venture may apply for certification as an EDGE business enterprise;

(2) ~~Establish~~ Except as provided in division (B)(14) of this section, establish agency procurement goals for contracting with EDGE business enterprises in the award of contracts under Chapters 123., 125., and 153. of the Revised Code based on the availability of eligible program participants by region or geographic area, as determined by the director, and by standard industrial code or equivalent code classification.

(a) Goals established under division (B)(2) of this section shall be based on a percentage level of participation and a percentage of contractor availability.

(b) Goals established under division (B)(2) of this section shall be applied at the contract level, relative to an overall dollar goal for each state agency, in accordance with the following certification categories: construction, architecture, and engineering; professional services; goods and services; and information technology services.

(3) Establish a system of certifying EDGE business enterprises based on a requirement that the business owner or owners show both social and economic disadvantage based on the following, as determined to be sufficient by the director:

(a) Relative wealth of the business seeking certification as well as the personal wealth of the owner or owners of the business;

(i) A rebuttable presumption when the business owner or owners demonstrate membership in a racial minority group or show personal disadvantage due to color, ethnic origin, gender, physical disability, long-term residence in an environment isolated from the mainstream of American society, location in an area of high unemployment;

(ii) Some other demonstration of personal disadvantage not common to other small businesses;

(c) Economic disadvantage based on economic and business size thresholds and eligibility criteria designed to stimulate economic development through contract awards to businesses located in qualified census tracts.

(4) Establish standards to determine when an EDGE business enterprise no longer qualifies for EDGE business enterprise certification;

(5) Develop a process for evaluating and adjusting goals established by this section to determine what adjustments are necessary to achieve participation goals established by the director;

(6) Establish a point system or comparable system to evaluate bid proposals to encourage EDGE business enterprises to participate in the procurement of professional design and information technology services;

(7) Establish a system to track data and analyze each certification category established under division (B)(2)(b) of this section;

(8) Establish a process to mediate complaints and to review EDGE business enterprise certification appeals;

(9) Implement an outreach program to educate potential participants about the encouraging diversity, growth, and equity program;

(10) Establish a system to assist state agencies in identifying and utilizing EDGE business enterprises in their contracting processes;

(11) Implement a system of self-reporting by EDGE business enterprises as well as an on-site inspection process to validate the qualifications of an EDGE business enterprise;

(12) Establish a waiver mechanism to waive program goals or participation requirements for those companies that, despite their best-documented efforts, are unable to contract with certified EDGE business enterprises;

(13) Establish a process for monitoring overall program compliance in which equal employment opportunity officers primarily are responsible for monitoring their respective agencies;

(14) Establish guidelines for state universities as defined in section 3345.011 of the Revised Code and the Ohio school facilities commission created in section 3318.30 of the Revised Code for awarding contracts pursuant to Chapters 153., 3318., and 3345. of the Revised Code to allow the universities and commission to establish agency procurement goals for contracting with EDGE business enterprises.

(C) ~~Not later than December 31, 2003, the director of administrative services shall prepare a detailed report to the governor outlining and evaluating the progress made in implementing the~~ Business and personal financial information and trade secrets submitted by encouraging diversity, growth, and equity program applicants to the director pursuant to this section are not public records for purposes of section 149.43 of the Revised Code, unless the director presents the financial information or trade secrets at a public hearing or public proceeding regarding the applicant's eligibility to participate in the program.

Sec. 123.17. (A) As used in this section, "institution of higher education" means a state university or college, as defined in section 3345.12 of the Revised Code, or a state community college.

(B) ~~The~~ Not later than December 30, 2005, the state architect shall establish a local administration competency certification program to certify institutions of higher education to administer capital facilities projects pursuant to section 3345.51 of the Revised Code without the supervision, control, or approval of the department of administrative services. The program shall offer instruction in the administration of capital facilities projects for employees of institutions of higher education who are responsible for such administration and who are selected by their employing institutions to participate in the program.

(C) The program shall provide instruction about the provisions of Chapters 9., 123., and 153. of the Revised Code and any rules or policies adopted by the department regarding the planning, design, and construction of capital facilities, including all of the following:

(D) The state architect shall award local administration competency certification to any institution of higher education if all of the following apply:

(1) The institution applied for certification on a form and in a manner prescribed by the state architect.

(2) The state architect determines that a sufficient number of the institution's employees, representing a sufficient number of employee classifications, responsible for the administration of capital facilities projects ~~has~~ have successfully completed the certification program to ensure that any capital facilities project undertaken by the institution will be administered successfully and in accordance with all provisions of the Revised Code, and the board of trustees of the institution provides written assurance to the state architect that the institution will select new employees to participate in the certification program as necessary to compensate for employee turnover.

(3) The state architect determines that the employees of the institution enrolled in the program demonstrate successful completion of the competency certification training and a satisfactory level of knowledge of and competency in the requirements for administering capital facilities projects.

(4) The institution pays the fee prescribed by division ~~(E)~~(F) of this section.

(5) The board of trustees of the institution provides written assurance to the state architect that the institution will conduct biennial audits of the institution's administration of capital facilities projects in accordance with division (C) of section 3345.51 of the Revised Code.

(6) The board of trustees of the institution agrees in writing to indemnify and hold harmless the state and the department for any claim of injury, loss, or damage that results from the institution's administration of a capital facilities project.

(E) Local administration competency certification granted under this section shall remain in effect for as long as the state architect determines that both of the following apply:

(1) The institution of higher education maintains a sufficient number of employees responsible for the administration of capital facilities projects who have successfully completed the certification program and have demonstrated a satisfactory level of knowledge of and competency in the requirements for administering capital facilities projects;

(2) The institution is performing the biennial audits prescribed in division (C) of section 3345.51 of the Revised Code.

If the state architect determines that an institution of higher education has failed to comply with the conditions of division (E)(1) or (2) of this section, the state architect shall revoke the institution's certification and shall notify the board of trustees of the institution in writing of the revocation.

(F) The state architect shall establish, subject to the approval of the director of budget and management, the amount of the fee required to be paid by any institution of higher education that seeks certification under this section. The amount of the fees shall be set to cover the costs to implement this section, including the costs for materials and the competency certification training sessions. Any fees received under this section shall be paid into the state treasury to the credit of the state architect's fund established under section 123.10 of the Revised Code.

~~(F)~~(G) Nothing in this section shall prohibit an institution that administers a capital facilities project under section 3345.51 of the Revised Code from requesting guidance or other services from the department of administrative services.

Sec. 124.07. (A) The director of administrative services shallappoint ~~such~~ examiners, inspectors, clerks, and other assistantsas ~~are~~ necessary to carry out sections 124.01 to 124.64 of theRevised Code. The director may designate persons in or out ofthe official service of the state to serve as examiners orassistants under the director's direction. An examiner orassistant shallreceive ~~such~~ the compensation for each day actually and necessarilyspent in the discharge of duties as an examineror assistant ~~asis determined by~~ that the director determines; provided, that, if ~~any such~~ theexaminer or assistant is in the official service of the state orany political subdivision of the state, it shall be apart of theexaminer's or assistant's official duties to render ~~such~~ those services inconnection with ~~such~~ an examination without extra compensation.

(B) Each state agency and each state-supported college ~~and~~ oruniversity shall pay the cost of the services and facilitiesfurnished to it by the department of administrative services thatare necessary to provide and maintain payroll services asprescribed in section 125.21 of the Revised Code and state meritstandards as prescribed in sections 124.01 to 124.64 of theRevised Code for the agency, or state-supported college, or university. If amunicipal corporation chooses to use the services and facilitiesfurnished by the department that are necessary to provide andmaintain the standards so prescribed, the municipal corporationshall pay the cost of the services and facilities that thedepartment furnishes to it. ~~Such~~The charges against a state agency, astate-supported college or university, or a municipal corporation shall becomputed on a reasonable cost basis in accordance with proceduresprescribed by the director of budget and management. Any moneysthe department ~~of administrative services~~ receives from ~~any such~~ astate agency, a state-supported college, or university, or a municipal corporation ~~which~~ under this division thatare in excess of the amount necessary to pay the cost offurnishing ~~such~~ the department's services and facilities during any fiscal yearshall be either refunded to or credited for the ensuing fiscalyear to the state agency, the state-supported college, or university, or the municipalcorporation ~~that contributed the excess moneys~~.

(C) The director of administrative services may enter into anagreement with any municipal corporation or other politicalsubdivision to furnish services and facilities of the department~~of administrative services~~ in the administration of ~~its~~ a meritprogram. ~~Such~~ The agreement shall provide that the department shall be reimbursedfor the reasonablecosts of ~~such~~ those services and facilities as determined by thedirector.

(D) All moneys received by the department ~~of administrativeservices~~ as reimbursement for payroll and merit program servicesperformed and facilities furnished under this section shall be paid into the statetreasury to the credit of the human resources servicesfund, which is hereby created.

(E) In counties of the state in which are located cities havingmunicipal civil service commissions, the director of administrative services may designatethe municipal civil service commission of the largest city within~~such~~ the county as the director's agent for the purpose ofcarrying out ~~such~~ theprovisions of sections 124.01 to 124.64 of the Revised Code,within ~~such counties~~ the county, as that the director designates. Each municipalcivil service commission designated as an agent of the directorshall render to the director, at the end of each month, ~~render~~ an itemized statement ~~tothe director~~ of the cost incurred by ~~such~~ the commission for workdone as the agent of the director, and the director ~~shall~~, afterapproving ~~such~~ that statement, shall pay the total amount of it tothetreasurer of ~~such~~ the municipal corporation in the same manner asother expenses of the department of administrative services.

(F) The director, of administrative services and the examiners, inspectors, clerks, and assistants referred to in this sectionshall receive, in addition to their salaries, ~~receive~~ reimbursement for~~such~~ necessary traveling and other expenses ~~as are~~ incurred inthe actual discharge of their official duties. The director mayalso incur the necessary expenses for stationery, printing, andother supplies incident to the business of the department ~~ofadministrative services~~.

Sec. 124.321. (A) Whenever it becomes necessary for anappointing authority to reduce its work force, the appointingauthority shall lay off employees or abolish their positions inaccordance with sections 124.321 to 124.327 of the Revised Codeand the rules of the director of administrative services.

(B)(1) Employees may be laid off as a result of a lack offunds within an appointing authority. For appointing authorities~~which~~ that employ persons whose salary or wage is paid by warrant ofthe auditor of state, the director of budget and management shallbe responsible for determining whether a lack of funds exists.For ~~all other~~ appointing authorities ~~which~~ that employ persons whosesalary or wage is paid other than by warrant of the auditor ofstate, the appointing authority ~~shall~~ itself shall determine whether alack of funds exists and shall file a statement of rationale andsupporting documentation with the director of administrativeservices prior to sending the layoff notice.

A (2) As used in this division, a "lack of funds" means an appointing authority has a currentor projected deficiency of funding to maintain current, or tosustain projected, levels of staffing and operations. Thissection does not require any transfer of money between funds inorder to offset a deficiency or projected deficiency of federalfunding for a program.

(3) The director of budget and management shall ~~promulgate~~ adoptrules, under Chapter 119. of the Revised Code, for agencies whoseemployees are paid by warrant of the auditor of state, fordetermining whether a lack of funds exists.

(C)(1) Employees may be laid off as a result of lack of workwithin an appointing authority. For appointing authorities whoseemployees are paid by warrant of the auditor of state, thedirector of administrative services shall determine whether alack of work exists. All other appointing authorities shallthemselves determine whether a lack of work exists and shall filea statement of rationale and supporting documentation with thedirector of administrative services prior to sending the layoff notice~~of layoff~~.

A (2) As used in this division, a "lack of work~~, for purposes of layoff,~~" means an appointingauthority has a current or projected temporary decrease in theworkload, expected to last less than one year, ~~which~~ that requires areduction of current or projected staffing levels. Thedetermination of a lack of work shall indicate the current orprojected temporary decrease in the workload of an appointingauthority and whether the current or projected staffing levels ofthe appointing authority will be excessive.

(D)(1) Employees may be laid off as a result of abolishmentof positions. ~~Abolishment~~ As used in this division, "abolishment" means the ~~permanent~~ deletion of aposition or positions from the organization or structure of anappointing authority ~~due to lack of continued need for theposition~~. An

For purposes of this division, an appointing authority may abolish positions for any one or any combination of the following reasons: as aresult of a reorganization for the efficient operation of theappointing authority, for reasons of economy, or for lack ofwork. ~~The determination of the need to abolish positions shallindicate the lack of continued need for positions within anappointing authority~~

(2)(a) Reasons of economy permitting an appointing authority to abolish a position and to lay off the holder of that position under this division shall be determined at the time the appointing authority proposes to abolish the position. The reasons of economy shall be based on the appointing authority's estimated amount of savings with respect to salary, benefits, and other matters associated with the abolishment of the position, except that the reasons of economy associated with the position's abolishment instead may be based on the appointing authority's estimated amount of savings with respect to salary and benefits only, if:

(i) Either the appointing authority's operating appropriation has been reduced by an executive or legislative action, or the appointing authority has a current or projected deficiency in funding to maintain current or projected levels of staffing and operations; and

(ii) It files a notice of the position's abolishment with the director of administrative services within one year of the occurrence of the applicable circumstance described in division (D)(2)(a)(i) of this section.

(b) The following principles apply when a circumstance described in division (D)(2)(a)(i) of this section would serve to authorize an appointing authority to abolish a position and to lay off the holder of the position under this division based on the appointing authority's estimated amount of savings with respect to salary and benefits only:

(i) The position's abolishment shall be done in good faith and not as a subterfuge for discipline.

(ii) If a circumstance affects a specific program only, the appointing authority only may abolish a position within that program.

(iii) If a circumstance does not affect a specific program only, the appointing authority may identify a position that it considers appropriate for abolishment based on the reasons of economy. ~~Appointing authorities~~

(3) Each appointing authority shall ~~themselves~~determine itself whether any position should be abolished and shall filea statement of rationale and supporting documentation with thedirector of administrative services prior to sending the noticeof abolishment. If

If an abolishment results in a reduction of thework force, the appointing authority shall follow the proceduresfor laying off employees, subject to the following modifications:

~~(1)~~(a) The employee whose position has been abolished shallhave the right to fill an available vacancy within the employee'sclassification;.

~~(2)~~(b) If the employee whose position has been abolished hasmore retention points than any other employee serving in the sameclassification, ~~then~~ the employee with the fewest retentionpoints shall be displaced;.

~~(3)~~(c) If the employee whose position has been abolished hasthe fewest retention points in the classification, the employeeshall have the right to fill an available vacancy in a lowerclassification in the classification series;.

~~(4)~~(d) If the employee whose position has been abolished hasthe fewest retention points in the classification, the employeeshall displace the employee with the fewest retention points inthe next or successively lower classification in theclassification series.

(E) The director of administrative services shall~~promulgate~~ adopt rules, under Chapter 119. of the Revised Code, for thedetermination of lack of work within an appointing authority, forthe abolishment of positions by an appointing authority, and forthe implementation of this section.

Sec. 124.328. A classified employee may appeal alayoff, or adisplacement ~~which~~ that is theresult of a layoff, to the state personnel board of review. Theappeal shall be filed or ~~post-marked~~ postmarked no later than ten days after receipt ofthe layoff notice ~~of layoff~~ or after the date the employee is displaced. In casesinvolving the laying off of classified employees, the affected employee or appointing authority mayappeal the decision of the state personnel board of review to the court of common pleas~~court. The appeal from the state personnel board of review shall be made~~ inaccordance with section 119.12 of the Revised Code.

Sec. 125.041. Nothing in sections 125.02,125.03 to 125.08, 125.12 to 125.16, 125.18,125.31 to 125.76, or 125.831 of the RevisedCode shall be construed as limiting the attorney general, auditor of state,secretary of state, or treasurer of state in any of the following:

(A) Purchases for less than the dollaramounts for the purchase of supplies or services determined pursuant todivision (D) of section 125.05 of the Revised Code;

(B) Purchases that equal orexceed the dollar amounts for the purchase of supplies or services determinedpursuant to division (D) of section 125.05 of the Revised Code with theapproval of the controlling board, if that approval isrequired by section127.16 of the Revised Code;

(C) The final determination of the nature or quantity making anypurchase of supplies or services to be purchased pursuant to section125.06 of the Revised Code;

Sec. 125.05. Except as provided in division (E) of thissection, no state agency shall purchase any supplies orservices except as provided in divisions (A) to (C) of this section.

(A) Subject to division (D) of this section, a state agency may, withoutcompetitive selection, make any purchase of services that cost fifty thousanddollars or less or any purchase of supplies that cost twenty-five thousanddollars or less. The agency may make the purchase directly or may make thepurchase from or through the department of administrative services, whicheverthe agency determines. Thedepartmentshall establish written procedures to assist state agencies whenthey makedirect purchases. If the agency makes the purchase directly, itshall make the purchase by a term contract whenever possible.

(B) Subject to division (D) of this section, a state agencywanting to purchase services that cost more thanfifty thousand dollars or supplies that cost more thantwenty-five thousand dollars shall, unless otherwise authorized by law, makethe purchase from or through the department. The department shall make thepurchase by competitive selection under section 125.07 of theRevised Code. If the director of administrative services determines that itis not possible or not advantageous to the state for the department to makethe purchase, the department shall grant the agency a release and permit undersection 125.06 of the Revised Code to make the purchase. Section 127.16 ofthe Revised Code does not apply to purchases the department makes under thissection.

(C) An agency that has been granted a release and permit to makea purchase may make the purchase without competitive selection if after makingthe purchase the cumulative purchase threshold as computed under division (F)of section 127.16 of the Revised Code would:

(2) Not be exceeded and the department of administrativeservices approves the purchase.

(D) Not later than January 31, 1997, the amountsspecified in divisions (A) and (B) of this section and, notlater than the thirty-first day of January of each second yearthereafter, any amounts computed by adjustments made under this division,shall be increased or decreased by the average percentage increase or decreasein the consumer price index prepared by the United Statesbureau of labor statistics (U.S. CityAverage for Urban Wage Earners and Clerical Workers: "All Items1982-1984=100") for the twenty-four calendar month period prior to theimmediately preceding first day of January over the immediatelypreceding twenty-four calendar month period, as reported by the bureau. Thedirector of administrative services shall make this determination and adjustthe appropriate amounts accordingly.

(E) If the eTech Ohio ~~SchoolNet~~commission, the department of education,or the Ohio education computernetwork determines that it can purchase software services or supplies forspecified school districts at a price less than the price for which thedistricts could purchase the same software services or supplies forthemselves, the ~~office~~ commission, department, or network shall certify that fact to thedepartment of administrative services and, acting as an agent for thespecified school districts, shall make that purchase without following theprovisions in divisions (A) to (D) of this section.

Sec. 125.11. (A) Subject to division (B) of thissection,contracts awarded pursuant toa reverse auctionunder section125.072 of the Revised Code or pursuant tocompetitivesealedbidding, including contracts awarded undersection125.081 oftheRevised Code, shall be awarded to thelowestresponsive andresponsible bidder on each item inaccordance withsection 9.312of the Revised Code. When thecontract is for meatproducts asdefined in section 918.01 of theRevised Code orpoultry productsas defined in section 918.21 ofthe RevisedCode, only those bidsreceived from vendors offeringproducts fromestablishments on thecurrent listof meat andpoultry vendors established andmaintained by thedirector ofadministrative services undersection 125.17 of theRevised Codeshall be eligible foracceptance. The department ofadministrative services may acceptor reject any or all bids inwhole or by items, except that whenthe contract is for servicesorproducts available from aqualified nonprofit agencypursuant tosections 125.60 to 125.6012 or 4115.31 to 4115.35of the Revised Code, thecontractshall be awarded to that agency.

(B) Prior to awarding a contract under division (A) ofthissection, the department of administrative services or thestateagency responsible for evaluating a contract for thepurchase ofproducts shall evaluate the bids receivedaccording tothecriteria and procedures established pursuant to divisions(C)(1)and (2) of section 125.09 of the Revised Code fordetermining if aproduct is produced or mined in the UnitedStates and if a productisproduced or mined inthis state. Thedepartment or otherstate agency shall first remove bids that offerproductsthathave not been or that will not beproduced or mined intheUnitedStates. From among the remaining bids, the departmentorotherstate agency shall select the lowest responsive andresponsiblebid, inaccordance with section 9.312 of the RevisedCode, fromamong thebids that offerproducts thathave beenproduced ormined inthis statewhere sufficientcompetitioncan be generatedwithinthisstate toensure thatcompliancewith theserequirements will not result inan excessiveprice forthe productor acquiring adisproportionately inferiorproduct.Ifthere aretwo or morequalified bids that offerproducts that have beenproduced or minedinthis state, itshall be deemed thatthere issufficient competitionto prevent anexcessive price for theproduct or the acquiring ofadisproportionately inferior product.

(D) Division (B) of this section does not apply tothepurchase by the division of liquor control ofspirituousliquor.

(E) The director of administrative services shall publishinthe form of a model act for use by counties, townships,municipalcorporations, or any other political subdivisiondescribed indivision (B) of section 125.04 of the Revised Code, asystem ofpreferencesfor productsmined andproduced inthisstate and inthe United States and forOhio-basedcontractors.Themodel actshall reflect substantialequivalenceto the systemofpreferencesin purchasing and publicimprovementcontractingprocedures underwhich the state operatespursuant tothis chapterand section153.012 of the Revised Code. To themaximum extentpossible,consistent with the Ohio systemofpreferences inpurchasing andpublic improvement contractingprocedures, themodel act shallincorporate all of therequirements of the federal"Buy AmericaAct," 47 Stat. 1520(1933), 41 U.S.C. 10a to 10d, asamended, andthe rules adoptedunder that act.

Before and during the development and promulgationofthemodel act, the director shall consult with appropriatestatewideorganizations representing counties, townships, andmunicipalcorporations so as to identify the special requirementsandconcerns these political subdivisions have in their purchasingandpublic improvement contracting procedures. The directorshallpromulgate the model act by rule adopted pursuant toChapter 119.of the Revised Code and shall revise the act asnecessary toreflect changes in this chapter or section 153.012of the RevisedCode.

The director shall make available copies of the model act,supporting information, and technical assistance to any township,county, or municipal corporation wishing to incorporate theprovisions of the act into its purchasing or public improvementcontracting procedure.

Sec. 125.18. (A) There is hereby established the office of information technology housed within the department of administrative services. The office shall be under the supervision of a chief information officer to be appointed by the governor and subject to removal at the pleasure of the governor. The chief information officer shall serve as the director of the office.

(B) The director of the office of information technology shall advise the governor regarding the superintendence and implementation of statewide information technology policy.

(C) The director of the office of information technology shall lead, oversee, and direct state agency activities related to information technology development and use. In that regard, the director shall do all of the following:

(1) Coordinate and superintend statewide efforts to promote common use and development of technology by state agencies. The office of information technology shall establish policies and standards that govern and direct state agency participation in statewide programs and initiatives.

(2) Establish policies and standards for the acquisition and use of information technology by state agencies, including, but not limited to, hardware, software, technology services, and security, with which state agencies shall comply;

(3) Establish criteria and review processes to identify state agency information technology projects that require alignment or oversight. As appropriate, the office of information technology shall provide the governor and the director of budget and management with notice and advice regarding the appropriate allocation of resources for those projects. The director of the office of information technology may require state agencies to provide, and may prescribe the form and manner by which they must provide, information to fulfill the director's alignment and oversight role.

(D) The office of information technology shall have the same authority given to the department of administative services under sections 125.01, 125.02, 125.023, 125.04, 125.05, 125.06, 125.07, 125.071, 125.072, 125.081, 125.09, 125.10, 125.11, and 125.25 of the Revised Code for the purchase of information technology supplies and services for state agencies.

(E) The office of information technology may make contracts for, operate, and superintend technology supplies and services for state agencies in accordance with this chapter.

(F) The office of information technology may establish cooperative agreements with federal and local government agencies and state agencies that are not under the authority of the governor for the provision of technology services and the development of technology projects.

(G) As used in this section, "state agency" means every organized body, office, or agency established by the laws of the state for the exercise of any function of state government, other than any state-supported institution of higher education, the office of the auditor of state, treasurer of state, secretary of state, or attorney general, the public employees retirement system, the Ohio police and fire pension fund, the state teachers retirement system, the school employees retirement system, the state highway patrol retirement system, the general assembly or any legislative agency, or the courts or any judicial agency.

Sec. 125.25. (A) The director of administrative services may debar a vendor from consideration for contract awards upon a finding based upon a reasonable belief that the vendor has done any of the following:

(1) Abused the selection process by repeatedly withdrawing bids or proposals before purchase orders or contracts are issued or failing to accept orders based upon firm bids;

(2) Failed to substantially perform a contract according to its terms, conditions, and specifications within specified time limits;

(3) Failed to cooperate in monitoring contract performance by refusing to provide information or documents required in a contract, failed to respond to complaints to the vendor, or accumulated repeated justified complaints regarding performance of a contract;

(4) Attempted to influence a public employee to breach ethical conduct standards or to influence a contract award;

(6) Been convicted of a criminal offense related to the application for or performance of any public or private contract, including, but not limited to, embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, and any other offense that directly reflects on the vendor's business integrity;

(8) Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;

(9) Violated any other responsible business practice or performed in an unsatisfactory manner as determined by the director;

(10) Through the default of a contract or through other means had a determination of unresolved finding for recovery by the auditor of state under section 9.24 of the Revised Code;

(11) Acted in such a manner as to be debarred from participating in a contract with any governmental agency.

(B) When the director reasonably believes that grounds for debarment exist, the director shall send the vendor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing on the proposed debarment. The hearing shall be conducted in accordance with Chapter 119. of the Revised Code. If the vendor does not respond with a request for a hearing in the manner specified in Chapter 119. of the Revised Code, the director shall issue the debarment decision without a hearing and shall notify the vendor of the decision by certified mail, return receipt requested.

(C) The director shall determine the length of the debarment period and may rescind the debarment at any time upon notification to the vendor. During the period of debarment, the vendor is not eligible to participate in any state contract. After the debarment period expires, the vendor shall be eligible to be awarded contracts by state agencies.(D) The director, through the office of information technology and the office of procurement services, shall maintain a list of all vendors currently debarred under this section.

(1) Is organized under the laws of the United States or this state such that no part of its net income inures to the benefit of any shareholder or other individual;

(2) Is certified as a sheltered workshop, if applicable, by the wage and hour division of the United States department of labor;

(3) Is registered and in good standing with the secretary of state as a domestic nonprofit or not-for-profit corporation;

(4) Complies with applicable occupational health and safety standards required by the laws of the United States or of this state;

(5) Operates in the interest of persons with work-limiting disabilities, provides vocational or other employment-related training to persons with work-limiting disabilities, and employs persons with work-limiting disabilities in the manufacture of products or the provision of services;

(1) Any state agency, including the general assembly, the supreme court, and the office of a state elected official, or any state authority, board, bureau, commission, institution, or instrumentality that is funded in total or in part by state money;

(C) "Person with a work-limiting disability" means an individual who has a disability as defined in the "Americans with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C. 12101, and who:

(1) Because of that disability is substantially limited in the type or quantity of work the individual can perform or is prevented from working regularly;

(2) Meets criteria established by the office of procurement from community rehabilitation programs.

Sec. 125.601. (A) Not later than July 1, 2007, the director of administrative services shall establish the office of procurement from community rehabilitation programs within the department of administrative services. The director shall designate an employee of the department to serve as administrator of the office.

(B) Not later than July 1, 2007, the director shall abolish the state committee for the purchase of products and services provided by persons with severe disabilities in accordance with section 4115.36 of the Revised Code.

Sec. 125.602. (A) The department of mental retardation and developmental disabilities, the department of mental health, the department of job and family services, the rehabilitation services commission, and any other state or governmental agency or community rehabilitation program responsible for the provision of rehabilitation and vocational educational services to persons with work-limiting disabilities may, through written agreement, cooperate in providing resources to the department of administrative services for the operation of the office of procurement from community rehabilitation programs. These resources may include, but are not limited to, leadership and assistance in dealing with the societal aspects of meeting the needs of persons with work-limiting disabilities.

(B) The office and all governmental entities that administer socioeconomic programs may enter into contractual agreements, cooperative working relationships, or other arrangements that are necessary for effective coordination and realization of the objectives of these entities.

Sec. 125.603. (A) The office of procurement from community rehabilitation programs shall do the following in addition to other duties specified in sections 125.60 to 125.6012 of the Revised Code:

(1) Establish, maintain, and periodically update a procurement list of approved supplies and services available from qualified nonprofit agencies;

(2) Monitor the procurement practices of government ordering offices to ensure compliance with sections 125.60 to 125.6012 of the Revised Code;

(3) In cooperation with qualified nonprofit agencies, government ordering offices, the department of mental retardation and developmental disabilities, the department of mental health, the department of job and family services, and the rehabilitation services commission, develop and recommend to the director of administrative services rules the director shall adopt in accordance with Chapter 119. of the Revised Code for the effective and efficient administration of sections 125.60 to 125.6012 of the Revised Code;

(4) Prepare a report of its activities by the last day of December of each year. The report shall be posted electronically on the office's web site.

(B) The office of procurement from community rehabilitation programs may enter into contractual agreements and establish pilot programs to further the objectives of sections 125.60 to 125.6012 of the Revised Code.

Sec. 125.604. A community rehabilitation program may apply to the office of procurement from community rehabilitation programs to be certified as qualified to provide its supplies and services for procurement by government ordering offices. The office shall prescribe the form of the application. If the office is satisfied the program is qualified, it shall certify the program as a qualified nonprofit agency for the purposes of sections 125.60 to 125.6012 of the Revised Code.

Sec. 125.605. The office of procurement from community rehabilitation programs may certify any entity to serve as an approved agent of a qualified nonprofit agency for the purposes of sections 125.60 to 125.6012 of the Revised Code. The office shall prescribe procedures under which an entity can apply and be considered for such certification. An approved agent may do any of the following:

(A) Contract with the office of procurement from community rehabilitation programs to provide centralized business facilitation or other assistance to qualified nonprofit agencies. The office shall consult with qualified nonprofit agencies before agreeing to such a contract.

(B) Act as a distributor of supplies and services registered on the procurement list maintained by the office under section 125.603 of the Revised Code;

Sec. 125.606. Prior to purchases by government ordering offices, the office of procurement from community rehabilitation programs shall attempt to establish for each item on the procurement list a fair market price that is representative of the range of prices that a government ordering office would expect to pay to purchase the item in the marketplace. When establishing a fair market price for an item, the office of procurement from community rehabilitation programs shall consider the costs of doing business with respect to that item, including sales, marketing, and research and development costs and agent fees. If the office of procurement from community rehabilitation programs cannot establish a fair market price for a particular supply or service, the government ordering office shall attempt to establish the fair market price pursuant to division (B) of section 125.607 of the Revised Code for each purchase of such supply or service.

Sec. 125.607. (A) Before purchasing any supply or service, a governmental ordering office shall determine whether the supply or service is on the procurement list maintained by the office of procurement from community rehabilitation programs. If the supply or service is on the list at an established fair market price, the government ordering office shall purchase it from the qualified nonprofit agency or approved agent at that price.

(B) If the supply or service is on the procurement list but a fair market price has not been established, the government ordering office shall attempt to negotiate an agreement with one or more of the listed qualified nonprofit agencies or approved agents. The office of procurement from community rehabilitation programs may accept as fair market price an agreement negotiated between the government ordering office and a qualified nonprofit agency or approved agent.

(C) If an agreement is not successfully negotiated, the office may establish a fair market price, or it may release a government ordering office from the requirements of this section.

(D) A purchase under divisions (A) to (C) of this section is not subject to any competitive selection or competitive bidding requirements, notwithstanding any other provision of law.

(E) The department of administrative services has the authority to structure or regulate competition among qualified nonprofit agencies for the overall benefit of the program.

Sec. 125.608. All government ordering offices purchasing supplies and services from qualified non-profit agencies or their approved agents shall reimburse the department of administrative services a reasonable sum to cover the department's costs of administering sections 125.60 to 125.6012 of the Revised Code. The department may bill administrative costs to government ordering offices directly, or allow qualified non-profit agencies or approved agents to collect and remit department administrative fees, at the department's discretion. Any department administrative fees collected and remitted by qualified nonprofit agencies or their approved agents shall be considered allowable expenses in addition to the fair market price approved under section 125.606 or 125.607 of the Revised Code. The money so paid shall be deposited in the state treasury to the credit of the general services fund created under section 125.15 of the Revised Code.

Sec. 125.609. The office of procurement from community rehabilitation programs, on its own or pursuant to a request from a government ordering office, may release a government ordering office from compliance with sections 125.60 to 125.6012 of the Revised Code. If the office determines that compliance is not possible or not advantageous, or if conditions prescribed in rules as may be adopted under section 125.603 of the Revised Code for granting a release are met, the office may grant a release. The release shall be in writing, and shall specify the supplies or services to which it applies, the period of time during which it is effective, and the reason for which it is granted.

Sec. 125.6010. Section 125.607 of the Revised Code does not apply to the purchase of a product or service available from a state agency, state instrumentality, or political subdivision under any law in effect on July 1, 2005.

Sec. 125.6011. (A) Nothing in sections 125.60 to 125.6012 of the Revised Code shall be construed to prohibit the purchase of a supply or service from a qualified nonprofit agency by a political subdivision that is not a government ordering office.

(B) Purchases made under this section by a political subdivision, as defined in section 125.04 of the Revised Code, are exempt from any competitive selection procedures otherwise required by law. Purchases under this section shall be made from qualified nonprofit agencies or their approved agents.

(C) A political subdivision, as defined in section 125.04 of the Revised Code, may not purchase under division (C) of that section a supply or service on the procurement list established under section 125.603 of the Revised Code.

Sec. 125.6012. A government ordering office and qualified nonprofit agency shall provide the necessary information and documentation requested by the office of procurement from community rehabilitation programs to enable the office to effectively administer sections 125.60 to 125.6012 of the Revised Code.

(A) "Law enforcement officer" means an officer, agent, or employee of a state agency upon whom, by statute, a duty to conserve the peace or to enforce all or certain laws is imposed and the authority to arrest violators is conferred, within the limits of that statutory duty and authority, but does not include such an officer, agent, or employee if that duty and authority is location specific.

(B)(1) "Motor vehicle" means any automobile, car minivan, cargo van, passenger van, sport utility vehicle, or pickup truck with a gross vehicle weight of under twelve thousand pounds.

(2) "Motor vehicle" does not include, except for the purposes of division (C) of section 125.832 of the Revised Code, any vehicle described in division (B)(1) of this section that is used by a law enforcement officer and law enforcement agency or any vehicle that is so described and that is equipped with specialized equipment that is not normally found in such a vehicle and that is used to carry out a state agency's specific and specialized duties and responsibilities.

(C) "Specialized equipment" does not include standard mobile radios with no capabilities other than voice communication, exterior and interior lights, or roof-mounted caution lights.

(D) "State agency" means every organized body, office, board, authority, commission, or agency established by the laws of the state for the exercise of any governmental or quasi-governmental function of state government regardless of the funding source for that entity, other than any ~~state-supported~~ state institution of higher education, the office of the governor, lieutenant governor, auditor of state, treasurer of state, secretary of state, or attorney general, the general assembly or any legislative agency, or the courts or any judicial agency, or any state retirement system or retirement program established by or referenced in the Revised Code.

(E) "State institution of higher education" has the same meaning as in section 3345.011 of the Revised Code.

Sec. 125.832. (A) The department of administrative services is granted exclusive authority over the acquisition and management of all motor vehicles used by state agencies. In carrying out this authority, the department shall do both of the following:

(1) Approve the purchase or lease of each motor vehicle for use by a state agency. The department shall decide if a motor vehicle shall be leased or purchased for that use.

Except as otherwise provided in division (A)(1) of this section, on and after July 1, 2005, each state agency shall acquire all passenger motor vehicles under the department's master leasing program. If the department determines that acquisition under that program is not the most economical method and if the department and the state agency acquiring the passenger motor vehicle can provide economic justification for doing so, the department may approve the purchase, rather than the lease, of a passenger motor vehicle for the acquiring state agency.

(2) Direct and approve all funds that are expended for the purchase, lease, repair, maintenance, registration, insuring, and other costs related to the possession and operation of motor vehicles for the use of state agencies.

(B) The director of administrative services shall establish and operate a fleet management program. The director shall operate the program for purposes including, but not limited to, cost-effective acquisition, maintenance, management, analysis, and disposal of all motor vehicles owned or leased by the state. All state agencies shall comply with statewide fleet management policies and procedures established by the director for the program, including, but not limited to, motor vehicle assignments, additions of motor vehicles to fleets or motor vehicle replacements, motor vehicle fueling, and motor vehicle repairs.

(C) The director shall establish and maintain a fleet reporting system and shall require state agencies to submit to the department information relative to state motor vehicles, including motor vehicles described in division (B)(2) of section 125.831 of the Revised Code, to be used in operating the fleet management program. State agencies shall provide to the department fleet data and other information, including, but not limited to, mileage and costs. The data and other information shall be submitted in formats and in a manner determined by the department.

(D) All state agency purchases or leases of motor vehicles are subject to the prior approval of the director under division (A)(1) of this section.

(E) State agencies that utilize state motor vehicles or pay mileage reimbursements to employees shall provide a fleet plan to the department as directed by the department.

(F)(1) The fleets of state agencies that consist of one hundred or less vehicles on July 1, 2004, shall be managed by the department's fleet management program on a time schedule determined by the department, unless the state agency has received delegated authority as described in division (G) of this section.

(2) The fleets of state agencies that consist of greater than one hundred motor vehicles, but less than five hundred motor vehicles, on July 1, 2005, also shall be managed by the department's fleet management program on a time schedule determined by the department, unless the state agency has received delegated authority as described in division (G) of this section.

(G)(1) The department may delegate any or all of its duties regarding fleet management to a state agency, if the state agency demonstrates to the satisfaction of the department both of the following:

(a) Capabilities to institute and manage a fleet management program, including, but not limited to, the presence of a certified fleet manager;

(b) Fleet management performance, as demonstrated by fleet data and other information submitted pursuant to annual reporting requirements and any other criteria the department considers necessary in evaluating the performance.

(2) The department may determine that a state agency is not in compliance with this section and direct that the agency's fleet management duties be transferred to the department.

(H) The proceeds derived from the disposition of any motor vehicles under this section shall be paid to whichever of the following applies:

(1) The fund that originally provided moneys for the purchase or lease of the motor vehicles;

(2) If the motor vehicles were originally purchased with moneys derived from the general revenue fund, the proceeds shall be deposited, in the director's discretion, into the state treasury ~~for~~ to the credit to of either the fleet management fund created by section 125.83 of the Revised Code or the investment recovery fund created by section 125.14 of the Revised Code.

(I)(1) The department shall create and maintain a certified fleet manager program.

(2) State agencies that have received delegated authority as described in division (G) of this section shall have a certified fleet manager.

(J) The department annually shall prepare and submit a statewide fleet report to the governor, the speaker of the house of representatives, and the president of the senate. The report shall be submitted not later than the thirty-first day of January following the end of each fiscal year. It may include, but is not limited to, the numbers and types of motor vehicles, their mileage, miles per gallon, and cost per mile, mileage reimbursements, accident and insurance data, and information regarding compliance by state agencies having delegated authority under division (G) of this section with applicable fleet management requirements.

(K) The director shall adopt rules for implementing the fleet management program that are consistent with recognized best practices. The program shall be supported by reasonable fee charges for the services provided. The director shall collect these fees and deposit them into the state treasury to the credit for the fleet management fund created by section 125.83 of the Revised Code. The setting and collection of fees under this division is not subject to any restriction imposed by law upon the director's or the department's authority to set or collect fees.

(L) The director also shall adopt rules that prohibit, except in very limited circumstances, the exclusive assignment of state-owned, leased, or pooled motor vehicles to state employees and that prohibit the reimbursement under section 126.31 of the Revised Code of state employees who use their own motor vehicles for any mileage they incur above an amount that the department shall determine annually unless reimbursement for the excess mileage is approved by the department in accordance with standards for that approval the director shall establish in those rules. Beginning on ~~the effective date of this section~~ September 26, 2003, no ~~such~~ state-owned, leased, or pooled motor vehicle shall be personally assigned as any form of compensation or benefit of state employment, and no ~~such~~ state-owned, leased, or pooled motor vehicle shall be assigned to an employee solely for commuting to and from home and work.

(1) Implement to the greatest extent possible the recommendations from the 2002 report entitled "Administrative Analysis of the Ohio Fleet Management Program" in connection with the authority granted to the department by this section;

(2) Attempt to reduce the number of passenger vehicles used by state agencies during the fiscal years ending on June 30, 2004, and June 30, 2005.

(N) Each state agency shall reimburse the department for all costs incurred in the assignment of motor vehicles to the state agency.

(O) The director shall do all of the following in managing the fleet management program:

(1) Determine how motor vehicles will be maintained, insured, operated, financed, and licensed;

(2) Pursuant to the formula in division (O)(3) of this section, annually establish the minimum number of business miles per year an employee of a state agency must drive in order to qualify for approval by the department to receive a motor vehicle for business use;

(3) Establish the minimum number of business miles per year at an amount that results when the annual motor vehicle cost is divided by the amount that is the reimbursement rate per mile minus the amount that is the sum of the fuel cost, the operating cost, and the insurance cost. As used in this division:

(a) "Annual motor vehicle cost" means the price of a motor vehicle divided by the number of years an average motor vehicle is used.

(b) "Fuel cost" means the average price per gallon of motor fuel divided by the miles per gallon fuel efficiency of a motor vehicle.

(c) "Insurance cost" means the cost of insuring a motor vehicle per year divided by the number of miles an average motor vehicle is driven per year.

(d) "Operating cost" means the maintenance cost of a motor vehicle per year divided by the product resulting when the number of miles an average motor vehicle is driven per year is multiplied by the number of years an average motor vehicle is used.

(e) "Reimbursement rate per mile" means the reimbursement per mile rate for travel expenses as provided by rule of the director of budget and management adopted under division (B) of section 126.31 of the Revised Code.

(P)(1) Not later than the fifteenth day of September of each year, each state institution of higher education shall report to the department on all of the following topics relating to motor vehicles that the institution acquires and manages:

(b) Whether or not it uses a fuel card program to purchase fuel for, or to pay for the maintenance of, the motor vehicles;

(2) Assuming it does not use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that the department provides, the report of a state institution of higher education required by division (P)(1) of this section also shall include both of the following:

(a) An analysis of the amount the institution would save, if any, if it were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that the department provides instead of the fleet management system the institution regularly uses;

(b) A rationale for either continuing with the fleet management system that the institution regularly uses or changing to the use of those tools and services that the department provides.

(3) The department shall certify within ninety days after receipt of all reports under division (P)(1) of this section a list of those state institutions of higher education that the department determines would save amounts if they were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that the department provides. The institutions so certified then shall use those tools and services that the department provides until the department next certifies institutions under division (P)(3) of this section.

Sec. 126.25. The accounting and budgeting services provided by the director of budget andmanagement shall be supported by user charges. The directorshall determine a rate that is sufficient to defray the expense of thoseservices and the manner by which those charges shall be collected. All moneycollected from user charges shall be deposited in the state treasury to thecredit of the ~~state~~ accounting and budgeting fund, which is hereby created. Rebates orrevenue shares received from any state payment card program established underdivision(B) of section 126.21 of the Revised Code and miscellaneous payments thatreimburse expenses paid from the ~~state~~ accounting and budgeting fund may be deposited intothe ~~state~~ accounting and budgeting fund and used to support accounting and budgeting services.

Sec. 127.16. (A) Upon the request of either a stateagencyor the director of budget and management and after thecontrollingboard determines that an emergency or a sufficienteconomic reasonexists, the controlling board may approvethe making of a purchasewithout competitive selection as provided indivision (B) of thissection.

(B) Except as otherwise provided in this section, no stateagency, using money that has been appropriated to it directly,shall:

(1) Make any purchase from a particular supplier, thatwouldamount to fifty thousand dollars or more when combined withboththe amount of all disbursements to the supplier during thefiscalyear for purchases made by the agency and the amount ofalloutstanding encumbrances for purchases made by the agencyfrom thesupplier, unless the purchase is made by competitiveselection orwith the approval of the controlling board;

(2) Lease real estate from a particular supplier, if thelease would amount to seventy-five thousand dollars or more whencombined with both the amount of all disbursements to thesupplierduring the fiscal year for real estate leases made bythe agencyand the amount of all outstanding encumbrances forreal estateleases made by the agency from the supplier, unlessthe lease ismade by competitive selection or with the approvalof thecontrolling board.

(C) Any person who authorizes a purchase in violation ofdivision (B) of this section shall be liable to the state for anystate funds spent on the purchase, and the attorney general shallcollect the amount from the person.

(1) A limitation upon the authority of the director oftransportation as granted in sections 5501.17, 5517.02, and5525.14 of the Revised Code;

(2) Applying to medicaid provider agreements under Chapter5111. of the Revised Code~~or payments or provideragreements under thedisability medical assistance programestablished under Chapter5115. of the Revised Code~~;

(3) Applying to the purchase of examinations from a solesupplier by a state licensing board under Title XLVII of theRevised Code;

(4) Applying to entertainment contracts for the Ohio statefair entered into by the Ohio expositions commission, providedthat the controlling board has given its approval to thecommission to enter into such contracts and has approved a totalbudget amount for such contracts as agreed upon by commissionaction, and that the commission causes to be kept itemizedrecordsof the amounts of money spent under each contract andannuallyfiles those records with the clerk of thehouse of representativesand the clerk of the senate followingthe close of the fair;

(5) Limiting the authority of the chief of the division ofmineral resources management to contractfor reclamation work withan operatormining adjacent land as provided in section 1513.27 oftheRevised Code;

(6) Applying to investment transactions and procedures ofany state agency, except that the agency shall file with theboardthe name of any person with whom the agency contracts tomake,broker, service, or otherwise manage its investments, aswell asthe commission, rate, or schedule of charges of suchperson withrespect to any investment transactions to beundertaken on behalfof the agency. The filing shall be in aform and at such times asthe board considers appropriate.

(7) Applying to purchases made with money for the per centfor arts program established by section 3379.10 of the RevisedCode;

(8) Applying to purchases made by the rehabilitationservices commission of services, or supplies, that are providedtopersons with disabilities, or to purchases made by thecommissionin connection with the eligibility determinations itmakes forapplicants of programs administered by the socialsecurityadministration;

(9) Applying to payments by the department of job andfamilyservices under section 5111.13 of the Revised Code for grouphealth plan premiums, deductibles, coinsurance, and othercost-sharing expenses;

(11) Applying to agreements or contracts entered into undersection5101.11, 5101.20, 5101.201, 5101.21, or 5101.214 of the Revised Code;

(12) Applying to purchases of services by the adult paroleauthority under section 2967.14 of the Revised Code or by thedepartment of youth services under section 5139.08 of the RevisedCode;

(13) Applying to dues or fees paid for membership in anorganization or association;

(14) Applying to purchases of utility services pursuant tosection 9.30 of the Revised Code;

(15) Applying to purchases made in accordance with rulesadopted by the department of administrative services of motorvehicle, aviation, or watercraft fuel, or emergency repairs ofsuch vehicles;

(17) Applying to purchases necessary to provide publicnotifications required by law or to provide notifications of jobopenings;

(19) Applying to purchases of liquor for resale by thedivision of liquorcontrol;

(20) Applying to purchases of motor courier and freightservices made in accordance with department of administrativeservices rules;

(21) Applying to purchases from the United States postalservice and purchases of stamps and postal meter replenishmentfrom vendors at rates established by the United States postalservice;

(22) Applying to purchases of books, periodicals,pamphlets,newspapers, maintenance subscriptions, and otherpublishedmaterials;

(23) Applying to purchases from other state agencies,including state-assisted institutions of higher education;

(24) Limiting the authority of the director ofenvironmentalprotection to enter into contracts under division(D) of section3745.14 of the Revised Code to conduct compliancereviews, asdefined in division (A) of that section;

(25) Applying to purchases from a qualified nonprofitagencypursuant to sections 125.60 to 125.6012 or 4115.31 to 4115.35 of the RevisedCode;

(26) Applying to payments by the department of job andfamilyservices to the United States department of health andhumanservices for printing and mailing notices pertaining to thetaxrefund offset program of the internal revenue service of theUnited States department of the treasury;

(27) Applying to contracts entered into by the departmentofmental retardation and developmental disabilities undersections5123.18, 5123.182, and 5123.199 of the Revised Code;

(28) Applying to payments made by the department of mentalhealth under aphysician recruitment program authorized by section5119.101 of the RevisedCode;

(29) Applying to contracts entered into with persons bythedirector of commerce for unclaimed funds collection andremittanceefforts as provided in division(F) of section 169.03 of theRevisedCode. The director shall keepan itemized accounting ofunclaimed funds collected by thosepersons and amounts paid tothem for their services.

(30) Applying to purchases made by a state institution ofhighereducationin accordance with the terms of a contractbetween the vendor and aninter-university purchasing groupcomprised of purchasing officers of stateinstitutions of highereducation;

(31) Applying to the department of job and familyservices'purchases of healthassistance services under the children'shealth insurance program partI provided for under section 5101.50of the Revised Code or the children'shealthinsurance programpart II provided for under section 5101.51of the Revised Code;

(32) Applying to payments by the attorney general from thereparations fund to hospitals and other emergency medicalfacilities for performing medical examinations to collect physicalevidence pursuant to section 2907.28 of the Revised Code;

(33) Applying to contracts with a contracting authority oradministrative receiver under division ~~(G)(2)~~(B) of section ~~5126.055~~ 5126.056of the Revised Code;

(34) Applying to reimbursements paid to the United States department of veterans affairs for pharmaceutical and patient supply purchases made on behalf of the Ohio veterans' home agency;

(35) Applying to agreements the department of job and family services enters into with terminal distributors of dangerous drugs under section 5110.12 of the Revised Code.

(E) Notwithstanding division (B)(1) of this section, thecumulative purchase threshold shall be seventy-five thousanddollars for the departments of mental retardation anddevelopmental disabilities, mental health, rehabilitation andcorrection, and youth services.

(F) When determining whether a state agency has reachedthecumulative purchase thresholds established in divisions(B)(1),(B)(2), and (E) of this section, all of the followingpurchases bysuch agency shall not be considered:

(1) Purchases made through competitive selection or withcontrolling board approval;

(3) For the purposes of the thresholds of divisions (B)(1)and (E) of this section only, leases of real estate.

(G) As used in this section,"competitive selection,""purchase,""supplies," and"services" have the same meanings asin section 125.01 of the Revised Code.

Sec. 131.02. (A) Whenever any amount is payable to the state,the officer, employee, or agent responsible for administering thelaw under which the amount is payable shall immediately proceedtocollect the amount or cause the amount to be collected andshallpay the amount into the state treasury or into the appropriate custodial fund in the manner setforthpursuant to section 113.08 of the Revised Code. If Except as otherwise provided in this division, if theamount isnot paid within forty-five days after payment is due,the officer,employee, or agent shall certify the amount due tothe attorneygeneral, in the form and manner prescribed by theattorneygeneral, and notify the director of budget andmanagement thereof. In the case of an amount payable by a student enrolled in a state institution of higher education, the amount shall be certified within the later of forty-five days after the amount is due or the tenth day after the beginning of the next academic semester, quarter, or other session following the session for which the payment is payable. The attorney general may assess the collection cost to the amount certified in such manner and amount as prescribed by the attorney general.

For the purposes of this section, a payment is due at the time provided in divisions (A)(1) to (9) of this section. If more than one division applies to a payment, the payment is due at the earliest of the applicable times.

(1) If a law, including an administrative rule, of this state prescribes the time a payment is required to be made or reported, when the payment is required by that law to be paid or reported.

(2) If the payment is for services rendered, when the rendering of the services is completed.

(4) In the case of a fine or penalty for which a law or administrative rule does not prescribe a time for payment, when the fine or penalty is first assessed.

(5) If the payment arises from a legal finding, judgment, or adjudication order, when the finding, judgment, or order is rendered or issued.

(6) If the payment arises from an overpayment of money by the state to another person, when the overpayment is discovered.

(7) The date on which the amount for which an individual is personally liable under section 5735.35, section 5739.33, or division (G) of section 5747.07 of the Revised Code is determined.

(9) Any other appropriate time determined by the officer, employee, or agent responsible for administering the law under which the amount is payable on the basis of statutory requirements or ordinary business processes of the state agency to which the payment is owed.

(B)(1) The attorney general shall give immediate notice bymailorotherwise to the party indebted of the nature and amountof theindebtedness.

(2) If the amount payable to this state arises from ataxlevied under Chapter 5733., 5739., 5741., or 5747. of theRevisedCode, the notice also shall specify all of the following:

(e) That the attorney general and tax commissioner,actingtogether, havethe authority, but are not required, tocompromisetheclaim and accept payment over a reasonabletime, if suchactions are in thebest interest of the state.

(D) Each claim shall bear interest, from the day on whichtheclaim became due, at the rate per annumrequired by section 5703.47 of the Revised Code.

(E) The attorney general and the chief officer of the agencyreporting a claim, acting together, may do any of thefollowing if such action is in the best interests of the state:

(2) Extend for a reasonable period the time for payment ofthe claim by agreeing to accept monthly or other periodicpayments. The agreement may require security for payment of theclaim.

(3) Add fees to recover the cost of processing checks or other draft instruments returned for insufficient funds and the cost of providing electronic payment options.

(F)(1) Except as provided in division (F)(2) of this section, if the attorney general finds, after investigation, that any claim due and owing to the state is uncollectible, the attorney general, with the consent of the chief officer of the agency reporting the claim, may do the following:

(a) Sell, convey, or otherwise transfer the claim to one or more private entities for collection;

(2) The attorney general shall cancel or cause to be cancelled an unsatisfied claim on the date that is forty years after the date the claim is certified.

(3) If information contained in a claim that is sold, conveyed, or transferred to a private entity pursuant to this section is confidential pursuant to federal law or a section of the Revised Code that implements a federal law governing confidentiality, such information remains subject to that law during and following the sale, conveyance, or transfer.

(1) "Final overdue claim" means a claim that has been certified to the attorney general under section 131.02 of the Revised Code, that has been final for at least one year, and for which no arrangements have been made for the payment thereof or, if such arrangements have been made, the person owing the claim has failed to comply with the terms of the arrangement for more than thirty days.

"Final overdue claim" includes collection costs incurred with respect to such a claim and assessed by the attorney general under division (A) of section 131.02 of the Revised Code, interest accreting to the claim under division (D) of that section, and fees added under division (E)(3) of that section.

(2) "Final" means a claim has been finalized under the law providing for the imposition or determination of the amount due, and any time provided for appeal of the amount, legality, or validity of the claim has expired without an appeal having been filed in the manner provided by law. "Final" includes, but is not limited to, a final determination of the tax commissioner for which the time for appeal has expired without a notice of appeal having been filed.

(B) If a claim is certified to the attorney general under section 131.02 of the Revised Code, at any time after the claim is a final overdue claim, the attorney general may sell or otherwise transfer the claim to any person. If the claim is to be sold, it may be sold by private negotiated sale or at public auction conducted by the attorney general or a designee, as is most likely, in the opinion of the attorney general, to yield the most favorable return on the sale. For the purposes of this division, a public auction includes an auction conducted electronically whereby bids are solicited and received via the internet and the solicitation is open to the public.

(D) Not less than sixty days before first offering a final overdue claim for sale, the attorney general shall provide written notice, by ordinary mail, to the person owing the claim at that person's last known mailing address. The notice shall state the following:

(2) The manner in which the person may contact the office of the attorney general to arrange terms for payment of the claim;

(3) That if the person does not contact the office of the attorney general within sixty days after the date the notice is issued and arrange terms for payment of the claim all of the following apply:

(a) The claim will be offered for sale to a private party for collection by that party by any legal means;

(b) The person is deemed to be denied any right to seek and obtain a refund of any amount from which the claim arises if the applicable law otherwise allows for such a refund;

(c) The person is deemed to waive any right the person may have to confidentiality of information regarding the claim to the extent confidentiality is provided under any other section of the Revised Code.

(E) Upon the sale or transfer of a final overdue claim under this section, the claim becomes the property of the purchaser or transferee, and may be sold or otherwise transferred by that person to any other person or otherwise disposed of. The owner of the claim is entitled to all proceeds from the collection of the claim. Purchasers or transferees of a final overdue claim are subject to any applicable laws governing collection of debts of the kind represented by the claim.

(F) Upon the sale or transfer of a final overdue claim under this section, no refund shall be issued or paid to the person owing the claim for any part of the amount from which the claim arises.

(G) Notwithstanding any other section of the Revised Code, the attorney general, solely for the purpose of effecting the sale or transfer of a final overdue claim under this section, may disclose information about the person owing the claim that otherwise would be confidential under a section of the Revised Code, and the person shall have no right of action against such disclosure to the extent such a right is available under that section.

(H) The authority granted under this section is supplemental to the authority granted under section 131.02 of the Revised Code.

Sec. 131.23. The various political subdivisions of thisstate may issue bonds, and any indebtedness created by suchissuance shall not be subject to the limitations or included inthe calculation of indebtedness prescribed by sections 133.05,133.06, 133.07, and 133.09 of the Revised Code, but such bondsmay be issued only under the following conditions:

(A) The subdivision desiring to issue such bonds shallobtain from the county auditor a certificate showing the totalamount of delinquent taxes due and unpayable to such subdivisionat the last semiannual tax settlement.

(B) The fiscal officer of that subdivision shall prepare astatement, from the books of the subdivision, verified by thefiscal officerunder oath, which shall contain the following facts of suchsubdivision:

(2) The aggregate amount of notes payable or outstandingaccounts of the subdivision, incurred prior to the commencementof the current fiscal year, which shall include all evidences ofindebtedness issued by the subdivision except notes issued inanticipation of bond issues and the indebtedness of anynontax-supported public utility;

(3) Except in the case of school districts, the aggregatecurrent year's requirement for disabilityfinancial assistance ~~and disability medical assistance~~ provided under Chapter 5115. of the RevisedCode that the subdivision is unable to finance except by theissue of bonds;

(4) The indebtedness outstanding through the issuance ofany bonds or notes pledged or obligated to be paid by anydelinquent taxes;

(6) The net amount of delinquent taxes unpledged to payany bonds, notes, or certificates, including delinquentassessments on improvements on which the bonds have been paid;

(C) The certificate and statement provided for indivisions (A) and (B) of this section shall be forwarded to thetax commissioner together with a request for authority to issuebonds of such subdivision in an amount not to exceed seventy percent of the net unobligated delinquent taxes and assessments dueand owing to such subdivision, as set forth in division (B)(6) ofthis section.

(D) No subdivision may issue bonds under this section inexcess of a sufficient amount to pay the indebtedness of thesubdivision as shown by division (B)(2) of this section and,except in the case of school districts, to provide funds fordisability financial assistance ~~and disability medical assistance~~, as shown bydivision (B)(3) of this section.

(E) The tax commissioner shall grant to such subdivisionauthority requested by such subdivision as restricted bydivisions (C) and (D) of this section and shall make a record ofthe certificate, statement, and grant in a record book devotedsolely to such recording and which shall be open to inspection bythe public.

(F) The commissioner shall immediately upon issuing theauthority provided in division (E) of this section notify theproper authority having charge of the retirement of bonds of suchsubdivision by forwarding a copy of such grant of authority andof the statement provided for in division (B) of this section.

(G) Upon receipt of authority, the subdivision shallproceed according to law to issue the amount of bonds authorizedby the commissioner, and authorized by the taxing authority,provided the taxing authority of that subdivision may byresolution submit to the electors of that subdivision thequestion of issuing such bonds. Such resolution shall make thedeclarations and statements required by section 133.18 of theRevised Code. The county auditor and taxing authority shallthereupon proceed as set forth in divisions (C) and (D) of suchsection. The election on the question of issuing such bondsshall be held under divisions (E), (F), and (G) of such section,except that publication of the notice of such election shall bemade on four separate days prior to such election in one or morenewspapers of general circulation in the subdivisions. Suchbonds may be exchanged at their face value with creditors of thesubdivision in liquidating the indebtedness described andenumerated in division (B)(2) of this section or may be sold asprovided in Chapter 133. of the Revised Code, and in either eventshall be uncontestable.

(H) The per cent of delinquent taxes and assessmentscollected for and to the credit of the subdivision after theexchange or sale of bonds as certified by the commissioner shallbe paid to the authority having charge of the sinking fund of thesubdivision, which money shall be placed in a separate fund forthe purpose of retiring the bonds so issued. The properauthority of the subdivisions shall provide for the levying of atax sufficient in amount to pay the debt charges on all suchbonds issued under this section.

(I) This section is for the sole purpose of assisting thevarious subdivisions in paying their unsecured indebtedness, andproviding funds for disability financial assistance ~~and disability medical assistance~~. The bonds issued under authorityof this section shall not beused for any other purpose and any exchange for other purposes,or the use of the money derived from the sale of such bonds bythe subdivision for any other purpose, is misapplication offunds.

(J) The bonds authorized by this section shall beredeemable or payable in not to exceed ten years from date ofissue and shall not be subject to or considered in calculatingthe net indebtedness of the subdivision. The budget commissionof the county in which the subdivision is located shall annuallyallocate such portion of the then delinquent levy due suchsubdivision which is unpledged for other purposes to the paymentof debt charges on the bonds issued under authority of thissection.

(K) The issue of bonds under this section shall begoverned by Chapter 133. of the Revised Code, respecting theterms used, forms, manner of sale, and redemption except asotherwise provided in this section.

The board of county commissioners of any county may issuebonds authorized by this section and distribute the proceeds ofsuch bond issues to any or all of the cities and townships ofsuch counties, according to their relative needs for disabilityfinancial assistance ~~and disability medical assistance~~ as determined by such county.

All sections of the Revised Code inconsistent with orprohibiting the exercise of the authority conferred by thissection are inoperative respecting bonds issued under thissection.

Sec. 133.08. (A) In addition to any power to issuesecurities under other provisions of the Revised Code for thepurposes, a county may issue revenue securities as authorized inthis section.

(B) A county may issue revenue securities to fund orrefund revenue securities previously issued, or for any purposesfor which it could issue self-supporting securities and, withoutlimitation, any of the following general purposes:

(1) For one or more established sewer districts, any ofthe purposes provided in divisions (C)(2)(a) and (b) of section133.07 of the Revised Code;

(2) Hospital facilities as defined in division (E) ofsection 140.01 of the Revised Code;

(3) Facilities described in division (C)(10) of section133.07 of the Revised Code;

(4) Off-street parking facilities pursuant to section307.02 of the Revised Code.

(C) The county shall establish rates or charges for theuse, availability, or rental of the facilities to which thefinancing relates, being the improvement, enterprise, system,project, or categories of improvements or the operation orfunction that the facilities serve, which rates or charges shallbe designed to provide revenues to the county sufficient to paythe costs of all current expenses of the facilities payable bythe county and to pay the debt charges on the securities and toestablish and maintain any contractually required special fundsrelating to the securities or the facilities.

(D) Revenue securities issued under this section shall notbe general obligations of the county. Revenue securities issuedunder this section shall be secured only by a pledge of and lienupon the revenues of the county, derived from its ownership oroperation of the facilities, including those rates or charges orrents and any interest subsidies or debt charges, grants, orother payments by federal or state agencies available therefor,and the covenants of the county to maintain sufficient rentals,rates, and charges to produce revenues sufficient to pay allcurrent expenses of the facilities payable by the county and topay the debt charges on the securities and to establish andmaintain any contractually required special funds relating to thesecurities or the facilities, and, if the securities areanticipatory securities, to issue the revenue securities inanticipation of the issuance of which the revenue securities areissued. Revenue securities may also be secured by a pledge ofand lien on the proceeds of any securities issued to fund orrefund those revenue securities.

(E) The county officers authorized by the county taxingauthority shall execute the necessary documents, including butnot limited to trust agreements and leases, to provide for thepledge, protection, and disposition of the pledged revenues fromwhich debt charges and any special fund deposits are to be paid.

(F) As long as any of these revenue securities, in eitheroriginal or refunded form, remain outstanding, except asotherwise provided in those documents, all parts of thefacilities the revenues from which are pledged, shall remainunder the control of the county taxing authority, whether anyparts of the facilities are leased to or operated by others orare in or thereafter come within the boundaries of any municipalcorporation, and the facilities shall remain subject to the powerand duty of the taxing authority to fix and collect rates orcharges or rents for the use of facilities.

(G) The authority to issue securities of the county underthis section for permanent improvements described in division(B)(2) of this section or division (C)(2)(d) of section 133.07 ofthe Revised Code may separately and independently be exercised bya board of county hospital trustees established under section339.02 of the Revised Code for those permanent improvements andrelated operations under the control of that board.

(H) Sections 9.98 to 9.983 of the Revised Code apply to securities issued under this section, notwithstanding any other provision in this chapter.

(1) "Anticipation notes" means notes issued inanticipation of the sales tax supported bonds authorized by thissection;

(2) "Authorizing proceedings" means theresolution, legislation, trust agreement, certification, andother agreements, instruments, and documents, as amended andsupplemented, authorizing, or providing for the security or saleor award of, sales tax supported bonds, and includes theprovisions set forth or incorporated in those bonds andproceedings;

(3) "County sales tax" means any sales tax levied by thetaxing authority of a county pursuant to section 5739.021 or5739.026 of the RevisedCode, and any tax levied bythat taxing authority upon storage, use, or consumption undersection 5741.021 or 5741.023 of theRevisedCode. However, "county salestax" does not include a sales tax subject to referendum or asales tax that was adopted as an emergency measure and issubject to initiative petition under section 5739.022 of theRevisedCode.

(4) "Sales tax supported bonds" means the salestax supported bonds authorized by this section, includinganticipation notes;

(5) "Refunding bonds" means sales tax supportedbonds issued to provide for the refunding of the sales taxsupported bonds referred to in this section as refundedobligations.

(B) The taxingauthority of a county which has levied a county sales tax forthe purpose of providing additional general revenues of thecounty pursuant to Chapter5739. of the RevisedCode may anticipate thereceipts of such tax and issue sales tax supported bonds of thecounty in the principal amount necessary to pay the costs offinancing any permanent improvement as defined in division(CC) of section 133.01 of theRevisedCode, or to refund any refundedobligations, provided that the taxing authority certifies thatthe annual debt charges on the sales tax supported bonds, or onthe sales tax supported bonds being anticipated by anticipationnotes, do not exceed the estimated annual county sales tax. Themaximum aggregate amount of sales tax supported bonds that maybe outstanding at any time in accordance with their terms shallnot exceed an amount which requires or is estimated to requirepayments from sales tax receipts of debt charges on the salestax supported bonds, or, in the case of anticipation notes,projected debt charges on the sales tax supported bondsanticipated, in any calendar year in an amount exceeding thecounty sales tax in anticipation of which the bonds oranticipation notes are issued as estimated by the fiscal officerbased on general sales tax receipts averaged for the prior twocalendar years prior to the year in which the sales taxsupported bonds are issued, and annualized for any increase inthe county sales tax which may have been levied in part duringsuch period or levied after such period. A taxing authority mayat any time issue renewal anticipation notes, issue sales taxsupported bonds to pay renewal anticipation notes, and, if itconsiders refunding expedient, issue refunding sales taxsupported bonds whether the refunded obligations have or havenot matured. The refunding sales tax supported bonds shall besold and the proceeds needed for such purpose applied in themanner provided in the authorizing proceedings of the taxingauthority. The maximum maturity of sales tax supported bondsshall be calculated by the fiscal officer in accordance withsection 133.20 of the RevisedCode, and such calculationshall be filed with the taxing authority of the county prior topassage of a bond authorizing resolution. If the county salestax pledged to the payment of the sales tax supported bonds hasa stated expiration date, the final principal maturity date ofthe sales tax supported bonds shall not extend beyond the finalyear of collection of the county sales tax pledged to thepayment of the sales tax supported bonds.

(C) Everyissue of sales tax supported bonds outstanding in accordancewith their terms shall be payable out of the sales tax receiptsreceived by the county or proceeds of sales tax supported bonds,renewal anticipation notes, or refunding sales tax supportedbonds which may be pledged for such payment in the authorizingproceedings. The pledge shall be valid and binding from thetime the pledge is made, and the county sales tax receipts andproceeds so pledged and thereafter received by the county shallimmediately be subject to the lien of that pledge without anyphysical delivery of the county sales tax receipts or proceedsor further act. The lien of any pledge is valid and binding asagainst all parties having claims of any kind in tort, contract,or otherwise against the county, whether or not such partieshave notice of the lien. Neither the resolution nor any trustagreement by which a pledge is created or further evidenced needbe filed or recorded except in the records of the taxingauthority.

(D) Sales taxsupported bonds issued under this section do not constitute adebt, or a pledge of the faith and credit, of the state, thecounty, or any other political subdivision of the state, and theholders or owners of the notes have no right to have taxeslevied by the general assembly or by the taxing authority of anypolitical subdivision of the state, including the taxingauthority of the county, for the payment of debt charges. Unless paid from other sources, sales tax supported bonds arepayable from the sales tax receipts pledged for their payment asauthorized by this section. All sales tax supported bonds shallcontain on their face a statement to the effect that the salestax supported bonds, as to debt charges, are not debts orobligations of the state and are not debts of any politicalsubdivision of the state, but, unless paid from other sources,are payable from the sales tax receipts pledged for theirpayment. The utilization and pledge of the sales tax receiptsand proceeds of sales tax supported bonds, renewal anticipationnotes, or refunding sales tax supported bonds for the payment ofdebt charges is determined by the general assembly to create aspecial obligation which is not a bonded indebtedness subject toSection 11 ofArticleXII,OhioConstitution.

(E) The salestax supported bonds shall bear such date or dates, shall beexecuted in the manner, and shall mature at such time or times,in the case of any anticipation notes not exceeding ten yearsfrom the date of issue of the original anticipation notes and inthe case of any sales tax supported bonds or of any refundingsales tax supported bonds, not exceeding the maximum maturitycertified to the taxing authority pursuant to division(B) of this section, all as theauthorizing proceedings may provide. The sales tax supportedbonds shall bear interest at such rates, or at variable rate orrates changing from time to time, in accordance with provisionsin the authorizing proceedings, be in suchdenominations and form, either coupon or registered, carry suchregistration privileges, be payable in such medium of paymentand at such place or places, and be subject to such terms ofredemption, as the taxing authority may authorize or provide. The sales tax supported bonds may be sold at public or privatesale, and at, or at not less than, the price or prices as thetaxing authority determines. If any officer whose signature ora facsimile of whose signature appears on any sales taxsupported bonds or coupons ceases to be such officer beforedelivery of the sales tax supported bonds or anticipation notes,the signature or facsimile shall nevertheless be sufficient forall purposes as if that officer had remained in office untildelivery of the sales tax supported bonds. Whether or not thesales tax supported bonds are of such form and character as tobe negotiable instruments underTitleXIII of theRevisedCode, the sales tax supportedbonds shall have all the qualities and incidents of negotiableinstruments, subject only to any provisions for registration. Neither the members of the board of the taxing authority nor anyperson executing the sales tax supported bonds shall be liablepersonally on the sales tax supported bonds or be subject to anypersonal liability or accountability by reason of theirissuance.

(F) Notwithstandingany other provision of this section, sections 9.98 to 9.983, 133.02, 133.70, and 5709.76, and division(A) of section 133.03 of theRevisedCode apply to the sales taxsupported bonds. Sales tax supported bonds issued under thissection need not comply with any other law applicable to notesor bonds but the authorizing proceedings may provide thatdivisions (B) to(E) of section 133.25 of theRevisedCode apply to the sales taxsupported bonds or anticipation notes.

(G) Any authorized proceedings may contain provisions, subject to anyagreements with holders as may then exist, which shall be a partof the contract with the holders, as to the pledging of any orall of the county's anticipated sales tax receipts to secure thepayment of the sales tax supported bonds; the use anddisposition of the sales tax receipts of the county; thecrediting of the proceeds of the sale of sales tax supportedbonds to and among the funds referred to or provided for in theauthorizing proceedings; limitations on the purpose to which theproceeds of the sales tax supported bonds may be applied and thepledging of portions of such proceeds to secure the payment ofthe sales tax supported bonds or of anticipation notes; theagreement of the county to do all things necessary for theauthorization, issuance, and sale of those notes anticipated insuch amounts as may be necessary for the timely payment of debtcharges on any anticipation notes; limitations on the issuanceof additional sales tax supported bonds; the terms upon whichadditional sales tax supported bonds may be issued and secured;the refunding of refunded obligations; the procedure by whichthe terms of any contract with holders may be amended, and themanner in which any required consent to amend may be given;securing any sales tax supported bonds by a trust agreement orother agreement; and any other matters, of like or differentcharacter, that in any way affect the security or protection ofthe sales tax supported bonds or anticipation notes.

(H) The taxingauthority of a county may not repeal, rescind, or reduce anyportion of a county sales tax pledged to the payment of debtcharges on sales tax supported bonds issued by the county whilesuch sales tax supported bonds remain outstanding, and noportion of a county sales tax pledged to the payment of debtcharges on sales tax supported bonds shall be subject to repealor reduction by the electorate of the county or by the taxingauthority of the county while such sales tax supported bonds areoutstanding.

Sec. 133.09. (A) Unless it is a township that hasadopted a limited home rule government under Chapter 504. of theRevised Code, a township shall not incur netindebtedness that exceeds anamount equal to five per cent of its tax valuation and, except asspecifically authorized by section 505.262 of the Revised Code or other laws,shall not incur any net indebtedness unless authorized by vote of theelectors.

(B) A township thathas adopted a limited home rule government underChapter 504. of the Revised Code shall not incur netindebtedness that exceeds an amount equal to ten and one-halfper cent of its tax valuation, or incur without a vote of theelectors net indebtedness that exceeds an amount equal to fiveand one-half per cent of that tax valuation. In calculating thenet indebtedness of a township that has adopted a limited homerule government, none of the following securities shall beconsidered:

(2) Securities issued for the purpose of purchasing,constructing, improving, or extending water or sanitary orsurface and storm water sewerage systems or facilities, or acombination of those systems or facilities, to the extent thatan agreement entered into with another subdivision requires theother subdivision to pay to the township amounts equivalent todebt charges on the securities;

(4) Voted securities issued for the purposes ofredevelopment to the extent that their principal amount does notexceed an amount equal to two per cent of the tax valuation ofthe township;

(5) Securities issued for the purpose of acquiring orconstructing roads, highways, bridges, or viaducts, or for thepurpose of acquiring or making other highway permanentimprovements, to the extent that the resolution of the board of townshiptrustees authorizing the issuance of the securities includes a covenantto appropriate from money distributed to the township underChapter 4501., 4503.,4504., or 5735. of the Revised Code a sufficient amount tocover debt charges on and financing costs relating to thesecurities as they become due;

(6) Securities issued for energy conservation measuresunder section 505.264 of the Revised Code.

(C) In calculating the net indebtedness of anytownship, no obligation incurredunder division (B) of section 513.17 or under section 505.261, 505.264,505.265, 505.267, or 505.37 of the Revised Code, or in connection with a project undertaken pursuant to Section 515.03 of H.B. 66 of the 126th General Assembly,shall be considered.

(A)"Hospital agency" means any public hospital agency oranynonprofit hospital agency.

(B)"Public hospital agency" means any county, board ofcounty hospital trustees established pursuant to section 339.02ofthe Revised Code, county hospital commission establishedpursuantto section 339.14 of the Revised Code, municipalcorporation,newcommunity authority organized under Chapter 349. of the RevisedCode, joint township hospital district, state or municipaluniversity orcollege operating or authorized to operate ahospital facility, or the state.

(C)"Nonprofit hospital agency" means a corporation orassociation not for profit, no part of the net earnings of whichinures or may lawfully inure to the benefit of any privateshareholder or individual, that has authority to own or operate ahospital facility or provides or is to provide services to one ormore other hospital agencies.

(D)"Governing body" means, in the case of a county, theboard of county commissioners or other legislative body; in thecase of a board of county hospital trustees, the board; in thecase of a county hospital commission, the commission; in the caseof a municipal corporation, the council or other legislativeauthority;in the case of a new community authority, its board oftrustees; in the case of a joint township hospital district, thejoint township district hospital board; in the case of a state ormunicipal university or college, its board of trustees or boardofdirectors; in the case of a nonprofit hospital agency, theboardof trustees or other body having general managementof theagency; and,in the case of the state, the director ofdevelopmentor the Ohiohigher educational facility commission.

(E)"Hospital facilities" means buildings, structures andother improvements, additions thereto and extensions thereof,furnishings, equipment, and real estate and interests in realestate, used or to be used for or in connection with one or morehospitals, emergency, intensive, intermediate, extended,long-term, or self-care facilities, diagnostic and treatment andout-patient facilities, facilities related to programs for homehealth services, clinics, laboratories, public health centers,research facilities, and rehabilitation facilities, for orpertaining to diagnosis, treatment, care, or rehabilitation ofsick, ill, injured, infirm, impaired, disabled, or handicappedpersons, or the prevention, detection, and control of disease,andalso includes education, training, and food servicefacilities forhealth professions personnel, housing facilitiesfor suchpersonnel and their families, and parking and servicefacilitiesin connection with any of the foregoing; and includesany one,part of, or any combination of the foregoing; andfurther includessite improvements, utilities, machinery,facilities, furnishings,and any separate or connected buildings,structures, improvements,sites, utilities, facilities, orequipment to be used in, or inconnection with the operation ormaintenance of, or supplementingor otherwise related to theservices or facilities to be providedby, any one or more of suchhospital facilities.

(F)"Costs of hospital facilities" means the costs ofacquiring hospital facilities or interests in hospital facilities, including membership interests in nonprofit hospital agencies, costs of constructing hospital facilities, costs of improving one or more hospital facilities, including reconstructing,rehabilitating, remodeling, renovating, and enlarging, costs ofequipping and furnishing such facilities, and all financing costspertaining thereto, including, without limitation thereto, costsof engineering, architectural, and other professional services,designs, plans, specifications and surveys, and estimates ofcost,costs of tests and inspections, the costs of any indemnityorsurety bonds and premiums on insurance, all related direct orallocable administrative expenses pertaining thereto, fees andexpenses of trustees, depositories, and paying agents for theobligations, cost of issuance of the obligations and financingcharges and fees and expenses of financial advisors, attorneys,accountants, consultants and rating services in connectiontherewith, capitalized interest on the obligations, amountsnecessary to establish reserves as required by the bondproceedings, the reimbursement of all moneys advanced or appliedby the hospital agency or others or borrowed from others for thepayment of any item or items of costs of such facilities, and allother expenses necessary or incident to planning or determiningfeasibility or practicability with respect to such facilities,andsuch other expenses as may be necessary or incident to theacquisition, construction, reconstruction, rehabilitation,remodeling, renovation, enlargement, improvement, equipment, andfurnishing of such facilities, the financing thereof, and theplacing of the same in use and operation, including any one, partof, or combination of such classes of costs and expenses, and means the costs of refinancing obligations issued by, or reimbursement of money advanced by, nonprofit hospital agencies or others the proceeds of which were used for the payment of costs of hospital facilities, if the governing body of the public hospital agency determines that the refinancing or reimbursement advances the purposes of this chapter, whether or not the refinancing or reimbursement is in conjunction with the acquisition or construction of additional hospital facilities.

(G)"Hospital receipts" means all moneys received by or onbehalf of a hospital agency from or in connection with theownership, operation, acquisition, construction, improvement,equipping, or financing of any hospital facilities, including,without limitation thereto, any rentals and other moneys receivedfrom the lease, sale, or other disposition of hospitalfacilities,and any gifts, grants, interest subsidies, or othermoneysreceived under any federal program for assistance infinancing thecosts of hospital facilities, and any other gifts,grants, anddonations, and receipts therefrom, available forfinancing thecosts of hospital facilities.

(H)"Obligations" means bonds, notes, or other evidencesofindebtedness or obligation, including interest couponspertainingthereto, issued or issuable by a public hospitalagency to paycosts of hospital facilities.

(I)"Bond service charges" means principal, interest, andcall premium, if any, required to be paid on obligations.

(J)"Bond proceedings" means one or more ordinances,resolutions, trust agreements, indentures, and other agreementsordocuments, and amendments and supplements to the foregoing, oranycombination thereof, authorizing or providing for the terms, including any variable interest rates, and conditions applicableto, or providing for the security of, obligations and theprovisions contained in such obligations.

(K)"Nursing home" has the same meaning as in division(A)(1)of section 5701.13 of the Revised Code.

(L)"Residential care facility" has the same meaning as indivision (A)(2)of section 5701.13 of the Revised Code.

(M)"Adult care facility" has the same meaning as indivision(A)(3) of section 5701.13 of the Revised Code.

(N)"Independent living facility" means any self-carefacility or other housing facility designed or used as aresidencefor elderly persons. An"independent living facility"does notinclude a residential facility, or that part of aresidentialfacility, that is any of the following:

~~(6)~~ A residential facility for the mentally ill licensedbythe department of mental health under section 5119.22 of theRevised Code;

~~(7)~~(6) A facility licensed to provide methadone treatmentundersection 3793.11 of the Revised Code;

~~(8)~~(7) A facility certified as an alcohol and drug addictionprogram undersection 3793.06 of the Revised Code;

~~(9)~~(8) A residential facility licensed under section 5123.19ofthe Revised Code or a facility providing services under acontractwith the department of mental retardation anddevelopmentaldisabilities under section 5123.18 of the RevisedCode;

~~(10)~~(9) A residential facility used as part of a hospital toprovide housing for staff of the hospital or students pursuing acourse of study at the hospital.

Sec. 141.011. Beginning in calendar year 2001, the annualsalaries of the elective officers of the state shall be asfollowsrather than as prescribed by divisions (A) to (F) of section141.01 of the Revised Code:

(A)(1) In calendar year 2001 the annual salary of thegovernor shall be one hundred twenty-six thousand four hundredninety-seven dollars.

(2) In calendar years 2002 through 2006 the annual salaryof the governorshall be one hundred thirtythousand two hundredninety-two dollars.

(3) In calendar year 2007 the annual salary of the governorshallbethe annual salary in 2006 increased by each of thefollowing percentagesin succession:

(a) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2001, toSeptember 30, 2002, rounded to thenearest one-tenth of one percent;

(b) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2002, toSeptember 30, 2003, rounded to thenearest one-tenth of one percent;

(c) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2003, toSeptember 30, 2004, rounded to thenearest one-tenth of one percent;

(d) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2004, toSeptember 30, 2005, rounded to thenearest one-tenth of one percent;

(e) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2005, toSeptember 30, 2006, rounded to thenearest one-tenth of one percent.

(4) In calendar year 2008 and thereafter, the annual salaryofthe governor shall be the annual salary in 2007 increased bythe lesserof the following:

(b) The percentage increase, if any, in the consumer priceindexfrom October 1, 2006, to September 30, 2007, rounded to thenearest one-tenth of one per cent.

(B)(1) In calendar year 2001 the annual salary of thelieutenantgovernorshall be sixty-six thousand threehundred sixdollars.

(2) In calendar years 2002 through 2006 the annual salaryof thelieutenant governor shall be sixty-eight thousand twohundred ninety-five dollars.

(3) In calendaryear 2007 the annual salary of the lieutenantgovernorshall be the annual salary in 2006 increased by each ofthe followingpercentages in succession:

(a) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2001, toSeptember 30, 2002, rounded to thenearest one-tenth of one percent;

(b) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2002, toSeptember 30, 2003, rounded to thenearest one-tenth of one percent;

(c) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2003, toSeptember 30, 2004, rounded to thenearest one-tenth of one percent;

(d) The lesser of three per cent or the percentageincrease, ifany, in the consumer price index from October 1,2004, toSeptember 30, 2005, rounded to thenearest one-tenth ofone per cent;

(e) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2005, toSeptember 30, 2006, rounded to thenearest one-tenth of one percent.

(4) In calendar year 2008 and thereafter, the annual salaryofthe lieutenant governor shall be the annual salary in 2007increased by the lesser of the following:

(b) The percentage increase, if any, in the consumer priceindexfrom October 1, 2006 to September 30, 2007, rounded to thenearest one-tenth of one per cent.

If the governor appoints the lieutenant governor as anadministrativedepartment head ~~or as the director of the office ofcriminal justiceservices under section 108.05 of the RevisedCode~~, the lieutenant governormay acceptthe salary for thatoffice while serving as its head in lieu of the salary fortheoffice of lieutenant governor.

(C)(1) In calendar year 2001 the annual salary of thesecretary ofstate,auditor of state, treasurer of state, andattorney general shall be ninety-three thousand four hundredforty-sevendollars.

(2) In calendar year 2002 theannualsalary of thesecretary of state, auditor of state, treasurer of state, andattorney generalshall be ninety-six thousand twohundred fiftydollars.

(3) In each calendar year from 2003 through 2008, the annualsalary of the secretary of state, auditor of state, treasurer ofstate, and attorney general shall be increased bythe lesser ofthe following:

(b) The percentage increase, if any, in the consumer priceindexover the twelve-month period that ends on the thirtieth dayofSeptember of the immediately preceding year, rounded to thenearest one-tenth of one per cent.

(D) Upon the death of an elected executive officer of thestate listed in divisions (A) to (F) of section 141.01 of theRevised Code during that person's term of office, an amount shallbe paid in accordance with section 2113.04 of the Revised Code, orto thatperson's estate. The amount shall equal the amount of thesalary that theofficer would have received during the remainderof the officer's unexpiredterm or an amount equal to the salaryof that person's office for two years,whichever is less.

(E) As used in this section, "consumer price index" has thesamemeaning as in section 101.27 of the Revised Code.

Sec. 141.04. (A) The annual salaries of the chief justiceof the supreme court and of the justices and judges named in thissection payable from the state treasury are as follows, rounded tothe nearest fifty dollars:

(1) For the chief justice of the supreme court, thefollowing amounts effective in the following years:

(a) Beginning January 1, 2000, one hundred twenty-fourthousand nine hundred dollars;

(b) Beginning January 1, 2001, one hundred twenty-eightthousand six hundred fifty dollars;

(2) For the justices of the supreme court, the followingamounts effective in the following years:

(a) Beginning January 1, 2000, one hundred seventeenthousand two hundred fifty dollars;

(b) Beginning January 1, 2001, one hundred twentythousand seven hundred fifty dollars;

(3) For the judges of the courts of appeals, thefollowingamounts effective in the following years:

(a) Beginning January 1, 2000, one hundred ninethousand two hundred fifty dollars;

(b) Beginning January 1, 2001, one hundred twelvethousand five hundred fifty dollars;

(4) For the judges of the courts of common pleas, the following amountseffective in the following years:

(a) Beginning January 1, 2000, one hundred thousand fivehundred dollars, reduced by an amount equal to the annual compensation paid tothat judge from the county treasury pursuant to section 141.05 of theRevised Code;

(b) Beginning January 1, 2001, one hundredthree thousand five hundred dollars, reduced by an amount equal to the annualcompensation paid to that judge from the county treasurypursuant to section 141.05 of the Revised Code;

(c) After 2001, the aggregate annual salary amountdeterminedunder division (E)(2) of this section reduced by an amount equalto the annual compensation paid to that judge from the county treasurypursuant to section 141.05of the Revised Code.

(5) For the full-time judges of a municipal court or thepart-time judges of a municipal court of a territory having apopulation of more than fifty thousand, the following amountseffective in the following years, which amounts shall be inaddition to all amounts received pursuant to divisions (B)(1)(a)and (2) of section 1901.11 of the Revised Code frommunicipal corporations and counties:

(6) For judges of a municipal court designated as part-time judges bysection 1901.08 of the Revised Code, other than part-time judges to whomdivision(A)(5) of this section applies, and for judges of a county court, thefollowing amounts effective in the following years, which amounts shall be inaddition to any amounts received pursuant to division(A) of section 1901.11 of the Revised Code from municipal corporations andcountiesor pursuant to division (A) of section 1907.16 of the Revised Codefrom counties:

(B) Except as provided in section 1901.121 of the RevisedCode, except as otherwise provided in this division, andexcept for the compensation to which the judgesdescribed in division (A)(5) of this section are entitledpursuant to divisions (B)(1)(a) and (2) ofsection 1901.11of the Revised Code, the annual salary of the chief justice of the supremecourt and of each justice or judge listed indivision (A) of this section shall be paid in equal monthlyinstallments from the state treasury. If the chief justice of thesupreme courtor any justice or judge listed in division (A)(2),(3), or (4) of thissection delivers a written request to be paid biweekly to the administrativedirector of the supreme court prior to the first day of Januaryof any year, the annual salary of the chief justice or thejustice or judge that is listed indivision (A)(2), (3), or (4) of this section shallbe paid, during the yearimmediately following the year in which the request is deliveredto the administrative director of the supreme court, biweekly from thestate treasury.

(C) Upon the death of the chief justice or a justice ofthe supreme court during that person's term of office, an amount shall be paidin accordance with section 2113.04 of the Revised Code, or to that person'sestate. The amount shall equal the amount of the salary that the chiefjustice or justice would have received during theremainder of the unexpired term or an amount equal to the salary ofoffice for two years, whichever is less.

(D) Neither the chief justice of the supreme court nor any justice orjudge of the supreme court, the court of appeals, the court ofcommon pleas, or the probate court shall hold any other office oftrust or profit under the authority of this state or the UnitedStates.

(E)(1) Each calendar year from 2002through2008, the annual salaries of the chief justice of the supreme court and of thejustices and judges named in divisions (A)(2) and (3) of this sectionshall be increased by an amount equal to the adjustment percentage for thatyear multiplied by the compensation paid the preceding year pursuant todivision (A)(1), (2), or (3) of this section.

(2) Each calendar year from 2002 through 2008, the aggregateannual salary payable under division (A)(4) of this section to thejudges named in that division shall be increased by an amountequal to the adjustment percentage for that year multiplied by theaggregate compensation paid the preceding year pursuant todivision (A)(4) of this section and section 141.05 of theRevised Code.

(3) Each calendar year from 2002 through 2008, the salary payablefrom the state treasury under division (A)(5) of this section tothe judges named in that division shall be increased by an amount equal to theadjustment percentage for that yearmultiplied by the aggregate compensation paid the preceding year pursuantto division (A)(5) of this section and division (B)(1)(a)of section 1901.11 of the Revised Code.

(4) Each calendar year from 2002 through 2008, the salary payablefrom the state treasury under division (A)(6) of this section tothe judges named in that division shall be increased by an amount equal to theadjustment percentage for that yearmultiplied by the aggregate compensation paid the preceding year pursuantto division (A)(6) of this section and division (A) ofsection 1901.11 of the Revised Code from municipalcorporationsand counties or division (A) of section 1907.16 of theRevisedCode from counties.

(F) In addition to the salaries payable pursuant to this section, the chief justice of the supreme court and the justices of the supreme court shall be entitled to a vehicle allowance of five hundred dollars per month, payable from the state treasury. The allowance shall be increased on the first day of January of each odd numbered year by an amount equal to the percentage increase, if any, in the consumer price index for the immediately preceding twenty-four month period for which information is available.

(b) The percentage increase, if any, in the consumer priceindexover the twelve-month period that ends on the thirtieth day ofSeptember of the immediately preceding year, rounded to thenearest one-tenth of one per cent.

(2) "Consumer price index" has the same meaning as in section101.27 of the Revised Code.

(3) "Salary" does not include anyportion of the cost, premium, or charge for health, medical,hospital, dental, or surgical benefits, or any combination ofthose benefits, covering the chief justice of the supreme courtor a justice or judge named in this section and paid on the chiefjustice's or the justice's or judge's behalf by a governmentalentity.

(1) Any person holding an office, not elective, under thestate or anycounty, township, municipal corporation, parkdistrict, conservancy district,sanitary district, healthdistrict, metropolitan housing authority, stateretirement board,Ohio historical society, public library, county law library,unioncemetery, joint hospital, institutional commissary, stateuniversity, orboard, bureau, commission, council, committee,authority, or administrativebody as the same are, or have been,created by action of the general assemblyor by the legislativeauthority of any of the units of local government namedindivision (A)(1) of this section, or employed andpaid in whole orin part by the state or anyof the authorities named in division(A)(1) of thissection in any capacity not covered bysection742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.

(2) A person who is a member of the public employeesretirement systemand whocontinues to perform the same or similarduties under the direction of acontractor who has contracted totake over what before the date of thecontract was a publiclyoperated function. The governmental unit with whichthe contracthas been made shall be deemed the employer for the purposes ofadministering this chapter.

(3) Any person who is an employee of a public employer,notwithstanding thatthe person's compensation for that employmentis derived from funds of aperson or entity other than theemployer. Credit for such service shall beincluded as totalservice credit, provided that the employee makes thepaymentsrequired by this chapter, and the employer makes the paymentsrequired by sections 145.48 and 145.51 of the Revised Code.

(4) A person who elects in accordance with section 145.015of the RevisedCode to remain a contributing member of the publicemployees retirementsystem.

In all cases of doubt, the public employees retirement boardshall determinewhether any person is a public employee, and itsdecision is final.

(B) "Member" means any public employee, other than a publicemployee excludedor exempted from membership in the retirementsystem by section 145.03,145.031, 145.032, 145.033, 145.034,145.035, or 145.38 of the Revised Code. "Member" includes a PERSretirant who becomes a member under division(C) of section 145.38of the Revised Code. "Member" also includes adisability benefitrecipient.

(C) "Head of the department" means the elective orappointive head of theseveral executive, judicial, andadministrative departments, institutions,boards, and commissionsof the state and local government as the same arecreated anddefined by the laws of this state or, in case of a chartergovernment, by that charter.

(D) "Employer" or "public employer" means the state or anycounty, township,municipal corporation, park district,conservancy district, sanitary district,health district,metropolitan housing authority, state retirement board, Ohiohistorical society, public library, county law library, unioncemetery, jointhospital, institutional commissary, state medicalcollege, state university,or board, bureau, commission, council,committee, authority, or administrativebody as the same are, orhave been, created by action of the general assemblyor by thelegislative authority of any of the units of local governmentnamedin this division not covered by section 742.01, 3307.01,3309.01, or 5505.01 of the RevisedCode. In addition, "employer"means the employer of any public employee.

(E) "Prior service" means all service as a public employeerendered beforeJanuary 1, 1935, and all service as an employee ofany employer who comeswithin the state teachers retirement systemor of the school employeesretirement system or of any otherretirement system established under the lawsof this staterendered prior to January 1, 1935, provided that if the employeeclaiming the service was employed in any capacity covered by thatother systemafter that other system was established, credit forthe service may be allowedby the public employees retirementsystem only when the employee has madepayment, to be computed onthe salary earned from the date of appointment tothe datemembership was established in the public employees retirementsystem,at the rate in effect at the time of payment, and theemployer has madepayment of the corresponding full liability asprovided by section 145.44 ofthe Revised Code. "Prior service"also means all service credited for activeduty with the armedforces of the United States as provided in section 145.30of theRevised Code.

If an employee who has been granted prior service credit bythe publicemployees retirement system for service rendered priorto January 1, 1935, asan employee of a board of educationestablishes, before retirement, one yearor more of contributingservice in the state teachers retirement system orschoolemployees retirement system, then the prior service ceases to betheliability of this system.

If the board determines that a position of any member in anycalendar yearprior to January 1, 1935, was a part-time position,the board shall determinewhat fractional part of a year's creditshall be allowed by the followingformula:

(1) When the member has been either elected or appointed toan office theterm of which was two or more years and for which anannual salary isestablished, the fractional part of the year'scredit shall be computed asfollows:

First, when the member's annual salary is one thousanddollars or less, theservice credit for each such calendar yearshall be forty per cent of a year.

Second, for each full one hundred dollars of annual salaryabove one thousanddollars, the member's service credit for eachsuch calendar year shall beincreased by two and one-half percent.

(2) When the member is paid on a per diem basis, the servicecredit for anysingle year of the service shall be determined byusing the number of days ofservice for which the compensation wasreceived in any such year as anumerator and using two hundredfifty days as a denominator.

(3) When the member is paid on an hourly basis, the servicecredit for anysingle year of the service shall be determined byusing the number of hours ofservice for which the compensationwas received in any such year as anumerator and using twothousand hours as a denominator.

(F) "Contributor" means any person who has an account in theemployees'savings fund created by section 145.23 of the RevisedCode. When used inthe sections listed in division (B) of section145.82 of theRevised Code, "contributor" includes any personparticipating in aPERS defined contribution plan.

(G) "Beneficiary" or "beneficiaries" means the estate or aperson or personswho, as the result of the death of a member,contributor, or retirant, qualifyfor or are receiving some rightor benefit under this chapter.

(H)(1) "Total service credit," except as provided in section145.37 of theRevised Code, means all service credited to a memberof the retirement systemsince last becoming a member, includingrestored service credit as provided bysection 145.31 of theRevised Code; credit purchased under sections 145.293and 145.299of the Revised Code; all the member's prior service credit; allthe member's military service credit computed as provided in thischapter; allservice credit established pursuant to section145.297 of the Revised Code;and any other service credited underthis chapter. In addition, "totalservice credit" includes anyperiod, not in excess of three years, duringwhich a member wasout of service and receiving benefits under Chapters 4121.and4123. of the Revised Code. For the exclusive purpose ofsatisfying theservice credit requirement and of determiningeligibility for benefits undersections 145.32, 145.33, 145.331,145.35, 145.36, and 145.361 of the RevisedCode, "five or moreyears of total service credit" means sixty or morecalendar monthsof contributing service in this system.

(2) "One and one-half years of contributing servicecredit,"as used in division (B) of section 145.45 of the RevisedCode,also means eighteen or more calendar months of employmentby amunicipal corporation that formerly operated its ownretirementplan for its employees or a part of its employees,provided thatall employees of that municipal retirement plan who haveeighteenor more months of such employment, uponestablishing membership inthe public employees retirementsystem, shall make a payment ofthe contributions they would have paidhad they been members ofthis system for the eighteen months ofemployment preceding thedate membership was established. Whenthat payment has been madeby all such employeemembers, acorresponding payment shall bepaid into the employers'accumulation fund by that municipalcorporation as the employerof the employees.

(3) Where a member also is a member of the state teachersretirement systemor the school employees retirement system, orboth, except in cases ofretirement on a combined basis pursuantto section 145.37 of the Revised Codeor as provided in section145.383 of the Revised Code,service credit for any period shallbe credited on the basis of the ratio thatcontributions to thepublic employees retirement systembear to totalcontributions inall state retirement systems.

(4) Not more than one year of credit may be given for anyperiod of twelvemonths.

(5) "Ohio service credit" means credit for service that wasrendered to thestate or any of its political subdivisions or anyemployer.

(I) "Regular interest" means interest at any rates for therespective funds and accounts as the public employees retirementboard maydetermine from time to time.

(J) "Accumulated contributions" means the sum of allamountscredited to a contributor's individual account in theemployees'savings fund together with any interestcredited to thecontributor's account under section 145.471 or 145.472 of theRevised Code.

(K)(1) "Final average salary" means the quotient obtainedbydividing by three the sum of the three full calendar years ofcontributing service in which the member's earnable salary washighest, except that if the member has a partial year ofcontributing service in the year the member's employmentterminates and the member's earnable salary for the partial yearis higherthan for any comparable period in the three years, themember's earnablesalary for the partial year shall be substitutedfor the member's earnablesalary for the comparable period duringthe three years in which the member'searnable salary was lowest.

(2) If a member has less than three years of contributingservice, themember's final average salary shall be the member'stotal earnable salarydivided by the total number of years,including any fraction of a year, of themember's contributingservice.

(3) For the purpose of calculating benefits payable to amember qualifying for service credit under division (Z) of thissection, "final average salary" means the total earnable salaryonwhich contributions were made divided by the total number ofyearsduring which contributions were made, including anyfraction of ayear. If contributions were made for less thantwelve months,"final average salary" means the member's totalearnable salary.

(L) "Annuity" means payments for life derived fromcontributions made by acontributor and paid from the annuity andpension reserve fund as provided inthis chapter. All annuitiesshall be paid in twelve equal monthlyinstallments.

(M) "Annuity reserve" means the present value, computed uponthe basis of themortality and other tables adopted by the board,of all payments to be made onaccount of any annuity, or benefitin lieu of any annuity, granted to aretirant as provided in thischapter.

(N)(1) "Disability retirement" means retirement as providedin section 145.36of the Revised Code.

(2) "Disability allowance" means an allowance paid onaccount of disabilityunder section 145.361 of the Revised Code.

(3) "Disability benefit" means a benefit paid as disabilityretirement undersection 145.36 of the Revised Code, as adisability allowance under section145.361 of the Revised Code, oras a disability benefit under section 145.37of the Revised Code.

(4) "Disability benefit recipient" means a member who isreceiving adisability benefit.

(O) "Age and service retirement" means retirement asprovided in sections145.32, 145.33, 145.331, 145.34, 145.37, and145.46 of the Revised Code.

(P) "Pensions" means annual payments for life derived fromcontributions madeby the employer that at the time of retirementare credited into the annuityand pension reserve fund from theemployers' accumulation fund and paid fromthe annuity and pensionreserve fund as provided in this chapter. Allpensions shall bepaid in twelve equal monthly installments.

(Q) "Retirement allowance" means the pension plus thatportion of the benefitderived from contributions made by themember.

(R)(1) Except as otherwise provided in division (R)of thissection, "earnable salary" meansall salary, wages, and otherearnings paid to a contributor by reason ofemployment in aposition covered by the retirement system. The salary, wages,andother earnings shall be determined prior to determination of theamountrequired to be contributed to the employees' savings fundunder section 145.47of the Revised Code and without regard towhether any of the salary, wages, orother earnings are treated asdeferred income for federal income taxpurposes. "Earnablesalary" includes the following:

(a) Payments made by the employer in lieu of salary, wages,or other earningsfor sick leave, personal leave, or vacation usedby the contributor;

(b) Payments made by the employer for the conversion of sickleave, personalleave, and vacation leave accrued, but not used ifthe payment is madeduringthe year in which the leave is accrued,except that payments made pursuant tosection 124.383 or 124.386of the Revised Code are not earnable salary;

(c) Allowances paid by the employer for full maintenance,consisting ofhousing, laundry, and meals, as certified to theretirement board by theemployer or the head of the departmentthat employs the contributor;

(e) Payments that are made under a disability leave programsponsored by theemployer and for which the employer is requiredby section 145.296 of theRevised Code to make periodic employerand employee contributions;

(a) Fees and commissions, other than those paid undersection 507.09 of theRevised Code, paid as sole compensation forpersonal services and fees andcommissions for special servicesover and above services for which thecontributor receives asalary;

(b) Amounts paid by the employer to provide life insurance,sickness,accident, endowment, health, medical, hospital, dental,or surgical coverage,or other insurance for the contributor orthe contributor's family, or amountspaid by the employer to thecontributor in lieu of providing the insurance;

(c) Incidental benefits, including lodging, food, laundry,parking, orservices furnished by the employer, or use of theemployer's property orequipment, or amounts paid by the employerto the contributor in lieu ofproviding the incidental benefits;

(d) Reimbursement for job-related expenses authorized by theemployer,including moving and travel expenses and expensesrelated to professionaldevelopment;

(e) Payments for accrued but unused sick leave, personalleave, orvacationthat are made at any time other than in theyear in which the sick leave,personal leave, or vacation wasaccrued;

(f) Payments made to or on behalf of a contributor that arein excess of theannual compensation that may be taken intoaccount by the retirement systemunder division (a)(17) of section401 of the "Internal Revenue Code of 1986,"100 Stat. 2085, 26U.S.C.A. 401(a)(17), as amended;

(g) Payments made under division (B), (C), or (E) of section5923.05 of the RevisedCode, Section 4 of Substitute Senate BillNo. 3 of the 119th generalassembly, Section 3 of AmendedSubstitute Senate BillNo. 164 of the 124th general assembly, orAmended Substitute House Bill No. 405 of the 124th generalassembly;

(h) Anything of value received by the contributor that isbased on orattributable to retirement or an agreement to retire,except that paymentsmade on or before January 1, 1989, that arebased on or attributable to anagreement to retire shall beincluded in earnable salary if both of thefollowing apply:

(i) The payments are made in accordance with contractprovisions that were ineffect prior to January 1, 1986;

(ii) The employer pays the retirement system an amountspecified by theretirement board equal to the additionalliability resulting from thepayments.

(3) The retirement board shall determine by rule whether anycompensation notenumerated in division (R) of this section isearnable salary, and its decision shall befinal.

(S) "Pension reserve" means the present value, computed uponthe basis of themortality and other tables adopted by the board,of all payments to be made onaccount of any retirement allowanceor benefit in lieu of any retirementallowance, granted to amember or beneficiary under this chapter.

(T)(1) "Contributing service" means all service credited toa member of thesystem since January 1, 1935, for whichcontributions are made as required bysections 145.47, 145.48, and145.483 of the Revised Code. In any yearsubsequent to 1934,credit for any service shall be allowed by the followingformula:

(a) For each month for which the member's earnable salary istwo hundredfifty dollars or more, allow one month's credit.

(b) For each month for which the member's earnable salary isless than twohundred fifty dollars, allow a fraction of a month'scredit. The numerator ofthis fraction shall be the earnablesalary during the month, and thedenominator shall be two hundredfifty dollars, except that if the member'sannual earnable salaryis less than six hundred dollars, the member's creditshall not bereduced below twenty per cent of a year for a calendar year ofemployment during which the member worked each month. Division(T)(1)(b) of this section shall notreduce any credit earnedbefore January 1, 1985.

(2) Notwithstanding division (T)(1) of this section, anelected official whoprior to January 1, 1980, was granted a fullyear of credit for each year ofservice as an elected officialshall be considered to have earned a full yearof credit for eachyear of service regardless of whether the service wasfull-time orpart-time. The public employees retirement board has noauthorityto reduce the credit.

(U) "State retirement board" means the public employeesretirement board, theschool employees retirement board, or thestate teachers retirement board.

(V) "Retirant" means any former member who retires and isreceiving a monthlyallowance as provided in sections 145.32,145.33, 145.331, 145.34, and 145.46of the Revised Code.

(W) "Employer contribution" means the amount paid by anemployer asdetermined under section 145.48 of the RevisedCode.

(X) "Public service terminates" means the last day for whicha publicemployee is compensated for services performed for anemployer or the date ofthe employee's death, whichever occursfirst.

(Y) When a member has been elected or appointed to anoffice, the term ofwhich is two or more years, for which anannual salary is established, and inthe event that the salary ofthe office is increased and the member is deniedthe additionalsalary by reason of any constitutional provision prohibiting anincrease in salary during a term of office, the member may electto have theamount of the member's contributions calculated uponthe basis of theincreased salary for the office. At the member'srequest, the board shallcompute the total additional amount themember would have contributed, or theamount by which each of themember's contributions would have increased, hadthe memberreceived the increased salary for the office the member holds. Ifthe member elects to have the amount by which the member'scontribution wouldhave increased withheld from the member'ssalary, the member shall notify theemployer, and the employershall make the withholding and transmit it to theretirementsystem. A member who has not elected to have that amount withheldmay elect at any time to make a payment to the retirement systemequal to theadditional amount the member's contribution wouldhave increased, plusinterest on that contribution, compoundedannually at a rate established bythe board and computed from thedate on which the last contribution would havebeen withheld fromthe member's salary to the date of payment. A member maymake apayment for part of the period for which the increasedcontribution wasnot withheld, in which case the interest shall becomputed from the date thelast contribution would have beenwithheld for the period for which thepayment is made. Upon thepayment of the increased contributions as providedin thisdivision, the increased annual salary as provided by law for theoffice for the period for which the member paid increasedcontributionsthereon shall be used in determining the member'searnable salary for thepurpose of computing the member's finalaverage salary.

(Z) "Five years of service credit," for the exclusivepurpose of satisfyingthe service credit requirements and ofdetermining eligibility for benefitsunder section 145.33 of theRevised Code, means employment covered under thischapter or undera former retirement plan operated, recognized, or endorsed bytheemployer prior to coverage under this chapter or under acombination ofthe coverage.

(AA) "Deputy sheriff" means any person who is commissionedand employed as afull-time peace officer by the sheriff of anycounty, and has been so employedsince on or before December 31,1965, and whose primary duties are to preservethe peace, toprotect life and property, and to enforce the laws of thisstate;any person who is or has been commissioned and employed as a peaceofficer by the sheriff of any county since January 1, 1966, andwho hasreceived a certificate attesting to the person'ssatisfactory completion ofthe peace officer training school asrequired by section 109.77 of the RevisedCode and whose primaryduties are to preserve the peace, protect life andproperty, andenforce the laws of this state; or any person deputized by thesheriff of any county and employed pursuant to section 2301.12 ofthe RevisedCode as a criminal bailiff or court constable who hasreceived a certificateattesting to the person's satisfactorycompletion of the peace officertraining school as required bysection 109.77 of the Revised Code and whoseprimary duties are topreserve the peace, protect life and property, andenforce thelaws of this state.

(BB) "Township constable or police officer in a townshippolice department ordistrict" means any person who iscommissioned and employed as a full-timepeace officer pursuant toChapter 505. or 509. of the Revised Code, who hasreceived acertificate attesting to the person's satisfactory completion ofthe peace officer training school as required by section 109.77 ofthe RevisedCode, and whose primary duties are to preserve thepeace, protect life andproperty, and enforce the laws of thisstate.

(1) Employed full-time as a narcotics agent by a countynarcotics agencycreated pursuant to section 307.15 of the RevisedCode and has received acertificate attesting to the satisfactorycompletion of the peace officertraining school as required bysection 109.77 of the Revised Code;

(2) Employed full-time as an undercover drug agent asdefined in section109.79 of the Revised Code and is in compliancewith section 109.77 of theRevised Code.

(DD) "Department of public safety enforcement agent" means afull-timeemployee of thedepartment of public safety who isdesignated under section 5502.14of the Revised Code as anenforcement agent and who is in compliance withsection 109.77ofthe Revised Code.

(EE) "Natural resources law enforcement staff officer" meansafull-time employee of the department of natural resources who isdesignated anatural resources law enforcement staff officer undersection 1501.013 of theRevised Codeandis in compliance withsection 109.77 of the Revised Code.

(FF) "Park officer" means a full-time employee of thedepartment ofnaturalresources who is designated a park officerunder section 1541.10 of theRevised Code and is in compliancewith section 109.77 of the Revised Code.

(GG) "Forest officer" means a full-time employee of thedepartment of naturalresources who is designated a forest officerunder section 1503.29 of theRevised Code and is in compliancewith section 109.77 of the Revised Code.

(HH) "Preserve officer" means a full-timeemployee of thedepartment of natural resources who isdesignated a preserveofficer under section 1517.10 of theRevisedCode and is incompliance withsection 109.77 of the RevisedCode.

(II) "Wildlife officer" means a full-time employee of thedepartmentofnatural resources who is designated a wildlifeofficer under section 1531.13of the Revised Code and is incompliance with section 109.77 of the RevisedCode.

(JJ) "State watercraft officer" means a full-timeemployeeof the departmentof natural resources who is designated a statewatercraft officer undersection 1547.521 of the Revised Code andis in compliance with section 109.77of the Revised Code.

(KK) "Park district police officer" means a full-timeemployee of a parkdistrict who is designated pursuant to section511.232 or 1545.13 of theRevised Code and is in compliance withsection 109.77 of the Revised Code.

(LL) "Conservancy district officer" means a full-timeemployee of aconservancy district who is designated pursuant tosection 6101.75 of theRevised Code and is in compliance withsection 109.77 of the Revised Code.

(MM) "Municipal police officer" means a member of theorganized policedepartment of a municipal corporation who isemployed full-time, is incompliance with section 109.77 of theRevised Code, and is not a member of theOhio police and firepension fund.

(NN) "Veterans' home police officer" meansanypersonwho is employed ata veterans' home as apolice officerpursuant to section 5907.02 of theRevised Code andis incompliance with section 109.77 of the Revised Code.

(OO) "Special police officer for a mental healthinstitution" means anyperson who is designated as such pursuantto section 5119.14 of the RevisedCode and is in compliance withsection 109.77 of the Revised Code.

(PP) "Special police officer for an institution for thementally retarded anddevelopmentally disabled" means any personwho is designated as such pursuantto section 5123.13 of theRevised Code and is in compliance with section109.77 of theRevised Code.

(QQ) "State university law enforcement officer" means anyperson who isemployed full-time as a state university lawenforcement officer pursuant tosection 3345.04 of the RevisedCode and who is in compliance with section109.77 of the RevisedCode.

(RR)"House sergeant at arms" means any person appointed bythe speaker of the house of representatives under division (B)(1)of section 101.311 of the Revised Code who has arrest authorityunder division (E)(1) of that section.

(SS) "Assistant house sergeant at arms" means any personappointed by the house sergeant at arms under division (C)(1) ofsection 101.311 of the Revised Code.

(TT) "Regional transit authority police officer" means aperson who isemployed full time as a regional transit authoritypolice officer underdivision (Y) of section 306.35 of the RevisedCodeand is incompliance with section 109.77 of the Revised Code.

(UU)"State highway patrol police officer" means a specialpoliceofficer employed full time and designated by thesuperintendent of thestate highway patrol pursuant to section5503.09 of theRevised Code or a person servingfull time as aspecial police officer pursuant to that section on apermanentbasis on October 21, 1997, who is in compliancewith section109.77 of the Revised Code.

(VV) "Municipal public safety director" means a person who serves full-time as the public safety director of a municipal corporation with the duty of directing the activities of the municipal corporation's police department and fire department.

(WW) Notwithstanding section 2901.01 of the Revised Code,"PERS law enforcementofficer" means a sheriff, deputy sheriff,township constable or police officerin a township policedepartment or district, drug agent, municipal public safety director, department of publicsafetyenforcement agent, natural resources law enforcement staffofficer,park officer, forest officer, preserve officer,wildlifeofficer, state watercraftofficer, park district police officer,conservancy district officer,veterans' home police officer,special police officer for a mental healthinstitution, specialpolice officer for an institution for the mentallyretarded anddevelopmentally disabled, state university law enforcementofficer, municipalpolice officer,house sergeant at arms,assistant housesergeantat arms, regional transit authoritypolice officer, orstate highway patrol police officer.

~~(WW)~~(XX)"Hamilton county municipal courtbailiff" means apersonappointed bythe clerk of courts of the Hamilton countymunicipalcourt underdivision(A)(3) of section 1901.32 of theRevised Codewho is employed full time as abailiff or deputybailiff, who hasreceived a certificate attesting to theperson'ssatisfactorycompletion of the peace officer basic trainingdescribed indivision (D)(1) of section 109.77 of the RevisedCode,and whoseprimary duties are to preserve the peace, toprotectlife andproperty, and toenforce the laws of this state.

(1) Exercises any discretionary authority or control withrespect to themanagement of the system or with respect to themanagement or disposition ofits assets;

(2) Renders investment advice for a fee, direct or indirect,with respect tomoney or property of the system;

(3) Has any discretionary authority or responsibility in theadministrationof the system.

~~(YY)~~(ZZ) "Actuary" means an individual who satisfies all ofthefollowingrequirements:

(3) Has a minimum of five years' experience in providingactuarial servicesto public retirement plans.

~~(ZZ)~~(AAA) "PERS defined benefit plan" means the plan described insections 145.201 to 145.79 of the Revised Code.

~~(AAA)~~(BBB) "PERS defined contribution plans" means the plan orplans established under section 145.81 of the Revised Code.

Sec. 145.33. (A) Except as provided in division (B)or(C)ofthis section, a member with at least five years oftotalservicecredit who has attained age sixty, or who has thirtyyearsof total Ohio service credit, may apply for age and serviceretirement, which shall consist of:

(1) An annuity having a reserve equal to the amount of themember's accumulated contributions at that time;

(3) An additional pension, if the member can qualify forprior service, equal to forty dollars multiplied by the number ofyears, and fraction thereof, of such prior and military servicecredit;

(4) A basic annual pension equal to one hundred eightydollars if the member has ten or more years of total servicecredit as of October 1, 1956, except that the basic annualpensionshall not exceed the sum of the annual benefits providedbydivisions (A)(1), (2), and (3) of this section.

(5) When a member retires on age and service retirement,themember's total annual single lifetime allowance,including theallowances provided in divisions (A)(1), (2), (3), and (4) ofthissection, shall be not less than a base amount adjusted inaccordance with division (A)(5) of this sectionand determined bymultiplying themember's total service credit by the greater ofthe following:

(b) Two and two-tenths per cent of the member's finalaverage salaryfor each of the first thirty years of service plustwo andone-half per cent of the member's final average salary foreach subsequent year of service.

The allowance shall be adjusted by the factors of attainedage or years of service to provide the greater amount asdetermined by the following schedule:

Members shall vest the right to a benefit in accordancewiththe following schedule, based on the member's attained agebySeptember 1, 1976:

(6) The total annual single lifetime allowance that amembershall receive under division (A)(5) of this section shallnotexceed the lesser of one hundred per cent of themember's finalaverage salary or the limit established by section 415 of the"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,as amended.

(B)(1) For the purposes of divisions (B) to(G) ofthissection,"total service credit as aPERS law enforcement officer"and "total service credit as a Hamilton county municipalcourtbailiff" includecredit for military service to the extentpermitted bydivision(E)(2) of this section and credit forservice as a policeofficer or statehighway patrol trooper to theextent permitted bydivisions(E)(3)and (4) ofthissection.

(2) A member who meets the conditions in division(B)(2)(a),(b), (c), or (d) ofthis section may apply for an age andserviceretirement benefit under thisdivision:

(a)The member has attained ageforty-eight and has at leasttwenty-five years oftotal servicecredit asaPERSlawenforcement officerwhose primaryduties were to preserve thepeace, protectlife and property, andenforce the laws in themember'sjurisdiction;

(b)The member has attained agefifty-two, and has atleasttwenty-five years of total servicecreditas aPERS lawenforcement officer, but themember's primary duties were otherthan to preserve the peace,protect life and property, and enforcethe laws in the member'sjurisdiction;

(c) The member has attained age fifty-two and has at leasttwenty-five years of total service as a Hamilton county municipalcourt bailiff;

(d) The member has attained age sixty-two and has atleastfifteen years of totalservice credit aseither of thefollowing:

(3) A benefit paid under division (B)(2) of this sectionshallconsist of an annual single lifetime allowance equal to thesumoftwo and one-half per cent of the member's final averagesalarymultiplied by the first twenty-five years of the member'stotalservice plus two and one-tenth per cent of the member'sfinalaverage salary multiplied by the number of years of themember'stotal service credit in excess oftwenty-five years.

(4) A member with at least fifteen years of total servicecredit as aPERS law enforcementofficeror Hamilton countymunicipal court bailiff who voluntarily resigns or isdischargedfor anyreason except death, dishonesty, cowardice,intemperatehabits, or conviction of a felony may apply for anageand serviceretirement benefit, which shall consist of anannualsinglelifetime allowance equal to one and one-half percent ofthemember's final average salary multiplied by thenumber ofyears ofthe member's total service credit. Theallowance shallcommenceon the first day of the calendar monthfollowing themonth inwhich the application is filed with thepublic employeesretirement board on or after the attainment bythe applicant ofage fifty-two.

(C)(1) A member with at leasttwenty-five years of totalservice creditwhowould be eligible to retire underdivision(B)(2)(b) or (c) of this section had the memberattainedagefifty-two and who voluntarily resigns orisdischargedfor anyreasonexcept death, dishonesty,cowardice,intemperatehabits, orconviction of a felony, onor after thedate ofattainingforty-eight years ofage, but before the date ofattainingfifty-two yearsof age, may elect to receive a reducedbenefit asdetermined by the followingschedule:

(2) If a member elects to receive a reduced benefitafterattaining age forty-eight the reduced benefit is payable from thelater of thedate of the member's mostrecent birthday or the datethemember becomes eligible to receive the reduced benefit.

(3) Once a member elects to receive a reduced benefitdetermined by the schedule in division(C)(1) of thissectionandhas received a payment, themember may not reelect to changethatelection.

(4) If a member who has resigned or been discharged has leftondeposit the member's accumulated contributions in theemployees' savingsfund and has not elected to receive a reducedbenefit determinedby the schedule in division(C)(1) of thissection, uponattaining fifty-two years of age, the member shallbe entitled to receive abenefit computed and paid under division(B)(3) of thissection.

(D) A benefit paid under division (B)or(C) ofthissectionshall not exceed the lesser ofninety per cent of themember'sfinal average salary or the limit establishedby section415 ofthe"Internal Revenue Code of1986," 100 Stat. 2085, 26U.S.C.A.415, as amended.

(E)(1) A member with service credit as aPERS lawenforcementofficeror a Hamilton county municipal court bailiffand other service credit under this chaptermay elect oneof thefollowing:

(a) To have all the member's service credit under thischapter,including credit for service as aPERS law enforcementofficeror Hamilton county municipal court bailiff, usedincalculating a retirement allowance under division(A) of thissection if the member qualifies for an allowance underthatdivision;

(b) If the member qualifies for an allowance under division(B) or (C) of this section, tohave themember's service creditas aPERS law enforcementofficerorHamilton county municipalcourt bailiff used incalculating abenefit underthe appropriatedivision andthe member'screditfor all service other thanPERSlaw enforcementserviceorservice as a Hamilton county municipalcourt bailiff under thischapter used in calculating a benefitconsisting of a single lifeannuity having a reserve equal to theamount of the member'saccumulated contributions and anequalamount of the employer'scontributions.

(2) Notwithstanding sections 145.01 and 145.30 of theRevised Code, no more than four years of military service creditgranted under section 145.30 of the Revised Code and five yearsofmilitary service credit purchased under section 145.301 or 145.302of theRevised Code shall be used in calculating service as aPERSlawenforcement officeror Hamilton county municipal court bailiffor the total service credit of that person.

(3) Only credit for the member's service as aPERS lawenforcementofficer or service credit obtained as a police officeror statehighway patrol trooper shall be used in computing thebenefit of a member who qualifies for a benefitunderdivision(B)(2)(a), (b), or (d)(ii) or(4) or division(C) ofthissectionfor thefollowing:

(a) Any person who originally is commissioned and employedas a deputy sheriff by the sheriff of any county, or whooriginally is electedsheriff, on or after January 1, 1975;

(b) Any deputy sheriff who originally is employed as acriminal bailiffor court constable on or after April 16, 1993;

(c) Any person who originally is appointed as a townshipconstable or police officer in a township police department ordistrict on or after January 1, 1981;

(d) Any person who originally is employed as a countynarcotics agent on or after September 26, 1984;

(e) Any person who originally is employed as an undercoverdrug agent as defined in section 109.79 of the Revised Code,department of public safety enforcement agent who prior to June30, 1999, was a liquorcontrol investigator, park officer,forestofficer, wildlife officer,state watercraft officer, park districtpoliceofficer, conservancy district officer, veterans' homepolice officer, special police officer for a mental healthinstitution,special police officer for an institution for thementally retardedand developmentally disabled, or municipalpolice officer on orafter December 15, 1988;

(f) Any person who originally is employed as a stateuniversitylaw enforcement officer on or afterNovember 6, 1996;

(g)Any person who is originally employed as a stateuniversity lawenforcement officer by the university of Akron onor after September16, 1998;

(h) Any person who originally is employed as a preserveofficeron or after March18, 1999;

(i) Any person who originally is employed as a naturalresourceslaw enforcement staff officer on or after March 18,1999;

(j) Any person who is originally employed as a departmentofpublic safety enforcement agent on or after June 30,1999;

(k) Any person who is originally employed as a housesergeant at arms or assistant house sergeant at arms on or afterSeptember 5, 2001;

(l)Any person who is originally appointed as a regionaltransit authority police officer or state highway patrol policeofficer on or afterFebruary1, 2002;

(m) Any person who is originally employed as a municipal public safety director on or after the effective date of this amendment.

(4) Only credit for a member's service as a Hamilton countymunicipal court bailiff or service credit obtained as a PERS lawenforcement officer, police officer, or state highway patroltrooper shall be used in computing the benefit of a member whoqualifies for a benefit under division (B)(2)(c) or (d)(ii) or (4)ordivision (C) ofthissection for any person who originally isemployed as aHamiltoncounty municipal court bailiff on or afterNovember 6,1996.

(F) Retirement allowances determined under this sectionshall be paid as provided in section 145.46 of the Revised Code.

(G) For the purposes of this section, service prior toJune30, 1999,as a food stamp trafficking agent underformersection5502.14 of the Revised Code shall be considered service asalawenforcementofficer.

Sec. 147.05. (A) Before entering upon the duties oftheofficeof notary public,a notarypublicshall leavethenotarypublic's commission with the oathendorsedon thecommission withtheclerk of the court of common pleas ofthecounty in whichthenotary public resides. Theclerk shallrecord the commission ina bookkept for that purpose. Theclerk shallendorse on themargin of the record and on the backof thecommission the timethat the clerk receivedthe commission for recordand makeaproper index toallcommissionsso recorded. For recordingandindexinga commission, thefee of theclerkshall beasprovidedin division (R) of section 2303.20of the RevisedCode.

(B) The secretary of state shall maintain a record of thecommissions of each notary public appointed and commissioned bythe secretary of state under this chapter and make a proper indexto that record.

The governor's office shall transfer to the secretary ofstate's office, on or after~~the effective date of this amendment~~June 6, 2001,the record of notaries public formerly kept by thegovernor'soffice under section 107.10 of the Revised Code. Thesecretary ofstate's office shall maintain that record togetherwith the recordand index of commissions of notaries publicrequired by thisdivision.

(C) If a notary public legally changes the notary public's name or address after having been commissioned as a notary public, the notary public shall notify the secretary of state and the appropriate clerk of courts within thirty days after the name or address change. Notification to the secretary of state shall be on a form prescribed by the secretary of state.

(D) A notary, other than an attorney, who resigns the person's commission shall deliver to the secretary of state, on a form prescribed by the secretary of state, a written notice indicating the effective date of resignation.

Sec. 147.10. No notary public shall do or perform any act as a notary publicknowing that ~~his~~ the notary public's term of office has expired or that the notary public has resigned the notary public's commission.

Sec. 147.11. A person appointed notary public who performs any act as such after the expiration of ~~his~~ the person's term of office or after the person resigns the person's commission, knowing that ~~his~~ the person's term has expired or that the person has resigned, shall forfeit not more than five hundred dollars, to be recovered by an action in the name of the state. Such act shall render ~~such~~ the person ineligible for reappointment.

Sec. 147.12. An official act done by a notary public after the expiration of~~his~~ the notary public's term of office or after the notary public resigns the notary public's commission is as valid as if doneduring ~~his~~ the notary public's term of office.

Sec. 147.371. (A) Upon receipt of a fee of two dollars and anaffidavit that theoriginal commissionof a notary public has beenlost or destroyed, a duplicate commission asnotary public shallbe issued by thesecretary of state.

(B) Upon receipt of a fee of two dollars and the properly completed, prescribed form for a name and address change under division (C) of section 147.05 of the Revised Code, the secretary of state shall issue a duplicate commission as a notary public.

Sec. 149.30. The Ohio historical society, chartered bythis state as a corporation not for profit to promote a knowledgeof history and archaeology, especially of Ohio, and operatedcontinuously in the public interest since 1885, may performpublic functions as prescribed by law.

The general assembly may appropriate money to the Ohiohistorical society each biennium to carry out the publicfunctions of the society as enumerated in this section. Anappropriation by the general assembly to the society constitutesan offer to contract with the society to carry out those publicfunctions for which appropriations are made. An acceptance bythe society of the appropriated funds constitutes an acceptanceby the society of the offer and is considered an agreement by thesociety to perform those functions in accordance with the termsof the appropriation and the law and to expend the funds only forthe purposes for which appropriated. The governor may request onbehalf of the society, and the controlling board may release,additional funds to the society for survey, salvage, repair, orrehabilitation of an emergency nature for which funds have notbeen appropriated, and acceptance by the society ofthose funds constitutes an agreement on the part of the society toexpendthose funds only for the purpose for which released by thecontrolling board.

The society shall faithfully expend and apply all moneysreceived from the state to the uses and purposes directed by lawand for necessary administrative expenses. ~~The~~ If the general assembly appropriates money to the society for grants or subsidies to other entities for their site-related programs, the society, except for good cause, shall distribute the money within ninety days of accepting a grant or subsidy application for the money.

The society shallperform the public function of sending notice by certified mailto the owner of any property at the time it is listed on thenational register of historic places. The society shallaccurately record all expenditures of such funds in conformitywith generally accepted accounting principles.

The public functions to be performed by the Ohio historicalsociety shall include all of the following:

(A) Creating, supervising, operating, protecting,maintaining, and promoting for public use a system of statememorials, titles to which may reside wholly or in part with thisstate or wholly or in part with the society as provided in and inconformity to appropriate acts and resolves of the generalassembly, and leasing for renewable periods of two years or less,with the advice and consent of the attorney general and thedirector of administrative services, lands and buildings owned bythe state which are in the care, custody, and control of thesociety, all of which shall be maintained and kept for public useat reasonable hours;

(B) Making alterations and improvements, marking, andconstructing, reconstructing, protecting, or restoringstructures, earthworks, and monuments in its care, and equippingsuch facilities with appropriate educational maintenancefacilities;

(C) Serving as the archives administration for the stateand its political subdivisions as provided in sections 149.31 to149.42 of the Revised Code;

(D) Administering a state historical museum, to be theheadquarters of the society and its principal museum and library,which shall be maintained and kept for public use at reasonablehours;

(E) Establishing a marking system to identify alldesignated historic and archaeological sites within the state andmarking or causing to be marked historic sites and communitiesconsidered by the society to be historically or archaeologicallysignificant;

(F) Publishing books, pamphlets, periodicals, and otherpublications about history, archaeology, and natural science and offering one copy of each regular periodical issue to all publiclibraries in this state at a reasonable price, which shall not exceed one hundred ten per cent more than the total cost of publication;

(G) Engaging in research in history, archaeology, andnatural science and providing historical information upon requestto all state agencies;

(H) Collecting, preserving, and making available by allappropriate means and under approved safeguards all manuscript,print, or near-print library collections and all historicalobjects, specimens, and artifacts which pertain to the history ofOhio and its people, including the following original documents:Ohio Constitution of 1802; Ohio Constitution of 1851; proposedOhio Constitution of 1875; design and the letters of patent andassignment of patent for the state flag; S.J.R. 13 (1873); S.J.R.53 (1875); S.J.R. 72 (1875); S.J.R. 50 (1883); H.J.R. 73 (1883);S.J.R. 28 (1885); H.J.R. 67 (1885); S.J.R. 17 (1902); S.J.R. 28(1902); H.J.R. 39 (1902); S.J.R. 23 (1903); H.J.R. 19 (1904);S.J.R. 16 (1905); H.J.R. 41 (1913); H.J.R. 34 (1917); petitionform (2) (1918); S.J.R. 6 (1921); H.J.R. 5 (1923); H.J.R. 40(1923); H.J.R. 8 (1929); H.J.R. 20 (1929); S.J.R. 4 (1933);petition form (2) (1933); S.J.R. 57 (1936); petition form (1936);H.J.R. 14 (1942); H.J.R. 15 (1944); H.J.R. 8 (1944); S.J.R. 6(1947); petition form (1947); H.J.R. 24 (1947); and H.J.R. 48(1947);

(I) Encouraging and promoting the organization anddevelopment of county and local historical societies;

(J) Providing to Ohio schools such materials as the society may prepare to facilitate theinstruction of Ohio history at a reasonable price, which shall not exceed one hundred ten per cent more than the total cost of preparation and delivery;

(K) Providing advisory and technical assistance to localsocieties for the preservation and restoration of historic andarchaeological sites;

(L) Devising uniform criteria for the designation ofhistoric and archaeological sites throughout the state andadvising local historical societies of the criteria and theirapplication;

(M) Taking inventory, in cooperation with the Ohio artscouncil, the Ohio archaeological council, and the archaeologicalsociety of Ohio, of significant designated and undesignated stateand local sites and keeping an active registry of all designatedsites within the state;

(N) Contracting with the owners or persons having aninterest in designated historic or archaeological sites orproperty adjacent or contiguous to those sites, oracquiring, bypurchase, gift, or devise, easements in those sites or inpropertyadjacent or contiguous to those sites, in order to controlorrestrict the use of those historic or archaeological sitesoradjacent or contiguous property for the purpose of restoring orpreserving the historical or archaeological significance oreducational value of those sites;

(O) Constructing a monument honoring Governor James A.Rhodes, which shall stand on the northeast quadrant of thegrounds surrounding the capitol building. The monument shall beconstructed with private funds donated to the Ohio historicalsociety and designated for this purpose. No public funds shallbe expended to construct this monument. The department ofadministrative services shall cooperate with the Ohio historicalsociety in carrying out this function and shall maintain themonument in a manner compatible with the grounds of the capitolbuilding.

(P) Commissioning a portrait of each departing governor, which shall bedisplayed in the capitol building. The Ohio historical society mayaccept private contributions designated for this purpose and, at thediscretion of its board of trustees, also may apply for the same purpose fundsappropriated by the general assembly to the society pursuant to this section.

(Q) Planning and developing a center at the capitolbuilding for the purpose of educating visitors about the historyof Ohio, including its political, economic, and socialdevelopment and the design and erection of the capitol buildingand its grounds. The Ohio historical society may acceptcontributions of private moneys and in-kind services designatedfor this purpose and may, at the discretion of its board oftrustees, also apply, for the same purpose, personnel and otherresources paid in whole or in part by its state subsidy.

(R) Submitting an annual report of its activities,programs, and operations to the governor within two months afterthe close of each fiscal year of the state.

The society shall not sell, mortgage, transfer, or disposeof historical or archaeological sites to which it has title andin which the state has monetary interest except by action of thegeneral assembly.

In consideration of the public functions performed by theOhio historical society for the state, employees of the societyshall be considered public employees within the meaning ofsection 145.01 of the Revised Code.

Sec. 150.07. (A) For the purpose stated in section 150.01of the Revised Code, the authority may authorize a lender to claimone ofthe tax credits allowed under section 5707.031,5725.19, 5727.241, 5729.08,5733.49,or 5747.80 of the Revised Code. Thecredits shall beauthorized by a written contract with the lender.The contractshall specify the terms under which the lender mayclaim thecredit, including the amount of loss, if any, the lendermustincur before the lender may claim the credit; specify thatthecreditshall not exceedthe amount of the loss; and specifythatthe lender may claim thecredit only for a loss certified byaprogramadministrator to theauthority under the proceduresprescribedunder division (B)(6) ofsection 150.05 of the RevisedCode.

(B) Tax credits may be authorized at any time after theauthority establishes the investment policy under section 150.03of the Revised Code, but a tax credit so authorized may not beclaimed until the beginning of the fifth year after the authorityestablishes the investment policy. A tax credit may not beclaimed after June 30, 2026.

(C) (1) Upon receiving certification of a lender's loss fromaprogram administrator pursuant to the procedures in theinvestmentpolicy, the authority shall issue a tax creditcertificate to thelender, except as otherwise provided indivision (D) of this section. ~~The~~

(2) If the lender is a pass-through entity, as defined in section 5733.04 of the Revised Code, then each equity investor in the lender pass-through entity shall be entitled to claim one of the tax credits allowed under division (A) of this section for that equity investor's taxable year in which or with which ends the taxable year of the lender pass-through entity in an amount based on the equity investor's distributive or proportionate share of the credit amount set forth in the certificate issued by the authority. If all equity investors of the lender pass-through entity are not eligible to claim a credit against the same tax set forth in division (A) of this section, then each equity investor may elect to claim a credit against the tax to which the equity investor is subject to in an amount based on the equity investor's distributive or proportionate share of the credit amount set forth in the certificate issued by the authority.

(3) The authority shall not issue a certificate until the lender, in the manner prescribed by the authority, or in the case of a lender pass-through entity, until each equity investor in that lender pass-through entity, elects to receive a refundable or nonrefundable tax credit. The election, once made, is irrevocable. The certificate shall statetheamount of the credit, whether the credit is refundable or nonrefundable,andthe calendar year,undersection 5707.031, 5725.19, 5727.241,or 5729.08, the taxyear,undersection5733.49,or the taxableyear undersection5747.80of the RevisedCode, forwhich thecredit may beclaimed.Theauthority, inconjunctionwith the taxcommissioner,shalldevelopa system forissuing tax creditcertificates for thepurpose ofverifyingthat anycredit claimedisa creditissuedunder thissection andisproperly taken intheyear specified inthecertificate and incompliance withdivision(B)ofthissection.

(D) The authority shall not, in any fiscal year, issue taxcredit certificates in a total amount exceeding twenty milliondollars.

Sec. 150.10. (A)Onthe first day of Januaryof the secondyear after the date of entering into an agreementunder section150.05 of theRevisedCodeand of each ensuing year, theauthorityshall file with the clerkof the houseofrepresentatives, theclerk of the senate, andthe chairpersonsofthe house and senatestanding committeespredominantlyconcernedwith economicdevelopment a writtenreport on theOhioventurecapital program.The report shall include all the following:

(1)Adescription of the details of theinvestment policyestablished or modified in accordance withsections 150.03and150.04 of the Revised Code;

(2)Theauthority's assessment of the program's achievementof itspurpose stated in section 150.01 of the Revised Code;

(3)Thevalue of tax credit certificates issued by theauthorityundersection 150.07 of the Revised Code in each fiscalyear ending on or before the preceding thirtieth day of June;

(4) Theamount of tax credits claimed pursuant to section 5707.031,5725.19, 5727.241, 5729.08, 5733.49, or 5747.80 of the Revised Code, as tothe respective taxesinvolved;

(6) The names of venture capital funds in which money fromthe program fund has been invested and thelocations of theirprincipal offices, and the names ofthe enterprises in which eachof those venture capitalfunds has invested such money and thelocations of thoseenterprises' principal offices;

(7) Anyrecommendations for modifying the program to betterachieve thepurpose stated in section 150.01 of theRevisedCode.

(B) During each year that a report is issued under division(A) of this section, the chairperson of the authority, oranothermember of the authority designatedby thechairpersonas theauthority's representative, shallberequired to appear inpersonbefore the standing committees of thehouse andsenatepredominantly concernedwith economic developmentto givetestimony concerning the status of theOhio venturecapitalprogram.

Sec. 153.02. (A) The director of administrative services may debar a contractor from contract awards for public improvements as referred to in section 153.01 of the Revised Code upon proof that the contractor has done any of the following:

(1) Defaulted on a contract requiring the execution of a takeover agreement as set forth in division (B) of section 153.17 of the Revised Code;

(2) Knowingly failed during the course of a contract to maintain the coverage required by the bureau of workers' compensation;

(3) Knowingly failed during the course of a contract to maintain the contractor's drug-free workplace program as required by the contract;

(4) Knowingly failed during the course of a contract to maintain insurance required by the contract or otherwise by law, resulting in a substantial loss to the owner, as owner is referred to in section 153.01 of the Revised Code;

(5) Misrepresented the firm's qualifications in the selection process set forth in sections 153.65 to 153.71 of the Revised Code;

(8) Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;

(9) Been debarred from bidding on or participating in a contract with any state or federal agency.

(B) When the director reasonably believes that grounds for debarment exist, the director shall send the contractor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing on the proposed debarment. The hearing shall be conducted in accordance with Chapter 119. of the Revised Code. If the contractor does not respond with a request for a hearing in the manner specified in Chapter 119. of the Revised Code, the director shall issue the debarment decision without a hearing and shall notify the contractor of the decision by certified mail, return receipt requested.

(C) The director shall determine the length of the debarment period and may rescind the debarment at any time upon notification to the contractor. During the period of debarment, the contractor is not eligible to bid for or participate in any contract for a public improvement as referred to in section 153.01 of the Revised Code. After the debarment period expires, the contractor shall be eligible to bid for and participate in contracts for a public improvement as referred to in section 153.01 of the Revised Code.

(D) The director, through the office of the state architect, shall maintain a list of all contractors currently debarred under this section. Any governmental entity awarding a contract for construction of a public improvement may use a contractor's presence on the debarment list to determine whether a contractor is responsible or best under section 9.312 or any other section of the Revised Code in the award of a contract.

Sec. 154.11. The issuingauthority may authorize and issue obligations for the refunding, includingfunding and retirement, of any obligations previously issued under thischapter and any bonds or notes previously issued under Chapter 152. of the Revised Code to pay costs of capital facilities leased to the Ohio cultural facilities commission, formerly known as the Ohio arts and sports facilities commission. Such obligations may be issued in amountssufficient for payment of the principal amount of the priorobligations, any redemption premiums thereon, principalmaturities of any such obligations maturing prior to theredemption of the remaining obligations on a parity therewith,interest accrued or to accrue to the maturity dates or dates ofredemption of such obligations, and any expenses incurred or tobe incurred in connection with such issuance and such refunding,funding, and retirement. Subject to the bond proceedingstherefor, the portion of proceeds of the sale of obligationsissued under this section to be applied to bond service chargeson the prior obligations shall be credited to the bond servicefund for those prior obligations. Obligations authorized under thissection shall be deemed to be issued for those purposes for whichthose prior obligations were issued and are subject to theprovisions of Chapter 154. of the Revised Code pertaining toother obligations, except as otherwise indicated by this sectionand except for division (A) of section 154.02 of the RevisedCode, provided that, unless otherwise authorized by the generalassembly, any limitations imposed by the general assemblypursuant to that division with respect to bond service chargesapplicable to the prior obligations shall be applicable to theobligations issued under this section to refund, fund, or retirethose prior obligations.

Sec. 173.26. (A) Each of the following facilities shallannually pay to the department of aging six dollars for eachbed maintained by the facility for use by a resident during anypart of the previous year:

(1) Nursing homes, residential care facilities, and homesfor the aging as defined in section 3721.01 of the Revised Code;

(2) Facilities authorized to provide extended careservices under Title XVIII of the "Social Security Act," 49 Stat.620 (1935), 42 U.S.C. 301, as amended;

(3) County homes and district homes operated pursuant toChapter 5155. of the Revised Code;

(5) Facilities approved by the Veterans Administrationunder Section 104(a) of the "Veterans Health Care Amendments of1983," 97 Stat. 993, 38 U.S.C. 630, as amended, and usedexclusively for the placement and care of veterans.

The department shall, by rule adopted in accordance with Chapter 119.of the Revised Code, establish deadlines for payments required bythis section. A facility that fails, within ninety days after the established deadline, to pay a payment required by this section shall be assessed at two times the original invoiced payment.

(B) All money collected under this section shall bedeposited in the state treasury to the credit of the office ofthe state long-term care ombudsperson program fund,which is hereby created. Money credited to the fund shall be used solely topaythe costs of operating the regional long-term care ombudsperson programs.

(C) The state long-term care ombudsperson and theregional programs may solicit and receive contributions to support theoperation of the office or a regional program, except that nocontribution shall be solicited or accepted that would interferewith the independence or objectivity of the office or program.

Sec. 173.39. As used in sections 173.39 to 173.393 of the Revised Code, "community-based long-term care services" has the same meaning as in section 173.14 of the Revised Code.

Except as provided in section 173.392 of the Revised Code, the department of aging may not pay a person or government entity for providing community-based long-term care services under a program the department administers unless the person or government entity is certified under section 173.391 of the Revised Code and provides the services.

Sec. 173.391. (A) The department of aging or its designee shall do all of the following in accordance with Chapter 119. of the Revised Code:

(1) Certify a person or government entity to provide community-based long-term care services under a program the department administers if the person or government entity satisfies the requirements for certification established by rules adopted under division (B) of this section;

(2) When required to do so by rules adopted under division (B) of this section, take one or more of the following disciplinary actions against a person or government entity issued a certificate under division (A)(1) of this section:

(e) Impose a fiscal sanction such as a civil monetary penalty or an order that unearned funds be repaid;

(3) Hold hearings when there is a dispute between the department or its designee and a person or government entity concerning actions the department or its designee takes or does not take under division (A)(1) or (2)(c) to (g) of this section.

(B) The director of aging shall adopt rules in accordance with Chapter 119. of the Revised Code establishing certification requirements and standards for determining which type of disciplinary action to take under division (A)(2) of this section in individual situations. The rules shall establish procedures for all of the following:

(1) Ensuring that PASSPORT agencies, as defined in section 173.41 of the Revised Code, comply with that section;

(2) Evaluating the services provided to ensure that they are provided in a quality manner advantageous to the individual receiving the services;

(3) Determining when to take disciplinary action under division (A)(2) of this section and which disciplinary action to take.

(C) The procedures established in rules adopted under division (B)(2) of this section shall require that all of the following be considered as part of an evaluation:

(2) The service provider's ability to comply with standards for the community-based long-term care services that the provider provides under a program the department administers;

(D) The rules adopted under division (B)(3) of this section shall specify that the reasons disciplinary action may be taken under division (A)(2) of this section include good cause, including misfeasance, malfeasance, nonfeasance, confirmed abuse or neglect, financial irresponsibility, or other conduct the director determines is injurious to the health or safety of individuals being served.

Sec. 173.392. (A) The department of aging may pay a person or government entity for providing community-based long-term care services under a program the department administers, even though the person or government entity is not certified under section 173.391 of the Revised Code if all of the following are the case:

(1) The person or government entity has a contract with the department of aging or the department's designee to provide the services;

(2) The contract includes detailed conditions of participation for providers of services under a program the department administers and service standards that the person or government entity is required to satisfy;

(4) The contract is not for medicaid-funded services, other than services provided under the PACE program administered by the department of aging under section 173.50 of the Revised Code.

(B) The director of aging shall adopt rules in accordance with Chapter 119. of the Revised Code governing both of the following:

(1) Contracts between the department of aging and persons and government entities regarding community-based long-term care services provided under a program the department administers;

(2) The department's payment for community-based long-term care services provided under such a contract.

Sec. 173.393. (A) Except as provided in division (B) of this section, the records of an evaluation conducted in accordance with rules adopted under division (B)(2) of section 173.391 of the Revised Code are public records for purposes of section 149.43 of the Revised Code and shall be made available on request of any person, including individuals receiving or seeking community-based long-term care services under a program the department of aging administers.

(B) A part of a record of an evaluation that is otherwise available as a public record under division (A) of this section is not available as a public record if its release would violate a federal or state statute, regulation, or rule, including regulations adopted by the United States department of health and human services to implement the health information privacy provisions of the "Health Insurance Portability and Accountability Act of 1996," 110 Stat. 1955, 42 U.S.C. 1320d, et seq., as amended.

Sec. 173.40. There is hereby created a medicaid waivercomponent ~~of themedicaid programestablished under Chapter 5111.~~, as defined in section 5111.85 of the RevisedCode, to be known as thepreadmission screening system providingoptions and resources today program,or PASSPORT.The PASSPORTprogram shall provide home andcommunity-basedservices as analternative to nursing facilityplacement for aged and disabledmedicaid recipients. Theprogram shall be operated pursuant to ahome and community-basedwaiver granted by the United Statessecretary of health and humanservicesunder section 1915 of the"Social Security Act," 49 Stat.620 (1935), 42U.S.C. 1396n, asamended. The department of agingshall administer theprogramthrougha contractentered intowith thedepartmentof job andfamily servicesunder section5111.91 of the RevisedCode. The~~directors~~ director of ~~aging and~~job andfamily services shalladopt rules under section 5111.85 of the Revised Code and the director of aging shall adopt rulesinaccordance with Chapter 119.of the Revised Code toimplementthe program.

Sec. ~~5101.75~~ 173.42. (A) As used in ~~sections 5101.75, 5101.751,5101.752, 5101.753, and 5101.754 of the Revised Code~~ this section:

(1)"Alternative source of long-term care" includes aresidential carefacility licensed under Chapter 3721. of theRevised Code, an adultcare facility licensed under Chapter 3722.of the Revised Code,home and community-based services, and anursinghome licensed under Chapter 3721. of the Revised Code thatis nota nursing facility Area agency on aging" means a public or private nonprofit entity designated under section 173.011 of the Revised Code to administer programs on behalf of the department of aging.

(2)"Long-term care consultation" means the process used to provide services under the long-term care consultation program established pursuant to this section, including, but not limited to, such services as the provision of information about long-term care options and costs, the assessment of an individual's functional capabilities, and the conduct of all or part of the reviews, assessments, and determinations specified in sections 5111.202, 5111.204, 5119.061, and 5123.021 of the Revised Code and the rules adopted under those sections.

(3) "Medicaid" means the medical assistance programestablished under Chapter 5111. of the Revised Code.

~~(3)~~(4)"Nursing facility" has the same meaning as in section5111.20 of the Revised Code.

~~(4)~~(5)"Representative" means a person acting on behalf ofan~~applicant~~ individual seeking a long-term care consultation, applying for admission to a nursing facility, or residing in a nursing facility. Arepresentativemay be a family member, attorney, hospital socialworker, or anyother person chosen to act on behalf of ~~anapplicant~~ the individual.

~~(5)"Third-party payment source" means a third-party payeras defined in section 3901.38 of the Revised Code or medicaid.~~

(B) Effective July 1, 1994, the department of job and familyservicesmay assess a person applying or intending to apply foradmission to a nursing facility who is not an applicant for orrecipient of medicaid to determine whether the person is in needof nursing facility services and whether an alternative source oflong-term care is more appropriate for the person in meeting theperson's physical, mental, and psychosocial needs than admissionto thefacility to which the person has applied.

Each assessment shall be performed by the department or anagency designatedby the department under section 5101.751 of theRevised Code and shall bebased on information provided by theperson or the person'srepresentative. It shall consider theperson's physical, mental,and psychosocial needs and theavailability and effectiveness ofinformal support and care. Thedepartment or designated agency shalldeterminethe person'sphysical, mental, and psychosocial needs by using,to the maximumextent appropriate, information from the residentassessmentinstrument specified in rules adopted by thedepartment underdivision (A) of section 5111.231 of the RevisedCode. Thedepartment or designated agency shall also use the criteria andprocedures established in rules adopted by the department underdivision (I) of this section. Assessments may be performed onlyby persons The department of aging shall develop a long-term care consultation program whereby individuals or their representatives are provided with long-term care consultations and receive through these professional consultations information about options available to meet long-term care needs and information about factors to consider in making long-term care decisions. The long-term care consultations provided under the program may be provided at any appropriate time, as permitted or required under this section and the rules adopted under it, including either prior to or after the individual who is the subject of a consultation has been admitted to a nursing facility.

(C) The long-term care consultation program shall be administered by the department of aging, except that the department may enter into a contract with an area agency on aging or other entity selected by the department under which the program for a particular area is administered by the area agency on aging or other entity pursuant to the contract.

(D) The long-term care consultations provided for purposes of the program shall be provided by individuals certified by the department under section ~~5101.752~~ 173.43 ofthe Revised Code. The department or designated agency shall makearecommendation on the basis of the assessment and, not laterthanthe time the assessment is required to be performed underdivision (D) of this section, give the person assessed writtennotice of the recommendation, which shall explain the basis forthe recommendation. If the department or designated agencydeterminespursuantto an assessment that an alternative source oflong-term care ismore appropriate for the person than admissionto the facility towhich the person has applied, the department ordesignatedagency shall include in thenotice possible sources offinancial assistance for thealternative source of long-term care.If the department or designated agencyhas been informed that theperson has a representative, it shallgive the notice to therepresentative.

~~(C) A person~~ (E) The information provided through a long-term care consultation shall be appropriate to the individual's needs and situation and shall address all of the following:

(2) Sources and methods of both public and private payment for long-term care services;

(3) Factors to consider when choosing among the available programs, services, and benefits;

(4) Opportunities and methods for maximizing independence and self-reliance, including support services provided by the individual's family, friends, and community.

(F) An individual's long-term care consultation may include an assessment of the individual's functional capabilities. The consultation may incorporate portions of the determinations required under sections 5111.202, 5119.061, and 5123.021 of the Revised Code and may be provided concurrently with the assessment required under section 5111.204 of the Revised Code.

(G)(1) Unless an exemption specified in division (I) of this section is applicable, each individual in the following categories shall be provided with a long-term care consultation:

(a) Individuals who apply or indicate an intention to apply for admission to a nursing facility, regardless of the source of payment to be used for their care in a nursing facility;

(b) Nursing facility residents who apply or indicate an intention to apply for medicaid;

(c) Nursing facility residents who are likely to spend down their resources within six months after admission to a nursing facility to a level at which they are financially eligible for medicaid;

(2) In addition to the individuals included in the categories specified in division (G)(1) of this section, long-term care consultations may be provided to nursing facility residents who have not applied and have not indicated an intention to apply for medicaid. The purpose of the consultations provided to these individuals shall be to determine continued need for nursing facility services, to provide information on alternative services, and to make referrals to alternative services.

(H)(1) When a long-term care consultation is required to be provided pursuant to division (G)(1) of this section, the consultation shall be provided as follows or pursuant to division (H)(2) or (3) of this section:

(a) If the individual for whom the consultation is being provided has applied for medicaid and the consultation is being provided concurrently with the assessment required under section 5111.204 of the Revised Code, the consultation shall be completed in accordance with the applicable time frames specified in that section for providing a level of care determination based on the assessment.

(b) In all other cases, the consultation shall be provided not later than five calendar days after the department or the program administrator under contract with the department receives notice of the reason for which the consultation is required to be provided pursuant to division (G)(1) of this section.

(2) An individual or the individual's representative may request that a long-term care consultation be provided on a date that is later than the date required under division (H)(1)(a) or (b) of this section.

(3) If a long-term care consultation cannot be completed within the number of days required by division (H)(1) or (2) of this section, the department or the program administrator under contract with the department may do any of the following:

(a) Exempt the individual from the consultation pursuant to rules that may be adopted under division (L) of this section;

(b) In the case of an applicant for admission to a nursing facility, provide the consultation after the individual is admitted to the nursing facility;

(I) An individual is not required to be ~~assessed~~ provided a long-term care consultation under ~~division(B) of~~ this section if any of the following apply:

(1) The ~~circumstances~~ individual or the individual's representative chooses to forego participation in the consultation pursuant to criteria specified by in rules adopted underdivision ~~(I)~~(L) of this section ~~exist.~~;

(2) The ~~person~~ individual is to receive care in a nursing facilityunder acontract for continuing care as defined in section 173.13of theRevised Code.;

(3) The ~~person~~ individual has a contractual right to admission to anursingfacility operated as part of a system of continuing careinconjunction with one or more facilities that provide a lessintensive level of services, including a residential carefacilitylicensed underChapter 3721. of the Revised Code, an ~~adult-care~~adult care facilitylicensed under Chapter 3722. of the Revised Code, or anindependent living arrangement;

(4) The ~~person~~ individual is to receive continual care in a home forthe agedexempt from taxation under section 5701.13 of the RevisedCode;

(5) The person is to receive care in the nursing facilityfor notmore than fourteen days in order to provide temporaryrelief tothe person's primary caregiver and the nursing facilitynotifies thedepartment of the person's admittance not later thantwenty-four hoursafter admitting the person individual is seeking admission to a facility that is not a nursing facility with a provider agreement under section 5111.22 of the Revised Code;

(6) The ~~person~~ individual is to be transferred from another nursingfacility,unless the nursing facility from which or to which thepersonis to betransferred determines that the person's medicalconditionhas changedsubstantially since the person's admissionto the nursingfacility fromwhich the person is to be transferredor a review is requiredby athird-party payment source;

(7) The ~~person~~ individual is to be readmitted to a nursing facilityfollowinga period of hospitalization, unless the hospital ornursingfacility determines that the person's medical conditionhaschangedsubstantially since the person's admission to thehospital,or a review isrequired by a third-party payment source;

(8) The department or designated agency fails to complete anassessmentwithin the time required by division (D) or (E) of thissectionor determines after a partial assessment that the personshouldbe exempt from the assessment individual is exempted from the long-term care consultation requirement by the department or the program administrator pursuant to rules that may be adopted under division (L) of this section.

~~(D) The department or designated agency shall perform acompleteassessment, or, if circumstances provided by rulesadopted underdivision (I) of this section exist, a partialassessment, asfollows:~~

(1) In the case of a hospitalized person applying orintending to apply to a nursing facility, not later than twoworking days after the person or the person's representativeisnotifiedthat a bed is available in a nursing facility;

(2) In the case of an emergency as determined inaccordancewith rules adopted under division (I) of this section,not laterthan one working day after the person or theperson'srepresentative is notified that a bed is available in a nursingfacility;

~~(3) In all other cases, not later than five calendar daysafter the person or the person's representative who submitstheapplication is notified that a bed is available in a nursingfacility.~~

(E) If the department or designated agency conducts apartial assessmentunder division (D) of this section, it shallcomplete the rest ofthe assessment not later than one hundredeighty days after thedate the person is admitted to the nursingfacility unless theassessment entity determines the person shouldbe exempt from theassessment.

(F) A person assessed under this section or the person'srepresentative may file a complaint with the department about theassessment process. The department shall work to resolve thecomplaint in accordance with rules adopted under division (I) ofthis section.

~~(G) A person~~ (J) At the conclusion of an individual's long-term care consultation, the department or the program administrator under contract with the department shall provide the individual or individual's representative with a written summary of options and resources available to meet the individual's needs. Even though the summary may specify that a source of long-term care other than care in a nursing facility is appropriate and available, the individual is not required to seek an alternative sourceof long-term care and may be admitted to or continue to reside ina nursing facility ~~even though an alternative source of long-termcare is available or the person is determined pursuant to anassessmentunder this section not to need nursing facilityservices~~.

~~(H)~~(K) No nursing facility for which an operator has a provider agreement ~~withthedepartment~~ under section 5111.22 of the Revised Code shalladmitor retain any ~~person, other than a person exempt from theassessment requirement as provided by division (C) of thissection,~~ individual as a resident, unless the nursing facility has receivedevidence that a ~~complete or partial assessment~~ long-term care consultation has beencompleted for the individual or division (I) of this section is applicable to the individual.

~~(I)~~(L) The director of ~~job and family services shall~~aging may adoptany rules ~~in accordance withChapter 119. of the Revised Code toimplement and administer~~ the director considers necessary for the implementation and administration of thissection. The rules shall ~~include~~be adopted in accordance with Chapter 119. of the Revised Code and may specify any or all of the following:

(1) ~~The information a person being assessed or the person's representative must provide to enable the department ordesignatedagency todothe assessment;~~

~~(2) Criteria to be used to determine whether a person isinneed of nursing facility services;~~

~~(3) Criteria to be used to determine whether analternativesource of long-term care is appropriate for theperson beingassessed;~~

~~(4) Criteria and procedures to be used to determine aperson's physical, mental, and psychosocial needs;~~

~~(5) Criteria to be used to determine the effectiveness andcontinued availability of a person's current source of informalsupport and care;~~

~~(6) Circumstances, in addition to those specified indivision (C) of this section, under which a person is notrequiredto be assessed;~~

~~(7) Circumstances under which the department or designatedagency mayperform a partial assessment under division (D) of thissection;~~

~~(8) The method by which a situation will be determined tobean emergency for the purpose of division (D)(2) of thissection;~~

~~(9) The method by which the department will attempt toresolve complaints filed under division (F) of this section~~ Procedures for providing long-term care consultations pursuant to this section;

(2) Information to be provided through long-term care consultations regarding long-term care services that are available;

(3) Criteria under which an individual or the individual's representative may choose to forego participation in a long-term care consultation;

(4) Criteria for exempting individuals from the long-term care consultation requirement;

(5) Circumstances under which it may be appropriate to provide an individual's long-term care consultation after the individual's admission to a nursing facility rather than before admission;

(6) Criteria for identifying nursing facility residents who would benefit from the provision of a long-term care consultation.

~~(J)~~(M) The director of ~~job and family services~~ aging may fine anursingfacility an amount determined by rules the director shalladoptin accordance with Chapter 119. of the Revised Code ~~ineither ofthe following circumstances:~~

~~(1) The nursing facility fails to notify the departmentwithin the required time about an admission described in division(C)(5) of this section;~~

~~(2) The~~ if the nursing facility admits or retains an individual, without evidence that a~~complete or partial assessment~~ long-term care consultation has been ~~conducted~~ provided, ~~a person otherthan a person exempt from the assessment requirement~~ as ~~provided~~required by ~~division (C) of~~ this section.

~~The director shall deposit~~ In accordance with section 5111.62 of the Revised Code, all fines collected under thisdivision shall be deposited into the state treasury to the credit of the residents protection fund ~~established bysection5111.62 of the Revised Code~~.

Sec. ~~5101.752~~ 173.43. The department of ~~job and family services~~aging shall certify~~registerednurses licensed under Chapter 4723. ofthe Revised Code and social workersand independent social workerslicensed under Chapter 4757. of theRevised Code~~ individuals who meetcertification requirements established by rule to~~performassessments under~~ provide long-term care consultations for purposes of section ~~5101.75 or 5101.754~~ 173.42 of the Revised Code.The director of ~~job and family services~~ aging shall adoptrules inaccordance with Chapter 119. of theRevised Code governing thecertification process and requirements. The rulesshall specifythe education, experience, or training in ~~geriatric~~ long-termcarea person must have to qualify for certification.

Sec. 173.44. (A) As used in this section, "nursing home" and "residential care facility" have the same meanings as in section 3721.01 of the Revised Code.

(B) The department of aging may conduct an annual survey of nursing homes and residential care facilities. The survey shall include questions about capacity, occupancy, and private pay charges. The department may contract with an outside entity to conduct the survey and analyze the results. The results of the survey and any analysis completed by the department or its designee shall be made available to the general assembly, other state agencies, nursing home and residential care facility providers, and the general public.

Sec. 173.45. As used in this section and in sections 173.46 to 173.49 of the Revised Code:

(A) "Long-term care facility" means a nursing home or residential care facility.

(B) "Nursing home" and "residential care facility" have the same meanings as in section 3721.01 of the Revised Code.

Sec. 173.46. (A) The department of aging shall develop and publish a guide to long-term care facilities for use by individuals considering long-term care facility admission and their families, friends, and advisors. The guide, which shall be titled the Ohio long-term care consumer guide, may be published in printed form or in electronic form for distribution over the internet. The guide may be developed as a continuation or modification of the guide published by the department prior to the effective date of this section under rules adopted under section 173.02 of the Revised Code.

(B) The Ohio long-term care consumer guide shall include information on each long-term care facility in this state. For each facility, the guide shall include the following information, as applicable to the facility:

(1) Information regarding the facility's compliance with state statutes and rules and federal statutes and regulations;

(2) Information generated by the centers for medicare and medicaid services of the United States department of health and human services from the quality measures developed as part of its nursing home quality initiative;

(3) Results of the customer satisfaction surveys conducted under section 173.47 of the Revised Code;

(4) Any other information the department specifies in rules adopted under section 173.49 of the Revised Code.

Sec. 173.47. (A) For purposes of publishing the Ohio long-term care consumer guide, the department of aging shall conduct or provide for the conduct of an annual customer satisfaction survey of each long-term care facility. The results of the surveys may include information obtained from long-term care facility residents, their families, or both.

(B)(1) The department may charge fees for the conduct of annual customer satisfaction surveys. The department may contract with any person or government entity to collect the fees on its behalf. All fees collected under this section shall be deposited in accordance with section 173.48 of the Revised Code.

(a) Four hundred dollars for the customer satisfaction survey of a long-term care facility that is a nursing home;

(b) Three hundred dollars for the customer satisfaction survey pertaining to a long-term care facility that is a residential care facility.

(3) Fees paid by a long-term care facility that is a nursing facility shall be reimbursed through the medicaid program operated under Chapter 5111. of the Revised Code.

Sec. 173.48. There is hereby created in the state treasury the long-term care consumer guide fund. Money collected from the fees charged for the conduct of customer satisfaction surveys under section 173.47 of the Revised Code shall be credited to the fund. The department of aging shall use money in the fund for costs associated with publishing the Ohio long-term care consumer guide, including, but not limited to, costs incurred in conducting or providing for the conduct of customer satisfaction surveys.

Sec. 173.49. The department of aging shall adopt rules as the department considers necessary to implement and administer sections 173.45 to 173.48 of the Revised Code. The rules shall be adopted under Chapter 119. of the Revised Code.

Sec. 173.50. (A) Pursuant to a contract entered into with the department of job and family services as an interagency agreement under section 5111.91 of the Revised Code, the department of aging shall carry out the day-to-day administration of the component of the medicaid program established under Chapter 5111. of the Revised Code known as the program of all-inclusive care for the elderly or PACE. The department of aging shall carry out its PACE administrative duties in accordance with the provisions of the interagency agreement and all applicable federal laws, including the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396u-4, as amended.

(B) The department of aging may adopt rules in accordance with Chapter 119. of the Revised Code regarding the PACE program, subject to both of the following:

(1) The rules shall be authorized by rules adopted by the department of job and family services.

(2) The rules shall address only those issues that are not addressed in rules adopted by the department of job and family services for the PACE program.

Sec. 173.99. (A) A long-term care provider, person employed by a long-termcare provider, other entity, or employee of such other entity that violatesdivision (C) of section 173.24 of the Revised Code is subject to a fine not toexceed one thousand dollars for each violation.

(B) Whoever violates division (C) of section 173.23 of the Revised Code isguilty of registering a false complaint, a misdemeanor of the first degree.

(C) A long-term care provider, other entity, or person employed by a long-term care provider or other entity that violates division (E) of section 173.19 of the Revised Code by denying a representative of the office of the state long-term care ombudsperson program the access required by that division is subject to a fine not to exceed five hundred dollars for each violation.

(D) Whoever violates division (C) of section 173.44 of the Revised Code is subject to a fine of one hundred dollars.

Sec. 183.28. The education technology trust fund is herebycreated in the state treasury. Money credited to the fund shallbe used to pay costs ofthe eTech Ohio ~~SchoolNet~~commission undersection~~3301.80~~ 3353.02 of the Revised Code. Allinvestment earnings ofthe fund shallbe credited to the fund.

Sec. 184.02. (A) The third frontier commission mayperform any act to ensure the performance of any functionnecessary or appropriate to carry out the purposes of, andexercise the powers granted under, sections 184.01 and 184.02 ofthe Revised Code. In addition, the commission may do any of thefollowing:

(1) Adopt, amend, and rescind rules under section 111.15 ofthe Revised Code for the administration of any aspect of itsoperations;

(2) Adopt bylaws governing its operations, including bylawsthat establish procedures and set policies as may be necessary toassist with the furtherance of its purposes;

(3) Appoint and set the compensation of employees needed tocarry out its duties;

(4) Contract with, retain the services of, or designate, andfix the compensation of, such financial consultants, accountants,other consultants and advisors, and other independent contractorsas may be necessary or desirable to carry out its duties;

(5) Solicit input and comments from the third frontieradvisory board, and specialized industry, professional, and otherrelevant interest groups concerning its purposes;

(6) Facilitate alignment of the state's science andtechnology programs and activities;

(7) Make grants and loans to individuals, public agencies,private companies or organizations, or joint ventures for any ofthe broad range of activities related to its purposes.

(1) Establish a competitive process for the award of grantsand loans that is designed to fund the most meritorious proposalsand, when appropriate, provide for peer review of proposals;

(2) Within ninety days after the end of each fiscal year,submit to the governor and the general assembly a report of theactivities of the commission during the preceding fiscal year;

(3) With specific application to the biomedical research andtechnology transfer trust fund, periodically make strategicassessments of the types of state investments in biomedicalresearch and biotechnology in the state that would likely createjobs and business opportunities in the state and produce the mostbeneficial long-term improvements to the public health of~~Ohioians~~ Ohioans, including, but not limited to, biomedical research andbiotechnology initiatives that address tobacco-related illnessesas may be outlined in any master agreement. The commission shallaward grants and loans from the fund pursuant to a processestablished under division (B)(1) of this section.

(C) Notwithstanding the authority granted to the commission under sections 184.01 to 184.04 of the Revised Code, the commission shall not make any grants or loans to individuals, public agencies, private companies or organizations, or joint ventures for any activities involving stem cell research with human embryonic tissue.

Sec. 305.171. (A) The board of county commissioners ofany county may contract for, purchase, or otherwise procure andpay all or any part of the cost of group insurance policies thatmay provide benefits including, but not limited to,hospitalization, surgical care, major medical care, disability,dental care, eye care, medical care, hearing aids, orprescription drugs, and that may provide sickness and accidentinsurance, group legal services, or group life insurance, or acombination of any of the foregoing types of insurance orcoverage, for county officers and employees and their immediatedependents from the funds or budgets from which the county officers oremployees are compensated for services, issued by an insurancecompany.

(B) The board of county commissioners also may negotiate and contract for any planor plans of health care services with healthinsuring corporations holding acertificate of authority under Chapter 1751. of theRevised Code, provided that each county officer or employeeshall be permitted to do both of the following:

(1) Exercise an option between a plan offered by aninsurance company and ~~such~~ a plan or plans offered by healthinsuring corporations underthis division, on the condition that the county officer or employee shall payany amount by which the cost of the plan chosen by ~~such~~ the county officeror employee pursuant to this division exceeds the cost of theplan offered under division (A) of this section;

(2) Change from one of the plans to another at a time eachyear as determined by the board.

(C) Section 307.86 of the Revised Code does not apply tothe purchase of benefits for county officers or employees underdivisions (A) and (B) of this section when those benefits areprovided through a jointly administered health and welfare trustfund in which the county or contracting authority and acollective bargaining representative of the county employees orcontracting authority agree to participate.

(D) The board of trustees of a jointly administered trustfund that receives contributions pursuant to collectivebargaining agreements entered into between the board of countycommissioners of any county and a collective bargainingrepresentative of the employees of the county may provide forself-insurance of all risk in the provision of fringe benefits,and may provide through the self-insurance method specific fringebenefits as authorized by the rules of the board of trustees ofthe jointly administered trust fund. The fringe benefits mayinclude, but are not limited to, hospitalization, surgical care,major medical care, disability, dental care, vision care, medicalcare, hearing aids, prescription drugs, group life insurance,sickness and accident insurance, group legal services, or acombination of any of the foregoing types of insurance orcoverage, for county employees and their dependents.

(E) The board of county commissioners may provide thebenefits described in divisions (A) to (D) of this sectionthrough an individual self-insurance program or a jointself-insurance program as provided in section 9.833 of theRevised Code.

(F) When a board of county commissioners offers health benefits authorizedunder this section to an a county officer or employee ~~of the county~~, the board mayoffer the benefits through a cafeteria plan meeting the requirements ofsection 125 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26U.S.C.A. 125, as amended, and, as part of that plan, may offer the county officer oremployee the option of receiving a cash payment in any form permissible undersuch cafeteria plans. A cash payment made to an a county officer or employee underthis division shall not exceed twenty-five per cent of the cost of premiums orpayments that otherwise would be paid by the board for benefits for the countyofficer or employee under a policy or plan.

(G) The board of county commissioners may establish a policy authorizing anycounty appointing authority to make a cash payment to any county officer or employeein lieu of providing a benefit authorized under this section if the county officer oremployee elects to take the cash payment instead of the offered benefit. Acash payment made to an a county officer or employee under this division shall notexceed twenty-five per cent of the cost of premiums or payments that otherwisewould be paid by the board for benefits for the county officer or employee under anoffered policy or plan.

(H) No cash payment in lieu of a health benefit shall be made to a countyofficer or employee under division (F) or (G) of this section unless the countyofficer or employee signs a statement affirming that the county officeror employee is covered under another health insurance or health carepolicy, contract, or plan, and setting forth the name of the employer, if any,that sponsors the coverage, the name of the carrier that provides thecoverage, and the identifying number of the policy, contract, or plan.

~~(a) "County-operated municipal court" and "legislativeauthority" have the same meanings as in section 1901.03 of theRevised Code.~~

~~(b) "Health care coverage" has the same meaning as insection 1901.111 of the Revised Code.~~

~~(2)~~ The legislative authority of a county-operatedmunicipal court, after consultation with the judges, or the clerkand deputy clerks, of the municipal court, shall negotiate andcontract for, purchase, or otherwise procure, and pay the costs,premiums, or charges for, group health care coverage for thejudges, and group health care coverage for the clerk and deputyclerks, in accordance with section 1901.111 or 1901.312 of theRevised Code.

(1) "County officer or employee" includes, but is not limited to, a member or employee of the county board of elections.

(2) "County-operated municipal court" and "legislative authority" have the same meanings as in section 1901.03 of the Revised Code.

(3) "Health care coverage" has the same meaning as in section 1901.111 of the Revised Code.

Sec. 305.28. If a board of county commissioners by resolution elects to participate in a criminal justice regional information system as provided in section 2949.093 of the Revised Code, the board also shall create in its county treasury a criminal justice regional information fund. All money deposited into the fund shall be used only as provided in that section.

Sec. 306.331. Notwithstanding section 306.33 of the Revised Code, the board of trustees of any regional transit authority created by one county and two municipal corporations, with the county having a population of at least five hundred thousand according to the most recent federal census, shall be appointed and governed as provided in this section.

The board of trustees of such a regional transit authority shall consist of nine members, six of whom shall be appointed by the board of county commissioners, two of whom shall be appointed by the most populous municipal corporation that is included in the regional transit authority, and one of whom shall be appointed by the second most populous municipal corporation in the county, regardless of whether the second most populous municipal corporation in the county is a member of the regional transit authority. A trustee appointed under this section shall serve at the pleasure of the appointing authority.

The trustees of any authority first appointed under this section shall serve staggered terms. Thereafter each successor shall serve a term of three years, except that any person appointed to fill a vacancy shall be appointed to only the unexpired term. The resolutions or ordinances creating the regional transit authority may determine whether an appointed trustee is eligible for reappointment.

A majority of the board of trustees constitutes a quorum, the affirmative vote of which is necessary for any action taken by the authority. No vacancy in the board shall impair the rights of a quorum to exercise all rights and perform all the duties of the authority.

Each member of the board of trustees, before entering upon the trustee's official duties, shall take and subscribe to an oath or affirmation that the trustee will honestly, faithfully, and impartially perform the duties of office and that the trustee will not be personally interested directly or indirectly in any contract let by the regional transit authority.

After each member of the board has taken the oath as prescribed by this section, the board shall meet and organize by electing one of its members as president and another as vice-president, who shall hold their respective offices until the next annual meeting of the board as provided in its bylaws. At each annual meeting thereafter, the board shall elect from its membership a president and a vice-president who shall serve for a term of one year. The board shall hold regular and special meetings in a time, place, and manner established in its bylaws, provided that all meetings shall be open to the public except executive sessions as set forth in section 122.22 of the Revised Code.

The board shall appoint and fix the compensation of a secretary-treasurer, who shall be the fiscal officer. The secretary-treasurer shall not be a member of the board and shall serve at the pleasure of the board. Each member of the board of trustees is entitled to receive from the regional transit authority reimbursement for reasonable expenses in the performance of the trustee's duties.

Sec. 307.37. (A)As used in division (B)(3) of this section, "proposednewconstruction" means a proposal to erect, construct, repair, alter,redevelop, or maintain a single-family, two-family, orthree-family dwelling or any structure that is regulated by the Ohio building code.

(B)(1)(a) The board of county commissioners may adopt local residential building regulations governing residential buildings as defined in section 3781.06 of the Revised Code, to be enforced within the unincorporated area of the county or within districts the board establishes in any part of the unincorporated area. No local residential building regulation shall differ from the state residential building code the board of building standards establishes pursuant to Chapter 3781. of the Revised Code unless the regulation addresses subject matter not addressed by the state residential building code or is adopted pursuant to section 3781.01 of the Revised Code.

(b) The board of county commissioners may, by resolution, adopt, administer, and enforce within the unincorporated area of the county, or within districts the board establishes in the unincorporated area, an existing structures code pertaining to the repair and continued maintenance of structures and the premises of those structures provided that the existing structures code governs subject matter not addressed by, and is not in conflict with, the state residential building code adopted pursuant to Chapter 3781. of the Revised Code. The board may adopt by ~~incorpoation~~ incorporation by reference a model or standard code prepared and promulgated by the state, any agency of this state, or any private organization that publishes a recognized or standard existing structures code.

(c) The board shall assign the duties of administering and enforcing any local residential building regulations or existing structures code to a county officer or employee who is trained and qualified for those duties and shall establish by resolution the minimum qualifications necessary to perform those duties.

(2) The board may adopt regulations forparticipation in the national flood insurance program establishedin the"Flood Disaster Protection Act of 1973," 87 Stat. 975, 42U.S.C.A. 4002, as amended, and regulations adopted for thepurposes of section 1506.04 or 1506.07 of the Revised Codegoverning the prohibition, location, erection, construction,redevelopment, or floodproofing of new buildings or structures,substantial improvements to existing buildings or structures, orother development in unincorporated territory within flood hazardareas identified under the"Flood Disaster Protection Act of1973," 87 Stat. 975, 42 U.S.C.A. 4002, as amended, or withinLakeErie coastal erosion areas identifiedunder section 1506.06 oftheRevised Code, including, but not limited to, residential,commercial, institutional, or industrial buildings or structuresor other permanent structures, as defined in section1506.01 of the Revised Code. Rules adopted under division(B)(2)of this section shall not conflict with the state residential and nonresidentialbuilding codes adopted pursuant to section 3781.10 of the Revised Code.

(3)(a)A board may adopt regulations thatprovidefor a review of the specific effects of a proposed newconstruction onexisting surface orsubsurface drainage.Theregulations mayrequire reasonable drainage mitigation andreasonable alteration of aproposed new construction before abuildingpermit is issued in orderto prevent orcorrect anyadverseeffects that the proposed new construction mayhaveonexistingsurface or subsurface drainage. The regulations shall not be inconsistent with, more stringent than, or broader in scope than standards adopted by the natural resource conservation service in the United States department of agriculture concerning drainage or rules adopted by the environmental protection agency for reducing, controlling, or mitigating storm water runoff from construction sites, where applicable. The regulations shall allow a person who is registered under Chapter 4703. or 4733. of the Revised Code to prepare and submit relevant plans and other documents for review, provided that the person is authorized to prepare the plans and other documents pursuant to the person's registration.

(b) If regulations are adopted under division (B)(3) of thissection, the board shall specify in the regulations a procedurefor the review of the specific effects of a proposed newconstruction onexisting surface or subsurface drainage. Theprocedure shallinclude at a minimum all of the following:

(i) A meeting at which the proposed new construction shallbeexamined for those specific effects. The meeting shall be heldwithinthirty days after an application for a building permit isfiled or a review is requestedunless the applicant agrees in writing to extend that timeperiodor to postpone the meeting to another date, time, or place.Themeeting shall be scheduled within five days after anapplicationfor a building permit is filed or a review is requested.

(ii) Written notice of the date, time, and place of thatmeeting, sent by regular mail to the applicant. The writtennotice shall be mailed at least seven days before the scheduledmeeting date.

(iii) Completion of the review by the board of countycommissioners not later than thirty days after the application fora building permit is filed or a review is requested unless the applicant has agreed inwriting to extend that time period or postpone the meeting to alater time, in which case the review shall be completed not laterthan two days after the date of the meeting. A complete reviewshall include the issuance of any order of the board of countycommissioners regarding necessary reasonable drainage mitigationandnecessary reasonable alterations to the proposednewconstructionto prevent or correct any adverse effects on existingsurfaceorsubsurface drainage so long as those alterations comply with the state residential and nonresidential building codes adopted pursuant to section 3781.10 of the Revised Code. If the review is not completedwithin thethirty-day period or an extended or postponed periodthat theapplicant has agreed to, the proposed new constructionshall bedeemedto have no adverse effects on existing surface orsubsurfacedrainage, and those effects shall not be a valid basisfor the denial of abuilding permit.

(iv) A written statement, provided to the applicant at themeeting or in an order for alterations to a proposed newconstruction,informing the applicant of the right to seekappellate review ofthe denial of a building permit under division(B)(3)(b)(iii) ofthis section by filing a petition in accordancewith Chapter 2506.of the Revised Code.

(c) The regulations may authorize the board, after obtaining the advice of the county engineer, to enter intoan agreement with the countyengineer or anotherqualifiedpersonorentity to carry outany necessaryinspections and makeevaluations about what, if any,alterationsarenecessary toprevent or correct any adverseeffects that aproposednewconstruction mayhave on existingsurface orsubsurface drainage.

(d) Regulations adopted pursuant to division (B)(3) of thissection shall not apply to any property that a platting authority has approved under section 711.05, 711.09, or 711.10 of the Revised Code and shall not govern the same subject matter as the state residential or nonresidential building codes adopted pursuant to section 3781.10 of the Revised Code.

(e) As used in division (B)(3) of this section, "subsurfacedrainage" does not include a household sewage treatment system asdefined in section 3709.091 of the Revised Code.

(C)(1) Any regulation, code, or amendment may be adopted under thissection only after a public hearing at not fewer than two regular or specialsessions of the board. The board shall cause notice of any public hearing to be published inanewspaper of general circulation in the county once a week for the two consecutive weeks immediately preceding the hearing, except that if the board posts the hearing notice on the board's internet site on the world wide web, the board need publish only one notice of the hearing in a newspaper of general circulation if that newspaper notice includes the board's internet site and a statement that the notice is also posted on the internet site. Any notice of apublic hearing shall include the time, date, and place of the hearing.

(2) Any proposed regulation, code, or amendment shall be made available tothe public at the board office. The regulations or amendmentsshall take effect on the thirty-first day following the date oftheir adoption.

(D)(1) No person shall violate any regulation, code, or amendment theboard adopts under sections 307.37 to 307.40 of the Revised Code.

(2) Each day during which an illegal location, erection,construction, floodproofing, repair, alteration, development,redevelopment, or maintenance continues may be considered aseparate offense.

(E) Regulationsor amendments the board adopts pursuant to this section, with the exception of an existing structures code, donotaffect buildings or structures that exist or onwhichconstruction has begun on or before the date the board adopts the regulationoramendment.

(F)(1) The board may create a building department and employ the personnel it determines necessary to administer and enforce any local residential building regulations or existing structures code the board adopts pursuant to this section. The building department may enforce the state residential and nonresidential building codes adopted pursuant to Chapter 3781. of the Revised Code if the building department is certified pursuant to section 3781.10 of the Revised Code to enforce those codes.

(2) The board may direct the buildingdepartment, upon certification, to exercise enforcement authority and to accept andapprove plans pursuant to sections 3781.03 and 3791.04 of theRevised Code for the class of building for which the department and personnel are certified.

(1) "Food and beverages" means any raw, cooked, or processed edible substance used or intended for use in whole or in part for human consumption, including ice, water, spirituous liquors, wine, mixed beverages, beer, soft drinks, soda, and other beverages.

(2) "Convention facilities authority" has the same meaning as in section 351.01 of the Revised Code.

(3) "Convention center" has the same meaning as in section 307.695 of the Revised Code.

(B) The legislative authority of a county with a population of one million two hundred thousand or more according to the most recent federal decennial census or the most recent annual population estimate published or released by the United States census bureau at the time the resolution is adopted placing the levy on the ballot, may, by resolution adopted on or before July 1, 2008, by a majority of the members of the legislative authority and with the subsequent approval of a majority of the electors of the county voting upon it, levy a tax of not more than two per cent on every retail sale in the county of food and beverages to be consumed on the premises where sold to pay the expenses of administering the tax and to provide revenues for paying the direct and indirect costs of constructing, improving, expanding, equipping, financing, or operating a convention center. The resolution shall direct the board of elections to submit the question of levying the tax to the electors of the county at the next primary or general election in the county occurring not less than seventy-five days after the resolution is certified to the board of elections. The legislative authority shall establish all rules necessary to provide for the administration and allocation of the tax. The rules may prescribe the time for payment of the tax and may provide for imposition of a penalty, interest, or both for late payments, but any such penalty shall not exceed ten per cent of the amount of tax due and the rate at which interest accrues shall not exceed the rate per annum required under section 5703.47 of the Revised Code.

(C) A tax levied under this section shall remain in effect for the period of time specified in the resolution or ordinance levying the tax, but not for a longer period than forty years.

(D) A tax levied under this section is in addition to any other tax levied under Chapter 307., 4301., 4305., 5739., 5741., or any other chapter of the Revised Code. "Price," as defined in sections 5739.01 and 5741.01 of the Revised Code, does not include any tax levied under this section and any tax levied under this section does not include any tax imposed under Chapter 5739. or 5741. of the Revised Code.

(E) Any amount collected from a tax levied under this section may be contributed to a convention facilities authority created before July 1, 2005, but no amount collected from a tax levied under this section may be contributed to a convention facilities authority, corporation, or other entity created after July 1, 2005, unless the mayor of the municipal corporation in which the convention center is to be operated by that convention facilities authority, corporation, or other entity has consented to the creation of that convention facilities authority, corporation, or entity.

(F) The levy of any taxes under Chapter 5739. of the Revised Code on the same transactions subject to a tax under this section does not prevent the levy of a tax under this section.

Sec. 307.695. (A) As used in this section, "conventioncenter" means any structure expressly designed and constructedforthe purposes of presenting conventions, public meetings, andexhibitions and includes parking facilities that serve the centerand any personal property used in connection with any suchstructure or facilities.

(B) A board of county commissioners may enter into anagreement with a convention and visitors' bureau operating in thecounty under which:

(1) The bureau agrees to construct and equip a conventioncenter in the county and to pledge and contribute from the taxrevenues received by it under division (A) of section5739.09 ofthe Revised Code, not more than such portion thereof that it isauthorized to pledge and contribute for the purposedescribed indivision (C) of this section; and

(2) The board agrees to levy a tax under division (C) ofsection5739.09 of the Revised Code and pledge andcontributetherevenues therefrom for the purpose described indivision (C)ofthis section.

(C) The purpose of the pledges and contributions describedin divisions (B)(1) and (2) of this section is payment ofprincipal, interest, and premium, if any, on bonds and notesissued by or for the benefit of the bureau to finance theconstruction and equipping of a convention center. The pledgesand contributions provided for in the agreement shall be for theperiod stated in the agreement, but not to exceed thirty years.Revenues determined from time to time by the board to be neededtocover the real and actual costs of administering the taximposedby division (C) of section5739.09 of the Revised Codemay not bepledged or contributed. The agreement shall providethat any suchbonds and notes shall be secured by a trustagreement between thebureau or other issuer acting for thebenefit of the bureau and acorporate trustee that is a trustcompany or bank having thepowers of a trust company within orwithout the state, and thetrust agreement shall pledge or assignto the retirement of thebonds or notes, all moneys paid by thecounty under this section.A tax the revenues from which arepledged under an agreemententered into by a board of countycommissioners under this sectionshall not be subject todiminution by initiative or referendum, ordiminution by statute,unless provision is made therein for anadequate substitutetherefor reasonably satisfactory to thetrustee under the trustagreement that secures the bonds andnotes.

(D) A pledge of money by a county under this section shallnot be indebtedness of the county for purposes of Chapter 133. ofthe Revised Code.

(E) If the terms of the agreement so provide, the board ofcounty commissioners may acquire and lease real property to theconvention bureau as the site of the convention center. Theleaseshall be for a term not to exceed thirty years and shall beonsuch terms as are set forth in the agreement. The purchaseandlease are not subject to the limitations of sections 307.02and307.09 of the Revised Code.

(F) In addition to the authority granted to a board of county commissioners under divisions (B) to (E) of this section, a board of county commissioners in a county with a population of one million two hundred thousand or more may establish and provide local funding options for constructing and equipping a convention center.

Sec. 307.86. Anything to be purchased, leased, leased withan option or agreement to purchase, or constructed, including,butnot limited to, any product, structure, construction,reconstruction, improvement, maintenance, repair, or service,except the services of an accountant, architect, attorney at law,physician, professional engineer, construction project manager,consultant, surveyor, or appraiser, by or on behalf of the countyor contracting authority, as defined in section 307.92 of theRevised Code, at a cost in excess of twenty-five thousand dollars,exceptas otherwise provided in division (D) of section 713.23 andinsections 125.04, 125.60 to 125.6012, 307.022, 307.041, 307.861, 339.05, 340.03,340.033,4115.31 to 4115.35, 5119.16, 5513.01, 5543.19, 5713.01,and6137.05 of the Revised Code, shall be obtained throughcompetitive bidding. However, competitive bidding is notrequiredwhen any of the following applies:

(A) The board of county commissioners, by a unanimous voteof its members, makes a determination that a real and presentemergency exists, and that determination and thereasons for itare entered in the minutes of the proceedings of the board, wheneither ofthe following applies:

(2) There is actual physical disaster to structures, radiocommunicationsequipment, or computers.

For purposes of this division, "unanimous vote" means allthree members ofa board of county commissioners when all threemembers are present, or twomembers of the board if only twomembers, constituting a quorum, are present.

Whenever a contract of purchase, lease, or construction isexempted from competitive bidding under division (A)(1) of thissection because the estimated cost is less than fifty thousanddollars, but the estimated cost is twenty-five thousand dollars ormore,the county or contracting authority shall solicit informalestimates from no fewer than three persons who could perform thecontract, before awarding the contract. With regard to each suchcontract, the county or contracting authority shall maintain arecord of such estimates, including the name of each person fromwhom an estimate is solicited. The county or contractingauthority shall maintain the record for the longerof at least oneyear afterthe contract is awarded or the amount of time thefederal governmentrequires.

(B)(1) The purchase consists of supplies or a replacement orsupplemental part or parts for a product or equipment owned orleased by the county, and the only source of supply for thesupplies, part, or parts is limited to a single supplier.

(2) The purchase consists of services related to information technology, such as programming services, that are proprietary or limited to a single source.

(C) The purchase is from the federal government, the state,another county or contracting authority of another county, or aboard ofeducation, township, or municipal corporation.

(D) The purchase is made by a county department of job and family services under section 329.04 of the Revised Code and consists of family services duties or workforce developmentactivities or is made by a county board of mental retardation and developmental disabilities under section 5126.05 of the Revised Code and consists of program services, such as direct andancillary client services,child care, case managementservices, residential services,and family resource services.

(E) The purchase consists ofcriminal justice services,social services programs, family services,or workforcedevelopment activities bythe board of county commissioners fromnonprofit corporations orassociations under programsfunded bythefederal governmentor by state grants.

(F) The purchase consists of any form of an insurancepolicyor contract authorized to be issued under Title XXXIX oftheRevised Code or any form of health care planauthorized to beissued under Chapter 1751. of the Revised Code, or anycombinationof such policies,contracts, or plans that the contractingauthority is authorizedto purchase, and the contracting authoritydoes all of thefollowing:

(1) Determines that compliance with the requirements ofthissection would increase, rather than decrease, the cost ofthepurchase;

(2) Employs a competent consultant to assist thecontractingauthority in procuring appropriate coverages at thebest andlowest prices;

(3) Requests issuers ofthe policies, contracts, orplansto submit proposals to the contracting authority, in a formprescribed by the contracting authority, setting forth thecoverage and cost ofthe policies, contracts, or plans as thecontracting authority desires to purchase;

(4) Negotiates withthe issuers for the purpose ofpurchasingthe policies, contracts, or plans at the best andlowest price reasonably possible.

(G) The purchase consists of computer hardware, software,orconsulting services that are necessary to implement acomputerizedcase management automation project administered bythe Ohioprosecuting attorneys association and funded by a grantfrom thefederal government.

(I)(1) Property, including land, buildings, and other realproperty, is leased for offices, storage, parking, or otherpurposes, and all of the following apply:

(a) The contracting authority is authorized by the RevisedCode to lease theproperty.

(b) The contracting authority develops requests forproposals for leasing the property, specifying the criteria thatwill be considered prior to leasing the property, including thedesired size and geographic location of the property.

(c) The contracting authority receives responses fromprospective lessors with property meeting the criteria specifiedin the requests for proposals by giving notice in a mannersubstantially similar to the procedures established for givingnotice under section 307.87 of the Revised Code.

(d) The contracting authority negotiates with theprospective lessors to obtain a lease at the best and lowestpricereasonably possible considering the fair market value oftheproperty and any relocation and operational costs that may beincurredduring the period the lease is in effect.

(2) The contracting authority may use the services of arealestate appraiser to obtain advice, consultations, or otherrecommendations regarding the lease of property under thisdivision.

(J) The purchase is made pursuant to section 5139.34 orsections5139.41 to 5139.46 of the Revised Code and is of programsor services thatprovide casemanagement, treatment, or preventionservices to any felony or misdemeanantdelinquent, unruly youth,or status offender under the supervision of thejuvenile court,including, but not limited to, communityresidential care, daytreatment, services to children in their home, orelectronicmonitoring.

(K) The purchase is made by a public children servicesagency pursuant tosection 307.92 or 5153.16 of the Revised Codeand consists offamily services,programs, or ancillary servicesthat provide case management, prevention, ortreatment servicesfor children at risk of being or alleged to be abused,neglected,or dependent children.

(L) The purchase is to obtain the services of emergency medical service organizations under a contract made by the board of county commissioners pursuant to section 307.05 of the Revised Code with a joint emergency medical services district.

Any issuer of policies, contracts, or plans listed indivision (F) of this section and any prospective lessor underdivision (I) ofthis section may have the issuer's or prospectivelessor'sname and address, or the name and addressof an agent,placed on a specialnotification list to be kept by thecontracting authority, bysending the contracting authoritythatname and address. Thecontracting authority shall sendnotice toall persons listed onthe special notification list.Notices shallstate the deadlineand place for submittingproposals. Thecontracting authorityshall mail the notices atleast six weeksprior to the deadlineset by the contractingauthority forsubmitting proposals. Every five years thecontracting authoritymay review this listand remove any personfrom the list aftermailing the personnotification ofthataction.

Any contracting authority that negotiates a contract underdivision (F) of this section shall request proposals andrenegotiate with issuers in accordance with that division atleastevery three years from the date of the signing of such acontract.

Any consultant employed pursuant to division (F) of thissection and any real estate appraiser employed pursuant todivision (I) ofthis section shall disclose any fees orcompensation received from anysource in connection with thatemployment.

Sec. 307.88. (A) Bids submitted pursuant to sections307.86 to 307.92 of the Revised Code shall be in a formprescribed by the contracting authority and filed in a sealedenvelope at the time and place mentioned in the ~~advertisement~~ notice.The bids received shall be opened and tabulated at the timestated in the notice. Each bid shall contain the full name ofeach person submitting the bid. ~~Except as otherwise provided indivision (B) of this section, if~~ If the bid is in excess of ~~ten~~ twenty-fivethousand dollars and for a contract for the construction,demolition, alteration, repair, or reconstruction of animprovement, it shall meet the requirements of section 153.54 ofthe Revised Code. If the bid is in excess of ~~ten~~ twenty-five thousanddollars and for any other contract authorized by sections 307.86to 307.92 of the Revised Code, it shall be accompanied by a bondor certified check, cashier's check, or money order on a solventbank or savings and loan association in a reasonable amountstated in the ~~advertisement~~ notice but not to exceed five per cent ofthe bid, conditioned that ~~he shall~~ the bidder, if ~~his~~the bidder's bid is accepted, shall execute a contract in conformity to theinvitation and ~~his~~ the bid.

(B) The board of county commissioners ~~may~~, by a unanimousvote of the entire board, may permit a contracting authority toexempt a bid from any or all of the requirements of section153.54 of the Revised Code if the estimated cost is ~~less than~~twenty-five thousand dollars or less. If the board exempts a bid fromany but not all of ~~these~~ those requirements, the bid notice publishedin the newspaper pursuant to section 307.87 of the Revised Codeshall state the specific bid guaranty requirements that apply.If the board exempts a bid from all requirements of section153.54 of the Revised Code, the notice shall state that none ofthe requirements of that section apply.

Sec. 317.08. (A) Except as provided indivisions(C) and (D) of thissection, the county recorder shall keepsixseparate setsofrecords as follows:

(1) A record of deeds, in which shall be recorded alldeedsand other instruments of writing for the absolute andunconditional sale or conveyance of lands, tenements, andhereditaments; all notices as provided in sections 5301.47 to5301.56 of the Revised Code; all judgments or decrees in actionsbrought under section 5303.01 of the Revised Code; alldeclarations and bylaws, and all amendments to declarations andbylaws, as provided in Chapter 5311. of theRevised Code;affidavits as provided in section 5301.252 ofthe RevisedCode; all certificates as provided in section5311.17 of theRevised Code; all articles dedicatingarchaeological preservesaccepted by the director of the Ohiohistorical society undersection 149.52 of the Revised Code; allarticles dedicating naturepreserves accepted by the director ofnatural resources undersection 1517.05 of the Revised Code; allagreements for theregistration of lands as archaeological orhistoric landmarksunder section 149.51 or 149.55 of the RevisedCode; allconveyances of conservation easements and agriculturaleasementsunder section5301.68 of the Revised Code; allinstrumentsextinguishing agriculturaleasements under section901.21 or5301.691 of the Revised Code or pursuant toterms ofsuch aneasement granted to a charitable organization undersection5301.68 of the Revised Code; all instruments or ordersdescribedin division (B)(1)(c)(ii) of section 5301.56 of theRevised Code;all no further action letters issued under section122.654 or3746.11 of theRevised Code;all covenants not to sueissued undersection3746.12 of theRevised Code, including allcovenantsnotto sue issued pursuant to section 122.654 of theRevised Code;anyrestrictions on the use of property contained ina no furtheraction letter issued under section 122.654 of theRevised Code,any restrictions on the use ofpropertyidentifiedpursuant todivision (C)(3)(a) of section3746.10 of theRevisedCode, and any restrictions on the use of property contained in a deed or other instrument as provided in division (E) or (F) of section 3737.882 of the Revised Code; any easement executed or granted under section 3734.22, 3734.24, 3734.25, or 3734.26 of the Revised Code; any environmental covenant entered into in accordance with sections 5301.80 to 5301.92 of the Revised Code; allmemoranda of trust, asdescribed in division (A)ofsection5301.255 of the RevisedCode, that describe specificrealproperty; and all agreementsentered into under division (A)ofsection 1521.26 ofthe Revised Code;

(a) All mortgages, including amendments, supplements,modifications, and extensions of mortgages, or other instrumentsof writing by which lands, tenements, or hereditaments are or maybe mortgaged or otherwise conditionally sold, conveyed, affected,or encumbered;

(b) All executory installment contracts for the sale oflandexecuted after September 29, 1961, that by their terms arenotrequired to be fully performed by one or more of the partiestothem within one year of the date of the contracts;

(c) All options to purchase real estate, includingsupplements, modifications, and amendments of the options, but nooption of that nature shall be recorded if it does not state aspecific day and year of expiration of its validity;

(d) Any tax certificate sold under section 5721.33 of theRevised Code,or memorandumof it, that is presented forfilingof record.

(3) A record of powers of attorney, including allmemorandaof trust, as described in division (A) of section5301.255 of theRevised Code, that do not describe specific realproperty;

(4) A record of plats, in which shall be recorded allplatsand maps of town lots, of the subdivision of town lots, andofother divisions or surveys of lands, any center line survey ofahighway located within the county, the plat of which shall befurnished by the director of transportation or county engineer,and all drawingsand amendments to drawings, as provided inChapter 5311. of the RevisedCode;

(5) A record of leases, in which shall be recorded allleases, memoranda of leases, and supplements, modifications, andamendments of leases and memoranda of leases;

(6) A record of declarationsexecuted pursuant to section2133.02 of theRevised Codeand durable powers of attorney forhealth care executed pursuant to section1337.12 of the RevisedCode.

(B) All instruments or memoranda of instruments entitled torecord shall be recorded in the proper record in the order inwhich they are presented for record. The recorder may index,keep, and record in one volume unemployment compensation liens,internal revenue tax liens and other liens in favor of the UnitedStates as described in division (A) of section 317.09 of theRevised Code, personal tax liens, mechanic's liens, agriculturalproduct liens, notices of liens, certificates of satisfaction orpartial release of estate tax liens, discharges of recognizances,excise and franchise tax liens on corporations, broker's liens,and liensprovided for in sections 1513.33, 1513.37, 3752.13,~~5111.021~~ 5111.022, and5311.18of the Revised Code.

The recording of an option to purchase real estate,includingany supplement, modification, and amendment of theoption, underthis section shall serve as notice to any purchaserof an interestin the real estate covered by the option onlyduring the period ofthe validity of the option as stated in theoption.

(C) In lieu of keeping the six separatesets of recordsrequired in divisions (A)(1) to(6) of this section and therecordsrequired in division(D) of this section, a countyrecorder mayrecord all the instruments required to be recorded bythissectionin two separate sets of record books. One set shallbecalled the"official records" and shall contain the instrumentslisted indivisions (A)(1),(2),(3),(5),and (6)and(D) of this section. Thesecond set of records shallcontain the instruments listed indivision(A)(4) of thissection.

(D) Except as provided in division(C)of thissection, thecounty recorder shall keep a separate set of recordscontainingall corrupt activity lien notices filed with therecorder pursuantto section 2923.36 of the Revised Code and aseparate set ofrecords containing all medicaid fraud liennoticesfiled with therecorder pursuant to section 2933.75 ofthe RevisedCode.

Sec. 317.36. (A) The county recorder shall collect the low- and moderate-income housing trust fund fee as specified in sections 317.32, 1563.42, 1702.59, 2505.13, 4141.23, 4509.60, ~~5111.021~~ 5111.022, 5310.15, 5719.07, 5727.56, 5733.18, 5733.22, 6101.09, and 6115.09 of the Revised Code. The amount of any housing trust fund fee the recorder is authorized to collect is equal to the amount of any base fee the recorder is authorized to collect for services. The housing trust fund fee shall be collected in addition to the base fee.

(B) The recorder shall certify the amounts collected as housing trust fund fees pursuant to division (A) of this section into the county treasury as housing trust fund fees to be paid to the treasurer of state pursuant to section 319.63 of the Revised Code.

Sec. 319.20. After complying with sections 319.202,315.251, and 319.203 of theRevised Code, and on application and presentation of title, withthe affidavits required by law, or the proper order of a court,bearing the last known address of the grantee, or of any one ofthe grantees named in the title, and a reference to the volumeand page of the recording of the next preceding recordedinstrument by or through which the grantor claims title, thecounty auditor shall transfer any land or town lot or partthereof, minerals therein, or mineral rights thereto, chargedwith taxes on the tax list, from the name in which it stands intothe name of the owner, when rendered necessary by a conveyance,partition, devise, descent, or otherwise. If by reason of theconveyance or otherwise, a part only of a tract or lot, mineralstherein, or mineral rights thereto, as charged in the tax list,is to be transferred, the auditor shall determine the tax valueof the part of a tract or lot of real estate, minerals therein,or mineral rights thereto, so transferred, and the value of theremaining part compared with the value of the whole.

Whenever a part only of a tract or lot of real estate hasbeen transferred by the auditor and ~~such~~ the tract or lot bearsunpaid taxes, penalties, interest, or special assessments, theunpaid taxes, penalties, interest, or special assessments shallimmediately be apportioned, upon demand or request by thetransferee or remaining owner, in the following manner:

(A) The auditor shall allocate to the part so transferred,and to the remaining part, amounts of any current or delinquenttaxes, interest, or penalties that have accrued against theparcel as a whole, proportionate to their respective values.

(B) The lien of taxes, penalties, interest, and specialassessments, as levied against the original tract, shall extendto the part so transferred and the part remaining only to theextent of the amounts so allocated to the respective parts.

This section does not change the total amount of taxes,special assessments, or other charges as originally levied, orthe total amount of the balance due. The auditor shall certifysuch apportionments to the county treasurer.

Whenever the state acquires an entire parcel or a part onlyof a parcel of real property in fee simple, the county auditor,upon application of the grantor or property owner or the state,which application shall contain a description of the property asit appears on the tax list and the date of transfer of ownership,shall prepare an estimate of the taxes that are a lien on ~~said~~the property, but have not been determined, assessed, and levied forthe year in which the property was acquired. The county auditorshall thereupon apportion ~~such~~ the estimated taxes proportionatelybetween the grantor and the state for the period of the lien yearthat each had or shall have had ownership or possession of theproperty, whichever is earlier. The county treasurer shall accept payment from the state for estimated taxes at the time that the real property is acquired. If the state has paid in full in the year in which the property is acquired that proportion of the estimated taxes that the tax commissioner determines are not subject to remission by the county auditor for such year under division (C) of section 5713.08 of the Revised Code, the estimated taxes paid shall be considered the tax liability on the exempted property for that year.

Section 319.42 of the Revised Code applies to theapportionment of special assessments.

Complaint against such values as determined by the auditoror the allocation of assessments by the certifying authority maybe filed by the transferee or the remaining owner, and if filed,proceedings including appeals shall be had in the manner andwithin the time provided by sections 5717.01 to 5717.06 and5715.19 to 5715.22 of the Revised Code, for complaints againstvaluation or assessment of real property.

The auditor shall endorse on the deed or other evidences oftitle presented to the auditor that the proper transfer of the realestate described in ~~such~~ the deed has been made in the auditor's officeor thatit is not entered for taxation, and sign the auditor's name to ~~such~~the deed. The address of the grantee, or any one of the grantees, set forthin the deed or other evidences of title shall be entered by theauditor on the transfer sheets and on the general tax list ofreal property prepared pursuant to section 319.28 of theRevised Code.

Sec. 319.302. (A)(1) Real property that is not intended primarily for use in a business activity shall qualify for a partial exemption from real property taxation. For purposes of this partial exemption, "business activity" includes all uses of real property, except farming; leasing property for farming; occupying or holding property improved with single-family, two-family, or three-family dwellings; leasing property improved with single-family, two-family, or three-family dwellings; or holding vacant land that the county auditor determines will be used for farming or to develop single-family, two-family, or three-family dwellings. For purposes of this partial exemption, "farming" does not include land used for the commercial production of timber that is receiving the tax benefit under section 5713.23 or 5713.31 of the Revised Code and all improvements connected with such commercial production of timber.

(2) Each year, the county auditor shall review each parcel of real property to determine whether it qualifies for the partial exemption provided for by this section as of the first day of January of the current tax year.

(B) After complying with section 319.301 of theRevised Code, thecounty auditor shall reduce the remaining sumsto be levied against each parcel of real property that is listed on thegeneral tax list and duplicate of real and public utilityproperty for the current tax year and that qualifies for partial exemption under division (A) of this section, and against each manufacturedand mobile home that istaxed pursuant to division (D)(2) of section4503.06 of the Revised Code and that is on themanufactured home tax list for the current tax year, by ten percent, to provide a partial exemption for that parcel or home. Except as otherwise provided in sections 323.152, 323.158, 505.06,and 715.263 of the Revised Code, theamount of the taxes remaining after any such reduction shall be thereal and public utility property taxes charged and payable on each parcel of real property, including property that does not qualify for partial exemption under division (A) of this section, and themanufactured home tax charged and payable, oneach ~~property~~ manufactured or mobile home, and shall be the amounts certified to the countytreasurer for collection. Upon receipt of the tax duplicate, thetreasurer shall certify to the tax commissioner the total amountby which taxes were reduced under this section, as shown onthe duplicate. Such reduction shall not directly or indirectlyaffect the determination of the principal amount of notes thatmay be issued in anticipation of any tax levies or the amount ofbonds or notes for any planned improvements. If afterapplication of sections 5705.31 and 5705.32 of the Revised Codeand other applicable provisions of law, including divisions (F) and (I) ofsection 321.24 of the Revised Code, there would be insufficientfunds for payment of debt charges on bonds or notes payable fromtaxes reduced by this section, the reduction of taxes providedfor in this section shall be adjusted to the extent necessary toprovide funds from such taxes.

(C) The tax commissioner may adopt rules governing the administration of the partial exemption provided for by this section.

(D) The determination of whether property qualifies for partial exemption under division (A) of this section is solely for the purpose of allowing the partial exemption under division (B) of this section.

Sec. 321.24. (A) On or before the fifteenth day ofFebruary, in each year, the county treasurer shall settle withthecounty auditor for all taxes and assessments that thetreasurerhascollected on the general duplicate of real and public utilityproperty at the time of making the settlement.

(B) On or before the thirtieth day of June, in each year,the treasurer shall settle with the auditor for all advancepayments of general personal and classified property taxes thatthe treasurer has received at the time of making thesettlement.

(C) On or before the tenth day of August, in each year,thetreasurer shall settle with the auditor for all taxes andassessments that the treasurer has collected on the generalduplicates ofreal and public utility property at the time ofmaking suchsettlement, not included in the preceding Februarysettlement.

(D) On or before the thirty-first day of October, in eachyear, the treasurer shall settle with the auditor for all taxesthat the treasurer has collected on the general personal andclassifiedproperty duplicates, and for all advance payments ofgeneralpersonal and classified property taxes, not included inthepreceding June settlement, that the treasurer has received atthe time ofmaking such settlement.

(E) In the event the time for the payment of taxes isextended, pursuant to section 323.17 of the Revised Code, thedateon or before which settlement for the taxes so extended mustbemade, as herein prescribed, shall be deemed to be extended foralike period of time. At each such settlement, the auditorshallallow to the treasurer, on the moneys received or collectedandaccounted for by the treasurer, thetreasurer's fees, at therate or percentageallowed by law, at a full settlement of thetreasurer.

(F) Within thirty days after the day of each settlement oftaxes required under divisions (A) and (C) of this section, thetreasurer shall certify to the tax commissioner any adjustments~~which~~ that have been made to the amount certified previously pursuantto section 319.302 of the Revised Code and that the settlementhasbeen completed. Upon receipt of such certification, thecommissioner shall provide for payment to the county treasurerfrom the general revenue fund of an amount equal to one-half ofthe amount certified by the treasurer in the preceding tax yearunder section 319.302 of the Revised Code, less one-half of the amount computed for all taxing districts in that county for the current fiscal year under section 5703.80 of the Revised Code for crediting to the property tax administration fund. Such payment shall becredited upon receipt to the county's undivided income tax fund,and the county auditor shall transfer to the county general fundfrom the amount thereof the total amount of all fees and chargeswhich the auditor and treasurer would have been authorized toreceive had such section not been in effect and thatamount hadbeen levied and collected as taxes. The county auditor shalldistribute the amount remaining among the various taxingdistrictsin the county as if it had been levied, collected, andsettled asreal property taxes. The amount distributed to each taxing district shall be reduced by the total of the amounts computed for the district under ~~divisions (A), (B), and (C) of~~ section 5703.80 of the Revised Code, but the reduction shall not exceed the amount that otherwise would be distributed to the taxing district under this division. The tax commissioner shall make available to taxing districts such information as is sufficient for a taxing district to be able to determine the amount of the reduction in its distribution under this section.

(G)(1) Within thirty days after the day of the settlementrequired in division (D) of this section, the county treasurer shall notify the tax commissioner that the settlement has beencompleted. Upon receipt of that notification, the commissionershall provide for payment to the county treasurer from thegeneralrevenue fund of an amount equal to the amount certified under former section319.311 of theRevised Code and paid in the state's fiscal year 2003 multiplied by the percentage specified in division (G)(2) of this section. The paymentshall be creditedupon receipt to the county's undivided incometax fund, and thecounty auditor shall distribute the amountthereof among thevarious taxing districts of the county as if ithad been levied,collected, and settled as personal propertytaxes. The amountreceived by a taxing district under thisdivision shall beapportioned among its funds in the sameproportion as the currentyear's personal property taxes areapportioned.

(2) Payments required under division (G)(1) of this section shall be made at the following percentages of the amount certified under former section 319.311 of the Revised Code and paid under division (G)(1) of this section in the state's fiscal year 2003:

After fiscal year ~~2012~~ 2009, no payments shall be made under division (G)(1) of this section.

(H)(1) On or before the fifteenth day of April eachyear,the county treasurer shall settle with the county auditor for allmanufactured home taxes that the county treasurer hascollected onthemanufactured home tax duplicate at the time of making thesettlement.

(2) On or before the fifteenth day of September each year,thecounty treasurer shall settle with the county auditor for allremaining manufactured home taxes that the countytreasurer hascollected on the manufactured home tax duplicate atthe time ofmaking the settlement.

(3) If the time for payment of such taxes is extended undersection 4503.06 of the Revised Code, the time for making thesettlement as prescribed by divisions (H)(1) and (2) of thissection is extended for a like period of time.

(I) Within thirty days after the day of each settlement oftaxes required under division (H) of this section, the county treasurershall certify to the tax commissioner any adjustments that havebeen made to the amount certified previously pursuant to section319.302 of the Revised Code and that the settlement has beencompleted. Upon receipt of such certification, the commissionershall provide for payment to the county treasurer from the generalrevenue fund of an amount equal to one-half of the amountcertified by the treasurer in the current tax year under section319.302 of the Revised Code. Such payment shall be credited uponreceipt to the county's undivided income tax fund, and the countyauditor shall transfer to the county general fund from the amountthereof the total amount of all fees and charges that the auditorand treasurer would have been authorized to receive had suchsection not been in effect and that amount had been levied andcollected as taxes. The county auditor shall distribute theamount remaining among the various taxing districts in the countyas if it had been levied, collected, and settled as manufacturedhome taxes.

Sec. 323.01. Except as otherwise provided, as used inChapter 323. of the Revised Code:

(A) "Subdivision" means any county, township, schooldistrict, or municipalcorporation.

(C) "Taxes" means the total amount of all charges againstan entry appearing on a tax list and the duplicate thereof thatwas prepared and certified in accordance with section 319.28 ofthe Revised Code, including taxes levied against real estate;taxes on property whose value is certified pursuant to section5727.23 of the Revised Code; recoupment charges applied pursuantto section 5713.35 of the Revised Code; all assessments;penalties and interest charged pursuant to section 323.121 of theRevised Code; charges added pursuant to section 319.35 of theRevised Code; and all of such charges which remain unpaid fromany previous tax year.

(D) "Current taxes" means all taxes charged against anentry on the general tax list and duplicate of real and publicutility property that have not appeared on such list andduplicate for any prior tax year and any penalty thereon chargedby division (A) of section 323.121 of the Revised Code. Currenttaxes, whether or not they have been certified delinquent, becomedelinquent taxes if they remain unpaid after the last dayprescribed for payment of the second installment of current taxeswithout penalty.

(1) Any taxes charged against an entry on the general taxlist and duplicate of real and public utility property that werecharged against an entry on such list and duplicate for a priortax year and any penalties and interest charged against suchtaxes.

(2) Any current taxes charged on the general tax list andduplicate of real and public utility property that remain unpaidafter the last day prescribed for payment of the secondinstallment of such taxes without penalty, whether or not theyhave been certified delinquent, and any penalties and interestcharged against such taxes.

(F) "Current tax year" means, with respect to particulartaxes, the calendar year in which the first installment of taxesis due prior to any extension granted under section 323.17 of theRevised Code.

(1) Any sum of money due and payable, upon a writtencontractual obligation executed between the subdivision and thetaxpayer, but excluding any amount due on general and specialassessment bonds and notes;

(2) Any sum of money due and payable, fordisability financial assistance ~~or disability medical assistance~~ provided under Chapter5115. of the Revised Code that is furnished to or in behalf ofa subdivision, provided that such claim is recognized by aresolution or ordinance of the legislative body of suchsubdivision;

(3) Any sum of money advanced and paid to or received andused by a subdivision, pursuant to a resolution or ordinance ofsuch subdivision or its predecessor in interest, and the moralobligation to repay which sum, when in funds, shall be recognizedby resolution or ordinance by the subdivision.

Sec. 323.152. In addition to the reduction in taxesrequiredunder section 319.302 of the Revised Code, taxes shallbe reducedas provided in divisions (A) and(B) of this section.

(c) A person who is the surviving spouse of a deceasedperson who was permanently and totally disabled or sixty-fiveyears of age or older and who applied and qualified for areduction in taxes under this division in the year of death,provided thesurviving spouse is at least fifty-nine but notsixty-five or more years ofage on the date the deceased spousedies.

(2) Real property taxes on a homestead owned and occupied,or ahomestead in a housing cooperative occupied, by aperson towhom division (A) of this sectionapplies shall be reduced foreach year for which the owner obtains a certificate of reductionfrom the county auditor under section 323.154 of the RevisedCodeor for which the occupant obtains a certificate of reduction inaccordance withsection 323.159 of the Revised Code. Thereductionshall equal the amount obtained bymultiplying the taxrate for the tax year for which thecertificate is issued by thereduction in taxable value shown inthe following schedule:

(3) Each calendar year, the taxcommissioner shall adjustthe foregoing scheduleby completing thefollowingcalculationsin September of each year:

(a) Determine the percentage increase in the grossdomesticproduct deflator determined by the bureau of economicanalysis ofthe UnitedStates department of commercefrom the first day ofJanuary ofthe preceding calendar year to the last day ofDecember of thepreceding calendaryear;

(b) Multiply that percentage increase by each ofthe totalincome amounts, and by each dollar amount by which taxable valueisreduced, for the current tax year;

(c) Add the resulting product to each of the totalincomeamounts, and to each of the dollar amounts by which taxable valueisreduced, for the current tax year;

(d)(i) Except as provided in division (A)(3)(d)(ii) of this section, round the resulting sum to the nearestmultiple of onehundred dollars;

(ii) If rounding the resulting sum to the nearest multiple of one hundred dollars under division (A)(3)(d)(i) of this section does not increase the dollar amounts by which taxable value is reduced, the resulting sum instead shall be rounded to the nearest multiple of ten dollars.

The commissioner shall certify the amounts resulting fromtheadjustment to each county auditor not later than the firstday ofDecember each year. Thecertified amounts apply to the followingtax year. Thecommissioner shall not make the adjustment in anycalendar yearin which the amounts resulting from the adjustmentwould be lessthan the total income amounts, or less than thedollar amounts by whichtaxable value is reduced, for the currenttax year.

(B) ~~Real~~ To provide a partial exemption, real property taxes on any homestead, and manufacturedhometaxes on any manufactured or mobile home on which amanufactured home tax isassessed pursuant to division (D)(2) ofsection 4503.06 of theRevised Code, shall be reduced for eachyear forwhich the owner obtains a certificate ofreduction fromthe county auditor under section 323.154 of theRevised Code. Theamount of the reduction shall equal ~~one-fourth~~ two and one-half per centof the amount ~~bywhich the~~ of taxes ~~charged and payable~~ to be levied on thehomestead or themanufactured or mobile home ~~are reduced for such yearunder~~ after applyingsection ~~319.302~~ 319.301 of theRevised Code.

(C) The reductions granted by this section do not apply tospecial assessments or respread of assessments levied against thehomestead, and if there is a transfer of ownership subsequent tothe filing of an application for a reduction in taxes, suchreductions are not forfeited for such year by virtue of suchtransfer.

(D) The reductions in taxable value referred to in thissectionshall be applied solely as a factor for the purpose ofcomputingthe reduction of taxes under this section and shall notaffectthe total value of property in any subdivision or taxingdistrictas listed and assessed for taxation on the tax lists andduplicates, or any direct or indirect limitations on indebtednessof a subdivision or taxing district. If after application ofsections 5705.31 and 5705.32 of the Revised Code, including theallocation of all levies within the ten-mill limitation to debtcharges to the extent therein provided, there would beinsufficient funds for payment of debt charges not provided forbylevies in excess of the ten-mill limitation, the reduction oftaxes provided for in sections 323.151 to 323.159 ofthe RevisedCode shall be proportionately adjusted to the extent necessarytoprovide such funds from levies within the ten-mill limitation.

(E) No reduction shall be made on the taxes due on thehomestead of any person convicted of violating division (C) or(D)of section 323.153 of the Revised Code for a period of threeyearsfollowing the conviction.

Sec. 325.31. (A) On the first business day of each month,and at the end of the officer's term of office, each officernamed in section 325.27 of the Revised Code shall pay into the countytreasury, to the credit of the general county fund, on thewarrant of the county auditor, all fees, costs, penalties,percentages, allowances, and perquisites collected by theofficer's office during the preceding month or part thereof for officialservices, except the fees allowed the county auditor by division (B) ofsection 319.54 of the Revised Code, which shall be paid into thecounty treasury to the credit of the real estate assessment fundhereby created.

(B) Moneys to the credit of the real estate assessmentfund may be expended, upon appropriation by the board of countycommissioners, for the purpose of defraying one or more of the following:

(1) The costincurred by the county auditor in assessing real estate pursuantto Chapter 5713. of the Revised Code and manufactured and mobile homespursuant to Chapter 4503. of the Revised Code;

(2) At the countyauditor'sdiscretion, costs and expenses incurred by the county auditor in preparing the list of real and public utility property, in administering laws related to the taxation of real property and the levying of special assessments on real property, including administering reductions under Chapters 319. and 323. and section 4503.065 of the Revised Code, and to support assessments of real property in any administrative or judicial proceeding;

(3) At the county auditor's discretion, the expenses incurred by the county board of revision underChapter 5715. of the Revised Code;

(4) At the county auditor's discretion, the expenses incurred by the county auditor for geographic information systems, mapping programs, and technological advances in those or similar systems or programs;

(5) At the county auditor's discretion, expenses incurred by the county auditor in compiling the general tax list of tangible personal property and administering tangible personal property taxes under Chapters 5711. and 5719. of the Revised Code;

(6) At the county auditor's discretion, costs, expenses, and fees incurred by the county auditor in the administration of estate taxes under Chapter 5731. of the Revised Code and the amounts incurred under section 5731.41 of the Revised Code.

Any expenditures made fromthe real estate assessment fund shall comply with rules that thetax commissioner adopts under division (O) of section 5703.05 ofthe Revised Code. Those rules shall include a requirement that acopy of any appraisal plans, progress of work reports, contracts,or other documents required to be filed with the tax commissionershall be filed also with the board of county commissioners.

The board of county commissioners shall not transfer moneysrequired to be deposited in the real estate assessment fund toany other fund. Following an assessment of real propertypursuant to Chapter 5713. of the Revised Code, or an assessment of amanufactured or mobile home pursuant to Chapter 4503.of the Revised Code, any moneys notexpended for the purpose of defraying the cost incurred inassessing real estate or manufactured or mobile homes or for thepurpose of defraying the expenses described in divisions (B)(2), (3), (4), (5), and (6) of this section, and thereby remaining to the credit of thereal estate assessment fund, shall be apportioned ratably anddistributed to those taxing authorities that contributedto the fund. However, no such distribution shall be made if the amountof such unexpended moneys remaining to the credit of the realestate assessment fund does not exceed five thousand dollars.

(C) None of the officers named in section 325.27 of theRevised Code shall collect any fees from the county. Each ofsuch officers shall, at the end of each calendar year, make andfile a sworn statement with the board of county commissioners ofall such fees, costs, penalties, percentages, allowances, andperquisites which have been due in the officer's office andunpaid for more than one year prior to the date such statement is required tobe made.

Sec. 329.04. (A) The county department of job and familyservices shallhave, exercise, and perform the following powersand duties:

(1) Perform any duties assigned bythe state department ofjob and family servicesregarding the provision of public familyservices, including the provision of the following servicestoprevent or reduce economic orpersonal dependency and tostrengthen family life:

(a) Services authorized bya Title IV-Aprogram, asdefined in section 5101.80 of the Revised Code;

(b) Social services authorized by Title XX of the"SocialSecurity Act" and provided for by section 5101.46 or 5101.461 of the RevisedCode;

(c) If the county department is designated as the childsupportenforcement agency, services authorized by Title IV-D ofthe "SocialSecurityAct" and provided for by Chapter 3125. ofthe Revised Code. The countydepartmentmay perform the servicesitself or contract with othergovernment entities, and, pursuantto division(C) of section 2301.35 and section 2301.42 of theRevised Code, privateentities, to perform the Title IV-Dservices.

(2) Administer disability financial assistance, as required by the state department of job andfamily services under section 5115.03 of the Revised Code;

(3) ~~Administer disability medical assistance, as required by the state department of job and family services under section 5115.13 of the Revised Code;~~

~~(4)~~ Administer burials insofar as the administration ofburials was,prior to September 12, 1947, imposed upon the boardof county commissionersand if otherwise required by state law;

~~(5)~~(4) Cooperate with state and federal authorities in anymatterrelating to family services and to act as the agent ofsuchauthorities;

~~(6)~~(5) Submit an annual account of itswork and expenses to theboard of county commissioners and to thestate department of joband family services at theclose of each fiscal year;

~~(7)~~(6) Exercise any powers and dutiesrelating to familyservices duties or workforce developmentactivities imposed upon thecounty department of job andfamilyservices by law, by resolutionof the board of county commissioners, or byorder of the governor,when authorized by law, to meetemergencies during war or peace;

~~(8)~~(7) Determine the eligibility for medical assistance ofrecipients of aid under Title XVI of the "Social Security Act";

~~(9)~~(8) If assigned by the state director of job andfamilyservices under section 5101.515of the Revised Code,determineapplicants' eligibility for health assistance under thechildren'shealth insurance program part II;

~~(10)~~(9) Enter into a plan of cooperation with the board ofcountycommissioners under section 307.983, consult withthe boardin the development of the transportation work plan developed undersection 307.985, establish with the board proceduresunder section307.986 forproviding services to children whose families relocatefrequently, and complywith thecontracts the board enters intounder sections 307.981 and 307.982 of theRevised Code that affectthe county department;

~~(11)~~(10) For the purpose of complying with a fiscal agreement the boardof county commissioners enters into undersection 307.98 of the Revised Code, exercise thepowers andperform the duties the fiscal agreement assigns to the countydepartment;

~~(12)~~(11) If the county department is designated as the workforcedevelopmentagency, provide the workforce development activitiesspecified in the contractrequired by section 330.05 of theRevised Code.

(B) The powers and duties of a county department of job andfamily services are, andshall be exercised and performed, underthe control and direction of the boardof county commissioners.The board may assign to the county department anypower or duty ofthe board regarding family services duties and workforce developmentactivities. If the new power or dutynecessitates the statedepartment of job and familyservices changing its federal costallocation plan, the county department may not implement the poweror dutyunless the United States department of health and humanservices approves thechanges.

Sec. 329.051. The county department of job and familyservicesshall make voter registration applications as prescribed by the secretaryof state under section 3503.10 of the Revised Code available to persons whoare applying for, receiving assistance from, orparticipating in any of the following:

(A) The disability financialassistance program established under Chapter 5115. of the Revised Code;

(B) ~~The disability medical assistance program established under Chapter 5115. of the Revised Code;~~

~~(C)~~ The medical assistance program established underChapter 5111. of the Revised Code;

~~(D)~~(C) The Ohio works first program established under Chapter 5107.of the Revised Code;

~~(E)~~(D) The prevention, retention, and contingency programestablished under Chapter 5108. of the Revised Code.

Sec. 339.72. (A) Each board of county commissioners shallprovide for the county to be served by a tuberculosis controlunit by designating a county tuberculosis control unit or byentering into an agreement with one or more boards of countycommissioners of other counties under which the boards jointlydesignate a district tuberculosis control unit. The entitydesignated as the county or district tuberculosis control unit may be any ofthe following:

(1) A communicable disease control program operatedby a board of health of a city or general health districtpursuant to section 3709.22 of the Revised Code;

(2) ~~A tuberculosis program operated by a county that receivesfunds pursuant to section 339.77 of theRevised Code;~~

~~(3)~~ A tuberculosis clinic established by a board ofcounty commissioners pursuant to section 339.76 of theRevised Code;

~~(4)~~(3) A hospital that provides tuberculosis clinicservices under a contract with a board of county commissionerspursuant to section 339.75 of the Revised Code.

(B) The entity designated under division (A) of thissection as the tuberculosis control unit shall accept that designation andfulfill its duties as the tuberculosis control unit specified under sections339.71 to 339.89 of the Revised Code.

Sec. 339.88. The expenses incurred for detention under section 339.86 or339.87 of the Revised Code shall be paid by the individualdetained or if the individual is indigent, by the board of countycommissioners of the county from which the individual was removed. ~~The boardof county commissioners may apply to the director of health for reimbursementunder section 339.77 of the Revised Code for expenses of detaining indigent individuals withtuberculosis.~~

Sec. 340.03. (A) Subject to rules issued by the directorofmental health after consultation with relevant constituenciesasrequired by division (A)(11) of section 5119.06 of the RevisedCode, with regard to mental health services, the board ofalcohol,drug addiction, and mental health services shall:

(1) Serve as the community mental health planning agencyforthe county or counties under its jurisdiction, and in sodoing itshall:

(b)In cooperation with other local and regionalplanningand funding bodies and with relevant ethnicorganizations,assessthe community mental health needs, setpriorities, anddevelopplans for the operation offacilities andcommunitymental healthservices;

(c) In accordance with guidelines issued by the directorofmental health after consultation with board representatives,develop and submit to the department of mental health, no laterthan six months prior to the conclusion of the fiscal year inwhich the board's current plan is scheduled to expire, acommunitymental health plan listing community mental healthneeds,including the needs of all residents of the district nowresidingin state mental institutions and severely mentallydisabledadults, children, and adolescents; all childrensubject to adetermination made pursuant to section 121.38 of the RevisedCode;and allthe facilities and community mental healthservices thatare or will bein operationor providedduringtheperiod forwhich the plan will be in operation in theservicedistrict tomeet such needs.

The plan shall include, but not be limited to, a statementofwhich of the services listed in section 340.09 of the RevisedCodethe board intends to provide or purchase, an explanation ofhowthe board intends to make any payments that it may berequired topay under section 5119.62 of the Revised Code, astatement of theinpatient and community-based services the boardproposes that thedepartment operate, an assessment of the numberand types ofresidential facilities needed, and such otherinformation as thedepartment requests, and a budget for moneysthe board expects toreceive. The board shall also submit anallocation request forstate and federal funds. Within sixtydays after the department'sdetermination that the plan andallocation request are complete,the department shall approve ordisapprove the plan and request,in whole or in part, accordingto the criteria developed pursuantto section 5119.61 of theRevised Code. The department'sstatement of approval ordisapproval shall specify the inpatientand the community-basedservices that the department will operatefor the board.Eligibility for financial support shall becontingent upon anapproved plan or relevant part of a plan.

If the director disapproves all or part of any plan, thedirector shall inform the board of the reasons for the disapprovaland ofthe criteria that must be met before the plan may beapproved. The director shall provide the board an opportunity topresentits case on behalf of the plan. The director shall givetheboard a reasonable time in which to meet the criteria, andshalloffer the board technical assistance to help it meet thecriteria.

If the approval of a plan remains in dispute thirty daysprior to the conclusion of the fiscal year in which the board'scurrent plan is scheduled to expire, the board or the directormayrequest that the dispute be submitted to a mutually agreeduponthird-party mediator with the cost to be shared by the boardandthe department. The mediator shall issue to the board andthedepartment recommendations for resolution of the dispute.Prior tothe conclusion of the fiscal year in which the currentplan isscheduled to expire, the director, taking intoconsideration therecommendations of the mediator, shall make afinal determinationand approve or disapprove the plan, in wholeor in part.

If a board determines that it is necessary to amend a planoran allocation request that has been approved under division(A)(1)(c) of this section, the board shall submit a proposedamendment to the director. The director may approve ordisapproveall or part of the amendment. If the director doesnot approveall or part of the amendment within thirty days afterit issubmitted, the amendment or part of it shall be consideredto havebeen approved. The director shall inform the board of thereasonsfordisapproval of all or part of an amendment and of the criteriathatmust be met before theamendment may be approved. Thedirector shall provide the boardan opportunity to present itscase on behalf of the amendment. The directorshall give theboard a reasonable time in which tomeet the criteria, and shalloffer the board technical assistanceto help it meet the criteria.

(d) Receive, compile, and transmit to the department ofmental health applications for state reimbursement;

(e) Promote, arrange, and implement working agreementswithsocial agencies, both public and private, and with judicialagencies.

(2) Investigate, or request another agency to investigate,any complaint alleging abuse or neglect of any person receivingservices from a community mental health agency as defined insection 5122.01 of the Revised Code, or from a residentialfacility licensed under section 5119.22 of the Revised Code. Ifthe investigation substantiates the charge of abuse or neglect,the board shall take whatever action it determines is necessarytocorrect the situation, including notification of theappropriateauthorities. Upon request, the board shall provideinformationabout such investigations to the department.

(3)For the purpose of section 5119.611 of theRevised Code,cooperate with the director of mental health invisiting andevaluating whether the services of a community mentalhealthagency satisfy the certification standardsestablished byrulesadopted under that section;

(4) In accordance with criteria established under division(G) of section 5119.61 of the Revised Code, review and evaluatethe quality, effectiveness, andefficiency of services providedthrough itscommunity mentalhealthplanand submit its findingsand recommendations to the department ofmental health;

(5) In accordance with section 5119.22 of the RevisedCode,review applications for residential facility licenses andrecommend to the department of mental health approval ordisapproval of applications;

(6) Audit, in accordance with rules adopted by the auditorof state pursuant to section 117.20 of the Revised Code, at leastannually all programs and services provided under contract withthe board. In so doing, the board may contract for or employ theservices of private auditors. A copy of the fiscal audit reportshall be provided to the director of mental health, the auditorofstate, and the county auditor of each county in the board'sdistrict.

(7) Recruit and promote local financial support formentalhealth programs from private and public sources;

(8)(a)Enterinto contracts with public and privatefacilities for the operation of facility services included in theboard's community mental health plan and enter into contracts withpublic and privatecommunitymental healthagencies for theprovision ofcommunity mentalhealth serviceslisted in section340.09 of theRevised Code and included in theboard's communitymental healthplan.Contracts with communitymental healthagencies are subject to section 5119.611 of theRevised Code.Section 307.86 of the Revised Code does not applytocontractsentered into under this division. In contractingwithacommunity mental health agency, a boardshallconsider the costeffectiveness of services provided by thatagency and the qualityand continuity of care, and may review costelements, includingsalary costs, of the services to be provided.A utilizationreviewprocess shall be established as part of thecontract forservicesentered into between a board and acommunity mental healthagency. The board may establishthis process in a waythat ismost effective and efficientin meeting local needs. In the caseof acontract with acommunity mental health facility, as defined insection ~~5111.022~~ 5111.023 of the Revised Code, to provideservices listed indivision (B) of that section, the contractshallprovide for thefacility to be paid in accordance with thecontract entered into between thedepartments ofjob andfamilyservices and mental health under section 5111.91 of the Revised Code andany rules adopted under division (A) of section5119.61 of theRevised Code.

If either the board or afacility or community mental healthagencywithwhichthe board contractsunder division (A)(8)(a)of thissection proposes not to renew the contract or proposessubstantialchanges in contract terms, the other party shall begiven writtennotice at least one hundred twenty days before theexpiration dateof the contract. During the first sixty days ofthis one hundredtwenty-day period, both parties shall attempt toresolve anydispute through good faith collaboration andnegotiation in orderto continue to provide services to personsinneed. If thedispute has not been resolved sixty days beforetheexpirationdate of the contract, either party may notify thedepartment ofmental health of the unresolved dispute. Thedirector may requireboth parties to submit the dispute to athirdparty with the costto be shared by the board and thefacility orcommunitymentalhealthagency. The third party shall issue tothe board,thefacility or agency,and the departmentrecommendations on how thedisputemay beresolved twenty daysprior to the expiration dateof thecontract, unless both partiesagree to a time extension.Thedirector shall adopt rulesestablishing the procedures of thisdispute resolution process.

(b) With the prior approval of the director of mentalhealth, a board may operate afacility or provide a communitymental health service as follows, if thereis no other qualifiedprivate orpublicfacility or communitymental health agency thatisimmediately available and willing tooperate sucha facility orprovide the service:

(i) In an emergency situation, any board may operate afacility or provide a communitymental health service in order toprovideessential services for the durationof the emergency;

(ii) In a service district with a population of at leastonehundred thousand but less than five hundred thousand, a boardmayoperate afacility or provide a community mental health servicefor nolonger than one year;

(iii) In a service district with a population of less thanone hundred thousand, a board may operate afacility or provide acommunity mentalhealthservice for nolonger than one year,exceptthat such a board may operate afacility or provide acommunity mental healthservice for more than one year with theprior approval of thedirector and the prior approval of the boardof countycommissioners, or of a majority of the boards of countycommissioners if the district is a joint-county district.

The director shall not give a board approval to operateafacility or provide a community mental health service underdivision(A)(8)(b)(ii) or (iii) of this sectionunless thedirectordetermines thatit is not feasible to have thedepartmentoperate thefacility or provide the service.

The director shall not give a board approval to operateafacility or provide a community mental health service underdivision(A)(8)(b)(iii) of this section unlessthe directordeterminesthat theboard willprovide greateradministrativeefficiency andmore or betterservices than wouldbe available ifthe boardcontracted with aprivate or publicfacility orcommunity mentalhealthagency.

The director shall not give a board approval to operateafacility previouslyoperatedbyaperson or other governmententityunless the board hasestablished to the director'ssatisfactionthat theperson or other government entity cannoteffectivelyoperate the facility orthattheperson or othergovernment entity has requestedthe board to take over operationof thefacility.The director shall not give a board approval toprovidea community mental health service previously provided by acommunity mental health agency unless the board has established tothe director's satisfaction that the agency cannot effectivelyprovide the service or that the agency has requested the boardtake over providing the service.

The director shall review and evaluatea board'soperationofa facility and provision of community mentalhealth serviceunderdivision (A)(8)(b) of this section.

Nothing in division (A)(8)(b) of this section authorizes aboard to administer or direct the daily operation of anyfacilityor communitymental health agency, buta facility or agency maycontract with aboard toreceive administrative services or staffdirection fromthe boardunder the direction of the governing bodyof thefacility or agency.

(9) Approve fee schedules and related charges or adopt aunit cost schedule or other methods of payment for contractservices provided by community mental health agencies inaccordance with guidelines issued by the department as necessaryto comply with state and federal laws pertaining to financialassistance;

(10) Submit to the director and the county commissionersofthe county or counties served by the board, and make availabletothe public, an annual report of the programs under thejurisdiction of the board, including a fiscal accounting;

(11) Establish, to the extent resources are available, acommunity support system, which provides for treatment, support,and rehabilitation services and opportunities. The essentialelements of the system include, but are not limited to, thefollowing components in accordance with section 5119.06 of theRevised Code:

(a) To locate persons in need of mental health services toinform them of available services and benefits mechanisms;

(b) Assistance for clients to obtain services necessary tomeet basic human needs for food, clothing, shelter, medical care,personal safety, and income;

(c) Mental health care, including, but not limited to,outpatient, partial hospitalization, and, whereappropriate,inpatient care;

(e) Assistance for clients to obtain vocational servicesandopportunities for jobs;

(f) The provision of services designed to develop social,community, and personal living skills;

(g) Access to a wide range of housing and the provision ofresidential treatment and support;

(h) Support, assistance, consultation, and education forfamilies, friends, consumers of mental health services, andothers;

(i) Recognition and encouragement of families, friends,neighborhood networks, especially networks that include racialandethnic minorities, churches, community organizations, andmeaningful employment as natural supports for consumers of mentalhealth services;

(j) Grievance procedures and protection of the rights ofconsumers of mental health services;

(k) Case management, which includes continualindividualizedassistance and advocacy to ensure that neededservices are offeredand procured.

(12) Designate the treatment program, agency,orfacilityfor each person involuntarily committed to the boardpursuant toChapter 5122. of the Revised Code and authorizepayment for suchtreatment. The board shall provide the leastrestrictive and mostappropriate alternative that is availableforany personinvoluntarily committed to it and shall assurethat theserviceslisted in section 340.09 of the Revised Codeareavailable toseverely mentally disabled persons residingwithinits servicedistrict. The board shall establish theprocedure forauthorizingpayment for services, which may includepriorauthorization inappropriate circumstances. The board mayprovidefor servicesdirectly to a severely mentally disabledperson whenlife orsafety is endangered and when no communitymental healthagency isavailable to provide the service.

(13) Establish a method for evaluatingreferrals forinvoluntary commitment and affidavits filed pursuantto section5122.11 of the Revised Code in order to assist theprobatedivision of the court of common pleas in determiningwhether thereis probable cause that a respondent is subject toinvoluntaryhospitalization and what alternative treatment isavailable andappropriate, if any;

(14) Ensure that apartments or rooms built,subsidized,renovated, rented, owned, or leased by the board or acommunitymental health agency have been approved as meetingminimum firesafety standards and that persons residing in therooms orapartments are receiving appropriate and necessaryservices,including culturally relevant services, from acommunity mentalhealth agency. This division does not apply toresidentialfacilities licensed pursuant to section 5119.22 ofthe RevisedCode.

(15) Establish a mechanism for involvementof consumerrecommendation and advice on matters pertainingto mental healthservices in the alcohol, drug addiction, andmental health servicedistrict;

(16) Perform the duties under section 3722.18 of theRevisedCode required by rulesadopted under section 5119.61 oftheRevised Coderegarding referrals by the board or mental healthagencies under contractwith the board of individuals with mentalillnessor severe mental disability to adult care facilities andeffectivearrangements for ongoing mental health services for theindividuals. Theboard is accountable in the manner specified inthe rules for ensuring thatthe ongoing mental health services areeffectively arranged for theindividuals.

(B) The board shall establish such rules, operatingprocedures, standards, and bylaws, and perform such other dutiesas may be necessary or proper to carry out the purposes of thischapter.

(C) A board of alcohol, drug addiction, andmental healthservices may receive by gift, grant, devise, orbequest anymoneys, lands, or property for the benefit of thepurposes forwhich the board is established, and may hold andapply itaccording to the terms of the gift, grant, or bequest. All moneyreceived, including accrued interest, by gift, grant,or bequestshall be deposited in the treasury of the county, thetreasurer ofwhich is custodian of the alcohol, drug addiction,and mentalhealth services funds to the credit of the board andshall beavailable for use by the board for purposes stated bythe donor orgrantor.

(D) No board member or employee of a board of alcohol,drugaddiction, and mental health services shall be liable forinjuryor damages caused by any action or inaction taken withinthe scopeof the board member's official duties or theemployee'semployment, whether or not such action or inaction is expresslyauthorized by this section, section 340.033, or any other sectionof theRevised Code, unless such action or inaction constituteswillful or wantonmisconduct. Chapter 2744. of the Revised Codeapplies to any action orinaction by a board member or employee ofa board taken within the scope ofthe board member's officialduties or employee's employment. For the purposesof thisdivision, the conduct of a board member or employee shallnot beconsidered willful or wanton misconduct if the boardmember oremployee acted in good faith and in a manner that theboard memberor employeereasonably believed was in or was not opposed to thebestinterests of the board and, with respect to any criminalactionor proceeding, had no reasonable cause to believe theconduct was unlawful.

(E) The meetings held by any committee established by aboard of alcohol, drug addiction, and mental health servicesshallbe considered to be meetings of a public body subject tosection121.22 of the Revised Code.

Sec. 340.16. Not later than ninety days after~~the effectivedate of this section~~September 5, 2001, the department of mental health and thedepartment of job and family services shall adopt rules thatestablish requirements and procedures for prior notification andservice coordination between public children services agencies andboards of alcohol, drug addiction, and mental health services whena public children services agency refers a child in its custody toa board for services funded by the board. The rules shall beadopted in accordance with Chapter 119. of the Revised Code.

The department of mental health and department of job andfamily services shall collaborate in formulating a plan thatdelineates the funding responsibilities of public childrenservices agencies and boards of alcohol, drug addiction, andmental health services for services provided under section~~5111.022~~ 5111.023 of the Revised Code to children in the custody of publicchildren services agencies. The departments shall complete theplan not later than ninety days after~~the effective date of thissection~~September 5, 2001.

(1) "Medical assistance program" has the same meaning as in section 2913.40 of the Revised Code.

(2) "Medical provider" means a physician, hospital, laboratory, pharmacy, or other health care provider that is not employed by or under contract to a county or the department of rehabilitation and correction to provide medical services to persons confined in the county jail or a state correctional institution.

(3) "Necessary care" means medical care of a nonelective nature that cannot be postponed until after the period of confinement of a person who is confined in a county jail or a state correctional institution or is in the custody of a law enforcement officer without endangering the life or health of the person.

(B) If a physician employed by or under contract to a county or the department of rehabilitation and correction to provide medical services to persons confined in the county jail or state correctional institution determines that a person who is confined in the county jail or a state correctional institution or who is in the custody of a law enforcement officer prior to the person's confinement in the county jail or a state correctional institution requires necessary care that the physician cannot provide, the necessary care shall be provided by a medical provider. The county or the department of rehabilitation and correction shall pay a medical provider for necessary care an amount not exceeding the authorized reimbursement rate for the same service established by the department of job and family services under the medical assistance program.

(A) "Convention facilities authority" means a bodycorporateand politic created pursuant to section 351.02 of theRevisedCode.

(B) "Governmental agency" means a department, division, orother unit of the state government or of a municipal corporation,county, township, or other political subdivision of the state;anystate university or college, as defined in section 3345.12 oftheRevised Code, community college, state community college,university branch, or technical college; any other publiccorporation or agency having the power to acquire, construct, oroperate facilities; the United States or any agency thereof; andany agency, commission, or authority established pursuant to aninterstate compact or agreement.

(D) "Facility" or "facilities" means any convention,entertainment, or sports facility, or combination of them,locatedwithin the territory of the convention facilitiesauthority,together with all parking facilities, walkways, andotherauxiliary facilities, real and personal property, propertyrights,easements and interests that may be appropriate for, orused inconnection with, the operation of the facility.

(E) "Cost" means the cost of acquisition of all land,rights-of-way, property rights, easements, franchise rights, andinterests required for such acquisition; the cost of demolishingor removing any buildings or structures on land so acquired,including the cost of acquiring any lands to which such buildingsor structures may be moved; the cost of acquiring or constructingand equipping a principal office of the convention facilitiesauthority; the cost of diverting highways, interchange ofhighways, access roads to private property, including the cost ofland or easements for such access roads; the cost of publicutility and common carrier relocation or duplication; the cost ofall machinery, furnishings, and equipment; financing charges;interest prior to and during construction and for no more thaneighteen months after completion of construction; expenses ofresearch and development with respect to facilities; legalexpenses; expenses of obtaining plans, specifications,engineeringsurveys, studies, and estimates of cost and revenues;workingcapital; expenses necessary or incident to determiningthefeasibility or practicability of acquiring or constructingsuchfacility; administrative expense; and such other expenses asmaybe necessary or incident to the acquisition or constructionof thefacility, the financing of such acquisition orconstruction,including the amount authorized in the resolutionof theconvention facilities authority providing for the issuanceofconvention facilities authority revenue bonds to be paid intoanyspecial funds from the proceeds of such bonds, the cost ofissuingthe bonds, and the financing of the placing of suchfacility inoperation. Any obligation, cost, or expense incurredby anygovernmental agency or person for surveys, borings,preparation ofplans and specifications, and other engineeringservices, or anyother cost described above, in connection withthe acquisition orconstruction of a facility may be regarded aspart of the cost ofsuch facility and may be reimbursed out ofthe proceeds ofconvention facilities authority revenue bonds asauthorized bythis chapter.

(F) "Owner" includes a person having any title or interestin any property, rights, easements, or interests authorized to beacquired by Chapter 351. of the Revised Code.

(G) "Revenues" means all rentals and other chargesreceivedby the convention facilities authority for the use orservices ofany facility, the sale of any merchandise, or theoperation of anyconcessions; any gift or grant received withrespect to anyfacility, any moneys received with respect to thelease, sublease,sale, including installment sale or conditionalsale, or otherdisposition of a facility or part thereof; moneysreceived inrepayment of and for interest on any loans made bythe authorityto a person or governmental agency, whether fromthe United Statesor any department, administration, or agencythereof, orotherwise; proceeds of convention facilitiesauthority revenuebonds to the extent the use thereof for paymentof principal or ofpremium, if any, or interest on the bonds isauthorized by theauthority; proceeds from any insurance,appropriation, or guarantypertaining to a facility or propertymortgaged to secure bonds orpertaining to the financing of thefacility; income and profitfrom the investment of the proceedsof convention facilitiesauthority revenue bonds or of anyrevenues; contributions of theproceeds of a tax levied pursuant todivision (A)(3) of section5739.09 of the RevisedCode; and moneys transmitted totheauthority pursuant todivision (B) of section 5739.211 anddivision (B) of section5741.031 of the Revised Code.

(H) "Public roads" includes all public highways, roads,andstreets in the state, whether maintained by the state,county,city, township, or other political subdivision.

(I) "Construction," unless the context indicates adifferentmeaning or intent, includes, but is not limited to,reconstruction, enlargement, improvement, or providing fixtures,furnishings, and equipment.

(J) "Convention facilities authority revenue bonds" or"revenue bonds," unless the context indicates a different meaningor intent, includes convention facilities authority revenuenotes,convention facilities authority revenue renewal notes, andconvention facilities authority revenue refunding bonds.

(K) "Convention facilities authority tax anticipationbonds"or "tax anticipation bonds," unless the context indicatesadifferent meaning, includes convention facilities authority taxanticipation bonds, tax anticipation notes, tax anticipationrenewal notes, and tax anticipation refunding bonds.

(L) "Bonds and notes" means convention facilitiesauthorityrevenue bonds and convention facilities authority taxanticipationbonds.

(M) "Territory of the authority" means all of the area ofthe county creating the convention facilities authority.

(N) "Excise taxes" means ~~either or both~~ any of the taxesleviedpursuant to division (B) or (C) of section 351.021 of the RevisedCode."Excise taxes" does not include taxes levied pursuant tosection4301.424, 5743.026, or 5743.324 of the Revised Code.

(O) "Transaction" means the charge by a hotel for eachoccupancy by transient guests of a room or suite of rooms used ina hotel as a single unit for any period of twenty-four hours orless.

(P) "Hotel" and "transient guests" have the samemeaningsasin section 5739.01 of the Revised Code.

(Q) "Sports facility" means afacility intended to housemajor league professionalathletic teams.

(R) "Constructing" or "construction" includes providingfixtures,furnishings, andequipment.

Sec. 351.021. (A) The resolution of the countycommissioners creating a convention facilities authority, or anyamendment or supplement to that resolution, may authorize theauthority to levy one or both of the excise taxes authorized bydivision (B) of this section to pay the cost of one or morefacilities; to pay principal, interest, and premium on conventionfacilities authority tax anticipation bonds issued to pay thosecosts; to pay the operating costs of the authority; to payoperating and maintenance costs of those facilities; and to paythe costs of administering the excise tax.

(B) The board of directors of a convention facilitiesauthority that has been authorized pursuant to resolutionadopted,amended, or supplemented by the board of countycommissionerspursuant to division (A) of this section may levy,by resolutionadopted on or before December 31, 1988, either orboth of thefollowing:

(1) Within the territory of the authority, an additionalexcise tax not to exceed four per cent on each transaction. Theexcise tax authorized by division (B)(1) of this section shall bein addition to any excise tax levied pursuant tosection5739.08or 5739.09 of theRevised Code, ordivision (B)(2) of thissection.

(2) Within that portion of any municipal corporation thatislocated within the territory of the authority or within theboundaries of any township that is located within the territoryofthe authority, which municipal corporation or township islevyingany portion of the excise tax authorized by division(A) ofsection5739.08 of the Revised Code, and with theapproval, byordinance or resolution, of the legislativeauthorityof thatmunicipal corporation or township, anadditional excisetax not toexceed nine-tenths of one per centon each transaction.The excisetax authorized by division(B)(2) of this section maybe leviedonly if, on the effectivedate of the levy specified intheresolution making the levy, theamount being levied pursuanttodivision(A) of section5739.08 of the RevisedCode by eachmunicipal corporation ortownship in which the taxauthorized bydivision (B)(2) of thissection will be levied, whenadded to theamount levied underdivision (B)(2) of this section,does notexceed three per centon each transaction. The excisetaxauthorized by division(B)(2) of this section shall be inadditionto any excise taxthat is levied pursuant to section5739.08or5739.09 of the Revised Code, or division(B)(1) of thissection.

(C)(1) The board of directors of a convention facilities authority that is located in an eligible Appalachian county; that has been authorized pursuant to resolution adopted, amended, or supplemented by the board of county commissioners pursuant to division (A) of this section; and that is not levying a tax under division (B)(1) or (2) of this section may levy within the territory of the authority, by resolution adopted on or before December 31, 2005, an additional excise tax not to exceed three per cent on each transaction. The excise tax authorized under division (C) of this section shall be in addition to any excise tax levied pursuant to section 5739.08 or 5739.09 of the Revised Code.

(2) As used in division (C)(1) of this section, "eligible Appalachian county" means a county in this state designated as being in the "Appalachian region" under the "Appalachian Regional Development Act of 1965," 79 Stat. 4, 40 U.S.C. App. 403, and having a population less than eighty thousand according to the most recent federal decennial census.

(D) The authority shall provide for the administration andallocation of ~~the~~ an excise ~~taxes~~ tax levied pursuant to division (B) or (C) ofthis section. All receipts arising from those excise taxes shallbe expended for the purposes provided in, and in accordance withthis section and section 351.141 of the Revised Code. An excisetax levied under division (B) or (C) of this section shall remain ineffect at the rate at which it is levied for at least thedurationof the period for which the receipts from the tax havebeenanticipated and pledged pursuant to section 351.141 of theRevisedCode.

~~(D)~~(E) Except as provided in division (B)(2) of this section,the levy of an excise tax on each transaction pursuant tosections 5739.08 and 5739.09 of the Revised Code does not preventa conventionfacilities authority from levying ~~the~~ an excise ~~taxes~~tax pursuant todivision (B) or (C) of this section.

Sec. 351.06. A facility to be constructed pursuant to thischapter is a public improvement and a convention facilitiesauthority is a public authority for purposes of section 4115.03of the Revised Code. All contractors and subcontractors workingon such facilities are subject to and shall comply with sections4115.03 to 4115.16 of the Revised Code. A convention facilitiesauthority is a contracting authority for purposes of sections307.86 to 307.91 of the Revised Code.

No convention facilities authority shall construct afacility under this chapter unless the plans for the facilityprovide for parking and transportation determined by the board ofcounty commissioners as adequate to serve that facility.

(A) Adopt bylaws for the regulation of its affairs and theconduct of its business;

(D) Acquire, purchase, construct, reconstruct, enlarge,furnish, equip, maintain, repair, sell, exchange, lease or rentto, lease or rent from, operate, or contract for the operation byothers of, facilities within its territory, and make charges forthe use of the facilities;

(E) Make available the use or services of any facility topersons or governmental agencies on such terms and conditions asthe authority shall determine;

(F) By resolution of its board of directors, issueconvention facilities authority revenue bonds beyond the limit ofbonded indebtedness provided by law, payable solely from revenuesas provided in section 351.14 of the Revised Code, unless thebonds are refunded by refunding bonds, for the purpose ofproviding funds to pay the costs of any facility or facilities orparts of any facility or facilities, and, if moneys raised bytaxation are not obligated or pledged for the payment of thoserevenue bonds, to pay the costs of any facility or facilities orparts of any facility or facilities pursuant to Section 13 ofArticle VIII, Ohio Constitution, and in order to create orpreserve jobs and employment opportunities and improve theeconomic welfare of the people of the state;

(H) Direct its agents or employees, when properlyidentified in writing and after at least five days' writtennotice, to enter upon lands within its territory in order to makesurveys and examinations preliminary to location and constructionof facilities, or other work for the purposes of the conventionfacilities authority, without liability of the authority or itsagents or employees except for actual damage done;

(J)(1) Adopt rules, not in conflict with general law,governing the use of its property, grounds, buildings, equipment,and facilities, and the conduct of its employees and the public,in order to promote the public safety and convenience in andabout its facilities and grounds, and to maintain order. Anysuch rule shall be posted at a prominent place in each of thebuildings or facilities to which it applies.

(2) No person shall violate any lawful rule adopted andposted as provided in this division.

(K) Acquire by gift or purchase, hold, lease, and disposeof real and personal property and interests in the property inthe exercise of its powers and the performance of its dutiesunder this chapter;

(L) Acquire, in the name of the authority, by purchase orotherwise, on such terms and in such manner as the authorityfinds proper, or by the exercise of the right of appropriation inthe manner provided by section 351.22 of the Revised Code, suchpublic or private lands, including public parks, playgrounds, orreservations, or parts thereof or rights therein, rights-of-way,rights, franchises, easements, and interests as it findsnecessary or proper for carrying out this chapter, andcompensation shall be paid for public or private lands so taken;

(M) Make and enter into all contracts and agreements andexecute all instruments necessary or incidental to theperformance of its duties and the execution of its powers underthis chapter provided that no construction contract or contractfor the purchase of goods or services shall be approved orentered into by the authority prior to the adoption andimplementation of a policy on the set aside of contracts forbidding by or award to minority business enterprises, as definedin division (E)(1) of section 122.71 of the Revised Code;

(N) Employ managers, superintendents, and other employeesand retain or contract with consulting engineers, financialconsultants, accounting experts, architects, attorneys, and suchother consultants and independent contractors as are necessary inits judgment to carry out this chapter, and fix theircompensation. All expenses of doing so shall be payable solelyfrom the proceeds of convention facilities authority bonds andnotes issued under this chapter, or from excise taxes andrevenues.

(O) Receive and accept from any governmental agency grantsfor or in aid of the purposes of the authority, and receive andaccept aid or contributions from any source of money, property,labor, or other things of value, to be held, used, and appliedonly for the purposes for which such grants and contributions aremade;

(Q) Purchase fire and extended coverage and liabilityinsurance for any facility and for the offices of the authority,insurance protecting the authority and its officers and employeesagainst liability for damage to property or injury to or death ofpersons arising from its operations, and any other insurance theauthority may agree to provide under any resolution authorizingits convention facilities authority revenue bonds or in any trustagreement securing the same;

(R) Charge, alter, and collect rentals and other chargesfor the use or services of any facility as provided in section351.09 of the Revised Code;

(S) If a tax proposed under section 5739.026 of theRevised Code is disapproved by the electors, request the board ofcounty commissioners to dissolve the authority pursuant tosection 351.03 of the Revised Code;

(T) By resolution of its board of directors, levy ~~one orboth~~ any of the excise taxes authorized by division (B) or (C) of section351.021 of the Revised Code if authorized by the countycommissioners, and issue convention facilities authority taxanticipation bonds beyond any limit of bonded indebtednessprovided by law, payable solely from excise taxes levied pursuantto division (B) or (C) of section 351.021 of the Revised Code andrevenues as provided in section 351.141 of the Revised Code.

(U) Do all acts necessary or proper to carry out thepowers expressly granted in this chapter.

Sec. 351.141. A convention facilities authority thatlevies~~one or both~~ any of the excise taxes authorized by division (B)or (C) ofsection 351.021 of the Revised Code or that receives contributionspursuant to division (A)(3) of section5739.09 of theRevisedCode, by resolution mayanticipate the proceeds of thelevy andissue conventionfacilities authority tax anticipationbonds, andnotesanticipating the proceeds or the bonds, in theprincipalamountthat, in the opinion of the authority, arenecessary forthepurpose of paying the cost of one or morefacilities or partsofone or more facilities, and as able, withthe interest on them,be paid over the term of the issue, or inthe case of notesanticipating bonds over the term of the bonds,by the estimatedamount of the excise taxes or contributionsanticipated thereby.Theexcise taxesor contributions aredetermined by the generalassembly to satisfy anyapplicablerequirement of Section 11 ofArticle XII, Ohio Constitution. Anauthority, at any time, mayissue renewal tax anticipation notes,issue tax anticipation bondsto pay such notes, and, whenever itconsiders refunding expedient,refund any tax anticipation bondsby the issuance of taxanticipation refunding bonds whether thebonds to be refunded haveor have not matured, and issue taxanticipation bonds partly torefund bonds then outstanding andpartly for any other authorizedpurpose. The refunding bondsshall be sold and the proceedsneeded for such purpose applied inthe manner provided in the bondproceedings to the purchase,redemption, or payment of the bondsto be refunded.

Every issue of outstanding tax anticipation bonds shall bepayable out of the proceeds of the excise taxes or contributionsanticipated andother revenues of the authority that are pledgedfor suchpayment. The pledge shall be valid and binding from thetime thepledge is made, and the anticipated excise taxes,contributions, and revenues sopledged and thereafter received bythe authority immediatelyshall be subject to the lien of thatpledge without any physicaldelivery of those excise taxes,contributions, andrevenues or further act. Thelien of anypledge is valid and binding as against all partieshaving claimsof any kind in tort, contract, or otherwise againstthe authority,whether or not such parties have notice of thelien. Neither theresolution nor any trust agreement by which apledge is createdneed be filed or recorded except in theauthority's records.

Whether or not the bonds or notes are of such form andcharacter as to be negotiable instruments under Title XIII of theRevised Code, the bonds or notes shall have all the qualities andincidents of negotiable instruments, subject only to theirprovisions for registration, if any.

The tax anticipation bonds shall bear such date or dates,andshall mature at such time or times, in the case of any suchnotesor any renewals of such notes not exceeding twenty yearsfrom thedate of issue of such original notes and in the case ofany suchbonds or any refunding bonds not exceeding forty yearsfrom thedate of the original issue of notes or bonds for thepurpose, andshall be executed in the manner that the resolutionauthorizingthe bonds may provide. The tax anticipation bondsshall bearinterest at such rates, or at variable rate or rateschanging fromtime to time, in accordance with provisionsprovided in theauthorizing resolution, be in such denominationsand form, eithercoupon or registered, carry such registrationprivileges, bepayable in such medium of payment and at suchplace or places, andbe subject to such terms of redemption, asthe authority mayauthorize or provide. The tax anticipationbonds may be sold atpublic or private sale, and at, or at notless than the price orprices as the authority determines. Ifany officer whosesignature or a facsimile of whose signatureappears on any bondsor coupons ceases to be such officer beforedelivery of the bonds,the signature or facsimile shallnevertheless be sufficient forall purposes as if the officerhad remainedin office untildelivery of the bonds, and in case the seal ofthe authority hasbeen changed after a facsimile has beenimprinted on the bonds,the facsimile seal will continue to besufficient for allpurposes.

Any resolution or resolutions authorizing any taxanticipation bonds or any issue of tax anticipation bonds maycontain provisions, subject to any agreements with bondholders asmay then exist, which provisions shall be a part of the contractwith the holders of the bonds, as to the pledging of any or allofthe authority's anticipated excise taxes,contributions, andrevenues tosecure the payment of the bonds or of any issue of thebonds; theuse and disposition of revenues of the authority; thecreditingof the proceeds of the sale of bonds to and among thefundsreferred to or provided for in the resolution; limitationson thepurpose to which the proceeds of sale of the bonds may beappliedand the pledging of portions of such proceeds to securethepayment of the bonds or of any issue of the bonds; as to notesissued in anticipation of the issuance of bonds, the agreement ofthe authority to do all things necessary for the authorization,issuance, and sale of such bonds in such amounts as may benecessary for the timely retirement of such notes; limitations onthe issuance of additional bonds; the terms upon which additionalbonds may be issued and secured; the refunding of outstandingbonds; the procedure, if any, by which the terms of any contractwith bondholders may be amended, the amount of bonds the holdersof which must consent thereto, and the manner in which suchconsent may be given; securing any bonds by a trust agreement inaccordance with section 351.16 of the Revised Code; any othermatters, of like or different character, that in any way affectthe security or protection of the bonds. The excise taxesanticipated by the bonds, including bonds anticipated by notes,shall not be subject to diminution by initiative or referendum orby law while the bonds or notes remain outstanding in accordancewith their terms, unless provision is made by law or by theauthority for an adequate substitute therefor reasonablysatisfactory to the trustee, if a trust agreement secures thebonds.

Neither the members of the board of directors of theauthority nor any person executing the bonds shall be liablepersonally on the bonds or be subject to any personal liabilityoraccountability by reason of the issuance thereof.

Sec. 351.16. In the discretion of the conventionfacilities authority, any convention facilities authority bondsand notes issued under this chapter may be secured by a trustagreement between the authority and a corporate trustee, whichtrustee may be any trust company or bank having the powers of atrust company within or without the state.

Any such trust agreement for convention facility authorityrevenue bonds may pledge or assign revenues of the conventionfacilities authority to be received and may convey or mortgageany facility or any part of any facility. Any such trustagreement for convention facility authority tax anticipationbonds may pledge or assign ~~one or both~~ any of the excise taxesauthorized by division (B) or (C) of section 351.021 of the Revised Codeand revenues of the convention facilities authority to bereceived and may convey or mortgage any facility or any part ofany facility. Any such trust agreement or any resolutionproviding for the issuance of such bonds or notes may containsuch provisions for protecting and enforcing the rights andremedies of the bondholders or noteholders as are reasonable andproper and not in violation of law, including covenants settingforth the duties of the authority in relation to the acquisitionof property, the construction, improvement, maintenance, repair,operation, and insurance of the facility in connection with whichsuch bonds or notes are authorized, the rentals or other chargesto be imposed for the use or services of any facility, thecustody, safeguarding, and application of all moneys, andprovisions for the employment of consulting engineers inconnection with the construction or operation of such facility.Any bank or trust company incorporated under the laws of thisstate that may act as depository of the proceeds of bonds ornotes or of revenues may furnish such indemnifying bonds or maypledge such securities as are required by the authority. Anysuch trust agreement may set forth the rights and remedies of thebondholders and noteholders and of the trustee, and may restrictthe individual right of action by bondholders and noteholders asis customary in trust agreements or trust indentures securingsimilar bonds. Such trust agreement may contain such otherprovisions as the authority determines reasonable and proper forthe security of the bondholders or noteholders. All expensesincurred in carrying out the provisions of any such trustagreement may be treated as a part of the cost of the operationof the facility. Any such trust agreement or resolutionauthorizing the issuance of convention facilities authority bondsor notes may provide the method whereby the generaladministrative expenses of the authority shall be allocated amongfacilities acquired or constructed by it as a factor of theoperation expenses of such facility.

(1) A municipal corporation that shares the same territoryas a city, local,or exempted village school district, to theextent that not morethan five per cent of the territory of themunicipalcorporation is located outside the school district andnot more thanfive per cent of the territory of the schooldistrict islocated outside the municipal corporation;

(2) A municipal corporation that shares the same territoryas a city, local,or exempted villageschool district, to theextent that not more than five per centof the territory of themunicipal corporation is located outsidethe school district, morethan five per cent but not more than ten per cent ofthe territoryof the school district is located outside the municipalcorporation, and that portion of the territory of the schooldistrict that is located outside the municipal corporation islocated entirely within another municipal corporation having apopulation of four hundred thousand or more according to thefederal decennial census most recently completed before theagreement is entered into under division(B) of this section.

(B) ~~Before January 1, 2001, the~~ The legislativeauthority of amunicipal corporationto which this section applies may propose tothe electors anincome tax, one of the purposes of which shall beto providefinancial assistance to the school district throughpayment tothe district of not less than twenty-five per cent ofthe revenuegenerated by the tax, except that the legislative authority may not propose to levy the income tax on the incomes of nonresident individuals. Prior to proposing the tax, thelegislative authority shall negotiate and enter into a writtenagreement with the board of education of the school districtspecifying the tax rate, the percentage of tax revenue to be paidto the school district, the purpose for which the school districtwill use the money, the first year the tax will be levied, thedate of the special election on the question of the tax, and themethod and schedule by which the municipal corporation will makepayments to the school district. The special election shall beheld ~~before January 1, 2001,~~ on a day specified indivision (D) ofsection 3501.01 of theRevised Code, except that the specialelection may not be held onthe day for holding a primary electionas authorized by themunicipal corporation's charter unless themunicipal corporationis to have a primary election on that day.

After the legislative authority and board of education haveentered into the agreement, the legislative authority shallprovide for levying the tax by ordinance. The ordinance shallstate the tax rate, the percentage of tax revenue to be paid tothe school district, the purpose for which the municipalcorporation will use its share of the tax revenue, the first yearthe tax will be levied, and that the question of the income taxwill be submitted to the electors of the municipal corporation.The legislative authority also shall adopt a resolutionspecifyingthe regular or special election date the election willbe held anddirecting the board of elections to conduct theelection. Atleast seventy-five days before the date of theelection, thelegislative authority shall file certified copiesof the ordinanceand resolution with the board of elections.

(C) The board of elections shall make the necessaryarrangements for the submission of the question to the electorsofthe municipal corporation, and shall conduct the election inthesame manner as any other municipal income tax election.Notice ofthe election shall be published in a newspaper ofgeneralcirculation in the municipal corporation once a week forfourconsecutive weeks prior to the election, and shall includestatements of the rate and municipal corporation and schooldistrict purposes of the income tax, the percentage of taxrevenuethat will be paid to the school district, and the firstyear thetax will be levied. The ballot shall be in thefollowing form:

"Shall the ordinance providing for a ..... per cent levy onincome for (brief description of the municipal corporation andschool district purposes of the levy, including a statement ofthepercentage of tax revenue that will be paid to the schooldistrict) be passed? The income tax, if approved, will not be levied on the incomes of individuals who do not reside in (the name of the municipal corporation).

(D) If the question is approved by a majority of theelectors, the municipal corporation shall impose the income taxbeginning in the year specified in the ordinance. The proceedsofthe levy may be used only for the specified purposes,includingpayment of the specified percentage to the schooldistrict.

Sec. 718.10. (A) This section applies to a group of twoormore municipal corporations that, taken together, share thesameterritory as a single city, local, or exempted villageschooldistrict, to the extent that not more than five per centof theterritory of the municipal corporations as a group islocatedoutside the school district and not more than five percent of theterritory of the school district is located outsidethe municipalcorporations as a group.

(B) ~~Before January 1, 2001, the~~ The legislativeauthorities ofthe municipalcorporations in a group of municipal corporations towhich thissection applies each may propose to the electors anincome tax,to be levied in concert with income taxes in the othermunicipalcorporations of the group, except that a legislative authority may not propose to levy the income tax on the incomes of individuals who do not reside in the municipal corporation. One of the purposes of sucha taxshall be to provide financial assistance to the schooldistrictthrough payment to the district of not less thantwenty-five percent of the revenue generated by the tax. Priorto proposing thetaxes, the legislative authorities shallnegotiate and enter intoa written agreement with each other andwith the board ofeducation of the school district specifying thetax rate, thepercentage of the tax revenue to be paid to theschool district,the first year the tax will be levied, and thedate of theelection on the question of the tax, all of whichshall be thesame for each municipal corporation. The agreementalso shallstate the purpose for which the school district willuse themoney, and specify the method and schedule by which eachmunicipal corporation will make payments to the school district.The special election shall be held ~~before January 1,2001,~~ on aday specified in division(D) of section 3501.01 of the RevisedCode, including a day onwhich all of the municipal corporationsare to have a primaryelection.

After the legislative authorities and board of educationhaveentered into the agreement, each legislative authority shallprovide for levying its tax by ordinance. Each ordinance shallstate the rate of the tax, the percentage of tax revenue to bepaid to the school district, the purpose for which the municipalcorporation will use its share of the tax revenue, and the firstyear the tax will be levied. Each ordinance also shall statethatthe question of the income tax will be submitted to theelectorsof the municipal corporation on the same date as thesubmission ofquestions of an identical tax to the electors ofeach of the othermunicipal corporations in the group, and thatunless the electorsof all of the municipal corporations in thegroup approve the taxin their respective municipal corporations,none of the municipalcorporations in the group shall levy thetax. Each legislativeauthority also shall adopt a resolutionspecifying the regular orspecial election date the election willbe held and directing theboard of elections to conduct theelection. At least seventy-fivedays before the date of theelection, each legislative authorityshall file certified copiesof the ordinance and resolution withthe board of elections.

(C) For each of the municipal corporations, the board ofelections shall make the necessary arrangements for thesubmissionof the question to the electors, and shall conduct theelection inthe same manner as any other municipal income taxelection. Foreach of the municipal corporations, notice of theelection shallbe published in a newspaper of general circulationin themunicipal corporation once a week for four consecutiveweeks priorto the election. The notice shall include astatement of the rateand municipal corporation and schooldistrict purposes of theincome tax, the percentage of taxrevenue that will be paid to theschool district, and the firstyear the tax will be levied, and anexplanation that the tax willnot be levied unless an identicaltax is approved by the electorsof each of the other municipalcorporations in the group. Theballot shall be in the followingform:

"Shall the ordinance providing for a ... per cent levy onincome for (brief description of the municipal corporation andschool district purposes of the levy, including a statement ofthepercentage of income tax revenue that will be paid to theschooldistrict) be passed? The income tax, if approved, will not be levied on the incomes of individuals who do not reside in (the name of the municipal corporation). In order for the income tax to belevied,the voters of (the other municipal corporations in thegroup),which are also in the (name of the school district)schooldistrict, must approve an identical income tax and agreeto paythe same percentage of the tax revenue to the schooldistrict.

(D) If the question is approved by a majority of theelectors and identical taxes are approved by a majority of theelectors in each of the other municipal corporations in thegroup,the municipal corporation shall impose the tax beginningin theyear specified in the ordinance. The proceeds of thelevy may beused only for the specified purposes, includingpayment of thespecified percentage to the school district.

Sec. 731.14. All contracts made by the legislativeauthority of a village shall be executed in the name of thevillage and signed on its behalf by the mayor and clerk. Exceptwhere the contract is for equipment, services, materials, orsupplies to be purchased under division (D) of section 713.23 orsection 125.04 or 5513.01 of the Revised Code or, available from aqualified nonprofit agency pursuant to sections 4115.31 to4115.35 of the Revised Code, or required to be purchased from a qualified nonprofit agency under sections 125.60 to 125.6012 of the Revised Code, when any expenditure, other than thecompensation of persons employed in the village, exceeds twenty-fivethousanddollars, such contracts shall be in writing and made with thelowest and best bidder after advertising for not less than twonor more than four consecutive weeks in a newspaper of generalcirculation within the village. The bids shall be opened andshall be publicly read by the clerk of the village or a persondesignated by the clerk at the time, date, and placespecified in theadvertisement to bidders or specifications. The time, date, andplace of bid openings may be extended to a later date by thelegislative authority of the village, provided that written ororal notice of the change shall be given to all persons who havereceived or requested specifications no later than ninety-sixhours prior to the original time and date fixed for the opening. This section does not apply to those villages that have providedfor the appointment of a village administrator under section735.271 of the Revised Code.

Sec. 731.141. In those villages that have established theposition of village administrator, as provided by section 735.271of the Revised Code, the village administrator shall makecontracts, purchase supplies and materials, and provide labor forany work under the administrator's supervision involvingnot more than twenty-five thousand dollars. When anexpenditure, other than thecompensation of persons employed by the village, exceeds twenty-five thousand dollars, the expenditure shall first be authorizedanddirected by ordinance of the legislative authority of thevillage. When so authorized and directed, except where thecontract is for equipment, services, materials, or supplies to bepurchased under division (D) of section 713.23 or section 125.04or 5513.01 of the Revised Code or, available from a qualifiednonprofit agency pursuant to sections 4115.31 to 4115.35 of theRevised Code, or required to be purchased from a qualified nonprofit agency under sections 125.60 to 125.6012 of the Revised Code, the village administrator shall make a writtencontract with the lowest and best bidder after advertisement fornot less than two nor more than four consecutive weeks in anewspaper of general circulation within the village. The bidsshall be opened and shall be publicly read by the villageadministrator or a person designated by the villageadministrator at the time, date, and place as specified in theadvertisement to bidders orspecifications. The time, date, and place of bid openings may beextended to a later date by the village administrator, providedthat written or oral notice of the change shall be given to allpersons who have received or requested specifications no laterthan ninety-six hours prior to the original time and date fixedfor the opening. All contracts shall be executed in the name ofthe village and signed on its behalf by the village administratorand the clerk.

The legislative authority of a village may provide, byordinance, for central purchasing for all offices, departments,divisions, boards, and commissions of the village, under thedirection of the village administrator, who shall make contracts,purchase supplies or materials, and provide labor for any work ofthe village in the manner provided by this section.

Sec. 742.59. The board of trustees of the Ohio police andfire pension fund shallbe the trustee of the funds created as follows:

(A) The "police officers' contribution fund"is the fund inwhich shall be credited the contributions deducted from thesalaries of members of police departments and paid into theOhio police and firepension fund, as provided bysection 742.31 of the Revised Code, and that percentage of theemployers' accrued liability that is attributable to deductionspreviously made from the salaries of members of the policedepartment who are still in the active service at the time thatportion of the employers' accrued liability ispaid. Theaccumulated contributions of a member of a police departmentshall be transferred at the member's retirement from thepolice officers' contribution fund to thepolice officers' pension reserve fund.

(B) The "firefighters' contribution fund" isthe fund in whichshall be credited contributions deducted from the salaries ofmembers of fire departments and paid into the Ohio police andfire pension fund, asprovided by section742.31 of the Revised Code, and that percentage of the employers'accrued liability that is attributable to deductions previouslymade from the salaries of members of the fire department who arestill in the active service at the time that portion of theemployers' accrued liability is paid. The accumulatedcontributions of a member of a fire department shall betransferred at the member's retirement from thefirefighters' contribution fund to thefirefighters' pension reserve fund.

(1) The police officeremployers' contribution, as providedby section 742.33 of the Revised Code~~, and that~~;

(2) The percentage of theemployers' accrued liability that is attributable to theemployers' liability for prior service of members of the policedepartment who are still in the active service at the time thatportion of the employers' accrued liability is paid~~, and thatportion of the state contribution allocated to such fund, asprovided by section 742.36 of the Revised Code, shall becredited, and in which shall be accumulated~~.

In the police officer employers' contribution fund shall accumulate the reserves held intrust for the payment of all pensions or other benefits providedby sections 742.01 to 742.61 of the Revised Code tomembers of a police department retiring in the future or their qualifiedbeneficiaries and from which the reserves for such pensions andother benefits shall be transferred to the policeofficers' pension reserve fund.

(D) The "firefighter employers' contribution fund" isthe fund to which the following shall be credited:

(1) The firefighter employers'contribution, as provided insection 742.34 of the Revised Code~~, and that~~;

(2) The percentage of theemployers' accrued liability that is attributable to theemployers' liability for prior service for members of the firedepartment who are still in the active service at the time thatportion of the employers' accrued liability is paid~~, and thatportion of the state contribution allocated to such fund, asprovided by section 742.36 of the Revised Code, shall becredited, and in which shall be accumulated~~.

In the firefighter employers' contribution fund shall accumulate the reserves held intrust for the payment of all pensions and other benefits providedby sections 742.01 to 742.61 of the Revised Code tomembers of a fire department retiring in the future or their qualifiedbeneficiaries and from which the reserves for such pensions andother benefits shall be transferred to thefirefighters'pension reserve fund.

(E) The "police officers' pension reservefund" is the fundfrom which shall be paid all pensions and other benefits forwhich reserves have been transferred from the policeofficers' contribution fundand the police officer employers' contribution fund,and to which shall be credited that percentage of the employers'accrued liability that is attributable to the total of deductionspreviously made from the salaries of members of the policedepartment who are retired and are receiving pensions or otherbenefits, or whose beneficiaries are receiving benefits, at thetime that portion of the employers' accrued liability is paid,and that percentage of the employers' accrued liability that isattributable to prior service of members of the police departmentwho are retired and are receiving pensions or other benefits, orwhose beneficiaries are receiving benefits, at the time thatportion of the employers' accrued liability is paid.

(F) The "firefighters' pension reserve fund"is the fund from which shall be paid all pensions and other benefits for whichreserves have been transferred from thefirefighters' contributionfund and the firefighter employers' contribution fund,and to whichshall be credited that percentage of the employers' accruedliability that is attributable to the total of deductionspreviously made from the salaries of members of the firedepartment who are retired and are receiving pensions or otherbenefits, or whose beneficiaries are receiving benefits, at thetime that portion of the employers' accrued liability is paid,and that percentage of the employers' accrued liability that isattributable to prior service of members of the fire departmentwho are retired and are receiving pensions or other benefits, orwhose beneficiaries are receiving benefits, at the time thatportion of the employers' accrued liability is paid.

(G) The "guarantee fund" is the fund from which interestis transferred and credited on the amounts in the funds describedin divisions (C), (D), (E), and (F) of this section, and is acontingent fund from which the special requirements of said fundsmay be paid by transfer from this fund. All income derived fromthe investment of funds by the board of trustees of the Ohiopoliceand fire pension fund as trustee undersection 742.11 of the Revised Code, together with all gifts andbequests or the income therefrom, shall be paid into this fund.

Any deficit occurring in any other fund that will not becovered by payments to that fund, as otherwise provided bysections 742.01 to 742.61 of the Revised Code, shall bepaid by transfers of amounts from the guarantee fund to such fund orfunds. Should the amount in the guarantee fund be insufficientat any time to meet the amounts payable therefrom, the amount ofsuch deficiency, with regular interest, shall be paid by anadditional employer rate of current contribution as determined bythe actuary and shall be approved by the board of trustees of theOhiopolice and fire pension fund, and theamountof such additional employer contribution shall be credited to theguarantee fund.

The boardmay accept gifts and bequests. Anyfunds that may come into the possession of the board in thismanner, or any other funds whose disposition is not otherwiseprovided for, shall be credited to the guarantee fund.

(H) The "expense fund" is the fund from which shall bepaid the expenses for the administration and management of theOhio police and firepensionfund, as provided bysections 742.01 to 742.61 of the Revised Code, and towhich shall be credited from the guarantee fund an amount sufficient to paythe expenses of operation.

Sec. 901.43. (A) The director of agriculture may authorizeanydepartment ofagriculture laboratory to perform a laboratoryservice for anyperson, organization, political subdivision, stateagency, federalagency, or other entity, whether public orprivate. The director shall adopt andenforce rules to providefor the rendering of a laboratory service.

(B) The director may charge a reasonable fee for theperformanceof a laboratory service, except when the service isperformed on an officialsample taken by thedirector actingpursuant to Title IX, Chapter 3715., or Chapter3717. of theRevised Code; by a board of health acting as thelicensor ofretail food establishments or food service operationsunderChapter 3717. of the Revised Code; or by the director ofhealthacting as the licensor of food service operations underChapter3717. of the Revised Code. The director ofagriculture shalladopt rules specifying what constitutes an officialsample.

The director shall publish a listof laboratory servicesoffered, together with the fee foreach service.

(C) The director may enter into a contract with any person,organization,political subdivision, state agency, federal agency,or otherentity for the provision of alaboratory service.

(D)(1) The director may adopt rulesestablishing standardsfor accreditation of laboratories andlaboratory services and indoing so may adopt by referenceexisting or recognized standardsor practices.

(2) The director may inspect andaccredit laboratories andlaboratory services, and may charge areasonable fee for theinspections and accreditation.

(E)(1) ~~All~~ There is hereby created in the state treasury the animal health and food safety fund. Moneys from the following sources shall be deposited into the state treasury to the credit of the fund: all moneys collected by the director underthissection that are from fees generated by a laboratoryserviceperformed by the department and related to the diseases ofanimals, ~~and~~ all moneys so collected that are from fees generatedfor the inspection and accreditation of laboratories andlaboratory servicesrelated to the diseases of animals, shall bedepositedin the animal industry laboratory fund, which is herebycreatedin the state treasury. The director shall use the moneysin theanimal industry laboratory fund topay the expensesnecessary to operate the animal industry laboratory, including thepurchaseof supplies andequipment.

~~(2) All~~ all moneys collectedby the director under this sectionthat are from fees generated by alaboratory service performed bythe consumer analytical laboratory, and allmoneys so collectedthat are from fees generated for the inspection andaccreditationof laboratories and laboratory services not related to weightsandmeasures ~~or the diseases of animals, shallbe deposited in thelaboratory services fund, which ishereby created in the statetreasury~~. The director may use the moneysheld in the fund ~~may be used~~ to pay theexpenses necessary to operate the animal industry laboratory and theconsumer analytical laboratory,including the purchase of supplies andequipment.

~~(3)~~(2) All moneys collected by the director under thissectionthat are from fees generated by a laboratory serviceperformed bythe weights and measures laboratory, and all moneys so collectedthat are from fees generated for the inspection and accreditationoflaboratories and laboratory services related to weights andmeasures, shall bedeposited in the state treasury to the credit of the weights and measureslaboratory fund, which is hereby createdin the state treasury.The moneys held in thefund may be used to pay the expensesnecessary to operate thedivision of weights and measures,including the purchase ofsupplies and equipment.

Sec. 901.44. There is hereby created in the state treasury the laboratory and administrative support fund. The department of agriculture shall deposit the following moneys received by the department to the credit of the fund: payment for the rental of the department's auditoriums by outside parties and reimbursement for related utility expenses, laboratory fees that are not designated for deposit into another fund, and other miscellaneous moneys that are not designated for deposit into another fund. The department may use moneys in the fund to pay costs associated with any program of the department as the director of agriculture sees fit.

Sec. 903.05. (A) Each application for a permit to installor permit to operate a concentrated animal feeding facility that is submitted by anapplicant who has notoperated a concentrated animal feeding facility in this state forat leasttwo of the five years immediately preceding thesubmission of the applicationshall be accompanied byall of thefollowing:

(1) A listing of all ~~concentrated~~ animal feeding facilitiesthatthe owner or operator of the proposed new or modifiedconcentrated animalfeeding facilityhas operated or is operatinginthis state;

(2) A listing of the ~~concentrated~~ animal feeding facilitiesthat the owneror operator has operated or is operating elsewherein the UnitedStates and that are regulated under the FederalWater Pollution Control Act together witha listing of the~~concentrated~~ animal feeding facilities that the owner or operatorhas operatedor is operating outsidethe United States;

(3) A listing of all administrative enforcementordersissued to the owner or operator, all civilactions in which theowner or operator was determined by the trier of fact tobe liablein damages or was the subject of injunctive relief or another typeof civil relief, and all criminal actions in which the owner oroperatorpleaded guilty or was convicted, duringthe five yearsimmediately preceding the submission of theapplication,inconnection with any violation ofthe federal Water PollutionControlAct, the "SafeDrinking Water Act," as definedin section6109.01 of the Revised Code, or any otherapplicablestate lawspertaining to environmental protectionthat was alleged tohaveoccurred or to be occurring at any ~~concentrated~~ animalfeedingfacility that the owner or operator has operated or is operatingin the United States or with any violation of theenvironmentallaws of another country that was alleged to have occurred or tobeoccurring at any~~concentrated~~ animal feeding facility that theowner or operator has operatedor is operating outsidethe UnitedStates.

The lists of ~~concentrated~~ animal feeding facilities operatedbythe owner or operator within or outside this state or outsidetheUnited States shall include,respectively, all suchfacilitiesoperated by the owner or operator during the five-year periodimmediately preceding the submission of the application.

(B) If the applicant fora permit to install or permit tooperate has beeninvolved in any prior activity involving theoperation of ~~a concentrated~~ an animal feeding facility, the directorofagriculture maydeny the application if the director finds fromtheapplication, the information submitted under divisions (A)(1)to (3)of this section, pertinent informationsubmitted to thedirector, and other pertinent informationobtained by the directorat the director's discretion that theapplicant and personsassociated with the applicant, in theoperation of ~~concentrated~~animal feeding facilities, havea history of substantialnoncompliance with the FederalWater Pollution Control Act, the"SafeDrinking Water Act," as definedin section 6109.01 of theRevised Code, any otherapplicablestate laws pertaining toenvironmental protection,or the environmental laws of anothercountry that indicates that the applicantlacks sufficientreliability, expertise, and competence to operate theproposed newor modified concentrated animal feeding facility insubstantialcompliance with this chapter and rules adopted under it.

(C) A person who seeks to acquire a concentrated animalfeedingfacility that has been issued an installation permitthathas been transferred from the director of environmentalprotectionto the director of agriculture, a permit to install, ora permitto operateshall submit tothe director the information specifiedin divisions (A)(1) to (3) ofthissection prior to the transferof the permit. The permit shall not betransferred as otherwiseprovided indivision (I) of section 903.09 of the Revised Code ifthedirector finds from the information submitted under divisions(A)(1) to (3) of this section, pertinent information submitted tothe director, and other pertinent information obtained by thedirector at thedirector's discretion that the person, intheoperation of ~~concentrated~~ animal feeding facilities, has ahistoryof substantial noncompliance with theFederal Water PollutionControlAct, the "SafeDrinking Water Act," as definedin section6109.01 of the Revised Code, any otherapplicable state lawspertaining to environmental protection, or theenvironmental lawsof another country that indicates that the person lackssufficientreliability, expertise, andcompetence to operate the concentratedanimalfeeding facility in substantial compliance with thischapter and rulesadopted under it.

Sec. 905.32. (A) No person shall manufacture or distribute in this state anytype of fertilizer until a license tomanufacture or distribute has been obtained by the manufacturer or distributorfrom the department of agriculture upon payment of a five dollarfee:

(1) For each fixed (permanent) location at which fertilizer is manufacturedin this state;

(3) For each location out of the state from which fertilizer is distributedin this state to nonlicensees.

All licenses ~~expire on the thirtieth day of June of each~~ shall be valid for one year beginning on the first day of December of a calendar year through the thirtieth day of November of the following calendar year. A renewal application for a license shall be submitted ~~no earlier than thefirstdayof June each year and~~ no later than the thirtieth day of~~June~~ Novembereach year. A person who submits a renewal application for a license after thethirtieth day of ~~June~~ November shall include with the application a latefilingfee of ten dollars.

(2) The name and address of each bulk distribution point in the state, notlicensed for fertilizer manufacture and distribution.

The name and address shown on the license shall be shown on all labels,pertinent invoices, and bulk storage for fertilizers distributed by thelicensee in this state.

(C) The licensee shall inform the director of agriculture in writing ofadditionaldistribution points established during the period of the license.

Sec. 905.33. (A) Except as provided in division (C) ofthis section, no person shall distribute in this state a specialtyfertilizer until it is registered by the manufacturer or distributor with thedepartment of agriculture. An application, in duplicate, for each brand andproduct name of each grade of specialty fertilizer shall be made on a formfurnished by the director of agriculture and shall beaccompanied with a fee of fifty dollars for each brand and product name ofeach grade. Labels for each brand and product name of each grade shallaccompany the application. Upon the approval of an application by thedirector, a copy of the registration shall be furnished the applicant. Allregistrations ~~expire on the thirtiethday of June of each~~ shall be valid for one year beginning on the first day of December of a calendar year through the thirtieth day of November of the following calendar year.

(5) The package sizes for persons that package fertilizers only in containersof ten pounds or less.

(C)(1) No person who engages in the business of applying custommixed fertilizer to lawns, golf courses, recreation areas, or otherreal property that is not used for agricultural production shall be requiredto register the custom mixed fertilizer as a specialty fertilizer inaccordance with division (A) of this section if thefertilizer ingredients of the custom mixed fertilizer are registered asspecialty fertilizers and the inspection fee described in division(A) of section 905.36 of the Revised Codeis paid.

(2) No person who engages in the business of blending custom mixedfertilizer for use on lawns, golf courses, recreation areas, or other realproperty that is not used foragricultural production shall be required to register the custom mixedfertilizer as a specialty fertilizer in accordance with division (A)of this section if the facility holds a nonagricultural production custommixed fertilizer blender license issued under section 905.331 of theRevised Code.

(D) A person who engages in the business of applying or blendingcustom mixed fertilizer as described in division(C) of this section shall maintain an originalor a copy of an invoice or document of sale for all fertilizer the personapplies or distributes for one year following the date of the application ordistribution, and, upon the director's request, shall furnish the directorwith the invoice or document of sale for the director's review.

Sec. 905.331. No person who engages in the business of blending a custommixed fertilizer for useon lawns, golf courses, recreation areas, or other real property that is notused for agricultural production shall fail to register a specialty fertilizerin accordance with division (A) of section 905.33 of theRevised Codeunless the person has obtained a an annual nonagricultural production custom mixedfertilizer blender license from the director of agriculture.

A license issued under this section shall be valid from the first day of December of a calendar year through the thirtieth day of November of the following calendar year. A renewal application for a nonagricultural production custom mixedfertilizer blender license shall be submitted to the director ~~no earlier thanthe first day of June each year and~~ no later than the thirtieth dayof ~~June~~ November each year and shall include the name and address of theapplicant and of the premises where the blending occurs and aone-hundred-dollar fee. A person who submits a renewal application for alicense after the thirtieth day of~~June~~ November shall include with the application a late filing fee of tendollars. All nonagricultural production custom mixed fertilizer blenderlicenses expire on the thirtieth day of ~~June of~~ November each year.

A person holding a nonagricultural production custom mixed fertilizerblender license shall pay the inspection fees described in division(A) of section 905.36 of the Revised Code for eachproduct being blended.

Sec. 905.36. (A) A licensee or registrant, exceptregistrants who package specialty fertilizers only in containersof ten pounds or less, shall pay the director of agriculture forall fertilizers distributed in this state an inspection fee atthe rate of ~~twelve~~ twenty-five cents per tonor ~~thirteen~~ twenty-eight cents per metric ton. Licensees and registrants shall specifyon an invoicewhether the per ton inspection fee has been paid or whether payment of the feeis the responsibility of the purchaser of the fertilizer. The payment of this inspectionfee by a licensee or registrant shall exempt all other personsfrom the payment of this fee.

(B) Every licensee or registrantshall file ~~a semiannual statement~~ with the director an annual tonnage report that includes the number of nettons or metric tons of fertilizer distributed to nonlicensees ornonregistrantsin this state by grade; packaged; bulk, dry or liquid~~; withinthirty days after the thirtieth day of June, and within thirtydays after the thirty-first day of December, respectively, of~~. The report shall be filed on or before the thirtieth day of November ofeach calendar year and shall include data from the period beginning on the first day of November of the year preceding the year in which the report is due through the thirty-first day of October of the year in which the report is due. The licensee or registrant, except registrants whopackage specialty fertilizers only in containers of ten pounds or less, shallinclude with this statement the inspection fee at the rate stated indivision (A) of this section. Fora tonnage report that is not filed or payment of inspection feesthat is not made ~~within ten days after due date~~ on or before the thirtieth day of November of the applicable calendar year, a penalty offifty dollars or tenper cent of the amount due,whichever is greater, shall be assessed against the licensee orregistrant. The amountof fees due, plus penalty, shall constitute a debt and become thebasis of a judgment against the licensee or registrant. For tonnage reports found to be incorrect, a penalty of fifteen per centof the amount due shall be assessed against the licensee or registrant andshall constitute a debt and become the basis of a judgment against thelicensee or registrant.

(C) No information furnished under this section shall bedisclosed by any employee of the department of agriculture insuch a way as to divulge the operation of any person required tomake such a report. The filing by a licensee or registrant of asales volume tonnage statement required by division (B) of thissection thereby grants permission to the director to verifythe same with the records of the licensee or registrant.

Sec. 905.37. (A) The director of agriculture ~~shall~~ may distributeannual statements of fertilizer sales by grades of materials and mixedfertilizer by counties, in a manner prescribed by the director.

(B) The director ~~shall~~ may publish ~~at least~~ annually a reportof the analysisof fertilizers inspected.

(C) The director may distribute a state fertilizer usage report by grade ofmaterials and mixed fertilizers for each month.

Sec. 905.38. The commercial feed, fertilizer, seed, and lime inspection andlaboratory fund is herebycreated in the state treasury. All moneys collected by thedirector of agriculture under sections 905.31 to 905.50of the Revised Code, shall be depositedinto thefund. Moneys creditedto the fund under this section and sections 905.66, 907.16, and 923.46 of the Revised Code shall be used for administering and enforcing this chapter and~~Chapter~~ Chapters 907. and 923. of the Revised Code and rules adopted under them.

Sec. 905.381. The director of agriculture shall keep accurate accounts ofall receipts and disbursements from the commercial feed, fertilizer, seed, and limeinspection and laboratory fund, and shall prepare, and provide upon request,an annual report classifying the receipts and disbursements as pertaining toeither feed, fertilizer, seed, or lime.

Sec. 905.50. If the director of agriculture has taken anofficial sample of a fertilizer or mixed fertilizer and determined that itconstitutes mislabeled fertilizer pursuant to rules adopted under section905.40 of the Revised Code, the person who labeled the fertilizer ormixed fertilizer shall pay a penalty to the consumer of the mislabeledfertilizer or, if the consumer cannot be determined with reasonable diligenceor is not available, to the director for deposit into the commercial feed,fertilizer, seed, and lime inspection and laboratory fund created under section905.38 of the Revised Code. The amount of the penalty shall be calculated inaccordance witheither division (A) or (B) of this section, whichever methodof calculation yields the largest amount.

(A)(1) A penalty required to be paidunder this section may be calculated as follows:

(a) Five dollars for each percentage point oftotal nitrogen or phosphorus in the fertilizer that is below the percentage ofnitrogen or phosphorus guaranteed on the label, multiplied by the number oftons of mislabeled fertilizer that have been sold to the consumer;

(b) Three dollars for each percentage point ofpotash in the fertilizer that is below the percentage of potash guaranteed onthe label, multiplied by the number of tons of mislabeled fertilizer that havebeen sold to the consumer.

(2) In the case of a fertilizer that contains a quantity of nitrogen,phosphorus, or potash that is more than five percentage points below thepercentages guaranteed on the label, the penalties calculated under division(A)(1) of this section shall be tripled.

(3) No penalty calculated under division (A) of this sectionshall be less than twenty-five dollars.

(B) A penalty required to be paid underthis section may be calculated by multiplying the market value of one unit ofthe mislabeled fertilizer by the number of units of the mislabeled fertilizerthat have been sold to the consumer.

(C) Upon making adetermination under this section that a person has mislabeledfertilizer or mixed fertilizer, the director shall determine theparties to whom the penalty imposed by this section is requiredto be paid and, in accordance with division(A) or(B) of this section, asapplicable, shall calculate the amount of the penalty requiredto be paid to each such party. After completing thosedeterminations and calculations, the director shall issue to theperson who allegedly mislabeled the fertilizer or mixedfertilizer a notice of violation. The notice shall beaccompanied by an order requiring, and specifying the manner of,payment of the penalty imposed by this section to the parties inthe amounts set forth in the determinations and calculationsrequired by this division. The order shall be issued inaccordance with Chapter 119. ofthe RevisedCode.

No person shall violate a term or condition of an orderissued under this division.

(1) "Politicalsubdivision" means a county, township, or municipal corporation and any otherbody corporate and politic that is responsible for government activities in ageographic area smaller than that of the state.

(2) "Local legislation" includes, but is not limited to, an ordinance, resolution, regulation, rule, motion, or amendment that is enacted or adopted by a political subdivision.

(B)(1) No political subdivision shall regulate the registration, packaging, labeling, sale, storage, distribution, use, or application offertilizer, or require a person licensed or registered under sections 905.31to 905.99 of the Revised Code to obtain a license or permitto operate in a manner described in those sections, or to satisfy any othercondition except as provided by a statute or rule of this state or of theUnited States.

(2) No political subdivision shall enact, adopt, or continue in effect local legislation relating to the registration, packaging, labeling, sale, storage, distribution, use, or application of fertilizers.

Sec. 905.66. All moneys collected by the director of agriculture undersections 905.51 to 905.65 of the Revised Code shall be deposited into thecommercial feed,fertilizer, seed, and lime inspection and laboratory fund created undersection 905.38 of the Revised Code.

The director shall prepare and provide a report concerning the fund inaccordance with section 905.381 of the Revised Code.

Sec. 907.111. (A) The department of agriculture has sole and exclusive authority to regulate the registration, labeling, sale, storage, transportation, distribution, notification of use, use, and planting of seed within the state. The regulation of seed is a matter of general statewide interest that requires uniform statewide regulation, and this chapter and rules adopted under it constitute a comprehensive plan with respect to all aspects of the regulation of seed within this state.

(1) Regulate the registration, labeling, sale, storage, transportation, distribution, notification of use, use, or planting of seed;

(2) Require a person who has been issued a permit or license under this chapter to obtain a permit or license to operate in a manner described in this chapter or to satisfy any other condition except as provided by a statute or rule of this state or of the United States;

(3) Require a person who has registered a legume innoculant under this chapter to register that innoculant in a manner described in this chapter or to satisfy any other condition except as provided by a statute or rule of this state or of the United States.

(C) No political subdivision shall enact, adopt, or continue in effect local legislation relating to the permitting or licensure of any person who is required to obtain a permit or license under this chapter or to the registration, labeling, sale, storage, transportation, distribution, notification of use, use, or planting of seed.

(D) As used in this section, "political subdivision" and "local legislation" have the same meanings as in section 905.501 of the Revised Code.

Sec. 907.16. All money collected by the director of agriculture under sections 907.01 to 907.17 of the Revised Code shall be deposited into the treasury of the state to thecredit of the commercial feed, fertilizer, seed, and lime inspection and laboratory fund~~, which is hereby~~ created in ~~the state treasury. Money credited to the fund shall be used to administer and enforce those sections and rules adopted under them~~ section 905.38 of the Revised Code.

Sec. 913.02. No person, firm, or corporation shall engagein the business of operating a cannery without obtaining alicense for the operation of each cannery from the director ofagriculture.

In order to obtain a license, an application shall be madeon a form prescribed by the director and shall be accompanied bya fee of ~~one~~ two hundred dollars. The director shall thereupon causean investigation to be made. If the applicant is supplied withthe facilities necessary for complying with sections 913.01 to913.05 of the Revised Code and rules adopted under them, alicense shall be issued and shall be effective until thethirtieth day of June, and shall become invalid on that dateunless renewed. The fee for each renewal is ~~one~~ two hundred dollars.License fees and renewal fees shall be deposited to the credit ofthe food safety fund created in section915.24 ofthe Revised Code.

The director may suspend or revoke any license for failureto comply with sections 913.01 to 913.05 of the Revised Code, orany rule or order adopted under those sections. In such event,the cannery immediately shall cease operation.

Sec. 913.23. (A) The director of agriculture may issuelicenses as required by sections 913.22 to 913.28 of the RevisedCode, may make the inspections and registrations required bythosesections, and may prescribe the form of application to be filedunder this section.

(B) No person shall manufacture or bottle for sale withinthis state any soft drink in closed containers unless theperson has alicense issued by the director. Upon receipt of an applicationfor such a license, the director shall examine the products andthe place of manufacture where the business is to be conducted,to determine whether the products and place comply with sections913.22 to 913.28 of the Revised Code. Upon finding there iscompliance, and upon payment of a license fee of ~~one~~ two hundreddollars, the director shall issue a license authorizing theapplicant to manufacture or bottle for sale such soft drinks,subject to sections 913.22 to 913.28 of the Revised Code. Thelicense shall expire on the last day of March of each year unlessrenewed.

(C) No soft drink that is manufactured or bottled out ofthe state shall be sold or offered for sale within this stateunless the soft drink and the plant in which the soft drink is manufactured orbottled are found by the director to comply with sections 913.22to 913.28 of the Revised Code, and is are registered by thedirector, whichshall be upon a like application as provided in division (B) ofthis section.

An annual registration fee of ~~one~~ two hundred dollars shall bepaid to the director by each applicant under this division. Theregistration shall be renewed annually, and the registration feepaid with the application for annual renewal.

Registration of out-of-state soft drink manufacturers or bottlers orsyrup and extract manufacturers is not required if a reciprocalagreement is in effect whereby a soft drink manufacturer or bottler or syrupand extract manufacturer located in this state is not subject toa license or registration fee by another state or a politicalsubdivision thereof.

(D) No person, other than a manufacturer or bottler holding a softdrink plant license under this section, shall sell, offer forsale, use, or have in the person's possession with intent tosell, anysoda water syrup or extract or soft drink syrup, to be used inmaking, drawing, or dispensing soda water or other soft drinks,without first registering the person's name and address, thename andaddress of the manufacturer of the syrup or extract, the numberand variety of such syrups or extracts intended to be sold, andthe trade name or brand of those products, with the director,together with such samples of the syrups or extracts as thedirector requestsfor analysis. The person also shall pay to the departmentofagriculture at the time of making registration a license fee of~~fifty~~ one hundred dollars. No license shall be granted by the directorunless the director determines that the syrup or extract isfree from allharmful drugs and other ingredients that, as used, may beinjurious to health. The registration shall be renewedannuallyupon like terms. If any manufacturer, bottler, agent, or seller islicensed or has registered the manufacturer's, bottler's, agent's, orseller's name and product as requiredby this section and has paid the manufacturer's, bottler's, agent's, orseller's fee, the manufacturer's, bottler's, agent's, or seller'sdistributor, retailagent, or retail seller using the products shall not berequiredto pay that fee. This section does not apply to local sellers ofsoft drinks as to syrups and extracts made by themselves fortheir own use exclusively.

(E) All moneys received under sections 913.22 to 913.28 ofthe Revised Code shall be deposited with the treasurer of stateto the credit of the food safety fundcreated insection 915.24 of the Revised Code.

(F) The director may revoke any license or registrationissued under sections 913.22 to 913.28 of the Revised Code,whenever the director determines thatthose sections have been violated. When a license has been revoked, thelicensee shall discontinuethe manufacture and sale of soft drinks or other products forwhich the license was issued. When a registration has beenrevoked, the registrant shall discontinue the sale within thisstate of the registrant's products until those sections havebeen compliedwith and a new license or registration has been issued. Thedirector may suspend any such license or registrationtemporarily, pending compliance with such conditions required bythose sections as the director prescribes.

Sec. 915.02. No person, firm, or corporation shall operate a cold-storagewarehouse, for hire, without a license issued by the director of agriculture. ~~Such~~ A license shall be issued only on written application stating the locationof ~~such~~ the warehouse. Upon receipt of the application the director shall causean examination to be made into the sanitary conditions of ~~such~~ the warehouse. Ifit is found to be in a sanitary condition and properly equipped for thepurpose of cold storage, the director shall cause a license to be issuedauthorizing the applicant to operate a warehouse. No license shall be issueduntil the applicant has paid to the director the sum of ~~one~~ two hundred dollars. ~~Such~~ A license shall be valid until the last day of March of each year andbecomes invalid on that date unless renewed. A license shall be required foreach separate warehouse building.

Sec. 915.16. The license fee for an establishment is~~twenty-five~~ fifty dollars. Any operator operating in connection with acold-storage warehouse holding a license under section 915.02 ofthe Revised Code is not required to secure an additional licenseunder section 915.15 of the Revised Code so long as he theoperator continues to be licensed as a cold-storage warehouse; buthe the operator shall comply with sections 915.14 to 915.24~~,inclusive,~~ of the Revised Code, and all rules and regulations promulgatedthereunder. Thelicense issued shall be in such form as the department ofagriculture prescribes. Licenses shall be valid until the lastday of November following initial issuance or renewal and shallbecome invalid on that date unless renewed. The original licenseor a certified copy thereof shall be conspicuously displayed bythe operator in the establishment.

Sec. 915.24. (A) There is hereby created in the statetreasury the food safety fund. All of the followingmoneys shall be credited to the fund:

(1) Bakery registration fees and fines received undersections 911.02 to 911.20 of the Revised Code;

(2) Cannery license fees and renewal fees received undersections 913.01 to 913.05 of the Revised Code;

(4) License fees, fines, and penalties recovered for theviolation of sections 915.01 to 915.12 of the Revised Code;

(6) License fees, other fees, and fines collected by or for the directorof agriculture underChapter 3717. of the Revised Code;

(7) Fees collected under section 3715.04 of the Revised Code for the issuance of certificates of health and freesale.

(B) The director of agriculture shall use the moneysdeposited into the food safety fund toadministerand enforce the laws pursuant to which the moneys were collected.

Sec. 921.02. (A)No person shall distribute a pesticidewithinthis stateunless thepesticide is registered with thedirector ofagricultureunder thischapter.Registrations shallbe issued for a period oftimeestablished byrule and shall berenewed in accordance withdeadlinesestablishedby rule.Registration is not required if apesticide isshippedfrom oneplant or warehouse to another plantor warehouse operatedby thesame person and used solely at thatplant or warehouse as aconstituent part to make a pesticide thatis registeredunderthis chapter, or if the pesticideisdistributed under theprovisions of an experimental use permitissued under section921.03 of the Revised Code or an experimentaluse permit issuedbythe United States environmental protectionagency.

(B) The applicant for registration of a pesticide shallfilea statement with the director on a form provided by thedirector,which shall include all of the following:

(1) The name and address of the applicant and the name andaddress of the person whose name will appear on the label, ifother than the applicant's name;

(3) Any necessary information required for completion ofthedepartment of agriculture's application for registration,including theagency registration number;

(4) A complete copy of the labeling accompanying thepesticide and a statement of all claims to be made for it,including the directions for use and the use classification asprovided for in the federal act.

(C) The director, when the director considers it necessaryin theadministration ofthis chapter, may requirethe submissionof thecompleteformula of anypesticide including the active andinertingredients.

(D) The director may require a full description of thetestsmade and the results thereof upon which the claims arebased forany pesticide. The director shall not consider any data submittedin support of anapplication, without permission of the applicant,in support of any other applicationfor registration unless theother applicant first hasoffered to pay reasonable compensationfor producing the testdata to be relied upon and the data are notprotected fromdisclosure by section 921.04 of the Revised Code.In the case ofa renewal of registration, a statement shall berequired onlywith respect to information that is different fromthatfurnished when the pesticide was registered or lastregistered.

(E) The director may require any other information to besubmitted with an application.

Any applicant may designate any portion of the requiredregistration information as a trade secret or confidentialbusiness information. Upon receipt of any required registrationinformation designated as a trade secret or confidential businessinformation, the director shall consider the designatedinformation as confidential and shall not reveal or cause to berevealed any such designated information without the consent ofthe applicants, except to persons directly involved in theregistration process described in this section or as required bylaw.

(F) ~~Each~~ Beginning January 1, 2007, each applicant shall pay a registration andinspectionfee~~established by rule~~ of one hundred fifty dollars for each productname andbrandregistered for the company whose name appears onthe label. Ifanapplicant files for a renewal ofregistrationafter the deadlineestablished by rule, theapplicant shall pay apenalty fee~~established by rule~~ of seventy-five dollars for eachproduct name andbrandregistered forthe applicant. The penaltyfee shall beadded tothe original feeand paid before the renewalregistration isissued. In additionto any other remedyavailableunderthis chapter,if a pesticidethat is notregistered pursuantto this section isdistributedwithin thisstate, the personrequired to register thepesticideshall do soand shall pay apenalty fee~~established by rule~~ of seventy-five dollars foreachproduct name and brandregistered for the applicant. Thepenaltyfee shall be added tothe original fee of one hundred fifty dollars and paid before theregistration is issued.

(G) Provided that the state isauthorized by theadministratorof the United States environmental protection agencyto registerpesticides to meet special local needs, the directorshallrequire the information set forth under divisions (B), (C),(D),and (E) of this section and shall register any such pesticideafter determining that all of the following conditionsare met:

(2) Its labeling and other material required to besubmittedcomply with the requirements of the federal act and ofthischapter, and rulesadoptedthereunder.

(3) It will perform its intended function withoutunreasonable adverse effects on the environment.

(4) When used in accordance with widespread and commonlyrecognized practice, it will not generally cause unreasonableadverse effects on the environment.

(5) The classification for general or restricted use is inconformity with the federal act.

The director shall not make any lack of essentiality acriterion for denying the registration of any pesticide. When twopesticides meet the requirements of division(G) of thissection,thedirectorshall notregister one in preference to theother.

(H)(1) The director may refuse to register a pesticide ifthe application for registration fails to comply with thissection.

(2) The director may suspend or revoke a pesticideregistration after a hearing in accordance with Chapter 119. ofthe Revised Code for a pesticide that fails to meet the claimsmade for it on its label.

(3) The director may immediately suspend a pesticideregistration, prior to a hearing, when the director believes thatthe pesticide poses an immediate hazard to human or animal healthor a hazard to the environment. Not later than fifteen days aftersuspending the registration, the director shall determine whetherthe pesticide poses such a hazard. If the director determinesthat no hazard exists, the director shall lift the suspension ofthe registration. If the director determines that a hazardexists, the director shall revoke the registration in accordancewith Chapter 119. of the Revised Code.

Sec. 921.16. (A) The director of agriculture shall adoptrules the director determines necessary for the effectiveenforcement andadministration ofthis chapter.The rules mayrelate to, but are notlimited to, thetime, place, manner, andmethodsof application,materials, andamounts and concentrationsofapplication ofpesticides, mayrestrict or prohibit the use ofpesticides indesignated areasduring specified periods of time,and shallencompass allreasonable factors that the directordeterminesnecessary tominimize or prevent damage to theenvironment. Inaddition, therules shall establish the~~fees,~~deadlines, and timeperiods forregistration, registrationrenewal, lateregistration renewal, and failure to register undersection921.02of theRevised Code; the fees for registration, registration renewal, late registration renewal, and failure to register under section 921.02 of the Revised Code that shall apply until the fees that are established under that section take effect on January 1, 2007;and thefees, deadlines, andtimeperiods forlicensure andlicense renewal undersections921.06,921.09,921.11, and 921.13 of the RevisedCode. Theaggregate amount of the fees that initiallyare established byrule after the effective date of this amendment shall be designedto cover, but not exceed, the costs incurred bythe department ofagriculture in administering this chapter.Thereafter, the feesshall not be increased without the approvalof the generalassembly.

(B) The director shall adopt rules that establish a scheduleofcivil penalties for violations ofthis chapter, or any rule ororder adopted orissued underit, provided that the civil penaltyfor a firstviolation shall not exceed five thousand dollars andthe civilpenalty for each subsequent violation shall not exceedtenthousand dollars. In determining the amount of a civilpenaltyfor a violation, the director shall consider factorsrelevant tothe severity of the violation, including pastviolations and theamount of actual or potential damage to theenvironment or tohuman beings.

(1) Requires that notice or posting be given of a proposedapplication of a pesticide;

(2)Requires inspection, condemnation, or repair ofequipmentused to apply a pesticide;

(3) Will suspend, revoke, or refuse to issue anypesticideregistration for a violation ofthis chapter;

(4) Requires safe handling, transportation, storage,display, distribution, and disposal of pesticides and theircontainers;

(5) Ensures the protection of the health and safety ofagricultural workersstoring, handling, or applying pesticides,and all residents ofagricultural labor camps, as that term isdefined in section3733.41 of the Revised Code, who are living orworking in thevicinity of pesticide-treated areas;

(6) Requires a record to be kept of all pesticideapplications made by eachcommercial applicatorand by anytrainedserviceperson acting under the commercial applicator'sdirectsupervision and of all restricteduse pesticideapplications madeby each privateapplicatorand by any immediatefamilymember or subordinate employee of that private applicatorwho isacting under the private applicator's direct supervision asrequired under section921.14 of the Revised Code;

(7) Determinesthe pesticide-use categories ofdiagnosticinspections that must beconducted by a commercial applicator;

(8) Requires a record to be kept of all diagnosticinspectionsconducted byeach commercial applicatorand by anytrained serviceperson.

(D)The director shall prescribe standards for thelicensureofapplicators of pesticides consistentwith thoseprescribed bythe federal actand the regulationsadoptedunder it or prescribestandards that are morerestrictive than those prescribed by thefederal act and theregulations adopted under it. The standardsmay relate to the use ofapesticide orto an individual'spesticide-use category.

The director shall take into consideration standards of theUnited Statesenvironmental protection agency.

(E) The director may adopt rules setting forth theconditions underwhich the director will:

(1) Designate, inadditionto thoserestricted uses soclassified by theadministrator of theUnited States environmentalprotectionagency, restricted uses ofpesticidesfor the state orfordesignated areas within the stateand, if the directorconsidersit necessary, to further restrictsuch use;

(2) Define what constitutes "acting under the instructionsand control of a commercial applicator" as used in the definitionof "direct supervision" in division (Q)(1) of section 921.01 ofthe Revised Code. In adopting a rule under division (F)(2) ofthis section, the director shall consider the factors associatedwith the use of pesticide in the various pesticide-use categories.Based on consideration of the factors, the director may define"acting under the instructions and control of a commercialapplicator" to include communications between a commercialapplicator and a trained serviceperson that are conducted vialandline telephone or a means of wireless communication. Anyrules adopted under division (F)(2) of this section shall bedrafted in consultation with representatives of the pesticideindustry.

(G)Except as provided in division (D) of this section,thedirector shall not adopt any rule underthis chapter thatisinconsistent with therequirements of the federal act andregulations adopted thereunder.

(H) The director, after notice and opportunity forhearing,may declare as a pest any form of plant oranimal life,other thanhuman beings and other thanbacteria, viruses, andothermicroorganisms on or in living human beings or otherlivinganimals,that is injurious to health or the environment.

(I) The director may make reports to theUnited Statesenvironmentalprotection agency, in the form and containing theinformation theagency may require.

(J) The director shall adopt rules for theapplication,use, storage, anddisposal of pesticides if, in the director'sjudgment,existing programs of the UnitedStates environmentalprotection agency necessitate such rules or pesticidelabels donot sufficiently address issues or situations identified by thedepartment of agriculture or interested state agencies.

(1) Standards, requirements, and procedures for theexamination and re-examination of commercial applicators andprivate applicators;

(2) With respect to training programs that the director mayrequire commercial applicators and private applicators tocomplete:

(a) Standards and requirements that a training program mustsatisfy in order to be offered by the director or the director'srepresentative or in order to be approved by the director if athird party wishes to offer it;

(b) Eligibility standards and requirements that must besatisfied by third parties who wish to provide the trainingprograms;

(c) Procedures that third parties must follow in order tosubmit a proposed training program to the director for approval;

(d) Criteria that the director must consider whendeterminingwhether to authorize a commercial applicator orprivate applicatorto participate in a training program instead ofbeing required topass a re-examination.

(L) The director shall adopt all rules underthis chapter inaccordancewithChapter 119. ofthe Revised Code.

Sec. 923.44. (A)(1) Except as otherwise provided indivisions (A)(2), (3), and (4) of this section, the firstdistributor of a commercial feed shall pay the director ofagriculture a semiannual inspection fee at the rate of ~~ten~~ twenty-five centsper ton, with a minimum payment of ~~ten~~ twenty-five dollars, on all commercialfeeds distributed by ~~him~~ the first distributor in this state.

(2) The semiannual inspection fee required under division(A)(1) of this section shall not be paid by the first distributorof a commercial feed if the distribution is made to an exemptbuyer who shall be responsible for the fee. The director shallestablish an exempt list consisting of those buyers who areresponsible for the fee.

(3) The semiannual inspection fee shall not be paid on acommercial feed if the fee has been paid by a previousdistributor.

(4) The semiannual inspection fee shall not be paid oncustomer-formula feed if the fee has been paid on the commercialfeeds ~~which~~ that are used as components in that customer-formula feed.

(B) Each distributor or exempt buyer who is required topay a fee under division (A)(1) or (2) of this section shall filea semiannual statement with the director that includes the numberof net tons of commercial feed distributed by ~~him~~ the distributor orexempt buyer in this state, within thirty days after the thirtieth day ofJune and within thirty days after the thirty-first day of December,respectively, of each calendar year.

The inspection fee at the rate stated in division (A)(1) ofthis section shall accompany the statement. For a tonnage reportthat is not filed or payment of inspection fees that is not madewithin fifteen days after the due date, a penalty of ten per centof the amount due, with a minimum penalty of fifty dollars shallbe assessed against the distributor or exempt buyer. The amountof fees due, plus penalty, shall constitute a debt and become thebasis of a judgment against the distributor or exempt buyer.

(C) No information furnished under this section shall bedisclosed by an employee of the department of agriculture in sucha way as to divulge the operation of any person required to makesuch a report.

Sec. 923.45. The director of agriculture ~~shall~~ may publish ~~at least~~ annually insuch form as he the director considers proper:

(A) Information concerning the sale of commercial feed, including anyproduction and use data he the director considers advisable,provided that the data does not disclose the operation of any manufacturer ordistributor;

(B) A comparison of the analyses of official samples of commercial feedsdistributed in this state with the guaranteed analyses on the label.

Sec. 923.46. All moneys collected by the director of agriculture undersections 923.41 to 923.55 of the Revised Code shall be deposited into thestate treasury to the credit of the commercial feed, fertilizer, seed, andlime inspection and laboratory fund created insection 905.38 of the Revised Code. ~~Money credited to the fund shall be usedonly foradministering and enforcing this chapter and Chapter 905. of the Revised Codeand rules adopted under them.~~

The director shall prepare and provide a report concerning the fund inaccordance with section 905.381 of the Revised Code.

(A) "Agricultural commodity" means barley, corn, oats,rye, grain sorghum, soybeans, wheat, sunflower, speltz, oranyother agricultural crop ~~which~~ that the director of agriculture maydesignate by rule. "Agricultural commodity" does not mean anygrain that is purchased for sale as seed.

(1) Engaging in or participating in the business ofpurchasing an from producers agricultural ~~commodity for sale, resale,processing, or~~ commodities for any ~~other~~ use in ~~the following volumes:~~

~~(a) In the case of purchases made from producers, more than~~ excess ofthirty thousand bushels annually;

~~(b) In the case of purchases madefrom agricultural commodity handlers, more than one hundredthousand bushels annually;~~

~~(c) In the case of total purchasesmade from producers combined with total purchases made fromhandlers, more than one hundred thousand bushelsannually.~~

(2) Operating a warehouse as a bailee for the receiving,storing, shipping, or conditioning of an agricultural commodity;

(3) Receiving into a warehouse an agricultural commoditypurchased under a delayed price agreement;

(4) Providing marketing functions, including storage,delayed price marketing, deferred payment, feed agreements, orany other marketing transaction whereby control is exerted overthe monetary proceeds of a producer's agricultural commoditiesby a person other than the producer.

(C) "Agricultural commodity handler" or "handler" meansany person who is engaged in the business of agriculturalcommodity handling. ~~"Agricultural commodity handler" or"handler" does not include a person who does not handle agriculturalcommodities as abailee and who purchases agricultural commodities in thefollowing volumes:~~

~~(2) One hundred thousand or fewer bushels annually from agriculturalcommodity handlers.~~

A person who does not handle agricultural commoditiesas a bailee and who annually purchases thirty thousand or fewerbushels of agricultural commodities from producers and onehundred thousand or fewer bushels of agricultural commoditiesfrom agricultural commodity handlers shall be considered to bean agricultural commodity handler if the combined annual volumeof purchases from the producers and the agricultural commodityhandlers exceeds one hundred thousand bushels.

(1) Any person who delivers an agricultural commodity to alicensed handler for storage, conditioning, shipment, or sale;

(2) Any owner or legal holder of a ticket or receiptissued for an agricultural commodity who is a creditor of thelicensed handler for the value of the agricultural commodity;

(3) Any licensed handler storing an agricultural commoditythat the licensed handler owns solely, jointly, or in commonwith others in awarehouse owned or controlled by the licensed handler or anyother licensedhandler.

(F) "Nonnegotiable receipt" means a receipt on which it isstated that the agricultural commodity received will be deliveredto the depositor or to the order of any other person named in thereceipt.

(G) "Negotiable receipt" means a receipt on which it isstated that the agricultural commodity received will be deliveredto the bearer or to the order of any person named in the receipt.

(H) "Ticket" means a scale weight ticket, a load slip, orany evidence, other than a receipt, given to a depositor by alicensed handler upon delivery of an agricultural commodity tothe handler.

(I) "Warehouse" means any building, bin, protectedenclosure, or similar premises under the control of a licensed orunlicensed handler used for receiving, storing, shipping, orhandling an agricultural commodity.

(J) "Storage" means the deposit of an agriculturalcommodity into a warehouse either for the account of the licensedhandler operating the warehouse or for the account of adepositor.

(K) "Producer" means any person who grows an agriculturalcommodity on land that the person owns or leases.

(L) "Agent" means any person, other than a producer, whodelivers an agricultural commodity to a licensed handler, eitherfor sale or for storage, for the account of the producer.

(M) "Agricultural commodity tester" or "tester" means aperson who operates a moisture meter and other quality testingdevices to determine the quality of an agricultural commodity.

(N) "Federally licensed grain inspector" means a personwho is licensed by the United States department of agricultureunder the "United States Grain Standards Act," 39 Stat. 482(1916), 7 U.S.C. 71, as amended, to test and grade grain, as"grain" is defined in that act.

(O) "Bailee" means a person to whom an agriculturalcommodity is delivered in trust for storage in a warehouse withtitle remaining in the name of the depositor.

(P) "Bailor" means a person who delivers an agriculturalcommodity to a bailee in trust for storage in a warehouse withtitle remaining in the name of the depositor.

(Q) "Bailment agreement" means a bailor-bailee agreementbetween a depositor and a licensed handler as stated in the termsof a receipt that is issued for an agricultural commodity instorage and subject to the requirements of this chapter governingthe use of a receipt.

(R) "Delayed price agreement" means a written executorycontract executed by and between a licensed handler and adepositor that covers the sale and transfer of title of anagricultural commodity and states in its written terms theservice charges and the method for pricing the commodity at alater date.

(S) "Delayed price marketing" means the sale and transferof title of an agricultural commodity with the price to beestablished at a later date according to the terms of a delayedprice agreement.

(T) "Deferred payment"means the deferral of payment to a depositor by a licensedhandler for an agricultural commodity to which the licensedhandler has taken title, for the purpose of deferring income ofthe depositor from one tax year to another.

(U) "Feed agreement"means a written contract executed by and between a licensedhandler and a producer or depositor who delivers an agriculturalcommodity to the licensed handler for storage whereby each of the followingapplies:

(1) The producer or depositor transfers title to theagricultural commodity to the licensed handler in exchange for anominal sum;

(2) The producer, upon delivery of the agriculturalcommodity to the licensed handler, becomes a creditor of thelicensed handler due to the lien that arises under section926.021 of the RevisedCode;

(3) All or part of the agricultural commodity isreturned to the producer at a later date and used for feedpurposes.

(V) Notwithstandingsection 1.02 of the RevisedCode, "and" shall not be read"or" and "or" shall not be read "and."

Sec. 927.69. To effect the purpose of sections 927.51 to 927.74of the Revised Code, the director of agriculture or the director's authorizedrepresentative may:

(A) Make reasonable inspection of any premises in this state and any propertytherein or thereon;

(B) Stop and inspect in a reasonable manner, any means of conveyance movingwithin this state upon probable cause to believe it contains or carries anypest, host, commodity, or other article that is subject to sections 927.51 to927.72 of the Revised Code;

(C) Conduct inspections of agricultural products that are required by other states, the United States department of agriculture, other federal agencies, or foreign countries to determine whether the products are infested. If, upon making such an inspection, the director or the director's authorized representative determines that an agricultural product is not infested, the director or the director's authorized representative may issue a certificate, as required by other states, the United States department of agriculture, other federal agencies, or foreign countries, indicating that the product is not infested.

If the director charges fees for any of the certificates, agreements, or inspections specified in this section, the fees shall be as follows:

(4) Agricultural products and their conveyances inspections, ~~sixty-five dollars~~ an amount equal to the hourly rate of pay in the highest step in the pay range, including fringe benefits, of a plant pest control specialist multiplied by the number of hours worked by such a specialist in conducting an inspection.

The director may adopt rules under section 927.52 of the Revised Code that define the certificates, agreements, and inspections.

The fees shall be deposited into the state treasury to the credit of the pesticide program fund created in Chapter 921. of the Revised Code. Money credited to the fund shall be used to pay the costs incurred by the department of agriculture in administering this chapter, including employing a minimum of two additional inspectors.

Sec. 1111.04. (A) Prior to soliciting or engaging in trustbusiness in this state, a trust company shall pledge to the treasurer of stateinterest bearing securities authorized in division (B) of thissection, having a par value, not including unaccrued interest, of one hundredthousand dollars, and approved by the superintendent of financialinstitutions. The trust company may pledge the securities either by deliveryto the treasurer of state or by placing the securities with a qualifiedtrustee for safekeeping to the account of the treasurer of state, thecorporate fiduciary, and any other person having an interest in the securitiesunder Chapter 1109. of the Revised Code, as their respective interests may appearand be asserted by written notice to or demand upon the qualified trustee orby order of judgment of a court.

(B) Securities pledged by a trust company to satisfy therequirements of division (A) of this section shall be one or more ofthe following:

(1) Bonds, notes, or other obligations of or guaranteed by theUnited States or for which the full faith and credit of theUnited States is pledged for the payment of principal andinterest;

(2) Bonds, notes, debentures, or other obligations or securities issued byany agency or instrumentality of the United States;

(3) General obligations of this or any other state of the UnitedStates or any subdivision of this or any other state of theUnited States.

(C) The treasurer of state shall accept delivery of securitiespursuant to this section when accompanied by the superintendent's approval ofthe securities or the written receipt of a qualified trustee describing thesecurities and showing the superintendent's approval of the securities, andshall issue a written acknowledgment of the delivery of the securities or thequalified trustee's receipt and the superintendent's approval to the trustcompany.

(D) The superintendent shall approve securities to be pledged bya trust company pursuant to this section if the securities are all of thefollowing:

(2) Of one or more of the kinds authorized by division (B) ofthis section and not a derivative of or merelyan interest in any of those securities;

(E) The treasurer of state shall, with the approval of thesuperintendent, permit a trust company to pledge securities in substitutionfor securities pledged pursuant to this section and the withdrawal of thesecurities substituted for so long as the securities remaining pledged satisfythe requirements of division (A) of this section. The treasurer ofstate shall permit a trust company to collect interest paid on securitiespledged pursuant to this section so long as the trust company is solvent. Thetreasurer of state shall, with the approval of the superintendent, permit atrust company to withdraw securities pledged pursuant to this section when thetrust company has ceased to solicit or engage in trust business in this state.

(F) For purposes of this section, a qualified trustee is afederal reserve bank located in this state, a branch of a federal reserve banklocated in this state regardless of where the branch is located, a federal home loan bank, or a trustcompany as defined in section 1101.01 of the Revised Code,except a trust company may not actas a qualified trustee for securities it or anyof its affiliates is pledging pursuant to this section.

(G) The superintendent, with the approval of the treasurer ofstate and the attorney general, shall prescribe the form of all receipts andacknowledgments provided for by this section, and upon request shall furnish acopy of each form, with the superintendent's certification attached, to eachqualified trustee eligible to hold securities for safekeeping under thissection.

Sec. 1327.511. All money collected under section 1327.50 of the Revised Codefor services rendered by the department of agriculture in operating the typeevaluation program shall be deposited in the state treasury to the credit ofthe metrology and scale certification fund, which is hereby created. Money credited to thefund shall be used to pay operating costs incurred by the department inadministering the program.

Sec. 1502.02. (A) There is hereby created in thedepartment of natural resources the division of recycling and litterprevention to be headed by the chief of recycling and litter prevention.

(B) There is hereby created in the state treasury therecycling and litter prevention fund, consisting of moneysdistributed to it from fees, including the fee levied under division (A)(2) of section 3714.073 of the Revised Code, gifts, donations, grants, reimbursements, and other sources, including investment earnings.

(1) Use moneys credited to the fund exclusively for thepurposes set forth in sections 1502.03, 1502.04, and 1502.05 ofthe Revised Code, with particular emphasis on programs relatingto recycling;

(2) Expend for administration of the division not more than ten per cent ofany fiscal year'sappropriation to the division, excluding the amount assessed tothe division for direct and indirect central support charges;

(3) Require recipients of grants under section 1502.05 ofthe Revised Code, as a condition of receiving and retaining them,to do all of the following:

(a) Create a separate account for the grants and any cashdonations received that qualify for the donor credit allowed bysection 5733.064 of the Revised Code;

(b) Make expenditures from the account exclusively for thepurposes for which the grants were received;

(d) Report to the chief information regarding the amountand donor of cash donations received as described by section5733.064 of the Revised Code;

(e) Use grants received to supplement and not to replaceany existing funding for such purposes.

(4) Report to the tax commissioner information the chief receivespursuant to division (C)(3)(d) of this section.

Sec. 1509.06. (A) An application for a permit to drill a newwell, drill an existing well deeper, reopen a well, convert awellto any use other than its original purpose, or plug back awell toa different source of supply shall be filed with thechief of thedivision of mineral resourcesmanagement upon such form as thechiefprescribes and shall contain each of the following that isapplicable:

~~(A)~~(1) The name and address of the owner and, if acorporation,the name and address of the statutory agent;

~~(B)~~(2) The signature of the owner or the owner's authorizedagent. When an authorized agent signs an application, it shall beaccompanied by a certified copy of the appointment as suchagent.

~~(C)~~(3) The names and addresses of all persons holding theroyalty interest in the tract upon which the well is located oristo be drilled or within a proposed drilling unit;

~~(D)~~(4) The location of the tract or drilling unit on whichthewell is located or is to be drilled identified by section orlotnumber, city, village, township, and county;

~~(F)~~(6) The geological formation to be tested or used and theproposed total depth of the well;

~~(H)~~(8) If the well is for the injection of a liquid, identityof the geological formation to be used as the injection zone andthe composition of the liquid to be injected;

~~(I)~~(9) For an application for a permit to drill a new well, a sworn statement that the applicant has provided notice of the application to the owner of each occupied dwelling unit that is located within five hundred feet of the surface location of the well if the surface location will be less than five hundred feet from the boundary of the drilling unit and more than fifteen occupied dwelling units are located less than five hundred feet from the surface location of the well, excluding any dwelling that is located on real property all or any portion of which is included in the drilling unit. The notice shall contain a statement that an application has been filed with the division of mineral resources management, identify the name of the applicant and the proposed well location, include the name and address of the division, and contain a statement that comments regarding the application may be sent to the division. The notice may be provided by hand delivery or regular mail. The identity of the owners of occupied dwelling units shall be determined using the tax records of the municipal corporation or county in which the dwelling unit is located as of the date of the notice.

~~(J)~~(10) A plan for restoration of the land surface disturbedbydrilling operations. The plan shall provide for compliancewiththe restoration requirements of division (A) of section1509.072of the Revised Code and any rules adopted by the chiefpertainingto that restoration.

~~(K)~~(11) A description by name or number of the county,township,and municipal corporation roads, streets, and highwaysthat theapplicant anticipates will be used for access to andegress fromthe well site;

Each application shall be accompanied by a map, on a scalenot smaller than four hundred feet to the inch, prepared by anOhio registered surveyor, showing the location of the well andcontaining such other data as may be prescribed by the chief. Ifthe well is or is to be located within the excavations andworkings of a mine, the map also shall include the location ofthemine, the name of the mine, and the name of the personoperatingthe mine.

(B) The chief shall cause a copy of the weekly circularpreparedby the division to be provided to thecounty engineer of eachcounty that contains active or proposeddrilling activity. Theweekly circular shall contain, in themanner prescribed by thechief, the names of all applicants forpermits, the location ofeach well or proposed well, theinformation required by division~~(K)~~(A)(11) of this section, andanyadditional information the chiefprescribes. In addition, the chief promptly shall transfer an electronic copy or facsimile, or if those methods are not available to a municipal corporation or township, a copy via regular mail, of a drilling permit application to the clerk of the legislative authority of the municipal corporation or to the clerk of the township in which the well or proposed well is or is to be located if the legislative authority of the municipal corporation or the board of township trustees has asked to receive copies of such applications and the appropriate clerk has provided the chief an accurate, current electronic mailing address or facsimile number, as applicable.

(C) The chief shall notissue a permit for at least ten daysafter the date of filing ofthe application for the permit unless,upon reasonable causeshown, the chief waives that period or arequest forexpedited review isfiled under this section.However,the chief shall issue apermit within twenty-one days ofthefiling of the applicationunless the chief denies theapplicationby order.

(D) An applicant may file a request with the chief forexpeditedreview of a permit application if the well is notoris not to belocated in a gas storage reservoir or reservoirprotective area,as "reservoir protective area" is defined insection 1571.01 ofthe Revised Code. If the well is or is to belocated in a coalbearing township, the application shall beaccompanied by theaffidavit of the landowner prescribed insection 1509.08 of theRevised Code.

In addition to a complete application for a permit that meetstherequirements of this section and the permit fee prescribed bythis section, arequest for expedited review shall be accompaniedby a separate nonrefundablefilingfee of five hundred dollars.Upon the filing of a request forexpedited review, the chief shallcause the county engineer of the county inwhich the wellis or isto be located to be notified of the filing of the permitapplication and the request for expedited review by telephone orother means that in the judgment of the chiefwill providetimelynotice of the application and request. Thechief shall issue apermit within seven days of the filing of therequest unless thechief denies the application by order. Notwithstanding theprovisions of this section governingexpedited review of permitapplications, the chief may refuse toaccept requests forexpedited review if, in the chief'sjudgment, theacceptance ofthe requests would prevent the issuance, withintwenty-one days oftheir filing, of permits for whichapplications are pending.

(E) A well shall be drilled and operated in accordance with theplans, sworn statements, and other information submitted in theapproved application.

(F) The chief shall issue an order denying a permit if thechieffinds that there is a substantial risk that the operationwillresult in violations of this chapter or rules adoptedunder itthat will present an imminent danger topublic healthor safety ordamage to the environment, provided that where thechief findsthat terms or conditions to the permit can reasonablybe expectedto prevent such violations, the chief shall issue thepermitsubject to those terms or conditions, including, if applicable, terms and conditions regarding subjects identified in rules adopted under section 1509.03 of the Revised Code.

(G) Each application for a permit required by section 1509.05ofthe Revised Code, except an application to plug back an existing well that is required by that section and an application for a well drilled orreopened for purposes of section 1509.22 of the Revised Code,alsoshall be accompanied by a nonrefundable fee ~~of two~~ as follows:

(1) Two hundredfiftydollars for a permit to conduct activities in a township with a population of fewer than five thousand;

(2) Five hundred dollars for a permit to conduct activities in a township with a population of five thousand or more, but fewer than ten thousand;

(3) Seven hundred fifty dollars for a permit to conduct activities in a township with a population of ten thousand or more, but fewer than fifteen thousand;

(4) One thousand dollars for a permit to conduct activities in either of the following:

For purposes of calculating fee amounts, populations shall be determined using the most recent federal decennial census.

Each application for the revision or reissuance of a permit shall be accompanied by a nonrefundable fee of two hundred fifty dollars.

(H) The chief may order the immediate suspension of drilling,operating, or plugging activities after finding thatany person iscausing, engaging in, or maintaining a condition or activitythatin the chief's judgment presents animminent danger topublichealth or safety or results in or is likely to result inimmediatesubstantial damage to natural resources or fornonpayment of ~~the~~ afee required by this section. The chief mayorder the immediatesuspension of the drilling or reopening of awell in a coalbearingtownship after determining that the drilling or reopeningactivities presentan imminent and substantial threat to publichealth or safety or to miners'health or safety. Before issuinganysuch order, the chief shall notify the owner in such manner asinthe chief's judgment would provide reasonable notification thatthe chief intends to issue a suspension order. The chief mayissue suchan order without prior notification if reasonableattempts tonotify the owner have failed, but in such an eventnotificationshall be given as soon thereafter as practical.Within fivecalendar days after the issuance of the order, thechief shallprovide the owner an opportunity to be heard and topresentevidence that the condition or activity is not likely toresultin immediate substantial damage to natural resources ordoes notpresent an imminent danger to public health or safety orto miners' healthor safety, if applicable. In the case ofactivities in a coal bearing township, if the chief, afterconsidering evidence presented by the owner, determines that theactivities donot present such a threat, the chief shall revokethe suspensionorder. Notwithstanding any provision of thischapter, the ownermayappeal a suspension order directly to thecourt of commonpleas of thecounty in which the activity islocated or, if in a coal bearing township,to thereclamationcommission under section 1513.13 of the RevisedCode.

Sec. 1509.072. No oil or gas well owner or agent of an oil orgas well owner shall fail to restore the land surface within the areadisturbed in siting, drilling, completing, and producing the well as requiredin this section.

(A) Within five months after the date upon which thesurface drilling of a well is commenced, the owner or theowner's agent, in accordance with therestorationplan filed underdivision ~~(J)~~(A)(10) of section 1509.06 of the Revised Code,shall fill all thepits for containing brine, other waste substances resulting,obtained, or produced in connection with exploration ordrilling for, or production of, oil or gas, or oil that arenot requiredbyother state or federal law or regulation, and remove all concretebases, drilling supplies, and drilling equipment. Within ninemonths after the date upon which the surface drilling of a wellis commenced, the owner or the owner's agent shall grade orterrace andplant, seed, or sod the area disturbed that is not required inproduction of the well where necessary to bind the soil andprevent substantial erosion and sedimentation. If the chief ofthe division of mineral resources management findsthat a pit used for containingbrine, other waste substances, or oil is in violation of section1509.22 of the Revised Code or rules adopted or orders issuedunder it, the chief may require the pit to be emptiedandclosed before expiration of the five-month restoration period.

(B) Within six months after a well that has produced oilor gas is plugged, or after the plugging of a dry hole, the owneror the owner's agent shall remove all production and storagestructures,supplies, and equipment, and any oil, salt water, and debris, andfill any remaining excavations. Within that period theowner orthe owner's agent shall grade or terrace and plant, seed, orsod the areadisturbed where necessary to bind the soil and preventsubstantial erosion and sedimentation.

The owner shall be released from responsibility to performany or all restoration requirements of this section on any partor all of the area disturbed upon the filing of a request for awaiver with and obtaining the written approval of the chief,which request shall be signed by the surface owner to certify theapproval of the surface owner of the release sought. The chiefshall approve the request unless the chieffinds uponinspection thatthe waiver would be likely to result in substantial damage toadjoining property, substantial contamination of surface orunderground water, or substantial erosion or sedimentation.

The chief, by order, may shorten the time periods providedfor under division (A) or (B) of this section if failure toshorten the periods would be likely to result in damage to publichealth or the waters or natural resources of the state.

The chief, upon written application by an owner or anowner's agent showing reasonable cause, may extend the periodwithin whichrestoration shall be completed under divisions (A) and (B) ofthis section, but not to exceed a further six-month period,except under extraordinarily adverse weather conditions or whenessential equipment, fuel, or labor is unavailable to the owneror the owner's agent.

If the chief refuses to approve a request for waiver orextension, the chief shall do so by order.

Sec. 1509.31. Whenever the entire interest of an oil andgas lease is assigned or otherwise transferred, the assignor ortransferor shall notify the holders of the royalty interests,and, if a well or wells exist on the lease, the division of mineral resourcesmanagement, of the name and address ofthe assignee or transferee bycertified mail, return receipt requested, not later than thirtydays after the date of the assignment or transfer. When noticeof any such assignment or transfer is required to be provided tothe division, it shall be provided on a form prescribed andprovided by the division and verified by both the assignor ortransferor and by the assignee or transferee. The notice formapplicable to assignments or transfers of a well to the owner ofthe surface estate of the tract on which the well is locatedshall contain a statement informing the landowner that the wellmay require periodic servicing to maintain its productivity;that, upon assignment or transfer of the well to thelandowner, the landowner becomes responsible for compliance with therequirements of this chapter and rules adopted under it,including, without limitation, the proper disposal of brineobtained from the well, the plugging of the well when it becomesincapable of producing oil or gas, and the restoration of thewell site; and that, upon assignment or transfer of the well tothe landowner, the landowner becomes responsible for thecosts of compliance with the requirements of this chapter and rulesadopted under it and the costs for operating and servicing thewell.

The owner holding a permit under section 1509.05 of theRevised Code is responsible for all obligations and liabilitiesimposed by this chapter and any rules, orders, and terms andconditions of a permit adopted or issued underit, and no assignment ortransfer by the owner relieves the owner of the obligations andliabilities until and unless the assignee or transferee fileswith the division the information described indivisions (A)(1), ~~(B)~~(2), ~~(C)~~(3), ~~(D)~~(4), ~~(E)~~(5), ~~(J)~~(10), ~~(K)~~(11),and ~~(L)~~(12) of section 1509.06 of the Revised Code;obtains liability insurance coverage requiredby section 1509.07 of theRevised Code, except when none is required by that section; andexecutes and files a surety bond, negotiable certificates ofdeposit or irrevocable letters of credit, or cash, as described inthat section. Instead of a bond,but only upon acceptance by the chief of the division of mineral resourcesmanagement,the assignee or transferee may file proof of financialresponsibility, described in section 1509.07 of the Revised Code. Section 1509.071 of the Revised Code applies to the surety bond,cash, and negotiable certificates of deposit and irrevocable letters ofcredit described in thissection. Unless the chief approves a modification, each assigneeor transferee shall operate in accordance with the plans andinformation filed by the permit holder pursuant to section1509.06 of the Revised Code.

Sec. 1515.14. Within the limits of funds appropriated tothe department of natural resources and the soil and water conservation district assistance fund created in this section, there shall be paid in eachcalendar year to each local soil and water conservation districtan amount not to exceed one dollar for each one dollar receivedin accordance with section 1515.10 of the Revised Code, received from tax levies in excess of the ten-mill levy limitation approved for the benefit of local soil and water conservation districts, orreceived from an appropriation by a municipal corporation ora township to a maximum of eightthousand dollars, provided that the Ohio soil and waterconservation commission may approve payment to a district in anamount in excess of eight thousand dollars in any calendar yearupon receipt of a request and justification from the district.The county auditor shall credit such payments to the special fundestablished pursuant to section 1515.10 of the Revised Code forthe local soil and water conservation district. The departmentmay make advances at least quarterly to each district on thebasis of the estimated contribution of the state to eachdistrict. Moneys received by each district shall be expended forthe purposes of the district.

For the purpose of providing money to soil and water conservation districts under this section, there is hereby created in the state treasury the soil and water conservation district assistance fund consisting of money credited to it under section 3714.073 of the Revised Code.

Sec. 1517.02. There is hereby created in the department ofnatural resources the division of natural areas and preserves,which shall be administered by the chief of natural areas and preserves. The chief shall take an oath ofoffice and shall file in the office of the secretary of state abond signed by the chief and by a surety approved by thegovernor for asum fixed pursuant to section 121.11 of the Revised Code.

The chief shall administer a system of naturepreserves and wild, scenic, and recreational river areas. Thechief shall establish a system of nature preserves throughacquisition and dedication of natural areas of state or nationalsignificance, which shall include, but not be limited to, areas~~which~~ that represent characteristic examples of Ohio's naturallandscape types and its natural vegetation and geologicalhistory. The chief shall encourage landowners to dedicate areasof unusual significance as nature preserves, and shall establishand maintain a registry of natural areas of unusual significance.

The chief may supervise, operate, protect, and maintainwild, scenic, and recreational river areas, as designated by thedirector of natural resources. The chief may cooperate withfederal agencies administering any federal program concerningwild, scenic, or recreational river areas.

The chief may, with the approval of the director, enterinto an agreement with the United States department of commerceunder the "Coastal Zone Management Act of 1972," 86 Stat. 1280,16 U.S.C.A. 1451, as amended, for the purpose of receiving grantsto continue the management, operation, research, and programmingat old woman creek national estuarine research reserve.

(A) Formulate policies and plans for the acquisition, use,management, and protection of nature preserves;

(D) Prepare and maintain surveys and inventories ofnatural areas and habitats of rare and endangered species ofplants and animals;

(E) Adopt rules for the use, visitation, and protection ofnature preserves, "natural areas owned or managed througheasement, license, or lease by the department and administered bythe division," and lands owned "or managed through easement,license, or lease" by the department and administered by thedivision ~~which~~ that are within or adjacent to any wild, scenic, orrecreational river area, in accordance with Chapter 119. of theRevised Code;

(F) Provide facilities and improvements within the statesystem of nature preserves that are necessary for theirvisitation, use, restoration, and protection and do not impairtheir natural character;

(G) Provide interpretive programs and publish anddisseminate information pertaining to nature preserves andnatural areas for their visitation and use;

(H) Conduct and grant permits to qualified persons for theconduct of scientific research and investigations within naturepreserves;

(J) Publish and submit to the governor and the generalassembly a biennial report of the status and condition of eachnature preserve, activities conducted within each preserve, andplans and recommendations for natural area preservation.

Sec. 1521.062. (A) All dams, dikes, and leveesconstructed in this state and not exempted by this section or bythe chief of the division of water under section 1521.06 of theRevised Code shall be inspected periodically by the chief to, except for classes of dams that, in accordance with rules adopted under this section, are required to be inspected by registered professional engineers who have been approved for that purpose by the chief. The inspection shallensure that continued operation and use of the dam, dike, orlevee does not constitute a hazard to life, health, or property.Periodic inspections shall not be required of the followingstructures:

(1) A dam that is less than ten feet in height and has astorage capacity of not more than fifty acre-feet at theelevation of the top of the dam, as determined by the chief. Forthe purposes of this section, the height of a dam shall bemeasured from the natural stream bed or lowest ground elevationat the downstream or outside limit of the dam to the elevation ofthe top of the dam.

(2) A dam, regardless of height, that has a storagecapacity of not more than fifteen acre-feet at the elevation ofthe top of the dam, as determined by the chief;

(3) A dam, regardless of storage capacity, that is sixfeet or less in height, as determined by the chief;

(5) A dam, dike, or levee that has been exempted inaccordance with rules adopted under section 1521.064 of theRevised Code.

(B) In accordance with rules adopted under this section, the owner of a dam that is in a class of dams that is designated in the rules for inspection by registered professional engineers shall obtain the services of a registered professional engineer who has been approved by the chief to conduct the periodic inspection of dams pursuant to schedules and other standards and procedures established in the rules. The registered professional engineer shall prepare a report of the inspection in accordance with the rules and provide the inspection report to the dam owner who shall submit it to the chief. A dam that is designated under the rules for inspection by a registered professional engineer but that is not inspected within a five-year period may be inspected by the chief at the owner's expense.

(C) Intervals between periodic inspections shall bedetermined by the chief, but shall not exceed five years. ~~Thechief may use inspection reports prepared for the owner of thedam, dike, or levee by a registered professional engineer.~~

~~(C) The owner~~ (D) In the case of a dam, dike, or levee that the chief inspects, the chief shall ~~be furnished~~ furnish a report of ~~each~~ theinspection ~~and~~ to the owner of the dam, dike, or levee. With regard to a dam, dike, or levee that has been inspected, either by the chief or by a registered professional engineer, and that is the subject of an inspection report prepared or received by the chief, the chief shall ~~be informed of~~ inform the owner of any required repairs,maintenance, investigations, and other remedial and operationalmeasures ~~by the chief~~. The chief shall order the owner toperform such repairs, maintenance, investigations, or otherremedial or operational measures as he the chief considersnecessary tosafeguard life, health, or property. The order shall permit theowner a reasonable time in which to perform the needed repairs,maintenance, investigations, or other remedial measures, and thecost thereof shall be borne by the owner. All orders of thechief are subject to appeal as provided in Chapter 119. of theRevised Code. The attorney general, upon written request of thechief, may bring an action for an injunction against any personwho violates this section or to enforce an order of the chiefmade pursuant to this section.

~~(D)~~(E) The owner of a dam, dike, or levee shall monitor,maintain, and operate the structure and its appurtenances safelyin accordance with state rules, terms and conditions of permits,orders, and other requirements issued pursuant to this section orsection 1521.06 of the Revised Code. The owner shall fully andpromptly notify the division of water and other responsibleauthorities of any condition ~~which~~ that threatens the safety of thestructure and shall take all necessary actions to safeguard life,health, and property.

~~(E)~~(F) Before commencing the repair, improvement, alteration,or removal of a dam, dike, or levee, the owner shall file anapplication including plans, specifications, and other requiredinformation with the division and shall secure written approvalof the application by the chief. Emergency actions by the ownerrequired to safeguard life, health, or property are exempt fromthis requirement. The chief may, by rule, define maintenance,repairs, or other remedial measures of a routine nature ~~which~~ that areexempt from this requirement.

~~(F)~~(G) The chief may remove or correct, at the expense of theowner, any unsafe structures found to be constructed ormaintained in violation of this section or section 1521.06 of theRevised Code. In the case of an owner other than a governmentalagency, the cost of removal or correction of any unsafestructure, together with a description of the property on whichthe unsafe structure is located, shall be certified by the chiefto the county auditor and placed by the county auditor upon thetax duplicate. This cost is a lien upon the lands from the dateof entry and shall be collected as other taxes and returned tothe division. In the case of an owner that is a governmentalagency, the cost of removal or correction of any unsafe structureshall be recoverable from the owner by appropriate action in acourt of competent jurisdiction.

~~(G)~~(H) If the condition of any dam, dike, or levee is found,in the judgment of the chief, to be so dangerous to the safety oflife, health, or property as not to permit time for the issuanceand enforcement of an order relative to repair, maintenance, oroperation, the chief shall employ any of the following remedialmeans necessary to protect life, health, and property:

(3) Take such other measures or actions as he the chiefconsidersnecessary to safeguard life, health, and property.

The chief shall continue in full charge and control of the dam,dike, or levee until the structure is rendered safe. The cost ofthe remedy shall be recoverable from the owner of the structureby appropriate action in a court of competent jurisdiction.

~~(H)~~(I) The chief may accept and expend gifts, bequests, andgrants from the United States government or from any other publicor private source and may contract with the United Statesgovernment or any other agency or entity for the purpose ofcarrying out the dam safety functions set forth in this sectionand section 1521.06 of the Revised Code.

(J) In accordance with Chapter 119. of the Revised Code, the chief shall adopt, and may amend or rescind, rules that do all of the following:

(1) Designate classes of dams for which dam owners must obtain the services of a registered professional engineer to periodically inspect the dams and to prepare reports of the inspections for submittal to the chief;

(2) Establish standards in accordance with which the chief must approve or disapprove registered professional engineers to inspect dams together with procedures governing the approval process;

(3) Establish schedules, standards, and procedures governing periodic inspections and standards and procedures governing the preparation and submittal of inspection reports;

(4) Establish provisions regarding the enforcement of this section and rules adopted under it.

Sec. 1531.27. The chief of the division of wildlife shall payto the treasurers of the several counties wherein lands owned bythe state and administered by the division are ~~situate~~ located an annualamount determined in the following manner: in each such countyone per cent of the total value of such lands exclusive ofimprovements, as shown on the auditor's records of taxable valueof real property existing at the time when the state acquired thetract or tracts comprising ~~such~~ the lands.

~~Such~~ The payments shall be made from funds accruing to thedivision ~~of wildlife~~ from the sale of hunting or fishing licensesand ~~federal wildlife restoration funds, and the~~ from fines, penalties, and forfeitures deposited into the state treasury to the credit of the wildlife fund created in section 1531.17 of the Revised Code. The allocation ofamounts to be paid from ~~such~~ those sources shall be determined by thedirector of natural resources.

~~Such~~ The payments to the treasurers of the several countiesshall be credited to the fund for school purposes within theschool districts wherein ~~such~~ the lands are ~~situate~~ located.

Sec. 1533.10. Except as provided in this section ordivision (A)(2) of section 1533.12 of the Revised Code, no personshall hunt any wild bird or wild quadruped without a huntinglicense. Each day that any person hunts within the state withoutprocuring such a license constitutes a separate offense. Except as otherwise provided in this section, everyapplicant for a hunting license who is a resident of the stateand ~~sixteen~~ eighteen years of age or more shallprocure a resident hunting license,the fee for which shall be eighteen dollars, unless the rulesadopted under division (B) of section 1533.12 of the Revised Codeprovide for issuance of a resident hunting license to theapplicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior hunting license, the fee for which shall be one-half of the regular hunting license fee. Every applicant who is under the age of ~~sixteen~~ eighteen years shall procure aspecial youth hunting license, the fee for which shall beone-half of the regular hunting license fee. The owner of lands in thestate and theowner's children of anyage and grandchildren under eighteen years of age may hunton the landswithout a hunting license. The tenant and children ofthe tenant, residing on lands in the state, may hunton them without a hunting license. ~~Every~~ Except as otherwise provided in division (A)(1) of section 1533.12 of the Revised Code, every applicant fora huntinglicense who is a nonresident of the state and who is ~~sixteen~~ eighteen years of age or older shall procure anonresident hunting license, the fee for which shall be one hundred twenty-four dollars, unless the applicant is a resident of a state that is aparty to an agreement under section 1533.91 of the Revised Code,in which case the fee shall be eighteen dollars.

The chief of the division of wildlife may issue a small game hunting license expiring three days from the effectivedate of the license to a nonresident of the state, the fee forwhich shall be thirty-nine dollars. No person shall take orpossess deer, wild turkeys, fur-bearing animals, ducks, geese, brant,or any nongame animal whilepossessing only a small game hunting license. A small game hunting license does not authorize the taking or possessing ofducks, geese, or brant without having obtained, in addition tothe small game hunting license, a wetlands habitatstamp as provided in section 1533.112 of the Revised Code. A small game hunting license does not authorize the takingor possessing of deer, wild turkeys, or fur-bearing animals. Anonresident of the state who wishes to take or possess deer,wild turkeys, or fur-bearing animals in this state shallprocure, respectively, a special deer or wild turkey permit asprovided in section 1533.11 of the Revised Code or a furtaker permit as provided in section 1533.111 of the RevisedCode in addition to a nonresident hunting license or a special youth hunting license, as applicable, as provided in thissection.

No person shall procure or attempt to procure a huntinglicense by fraud, deceit, misrepresentation, or any falsestatement.

This section does not authorize the taking and possessingof deer or wild turkeys without first having obtained, inaddition to the hunting license required by this section, aspecial deer or wild turkey permit as provided in section 1533.11of the Revised Code or the taking and possessing of ducks, geese,or brant without first having obtained, in addition to thehunting license required by this section, a wetlands habitatstamp as provided in section 1533.112 of the Revised Code.

This section does not authorize the hunting or trapping offur-bearing animals without first having obtained, in addition toa hunting license required by this section, a fur taker permit asprovided in section 1533.111 of the Revised Code.

No hunting license shall be issued unless it is accompanied by a writtenexplanation of the law in section 1533.17of the Revised Code and the penalty for itsviolation, including a description of terms of imprisonment and fines that maybe imposed.

No hunting license shall be issued unless the applicantpresents to the agent authorized to issue the license apreviously held hunting license or evidence of having held such alicense in content and manner approved by the chief, acertificate of completion issued upon completion of a huntereducation and conservation course approved by the chief, orevidence of equivalent training in content and manner approved bythe chief.

No person shall issue a hunting license to any person whofails to present the evidence required by this section. Noperson shall purchase or obtain a hunting license withoutpresenting to the issuing agent the evidence required by thissection. Issuance of a hunting license in violation of therequirements of this section is an offense by both the purchaserof the illegally obtained hunting license and the clerk or agentwho issued the hunting license. Any hunting license issued inviolation of this section is void.

The chief, with approval of the wildlife council, shalladopt rules prescribing a hunter education and conservationcourse for first-time hunting license buyers and for volunteerinstructors. The course shall consist of subjects including, butnot limited to, hunter safety and health, use of huntingimplements, hunting tradition and ethics, the hunter andconservation, the law in section 1533.17of the Revised Code along with the penalty foritsviolation, including a description of terms of imprisonment and fines that maybe imposed, and other law relating to hunting. Authorizedpersonnel of the division or volunteer instructors approved bythe chief shall conduct such courses with such frequency and atsuch locations throughout the state as to reasonably meet theneeds of license applicants. The chief shall issue a certificateof completion to each person who successfully completes thecourse and passes an examination prescribed by the chief.

Sec. 1533.11. (A) Except as provided in this section, noperson shall hunt deer on lands of another without firstobtaining an annual special deer permit. Except as provided inthis section, no person shall hunt wild turkeys on lands ofanother without first obtaining an annual special wild turkeypermit. Each applicant for a special deer or wild turkey permitshall pay an annual fee of twenty-three dollars for each permit unless the rules adopted under division (B)of section 1533.12 of the Revised Code provide for issuance of adeer or wild turkey permit to the applicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior deer or wild turkey permit, the fee for which shall be one-half of the regular special deer or wild turkey permit fee. Each applicant who is under the age of ~~sixteen~~ eighteen years shall procure a special youth deer or wild turkey permit, the fee for which shall be one-half of the regular special deer or wild turkey permit fee.Except as provided in division (A)(2) of section 1533.12 of theRevised Code, a deer or wild turkey permit shall run concurrentlywith the hunting license. The money received shall be paid into the statetreasury to the credit of the wildlife fund, created in section1531.17 of the Revised Code, exclusively for the use of thedivision of wildlife in the acquisition and development of landfor deer or wild turkey management, for investigating deer orwild turkey problems, and for the stocking, management, andprotection of deer or wild turkey. Every person, while huntingdeer or wild turkey on lands of another, shall carry theperson's special deer or wild turkey permit and exhibit itto any enforcement officer so requesting. Failure to so carry andexhibit such a permit constitutes an offense under this section.The chief of the division of wildlife shall adopt any additionalrules the chief considers necessary to carry out this sectionand section 1533.10 of the Revised Code.

The owner and the children of the owner of lands in thisstate may hunt deer or wild turkey thereon without a special deeror wild turkey permit. The tenant and children of thetenant may hunt deer or wild turkey on lands wherethey reside without a special deer or wild turkey permit.

(B) A special deer or wild turkey permit is nottransferable. No person shall carry a special deer or wildturkey permit issued in the name of another person.

(C) The wildlife refunds fund is hereby created in thestate treasury. The fund shall consist of money received fromapplication fees for special deer permits that are not issued.Money in the fund shall be used to make refunds of suchapplication fees.

Sec. 1533.111. Except as provided in this section ordivision (A)(2) of section 1533.12 of the Revised Code, no personshall hunt or trap fur-bearing animals on land of another withoutfirst obtaining an annual fur taker permit. Each applicant for afur taker permit shall pay an annual fee of fourteen dollars forthe permit, except as otherwise provided in this section orunless the rules adopted under division (B) of section 1533.12 ofthe Revised Code provide for issuance of a fur taker permit tothe applicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior fur taker permit, the fee for which shall be one-half of the regular fur taker permit fee. Each applicant ~~who is a residentof the state and~~ under the age of ~~sixteen~~ eighteen years shall procure aspecial youth fur taker permit, the fee for which shall beone-half of the regular fur taker permit fee. The fur taker permit shall run concurrently withthe hunting license. The money received shall be paid into thestate treasury to the credit of the fund established in section1533.15 of the Revised Code.

No fur taker permit shall be issued unless it is accompanied by a writtenexplanation of the law in section 1533.17of the Revised Code and the penalty for itsviolation, including a description of terms of imprisonment and fines that maybe imposed.

No fur taker permit shall be issued unless the applicantpresents to the agent authorized to issue a fur taker permit apreviously held hunting license or trapping or fur taker permitor evidence of having held such a license or permit in content andmanner approved by the chief of the division of wildlife, acertificate of completion issued upon completion of a trappereducation course approved by the chief, or evidence of equivalenttraining in content and manner approved by the chief.

No person shall issue a fur taker permit to any person whofails to present the evidence required by this section. Noperson shall purchase or obtain a fur taker permit withoutpresenting to the issuing agent the evidence required by thissection. Issuance of a fur taker permit in violation of therequirements of this section is an offense by both the purchaserof the illegally obtained permit and the clerk or agent whoissued the permit. Any fur taker permit issued in violation ofthis section is void.

The chief, with approval of the wildlife council, shalladopt rules prescribing a trapper education course for first-timefur taker permit buyers and for volunteer instructors. Thecourse shall consist of subjects that include, but are notlimited to, trapping techniques, animal habits andidentification, trapping tradition and ethics, the trapper andconservation, the law in section 1533.17of the Revised Code along with the penalty forits violation, including a description of terms of imprisonment and fines thatmay be imposed, and other law relating totrapping. Authorizedpersonnel of the division of wildlife or volunteer instructorsapproved by the chief shall conduct the courses with suchfrequency and at such locations throughout the state as toreasonably meet the needs of permit applicants. The chief shallissue a certificate of completion to each person who successfullycompletes the course and passes an examination prescribed by thechief.

Every person, while hunting or trapping fur-bearinganimals on lands of another, shall carry the person's furtaker permit ~~affixed to the person's hunting license~~ withthe person's signature written ~~acrossthe face of~~ on the permit. Failure to carry such a signed permitconstitutes an offense under this section. The chief shall adopt anyadditional rules the chief considers necessary to carryout this section.

The owner and the children of the owner of lands in thisstate may hunt or trap fur-bearing animals thereon without a furtaker permit. The tenant and children of the tenant may hunt or trap fur-bearing animals on landswhere they reside without a fur taker permit.

A fur taker permit is not transferable. No person shallcarry a fur taker permit issued in the name of another person.

A fur taker permit entitles a nonresident to takefrom this state fur-bearing animals taken and possessed by thenonresident as provided by law or division rule.

Sec. 1533.112. Except as provided in thissection or unless otherwise provided by division rule, noperson shall hunt ducks, geese, or brant on the lands of anotherwithout first obtaining an annual wetlands habitat stamp. Theannual fee for the wetlands habitat stamp shall be fourteen dollarsfor each stamp unless the rules adopted under division (B)of section 1533.12 provide for issuance of a wetlands habitatstamp to the applicant free of charge.

Moneys received from the stamp fee shall be paid into the state treasury to thecredit of the wetlands habitat fund, which is hereby established.Moneys shall be paid from the fund on the order of the directorof natural resources for the following purposes:

(A) Sixty per cent for projects that the division approvesfor the acquisition, development, management, or preservation ofwaterfowl areas within the state;

(B) Forty per cent for contribution by the division to anappropriate nonprofit organization for the acquisition,development, management, or preservation of lands and waterswithin the United States or Canada that provide or will provide habitat for waterfowlwith migration routes that cross this state.

No moneys derived from the issuance of wetlands habitatstamps shall be spent for purposes other than those specified bythis section. All investment earnings of the fund shall becredited to the fund.

Wetlands habitat stamps shall be furnished by and in a form prescribedby the chief ofthe division of wildlife and issued by clerks and other agentsauthorized to issue licenses and permits under section 1533.13 ofthe Revised Code. The record of stamps kept by the clerks andother agents shall be uniform throughout the state, in such formor manner as the director prescribes, and open at all reasonablehours to the inspection of any person. Unless otherwiseprovided by rule, each stampshall remainin force until midnight of the thirty-first day of August nextensuing. Wetlands habitat stamps may be issued in any manner toany person on any date, whether or not that date is within theperiod in which they are effective.

Every person to whom this section applies, while huntingducks, geese, or brant, shall carry an unexpired wetlands habitatstamp that is validated by the person's signature written onthe stamp inink and shall exhibit the stamp to any enforcement officer sorequesting. No person shall fail to carry and exhibit theperson's stamp.

The chief shall establish a procedure to obtain subjectmatter to be printed on the wetlands habitat stamp and shall use,dispose of, or distribute the subject matter as the chiefconsidersnecessary. The chief also shall adoptrules necessary toadminister this section.

This section does not apply to persons under sixteen yearsof age nor to persons exempted from procuring a hunting licenseunder section 1533.10 or division (A)(2) of section 1533.12 of theRevised Code.

Sec. 1533.12. (A)(1) Except as otherwise provided in division (A)(2) of this section, every person on active duty in the armed forces of the United States who is stationed in this state and who wishes to engage in an activity for which a license, permit, or stamp is required under this chapter first shall obtain the requisite license, permit, or stamp. Such a person is eligible to obtain a resident hunting or fishing license regardless of whether the person qualifies as a resident of this state. To obtain a resident hunting or fishing license, the person shall present a card or other evidence identifying the person as being on active duty in the armed forces of the United States and as being stationed in this state.

(2) Every person on active duty in thearmed forces of the United States, while on leave or furlough,may take or catch fish of the kind lawfully permitted to be takenor caught within the state, may hunt any wild bird or wildquadruped lawfully permitted to be hunted within the state, andmay trap fur-bearing animals lawfully permitted to be trappedwithin the state, without procuring a fishing license, a huntinglicense, a fur taker permit, or a wetlands habitat stamp requiredby this chapter, provided that the person shall carry on the person whenfishing, hunting, or trapping, a card or otherevidence identifying the person asbeing on active duty in the armedforces of the United States, and provided that the person is nototherwise violating any of the hunting, fishing, and trappinglaws of this state.

In order to hunt deer or wild turkey, any such person shallobtain a special deer or wild turkey permit, as applicable, undersection 1533.11 of the Revised Code. However, the person neednot obtain a hunting license in order to obtain such a permit.

(B) The chief of the division of wildlife shall provide byrule adopted under section 1531.10 of the Revised Code all ofthe following:

(1) Every resident of this state with a disability thathas been determined by the veterans administration to bepermanently and totally disabling, who receives a pension orcompensation from the veterans administration, and who receivedan honorable discharge from the armed forces of the UnitedStates, and every veteran to whom the registrar of motor vehicleshas issued a set of license plates under section 4503.41 of theRevised Code, shall be issued an annual fishing license, huntinglicense, fur taker permit, deer or wild turkey permit, orwetlands habitat stamp, or any combination of those licenses,permits, and stamp, free of charge when application is made tothe chief in the manner prescribed by and on forms provided bythe chief.

(2) Every resident of the state who was born on or before December 31, 1937, shall be issued an annual fishing license, huntinglicense, fur taker permit, deer or wild turkey permit, orwetlands habitat stamp, or any combination of those licenses,permits, and stamp, free of charge when application is made tothe chief in the manner prescribed by and on forms provided bythe chief.

(3) Every resident of state or county institutions,charitable institutions, and military homes in this state shallbe issued an annual fishing license free of charge whenapplication is made to the chief in the manner prescribed by andon forms provided by the chief.

(4) Any mobility impaired or blind person, as defined insection 955.011 of the Revised Code, who is a resident of this state and who isunable to engage in fishing without the assistance of anotherperson shall be issued an annualfishing license free of charge when application is made to thechief in the manner prescribed by and on forms provided by thechief. The person who is assisting the mobilityimpaired or blind person mayassist in taking or catching fish of the kind permitted to betaken or caught without procuring the license required undersection 1533.32 of the Revised Code, provided that only one lineis used by both persons.

(5) As used in division (B)(5) of this section,"prisoner of war" means any regularly appointed, enrolled, enlisted, orinducted member of the military forces of the United States who was captured,separated, and incarcerated by an enemy of the United States.

Any person who has been a prisoner of war, was honorablydischarged from the military forces, and is a resident of thisstate shall be issued an annual fishing license, hunting license,fur taker permit, or wetlands habitat stamp, or any combinationof those licenses, permits, and stamp, free of charge whenapplication is made to the chief in the manner prescribed by andon forms provided by the chief.

(C) The chief shall adopt rules pursuant to section1531.08 of the Revised Code designating not more than two days,which need not be consecutive, in each year as "free sportfishing days" on which any resident may exercise the privilegesaccorded the holder of a fishing license issued under section1533.32 of the Revised Code without procuring such a license,provided that the person is not otherwise violating any of thefishing laws of this state.

Sec. 1533.32. Except as provided in this section ordivision (A)(2) or (C) of section 1533.12 of the Revised Code, noperson, including nonresidents, shall take or catch any fish byangling in any of the waters in the state or engage in fishing inthose waters without a license. No person shall take or catchfrogs or turtles without a validfishing license, except as provided in this section. Personsfishing in privately owned ponds, lakes, or reservoirs to or fromwhich fish are not accustomed to migrate are exempt from thelicense requirements set forth in this section. Persons fishingin privately owned ponds, lakes, or reservoirs that are open topublic fishing through an agreement or lease with the division ofwildlife shall comply with the license requirements set forth inthis section.

The fee for an annual license shall be thirty-nine dollars for aresident of astate that is not a party to an agreement under section 1533.91of the Revised Code. The fee for an annual license shall be eighteen dollars for aresident of a state that is a party to such an agreement. Thefee for an annual license for residents of this state shall be eighteen dollars unless the rules adopted under division (B) of section 1533.12 of theRevised Code provide for issuance of a resident fishing licenseto the applicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior fishing license, the fee for which shall be one-half of the annual resident fishing license fee.

Any person under the age ofsixteen years may take or catch frogs and turtles and take or catch fish byangling without alicense.

The chief of the division ofwildlife may issue a tourist's license expiring three days fromthe effective date of the license to a resident of a state thatis not a party to an agreement under section 1533.91 of theRevised Code. The fee for atourist's license shall be eighteen dollars.

The chief shall adopt rules under section 1531.10 of theRevised Codeproviding for the issuance of a one-day fishing license to a resident of thisstate or of any other state. The fee for such a license shall be fifty-five percent of the amount established under this section for a tourist's license,rounded up to the nearest whole dollar. A one-day fishing licenseshall allow the holder totake or catch fish by angling in the waters in the state, engage in fishing inthose waters, or take or catch frogs or turtlesin those waters for one day without obtaining an annual license or a tourist'slicense under this section. At the request of a holder of a one-day fishing licensewho wishes to obtain an annual license, a clerk or agentauthorized to issue licenses under section 1533.13 of theRevisedCode, not later than the lastday on which the one-day license would be valid if it were anannual license, shall credit the amount of the fee paid for theone-day license toward the fee charged for the annual license if so authorizedby the chief. The clerk or agent shall issue the annual license uponpresentation of the one-day license and payment of a fee in anamount equal to the difference between the fee for the annuallicense and the fee for the one-day license.

Unless otherwise provided by division rule, each annual license shallbegin on the first day of March of thecurrent year and expire on the last day of February of thefollowing year.

No person shall alter a fishing license or possess afishing license that has been altered.

No person shall procure or attempt to procure a fishinglicense by fraud, deceit, misrepresentation, or any falsestatement.

Owners of land over, through, upon, or along which anywater flows or stands, except where the land is in or borders onstate parks or state-owned lakes, together with the members ofthe immediate families of such owners, may take frogs andturtles and may take or catchfish of the kind permitted to be taken or caught therefromwithout procuring a license provided for in this section. Thisexemption extends to tenants actually residing upon such landsand to the members of the immediate families of the tenants. Residents of state or county institutions, charitableinstitutions, and military homes in this state may take frogs andturtles without procuring therequired license, provided that a member of the institution orhome has an identification card, which shall be carried onthatperson when fishing.

Every fisher required to be licensed, whilefishingor taking or attempting to take frogs or turtles, shall carrythe license and exhibit it toanyperson. Failure to so carry and exhibit the licenseconstitutesan offense under this section.

Sec. 1541.03. All lands and waters dedicated and set apartfor state park purposes shall be under the control and managementof the division of parks and recreation, which shall protect,maintain, and keep them in repair. The division shall have thefollowing powers over all such lands and waters:

(B) To construct and maintain dikes, wharves, landings,docks, dams, and other works;

(C) To construct and maintain roads and drives in,around, upon, and to the lands and watersto make them conveniently accessible and useful to the public;

(D) To Except as otherwise provided in this section, to adopt, amend, and rescind,in accordance with Chapter119. of the Revised Code, rules necessary for the proper managementof state parks, bodies of water, and the lands adjacent tothem under its jurisdiction and control, including the following:

(2) Establishing fees and charges for ~~admission to stateparks and for~~ use of facilities in ~~them~~ state parks;

(4) Governing the application for and rental of,rental fees for, and the use of cabins;

(5) Relating to public use of state park lands, andgoverning the operation of motor vehicles, including speeds, andparking on those lands;

(6) Governing all advertising withinstate parks and the requirements for the operation of places sellingtangible personal property and control of food service sales onlands and waters under the control of the division, which rulesshall establish uniform requirements;

(7) Providing uniform standards relating to the size, type,location, construction, and maintenance of structures and devicesused for fishing or moorage of watercraft, rowboats, sailboats,and powercraft, as those terms are defined in section 1547.01 ofthe Revised Code, over waters under the control of the divisionand establishing reasonable fees for the construction of and annualuse permits for those structures and devices;

(9) Governing the removal and disposition of any watercraft,rowboat, sailboat, or powercraft, as those terms are defined insection 1547.01 of the Revised Code, left unattended for morethan seven days on any lands or waters under the control of thedivision;

(10) Governing the establishment and collection of check collectioncharges for checks that are returned to the division or dishonored for anyreason.

The division shall adopt rules under this section establishing a discount program for all persons who are issued a golden buckeye card under section 173.06 of the Revised Code. The discount program shall provide a discount for all park services and rentals, but shall not provide a discount for the purchase of merchandise.

The division shall not adopt rules establishing fees or charges for parking a motor vehicle in a state park or for admission to a state park.

Every resident of this state with a disability that hasbeen determined by the veterans administration to be permanentlyand totally disabling, who receives a pension or compensationfrom the veterans administration, and who received an honorabledischarge from the armed forces of the United States, and everyveteran to whom the registrar of motor vehicles has issued a setof license plates under section 4503.41 of theRevised Code, shall be exempt from the fees for camping, provided thatthe resident or veteran carries in the state park such evidence ofthe resident's or veteran's disability as the chief of the division ofparks and recreation prescribes by rule.

~~Every~~ Unless otherwise provided by division rule, every resident of this state who is sixty-five years of ageor older or who is permanently and totally disabled and whofurnishes evidence of that age or disability in a mannerprescribed by division rule shall be charged one-half of theregular fee for camping, except on the weekends andholidays designated by the division~~. Such a person~~, andshallnot be charged more than ninety per cent of the regular charges forstate recreational facilities, equipment, services, and food serviceoperations utilized by the person at any time of year,whether maintained or operated by the state or leased for operation by anotherentity.

As used in this section, "food service operations" meansrestaurants that are owned by the department of naturalresources at Hocking Hills, Lake Hope, Malabar Farm, and RockyFork state parks or are part of a state park lodge. "Food service operations" does not include automaticvending machines, concession stands, or snack bars.

As used in this section, "prisoner of war" means anyregularly appointed, enrolled, enlisted, or inducted member ofthe military forces of the United States who was captured,separated, and incarcerated by an enemy of the United States.Any person who has been a prisoner of war, was honorablydischarged from the military forces, and is a resident of thisstate is exempt from the fees for camping. To claim thisexemption, the person shall present written evidence in the formof a record of separation, a letter from one of the militaryforces of the United States, or such other evidence as the chiefprescribes by rule that satisfies the eligibility criteriaestablished by this section.

Sec. 1547.721. As used in sections 1547.721 to 1547.726 of the Revised Code:

(A) "Eligible project" means a project that involves the acquisition, construction, establishment, reconstruction, rehabilitation, renovation, enlargement, improvement, equipping, furnishing, or development of either of the following:

(2) Refuge harbors and other projects for the harboring, mooring, docking, launching, and storing of light draft vessels.

(B) "Marine recreational facilities," "refuge harbors," "light draft vessels," and "allowable costs" have the meanings established in rules adopted under section 1547.723 of the Revised Code.

Sec. 1547.722. There is hereby created in the state treasury the watercraft revolving loan fund consisting of money appropriated or transferred to it, money received and credited to the fund under section 1547.726 of the Revised Code, and any grants, gifts, or contributions of moneys received for deposit to the credit of the fund.

The director of natural resources shall use money in the watercraft revolving loan fund for the purpose of making loans under section 1547.724 of the Revised Code for eligible projects and taking actions under sections 1547.721 to 1547.726 of the Revised Code necessary to fulfill that purpose. The director may establish separate accounts in the fund for particular projects or otherwise. Income from the investment of money in the fund shall be credited to the fund, and, if the director so requires, to particular accounts in the fund.

Sec. 1547.723. (A) The director of natural resources shall adopt rules under Chapter 119. of the Revised Code that the director determines to be necessary for the implementation of the revolving loan program. The rules shall include a definition of what constitutes "allowable costs" of an eligible project for purposes of the program together with a definition of "marine recreational facilities," "refuge harbors," and "light draft vessels," respectively.

(B) The director may delegate any of the director's duties or responsibilities under sections 1547.721 to 1547.726 of the Revised Code to the chief of the division of watercraft.

Sec. 1547.724. (A) With the approval of the controlling board, and subject to the other applicable provisions of sections 1547.721 to 1547.726 of the Revised Code, the director of natural resources may lend moneys in the watercraft revolving loan fund to public or private entities for the purpose of paying the allowable costs of an eligible project. Loans shall be made under this division only if the director determines that all of the following apply:

(2) The borrower is unable to finance the necessary allowable costs through ordinary financial channels upon comparable terms;

(3) The repayment of the loan will be adequately secured by a mortgage, lien, assignment, or pledge at a level of priority as the director may require;

(4) The amount of the loan does not exceed ninety per cent of the total cost of the project.

(B) The determinations of the director under division (A) of this section shall be conclusive for purposes of the validity of a loan commitment evidenced by a loan agreement signed by the director. Further, the director's determinations that a project constitutes an eligible project and that the costs of such a project are allowable costs, together with all other determinations relevant to the project or to an action taken or agreement entered into under sections 1547.721 to 1547.726 of the Revised Code shall be conclusive for purposes of the validity and enforceability of rights of parties arising from actions taken and agreements entered into under those sections.

(C) The director may take any actions necessary or appropriate with respect to a loan made under this section, including facilitating the collection of amounts due on a loan.

Sec. 1547.725. For purposes of the revolving loan program, the director of natural resources may do any of the following:

(A) Establish fees, charges, rates of interest, times of payment of interest and principal, and other terms, conditions, and provisions of and security for loans made from the watercraft revolving loan fund that the director determines to be appropriate and in furtherance of the purpose for which the loans are made;

(B) Retain the services of or employ financial consultants, appraisers, consulting engineers, superintendents, managers, construction and accounting experts, attorneys, and employees, agents, and independent contractors that the director determines to be necessary and fix the compensation for their services;

(C) Receive and accept from any person grants, gifts, contributions of money, property, labor, and other things of value to be held, used, and applied only for the purpose for which such grants, gifts, and contributions are made;

(D) Enter into appropriate agreements with other governmental entities to provide for all of the following:

(1) Payment of allowable costs related to the development of eligible projects for which loans have been made from the watercraft revolving loan fund;

(2) Any governmental action a governmental entity is authorized to take, including undertaking on behalf and at the request of the director any action that the director is authorized to undertake pursuant to sections 1547.721 to 1547.725 of the Revised Code;

All state agencies shall cooperate with and provide assistance to the director as is necessary for the administration of sections 1547.721 to 1547.726 of the Revised Code.

Sec. 1547.726. All money received by the state from the repayment of loans made from the watercraft revolving loan fund, including interest, fees, and charges associated with such loans, shall be deposited to the credit of the watercraft revolving loan fund.

Sec. 1548.06. (A)(1) Application for a certificate of title for awatercraft or outboard motor shall be made upon a form prescribedby the chief of the division of watercraftand shall be sworn tobefore a notary public or other officer empowered to administeroaths. The application shall be filed with the clerk ofanycourt of common pleas.An application for a certificate of titlemay be filedelectronically by any electronic means approved bythe chief inany county with the clerk of the court of commonpleas of thatcounty.The application shall be accompanied bythe feeprescribedinsection 1548.10 of the Revised Code. Thefee shall beretained by the clerk who issues the certificate oftitle andshall be distributed in accordance with that section.If a clerkof a court of common pleas, other than the clerk ofthe court ofcommon pleas of an applicant's county of residence,issues acertificate of title to the applicant, the clerk shalltransmitdata related to the transaction to theautomatedtitleprocessing system.

(2) If a certificate oftitle previously has been issued for thewatercraft or outboardmotor,the application for acertificateof title also shall be accompanied by the certificateof titledulyassigned unless otherwise provided in thischapter. If acertificate of title previously has not beenissued for thewatercraft or outboard motor in this state, theapplication,unless otherwise provided in this chapter, shall beaccompaniedbya manufacturer's or importer's certificate; by aswornstatementof ownership if the watercraft or outboard motorwaspurchased bythe applicant on or beforeOctober 9, 1963,or ifthe watercraftis less than fourteen feet long withapermanently affixedmechanical means of propulsion and waspurchased by the applicanton or beforeJanuary 1,2000;or bya certificate of title, billof sale, orother evidence ofownership required by the law ofanother statefrom which thewatercraft or outboard motor wasbrought intothis state.Evidence of ownership of a watercraft oroutboardmotor forwhich an Ohio certificate of title previouslyhas notbeenissued and which watercraft or outboard motor doesnot havepermanently affixedto it a manufacturer's serialnumbershallbe accompanied by the certificate of assignment of ahullidentification number assigned bythe chief as provided insection1548.07 of the Revised Code.

(3) The clerk shall retain the evidenceof title presented bytheapplicant and on which the certificateof title is issued,except that, if an application for a certificate of title isfiledelectronically, by a vendor on behalf of a purchaser of awatercraft or outboard motor, the clerk shall retain the completedelectronic record to which the vendor converted the certificate oftitle application and other required documents. The chief,after consultation with the attorney general, shall adopt rulesthat govern the location at which, and the manner in which, arestored the actual application and all other documents relating tothe sale of a watercraft or outboard motor when a vendor files theapplication for a certificate of title electronically on behalf ofa purchaser.

(B) Theclerk shall use reasonable diligence inascertainingwhetherthefacts in the application are trueby checking theapplication anddocuments accompanying itor the electronicrecord to which a vendor converted the application andaccompanying documents withthe records ofwatercraft andoutboard motors in the clerk'soffice. Iftheclerk is satisfiedthat theapplicant is the owner of thewatercraft oroutboardmotor andthat the application is in theproper form,the clerkshall issueaphysical certificate oftitle over theclerk'ssignature and sealed withthe clerk'ssealunless the applicantspecifically requests the clerk not toissue a physicalcertificate of title and instead to issue anelectroniccertificate of title. However, if the evidenceindicates and aninvestigationshows that one or more Ohiotitles already existforthe watercraft or outboard motor, thechief may cause theredundant title or titles to becanceled.

(C) In the case of the sale of a watercraft or outboard motorbya vendor to a general purchaser or user, the certificate oftitleshall be obtained in the name of the purchaser by thevendor uponapplication signed by the purchaser. In all othercases, thecertificate shall be obtained by the purchaser. Inall cases oftransfer of watercraft or outboard motors, theapplication forcertificate of title shall be filed within thirtydays after thelater of the date of purchase or assignment ofownership of thewatercraft or outboard motor. If theapplication for certificateof title is not filed within thirtydays after the later of thedate of purchase or assignment ofownership of the watercraft oroutboard motor, the clerk shallcharge a late penalty fee of fivedollars in addition to the feeprescribed by section 1548.10 ofthe Revised Code. The clerkshall retain the entire amount ofeach late penalty fee.

(D) The clerk shall refuse to accept an application forcertificate of title unless the applicant either tenders with theapplication payment of all taxes levied by or pursuant to Chapter5739. or 5741. of the Revised Codebased on the applicant's countyof residence less, in the case of a saleby a vendor, anydiscountto which the vendor is entitled undersection 5739.12of theRevised Code, or submits any of thefollowing:

~~(A)~~(1) A receipt issued by the tax commissioner or a clerk ofcourts showing payment of the tax;

~~(B)~~(2) A copy of the unit certificate of exemption completedbythe purchaser at the time of sale as provided in section5739.03of the Revised Code;

~~(C)~~(3) An exemption certificate, in a form prescribed by thetax commissioner, that specifies why the purchase is not subjectto the tax imposed by Chapter 5739. or 5741. of the Revised Code.

Payment of the tax shall be in accordance with rules issuedby the tax commissioner, and the clerk shall issue a receipt inthe form prescribed by the tax commissioner to any applicant whotenders payment of the tax with the application forthecertificateof title.

(E)(1) For receiving and disbursing the taxes paid to the clerkby aresident of the clerk's county,theclerk may retain a poundagefee of oneand one one-hundredth per cent of the taxescollected,which shall be paidinto thecertificate of title administrationfund created by section 325.33of the Revised Code.The clerkshall not retain a poundage feefrom payments of taxes by personswho do not reside in theclerk's county.

(2) A clerk, however, may retain from the taxes paid to theclerkan amount equal to the poundage fees associated withcertificatesof title issued by other clerks of courts of commonpleas toapplicants who reside in the first clerk's county. Thechief ofthe division of watercraft, in consultation with the taxcommissioner and the clerks of the courts of common pleas, shalldevelop a report from the automated title processing system thatinforms each clerk of the amount of the poundage fees that theclerk is permitted to retain from those taxes because ofcertificates of title issued by the clerks of other counties toapplicants who reside in the first clerk's county.

(F) In the case of casual sales of watercraft or outboardmotorsthat are subject to the tax imposed by Chapter 5739. or5741. ofthe Revised Code, the purchase price for the purpose ofdetermining the tax shall be the purchase price on an affidavitexecuted and filed with the clerk by the vendor on a form to beprescribed by the chief, whichshall be prima-facie evidence ofthe price for the determinationof the tax. In addition to theinformation required by section1548.08 of the Revised Code, eachcertificate of title shallcontain in bold lettering thefollowingnotification andstatements:"WARNING TO TRANSFERORANDTRANSFEREE(SELLER ANDBUYER). Youare required by law tostatethe trueselling price. A false statement is aviolationofsection2921.13 of the Revised Code and is punishable by sixmonthsimprisonment or a fine of up to one thousand dollars, orboth.Alltransfers are audited by the department of taxation.Thesellerand buyer must provide any information requested bythedepartmentoftaxation. The buyer may be assessed anyadditionaltax foundto be due."

The clerk shall forward all payments of taxes, lesspoundagefees, to the treasurer of state in a manner to beprescribed bythe tax commissioner and shall furnishinformation to thecommissioner as the commissioner may require. (G) Each county clerk of courts shall forward to the treasurer of state all sales and use tax collections resulting from sales of titled watercraft and outboard motors during a calendar week on or before the Friday following the close of that week. If, on any Friday, the offices of the clerk of courts or the state are not open for business, the tax shall be forwarded to the treasurer of state on or before the next day on which the offices are open. Every remittance of tax under this division shall be accompanied by a remittance report in such form as the tax commissioner prescribes. Upon receipt of a tax remittance and remittance report, the treasurer of state shall date stamp the report and forward it to the tax commissioner. If the tax due for any week is not remitted by a clerk of courts as required under this division, the clerk shall forfeit the poundage fees for the sales made during that week. The treasurer of state may require the clerks of courts to transmit tax collections and remittance reports electronically.

(H) For purposesof atransfer of a certificate of title, if the clerk is satisfied thatasecured party has discharged a lien but has not canceled thelien notationwitha clerk, the clerkmay cancelthe liennotation on theautomated title processingsystem and notify theclerk of the county oforigin.

(I) Every clerk shall have the capability to transact byelectronic means all procedures and transactions relating to theissuance of watercraft or outboard motor certificates of titlethat are described in the Revised Code as being accomplished byelectronic means.

(A) Whenever the context requires it, "division" or"division of securities" may be read as "director of commerce" oras "commissioner of securities."

(B) "Security" means any certificate or instrument, or any oral, written, or electronic agreement, understanding, or opportunity, thatrepresents title to or interest in, or is secured by any lien orcharge upon, the capital, assets, profits, property, or credit ofany person or of any public or governmental body, subdivision, oragency. It includes shares of stock, certificates for shares ofstock, an uncertificated security, membership interests in limited liability companies,voting-trust certificates, warrants and options to purchasesecurities, subscription rights, interim receipts, interimcertificates, promissory notes, all forms of commercial paper,evidences of indebtedness, bonds, debentures, land trustcertificates, fee certificates, leasehold certificates, syndicatecertificates, endowment certificates, interests in or under profit-sharing or participationagreements, interests in or under oil, gas, or mining leases, preorganization or reorganizationsubscriptions,preorganization certificates, reorganizationcertificates, interests in any trust orpretendedtrust, any investment contract, any life settlementinterest, anyinstrument evidencing a promise or an agreement topay money,warehouse receipts for intoxicating liquor, and the currency ofanygovernment other than those of the United States and Canada,butsections 1707.01 to 1707.45 of the Revised Code do not applytothe sale of real estate.

(C)(1) "Sale" has the full meaning of "sale" as applied byor accepted in courts of law or equity, and includes everydisposition, or attempt to dispose, of a security or of aninterest in a security. "Sale" also includes a contract to sell,an exchange, an attempt to sell, an option of sale, asolicitationof a sale, a solicitation of an offer to buy, asubscription, oran offer to sell, directly or indirectly, byagent, circular,pamphlet, advertisement, or otherwise.

(3) The use of advertisements, circulars, or pamphlets inconnection with the sale of securities in this state exclusivelyto the purchasers specified in division (D) of section 1707.03 ofthe Revised Code is not a sale when the advertisements,circulars,and pamphlets describing and offering those securitiesbear areadily legible legend in substance as follows: "Thisoffer ismade on behalf of dealers licensed under sections1707.01 to1707.45 of the Revised Code, and is confined in thisstateexclusively to institutional investors and licenseddealers."

(4) The offering of securities by any person inconjunctionwith a licensed dealer by use of advertisement,circular, orpamphlet is not a sale if that person does nototherwise attemptto sell securities in this state.

(5) Any security given with, or as a bonus on account of,any purchase of securities is conclusively presumed to constitutea part of the subject of that purchase and has been "sold."

(6) "Sale" by an owner, pledgee, or mortgagee, or by aperson acting in a representative capacity, includes sale onbehalf of such party by an agent, including a licensed dealer orsalesperson.

(D) "Person," except as otherwise provided in thischapter,means a natural person, firm, partnership,limited partnership,partnership association, syndicate,joint-stock company,unincorporated association, trust or trusteeexcept where thetrust was created or the trustee designated bylaw or judicialauthority or by a will, and a corporation orlimited liabilitycompany organized under the laws of any state,any foreigngovernment, or any political subdivision of a stateor foreigngovernment.

(E)(1) "Dealer," except as otherwise provided in thischapter, means every person, other than a salesperson,who engagesor professes to engage, in this state, for either all or part ofthe person's time, directly or indirectly, either in the businessof the sale of securities for the person's own account, or in thebusinessof the purchase or sale of securities for the account ofothers in thereasonable expectation of receiving a commission,fee, or otherremuneration as a result of engaging in the purchaseand sale ofsecurities. "Dealer" does not mean any of thefollowing:

(a) Any issuer, including any officer, director, employee,or trustee of, or member or manager of, or partner in, or anygeneral partner of, anyissuer, that sells, offers for sale, ordoes any act infurtherance of the sale of a security thatrepresents an economicinterest in that issuer, provided nocommission, fee, or othersimilar remuneration is paid to orreceived by the issuer for thesale;

(b) Any licensed attorney, public accountant, or firm ofsuch attorneys or accountants, whose activities are incidental tothe practice of the attorney's, accountant's, or firm'sprofession;

(c) Any person that, for the account of others, engages inthe purchase or sale of securities that are issued andoutstandingbefore such purchase and sale, if a majority or moreof the equityinterest of an issuer is sold in that transaction,and if, in thecase of a corporation, the securities sold in thattransactionrepresent a majority or more of the voting power ofthecorporation in the election of directors;

(d) Any person that brings an issuer together with apotential investor and whose compensation is not directly orindirectly based on the sale of any securities by the issuer tothe investor;

(f) Any person that the division of securities by ruleexempts from the definition of "dealer" under division (E)(1) ofthis section.

(F)(1) "Salesman" or "salesperson" means every naturalperson,other than a dealer, who is employed, authorized, orappointed by a dealer tosell securities within this state.

(2) The general partners of a partnership, and theexecutiveofficers of a corporation or unincorporatedassociation, licensedas a dealer are not salespersonswithin the meaning of thisdefinition, nor are such clerical or otheremployees of an issueror dealer as are employed for work towhich the sale of securitiesis secondary and incidental; but thedivision of securities mayrequire a license from any suchpartner, executive officer, oremployee if it determines thatprotection of the publicnecessitates the licensing.

(G) "Issuer" means every person who has issued, proposestoissue, or issues any security.

(H) "Director" means each director or trustee of acorporation, each trustee of a trust, each general partner of apartnership, except a partnership association, each manager of apartnership association, and any person vested with managerial ordirectory power over an issuer not having a board of directors ortrustees.

(I) "Incorporator" means any incorporator of a corporationand any organizer of, or any person participating, other than inarepresentative or professional capacity, in the organization ofanunincorporated issuer.

(J) "Fraud," "fraudulent," "fraudulent acts," "fraudulentpractices," or"fraudulent transactions" means anything recognizedon or afterJuly 22, 1929, as such in courts of law or equity; anydevice,scheme, or artifice to defraud or to obtain money orproperty bymeans of any false pretense, representation, orpromise; anyfictitious or pretended purchase or sale ofsecurities; and anyact, practice, transaction, or course ofbusiness relating to thepurchase or sale of securities that isfraudulent or that has operatedorwould operate as a fraud uponthe seller or purchaser.

(K) Except as otherwise specifically provided, wheneveranyclassification or computation is based upon "par value," asapplied to securities without par value, the average of theaggregate consideration received or to be received by the issuerfor each class of those securities shall be used as the basis forthat classification or computation.

(L)(1) "Intangible property" means patents, copyrights,secret processes, formulas, services, good will, promotion andorganization fees and expenses, trademarks, trade brands, tradenames, licenses, franchises, any other assets treated asintangible according to generally accepted accounting principles,and securities, accounts receivable, or contract rights having noreadily determinable value.

(2) "Tangible property" means all property other thanintangible property and includes securities, accounts receivable,and contract rights, when the securities, accounts receivable, orcontract rights have a readily determinable value.

(M) "Public utilities" means those utilities defined insections 4905.02, 4905.03, 4907.02, and 4907.03 of the RevisedCode; in the case of a foreign corporation, it means thoseutilities defined as public utilities by the laws of itsdomicile;and in the case of any other foreign issuer, it meansthoseutilities defined as public utilities by the laws of thesitus ofits principal place of business. The term alwaysincludesrailroads whether or not they are so defined as publicutilities.

(N) "State" means any state of the United States, anyterritory or possession of the United States, the District ofColumbia, and any province of Canada.

(O) "Bank" means any bank, trust company, savings and loanassociation, savings bank, or credit union that isincorporated ororganizedunder the laws of the United States, any state of theUnitedStates, Canada, or any province of Canada and that issubject toregulation or supervision by that country, state, orprovince.

(P) "Include," when used in a definition, does not excludeother things or persons otherwise within the meaning of the termdefined.

(Q)(1) "Registration by description" means that therequirements of section 1707.08 of the Revised Code have beencomplied with.

(2) "Registration by qualification" means that therequirements of sections 1707.09 and 1707.11 of the Revised Codehave been complied with.

(3) "Registration by coordination" means that there hasbeencompliance with section 1707.091 of the Revised Code.Reference inthis chapter to registration by qualification alsoshall be deemedto include registration by coordination unlessthe contextotherwise indicates.

(R) "Intoxicating liquor" includes all liquids andcompoundsthat contain more than three and two-tenths per cent ofalcohol byweight and are fit for use for beverage purposes.

(S) "Institutional investor" means any corporation, bank,insurance company, pension fund or pension fund trust, employees'profit-sharing fund or employees' profit-sharing trust, anyassociation engaged, as a substantial part of its business oroperations, in purchasing or holding securities, or any trust inrespect of which a bank is trustee or cotrustee. "Institutionalinvestor" does not include any business entity formed for theprimary purpose of evading sections 1707.01 to 1707.45 of theRevised Code.

(T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C.77a,"Securities Exchange Act of 1934," 48 Stat. 881,15 U.S.C. 78a,"Internal Revenue Code of1986," 100 Stat. 2085, 26 U.S.C. 1,"Investment AdvisersAct of 1940," 54 Stat. 847, 15 U.S.C. 80b,and"Investment Company Act of 1940," 54 Stat.789, 15 U.S.C. 80amean the federalstatutes of those names as amended before orafter March 18, 1999.

(U) "Securities and exchange commission" means thesecurities and exchange commission established by the SecuritiesExchange Act of 1934.

(V)(1) "Control bid" means the purchase of or offer topurchase any equity security of a subject company from a residentof this state if either of the following applies:

(a) After the purchase of that security, the offeror wouldbe directly or indirectly the beneficial owner of more than tenper cent of any class of the issued and outstanding equitysecurities of the issuer.

(b) The offeror is the subject company, there is a pendingcontrol bid by a person other than the issuer, and the number ofthe issued and outstanding shares of the subject company would bereduced by more than ten per cent.

(2) For purposes of division (V)(1) of this section,"control bid" does not include any of the following:

(a) A bid made by a dealer for the dealer's own account intheordinary course of business of buying and selling securities;

(b) An offer to acquire any equity security solely inexchange for any other security, or the acquisition of any equitysecurity pursuant to an offer, for the sole account of theofferor, in good faith and not for the purpose of avoiding theprovisions of this chapter, and not involving any public offeringof the other security within the meaning of Section 4 of Title Iof the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2),as amended;

(c) Any other offer to acquire any equity security, or theacquisition of any equity security pursuant to an offer, for thesole account of the offeror, from not more than fifty persons, ingood faith and not for the purpose of avoiding the provisions ofthis chapter.

(W) "Offeror" means a person who makes, or in any wayparticipates or aids in making, a control bid and includespersonsacting jointly or in concert, or who intend to exercisejointly orin concert any voting rights attached to thesecurities for whichthe control bid is made and also includesany subject companymaking a control bid for its own securities.

(X)(1) "Investment adviser" means any personwho, forcompensation, engages in the business of advisingothers, eitherdirectly or through publications or writings, asto the value ofsecurities or as to the advisability of investingin, purchasing,or selling securities, or who, for compensationand as a part ofregular business, issues or promulgates analysesor reportsconcerning securities.

(a) Any attorney, accountant, engineer, or teacher, whoseperformance ofinvestment advisory services described in division(X)(1) of thissection is solely incidental to the practice of theattorney's,accountant's, engineer's, or teacher's profession;

(b) A publisher of any bona fidenewspaper, news magazine,or business or financial publication ofgeneral and regularcirculation;

(d) A bank holding company, as defined in the "BankHoldingCompany Act of 1956," 70 Stat.133, 12 U.S.C. 1841, that is not aninvestmentcompany;

(f) Any licensed dealer or licensed salesperson whoseperformanceof investment advisory services described in division(X)(1) of thissection is solely incidental to the conduct of thedealer's or salesperson'sbusiness as a licensed dealer orlicensed salesperson and who receives nospecial compensation forthe services;

(g) Any person, the advice, analyses, or reports of which donotrelate to securities other than securities that are directobligations of, orobligations guaranteed as to principal orinterest by, the UnitedStates, or securities issued or guaranteedby corporations in whichthe United States has a direct orindirect interest, andthat have been designated by the secretaryof the treasury as exemptsecurities as defined in the "SecuritiesExchangeAct of 1934," 48 Stat. 881, 15 U.S.C. 78c;

(h) Any person that is excluded from the definition ofinvestment adviser pursuant to section202(a)(11)(A) to (E) of the"Investment Advisers Act of 1940," 15 U.S.C.80b-2(a)(11), or thathas received anorder from the securities and exchange commissionunder section202(a)(11)(F) of the "Investment Advisers Act of1940," 15 U.S.C.80b-2(a)(11)(F), declaring that the person is notwithin the intent of section202(a)(11) of the Investment AdvisersAct of 1940.

(i) A person who acts solely as a state retirement system investment officer or as a bureau of workers' compensation chief investment officer;

(j) Any other person that the division designates by rule,if thedivision finds that the designation is necessary orappropriate in the publicinterest or for the protection ofinvestors or clients and consistent with thepurposes fairlyintended by the policy and provisions of this chapter.

(a) Its principal place of business or its principalexecutive office is located in this state, or it owns or controlsassets located within this state that have a fair market value ofat least one million dollars.

(b) More than ten per cent of its beneficial or recordequity security holders are resident in this state, more than tenper cent of its equity securities are owned beneficially or ofrecord by residents in this state, or more than one thousand ofits beneficial or record equity security holders are resident inthis state.

(2) The division of securities may adopt rules toestablishmore specific application of the provisions set forthin division(Y)(1) of this section. Notwithstanding theprovisions set forthin division (Y)(1) of this section and anyrules adopted underthis division, the division, by rule or in anadjudicatoryproceeding, may make a determination that an issuerdoes notconstitute a "subject company" under division (Y)(1) ofthissection if appropriate review of control bids involving theissueris to be made by any regulatory authority of anotherjurisdiction.

(Z) "Beneficial owner" includes any person who directly orindirectly through any contract, arrangement, understanding, orrelationship has or shares, or otherwise has or shares, the powerto vote or direct the voting of a security or the power todisposeof, or direct the disposition of, the security. "Beneficialownership" includes the right, exercisable withinsixty days, toacquire any security through the exercise of anyoption, warrant,or right, the conversion of any convertiblesecurity, orotherwise. Any security subject to any such option,warrant,right, or conversion privilege held by any person shallbe deemedto be outstanding for the purpose of computing thepercentage ofoutstanding securities of the class owned by thatperson, butshall not be deemed to be outstanding for the purposeof computingthe percentage of the class owned by any otherperson. A personshall be deemed the beneficial owner of anysecurity beneficiallyowned by any relative or spouse or relativeof the spouse residingin the home of that person, any trust orestate in which thatperson owns ten per cent or more of thetotal beneficial interestor serves as trustee or executor, anycorporation or entity inwhich that person owns ten per cent ormore of the equity, and anyaffiliate or associate of thatperson.

(AA) "Offeree" means the beneficial or record owner of anysecurity that an offeror acquires or offers to acquire inconnection with a control bid.

(BB) "Equity security" means any share or similarsecurity,or any security convertible into any such security, orcarryingany warrant or right to subscribe to or purchase anysuchsecurity, or any such warrant or right, or any othersecuritythat, for the protection of security holders, is treatedas anequity security pursuant to rules of the division ofsecurities.

(CC)(1) "Investment adviser representative" means asupervisedperson of an investment adviser, provided thatthesupervisedperson has more than five clients who arenaturalpersons otherthan excepted persons defined in division(EE)ofthis section,and that more than ten per cent of thesupervisedperson's clientsare natural persons other than excepted personsdefined indivision(EE) of this section. "Investment adviserrepresentative" does not mean any of the following:

(a) A supervised person that does not on a regular basissolicit,meet with, or otherwise communicate with clients of theinvestment adviser;

(b) A supervised person that provides only investmentadvisoryservices described in division (X)(1) of this section bymeans ofwritten materials or oral statements that do not purportto meet theobjectives or needs of specific individuals oraccounts;

(c) Any other person that the division designatesby rule,if the division finds that the designation is necessaryorappropriate in the public interest or for the protection ofinvestors or clients and is consistent with the provisionsfairlyintended by the policy and provisions of thischapter.

(2) For the purpose of the calculation of clients indivision(CC)(1) of this section, anatural person and thefollowing persons are deemed a singleclient: Any minor child ofthe natural person; any relative,spouse, or relative of thespouse of the natural person who hasthe same principal residenceas the natural person; all accountsof which the natural person orthe persons referred to indivision(CC)(2) of thissectionarethe only primary beneficiaries; and all trusts ofwhich thenatural person or persons referred to in division(CC)(2) ofthissection are theonly primary beneficiaries. Persons who arenotresidents of theUnited Statesneed not be included in thecalculation of clientsunder division(CC)(1) of this section.

(3) If subsequent to March 18, 1999, amendments are enactedor adopted defining "investment adviser representative" forpurposes of theInvestmentAdvisers Act of 1940 or additionalrulesor regulations are promulgated by the securities andexchangecommission regarding the definition of "investmentadviserrepresentative" for purposes of theInvestment AdvisersAct of 1940, the division ofsecurities shall, by rule, adopt thesubstance of theamendments, rules, or regulations, unless thedivision findsthat the amendments, rules, or regulations are notnecessary forthe protection of investors or in the publicinterest.

(1) A partner, officer, or director of an investmentadviser, or otherperson occupying a similar status or performingsimilar functions with respectto an investment adviser;

(3) A person who provides investment advisory servicesdescribed indivision (X)(1) of this section on behalf of theinvestment adviserand is subject to the supervision and controlof the investment adviser.

(EE) "Excepted person" means a natural person to whomany ofthe following applies:

(1) Immediately after entering into the investment advisorycontract withthe investment adviser, the person has at leastseven hundred fifty thousanddollarsunder the management of theinvestment adviser.

(2) The investment adviser reasonably believes either of thefollowing atthe time the investment advisory contract is enteredinto with the person:

(a) The person has a networth, together with assets heldjointly with a spouse, of more than onemillion five hundredthousand dollars.

(b) The person is a qualified purchaser asdefined indivision (FF) of this section.

(3) Immediately prior to entering into an investmentadvisory contract with the investment adviser, the person iseither of the following:

(a) An executive officer, director,trustee, generalpartner, or person serving in a similarcapacity, of theinvestment adviser;

(b) An employee of the investmentadviser, other than anemployee performing solely clerical,secretarial, oradministrative functions or duties for theinvestment adviser,which employee, in connection with theemployee's regularfunctions or duties, participates in theinvestment activities ofthe investment adviser, provided that,for at least twelve months,the employee has been performingsuch nonclerical, nonsecretarial,or nonadministrative functionsor duties for or on behalf of theinvestment adviser orperforming substantially similar functionsor duties for or onbehalf of another company.

If subsequent to March 18, 1999,amendments are enacted oradopted defining "excepted person" forpurposes of the InvestmentAdvisers Act of 1940 or additional rulesor regulations arepromulgated by the securities and exchangecommission regardingthe definition of "excepted person" forpurposes of the InvestmentAdvisersAct of 1940, the division ofsecurities shall, by rule,adopt the substance of theamendments, rules, or regulations,unless the division findsthat the amendments, rules, orregulations are not necessary forthe protection of investors orin the public interest.

(a) A natural person who ownsnot less than five milliondollars in investments as defined byrule by the division ofsecurities;

(b) A natural person, acting forthe person's own account oraccounts of other qualifiedpurchasers, who in the aggregate ownsand invests on adiscretionary basis, not less than twenty-fivemillion dollarsin investments as defined by rule by the divisionofsecurities.

(2) If subsequent to March 18, 1999, amendments areenactedor adopted defining "qualified purchaser" for purposes of theInvestment Advisers Act of 1940 or additional rulesor regulationsare promulgated by the securities and exchangecommissionregarding the definition of "qualified purchaser" forpurposes ofthe Investment Advisers Act of 1940, the division ofsecuritiesshall, by rule, adopt the amendments, rules, orregulations,unless the division finds that the amendments,rules, orregulations are not necessary for the protection ofinvestors orin the public interest.

(GG)(1) "Purchase" has the full meaning of "purchase" asappliedby or accepted in courts of law or equity and includesevery acquisition of,or attempt to acquire, a security or aninterest in a security. "Purchase"also includes a contract topurchase, an exchange, an attempt to purchase, anoption topurchase, a solicitation of a purchase, asolicitation of an offerto sell, a subscription, or an offer to purchase,directly orindirectly, by agent, circular, pamphlet, advertisement, orotherwise.

(3) Any security given with, or as a bonus on account of,any purchase ofsecurities is conclusively presumed to constitutea part of the subject ofthat purchase.

(HH) "Life settlement interest" means the entireinterest orany fractional interest in an insurance policy orcertificate ofinsurance, or in an insurance benefit under such apolicy orcertificate,that is the subject of a life settlementcontract.

For purposes of this division, "life settlement contract"means anagreement for the purchase, sale, assignment, transfer,devise, orbequest of any portion of the death benefit orownership of any lifeinsurance policy or contract, in return forconsideration or any otherthing of value that is less than theexpected death benefit of thelife insurance policy or contract."Life settlement contract"includes a viatical settlement contractas defined in section3916.01 of the Revised Code, but does notinclude any of thefollowing:

(1) A loan by an insurer under the terms of a life insurancepolicy, including, but not limited to, a loan secured by the cashvalue ofthe policy;

(2) An agreement with a bank that takes an assignment of alifeinsurance policy as collateral for a loan;

(3) The provision of accelerated benefits as defined insection3915.21 of the Revised Code;

(5) An agreement by an individual to purchase an existinglifeinsurance policy or contract from the original owner of thepolicyor contract, if the individual does not enter into morethan onelife settlement contract per calendar year;

(6) The initial purchase of an insurance policy orcertificate ofinsurance from its owner by a viatical settlementprovider, as definedin section 3916.01 of the Revised Code, thatislicensed underChapter 3916. of the RevisedCode.

(II) "State retirement system" means the public employees retirement system, Ohio police and fire pension fund, state teachers retirement system, school employees retirement system, and state highway patrol retirement system.

(JJ) "State retirement system investment officer" means an individual employed by a state retirement system as a chief investment officer, assistant investment officer, or the person in charge of a class of assets or in a position that is substantially equivalent to chief investment officer, assistant investment officer, or person in charge of a class of assets.

(KK) "Bureau of workers' compensation chief investment officer" means an individual employed by the bureau of workers' compensation as a chief investment officer in a position that is substantially equivalent to a chief investment officer.

Sec. 1707.164. (A) No person shall act as a bureau of workers' compensation chief investment officer unless the person is licensed as a bureau of workers' compensation chief investment officer by the division of securities.

(B) No bureau of workers' compensation chief investment officer shall act as a dealer, salesperson, investment advisor, or investment advisor representative.

Sec. 1707.165. (A) Application for a bureau of workers' compensation chief investment officer's license shall be made in accordance with this section by filing with the division of securities the information, materials, and forms specified in rules adopted by the division.

(B) The division may investigate any applicant for a license and may require any additional information as it considers necessary to determine the applicant's business repute and qualifications to act as a chief investment officer. If the application for a bureau of workers' compensation chief investment officer's license involves investigation outside of this state, the applicant may be required by the division to advance sufficient funds to pay any of the actual expenses of the investigation. The division shall furnish the applicant with an itemized statement of the expenses the applicant is required to pay.

(C) The division shall by rule require an applicant for a bureau of workers' compensation chief investment officer's license to pass an examination designated by the division or achieve a specified professional designation unless the applicant meets both of the following requirements:

(1) Acts as a bureau of workers' compensation chief investment officer on the effective date of this section;

(D) If the division finds that the applicant is of good business repute, appears to be qualified to act as a bureau of workers' compensation chief investment officer, and has complied with this chapter and rules adopted by the division under this chapter, the division, upon receipt of the fees prescribed by division (B) of section 1707.17 of the Revised Code, shall issue to the applicant a license authorizing the applicant to act as a bureau of workers' compensation chief investment officer.

Sec. 1707.17. (A)(1) The license of every dealer in andsalesperson of securities shall expire on the thirty-first day ofDecember of each year, and may be renewed upon the filing with thedivisionof securities of an application for renewal, and thepayment ofthe fee prescribed in this section. Thedivisionshallgive notice, without unreasonable delay, of itsaction onanyapplication for renewal of a dealer's orsalesperson's license.

(2) The license of every investment adviser andinvestmentadviser representative licensed under section1707.141 or 1707.161of the Revised Code shallexpire on the thirty-first day ofDecember of each year. The licenses may be renewed upon thefiling with the division ofan application for renewal, and thepayment of thefee prescribed in division (B) of this section.Thedivision shall give notice, without unreasonable delay, of itsaction on any application for renewal.

(3) An investment adviser required to make a notice filingunder division (B) of section 1707.141 of theRevised Codeannually shall file with the divisionthe notice filing and thefee prescribed in division (B)of this section, no later than thethirty-first day ofDecember of each year.

(4) The license of every state retirement system investment officer licensed under section 1707.163 of the Revised Code and the license of a bureau of workers' compensation chief investment officer issued under section 1707.165 of the Revised Code shall expire on the thirtieth day of June of each year. The licenses may be renewed on the filing with the division of an application for renewal, and the payment of the fee prescribed in division (B) of this section. The division shall give notice, without unreasonable delay, of its action on any application for renewal.

(B)(1) The fee for each dealer's license, and for eachannualrenewal thereof, shall be onehundred dollars.

(2) The fee for each salesperson's license,and for eachannualrenewal thereof, shall be fifty dollars.

(3) The fee for each investment adviser's license, andforeach annual renewal thereof, shall befifty dollars.

(4) The fee for each investment adviser notice filingrequiredby division (B) of section 1707.141 of the RevisedCodeshall befifty dollars.

(5) The fee for each investment adviser representative'slicense, and for each annual renewal thereof, shallbethirty-fivedollars.

(6) The fee for each state retirement system investment officer's license, and for each annual renewal thereof, shall be fifty dollars.

(7) The fee for a bureau of workers' compensation chief investment officer's license, and for each annual renewal thereof, shall be fifty dollars.

(C) A dealer's, salesperson's, investment adviser's, investmentadviser representative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license may be issued at anytime forthe remainder of the calendar year. In that event, theannualfee shall not be reduced.

Sec. 1707.19. (A) An original license, or a renewalthereof,applied for by a dealer or salesperson of securities,orby an investment adviser, investment adviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officer,may berefused, and any such license granted may be suspended and,afternotice and hearing in accordance with Chapter 119. oftheRevised Code, maybe revoked, by the divisionof securities, ifthe division determines that theapplicant orthe licensed dealer,salesperson, investment adviser, investment adviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officer:

(4) Hasknowingly violated any provision ofsections1707.01 to 1707.45 of the Revised Code, or anyregulationor ordermade thereunder;

(5) Has knowingly made a false statementof a material factor an omission of a material fact in anapplication for a license,in adescription or application thathas been filed, or in anystatement made to the division undersuch sections;

(6) Has refused to comply with any lawful order orrequirement of the division under section 1707.23 of the RevisedCode;

(7) Has been guilty of any fraudulent act in connectionwiththe sale of any securities or in connection with acting as aninvestment adviser, investment adviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer;

(8) Conducts business in purchasing or selling securitiesatsuch variations from the existing market as in the light ofallthe circumstances are unconscionable;

(9) Conducts business in violation of such rules andregulations as the division prescribes for the protection ofinvestors, clients, or prospective clients;

(10)(a) Has failed to furnish to the division anyinformationwith respect to thepurchases or sales of securitieswithin thisstate that maybe reasonably requested by the divisionas pertinent to theprotection of investors in this state.

(b) Has failed to furnish to the division anyinformationwith respect to acting as an investment adviser, investmentadviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer within this statethat may be reasonablyrequested by the division.

(B) For the protection of investors the division mayprescribereasonable rules defining fraudulent, evasive,deceptive, orgrossly unfair practices or devices in the purchaseor sale ofsecurities.

(C) For the protection of investors, clients, orprospectiveclients, the division may prescribe reasonable rulesregarding theacts and practices of an investment adviser or aninvestmentadviser representative.

(D) Pending any investigation or hearing provided for insections 1707.01 to 1707.45 of the Revised Code, thedivision mayorder the suspension of any dealer's,salesperson's, investmentadviser's, investment adviserrepresentative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer'slicense bynotifying the party concerned of such suspension andthe cause forit. If it is a salesperson whose licenseissuspended, thedivision shall also notify the dealer employingthe salesperson.If it is an investment adviser representativewhose license issuspended, the division also shall notify the investmentadviserwith whom the investment adviser representative is employed orassociated. If it is a state retirement system investment officer whose license is suspended, the division shall also notify the state retirement system with whom the state retirement system investment officer is employed. If it is a bureau of workers' compensation chief investment officer whose license is suspended, the division shall also notify the bureau of workers' compensation.

(E)(1) The suspension or revocation of the dealer's licensesuspends the licenses of all thedealer's salespersons.

(2) The suspension or revocation of the investmentadviser'slicense suspends the licenses of all the investment adviser'sinvestment adviser representatives. The suspension orrevocationof an investment adviser's registration undersection 203 of the"Investment Advisers Actof 1940," 15 U.S.C.80b-3, suspends thelicenses of all the investmentadviser's investment adviserrepresentatives.

(F) It is sufficient cause for refusal, revocation, orsuspension of the license in case of a partnership, partnershipassociation, corporation, or unincorporated association if anygeneral partner of the partnership, manager ofthe partnershipassociation, or executive officer of the corporation orunincorporated association is not of good business repute or hasbeen guilty of any act or omission which would be cause forrefusing or revoking the license of an individual dealer,salesperson, investment adviser, or investmentadviserrepresentative.

Sec. 1707.20. (A) The division of securities may adopt,amend, and rescind such rules, forms, and orders as are necessaryto carry out sections 1707.01 to 1707.45 of the Revised Code,including rules and forms governing registration statements,applications, and reports, and defining any terms, whether or notused in sections 1707.01 to 1707.45 of the Revised Code, insofaras the definitions are not inconsistent with thesesections. Forthe purpose of rules and forms, the division mayclassifysecurities, persons, and matters within itsjurisdiction, andprescribe different requirements for differentclasses.

(B) No rule, form, or order may be made, amended, orrescinded unless the division finds that the actionis necessaryor appropriate in the public interest or for theprotection ofinvestors, clients, prospective clients, or state retirement systems, or the workers' compensation system andconsistent with thepurposes fairlyintended by the policy and provisions of sections1707.01 to1707.45 of the Revised Code. In prescribing rules andforms andin otherwise administering sections 1707.01 to 1707.45of theRevised Code, the division may cooperate with thesecurities administrators of the other states and the securitiesand exchange commission with a view of effectuating the policy ofthis section to achieve maximum uniformity in the form andcontentof registration statements, applications, reports, andoverallsecurities regulation wherever practicable.

(1) The form and content of financial statements requiredunder sections 1707.01 to 1707.45 of the Revised Code;

(2) The circumstances under which consolidated financialstatements shall be filed;

(3) Whether any required financial statements shall becertified by independent or certified public accountants. Allfinancial statements shall be prepared in accordance withgenerally accepted accounting practices.

(D) All rules and forms of the divisionshall be published;and in addition to fulfilling therequirements of Chapter119. ofthe Revised Code,the division shall prescribe, and shall publishand makeavailable its rules regarding the sale of securities, theadministration of sections 1707.01 to 1707.45 of the RevisedCode,and the procedure and practice before the division.

(E) No provision of sections 1707.01 to 1707.45 of theRevised Code imposing any liability applies to any act done oromitted in good faith in conformity with any rule, form, or orderof the division of securities, notwithstanding that the rule,form, or order may later be amended or rescinded or be determinedby judicial or other authority to be invalid for any reason,except that the issuance of an order granting effectiveness to aregistration under section 1707.09 or 1707.091 of the RevisedCodefor the purposes of this division shall not be deemed anorderother than as the establishment of the fact ofregistration.

Sec. 1707.22. Whenever a dealer's,salesperson's, investment adviser's, investment adviserrepresentative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license has been refused,suspended, or revoked, or a renewal thereof has been denied, by the divisionof securities, or whenever the division has refused to qualify securities orhas suspended or revoked the registration of any particular security bydescription or by qualification, or the right to buy, sell, or deal in anyparticular security whether it is registered or qualified or exempt, orwhether the transactions in it are registered or exempt, the aggrieved partymay appeal in accordance with Chapter 119. of the Revised Code.

An order sustaining the refusal of the division to grant or renew adealer's,salesperson's, investment adviser's, investment adviser representative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license or to grant qualification ofsecurities, or an order sustainingthe division in suspending or revoking a dealer's,salesperson's, investment adviser's, investment adviserrepresentative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license, theregistration of any particular security by description or by qualification, orthe right to buy, sell, or deal in any particular security, shall not bar,after ten days from the order, a new registration bydescription, or a newapplication of the plaintiff for such a license or qualification or for awithdrawal of a revocation or suspension; nor shall an order in favor ofthe plaintiff prevent the division, after proper notice and hearing, fromthereafter revoking or suspending such license, registration, or right to buy,sell, or deal in a particular security, for any proper cause which may, afterthe order, accrue or be discovered.

Sec. 1707.23. Whenever it appears to the division ofsecurities, from its files, upon complaint, or otherwise, thatanyperson has engaged in, is engaged in, or is about to engagein anypractice declared to be illegal or prohibited by this chapter orrules adopted under this chapter by thedivision, or defined asfraudulent in this chapter or rulesadopted under this chapterby the division, or any otherdeceptive scheme or practice inconnectionwith the sale of securities, or acting as a dealer, a salesperson, an investmentadviser,investment adviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer or when the divisionbelieves itto be in the best interests of the public andnecessary for theprotection of investors, the division may do anyof the following:

(A) Require any person to file with it, on such forms asitprescribes, an original or additional statement or report inwriting, under oath or otherwise, as to any facts orcircumstancesconcerning the issuance, sale, or offer for sale ofsecuritieswithin this state by the person,as to the person's acts orpractices as a dealer, a salesperson, an investment adviser, investmentadviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officer within this state, and as to otherinformation asit deems material or relevant thereto;

(B) Examine any investment adviser, investment adviserrepresentative, state retirement system investment officer, bureau of workers' compensation chief investment officer, oranyseller, dealer, salesperson, or issuer ofanysecurities, and any of their agents, employees, partners,officers, directors, members, or shareholders, wherever located,under oath; and examine and produce records, books, documents, accounts,andpapers as the division deems material or relevant to theinquiry;

(C) Require the attendance of witnesses, and theproductionof books, records, and papers, as are requiredeither by thedivision or by any party to a hearing before thedivision, and forthat purpose issue a subpoena for any witness,or a subpoena ducestecum to compel the production of any books,records, or papers.The subpoena shall be served bypersonal service or by certifiedmail, return receipt requested. If the subpoena is returnedbecause of inability to deliver, or if no return is receivedwithin thirty days of the date of mailing, the subpoena may beserved by ordinary mail. If no return of ordinary mail isreceived within thirty days after the date of mailing, serviceshall be deemed to have been made. If the subpoena is returnedbecause of inability to deliver, the division may designate aperson or persons to effect either personal or residence serviceupon the witness. The person designated to effect personal orresidenceservice under this division may be the sheriff of thecountyin which the witness resides or may be found or any otherdulydesignated person. The fees and mileage of the personservingthe subpoena shall be the same as those allowed by thecourts ofcommon pleas in criminal cases, and shall be paid fromthe fundsof the division. Fees and mileage for the witness shallbe thesame as those allowed for witnesses by the courts of commonpleasin criminal cases, and shall be paid from the funds of thedivision upon request of the witness following the hearing.

(D) Initiate criminal proceedings under section 1707.042or1707.44 of the Revised Code or rules adopted under those sectionsby thedivision by laying before the prosecutingattorney of theproper county any evidence of criminality whichcomes to itsknowledge; and in the event of the neglect orrefusal of theprosecuting attorney to prosecute such violations,or at therequest of the prosecuting attorney, the division shallsubmit theevidence to the attorney general, who mayproceed intheprosecution with all the rights, privileges, and powersconferredby law on prosecuting attorneys, including the power toappearbefore grand juries and to interrogate witnesses beforesuch grandjuries.

(E) Require any dealersimmediately to furnish tothedivisioncopies of prospectuses, circulars, or advertisementsrespectingsecurities that they publish or generallydistribute,or requireany investment advisers immediatelyto furnish to thedivisioncopies of brochures, advertisements,publications,analyses,reports, or other writings that theypublish ordistribute;

(F) Require any dealers to mail to the division, prior tosale, notices of intention to sell, in respect to all securitieswhich are not exempt under section 1707.02 of the Revised Code,orwhich are sold in transactions not exempt under section1707.03 or1707.04 of the Revised Code;

(G) Issue and cause to be served by certified mail uponallpersons affected an order requiring the person or persons toceaseand desist from the acts or practices appearing to thedivision toconstitute violations of this chapter or rules adopted underthis chapter by thedivision. The order shall state specificallythesection or sections of thischapter or the rule orrulesadopted under this chapter by the division thatappear to thedivision to have been violated andthe facts constituting theviolation. If after the issuance ofthe order it appears to thedivision that anyperson or persons affected by the order haveengaged in any actor practice from which the person or personsshall have beenrequired, by the order, to cease and desist, thedirector ofcommerce may apply to the court of common pleas of anycountyfor, and upon proof of the validity of the order of thedivision,the delivery of the order to the person or personsaffected, and of the illegality and the continuation of the actsor practices that are the subject of the order, the court maygrant an injunction implementing the order of the division.

(H) Issue and initiate contempt proceedings in this stateregardingsubpoenas and subpoenas duces tecum at the request ofthesecurities administrator of another state, if it appears tothedivision that the activities for which the information issoughtwould violate this chapter ifthe activities had occurredin this state.

(I) The remedies provided by this section are cumulative and concurrent with any other remedy provided in this chapter, and the exercise of one remedy does not preclude or require the exercise of any other remedy.

Sec. 1707.25. In case any person fails to file anystatement or report required by sections1707.01 to 1707.45 of the Revised Code,to obey any subpoena the issuanceof which is provided for in those sections, or to producebooks, records, or papers, give testimony, or answer questions, asrequired by those sections, the director of commerce mayapply toa court of common pleas of any county for, and upon proof of suchfailure the court may grant, an injunctionrestraining theacting as an investment adviser, investment adviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer, orthe issuance, sale, or offer for sale of any securities by theperson or by its agents, employees, partners, officers,directors, or shareholders, until such failure has been remediedand other relief as the facts may warrant has been had. Such injunctive relief is available in addition to the otherremedies provided for in sections 1707.01 to1707.45 of the Revised Code.

Where the person refusing to comply with such order ofcourt is an issuer of securities, the court may enjoin the saleby any dealer of any securities of the issuer, and thedivisionof securities may revoke the qualification of the securities ofthe issuer, or suspend or revoke the sale of any securitiesof the issuer which have been registered by description, andsuch securities shall not thereafter be sold by any dealer untilthe order of the court or of the division is withdrawn.

Sec. 1707.261. (A) If a court of common pleas grants an injunction pursuant to section 1707.26 of the Revised Code, after consultation with the attorney general the director of commerce may request that court to order the defendant or defendants that are subject to the injunction to make restitution or rescission to any purchaser or holder of securities damaged by the defendant's or defendants' violation of any provision of sections 1707.01 to 1707.45 of the Revised Code.

(B) If the court of common pleas is satisfied with the sufficiency of the director's request for restitution or rescission under division (A) of this section and with the sufficiency of the proof of a substantial violation of any provision of sections 1707.01 to 1707.45 of the Revised Code, or of the use of any act, practice, or transaction declared to be illegal or prohibited or defined as fraudulent by those sections or rules adopted under those sections by the division of securities, to the material prejudice of a purchaser or holder of securities, the court may order the defendant or defendants subject to the injunction to make restitution or rescission to any purchaser or holder of securities damaged by the defendant's or defendants' violation of sections 1707.01 to 1707.45 of the Revised Code.

(C) A court order granting restitution or rescission based upon a request made pursuant to division (A) of this section shall meet the requirements of division (B) of this section and may not be based solely upon a final order issued by the division of securities pursuant to Chapter 119. of the Revised Code or upon an action to enforce a final order issued by the division pursuant to that chapter. Notwithstanding the foregoing provision, a request for restitution or rescission pursuant to division (A) of this section may concern the same acts, practices, or transactions that were, or may later be, the subject of a division of securities action for a violation of any provision of sections 1707.01 to 1707.45 of the Revised Code. If a request for restitution or rescission pursuant to division (A) of this section concerns the same acts, practices, or transactions that were the subject of a final order issued by the division of securities pursuant to Chapter 119. of the Revised Code, the court shall review the request in accordance with division (B) of this section, and the standard of review in section 119.12 of the Revised Code shall not apply to the request.

(D) No purchaser or holder of securities who is entitled to restitution or rescission under this section shall recover, pursuant to this section or any other proceeding, a total amount in excess of the person's purchase price for the securities sold in violation of sections 1707.01 to 1707.45 of the Revised Code.

(E)(1) If a court of common pleas grants an injunction pursuant to section 1707.26 of the Revised Code against any state retirement system investment officer, after consultation with the attorney general, the director of commerce may request that court to order the state retirement system investment officer or officers that are subject to the injunction to make restitution to the state retirement system damaged by the state retirement system investment officer's or officers' violation of any provision of sections 1707.01 to 1707.45 of the Revised Code.

(2) If the court of common pleas is satisfied with the sufficiency of the director's request for restitution under division (E)(1) of this section and with the sufficiency of the proof of a substantial violation of any provision of sections 1707.01 to 1707.45 of the Revised Code, or of the use of any act, practice, or transaction declared to be illegal or prohibited or defined as fraudulent by those sections or rules adopted under those sections by the division of securities, to the material prejudice of a state retirement system, the court may order the state retirement system investment officer or officers subject to the injunction to make restitution to the state retirement system damaged by the state retirement system investment officer's or officers' violation of sections 1707.01 to 1707.45 of the Revised Code. A request for restitution pursuant to division (E)(1) of this section may concern the same acts, practices, or transactions that were, or may later be, the subject of a division of securities action for a violation of any provision of section 1707.01 to 1707.45 of the Revised Code.

(F)(1) If a court of common pleas grants an injunction pursuant to section 1707.26 of the Revised Code against a bureau of workers' compensation chief investment officer, after consultation with the attorney general, the director of commerce may request that court to order the bureau of workers' compensation chief investment officer who is subject to the injunction to make restitution to the bureau of workers' compensation damaged by the bureau of workers' compensation chief investment officer's violation of any provision of sections 1707.01 to 1707.45 of the Revised Code.

(2) If the court of common pleas is satisfied with the sufficiency of the director's request for restitution under division (F)(1) of this section and with the sufficiency of the proof of a substantial violation of any provision of sections 1707.01 to 1707.45 of the Revised Code, or of the use of any act, practice, or transaction declared to be illegal or prohibited or defined as fraudulent by those sections or rules adopted under those sections by the division of securities, to the material prejudice of the bureau of workers' compensation, the court may order the bureau of workers' compensation chief investment officer subject to the injunction to make restitution to the bureau of workers' compensation damaged by the bureau of workers' compensation chief investment officer's violation of sections 1707.01 to 1707.45 of the Revised Code. A request for restitution pursuant to division (F)(1) of this section may concern the same acts, practices, or transactions that were, or may later be, the subject of a division of securities action for a violation of any provision of section 1707.01 to 1707.45 of the Revised Code.

Sec. 1707.431. For purposes of this section, the followingpersons shall not be deemed to have effected, participated in, oraided the seller in any way in making, a sale or contract of salein violation of sections 1707.01 to 1707.45 of the Revised Code:

(A) Any attorney, accountant, or engineer whoseperformance is incidental to the practice of the person'sprofession;

(B) Any person, other than an investment adviser, investmentadviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer, who brings any issuer together with anypotential investor, without receiving, directly or indirectly, acommission, fee, or other remuneration based on the sale of anysecurities by the issuer to theinvestor. Remunerationreceived by the person solely for the purpose of offsettingthereasonable out-of-pocket costs incurred by the person shall notbe deemed a commission, fee, or other remuneration.

Any person claiming exemption under this division for apublicly advertised meeting shall file a notice with the divisionof securities indicating an intent to cause or hold such ameeting at least twenty-one days prior to the meeting. Thedivision may, upon receipt of such notice, issue an order denyingthe availability of an exemption under this division not morethan fourteen days after receipt of the notice based on afinding that the applicant is not entitled to the exemption. Notwithstanding the notice described in this section, a failureto file the notice does not create a presumption that apersonwas participating in or aiding in the making of a sale orcontract of sale in violation of this chapter.

Sec. 1707.44. (A)(1) No person shall engage in any act orpractice thatviolates division (A), (B), or (C) of section1707.14 of the RevisedCode, and no salesperson shall sellsecurities in this state withoutbeing licensed pursuant tosection 1707.16 of the Revised Code.

(2) No person shall engage in any act or practice thatviolatesdivision (A) of section 1707.141 or section 1707.161 ofthe Revised Code.

(3) No person shall engage in any act or practice that violates section 1707.162 of the Revised Code.

(4) No person shall engage in any act or practice that violates section 1707.164 of the Revised Code.

(B) No person shall knowingly make or cause to be made anyfalse representation concerning a material and relevant fact, inany oral statement or in any prospectus, circular, description,application, or written statement, for any of the followingpurposes:

(1)Registering securities or transactions, orexemptingsecurities or transactions from registration, under thischapter;

(3) Procuring the licensing of any dealer,salesperson,investment adviser, investment adviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officerunderthis chapter;

(5) Advising for compensation, as to the value of securitiesor as to theadvisability of investing in, purchasing, or sellingsecurities;

(6) Submitting a notice filing to the division underdivision (X) of section 1707.03 or section1707.092 or 1707.141 ofthe Revised Code.

(C) No person shall knowingly sell,causeto be sold, offerfor sale, or cause to be offered forsale, anysecurity whichcomes under any of the followingdescriptions:

(1) Is not exempt under section 1707.02 of the RevisedCode,nor the subject matter of one of the transactions exemptedinsection 1707.03, 1707.04, or1707.34 of the Revised Code,has notbeen registered by coordination orqualification,and is not thesubject matter of a transactionthat has beenregistered bydescription;

(2) The prescribed fees for registering by description, bycoordination, or by qualification have not been paid in respecttosuch security;

(3)The person has been notified by the division, or hasknowledge of the notice, that the right to buy, sell, ordeal insuch security has been suspended or revoked, or that theregistration by description, by coordination, or by qualificationunder which it may be sold has been suspended or revoked;

(4) The offer or sale is accompanied by a statement thatthesecurity offered or sold has been or is to be in any mannerindorsed by the division.

(D) No person who is an officer, director, or trustee of,ora dealer for, any issuer, and who knows such issuer to beinsolvent in that the liabilities of the issuer exceed itsassets,shall sell any securities of or for any such issuer,withoutdisclosing the fact of the insolvency to thepurchaser.

(E) No person with intent to aid in the sale of anysecurities on behalf of the issuer, shall knowingly make anyrepresentation not authorized by such issuer or at materialvariance with statements and documents filed with the division bysuch issuer.

(F) No person, with intent to deceive, shall sell, causetobe sold, offer for sale, or cause to be offered for sale, anysecurities of an insolvent issuer, with knowledge that suchissueris insolvent in that the liabilities of the issuerexceeditsassets, taken at their fair market value.

(G) No person in purchasing or selling securities shallknowinglyengage in any act or practice that is, in this chapter,declaredillegal, defined as fraudulent, or prohibited.

(H) No licensed dealer shall refuse to buy from, sell to,ortrade with any person because the person appears on ablacklistissued by, or is being boycotted by, any foreigncorporate orgovernmental entity, nor sell any securities of orfor any issuerwho is known in relation to the issuance or saleofthesecurities to have engaged in such practices.

(I) No dealer in securities, knowing that the dealer'sliabilities exceed the reasonable value of the dealer'sassets,shall accept money or securities, except in payment of or assecurityfor an existing debt, from a customer who is ignorant ofthe dealer's insolvency, and thereby cause the customerto loseany part of the customer's securities or the valueof thosesecurities, by doingeither of the following without thecustomer's consent:

(1) Pledging, selling, or otherwise disposing of suchsecurities, when the dealer has no lien on or anyspecial propertyin such securities;

(2) Pledging such securities for more than the amount due,or otherwise disposing of such securities for the dealer'sownbenefit,when the dealer has a lien or indebtedness on suchsecurities.

It is an affirmative defense to a charge under thisdivisionthat, at the time the securities involved were pledged,sold, ordisposed of, the dealer had in the dealer'spossessionor control,and available for delivery, securities of the samekinds and inamounts sufficient to satisfy all customers entitledto thesecurities, upon demand and tender of any amountdue on thesecurities.

(J) No person, with purpose to deceive, shall make, issue,publish, or cause to be made, issued, or published any statementor advertisement as to the value of securities, or as to allegedfacts affecting the value of securities, or as to the financialcondition of any issuer of securities, when the person knowsthatsuch statement or advertisement is false in any materialrespect.

(K) No person, with purpose to deceive, shall make,record,or publish or cause to be made, recorded, or published, areportof any transaction in securities which is false in anymaterialrespect.

(L) No dealer shall engage in any act that violates theprovisions of section15(c) or 15(g) of the"Securities ExchangeAct of 1934," 48 Stat. 881, 15U.S.C.A. 78o(c) or (g), or any ruleor regulation promulgated by thesecurities and exchangecommission thereunder. If, subsequent toOctober 11, 1994,additional amendments to section 15(c) or 15(g) are adopted, oradditionalrules or regulations are promulgated pursuant to suchsections, the divisionof securities shall, by rule, adopt theamendments, rules, or regulations,unless the division finds thatthe amendments, rules, or regulations are notnecessary for theprotection of investors or in the public interest.

(M)(1) No investment adviser or investment adviserrepresentative shall do any of the following:

(b) Engage in any act, practice, or course of businessthatoperates or would operate as a fraud or deceit upon anyperson;

(c) In acting as principal for the investment adviser's orinvestment adviser representative's own account, knowingly sellany security to or purchase any security from a client, or inacting as salesperson for a person other than such client,knowingly effect any sale or purchase of any security for theaccount of such client, without disclosing to the client inwriting before the completion of the transaction the capacity inwhich the investment adviser or investment adviserrepresentativeis acting and obtaining the consent of the clientto thetransaction. Division (M)(1)(c)of this section does not apply toany investment adviserregistered with the securities and exchangecommission undersection 203 of the"Investment Advisers Act of1940," 15 U.S.C. 80b-3, or toany transaction with a customerof alicensed dealer or salesperson if the licensed dealer orsalesperson is not acting as an investment adviser or investmentadviser representative in relation to the transaction.

(d) Engage in any act, practice, orcourse of business thatis fraudulent, deceptive, ormanipulative. The division ofsecurities may adopt rulesreasonably designed to prevent suchacts, practices, or coursesof businessthat are fraudulent,deceptive, or manipulative.

(2) No investment adviser or investment adviserrepresentative licensed or required to be licensed under thischapter shall take or have custody of any securities or funds ofany person, except as provided in rules adopted by the division.

(3) In the solicitation of clients or prospective clients,noperson shall make any untrue statement of a material fact oromit to state a material fact necessary in order to make thestatements made not misleading in light of the circumstancesunderwhich the statements were made.

(N) No person knowingly shall influence, coerce, manipulate,or mislead any person engaged in the preparation, compilation,review, or audit of financial statements to be used in thepurchase or sale of securities for the purpose of rendering thefinancial statements materially misleading.

(O) No state retirement system investment officer shall do any of the following:

(1) Employ any device, scheme, or artifice to defraud any state retirement system;

(2) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit on any state retirement system;

(3) Engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative. The division of securities may adopt rules reasonably designed to prevent such acts, practices, or courses of business as are fraudulent, deceptive, or manipulative;

(4) Knowingly fail to comply with any policy adopted regarding the officer established pursuant to section 145.094, 742.104, 3307.043, 3309.043, or ~~5505.066~~ 5505.065 of the Revised Code.

(P) No bureau of workers' compensation chief investment officer shall do any of the following:

(1) Employ any device, scheme, or artifice to defraud the workers' compensation system;

(2) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit on the workers' compensation system;

(4) Knowingly fail to comply with any policy adopted regarding the officer established pursuant to section 4123.441 of the Revised Code.

Sec. 1707.46. The principal executive officer of the division of securitiesshall be the commissioner of securities, who shall be appointed by thedirector of commerce. The commissioner of securities shall enforce all thelaws and administrative rules enacted or adopted to regulate the saleof bonds, stocks,and other securities and to prevent fraud in such sales. The commissioner also shall enforce all the laws and administrative rulesenacted or adopted to regulate investment advisers, investment adviserrepresentatives, ~~and~~ state retirement system investment officers, and the bureau of workers' compensation chief investment officer and to prevent fraud in their acts, practices, andtransactions.

The commissioner shall be paid at a rate not less than pay range 47 set out inschedule E-2 of section 124.152 of the Revised Code, to be paid as otheroperating expenses of the division.

(A) Study any subject pertaining to amusement ride safety, includingadministrative, engineering, and technical subjects, and make findings andrecommendations to the director of agriculture;

(B) Prior to the ~~promulgation~~ adoption of any rules or amendments to those rules underdivision (B) of section 1711.53 and division (B) of section 1711.551 of theRevised Code, study the proposed rules to be ~~promulgated~~ adopted by the directorregarding amusement ride safety, advise the director, and make findings andrecommendations to the director;

(C) Not later than December 31, 2006, prepare and submit a report to the governor, the speaker and the minority leader of the house of representatives, the president and the minority leader of the senate, and the director concerning the advisory council's recommendations for alternative funding sources for the amusement ride safety program established under this chapter.

The director shall make available to the advisory councilany information,reports, and studies requested by the advisory council.

Sec. 1711.53. (A)(1) No person shall operate an amusementride within the state without a permit issued by the director ofagriculture under division (A)(2) of this section. The owner ofan amusement ride, whether the ride is a temporary amusement rideor a permanent amusement ride, who desires to operate theamusement ride within the state shall, prior to the operation ofthe amusement ride and annually thereafter, submit to thedepartment of agriculture an application for a permit, togetherwith the appropriate permit and inspection fee, on a form to befurnished by the department. Prior to issuing any permit thedepartment shall, within thirty days after the date on which itreceives the application, inspect each amusement ride describedinthe application.The owner of an amusement ride shall have theamusement ride ready for inspection not later than two hours afterthe time that is requested by the person for the inspection.

(2) For each amusement ride found to comply with the rulesadopted by the director under division (B) of thissection anddivision (B) of section 1711.551 of the Revised Code,thedirectorshall issue an annual permit, provided that evidenceofliabilityinsurance coverage for the amusement ride as requiredby section1711.54 of the Revised Code is on file with thedepartment.

(3) The director shall issue with each permit a decalindicating that the amusement ride has been issued the permit.Theowner of the amusement ride shall affix the decal on the rideat alocation where the decal is easily visible to the patrons oftheride. A copy of the permit shall be kept on file at the sameaddress as the location of the amusement ride identified on thepermit, and shall be made available for inspection, uponreasonable demand, by any person. An owner may operate anamusement ride prior to obtaining a permit, provided thattheoperation is for the purpose of testing the amusement ride ortraining amusement ride operators and other employees of theownerand the amusement ride is not open to the public.

(B) The director, in accordance with Chapter 119. of theRevised Code, shall adopt rules providing for a schedule offines,with no fine exceeding five thousand dollars, forviolations ofsections 1711.50 to 1711.57 of the Revised Code orany rulesadopted under this division and for theclassificationof amusement rides and rules for the safeoperationand inspectionof all amusement rides as are necessaryforamusement ride safetyand for the protection of the generalpublic. Rules adopted bythe director for the safe operation andinspection of amusementrides shall be reasonable and based upongenerally acceptedengineering standards and practices. Inadopting rules under thissection, the director may adopt byreference, in whole or in part,the national fire code or thenational electrical code (NEC) prepared bythe national fire protectionassociation, the standards of the American society for testing and materials (ASTM) orthe American nationalstandards institute (ANSI), or any otherprinciples, tests, or standardsof nationally recognized technicalor scientific authorities.Insofar as is practicable andconsistent with sections 1711.50 to1711.57 of the Revised Code,rules adopted under this divisionshall be consistent with therules of other states. Thedepartment shall cause sections1711.50 to 1711.57 of the RevisedCode and the rules adopted inaccordance with this division anddivision (B) of section 1711.551of the Revised Code to bepublished in pamphlet form and a copy tobe furnished withoutcharge to each owner of an amusement ride whoholds a currentpermit or is an applicant therefor.

(C) With respect to an application for a permit for anamusement ride, an owner may apply to the directorfor a waiver or modification of any rule adopted under division(B) of this section if there are practical difficulties orunnecessary hardships for the amusement ride to comply withtherules. Any applicationshall set forth the reasons fortherequest. The director, with the approval of the advisorycouncilon amusement ride safety, may waive or modify theapplicationofarule to any amusement ride if the public safetyis secure. Anyauthorization by the director under this divisionshall be inwriting and shall set forth the conditions under whichthe waiveror modification is authorized, and the department shallretainseparate records of all proceedings under this division.

(D)(1) The director shall employ and provide for trainingofa chief inspector and additional inspectors and employees asmaybe necessary to administer and enforce sections 1711.50 to1711.57of the Revised Code. The director may appoint orcontract withother persons to perform inspections of amusementrides, providedthat the persons meet the qualifications forinspectorsestablished by rules adopted under division (B) ofthis sectionand are not owners, or employees of owners, of anyamusement ridesubject to inspection under sections 1711.50 to1711.57 of theRevised Code. No person shall inspect anamusement ride who,within six months prior to the date ofinspection, was an employeeof the owner of the ride.

(2) Before the director contracts with other persons toinspect amusement rides, the director shall seek the advice oftheadvisory council on amusement ride safety on whethertocontractwiththose persons.The advice shall not be bindinguponthedirector. After having received the advice of thecouncil,thedirector may proceed to contract withinspectors inaccordancewith the procedures specified indivision (E)(2) of section1711.11 of theRevised Code.

(3) With the advice and consent of the advisory councilonamusement ride safety, the director may employ a specialconsultant to conduct an independent investigation of anamusementride accident. This consultant need not be in thecivil serviceof the state, but shall have qualifications toconduct theinvestigation acceptable to the council.

(E)(1) Except as otherwise provided in division (E)(1)of this section, the department shall chargethefollowing amusementridefees:

The go kart inspection fee is in addition to the inspectionfee for the go kart track.

The fees for an expedited inspection, failure to cancel ascheduled inspection, and failure to have an amusement ride readyfor inspection do not apply to go karts.

As used in division (E)(1) of this section, "expeditedinspection" means an inspection of an amusement ride by thedepartment not later than ten days after the owner of theamusement ride files an application for a permit under thissection.

(2) All fees andfines collected by the department under sections 1711.50 to1711.57 of the Revised Code shall be deposited in the statetreasury to the credit of the amusement ride inspection fund,which is hereby created, and shall be used only for the purposeofadministering and enforcing sections 1711.11 and 1711.50 to1711.57 of the Revised Code.

(3)The owner of an amusement ride shall be required to pay areinspection fee only if the reinspection was conducted at theowner's request under division (F) of this section, if thereinspection is required by division (F) of this section becauseof an accident, or if the reinspection is required by division(F)of section 1711.55 of the Revised Code. If a reinspection isconducted at the request of the chief officer of a fair,festival,or event where the ride is operating, the reinspectionfee shallbe charged to the fair, festival, or event.

(4)The rules adopted under division (B) of this sectionshalldefine "kiddie rides," "rollercoaster," "aeriallifts,""go karts," and "other rides" forpurposes of determining thefeesunder division(E) ofthis section. The rules shall define "other rides" to include gokart tracks.

(F) A reinspection of an amusement ride shall take placeifan accident occurs, if the owner of the ride or the chiefofficerof the fair, festival, or event where the ride isoperatingrequests a reinspection, or if the reinspection isrequired bydivision (F) of section 1711.55 of the Revised Code.

(G) As a supplement to its annual inspection of atemporaryamusement ride, the department may inspect the rideduring eachscheduled event, as listed in the schedule of eventsprovided tothe department by the owner pursuant to division (C)of section1711.55 of the Revised Code, at which the ride isoperated in thisstate. These supplemental inspections are inaddition to anyother inspection or reinspection of the ride asmay be requiredunder sections 1711.50 to 1711.57 of the RevisedCode, and theowner of the temporary amusement ride is notrequired to pay aninspection or reinspection fee for thissupplemental inspection.Nothing in this division shall beconstrued to prohibit the ownerof a temporary amusement ridehaving a valid permit to operate inthis state from operating theride at a scheduled event before thedepartment conducts asupplemental inspection.

(H) The departmentmay annually conduct a midseasonoperational inspection of every amusement ride upon which itconducts an annual inspection pursuant to division (A) of thissection. The midseason operational inspection is in addition toany other inspection or reinspection of the amusement ride as maybe required pursuant to sections 1711.50 to 1711.57 of theRevisedCode. The owner of an amusement ride shall submit to thedepartment, at the time determined by the department, themidseason operational inspection fee specified in division (E) ofthis section. The director, in accordance with Chapter 119. ofthe Revised Code, shall adopt rules specifying the time periodduring which the departmentwill conduct midseasonoperationalinspections.

Sec. 1711.531. (A) No person shall operate an amusement ride powered from an electric light company source unless the amusement ride operates through a fusible switch, enclosed circuit breaker, or panelboard that has been:

(B) An amusement ride owner shall not use an electric light company source as described in division (A) of this section unless the owner has written certification that the fusible switch, enclosed circuit breaker, or panelboard satisfies the requirements established in divisions (A)(1) to (3) of this section and that is issued by a person certified under section 3783.03 or licensed under section 4740.06 of the Revised Code. The owner shall make the certificate available to the director of agriculture upon request.

(D) A person licensed pursuant to section 4740.06 of the Revised Code, when conducting an inspection pursuant to this section, is not violating section 3783.06 of the Revised Code.

(E) As used in this section, "electric light company" has the same meaning as in section 4905.03 of the Revised Code.

Sec. 1713.03. The Ohio board of regents shall establishstandards for certificates of authorization to be issued toinstitutions as defined in section 1713.01 of the Revised Code, toprivate institutions exempt from regulation under Chapter 3332. ofthe Revised Code as prescribed insection 3333.046 of the RevisedCode,and to schools holdingcertificates of registration issuedby thestate board ofcareercolleges and schools pursuant todivision (C) ofsection 3332.05of theRevised Code. Acertificate ofauthorization may permit aninstitution or schoolto award one ormore types of degrees.

The standards for a certificate of authorization mayinclude,for various types of institutions, schools, or degrees,minimumqualifications for faculty, library, laboratories, andotherfacilities as adopted and published by the Ohio board ofregents.The standards shall be adopted by the board pursuant toChapter119. of the Revised Code.

An institution or school shall apply to the board for acertificate of authorization on forms containing such informationas is prescribed by the board. Each institution or school with acertificate of authorization shall file an annual report with theboard in such form and containing such information as the boardprescribes.

The board shall adopt a rule under Chapter 119. of the Revised Code establishing fees to pay the cost of reviewing an application for a certificate of authorization, which the institution or school shall pay when it applies for a certificate of authorization, and establishing fees, which an institution or school shall pay, for any further reviews the board determines necessary upon examining an institution's or school's annual report.

Sec. 1751.03. (A) Eachapplication for a certificate of authority under this chaptershall be verified by an officer or authorized representative ofthe applicant, shall be in a format prescribed by thesuperintendent of insurance, and shall set forth or beaccompanied by the following:

(1) A certified copy of the applicant's articles ofincorporation and all amendments to the articles ofincorporation;

(2) A copy of any regulations adopted for the governmentof the corporation, any bylaws, and any similar documents, and acopy of all amendments to these regulations, bylaws, anddocuments. The corporate secretary shall certify that theseregulations, bylaws, documents, and amendments have beenproperly adopted or approved.

(3) A list of the names, addresses, and officialpositions of the persons responsible for the conduct of theapplicant, including all members of the board, the principalofficers, and the person responsible for completing or filingfinancial statements with the department of insurance,accompanied by a completed original biographical affidavit andrelease of information for each of these persons on formsacceptable to the department;

(4) A full and complete disclosure of the extent andnature of any contractual or other financial arrangement betweenthe applicant and any provider or a person listed in division(A)(3) of this section,including, but not limited to, a full and complete disclosure ofthe financial interest held by any such provider or person inany health care facility, provider, or insurer that has enteredinto a financial relationship with the health insuringcorporation;

(5) A description of the applicant, its facilities, andits personnel, including, but not limited to, the location,hours of operation, and telephone numbers of all contractedfacilities;

(6) The applicant's projected annual enrollee populationover a three-year period;

(7) A clear and specific description of the health careplan or plans to be used by the applicant, including adescription of the proposed providers, procedures for accessingcare, and the form of all proposed and existing contractsrelating to the administration, delivery, or financing of healthcare services;

(8) A copy of each type of evidence of coverage andidentification card or similar document to be issued tosubscribers;

(9) A copy of each type of individual or group policy,contract, or agreement to be used;

(10) The schedule of the proposed contractual periodicprepayments or premium rates, or both, accompanied by appropriate supportingdata;

(11) A financial plan which provides a three-yearprojection of operating results, including the projectedexpenses, income, and sources of working capital;

(12) The enrollee complaint procedure to be utilized asrequired under section 1751.19 of theRevisedCode;

(13) A description of the procedures and programs to be implemented on anongoing basis to assure the quality of health care services delivered toenrollees, including, if applicable, a description of a qualityassurance programcomplying with the requirements ofsections 1751.73 to 1751.75 of the Revised Code;

(14) A statement describing the geographic area or areasto be served, by county;

(16) A balance sheet and other financial statementsshowing the applicant's assets, liabilities, income, and othersources of financial support;

(17) A description of the nature and extent of anyreinsurance program to be implemented, and a demonstration thaterrors and omission insurance and, if appropriate, fidelityinsurance, will be in place upon the applicant's receipt of acertificate of authority;

(18) Copies of all proposed or in force related-party orintercompany agreements with an explanation of the financialimpact of these agreements on the applicant. If the applicantintends to enter into a contract for managerial oradministrative services, with either an affiliated or an unaffiliated person,the applicant shall provide a copy of the contract and a detailed descriptionof the person toprovide these services. The description shall include that person'sexperience in managing or administering health care plans, acopy of that person's most recent audited financial statement,and a completed biographical affidavit on a form acceptable tothe superintendent for each of that person's principal officersand board members and for any additional employee to be directlyinvolved in providing managerial or administrative services tothe health insuring corporation. If the person to providemanagerial or administrative services is affiliated with thehealth insuring corporation, the contract must provide forpayment for services based on actual costs.

(19) A statement from the applicant's board that theadmitted assets of the applicant have not been and will not bepledged or hypothecated;

(20) A statement from the applicant's board that theapplicant will submit monthly financial statements during thefirst year of operations;

(21) The name and address of the applicant'sOhio statutory agent forservice of process, notice, or demand;

(23) The location of those books and records of theapplicant that must be maintained, which books and records shall bemaintained in Ohio if the applicant is a domestic corporation, andwhich maybe maintained either in the applicant's state of domicile or inOhio if the applicant is aforeign corporation;

(24) The applicant's federal identification number,corporate address, and mailing address;

(27) If the applicant has a parent company, the parentcompany's guaranty, on a form acceptable to the superintendent,that the applicant will maintainOhio's minimum net worth. Ifno parent company exists, a statement regarding the availabilityof future funds if needed.

(29) If the applicant is a foreign corporation, a copy of themost recent financial statements filed with the insuranceregulatory agency in the applicant's state of domicile;

(30) If the applicant is a foreign corporation, a statementfrom the insurance regulatory agency of the applicant's state ofdomicile stating that the regulatory agency has no objection tothe applicant applying for an Ohio license and that theapplicant is in good standing in the applicant's state ofdomicile;

(32) Documentation acceptable to the superintendent of the bond or securities required by section 1751.271 of the Revised Code.

(B)(1) A health insuringcorporation, unless otherwise provided for in this chapteror in section 3901.321 of theRevisedCode,shall file a timely notice with the superintendent describingany change to the corporation's articles of incorporation orregulations, or any major modification to its operations as setout in the information required by division(A) of this section thataffects any of the following:

(b) The health insuringcorporation's continued provision of services that it hascontracted to provide;

(2) If the change or modification is to be the result of an actionto be taken by the health insuring corporation, the notice shallbe filed with the superintendent prior to the health insuring corporationtakingthe action. The action shall be deemed approved if thesuperintendent does not disapprove it within sixty days offiling.

(3) The filing of a notice pursuant to division(B)(1) or (2) of this sectionshall also serve as the submission of a notice when required forthe superintendent's review for purposes of section 3901.341 ofthe RevisedCode, if the notice containsall of the informationthat section 3901.341 of theRevisedCode requires for suchsubmissions and a copy of any written agreement. The filing of such a notice,for the purpose of satisfying thisdivision and section 3901.341 of theRevisedCode, shall be subject to thesixty-day review period of division(B)(2) of this section.

(C)(1) No healthinsuring corporation shall expand its approved service areauntil a copy of the request for expansion, accompanied bydocumentation of the network of providers,forms of all proposed or existing provider contractsrelating to the delivery of health care services, a schedule ofproposed contractual periodic prepayments and premium rates forgroup contracts accompanied by appropriate supportingdata, enrollmentprojections, plan of operation, and any other changes have beenfiled with the superintendent.

(2) Within ten calendar days after receipt of a completefiling under division (C)(1) ofthis section, the superintendent shall refer the appropriatejurisdictional issues to the director of health if required pursuant tosection 1751.04 of the RevisedCode.

(3) Within seventy-five days after the superintendent's receiptof a complete filing under division(C)(1) of this section, thesuperintendent shall determine whether the plan for expansion islawful, fair, and reasonable. ~~The~~ If a referral is required pursuant to section 1751.04 of the Revised Code, the superintendent may not make adetermination until the superintendent has received thedirector's certification of compliance, which the director shallfurnish within forty-five days after the referral under division(C)(2) of this section. Thedirector shall not certify that the requirements of section1751.04 of the RevisedCode are not met, unless theapplicant has been given an opportunity for a hearing asprovided in division (D) ofsection 1751.04 of the RevisedCode. The forty-five-day andseventy-five-day review periods provided for in division(C)(3) of this section shallcease to run as of the date on which the notice of theapplicant's right to request a hearing is mailed and shallremain suspended until the director issues a finalcertification.

(4) If the superintendent has not approved or disapprovedall or a portion of a service area expansion within theseventy-five-day period provided for in division(C)(3) of this section, thefiling shall be deemed approved.

(5) Disapproval of all or a portion of the filing shallbe effected by written notice, which shall state the grounds forthe order of disapproval and shall be given in accordance withChapter 119. of the Revised Code.

Sec. 1751.04. (A) ~~Upon~~ Except as provided by division (F) of this section, upon thereceipt by the superintendent of insurance of a completeapplication for a certificate of authority to establish oroperate a health insuring corporation, which application setsforth or is accompanied by the information and documentsrequired by division (A) ofsection 1751.03 of the RevisedCode, the superintendent shalltransmit copies of the application and accompanying documents tothe director of health.

(B) The director shallreview the application and accompanying documents and makefindings as to whether the applicant for a certificate ofauthority has done all of the following with respect to any basic health careservices and supplementalhealth care services to be furnished:

(1) Demonstrated the willingness and potential ability toensure that all basic health care services and supplementalhealth care services described in theevidence of coverage willbe provided to all its enrollees as promptly as is appropriateand in a manner that assures continuity;

(2) Made effective arrangements to ensure that itsenrollees have reliable access to qualified providers in thosespecialties that are generally available in the geographic areaor areas to be served by the applicant and that are necessary toprovide all basic health care services and supplemental healthcare services described in the evidence ofcoverage;

(3) Made appropriate arrangements for the availability ofshort-term health care services in emergencies within thegeographic area or areas to be served by the applicant,twenty-four hours per day, seven days per week, and for theprovision of adequate coverage whenever an out-of-area emergencyarises;

(4) Made appropriate arrangements for an ongoing evaluation and assuranceof the quality of health care services provided to enrollees,including, if applicable, the development of a quality assurance programcomplying with therequirements of sections 1751.73 to 1751.75 of the Revised Code, and the adequacyof the personnel, facilities, and equipment by or through which the servicesare rendered;

(5) Developed a procedure to gather and report statisticsrelating to the cost and effectiveness of its operations, thepattern of utilization of its services, and the quality,availability, and accessibility of its services.

(C) Within ninety days of the director's receipt of theapplication forissuance of a certificate of authority, the director shallcertify to the superintendent whether or not the applicant meetsthe requirements of division (B) of this section and sections 3702.51to 3702.62 of the Revised Code. If the directorcertifies that the applicant does not meet these requirements,the director shall specify in what respects it is deficient. However, the director shall not certify that the requirements ofthis section are not met unless the applicant has been given anopportunity for a hearing.

(D) If the applicantrequests a hearing, the director shall hold a hearing beforecertifying that the applicant does not meet the requirements ofthis section. The hearing shall be held in accordance withChapter 119. of theRevised Code.

(E) Theninety-day review period provided for under division(C) of this section shall ceaseto run as of the date on which the notice of the applicant'sright to request a hearing is mailed and shall remain suspendeduntil the director issues a final certification order.

(F) Nothing in this section requires the director to review or make findings with regard to an application and accompanying documents to establish or operate a health insuring corporation to cover solely recipients of assistance under the medicaid program operated pursuant to Chapter 5111. of the Revised Code.

Sec. 1751.05. (A) Thesuperintendent of insurance shall issue or deny a certificate ofauthority to ~~establish or operate a~~ health insuring corporations within the deadlines specified as follows:

(1) For a health insuring corporation~~to any corporation~~ filing an application pursuant to section1751.03 of the RevisedCode ~~within~~, forty-five days of from thesuperintendent's receipt of the certification from the directorof health under division (C) of section 1751.04 ofthe Revised Code;

(2) For a health insuring corporation that covers solely recipients of assistance under the medicaid program operated pursuant to Chapter 5111. of the Revised Code, one hundred thirty-five days from the superintendent's receipt of a complete application and accompanying documents.

(B) A certificate of authority shall beissued upon payment of the application fee prescribed in section 1751.44 ofthe Revised Code if the superintendent issatisfied that the following conditions are met:

(1) The persons responsible for the conduct of theaffairs of the applicant are competent, trustworthy, and possessgood reputations.

(2) The director certifies, in accordance with division (C)of section 1751.04 of the Revised Code, that theorganization's proposed plan of operation meets the requirementsof division (B) of that section and sections 3702.51 to3702.62 of the Revised Code. If, after thedirector has certified compliance, the application is amended ina manner that affects its approval under section 1751.04 of theRevised Code, the superintendent shall request thedirector to review and recertify the amended plan of operation. Within forty-five days of receipt of the amended plan from thesuperintendent, the director shall certify to thesuperintendent, pursuant to section 1751.04 of theRevised Code, whether or not the amended planmeets the requirements of section 1751.04 of the RevisedCode. The superintendent's forty-five-day review periodshall cease to run as of the date on which the amended plan istransmitted to the director and shall remain suspended until thesuperintendent receives a new certification from the director.

(3) The applicant constitutes an appropriate mechanism toeffectively provide or arrange for the provision of the basic healthcare services, supplemental health care services, or specialty health careservices to be provided to enrollees.

(4) The applicant is financially responsible, complieswith section 1751.28 of the RevisedCode, and may reasonably be expected to meet its obligations toenrollees and prospectiveenrollees. In making this determination, the superintendent mayconsider:

(a) The financial soundness of the applicant's arrangements forhealth care services, including the applicant's proposed contractualperiodic prepayments or premiums and the use of copayments and deductibles;

(c) Any agreement withan insurer, a government, or any other person for insuring thepayment of the cost of health care services or providing forautomatic applicability of an alternative coverage in the eventof discontinuance of the health insuring corporation'soperations;

(d) Any agreement with providers or health care facilities forthe provision of health care services;

(e) Any deposit ofsecurities submitted in accordance with section 1751.27 of theRevised Code as a guarantee that the obligations will beperformed.

(5) The applicant has submitted documentation of anarrangement to provide health care services to its enrolleesuntil the expiration of the enrollees' contracts with theapplicant if a health care plan or the operations of the healthinsuring corporation are discontinued prior to the expiration ofthe enrollees' contracts. An arrangement to provide health careservices may be made by using any one, or any combination, ofthe following methods:

(b) A provision incontracts with providers and health care facilities, but no health insuringcorporation shall rely solely on such aprovision for more than thirty days;

(c) An agreement withother health insuring corporations or insurers, providingenrollees with automatic conversion rights upon thediscontinuation of a health care plan or the health insuringcorporation's operations;

(6) Nothing in the applicant's proposed method ofoperation, as shown by the information submitted pursuant tosection 1751.03 of the RevisedCode or by independentinvestigation, will cause harm to an enrollee or to the publicat large, as determined by the superintendent.

(8) The applicant has deposited securities as set forthin section 1751.27 of the Revised Code.

~~(B)~~(C) If an applicantelects to fulfill the requirements of division(A)(5) of this section throughan agreement with other health insuring corporations orinsurers, the agreement shall require those health insuringcorporations or insurers to give thirty days' notice to thesuperintendent prior to cancellation or discontinuation of theagreement for any reason.

~~(C)~~(D) A certificate ofauthority shall be denied only after compliance with therequirements of section 1751.36 of the Revised Code.

Sec. 1751.271. (A) Each health insuring corporation that provides coverage to medicaid recipients shall post a performance bond in the amount of three million dollars as security to fulfill the obligations of the health insuring corporation to pay claims of contracted providers for covered health care services provided to medicaid recipients. The bond shall be payable to the department of insurance in the event that the health insuring corporation is placed in rehabilitation or liquidation proceedings under Chapter 3903. of the Revised Code, and shall become a special deposit subject to section 3903.14 or 3903.421 of the Revised Code, as applicable. In lieu of the performance bond, a medicaid health insuring corporation may deposit securities with the superintendent of insurance, acceptable to the superintendent, in the amount of three million dollars, to satisfy the bonding requirements of this section. Upon rehabilitation or liquidation, the securities shall become a special deposit subject to sections 3903.14 and 3903.421 of the Revised Code, as applicable. The health insuring corporation shall receive the interest on the deposited securities as long as the health insuring corporation remains solvent.

(B) The bond shall be issued by a surety company licensed with the department of insurance. The bond or deposit, or any replacement bond or deposit, shall be in a form acceptable to the superintendent, and shall remain in effect during the duration of the medicaid health insuring corporation's license and thereafter until all claims against the medicaid health insuring corporation have been paid in full.

(C) Documentation of the bond acceptable to the superintendent of insurance shall be filed with the superintendent prior to the issuance of a certificate of authority. Annually, thirty days prior to the renewal of its certificate of authority, every medicaid health insuring corporation shall furnish the superintendent of insurance with evidence that the required bond is still in effect.

(1) "Contracted provider" means a provider that has a contract with a medicaid health insuring corporation to provide covered health care services to medicaid recipients.

(2) "Medicaid health insuring corporation" means a health insuring corporation that provides health insurance coverage or otherwise assumes claims liabilities for medicaid recipients.

(3) "Medicaid recipient" means a person eligible for assistance under the medicaid program operated pursuant to Chapter 5111. of the Revised Code.

Sec. 1901.26. (A) Subject to division (E) of thissection,costs in a municipal court shall be fixed and taxed as follows:

(1) The municipal court shall require an advance depositforthe filing of any new civil action or proceeding whenrequired bydivision (A)(9) of this section, and in all othercases, by rule,shall establish a schedule of fees and costs tobe taxed in anycivil or criminal action or proceeding.

(2) The municipal court, by rule, may require an advancedeposit for the filing of any civil action or proceeding andpublication fees as provided in section 2701.09 of the RevisedCode. The court may waive the requirement for advance depositupon affidavit or other evidence that a party is unable tomakethe required deposit.

(3) When a jury trial is demanded in any civil action orproceeding, the party making the demand may be required to makeanadvance deposit as fixed by rule of court, unless, uponaffidavitor other evidence, the court concludes that the partyis unable tomake the required deposit. If a jury iscalled, the fees of ajury shall be taxed as costs.

(4) In any civil or criminal action or proceeding,witnesses' fees shall be fixed in accordance with sections2335.06and 2335.08 of the Revised Code.

(5) A reasonable charge for driving, towing, carting,storing, keeping, and preserving motor vehicles and otherpersonalproperty recovered or seized in any proceeding may betaxed aspart of the costs in a trial of the cause, in anamount that shallbe fixed by rule of court.

(6) Chattel property seized under any writ or processissuedby the court shall be preserved pending final dispositionfor thebenefit of all persons interested and may be placed instoragewhen necessary or proper for that preservation. Thecustodian ofany chattel property so stored shall not be requiredto part withthe possession of the property until a reasonablecharge, to befixed by the court, is paid.

(7) The municipal court, as it determines, may refund alldeposits and advance payments of fees and costs,including thosefor jurors and summoning jurors, whenthey have been paid by thelosing party.

(8) Charges for the publication of legal notices requiredbystatute or order of court may be taxed as part of the costs,asprovided by section 7.13 of the Revised Code.

(B)(1) The municipal court may determine that, for theefficientoperation of the court, additional funds are necessaryto acquire and pay forspecial projects of the court including,but not limited to, the acquisitionof additional facilities orthe rehabilitation of existing facilities, theacquisition ofequipment, the hiring and training of staff, community serviceprograms, mediation or dispute resolution services, the employmentofmagistrates, the training and education of judges, actingjudges, andmagistrates, and other related services. Upon thatdetermination,the courtby rule may charge a fee, in addition toall othercourt costs, on the filing of each criminal cause, civilaction or proceeding,or judgment by confession.

If the municipal court offers a special program or service incases of aspecific type, the municipal court by rule may assessan additional charge ina case of that type, over and above courtcosts, to cover the special programor service. The municipalcourt shall adjust the special assessmentperiodically,but notretroactively, so that the amount assessed in those cases does notexceed the actual cost of providing the service or program.

All moneys collected under division (B)of this section shallbe paid to the county treasurer if the court is acounty-operatedmunicipal court or to the city treasurer if the court is not acounty-operated municipal court for deposit into eithera generalspecial projects fund or a fund established for a specific specialproject. Moneys from a fund of that nature shall be disbursedupon an orderof the court in an amount no greater than the actualcost to the court of aproject. If a specific fund is terminatedbecause of the discontinuance of aprogram or service establishedunder division(B) of this section, the municipal court mayorderthat moneys remaining in the fund be transferred to an accountestablished under this division for a similar purpose.

(a)"Criminal cause" means a charge alleging the violationofastatute or ordinance, or subsection of a statute orordinance,that requires aseparate finding of fact or a separateplea beforedisposition and of whichthe defendant may be foundguilty,whether filed as part of a multiple chargeon a singlesummons,citation, or complaint or as a separate charge on asinglesummons, citation, or complaint."Criminal cause" does notincludeseparateviolations of the same statute or ordinance, orsubsection of the same statuteor ordinance, unless each charge isfiled on a separate summons, citation, orcomplaint.

(b)"Civil action or proceeding" means any civil litigationthatmust be determined by judgment entry.

(C)The municipalcourt shallcollect in all its divisionsexcept the small claimsdivision thesum of ~~fifteen~~ twenty-six dollars asadditional filing fees ineach new civilaction or proceeding forthe charitable publicpurpose ofproviding financial assistance tolegal aid societiesthat operatewithin the state and to support the office of the state public defender.The municipalcourt shall collect in its smallclaims divisionthe sum of ~~seven~~ elevendollars as additional filingfees in each newcivil action orproceeding for the charitablepublic purpose ofprovidingfinancial assistance to legal aidsocieties that operatewithinthe state and to support the office of the state public defender. This division does notapply to any executionon ajudgment, proceeding in aid ofexecution, or otherpost-judgmentproceeding arising out of acivil action. Thefiling feesrequired to be collected underthis division shall bein additionto any other court costsimposed in the action orproceeding andshall be collected at thetime of the filing of theaction orproceeding. The court shallnot waive the payment oftheadditional filing fees in a newcivil action or proceedingunlessthe court waives the advancedpayment of all filing fees intheaction or proceeding. All suchmoneys collected during a month shall be transmitted on or beforethe~~first business~~ twentieth day of ~~each~~ the followingmonth by the clerk of the court tothetreasurer of state in a manner prescribed by the treasurer of state or by the Ohio legal assistance foundation. The~~moneys then shall be deposited by the~~treasurer of state shall deposit four per cent of the funds collected under this division to the credit of the civil case filing fee fund established under section 120.07 of the Revised Code and ninety-six per cent of the funds collected under this division to thecredit of the legal aid fund establishedunder section 120.52 ofthe Revised Code.

The court may retain up to one per cent of the moneys itcollects under this division to cover administrative costs,including the hiring of any additional personnel necessary toimplement this division.

(D) In the Cleveland municipal court, reasonable chargesforinvestigating titles of real estate to be sold or disposed ofunder any writ or process of the court may be taxed as part ofthecosts.

(E) Under the circumstances described in sections 2969.21to2969.27 of the Revised Code, the clerk of the municipal courtshall chargethe fees and perform the other duties specified inthose sections.

Sec. 1901.31. The clerk and deputy clerks of a municipalcourt shall be selected, be compensated, give bond, and havepowers and duties as follows:

(1)(a) Except in the Akron, Barberton, CuyahogaFalls,~~Medina,~~ Toledo, Hamiltoncounty, Portage county,and Wayne county municipal courts, if thepopulation of theterritory equals or exceeds one hundredthousand at the regularmunicipal election immediately preceding theexpiration of theterm of the present clerk, the clerk shall benominated andelected by the qualified electors of the territoryin the mannerthat is provided for the nomination and election ofjudges insection 1901.07 of the Revised Code.

The clerk so elected shall hold office for a term of sixyears, which term shall commence on the first day of Januaryfollowing theclerk's election and continue until the clerk'ssuccessor is electedand qualified.

(b) In the Hamilton county municipal court, the clerk ofcourts of Hamilton county shall be the clerk of the municipalcourt and may appoint an assistant clerk who shall receive thecompensation, payable out of the treasury of Hamilton county insemimonthly installments, that the board of county commissionersprescribes. The clerk of courts of Hamilton county, acting astheclerk of the Hamilton county municipal court and assuming theduties of that office, shall receive compensation at one-fourththe rate that is prescribed for the clerks of courts of commonpleas as determined in accordance with the population of thecounty and the rates set forth in sections 325.08 and 325.18 ofthe Revised Code. This compensation shall be paid from thecountytreasury in semimonthly installments and is in addition totheannual compensation that is received for the performance oftheduties of the clerk of courts of Hamilton county, as providedinsections 325.08 and 325.18 of the Revised Code.

(c) In the Portage county and Wayne county municipalcourts,the clerks of courts of Portage county and Wayne countyshall bethe clerks, respectively, of the Portage county andWayne countymunicipal courts and may appoint a chief deputyclerk for eachbranch that is established pursuant to section1901.311 of theRevised Code and assistant clerks as the judgesof the municipalcourt determine are necessary, all of whom shallreceive thecompensation that the legislative authorityprescribes. Theclerks of courts of Portage county and Waynecounty, acting as theclerks of the Portage county and Waynecounty municipal courts andassuming the duties of these offices,shall receive compensationpayable from the county treasury in semimonthlyinstallments atone-fourth the rate that is prescribed for the clerks ofcourts ofcommon pleas as determined in accordance with the population ofthecounty and the rates set forth in sections 325.08 and 325.18of the RevisedCode.

(d) Except as otherwise provided in division (A)(1)(d) ofthis section, in the Akron municipal court, candidates forelection to the office of clerk of the court shall be nominatedbyprimary election. The primary election shall be held on thedayspecified in the charter of the city of Akron for thenominationof municipal officers. Notwithstanding section3513.257 of theRevised Code, the nominating petitions ofindependent candidatesshall be signed by at least two hundredfifty qualified electorsof the territory of the court.

The candidates shall file a declaration of candidacy andpetition, or a nominating petition, whichever is applicable, notlater than four p.m. of the seventy-fifth day before the day ofthe primary election, in the form prescribed by section 3513.07or3513.261 of the Revised Code. The declaration of candidacyandpetition, or the nominating petition, shall conform to theapplicable requirements of section 3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filedbyany person for nomination as a candidate of a particularpoliticalparty for election to the office of clerk of the Akronmunicipalcourt, a primary election shall not be held for thepurpose ofnominating a candidate of that party for election tothat office.If only one person files a valid declaration ofcandidacy andpetition for nomination as a candidate of aparticular politicalparty for election to that office, a primaryelection shall not beheld for the purpose of nominating acandidate of that party forelection to that office, and thecandidate shall be issued acertificate of nomination in themanner set forth in section3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, and certificates of nomination for the office of clerkof the Akron municipal court shall contain a designation of theterm for which the candidate seeks election. At the followingregular municipal election, all candidates for the office shallbesubmitted to the qualified electors of the territory of thecourtin the manner that is provided in section 1901.07 of theRevisedCode for the election of the judges of the court. Theclerk soelected shall hold office for a term of six years, whichtermshall commence on the first day of January following the clerk'selection and continue until the clerk's successor is elected andqualified.

(e) Irrespective of the population of the territory of theMedina municipal court, the clerk of that court shall be appointedpursuant to division (A)(2)(a) of this section by thejudges ofthat court, shall hold office until the clerk's successor issimilarly appointed and qualified, and shall receive pursuant todivision(C) of this section the annual compensation that thelegislativeauthority prescribes and that is payable insemimonthly installments from thesame sources and in the samemanner as provided in section 1901.11 of theRevised Code.

~~(f)~~ Except as otherwise provided in division(A)(1)~~(f)~~(e) ofthissection, in the Barberton municipal court, candidates forelectionto the office of clerk of the court shall be nominated byprimaryelection. The primary election shall be held on the dayspecifiedin the charter of the city of Barberton for thenomination ofmunicipal officers. Notwithstanding section3513.257 of theRevised Code, the nominating petitions ofindependentcandidates shall be signed by at least two hundredfifty qualifiedelectors of the territory of the court.

The candidates shall file a declaration of candidacy andpetition,or a nominating petition, whichever is applicable, notlater thanfour p.m. of the seventy-fifth day before the day ofthe primaryelection, in the form prescribed by section 3513.07 or3513.261 ofthe Revised Code. The declaration of candidacy andpetition,or the nominating petition, shall conform to theapplicable requirements ofsection 3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filed byanyperson for nomination as a candidate of a particular politicalparty for election to the office of clerk of the Barbertonmunicipal court, a primary election shall not be held for thepurpose ofnominating a candidateof that party for election tothat office. If only one person files a validdeclaration ofcandidacy and petition for nomination as a candidate of aparticular political party for election to that office, a primaryelection shall not be held for the purpose of nominating acandidate of that party for election to that office, and thecandidate shall be issued a certificate of nomination in themanner set forth in section 3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, andcertificates of nomination for the office of clerkof theBarberton municipal court shall contain a designation ofthe termfor which the candidate seeks election. At the followingregular municipalelection, allcandidates for the office shall besubmitted to the qualified electors of theterritory of thecourtin the manner that is provided in section 1901.07 of theRevisedCode for the election of the judges of the court. The clerk soelected shall hold office for a term of six years, whichtermshall commence on the first day of January following theclerk'selection and continue until the clerk's successor is elected andqualified.

~~(g)~~(f) Except as otherwise provided in division(A)(1)~~(g)~~(f) ofthissection, in the Cuyahoga Falls municipal court, candidatesforelection to the office of clerk of the court shall benominated by primaryelection. The primary election shall be heldon the day specified in thecharter of the city of Cuyahoga Fallsfor the nomination ofmunicipal officers. Notwithstanding section3513.257 of theRevised Code, the nominating petitions ofindependentcandidates shall be signed by at least two hundredfifty qualifiedelectors of the territory of the court.

The candidates shall file a declaration of candidacy andpetition,or a nominating petition, whichever is applicable, notlater thanfour p.m. of the seventy-fifth day before the day ofthe primaryelection, in the form prescribed by section 3513.07 or3513.261 ofthe Revised Code. The declaration of candidacy andpetition, orthe nominating petition,shall conform to theapplicable requirements of section3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filed byanyperson for nomination as a candidate of a particular politicalparty for election to the office of clerk of the CuyahogaFallsmunicipal court, a primary election shall not be held for thepurpose of nominating a candidate of that party for election tothat office. If only one person files a valid declaration ofcandidacy and petition for nomination as a candidate of aparticular political party for election to that office, a primaryelection shall not be held for the purpose of nominating acandidate of that party for election to that office, and thecandidate shall be issued a certificate of nomination in themanner set forth in section 3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, andcertificates of nomination for the office of clerkof the CuyahogaFalls municipal court shall contain a designationof the term forwhich the candidate seeks election. At thefollowing regular municipalelection, all candidates for theoffice shall be submitted to thequalified electors of theterritory of the court in the mannerthat is provided in section1901.07 of the Revised Code fortheelection of the judges of thecourt. The clerk so elected shall hold officefora term of sixyears, which term shall commence on the first day ofJanuaryfollowing the clerk's election and continue until theclerk'ssuccessor is elected and qualified.

~~(h)~~(g) Except as otherwise provided in division(A)(1)~~(h)~~(g) ofthissection, in the Toledo municipal court, candidates forelectionto the office of clerk of the court shall be nominated byprimaryelection. The primary election shall be held on the dayspecifiedin the charter of the city of Toledo for the nominationofmunicipal officers. Notwithstanding section 3513.257 of theRevised Code, the nominating petitions of independentcandidatesshall be signed by at least two hundred fifty qualifiedelectorsof the territory of the court.

The candidates shall file a declaration of candidacy andpetition,or a nominating petition, whichever is applicable, notlater thanfour p.m. of the seventy-fifth day before the day ofthe primaryelection, in the form prescribed by section 3513.07 or3513.261 ofthe Revised Code. The declaration of candidacy andpetition,or the nominating petition, shall conform to theapplicable requirements ofsection 3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filed byanyperson for nomination as a candidate of a particular politicalparty for election to the office of clerk of the Toledo municipalcourt, a primary election shall not be held for the purpose ofnominating a candidateof that party for election to that office.If only one person files a validdeclaration ofcandidacy andpetition for nomination as a candidate of aparticular politicalparty for election to that office, a primaryelection shall not beheld for the purpose of nominating acandidate of that party forelection to that office, and thecandidate shall be issued acertificate of nomination in themanner set forth in section3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, andcertificates of nomination for the office of clerkof theToledo municipal court shall contain a designation of thetermfor which the candidate seeks election. At the followingregular municipalelection, allcandidates for the office shall besubmitted to the qualified electors of theterritory of thecourtin the manner that is provided in section 1901.07 of theRevisedCode for the election of the judges of the court. The clerk soelected shall hold office for a term of six years, whichtermshall commence on the first day of January following theclerk'selection and continue until the clerk's successor is elected andqualified.

(2)(a) Except for the Alliance, Auglaize county,Browncounty, Columbianacounty, Lorain,Massillon, and Youngstownmunicipal courts, in amunicipal courtfor which the population ofthe territory is lessthan one hundred thousand ~~and in the Medinamunicipal court~~, theclerk shallbe appointed by the court, andthe clerk shall holdoffice untilthe clerk's successor isappointed and qualified.

(b) In the Alliance, Lorain, Massillon, and Youngstownmunicipal courts, the clerk shall be elected for a term of officeas described in division (A)(1)(a) of this section.

(c) In the Auglaize countyand Brown countymunicipalcourts, theclerks ofcourts of Auglaizecountyand Browncounty shall be theclerks,respectively, of theAuglaizecounty and Brown county municipalcourts and may appoint achief deputy clerkfor each branch thatisestablished pursuant tosection 1901.311of the Revised Code,andassistant clerks as thejudge of thecourt determines arenecessary, all of whom shallreceive thecompensation that thelegislative authorityprescribes. Theclerks of courts ofAuglaizecountyandBrown county, acting as theclerks of the Auglaize countyand Browncountymunicipalcourtsand assuming theduties ofthese offices, shallreceive compensationpayable fromthe county treasury in semimonthlyinstallments atone-fourth therate that is prescribed for the clerks ofcourts ofcommon pleasas determined in accordance with the population ofthecounty andthe rates set forth in sections 325.08 and 325.18of the RevisedCode.

(d) In the Columbiana county municipal court, the clerk ofcourts ofColumbiana county shall be theclerk of the municipalcourt, may appoint a chief deputyclerk for each branch officethat is established pursuant to section1901.311 of the RevisedCode, and may appoint any assistant clerks thatthe judges of thecourt determine are necessary. All of the chief deputyclerks andassistant clerks shall receive the compensation that thelegislative authority prescribes. The clerk of courts ofColumbiana county, acting asthe clerk of the Columbianacountymunicipal court and assuming the duties of that office,shallreceive compensation payable from the county treasury insemimonthly installments at one-fourth the rate that isprescribedfor the clerks of courts of common pleas asdetermined inaccordance with the population of the county andthe rates setforth in sections 325.08 and 325.18 of theRevised Code.

(3) During the temporary absence of the clerk due toillness, vacation, or other proper cause, the court may appoint atemporary clerk, who shall be paid the same compensation,havethesame authority, and perform the same duties as the clerk.

(B) Except in the Hamilton county,~~Medina,~~Portage county, and Wayne county municipal courts, if a vacancyoccurs in the office of the clerk of the Alliance, Lorain,Massillon, or Youngstown municipal court or occurs in the officeof the clerk of a municipal court for which the population of theterritory equals or exceeds one hundred thousand because theclerkceases to hold the office before the end of the clerk's term orbecause a clerk-elect fails to take office, the vacancy shall befilled, until a successor is elected and qualified, by a personchosen by the residents of the territory of the court who aremembers of the county central committee of the political party bywhich the last occupant of that office or the clerk-elect wasnominated. Not less than five nor more than fifteen days after avacancy occurs, those members of that county central committeeshall meet to make an appointment to fill the vacancy. At leastfour days before the date of the meeting, the chairperson or asecretary of the county central committee shall notify each suchmember of that county central committee by first classmail of thedate, time, and placeof the meeting and its purpose. A majorityof all such members ofthat county central committee constitutes aquorum, and amajority of the quorum isrequired to make theappointment. If the office so vacated wasoccupied or was to beoccupied by a person not nominated at aprimary election, or ifthe appointment was not made by thecommittee members inaccordance with this division, the courtshall make an appointmentto fill the vacancy. A successor shallbe elected to fill theoffice for the unexpired term at the firstmunicipal election thatis held more than one hundred twenty daysafter the vacancyoccurred.

(C)(1) In a municipal court, other than the Auglaize county,the Brown county,the Columbiana county, andthe Lorain municipalcourts,for whichthe population of theterritory isless than onehundred thousand~~and in the Medinamunicipalcourt~~, the clerk ofthe municipalcourtshall receivethe annual compensation that thepresidingjudge of the courtprescribes, if the revenue of thecourt for thepreceding calendaryear, ascertified by the auditoror chieffiscal officer of themunicipal corporationin which thecourt islocated or, in thecase of a county-operated municipalcourt, thecounty auditor, isequal to or greater than theexpenditures,including any debtcharges, for the operation of thecourt payableunder thischapterfrom the city treasury or, in thecase of acounty-operatedmunicipalcourt, the county treasury forthatcalendar year, asalso certified by theauditor or chieffiscalofficer. If therevenue of a municipal court, otherthantheAuglaize county,theBrown county, the Columbiana county, andtheLorain municipalcourts, for whichthe population of theterritoryis less than onehundred thousand ~~or therevenue of theMedinamunicipal court~~ forthe preceding calendar yearas socertified isnot equal to orgreater than those expenditures fortheoperationof the court forthat calendar year as so certified,the clerk ofamunicipal courtshall receive the annualcompensation that thelegislativeauthority prescribes. As usedin this division,"revenue" meansthe total of all costs and feesthat are collectedand paid to thecitytreasury or, in acounty-operated municipalcourt, the countytreasury by theclerkof the municipal courtunder division (F) ofthis section andallinterest received andpaid to the citytreasury or, in acounty-operatedmunicipalcourt, the countytreasury in relationto the costs and fees underdivision (G) ofthis section.

(2) Ina municipal court, other than theHamilton county, ~~Medina,~~ Portagecounty, and Waynecountymunicipal courts, for which the population of the territoryis onehundred thousand or more, and in the Lorain municipal court, theclerk of the municipal courtshall receive annual compensation ina sum equal to eighty-fiveper cent of the salary of a judge ofthe court.

(3) The compensationof a clerk described in division (C)(1)or (2) of thissection is payable in semimonthly installments fromthe same sources andin the same manner as provided in section1901.11 of the RevisedCode.

(D) Before entering upon the duties of the clerk's office,theclerk of a municipal court shall give bond of not less thansixthousand dollars to be determined by the judges of the court,conditioned upon the faithful performance of the clerk's duties.

(E) The clerk of a municipal court may do all of thefollowing: administer oaths, take affidavits, and issueexecutions upon any judgment rendered in the court, including ajudgment for unpaid costs; issue, sign, and attach the seal ofthecourt to all writs, process, subpoenas, and papers issuingout ofthe court; and approve all bonds, sureties, recognizances,andundertakings fixed by any judge of the court or by law. The clerkmayrefuse to accept for filing any pleading or paper submittedfor filing by aperson who has been found to be a vexatiouslitigator under section 2323.52of the Revised Code and who hasfailed to obtain leave to proceed under thatsection. The clerkshall do all of the following: file and safely keep alljournals,records, books, and papers belonging or appertaining tothe court;record the proceedings of the court; perform all otherduties thatthe judges of the court may prescribe; and keep abook showing allreceipts and disbursements, which book shall beopen for publicinspection at all times.

The clerk shall prepare and maintain a general index, adocket, and other records that the court, by rule, requires, allof which shall be the public records of the court. In thedocket,the clerk shall enter, at the time of the commencement ofanaction, the names of the parties in full, the names of thecounsel, and the nature of the proceedings. Under proper dates,the clerk shall note the filing of the complaint, issuing ofsummons orother process, returns, and any subsequent pleadings.The clerkalso shall enter all reports, verdicts, orders,judgments, andproceedings of the court, clearly specifying therelief grantedor orders made in each action. The court may orderan extendedrecord of any of the above to be made and entered,under theproper action heading, upon the docket at the request ofanyparty to the case, the expense of which record may be taxed ascosts in the case or may be required to be prepaid by the partydemanding the record, upon order of the court.

(F) The clerk of a municipal court shall receive, collect,and issue receipts for all costs, fees, fines, bail, and othermoneys payable to the office or to any officer of the court. Theclerkshall each month disburse to the proper persons or officers,andtake receipts for, all costs, fees, fines, bail, and othermoneysthat the clerk collects. Subject to sections 3375.50 and4511.193ofthe Revised Code and to any other section of theRevised Codethat requires a specific manner of disbursement ofany moneysreceived by a municipal court and except for theHamilton county,Lawrence county, and Ottawa county municipalcourts, the clerk shall pay allfines received for violation ofmunicipal ordinances into thetreasury of the municipalcorporation the ordinance of which wasviolated and shall pay allfines received for violation oftownship resolutions adoptedpursuant to Chapter 504. of theRevised Code into the treasury ofthe township the resolution ofwhich was violated. Subject tosections 1901.024 and 4511.193 ofthe Revised Code, in theHamilton county, Lawrence county, and Ottawa countymunicipalcourts, the clerk shall pay fifty per cent of the finesreceivedfor violation of municipal ordinances and fifty per centof thefines received for violation of township resolutionsadoptedpursuant to Chapter 504. of the Revised Code into thetreasury ofthe county. Subject to sections 3375.50, 3375.53,4511.19, and5503.04 of the Revised Code and to any other sectionof theRevised Code that requires a specific manner ofdisbursement ofany moneys received by a municipal court, theclerk shall pay allfines collected for the violation of statelaws into the countytreasury. Except in a county-operatedmunicipal court, the clerkshall pay all costs and fees thedisbursement of which is nototherwise provided for in theRevisedCode into the city treasury.The clerk of acounty-operatedmunicipal court shall pay the costsand fees thedisbursement ofwhich is not otherwise provided forin theRevised Code into thecounty treasury. Moneys deposited assecurity for costs shall beretained pending the litigation. Theclerk shall keep a separateaccount of all receipts anddisbursements in civil and criminalcases, which shall be apermanent public record of the office. Onthe expiration of theterm of the clerk, the clerk shall deliverthe records to theclerk'ssuccessor. The clerk shall have otherpowers and dutiesas are prescribed byrule or order of the court.

(G) All moneys paid into a municipal court shall be notedonthe record of the case in which they are paid and shall bedeposited in a state or national bank, or a domestic savings andloan association, as defined in section 1151.01 of the RevisedCode, that is selected by the clerk. Any interest received uponthe deposits shall be paid into the city treasury, except that, ina county-operated municipal court, the interest shall be paidintothe treasury of the county in which the court is located.

On the first Monday in January of each year, the clerkshallmake a list of the titles of all cases in the court thatwerefinally determined more than one year past in which thereremainsunclaimed in the possession of the clerk any funds, orany part ofa deposit for security of costs not consumed by thecosts in thecase. The clerk shall give notice of the moneys tothe partieswho are entitled to the moneys or to their attorneysof record.All the moneys remaining unclaimed on the first dayof April ofeach year shall be paid by the clerk to the citytreasurer, exceptthat, in a county-operated municipal court, themoneys shall bepaid to the treasurer of the county in which thecourt is located.The treasurer shall pay any part of themoneys at any time to theperson who has the right to themoneys upon proper certificationof the clerk.

(H) Deputy clerks may be appointed by the clerk and shallreceive the compensation, payable in semimonthly installments outof the city treasury, that the clerk may prescribe, except thatthe compensation of any deputy clerk of a county-operatedmunicipal court shall be paid out of the treasury of the countyinwhich the court is located. Each deputy clerk shall take anoathof office before entering upon the duties of the deputy clerk'sofficeand, when so qualified, may perform the duties appertainingto theoffice of the clerk. The clerk may require any of thedeputyclerks to give bond of not less than three thousanddollars,conditioned for the faithful performance of the deputyclerk's duties.

(I) For the purposes of this section, whenever thepopulation of the territory of a municipal court falls below onehundred thousand but not below ninety thousand, and thepopulationof the territory prior to the most recent regularfederal censusexceeded one hundred thousand, the legislativeauthority of themunicipal corporation may declare, byresolution, that theterritory shall be considered to have apopulation of at least onehundred thousand.

(J) The clerk or a deputy clerk shall be in attendance atall sessions of the municipal court, although not necessarily inthe courtroom, and may administer oaths to witnesses and jurorsand receive verdicts.

Sec. 1907.24. (A) Subject to division (C) of this section,a county courtshall fix and tax fees and costs as follows:

(1) The county court shall require an advance deposit forthe filing ofany new civil action or proceeding when required bydivision(C) of this section and, in all other cases, shallestablish aschedule of fees and costs to be taxed in any civil orcriminal action orproceeding.

(2) The county court by rule may require an advancedepositfor the filing of a civil action or proceeding and publicationfeesas provided in section 2701.09of the Revised Code. Thecourt may waive an advance deposit requirementupon thepresentation of an affidavit or other evidence thatestablishesthat a party is unable to make the requisite deposit.

(3) When a party demands a jury trial in a civil action orproceeding,the county court may require the party to make anadvance deposit as fixed byrule of court,unless the courtconcludes, on the basis of an affidavit or other evidencepresented by the party, that the party is unable to make therequisitedeposit. If a jury is called, the county court shalltax the fees of a juryas costs.

(4) In a civil or criminal action or proceeding, the countycourt shallfix the fees of witnesses in accordance with sections2335.06 and 2335.08 ofthe Revised Code.

(5) A county court may tax as part of the costs in a trialof the cause,in an amount fixed by rule of court, a reasonablecharge for driving, towing,carting, storing, keeping,andpreserving motor vehicles and other personal property recovered orseizedin a proceeding.

(6) The court shall preserve chattel property seized under awrit orprocess issued by the court pending final disposition forthe benefit of allinterested persons. The court may place thechattel property in storage whennecessary or proper for itspreservation. The custodian of chattel propertyso stored shallnot be required to part with the possession of the propertyuntila reasonable charge, to be fixed by the court, is paid.

(7) The county court, as it determines, may refund alldeposits andadvance payments of fees and costs, including thosefor jurors and summoning jurors, when they have been paid bythelosing party.

(8) The court may tax as part of costs charges for thepublication oflegal notices required by statute or order ofcourt, as provided by section7.13 of the Revised Code.

(B)(1) The county court may determine that, for theefficientoperation of the court, additional funds are necessaryto acquire and pay forspecial projects of the court including,but not limited to, the acquisitionof additional facilities orthe rehabilitation of existing facilities, theacquisition ofequipment, the hiring and training of staff, community serviceprograms, mediation or dispute resolution services, the employmentofmagistrates, the training and education of judges, actingjudges, andmagistrates, and other related services. Upon thatdetermination,the courtby rule may charge a fee, in addition toall othercourt costs, on the filing of each criminal cause, civilaction or proceeding,or judgment by confession.

If the county court offers a special program or service incases of aspecific type, the county court by rule may assess anadditional charge in acase of that type, over and above courtcosts, to cover the special program orservice. The county courtshall adjust the special assessment periodically,but notretroactively, so that the amount assessed in those cases does notexceed the actual cost of providing the service or program.

All moneys collected under division (B)of this section shallbe paid to the county treasurer for deposit into eithera generalspecial projects fund or a fund established for a specific specialproject. Moneys from a fund of that nature shall be disbursedupon an orderof the court in an amount no greater than the actualcost to the court of aproject. If a specific fund is terminatedbecause of the discontinuance of aprogram or service establishedunder division(B) of this section, the county court mayorderthat moneys remaining in the fund be transferred to an accountestablished under this division for a similar purpose.

(a)"Criminal cause" means a charge alleging the violationofastatute or ordinance, or subsection of a statute orordinance,that requires aseparate finding of fact or a separateplea beforedisposition and of whichthe defendant may be foundguilty,whether filed as part of a multiple chargeon asinglesummons,citation, or complaint or as a separate charge on asinglesummons, citation, or complaint."Criminal cause" does notincludeseparateviolations of the same statute or ordinance, orsubsection of the same statuteor ordinance, unless each charge isfiled on a separate summons, citation, orcomplaint.

(b)"Civil action or proceeding" means any civil litigationthatmust be determined by judgment entry.

(C) Subject to division (E) of this section,the countycourtshall collect in all its divisions except thesmall claimsdivision the sum of ~~fifteen~~ twenty-six dollars as additionalfiling fees ineach new civil action or proceeding for thecharitable publicpurpose of providing financial assistance tolegal aid societiesthat operate within the state and to support the office of the state public defender. Subject todivision (E) ofthissection, the county court shall collect in its smallclaimsdivision the sum of ~~seven~~ eleven dollars as additional filingfeesineach new civil action or proceeding for the charitablepublicpurpose of providing financial assistance to legal aidsocietiesthat operate within the state and to support the office of the state public defender. This division does notapply toany execution on a judgment, proceeding in aid ofexecution, orother post-judgment proceeding arising out of acivil action. Thefiling fees required to be collected underthis division shall bein addition to any other court costsimposed in the action orproceeding and shall be collected at thetime of the filing of theaction or proceeding. The court shallnot waive the payment ofthe additional filing fees in a newcivil action or proceedingunless the court waives the advancedpayment of all filing fees inthe action or proceeding. All suchmoneys collected during amonth shall be transmitted on orbefore the twentieth day ofthefollowingmonth by the clerk of the court to the treasurer ofstate in a manner prescribed by the treasurer of state or by the Ohio legal assistance foundation. The~~moneys then shall be deposited by the~~ treasurer ofstate shall deposit four per cent of the funds collected under this division to the credit of the civil case filing fee fund established under section 120.07 of the Revised Code and ninety-six per cent of the funds collected under this division to thecredit of the legal aid fund established undersection 120.52 ofthe Revised Code.

(D) The county court shall establish by rule a schedule offeesfor miscellaneous services performed by the county court orany of its judgesin accordance with law. If judges of the courtof common pleas performsimilar services, the fees prescribed inthe schedule shall not exceed thefees for those servicesprescribed by the court of common pleas.

(E) Under the circumstances described in sections 2969.21to2969.27 of the Revised Code, the clerk of the county court shallcharge thefees and perform the other duties specified in thosesections.

Sec. 2113.041. (A) The administrator of the estate recovery program established pursuant to section 5111.11 of the Revised Code may present an affidavit to a financial institution requesting that the financial institution release account proceeds to recover the cost of services correctly provided to a medicaid recipient who is subject to the estate recovery program. The affidavit shall include all of the following information:

(2) The name of any person who gave notice that the decedent was a medicaid recipient and that person's relationship to the decedent;

(B) A financial institution may release account proceeds to the administrator of the estate recovery program if all of the following apply:

(1) The decedent held an account at the financial institution that was in the decedent's name only.

(2) No estate has been, and it is reasonable to assume that no estate will be, opened for the decedent.

(3) The decedent has no outstanding debts known to the administrator of the estate recovery program.

(4) The financial institution has received no objections or has determined that no valid objections to release of proceeds have been received.

(C) If proceeds have been released pursuant to division (B) of this section and the department of job and family services receives notice of a valid claim to the proceeds that has a higher priority under section 2117.25 of the Revised Code than the claim of the estate recovery program, the department may refund the proceeds to the financial institution or pay them to the person or government entity with the claim.

(1) "Medicaid estate recovery program" means the program instituted under section 5111.11 of the Revised Code.

(2) "Permanently institutionalized individual" has the same meaning as in section 5111.11 of the Revised Code.

(3) "Person responsible for the estate" means the executor, administrator, commissioner, or person who filed pursuant to section 2113.03 of the Revised Code for release from administration of an estate.

(B) If ~~the~~ a decedent, at the time of death, was fifty-five years of age or older ~~at the time of death~~ or a permanently institutionalized individual, the person responsible for an the decedent's estate shall determine whether the decedent was, at any time during the decedent's life, a medicaid recipient ~~of medical assistance~~ under Chapter 5111. of the Revised Code. If the decedent was a medicaid recipient, the person responsible for the estate shall ~~give written notice to that effect~~ submit a properly completed medicaid estate recovery reporting form prescribed under division (D) of this section to the administrator of the medicaid estate recovery program ~~instituted under section 5111.11 of the Revised Code~~ not later than thirty days after the occurrence of any of the following:

(3) The filing of an application for release from administration or summary release from administration.

(C) The person responsible for an the estate shall mark the appropriate box on the appropriate probate form to indicate compliance with the requirements of division (B) of this section.

The probate court shall send a copy of the completed probate form to the administrator of the medicaid estate recovery program.

(D) The administrator of the estate recovery program shall prescribe a medicaid estate recovery reporting form for the purpose of division (B) of this section. The form shall require, at a minimum, that the person responsible for the estate list all of the decedent's real and personal property and other assets that are part of the decedent's estate as defined in section 5111.11 of the Revised Code. The administrator shall include on the form a statement printed in bold letters informing the person responsible for the estate that knowingly making a false statement on the form is falsification under section 2921.13 of the Revised Code, a misdemeanor of the first degree.

(E) The estate recovery program administrator shall present a claim for estate recovery to the person responsible for the estate or the person's legal representative not later than ninety days after the date on which ~~notice~~ the medicaid estate recovery reporting form is received under division (B) of this section or one year after the decedent's death, whichever is later.

Sec. 2151.282. (A) There is hereby created the Ohio court appointed special advocate/guardian ad litem (CASA/GAL) study committee consisting of five members. One member shall be a representative of the Ohio court appointed special advocate/guardian ad litem association appointed by the governor and shall be the chairperson of the committee. One member shall be a member of the Ohio juvenile judges association, appointed by the president of the senate. One member shall be a member of the Ohio state bar association appointed by the speaker of the house of representatives. One member shall be a representative of the office of the state public defender appointed by the minority leader of the senate. One member shall be a representative of the Ohio county commissioner's association appointed by the minority leader of the house of representatives. The members of the committee shall be appointed within sixty days after the effective date of this section. The committee shall do all of the following:

(1) Compile available public data associated with state and local costs of advocating on behalf of children who have been found to be abused, neglected, or dependent children;

(2) Examine the costs in counties that have established and operated an Ohio CASA/GAL association program, and the costs in counties that utilize the county public defender, joint county public defender, or court-appointed counsel, to advocate on behalf of children who have been found to be abused, neglected, or dependent children;

(3) Analyze the total cost of advocating on behalf of children who have been found to be abused, neglected, or dependent children on a per county basis and a per child served basis;

(4) Analyze the cost benefit of having an Ohio CASA/GAL association versus utilizing the county public defender, joint county public defender, or court-appointed counsel to advocate on behalf of children who have been found to be abused, neglected, or dependent children;

(5) Analyze the advocacy services provided to abused children, neglected children, or dependent children by Ohio CASA/GAL association programs versus the advocacy services provided to abused, neglected, or dependent children by county public defenders, joint county public defenders, or court-appointed counsel.

(B) The Ohio CASA/GAL association shall provide staff for the Ohio CASA/GAL study committee and shall pay for any expenses incurred by the study committee. The study committee shall meet within thirty days after the appointment of the members to the study committee.

(C) The Ohio CASA/GAL study committee shall prepare a report containing all relevant data and information that division (A) of this section requires the study committee to compile, examine, and analyze. The Ohio CASA/GAL study committee shall deliver a final copy of the report to the governor, the speaker of the house of representatives, and the president of the senate on or before July 1, 2007.

Sec. 2151.352. Achild, or the child's parents, or custodian,orany otherperson in loco parentis of ~~such~~ the child is entitled torepresentation by legal counsel at all stages of the proceedingsunder this chapter or Chapter 2152. of the Revised Code ~~and if~~. If, asanindigent person, ~~any such person~~ a party is unable toemploy counsel,the party is entitled tohave counsel provided for the person pursuant to Chapter120.of theRevised Code except in civil matters in which the juvenile court is exercising jurisdiction pursuant to division (A)(2), (3), (9), (10), (11), (12), or (13); (B)(2), (3), (4), (5), or (6); (C); (D); or (F)(1) or (2) of section 2151.23 of the Revised Code. If a party appears without counsel, thecourtshall ascertain whether the party knows of theparty's rightto counsel and ofthe party's right to be provided with counsel ifthe party is an indigentperson. The court may continue the caseto enable a party toobtain counsel or, to be represented by thecounty public defenderor the joint county public defender ~~andshall provide~~, or to be appointed counselupon request pursuant to Chapter 120. of theRevised Code.Counsel must be provided for a child not representedby thechild'sparent, guardian, or custodian. If the interestsof two or moresuch parties conflict, separate counsel shall beprovided foreach of them.

Section 2935.14 of the Revised Code applies to any childtaken into custody. The parents, custodian, or guardian of suchchild, and any attorney at law representing them or the child,shall be entitled to visit such child at any reasonable time, bepresent at any hearing involving the child, and be givenreasonable notice of such hearing.

Any report or part thereof concerning such child, which isused in the hearing and is pertinent thereto, shall for goodcauseshown be made available to any attorney at law representingsuchchild and to any attorney at law representing the parents,custodian, or guardian of such child, upon written request priorto any hearing involving such child.

Sec. 2151.416. (A) Each agency that is required bysection2151.412 of the Revised Code to prepare a case plan for achildshall complete a semiannual administrative review of thecase planno later than six months after the earlier of the dateon whichthe complaint in the case was filed or the child wasfirst placedin shelter care. After the first administrativereview, theagency shall complete semiannual administrativereviews no laterthan every six months. If the court issues anorder pursuant tosection 2151.414 or 2151.415of the RevisedCode, the agency shallcomplete an administrative review no laterthan six months afterthe court's order and continue to completeadministrative reviewsno later than every six months after thefirst review, except thatthe court hearing held pursuant tosection 2151.417 of the RevisedCode may take the place of anyadministrative review that wouldotherwise be held at the time ofthe court hearing. Whenconducting a review, the child's health and safetyshall be theparamount concern.

(B) Each administrative review required by division (A) ofthis section shall be conducted by a review panel of at leastthree persons, including, but not limited to, both of thefollowing:

(1) A caseworker with day-to-day responsibility for, orfamiliarity with, the management of the child's case plan;

(2) A person who is not responsible for the management ofthe child's case plan or for the delivery of services to thechildor the parents, guardian, or custodian of the child.

(C) Each semiannual administrative review shall include,butnot be limited to, a joint meeting by the review panel withtheparents, guardian, or custodian of the child, the guardian adlitem of the child, and the child's foster care provider andshallinclude an opportunity for those persons to submit anywrittenmaterials to be included in the case record of the child.If aparent, guardian, custodian, guardian ad litem, or fostercareprovider of the child cannot be located after reasonableeffortsto do so or declines to participate in the administrativereviewafter being contacted, the agency does not have to includethem inthe joint meeting.

(D) The agency shall prepare a written summary of thesemiannual administrative review that shall include, but not belimited to, all of the following:

(1) A conclusion regarding the safety and appropriateness ofthechild's foster care placement;

(3) The extent of progress that has been made towardalleviating the circumstances that required the agency to assumetemporary custody of the child;

(4) An estimated date by which the child may be returnedtoand safely maintained in the child's home or placed for adoptionorlegal custody;

(5) An updated case plan that includes any changes thattheagency is proposing in the case plan;

(6) The recommendation of the agency as to which agency orperson should be given custodial rights over the child for thesix-month period after the administrative review;

(E) The agency shall file the summary withthe court nolater than seven days after the completion of the administrativereview. If the agency proposes a change to the case plan as aresult ofthe administrative review, the agency shall file theproposed change with thecourt at the time it files the summary.The agency shall give notice of thesummary and proposed change inwriting before the end of the next day afterfiling them to allparties and the child's guardian ad litem. All parties andtheguardian ad litem shall have seven days after the date the noticeis sentto object to and request a hearing on the proposed change.

(1) If the court receives a timely request for a hearing,the court shallschedule a hearing pursuant to section 2151.417 ofthe Revised Code to be held not later thanthirty days after thecourt receives the request. The court shall give noticeof thedate, time, and location of the hearing to all parties and theguardianad litem. The agency may implement the proposed changeafter the hearing, ifthe court approves it. The agency shall notimplement the proposed changeunless it is approved by the court.

(2) If the court does not receive a timely request for ahearing, thecourt may approve the proposed change without ahearing. If the courtapproves the proposed change without ahearing, it shall journalize the caseplan with the change notlater than fourteen days after the change is filedwith the court.If the court does not approve the proposed change to the caseplan, it shall schedule a review hearing to be held pursuant tosection2151.417 of the Revised Code no later than thirty daysafter the expiration of thefourteen-day time period and givenotice of the date, time, and location ofthe hearing to allparties and the guardian ad litem of the child. If,despite therequirements of this division and division (D) of section2151.417of the Revised Code, the court neither approves and journalizesthe proposed changenor conducts a hearing, the agency mayimplement the proposed change notearlier than fifteen days afterit is submitted to the court.

(F) The director of job andfamily services may adoptrulespursuant to Chapter 119. of the Revised Code for procedures andstandard forms for conducting administrative reviews pursuant tothis section.

(G) The juvenile court that receives the written summaryofthe administrative review, upon determining, either from thewritten summary, case plan, or otherwise, that the custody orcarearrangement is not in the best interest of the child, mayterminate the custody of an agency and place the child in thecustody of another institution or association certifiedby thedepartment of job and family services undersection 5103.03 of theRevised Code.

(H) The department of job and family services shallreportannuallyto the public and to the general assembly on the resultsof thereview of case plans of each agency ~~and on the results ofthesummaries submitted to the department under section 3107.10 ofthe Revised Code~~. The annual report shall include anyinformationthat is required by the department, including, butnot limited to,all of the following:

(1) A statistical analysis of the administrative reviewsconducted pursuant to this section and section 2151.417 of theRevised Code;

(2) The number of children in temporary or permanentcustodyfor whom an administrative review was conducted, thenumber ofchildren whose custody status changed during theperiod, thenumber of children whose residential placementchanged during theperiod, and the number of residentialplacement changes for eachchild during the period;

(3) An analysis of the utilization of public socialservicesby agencies and parents or guardians, and theutilization of theadoption listing service of the departmentpursuant to section5103.154 of the Revised Code;

~~(4) A compilation and analysis of data submitted to thedepartment under section 3107.10 of the Revised Code~~.

Sec. 2152.43. (A) A board of countycommissioners thatprovides a detention facilityand the board of trustees of adistrict detention facilitymay apply tothe department of youthservices under section 5139.281 of the Revised Codeforassistancein defraying the cost of operating andmaintainingthefacility.The application shall bemade on formsprescribed andfurnished bythe department.

The board of county commissioners of each county thatparticipatesin a district detention facility may apply to thedepartment of youthservices for assistance in defraying thecounty's share of thecost of acquisition or construction of thefacility, as providedin section 5139.271 of the Revised Code.Application shall be madein accordance with rules adopted by thedepartment. No county shall bereimbursed for expenses incurredin the acquisition or construction of adistrictdetentionfacility that serves a district having a population ofless thanone hundred thousand.

(B)(1) Thejoint boards of countycommissioners of districtdetention facilities shall defrayall necessary expenses of thefacility not paid fromfunds made available undersection 5139.281of the Revised Code, through annual assessments oftaxes, throughgifts, or through other means.

If any county withdraws from a district under division (D) ofsection 2152.41 of the Revised Code, it shall continue tohavelevied against its tax duplicate any tax levied by the districtduring theperiod in which the county was a member of the districtfor current operating expenses, permanent improvements, or theretirement of bonded indebtedness. The levy shall continue to bea levy against the tax duplicate of the county until the timethatit expires or is renewed.

(2) The current expenses of maintaining the facility notpaidfrom funds made available under section 5139.281 of theRevisedCode or division (C) of thissection, and the cost ofordinary repairs to the facility, shall be paid byeach county inaccordance with one of the following methods as approved by thejoint board ofcountycommissioners:

(a) In proportion to the number of children from that countywhoare maintained in the facility during the year;

(b) By a levy submitted by the joint board of countycommissioners under division (A) of section 5705.19 of theRevisedCode and approved by the electors of the district;

(d) In any ~~combination of the methods for payment describedindivision (B)(2)(a), (b), or(c) of this section~~ other method agreed upon by unanimous vote of the joint board of county commissioners.

(C) When any person donates or bequeaths any realorpersonal property to a county or district detention facility, thejuvenilecourt or the trusteesof the facility may accept and usethe gift, consistent with the best interestofthe institution andthe conditions of thegift.

Sec. 2152.74. (A) As used in this section,"DNAanalysis"and "DNA specimen" have the same meanings as in section109.573 ofthe Revised Code.

(B)(1) A child who is adjudicated a delinquent child forcommitting an actlisted in division (D) of this section and whois committed to the custody ofthe department of youth services,placed in a detention facility or district detention facilitypursuant to division (A)(3) of section 2152.19 of the RevisedCode, orplaced in a school, camp, institution,or otherfacility for delinquentchildren described in division(A)(2) ofsection 2152.19 of theRevised Codeshall submit to a DNAspecimen collection procedureadministered by the director ofyouth servicesif committed to thedepartment or by the chiefadministrativeofficer of thedetention facility, districtdetention facility, school,camp, institution, or other facilityfordelinquent children towhich the child was committedor inwhich the child was placed. If thecourt commits the child tothedepartment of youth services, thedirector of youth servicesshallcause the DNA specimen to becollected from the child duringtheintake process at an institutionoperated by or under thecontrolof the department. If thecourt commits the child toor placesthe child in adetention facility, district detention facility,school, camp, institution, or otherfacility for delinquentchildren, the chief administrativeofficer of thedetentionfacility, district detention facility, school, camp,institution,or facility to whichthe child is committedor in which the childis placed shallcause theDNA specimen to be collectedfrom thechild during theintake process for thedetention facility,district detention facility, school, camp,institution, orfacility. Inaccordance with division (C) of this section,thedirector or thechief administrative officershall cause theDNAspecimen to beforwarded tothe bureau of criminal identificationandinvestigation no laterthan fifteen days after the date of thecollection of theDNA specimen. The DNA specimen shall becollectedfrom the child in accordance with division(C) of thissection.

(2) If a child is adjudicated a delinquent child forcommitting an actlisted in division (D) of this section, iscommitted toor placed in thedepartment of youthservices, adetention facility or district detention facility, or a school,camp, institution, or other facility fordelinquent children, anddoes not submit to a DNAspecimen collectionprocedure pursuant todivision (B)(1) of this section, prior to the child'srelease fromthe custody of the department ofyouth services, from the custodyof the detention facility or district detention facility, or fromthecustody of the school, camp,institution, or facility, thechildshall submit to, and thedirector of youth services or thechiefadministrator of thedetention facility, district detentionfacility, school, camp, institution, or facility towhich thechild iscommittedor in which the child was placed shalladminister, a DNA specimencollectionprocedure at the institutionoperated by or under thecontrol ofthe department of youthservices or at thedetention facility, district detentionfacility, school,camp, institution, orfacility to which thechild is committedor in which the child was placed.Inaccordancewithdivision (C) of this section, the director orthechiefadministrative officer shall cause the DNAspecimen tobeforwarded to the bureau of criminal identification andinvestigation no later than fifteen days after the date of thecollection ofthe DNA specimen. The DNA specimen shall becollected inaccordance with division (C) of this section.

(C)If the DNA specimen is collected by withdrawing bloodfrom the child or a similarly invasive procedure, a physician,registered nurse,licensed practical nurse,duly licensed clinicallaboratory technician, orother qualifiedmedical practitionershall collect in a medically approvedmannerthe DNA specimenrequired to be collected pursuant to division(B)of this section.If the DNA specimen is collected by swabbing for buccal cells or asimilarly noninvasive procedure, this section does not requirethat the DNA specimen be collected by a qualified medicalpractitioner of that nature. No later than fifteen days after thedate ofthecollection of the DNA specimen, thedirector of youthservices orthe chiefadministrative officer of thedetentionfacility, district detention facility, school, camp,institution,orother facility for delinquent children to whichthe child iscommittedor in which the child was placed shall cause the DNAspecimen to beforwarded to thebureau of criminalidentificationandinvestigation in accordancewith procedures established by thesuperintendentof the bureauunder division (H) of section 109.573ofthe Revised Code. Thebureau shall provide thespecimen vials,mailing tubes, labels,postage, and instructionneeded for thecollection andforwardingof the DNA specimen to the bureau.

(D) The director of youth services and the chiefadministrativeofficer of adetention facility, district detentionfacility, school, camp, institution, or otherfacility fordelinquentchildren shall cause a DNA specimen to becollected inaccordancewith divisions (B) and (C) of this sectionfrom eachchildin its custody who is adjudicated a delinquentchild forcommitting anyof the followingacts:

(1) A violation of section 2903.01, 2903.02,2903.11,2905.01,2907.02, 2907.03, 2907.05,2911.01, 2911.02,2911.11,or2911.12 of the Revised Code;

(2) A violation of section 2907.12 of the Revised Code as itexisted prior toSeptember 3, 1996;

(3) An attempt to commit a violation of section2903.01,2903.02, 2907.02,2907.03,or2907.05 of the Revised Code or tocommit a violationofsection 2907.12 of the Revised Code as itexisted prior toSeptember 3,1996;

(4) Aviolation of any law that arose out of the samefactsandcircumstances andsame act as did a charge against thechildof a violationof section 2903.01, 2903.02,2905.01,2907.02,2907.03,2907.05,or2911.11 of the RevisedCodethat previouslywas dismissed oramended or as did a chargeagainst thechild of aviolation ofsection 2907.12 of the RevisedCode as it existedprior toSeptember 3, 1996, that previously wasdismissed oramended;

(5) A violation of section 2905.02 or 2919.23 of theRevisedCode that would have been aviolation of section 2905.04 of theRevised Code as it existed prior to July1, 1996, had theviolation been committed prior to that date;

(6) A felony violation of any law that arose out of the samefacts and circumstances and same act as did a charge against thechild of a violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code that previously was dismissed oramended;

(7) A violation of section 2923.01 of the Revised Codeinvolving a conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(8) A violation of section 2923.03 of the Revised Codeinvolving complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

(E) The director of youth services and the chiefadministrativeofficer of adetention facility, district detentionfacility, school, camp, institution, or otherfacility fordelinquentchildren is not required to comply withthis sectioninrelation to the following acts until thesuperintendentof thebureau of criminalidentification andinvestigation gives agenciesin thejuvenilejustice system, asdefined in section ~~181.51~~ 5502.61 ofthe Revised Code,inthe stateofficial notification that thestate DNA laboratoryis prepared toaccept DNAspecimensof thatnature:

(1) A violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code;

(2) An attempt to commit a violation of section 2903.01 or2903.02 of the Revised Code;

(3) A felony violation of any law that arose out of the samefactsand circumstances and same act as did a charge against thechildof a violation of section 2903.11, 2911.01, 2911.02, or2911.12 ofthe Revised Code that previously was dismissed oramended;

(4) A violation of section 2923.01 of the Revised Codeinvolving a conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(5) A violation of section 2923.03 of the Revised Codeinvolving complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

Sec. 2303.201. (A)(1) The court of common pleas of anycounty may determine that for the efficient operation of thecourtadditional funds are required to computerize the court, tomakeavailable computerized legal research services, or to doboth.Upon making a determination that additional funds arerequired foreither or both of those purposes, the court shallauthorize anddirect the clerk of the court of common pleas tocharge oneadditional fee, not to exceed three dollars, on thefiling of eachcause of action or appeal under divisions (A),(Q), and (U) ofsection 2303.20 of the Revised Code.

(2) All fees collected under division (A)(1) of thissectionshall be paid to the county treasurer. The treasurershall placethe funds from the fees in a separate fund to bedisbursed, uponan order of the court, in an amount not greaterthan the actualcost to the court of procuring and maintainingcomputerization ofthe court, computerized legal researchservices, or both.

(3) If the court determines that the funds in the funddescribed in division (A)(2) of this section are more thansufficient to satisfy the purpose for which the additional feedescribed in division (A)(1) of this section was imposed, thecourt may declare a surplus in the fund and expend those surplusfunds for other appropriate technological expenses of the court.

(B)(1) The court of common pleas of any county maydeterminethat, for the efficient operation of the court,additional fundsare required to computerize the office of theclerk of the courtof common pleas and, upon that determination,authorize and directthe clerk of the court of common pleas tocharge an additionalfee, not to exceed ten dollars, on thefiling of each cause ofaction or appeal, on the filing,docketing, and endorsing of eachcertificate of judgment, or onthe docketing and indexing of eachaid in execution or petitionto vacate, revive, or modify ajudgment under divisions (A), (P),(Q), (T), and (U) of section2303.20 of the Revised Code.Subject to division (B)(2) of thissection, all moneys collectedunder division (B)(1) of thissection shall be paid to the countytreasurer to be disbursed,upon an order of the court of commonpleas and subject toappropriation by the board of countycommissioners, in an amountno greater than the actual cost tothe court of procuring andmaintaining computer systems for theoffice of the clerk of thecourt of common pleas.

(2) If the court of common pleas of a county makes thedetermination described in division (B)(1) of this section, theboard of county commissioners of that county may issue one ormoregeneral obligation bonds for the purpose of procuring andmaintaining the computer systems for the office of the clerk ofthe court of common pleas. In addition to the purposes stated indivision (B)(1) of this section for which the moneys collectedunder that division may be expended, the moneys additionally maybe expended to pay debt charges on and financing costs related toany general obligation bonds issued pursuant to division (B)(2)ofthis section as they become due. General obligation bondsissuedpursuant to division (B)(2) of this section are Chapter133.securities.

(C)Thecourt of common pleas shall collect the sum of~~fifteen~~ twenty-six dollarsasadditional filing fees in each new civil actionor proceedingforthe charitable public purpose of providingfinancialassistanceto legal aid societies that operate withinthe state and to support the office of the state public defender.Thisdivision does not apply to proceedings concerningannulments,dissolutions of marriage, divorces, legal separation,spousalsupport, marital property or separate propertydistribution,support, or other domestic relations matters; to ajuveniledivision of a court of common pleas; to a probatedivision of acourt of common pleas, except that the additionalfiling feesshall apply to name change, guardianship, ~~and~~ adoption, and decedents' estateproceedings; or to an execution on a judgment, proceeding in aidof execution, or other post-judgment proceeding arising out of acivil action. The filing fees required to be collected underthisdivision shall be in addition to any other filing feesimposed inthe action or proceeding and shall be collected at thetime of thefiling of the action or proceeding. The court shallnot waive thepayment of the additional filing fees in a newcivil action orproceeding unless the court waives the advancedpayment of allfiling fees in the action or proceeding. All suchmoneyscollected during a month shall be transmitted on or before thetwentieth day of the following month by the clerk of the court tothetreasurer of state in a manner prescribed by the treasurer of state or by the Ohio legal assistance foundation. The~~moneys then shall be deposited by the~~treasurer of state shall deposit four per cent of the funds collected under this division to the credit of the civil case filing fee fund established under section 120.07 of the Revised Code and ninety-six per cent of the funds collected under this division to thecredit of the legal aid fund establishedunder section 120.52 ofthe Revised Code.

(D) On and after the thirtieth day after December 9, 1994,the court ofcommon pleas shall collect the sumof thirty-twodollars as additional filing fees in each newaction or proceedingfor annulment, divorce, or dissolution ofmarriage for the purposeof funding shelters for victims ofdomestic violence pursuant tosections 3113.35 to 3113.39 of theRevised Code. The filing feesrequired to be collected underthis division shall be in additionto any other filing feesimposed in the action or proceeding andshall be collected at thetime of the filing of the action orproceeding. The court shallnot waive the payment of theadditional filing fees in a newaction or proceeding forannulment, divorce, or dissolution ofmarriage unless the courtwaives the advanced payment of allfiling fees in the action orproceeding. On or before the twentieth day ofeach month, allmoneys collected during the immediately preceding monthpursuantto this divisionshallbe deposited by the clerk of the court intothe county treasuryin the special fund used for deposit ofadditional marriagelicense fees as described in section 3113.34of the Revised Code. Upon their deposit into the fund, the moneysshall be retainedin the fund and expended only as described insection 3113.34 ofthe Revised Code.

(E)(1) The court of common pleas may determine that, for theefficient operation of the court, additional funds are necessaryto acquireand pay for special projects of the court, including,but not limited to, theacquisition of additional facilities orthe rehabilitation of existingfacilities, the acquisition ofequipment, the hiring and training of staff,community serviceprograms, mediation or dispute resolution services, theemploymentof magistrates, the training and education of judges, actingjudges, and magistrates, and other related services. Upon thatdetermination,the court by rule may charge a fee, in addition toall other court costs, onthe filing of each criminal cause, civilaction or proceeding, or judgment byconfession.

If the court of common pleas offers a special program orservice in casesof a specific type, the court by rule may assessan additional charge in acase of that type, over and above courtcosts, to cover the special program orservice. The court shalladjust the special assessment periodically, but notretroactively,so that the amount assessed in those cases does not exceed theactual cost of providing the service or program.

All moneys collected under division (E) of this section shallbepaid to the county treasurer for deposit into either a generalspecialprojects fund or a fund established for a specific specialproject. Moneysfrom a fund of that nature shall be disbursedupon an order of the court in anamount no greater than the actualcost to the court of a project. If aspecific fund is terminatedbecause of the discontinuance of a program orservice establishedunder division (E) of this section, the court mayorder thatmoneys remaining in the fund be transferred to an accountestablished under this division for a similar purpose.

(a)"Criminal cause" means a charge alleging the violationofastatute or ordinance, or subsection of a statute orordinance,that requires aseparate finding of fact or a separateplea beforedisposition and of whichthe defendant may be foundguilty,whether filed as part of a multiple chargeon a singlesummons,citation, or complaint or as a separate charge on asinglesummons, citation, or complaint."Criminal cause" does notincludeseparate violations of the same statute or ordinance, orsubsection of thesame statute or ordinance, unless each charge isfiled on a separate summons,citation, or complaint.

(b)"Civil action or proceeding" means any civil litigationthatmust be determined by judgment entry.

(1)"Chiropractic claim,""medical claim," and"optometricclaim"have the same meanings as in section2305.113 ofthe RevisedCode.

(2)"Dental claim" has the same meaning as in section2305.113 of the RevisedCode, except that it does not include anyclaim arising out of a dentaloperation or any derivative claimfor relief that arises out of a dentaloperation.

(3)"Governmental health care program" has the same meaningas insection4731.65 of the Revised Code.

(4)"Health care facility or location" means a hospital, clinic, ambulatory surgical facility, office of a health care professional or associated group of health care professionals, training institution for health care professionals, or any other place where medical, dental, or other health-related diagnosis, care, or treatment is provided to a person.

(5) "Health care professional" means any of the followingwhoprovide medical, dental, or other health-relateddiagnosis,care,or treatment:

(a) Physicians authorized under Chapter 4731. of the RevisedCode to practicemedicine and surgery or osteopathic medicine andsurgery;

(b) Registered nurses and licensed practical nurses licensedunder Chapter4723. of theRevised Code and individuals who hold a certificate of authority issued under that chapter that authorizes the practice of nursing as a certified registered nurse anesthetist, clinical nurse specialist, certified nurse-midwife, or certified nurse practitioner;

(d) Dentists and dental hygienists licensed under Chapter4715. of theRevised Code;

(e) Physical therapists, physical therapist assistants, occupational therapists, and occupational therapy assistants licensed under Chapter 4755. of theRevisedCode;

(h) Podiatrists authorized under Chapter 4731. of theRevised Code topractice podiatry;

(k) Emergency medical technicians-basic, emergency medicaltechnicians-intermediate, and emergency medicaltechnicians-paramedic, certified under Chapter 4765. of theRevised Code;

(l) Respiratory care professionals licensed under Chapter 4761. of the Revised Code;

(m) Speech-language pathologists and audiologists licensed under Chapter 4753. of the Revised Code.

(6)"Health care worker" means a person other than a healthcareprofessional who provides medical, dental, or otherhealth-related care ortreatment under the direction of a healthcare professional with the authorityto direct that individual'sactivities, includingmedical technicians, medical assistants,dental assistants,orderlies, aides, and individuals acting insimilar capacities.

(7)"Indigent and uninsured person" means a person who meetsall of thefollowing requirements:

(a) The person's income is not greater than two hundred percent of the current poverty line as defined by theUnited States office ofmanagement and budget and revised inaccordance with section 673(2) of the"Omnibus BudgetReconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, asamended.

(b) The person is not eligible to receive medical assistanceunder Chapter5111.~~, disability medical assistanceunder Chapter 5115.~~ of theRevised Code, or assistance under anyother governmental health careprogram.

(i) The person is not a policyholder, certificateholder,insured, contract holder, subscriber, enrollee, member,beneficiary, or other covered individual under a health insuranceor health care policy, contract, or plan.

(ii) The person is a policyholder, certificate holder,insured, contract holder, subscriber, enrollee, member,beneficiary, or other covered individual under a health insuranceor health care policy, contract, or plan, but the insurer,policy,contract, or plan denies coverage or is the subject ofinsolvencyor bankruptcy proceedings in any jurisdiction.

(8) "Nonprofit health care referral organization" means an entity that is not operated for profit and refers patients to, or arranges for the provision of, health-related diagnosis, care, or treatment by a health care professional or health care worker.

(9)"Operation" means any procedure that involves cutting orotherwiseinfiltrating human tissue by mechanical means, includingsurgery, lasersurgery, ionizing radiation, therapeuticultrasound, or the removal ofintraocular foreign bodies."Operation" does not include the administrationof medication byinjection, unless the injection is administered inconjunctionwith a procedure infiltrating human tissue by mechanical meansother than the administration of medicine by injection. "Operation" does not include routine dental restorative procedures, the scaling of teeth, or extractions of teeth that are not impacted.

(10)"Tort action" means a civil action fordamages forinjury, death, or loss to person or property otherthan a civilaction for damages for a breach of contract oranother agreementbetween persons or government entities.

(11)"Volunteer" means an individual who provides anymedical, dental, orother health-care related diagnosis, care, ortreatment withoutthe expectation of receiving and without receiptof any compensation or otherform of remuneration from an indigentand uninsured person,another person on behalf of an indigent anduninsured person, any health care facility or location, any nonprofit health care referral organization, or anyother person or government entity.

(12) "Community control sanction" has the same meaning as in section 2929.01 of the Revised Code.

(13) "Deep sedation" means a drug-induced depression of consciousness during which a patient cannot be easily aroused but responds purposefully following repeated or painful stimulation, a patient's ability to independently maintain ventilatory function may be impaired, a patient may require assistance in maintaining a patent airway and spontaneous ventilation may be inadequate, and cardiovascular function is usually maintained.

(14) "General anesthesia" means a drug-induced loss of consciousness during which a patient is not arousable, even by painful stimulation, the ability to independently maintain ventilatory function is often impaired, a patient often requires assistance in maintaining a patent airway, positive pressure ventilation may be required because of depressed spontaneous ventilation or drug-induced depression of neuromuscular function, and cardiovascular function may be impaired.

(B)(1) Subject to divisions (F) and (G)(3) of this section,a health careprofessional who is a volunteer and complies withdivision (B)(2) of thissection is not liable in damages to anyperson or government entity in a tortor other civil action,including an action on a medical, dental,chiropractic,optometric, or other health-related claim, for injury, death, orloss to person or property that allegedly arises from an action oromission of the volunteer in the provision to an indigent and uninsured person ofmedical, dental, or otherhealth-related diagnosis, care, ortreatment, including the provision of samples of medicine andother medicalproducts, unless the action or omission constituteswillful or wantonmisconduct.

(2) To qualify for the immunity described in division(B)(1)of this section, a health care professional shalldo all of thefollowing prior to providing diagnosis, care, or treatment:

(a) Determine, in good faith, that the indigent anduninsuredperson is mentally capable of giving informed consent tothe provision of the diagnosis, care, or treatment and isnotsubject to duress or under undue influence;

(b) Inform the person of the provisions of this section, including notifying the person that, by giving informed consent to the provision of the diagnosis, care, or treatment, the person cannot hold the health care professional liable for damages in a tort or other civil action, including an action on a medical, dental, chiropractic, optometric, or other health-related claim, unless the action or omission of the health care professional constitutes willful or wanton misconduct;

(c) Obtain the informed consent of the person and a writtenwaiver, signed by the person or byanother individual on behalf ofand in the presence of the person, that statesthat the person ismentally competent to give informed consent and,without beingsubject to duress or under undue influence, givesinformed consentto the provision of the diagnosis, care, ortreatment subject tothe provisions of this section. A written waiver under division (B)(2)(c) of this section shall state clearly and in conspicuous type that the person or other individual who signs the waiver is signing it with full knowledge that, by giving informed consent to the provision of the diagnosis, care, or treatment, the person cannot bring a tort or other civil action, including an action on a medical, dental, chiropractic, optometric, or other health-related claim, against the health care professional unless the action or omission of the health care professional constitutes willful or wanton misconduct.

(3) A physician or podiatrist who is not coveredby medicalmalpractice insurance, but complies with division(B)(2) of thissection, is not required to comply with division (A) of section4731.143 of the Revised Code.

(C) Subject to divisions (F) and (G)(3) of this section,health care workerswho are volunteers are not liable in damagesto any person or governmententity in a tort or other civilaction, including an action upon a medical,dental, chiropractic,optometric, or other health-related claim, for injury,death, orloss to person or property that allegedly arises froman action oromission of the health care worker in theprovision to an indigent anduninsuredperson of medical, dental, or other health-related diagnosis,care,or treatment, unless the action or omission constituteswillful or wantonmisconduct.

(D) Subject to divisions (F) and (G)(3) of this section, a nonprofit health care referral organization is not liable in damages to any person or government entity in a tort or other civil action, including an action on a medical, dental, chiropractic, optometric, or other health-related claim, for injury, death, or loss to person or property that allegedly arises from an action or omission of the nonprofit health care referral organization in referring indigent and uninsured persons to, or arranging for the provision of, medical, dental, or other health-related diagnosis, care, or treatment by a health care professional described in division (B)(1) of this section or a health care worker described in division (C) of this section, unless the action or omission constitutes willful or wanton misconduct.

(E) Subject to divisions (F) and (G)(3) of this section andto the extent that the registration requirements of section 3701.071of the Revised Code apply, a health care facility or location associatedwith a health care professionaldescribed in division (B)(1) of this section, a health careworker described in division (C) of this section, or a nonprofit health care referral organization described in division (D) of this section isnot liable indamages to any person or government entity in a tort or othercivil action, including an action on a medical, dental,chiropractic,optometric, orother health-related claim, forinjury, death, or loss to person or propertythat allegedly arisesfrom an action or omission of the health careprofessional orworker or nonprofit health care referral organization relative to the medical,dental,or other health-related diagnosis, care, or treatment provided to anindigentand uninsured person on behalf of or at the health care facility or location, unless the action or omissionconstitutes willful orwanton misconduct.

(F)(1) Except as provided in division (F)(2) of thissection, the immunities provided by divisions(B), (C), (D), and (E) ofthis section are notavailable to a health care professional, health care worker, nonprofit health care referral organization, or health care facility or location if, at the time of an allegedinjury, death, or loss to person or property, the health care professionals or health care workers involved areproviding one of the following:

(a) Any medical, dental, or other health-related diagnosis,care,or treatment pursuantto a community service work orderentered by a court under division(B) of section 2951.02 of theRevisedCode or imposed by a court as a community controlsanction;

(i) The operation requires the administration of deep sedation or general anesthesia.

(iii) The individual involved is a health care professional, and the operation is beyond the scope of practice or the education, training, and competence, as applicable, of the health care professional.

(2) Division (F)(1) of this section does not apply when a health care professional or health care worker provides medical, dental, or other health-related diagnosis, care, ortreatment that isnecessary to preserve the life of a person in amedical emergency.

(G)(1) This section does not create a new causeof action orsubstantive legal right against a health care professional,healthcare worker, nonprofit health care referral organization, or health care facility or location.

(2) This section does not affect any immunities fromcivilliability or defenses established by another section of theRevised Code or available at common law to whicha health care professional, health care worker, nonprofit health care referral organization, orhealth care facility or location may be entitled inconnection with theprovision of emergency or other medical, dental, or other health-related diagnosis,care, ortreatment.

(3) This section does not grant an immunity from tortorother civil liability to a health care professional, health care worker, nonprofit health care referral organization, orhealthcare facility or location for actions that are outside the scope ofauthority of healthcare professionals or health care workers.

(4) This section does not affect any legal responsibility ofahealth care professional, health care worker, or nonprofit health care referral organization to comply withany applicable law of this state or rule of an agency of thisstate.

(5) This section does not affect any legalresponsibility ofa health care facility or location to complywith anyapplicable law of this state, rule of an agency of thisstate, orlocal code, ordinance, or regulation that pertains toor regulatesbuilding, housing, air pollution, water pollution,sanitation,health, fire, zoning, or safety.

Sec. 2305.2341. (A) The medical liability insurance reimbursement program is hereby established. Free clinics, including the clinics' staff and volunteer health care professionals and volunteer health care workers, may participate in the medical liability insurance reimbursement program established by this section. The coverage provided under the program shall be limited to claims that arise out of the diagnosis, treatment, and care of patients of free clinics, as defined in division (D)(1) of this section.

(B) A free clinic is eligible to receive reimbursement under the medical liability insurance reimbursement program for the premiums that the clinic pays for medical liability insurance coverage for the clinic, its staff, and volunteer health care professionals and health care workers. Free clinics shall register with the department of health by the thirty-first day of January of each year in order to participate in and to obtain reimbursement under the program. Free clinics shall provide all of the following to the department of health at the time of registration:

(1) A statement of the number of volunteer and paid health care professionals and health care workers providing health care services at the free clinic at that time;

(2) A statement of the number of health care services rendered by the free clinic during the previous fiscal year;

(3) A signed form acknowledging that the free clinic agrees to follow its medical liability insurer's risk management and loss prevention policies;

(4) A copy of the medical liability insurance policy purchased by the free clinic, or the policy's declaration page, and documentation of the premiums paid by the clinic.

(C) The department of health shall reimburse free clinics participating in the professional liability insurance reimbursement program for eighty per cent of the premiums that the free clinic pays for medical liability insurance coverage up to twenty thousand dollars. Appropriations to the department of health may be made from the general fund of the state for this purpose.

(1) "Free clinic" means a nonprofit organization exempt from federal income taxation under section 501(c)(3) of the "Internal Revenue Code of 1986," as amended, or a program component of a nonprofit organization, whose primary mission is to provide health care services for free or for a minimal administrative fee to individuals with limited resources. A free clinic facilitates the delivery of health care services through the use of volunteer health care professionals and voluntary care networks. For this purpose, a free clinic shall comply with all of the following:

(a) If a free clinic does request a minimal administrative fee, a free clinic shall not deny an individual access to its health care services based on an individual's ability to pay the fee.

(c) Free clinics shall not perform operations, as defined by divisions (A)(9) and (F)(1)(b) of section 2305.234 of the Revised Code.

A clinic is not a free clinic if the clinic bills medicaid, medicare, or other third-party payers for health care services rendered at the clinic, and receives twenty-five per cent or more of the clinic's annual revenue from the third-party payments.

(2) "Health care professional" and "health care worker" have the same meanings as in section 2305.234 of the Revised Code.

Sec. 2307.65. (A) The attorney general may bring a civil action in the Franklin county court of common pleas on behalf of the department of job and family services, and the prosecuting attorney of the county in which a violation of division (B) of section 2913.401 of the Revised Code occurs may bring a civil action in the court of common pleas of that county on behalf of the county department of job and family services, against a person who violates division (B) of section 2913.401 of the Revised Code for the recovery of the amount of benefits paid on behalf of a person that either department would not have paid but for the violation minus any amounts paid in restitution under division (C)(2) of section 2913.401 of the Revised Code and for reasonable attorney's fees and all other fees and costs of litigation.

(B) In a civil action brought under division (A) of this section, if the defendant failed to disclose a transfer of property in violation of division (B)(3) of section 2913.401 of the Revised Code, the court may also grant any of the following relief to the extent permitted by 42 U.S.C. 1396p:

(1) Avoidance of the transfer of property that was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code to the extent of the amount of benefits the department would not have paid but for the violation;

(2) An order of attachment or garnishment against the property in accordance with Chapter 2715. or 2716. of the Revised Code;

(3) An injunction against any further disposition by the transferor or transferee, or both, of the property the transfer of which was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code or against the disposition of other property by the transferor or transferee;

(4) Appointment of a receiver to take charge of the property transferred or of other property of the transferee;

(C) To the extent permitted by 42 U.S.C. 1396p, the department of job and family services or the county department of job and family services may enforce a judgment obtained under this section by levying on property the transfer of which was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code or on the proceeds of the transfer of that property in accordance with Chapter 2329. of the Revised Code.

(D) The remedies provided in divisions (B) and (C) of this section do not apply if the transferee of the property the transfer of which was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code acquired the property in good faith and for fair market value.

(E) The remedies provided in this section are not exclusive and do not preclude the use of any other criminal or civil remedy for any act that is in violation of section 2913.401 of the Revised Code.

(F) Amounts of medicaid benefits paid and recovered in an action brought under this section shall be credited to the general revenue fund, and any applicable federal share shall be returned to the appropriate agency or department of the United States.

Sec. 2329.66. (A) Every person who is domiciled in thisstate may hold property exempt from execution, garnishment,attachment, or sale to satisfy a judgment or order, as follows:

(1)(a) In the case of a judgment or order regarding moneyowed for health care services rendered or health care suppliesprovided to the person or a dependent of the person, one parceloritem of real or personal property that the person or adependentof the person uses as a residence. Division (A)(1)(a)of thissection does not preclude, affect, or invalidate thecreationunder this chapter of a judgment lien upon the exemptedpropertybut only delays the enforcement of the lien until theproperty issold or otherwise transferred by the owner or inaccordance withother applicable laws to a person or entity otherthan thesurviving spouse or surviving minor children of thejudgmentdebtor. Every person who is domiciled in this state mayholdexempt from a judgment lien created pursuant to division(A)(1)(a)of this section the person's interest, not to exceed fivethousanddollars, in the exempted property.

(b) In the case of all other judgments and orders, theperson's interest, not to exceed five thousand dollars, in oneparcel or item of real or personal property that the person or adependent of the person uses as a residence.

(2) The person's interest, not to exceed one thousanddollars, in onemotor vehicle;

(3) The person's interest, not to exceed two hundreddollarsin any particular item, in wearing apparel, beds, andbedding, andthe person's interest, not to exceed three hundreddollars in eachitem, in one cooking unit and one refrigerator orother foodpreservation unit;

(4)(a) The person's interest, not to exceed four hundreddollars, in cash on hand, money due and payable, money to becomedue within ninety days, tax refunds, and money on deposit with abank, savings and loan association, credit union, public utility,landlord, or other person. Division (A)(4)(a) of this sectionapplies only inbankruptcy proceedings. This exemption mayinclude the portionof personal earnings that is not exempt underdivision (A)(13) ofthis section.

(b) Subject to division (A)(4)(d) of this section, theperson's interest, not to exceed two hundred dollars in anyparticular item, in household furnishings, household goods,appliances, books, animals, crops, musical instruments, firearms,and hunting and fishing equipment, that are held primarily forthepersonal, family, or household use of the person;

(c) Subject to division (A)(4)(d) of this section, theperson's interest in one or more items of jewelry, not to exceedfour hundred dollars in one item of jewelry and not to exceed twohundred dollars in every other item of jewelry;

(d) Divisions (A)(4)(b) and (c) of this section do notinclude items of personal property listed in division (A)(3) ofthis section.

If the person does not claim an exemption under division(A)(1) of this section, the total exemption claimed underdivision(A)(4)(b) of this section shall be added to the totalexemptionclaimed under division (A)(4)(c) of this section, andthe totalshall not exceed two thousand dollars. If the personclaims anexemption under division (A)(1) of this section, thetotalexemption claimed under division (A)(4)(b) of this sectionshallbe added to the total exemption claimed under division(A)(4)(c)of this section, and the total shall not exceed onethousand fivehundred dollars.

(5) The person's interest, not to exceed an aggregate ofseven hundred fifty dollars, in all implements, professionalbooks, or tools of the person's profession, trade, or business,includingagriculture;

(6)(a) The person's interest in a beneficiary fund setapart, appropriated, or paid by a benevolent association orsociety, as exempted by section 2329.63 of the Revised Code;

(b) The person's interest in contracts of life orendowmentinsurance or annuities, as exempted by section 3911.10of theRevised Code;

(c) The person's interest in a policy of group insuranceorthe proceeds of a policy of group insurance, as exempted bysection 3917.05 of the Revised Code;

(d) The person's interest in money, benefits, charity,relief, or aid to be paid, provided, or rendered by a fraternalbenefit society, as exempted by section 3921.18 of the RevisedCode;

(e) The person's interest in the portion of benefits underpolicies of sickness and accident insurance and inlumpsum payments for dismemberment and other losses insured underthosepolicies, as exempted by section 3923.19 of the RevisedCode.

(8) The person's interest in a burial lot, including, butnot limited to, exemptions under section 517.09 or 1721.07 of theRevised Code;

(a) Moneys paid or payable for living maintenance orrights,as exempted by section 3304.19 of the Revised Code;

(d) Cash assistance payments under the Ohio works firstprogram, as exemptedbysection 5107.75 of the Revised Code;

(e)Benefits and services under the prevention, retention,and contingency program, as exempted by section 5108.08 of theRevised Code;

(f) Disability financial assistance payments, as exempted by section 5115.06 of the Revised Code.

(10)(a) Except in cases in which the person was convictedofor pleaded guilty to a violation of section 2921.41 of theRevisedCode and in which an order for the withholding ofrestitution frompayments was issued under division (C)(2)(b) ofthat section or incases in which an order for withholding was issued undersection2907.15 of the Revised Code, and only to theextent providedinthe order,andexcept as provided in sections 3105.171, 3105.63,3119.80, 3119.81, 3121.02, 3121.03, and3123.06 of the RevisedCode, the person's right to a pension,benefit, annuity,retirement allowance, or accumulatedcontributions, the person'sright to a participant account in anydeferred compensationprogram offered by the Ohio publicemployees deferred compensationboard, a government unit, or amunicipal corporation, or theperson's other accrued or accruingrights, as exempted by section145.56, 146.13, 148.09,742.47,3307.41, 3309.66, or 5505.22 ofthe Revised Code, andtheperson's right to benefits from the Ohiopublic safety officersdeath benefitfund;

(b) Except as provided in sections 3119.80, 3119.81,3121.02, 3121.03, and 3123.06 ofthe Revised Code, the person'sright to receive a payment underany pension, annuity, or similarplan or contract, not includinga payment from a stock bonus orprofit-sharing plan or a paymentincluded in division (A)(6)(b) or(10)(a) of this section, onaccount of illness, disability, death,age, or length of service,to the extent reasonably necessary forthe support of the personand any of the person's dependents,except if all the followingapply:

(i) The plan or contract was established by or under theauspices of an insider that employed the person at the time theperson's rights under the plan or contract arose.

(iii) The plan or contract is not qualified under the"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, asamended.

(c) Except for any portion of the assets that weredepositedfor the purpose of evading the payment of any debt andexcept asprovided in sections 3119.80, 3119.81,3121.02, 3121.03, and3123.06 of the RevisedCode, the person's right in the assets heldin, or to receiveany payment under, any individual retirementaccount,individual retirement annuity,"Roth IRA," or educationindividual retirementaccount that providesbenefits by reason ofillness, disability, death, or age, to the extentthat the assets,payments, or benefits described in division(A)(10)(c) of thissection are attributableto any of the following:

(i) Contributions of the person that were lessthan or equalto the applicable limits on deductiblecontributions to anindividual retirement account or individualretirement annuity inthe year that the contributions were made,whether or not theperson was eligible to deduct thecontributions on the person'sfederal tax return for the year inwhich the contributions weremade;

(ii) Contributions of the person that were lessthan orequal to the applicable limits on contributions to aRoth IRA oreducation individualretirement account in the year that thecontributions were made;

(iii) Contributions of the person that are withintheapplicable limits on rollover contributions undersubsections 219,402(c), 403(a)(4),403(b)(8), 408(b), 408(d)(3),408A(c)(3)(B),408A(d)(3),and 530(d)(5) of the"Internal Revenue Code of 1986,"100Stat. 2085, 26U.S.C.A. 1, as amended.

(d) Except for any portion of theassets that were depositedfor the purpose of evading thepayment of any debt and except asprovided in sections3119.80, 3119.81, 3121.02, 3121.03, and3123.06 of the Revised Code, the person'sright in the assets heldin, or to receive any payment under,any Keogh or"H.R. 10" planthat provides benefitsby reason of illness, disability, death, orage, to the extent reasonablynecessary for the support of theperson and any of the person'sdependents.

(11) The person's right to receive spousal support, childsupport, an allowance, or other maintenance to the extentreasonably necessary for the support of the person and any of theperson'sdependents;

(12) The person's right to receive, or moneys receivedduring the preceding twelve calendar months from, any of thefollowing:

(a) An award of reparations under sections 2743.51 to2743.72 of the Revised Code, to the extent exempted by division(D) of section 2743.66 of the Revised Code;

(b) A payment on account of the wrongful death of anindividual of whom the person was a dependent on the date of theindividual's death, to the extent reasonably necessary for thesupport of the person and any of the person's dependents;

(c) Except in cases in which the person who receives thepayment is aninmate, as defined in section 2969.21 of the RevisedCode, and in which thepayment resulted from a civil action orappeal against a government entity oremployee, as defined insection 2969.21 of the Revised Code, a payment, not toexceed fivethousand dollars, onaccount of personal bodily injury, notincluding pain andsuffering or compensation for actual pecuniaryloss, of theperson or an individual for whom the person is adependent;

(d) A payment in compensation for loss of future earningsofthe person or an individual of whom the person is or was adependent, to the extent reasonably necessary for the support ofthe debtor and any of the debtor's dependents.

(13) Except as provided in sections 3119.80, 3119.81,3121.02, 3121.03, and 3123.06 of the RevisedCode, personalearnings ofthe person owed to theperson for services in anamount equal to the greater of the followingamounts:

(a) If paid weekly, thirty times the current federalminimumhourly wage; if paid biweekly, sixty times the currentfederalminimum hourly wage; if paid semimonthly, sixty-fivetimes thecurrent federal minimum hourly wage; or if paidmonthly, onehundred thirty times the current federal minimumhourly wage thatis in effect at the time the earnings arepayable, as prescribedby the"Fair Labor Standards Act of 1938,"52 Stat. 1060, 29U.S.C. 206(a)(1), as amended;

(14) The person's right in specific partnership property,asexempted by division (B)(3) of section 1775.24 of the RevisedCode;

(15) A seal and official register of a notary public, asexempted by section 147.04 of the Revised Code;

(16) The person's interest in a tuition ~~credit~~ unit or a paymentunder section3334.09 of the Revised Code pursuant to a tuition~~credit~~ payment contract, as exemptedby section 3334.15 of the RevisedCode;

(17) Any other property that is specifically exempted fromexecution, attachment, garnishment, or sale by federal statutesother than the"Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11U.S.C.A. 101, as amended;

(18) The person's interest, not to exceed four hundreddollars, in any property, except that division (A)(18) of thissection appliesonly in bankruptcy proceedings.

(1)"Disposable earnings" means net earnings after thegarnishee has made deductions required by law, excluding thedeductions ordered pursuant to section 3119.80, 3119.81,3121.02,3121.03, or 3123.06 of theRevised Code.

(a) If the person who claims an exemption is anindividual,a relative of the individual, a relative of a generalpartner ofthe individual, a partnership in which the individualis a generalpartner, a general partner of the individual, or acorporation ofwhich the individual is a director, officer, or incontrol;

(b) If the person who claims an exemption is acorporation,a director or officer of the corporation; a personin control ofthe corporation; a partnership in which thecorporation is ageneral partner; a general partner of thecorporation; or arelative of a general partner, director,officer, or person incontrol of the corporation;

(c) If the person who claims an exemption is apartnership,a general partner in the partnership; a generalpartner of thepartnership; a person in control of thepartnership; a partnershipin which the partnership is a generalpartner; or a relative in, ageneral partner of, or a person incontrol of the partnership;

(i) The entity directly or indirectly owns, controls, orholds with power to vote, twenty per cent or more of theoutstanding voting securities of the person who claims anexemption, unless the entity holds the securities in a fiduciaryor agency capacity without sole discretionary power to vote thesecurities or holds the securities solely to secure to debt andthe entity has not in fact exercised the power to vote.

(ii) The entity is a corporation, twenty per cent or moreofwhose outstanding voting securities are directly or indirectlyowned, controlled, or held with power to vote, by the person whoclaims an exemption or by an entity to which division(B)(2)(d)(i)of this section applies.

(iii) A person whose business is operated under a lease oroperating agreement by the person who claims an exemption, or aperson substantially all of whose business is operated under anoperating agreement with the person who claims an exemption.

(iv) The entity operates the business or all orsubstantially all of the property of the person who claims anexemption under a lease or operating agreement.

(e) An insider, as otherwise defined in this section, of aperson or entity to which division (B)(2)(d)(i), (ii), (iii), or(iv) of this section applies, as if the person or entity were aperson who claims an exemption;

(3)"Participant account" has the same meaning as insection148.01 of the Revised Code.

(4)"Government unit" has the same meaning as in section148.06 of the Revised Code.

(1) In bankruptcy proceedings, as of the date a petitionisfiled with the bankruptcy court commencing a case under Title11of the United States Code;

(2) In all cases other than bankruptcy proceedings, as ofthe date of an appraisal, if necessary under section 2329.68 ofthe Revised Code, or the issuance of a writ of execution.

An interest, as determined under division (C)(1) or (2) ofthis section, shall not include the amount of any lien otherwisevalid pursuant to section 2329.661 of the Revised Code.

Sec. 2743.191. (A)(1) There is hereby created in the statetreasury the reparations fund, which shall be used only for thefollowing purposes:

(b) Thecompensation of anypersonnel needed by the attorneygeneral toadminister sections2743.51 to 2743.72 of the RevisedCode;

(d) Other administrative costs of hearing anddeterminingclaims for an award of reparations by the attorney general;

(e) The costs ofadministering sections 2907.28 and 2969.01to 2969.06 of theRevised Code;

(f) The costs of investigation and decision-making ascertified by theattorney general;

(g) The provision of state financial assistance tovictimassistance programs in accordance with sections 109.91 and109.92of the Revised Code;

(h) The costs of paying the expensesof sex offense-relatedexaminations and antibiotics pursuant tosection 2907.28 of theRevised Code;

(i) The cost of printing and distributingthe pamphletprepared by the attorney general pursuant to section109.42 of theRevised Code;

(j) Subject to division (D) ofsection 2743.71 of the RevisedCode, the costs associated withthe printing and providing ofinformation cards or other printedmaterials to law enforcementagencies and prosecuting authoritiesand with publicizing theavailability of awards of reparationspursuant to section 2743.71of the Revised Code;

(k) The payment of costs of administering a DNA specimencollection procedure pursuant to sections 2152.74 and 2901.07 of the RevisedCode, of performing DNA analysis of thoseDNAspecimens, and of entering the resulting DNA records regardingthose analyses into theDNA database pursuant to section 109.573of the Revised Code;

(l) The payment of actual costs associated with initiatives by the attorney general for the apprehension, prosecution, and accountability of offenders, and the enhancing of services to crime victims. The amount of payments made pursuant to division (A)(1)(l) of this section during any given fiscal year shall not exceed five per cent of the balance of the reparations fund at the close of the immediately previous fiscal year;

(m) The costs of administering the adult parole authority's supervision of sexually violent predators with an active global positioning system device pursuant to section 2971.05 of the Revised Code.

(2) All costs paidpursuant to section 2743.70 of the RevisedCode, theportions of license reinstatement fees mandated bydivision(F)(2)(b) of section 4511.191 of the Revised Code to becreditedto the fund, the portions of the proceeds of the sale ofaforfeited vehicle specified in division (C)(2) of section4503.234 of the Revised Code, paymentscollected by the departmentof rehabilitation and correction from prisonerswho voluntarilyparticipate in an approved work and training program pursuanttodivision (C)(8)(b)(ii) of section 5145.16of the Revised Code, andall moneyscollected by thestate pursuant to its right ofsubrogation provided in section2743.72 of the Revised Code shallbe deposited in the fund.

(B) In making an award of reparations, the attorneygeneralshallrender the award against the state. The awardshall beaccomplished only through the following procedure,and thefollowing proceduremay be enforced by writ of mandamus directedto the appropriateofficial:

(1) The attorney general shall providefor payment of theclaimant or providers in the amountof the award only if the amount of the award is fifty dollars or more.

(2) The expense shall be charged against all availableunencumbered moneys in the fund.

(3) If sufficientunencumbered moneys do not exist in thefund, the attorneygeneral shall makeapplication for payment ofthe award out of the emergencypurposes account or any otherappropriation for emergencies orcontingencies, and payment out ofthis account or otherappropriation shall be authorized if thereare sufficient moneysgreater than the sum total of then pendingemergency purposesaccount requests or requests for releases fromthe otherappropriations.

(4) If sufficient moneys do not exist in the account oranyother appropriation for emergencies or contingencies to paytheaward, the attorney general shall request thegeneral assembly tomake an appropriation sufficient to pay the award, and no paymentshall be made until the appropriation has been made. Theattorneygeneral shall make this appropriation requestduring the currentbiennium and during each succeeding biennium until a sufficientappropriation is made. If, prior to the time that anappropriation is made by the general assembly pursuant to thisdivision, the fund has sufficient unencumbered funds to pay theaward or part of the award, the available funds shall be used topay the award or part of the award, and the appropriation requestshall be amended to request only sufficient funds to pay thatpartof the award that is unpaid.

(C) The attorney general shall not make payment on adecisionor order granting an award until all appealshave beendetermined and all rights to appeal exhausted, exceptas otherwiseprovided in this section. If any party to a claimfor an award ofreparations appeals from only a portion of anaward, and aremaining portion provides for the payment of moneyby the state,that part of the award calling for the payment of money by thestate and not a subject of the appeal shall be processed forpayment as described in this section.

(D) The attorney general shall prepare itemized bills forthe costs ofprinting anddistributing the pamphlet the attorneygeneral preparespursuant to section 109.42 of the Revised Code.The itemized bills shall setforth the nameand address of thepersons owed the amounts set forth in them.

(E) As used in this section, "DNA analysis" and "DNAspecimen"have the same meanings as in section 109.573 of theRevised Code.

Sec. 2744.05. Notwithstanding any other provisions of theRevised Code or rules of a court to the contrary, in an actionagainst a political subdivision to recover damages for injury,death, or loss to person or property caused by an act oromissionin connection with a governmental or proprietaryfunction:

(B)(1) If a claimant receives or is entitled to receivebenefits for injuries or loss allegedly incurred from a policy orpolicies of insurance or any other source, the benefits shall bedisclosed to the court, and the amount of the benefits shall bededucted from any award against a political subdivisionrecoveredby that claimant. No insurer or other person isentitled to bringan action under a subrogation provision in aninsurance or othercontract against a political subdivision withrespect to thosebenefits.

The amount of the benefits shall be deductedfrom an awardagainst a political subdivision under division(B)(1) of thissection regardless of whether the claimant may beunder anobligation to pay back the benefits upon recovery, inwhole or inpart, for the claim. A claimant whose benefits havebeen deductedfrom an award under division (B)(1) of this sectionis notconsidered fully compensated and shall not be required toreimburse a subrogated claim for benefits deducted from an awardpursuant to division (B)(1) of this section.

(2) Nothing in division(B)(1) of this section shall beconstrued to do either ofthe following:

(a) Limit the rights ofa beneficiary under a lifeinsurancepolicy or the rights of sureties under fidelity orsurety bonds;

(b) Prohibit the department of job and family servicesfromrecoveringfrom the political subdivision, pursuant tosection5101.58 of the RevisedCode, the cost ofmedicalassistancebenefits provided under Chapter 5107., or 5111.~~, or5115.~~of theRevised Code.

(C)(1) There shall not be any limitation on compensatorydamages that represent the actual loss of the person who isawarded the damages. However, except in wrongful death actionsbrought pursuant to Chapter 2125. of the Revised Code, damagesthat arise from the same cause of action, transaction oroccurrence, or series of transactions or occurrences and that donot represent the actual loss of the person who is awarded thedamages shall not exceed two hundred fifty thousand dollars infavor of any one person. The limitation on damages that do notrepresent the actual loss of the person who is awarded thedamagesprovided in this division does not apply to court coststhat areawarded to a plaintiff, or to interest on a judgmentrendered infavor of a plaintiff, in an action against apoliticalsubdivision.

(2) As used in this division, "the actual loss of thepersonwho is awarded the damages" includes all of the following:

(a) All wages, salaries, or other compensation lost by theperson injured as a result of the injury, including wages,salaries, or other compensation lost as of the date of a judgmentand future expected lost earnings of the person injured;

(b) All expenditures of the person injured or anotherpersonon behalf of the person injured for medical care ortreatment, forrehabilitation services, or for other care, treatment, services,products, or accommodations that were necessary because of theinjury;

(c) All expenditures to be incurred in the future, asdetermined by the court, by the person injured or another personon behalf of the person injured for medical care ortreatment, forrehabilitationservices, or for other care, treatment, services,products, oraccommodations that will be necessary because of theinjury;

(d) All expenditures of a person whose property wasinjuredor destroyed or of another person on behalf of theperson whoseproperty was injured or destroyed in order to repair orreplacethe property that was injured or destroyed;

(e) All expenditures of the person injured or of the personwhoseproperty was injured or destroyed or of another person onbehalfof the person injured or of the person whose property wasinjured ordestroyed in relation to the actual preparation orpresentation ofthe claim involved;

(f) Any other expenditures of the person injured or of thepersonwhose property was injured or destroyed or of anotherperson on behalfof the person injured or of the person whoseproperty was injured ordestroyed that the court determinesrepresent an actual lossexperienced because of the personal orproperty injury orproperty loss.

"The actual loss of the person who is awarded the damages"does not include any fees paid or owed to an attorney for anyservices rendered in relation to a personal or property injury orproperty loss, and does not include any damages awarded for painand suffering, for the loss of society, consortium,companionship,care, assistance, attention, protection, advice,guidance,counsel, instruction, training, or education of thepersoninjured, for mental anguish, or for any other intangibleloss.

Sec. 2744.08. (A)(1) A political subdivision may usepublic funds to secure insurance with respect to its and itsemployees' potential liability in damages in civil actions forinjury, death, or loss to persons or property allegedly caused byan act or omission of the political subdivision or any of itsemployees in connection with a governmental or proprietaryfunction. The insurance may be at the limits, for thecircumstances, and subject to the terms and conditions, that aredetermined by the political subdivision in its discretion.

The insurance may be for the period of time that is setforth in specifications for competitive bids or, when competitivebidding is not required, for the period of time that is mutuallyagreed upon by the political subdivision and insurance company.The period of time does not have to be, but can be, limited tothe fiscal cycle under which the political subdivision is fundedand operates.

(2)(a) Regardless of whether a political subdivisionprocures a policy or policies of liability insurance pursuant todivision (A)(1) of this section or otherwise, the politicalsubdivision may establish and maintain a self-insurance programrelative to its and its employees' potential liability in damagesin civil actions for injury, death, or loss to persons orproperty allegedly caused by an act or omission of the politicalsubdivision or any of its employees in connection with agovernmental or proprietary function. The political subdivisionmay reserve such funds as it deems appropriate in a special fundthat may be established pursuant to an ordinance or resolution ofthe political subdivision and not subject to section 5705.12 ofthe Revised Code. The political subdivision may allocate thecosts of insurance or a self-insurance program, or both, amongthe funds or accounts in the subdivision's treasury on the basisof relative exposure and loss experience. The political subdivision may require any deductibles under an insurance or self-insurance program, or both, to be paid from funds or accounts in the subdivision's treasury from which a loss was directly attributable. If it so chooses, thepolitical subdivision may contract with any person, otherpolitical subdivision, or regional council of governments forpurposes of the administration of such a program.

(b) Political subdivisions that have establishedself-insurance programs relative to their and their employees'potential liability as described in division (A)(2)(a) of thissection may mutually agree that their self-insurance programswill be jointly administered in a specified manner.

(B) The purchase of liability insurance, or theestablishment and maintenance of a self-insurance program, by apolitical subdivision does not constitute a waiver of anyimmunity or defense of the political subdivision or itsemployees, except that the political subdivision may specificallywaive any immunity or defense to which it or its employees may beentitled if a provision to that effect is specifically includedin the policy of insurance or in a written plan of operation ofthe self-insurance program, or, if any, the legislative enactmentof the political subdivision authorizing the purchase of theinsurance or the establishment and maintenance of theself-insurance program. Such a specific waiver shall be only tothe extent of the insurance or self-insurance program coverage.

(C) The authorizations for political subdivisions tosecure insurance and to establish and maintain self-insuranceprograms in this section are in addition to any other authorityto secure insurance or to establish and maintain self-insuranceprograms that is granted pursuant to the Revised Code or theconstitution of this state, and they are not in derogation of anyother authorization.

Sec. 2744.082. (A) If a political subdivision, pursuant to division (A)(2)(a) of section 2744.08 of the Revised Code, has allocated costs to, or required the payment of deductibles from, funds or accounts in the subdivision's treasury, the subdivision's fiscal officer, pursuant to an ordinance or resolution of the subdivision's legislative authority, shall transfer amounts equal to those costs or deductibles from the funds or accounts to the subdivision's general fund if both of the following occur:

(1) The subdivision requests payment from the employee responsible for the funds or accounts for those costs or deductibles;

(2) The employee receiving the request fails to remit payment within forty-five days after the date of receipt of the request.

(B) Sections 5705.14, 5705.15, and 5705.16 of the Revised Code do not apply to transfers made pursuant to this section.

(1)"DNA analysis" and"DNA specimen" have the samemeaningsas in section 109.573 of the Revised Code.

(2)"Jail" and"community-based correctional facility" havethesame meanings as in section 2929.01 of the Revised Code.

(3)"Post-release control" has the same meaning as insection2967.01of the Revised Code.

(B)(1) A person who is convicted of or pleadsguilty to afelony offense listed in division(D) of this section and who issentenced to a prison term or to a community residential sanctionin a jailor community-based correctional facility pursuant tosection 2929.16 of theRevised Code, anda person who is convictedof or pleads guilty to a misdemeanor offense listedin division(D) of this section and who is sentenced to a term ofimprisonmentshall submit to aDNA specimen collectionprocedure administeredby the director of rehabilitation andcorrection or the chiefadministrative officer of the jail or otherdetention facility inwhich the person is serving theterm of imprisonment. If theperson serves the prisonterm in a state correctional institution,thedirector of rehabilitation and correction shall cause theDNAspecimen to be collected from the person during the intakeprocessat the receptionfacility designated by the director. If theperson serves thecommunity residential sanction or term ofimprisonment in a jail, acommunity-based correctional facility,or another county, multicounty,municipal,municipal-county, ormulticounty-municipal detention facility, the chiefadministrativeofficer of the jail,community-based correctional facility, ordetentionfacility shall cause theDNA specimen to be collectedfrom the person during the intakeprocess at the jail,community-based correctional facility, ordetention facility. Inaccordance withdivision (C) of this section, the director orthechief administrative officer shall cause theDNA specimen to beforwarded to the bureau of criminal identificationandinvestigation no later than fifteen days after the date of thecollectionof the DNA specimen. The DNA specimen shall becollected inaccordance with division (C) of this section.

(2) If a person is convicted of or pleads guilty toanoffense listed in division (D) of this section, isservingaprison term, community residential sanction, or term ofimprisonmentfor that offense, and does not provide a DNAspecimenpursuant to division (B)(1) of this section, prior to the person'srelease from the prison term, community residential sanction, orimprisonment, theperson shall submit to, and the director ofrehabilitation andcorrection or the chief administrative officerof the jail, community-basedcorrectional facility, or detentionfacility in which the person is servingtheprison term, communityresidential sanction, or term of imprisonmentshall administer, aDNA specimen collectionprocedure at the state correctionalinstitution, jail, community-basedcorrectional facility, ordetention facility in which the person is servingthe prison term,communityresidential sanction, or term of imprisonment. Inaccordance with division(C) of this section, the director orthechief administrative officer shall cause the DNA specimen to beforwarded to thebureau of criminal identification andinvestigation no later than fifteen daysafter the date of thecollection of the DNA specimen. TheDNA specimen shall becollected in accordance with division (C)of this section.

(3) If a personsentenced to a term of imprisonment orserving aprison termor communityresidential sanction forcommitting anoffense listed in division (D) of thissection is onprobation, isreleased on parole,undertransitionalcontrol, oron another typeof release, or is onpost-releasecontrol,if theperson isunderthe supervision ofa probationdepartment ortheadult paroleauthority, if the person issent tojail or isreturned to a jail,community-basedcorrectionalfacility, orstate correctionalinstitution for a violationoftheterms andconditions of theprobation,parole,transitionalcontrol, otherrelease, orpost-releasecontrol, if the person wasor will beservingatermof imprisonment, prison term, orcommunityresidentialsanctionforcommitting an offense listed indivision(D) of this section,and if the person didnot provide aDNAspecimenpursuant todivision (B)(1) or(2) of this section,theperson shall submitto, and thedirector of rehabilitation andcorrection or the chiefadministrativeofficer of the jail orcommunity-based correctionalfacility shalladminister, a DNAspecimen collectionprocedure atthe jail, community-basedcorrectional facility, or statecorrectional institution in whichthe person is servingthetermof imprisonment, prison term, orcommunity residentialsanction.In accordance withdivision (C) ofthis section,thedirector orthe chiefadministrative officershall cause theDNAspecimen tobe forwarded tothe bureau ofcriminal identificationandinvestigation no laterthan fifteendays after the date of thecollection of theDNA specimen. TheDNA specimen shall becollected from theperson in accordance withdivision(C) of thissection.

(C)If the DNA specimen is collected by withdrawing bloodfrom the person or a similarly invasive procedure, a physician,registerednurse, licensed practical nurse,duly licensed clinicallaboratory technician,or other qualifiedmedical practitionershall collect in a medically approvedmannerthe DNA specimenrequired to be collected pursuant to division(B)of this section.If the DNA specimen is collected by swabbing for buccal cells or asimilarly noninvasive procedure, this section does not requirethat the DNA specimen be collected by a qualified medicalpractitioner of that nature. No later than fifteen days after thedate ofthecollection of the DNA specimen, the director ofrehabilitationandcorrection or the chief administrative officerof the jail,community-based correctional facility, or othercounty,multicounty,municipal, municipal-county, ormulticounty-municipaldetention facility,in which the person isserving the prisonterm,community residential sanction, or termof imprisonmentshall cause the DNA specimen to be forwarded tothe bureau ofcriminal identification and investigation inaccordance withproceduresestablished by the superintendentofthe bureau underdivision (H) of section 109.573 of theRevisedCode. The bureaushall provide thespecimen vials, mailing tubes,labels, postage,and instructions needed forthe collection andforwarding of theDNA specimen to the bureau.

(D) The director of rehabilitation and correction and thechiefadministrative officer of the jail, community-basedcorrectional facility,or other county, multicounty, municipal,municipal-county, or multicounty-municipal detention facilityshall cause aDNA specimen to be collected inaccordancewithdivisions (B) and (C) of this section from a person inits custodywho is convicted of or pleads guilty toany of thefollowingoffenses:

(1) A violation of section 2903.01, 2903.02,2903.11,2905.01,2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02,2911.11, or 2911.12 of theRevisedCode;

(2) A violation of section 2907.12 of the Revised Code as itexisted prior toSeptember 3, 1996;

(3) An attempt to commit a violation of section2903.01,2903.02, 2907.02,2907.03, 2907.04, or 2907.05 of the Revised Codeor to commit aviolation of section 2907.12 of the Revised Code asit existedprior toSeptember 3, 1996;

(4) Aviolation of any law that arose out of the samefactsandcircumstances andsame act as did a charge against thepersonof a violation of section2903.01,2903.02,2905.01,2907.02,2907.03, 2907.04, 2907.05,or2911.11 of theRevised Codethatpreviously wasdismissed oramended or as did a charge against theperson of aviolation ofsection 2907.12 of the Revised Codeas itexistedprior toSeptember 3,1996, that previously was dismissedoramended;

(5) A violation of section 2905.02 or 2919.23 of theRevisedCode that wouldhave been aviolation of section 2905.04 of theRevised Code as it existed prior to July1,1996, had it beencommitted prior to that date;

(6) A sexually oriented offense or a child-victim oriented offense, both as defined in section2950.01 of theRevised Code, if, in relation to that offense, theoffenderhas been adjudicated a sexual predator or a child-victim predator, both asdefined insection 2950.01 of the Revised Code;

(7) A felony violation of any law that arose out of the samefacts and circumstances and same act as did a charge against theperson of a violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code that previously was dismissed oramended;

(8) A conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(9) Complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

(E) The director of rehabilitation and correction or a chiefadministrative officer of a jail, community-based correctionalfacility, orother detention facility describedin division (B) ofthis sectionin relation to the following offensesis not requiredto comply with this section until thesuperintendent of thebureauof criminal identification andinvestigation gives agencies in thecriminal justice system, asdefined in section ~~181.51~~ 5502.61 of theRevised Code, inthe stateofficial notification that the stateDNA laboratory isprepared toaccept DNA specimensof that nature:

(1) A violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code;

(2) An attempt to commit a violation of section 2903.01 or2903.02 of the Revised Code;

(3) A felony violation of any law that arose out of the samefactsand circumstances and same act as did a charge against thepersonof a violation of section 2903.11, 2911.01, 2911.02, or2911.12of the Revised Code that previously was dismissed oramended;

(4) A conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(5) Complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

(1)"Statement or representation" means any oral, written,electronic, electronic impulse, or magnetic communication that isused to identify an item of goods or a service for whichreimbursement may be made under the medical assistance program orthat states income and expense and is or may be used to determinea rate of reimbursement under the medical assistance program.

(2)"Medical assistance program" means the programestablished by the department of job and family servicestoprovidemedical assistance under section 5111.01 of the RevisedCode andthe medicaid program of Title XIX of the"Social SecurityAct,"49 Stat. 620 (1935), 42 U.S.C. 301, as amended.

(3)"Provider" means any person who has signed a provideragreement with the department of job and family servicestoprovide goodsor services pursuant to the medical assistanceprogram or anyperson who has signed an agreement with a party tosuch aprovider agreement under which the person agrees to providegoodsor services that are reimbursable under the medicalassistanceprogram.

(4)"Provider agreement" means an oral or writtenagreementbetween the department of job and familyservices and a personinwhich the person agrees to provide goods or services under themedical assistance program.

(5)"Recipient" means any individual who receives goods orservices from a provider under the medical assistance program.

(6)"Records" means any medical, professional, financial,orbusiness records relating to the treatment or care of anyrecipient, to goods or services provided to any recipient, or torates paid for goods or services provided to any recipient andanyrecords that are required by the rules of thedirector of job andfamily services to be kept forthe medicalassistance program.

(B) No person shall knowingly make or cause to be made afalse or misleading statement or representation for use inobtaining reimbursement from the medical assistance program.

(C) No person, with purpose to commit fraud or knowingthatthe person is facilitating a fraud, shall do either of thefollowing:

(1) Contrary to the terms of the person's provideragreement,charge, solicit, accept, or receive for goods orservices that thepersonprovides under the medical assistanceprogram any property,money, or other consideration in addition tothe amount ofreimbursement under the medical assistance programand the person'sprovider agreement for the goods or services andany deductiblesor co-payments authorized by~~rules adopted under~~section5111.0112 ofthe Revised Codeor ~~by any~~ rulesadoptedpursuant to ~~that~~ section 5111.01, 5111.011, or 5111.02 of the Revised Code.

(2) Solicit, offer, or receive any remuneration, otherthanany deductibles or co-payments authorized by section 5111.0112 of the Revised Code orrules adopted undersection~~5111.0112~~ 5111.01, 5111.011, or 5111.02 ofthe Revised Code ~~or by any rulesadoptedpursuant to thatsection~~,in cash or in kind, including,but notlimited to, akickback orrebate, in connection with thefurnishing of goods orservices forwhich whole or partialreimbursement is or may bemade under themedical assistanceprogram.

(D) No person, having submitted a claim for or providedgoods or services under the medical assistance program, shall doeither of the following for a period of at least six years afterareimbursement pursuant to that claim, or a reimbursement forthosegoods or services, is received under the medical assistanceprogram:

(1) Knowingly alter, falsify, destroy, conceal, or removeany records that are necessary to fully disclose the nature ofallgoods or services for which the claim was submitted, or forwhichreimbursement was received, by the person;

(2) Knowingly alter, falsify, destroy, conceal, or removeany records that are necessary to disclose fully all income andexpenditures upon which rates of reimbursements were based fortheperson.

(E) Whoever violates this section is guilty of medicaidfraud. Except as otherwise provided in this division,medicaidfraud is amisdemeanor of the first degree. If the value ofproperty, services, or fundsobtained in violation of this sectionis five hundred dollars or more and isless than five thousanddollars, medicaid fraud is a felony of the fifthdegree. If thevalue of property, services, or funds obtained in violation ofthis section is five thousand dollars or more and is less than onehundredthousand dollars, medicaid fraud isa felony of the fourthdegree. If the value of theproperty, services, or funds obtainedin violation of thissection is one hundred thousand dollars ormore, medicaid fraud isafelony of the third degree.

(F) Upon application of the governmental agency, office,orother entity that conducted the investigation and prosecutionin acase under this section, the court shall order any personwho isconvicted of a violation of this section for receiving anyreimbursement for furnishing goods or services under the medicalassistance program to which the person is not entitled topay totheapplicant its cost of investigating and prosecuting the case.The costs of investigation and prosecution that a defendant isordered to pay pursuant to this division shall be in addition toany other penalties for the receipt of that reimbursement thatareprovided in this section, section 5111.03 of the RevisedCode, orany other provision of law.

(G) The provisions of this section are not intended to beexclusive remedies and do not preclude the use of any othercriminal or civil remedy for any act that is in violation of thissection.

(1) "Medicaid benefits" means benefits under the medical assistance program established under Chapter 5111. of the Revised Code.

(2) "Property" means any real or personal property or other asset in which a person has any legal title or interest.

(B) No person shall knowingly do any of the following in an application for medicaid benefits or in a document that requires a disclosure of assets for the purpose of determining eligibility to receive medicaid benefits:

(3)(a) Except as provided in division (B)(3)(b) of this section, fail to disclose a transfer of property that occurred during the period beginning thirty-six months before submission of the application or document and ending on the date the application or document was submitted;

(b) Fail to disclose a transfer of property that occurred during the period beginning sixty months before submission of the application or document and ending on the date the application or document was submitted and that was made to an irrevocable trust a portion of which is not distributable to the applicant for medicaid benefits or the recipient of medicaid benefits or to a revocable trust.

(C)(1) Whoever violates this section is guilty of medicaid eligibility fraud. Except as otherwise provided in this division, a violation of this section is a misdemeanor of the first degree. If the value of the medicaid benefits paid as a result of the violation is five hundred dollars or more and is less than five thousand dollars, a violation of this section is a felony of the fifth degree. If the value of the medicaid benefits paid as a result of the violation is five thousand dollars or more and is less than one hundred thousand dollars, a violation of this section is a felony of the fourth degree. If the value of the medicaid benefits paid as a result of the violation is one hundred thousand dollars or more, a violation of this section is a felony of the third degree.

(2) In addition to imposing a sentence under division (C)(1) of this section, the court shall order that a person who is guilty of medicaid eligibility fraud make restitution in the full amount of any medicaid benefits paid on behalf of an applicant for or recipient of medicaid benefits for which the applicant or recipient was not eligible, plus interest at the rate applicable to judgments on unreimbursed amounts from the date on which the benefits were paid to the date on which restitution is made.

(3) The remedies and penalties provided in this section are not exclusive and do not preclude the use of any other criminal or civil remedy for any act that is in violation of this section.

(D) This section does not apply to a person who fully disclosed in an application for medicaid benefits or in a document that requires a disclosure of assets for the purpose of determining eligibility to receive medicaid benefits all of the interests in property of the applicant for or recipient of medicaid benefits, all transfers of property by the applicant for or recipient of medicaid benefits, and the circumstances of all those transfers.

(E) Any amounts of medicaid benefits recovered as restitution under this section and any interest on those amounts shall be credited to the general revenue fund, and any applicable federal share shall be returned to the appropriate agency or department of the United States.

Sec. 2921.13. (A) No person shall knowingly make a falsestatement, or knowingly swear or affirm the truth of a falsestatement previously made, when any of the following applies:

(3) The statement is made with purpose to mislead a publicofficial in performing the public official's official function.

(4) The statement is made with purpose to secure the paymentof unemploymentcompensation; Ohio worksfirst; prevention,retention, and contingency benefits and services;disability financialassistance;retirement benefits;economic development assistance,as definedin section 9.66 of the RevisedCode; or other benefitsadministered by a governmental agencyor paidoutof a publictreasury.

(5) The statement is made with purpose to secure theissuance by a governmental agency of a license, permit,authorization, certificate, registration, release, or provideragreement.

(6) The statement is sworn or affirmed before a notarypublic or another person empowered to administer oaths.

(7) The statement is in writing on or in connection with areport or return that is required or authorized by law.

(8) The statement is in writing and is made with purposetoinduce another to extend credit to or employ the offender, toconfer anydegree, diploma, certificate of attainment, awardofexcellence, or honor on the offender, or to extend to orbestowupon the offender any other valuable benefit ordistinction, whenthe person to whom the statement is directedrelies upon it tothat person's detriment.

(9) The statement is made with purpose to commit orfacilitate the commission of a theft offense.

(10) The statement is knowingly made to a probate court inconnection with any action, proceeding, or other matter withinitsjurisdiction, either orally or in a written document,including,but not limited to, an application, petition,complaint, or otherpleading, or an inventory, account, orreport.

(11) The statement is made on an account, form, record,stamp, label, orother writing that is required by law.

(12) The statement is made in connection with thepurchaseof a firearm, as defined insection 2923.11 of the Revised Code,and in conjunctionwith the furnishing to the seller of thefirearm of a fictitious or altereddriver's or commercial driver'slicense or permit, a fictitious or alteredidentification card, orany other document that contains false informationabout thepurchaser's identity.

(13) The statement is made in a document or instrument ofwritingthat purports to be a judgment, lien, or claim ofindebtedness and is filed orrecorded with the secretary of state,a county recorder, or the clerk of acourt of record.

(14) The statement is made with purpose to obtain an Ohio's best Rx program enrollment card under section 5110.09 of the Revised Code or a payment from the department of job and family services under section 5110.17 of the Revised Code.

~~(14)~~(15) The statement is made in an application filed withacounty sheriff pursuant to section 2923.125 of theRevised Code inorder to obtain or renew a licenseto carry a concealed handgun or is made in an affidavit submitted to a county sheriff to obtain a temporary emergency license to carry a concealed handgun under section 2923.1213 of the Revised Code.

(16) The statement is required under section 5743.72 of the Revised Code in connection with the person's purchase of cigarettes or tobacco products in a delivery sale.

(B) No person, in connection with the purchase of a firearm,asdefined in section 2923.11 of theRevised Code, shall knowinglyfurnish to the seller of thefirearm a fictitious or altereddriver's or commercial driver's license orpermit, a fictitious oraltered identification card, or any other documentthat containsfalse information about the purchaser's identity.

(C)No person, in an attempt to obtain a license to carry aconcealed handgun under section 2923.125 of the Revised Code,shall knowingly present to a sheriff a fictitiousor altereddocument that purports to be certification of the person'scompetencein handling a handgun as described in division (B)(3)of section 2923.125 of the Revised Code.

(D) It is no defense to a charge under division (A)(6) ofthis section that the oath or affirmation was administered ortaken in an irregular manner.

(E) If contradictory statements relating to the samefactare made by the offender within the period of the statute oflimitations for falsification, it is not necessary for theprosecution to prove which statement was false but only that oneor the other was false.

(F)(1) Whoever violates division (A)(1), (2), (3), (4),(5),(6), (7), (8), (10), (11), (13), or (14), or (16)of this section is guiltyoffalsification, a misdemeanor of the first degree.

(2) Whoever violates division (A)(9) of this section isguilty of falsification in a theft offense. Except as otherwiseprovided inthis division, falsification in a theftoffense is amisdemeanor of the first degree. If the value of the property orservices stolen is five hundred dollars or more and is less thanfive thousanddollars, falsification in a theft offense is afelony of the fifth degree. Ifthe value of the property orservices stolen is five thousand dollars or moreand is less thanone hundred thousand dollars, falsification in a theftoffense isa felony of the fourth degree. If the value of the property orservices stolen is one hundred thousand dollars or more,falsification in atheft offense is a felony of the third degree.

(3) Whoever violates division (A)(12)or (B) of thissection is guilty of falsification to purchase a firearm, afelonyof the fifth degree.

(4) Whoever violates division (A)~~(14)~~(15) or(C) of thissection is guilty of falsification to obtaina concealed handgunlicense, a felony of the fourth degree.

(G) A person who violates this section is liable in a civilaction to any person harmed by the violation for injury, death, orloss topersonor property incurred as a result of the commissionof the offense and forreasonable attorney's fees, court costs,and other expenses incurred as aresult of prosecuting the civilaction commenced under this division. A civilaction under thisdivision is not the exclusive remedy of a person who incursinjury, death, or loss to person or property as a result of aviolation ofthis section.

Sec. 2923.25. Each federally licensed firearms dealer who sells any firearm, at the time of the sale of the firearm, shall offer for sale to the purchaser of the firearm a trigger lock, gun lock, or gun locking device that is appropriate for that firearm. Each federally licensed firearms dealer shall post in a conspicuous location in the dealer's place of business the poster furnished to the dealer pursuant to section ~~181.521~~ 5502.63 of the Revised Code and shall make available to all purchasers of firearms from the dealer the brochure furnished to the dealer pursuant to that section.

As used in this section, "federally licensed firearms dealer" has the same meaning as in section ~~181.251~~ 5502.63 of the Revised Code.

Sec. 2923.35. (A)(1) With respect to property orderedforfeited under section 2923.32 of the Revised Code, with respectto any fine or civil penalty imposed in any criminal or civilproceeding under section 2923.32 or 2923.34 of the Revised Code,and with respect to any fine imposed for a violation of section2923.01 of the Revised Code for conspiracy to violate section2923.32 of the Revised Code, the court, upon petition of theprosecuting attorney, may do any of the following:

(b) Award compensation to persons who provide informationthat results in a forfeiture, fine, or civil penalty undersection 2923.32 or 2923.34 of the Revised Code;

(c) Grant petitions for mitigation or remission offorfeiture, fines, or civil penalties, or restore forfeitedproperty, imposed fines, or imposed civil penalties to personsinjured by the violation;

(d) Take any other action to protect the rights ofinnocent persons that is in the interest of justice and that isconsistent with the purposes of sections 2923.31 to 2923.36 ofthe Revised Code.

(2) The court shall maintain an accurate record of theactions it takes under division (A)(1) of this section withrespect to the property ordered forfeited or the fine or civilpenalty. The record is a public record open for inspection undersection 149.43 of the Revised Code.

(B)(1) After the application of division (A) of thissection, any person who prevails in a civil action pursuant tosection 2923.34 of the Revised Code has a right to any property,or the proceeds of any property, criminally forfeited to thestate pursuant to section 2923.32 of the Revised Code or againstwhich any fine under that section or civil penalty under division(I) of section 2923.34 of the Revised Code may be imposed.

The right of any person who prevails in a civil actionpursuant to section 2923.34 of the Revised Code, other than aprosecuting attorney performing official duties under thatsection, to forfeited property, property against which fines andcivil penalties may be imposed, and the proceeds of that propertyis superior to any right of the state, a municipal corporation,or a county to the property or the proceeds of the property, ifthe civil action is brought within one hundred eighty days afterthe entry of a sentence of forfeiture or a fine pursuant tosection 2923.32 of the Revised Code or the entry of a civilpenalty pursuant to division (I) of section 2923.34 of theRevised Code.

The right is limited to the total value of the trebledamages, civil penalties, attorney's fees, and costs awarded tothe prevailing party in an action pursuant to section 2923.34 ofthe Revised Code, less any restitution received by the person.

(2) If the aggregate amount of claims of persons who haveprevailed in a civil action pursuant to section 2923.34 of theRevised Code against any one defendant is greater than the totalvalue of the treble fines, civil penalties, and forfeitedproperty paid by the person against whom the actions werebrought, all of the persons who brought their actions within onehundred eighty days after the entry of a sentence or dispositionof forfeiture or a fine pursuant to section 2923.32 of theRevised Code or the entry of a civil penalty pursuant to division(I) of section 2923.34 of the Revised Code, first shall receive apro rata share of the total amount of the fines, civil penalties,and forfeited property. After the persons who brought theiractions within the specified one-hundred-eighty-day period havesatisfied their claims out of the fines, civil penalties, andforfeited property, all other persons who prevailed in civilactions pursuant to section 2923.34 of the Revised Code shallreceive a pro rata share of the total amount of the fines, civilpenalties, and forfeited property that remains in the custody ofthe law enforcement agency or in the corrupt activityinvestigation and prosecution fund.

(C)(1) Subject to divisions (A) and (B) of this sectionand notwithstanding any contrary provision of section 2933.41 ofthe Revised Code, the prosecuting attorney shall order thedisposal of property ordered forfeited in any proceeding undersections 2923.32 and 2923.34 of the Revised Code as soon asfeasible, making due provisions for the rights of innocentpersons, by any of the following methods:

(a) Transfer to any person who prevails in a civil actionpursuant to section 2923.34 of the Revised Code, subject to thelimit set forth in division (B)(1) of this section;

(e) If the property is contraband and is not needed forevidence in any pending criminal or civil proceeding, pursuant tosection 2933.41 or any other applicable section of the RevisedCode.

(2) Any interest in personal or real property not disposedof pursuant to this division and not exercisable by, ortransferable for value to, the state shall expire and shall notrevert to the person found guilty of or adjudicated a delinquentchild for a violation of section 2923.32 of the Revised Code. Noperson found guilty of or adjudicated a delinquent child for aviolation of that section and no person acting in concert with aperson found guilty of or adjudicated a delinquent child fora violation of that section is eligible to purchase forfeited property fromthestate.

(3) Upon application of a person, other than thedefendant, the adjudicated delinquent child, or a person actingin concert with or on behalf of either the defendant or theadjudicated delinquent child, the court may restrain or stay thedisposal of the property pursuant to this division pending theconclusion of any appeal of the criminal case or delinquency casegiving rise to the forfeiture or pending the determination of thevalidity of a claim to or interest in the property pursuant todivision (E) of section 2923.32 of the Revised Code, if theapplicant demonstrates that proceeding with the disposal of theproperty will result in irreparable injury, harm, or loss to theapplicant.

(4) The prosecuting attorney shall maintain an accuraterecord of each item of property disposed of pursuant to thisdivision, which record shall include the date on which each itemcame into the prosecuting attorney's custody, the manner and dateof disposition, and,if applicable, the name of the person who received the item. Therecord shall not identify or enable the identification of theindividual officer who seized the property, and the record is apublic record open for inspection under section 149.43 of theRevised Code.

Each prosecuting attorney who disposes in any calendar yearof any item of property pursuant to this division shall prepare areport covering the calendar year that cumulates all of theinformation contained in all of the records kept by theprosecuting attorney pursuant to this division for that calendaryear and shall send the cumulative report, no later than thefirst day of March in the calendar year following the calendaryear covered by the report, to the attorney general. Each reportreceived by the attorney general is a public record open forinspection under section 149.43 of the Revised Code. Not later than the fifteenth day of April in the calendar yearfollowing the calendar year covered by the reports,the attorney general shall send to the president of the senate and thespeaker of the house of representatives a written notification that doesall of the following:

(a) Indicates that the attorney general has received fromprosecuting attorneysreports of the type described in this division that cover the previouscalendar year and indicates that the reports were received under thisdivision;

(b) Indicates that the reportsare open for inspection under section 149.43 of theRevised Code;

(c) Indicates that the attorney generalwill provide a copy of any or all of the reports to thepresident of the senate or the speaker of the house ofrepresentatives upon request.

(D)(1)(a) Ten per cent of the proceeds of all property orderedforfeited by a juvenile court pursuant to section 2923.32 of the Revised Codeshall be applied to one ormore alcohol and drug addiction treatment programs that are certified by thedepartment of alcohol and drug addiction services under section 3793.06 ofthe Revised Code and that are specified in the order of forfeiture. Ajuvenile court shall notspecify an alcohol or drug addiction treatment program in the order offorfeiture unless the program is a certified alcohol and drug addictiontreatment program and, except as provided in division(D)(1)(a) of this section, unless the programis located in the county in which the court that orders the forfeiture islocated or in a contiguous county. If no certified alcohol and drug addictiontreatment program is located in any of those counties, the juvenile court mayspecify in the order a certified alcohol and drug addiction treatment programlocated anywhere within this state. The remaining ninety per cent of theproceeds shall be disposed of as provided in divisions(D)(1)(b) and (D)(2) of this section.

All of the proceeds of all property ordered forfeited by a court other thana juvenile court pursuant to section 2923.32 of the Revised Code shall bedisposed of as provided in divisions (D)(1)(b) and (D)(2) of this section.

(b) The remaining proceeds of all property ordered forfeitedpursuant to section 2923.32 of the Revised Code, after compliancewith division (D)(1)(a) of this section when thatdivision is applicable,and all fines andcivil penalties imposed pursuant to sections 2923.32 and 2923.34of the Revised Code shall be deposited into the state treasuryand credited to the corrupt activity investigation andprosecution fund, which is hereby created.

(2) The proceeds, fines, and penalties credited to thecorrupt activity investigation and prosecution fund pursuant todivision (D)(1) of this section shall be disposed of in thefollowing order:

(a) To a civil plaintiff in an action brought within theone-hundred-eighty-day time period specified in division (B)(1)of this section, subject to the limit set forth in that division;

(b) To the payment of the fees and costs of the forfeitureand sale, including expenses of seizure, maintenance, and custodyof the property pending its disposition, advertising, and courtcosts;

(c) Except as otherwise provided in division (D)(2)(c) ofthis section, the remainder shall be paid to the law enforcementtrust fund of the prosecuting attorney that is establishedpursuant to division (D)(1)(c) of section 2933.43 of the RevisedCode and to the law enforcement trust fund of the county sheriffthat is established pursuant to that division if the countysheriff substantially conducted the investigation, to the lawenforcement trust fund of a municipal corporation that isestablished pursuant to that division if its police departmentsubstantially conducted the investigation, to the law enforcementtrust fund of a township that is established pursuant to thatdivision if the investigation was substantially conducted by atownship police department, township police district policeforce, or office of a township constable, or to the lawenforcement trust fund of a park district created pursuant tosection 511.18 or 1545.01 of the Revised Code that is establishedpursuant to that division if the investigation was substantiallyconducted by its park district police force or law enforcementdepartment. The prosecuting attorney may decline to accept anyof the remaining proceeds, fines, and penalties, and, if theprosecuting attorney so declines, they shall be applied to the funddescribed in division(D)(2)(c) of this section that relates to the appropriate lawenforcement agency that substantially conducted theinvestigation.

If the state highway patrol substantially conducted theinvestigation, the director of budget and management shalltransfer the remaining proceeds, fines, and penalties to thestate highway patrol for deposit into the ~~state~~ highway patrol statecontraband, forfeiture, and other fund that is created bydivision (D)(1)(c) of section 2933.43 of the Revised Code. If the department of taxation substantially conducted the investigation, the director, shall transfer the remaining proceeds, fines, and penalties to the department for deposit into the department of taxation enforcement fund. Ifthe state board of pharmacy substantially conducted theinvestigation, the director shall transfer the remainingproceeds, fines, and penalties to the board for deposit into theboard of pharmacy drug law enforcement fund that is created bydivision (B)(1) of section 4729.65 of the Revised Code. If astate law enforcement agency, other than the state highway patrol, the department of taxation,or the state board of pharmacy, substantially conducted the investigation, thedirector shall transfer the remaining proceeds, fines, andpenalties to the treasurer of state for deposit into the peaceofficer training commission fund.

The remaining proceeds, fines, and penalties that are paidto a law enforcement trust fund or that are deposited into the~~state~~ highway patrol state contraband, forfeiture, and other fund, the department of taxation enforcement fund, theboard of pharmacy drug law enforcement fund, or the peace officertraining commission fund pursuant to division (D)(2)(c)of thissection shall be allocated, used, and expended only in accordancewith division (D)(1)(c) of section 2933.43 of the Revised Code,only in accordance with a written internal control policy adoptedunder division (D)(3) of that section, and, if applicable, onlyin accordance with division (B) of section 4729.65 of the RevisedCode. The annual reports that pertain to the funds and that arerequired by divisions (D)(1)(c) and (3)(b) of section 2933.43 ofthe Revised Code also shall address the remaining proceeds,fines, and penalties that are paid or deposited into the fundspursuant to division (D)(2)(c) of this section.

(3) If more than one law enforcement agency substantiallyconducted the investigation, the court ordering the forfeitureshall equitably divide the remaining proceeds, fines, andpenalties among the law enforcement agencies that substantiallyconducted the investigation, in the manner described in division(D)(2) of section 2933.43 of the Revised Code for the equitabledivision of contraband proceeds and forfeited moneys. Theequitable shares of the proceeds, fines, and penalties sodetermined by the court shall be paid or deposited into theappropriate funds specified in division (D)(2)(c) of thissection.

(E) As used in this section, "law enforcement agency"includes, but is not limited to, the state board of pharmacy and the department of taxation.

Sec. 2923.46. (A) If property is seized pursuant tosection 2923.44 or 2923.45 of the Revised Code, it is considered tobe in the custody of the head of the law enforcement agency thatseized it, and the head of that agency may do any of thefollowing with respect tothat property prior to its disposition in accordance withdivision (A)(4) or (B) of this section:

(3) Request the issuance of a court order that requiresany other appropriate municipal corporation, county, township,park district created pursuant to section 511.18 or 1545.01of the Revised Code, or state law enforcement officer or otherofficer to take custody of the property and, if practicable,remove it to an appropriate location for eventual disposition inaccordance with division (B) of this section;

(4)(a) Seek forfeiture of the property pursuant to federallaw. If the head of that agency seeks its forfeiture pursuant to federal law,the law enforcement agency shall deposit, use, and account for proceeds from asale ofthe property upon its forfeiture, proceeds from another disposition of theproperty upon itsforfeiture, or forfeited moneys it receives, in accordancewith the applicable federal law and otherwise shall comply withthat law.

(b) If the state highway patrol seized the property and if thesuperintendent of the state highway patrol seeks its forfeiture pursuant tofederal law, the appropriate governmental officials shall deposit into the~~state~~ highway patrol federal contraband, forfeiture, and other fund all interest orother earningsderived from the investment of the proceeds from a sale of the property uponits forfeiture, the proceeds from another disposition of the property upon itsforfeiture, or the forfeited moneys. The state highway patrol shall use andaccount for that interest or other earnings in accordance with the applicablefederal law.

(c) Division (B) of this section and divisions(D)(1) to (3) of section 2933.43 of the Revised Code do not apply to proceeds orforfeited moneys received pursuant to federal law or to the interest or otherearnings that are derived from the investment of proceeds or forfeited moneysreceived pursuant to federal law and that are described in division(A)(4)(b) of this section.

(B) In addition to complying with any requirements imposedby a court pursuant to section 2923.44 or 2923.45 of the Revised Code, and the requirementsimposed by those sections, in relationto the disposition of property forfeited to the state undereither of those sections, the prosecuting attorney who isresponsible for its disposition shall dispose of the property asfollows:

(1) Any vehicle that was used in aviolation of section 2923.42 of the Revised Code or inan act of a juvenile that is a violation of section 2923.42 of the Revised Code shall begivento the law enforcement agency of themunicipal corporation or county in which the offense or act occurred ifthat agency desires to have the vehicle, except that, if theoffense or act occurred in a township or in a park district createdpursuant to section 511.18 or 1545.01 of the Revised Code and alaw enforcement officer employed by the township or the park district wasinvolved in the seizure of the vehicle, the vehicle may be given to the lawenforcement agency of that township or park district if thatagency desires to have the vehicle, and except that, if the statehighway patrol made the seizure of the vehicle, the vehicle maybe given to the state highway patrol if it desires to have thevehicle.

(2) Drugs shall be disposed of pursuant to section 3719.11of the Revised Code or placed in the custody of the secretary ofthe treasury of the United States for disposal or use formedicalor scientific purposes under applicable federal law.

(3) Firearms and dangerous ordnance suitable for policework may be given to a law enforcement agency for that purpose.Firearms suitable for sporting use, or as museum pieces orcollectors' items, may be disposed of by sale pursuant todivision (B)(7) of this section. Other firearms and dangerousordnance shall be destroyed by a law enforcement agency or shallbe sent to the bureau of criminal identification andinvestigation for destruction by it.

(4) Computers, computer networks, computer systems, andcomputer software suitable for police work may be given to a lawenforcement agency for that purpose. Other computers, computernetworks, computer systems, and computer software shall bedisposed of by sale pursuant to division (B)(7) of this sectionor disposed of in another manner that the court that issued theorder of forfeiture considers proper under the circumstances.

(6) Beer, intoxicating liquor, and alcohol shall bedisposed of in accordance with division (D)(4) of section 2933.41of the Revised Code.

(7) In the case of property not described in divisions(B)(1) to (6) of this section and of property described in thosedivisions but not disposed of pursuant to them, the propertyshall be sold in accordance with division (B)(7) of this section or,in the case of forfeited moneys, disposed of in accordance with division(B)(7) of this section. If the property is to be sold, theprosecuting attorney shallcause a notice of the proposed sale of the property to be givenin accordance with law, and the property shall be sold, withoutappraisal, at a public auction to the highest bidder for cash. The proceedsof a sale and forfeited moneys shall be applied inthe following order:

(a) First, to the payment of the costs incurred inconnection with the seizure of, storage of, maintenance of, andprovision of security for the property, the forfeiture proceedingor civil action, and, if any, the sale;

(b) Second, the remaining proceeds or forfeited moneysafter compliance with division (B)(7)(a) of thissection, to thepayment of the value of any legal right, title, or interest inthe property that is possessed by a person who, pursuant todivision (F) of section 2923.44 of the Revised Code or division(E) of section 2923.45 of the Revised Code, established thevalidity of and consequently preserved that legal right, title,or interest, including, but not limited to, any mortgage,perfected or other security interest, or other lien in theproperty. The value of these rights, titles, or interests shallbe paid according to their record or other order of priority.

(c) Third, the remaining proceeds or forfeited moneysafter compliance with divisions (B)(7)(a) and(b) of this section, as follows:

(i) If the forfeiture was ordered in a juvenile court, ten percent to one or more alcohol and drug addiction treatment programs that arecertified by the department of alcohol and drug addiction services undersection 3793.06 of the Revised Code and that are specified in the order of forfeiture. Ajuvenile court shall not specify an alcohol or drug addiction treatmentprogramin the order of forfeiture unless the program is a certified alcohol and drugaddiction treatment program and, except as provided in division(B)(7)(c)(i) of this section, unlessthe program is located in the county in which the court that orders theforfeiture is located or in a contiguous county. If no certified alcohol anddrug addiction treatment program is located in any of those counties, thejuvenile court may specify in the order a certified alcohol and drug addictiontreatment program located anywhere within this state.

(ii) If the forfeiture was ordered in a juvenile court, ninetyper cent, and if the forfeiture was ordered in a court other than a juvenilecourt, one hundred per cent to appropriate funds in accordance withdivisions (D)(1)(c) and (2) of section 2933.43 of the Revised Code. The remaining proceeds or forfeited moneys so deposited shall be usedonly for the purposes authorized by those divisions and division(D)(3)(a)(ii) of that section.

(C)(1) Sections 2923.44 to 2923.47 of the Revised Code donot preclude a financial institution that possessed a valid mortgage, securityinterest, or lien that is not satisfied prior to a sale underdivision (B)(7) of this section or following a sale byapplication of division (B)(7)(b) of this section,fromcommencing a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtorif the financial institution otherwise would have been entitledto do so in this or another state.

(2) Any law enforcement agency that obtains any vehiclepursuant to division (B)(1) of this section shall take thevehicle subject to the outstanding amount of any securityinterest or lien that attaches to the vehicle.

(3) Nothing in this section impairs a mortgage, securityinterest, lien, or otherinterest of a financial institution in property that was thesubject of a forfeiture order under section 2923.44 or 2923.45 of the Revised Code and thatwas sold or otherwise disposed of in amanner that does not conform to the requirements of division (B)of this section, or any right of a financial institution ofthat nature to commence a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtor.

(4) Following the sale under division (B)(7) of thissection of any property that is required to be titled orregistered under the law of this state, the prosecuting attorneyresponsible for the disposition of the property shall cause thestate to issue an appropriate certificate of title orregistration to the purchaser of the property. If,in a disposition of property pursuant to division (B) of thissection, the state or a political subdivision is given anyproperty that is required to be titled or registered under thelaw of this state, the prosecuting attorney responsible for thedisposition of the property shall cause the state to issue anappropriate certificate of title or registration to itself or tothe political subdivision.

(D) Property that has been forfeited to the state pursuantto an order of criminal forfeiture under section 2923.44 of the Revised Code or an order ofcivil forfeiture under section2923.45 of the Revised Code shall not be available for use to payany fine imposed upon a person who is convicted of or pleadsguilty to a violation of section 2923.42 of the Revised Code or upon a juvenile who isfound by a juvenile court to be a delinquent child for an actthat is a violation of section 2923.42 of the Revised Code.

(E) Sections 2923.44 to 2923.47 of the Revised Code do notprohibit a law enforcement officer from seeking the forfeiture of contrabandassociated with a violation of section 2923.42 of the Revised Code pursuant to section2933.43 of the Revised Code.

Sec. 2925.44. (A) If property is seized pursuant tosection 2925.42 or 2925.43 of the Revised Code, it is deemed tobe in the custody of the head of the law enforcement agency thatseized it, and the head of that agency may do any of thefollowing with respect tothat property prior to its disposition in accordance withdivision (A)(4) or (B) of this section:

(4)(a) Seek forfeiture of the property pursuant to federallaw. If the head of that agency seeks its forfeiture pursuant to federal law,the lawenforcement agency shall deposit, use, and account for proceeds from a sale ofthe property upon its forfeiture, proceeds from another disposition of theproperty upon itsforfeiture, or forfeited moneys it receives, in accordancewith the applicable federal law and otherwise shall comply withthat law.

(b) If the state highway patrol seized the property and if the superintendentof the state highway patrol seeks its forfeiture pursuant to federal law, theappropriate governmental officials shall deposit into the ~~state~~ highwaypatrol federal contraband, forfeiture, and other fund all interest or other earningsderived from the investment of the proceeds from a sale of the property uponits forfeiture, the proceeds from another disposition of the property upon itsforfeiture, or the forfeited moneys. The state highway patrol shall use andaccount for that interest or other earnings in accordance with the applicablefederal law.

(c) If the investigative unit of thedepartment of publicsafety seized the property and if the director of public safetyseeks its forfeiture pursuant to federal law, the appropriategovernmental officials shall deposit into thedepartment of public safety investigative unit~~contraband, forfeiture, and other~~ federal equitable share account fund all interest or otherearnings derived from the investment of the proceeds from a saleof the property upon its forfeiture, the proceeds from anotherdisposition of the property upon its forfeiture, or theforfeited moneys. The department shall use and account for thatinterest or other earnings in accordance with the applicablefederal law.

(d) If the enforcement division of the department of taxation seized the property and if the tax commissioner seeks its forfeiture pursuant to federal law, the appropriate governmental officials shall, deposit into the department of taxation enforcement fund all interest or other earnings derived from the investment of the proceeds from a sale of the property upon its forfeiture, the proceeds from another disposition of the property upon its forfeiture, or the forfeited moneys. The department shall use and account for that interest or other earnings in accordance with the applicable federal law.

(e) Division (B) of this section and divisions (D)(1) to(3) of section 2933.43 of the Revised Code do not apply to proceeds orforfeited moneys received pursuant to federal law or to the interest or otherearnings that are derived from the investment of proceeds or forfeited moneysreceived pursuant to federal law and that are described in division (A)(4)(b) or (d)of this section.

(B) In addition to complying with any requirements imposedby a court pursuant to section 2925.42 or 2925.43 of the RevisedCode, and the requirements imposed by those sections, in relationto the disposition of property forfeited to the state undereither of those sections, the prosecuting attorney who isresponsible for its disposition shall dispose of the property asfollows:

(1) Any vehicle, as defined in section 4501.01 of theRevised Code, that was used in a felony drug abuse offense or inan act that, if committed by an adult, would be a felony drugabuse offense shall be given to the law enforcement agency of themunicipal corporation or county in which the offense occurred ifthat agency desires to have the vehicle, except that, if theoffense occurred in a township or in a park district createdpursuant to section 511.18 or 1545.01 of the Revised Code and alaw enforcement officer employed by the township or the park district wasinvolved inthe seizure of the vehicle, the vehicle may be given to the lawenforcement agency of that township or park district if thatagency desires to have the vehicle, and except that, if the statehighway patrol made the seizure of the vehicle, the vehicle maybe given to the state highway patrol if it desires to have thevehicle.

(2) Any drug paraphernalia that was used, possessed, sold,or manufactured in a violation of section 2925.14 of the RevisedCode that would be a felony drug abuse offense or in a violationof that section committed by a juvenile that, if committed by anadult, would be a felony drug abuse offense, may be given to thelaw enforcement agency of the municipal corporation or county inwhich the offense occurred if that agency desires to have and canuse the drug paraphernalia, except that, if the offense occurredin a township or in a park district created pursuant to section511.18 or 1545.01 of the Revised Code and a law enforcementofficer employed by the township or the park district was involved in theseizure of thedrug paraphernalia, the drug paraphernalia may be given to thelaw enforcement agency of that township or park district if thatagency desires to have and can use the drug paraphernalia. Ifthe drug paraphernalia is not so given, it shall be disposed ofby sale pursuant to division (B)(8) of this section or disposedof in another manner that the court that issued the order offorfeiture considers proper under the circumstances.

(3) Drugs shall be disposed of pursuant to section 3719.11of the Revised Code or placed in the custody of the secretary ofthe treasury of the United States for disposal or use for medicalor scientific purposes under applicable federal law.

(4) Firearms and dangerous ordnance suitable for policework may be given to a law enforcement agency for that purpose.Firearms suitable for sporting use, or as museum pieces orcollectors' items, may be disposed of by sale pursuant todivision (B)(8) of this section. Other firearms and dangerousordnance shall be destroyed by a law enforcement agency or shallbe sent to the bureau of criminal identification andinvestigation for destruction by it. As used in this division,"firearms" and "dangerous ordnance" have the same meanings as insection 2923.11 of the Revised Code.

(5) Computers, computer networks, computer systems, andcomputer software suitable for police work may be given to a lawenforcement agency for that purpose. Other computers, computernetworks, computer systems, and computer software shall bedisposed of by sale pursuant to division (B)(8) of this sectionor disposed of in another manner that the court that issued theorder of forfeiture considers proper under the circumstances. Asused in this division, "computers," "computer networks,""computer systems," and "computer software" have the samemeanings as in section 2913.01 of the Revised Code.

(7) Beer, intoxicating liquor, and alcohol shall bedisposed of in accordance with division (D)(4) of section 2933.41of the Revised Code.

(8) In the case of property not described in divisions(B)(1) to (7) of this section and of property described in thosedivisions but not disposed of pursuant to them, the propertyshall be sold in accordance with division (B)(8) of this section or, in thecase offorfeited moneys, disposed of in accordance with division (B)(8) of thissection. If the property is to be sold, the prosecuting attorney shallcause a notice of the proposed sale of the property to be givenin accordance with law, and the property shall be sold, withoutappraisal, at a public auction to the highest bidder for cash. The proceedsof a sale and forfeited moneys shall be applied inthe following order:

(b) Second, the remaining proceeds or forfeited moneysafter compliance with division (B)(8)(a) of this section, to thepayment of the value of any legal right, title, or interest inthe property that is possessed by a person who, pursuant todivision (F) of section 2925.42 of the Revised Code or division(E) of section 2925.43 of the Revised Code, established thevalidity of and consequently preserved that legal right, title,or interest, including, but not limited to, any mortgage,perfected or other security interest, or other lien in theproperty. The value of these rights, titles, or interests shallbe paid according to their record or other order of priority.

(c) Third, the remaining proceeds or forfeited moneysafter compliance with divisions (B)(8)(a) and (b) of thissection, as follows:

(i) If the forfeiture was ordered in a juvenile court, ten percent to one or more alcohol and drug addiction treatment programs that arecertified by the department of alcohol and drug addiction services undersection 3793.06 of the Revised Code and that are specified in the order of forfeiture. Ajuvenile court shall not specify an alcohol or drug addiction treatment programin the order of forfeiture unless the program is a certified alcohol and drugaddiction treatment program and, except as provided in division(B)(8)(c)(i) of this section, unlessthe program is located in the county in which the court that orders theforfeiture is located or in a contiguous county. If no certified alcohol anddrug addiction treatment program is located in any of those counties, thejuvenile court may specify in the order a certified alcohol and drug addictiontreatment program located anywhere within this state.

(ii) If the forfeiture was ordered in a juvenile court, ninetypercent, and if the forfeiture was ordered in a court other than a juvenilecourt,one hundred per centto appropriate funds in accordance with divisions(D)(1)(c) and (2) of section 2933.43 of the Revised Code. Theremaining proceeds or forfeited moneys so deposited shall be usedonly for the purposes authorized by those divisions and division(D)(3)(a)(ii) of that section.

(C)(1) Sections 2925.41 to 2925.45 of the Revised Code donot preclude a financial institution that possessed a valid mortgage, securityinterest, or lien that is not satisfied prior to a sale underdivision (B)(8) of this section or following a sale byapplication of division (B)(8)(b) of this section, fromcommencing a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtorif the financial institution otherwise would have been entitledto do so in this or another state.

(3) Nothing in this section impairs a mortgage, securityinterest, lien, or otherinterest of a financial institution in property that was thesubject of a forfeiture order under section 2925.42 or 2925.43 ofthe Revised Code and that was sold or otherwise disposed of in amanner that does not conform to the requirements of division (B)of this section, or any right of a financial institution ofthat nature tocommence a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtor.

(4) Following the sale under division (B)(8) of thissection of any property that is required to be titled orregistered under the law of this state, the prosecuting attorneyresponsible for the disposition of the property shall cause thestate to issue an appropriate certificate of title orregistration to the purchaser of the property. Additionally, if,in a disposition of property pursuant to division (B) of thissection, the state or a political subdivision is given anyproperty that is required to be titled or registered under thelaw of this state, the prosecuting attorney responsible for thedisposition of the property shall cause the state to issue anappropriate certificate of title or registration to itself or tothe political subdivision.

(D) Property that has been forfeited to the state pursuantto an order of criminal forfeiture under section 2925.42 of theRevised Code or an order of civil forfeiture under section2925.43 of the Revised Code shall not be available for use to payany fine imposed upon a person who is convicted of or pleadsguilty to a felony drug abuse offense or upon any juvenile who isfound by a juvenile court to be a delinquent child for an actthat, if committed by an adult, would be a felony drug abuseoffense.

(E) Sections 2925.41 to 2925.45 of the Revised Code do notprohibit a law enforcement officer from seeking the forfeiture of contrabandassociated with a felony drug abuse offense pursuant to section2933.43 of the Revised Code.

Sec. 2927.023. (A) As used in this section "authorized recipient of tobacco products" means a person who is:

(1) Licensed as a cigarette wholesale dealer under section 5743.15 of the Revised Code;

(2) Licensed as a distributor of tobacco products under section 5743.61 of the Revised Code;

(3) An export warehouse proprietor as defined in section 5702 of the Internal Revenue Code;

(4) An operator of a customs bonded warehouse under 19 U.S.C. 1311 or 19 U.S.C. 1555;

(5) An officer, employee, or agent of the federal government or of this state acting in the person's official capacity;

(6) A department, agency, instrumentality, or political subdivision of the federal government or of this state;

(7) A person having a consent for consumer shipment issued by the tax commissioner under section 5743.71 of the Revised Code.

The purpose of this section is to prevent the sale of cigarettes to minors and to ensure compliance with the Master Settlement Agreement, as defined in section 1346.01 of the Revised Code.

(B)(1) No person shall cause to be shipped any cigarettes to any person in this state other than an authorized recipient of tobacco products.

(2) No common carrier, contract carrier, or other person shall knowingly transport cigarettes to any person in this state that the carrier or other person reasonably believes is not an authorized recipient of tobacco products. If cigarettes are transported to a home or residence, it shall be presumed that the common carrier, contract carrier, or other person knew that the person to whom the cigarettes were delivered was not an authorized recipient of tobacco products.

(C) No person engaged in the business of selling cigarettes who ships or causes to be shipped cigarettes to any person in this state in any container or wrapping other than the original container or wrapping of the cigarettes shall fail to plainly and visibly mark the exterior of the container or wrapping in which the cigarettes are shipped with the words "cigarettes."

(D) A court shall impose a fine of up to one thousand dollars for each violation of division (B)(1), (B)(2), or (C) of this section.

Sec. 2933.43. (A)(1) Except as provided in this division orin section2913.34 or sections 2923.44 to 2923.47 or2925.41 to2925.45 of the Revised Code,a law enforcement officer shall seizeany contraband that has been, isbeing, or is intended to be usedin violation of division (A) ofsection 2933.42 of the RevisedCode. A law enforcement officershall seize contraband that is awatercraft, motor vehicle, oraircraft and that has been, isbeing, or is intended to be usedin violation of division (A) ofsection 2933.42 of the RevisedCode only if the watercraft, motorvehicle, or aircraft iscontraband because of its relationship toan underlying criminaloffense that is a felony.

Additionally, a law enforcement officer shall seize anywatercraft, motor vehicle, aircraft, or other personal propertythat is classified as contraband under division (B) of section2933.42 of the Revised Code if the underlying offense involved inthe violation of division (A) of that section that resulted inthewatercraft, motor vehicle, aircraft, or personal propertybeingclassified as contraband, is a felony.

(2) If a law enforcement officer seizes property that istitled or registered under law, including a motor vehicle,pursuant to division (A)(1) of this section, the officer or theofficer'semploying law enforcement agency shall notify the ownerof theseizure. The notification shall be given to the owner atthe owner's lastknown address within seventy-two hours after theseizure,and may be given orally by any means, includingtelephone, or bycertified mail, return receipt requested.

If the officer or the officer's agency is unable to providethenotice required by this division despite reasonable, goodfaithefforts to do so, the exercise of the reasonable, good faithefforts constitutes fulfillment of the notice requirement imposedby this division.

(B)(1) A motor vehicle seized pursuant to division (A)(1)ofthis section and the contents of the vehicle may be retainedfor areasonable period of time, not to exceed seventy-two hours,forthe purpose of inspection, investigation, and the gatheringofevidence of any offense or illegal use.

At any time prior to the expiration of the seventy-two-hourperiod, the law enforcement agency that seized the motor vehiclemay petition the court of common pleas of the county that hasjurisdiction over the underlying criminal case or administrativeproceeding involved in the forfeiture for an extension of theseventy-two-hour period if the motor vehicle or its contents areneeded as evidence or if additional time is needed for theinspection, investigation, or gathering of evidence. Upon thefiling of such a petition, the court immediately shall schedule ahearing to be held at a time as soon as possible after thefiling,but in no event at a time later than the end of the nextbusinessday subsequent to the day on which the petition wasfiled, andupon scheduling the hearing, immediately shall notifythe owner ofthe vehicle, at the address at which notification ofthe seizurewas provided under division (A) of this section, ofthe date,time, and place of the hearing. If the court, at thehearing,determines that the vehicle or its contents, or both,are neededas evidence or that additional time is needed for theinspection,investigation, or gathering of evidence, the courtmay grant thepetition and issue an order authorizing theretention of thevehicle or its contents, or both, for anextended period asspecified by the court in its order. An orderextending a periodof retention issued under this division may berenewed.

If no petition for the extension of the initialseventy-two-hour period has been filed, prior to the expirationofthat period, under this division, if the vehicle was not inthecustody and control of the owner at the time of its seizure,andif, at the end of that seventy-two-hour period, the owner ofthevehicle has not been charged with an offense oradministrativeviolation that includes the use of the vehicle asan element andhas not been charged with any other offense oradministrativeviolation in the actual commission of which themotor vehicle wasused, the vehicle and its contents shall bereleased to its owneror the owner's agent, provided that the lawenforcement agencythat seized the vehicle may require proof ofownership of thevehicle, proof of ownership or legal possessionof the contents,and an affidavit of the owner that the owner neitherknew of norexpressly or impliedly consented to the use of thevehicle thatresulted in its forfeiture as conditions precedentto release. Ifa petition for the extension of the initialseventy-two-hourperiod has been filed, prior to the expirationof that period,under this division but the court does not grantthe petition, ifthe vehicle was not in the custody and controlof the owner at thetime of its seizure, and if, at the end ofthat seventy-two-hourperiod, the owner of the vehicle has notbeen charged with anoffense or administrative violation thatincludes the use of thevehicle as an element and has not beencharged with any otheroffense or administrative violation in theactual commission ofwhich the motor vehicle was used, thevehicle and its contentsshall be released to its owner or the owner's agent,provided thatthe court may require the proof andaffidavit described in thepreceding sentence as conditionsprecedent to release. If theinitial seventy-two-hour period hasbeen extended under thisdivision, the vehicle and its contentsto which the extensionapplies may be retained in accordance withthe extension order.If, at the end of that extended period, theowner of the vehiclehas not been charged with an offense oradministrative violationthat includes the use of the vehicle asan element and has notbeen charged with any other offense oradministrative violation inthe actual commission of which themotor vehicle was used, and ifthe vehicle was not in the custodyand control of the owner at thetime of its seizure, the vehicleand its contents shall bereleased to its owner or the owner's agent,provided that thecourt may require the proof and affidavitdescribed in the thirdpreceding sentence as conditions precedentto release. In casesin which the court may require proof andaffidavits as conditionsprecedent to release, the court also mayrequire the posting of abond, with sufficient sureties approvedby the court, in an amountequal to the value of the property tobe released, as determinedby the court, and conditioned upon thereturn of the property tothe court if it is forfeited under thissection, as a furthercondition to release. If, at the end ofthe initialseventy-two-hour period or at the end of any extendedperiodgranted under this section, the owner has been chargedwith anoffense or administrative violation that includes the useof thevehicle as an element or has been charged with anotheroffense oradministrative violation in the actual commission ofwhich themotor vehicle was used, or if the vehicle was in thecustody andcontrol of the owner at the time of its seizure, thevehicle andits contents shall be retained pending disposition ofthe charge,provided that upon the filing of a motion for releaseby theowner, if the court determines that the motor vehicle oritscontents, or both, are not needed as evidence in theunderlyingcriminal case or administrative proceeding, the courtmay permitthe release of the property that is not needed asevidence to theowner; as a condition precedent to a release of that nature,thecourt may require the owner to execute a bond withthe court. Anybond so required shall be in an amount equal tothe value of theproperty to be released, as determined by thecourt, shall havesufficient sureties approved by the court, andshall beconditioned upon the return of the property to the courtto whichit is forfeited under this section.

The final disposition of a motor vehicle seized pursuant todivision (A)(1) of this section shall be determined in accordancewith division (C) of this section.

(2) Pending a hearing pursuant to division (C) of thissection, and subject to divisions (B)(1) and (C) of this section,any property lawfully seized pursuant to division (A) of thissection because it was contraband of a type described in division(A)(13)(b), (d), (e),(f), (g), (h), (i), or (j) of section2901.01 of the Revised Code shall not be subject to replevin orother action in any court and shall not be subject to releaseuponrequest of the owner, and no judgment shall be enforcedagainstthe property. Pending the hearing, and subject todivisions(B)(1) and (C) of this section, the property shall bekept in thecustody of the law enforcement agency responsible forits seizure.

Pending a hearing pursuant to division (C) of this section,and notwithstanding any provisions of division (B)(1) or (C) ofthis section to the contrary, any property lawfully seizedpursuant to division (A) of this section because it wascontrabandof a type described in division (A)(13)(a) or(c) of section2901.01 of the Revised Code shall not besubject to replevin orother action in any court and shall not be subjectto release uponrequest of the owner, and no judgment shall beenforced againstthe property. Pending the hearing, andnotwithstanding anyprovisions of division (B)(1) or (C) of thissection to thecontrary, the property shall be kept in thecustody of the lawenforcement agency responsible for itsseizure.

A law enforcement agency that seizes property underdivision(A) of this section because it was contraband of anytypedescribed in division (A)(13) of section 2901.01 ordivision (B)of section 2933.42 of the Revised Code shall maintain an accuraterecord of each item of property so seized, which record shallinclude the date on which each item was seized, the manner anddate of its disposition, and if applicable, the name of thepersonwho received the item; however, the record shall notidentify orenable the identification of the individual officerwho seized theitem. The record of property of that nature that nolonger isneeded as evidence shall be open to public inspectionduring theagency's regular business hours. Each law enforcementagencythat, during any calendar year, seizes property underdivision (A)of this section because it was contraband shallprepare a reportcovering the calendar year that cumulates all ofthe informationcontained in all of the records kept by theagency pursuant tothis division for that calendar year, andshall send a copy of thecumulative report, no later than thefirst day of March in thecalendar year following the calendaryear covered by the report,to the attorney general. Each reportreceived by the attorneygeneral is a public record open forinspection under section149.43 of the Revised Code. Not later than thefifteenth day ofApril in the calendar yearin which the reports are received, theattorneygeneral shall send to thepresident of the senate and thespeaker of the house ofrepresentatives a written notificationthat does all of thefollowing:

(a) Indicates that the attorney general has received fromlaw enforcement agencies reportsof the type described in thisdivision that cover the previouscalendar year and indicates thatthe reports were received under thisdivision;

(b) Indicates that the reportsare open for inspection undersection 149.43 of theRevised Code;

(c) Indicates that the attorney generalwill provide a copyof any or all of the reports to thepresident of the senate or thespeaker of the house ofrepresentatives upon request.

(C) The prosecuting attorney, village solicitor, citydirector of law, or similar chief legal officer who hasresponsibility for the prosecution of the underlying criminalcaseor administrative proceeding, or the attorney general if theattorney general has that responsibility, shall file a petitionfor the forfeiture, to the seizing law enforcement agency of thecontraband seized pursuant to division (A) of this section. Thepetition shall be filed in the court that has jurisdiction overthe underlying criminal case or administrative proceedinginvolvedin the forfeiture. If the property was seized on thebasis ofboth a criminal violation and an administrativeregulationviolation, the petition shall be filed by the officerand in thecourt that is appropriate in relation to the criminalcase.

The petitioner shall conduct or cause to be conducted asearch of the appropriate public records that relate to theseizedproperty for the purpose of determining, and shall make orcauseto be made reasonably diligent inquiries for the purpose ofdetermining, any person having an ownership or security interestin the property. The petitioner then shall give notice of theforfeiture proceedings by personal service or by certified mail,return receipt requested, to any persons known, because of theconduct of the search, the making of the inquiries, or otherwise,to have an ownership or security interest in the property, andshall publish notice of the proceedings once each week for twoconsecutive weeks in a newspaper of general circulation in thecounty in which the seizure occurred. The notices shall bepersonally served, mailed, and first published at least fourweeksbefore the hearing. They shall describe the propertyseized;state the date and place of seizure; name the lawenforcementagency that seized the property and, if applicable,that isholding the property; list the time, date, and place ofthehearing; and state that any person having an ownership orsecurityinterest in the property may contest the forfeiture.

If the property seized was determined by the seizing lawenforcement officer to be contraband because of its relationshipto an underlying criminal offense or administrative violation, noforfeiture hearing shall be held under this section unless theperson pleads guilty to or is convicted of the commission of, oran attempt or conspiracy to commit, the offense or a differentoffense arising out of the same facts and circumstances or unlessthe person admits or is adjudicated to have committed theadministrative violation or a different violation arising out ofthe same facts and circumstances; a forfeiture hearing shall beheld in a case of that nature no later than forty-five days aftertheconviction or the admission or adjudication of the violation,unless the time for the hearing is extended by the court for goodcause shown. The owner of any property seized because of itsrelationship to an underlying criminal offense or administrativeviolation may request the court to release the property to theowner. Uponreceipt of a request of that nature, if the courtdetermines that theproperty is not needed as evidence in theunderlying criminalcase or administrative proceeding, the courtmay permit therelease of the property to the owner. As acondition precedentto a release of that nature, the court mayrequire the owner to execute abond with the court. Any bond sorequired shall have sufficientsureties approved by the court,shall be in a sum equal to thevalue of the property, asdetermined by the court, and shall beconditioned upon the returnof the property to the court if theproperty is forfeited underthis section. Any property seizedbecause of its relationship toan underlying criminal offense oradministrative violation shallbe returned to its owner ifcharges are not filed in relation tothat underlying offense orviolation within thirty days after theseizure, if charges of that nature arefiled and subsequently aredismissed, or if charges of that nature are filedand the personcharged does not plead guilty to and is not convicted of theoffense or does not admit and is not found to have committed theviolation.

If the property seized was determined by the seizing lawenforcement officer to be contraband other than because of arelationship to an underlying criminal offense or administrativeviolation, the forfeiture hearing under this section shall beheldno later than forty-five days after the seizure, unless thetimefor the hearing is extended by the court for good causeshown.

Where possible, a court holding a forfeiture hearing underthis section shall follow the Rules of Civil Procedure. When ahearing is conducted under this section, property shall beforfeited upon a showing, by a preponderance of the evidence, bythe petitioner that the person from which the property was seizedwas in violation of division (A) of section 2933.42 of theRevisedCode. If that showing is made, the court shall issue anorder offorfeiture. If an order of forfeiture is issued inrelation tocontraband that was released to the owner or the owner's agentpursuant to this division or division (B)(1) of thissection, theorder shall require the owner to deliver theproperty, by aspecified date, to the law enforcement agency thatemployed thelaw enforcement officer who made the seizure of theproperty, andthe court shall deliver a copy of the order to theowner or send acopy of it by certified mail, return receiptrequested, to theowner at the address to which notice of theseizure was givenunder division (A)(2) of this section. Exceptas otherwiseprovided in this division, all rights, interest, andtitle to theforfeited contraband vests in the state, effectivefrom the dateof seizure.

No property shall be forfeited pursuant to this division ifthe owner of the property establishes, by a preponderance of theevidence, that the owner neither knew, nor should have known afterareasonable inquiry, that the property was used, or was likely tobe used, in a crime or administrative violation. No bona fidesecurity interest shall be forfeited pursuant to this division ifthe holder of the interest establishes, by a preponderance of theevidence, that the holder of the interest neither knew, nor shouldhave knownafter areasonable inquiry, that the property was used,or likely to beused, in a crime or administrative violation, thatthe holder of the interestdid notexpressly or impliedly consentto the use of the property in acrime or administrative violation,and that the security interestwas perfected pursuant to law priorto the seizure. If theholder of the interest satisfies the courtthat theserequirements are met, the interest shall be preservedby thecourt. In a case of that nature, the court shall eitherorder that theagency to which the property is forfeited reimbursethe holder of the interestto the extent of the preserved interestor order that theholder be paid for the interest from theproceeds of anysale pursuant to division (D) of this section.

(D)(1) Contraband ordered forfeited pursuant to thissectionshall be disposed of pursuant to divisions (D)(1) to (7)ofsection 2933.41 of the Revised Code or, if the contraband isnotdescribed in those divisions, may be used, with the approvalofthe court, by the law enforcement agency that has custody ofthecontraband pursuant to division (D)(8) of that section. Inthecase of contraband not described in any of those divisionsand ofcontraband not disposed of pursuant to any of thosedivisions, thecontraband shall be sold in accordance with thisdivision or, inthe case of forfeited moneys, disposed of inaccordance with thisdivision. If the contraband is to be sold,the prosecutingattorney shall cause a notice of the proposedsale of thecontraband to be given in accordance with law, andthe propertyshall be sold, without appraisal, at a publicauction to thehighest bidder for cash. The proceeds of a saleand forfeitedmoneys shall be applied in the following order:

(a) First, to the payment of the costs incurred inconnection with the seizure of, storage of, maintenance of, andprovision of security for the contraband, the forfeitureproceeding, and, if any, the sale;

(b) Second, the remaining proceeds or forfeited moneysaftercompliance with division (D)(1)(a) of this section, to thepaymentof the balance due on any security interest preservedpursuant todivision (C) of this section;

(c) Third, the remaining proceeds or forfeited moneysaftercompliance with divisions (D)(1)(a) and (b) of thissection, asfollows:

(i) If the forfeiture was ordered in a juvenile court, tenpercent to one or more alcohol and drug addiction treatmentprograms that arecertified by the department of alcohol and drugaddiction services undersection 3793.06 of the Revised Code andthat are specified in the order offorfeiture. Ajuvenile courtshall not certify an alcohol or drug addiction treatmentprogramin the order of forfeiture unless the program is a certifiedalcoholand drug addiction treatment program and, except asprovided in division(D)(1)(c)(i) of this section, unless theprogramis located in the county in which the court that ordersthe forfeiture islocated or in a contiguous county. If nocertified alcohol and drug addictiontreatment program is locatedin any of those counties, the juvenile court mayspecify in theorder a certified alcohol and drug addiction treatment programlocated anywhere within this state.

(ii) If the forfeiture was ordered in a juvenile court,ninetyper cent, and if the forfeiture was ordered in a courtother than a juvenilecourt, one hundred per cent to the lawenforcement trust fund of theprosecutingattorney and to the lawenforcement trust fund of the countysheriff if the county sheriffmade the seizure, to the lawenforcement trust fund of a municipalcorporation if its policedepartment made the seizure, to the lawenforcement trust fund ofa township if the seizure was made by atownship policedepartment, township police district police force,or office of atownship constable, to the law enforcement trustfund of a parkdistrict created pursuant to section 511.18 or1545.01 of theRevised Code if the seizure was made by the parkdistrict policeforce or law enforcement department, to the ~~state~~highway patrol statecontraband, forfeiture, and other fund if the statehighwaypatrol made the seizure, to the department ofpublicsafety investigative unit contraband, forfeiture, andother fundif the investigative unit of thedepartment of publicsafety madetheseizure, to the department of taxation enforcement fund if the department of taxation made the seizure, totheboard of pharmacy drug law enforcement fundcreated by division (B)(1) of section 4729.65 of the Revised Codeif the board made the seizure, or to the treasurer of state fordeposit into the peace officer training commission fund if a statelaw enforcement agency, other than the state highway patrol, theinvestigative unit of the department of public safety, the enforcement division of the department of taxation, or thestateboard of pharmacy,made the seizure. The prosecutingattorney may decline to acceptany of the remaining proceeds orforfeited moneys, and, if the prosecutingattorney sodeclines,the remaining proceeds or forfeited moneys shall beapplied to thefund described in this division that relates tothe lawenforcement agency that made the seizure.

A law enforcement trust fund shall be established by theprosecuting attorney of each county who intends to receive anyremaining proceeds or forfeited moneys pursuant to this division,by the sheriff of each county, by the legislative authority ofeach municipal corporation, by the board of township trustees ofeach township that has a township police department, townshippolice district police force, or office of the constable, and bythe board of park commissioners of each park district createdpursuant to section 511.18 or 1545.01 of the Revised Code thathasa park district police force or law enforcement department,forthe purposes of this division. There is hereby created inthestate treasury the ~~state~~ highway patrol state contraband,forfeiture,and other fund, the department ofpublic safety investigative unitcontraband, forfeiture, andother fund, the department of taxation enforcement fund, andthepeace officertraining commission fund, for the purposesdescribed in thisdivision.

Proceeds or forfeited moneys distributed to any municipalcorporation, township, or park district law enforcement trustfundshall be allocated from the fund by the legislativeauthority onlyto the police department of the municipalcorporation, by theboard of township trustees only to thetownship police department,township police district policeforce, or office of the constable,and by the board of parkcommissioners only to the park districtpolice force or lawenforcement department.

Additionally, no proceeds or forfeited moneys shall beallocated to or used by the state highway patrol, the departmentof public safety, the department of taxation, the state board of pharmacy, or a countysheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department unless the state highwaypatrol, department of public safety, department of taxation, state board of pharmacy,sheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department has adopted a writteninternalcontrol policy under division (D)(3) of this sectionthataddresses the use of moneys received from the ~~state~~ highwaypatrol statecontraband, forfeiture, and other fund, thedepartment of publicsafety investigative unitcontraband, forfeiture, and other fund,the department of taxation enforcement fund, the board of pharmacy drug lawenforcement fund, or theappropriate law enforcement trust fund.

The ~~state~~highway patrol state contraband, forfeiture, and otherfund,the department of public safety investigativeunitcontraband, forfeiture, and other fund, the department of taxation enforcement fund, and a lawenforcementtrust fund shall be expended only in accordance withthe writteninternal control policy so adopted by the recipient,and, subjectto the requirements specified in division(D)(3)(a)(ii) of thissection, only to pay the costs ofprotracted or complexinvestigations or prosecutions, to providereasonable technicaltraining or expertise, to provide matchingfunds to obtain federalgrants to aid law enforcement, in thesupport of DARE programs orother programs designed to educateadults or children with respectto the dangers associated withthe use of drugs of abuse,to paythe costs of emergency action taken under section 3745.13 of theRevised Code relative to the operation of an illegalmethamphetamine laboratory if the forfeited property or moneyinvolved was that of a person responsible for the operation of thelaboratory, or for other law enforcementpurposes that thesuperintendent of the state highway patrol,department of publicsafety, department of taxation, prosecuting attorney, countysheriff, legislativeauthority, board of township trustees, orboard of parkcommissioners determines to be appropriate. Theboard of pharmacydrug law enforcement fund shall be expendedonly in accordancewith the written internal control policy soadopted by the boardand only in accordance with section 4729.65of the Revised Code,except that it also may be expended to pay the costs of emergencyaction taken under section 3745.13 of the Revised Code relative tothe operation of an illegal methamphetamine laboratory if theforfeited property or money involved was that of a personresponsible for the operation of the laboratory. The ~~state~~highway patrol state contraband,forfeiture, and other fund, thedepartment ofpublic safety investigative unit contraband,forfeiture, andother fund, the department of taxation enforcement fund, theboardof pharmacy drug lawenforcementfund, and a law enforcement trust fund shall not beused to meetthe operating costs of the state highway patrol, oftheinvestigativeunit of the department ofpublic safety, of the department of taxation enforcement division, of thestate board of pharmacy, ofany political subdivision, or of anyoffice of a prosecutingattorney or county sheriff that areunrelated to law enforcement.

Proceeds and forfeited moneys that are paid into the statetreasury to be deposited into the peace officer trainingcommission fund shall be used by the commissiononly to pay thecosts of peaceofficer training.

Any sheriff or prosecuting attorney who receives proceedsorforfeited moneys pursuant to this division during any calendaryear shall file a report with the county auditor, no later thanthe thirty-first day of January of the next calendar year,verifying that the proceeds and forfeited moneys were expendedonly for the purposes authorized by this division and division(D)(3)(a)(ii) of this section and specifying the amounts expendedfor each authorized purpose. Any municipal corporation policedepartment that is allocated proceeds or forfeited moneys from amunicipal corporation law enforcement trust fund pursuant to thisdivision during any calendar year shall file a report with thelegislative authority of the municipal corporation, no later thanthe thirty-first day of January of the next calendar year,verifying that the proceeds and forfeited moneys were expendedonly for the purposes authorized by this division and division(D)(3)(a)(ii) of this section and specifying the amounts expendedfor each authorized purpose. Any township police department,township police district police force, or office of the constablethat is allocated proceeds or forfeited moneys from a townshiplawenforcement trust fund pursuant to this division during anycalendar year shall file a report with the board of townshiptrustees of the township, no later than the thirty-first day ofJanuary of the next calendar year, verifying that the proceedsandforfeited moneys were expended only for the purposesauthorized bythis division and division (D)(3)(a)(ii) of thissection andspecifying the amounts expended for each authorizedpurpose. Anypark district police force or law enforcementdepartment that isallocated proceeds or forfeited moneys from apark district lawenforcement trust fund pursuant to thisdivision during anycalendar year shall file a report with theboard of parkcommissioners of the park district, no later thanthe thirty-firstday of January of the next calendar year,verifying that theproceeds and forfeited moneys were expendedonly for the purposesauthorized by this division and division(D)(3)(a)(ii) of thissection and specifying the amounts expendedfor each authorizedpurpose. The superintendent of the statehighway patrol shallfile a report with the attorney general, nolater than thethirty-first day of January of each calendar year,verifying thatproceeds and forfeited moneys paid into the ~~state~~highway patrol statecontraband, forfeiture, and other fund pursuant tothis divisionduring the prior calendar year were used by thestate highwaypatrol during the prior calendar year only for thepurposesauthorized by this division and specifying the amountsexpendedfor each authorized purpose. The executive director ofthe stateboard of pharmacy shall file a report with the attorneygeneral,no later than the thirty-first day of January of eachcalendaryear, verifying that proceeds and forfeited moneys paidinto theboard of pharmacy drug law enforcement fund during thepriorcalendar year were used only in accordance with section4729.65 ofthe Revised Code and specifying the amounts expendedfor eachauthorized purpose. The peace officer trainingcommission shallfile a report with the attorney general, no later thanthethirty-first day of January of each calendar year, verifying thatproceeds and forfeited moneys paid into the peace officertrainingcommission fund pursuant to this divisionduring the priorcalendar year were used by the commission during thepriorcalendaryear only to pay the costs of peace officer training andspecifying the amount used for that purpose.

The tax commissioner shall file a report with the attorney general, not later than the thirty-first day of January of each calendar year, verifying that proceeds and forfeited moneys paid into the department of taxation enforcement fund pursuant to this division during the prior calendar year were used by the enforcement division during the prior calendar year to pay only the costs of enforcing the tax laws and specifying the amount used for that purpose.

(2) If more than one law enforcement agency issubstantiallyinvolved in the seizure of contraband that isforfeited pursuantto this section, the court ordering theforfeiture shall equitablydivide the proceeds or forfeitedmoneys, after calculating anydistribution to the law enforcementtrust fund of the prosecutingattorney pursuant to division(D)(1)(c) of this section, among anycounty sheriff whose officeis determined by the court to besubstantially involved in theseizure, any legislative authorityof a municipal corporationwhose police department is determinedby the court to besubstantially involved in the seizure, anyboard of townshiptrustees whose law enforcement agency isdetermined by the courtto be substantially involved in theseizure, any board of parkcommissioners of a park district whosepolice force or lawenforcement department is determined by thecourt to besubstantially involved in the seizure, the state boardofpharmacy if it is determined by the court to be substantiallyinvolved in the seizure, the investigative unit of the departmentofpublic safetyif itis determined by the court to besubstantially involved in theseizure, the enforcement division of the department of taxation if it is determined by the court to be substantially involved in the seizure and the state highwaypatrol if it is determined by thecourt to be substantiallyinvolved in the seizure. The proceedsor forfeited moneys shallbe deposited in the respective lawenforcement trust funds of thecounty sheriff, municipalcorporation, township, and parkdistrict, the board of pharmacydrug law enforcement fund, thedepartment of public safety investigativeunitcontraband,forfeiture, and other fund, the department of taxation enforcement fund, or the ~~state~~ highwaypatrol statecontraband,forfeiture, and other fund, in accordance withdivision (D)(1)(c)of this section. If a state law enforcementagency, other thanthe state highway patrol, the investigativeunit of the department ofpublic safety,the department of taxation, or the state board ofpharmacy, is determined by the court to besubstantially involvedin the seizure, the state agency'sequitable share of the proceedsand forfeited moneys shall bepaid to the treasurer of state fordeposit into the peace officertraining commission fund.

(3)(a)(i) Prior to being allocated or using any proceedsorforfeited moneys out of the ~~state~~ highway patrol state contraband,forfeiture, and other fund, the department ofpublic safetyinvestigative unit contraband, forfeiture, andother fund, the department of taxation enforcement fund, theboard ofpharmacy drug law enforcementfund, or a law enforcementtrust fund under division (D)(1)(c) ofthis section, the statehighway patrol, the department of public safety, the department of taxation, thestate boardof pharmacy, and a county sheriff,prosecuting attorney, municipalcorporation police department,township police department,township police district policeforce, office of the constable, orpark district police force orlaw enforcement department shalladopt a written internal controlpolicy that addresses the statehighway patrol's, department ofpublic safety's, department of taxation's, state board ofpharmacy's, sheriff's,prosecuting attorney's, policedepartment's, police force's,office of the constable's, or lawenforcement department's useand disposition of all the proceedsand forfeited moneys receivedand that provides for the keeping ofdetailed financial recordsof the receipts of the proceeds andforfeited moneys, the generaltypes of expenditures made out ofthe proceeds and forfeitedmoneys, the specific amount of eachgeneral type of expenditure,and the amounts, portions, andprograms described in division(D)(3)(a)(ii) of this section. Thepolicy shall not provide foror permit the identification of anyspecific expenditure that ismade in an ongoing investigation.

All financial records of the receipts of the proceeds andforfeited moneys, the general types of expenditures made out ofthe proceeds and forfeited moneys, the specific amount of eachgeneral type of expenditure by the state highway patrol, by thedepartment of public safety, by the department of taxation, by the state board of pharmacy, andby a sheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department, and the amounts, portions,and programs described in division (D)(3)(a)(ii) of this sectionare public records open for inspection under section 149.43 oftheRevised Code. Additionally, a written internal controlpolicyadopted under this division is a public record of that nature, andthe state highway patrol, the department of public safety, the department of taxation, thestate board of pharmacy, or the sheriff, prosecuting attorney,municipal corporation police department, township policedepartment, township police district police force, office of theconstable, or park district police force or law enforcementdepartment that adopted it shall comply with it.

(ii) The written internal control policy of a countysheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department shall provide that at leastten per cent of the first one hundred thousand dollars ofproceedsand forfeited moneys deposited during each calendar yearin thesheriff's, prosecuting attorney's, municipalcorporation's,township's, or park district's law enforcementtrust fund pursuantto division (B)(7)(c)(ii) of section 2923.46or division(B)(8)(c)(ii) of section 2925.44 ofthe Revised Code, and at leasttwenty per cent of the proceedsand forfeited moneys exceeding onehundred thousand dollars thatare so deposited, shall be used inconnection with communitypreventive education programs. Themanner in which the describedpercentages are so used shall bedetermined by the sheriff,prosecuting attorney, department,police force, or office of theconstable after the receipt andconsideration of advice onappropriate community preventiveeducation programs from thecounty's board of alcohol, drugaddiction, and mental healthservices, from the county's alcoholand drug addiction servicesboard, or through appropriatecommunity dialogue. The financialrecords described in division(D)(3)(a)(i) of this section shallspecify the amount of theproceeds and forfeited moneys depositedduring each calendar yearin the sheriff's, prosecutingattorney's, municipal corporation's,township's, or parkdistrict's law enforcement trust fund pursuantto division(B)(7)(c)(ii) of section 2923.46 or division(B)(8)(c)(ii) ofsection 2925.44 of the Revised Code, the portionofthat amount that was used pursuant to the requirements of thisdivision, and the community preventive education programs inconnection with which the portion of that amount was so used.

As used in this division,"community preventive educationprograms" includes, but is not limited to, DARE programs andotherprograms designed to educate adults or children withrespect tothe dangers associated with the use of drugs of abuse.

(b) Each sheriff, prosecuting attorney, municipalcorporation police department, township police department,township police district police force, office of the constable,orpark district police force or law enforcement department thatreceives in any calendar year any proceeds or forfeited moneysoutof a law enforcement trust fund under division (D)(1)(c) ofthissection or uses any proceeds or forfeited moneys in its lawenforcement trust fund in any calendar year shall prepare areportcovering the calendar year that cumulates all of theinformationcontained in all of the public financial records keptby thesheriff, prosecuting attorney, municipal corporationpolicedepartment, township police department, township policedistrictpolice force, office of the constable, or park districtpoliceforce or law enforcement department pursuant to division(D)(3)(a)of this section for that calendar year, and shall senda copy ofthe cumulative report, no later than the first day ofMarch in thecalendar year following the calendar year covered bythe report,to the attorney general.

The superintendent of the state highway patrol shallpreparea report covering each calendar year in which the statehighwaypatrol uses any proceeds or forfeited moneys in the ~~state~~highwaypatrol state contraband, forfeiture, and other fund underdivision(D)(1)(c) of this section, that cumulates all of theinformationcontained in all of the public financial records keptby the statehighway patrol pursuant to division (D)(3)(a) ofthis section forthat calendar year, and shall send a copy of thecumulativereport, no later than the first day of March in thecalendar yearfollowing the calendar year covered by the report,to the attorneygeneral.

The department of public safety shall prepare a reportcovering each fiscal year in which the department uses anyproceeds or forfeited moneys in the department of public safetyinvestigative unit contraband, forfeiture, and other fund underdivision (D)(1)(c) of this section thatcumulates all of theinformation contained in all of the publicfinancial records keptby the department pursuant to division(D)(3)(a) of this sectionfor that fiscal year. The departmentshall send a copy of thecumulative report to the attorneygeneral no later than the firstday of August in the fiscal yearfollowing the fiscal year coveredby the report. The director ofpublic safety shall include in thereport a verification thatproceeds and forfeited moneys paid intothe department ofpublic safety investigative unit contraband,forfeiture, and other fund under division (D)(1)(c) of thissection during theprecedingfiscal year were used by thedepartment during that fiscal year only forthe purposesauthorized by that division and shall specify theamount used foreach authorized purpose.

The tax commissioner shall prepare a report covering each calendar year in which the department of taxation enforcement division uses any proceeds or forfeited moneys in the department of taxation enforcement fund under division (D)(1)(c) of this section, that cumulates all of the information contained in all of the public financial records kept by the department of taxation enforcement division pursuant to division (D)(3)(a) of this section for that calendar year, and shall send a copy of the cumulative report, not later than the first day of March in the calendar year following the calendar year covered by the report, to the attorney general.

The executive director of the state board of pharmacy shallprepare a report covering each calendar year in which the boarduses any proceeds or forfeited moneys in the board of pharmacydrug law enforcement fund under division (D)(1)(c) of thissection, that cumulates all of the information contained in allofthe public financial records kept by the board pursuant todivision (D)(3)(a) of this section for that calendar year, andshall send a copy of the cumulative report, no later than thefirst day of March in the calendar year following the calendaryear covered by the report, to the attorney general. Each reportreceived by the attorney general is a public record open forinspection under section 149.43 of the Revised Code. Not laterthan thefifteenth day of April in the calendar year inwhich thereports are received, the attorneygeneral shall send to thepresident of the senate and the speaker of the house ofrepresentatives a written notification that does all of thefollowing:

(i) Indicates that the attorney general has received fromentities or persons specified in this division reportsof the typedescribed in this division that cover the previouscalendar yearand indicates that the reports were received under thisdivision;

(ii) Indicates that the reportsare open for inspectionunder section 149.43 of theRevised Code;

(iii) Indicates that the attorney generalwill provide acopy of any or all of the reports to thepresident of the senateor the speaker of the house ofrepresentatives upon request.

(4)(a) A law enforcement agency that receives pursuant tofederal law proceeds from a sale of forfeited contraband, proceedsfromanother disposition of forfeited contraband, orforfeitedcontraband moneys shall deposit, use, and account forthe proceedsor forfeited moneys in accordance with, andotherwise comply with,the applicable federal law.

(b) If the state highway patrol receives pursuant to federallaw proceedsfrom a sale of forfeited contraband, proceeds fromanother disposition offorfeited contraband, or forfeitedcontraband moneys, the appropriategovernmental officials shalldeposit the proceeds into the ~~state~~ highway patrol federal contraband,forfeiture, andother fund ~~all~~, which is hereby created in the state treasury. All interest or other earnings derived from theinvestment of the proceeds or forfeited moneys shall be credited to the fund. The state highwaypatrolshall use and account for that interest or other earningsin accordance withthe applicable federal law.

(c) If the investigative unit of thedepartment of publicsafety receives pursuant to federal law proceeds from asale offorfeited contraband, proceeds from another disposition offorfeited contraband, or forfeited contraband moneys, theappropriate governmental officials shall deposit the proceeds into thedepartment ofpublic safety investigative unit~~contraband,forfeiture, and other~~ federal equitable share account fund ~~all~~, which is hereby created in the state treasury. All interestor other earnings derivedfrom the investment of the proceeds orforfeited moneys shall be credited to the fund. Thedepartment shall use and account for thatinterest or otherearnings in accordance with the applicablefederal law.

(d) If the tax commissioner receives pursuant to federal law proceeds from a sale of forfeited contraband, proceeds from another disposition of forfeited contraband, or forfeited contraband moneys, the appropriate governmental officials, shall deposit into the department of taxation enforcement fund all interest or other earnings derived from the investment of the proceeds or forfeited moneys. The department shall use and account for that interest or other earnings in accordance with the applicable federal law.

(e) Divisions (D)(1) to (3) of this section do not apply toproceedsorforfeited moneys received pursuant to federal law orto the interest or otherearnings that are derived from theinvestment of proceeds or forfeited moneysreceived pursuant tofederal law and that are described in division (D)(4)(b)of thissection.

(E) Upon the sale pursuant to this section of any propertythat is required to be titled or registered under law, the stateshall issue an appropriate certificate of title or registrationtothe purchaser. If the state is vested with title pursuant todivision (C) of this section and elects to retain property thatisrequired to be titled or registered under law, the state shallissue an appropriate certificate of title or registration.

(F) Notwithstanding any provisions of this section to thecontrary, any property that is lawfully seized in relation to aviolation of section 2923.32 of the Revised Code shall be subjectto forfeiture and disposition in accordance with sections 2923.32to 2923.36of the Revised Code; any property that is forfeitedpursuantto section 2923.44 or 2923.45 of the Revised Code inrelation to a violation of section2923.42 of the Revised Code orin relation to an act of a juvenile that is a violation ofsection2923.42 of the Revised Code may be subject to forfeiture anddisposition inaccordance with sections 2923.44 to 2923.47 of theRevised Code;and anyproperty that is forfeited pursuant tosection 2925.42 or 2925.43of the Revised Code in relation to afelony drug abuse offense,as defined in section 2925.01 of theRevised Code, or in relationto an act that, if committed by anadult, would be a felonydrug abuse offense of that nature, may besubject to forfeiture anddisposition in accordance with sections2925.41 to 2925.45 of the Revised Codeor this section.

(G) Any failure of a law enforcement officer or agency, aprosecuting attorney, village solicitor, city director of law, orsimilar chief legal officer, a court, or the attorney general tocomply with any duty imposed by this section in relation to anyproperty seized or with any other provision of this section inrelation to any property seized does not affect the validity ofthe seizure of the property, provided the seizure itself was madein accordance with law, and is not and shall not be considered tobe the basis for the suppression of any evidence resulting fromthe seizure of the property, provided the seizure itself was madein accordance with law.

(H) Contraband that has been forfeited pursuant todivision(C) of this section shall not be available for use topay any fineimposed upon a person who is convicted of or pleadsguilty to anunderlying criminal offense or a different offensearising out ofthe same facts and circumstances.

Sec. 2933.74. (A)(1) With respect to forfeitable propertyordered forfeited under section 2933.73 of the Revised Code, thecourt that issued the order, upon petition of the prosecutingattorney or attorney general who prosecuted the case, may do anyof the following:

(b) Award compensation to persons who provide informationthat results in a forfeiture under section 2933.73 of the RevisedCode;

(c) Take any other action to protect the rights ofinnocent persons that is in the interest of justice and that isconsistent with the purposes of sections 2933.71 to 2933.75 ofthe Revised Code.~~(2)~~

(2) The court shall maintain an accurate record of theactions it takes under division (A)(1) of this section withrespect to the forfeitable property ordered forfeited. Therecord is a public record open for inspection under section149.43 of the Revised Code.

(B)(1) Subject to division (A) of this section andnotwithstanding any contrary provision of section 2933.41 of theRevised Code, the prosecuting attorney or attorney general whoprosecuted the case shall order the disposal of forfeitableproperty ordered forfeited in any proceeding under section2933.73 of the Revised Code as soon as feasible, making dueprovisions for the rights of innocent persons, by any of thefollowing methods:

(d) If the property is contraband and is not needed forevidence in any pending criminal or civil proceeding, pursuant tosection 2933.41 or any other applicable section of the RevisedCode.

(2) Any interest in personal or real property not disposedof pursuant to division (B) of this section and not exercisableby, or transferable for value to, the state shall expire andshall not revert to the person who was convicted of or pleadedguilty to the medicaid fraud offense. No person who wasconvicted of or pleaded guilty to the medicaid fraud offense andno person acting in concert with a person who was convicted of orpleaded guilty to the medicaid fraud offense is eligible topurchase forfeited property from the state.

(3) Upon application of a person, other than the personwho was convicted of or pleaded guilty to the medicaid fraudoffense or a person acting in concert with or on behalf of theperson who was convicted of or pleaded guilty to the medicaidfraud offense, the court may restrain or stay the disposal of theforfeitable property pursuant to this division pending theconclusion of any appeal of the criminal case giving rise to theforfeiture or pending the determination of the validity of aclaim to or interest in the property pursuant to division (F) ofsection 2933.73 of the Revised Code, if the applicantdemonstrates that proceeding with the disposal of the propertywill result in irreparable injury, harm, or loss to theapplicant.

(4) The prosecuting attorney or attorney general whoprosecuted the case shall maintain an accurate record of eachitem of property disposed of pursuant to division (B) of this section, whichrecord shall include the date on which each item came into theprosecuting attorney's or attorney general'scustody, the manner and date of disposition, and, if applicable,the name of the person who received the item. The record shallnot identify or enable the identification of the individualofficer who seized the property, and the record is a publicrecord open for inspection under section 149.43 of the RevisedCode.

Each prosecuting attorney who disposes in any calendar yearof any item of property pursuant to division (B) of this section shall preparea report covering the calendar year that cumulates all of theinformation contained in all of the records the prosecutingattorney kept pursuant tothis division for that calendar year and shall send thecumulative report, no later than the first day of March in thecalendar year following the calendar year covered by the report,to the attorney general. No later than the first day of March inthe calendar year following the calendar year covered by thereport, the attorney general shall prepare a report covering thecalendar year that cumulates all of the records the attorneygeneral kept pursuantto this division for that calendar year. Each report received orprepared by the attorney general is a public record open forinspection under section 149.43 of the Revised Code. Not later thanthe fifteenth day of April in the calendar year following thecalendar year covered by the reports, the attorney generalshall send to the president of the senate and the speaker of the house ofrepresentatives a written notification that does all of thefollowing:

(a) Indicates that the attorney general has received fromprosecuting attorneys reportsof the type described in this division that cover the previouscalendar year and indicates that the reports were received under thisdivision;

(b) Lists the attorney general's own cumulative report coveringthe previous calendar year;

(d) Indicates that the attorney generalwill provide a copy of any or all of the reports to thepresident of the senate or the speaker of the house ofrepresentatives upon request.

(C)(1) The proceeds of the sale of all forfeitableproperty ordered forfeited pursuant to section 2933.73 of theRevised Code shall be deposited into the state treasury andcredited to the medicaid fraud investigation and prosecutionfund, which is hereby created.

(2) The proceeds credited to themedicaid fraud investigation and prosecution fund pursuant todivision (C)(1) of this section shall be disposed of in thefollowing order:

(a) To the payment of the fees and costs of the forfeitureand sale, including expenses of seizure, maintenance, and custodyof the property pending its disposition, advertising, and courtcosts;

(b) Except as otherwise provided in division (C)(2)(b) ofthis section, the remainder shall be paid to the law enforcementtrust fund of the prosecuting attorney that is establishedpursuant to division (D)(1)(c) of section 2933.43 of the RevisedCode or to the attorney general, and to the law enforcement trustfund of the county sheriff that is established pursuant to thatdivision if the county sheriff substantially conducted theinvestigation, to the law enforcement trust fund of a municipalcorporation that is established pursuant to that division if itspolice department substantially conducted the investigation, tothe law enforcement trust fund of a township that is establishedpursuant to that division if the investigation was substantiallyconducted by a township police department, township policedistrict police force, or office of a township constable, or tothe law enforcement trust fund of a park district createdpursuant to section 511.18 or 1545.01 of the Revised Code that isestablished pursuant to that division if the investigation wassubstantially conducted by its park district police force or lawenforcement department. The prosecuting attorney or attorneygeneral may decline to accept any of the remaining proceeds,and, if the prosecuting attorney or attorney general sodeclines, they shall beapplied to the fund described in division (C)(2)(b) of thissection that relates to the appropriate law enforcement agencythat substantially conducted the investigation.

If the state highway patrol substantially conducted theinvestigation, the director of budget and management shalltransfer the remaining proceeds to thestate highway patrol for deposit into the ~~state~~ highway patrol statecontraband, forfeiture, and other fund that is created bydivision (D)(1)(c) of section 2933.43 of the Revised Code. Ifthe state board of pharmacy substantially conducted theinvestigation, the director shall transfer the remainingproceeds to the board for deposit into theboard of pharmacy drug law enforcement fund that is created bydivision (B)(1) of section 4729.65 of the Revised Code. If astate law enforcement agency, other than the state highwaypatrol, the board, or the attorney general, substantiallyconducted the investigation, the director shall transfer theremaining proceeds to the treasurer ofstate for deposit into the peace officer trainingcommission fundthat is created by division (D)(1)(c) of section 2933.43 of theRevised Code.

The remaining proceeds that are paidto the attorney general shall be used and expended only inrelation to the investigation and prosecution of medicaid fraudoffenses or the activities identified in section 109.85 of theRevised Code, and those that are paid to a law enforcement trustfund or that are deposited into the ~~state~~ highway patrol statecontraband, forfeiture, and other fund, the board of pharmacydrug law enforcement fund, or the peace officer trainingcommissionfund pursuant to division (C)(2)(b) of this section shall beallocated, used, and expended only in accordance with division(D)(1)(c) of section 2933.43 of the Revised Code, only inaccordance with a written internal control policy adopted underdivision (D)(3) of that section, and, if applicable, only inaccordance with division (B)(1) of section 4729.65 of the RevisedCode. The annual reports that pertain to the funds and that arerequired by divisions (D)(1)(c) and (3)(b) of section 2933.43 ofthe Revised Code also shall address the remaining proceedsthat are paid or deposited into the fundspursuant to division (C)(2)(b) of this section.

(3) If more than one law enforcement agency substantiallyconducted the investigation, the court ordering the forfeitureshall equitably divide the remaining proceeds among the law enforcementagencies that substantiallyconducted the investigation, in the manner described in division(D)(2) of section 2933.43 of the Revised Code for the equitabledivision of contraband proceeds and forfeited moneys. Theequitable shares of the proceeds sodetermined by the court shall be paid or deposited into theappropriate funds specified in division (C)(2)(b) of thissection.

(D) As used in this section, "law enforcement agency"includes, but is not limited to, the state board of pharmacy.

Sec. 2949.092. If a person is convicted of or pleads guilty to an offense andthe court specifically is required, pursuant to section 2743.70 or, 2949.091, or 2949.093 ofthe Revised Code or pursuant to any other section of the Revised Code, toimpose a specified sumof money as costs in the case in addition to any other costs that the court isrequired or permitted by law to impose in the case, the court shall not waivethe payment of the specified additional court costs that the section of theRevised Code specifically requires the court to impose unless the courtdetermines that the offender is indigent and the court waives the payment ofall court costs imposed upon the offender.

Sec. 2949.093. (A) A board of county commissioners of any county containing fifty-five or more law enforcement agencies by resolution may elect to participate in a criminal justice regional information system, either by creating and maintaining a new criminal justice regional information system or by participating in an existing criminal justice regional information system.

(B) A county is not eligible to participate in any criminal justice regional information system unless it creates in its county treasury, pursuant to section 305.28 of the Revised Code, a criminal justice regional information fund.

(C) A county that elects to participate in a criminal justice regional information system shall obtain revenues to fund its participation by establishing an additional court cost not exceeding five dollars to be imposed for moving violations that occur in that county. The board of county commissioners of that county shall establish the amount of the additional court cost by resolution. The board shall give written notice to all courts located in that county that adjudicate or otherwise process moving violations that occur in that county of the county's election to participate in the system and of the amount of the additional court cost. Upon receipt of such notice, each recipient court shall impose that amount as an additional court cost for all moving violations the court adjudicates or otherwise processes, in accordance with divisions (D) and (E) of this section.

(D)(1) The court in which any person is convicted of or pleads guilty to any moving violation that occurs in a county that has elected to participate in a criminal justice regional information system shall impose the sum established by the board pursuant to division (C) of this section as costs in the case in addition to any other court costs that the court is required by law to impose upon the offender. The court shall not waive the payment of the additional court cost established by the board pursuant to division (C) of this section unless the court determines that the offender is indigent and waives the payment of all court costs imposed upon the indigent offender.

All such money collected during a month shall be transmitted on the first business day of the following month by the clerk of the court to the county treasurer of the county in which the court is located and thereafter the county treasurer shall deposit the money in that county's criminal justice regional information fund.

(2) The juvenile court in which a child is found to be a juvenile traffic offender for an act that is a moving violation occurring in a county participating in a criminal justice regional information system shall impose the sum established by the board pursuant to division (C) of this section as costs in the case in addition to any other court costs that the court is required by law to impose upon the juvenile traffic offender. The juvenile court shall not waive the payment of the additional court cost established by the board pursuant to division (C) of this section unless the court determines that the juvenile is indigent and waives the payment of all court costs imposed upon the indigent offender.

All such money collected during a month shall be transmitted on the first business day of the following month by the clerk of the court to the county treasurer of the county in which the juvenile court is located and thereafter the county treasurer shall deposit the money in that county's criminal justice regional information fund.

(E) Whenever a person is charged with any offense that is a moving violation and posts bail, the court shall add to the amount of the bail the set sum required to be paid by division (D)(1) of this section. The clerk of the court shall retain that set sum until the person is convicted, pleads guilty, forfeits bail, is found not guilty, or has the charges dismissed. If the person is convicted, pleads guilty, or forfeits bail, the clerk shall transmit the set sum to the county treasurer, who shall deposit it in the county criminal justice regional information fund. If the person is found not guilty or the charges are dismissed, the clerk shall return the set sum to the person.

(F) No person shall be placed or held in a detention facility as defined in section 2921.01 of the Revised Code for failing to pay the court cost or bail that is required to be paid by this section.

(G)(1) Except as provided in division (G)(2) of this section, all funds collected by a county under this section shall be used by that county only to pay the costs it incurs in creating and maintaining a new criminal justice regional information system or to pay the costs it incurs in participating in an existing criminal justice regional information system.

(2) If the board of county commissioners of a county determines that the funds in that county's criminal justice regional information fund are more than sufficient to satisfy the purpose for which the additional court cost described in division (C) of this section was imposed, the board may declare a surplus in the fund. The county may expend the surplus only to pay the costs it incurs in improving the law enforcement computer technology of local law enforcement agencies located in that county.

(1) "Moving violation" means any violation of any statute or ordinance, other than section 4513.263 of the Revised Code or an ordinance that is substantially equivalent to that section, that regulates the operation of vehicles, streetcars, or trackless trolleys on highways or streets or that regulates size or load limitations or fitness requirements of vehicles. "Moving violation" does not include the violation of any statute or ordinance that regulates pedestrians or the parking of vehicles.

(2) "Bail" means cash, a check, a money order, a credit card, or any other form of money that is posted by or for an offender pursuant to sections 2937.22 to 2937.46 of the Revised Code, Criminal Rule 46, or Traffic Rule 4 to prevent the offender from being placed or held in a detention facility, as defined in section 2921.01 of the Revised Code.

(3) "Criminal justice regional information system" means a governmental computer system that serves as a cooperative between political subdivisions in a particular region for the purpose of providing a consolidated computerized information system for criminal justice agencies in that region.

Sec. 2971.05. (A)(1) After control over an offender's serviceof a prison term imposed pursuant to division (A)(3) of section2971.03 of the Revised Code has beentransferred pursuant to section 2971.04 of the Revised Code to the court, thecourt shallschedule, within thirtydays of any of the following, a hearing on whether to modify in accordancewithdivision (C) of this section the requirement that the offender servethe entire prison term in a state correctionalinstitution or to terminate theprison term inaccordance with division (D) of this section:

(a) Control over the offender's service of a prison termis transferred pursuant to section 2971.04 of the Revised Code to the court,and no hearingto modify therequirement has been held;

(b) Two years elapse after the most recent prior hearing heldpursuant to division (A)(1) or (2) of this section;

(c) The prosecuting attorney, the department of rehabilitationandcorrection, or the adult parole authority requests the hearing, and recommendsthat the requirement be modified or that the offender's prisonterm be terminated.

(2) After control over the offender's service of a prison termhas been transferred pursuant to section 2971.04 of the Revised Code to the court, the court,within thirty days of either of the following, shall conduct a hearing onwhetherto modify in accordance with division (C) of this section therequirement that the offender serve the entire prison term in a statecorrectionalinstitution, whether to continue, revise, or revoke an existing modificationofthat requirement, or whether to terminate the term in accordance with division(D)of this section:

(a) The requirement that the offender serve the entire prisonterm in a state correctional institution has been modified, and the offenderis taken into custody for any reason.

(b) Thedepartment of rehabilitation and correction or the prosecuting attorneynotifies the court pursuant to section 2971.06 of the Revised Code regarding a known orsuspected violation of a term or condition of themodification or a belief that there is a substantial likelihood that theoffender has committed or is about to commit a sexually violent offense.

(3) After control over the offender's service of a prison termhas been transferred pursuant to section 2971.04 of the Revised Code to the court, the court,in any of the following circumstances, may conduct a hearing within thirtydays to determine whether to modify in accordance with division (C)of this section the requirement that the offender serve the entire prison termin a state correctional institution, whether to continue, revise, or revoke anexisting modification of that requirement, or whether to terminate thesentence in accordancewith division (D) of this section:

(c) One or more examiners who have conducted a psychologicalexamination and assessment of the offender file a statement that states thatthere no longer is a likelihood that the offender will engage in the future ina sexually violent offense.

(B)(1) Before a court holds a hearing pursuant to division(A) of this section, the court shall provide notice of the date,time,place, and purpose of the hearing to the offender, the prosecuting attorney,the department of rehabilitation and correction, and the adult paroleauthorityand shall request the department to preparepursuant to section 5120.61 of the Revised Code an update of the most recent risk assessmentand report relative to the offender. The offenderhas the right to be present at any hearing held under this section. At the hearing, theoffender and the prosecuting attorney may make a statementand present evidence as to whether the requirement shouldor should not be modified, whether the existing modification of therequirement should be continued, revised, or revoked, and whether the prisonterm should or should not be terminated.

(2) At a hearing held pursuant to division (A) of this section,the court may and, if the hearing is held pursuant to division(A)(1)(a), (1)(b), or (3)(c)of this section, shall determine by clear and convincing evidence whetherthe offender is unlikely to commit a sexually violentoffense in the future.

(3) At the conclusion of the hearing held pursuant to division(A)of this section, the court may order that the requirement that the offenderserve the entire prison term in a state correctional institution be continued,that the requirement be modified pursuant to division (C) of thissection, that an existing modification be continued, revised, or revokedpursuant to division (C) of this section, or that the prison term beterminated pursuant to division (D) of this section.

(C)(1) If, at the conclusion of a hearing held pursuant todivision(A) of this section, the court determines by clear and convincingevidence that the offender will not represent a substantialrisk of physical harm to others, the court may modify the requirement that theoffender serve the entire prison term in a state correctional institution in amanner that the court considers appropriate. If the court modifies the requirement, the offender is subject to supervision under division (E) of this section.

(2) The modification of the requirement does not terminate the prison termbut servesonly to suspend the requirement that the offender serve the entire term in astate correctional institution. The prison term shall remain ineffect for the offender's entire life unless the court terminates the prisonterm pursuant to division (D) of this section. The offender shallremain under the jurisdiction of the court for the offender's entire lifeunless the court so terminates the prison term. The modification of therequirement does not terminate theclassification of the offender, as described in division(F) of section 2971.03 of the Revised Code, as a sexual predator forpurposes of Chapter 2950. of the Revised Code, and the offender is subject to supervision under division (E) of this section.

(3) If the court revokes the modification under consideration, the courtshall order that the offender be returned to the custody of the department ofrehabilitation and correction to continue serving the prison term to which themodification applied, and section 2971.06 of the Revised Code applies regarding the offender.

(D)(1) If, at the conclusion of a hearing held pursuant todivision (A) of this section, the court determines by clear andconvincing evidence that the offender is unlikely to commit asexually violent offense in the future, the court mayterminate the offender's prison term imposed under division(A)(3) of section 2971.03 of the Revised Code, subject to the offendersatisfactorilycompleting the period of conditional release required by this division and compliance with division (E) of this section. Ifthe court terminates the prison term, the court shall place the offender onconditional release for five years, require the offender to comply with division (E) of this section, notify the adult parole authority of itsdetermination and of the termination of the prison term, and order the adultparole authority to supervise the offender during the five-year period ofconditional release and to supervise the offender pursuant to division (E) of this section. Upon receipt of a notice from a court pursuant to thisdivision, theadult parole authority shall supervise the offender who is the subject of thenotice during the five-year period of conditional release, periodically notifythe court of the offender's activitiesduring that five-year period of conditional release, and file with the courtno later than thirty days prior to the expiration of the five-year period ofconditional release a written recommendation as to whether the termination ofthe offender's prison term should be finalized, whether the period ofconditional release should be extended, or whether another type of actionauthorized pursuant to this chapter should be taken.

Upon receipt of a recommendation of the adult parole authority filedpursuant to this division, the court shall hold ahearing to determine whether to finalize the termination of the offender'sprison term, toextend the period of conditional release, or to take anothertype of action authorized pursuant to this chapter. The court shall hold thehearing no later than the date on which the five-year period of conditionalrelease terminates and shall provide notice of the date, time, place, andpurpose of the hearing to the offender and to the prosecuting attorney. Atthe hearing, the offender, the prosecuting attorney, and the adultparole authority employee who supervised the offender during the period ofconditional release may make a statement and present evidence.

(2) If the court determines to extend an offender's period of conditionalrelease, it may do so for additional periods of one year in the same manneras the original period of conditional release, and except as otherwisedescribed in this division, all procedures and requirements that applied tothe original period of conditional release apply to the additional period ofextended conditional release unless the court modifies a procedure orrequirement. If an offender's period of conditional release is extended asdescribed in this division, all references to a five-year period ofconditional release that are contained in division (D)(1) of thissection shall be construed, in applying the provisions of that division to theextension, as being references to the one-year period of the extension of theconditional release.

If the court determines to take another type of action authorized pursuantto this chapter, it may do so in the same manner as if the action had beentaken at any other stage of the proceedings under this chapter. As used in this division, "another type of action" includes the revocation ofthe conditional release and the return of the offender to a state correctionalinstitution to continue to serve the prison term.

If the court determines to finalize the termination of the offender'sprison term,it shall notify the department of rehabilitation andcorrection, the department shall enter into its records a final release andissue to the offender a certificate of final release, and the prison termthereafter shall be considered completed and terminated in everyway.

The termination of the offender's prison term pursuant todivision (D)(1) or (2) of thissection does not affect the classification of theoffender, as described in division(F) of section 2971.03 of the Revised Code, as a sexual predator forpurposes of Chapter 2950. of the Revised Code, and does not terminate the adult parole authority's supervision of a sexually violent predator with an active global positioning system device, pursuant to division (E) of this section. The classification of the offender as a sexual predator is permanent and continues until the offender's death as described in division (D)(2) of section 2950.09 of the Revised Code.

(E) The adult parole authority shall supervise an offender whose prison term is modified as provided in division (C) of this section or whose prison term is terminated as provided in division (D) of this section with an active global positioning system device during any time period in which the offender is not incarcerated in a state correctional institution. Unless the court removes the offender's classification as a sexually violent predator, an offender is subject to supervision with an active global positioning system pursuant to this division for the offender's entire life. The costs of administering the supervision of sexually violent offenders with an active global positioning system device shall be paid out of funds from the reparations fund, created pursuant to section 2743.191 of the Revised Code. This division shall only apply to a sexually violent predator who is released from the custody of the department of rehabilitation and correction on or after the effective date of this amendment.

Sec. 3107.10. (A) Notwithstanding section 3107.01 of theRevised Code, as used in this section,"agency" does notinclude apublic children services agency.

(B) An agency or attorney, whichever arranges a minor'sadoption,shall file with the court apreliminary estimateaccounting not later than the timethe adoption petition for theminor is filed with the court. The agency orattorney, whicheverarranges the adoption, also shall file afinal accounting with thecourt before a final decreeof adoption is issued or aninterlocutory order of adoption is finalized forthe minor. Theagency or attorney shall complete and fileaccountings in a manneracceptable to the court.

An accounting shall specify all disbursements of anything ofvaluethe petitioner, a person on the petitioner's behalf, and theagency orattorney made and has agreed to make in connection withtheminor's permanent surrender under division (B) of section5103.15of the Revised Code, placement undersection 5103.16 ofthe Revised Code, and adoption underthis chapter. The agency orattorney shallinclude in an accounting an itemization of eachexpense listed in division(C) of this section. The itemizationof the expenses specified indivisions (C)(3) and (4) of thissection shall show the amount theagency or attorney charged or isgoing tocharge for the services and the actual cost to the agencyorattorney of providing the services. An accounting shallindicate whether any expenses listed in division (C) ofthissection do not apply to the adoption proceeding for whichtheaccounting is filed.

The agency or attorney shall include with a preliminaryestimate accountingand a final accounting a written statementsigned by the petitioner that thepetitioner has reviewedtheaccounting and attests to its accuracy.

(C) No petitioner, person acting on apetitioner's behalf,or agency or attorney shallmake or agree to make anydisbursements inconnection with the minor's permanent surrender,placement, or adoption other than for the following:

(1) Physician expenses incurred on behalf of the birthmother or minorin connection with prenatal care, delivery, andconfinement prior to or following the minor's birth;

(2) Hospital or other medical facility expenses incurred onbehalfof the birth mother or minor in connection with the minor'sbirth;

(3) Expenses charged by the attorney arranging the adoptionfor providinglegal services in connection with the placement andadoption,including expenses incurred by the attorney pursuant tosections 3107.031,3107.081, 3107.082, 3107.09, and 3107.12 of theRevised Code;

(4) Expenses charged by the agency arranging the adoptionfor providingservices in connection with the permanent surrenderand adoption, includingthe agency's application fee and theexpenses incurred by the agency pursuantto sections 3107.031,3107.09, 3107.12, 5103.151, and 5103.152 of theRevised Code;

(5) Temporary costs of routine maintenance and medicalcarefor a minor required under section 5103.16 of the Revised Code iftheperson seeking to adopt the minor refuses to acceptplacementof the minor;

(6) Guardian ad litem fees incurred on behalf of theminorin any court proceedings;

(7) Foster care expenses incurred in connection withanytemporary care and maintenance of the minor;

(8) Court expenses incurred in connection with theminor'spermanent surrender, placement, and adoption.

(D) If a court determines from an accounting that an amountthatis going to be disbursed for an expense listed in division(C) of this sectionis unreasonable, the court may order areduction in the amount to bedisbursed. If a court determinesfrom an accounting that an unreasonableamount was disbursed foran expenselisted in division (C) of this section, the court mayorder theperson who received the disbursement to refund to theperson who made thedisbursement an amount the court orders.

If a court determines from an accounting that a disbursementfor an expensenot permitted by division (C) of this section isgoing to be made,the court may issue an injunction prohibitingthe disbursement. Ifa court determines from an accounting that adisbursement for an expense not permitted by division (C)of thissection was made, the court may order the person who received thedisbursement to return it to the person who made the disbursement.

If a court determines that a finalaccounting does notcompletely report all the disbursements thatare going to be madeor have been made in connection with theminor's permanentsurrender, placement, and adoption, the court shallorder theagency or attorney to file with thecourt an accounting thatcompletely reports all such disbursements.

The agency or attorney shall file the final accounting withthe court not later than ten days prior to the date scheduled forthe finalhearing on the adoption. The court may not issue afinaldecree of adoptionor finalize an interlocutory order ofadoption of a minor until at least tendays after the agency orattorney files the final accounting.

(E) At the conclusion of each adoption proceeding, thecourtshall prepare a summary of the proceeding, and on or beforethetenth day of each month, send copies of the summaries for allproceedings concluded during the preceding calendar month to thedepartment of job and family services. The summary shall contain:

(1) A notation of the nature and approximate value oramountof anything paid in connection with the proceeding,compiled fromthe final accounting required by division(B) of this section andindicating the category of division(C) of this section to whichany payment relates;

(2) If the court has not issued a decree because of therequirements of division (D) of this section, a notation ofthatfact and a statement of the reason for refusing to issue thedecree, related to the financial data summarized under division(E)(1) of this section;

The summary shall contain no information identifying bynameany party to the proceeding or any other person, but maycontainadditional narrative material that the court considersuseful toan analysis of the summary.

~~(F)~~ This section does not apply to an adoption by astepparent whose spouse is a biological or adoptive parent of theminor.

Sec. 3111.04. (A) An action to determine the existence ornonexistence of the father and child relationship may be broughtby the child or the child's personal representative, the child'smother or her personal representative, a man alleged or alleginghimself to be the child's father, the child support enforcementagency of the county in which the child resides if the child'smother is a recipient of public assistance or of services under Title IV-D ofthe "Social Security Act," 88 Stat. 2351 (1975), 42 U.S.C.A. 651,as amended, or the alleged father's personal representative.

(C) If an action under this section is brought before thebirth of the child and if the action is contested, allproceedings, except service of process and the taking ofdepositions to perpetuate testimony, may be stayed until afterthe birth.

(D) A recipient of public assistance or of services under Title IV-D ofthe "Social Security Act," 88 Stat. 2351 (1975), 42 U.S.C.A. 651,as amended, shall cooperate with the child supportenforcement agency ofthe county in which a child resides to obtain anadministrativedetermination pursuant to sections 3111.38 to3111.54 of theRevised Code, or, if necessary, a courtdetermination pursuant to sections 3111.01 to 3111.18of the Revised Code, oftheexistence or nonexistence of a parent andchild relationship between the father and the child. If the recipient failstocooperate, the agency may commence an action to determine the existence ornonexistence of a parent and child relationship between the father and thechild pursuant to sections 3111.01 to 3111.18 of theRevised Code.

(E) As used in this section, "public assistance" means medicalassistance under Chapter 5111. of the Revised Code, assistance underChapter 5107. of the Revised Code, or disability financial assistance under Chapter5115. of the Revised Code~~, or disability medical assistance under Chapter 5115. of the Revised Code~~.

Sec. 3119.54. Ifeither party to a childsupport orderissued inaccordance withsection 3119.30 of theRevised Code iseligiblefor medical assistance under Chapter5111. ~~or 5115.~~ oftheRevised Code and theother party hasobtained health insurancecoverage, theparty eligible formedical assistance shall notify any physician, hospital, orotherprovider of medical services for which medical assistanceisavailable of the name and address of theother party'sinsurer andofthe number of theother party's healthinsurance or health carepolicy, contract, or plan. Anyphysician, hospital, or otherprovider of medical services forwhich medical assistance isavailable under Chapter 5111. ~~or 5115.~~of the RevisedCode who isnotified under this division of theexistence of a healthinsurance or health care policy, contract,or plan with coveragefor children who are eligible for medicalassistance shall firstbill the insurer for any services providedfor those children. Ifthe insurer fails to pay all or any partof a claim filedunderthis section and the services for which theclaim is filed arecoveredbyChapter 5111. ~~or 5115.~~ of theRevised Code, thephysician, hospital, or othermedical servicesprovider shall billthe remaining unpaid costs ofthe services inaccordance withChapter 5111. ~~or 5115.~~ of theRevised Code.

Sec. 3121.12. (A) On receipt of a noticethat alump sum payment of one hundred fifty dollars or more is to be paid tothe obligor, the court, with respect to a court support order, or the childsupport enforcement agency, with respect to an administrative child supportorder,shall do either of the following:

(1) If the obligor is in default under the support orderor has any arrearages under the support order, issue anorder requiring the transmittal of the lump sum payment, or any portion of the lump sum payment sufficient to pay the arrearage in full, to theoffice of child support;

(2) If the obligor is not in default under the supportorder and does not have any arrearages under the supportorder, issue an order directing the person who gave the notice tothe court or agency to immediately pay the full amount of the lump sumpayment to the obligor.

(B) ~~On receipt of any~~ Any moneys received by the office of child support pursuant to division(A) of this section~~, the office ofchild support~~shall pay the amount of the lump sum payment that is necessary todischarge all of the obligor's arrearages to the obligee and,within two business days after its receipt of the money, anyamount that is remaining after the payment of the arrearages tothe obligor be distributed in accordance with rules adopted under section 3121.71 of the Revised Code.

(C) A court that issued an order prior to January 1,1998, requiring an employer to withhold an amount from anobligor's personal earnings for the payment of support shallissue a supplemental order that does not change the originalorder or the related support order requiring the employer to doall of the following:

(1) No later than the earlier of forty-five days before alump sum payment is to be made or, if the obligor's right to alump sum payment is determined less than forty-five days beforeit is to be made, the date on which that determination is made,notify the child support enforcement agency of any lump sumpayment of any kind of one hundred fifty dollars ormore that is to bepaid to the obligor;

(2) Hold the lump sum payment for thirty days after thedate on which it would otherwise be paid to the obligor;

(3) On order of the court, pay any specified amount ofthe lump sum payment to the office of child support.

(D) An employer that knowingly fails to notify the childsupport enforcement agency in accordance withthis section or section 3121.03 of the Revised Code of anylump sum payment to be made to an obligoris liable for any support payment not made to theobligee as a result of its knowing failure to give the notice.

Sec. 3121.50. On receipt of any amount forwarded froma payor or financial institution,the office of child support shalldistribute the amount tothe obligee within two business days of its receipt of the amountforwarded. ~~The~~ Unless otherwise prohibited from doing so by a law of this state or the United States, the office may distribute the amount by means of electronic disbursement, and the obligee shall accept payment by means of electronic disbursement. The director of job and family services may adopt, revise,or amend rules under Chapter 119. of the RevisedCode to assist in theimplementation of this section.

Sec. 3125.18. A child support enforcement agency shalladminister a Title IV-A program identified under division(A)~~(3)~~(4)(c) or ~~(d)~~(f) of section 5101.80 of the Revised Code that thedepartment of job and family services provides for the agency toadminister under the department's supervision pursuant to section5101.801 of the Revised Code.

Sec. 3125.191. There is hereby created in the state treasury the child support operating fund, which is a state special revenue fund. The department of job and family services may deposit into the fund a portion of the federal incentives described in division (A) of section 3125.19 of the Revised Code and authorized by 42 U.S.C. 658a that are received by the department of job and family services from the United States department of health and human services. The department of job and family services may use money in the child support operating fund for program and administrative purposes associated with the program of child support enforcement authorized by section 3125.03 of the Revised Code.

Sec. 3301.079. (A)(1) Not later than December 31, 2001,thestate board of education shall adoptstatewide academicstandardsfor each of grades kindergartenthrough twelve inreading,writing, and mathematics. Not later than December 31,2002, thestate board shall adopt statewide academic standards foreach ofgrades kindergarten through twelve in science andsocialstudies.The standards shall specify the academic contentandskills thatstudents are expected to know and be able to doateach gradelevel.

(2) When academic standards have beencompleted for anysubject area required by this division, thestate board shallinform allschool districts of the content ofthose standards.

(B) Not later than eighteen months after the completion ofacademicstandards for any subject area required by division (A)of this section, the state boardshall adopt a model curriculumfor instruction in that subjectarea for each of gradeskindergarten through twelve that is sufficient to meet the needsof students in every community. The model curriculum shall bealignedwith the standards to ensure that the academic content andskillsspecified for each grade level are taught to students.When any model curriculum hasbeen completed, the state boardshall inform all school districtsof the content of that modelcurriculum.

Allschool districts may utilize the state standards and themodel curriculum established by the state board, together withother relevantresources, examples, or models to ensure thatstudents have theopportunity to attain the academic standards.Upon request, thedepartment of education shall provide technicalassistance to anydistrict in implementing the model curriculum.

Nothing in this section requires any school district toutilize all or any part of a model curriculum developed under thisdivision.

(C) The state board shall develop achievement tests alignedwith the academic standards and model curriculum for each of thesubject areas and grade levels required by section 3301.0710 ofthe Revised Code.

When any achievementtest has been completed,the state boardshall inform all schooldistricts of itscompletion, and thedepartment of education shallmake theachievement test availableto the districts. Schooldistrictsshall administer theachievement test beginning in theschool yearindicated in section3301.0712 of the Revised Code.

(D)(1) ~~Not later than July 1, 2008, and except as providedindivision (D)(3) of this section, the~~ The state board shall adopt adiagnostic assessment aligned with the academic standards andmodel curriculum for each of grades kindergarten through two inreading, writing, and mathematics and for ~~each of grades~~ grade three~~through eight~~ in ~~reading,~~ writing~~, mathematics, science, andsocial studies~~. The diagnostic assessment shall be designed tomeasure student comprehension of academic content and mastery ofrelated skills for the relevant subject area and grade level. Anydiagnostic assessment shall not include components toidentifygiftedstudents. Blank copiesof diagnostic tests shall be publicrecords.

(2)When each diagnostic assessment has beencompleted,thestate boardshall inform all school districts ofitscompletionand thedepartment of education shall make thediagnosticassessmentavailable to the districts at no cost to thedistrict.Schooldistricts shall administer the diagnosticassessmentpursuant tosection 3301.0715 of the Revised Codebeginning thefirst schoolyear following the development of theassessment.

~~(3) The state board shall not adopt a diagnostic assessmentfor any subject area and grade level for which the state boarddevelops an achievement test under division (C) of this section.~~

(E) Whenever the state board or the department of educationconsults with persons for the purpose of drafting or reviewing anystandards, diagnostic assessments, achievement tests, or modelcurriculum required under this section, the state board or thedepartment shall first consult with parents of students inkindergarten through twelfth grade and with active Ohio classroomteachers, other school personnel,and administrators withexpertise in the appropriate subject area.Whenever practicable,the state board anddepartment shall consultwith teachersrecognized as outstandingin their fields.

If the department contracts with more than one outside entity for the development of the achievement tests required by this section, the department shall ensure the interchangeability of those tests.

(F) The fairness sensitivity review committee, establishedby rule of the state board of education, shall not allow anyquestion on any achievement test or diagnostic assessmentdeveloped under this section or any proficiency test prescribed byformer section 3301.0710 of the Revised Code, as it existed priortoSeptember 11, 2001, toinclude, be written topromote, or inquire as to individual moralor social values orbeliefs. The decision of the committee shallbe final. Thissection does not create a private cause of action.

Sec. 3301.0710. The state board of education shall adoptrules establishing a statewide program to test studentachievement. The state board shallensure that all testsadministered under the testing program arealigned with theacademic standards and model curricula adopted bythe state boardand are created with input from Ohio parents, Ohioclassroomteachers, Ohio school administrators, and otherOhioschoolpersonnelpursuant to section 3301.079 ofthe Revised Code.

The testing program shall be designed to ensure that studentswho receivea high school diploma demonstrate at least highschoollevels ofachievement in reading, writing,mathematics,science,andsocial studies.

(a) Two statewide achievement tests, one each designed to measure thelevel of reading and mathematics skill expected at the end of third grade;

(b) Three statewide achievement tests, one each designed tomeasure the level of reading, writing, and mathematics skill expected at theend of fourth grade;

(c) Four statewide achievement tests, one each designed tomeasure the level of reading, mathematics, science, and social studies skill expected atthe end of fifth grade;

(d) Two statewide achievement tests, one each designed to measure the level of reading and mathematics skill expected at the end of sixth grade;

(e) Three statewide achievement tests, one each designed tomeasure the level of reading, writing, and mathematics skillexpected at the end of seventh grade;

(f) Four statewide achievement tests, one each designed tomeasure the level of reading, mathematics, science, and social studies skill expected atthe end of eighth grade.

(2) The state board shall determine and designate at least five ranges of scores on each of the achievement tests describedin divisions (A)(1) and (B) of this section. Each range of scores shall bedeemed to demonstrate a level of achievement so that any studentattaining a score within such range has achieved one of thefollowing:

(B)The tests prescribed under this division shallcollectively be known as the Ohio graduation tests. The stateboard shall prescribe five statewide highschoolachievementtests, one each designed to measurethe levelof reading,writing, mathematics, science, andsocialstudies skill expectedat the end of tenthgrade. The state board shall designate a score in at least the range designated under division (A)(2)(c) of this section on each such test that shall be deemed to be a passing score on the test as a condition toward granting high school diplomas under sections 3313.61, 3313.611, 3313.612, and 3325.08 of the Revised Code.

The state board may enter into a reciprocal agreement withthe appropriate body or agency of any other state that hassimilarstatewideachievement testing requirements forreceivinghighschool diplomas, under which any student who hasmetanachievement testing requirement of one stateis recognized ashaving met the similarachievementtesting requirement of theother state for purposes of receiving ahigh school diploma. Forpurposes of this section and sections3301.0711 and 3313.61 oftheRevised Code, any student enrolled inany public high schoolinthis state who has metan achievement testing requirementspecified in a reciprocalagreement entered into under thisdivision shall be deemed to haveattained at least the applicablescore designated under thisdivision on each test required bythisdivision that is specifiedin the agreement.

(C) ~~The~~ Except as provided in division (H) of this section, the state board shall annually designate as followsthedates on which the tests prescribed under this section shallbeadministered:

(1) For the reading test prescribed under division(A)(1)(a) of thissection, as follows:

(b) At least one date of each school year that is notearlierthan Monday of the week containing the ~~eighth~~ first day of~~March~~ May;

(c) One date during the summer that is not earlier than the tenth day of June nor later than the fifteenth day of July for studentsreceiving summerremediation services under section 3313.608 ofthe RevisedCode.

(2) For the mathematics test prescribed under division (A)(1)(a) of this section and the tests prescribed underdivisions(A)(1)(b),(c), (d), (e), and (f)of this section, at least onedate of eachschool year that is not earlier than Monday of theweekcontainingthe~~eighth~~ first day of ~~March~~ May;

(3) For the tests prescribed under division (B) of thissection, at least one date in each school year that isnot earlierthan Monday of the week containing the fifteenth dayofMarch forall tenth grade students and atleast one date prior to thethirty-first day ofDecember and at least one date subsequent tothat date but priorto the thirty-first day of March of eachschool year for eleventh andtwelfth grade students.

(D) In prescribing test dates pursuant to division(C)(3)ofthis section, the state board shall, to the greatestextentpracticable,provide options to school districts in the case oftestsadministered under that division to eleventh and twelfthgradestudents and in the case of tests administered to studentspursuant to division(C)(2) of section3301.0711 of the RevisedCode. Such options shall include at least anopportunityforschool districtsto give such tests outside of regular schoolhours.

(E) In prescribing test dates pursuant to this section, thestateboard of education shall designate the dates in such a wayas to allow areasonable length of time between the administrationof tests prescribed underthis section and any administration ofthe NationalAssessment of EducationProgress Test given tostudents in the same grade levelpursuant to section3301.27 ofthe Revised Code or federal law.

(F) The state board shall prescribe a practice version of each Ohio graduation test described in division (B) of this section that is of comparable length to the actual test.

(G) Any committee established by the department of education for the purpose of making recommendations to the state board regarding the state board's designation of scores on the tests described by this section shall inform the state board of the probable percentage of students who would score in each of the ranges established under division (A)(2) of this section on the tests if the committee's recommendations are adopted by the state board. To the extent possible, these percentages shall be disaggregated by gender, major racial and ethnic groups, limited English proficient students, economically disadvantaged students, students with disabilities, and migrant students.

If the state board intends to make any change to the committee's recommendations, the state board shall explain the intended change to the Ohio accountability task force established by section 3302.021 of the Revised Code. The task force shall recommend whether the state board should proceed to adopt the intended change. Nothing in this division shall require the state board to designate test scores based upon the recommendations of the task force.

(H)(1) The state board shall require any alternate assessment administered to a student under division (C)(1) of section 3301.0711 of the Revised Code to be completed and submitted to the entity with which the department contracts for the scoring of the test not later than the first day of April of the school year in which the test is administered.

(2) For any test prescribed by this section, the state board may designate a date one week earlier than the applicable date designated under division (C) of this section for the administration of the test to limited English proficient students.

(3) In designating days for the administration of the tests prescribed by division (A) of this section, the state board shall require the tests for each grade level to be administered on consecutive days.

(1) Annually furnishto, grade, and score all tests requiredbysection 3301.0710 of the Revised Code tobe administered bycity,local,exemptedvillage, and joint vocational schooldistricts, except that each district shall score any test administered pursuant to division (B)(10) of this section. Each test so furnished shall include the data verification code of the student to whom the test will be administered, as assigned pursuant to division (D)(2) of section 3301.0714 of the Revised Code. In furnishing the practice versions of Ohio graduation tests prescribed by division (F) of section 3301.0710 of the Revised Code, the department shall make the tests available on its web site for reproduction by districts. In awarding contracts for grading tests, thedepartment shall give preference to Ohio-based entities employingOhio residents.

(2) Adopt rules for the ethical use of tests andprescribingthe manner in which the tests prescribed by section3301.0710 ofthe Revised Code shall be administered to students.

(B) Except as provided in divisions (C) and (J) of thissection, the board of education of each city, local, and exemptedvillage school district shall, in accordance with rules adoptedunder division (A) of this section:

(1) Administer the reading test prescribed under division (A)(1)(a)ofsection 3301.0710 of the Revised Code twice annually toallstudents in thethird grade who have not attained the scoredesignated for that test under division (A)(2)(c) of section3301.0710 of the RevisedCode and once each summer to studentsreceiving summer remediationservices undersection 3313.608 ofthe Revised Code.

(2) Administer the mathematics test prescribed under division (A)(1)(a) of section 3301.0710 of the Revised Code at least once annually to all students in the third grade.

(3) Administer the tests prescribed under division (A)(1)(b)of section 3301.0710 of the Revised Code at least onceannuallyto all students in the fourth grade.

(4) Administer the tests prescribedunder division(A)(1)(c)of section 3301.0710 of the Revised Code at leastonce annuallytoall students in thefifth grade.

(5) Administer the tests prescribed under division (A)(1)(d) of section 3301.0710 of the Revised Code at least once annually to all students in the sixth grade.

(6) Administerthe tests prescribed under division(A)(1)(e)of section 3301.0710 of the Revised Code at leastonceannuallytoall students in theseventhgrade.

(7)Administerthe tests prescribed under division (A)(1)(f)of section 3301.0710 of the Revised Code at least once annually toall students in the eighth grade.

(8) Except as provided in division (B)(9) of thissection,administer any test prescribed under division (B) ofsection3301.0710 of the Revised Code as follows:

(a) At least once annually to all tenth grade students andatleast twice annuallyto all students in eleventh or twelfthgrade who have not yet attained the score on that test designatedunder that division;

(b) To any person who has successfully completed thecurriculum in any high school or the individualized educationprogram developed for the person by any high school pursuant tosection 3323.08 of the Revised Code but has not received a highschool diploma and who requests to take such test, at any timesuch test is administered in the district.

(9) In lieu of the board of education of any city, local, orexempted village school district in which the student is alsoenrolled, the board of a joint vocational school district shalladminister any test prescribed under division (B) of section3301.0710 of the Revised Code at least twice annually to any student enrolled in the joint vocational school district who hasnot yet attained the score on that test designated under thatdivision. A board of a joint vocational school district may alsoadminister such a test to any student described in division(B)(8)(b) of this section.

(10) If the district has been declared to be under an academic watch or in a state of academic emergency pursuant to section 3302.03 of the Revised Code or has a three-year average graduation rate of not more than seventy-five per cent, administer each test prescribed by division (F) of section 3301.0710 of the Revised Code in September to all ninth grade students, beginning in the school year that starts July 1, 2005.

(C)(1)(a) Any student receiving special education servicesunderChapter 3323. of the Revised Codemay be excused fromtakingany particular test required to be administered under thissection if the individualized education program developed for thestudent pursuant to section 3323.08 of the Revised Code excusesthe student from taking that testandinstead specifies analternate assessment method approved by thedepartment ofeducation as conforming to requirements of federallaw for receiptof federal funds for disadvantaged pupils. To theextentpossible, the individualized education program shall notexcusethe student from taking a test unless no reasonableaccommodationcan be made to enable the student to take the test.

(b) Any alternate assessment approved by the departmentfora student under this division shall produce measurable resultscomparable to those produced by the tests which the alternateassessments are replacing in order to allow for the student'sassessment results to be included in the data compiled for aschool district or building under section 3302.03 of the Revised Code.

(c) Any studentenrolled in a charterednonpublic schoolwho has been identified,based on an evaluation conducted inaccordance with section3323.03 of the Revised Code or section 504of the"RehabilitationAct of 1973," 87 Stat. 355, 29 U.S.C.A.794, as amended, as achild with a disability shall be excusedfrom taking anyparticular testrequired to be administered underthis section ifa plan developed for thestudent pursuant to rulesadopted by thestate board excuses the student fromtaking thattest. In thecase of any student so excused from taking a test,the charterednonpublic school shall not prohibit the student fromtaking thetest.

(2) A district board may, for medical reasons or othergoodcause, excuse a student from taking a test administeredunder thissection on the date scheduled, but any such test shallbeadministered to such excused student not later thannine daysfollowing the scheduled date. The board shall annuallyreport thenumber of students who have not taken one or more ofthe testsrequired by this section to the state board ofeducation not laterthan the thirtieth day ofJune.

(3) As used in this division, "limited English proficient student"has the same meaning as in 20 U.S.C. 7801.

No school district board shall excuse any limited English proficient student from taking any particular test required to be administered under this section, except that any limited English proficient student who has been enrolled in United States schools for less than one full school year shall not be required to take any such reading or writing test. However, no board shall prohibit a limited English proficient student who is not required to take a test under this division from taking the test. A board may permit any limited English proficient student to take any test required to be administered under this section with appropriate accommodations, as determined by the department. For each limited English proficient student, eachschool district shall annually assess that student's progressin learningEnglish, in accordance with procedures approved by thedepartment.

Thegoverning authority of acharterednonpublic school may excuse a limited English proficient student from taking any test administered under this section. However, no governing authority shall prohibita limited English proficient studentfromtaking the test.

(D)(1) In the school year next succeedingthe school year inwhich the tests prescribed by division (A)(1) or (B) ofsection3301.0710of the Revised Codeor former division (A)(1), (A)(2), or (B) ofsection3301.0710 of the Revised Code as it existed prior toSeptember 11, 2001, are administered to anystudent,the boardof education of any school district in whichthestudentisenrolled in that year shall provideto the student interventionservicescommensurate with the student's testperformance,including any intensive intervention required undersection3313.608 of the Revised Code, in any skill in which thestudentfailed to demonstrate at leasta score at the proficientlevelon the test.

(2) Following any administration of the tests prescribed by division (F) of section 3301.0710 of the Revised Code to ninth grade students, each school district that has a three-year average graduation rate of not more than seventy-five per cent shall determine for each high school in the district whether the school shall be required to provide intervention services to any students who took the tests. In determining which high schools shall provide intervention services based on the resources available, the district shall consider each school's graduation rate and scores on the practice tests. The district also shall consider the scores received by ninth grade students on the reading and mathematics tests prescribed under division (A)(1)(f) of section 3301.0710 of the Revised Code in the eighth grade in determining which high schools shall provide intervention services.

Each high school selected to provide intervention services under this division shall provide intervention services to any student whose test results indicate that the student is failing to make satisfactory progress toward being able to attain scores at the proficient level on the Ohio graduation tests. Intervention services shall be provided in any skill in which a student demonstrates unsatisfactory progress and shall be commensurate with the student's test performance. Schools shall provide the intervention services prior to the end of the school year, during the summer following the ninth grade, in the next succeeding school year, or at any combination of those times.

(E) Except as provided in section 3313.608 of the RevisedCode and division(M) of this section,no school district board ofeducation shallutilize any student's failure toattain aspecified score onany test administered under thissectionas afactor in any decision to deny the student promotionto a highergrade level. However, a district board maychoose notto promotetothe next grade level any student who does not takeanytestadministered under this section or make upsuch test asprovidedby division (C)(2) of this section and who is not exempt from the requirement to take the test under division (C)(3) of this section.

(F) No person shall be charged a fee for taking any testadministered under this section.

(G) ~~Not later than sixty days after any administration ofany test prescribed by division (A)(1) or (B) of section 3301.0710 of the Revised Code, the~~ (1) Each school district board shall submit the tests administered in the spring under division (B)(1) of this section and the tests administered under divisions (B)(2) to (7) of this section to the entity with which the department contracts for the scoring of the tests not later than the Friday after the tests are administered, except that any such test that a student takes during the make-up period described in division (C)(2) of this section shall be submitted not later than the Friday following the day the student takes the test.

(2)The department or an entity with which the department contracts for the scoring of the test shall send to each school district board a list of theindividual test scores of all persons taking ~~the~~ any test prescribed by division (A)(1) or (B) of section 3301.0710 of the Revised Code within sixty days after its administration, but in no case shall the scores be returned later than the fifteenth day of June following the administration. For anytests administered under this section by a joint vocational schooldistrict, the department or entity shall also send to each city, local, orexempted village school district a list of the individual testscores of any students of such city, local, or exempted villageschool district who are attending school in the joint vocationalschool district.

(H) Individual test scores on any tests administered underthis section shall be released by a district board only inaccordance with section 3319.321 of the Revised Code and therulesadopted under division (A) of this section. No districtboard orits employees shall utilize individual or aggregate testresultsin any manner that conflicts with rules for the ethicaluse oftests adopted pursuant to division (A) of this section.

(I) Except as provided in division (G) of this section,thedepartment or an entity with which the department contracts for the scoring of the test shall not release any individual test scores onanytest administered under this section ~~and~~. The state board of education shall adopt rules toensure the protection of student confidentiality at all times. The rules may require the use of the data verification codes assigned to students pursuant to division (D)(2) of section 3301.0714 of the Revised Code to protect the confidentiality of student test scores.

(J) Notwithstandingdivision (D) of section 3311.52 of theRevised Code, this sectiondoes not apply to the board ofeducation of any cooperative education school district except asprovided underrules adopted pursuant to this division.

(1) In accordance with rules that the state board ofeducation shall adopt, the board of education of any city,exempted village, or local school district with territory in acooperative educationschooldistrict established pursuant todivisions (A) to (C) ofsection3311.52 of the Revised Code mayenter into an agreementwith theboard of education of thecooperativeeducation school district for administering any testprescribedunder this section to students of the city, exemptedvillage, orlocal school district who are attending school in thecooperative education school district.

(2) In accordance with rules that the state board ofeducation shall adopt, the board of education of any city,exempted village, or local school district with territory in acooperative education school district established pursuant tosection 3311.521 of the Revised Code shall enter into anagreementwith the cooperative district that provides for theadministrationof any test prescribed under this section to bothof thefollowing:

(a) Students who are attending school in the cooperativedistrict and who, if the cooperative district were notestablished, would be entitled to attend school in the city,local, or exempted village school district pursuant to section3313.64 or 3313.65 of the Revised Code;

Any testing of students pursuant to such an agreement shallbe in lieu of any testing of such students or persons pursuant tothis section.

(K)(1) Any chartered nonpublic school may participate inthetesting program by administering any of the tests prescribedbysection 3301.0710 or 3301.0712 of the Revised Code if the chiefadministratorof the school specifies which tests the schoolwishes toadminister. Such specification shall be made inwriting to thesuperintendent of public instruction prior to thefirst day ofAugust of any school year in which tests areadministered andshall include a pledge that the nonpublic schoolwill administerthe specified tests in the same manner as publicschools arerequired to do under this section and rules adoptedby thedepartment.

(2) The department of education shall furnish the testsprescribed by section 3301.0710 or 3301.0712 of the Revised Code to anychartered nonpublic school electing to participate under thisdivision.

(L)(1)The superintendent of the state school for the blindandthesuperintendent of the state school for the deaf shalladministerthe tests described by section 3301.0710 of theRevisedCode.Eachsuperintendent shall administer the tests inthe samemannerasdistrict boards are required to do under thissectionand rulesadopted by the department of educationand in conformitywithdivision (C)(1)(a) of this section.

(2) The department of education shall furnish the testsdescribed by section 3301.0710 of the Revised Code to eachsuperintendent.

(M) Notwithstanding division (E) of this section,a schooldistrict mayuse a student's failure to attain a score in atleast the basic range on the mathematics test described by division (A)(1)(a) of section 3301.0710 of the Revised Code or on any of thetestsdescribed by division(A)(1)(b), (c), (d), (e), or (f) ofsection 3301.0710 of theRevisedCodeas a factor in retaining that student in the currentgradelevel.

(N)(1) ~~The~~ In the manner specified in divisions (N)(3) to (5) of this section, the tests required by section3301.0710of theRevised Code shall become public records pursuant tosection149.43 of the Revised Code onthe first day of Julyfollowing theschool year that the test wasadministered, except that the reading test prescribed under division (A)(1)(a) of section 3301.0710 of the Revised Code shall become a public record on the sixteenth day of July following the school year that the test was administered.

(2) The department may field test proposed testquestionswithsamples of students to determine the validity,reliability,or appropriatenessof test questions for possibleinclusion in afuture year's test. The department also may use anchor questions on tests to ensure that different versions of the same test are of comparable difficulty.

Field test questions and anchor questions shall not be considered in computingtest scores forindividual students. Field test questions and anchor questions may beincludedas part of the administration of any testrequired bysection3301.0710 of the Revised Code.

(3) Any field test question or anchor question administered under division(N)(2) ofthis section shall not be a public record. Such fieldtest questions and anchor questions shall beredacted from any tests whicharereleased as a public record pursuant to division (N)(1) ofthissection.

(4) This division applies to the tests prescribed by division (A) of section 3301.0710 of the Revised Code.

(a) The first administration of each test, as specified in section 3301.0712 of the Revised Code, shall be a public record.

(b) For subsequent administrations of each test, not less than forty per cent of the questions on the test that are used to compute a student's score shall be a public record. The department shall determine which questions will be needed for reuse on a future test and those questions shall not be public records and shall be redacted from the test prior to its release as a public record.

(5) Each test prescribed by division (B) of section 3301.0710 of the Revised Code that is administered in the spring shall be a public record. Each test prescribed by that division that is administered in the fall or summer shall not be a public record.

(1) "Three-year average" means the average of the most recent consecutive three school years of data.

(2) "Dropout" means a student who withdraws from school before completing course requirements for graduation and who is not enrolled in an education program approved by the state board of education or an education program outside the state. "Dropout" does not include a student who has departed the country.

(3) "Graduation rate" means the ratio of students receiving a diploma to the number of students who entered ninth grade four years earlier. Students who transfer into the district are added to the calculation. Students who transfer out of the district for reasons other than dropout are subtracted from the calculation. If a student who was a dropout in any previous year returns to the same school district, that student shall be entered into the calculation as if the student had entered ninth grade four years before the graduation year of the graduating class that the student joins.

Sec. 3301.0714. (A) The state board of education shalladopt rules for a statewide education management informationsystem. The rules shall require the state board toestablishguidelines for the establishment and maintenance of the system inaccordance with this section and the rules adopted under thissection. The guidelines shall include:

(1) Standards identifying and defining the types of datainthe system in accordance with divisions (B) and (C) of thissection;

(2) Procedures for annually collecting and reporting thedata to the state board in accordance with division(D) of thissection;

(3) Procedures for annually compiling the data inaccordancewith division (G) of this section;

(4) Procedures for annually reporting the data to thepublicin accordance with division (H) of this section.

(B) The guidelines adopted under this section shallrequirethe data maintained in the education managementinformation systemto include at least the following:

(1) Student participation and performance data, for eachgrade in each school district as a whole and for each grade ineach school building in each school district, thatincludes:

(a) The numbers of students receiving each category ofinstructional service offered by the school district, such asregular education instruction, vocational education instruction,specialized instruction programs or enrichment instruction thatispart of the educational curriculum, instruction for giftedstudents, instruction for handicapped students, and remedialinstruction. The guidelines shall require instructional servicesunder this division to be divided into discrete categories if aninstructional service is limited to a specific subject, aspecifictype of student, or both, such as regular instructionalservicesin mathematics, remedial reading instructional services,instructional services specifically for students gifted inmathematics or some other subject area, or instructional servicesfor students with a specific type of handicap. The categories ofinstructional services required by the guidelines under thisdivision shall be the same as the categories of instructionalservices used in determining cost units pursuant to division(C)(3) of this section.

(b) The numbers of students receiving support orextracurricular services for each of the support services orextracurricular programs offered by the school district, such ascounseling services, health services, and extracurricular sportsand fine arts programs. The categories of services required bythe guidelines under this division shall be the same as thecategories of services used in determining cost units pursuant todivision (C)(4)(a) of this section.

(d) Academic achievement levels as assessed by the testingof studentachievement under sections 3301.0710 and3301.0711 ofthe Revised Code;

(e) The number of students designated as having ahandicapping condition pursuant to division (C)(1) of section3301.0711 of the Revised Code;

(f) The numbers of students reported to the state boardpursuant to division (C)(2) of section 3301.0711 of the RevisedCode;

(g) Attendance rates and the average daily attendance forthe year. For purposes of this division, a student shall becounted as present for any field trip that is approved by theschool administration.

(m) For pupils in grades nine through twelve, the averagenumber of carnegie units, as calculated in accordance with stateboard of education rules;

(n) Graduation rates, to be calculated in a mannerspecifiedby the department of education that reflects the rateatwhichstudents who were in the ninth grade three years priortothecurrent year complete school and that is consistent withnationally accepted reporting requirements;

(o) Results of diagnostic assessments administered tokindergarten students as required under section 3301.0715 of theRevised Code to permit a comparison of the academic readiness ofkindergarten students. However, no district shall be required toreport to the department the results of any diagnostic assessmentadministered to a kindergarten student if the parent of thatstudent requests the district not to report those results.

(a) The total numbers of licensed employees andnonlicensedemployees and the numbers of full-timeequivalent licensedemployees and nonlicensed employees providingeach category ofinstructional service, instructional supportservice, andadministrative support service used pursuant todivision (C)(3) ofthis section. The guidelines adopted underthis section shallrequire these categories of data to bemaintained for the schooldistrict as a whole and, whereverapplicable, for each grade inthe school district as a whole, foreach school building as awhole, and for each grade in eachschool building.

(b) The total number of employees and the number offull-time equivalent employees providing each category of serviceused pursuant to divisions (C)(4)(a) and (b) of this section, andthe total numbers of licensed employees and nonlicensedemployeesand the numbers of full-time equivalent licensedemployees andnonlicensed employees providing each categoryused pursuant todivision (C)(4)(c) of this section. Theguidelines adopted underthis section shall require thesecategories of data to bemaintained for the school district as awhole and, whereverapplicable, for each grade in the schooldistrict as a whole, foreach school building as a whole, and foreach grade in each schoolbuilding.

(c) The total number of regular classroom teachersteachingclasses of regular education and the average number ofpupilsenrolled in each such class, in each of gradeskindergartenthrough five in the district as a whole and in eachschoolbuilding in the school district.

(d) The number of master teachers employed by each school district and each school building, once a definition of master teacher has been developed by the educator standards board pursuant to section 3319.61 of the Revised Code.

(3)(a) Student demographic data for each school district,including information regarding the gender ratio of the schooldistrict's pupils, the racial make-up of the school district'spupils, the number of limited English proficient students in the district, and an appropriate measure of the number of the schooldistrict's pupils who reside in economically disadvantagedhouseholds. The demographic data shall be collected in a mannerto allow correlation with data collected under division (B)(1) ofthis section. Categories for data collected pursuant to division(B)(3) of this section shall conform, where appropriate, tostandard practices of agencies of the federal government.

(b) With respect to each student entering kindergarten,whetherthe student previously participated in a public preschoolprogram, a privatepreschool program, or a head start program, andthe number of years thestudent participated in each of theseprograms.

(C) The education management information system shallinclude cost accounting data for each district as a whole and foreach school building in each school district. The guidelinesadopted under this section shall require the cost data for eachschool district to be maintained in a system of mutuallyexclusivecost units and shall require all of the costs of eachschooldistrict to be divided among the cost units. Theguidelines shallrequire the system of mutually exclusive costunits to include atleast the following:

(1) Administrative costs for the school district as awhole.The guidelines shall require the cost units under thisdivision(C)(1) to be designed so that each of them may becompiled andreported in terms of average expenditure per pupilin formula ADMin the schooldistrict, as determined pursuant to section 3317.03of the Revised Code.

(2) Administrative costs for each school building in theschool district. The guidelines shall require the cost unitsunder this division (C)(2) to be designed so that each of themmaybe compiled and reported in terms of average expenditure perfull-time equivalent pupil receiving instructional or supportservices in each building.

(3) Instructional services costs for each category ofinstructional service provided directly to students and requiredby guidelines adopted pursuant to division (B)(1)(a) of thissection. The guidelines shall require the cost units underdivision (C)(3) of this section to be designed so that each ofthem may be compiled and reported in terms of average expenditureper pupil receiving the service in the school district as a wholeand average expenditure per pupil receiving the service in eachbuilding in the school district and in terms of a total cost foreach category of service and, as a breakdown of the total cost, acost for each of the following components:

(a) The cost of each instructional services categoryrequired by guidelines adopted under division (B)(1)(a) of thissection that is provided directly to students by a classroomteacher;

(b) The cost of the instructional support services, suchasservices provided by a speech-language pathologist, classroomaide, multimedia aide, or librarian, provided directly tostudentsin conjunction with each instructional servicescategory;

(c) The cost of the administrative support servicesrelatedto each instructional services category, such as the costofpersonnel that develop the curriculum for the instructionalservices category and the cost of personnel supervising orcoordinating the delivery of the instructional services category.

(4) Support or extracurricular services costs for eachcategory of service directly provided to students and required byguidelines adopted pursuant to division (B)(1)(b) of thissection.The guidelines shall require the cost units underdivision (C)(4)of this section to be designed so that each ofthem may becompiled and reported in terms of average expenditureper pupilreceiving the service in the school district as a wholeandaverage expenditure per pupil receiving the service in eachbuilding in the school district and in terms of a total cost foreach category of service and, as a breakdown of the total cost, acost for each of the following components:

(a) The cost of each support or extracurricular servicescategory required by guidelines adopted under division (B)(1)(b)of this section that is provided directly to students by alicensed employee, such as services provided by a guidancecounselor or any services provided by a licensed employeeunder asupplemental contract;

(b) The cost of each such services category provideddirectly to students by a nonlicensed employee, such asjanitorialservices, cafeteria services, or services of a sportstrainer;

(c) The cost of the administrative services related toeachservices category in division (C)(4)(a) or (b) of thissection,such as the cost of any licensed or nonlicensedemployees thatdevelop, supervise, coordinate, or otherwise areinvolved inadministering or aiding the delivery of each servicescategory.

(D)(1) The guidelines adopted under this sectionshallrequireschool districts to collect information about individualstudents, staff members, or both in connection with any datarequired by division (B) or (C) of this section or otherreportingrequirements established in the Revised Code. Theguidelines mayalso require school districts to reportinformation aboutindividual staff members in connection with anydata required bydivision (B) or (C) of this section or otherreportingrequirements established in the Revised Code. Theguidelinesshall notauthorize school districts to request socialsecuritynumbers ofindividual students.The guidelines shall prohibitthereportingunder thissection of a student'sname,address,andsocial security number to the state board ofeducation or thedepartment ofeducation. The guidelines shallalso prohibit thereportingunderthis section of any personallyidentifiableinformationabout anystudent, except for the purposeof assigningthe dataverificationcode required by division(D)(2) of thissection, toanyotherpersonunless such personisemployed bytheschooldistrict orthe dataacquisition siteoperated undersection3301.075 of theRevised Codeand isauthorizedby thedistrict oracquisitionsiteto haveaccess tosuchinformation or is employed by an entity with which the department contracts for the scoring of tests administered under section 3301.0711 or 3301.0712 of the Revised Code.Theguidelines mayrequireschooldistricts toprovide the socialsecurity numbersofindividualstaff members.

(2) The guidelines shall provide for each school district orcommunity school to assign a data verification codethat is uniqueon a statewide basis over time to eachstudent whoseinitial Ohioenrollment is in that district orschool and to reportallrequired individual student data for thatstudent utilizing suchcode. The guidelines shall also providefor assigningdataverification codes to all students enrolled indistricts orcommunityschools on theeffective date of theguidelinesestablished under this section.

Individual student data shall be reported to the departmentthrough thedataacquisition sites utilizing the code but at notime shallthe state boardor the department have access toinformationthat would enable anydata verification code to bematched to personallyidentifiablestudent data.

Each school district shall ensure that the data verificationcode isincluded in the student's records reported to anysubsequent school districtor community school in which thestudent enrolls. Any such subsequentdistrict orschool shall utilize the same identifier in its reporting of dataunder this section.

(E) The guidelines adopted under this section may requireschool districts to collect and report data, information, orreports other than that described in divisions (A), (B), and (C)of this section for the purpose of complying with other reportingrequirements established in the Revised Code. The other data,information, or reports may be maintained in the educationmanagement information system but are not required to be compiledas part of the profile formats required under division (G) ofthissection or the annual statewide report required underdivision (H)of this section.

(F) Beginning with the school year that begins July 1,1991,the board of education of each school district shallannuallycollect and report to the state board, inaccordancewith theguidelines established by the board, the datarequiredpursuant tothis section. A school district may collect andreport these datanotwithstanding section 2151.358 or 3319.321 ofthe Revised Code.

(G) The state board shall, in accordance with theproceduresit adopts, annually compile the data reported by eachschooldistrict pursuant to division (D) of this section. Thestateboard shall design formats for profiling eachschooldistrict as awhole and each school building within each districtand shallcompile the data in accordance with these formats. These profileformats shall:

(1) Include all of the data gathered under this section inamanner that facilitates comparison among school districts andamong school buildings within each school district;

(2) Present the data on academic achievement levels asassessed by the testing of studentachievementmaintainedpursuant to division (B)(1)(d) of this section.

(H)(1) The state board shall, in accordance with theprocedures it adopts, annually prepare a statewide report for allschool districts and the general public that includes the profileof each of the school districts developed pursuant to division(G)of this section. Copies of the report shall be sent to eachschool district.

(2) The state board shall, in accordance with theproceduresit adopts, annually prepare an individual report foreach schooldistrict and the general public that includes theprofiles of eachof the school buildings in that school districtdeveloped pursuantto division (G) of this section. Copies ofthe report shall besent to the superintendent of the districtand to each member ofthe district board of education.

(3) Copies of the reports received from the state boardunder divisions(H)(1) and (2) of this section shall be madeavailable to the general public at each school district'soffices.Each district board of education shall make copies ofeach reportavailable to any person upon request and payment of areasonablefee for the cost of reproducing the report. The boardshallannually publish in a newspaper of general circulation intheschool district, at least twice during the two weeks prior totheweek in which the reports will first be available, a noticecontaining the address where the reports are available and thedate on which the reports will be available.

(I) Any data that is collected or maintained pursuant tothis section and that identifies an individual pupil is not apublic record for the purposes of section 149.43 of the RevisedCode.

(1) "School district" means any city, local, exemptedvillage, or joint vocational school district.

(2) "Cost" means any expenditure for operating expensesmadeby a school district excluding any expenditures for debtretirement except for payments made to any commercial lendinginstitution for any loan approved pursuant to section 3313.483 ofthe Revised Code.

(K) Any person who removes data from the informationsystemestablished under this section for the purpose ofreleasing it toany person not entitled under law to have accessto suchinformation is subject to section 2913.42 of the RevisedCodeprohibiting tampering with data.

(L) Any time the department of education determines that aschool districthas taken any of the actions described underdivision(L)(1), (2), or (3) of this section, it shall make areport of the actions of the district, send a copy of the reportto the superintendent of such school district, and maintain acopyof the report in its files:

(1) The school district fails to meet any deadlineestablished pursuant to this section for the reporting of anydatato the education management information system;

(2) The school district fails to meet any deadlineestablished pursuant to this section for the correction of anydata reported to the education management informationsystem;

(3) The school district reports data to the educationmanagementinformation system in a condition, as determined bythedepartment, that indicates that the district did not make a goodfaith effort in reporting the data to the system.

Any report made under this division shall includerecommendationsfor corrective action by the school district.

Upon making a report for the first timein a fiscal year, thedepartment shallwithhold ten per cent of the total amount dueduring that fiscalyear under Chapter 3317. of the Revised Code tothe school district to whichthe report applies. Upon making asecondreport in a fiscal year, the department shall withholdanadditional twenty per cent of such total amount due duringthatfiscal year to the school district to which the reportapplies.The department shall not release such fundsunless it determinesthat the district has taken corrective action. However, no suchrelease of funds shall occur if the districtfails to takecorrective action withinforty-five days of the dateuponwhich thereport was made by the department.

(M) No data acquisition site or school district shall acquire, change, or update its student administration software package to manage and report data required to be reported to the department unless it converts to a student software package that is certified by the department.

(N) The state board of education, in accordance withsections 3319.31 and3319.311 of the Revised Code, may suspend orrevoke a license as defined underdivision (A) of section 3319.31of the Revised Code that has been issued toany school districtemployee found to have willfully reportederroneous, inaccurate,or incomplete data to the educationmanagement information system.

(O) No person shall release or maintain any informationabout anystudent in violation of this section. Whoever violatesthis division isguilty of a misdemeanor of the fourth degree.

(P) The department shall disaggregate the data collectedunderdivision (B)(1)(o) of this section according to the race andsocioeconomic status of the students assessed. No data collectedunder that division shall be included on the report cards requiredby section 3302.03 of the Revised Code.

(Q) If the department cannot compile any of the informationrequired by division (C)(5) of section 3302.03 of the Revised Codebased upon the data collected under this section, the departmentshall develop a plan and a reasonable timeline for the collectionof any data necessary to comply with that division.

Sec. 3301.0715. (A) Except as provided in division (E) of this section, the board of education of each city,local, andexempted village school district shall administer each applicable diagnosticassessment developed and provided to the district inaccordancewith section 3301.079 of theRevised Code to the following:

(1) Each student enrolled in a building subject to division (E) of section 3302.04 of the Revised Code;

(2) Any student who transfers into the district or to a different school within the district if each applicable diagnostic assessment was not administered by the district or school the student previously attended in the current school year, within thirty days after the date of transfer. If the district or school into which the student transfers cannot determine whether the student has taken any applicable diagnostic assessment in the current school year, the district or school may administer the diagnostic assessment to the student.

(3) Each kindergarten student, not later than six weeks after the first day of school. For the purpose of division (A)(3) of this section, the district shall administer the kindergarten readiness assessment provided by the department of education. The district may administer the readiness assessment to a student prior to the student's enrollment in kindergarten, but in no case shall the results of the readiness assessment be used to prohibit the student from enrolling in kindergarten.

(B) Each district board shall administer each diagnosticassessment as the board deems appropriate.However, the boardshall administer any diagnostic assessment atleast once annuallyto all students in the appropriate gradelevel. A district boardmay administer any diagnostic assessmentin the fall and spring ofa school year to measure the amount of academic growth attributable to the instructionreceived by students during that schoolyear.

(C) Each district board shall utilize and score anydiagnostic assessment administered under division (A) of thissection in accordance with rules established by the department. Except as required by division (B)(1)(o) of section3301.0714 of the Revised Code, neither the state board of education nor thedepartmentshall require school districts to report the results ofdiagnosticassessments for any students to the department or tomake any suchresults available in any form to the public. Aftertheadministration of any diagnostic assessment, each districtshallprovide a student's completed diagnostic assessment, theresultsof such assessment, and any other accompanying documentsusedduring the administration of the assessment to the parent ofthatstudent upon the parent's request.

(D) Each district board shall provide intervention servicesto students whose diagnostic assessments show that they arefailing to make satisfactory progress toward attaining theacademic standards for their grade level.

(E) Any district that made adequate yearly progress, as defined in section 3302.01 of the Revised Code, in the immediately preceding school year may assess student progress in grades one through ~~eight~~ three using a diagnosticassessment other than the diagnostic assessment required bydivision (A) of this section.

(F) A district board may administer ~~any~~ the third grade writing diagnostic assessment provided to the district in accordance with section 3301.079 of the Revised Code to any student enrolled in a building that is not subject to division (A)(1) of this section. Any district electing to administer the diagnostic ~~assessments~~ assessment to students under this division shall provide intervention services to any such student whose diagnostic assessment shows unsatisfactory progress toward attaining the academic standards for the student's grade level.

Sec. 3301.12. (A) The superintendent of publicinstruction in addition to the authority otherwise imposed on~~him~~ the superintendent, shall perform the following duties:

(1) He The superintendent shall provide technical andprofessional assistanceand advice to all school districts in reference to all aspects ofeducation, including finance, buildings and equipment,administration, organization of school districts, curriculum andinstruction, transportation of pupils, personnel problems, andthe interpretation of school laws and state regulations.

(2) He The superintendent shall prescribe and require thepreparation andfiling of such financial and other reports from school districts,officers, and employees as are necessary or proper. He Thesuperintendent shall prescribe and require the installation by schooldistricts ofsuch standardized reporting forms and accounting procedures asare essential to the businesslike operations of the publicschools of the state.

(3) He The superintendent shall conduct such studies andresearch projects asare necessary or desirable for the improvement of public schooleducation in Ohio, and such as may be assigned to ~~him~~ thesuperintendent by the state board of education. Such studies and projects may include analysis of data contained in the education management information system established under section 3301.0714 of the Revised Code. For any study or project that requires the analysis of individual student data, the department of education or any entity with which the superintendent or department contracts to conduct the study or project shall maintain the confidentiality of student data at all times. For this purpose, the department or contracting entity shall use the data verification code assigned pursuant to division (D)(2) of section 3301.0714 of the Revised Code for each student whose data is analyzed. Except as otherwise provided in division (D)(1) of section 3301.0714 of the Revised Code, at no time shall the superintendent, the department, the state board of education, or any entity conducting a study or research project on the superintendent's behalf have access to a student's name, address, or social security number while analyzing individual student data.

(4) He The superintendent shall prepare and submit annually tothe stateboard of education a report of the activities of the departmentof education and the status, problems, and needs of education inthe state of Ohio.

(5) He The superintendent shall supervise all agencies overwhich the boardexercises administrative control, including schools for educationof handicapped persons.

(B) The superintendent of public instruction may annuallyinspect and analyze the expenditures of each school district andmake a determination as to the efficiency of each district'scosts, relative to other school districts in the state, forinstructional, administrative, and student support services. Thesuperintendent shall notify each school district as to the natureof, and reasons for, ~~his~~ the determination. The state board ofeducation shall adopt rules in accordance with Chapter 119. ofthe Revised Code setting forth the procedures and standards forthe performance of the inspection and analysis.

Sec. 3301.16. Pursuant to standards prescribed bythe state board of education as provided in division (D) ofsection 3301.07 of the Revised Code, the state board shallclassify and charter school districts and individual schoolswithin each district except that no charter shall be granted to anonpublic school unless pursuant to division (K) of section3301.0711 of the Revised Code the school elects to administer thetests prescribed by division (B) of section 3301.0710 of theRevised Code beginning July 1, 1995. ~~The~~

In the course of considering the charter of a new school district created under section 3311.26 or 3311.38 of the Revised Code, the state board shall require the party proposing creation of the district to submit to the board a map, certified by the county auditor of the county in which the proposed new district is located, showing the boundaries of the proposed new district. In the case of a proposed new district located in more than one county, the map shall be certified by the county auditor of each county in which the proposed district is located.

The state board shallrevoke the charter of any school district or school which failsto meet the standards for elementary and high schools asprescribed by the board. The state board shall also revoke thecharter of any nonpublic school that does not comply withsection 3313.612 of the Revised Code or, on or after July 1,1995, does not participate in the testing program prescribed bydivision (B) of section 3301.0710 of the Revised Code. In

In theissuance and revocation of school district or school charters,the state board shall be governed by the provisions of Chapter119. of the Revised Code.

No school district, or individual school operated by a school district, shall operate without a charter issued by the state board under this section.

In case a school district charter is revoked pursuant tothis section, the state board may dissolve the school districtand transfer its territory to one or more adjacent districts. Anequitable division of the funds, property, and indebtedness ofthe school district shall be made by the state board among thereceiving districts. The board of education of a receivingdistrict shall accept such territory pursuant to the order of thestate board. Prior to dissolving the school district, the stateboard shall notify the appropriateeducational service center governing board andall adjacent school district boards of education of its intentionto do so. Boards so notified may make recommendations to thestate board regarding the proposed dissolution and subsequenttransfer of territory. Except as provided in section 3301.161 ofthe Revised Code, the transfer ordered by the state board shallbecome effective on the date specified by the state board, butthe date shall be at least thirty days following the date ofissuance of the order.

A high school is one of higher grade than an elementaryschool, in which instruction and training are given in accordancewith sections 3301.07 and 3313.60 of the Revised Code and whichalso offers other subjects of study more advanced than thosetaught in the elementary schools and such other subjects as maybe approved by the state board of education.

An elementary school is one in which instruction andtraining are given in accordance with sections 3301.07 and3313.60 of the Revised Code and which offers such other subjectsas may be approved by the state board of education. In districtswherein a junior high school is maintained, the elementaryschools in that district may be considered to include only thework of the first six school years inclusive, plus thekindergarten year.

Sec. 3301.311. (A) As used in this section, "preschool program" has the same meaning as in section 3301.52 of the Revised Code.

~~After June 30, 2001~~ (B)(1) Subject to division (B)(2) of this section, after July 1, 2005, no ~~head start~~ preschool program, and no early childhood education program or early learning program as defined by the department of education shallreceive any funds from the state unless fifty per cent of the staff membersemployed by that program as teachers are working toward an associate degree ofa type approved by the department of education. After June 30, 2003,no head start program shallreceive any funds from the state unless each staff member employed by thatprogram as a teacher is working toward an associatedegree of a type approved by the department of education. ~~Beginning~~ Subject to division (B)(2) of this section, beginning in fiscal year 2008, no ~~head start~~ preschool program, early childhood education program, or early learning program, shall receiveany funds from the state unless every staff member employed bythat program as a teacher has attained such a degree.

(2) After July 1, 2010, no preschool program, and no early childhood education program or early learning program as defined by the department of education, shall receive any funds from the state unless fifty per cent of the staff members employed by the program as teachers have attained a bachelor's degree of a type approved by the department.

Sec. 3301.32. (A)(1) The chief administrator of any headstart agency shall request the superintendent of the bureau ofcriminal identification and investigation to conduct a criminalrecords check with respect to any applicant who has applied tothehead start agency for employment as a person responsible forthecare, custody, or control of a child. If the applicant doesnotpresent proof that the applicant has been a resident of thisstatefor the five-year period immediately prior to the date uponwhichthe criminal records check is requested or does not provideevidence that within that five-year period the superintendent hasrequested information about the applicant from the federal bureauof investigation in a criminal records check, the chiefadministrator shall request that the superintendent obtaininformation from the federal bureau of investigation as a part ofthe criminal records check for the applicant. If the applicantpresents proof that the applicant has been a resident of thisstate for that five-year period, the chief administrator mayrequest that the superintendent include information from thefederal bureau of investigation in the criminal records check.

(2) Any person required by division (A)(1) of this sectionto request a criminal records check shall provide to eachapplicant a copy of the form prescribed pursuant to division(C)(1) of section 109.572 of the Revised Code, provide to eachapplicant a standard impression sheet to obtain fingerprintimpressions prescribed pursuant to division (C)(2) of section109.572 of the Revised Code, obtain the completed form andimpression sheet from each applicant, and forward the completedform and impression sheet to the superintendent of the bureau ofcriminal identification and investigation at the time the chiefadministrator requests a criminal records check pursuant todivision (A)(1) of this section.

(3) Any applicant who receives pursuant to division (A)(2)of this section a copy of the form prescribed pursuant todivision(C)(1) of section 109.572 of the Revised Code and a copyof animpression sheet prescribed pursuant to division (C)(2) ofthatsection and who is requested to complete the form andprovide aset of fingerprint impressions shall complete the formor provideall the information necessary to complete the form andshallprovide the impression sheets with the impressions of theapplicant'sfingerprints. If an applicant, upon request, fails toprovidethe information necessary to complete the form or fails toprovide impressions of the applicant's fingerprints, theheadstart agency shall not employ that applicant for any position forwhicha criminal records checkis required by division (A)(1) ofthis section.

(B)(1) Except as provided in rules adopted by thedirectorof job and familyservices in accordance with division (E) ofthissection, no head start agency shall employ a person as apersonresponsible for the care, custody, or control of a childif theperson previously has been convicted of or pleaded guiltyto anyof the following:

(a) A violation of section 2903.01, 2903.02, 2903.03,2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04,2907.05,2907.06, 2907.07, 2907.08, 2907.09, 2907.21,2907.22, 2907.23,2907.25, 2907.31, 2907.32, 2907.321, 2907.322,2907.323, 2911.01,2911.02, 2911.11, 2911.12, 2919.12, 2919.22,2919.24, 2919.25,2923.12, 2923.13, 2923.161, 2925.02, 2925.03,2925.04, 2925.05,2925.06, or 3716.11 of the Revised Code, a violation ofsection2905.04 of the Revised Code as it existed prior to July 1, 1996, aviolation of section 2919.23 of the Revised Code that would havebeen aviolation of section 2905.04 of the Revised Code as itexisted prior to July1, 1996, had the violation occurred prior tothat date, a violationofsection 2925.11 of the Revised Codethatis not a minor drug possessionoffense, or felonious sexualpenetration in violation of formersection 2907.12 of the RevisedCode;

(b) A violation of an existing or former law of this state,any otherstate, or the United States that is substantiallyequivalent toany of the offenses or violations described indivision (B)(1)(a)of this section.

(2) A head start agency may employ an applicantconditionally until the criminal records check required by thissection is completed and the agency receives the results of thecriminal records check. If the results of the criminal recordscheck indicate that, pursuant to division (B)(1) of this section,the applicant does not qualify for employment, the agency shallrelease the applicant from employment.

(C)(1) Each head start agency shall pay to the bureau ofcriminal identification and investigation the fee prescribedpursuant to division (C)(3) of section 109.572 of the RevisedCodefor each criminal records check conducted in accordance withthatsection upon the request pursuant to division (A)(1) of thissection of the chief administrator of the head start agency.

(2) A head start agency may charge an applicant a fee forthe costs it incurs in obtaining a criminal records check underthis section. A fee charged under this division shall not exceedthe amount of fees the agency pays under division (C)(1) of thissection. If a fee is charged under this division, the agencyshall notify the applicant at the time of the applicant's initialapplicationfor employment of the amount of the fee and that,unless the feeis paid, the head start agency will not considerthe applicant foremployment.

(D) The report of any criminal records check conducted bythe bureau of criminal identification and investigation inaccordance with section 109.572 of the Revised Code and pursuantto a request made under division (A)(1) of this section is not apublic record for the purposes of section 149.43 of the RevisedCode and shall not be made available to any person other than theapplicant who is the subject of the criminal records check or theapplicant'srepresentative, the head start agency requesting thecriminalrecords check or its representative, and any court,hearingofficer, or other necessary individual involved in a casedealingwith the denial of employment to the applicant.

(E) The director of job andfamily services shall adoptrulespursuant to Chapter 119. of the Revised Code to implementthissection, including rules specifying circumstances under whichahead start agency may hire a person who has been convicted of anoffense listed in division (B)(1) of this section but who meetsstandards in regard to rehabilitation set by thedirector.

(F) Any person required by division (A)(1) of this sectionto request a criminal records check shall inform each person, atthe time of the person's initial application for employment, thatthe person is required to provide a set of impressions of theperson'sfingerprints andthat a criminal records check isrequired to be conducted andsatisfactorily completed inaccordance with section 109.572 ofthe Revised Code if the personcomes under final consideration forappointment or employment as aprecondition to employment forthat position.

(1)"Applicant" means a person who is under finalconsideration for appointment or employment in a position with ahead start agency as a person responsible for the care, custody,or control of a child.

(2)"Head start agency" ~~has the same meaning as in section3301.31 of the Revised Code~~ means an entity in this state that has been approved to be an agency for purposes of the "Head Start Act," 95 State 489 (1981), 42 U.S.C. 9831, as amended.

(3)"Criminal records check" has the same meaning as insection 109.572 of the Revised Code.

(4)"Minor drug possession offense" has the same meaning asin section 2925.01 of the Revised Code.

Sec. 3301.56. (A) The director of each preschool programshall be responsible for the following:

(1) Ensuring that the health and safety of the childrenaresafeguarded by an organized program of school health servicesdesigned to identify child health problems and to coordinateschool and community health resources for children, as evidencedby but not limited to:

(a) Requiring immunization and compliance with emergencymedical authorization requirements in accordance with rulesadopted by the state board of education under section 3301.53 ofthe Revised Code;

(b) Providing procedures for emergency situations,includingfire drills, rapid dismissals, and tornado drills inaccordancewith section 3737.73 of the Revised Code, and keepingrecords ofsuch drills or dismissals;

(e) Supervising grounds, play areas, and other facilitieswhen scheduled for use by children;

(3) Supervising each child's admission, placement, andwithdrawal according to established procedures;

(4) Preparing at least once annually for each group ofchildren in the program a roster of names and telephone numbersofparents, guardians, and custodians of children in the groupand,on request, furnishing the roster for each group to theparents,guardians, and custodians of children in that group.The directormay prepare a similar roster of all children in theprogram and,on request, make it available to the parents,guardians, andcustodians, of children in the program. Thedirector shall notinclude in either roster the name or telephonenumber of anyparent, guardian, or custodian who requests thatthe parent's,guardian's, or custodian's name or number notbe included, andshall not furnish any roster to any person other than aparent,guardian, or custodian of a child in the program.

(6) Supervising the instructional program and the dailyoperation of the program;

(7) Supervising and evaluating preschool staff membersaccording to a planned sequence of observations and evaluationconferences, and supervising nonteaching employees.

(B)(1) In each program the maximum number of children perpreschool staff member and the maximum group size by age categoryof children shall be as follows:

(2) When age groups are combined, the maximum number ofchildren per preschool staff member shall be determined by theageof the youngest child in the group, except that when no morethanone child thirty months of age or older receives child care ina group in which all the other children are in thenext older agegroup, the maximum number of children perchild-care staff memberand maximum group size requirements ofthe older age groupestablished under division (B)(1) of thissection shall apply.

(3) In a room where children are napping, if all thechildren are at least eighteen months of age, the maximum numberof children per preschool staff member shall, for a period not toexceed one and one-half hours in any twenty-four hour day, betwice the maximum number of children per preschool staff memberestablished under division (B)(1) of this section if all thefollowing criteria are met:

(b) Sufficient preschool staff members are present on thepreschool program premises to comply with division (B)(1) of thissection;

(4) Any accredited program that uses the Montessori method endorsed by the American Montessori society or the association Montessori internationale as its primary method of instruction and is licensed as a preschool program under section 3301.58 of the Revised Code may combine preschool children of ages three to five years old with children enrolled in kindergarten. Notwithstanding anything to the contrary in division (B)(2) of this section, when such age groups are combined, the maximum number of children per preschool staff member shall be twelve and the maximum group size shall be twenty-four children.

(C) In each building in which a preschool program isoperated there shall be on the premises, and readily available atall times, at least one employee who has completed a course infirst aid and in the prevention, recognition, and management ofcommunicable diseases which is approved by the state departmentofhealth, and an employee who has completed a course in childabuserecognition and prevention.

(D) Any parent, guardian, or custodian of a child enrolledin a preschool program shall be permitted unlimited access to theschool during its hours of operation to contactthe parent's,guardian's, or custodian's child, evaluate the care provided bytheprogram, or evaluate the premises, or for other purposesapproved by thedirector. Upon entering the premises, the parent,guardian, or custodianshall report to the school office.

Sec. 3301.86. The ~~OhioReads~~classroom reading improvement grants program is hereby established. TheOhioReads council shall award grants under the program inaccordance with the standards it establishes under section 3301.91 ofthe Revised Code. The OhioReadsoffice is the fiscal agent for the program and shall pay thegrants awarded by the council Under the program, the department of education shall award reading intervention grants to public schools and classrooms operated by city, local, and exempted village school districts, by community schools, and by educational service centers. The grants shall be used to fund the engagement of volunteers to assist struggling students in grades kindergarten through twelve improve their reading skills, to improve reading outcomes in low-performing schools, and to facilitate closing the achievement gap between students of different subgroups.

Sec. 3301.88. (A) A recipient of a grant under section 3301.86~~or 3301.87~~ of the Revised Code~~or an entity approved by the OhioReads council~~may request from the bureau of criminal identification and investigation acriminal records check on anyindividual, other than an individual described in division (B) ofthis section, who applies to participate in providing directly to children anyprogram orservice ~~through an entity approved by the OhioReads councilor~~ funded in whole or in part by the grant. If a recipient~~or an entity approved by the OhioReads council~~elects to request a criminal records check, the request shall consist of arequest for the information aschool district board of education may request under division(F)(2)(a) of section 109.57 of the Revised Codeand shall be accompanied by one of the following identification options:

(1) The form and standard impression sheet prescribed by the bureau underdivision (C) of section 109.572 of the Revised Code;

(2) A form prescribed by the bureau on which is specified the individual'sname, social security number, and date of birth.

(B) A grant recipient~~or an entity approved by the OhioReads council~~shall not request a criminal records check under division (A) of thissection with respect to any individual who furnishes the grant recipient~~or an entity approved by the OhioReads council~~with a certified copy of a report of a criminal records check completed by thebureau within one year prior toapplying to participate in providing programs or services~~through an entity approved by the OhioReads councilor~~ under ~~an OhioReads~~ the grant.

(C) Except as provided in rules adopted under division(G)(2) of this section, a grant recipient~~or an entity approved by the OhioReads council~~shall not allow an individual to participate in providingdirectly to children any program or service~~through an entity approved by the OhioReads councilor~~ funded in whole or in part by thegrant if the information requested under this section from the bureauindicates that the individual has ever pleadedguilty to or been found guilty by a jury or court of any of the following:

(2) A violationof section 2903.16, 2903.34, 2905.05, 2907.04, 2907.06, 2907.07,2907.08, 2907.09, 2907.23, 2907.25, 2907.31, 2919.12, 2919.22, 2919.24,2925.04, or 3716.11 of the Revised Code; a violation of section 2905.04of the Revised Codeas it existed prior to July 1, 1996; or a violation of section2919.23 of the Revised Code that would have been a violation ofsection 2905.04 of the Revised Code as it existed prior toJuly 1, 1996, had it been committed prior to that date;

(6) A violation of an existing or former ordinance of a municipalcorporation or law of the United States or another state that issubstantively comparable to anoffense listed in divisions (C)(1) to (5) of this section.

(D) A grant recipient ~~or an entity approved by the OhioReads council~~that elects to request criminal recordschecks may conditionally allow an individual to participate in providingprograms or services directly to children until the criminal recordscheck is completed and the grant recipient~~or an entity approved by the OhioReads council~~receives the results. If the results of the criminal records check indicatethat theindividual has been convicted of or pleaded guilty to an offense listed indivision (C) of this section,the grant recipient~~or an entity approved by the OhioReads council~~shall not allow the individual to further participatein providing directly to children any program or service~~through an entity approved by the OhioReads councilor~~ funded in whole or inpart by the grant, except as provided in the rules adopted under division(G)(2) of this section.

(E) The report of any criminal records check conducted inaccordance with division (F)(5) of section 109.57 of theRevised Code pursuant to a request under thissection is not a public record for purposes of section 149.43 of theRevised Code. The report shall not be made available toany person other than the individual who is the subject of the criminalrecords check or the individual's representative, thegrant recipient or the grant recipient's representative~~or an entity approved by the OhioReads council~~, and anycourt, hearing officer, or other necessary individual in a casedealing with the denial of the individual's participation in aprogram or service~~through an entity approved by the OhioReads councilor~~ funded by ~~an OhioReads~~ a grant awarded under section 3301.86 of the Revised Code.

(F) The ~~OhioReads office~~ department of education shall reimburse each grant recipient~~or an entity approved by the OhioReads council~~ for eachcriminal records check the actual amount paid by the grant recipient~~or an entity approved by the OhioReads council~~for the portion of the criminal records check conducted bythe bureau of criminal identification and investigation. Reimbursement shall be paid under this division only for criminal recordschecks on individuals who apply to participate in providing directly tochildren anyprogram or service ~~through an entity approved by the OhioReads councilor~~ funded in whole or in part by the grant. To receive it,the grant recipient~~or an entity approved by the OhioReads council~~must submit information to the ~~office~~ department in theform and manner required by the ~~office~~ department. The reimbursement is inaddition to the grant awarded to the recipient under section3301.86 ~~or 3301.87~~ of the Revised Code.

(G) The ~~department~~ state board of education shall adopt rules in accordancewith Chapter 119. of the Revised Code:

(1) Prescribing the form and manner in which grant recipients~~or an entity approved by the OhioReads council~~must submit information to the ~~OhioReads office~~ department to receivereimbursement under division (F) of this section;

(2) Specifying circumstances under which a grant recipient~~or an entity approved by the OhioReads council~~ may allow anindividual whose criminal records check report indicates that theindividual has been convicted of or pleaded guilty to an offense listedin division (C) of this section, but who meets standards in regardto rehabilitation set forth in the rules, to participate in providing directlyto children any program or service~~through an entity approved by the OhioReads councilor~~funded in whole or in part by the grant.

Sec. 3302.03. (A)Annually thedepartmentofeducationshall report for eachschool district and each school building in a district all of the following:

(1) The extent to which the school district or buildingmeets each of the applicableperformance indicatorscreated by thestateboard ofeducation undersection 3302.02 of the Revised Code and thenumber ofapplicable performanceindicators that have beenachieved;

(4) Whether the school district or building is excellent,effective,needscontinuous improvement, isunder anacademicwatch, or is inastate of academic emergency.

(1) A school district or building shall be declaredexcellent if it fulfills one of the following requirements:

(a) It makes adequate yearly progress and either meets at least ninety-four per cent of the applicable stateperformance indicators or has a performance index score established by the department.

(b) It has failed to make adequate yearly progress for not more than two consecutive years and either meets at least ninety-four per cent of the applicable state performance indicators or has a performance index score established by the department.

(2) A school districtor building shall be declaredeffective if it fulfills one of the following requirements:

(a) It makes adequate yearly progress and either meets at least seventy-five per cent but less than ninety-four per cent oftheapplicablestate performanceindicators or has a performance index score established by the department.

(b) It does not make adequate yearly progress and either meets at least seventy-five per cent of the applicable state performance indicators or has a performance index score established by the department, except that if it does not make adequate yearly progress for three consecutive years, it shall be declared in need of continuous improvement.

(3) A school districtor building shall be declared to beinneed ofcontinuous improvement if it fulfills one of the following requirements:

(a) It makes adequate yearly progress, meets less than seventy-five per cent of theapplicable stateperformanceindicators, and has a performance index score established by the department.

(b) It does not make adequate yearly progress and either meets at least fifty per cent but less than seventy-five per cent of the applicable state performance indicators or has a performance index score established by the department.

(4) A school districtor building shall be declared to beunder anacademic watch if it does not make adequate yearly progress and either meets at least thirty-one per cent but less than fifty per cent of theapplicablestateperformanceindicators or has a performance index score established by the department.

(5) A school districtor building shall be declared to beina stateof academic emergency if it does not make adequate yearly progress, does not meet at least thirty-one per centof theapplicable state performanceindicators, and has a performance index score established by the department.

(6) When designating performance ratings for school districts and buildings under divisions (B)(1) to (5) of this section, the department shall not assign a school district or building a lower designation from its previous year's designation based solely on one subgroup not making adequate yearly progress.

(C)(1) The department shall issue annual report cards foreach schooldistrict, each building within each district, and forthe state as a wholereflecting performance on theindicatorscreated by the state board under section 3302.02 of theRevisedCode, the performance index score, and adequate yearly progress.

(2) The department shall include on the report card for eachdistrict information pertaining to any changefrom the previousyear made by the school district or schoolbuildings within thedistrict on any performance indicator.

(3) When reporting data on student performance, thedepartment shall disaggregate that data according to the followingcategories:

(d) Performance of students grouped by those who have beenenrolled in a district or school for three or more years;

(e) Performance of students grouped by those who have beenenrolled in a district or school for more than one year and lessthan three years;

(f) Performance of students grouped by those who have beenenrolled in a district or school for one year or less;

(h) Performance of students grouped by those who are enrolledin a conversion community school established under Chapter 3314.of the Revised Code;

(i) Performance of students grouped by those who are classified as limited English proficient;

(l) Performance of students grouped by those who are identified as gifted pursuant to Chapter 3324. of the Revised Code.

The department may disaggregate data on student performanceaccording to other categories that the department determines areappropriate. To the extent possible, the department shall disaggregate data on student performance according to any combinations of two or more of the categories listed in divisions (C)(3)(a) to (l) of this section that it deems relevant.

In reporting data pursuant to division (C)(3) of thissection, thedepartment shall not include in the report cards anydata statistical in nature that is statistically unreliable orthat could result in the identification of individual students. For this purpose, the department shall not report student performance data for any group identified in division (C)(3) of this section that contains less than ten students.

(4) The department may include with the report cards anyadditional education and fiscalperformance datait deemsvaluable.

(5) The department shall include on each report card a listof additional information collected by the department that isavailable regarding the district or building for which the reportcard is issued. When available, such additional information shallinclude student mobility data disaggregated by race andsocioeconomic status, college enrollment data, and the reportsprepared under section 3302.031 of the Revised Code.

The department shall maintain a site on the world wide web.The report card shall include the address of the site and shallspecify that such additional information is available to thepublic at that site. The department shall also provide a copy ofeach item on the list to the superintendent of each schooldistrict. The district superintendent shall provide a copy of anyitem on the list to anyone who requests it.

(6) ~~For~~ This division does not apply to conversion community schools that primarily enroll students between sixteen and twenty-two years of age who dropped out of high school or are at risk of dropping out of high school due to poor attendance, disciplinary problems, or suspensions.

For any district that sponsors a conversion communityschool under Chapter 3314. of the Revised Code, the departmentshall combine data regarding the academic performance of studentsenrolled in the community school with comparable data from theschools of the district for the purpose of calculating theperformance of the district as a whole on the report card issuedfor the district.

(7) The department shall include on each report card the percentage of teachers in the district or building who are highly qualified, as defined by the "No Child Left Behind Act of 2001," and a comparison of that percentage with the percentages of such teachers in similar districts and buildings.

(8) The department shall include on the report card the number of master teachers employed by each district and each building once the data is available from the education management information system established under section 3301.0714 of the Revised Code.

(D)(1) In calculatingreading, writing, mathematics, socialstudies, or science proficiencyor achievement testpassage ratesused to determine school district or building performance underthissection,the department shall include allstudentstaking a test withaccommodationor towhom analternate assessment is administeredpursuant todivision(C)(1) or (3)of section 3301.0711 of theRevisedCode.

(2) In calculating performance index scores, rates of achievement on the performance indicators established by the state board under section 3302.02 of the Revised Code, and adequate yearly progress for school districts and buildings under this section, the department shall do all of the following:

(a) Include for each district or building only those students who are included in the ADM certified for the first full school week of October and are continuously enrolled in the district or building through the time of the spring administration of any test prescribed by section 3301.0710 of the Revised Code that is administered to the student's grade level;

(b) Include cumulative totals from both the fall and spring administrations of the third grade reading achievement test;

(c) Except as required by the "No Child Left Behind Act of 2001" for the calculation of adequate yearly progress, exclude for each district or building any limited English proficient student who has been enrolled in United States schools for less than one full school year.

Sec. 3302.10. (A) Beginning July 1, 2007, the superintendent of public instruction shall establish an academic distress commission for each school district that has been declared to be in a state of academic emergency pursuant to section 3302.03 of the Revised Code and has failed to make adequate yearly progress for four or more consecutive school years. Each commission shall assist the district for which it was established in improving the district's academic performance.

(B) Each academic distress commission shall consist of five voting members, three of whom shall be appointed by the superintendent of public instruction and two of whom shall be appointed by the president of the board of education of the applicable school district.

(C) Each academic distress commission shall seek input from the district board of education regarding ways to improve the district's academic performance, but any decision of the commission related to any authority granted to the commission under this section shall be final.

(1) Appoint school building administrators and reassign administrative personnel;

(2) Terminate the contracts of administrators or administrative personnel. The commission shall not be required to comply with section 3319.16 of the Revised Code with respect to any contract terminated under this division.

(3) Contract with a private entity to perform school or district management functions;

(4) Establish a budget for the district and approve district expenditures, unless a financial planning and supervision commission has been established for the district pursuant to section 3316.05 of the Revised Code.

(D) If the board of education of a district for which an academic distress commission has been established under this section renews any collective bargaining agreement under Chapter 4117. of the Revised Code during the existence of the commission, the district board shall not enter into any agreement that would render any decision of the commission unenforceable. Section 3302.08 of the Revised Code does not apply to this division.

Notwithstanding any provision to the contrary in Chapter 4117. of the Revised Code, if the board of education has entered into a collective bargaining agreement after the effective date of this section that contains stipulations relinquishing one or more of the rights or responsibilities listed in division (C) of section 4117.08 of the Revised Code, those stipulations are not enforceable and the district board shall resume holding those rights or responsibilities as if it had not relinquished them in that agreement until such time as both the academic distress commission ceases to exist and the district board agrees to relinquish those rights or responsibilities in a new collective bargaining agreement. The provisions of this paragraph apply to a collective bargaining agreement entered into after the effective date of this section and those provisions are deemed to be part of that agreement regardless of whether the district satisfied the conditions prescribed in division (A) of this section at the time the district entered into that agreement.

(E) An academic distress commission shall cease to exist when the district for which it was established receives a performance rating under section 3302.03 of the Revised Code of in need of continuous improvement or better for two out of three school years; however, the superintendent of public instruction may dissolve the commission earlier if the superintendent determines that the district can perform adequately without the supervision of the commission.

(A) "Chartered nonpublic school" means a nonpublic school that holds a valid charter issued by the state board of education under section 3301.16 of the Revised Code and meets the standards established for such schools in rules adopted by the state board.

(B) An "eligible student" is a student who satisfies the conditions specified in section 3310.03 of the Revised Code.

(D) "Resident district" means the school district in which a student is entitled to attend school under section 3313.64 or 3313.65 of the Revised Code.

(E) "School year" has the same meaning as in section 3313.62 of the Revised Code.

Sec. 3310.02. The educational choice scholarship pilot program is hereby established. Under the program,the department of education annually shall pay scholarships to attend chartered nonpublic schools in accordancewith section 3310.08 of theRevisedCode for up to the number of eligible students prescribed by the general assembly. If the number of students who apply for a scholarship exceeds the number prescribed by the general assembly, the department first shall award scholarships to eligible students who received scholarships in the prior school year, and then shall give priority to eligible students with family incomes at or below two hundred per cent of the federal poverty guidelines, as defined in section 5101.46 of the Revised Code. After awarding scholarships to previous recipients and to low-income eligible students, the department shall select students by lot to receive any remaining scholarships.

Sec. 3310.03. (A) A student is an "eligible student" for purposes of the educational choice scholarship pilot program if the student satisfies both of the following conditions:

(a) Is enrolled in a school building that is operated by the student's resident district and that the department of education declared, in the most recent rating of school buildings published prior to the first day of July of the school year for which a scholarship is sought and in the two preceding school years, to be in a state of academic emergency under section 3302.03 of the Revised Code;

(b) Is eligible to enroll in kindergarten in the school year for which a scholarship is sought and otherwise would be assigned under section 3319.01 of the Revised Code to a school building described in division (A)(1)(a) of this section;

(c) Is enrolled in a community school established under Chapter 3314. of the Revised Code but otherwise would be assigned under section 3319.01 of the Revised Code to a building described in division (A)(1)(a) of this section.

(2) The student's resident district is not a school district in which the pilot project scholarship program is operating under sections 3313.974 to 3313.979 of the Revised Code.

(B) A student who receives a scholarship under the educational choice scholarship pilot program remains an eligible student and may continue to receive scholarships in subsequent school years until the student completes grade twelve, so long as all of the following apply:

(2) The student takes each state test prescribed for the student's grade level under section 3301.0710 or 3301.0712 of the Revised Code while enrolled in a chartered nonpublic school;

(3) In each school year that the student is enrolled in a chartered nonpublic school, the student is absent from school for not more than twenty days that the school is open for instruction, not including absences due to illness or injury confirmed in writing by a physician.

(C) The superintendent shall cease awarding first-time scholarships with respect to a school building that, in the most recent ratings of school buildings published under section 3302.03 of the Revised Code prior to the first day of July of the school year, ceases to be in a state of academic emergency. However, students who have received scholarships in the prior school year remain eligible students pursuant to division (B) of this section.

Sec. 3310.04. Any eligible student who is enrolled in a chartered nonpublic school and for whom a scholarship under the educational choice scholarship pilot program has been awarded shall be entitled to transportation to and from the chartered nonpublic school by the student's resident district in the manner prescribed in section 3327.01 of the Revised Code.

Sec. 3310.05. A scholarship under the educational choice scholarship pilot program is not available for any student whose resident district is a school district in which the pilot project scholarship program is operating under sections 3313.974 to 3313.979 of the Revised Code. The two pilot programs are separate and distinct. The general assembly has prescribed separate scholarship amounts for the two pilot programs in recognition of their differing eligibility criteria. The pilot project scholarship program operating under sections 3313.974 to 3313.979 of the Revised Code is a district-wide program that may award scholarships to students who do not attend district schools that face academic challenges, whereas the educational choice scholarship pilot program established under sections 3310.01 to 3310.17 of the Revised Code is limited to students of individual district school buildings that face academic challenges.

Sec. 3310.06. It is the policy adopted by the general assembly that the educational choice scholarship pilot program shall be construed as one of several educational options available for students enrolled in academic emergency school buildings. Students may be enrolled in the schools of the student's resident district, in a community school established under Chapter 3314. of the Revised Code, in the schools of another school district pursuant to an open enrollment policy adopted under section 3313.98 of the Revised Code, in a chartered nonpublic school with or without a scholarship under the educational choice scholarship pilot program, or in other schools as the law may provide.

Sec. 3310.07. Any parent, or any student who is at least eighteen years of age, who is seeking a scholarship underthe educational choice scholarship pilot program shall notify thedepartment ofeducationof the student's and parent's namesand address, thechartered nonpublic school in which the student has beenacceptedfor enrollment, and the tuition chargedbythe school.

Sec. 3310.08. (A) The amount paid for an eligible student under the educational choicescholarship pilot program shall bethe lesser ofthe tuition of the chartered nonpublic school in which thestudent is enrolled or the maximum amount prescribed in section 3310.09 of the Revised Code.

(B)(1) The department shall pay to the parent of each eligible student for whom a scholarship is awarded under the program, or to the student if at least eighteen years of age, periodic partial payments of the scholarship.

(2) The department shallproportionately reduce or terminate the paymentsfor any studentwho withdraws from a chartered nonpublic school prior to the end of theschool year.

(C)(1) The department shall deductfrom the payments made to each schooldistrict underChapter 3317.and, if necessary, sections 321.24 and 323.156 oftheRevisedCode the amount of five thousand two hundred dollars for each eligible student awarded a scholarship under the educational choice scholarship pilot program who is entitled under section 3313.64 or 3313.65 of the Revised Code to attend school in the district. The amount deducted under this division funds scholarships for students under both the educational choice scholarship pilot program and the pilot project scholarship program under sections 3313.974 to 3313.979 of the Revised Code.

(2) If the department reduces or terminates payments to a parent or a student, as prescribed in division (B)(2) of this section, and the student re-enrolls in the schools of the student's resident district before the end of the school year, the department shall proportionally restore to the resident district the amount deducted for that student under division (C)(1) of this section.

(D) In the case of any school district from which a deduction is made under division (C) of this section, the department shall disclose on the district's SF-3 form, or any successor to that form used to calculate a district's state funding for operating expenses, a comparison of the following:

(1) The district's state base-cost payment, as calculated under division (A)(1) of section 3317.022 of the Revised Code prior to making the adjustments under divisions (A)(2) and (3) of that section, with the scholarship students included in the district's formula ADM;

(2) What the district's state base-cost payment would have been, as calculated under division (A)(1) of that section prior to making the adjustments under divisions (A)(2) and (3) of that section, if the scholarship students were not included in the district's formula ADM.

This comparison shall display both the aggregate difference between the amounts described in divisions (D)(1) and (2) of this section, and the quotient of that aggregate difference divided by the number of eligible students for whom deductions are made under division (C) of this section.

Sec. 3310.09. (A) The maximum amount awarded to an eligible student in fiscal year 2007 under the educational choice scholarship pilot program shall be as follows:

(1) For grades kindergarten through eight, four thousand two hundred fifty dollars;

(B) In fiscal year 2008 and in each fiscal year thereafter, the maximum amount awarded under the program shall be the applicable maximum amount awarded in the previous fiscal year increased by the same percentage by which the general assembly increased the formula amount, as defined in section 3317.02 of the Revised Code, from the previous fiscal year.

Sec. 3310.10. A scholarship awarded under section 3310.08 of the Revised Code may be used only to pay tuition to any chartered nonpublic school.

Sec. 3310.13. (A) No chartered nonpublic school shall charge any student whose family income is at or below two hundred per cent of the federal poverty guidelines, as defined in section 5101.46 of the Revised Code, a tuition fee that is greater than the total amount paid for that student under section 3310.08 of the Revised Code.

(B) A chartered nonpublic school may charge any other student who is paid a scholarship under that section the difference between the amount of the scholarship and the regular tuition charge of the school. Each chartered nonpublic school shall permit such an eligible student's family, at the family's option, to provide volunteer services in lieu of cash payment to pay all or part of the amount of the school's tuition not covered by the scholarship paid under section 3310.08 of the Revised Code.

Sec. 3310.14. Notwithstanding division (K) of section 3301.0711 of the Revised Code, each chartered nonpublic school that enrolls students awarded scholarships under sections 3310.01 to 3310.17 of the Revised Code annually shall administer the tests prescribed by section 3301.0710 or 3301.0712 of the Revised Code to each scholarship student in accordance with section 3301.0711 of the Revised Code. Each chartered nonpublic school shall report to the department of education the results of each test administered to each scholarship student under this section.

Nothing in this section requires a chartered nonpublic school to administer any achievement test, except for an Ohio graduation test prescribed by division (B) of section 3301.0710 of the Revised Code, as required by section 3313.612 of the Revised Code, to any student enrolled in the school who is not a scholarship student.

Sec. 3310.16. (A) The state board of education shall adopt rules in accordance with Chapter 119. of the Revised Code prescribing procedures for the administration of the educational choice scholarship pilot program.

(B) The state board and the department of education shall not require chartered nonpublic schools to comply with any education laws or rules or other requirements that are not specified in sections 3310.01 to 3310.17 of the Revised Code and that otherwise would not apply to a chartered nonpublic school.

Sec. 3310.17. The general assembly shall prescribe the number of students that may be selected each fiscal year for scholarships under the educational choice scholarship pilot program.

Sec. 3311.11. If the state board of education adopts a resolution under this chapter proposing the creation of a new city or local school district that was not in operation during the 2004-2005 school year, the district shall not be created unless both houses of the general assembly approve the creation of the district through passage of a concurrent resolution.

Sec. 3311.19. (A) The management and control of a jointvocational school district shall be vested in the jointvocationalschool district board of education. Where a jointvocationalschool district is composed only of two or more localschooldistricts located in one county, or when all theparticipatingdistricts are in one county and the boards of suchparticipatingdistricts so choose, the educationalservice center governingboardof the county in which the joint vocational school districtislocated shall serve as the joint vocational school districtboardof education. Where a joint vocational school district iscomposed of local school districts of more than one county, or ofany combination of city, local, or exempted villageschooldistricts or educational service centers, unless administration bytheeducational service center governing board has been chosen byall theparticipating districts inone county pursuant to thissection, the board of education ofthe joint vocational schooldistrict shall be composed of one ormore persons who are membersof the boards of education from eachof the city or exemptedvillage school districts ormembers of the educational servicecenters' governing boardsaffected to be appointed by the boardsof education or governing boards ofsuchschool districts andeducational service centers. In such joint vocationalschooldistricts thenumber and terms of members of the joint vocationalschooldistrict board of education and the allocation of a givennumberof members to each of the city and exempted villagedistricts and educational service centers shall be determined inthe plan forsuch district,provided that each such jointvocational school district board ofeducation shall be composed ofan odd number of members.

(B) Notwithstanding division (A) of this section, agoverningboard of an educational service center that has membersofitsgoverning board serving on ajoint vocational schooldistrict board of education may make arequest to the jointvocational district board that the jointvocational schooldistrict plan be revised to provide for one ormore members ofboards of education of local school districtsthat are within theterritory of the educationalservice district and within the jointvocational school district to serve in the place of or inadditionto its educational service center governing board members. Ifagreementis obtained among a majority of the boards of educationand governing boardsthat havea member serving on the jointvocational school district board ofeducation and among a majorityof the local school districtboards of education included in thedistrict and located withinthe territory of the educationalservice centerwhose board requests the substitutionor addition,the state board of education may revise the jointvocationalschool district plan to conform with such agreement.

(C) If the board of education of any school districtoreducational service center governing board included within a jointvocational district that has had itsboard or governing boardmembership revised under division (B) of this sectionrequests thejoint vocational school district board to submit tothe stateboard of education a revised plan under which one ormore jointvocational board members chosen in accordance with aplan revisedunder such division would again be chosen in themanner prescribedby division (A) of this section, the jointvocational board shallsubmit the revised plan to the state boardof education, providedthe plan is agreed to by a majority of theboards of educationrepresented on the joint vocational board, amajority of the localschool district boards included within thejoint vocationaldistrict, and each educational service centergoverning boardaffected by such plan. The state board of education may revisethe joint vocational school district plan to conform with therevised plan.

(D) The vocational schools in such joint vocational schooldistrict shall be available to all youth of school age within thejoint vocational school district subject to the rules adopted bythe joint vocational school district board of education in regardto the standards requisite to admission. A joint vocationalschool district board of education shall have the same powers,duties, and authority for the management and operation of suchjoint vocational school district as is granted by law, except bythis chapter and Chapters 124., 3317., 3323., and 3331. of theRevised Code, to a board of education of a city school district,and shall be subject to all the provisions of law that apply to acity school district, except such provisions in this chapter andChapters 124., 3317., 3323., and 3331. of the Revised Code.

(E) Where a governing board of an educationalservice centerhas been designatedto serve as the joint vocational schooldistrict board ofeducation, the educational service centersuperintendent shall be theexecutive officer for the jointvocational school district, andthe governing board may providefor additional compensation to be paid tothe educational servicecenter superintendent by the jointvocational school district, butthe educational servicecentersuperintendent shall have nocontinuing tenure other than that of educational service centersuperintendent. Thesuperintendent of schools of a jointvocational school districtshall exercise the duties and authorityvested by law in asuperintendent of schools pertaining to theoperation of a schooldistrict and the employment and supervisionof its personnel. The jointvocational school district board ofeducation shallappoint a treasurer of the joint vocational schooldistrict whoshall be the fiscal officer for such district and whoshall haveall the powers, duties, and authority vested by law inatreasurer of a board of education. Where a governing board ofan educational service center has been designated to serve asthejoint vocationalschool district board of education, such boardmay appoint theeducational service center superintendent asthetreasurer of the jointvocational school district.

(F) Each member of a joint vocational school districtboardof education may be paid such compensation as the boardprovidesby resolution, but it shall not exceedone hundredtwenty-fivedollarsper member for each meeting attended plusmileage, at therate per mileprovided by resolution of the board,to and frommeetings of the board.

The board may provide by resolution for the deduction ofamounts payable for benefits under ~~division (D) of~~ section3313.202 of the Revised Code. No member of a board of a jointvocational school district who is purchasing any category ofbenefits under such section offered by a city, local, or exemptedvillage school board or educational service center governingboard,shall purchase the same category of benefits as a member ofthejoint vocational school board.

Each member of a joint vocational school district board maybe paid such compensation as the board provides by resolution forattendance atan approved training program, provided that suchcompensationshall not exceed sixty dollars per day for attendanceat atraining program three hours or fewer in length and onehundredtwenty-five dollars a day for attendance at a trainingprogramlonger than three hours in length. However, no boardmember shallbe compensated for the same training program underthis sectionand section 3313.12 of the Revised Code.

Sec. 3313.12. Each member of the educational service centergoverning boardmay be paid such compensation as the governingboard provides byresolution, provided that any such compensationshall not exceedone hundred twenty-five dollars a day plusmileage both ways, at the rate per mileprovided by resolution ofthe governing board,for attendanceat anymeeting of the board.Suchcompensation and the expenses of theeducationalservicecentersuperintendent, itemized andverified, shall bepaid fromtheeducational service center governing board fund uponvoucherssigned bythepresident of the governing board.

The board of education of any city, local, or exemptedvillage school districtmay provide by resolution for compensationof itsmembers, provided that such compensation shall not exceedone hundred twenty-fivedollars per member for meetingsattended.The board may provide by resolution for the deduction ofamountspayable for benefits under ~~division (D) of~~ section3313.202 of theRevised Code.

Each member of a district board or educational service centergoverning board may be paid such compensation as the respectiveboard provides by resolution for attendance at an approvedtrainingprogram, provided that such compensation shall not exceedsixtydollars a day for attendance at a training program threehours orfewer in length and one hundred twenty-five dollars a dayforattendance at a training program longer than three hours inlength.

Sec. 3313.202. (A) The board of education of a schooldistrict may procure and pay all or part of the cost of groupterm life, hospitalization, surgical care, or major medicalinsurance, disability, dental care, vision care, medical care,hearing aids, prescription drugs, sickness and accidentinsurance, group legal services~~, or a combination of any of theforegoing types of insurance or~~ coverage~~, whether~~ issued by aninsurance company ~~or a healthinsuringcorporation~~ duly licensed by this state, covering the teachingor nonteaching employees of the school district, or a combinationof both, or the dependent children and spouses of such employees,provided if such coverage affects only the teaching employees ofthe district such coverage shall be with the consent of amajority of such employees of the school district, or if suchcoverage affects only the nonteaching employees of the districtsuch coverage shall be with the consent of a majority of suchemployees. If such coverage is proposed to cover all theemployees of a school district, both teaching and nonteachingemployees, such coverage shall be with the consent of a majorityof all the employees of a school district. A board of educationshall continue to carry, on payroll records, all school employeeswhose sick leave accumulation has expired, or who are on adisability leave of absence or an approved leave of absence, forthe purpose of group term life~~, hospitalization, surgical, majormedical, or any other~~ insurance. A board of education may payall or part of such coverage except when such employees are on anapproved leave of absence, or on a disability leave of absencefor that period exceeding two years. As used in this section,"teaching employees" means any person employed in the publicschools of this state in a position for which the person is required tohave a certificate or license pursuant to sections 3319.22 to 3319.31 of theRevised Code. "Nonteaching employees" as used in this sectionmeans any person employed in the public schools of the state in aposition for which the person is not required to have acertificate or license issued pursuant to sections 3319.22 to 3319.31 of theRevised Code.

(B) The board of education of a school district may enterinto an agreement with a jointly administered trust fund whichreceives contributions pursuant to a collective bargainingagreement entered into between the board and any collectivebargaining representative of the employees of the board for thepurpose of providing for self-insurance of all risk in theprovision of fringe benefits similar to those that may be paidpursuant to division (A) of this section, and may provide throughthe self-insurance method specific fringe benefits as authorizedby the rules of the board of trustees of the jointly administeredtrust fund. Benefits provided under this section include, butare not limited to, hospitalization, surgical care, major medicalcare, disability, dental care, vision care, medical care, hearingaids, prescription drugs, group life insurance, sickness andaccident insurance, group legal services, or a combination of theabove benefits, for the employees and their dependents.

(C) Notwithstanding any other provision of the RevisedCode, the board of education and any collective bargainingrepresentative of employees of the board may agree in acollective bargaining agreement that any mutually agreed fringebenefit, including, but not limited to, hospitalization, surgicalcare, major medical care, disability, dental care, vision care,medical care, hearing aids, prescription drugs, group lifeinsurance~~, sickness and accident insurance,~~ group legal services,or a combination thereof, for employees and their dependents beprovided through a mutually agreed upon contribution to a jointlyadministered trust fund. The amount, type, and structure offringe benefits provided under this division are subject to thedetermination of the board of trustees of the jointlyadministered trust fund. Notwithstanding any other provision ofthe Revised Code, competitive bidding does not apply to thepurchase of fringe benefits for employees under this divisionthrough a jointly administered trust fund.

~~(D)~~ Any elected or appointed member of the board ofeducation of a school district and the dependent children and spouse of the member maybe covered, at the option of the member, ~~as an employee of theschool district~~ under any ~~benefit~~ medical plan ~~adopted~~ designed by the school employees health care board under ~~this~~section 9.901 of the Revised Code. The member shall pay ~~to the school district the amountcertified~~ all premiums for that coverage ~~under division (D)(1) or (2) of thissection~~. Payments for such coverage shall be made, in advance,in a manner prescribed by the school employees health care board. The member's exercise of anoption to be covered under this section shall be in writing,announced at a regular public meeting of the board of education, and recordedas a public record in the minutes of the board.

~~For the purposes of determining the cost to board membersunder this division:~~

(1) In the case of a benefit plan purchased under division(A) of this section, the provider of the benefits shall certifyto the board the provider's charge for coverage under each optionavailable to employees under that benefit plan;

(2) In the case of benefits provided under division (B) or(C) of this section, the board of trustees of the jointlyadministered trust fund shall certify to the board of educationthe trustees' charge for coverage under each option available toemployees under each benefit plan.

~~(E) The board may provide the benefits described in thissection through an individual self-insurance program or a jointself-insurance program as provided in section 9.833 of theRevised Code.~~

(A) "Children" means children who are enrolled inkindergarten or who are of compulsory school age.

(B) "Latchkey program" means a program under whichchildren are provided with child care during a fiscal year at anytime outside of regular school hours. A program that containsany religious content, that uses any religious materials, or thatin any way promotes or furthers any religious beliefs is not alatchkey program.

~~(D)~~ "Program provider" means any agency, organization, orindividual, licensed under Chapter 5104. of the Revised Code orexempted from the licensing requirements of that chapter.

(1) Space in a building that is owned or controlled by aschool district and that is used for other school districtpurposes in addition to latchkey programs;

Sec. 3313.208. A board of education of a school district or the governing board of an educational service center may assess the needfor latchkey programs in its district or territory and determine the best andmost efficient manner of providing latchkey programs to childrenresiding in the district or territory. Prior to operating any latchkeyprogram, making any payments, or providing any employees orancillary services under sections 3313.207 to 3313.209 of theRevised Code, a board ~~of education~~ shall provide notification toparents and other interested parties that the board isconsidering ~~district~~ participation in the provision of latchkeyprograms and shall adopt a policy ensuring public input on theboard's decision whether or not to participate, as well as anydecisions concerning the district's or service center's role in the implementationand funding of any latchkey programs if the board does decide toparticipate. The policy shall also include provision forregular, periodic public input in the evaluation of any schooldistrict or service center participation in the provision of latchkey programs.

A board ~~of education~~ may ~~operate~~ provide a latchkey program,subject to the following limitations:

(A) The program shall be maintained and operated andpupils shall be admitted pursuant to rules adopted by the board;

(B) Fees or tuition, in amounts determined by the board,may be charged for participation in the program and shall bedeposited in a special fund;

~~(C) The board shall not expend any money from the generalfund of the district for the program, except as follows:~~

(1) The board may expend any money in the district'sgeneral fund resulting from an appropriation of the generalassembly that specifically permits the expenditure of suchappropriated funds for such a program.

~~(2) The board may provide ancillary services for theprogram notwithstanding the fact that some portions of suchservices may be supported by money from the district's generalfund~~.

Sec. 3313.209. (A) A board of education of a schooldistrict that does not ~~operate~~ provide a latchkey program may provideancillary services to and may make payments to any programprovider that operates a latchkey program that enrolls one ormore children who are residents of the school district.

(B) A board of education of a school district that doesnot ~~operate~~ provide a latchkey program and that does not make paymentsunder division (A) of this section may furnish to any person orentity that operates a latchkey program ancillary services oremployees for use solely in conjunction with the program'soperation.

(C) ~~No board of education shall expend any money from thegeneral fund of the district pursuant to division (A) or (B) ofthis section, except as follows:~~

(1) The board may expend any money in the district'sgeneral fund resulting from an approrpriation ofthe generalassembly that specifically permits the expenditure of suchappropriated funds for latchkey programs.

(2) The board may provide ancillary services pursuant todivision (A) or (B) of this section notwithstanding the fact thatsome portion of such services may be supported by money from thedistrict's general fund.

~~(D)~~ A board of education shall enter into a contract witha program provider as a condition for making any payments orfurnishing any ancillary services or employees authorized bydivision (A) or (B) of this section.

Sec. 3313.33. (A) Conveyances made by a board of educationshall be executed by the president and treasurer thereof.

(B) Except as provided in division (C) of this section, no member of the board shall have, directly or indirectly, anypecuniary interest in any contract of the board or be employed inany manner for compensation by the board of which the personis a member. No contract shall be binding upon any board unless it is made orauthorized at a regular or special meeting of such board.

(1) The member's pecuniary interest in that contract is that the member is employed by a political subdivision, instrumentality, or agency of the state that is contracting with the board;

(2) The member does not participate in any discussion or debate regarding the contract or vote on the contract;

(3) The member files with the school district treasurer an affidavit stating the member's exact employment status with the political subdivision, instrumentality, or agency contracting with the board.

(D) This section does not apply where a member of the board,being a shareholder of a corporation but not being an officer ordirector thereof, owns not in excess of five per cent of thestock of such corporation. If a stockholder desires to avail self of the exception, before entering upon suchcontract such person shall first file with the treasurer an affidavit stating the stockholder's exact status and connection with saidcorporation.

This section does not apply where a member of the boardelects to be covered by a ~~benefit~~ medical plan ~~of the school district~~under ~~division (D) of~~ section 3313.202 of the Revised Code.

Sec. 3313.489. (A) The superintendent of publicinstruction shall examine each ~~spending plan and appropriationsmeasure~~ five-year projection of revenues and expenditures submitted under section 5705.391 of the Revised Code andshall determine whether the information contained therein,together with any other relevant information, indicates that thedistrict may be financially unable to operate its instructionalprogram on all days set forth in its adopted school calendars andpay all obligated expenses during the current fiscal year. If aboard of education has not adopted a school calendar for theschool year beginning on the first day of July of the currentfiscal year at the time an examination is required under thisdivision, the superintendent shall examine the ~~spending plan andappropriations measure~~ five-year projection and determine whether the district may befinancially unable to pay all obligated expenses and operate itsinstructional program for the number of days on which instructionwas held in the preceding fiscal year.

(B) If the superintendent of public instruction determinespursuant to division (A) of this section that a schooldistrict may be financially unable to operate its instructionalprogram on all days required by such division and pay allobligated expenses during the current fiscal year, thesuperintendent shall provide written notification of suchdetermination to the president of the district's board ofeducation and the auditor of state.

(C) This section does not apply to a school districtdeclared to be under a fiscal emergency pursuant to division (B) of section3316.03 of the Revised Code.

Sec. 3313.6410. This section applies to any school that is operated by a school district and in which the enrolled students work primarily on assignments in nonclassroom-based learning opportunities provided via an internet- or other computer-based instructional method.

(A) Any school to which this section applies shall withdraw from the school any student who, for two consecutive school years, has failed to participate in the spring administration of any test prescribed under section 3301.0710 or 3301.0712 of the Revised Code for the student's grade level and was not excused from the test pursuant to division (C)(1) or (3) of section 3301.0711 of the Revised Code. The school shall report any such student's data verification code, as assigned pursuant to section 3301.0714 of the Revised Code, to the department of education to be added to the list maintained by the department under section 3314.26 of the Revised Code.

(B) No school to which this section applies shall receive any state funds under Chapter 3317. of the Revised Code for any enrolled student whose data verification code appears on the list maintained by the department under section 3314.26 of the Revised Code. Notwithstanding any provision of the Revised Code to the contrary, the parent of any such student shall pay tuition to the school district that operates the school in an amount equal to the state funds the district otherwise would receive for that student, as determined by the department. A school to which this section applies may withdraw any student for whom the parent does not pay tuition as required by this division.

Sec. 3313.975. As used in this section and in sections3313.975 to 3313.979 of the Revised Code, "the pilot projectschool district"or "thedistrict" means any school district included in the pilot project scholarshipprogram pursuant to this section.

(A) The superintendent of public instructionshall establish a pilot projectscholarship program and shall include in such program anyschool districts that are or have ever been under federalcourt order requiring supervision andoperational management of the district by the state superintendent. Theprogram shall provide for a number of studentsresiding in any such district to receive scholarships to attendalternative schools, and for an equal number of students toreceive tutorial assistance grants while attending public schoolin any such district.

(B) The state superintendent shall establish an applicationprocess and deadline for accepting applications from students residing inthe district to participate in the scholarship program. In theinitial year of the program students may only use a scholarshipto attend school in grades kindergarten through third.

The state superintendent shall award as many scholarships and tutorialassistance grants as can be funded given the amount appropriatedfor the program. In no case, however, shall more than fifty percent of all scholarships awarded be used by students who wereenrolled in a nonpublic school during the school year ofapplication for a scholarship.

(C)(1) The pilot project program shallcontinue ineffect each year that the general assembly has appropriatedsufficient money to fund scholarships and tutorial assistancegrants. In each year the program continues, no new students mayreceive scholarships unless they are enrolled in ~~grade~~ gradeskindergarten~~, one, two, or three~~ to eight. However, any student whohasreceived a scholarship the preceding year may continue to receiveone until the student has completed grade ~~eight~~ ten. Beginning in the ~~2003-2004~~ 2005-2006 academic year, a student who previously has received a scholarship may receive a scholarship in grade ~~nine~~ eleven. Beginning in the ~~2004-2005~~ 2006-2007 academic year, a student who previously has received a scholarship may receive a scholarship in grade ~~ten~~ twelve.

(2) If the general assembly discontinues the scholarshipprogram, all students who are attending an alternative schoolunder the pilot project shall beentitled to continued admittance to that specific school throughall grades ~~up to the tenth grade~~ that are provided insuch school, under the same conditionsas when they were participating in the pilot project. Thestate superintendent shall continue to make scholarship payments inaccordance with division(A) or (B) of section 3313.979 of theRevised Code for students who remain enrolledin an alternative school under this provision in any year thatfunds have been appropriated for this purpose.

If funds are not appropriated, the tuition charged to the parentsof a student who remains enrolledin an alternative school under this provision shall not beincreased beyond the amount equal to the amount of thescholarship plus any additional amount charged that student's parent in themost recent year of attendance as aparticipant in the pilot project, except that tuition for all thestudents enrolled in such school may be increased by the samepercentage.

(D) Notwithstanding sections 124.39, 3307.54,and 3319.17 of the Revised Code, if the pilotproject school district experiences a decrease in enrollment dueto participation in a state-sponsoredscholarship program pursuant to sections 3313.974 to 3313.979 ofthe Revised Code, the district board of education mayenter into an agreement with any teacher it employs to provide tothat teacher severance pay or early retirement incentives, orboth, if the teacher agrees to terminate the employment contractwith the district board, provided any collective bargainingagreement in force pursuant to Chapter 4117. of theRevised Code does not prohibit such an agreementfor termination of a teacher's employment contract.

Sec. 3313.976. (A) No private school mayreceive scholarship payments from parents pursuant to section3313.979 of the Revised Code until the chiefadministrator of the private school registers the school with thesuperintendent of public instruction. The state superintendent shall registerany school that meets the following requirements:

(1) The school is located within the boundaries of thepilot project school district;

(2) The school indicates in writing its commitment tofollow all requirements for a state-sponsored scholarship programspecifiedundersections 3313.974 to 3313.979 of the RevisedCode, including, but not limited to, the requirementsforadmitting students pursuant to section 3313.977 of the RevisedCode;

(3) The school meets all state minimum standards forchartered nonpublic schools in effect on July 1, 1992,except that the state superintendent at the superintendent's discretion mayregisternoncharterednonpublic schoolsmeeting the other requirements of this division;

(4) The school does not discriminate on the basis ofrace, religion, or ethnic background;

(5) The school enrolls a minimum of ten students perclass or a sum of at least twenty-five students in all theclasses offered;

(6) The school does not advocate or foster unlawfulbehavior or teach hatred of any person or group on the basis ofrace, ethnicity, national origin, or religion;

(7) The school does not provide false or misleadinginformation about the school to parents, students, or the generalpublic;

(8) For students in grades kindergarten through eight, the school agrees not to charge any tuition tolow-income families receiving ninety per cent of the scholarship amount through the scholarship program, pursuant to division (A) of section 3313.978 of the Revised Code, inexcess of ten percent of the scholarship amount established pursuant to division(C)(1) of section 3313.978 of the RevisedCode, excluding any increase described in division(C)(2) of that section. Theschool shall permit any such tuition, at the discretion of theparent, to be satisfied by the low-income family's provision ofin-kind contributions or services.

(9) For students in grades kindergarten through eight, the school agrees not to charge any tuition to low-income families receiving a seventy-five per cent scholarship amount through the scholarship program, pursuant to division (A) of section 3313.978 of the Revised Code, in excess of the difference between the actual tuition charge of the school and seventy-five per cent of the scholarship amount established pursuant to division (C)(1) of section 3313.978 of the Revised Code, excluding any increase described in division (C)(2) of that section. The school shall permit such tuition, at the discretion of the parent, to be satisfied by the low-income family's provision of in-kind contributions or services.

(10) The school agrees not to charge any tuition to families of students in grades nine ~~and ten~~ through twelve receiving a scholarship in excess of the actual tuition charge of the school less seventy-five or ninety per cent of the scholarship amount established pursuant to division (C)(1) of section 3313.978 of the Revised Code, as applicable, excluding any increase described in division (C)(2) of that section.

(B) The state superintendent shall revokethe registration of any school if, after a hearing, the superintendentdeterminesthat the school is in violation of any of the provisions ofdivision (A) of this section.

(C) Any public school located in a school districtadjacent tothe pilot project district may receive scholarship payments onbehalf of parents pursuant tosection 3313.979 of the Revised Code if thesuperintendent of the district in which such public school islocated notifies the state superintendent prior to the first day ofMarch that the districtintends to admit students from the pilot project districtfor the ensuing school year pursuant to section 3327.06 of theRevisedCode.

(D) Any parent wishing to purchase tutorialassistance from any person or governmental entity pursuant to thepilot project program under sections 3313.974 to3313.979 of the Revised Code shall apply to thestate superintendent. The state superintendent shall approveproviders who appear to possess the capability of furnishing theinstructional services they are offering to provide.

Sec. 3313.977. (A)(1) Each registered privateschool shall admit students to kindergarten and first, second, and thirdgrades in accordance with the following priorities:

(b) Siblings of students enrolled in the school duringthe preceding year, at the discretion of the school;

(c) Children from low-income families attending schoolor residing in the school district in which the school is locateduntil the number of such students in each grade equals the number thatconstituted twenty percent of the total number of students enrolled in the schoolduring the preceding year in such grade. Admission of suchtwenty per cent shall be by lot from among all low-income familyapplicants who apply prior to the fifteenth day of Februaryprior to admission.

(d) All other applicants residing anywhere, providedthat all remaining available spaces shall be filled from amongsuch applicants by lot.

Children from low-income families not selected by lotunder division (A)(1)(c) of this section shall beincludedin the lottery of all remaining applicants pursuant to division(A)(1)(d) of this section.

(2) Each registered private school shall first admit to grades fourthrough ~~ten~~ twelve students who were enrolled in the school during the precedingyear. Any remaining spaces for students in these grades may be filled asdetermined by the school.

(B) Notwithstanding division (A) ofthis section, except where otherwise prohibited by federal law, aregistered private school may elect to admit students of only one genderand may deny admission to any separately educated handicappedstudent.

(C) If a scholarship student who has been accepted in accordancewith this section fails to enroll in the school for any reason orwithdraws from the school during the school year for any reason,the school may elect to replace such student with another scholarship studentonly by firstoffering the admission to any low-income scholarship students who filedapplicationsby the preceding fifteenth day of February and who were notaccepted at that time due to space limitations.

Sec. 3313.978. (A) Annually by the first day ofNovember,the superintendent of public instruction shall notify thepilotproject school district of the number of initialscholarships thatthe state superintendent will be awarding ineach of gradeskindergarten through ~~third~~ eight.

The state superintendent shall provide information about thescholarship programto all students residing in the district,shall acceptapplications from anysuch students until such dateas shall be established by thestate superintendent as adeadlinefor applications, and shall establish criteria for the selectionofstudents to receivescholarships from among all those applyingprior to thedeadline, which criteria shall give preference tostudents fromlow-income families. For each student selected, thestate superintendentshall also determine whether the studentqualifies for seventy-five or ninetyper cent of the scholarshipamount. Students whose family income is at orabove two hundredper cent of the maximum income level established by thestatesuperintendent for low-income families shall qualify forseventy-fiveper cent ofthe scholarship amount and students whosefamily income is below two hundredper cent of that maximum incomelevel shall qualify for ninety per cent of thescholarship amount.The state superintendent shall notifystudents of their selectionprior to the fifteenth day of January andwhether they qualify forseventy-five or ninety per cent of the scholarshipamount.

(1) A student receiving a pilot project scholarship mayutilize it at an alternativepublic school by notifying thedistrict superintendent, at any time before the beginning of theschool year,of the name of the public school in an adjacentschool districtto which the student has beenaccepted pursuant tosection 3327.06 of the RevisedCode.

(2) A student may decide to utilize a pilot projectscholarship ata registered private school in the district if allof thefollowing conditions are met:

(a) By the fifteenth day of February of thepreceding schoolyear, or at any time prior to the start of theschool year, theparent makes an application on behalf of thestudent to aregistered private school.

(b) The registered private school notifies theparent andthe state superintendent as follows that thestudent has beenadmitted:

(i) By the fifteenth day of March ofthe preceding schoolyear if the student filed an application by thefifteenth day ofFebruary and was admitted by the schoolpursuant to division (A)of section 3313.977 of theRevised Code;

(ii) Within one week of the decision to admitthe student ifthe student is admitted pursuant to division(C) of section3313.977 of theRevised Code.

(c) The student actually enrolls in theregistered privateschool to which the student was first admitted or inanotherregistered private school in the district or in a public schoolinan adjacent school district.

(B) The state superintendent shall also award inany schoolyear tutorial assistance grants to a number ofstudentsequal tothe number of students who receive scholarships underdivision (A)of this section. Tutorial assistancegrants shall be awardedsolely to students who are enrolledin the public schools of thedistrict in a grade level covered bythepilot project. Tutorialassistancegrants may be used solely to obtaintutorial assistancefrom a provider approved pursuant to division(D) of section3313.976 of the RevisedCode.

All students wishing to obtain tutorial assistance grantsshall make application to the state superintendent by thefirstday ofthe school year in which theassistance will be used. Thestate superintendent shallaward assistance grants in accordancewith criteria the superintendent shallestablish. For eachstudent awarded a grant, the state superintendent shallalsodetermine whether the student qualifies for seventy-fiveor ninetyper cent of the grant amount and so notify the student. Studentswhose family income is at or above two hundred per cent of themaximum incomelevel established by the state superintendent forlow-income families shallqualify forseventy-five per cent of thegrant amount and students whose family income isbelow two hundredper cent of that maximum income level shall qualify forninety percent of the grant amount.

(C)(1) In the case of basic scholarships for students in grades kindergarten through eight, thescholarshipamount shall not exceed the lesser of the tuitioncharges of thealternative school the scholarship recipientattends or ~~an amountestablished by the state superintendent not in excessof~~ three thousand dollars before fiscal year 2007 and three thousand four hundred fifty dollars in fiscal year 2007 and thereafter.

In the case of basic scholarships for students in grades nine ~~and ten~~ through twelve, the scholarship amount shall not exceed the lesser of the tuition charges of the alternative school the scholarship recipient attends or ~~an amount established by the state superintendent not in excess of~~ two thousand seven hundred dollars before fiscal year 2007 and three thousand four hundred fifty dollars in fiscal year 2007 and thereafter.

(2) The state superintendent shall provide for an increasein the basicscholarship amount in the case of any student who isamainstreamed handicapped student and shall further increase suchamount in the case of any separately educated handicapped child.Such increases shall take into account the instruction, relatedservices, and transportation costs of educating such students.

(3) In the case of tutorialassistance grants, the grantamount shall not exceed thelesser of the provider's actualcharges for such assistance or a:

(a) Before fiscal year 2007, apercentage established by thestate superintendent, not to exceed twentyper cent, of the amountof the pilot project school district'saverage basic scholarshipamount;

(4) No scholarship or tutorial assistance grant shall beawarded unless the state superintendent determines thattwenty-five or ten per cent, as applicable, of the amountspecified for suchscholarship or grant pursuant to division(C)(1), (2), or (3) of thissection will be furnished by apolitical subdivision, a privatenonprofit or for profit entity,or another person. Onlyseventy-five or ninety per cent of suchamounts, as applicable, shall be paidfrom state funds pursuant tosection 3313.979 of the RevisedCode.

(D)(1) Annually by the first day ofNovember, the statesuperintendent shall estimate the maximumper-pupilscholarshipamounts for the ensuing school year. The statesuperintendentshall make this estimate available to thegeneralpublic at theoffices of the district board of education togetherwith theformsrequired by division (D)(2) of this section.

(2) Annually by the fifteenth day ofJanuary, the chiefadministrator of each registeredprivate school located in thepilot project district and theprincipal of each public school insuchdistrict shall complete a parental information form andforwardit to the president of the board of education. Theparentalinformation form shall be prescribed by the department ofeducation and shall provide information about the grade levelsoffered, the numbers of students, tuition amounts,achievementtest results, and any sectarian or otherorganizationalaffiliations.

Sec. 3313.98. Notwithstanding division (D) of section3311.19 and division (D) of section 3311.52 of the Revised Code,the provisions of this section and sections 3313.981 to 3313.983of the Revised Code that apply to a city school district do notapply to a joint vocational or cooperative education schooldistrict unless expressly specified.

(A) As used in this section and sections 3313.981 to3313.983 of the Revised Code:

(1) "Parent" means either of the natural or adoptiveparents of a student, except under the following conditions:

(a) When the marriage of the natural or adoptive parentsof the student has been terminated by a divorce, dissolution ofmarriage, or annulment or the natural or adoptive parents of thestudent are living separate and apart under a legal separationdecree and the court has issued an order allocating the parentalrights and responsibilities with respect to the student, "parent"means the residential parent as designated by the court exceptthat "parent" means either parent when the court issues a sharedparenting decree.

(b) When a court has granted temporary or permanentcustody of the student to an individual or agency other thaneither of the natural or adoptive parents of the student,"parent" means the legal custodian of the child.

(2) "Native student" means a student entitled undersection 3313.64 or 3313.65 of the Revised Code to attend schoolin a district adopting a resolution under this section.

(3) "Adjacent district" means a city, exempted village,or local school district having territory that abuts theterritory of a district adopting a resolution under this section.

(4) "Adjacent district student" means a student entitledunder section 3313.64 or 3313.65 of the Revised Code to attendschool in an adjacent district.

(5) "Adjacent district joint vocational student" meansan adjacent district student who enrolls in a city, exemptedvillage, or local school district pursuant to this section andwho also enrolls in a joint vocational school district that doesnot contain the territory of the district for which that studentis a native student and does contain the territory of the city,exempted village, or local district in which the student enrolls.

(6) "Formula amount" has the same meaning as in section 3317.02of the Revised Code.

(a) The fiscal year 2005 formulaamount multiplied by the fiscal year 2005cost-of-doing-business factor for adistrict defined in the version of section 3317.02 of theRevised Code in effect that year;

(b) The sum of (the current formula amount times the current cost-of-doing-business factor as defined in section 3317.02 of the Revised Code) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(8) "Poverty line" means the poverty line established bythe director of the United States office of management and budgetas revised by the director of the office of community services inaccordance with section 673(2) of the "Community Services BlockGrant Act," 95 Stat. 1609, 42 U.S.C.A. 9902, as amended.

(9) "IEP" means an individualized educationprogramdefined by division (E) of section 3323.01 of the Revised Code.

(10) "Other district" means a city,exempted village, or local school district having territoryoutside of the territory of a district adopting a resolutionunder this section.

(11) "Other district student" means a student entitledunder section 3313.64 or 3313.65 of the Revised Code to attend school in another district.

(12) "Other district joint vocational student" means astudent who is enrolled in any city, exempted village, or localschool district and who also enrolls in a joint vocationalschool district that does not contain the territory of thedistrict for which that student is a native student inaccordance with a policy adopted under section 3313.983 of theRevised Code.

(B)(1) The board of education of each city, local, andexempted village school district shall adopt a resolutionestablishing for the school district one of the following policies:

(a) A policy that entirelyprohibits the enrollment of students from adjacent districts orother districts, other than students for whomtuition ispaid in accordance with section 3317.08 of the Revised Code;

(b) A policy that permitsenrollment of students from all adjacentdistricts in accordance with policy statements contained inthe resolution;

(c) A policy that permits enrollment ofstudents from all other districts in accordance with policystatements contained in the resolution.

(2) A policy permitting enrollment of students from adjacentor from other districts, as applicable, shallprovide for all of the following:

(a) Application procedures, including deadlines forapplication and for notification of students and thesuperintendent ofthe applicable district whenever an adjacent or otherdistrict student's application isapproved.

(b) Procedures for admitting adjacent or other district applicants free ofany tuition obligation to the district's schools,including, but not limited to:

(i) The establishment of district capacity limits by gradelevel, school building, and education program;

(ii) A requirement that all native students wishing to beenrolled in the district will be enrolled and that any adjacentor other district students previouslyenrolled in the district shallreceive preference over first-time applicants;

(iii) Procedures to ensure that an appropriate racialbalance is maintained in the district schools.

(C) Except as provided in section 3313.982 of the RevisedCode, the procedures for admitting adjacent or other districtstudents, as applicable, shall not include:

(1) Any requirement of academic ability, or any level ofathletic, artistic, or other extracurricular skills;

(2) Limitations on admitting applicants because ofhandicapping conditions, except that a board may refuse to admita student receiving services under Chapter3323. of the Revised Code, if the services described in thestudent's IEP are not available in the district's schools;

(4) Rejection of any applicant because the student hasbeen subject to disciplinary proceedings, except that if anapplicant has been suspended or expelled by thestudent's districtfor ten consecutive days or more in the term for which admissionis sought or in the term immediately preceding the term for whichadmission is sought, the procedures may include a provisiondenying admission of such applicant.

(D)(1) Each school board permitting only enrollment of adjacentdistrict students shall provide information about thepolicy adopted under this section, including the applicationprocedures and deadlines, to the superintendent and the board ofeducation of each adjacent district and, upon request, to theparent of any adjacent district student.

(2) Each school board permitting enrollment of otherdistrict students shall provide information about the policyadopted under this section, including the application proceduresand deadlines, upon request, to the board of education of anyother school district or to the parent of any studentanywhere in the state.

(E) Any school board shall accept all credits towardgraduation earned in adjacent or other district schools by anadjacent or other district student or a native student.

(F)(1) No board of education may adopt a policydiscouraging or prohibiting its native students from applying toenroll in the schools of an adjacent or any other district that hasadopted a policy permitting such enrollment, except that:

(a) A district may object to the enrollment of a nativestudent in an adjacent or other district in order to maintain anappropriate racial balance.

(b) The board of education of a district receiving fundsunder 64 Stat. 1100 (1950), 20 U.S.C.A. 236 et seq., as amended,may adopt a resolution objecting to the enrollment of its nativestudents in adjacent or other districts if at least ten per cent ofits students are included in the determination of the United States secretaryof education made under section 20 U.S.C.A. 238(a).

(2) If a board objects to enrollment of native studentsunder this division, any adjacent or other district shall refuse toenrollsuch native students unless tuition is paid for the students inaccordance with section 3317.08 of the Revised Code. An adjacentor other district enrolling such students may not receive funding forthose students in accordance with section 3313.981 of the RevisedCode.

(G) The state board of education shall monitor schooldistricts to ensure compliance with this section and thedistricts' policies. The board may adopt rules requiring uniformapplication procedures, deadlines for application, notificationprocedures, and record-keeping requirements for all school boardsthat adopt policies permitting the enrollment of adjacent or otherdistrict students, as applicable. Ifthe state board adopts such rules, noschool board shall adopt a policy that conflicts with thoserules.

(H) A resolution adopted by a board of education underthis section that entirely prohibits the enrollment of studentsfrom adjacent and from other school districts does not abrogate anyagreemententered into under section 3313.841 or 3313.92 of the RevisedCode or any contract entered into under section 3313.90 of theRevised Code between the board of education adopting theresolution and the board of education of any adjacent or otherdistrict or prohibit these boards of education from entering into any suchagreement or contract.

(I) Nothing in this section shall be construed to permitor require the board of education of a city, exempted village, orlocal school district to exclude any native student of thedistrict from enrolling in the district.

Sec. 3314.013. (A)(1) Until July 1, 2000, nomore thanseventy-five contracts between start-up schools and the stateboard ofeducation may be in effect outside the pilot project areaat any time underthis chapter.

(2) After July 1, 2000, and until July 1, 2001, no morethanonehundred twenty-five contracts between start-up schools and thestate board ofeducation may be in effect outside the pilotproject area at any timeunder this chapter.

(3) This division applies only to contracts between start-upschools and the state board of education and contracts betweenstart-up schools and entities described in divisions (C)(1)(b) to(f) of section 3314.02 of the Revised Code.

Until July 1, 2005, not more than two hundred twenty-fivecontractsto which thisdivision applies may be in effect at anytimeunderthis chapter.

(4) This division applies only to contracts between start-up schools and entities described in divisions (C)(1)(b) to (f) of section 3314.02 of the Revised Code.

Except as otherwise provided in section 3314.014 of the Revised Code, after July 1, 2005, and until July 1, 2007, the number of contracts to which this division applies in effect at any time under this chapter shall be not more than thirty plus the number of such contracts with schools that were open for operation as of May 1, 2005.

(5) This division applies only to contracts between a conversion school that is an internet- or computer-based community school or a start-up school and the board of education of the school district in which the school is or is proposed to be located.

Except as otherwise provided in section 3314.014 of the Revised Code,until July 1, 2007, the number of contracts to which this division applies in effect at any time under this chapter shall be not more than thirty plus the number of such contracts with schools that were open for operation as of May 1, 2005.

(6) Until the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools, no internet- or computer-based community school shall operate unless the school was open for instruction as of May 1, 2005. No entity described in division (C)(1) of section 3314.02 of the Revised Code shall enter into a contract to sponsor an internet- or computer-based community school, including a conversion school, between May 1, 2005, and the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools, except as follows:

(a) Any entity described in division (C)(1) of that section may renew a contract that the entity entered into with an internet- or computer-based community school prior to May 1, 2005, if the school was open for operation as of that date.

(b) Any entity described in divisions (C)(1)(a) to (e) of that section may assume sponsorship of an existing internet- or computer-based community school that was formerly sponsored by another entity and may enter into a contract with that community school in accordance with section 3314.03 of the Revised Code.

(c) Any entity described in division (C)(1)(f) of that section may assume sponsorship of an existing internet- or computer-based community school in accordance with division (A)(7) of this section and may enter into a contract with that community school in accordance with section 3314.03 of the Revised Code.

If a sponsor entered into a contract with an internet- or computer-based community school, including a conversion school, but the school was not open for operation as of May 1, 2005, the contract shall be void and the entity shall not enter into another contract with the school until the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools.

(7) Until July 1, 2005, any entity described in division (C)(1)(f) of section 3314.02 of the Revised Code may sponsor only a community school that formerly was sponsored by the state board of education under division (C)(1)(d) of that section, as it existed prior to April 8, 2003. After July 1, 2005, any such entity may assume sponsorship of any existing community school, and may sponsor any new community school that is not an internet- or computer-based community school. Beginning on the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools, any such entity may sponsor a new internet- or computer-based community school.

(8) Nothing in division (A) of this section prohibits a community school from increasing the number of grade levels it offers.

(B) Within twenty-four hours of a request by any person, thesuperintendent of public instruction shall indicate the number ofpreliminary agreements for start-up schoolscurrently outstanding and the number of contracts for theseschools in effect at the time of the request.

(C) It is the intent of the general assembly to considerwhetherto provide limitations on the number of start-up communityschools afterJuly 1, 2001, following its examination of theresults ofthe studies by the legislative office of educationoversight required underSection 50.39 ofAm.Sub.H.B.No. 215 of the 122nd generalassembly andSection 50.52.2ofAm.Sub.H.B.No. 215 of the 122nd generalassembly, as amendedby Am.Sub.H.B.No. 770 of the 122nd generalassembly.

Sec. 3314.014. As used in this section, "operator" means an organization that manages the daily operations of a community school pursuant to a contract between the operator and the school's governing authority.

(A)(1) Notwithstanding the limit prescribed by division (A)(4) of section 3314.013 of the Revised Code, a start-up school sponsored by an entity described in divisions (C)(1)(b) to (f) of section 3314.02 of the Revised Code may be established after the date that limit is reached, provided the school's governing authority enters into a contract with an operator permitted to manage the school under division (B) of this section.

(2) Notwithstanding the limit prescribed by division (A)(5) of section 3314.013 of the Revised Code, a conversion school that is an internet- or computer-based community school or a start-up school sponsored by the school district in which the school is or is proposed to be located may be established after the date that limit is reached, provided the school's governing authority enters into a contract with an operator permitted to manage the school under division (B) of this section. However, a conversion school that is an internet- or computer-based community school may be established after that date only if the prohibition prescribed by division (A)(6) of section 3314.013 of the Revised Code is no longer in effect.

(B) An operator may enter into contracts with the governing authorities of community schools established after the date the limit prescribed by division (A)(4) or (5) of section 3314.013 of the Revised Code, as applicable, is reached, provided the total number of schools for which the operator enters into such contracts, excluding conversion schools that are not internet- or computer-based community schools, does not exceed the number of community schools managed by the operator on the applicable date that are rated excellent, effective, or in need of continuous improvement pursuant to section 3302.03 of the Revised Code.

Sec. 3314.015. (A) The department of education shall beresponsible for the oversight of sponsors of the community schoolsestablishedunder this chapter and shall provide technicalassistance to schools and sponsors in their compliance withapplicable laws and the terms of the contracts entered into undersection 3314.03 of the Revised Code and in the development andstart-up activities of those schools. In carrying out its dutiesunder this section, the department shall do all of the following:

(1) In providing technical assistance to proposing parties,governing authorities, and sponsors, conduct training sessions anddistribute informational materials;

(2) Approve entities to be sponsors of community schools andmonitor the effectiveness of those sponsors in their oversight ofthe schools with which they have contracted;

(3) By December thirty-first of each year, issue a reportto the governor, the speaker ofthe house of representatives, thepresident of the senate, and thechairpersons of the house andsenate committees principallyresponsible for education mattersregarding the effectiveness ofacademic programs, operations, andlegal compliance and of the financial condition of allcommunityschools established under this chapter;

(4) From time to time, make legislative recommendations tothe general assembly designed to enhance the operation andperformance of community schools.

(B)(1) No entity listed in division (C)(1) of section3314.02 of the Revised Code shall enter into a preliminaryagreement under division (C)(2) of section 3314.02 of the RevisedCode until it has received approval from the department ofeducation to sponsor community schools under this chapter and hasentered into a written agreement with the department regarding themanner in which the entity will conduct such sponsorship. Thedepartment shall adopt in accordance with Chapter 119. of theRevised Code rules containing criteria, procedures, anddeadlinesforprocessing applications for such approval, for oversight ofsponsors, for revocation of the approval of sponsors, and forentering into written agreements with sponsors. Therules shallrequire an entity to submit evidence of the entity'sability andwillingness to comply with the provisions of division(D) ofsection 3314.03 of the Revised Code. The rules also shall require entities approved as sponsors on and after the effective date of this amendment to demonstrate a record of financial responsibility and successful implementation of educational programs. If an entity seeking approval on or after the effective date of this amendment to sponsor community schools in this state sponsors or operates schools in another state, at least one of the schools sponsored or operated by the entity must be comparable to or better than the performance of Ohio schools in a state of academic watch under section 3302.03 of the Revised Code, as determined by the department.

An entity that ~~is approved to sponsor~~ sponsors community schools mayenter into ~~any number of~~ preliminary agreements and sponsor ~~anynumber of~~ schools as follows, provided each school and the contract forsponsorship meets the requirements of this chapter:

(a) An entity that sponsored fifty or fewer schools that were open for operation as of May 1, 2005, may sponsor not more than fifty schools.

(b) An entity that sponsored more than fifty but not more than seventy-five schools that were open for operation as of May 1, 2005, may sponsor not more than the number of schools the entity sponsored that were open for operation as of May 1, 2005.

(c) Until June 30, 2006, an entity that sponsored more than seventy-five schools that were open for operation as of May 1, 2005, may sponsor not more than the number of schools the entity sponsored that were open for operation as of May 1, 2005. After June 30, 2006, such an entity may sponsor not more than seventy-five schools.

Upon approval of an entity to be a sponsor under this division, the department shall notify the entity of the number of schools the entity may sponsor.

The limit imposed on an entity to which division (B)(1)(b) or (c) of this section applies shall be decreased by one for each school sponsored by the entity that permanently closes until the number of schools sponsored by the entity is fifty.

If at any time an entity exceeds the number of schools it may sponsor under this division, the department shall assist the schools in excess of the entity's limit in securing new sponsors. If a school is unable to secure a new sponsor, the department shall assume sponsorship of the school in accordance with division (C) of this section. Those schools for which another sponsor or the department assumes sponsorship shall be the schools that most recently entered into contracts with the entity under section 3314.03 of the Revised Code.

(2) The department of education shall determine, pursuant tocriteria adopted by rule of the department, whether the missionproposed to be specified in the contract of a community school tobe sponsored by a state university board of trustees or theboard's designee under division (C)(1)(e) of section 3314.02 ofthe Revised Code complies with the requirements of that division.Such determination of the department is final.

(3) The department of education shall determine, pursuant tocriteria adopted by rule of the department, if any tax-exemptentity under section 501(c)(3) of the Internal Revenue Code thatis proposed to be a sponsor of a community school is aneducation-oriented entity for purpose of satisfying the conditionprescribed in division (C)(1)~~(e)(iv)~~(f)(iii) of section 3314.02 of theRevised Code. Such determination of the department is final.

(C) If at any time the state board of educationfinds that asponsor is not in compliance or is no longer willingto complywith its contract with any community school or with thedepartment's rules for sponsorship, thestate board or designeeshall conduct a hearing in accordance with Chapter119. of theRevised Code on that matter. If after the hearing,the stateboard or designee has confirmed the original finding, thedepartment of education may revoke the sponsor's approval tosponsorcommunity schools and may assume the sponsorship of anyschoolswith which the sponsor has contracted until the earlier oftheexpiration of two school years or until a new sponsor asdescribedin division (C)(1) of section 3314.02 of the RevisedCode issecured by the school's governing authority. Thedepartment mayextend the term of the contract in the case of aschool for whichit has assumed sponsorship under this division asnecessary toaccommodate the term of the department'sauthorization to sponsorthe school specified in this division.

(D) The decision of the department to disapprove an entityfor sponsorship of a community school or to revoke approval forsuch sponsorship, as provided in division (C) of this section, maybe appealed by the entity in accordance with section 119.12 of theRevised Code.

(E) The department shall adopt procedures for use by a community school governing authority and sponsor when the school permanently closes and ceases operation, which shall include at least procedures for data reporting to the department, handling of student records, distribution of assets in accordance with section 3314.074 of the Revised Code, and other matters related to ceasing operation of the school.

(F) In carrying out its duties under this chapter, thedepartment shall not impose requirements on community schools ortheir sponsors that are not permitted by law or duly adoptedrules.

(1)"Sponsor" meansan entity listed in division(C)(1)ofthissection, which has been approved by the departmentof education to sponsor community schools and with which thegoverningauthority of theproposedcommunity school enters into acontract pursuant to thissection.

(2)"Pilot project area" meansthe school districtsincludedin the territory of the former communityschool pilot projectestablished by former Section 50.52 of Am. Sub. H.B. No. 215ofthe 122nd general assembly.

(b) A school district that iseither in a state of academicemergencyor in a state of academic watch under section 3302.03 ofthe RevisedCode;

(4)"Big eight school district" meansa school district thatfor fiscal year 1997 hadboth of the following:

(a) A percentage of children residing in thedistrict andparticipating in the predecessor ofOhio works first greater thanthirty per cent, as reported pursuant to section 3317.10 of theRevisedCode;

(b) An average daily membership greater thantwelvethousand, as reported pursuant to former division(A) of section3317.03 of theRevised Code.

(5)"New start-up school" means a community school otherthanone createdby converting all or part of an existing publicschool, as designated in theschool's contract pursuant todivision (A)(17) of section 3314.03of the Revised Code.

(6)"Urban school district" means one of the state'stwenty-oneurban school districts as defined in division (O) ofsection 3317.02of the Revised Code as that section existed priorto July 1, 1998.

(7) "Internet- orcomputer-based community school" means acommunity schoolestablished under this chapter in which theenrolled students work primarily from their residences onassignments in nonclassroom-based learning opportunities provided via an internet- or other computer-basedinstructional method that does not rely on regular classroominstruction or via comprehensive instructional methods that include internet-based, other computer-based, and noncomputer-based learning opportunities.

(B) Any person or group ofindividuals may initially proposeunder thisdivision the conversion of all or a portion of a publicschool to a communityschool. The proposalshall be made to theboard of education ofthe city, local, orexempted village schooldistrictinwhich the public school isproposed to be converted.Upon receipt of aproposal, a board mayenter into a preliminaryagreement with the person orgroupproposing the conversion of thepublic school, indicating theintention of the board of educationtosupport the conversion to acommunity school. A proposingperson or groupthat has apreliminaryagreement under thisdivision may proceed to finalizeplans for the school,establish agoverning authority for theschool, and negotiate a contract withthe board of education.Provided the proposing person or groupadheres to thepreliminaryagreement and all provisions of thischapter, the board ofeducation shall negotiate in good faith toenter into a contractin accordancewith section 3314.03 of theRevised Code anddivision (C) of this section.

(C)(1) Any person or group ofindividuals may propose underthis division theestablishment of a new start-up school to belocated ina challengedschool district. The proposal may bemadetoany of the followingentities:

(a) The board of education of thedistrict in which theschool is proposed to belocated;

(b) The board of education of any jointvocational schooldistrict with territory in the county in which islocated themajorityof the territory of the district in which theschool isproposed to be located;

(c) The board of education of any othercity, local, orexempted village school district havingterritory in the samecounty where thedistrict in which the school is proposed to belocated has the majorportion of its territory;

(e) Asponsoringauthority designated by theboardoftrustees ofany of the thirteen state universities listed in section3345.011 of the Revised Codeor the board oftrustees itselfaslong as a mission of the proposed school to be specified in thecontract under division (A)(2) of section 3314.03 of the RevisedCode and as approved by the department of education under division(B)(2) of section 3314.015 of the Revised Code will be thepractical demonstration of teaching methods,educationaltechnology, or other teaching practices that areincluded in thecurriculum of the university's teacher preparationprogramapproved by the state board of education;

(f) Any qualified tax-exempt entity under section501(c)(3) of the Internal Revenue Code as long as all of thefollowing conditions are satisfied:

(i) The entity has been in operation for at least fiveyears prior to applying to be a community school sponsor.

(iii) The department of education has determined that theentity is an education-oriented entity under division (B)(3) ofsection 3314.015 of the Revised Code.

Until July 1, 2005, any entity described in division(C)(1)(f) of this section may sponsor only schools that formerlywere sponsoredby the state board of education under division(C)(1)(d) of thissection, as it existed prior to April 8, 2003. After July 1, 2005, such entity maysponsor any new orexisting school.

Any entitydescribed in division (C)(1) of thissection may enterinto apreliminary agreementpursuanttodivision (C)(2) of thissection with the proposingperson orgroup.

(2) A preliminary agreement indicates theintention ofan entity described in division (C)(1)of this sectiontosponsor the community school. A proposing person orgroup thathas such a preliminary agreement may proceed tofinalize plans forthe school, establish a governing authorityas described indivision (E) of this sectionfor the school, andnegotiate acontract with the entity. Provided theproposing person orgroup adheres to thepreliminary agreement andall provisions ofthis chapter, the entity shall negotiatein good faith toenter into acontract in accordance with section3314.03 of theRevisedCode.

(3) A new start-up school that is established in a schooldistrict while that district iseither in a state of academicemergencyor in a state of academic watch under section3302.03 ofthe Revised Code maycontinue inexistence once the schooldistrict is no longerin astate ofacademic emergencyor academicwatch, provided there is a validcontract betweentheschool and asponsor.

(4) A copy of every preliminary agreement entered into underthisdivision shall be filed with the superintendent of publicinstruction.

(D) A majority vote ofthe board of a sponsoringentityand amajority vote of the members of thegoverning authority of acommunity school shall be required toadopt a contract andconvertthe public school to a communityschool or establish the newstart-up school. ~~Up to thestatewide limit prescribed in section~~ Beginning on the effective date of this amendment, adoption of the contract shall occur not later than the fifteenth day of March prior to the school year in which the school will open. Subject to sections 3314.013 and 3314.014 of the RevisedCode, an unlimited numberofcommunity schoolsmay beestablishedin any school districtprovided that a contract isentered intofor each community schoolpursuant tothis chapter.

(E) As used in this division, "immediate relatives" arelimited to spouses, children, parents, grandparents, siblings, andin-laws.

Each new start-up community school established underthischapter shall be under the direction of a governing authoritywhich shall consist of a board of not less than five individualswho are not owners or employees, or immediate relatives of ownersor employees, of any for-profit firm thatoperates ormanages aschool for the governing authority.

No person shall serve on the governing authority oroperate the community school under contract with the governingauthority so long as the person owes the state any money or is ina dispute over whether the person owes the state any moneyconcerning the operation of a community school that has closed.

(F) Nothing in this chapter shall be construed to permit theestablishment of a community school in more than one schooldistrict under the same contract.

(G)(1) A new start-up school that is established prior to ~~the effective date of this amendment~~ August 15, 2003, in an urban school district that is not also a big-eight school district may continue to operate after ~~the effective~~ that date ~~of this amendment~~ and the contract between the school's governing authority and the school's sponsor may be renewed, as provided under this chapter, after ~~the effective~~ that date ~~of this amendment~~, but no additional new start-up schools may be established in such a district unless the district is a challenged school district as defined in this section as it exists on and after ~~the effective~~ that date ~~of this amendment~~.

(2) A community school that was established prior to June 29, 1999, and is located in a county contiguous to the pilot project area and in a school district that is not a challenged school district may continue to operate after that date, provided the school complies with all provisions of this chapter. The contract between the school's governing authority and the school's sponsor may be renewed, but no additional start-up community school may be established in that district unless the district is a challenged school district.

Sec. 3314.021. (A) This section applies to any entity that isexempt from taxation under section 501(c)(3) of the InternalRevenue Code and that satisfies the conditions specified indivisions (C)(1)(f)(ii) and (iii) of section 3314.02 of theRevised Code but does not satisfy the condition specified indivision (C)(1)(f)(i) of that section.

(B) Notwithstanding division (C)(1)(f)(i) of section 3314.02of the Revised Code, an entity described in division (A) of thissection may do both of the following without obtaining the department of education's approval of its sponsorship under division (B)(1) of section 3314.015 of the Revised Code:

(1) Succeed the board of trustees of a state universitylocated in the pilot project area or that board's designee as thesponsor of a community school established under this chapter;

(2) Continue to sponsor that school in conformance withthe terms of the contract between the board of trustees or itsdesignee and the governing authority of the community school and renew that contract as provided in division (E) of section3314.03 of the Revised Code.

(C) The entity that succeeds the board of trustees or the board's designee as sponsor of a community school under division (B) of this section also may enter into contracts to sponsor other community schools located in any challenged school district, without obtaining the department's approval of its sponsorship under division (B)(1) of section 3314.015 of the Revised Code, and not subject to the restriction of ~~the paragraph following division (C)(1)(f)(iii)~~ division (A)(7) of section ~~3314.02~~ 3314.013 of the Revised Code, as long as the contracts conform with and the entity complies with all other requirements of this chapter.

Sec. 3314.03. A copy of every contract entered intounder this section shall be filed with the superintendent ofpublic instruction.

(A) Each contract entered into between a sponsor and the governingauthority of acommunity school shall specify the following:

(a) A nonprofitcorporation establishedunder Chapter 1702.of the Revised Code,if established prior to April 8, 2003;

(b) A public benefit corporation established under Chapter1702. of the Revised Code, if established after April 8, 2003;

(2) The education program of the school, including theschool's mission,the characteristics of the students the schoolis expected to attract, the ages and grades of students, and thefocus of thecurriculum;

(3) The academic goals to be achieved and the method ofmeasurement thatwill be used to determine progress toward thosegoals, which shall include the statewideachievementtests;

(4) Performance standards by which the success of theschoolwill be evaluated by the sponsor;. If the sponsor will evaluate the school in accordance with division (D) of section 3314.36 of the Revised Code, the contract shall specify the number of school years that the school will be evaluated under that division.

(5) The admission standards of section 3314.06 of theRevised Code and, if applicable, section 3314.061 of the Revised Code;

(b) A requirement that the governing authority adopt anattendance policy that includes a procedure for automaticallywithdrawing a student from the school if the student without alegitimate excuse fails to participate in one hundred fiveconsecutive hours of the learning opportunities offered to thestudent. ~~Such a policy shall provide for withdrawing the studentby the end of the thirtieth day after the student has failed toparticipate as required under this division.~~

(7) The ways by which the school will achieve racial andethnic balancereflective of the community it serves;

(8) Requirements forfinancial audits by theauditor of state. The contract shall requirefinancial records ofthe school to be maintained inthe same manner as are financialrecords of school districts, pursuant torules of the auditor ofstate, and the audits shall be conducted inaccordance withsection 117.10 of the Revised Code.

(10) Qualifications of teachers,including a requirementthat the school'sclassroom teachers be licensed in accordancewith sections 3319.22 to3319.31 of the Revised Code, except thata community school may engagenoncertificated persons to teach upto twelvehours per week pursuant to section 3319.301 of theRevised Code;

(a) The school will provide learning opportunities to aminimumof twenty-five students for a minimum of ninehundredtwenty hours per school year;

(b) The governing authority willpurchase liabilityinsurance, or otherwise provide for thepotential liability of theschool;

(c) The school will benonsectarian in its programs,admission policies,employment practices, and all otheroperations, and will not beoperated by a sectarian school orreligious institution;

(d) The school will comply with sections 9.90, 9.91, 109.65,121.22,149.43, 2151.358, 2151.421, 2313.18,3301.0710, 3301.0711,3301.0712,3301.0715, 3313.50,3313.608, 3313.6012,3313.643,3313.648, 3313.66, 3313.661,3313.662,3313.67,3313.671,3313.672,3313.673, 3313.69, 3313.71, 3313.716,3313.80,3313.96,3319.073, 3319.321, 3319.39, 3321.01,3321.13, 3321.14,3321.17,3321.18, 3321.19, 3321.191, 3327.10, 4111.17,4113.52, and5705.391andChapters 117., 1347.,2744., 3365.,3742., 4112., 4123.,4141., and4167. ofthe Revised Codeas if it were aschooldistrictand will comply with section3301.0714 of theRevisedCode in the manner specified in section3314.17 of theRevisedCode;

(e) The school shall comply with Chapter 102. of the RevisedCode except thatnothing in that chapter shall prohibit amemberof the school's governing board from also being an employeeof theschool and nothing in that chapter or section 2921.42 oftheRevised Code shall prohibit a member of theschool's governingboard from having an interest in acontract into which thegoverning board entersthat is not a contract with a for-profitfirm for the operation ormanagement of a school under theauspices of the governingauthority;

(f) The school will comply with sections 3313.61,3313.611,and 3313.614 of the Revised Code, except that therequirement insections3313.61 and 3313.611 of the RevisedCode that a personmust successfullycomplete the curriculuminany high school priorto receiving ahigh school diploma may bemet by completing thecurriculum adopted by thegoverningauthority of the communityschoolrather than the curriculumspecified in Title XXXIII of theRevised Code or any rules of thestate board of education;

(g) The school governing authority will submitwithin four months after the end of each school year areportofits activities and progress in meeting the goals andstandards ofdivisions(A)(3) and (4) of this section and itsfinancial statusto thesponsor, the parents of all studentsenrolled in theschool, and the legislative office of educationoversight. Theschool willcollect and provideany data that thelegislativeoffice of education oversight requests infurtheranceof any studyor research that the general assembly requires theoffice toconduct, including the studies required under Section50.39of Am.Sub. H.B. 215 of the122nd general assembly andSection 50.52.2 ofAm. Sub. H.B. 215 of the122nd generalassembly, as amended.

(13) The length of the contract, which shall begin at thebeginning of anacademic year. No contract shall exceedfive yearsunless such contract has been renewed pursuant todivision (E) of this section.

(14) The governing authority of the school, which shall beresponsible for carrying out the provisions of the contract;

(15) A financial plan detailing an estimated school budgetfor each yearof the period of the contract and specifying thetotal estimated per pupilexpenditure amount for each such year.The plan shall specify foreach year the base formula amountthatwill be used for purposes of funding calculations under section3314.08of the Revised Code. This base formula amount for anyyear shall not exceedthe formula amount defined under section3317.02of the Revised Code. The plan may alsospecify for anyyear a percentage figure to be used for reducing the per pupilamount of ~~disadvantaged pupil impact aid~~ the subsidy calculated pursuant tosection 3317.029 of the Revised Code the school is toreceive thatyear under section 3314.08 of the Revised Code.

(16) Requirements and procedures regarding the dispositionofemployees of the school in the event the contract is terminatedor not renewed pursuant to section 3314.07 of the Revised Code;

(17) Whether the school is to be created byconverting allor part of an existing public school or is to be a new start-upschool, and if it is a converted public school, specification ofany duties orresponsibilities of an employer that the board ofeducation that operated theschool before conversion is delegatingto the governing board of the communityschool with respect to allor any specified group of employees provided thedelegation is notprohibited by a collective bargaining agreement applicableto suchemployees;

(18) Provisions establishing procedures for resolvingdisputes ordifferences of opinion between the sponsor and thegoverning authority of thecommunity school;

(19) A provision requiring the governing authority to adopta policyregardingthe admission of students who reside outsidethe district in which the schoolis located. That policy shallcomply with the admissions procedures specifiedin ~~section~~ sections 3314.06 and 3314.061of the Revised Code and, at the solediscretion of the authority,shall do one of the following:

(a) Prohibit the enrollment of students who reside outsidethedistrict in which the school is located;

(b) Permit the enrollment of students who reside indistrictsadjacent to the district in which the school is located;

(20) A provision recognizing the authority of the departmentof education to take over the sponsorship of the school inaccordance with the provisions of division (C) of section 3314.015of the Revised Code;

(21) A provision recognizing the sponsor's authority toassume the operation of a school under the conditions specified indivision (B) of section 3314.073 of the Revised Code;

(a) The authority of public health and safety officials toinspect the facilities of the school and to order the facilitiesclosed if those officials find that the facilities are not incompliance with health and safety laws and regulations;

(b) The authority of thedepartment of education as thecommunity school oversight body tosuspend the operation of theschool under section 3314.072 of theRevised Code if thedepartment has evidence of conditions orviolations of law at theschool that pose an imminent danger tothe health and safety ofthe school's students and employees andthe sponsor refuses totake such action;

(23) A description of the learning opportunities that willbe offered to students including both classroom-based andnon-classroom-based learning opportunities that is in compliancewith criteria for student participation established by thedepartment under division (L)(2) of section 3314.08 of the RevisedCode;

(24) The school will comply with section 3302.04 of the Revised Code, including division (E) of that section to the extent possible, except that any action required to be taken by a school district pursuant to that section shall be taken by the sponsor of the school. However, the sponsor shall not be required to take any action described in division (F) of that section.

(25) Beginning in the 2006-2007 school year, the school will open for operation not later than the thirtieth day of September each school year, unless the mission of the school as specified under division (A)(2) of this section is solely to serve dropouts. In its initial year of operation, if the school fails to open by the thirtieth day of September, or within one year after the adoption of the contract pursuant to division (D) of section 3314.02 of the Revised Code if the mission of the school is solely to serve dropouts, the contract shall be void.

(B) The community school shall also submit to the sponsor acomprehensive plan for theschool. The plan shall specify thefollowing:

(1) The process by which the governing authority of theschool will beselected in the future;

(3) If the community school is a currently existingpublicschool, alternative arrangementsfor current public schoolstudents who choosenot to attend the school and teachers whochoose not to teach inthe school after conversion;

(C) A contract entered into under section 3314.02 of theRevisedCode between a sponsor and the governingauthority of acommunity school may provide for the community school governingauthority to make payments to the sponsor, which is herebyauthorized toreceive such payments as set forth in the contractbetween the governingauthority and the sponsor.The total amountof such payments for oversight and monitoring of the school shallnot exceed three per cent of the totalamount of payments foroperating expenses that the school receivesfrom the state.

(D) The contract shall specify the duties of the sponsorwhich shall be in accordance with the written agreement enteredinto with the department of education under division (B) ofsection 3314.015 of the Revised Code and shall include thefollowing:

(1) Monitor the community school's compliance with all lawsapplicable to the school and with the terms of the contract;

(2) Monitor and evaluate the academic and fiscalperformance and the organization and operation of the communityschool on at least an annual basis;

(3) Report on an annual basis the results of the evaluationconducted under division (D)(2) of this section to the departmentof education and to the parents of students enrolled in thecommunity school;

(4) Provide technical assistance to the community schoolin complying with laws applicable to the school and terms of thecontract;

(5) Take steps to intervene in the school's operation tocorrect problems in the school's overallperformance, declare theschool to be on probationary statuspursuant to section 3314.073of the Revised Code, suspend theoperation of the school pursuantto section 3314.072 of theRevised Code, or terminate the contractof the school pursuant tosection 3314.07 of the Revised Code asdetermined necessary by thesponsor;

(6) Have in place a plan of action to be undertaken in theevent the community school experiences financial difficulties orcloses prior to the end of a school year.

(E) Upon the expiration of acontract entered into underthis section, the sponsor of acommunity school may, with theapproval of the governing authorityof the school, renew thatcontract fora period of time determined by the sponsor, but notending earlierthan the end of any school year, if the sponsorfinds that theschool's compliance with applicable laws and termsof the contractand the school's progress in meeting the academicgoals prescribedin the contract have been satisfactory. Anycontract that is renewedunder this division remains subject tothe provisions of sections3314.07, 3314.072, and 3314.073 of theRevised Code.

(F) If a community school fails to open for operation within one year after the contract entered into under this section is adopted pursuant to division (D) of section 3314.02 of the Revised Code or permanently closes prior to the expiration of the contract, the contract shall be void and the school shall not enter into a contract with any other sponsor. A school shall not be considered permanently closed because the operations of the school have been suspended pursuant to section 3314.072 of the Revised Code. Any contract that becomes void under this division shall not count toward any statewide limit on the number of such contracts prescribed by section 3314.013 of the Revised Code.

Sec. 3314.06. The governing authority of each communityschoolestablished under this chapter shall adopt admissionprocedures that specifythe following:

(A) That except as otherwise provided in this section,admission to theschool shall be open to any individualagefiveto twenty-twoentitled toattend school pursuant to section3313.64 or 3313.65 of the Revised Code ina school district in thestate.

(B)(1) That admission to the school may be limited tostudentswhohave attained a specific grade level or are withinaspecificage group; to students that meet a definition of"at-risk," asdefined in the contract; or to residents of aspecific geographicareawithin the district,as defined in thecontract; or to separate groups of autistic students and nonhandicapped students, as authorized in section 3314.061 of the Revised Code and as defined in the contract.

(2) For purposes of division (B)(1) of this section,"at-risk" students may include those students identified as giftedstudents under section 3324.03 of the Revised Code.

(C) Whether enrollment is limited to students who reside inthe districtin which the school is located or is open toresidents of other districts, asprovided in the policy adoptedpursuant to the contract.

(D)(1) That there will be no discrimination in the admissionofstudents to the school on the basis of race, creed, color,handicappingcondition, or sexexcept that ~~the~~:

(a) Thegoverningauthority may establish single-gender schools for thepurposedescribed in division (G) of this section providedcomparable facilities and learning opportunities are offered forboth boys and girls. Such comparable facilities and opportunitiesmay be offered for each sex at separate locations.

(b) The governing authority may establish a school that simultaneously serves a group of students identified as autistic and a group of students who are not handicapped, as authorized in section 3314.061 of the Revised Code. However, unless the total capacity established for the school has been filled, no student with any handicap shall be denied admission on the basis of that handicap.

(2) That uponadmission of anyhandicapped student, thecommunityschool willcomply with allfederal and state lawsregarding theeducation ofhandicappedstudents.

(E) That the school may not limit admission to students onthebasis of intellectual ability, measures of achievement oraptitude, orathletic ability, except that a school may limit itsenrollment to students as described in division (B)~~(2)~~ of thissection.

(F) That the community school will admit the number ofstudentsthat does not exceedthe capacity of the school'sprograms, classes, grade levels, orfacilities.

(G)That the purpose of single-gender schools that areestablished shall be to take advantage of the academic benefitssome students realize from single-gender instruction andfacilities and to offer students and parents residing in thedistrict the option of a single-gender education.

(H) That, except as otherwise provided under division(B) ofthis section or section 3314.061 of the Revised Code, if the number of applicants exceeds the capacityrestrictions of division (F) of this section, studentsshall beadmitted by lot from all those submitting applications,exceptpreference shall be given to students attending theschool theprevious year and to students who reside in the district inwhichthe school is located. Preference may be given to siblings ofstudents attending the school the previous year.

Notwithstanding divisions (A)to (H) of thissection,in the event the racial composition of the enrollment ofthecommunity school is violative of a federal desegregationorder,thecommunity school shall take any and all correctivemeasures tocomply with the desegregation order.

Sec. 3314.061. A governing authority may establish a community school under this chapter that is limited to providing simultaneously special education and related services to a specified number of students identified as autistic and regular educational programs to a specified number of students who are not handicapped. The contract between the governing authority and the school's sponsor shall specify the target ratio of number of autistic students to number of nonhandicapped students in the school's population, the total number of autistic students that may be enrolled in the school, and the total number of nonhandicapped students that may be enrolled in the school. A school established in accordance with this section is subject to division (H) of section 3314.06 of the Revised Code, except that because the governing authority establishes a separate capacity for autistic students and nonhandicapped students, if the number of applicants among the group of autistic students or the group of nonhandicapped students exceeds the capacity restrictions for that group, students shall be admitted by lot from all those of that same group submitting applications. However, unless the total capacity established for the school has been filled, no student with any handicap shall be denied admission on the basis of that handicap.

Sec. 3314.074. Divisions (A) and (B) of this section applyonly to the extent permitted under Chapter 1702. of the RevisedCode.

(A) If any community school established under thischapterpermanently closes and ceases its operation as a communityschool,the assets of that school shall be distributed first totheretirementfunds of employees of the school, employees of theschool, and private creditors who are owedcompensation andthenany remaining funds shall be paid to thestate treasury tothecredit of the general revenue fund.

(B) If a community school closes and ceases to operate as acommunity school and the school has received computer hardware orsoftware from the former Ohio SchoolNet commission or the eTech Ohio commission, such hardware orsoftware shall be returned to the eTech Ohio commission, and the eTech Ohio commission shall redistribute the hardware and software, to the extent suchredistribution is possible, to school districts in conformancewith the provisions of the programs operated and administered bythe eTech Ohio commission.

(C) If the assets of the schoolare insufficient to pay allpersons or entities to whomcompensation is owed, theprioritization of the distribution ofthe assets to individualpersons or entities within each class ofpayees may be determinedby decree of a court in accordance withthis section and Chapter1702. of the Revised Code.

(1)"Base formula amount" means theamount specified as suchin a community school's financial plan for a schoolyear pursuantto division (A)(15) of section 3314.03 of theRevised Code.

(2)"Cost-of-doing-business factor" has the same meaning asin section3317.02 of the Revised Code.

(3)"IEP" means anindividualized education program asdefined in section 3323.01 ofthe Revised Code.

(4)"Applicablespecial education weight" means themultiplespecified in section 3317.013 ofthe Revised Code for a handicapdescribedin thatsection.

(a) For a student enrolled in vocational education programsorclasses described in division (A) of section 3317.014 of theRevised Code, themultiple specified in that division;

(b) For a student enrolled in vocational education programsorclasses described in division (B) of section 3317.014 of theRevised Code, themultiple specified in that division.

(6)"Entitled to attend school" means entitled to attendschoolin a district under section 3313.64 or 3313.65 of theRevisedCode.

(7)A community school studentis "included in the ~~DPIA~~poverty student count" of a school district ifthe student is entitled toattend school in the district and:

~~(a) For school years prior to fiscal year 2004,~~ thestudent's family receives assistance under the Ohio works firstprogram.

(b) For school years in and after fiscal year 2004, thestudent's family income does not exceed the federal povertyguidelines, as defined in section 5101.46 of the Revised Code, andthe student's family receives family assistance, as defined insection 3317.029 of the Revised Code.

(8) "~~DPIA~~ Poverty-based assistance reduction factor" means thepercentage figure,ifany, for reducing the per pupil amountof ~~disadvantaged pupilimpact aid~~poverty-based assistance a community school is entitled to receive pursuant todivisions (D)(5) and(6) of thissection in any year,asspecifiedin the school's financial plan for the year pursuant todivision(A)(15) of section 3314.03 of the Revised Code.

(9)"All-day kindergarten" has the same meaning as insection3317.029 of the Revised Code.

(10) "SF-3 payment" means the sum of the payments to a school district in a fiscal year under divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section 3317.022, divisions (J), (P), and (R) of section 3317.024, and sections 3317.029, ~~3317.0212, 3317.0213,~~ 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and 3317.053 of the Revised Code after making the adjustments required by sections 3313.981 and 3313.979, divisions (B), (C), (D), (E), (K), (L), ~~and~~ (M), (N), and (O) of section 3317.023, and division (C) of section 3317.20 of the Revised Code.

(B) The state board of education shall adopt rules requiringbothof the following:

(1) The board of education of each city, exempted village,and local school district to annually report the number ofstudents entitled to attend school in the district who areenrolled in gradesone throughtwelve in acommunity schoolestablished under this chapter, the number ofstudents entitled toattend school in the district who are enrolled inkindergarten ina community school,the number of thosekindergartners who areenrolled in all-day kindergarten in theircommunity school,andfor each child,thecommunity school in which the child isenrolled.

(2) The governing authority of each community schoolestablished under this chapter to annually report all of thefollowing:

(a) The number ofstudents enrolled in grades one throughtwelve and the numberofstudents enrolled in kindergarten in theschoolwho are not receiving special education andrelatedservices pursuant to an IEP;

(b) The number of enrolled students in grades one throughtwelve and the number of enrolled students inkindergarten,whoare receiving specialeducation and related servicespursuant toan IEP;

(c) The number of students reported under division(B)(2)(b)ofthis section receiving special education and related servicespursuant toan IEP for a handicap described in each of divisions(A)to (F)of section 3317.013 ofthe Revised Code;

(d)The full-time equivalent number of students reportedunder divisions(B)(2)(a) and (b) of this section who areenrolledin vocational education programs or classes described in each ofdivisions (A) and (B) of section 3317.014 of the Revised Code thatareprovided by the community school;

(e) Twenty per cent of the number of students reported underdivisions (B)(2)(a) and (b) of this section who are not reportedunder division (B)(2)(d) of this section but who are enrolled invocational education programs or classes described in each ofdivisions (A) and (B) of section 3317.014 of the Revised Code at ajoint vocational school district under a contract between thecommunity school and the joint vocational school district and areentitled to attend school in a city, local, or exempted villageschool district whose territory is part of the territory of thejoint vocational district;

(f) The number ofenrolled preschool handicapped studentsreceiving special educationservices in a state-funded unit;

(h) For each student, thecity, exempted village, orlocalschool district in which thestudent isentitled to attendschool;

(i) Any ~~DPIA~~ poverty-based assistance reduction factor that applies to aschoolyear.

(C) From the SF-3 payment made to a city, exempted village, orlocalschool district and,if necessary, from the payment made to the district undersections 321.24 and 323.156 of the Revised Code, thedepartment of educationshall annually subtract the sum of the amounts described in divisions (C)(1) to ~~(6)~~(9) of this section. However, when deducting payments on behalf of students enrolled in internet- or computer-based community schools, the department shall deduct only those amounts described in divisions (C)(1) and (2) of this section. Furthermore, the aggregate amount deducted under this division shall not exceed the sum of the district's SF-3 payment and its payment under sections 321.24 and 323.156 of the Revised Code.

(1) An amount equal to the sum of the amounts obtained when,for eachcommunity school where the district's students areenrolled, the number of thedistrict's students reported underdivisions(B)(2)(a), (b), and (e) of this section who areenrolled ingrades one through twelve, and one-half the number ofstudentsreported under those divisions who are enrolled inkindergarten,in that community schoolis multiplied bythe greater of the following:

(a) The fiscal year 2005 baseformula amountof that community schoolas adjusted by the schooldistrict's fiscal year 2005 cost-of-doing-business factor;

(b) The sum of (the current base formula amount of that community school times the school district's current cost-of-doing-business factor) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(2) Thesum of theamounts calculated under divisions(C)(2)(a)and(b) of thissection:

(a) For each of the district's students reported underdivision(B)(2)(c) of this section as enrolled in a communityschool ingrades one through twelve and receiving specialeducation and related servicespursuant to an IEP for a handicapdescribed in section 3317.013 ofthe Revised Code, the product ofthe applicable special education weighttimesthecommunityschool's base formulaamount;

(b) For each of the district's students reported underdivision (B)(2)(c) of this section as enrolled in kindergarteninacommunity school and receiving special education and relatedservicespursuant toan IEP for a handicap described in section3317.013 of theRevisedCode, one-half of the amount calculated asprescribed in division(C)(2)(a) of this section.

(3)For each of the district's students reported underdivision(B)(2)(d) of this section for whom payment is made underdivision (D)(4) of this section, the amount of that payment;

(4) An amount equal to the sum of the amounts obtained when,for eachcommunity school where the district's students areenrolled, the number of thedistrict's students enrolled in thatcommunity schoolwho are included in the district's ~~DPIA~~ poverty studentcountis multiplied by the per pupil amount of~~disadvantaged pupilimpact aid~~ poverty-based assistance the school district receives thatyear pursuanttodivision (B) or (C) of section 3317.029 oftheRevisedCode, asadjusted by any ~~DPIA~~ poverty-based assistance reduction factor of thatcommunityschool.Ifthe district receives~~disadvantaged pupilimpact aid~~ poverty-based assistance underdivision (B) of that section,the per pupilamount of that aid isthe quotient of the amount the districtreceived under thatdivision divided by thedistrict's ~~DPIA~~ poverty student count,as definedin that section. Ifthedistrict receives~~disadvantaged pupilimpact aid~~ poverty-based assistance under division(C) of section3317.029 of the RevisedCode, theper pupilamountof that aid ~~isthe per pupil dollaramount prescribed~~ for thedistrict in~~division~~ ~~(C)(1)~~ ~~or (2)~~ ~~ofthat section~~ shall be calculated by the department.

(5) An amount equal to the sum of the amounts obtainedwhen,foreach community school where the district's students areenrolled, thedistrict's per pupil amount of aid received underdivision (E) ofsection 3317.029 of the Revised Code, as adjustedby any~~DPIA~~poverty-based assistance reduction factor of the community school, ismultiplied by the sum of thefollowing:

(a) The number of the district's students reported underdivision(B)(2)(a) of this section who are enrolled in grades onetothree inthat community school and who are not receivingspecial education and relatedservices pursuant toan IEP;

(b) One-half of the district's students who are enrolled inall-day or any other kindergarten class in that community schooland who arenot receiving special education and relatedservicespursuant to an IEP;

(c) One-half of the district's students who are enrolled inall-day kindergarten in that community school and who are notreceivingspecial education and related services pursuant to anIEP.

The district's per pupil amount of aid under division (E) ofsection 3317.029 of the Revised Code is the quotient of theamountthe district received under that division divided by thedistrict'skindergarten through third grade ADM, as defined inthatsection.

(6) An amount equal to the sum of the amounts obtained when, for each community school where the district's students are enrolled, the district's per pupil amount received under division (F) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of that community school, is multiplied by the number of the district's students enrolled in the community school who are identified as limited-English proficient.

The district's per pupil amount under division (F) of section 3317.029 of the Revised Code is the amount calculated under division (F)(1) or (2) of that section, times a multiple of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(7) An amount equal to the sum of the amounts obtained when, for each community school where the district's students are enrolled, the district's per pupil amount received under division (G) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of that community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under division (G) of section 3317.029 of the Revised Code is the district's amount per teacher calculated under division (G)(1) or (2) of that section divided by 17, times a multiple of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(8) An amount equal to the sum of the amounts obtained when, for each community school where the district's students are enrolled, the district's per pupil amount received under divisions (H) and (I) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of that community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under divisions (H) and (I) of section 3317.029 of the Revised Code is the amount calculated under each division divided by the district's formula ADM, as defined in section 3317.02 of the Revised Code.

(9) An amount equal to the per pupil state parity aid funding calculated for the school district under either division (C) or (D) of section 3317.0217 of the Revised Code multiplied by the sum of the number of students in grades one through twelve, and one-half of the number of students in kindergarten, who are entitled to attend school in the district and are enrolled in a community school as reported under division (B)(1) of this section.

(D) The department shall annually pay to a community schoolestablished underthis chapter the sum of the amounts described in divisions (D)(1) to ~~(7)~~(10) of this section. However, the department shall calculate and pay to each internet- or computer-based community school only the amounts described in divisions (D)(1) to (3) of this section. Furthermore, the sum of the payments to all community schools under divisions (D)(1), (2), and (4)~~, (5), (6), and (7)~~ to (10) of this section for the students entitled to attend school in any particular school district shall not exceed the sum of that district's SF-3 payment and its payment under sections 321.24 and 323.156 of the Revised Code. If the sum of the payments calculated under those divisions for the students entitled to attend school in a particular school district exceeds the sum of that district's SF-3 payment and its payment under sections 321.24 and 323.156 of the Revised Code, the department shall calculate and apply a proration factor to the payments to all community schools under those divisions for the students entitled to attend school in that district.

(1) An Subject to section 3314.085 of the Revised Code, an amount equal to the sum of the amounts obtained whenthe number of students enrolled in grades one through twelve, plusone-half of the kindergarten students in the school,reportedunderdivisions (B)(2)(a), (b), and (e) ofthissection whoare notreceiving special education and related services pursuantto anIEP for a handicap described in section3317.013 of theRevisedCodeismultiplied by the greater of the following:

(a) The community school's fiscal year 2005 base formulaamount,asadjusted by the fiscal year 2005 cost-of-doing-business factor of theschooldistrict in which the student isentitled to attend school;

(b) The sum of (the community school's current base formula amount times the current cost-of-doing-business factor of the school district in which the student is entitled to attend school) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(2) ~~The~~ Prior to fiscal year 2007, the greater of the ~~following~~ amount calculated under division (D)(2)(a) or (b) of this section, and in fiscal year 2007 and thereafter, the amount calculated under division (D)(2)(b) of this section:

(a) The aggregate amount that the department paid to thecommunity school in fiscal year 1999 for students receivingspecial educationand related servicespursuant to IEPs, excludingfederal funds and statedisadvantagedpupil impact aid funds;

(b) The sum of the amounts calculated under divisions(D)(2)(b)(i) and (ii) ofthis section:

(i) Foreach student reported under division (B)(2)(c)ofthis section as enrolled in the school ingrades one throughtwelve and receiving special educationand related servicespursuant to an IEPfor a handicap described insection3317.013of theRevisedCode, the following amount:

the greater of (the community school's fiscal year 2005 base formula amount

is entitled to attend school) or [(the school's current base formula amount times the current cost-of-doing-business factor of the school district where the student is entitled to attend school) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code] +

(ii) For each student reported under division(B)(2)(c)ofthis section as enrolled in kindergarten and receiving specialeducation and related services pursuant to an IEP for ahandicapdescribed in section3317.013 of the RevisedCode, one-halfoftheamount calculated under the formula prescribed in division(D)(2)(b)(i) of this section.

(3) An amount received from federalfunds to provide specialeducation and related services to students in thecommunityschool, asdetermined by the superintendent ofpublic instruction.

(4)For each student reported under division (B)(2)(d)ofthis section as enrolled in vocational education programs orclasses thatare described in section 3317.014 of the RevisedCode, are provided by the community school,and are comparable asdetermined by the superintendent of public instruction toschooldistrict vocational education programs and classes eligible forstateweighted funding under section 3317.014 of the Revised Code,an amount equal to the applicablevocational education weighttimes the community school's base formula amounttimes thepercentage of time the student spends in the vocational educationprograms or classes.

(5) An amount equal to the sum of the amounts obtainedwhen,for eachschool district where the community school's students areentitled to attendschool,the number of that district's studentsenrolled in the communityschoolwho are included in thedistrict's ~~DPIA~~ poverty student count ismultiplied by the per pupilamount of ~~disadvantagedpupilimpactaid~~ poverty-based assistance that school districtreceives that year pursuant todivision(B) or (C) ofsection3317.029 of the Revised Code, asadjusted byany ~~DPIA~~ poverty-based assistance reductionfactor of the community school.Theper pupilamount ofaid shallbe determined as described indivision(C)(4) of thissection.

(6) An amount equal to the sum of the amounts obtainedwhen,foreach school district where the community school'sstudents areentitled to attend school, the district's per pupilamount of aidreceived under division (E) of section 3317.029 oftheRevisedCode, as adjusted by any ~~DPIA~~poverty-based assistance reduction factor of thecommunityschool, is multiplied by the sum of thefollowing:

(c) One-half of the district's students who are enrolled inall-day kindergarten in that community school and who are notreceivingspecial education and related services pursuant to anIEP.

The district's per pupil amount of aid under division (E) ofsection 3317.029 of the Revised Code shall be determined asdescribed in division (C)(5) of this section.

(7) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the number of that district's students enrolled in the community school who are identified as limited-English proficient is multiplied by the district's per pupil amount received under division (F) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of the community school.

The district's per pupil amount under division (F) of section 3317.029 of the Revised Code shall be determined as described in division (C)(6) of this section.

(8) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the district's per pupil amount received under division (G) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of the community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under division (G) of section 3317.029 of the Revised Code shall be determined as described in division (C)(7) of this section.

(9) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the district's per pupil amount received under divisions (H) and (I) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of the community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under divisions (H) and (I) of section 3317.029 of the Revised Code shall be determined as described in division (C)(8) of this section.

(10) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the district's per pupil amount of state parity aid funding calculated under either division (C) or (D) of section 3317.0217 of the Revised Code is multiplied by the sum of the number of that district's students enrolled in grades one through twelve, and one-half of the number of that district's students enrolled in kindergarten, in the community school as reported under division (B)(2)(a) and (b) of this section.

(E)(1) If a community school's costs for a fiscal year for astudentreceiving special education and related services pursuantto anIEP for a handicapdescribed indivisions (B) to(F) ofsection3317.013 of theRevisedCodeexceed the thresholdcatastrophic cost for serving the student as specified in division(C)(3)(b) of section 3317.022 of the Revised Code, the school maysubmitto thesuperintendent ofpublic instruction documentation,asprescribedby thesuperintendent, of all its costs for thatstudent. Uponsubmission of documentation for a student of thetype and in themanner prescribed, the department shall pay to thecommunityschool an amount equal to the school's costsfor thestudent inexcess ofthe threshold catastrophic costs.

(2) The community school shall only reportunder division(E)(1) of this section, and the departmentshallonly payfor, thecosts of educational expenses and therelatedservicesprovided tothe student in accordance with thestudent'sindividualizededucation program. Any legal fees, courtcosts, orother costsassociated with any cause of action relatingto thestudent maynot be included in the amount.

(F) A community school may apply to the department ofeducation forpreschool handicapped or gifted unit funding theschool would receive if it were a school district. Upon requestof itsgoverning authority, a community school that receivedunitfunding as a school district-operated school before it became acommunityschool shall retain any units awarded to it as a schooldistrict-operatedschool provided the school continues to meeteligibility standards for theunit.

A community school shall be considered a school districtandits governing authority shall be considered a board ofeducationfor the purpose of applying to any state or federalagency forgrants that a school district may receive underfederal or statelaw or any appropriations act of the generalassembly. Thegoverning authority of a community school may apply to anyprivateentity for additional funds.

(G) A board of education sponsoring a community school mayutilize local funds to make enhancement grants to the school ormay agree,either as part of the contract or separately, toprovide any specific servicesto the community school at no costto the school.

(H) A community school may not levy taxes or issue bondssecured by tax revenues.

(J)(1)(a) A community school may borrow money to pay anynecessaryand actualexpenses of the school in anticipation of thereceiptof any portion of thepayments to be received by theschoolpursuant to division (D) of thissection. The school mayissuenotes to evidence such borrowing. Theproceedsof the notes shall be used only for the purposes forwhich theanticipated receipts may be lawfully expended by theschool.

(b) A school may also borrow money for a term not toexceedfifteen years for the purpose of acquiring facilities.

(2) Except for any amount guaranteed under section 3318.50 ofthe Revised Code, the state is not liable for debt incurred by thegoverning authority of a community school.

(K) For purposes of determining thenumber of students forwhich divisions(D)(5) and(6) of this section applies inanyschool year, a community school may submit tothe departmentofjob and family services, nolater than the first day ofMarch,alist of the students enrolled in theschool. For each studentonthe list, the community school shall indicate thestudent'sname,address, and date of birth and the school district where thestudent is entitled to attend school. Upon receipt of a listunder thisdivision, the departmentofjob and family servicesshall determine,for each school district where one or morestudents on the list is entitledto attend school,thenumberofstudents residing in that school district who were included in thedepartment's reportunder section 3317.10 of the Revised Code.Thedepartment shall make thisdetermination on the basis ofinformation readily available to it. Uponmaking thisdeterminationand no later than ninety days after submission ofthe list by the communityschool, the department shall report tothe state department of education thenumber of students on thelist who reside in each schooldistrict who were included in thedepartment's reportunder section 3317.10 of the Revised Code. Incomplying with this division,the department of job and familyservices shall not reportto the state department ofeducation anypersonally identifiable information on any student.

(L) The departmentof education shall adjust the amountssubtracted and paid under divisions (C) and (D) of thissection toreflect any enrollment of students in community schools for lessthan the equivalent of a full school year. The state board ofeducation within ninetydays after April 8, 2003, shall adopt inaccordance with Chapter 119. of theRevised Code rules governingthe payments to community schoolsunder this section includinginitial payments in a school year andadjustments and reductionsmade in subsequent periodic payments tocommunity schools andcorresponding deductions from schooldistrict accounts as providedunder divisions (C) and (D) of thissection. Forpurposes of thissection:

(1) Astudent shall be considered enrolled in the communityschool for any portionof the school year the student isparticipating at a college underChapter 3365. of the RevisedCode.

(2) A student shall be considered to be enrolled in acommunity school during a school year for the period of time~~between~~ beginning on the later of the date on which the school both has receiveddocumentation of the student's enrollment from a parent and the student hascommenced participation in learning opportunities as defined inthe contract with the sponsor, or thirty days prior to the date on which the student is entered into the education management information system established under section 3301.0714 of the Revised Code. For purposes ofapplying thisdivision to a community school student, "learningopportunities"shall be defined in the contract, which shalldescribe bothclassroom-based and non-classroom-based learningopportunities andshall be in compliance with criteria anddocumentationrequirements for student participation which shallbe establishedby the department. Any student's instruction timeinnon-classroom-based learning opportunities shall be certifiedbyan employee of the community school. A student's enrollmentshallbe considered to cease on the date on which any of the followingoccur:

(a) The community school receives documentation from aparent terminating enrollment of the student.

(b) The community school is provided documentation of astudent's enrollment in another public or private school.

(c) The community school ceases to offer learningopportunities to the student pursuant to the terms of the contractwith the sponsor or the operation of any provision of thischapter.

(3) A student's percentage of full-time equivalency shallbe considered to be the percentage the hours of learningopportunity offered to that student is of nine hundred and twentyhours. However, no internet- or computer-based community school shall be credited for any time a student spends participating in learning opportunities beyond ten hours within any period of twenty-four consecutive hours.

(M) The department of education shall reduce the amountspaidunder division (D) of this section to reflect payments madetocolleges under division (B) of section 3365.07 of the RevisedCode.

(N)(1)No student shall be considered enrolled in anyinternet-or computer-based community school or, if applicable to the student, in any community school that is required to provide the student with a computer pursuant to division (C) of section 3314.22 of the Revised Code, unless both of the following conditions are satisfied:

(a) The studentpossesses orhas been provided with all required hardware andsoftwarematerials and all such materials are operational so that the student is capable of fully participating in the learning opportunities specified in the contract between the school and the school's sponsor as required by division (A)(23) of section 3314.03 of the Revised Code;

(b) Theschool is in compliance with division (A)(1) or (2) of section~~3314.032~~ 3314.22 of the Revised Code, relative to such student.

(2) Inaccordance with policies adopted jointly by thesuperintendentofpublic instructionand the auditor of state,thedepartmentshallreduce the amounts otherwise payableunderdivision (D) ofthissection to any~~internet- orcomputer-based~~communityschool thatincludes in its program theprovision ofcomputerhardware andsoftware materials to ~~each~~any student, if suchhardwareand softwarematerials have not beendelivered,installed, andactivated for~~all students~~ each such student in a timely manner orother educationalmaterials orservices have not been providedaccording to thecontract betweenthe individual community schooland its sponsor.

The superintendent of public instructionand the auditor ofstate shall jointlyestablish a method for auditing any communityschool to which thisdivision pertains to ensure compliance withthis section.

The superintendent, auditor of state, and the governor shalljointlymake recommendations to the general assembly forlegislativechanges that may be required to assure fiscal andacademicaccountability for such~~internet- orcomputer-based~~schools.

(O)(1) If the department determines that a review of acommunity school's enrollment is necessary, such review shall becompleted and written notice of the findings shall be provided tothe governing authority of the community school and its sponsorwithin ninety days of the end of the community school's fiscalyear, unless extended for a period not to exceed thirty additionaldays for one of the following reasons:

(b) Delays in data submission caused by either a communityschool or its sponsor.

(2) If the review results in a finding that additionalfunding is owed to the school, such payment shall be made withinthirty days of the written notice. If the review results in afinding that the community school owes moneys to the state, thefollowing procedure shall apply:

(a) Within ten business days of the receipt of the notice offindings, the community school may appeal the department'sdetermination to the state board of education or its designee.

(b) The board or its designee shall conduct an informalhearing on the matter within thirty days of receipt of such anappeal and shall issue a decision within fifteen days of theconclusion of the hearing.

(c) If the board has enlisted a designee to conduct thehearing, the designee shall certify its decision to the board.Theboard may accept the decision of the designee or may rejectthedecision of the designee and issue its own decision on thematter.

(3) If it is decided that the community school owes moneysto the state, the department shall deduct such amount from theschool's future payments in accordance with guidelines issued bythe superintendent of public instruction.

(1) "Formula ADM" has the same meaning as in section 3317.03 of the Revised Code.

(3) "School district of residence" has the same meaning as in section 3323.01 of the Revised Code; however, a community school established under this chapter is not a "school district of residence" for purposes of this section.

(B) Notwithstanding anything to the contrary in section 3314.08 or 3317.03 of the Revised Code, all of the following apply in the case of a child who is enrolled in a community school and is also living in a home:

(1) For purposes of the report required under division (B)(1) of section 3314.08 of the Revised Code, the child's school district of residence, and not the school district in which the home that the child is living in is located, shall be considered to be the school district in which the child is entitled to attend school. That school district of residence, therefore, shall make the report required under division (B)(1) of section 3314.08 of the Revised Code with respect to the child.

(2) For purposes of the report required under division (B)(2) of section 3314.08 of the Revised Code, the community school shall report the name of the child's school district of residence.

(3) The child's school district of residence shall count the child in that district's formula ADM.

(4) The school district in which the home that the child is living in is located shall not count the child in that district's formula ADM.

(5) The Department of Education shall deduct the applicable amounts prescribed under division (C) of section 3314.08 and division (D) of section 3314.13 of the Revised Code from the child's school district of residence and shall not deduct those amounts from the school district in which the home that the child is living in is located.

(6) The Department shall make the payments prescribed in divisions (D) and (E) of section 3314.08 and section 3314.13 of the Revised Code, as applicable, to the community school.

Sec. 3314.085. (A) In each fiscal year beginning in fiscal year 2007, each internet- or computer-based community school shall spend for pupil instruction at least the amount per pupil designated in division (B)(1) of section 3317.012 of the Revised Code as the amount for base classroom teachers. For this purpose, expenditures for pupil instruction include expenditures for teachers, curriculum, academic materials other than computers, and any other instructional purposes designated in the rules adopted under this section. Expenditures to provide the computer hardware and filtering software required by sections 3314.21 and 3314.22 of the Revised Code do not qualify as pupil instruction for purposes of this section.

(B) Beginning in fiscal year 2007, each internet- or computer-based community school annually shall report data to the department of education concerning its expenditures for pupil instruction. Each school shall report the data in the form and manner required by the department.

(C) If the department determines, after offering the school an opportunity for a hearing in accordance with Chapter 119. of the Revised Code, that an internet- or computer-based community school has failed in any fiscal year to comply with division (A) or (B) of this section, the department shall assess a fine against the school equivalent to the greater of the following:

(1) Five per cent of the total state payments to the school under this chapter for the fiscal year in which the failure occurred;

(2) The difference between the amount the department determines the school was required to have spent for pupil instruction and the amount the department determines the school actually spent for pupil instruction.

The department's methods of collecting the fine may include withholding state payments under this chapter in the current or subsequent fiscal year.

The department may cancel a fine it has imposed under this section if the school submits a plan for coming into compliance with the requirements of this section that the department approves, and the school demonstrates to the department's satisfaction that it is implementing the plan.

(D) The superintendent of public instruction shall adopt rules in accordance with Chapter 119. of the Revised Code specifying expenditures that qualify as expenditures for pupil instruction for purposes of this section.

Sec. 3314.12. On or before the first day of November each year, the sponsor of each community school established under this chapter shall submit to the department of education, in accordance with guidelines adopted by the department for purposes of this section, a report that describes the special education and related services provided by that school to enrolled students during the previous fiscal year and the school's expenditures for those services.

(1)"All-day kindergarten"has the same meaning as insection3317.029 oftheRevised Code.

(2)"Formula amount" has the same meaning as in section3317.02 of the Revised Code.

(B) ~~The~~ Except as provided in division (C) of this section, the department of education annually shall pay eachcommunity schoolestablished under this chapter one-half of theformulaamount for each student to whom both of the followingapply:

(1) The student is entitled to attend school under section3313.64 or3313.65 of the Revised Code in a school district thatiseligible to receive a payment under division (D) of section3317.029of the Revised Code if it provides all-day kindergarten;

(2) The student is reported by the community school as enrolledinall-daykindergarten at the community school.

(D) If a student for whom paymentis made under division (B)of this section is entitled toattend school in a district thatreceives any paymentfor all-day kindergarten under division (D)of section 3317.029 of theRevised Code, the department shalldeduct the payment to the community school under this sectionfromthe amount paid that school district under that division. If thatschool district does not receive payment for all-daykindergartenunder that division because it does not provide all-daykindergarten, the department shall pay the community school fromstatefunds appropriated generally for ~~disadvantaged pupil impactaid~~ poverty-based assistance to school districts.

~~(D)~~(E) The department shalladjust the amounts deducted fromschool districts and paid tocommunity schools under this sectionto reflect any enrollmentsof students in all-day kindergarten incommunity schools forless than the equivalent of a full schoolyear.

(1) "Harmful to juveniles" has the same meaning as insection 2907.01 of the Revised Code.

(2) "Obscene" has the same meaning as in division (F) ofsection 2907.01 of the Revised Code as that division has beenconstrued by the supreme court of this state.

(3) "Teacher of record" means a teacher who is responsible for the overall academic development and achievement of a student and not merely the student's instruction in any single subject.

(B)(1)It is the intent of the general assembly that teachersemployed by internet- or computer-based community schools conductvisits with their students in person throughout the school year .

(2) Each internet- or computer-based community school shall retain an affiliation with at least one full-time teacher of record licensed in accordance with division (A)(10) of section 3314.03 of the Revised Code.

(3) Each student enrolled in an internet- or computer-based community school shall be assigned to at least one teacher of record. No teacher of record shall be primarily responsible for the academic development and achievement of more than one hundred twenty-five students enrolled in the internet- or computer-based community school that has retained that teacher.

(C) For any internet- or computer-based community school,thecontract between the sponsor and the governing authority oftheschool described in section 3314.03 of the Revised Code shallspecify each of the following:

(1) A requirement that the school use a filtering device orinstall filtering softwarethat protects against internet accessto materials that areobscene or harmful to juveniles on eachcomputer provided tostudents for instructional use. The schoolshall provide suchdevice or software at no cost to any studentwho works primarily from thestudent's residence on a computerobtained from a source otherthan the school.

(2) A plan for fulfilling the intent of the general assembly specified in division (B)(1) of this section. The plan shallindicate the number of times teachers will visit each studentthroughout the school year and the manner in which those visitswill be conducted.

(3) That the school will set up a central base of operationand the sponsor will maintain a representative within fifty milesof that base of operation to provide monitoring and assistance.

Sec. ~~3314.032~~ 3314.22. (A)(1) Each child enrolled in an internet- orcomputer-based community school is entitled to a computer suppliedby the school. In no case shall an internet- or computer-based community school provide a stipend or other substitute to an enrolled child or the child's parent in lieu of supplying a computer to the child. The prohibition contained in the preceding sentence is intended to clarify the meaning of this division as it existed prior to the effective date of this amendment and is not intended to change that meaning in any way.

(2) Notwithstanding division (A)(1) of this section, ifmorethan one child living in a single ~~household~~ residence is enrolled in aninternet- or computer-based community school, at the option of theparent of those children, the school may supply less than onecomputer per child, as long as at least one computer is suppliedto the ~~household~~ residence. The parent may amend the decision to acceptless than one computer per child anytime during the school year,and, in such case, within thirty days after the parent notifiesthe school of such amendment, the school shall provide anyadditiona1 computers requested by the parent up to the numbernecessary to comply with division (A)(1) of this section.

(B) Each internet- or computer-based community school shallprovide to each parent who is considering enrolling the parent'schild in the school and to the parent of each child alreadyenrolled in the school a written notice of the provisionsprescribed in divisions (A)(1) and (2) of this section.

(C) If a community school that is not an internet- or computer-based community school provides any of its enrolled students with nonclassroom-based learning opportunities provided via an internet- or other computer-based instructional method and requires such students to participate in any of those learning opportunities from their residences, the school shall be subject to this section and division (C)(1) of section 3314.21 of the Revised Code relative to each such student in the same manner as an internet- or computer-based community school, unless both of the following conditions apply to the student:

(1) The nonclassroom-based learning opportunities in which the student is required to participate from the student's residence are supplemental in nature or do not constitute a significant portion of the total classroom-based and nonclassroom-based learning opportunities provided to the student by the school;

(2) The student's residence is equipped with a computer available for the student's use.

Sec. ~~3314.034~~ 3314.24. (A) On or after July 1, 2004, no internet- or computer-based community school shall enter into a contract with a nonpublic school to use or rent any facility space at the nonpublic school for the provision of instructional services to students enrolled in the internet- or computer-based community school.

(B) If, on or after July 1, 2004, an internet- or computer-based community school has a contract with a nonpublic school as described in division (A) of this section, the department of education shall not make any payments under section 3314.08 of the Revised Code to the internet- or computer-based community school for any student who is enrolled in the internet- or computer-based community school and receives any instructional services from the internet- or computer-based community school at the nonpublic school.

Sec. 3314.25. Each internet- or computer-based community school shall provide its students a location within a fifty-mile radius of the student's residence at which to complete the statewide achievement tests and diagnostic assessments prescribed under sections 3301.079 and 3301.0710 of the Revised Code.

Sec. 3314.26. (A) Each internet- or computer-based community school shall withdraw from the school any student who, for two consecutive school years, has failed to participate in the spring administration of any test prescribed under section 3301.0710 or 3301.0712 of the Revised Code for the student's grade level and was not excused from the test pursuant to division (C)(1) or (3) of section 3301.0711 of the Revised Code. The school shall report any such student's data verification code, as assigned pursuant to section 3301.0714 of the Revised Code, to the department of education. The department shall maintain a list of all data verification codes reported under this division and section 3313.6410 of the Revised Code and provide that list to each internet- or computer-based community school and to each school to which section 3313.6410 of the Revised Code applies.

(B) No internet- or computer-based community school shall receive any state funds under this chapter for any enrolled student whose data verification code appears on the list maintained by the department under division (A) of this section.

Notwithstanding any provision of the Revied Code to the contrary, the parent of any such student shall pay tuition to the internet- or computer-based community school in an amount equal to the state funds the school otherwise would receive for that student, as determined by the department. An internet- or computer-based community school may withdraw any student for whom the parent does not pay tution as required by this division.

Sec. 3314.27. No student enrolled in an internet- or computer-based community school may participate in more than ten hours of learning opportunities in any period of twenty-four consecutive hours. Any time such a student participates in learning opportunities beyond the limit prescribed in this section shall not count toward the annual minimum number of hours required to be provided to that student as prescribed in division (A)(11)(a) of section 3314.03 of the Revised Code. If any internet- or computer-based community school requires its students to participate in learning opportunities on the basis of days rather than hours, one day shall consist of a minimum of five hours of such participation.

Sec. 3314.28. (A) Each internet- or computer-based community school established under this chapter shall submit to the school's sponsor a plan for providing special education and related services to disabled students enrolled in the school in accordance with division (A)(1) or (2) of this section.

(1) If the school was established prior to the effective date of this section, the plan shall be submitted to the sponsor on or before September 1, 2005, and on or before the first day of September in each year thereafter that the school is in operation.

(2) If the school is established after the effective date of this section, the plan shall be submitted to the sponsor prior to the school's receipt of its first payment under this chapter and on or before the first day of September in each year thereafter that the school is in operation.

(B) Within thirty days after receiving the plan prescribed in division (A) of this section, the sponsor of each internet- or computer-based community school shall certify all of the following to the department of education:

(2) If the plan received is not satisfactory to the sponsor, the sponsor's assurance that it will promptly assist the school in developing a plan that is satisfactory to the sponsor;

(3) The sponsor's assurance that it will monitor the implementation of the plan;

(4) The sponsor's assurance that it will take any necessary corrective action to ensure that the school's plan is properly and fully implemented.

Sec. 3314.35. (A) This section applies to any community school established under this chapter that meets one or more of the following criteria:

(1) The school is declared to be in need of continuous improvement, under an academic watch, or in a state of academic emergency pursuant to section 3302.03 of the Revised Code.

(3) The school does not offer any grade level for which an achievement test is prescribed under section 3301.0710 of the Revised Code or the number of students enrolled in each grade level offered by the school for which an achievement test is prescribed is too small to yield statistically reliable data about student performance, as determined by the department of education.

(B) Beginning in the 2006-2007 school year, each community school to which this section applies shall administer a reading and mathematics assessment approved by the department in the fall and spring of the school year to each student who is enrolled in any of grades one through twelve to measure the academic progress made by students during the school year. For each grade level, the community school shall administer the same assessment in the spring that the school administers in the fall.

(C) Each community school that administers the assessments required by division (B) of this section shall be responsible for all costs associated with the administration and scoring of the assessments. Each community school shall report the scores of all students taking the assessments to the department in a manner prescribed by the department.

(D) The department shall establish a list of nationally normed assessments in reading and mathematics that it approves for use by community schools under this section. The department may approve assessments in other subject areas, but no community school shall be required to administer an assessment in a subject area other than reading or mathematics under this section.

(E) The sponsor of any community school to which this section does not apply may elect to have the school administer reading and mathematics assessments in accordance with this section.

Sec. 3314.36. (A) Not later than July 1, 2006, the state board of education shall adopt rules establishing reasonable standards for expected gains in student achievement between the fall and spring administrations of the reading and mathematics assessments administered under section 3314.35 of the Revised Code and for expected gains in the graduation rate.

(B) Any community school that is declared to be under an academic watch or in a state of academic emergency pursuant to section 3302.03 of the Revised Code after July 1, 2006, or to which division (A)(3) of section 3314.35 of the Revised Code applies shall be subject to division (C) of this section beginning the next school year if either of the following apply to the school:

(1) The percentage of the school's total student population showing the expected gains in student achievement established under division (A) of this section on the reading or mathematics assessments administered most recently under section 3314.35 of the Revised Code is less than fifty-five per cent.

(2) The school offers a high school diploma but is not showing the expected gains in the graduation rate established under division (A) of this section.

A community school that has been in operation for one school year shall not be subject to division (C) of this section.

(C)(1) In the first school year that a community school is subject to division (C) of this section, if the school is an internet- or computer-based community school, the school shall not enroll any students in excess of the number of students the school enrolled at the conclusion of the preceding school year.

(2) In the second consecutive school year that a community school is subject to division (C) of this section, if the school is an internet- or computer-based community school, the school shall do both of the following:

(b) Withdraw from the school at the conclusion of the school year any student for whom any of the following conditions apply, unless the student's parent agrees to pay tuition to the school in an amount equal to the state funds the school otherwise would receive for that student as determined by the department of education:

(i) For two consecutive school years, the student has taken the reading and mathematics assessments administered under section 3314.35 of the Revised Code but has failed to show the expected gains in student achievement established under division (A) of this section for both reading and mathematics.

(ii) For two consecutive school years, the student has not taken one or more of the reading and mathematics assessments described in division (C)(2)(b)(i) of this section.

(iii) For one of two consecutive school years, the student took the reading and mathematics assessments described in division (C)(2)(b)(i) of this section but failed to show the expected gains in student achievement also described in that division for both reading and mathematics, and, for the other school year, the student did not take one or more of those assessments.

After the conclusion of the school year, the school shall not receive state funds for any student who is required to be withdrawn or for whom tuition is owed under division (C)(2)(b) of this section.

(3) In the third consecutive school year that any community school is subject to division (C) of this section, the following shall apply:

(a) If the school is an internet- or computer-based community school, the school shall continue to comply with division (C)(1)(a) of this section.

(b) The school shall be permanently closed at the conclusion of the school year.

(D) The sponsor of any community school that is declared to be in need of continuous improvement, effective, or excellent pursuant to section 3302.03 of the Revised Code and offers one or more grade levels for which an achievement test is prescribed under section 3301.0710 of the Revised Code may elect to evaluate the performance of the school in accordance with division (B) of this section, provided the school administers reading and mathematics assessments under section 3314.35 of the Revised Code. If the sponsor so elects, the evaluation method shall be used for a minimum of three school years and shall be specified in the contract required by section 3314.03 of the Revised Code. Nothing in this division requires the sponsor of a community school that elects to evaluate the school in accordance with division (B) of this section to take any action specified in division (C) of this section, unless the contract requires such action.

(E) In calculating the gains in student achievement demonstrated by a community school for the purposes of division (B) of this section, the department shall include the scores of all students who participated in the fall and spring administrations of the assessments administered under section 3314.35 of the Revised Code. If the school's participation rate for any grade level is less than ninety per cent, the department shall calculate the gains in academic achievement demonstrated by the students in that grade level as if the participation rate was ninety per cent by assuming a score of zero for each student that it is necessary to add to the participation rate to make that rate equal ninety per cent.

Sec. 3315.17. (A) Theboard of education of each city,exempted village, local, andjoint vocational school districtshall establish a textbook andinstructional materials fund. Eachboard annuallyshall deposit into that fund an amount derivedfrom revenues received bythe district foroperating expensesthatis equal to three per cent of the formula amountfor the precedingfiscal year, as defined in section 3317.02 of the Revised Code, oranotherpercentage if established by the auditor of state underdivision (C)of this section, multiplied bythe district's studentpopulation for the preceding fiscal year. Money in the fund shallbe used solely fortextbooks, instructional software, andinstructional materials,supplies, and equipment. Any money inthe fund that is not usedin any fiscal year shall carry forwardto the next fiscalyear.

(B)(1) Notwithstanding division (A) of this section, if in afiscal yeara district board deposits in the textbook andinstructionalmaterials fund an amount of money greater than theamount requiredto be deposited by this section or the rulesadopted underdivision (C) of this section, the board may deductthe excessamount of money from the amount of money required to bedeposited insucceeding fiscal years.

(2) Notwithstanding division (A) of this section, in any year a district is in fiscal emergency status as declared pursuant to section 3316.03 of the Revised Code, the district may deposit an amount less than required by division (A) of this section, or make no deposit, into the district textbook and instructional materials fund for that year.

(3) Notwithstanding division (A) of this section, in any fiscal year that a school district is either in fiscal watch status, as declared pursuant to section 3316.03 of the Revised Code, or in fiscal caution status, as declared pursuant to section 3316.031 of the Revised Code, the district may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district textbook and instructional materials fund for that year. The superintendent may grant a waiver under division (B)(3) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will create an undue financial hardship on the district.

(4) Notwithstanding division (A) of this section, not more often than one fiscal year in every three consecutive fiscal years, any school district that does not satisfy the conditions for the exemption described in division (B)(2) of this section or the conditions to apply for the waiver described in division (B)(3) of this section may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district textbook and instructional materials fund for that year. The superintendent may grant a waiver under division (B)(4) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will necessitate the reduction or elimination of a program currently offered by the district that is critical to the academic success of students of the district and that no reasonable alternatives exist for spending reductions in other areas of operation within the district that negate the necessity of the reduction or elimination of that program.

(C) The statesuperintendent of public instruction and theauditor of statejointly shall adopt rules in accordance withChapter 119. of theRevised Code defining what constitutestextbooks, instructional software, and instructional materials,supplies, and equipment for which money in a school district'stextbook and instructional materials fund may be used. Theauditor of state also may designate apercentage, otherthanthreeper cent, of the formula amount multiplied by thedistrict'sstudent population thatmust bedeposited into thefund.

(D) Notwithstandingdivision (A) of this section, adistrictboard of education in any fiscal year may appropriatemoney in thedistrict textbook and instructional materials fundfor purposesother than those permitted by that division if bothof thefollowing occur during that fiscal year:

(1) All of the following certify to the district board inwritingthat the district has sufficient textbooks, instructionalsoftware, and instructional materials, supplies, and equipmenttoensure a thorough and efficient education within thedistrict:

(b) In districts required to have a business advisorycouncil, aperson designated by vote of the business advisorycouncil;

(c) If the district teachers are represented by anexclusivebargaining representative for purposes ofChapter 4117. of theRevisedCode, the president of thatorganization or thepresident's designee.

(2) The district board adopts, by unanimous vote of allmembers of the board, a resolution stating that the district hassufficient textbooks, instructional software, and instructionalmaterials, supplies, and equipment to ensure a thorough andefficient education within the district.

(E) Notwithstanding any provision to the contrary inChapter4117. of the Revised Code, the requirements of this sectionprevailover anyconflicting provisions of agreements betweenemployee organizations and publicemployers entered into on orafterNovember 21, 1997.

(F) As used in this section and in section 3315.18 of theRevised Code,"studentpopulation" means the average, daily,full-time-equivalent number of studentsin kindergartenthroughtwelfth gradereceiving any educational services from the schooldistrict during the firstfull school week in October, excludingstudents enrolled in adulteducation classes, but including all ofthe following:

(1) Adjacent or other district students enrolled in thedistrictunder an open enrollment policy pursuant to section3313.98 of theRevised Code;

(2) Students receiving services in the district pursuant toacompact, cooperative education agreement, or a contract, but whoareentitled to attend school in another district pursuant tosection3313.64 or 3313.65 of the Revised Code;

(3) Students for whom tuition is payable pursuant tosections3317.081 and 3323.141 of the Revised Code.

The department of education shall determine a district'sstudent populationusing data reported to it under section 3317.03of the Revised Code for the applicable fiscalyear.

Sec. 3315.18. (A) The board of education of each city,exempted village, local, and joint vocational school districtshall establish a capital and maintenance fund. Eachboardannually shall depositinto that fund an amount derived fromrevenues received by the districtthat would otherwisehave beendeposited in the general fundthat is equal to three per cent ofthe formula amountfor the preceding fiscal year, as defined insection 3317.02 of the Revised Code, or anotherpercentage ifestablished by the auditor of state under division (B)of thissection, multiplied bythe district's student population for thepreceding fiscal year,except that moneyreceived from a permanentimprovement levy authorized by section5705.21 of the Revised Codemay replace general revenue moneys inmeeting the requirements ofthis section. Money in the fundshall be used solely foracquisition, replacement, enhancement, maintenance,or repair ofpermanent improvements, as that term is defined insection 5705.01of the Revised Code. Any money in the fund thatis not used inany fiscal year shall carry forward to the nextfiscal year.

(B) The state superintendent of public instruction andtheauditor of state jointly shall adopt rules in accordancewithChapter 119. of the Revised Code defining what constitutesexpenditures permitted by division (A) of this section. Theauditor of state maydesignate a percentage, other than three percent, of the formula amount multiplied by the district'sstudentpopulation that must be deposited into the fund.

(C) Within its capital and maintenance fund, a schooldistrict boardof education may establish a separate accountsolely for thepurpose of depositing funds transferred from thedistrict'sreserve balance account established under formerdivision (H) ofsection 5705.29 of the Revised Code. After~~theeffectivedate of this amendment~~April 10, 2001, a board may deposit all or partof the funds formerlyincluded in such reserve balance account inthe separate account establishedunder this section. Fundsdeposited in this separate account and interest onsuchfundsshall be utilized solely for the purpose of providing thedistrict's portion of the basic project costs of any projectundertaken in accordance with Chapter 3318. of the RevisedCode.

(D) (1) Notwithstanding division (A) of this section, in any year a district is in fiscal emergency status as declared pursuant to section 3316.03 of the Revised Code, the district may deposit an amount less than required by division (A) of this section, or make no deposit, into the district capital and maintenance fund for that year.

(2) Notwithstanding division (A) of this section, in any fiscal year that a school district is either in fiscal watch status, as declared pursuant to section 3316.03 of the Revised Code, or in fiscal caution status, as declared pursuant to section 3316.031 of the Revised Code, the district may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district capital and maintenance fund for that year. The superintendent may grant a waiver under division (D)(2) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will create an undue financial hardship on the district.

(3) Notwithstanding division (A) of this section, not more often than one fiscal year in every three consecutive fiscal years, any school district that does not satisfy the conditions for the exemption described in division (D)(1) of this section or the conditions to apply for the waiver described in division (D)(2) of this section may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district capital and maintenance fund for that year. The superintendent may grant a waiver under division (D)(3) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will necessitate the reduction or elimination of a program currently offered by the district that is critical to the academic success of students of the district and that no reasonable alternatives exist for spending reductions in other areas of operation within the district that negate the necessity of the reduction or elimination of that program.

(E) Notwithstanding any provision to the contrary inChapter4117. of the Revised Code, the requirements of this sectionprevailover any conflicting provisions of agreements betweenemployee organizationsand public employers entered into afterNovember 21, 1997.

Sec. 3315.37. The board of education of a school districtmay establish a teacher education loan program and may expendschool funds for the program. The program shall be for thepurpose of making loans to students who are residents of theschool district or graduates of schools in the school district,who are enrolled in teacher preparation programs at institutionsapproved by the state board pursuant to section 3319.23 of theRevised Code, and who indicate an intent to teach in the schooldistrict providing the loan. The district board may forgive theobligation to repay any or all of the principal and interest onthe loan if the borrower teaches in that school district.

The district board shall adopt rules establishingeligibility criteria, application procedures, procedures forreview of applications, loan amounts, interest, repaymentschedules, conditions under which principal and interestobligations incurred under the program will be forgiven, and anyother matter incidental to the operation of the program.

The board may contract with a private, nonprofitfoundation, one or more institutions of higher education, orother educational agencies to administer the program.

The receipt of a loan under this section does not affect astudent's eligibility for assistance, or the amount of suchassistance, granted under section 3315.33, 3333.12, 3333.122, 3333.22,3333.26, 3333.27, 5910.04, or 5919.34 of the Revised Code, butthe board's rules may provide for taking such assistance intoconsideration when determining a student's eligibility for a loanunder this section.

Sec. 3316.043. Upon the approval by the superintendent of public instruction of an initial financial plan under section 3316.04 of the Revised Code or a financial recovery plan under section 3316.06 of the Revised Code, the board of education of the school district for which the plan was approved shall revise the district's five-year projection of revenues and expenditures in accordance with rules adopted under section 5705.391 of the Revised Code so that the five-year projection is consistent with the financial plan or financial recovery plan. In the case of a school district declared to be in a state of fiscal emergency, the five-year projection shall be revised by the financial planning and supervision commission for that district.

Sec. 3316.06. (A) Within one hundred twenty days after thefirst meeting of a school district financial planning andsupervisioncommission, the commission shall adopt a financialrecovery plan regarding theschool district for which thecommission was created. During the formulationof the plan, thecommission shall seek appropriate input from the schooldistrictboard and from the community. This plan shall contain thefollowing:

(a) Eliminate all fiscal emergency conditions declaredtoexist pursuant to division (B) of section 3316.03 of the RevisedCode;

(b) Satisfy any judgments, past-due accounts payable, andall past-due and payable payroll and fringe benefits;

(c) Eliminate the deficits in all deficit funds, except that any prior year deficits in the textbook and instructional materials fund established pursuant to section 3315.17 of the Revised Code and the capital and maintenance fund established pursuant to section 3315.18 of the Revised Code shall be forgiven;

(d) Restore to special funds any moneys from such funds thatwereused for purposes not within thepurposes of such funds, orborrowed from such fundsby the purchase of debt obligations ofthe school district with themoneys of such funds, or missing fromthe special funds and not accounted for,if any;

(e) Balance the budget, avoid future deficits in anyfunds,and maintain on a current basis payments of payroll, fringebenefits,and all accounts;

(g) Restore the ability of the school district to marketlong-term general obligation bonds under provisions of lawapplicable to school districts generally.

(2) The management structure that will enable the schooldistrict totake the actions enumerated in division (A)(1) of thissection. The plan shall specify the level of fiscal andmanagement controlthat the commission will exercise within theschool district during the periodof fiscal emergency, and shallenumerate respectively, the powers and dutiesof the commissionand the powers and duties of the school board during thatperiod.The commission may elect to assume any of the powers and duties ofthe school board it considers necessary, including all powersrelated topersonnel, curriculum, and legal issues in order tosuccessfully implement theactions described in division (A)(1) ofthis section.

(3) The target dates for the commencement, progressupon,and completion of the actions enumerated indivision (A)(1) ofthis section and a reasonable period of timeexpected to berequired to implement the plan. The commission shall prepare areasonable time schedule for progress toward andachievement ofthe requirements for the plan, and theplan shall be consistentwith that time schedule.

(4) The amount and purpose of any issue of debtobligationsthat will be issued, together with assurances thatany such debtobligations that will be issued will not exceeddebt limitssupported by appropriate certifications by the fiscalofficer ofthe school district and the county auditor. Debt obligationsissued pursuant to section 133.301 of the Revised Code shallincludeassurances that such debt shall be in an amount not toexceed the amountcertified under division (B) of such section.Ifthecommissionconsiders itnecessary in order to maintain orimprove educational opportunities of pupilsin the schooldistrict, the plan may include a proposal to restructure orrefinance outstanding debt obligations incurred by the board undersection3313.483 of the Revised Code contingent uponthe approval,during the period of the fiscal emergency, by district voters ofatax levied under section 718.09, 718.10, 5705.194, 5705.21,5748.02, or5748.08 ofthe Revised Code, that is not a renewal orreplacement levy and thatwill provide new operating revenue.Notwithstanding any provision ofChapter 133.or sections 3313.483to 3313.4811 of the Revised Code,following therequired approvalof the district voters and with the approval of thecommission,the school district may issue securities to evidence therestructuring or refinancing. Those securities may extend theoriginal period for repayment, not to exceed ten years, andmayalterthe frequency and amount of repayments, interest or otherfinancing charges, and other terms of agreements under which thedebtoriginally was contracted, at the discretion of thecommission, provided thatany loans received pursuant to section3313.483 of the Revised Code shall bepaid from funds the districtwould otherwise receive under sections 3317.022to 3317.025 of theRevised Code, as required under division (E)(3) of section3313.483 of the Revised Code. The securities issued for thepurpose ofrestructuring or refinancing the debt shall be repaidin equal payments and atequal intervals over the term of the debtand are not eligible to be includedin any subsequent proposal forthe purpose of restructuring or refinancingdebt under thissection.

(B) Any financial recovery plan may be amended subsequent toitsadoption. Each financial recovery plan shall be updatedannually.

(C) Each school district financial planning and supervisioncommission shall submit the financial recovery plan it adopts orupdates underthis section to the statesuperintendent of publicinstruction for approval immediatelyfollowing its adoption orupdating. The state superintendentshall evaluate the plan andeither approve or disapprove it withinthirty calendar days fromthe date of its submission. If theplan is disapproved, the statesuperintendent shall recommendmodifications that will render itacceptable. No financialplanning and supervision commissionshall implement a financialrecovery plan that is adopted orupdated on or after~~the effectivedate of this amendment~~April 10, 2001, unlessthe state superintendent hasapproved it.

Sec. 3316.16. (A) A school district financial planning andsupervision commission, with respect to its functionsunder this chapter, shall continue in existence until such timeas a determination is made under division (B) of thissection that all of the following have occurred:

(1) An effective financial accounting andreporting system in accordance with section 3316.10 of the Revised Codeis in the process of being implemented, and it is reasonably expected thatthis implementation will be completed within two years.

(2) All of the fiscal emergency conditions determined pursuant to division(B) of section 3316.03 of the Revised Code have been corrected or eliminated,and no new fiscal emergency conditions have occurred.

(3) The objectives of the financial recovery plan described insection 3316.06 of the Revised Code are being met.

(4) The school district board has prepared a financial forecast for afive-year period in accordance with the standards issued by theauditor of state and an opinion has been rendered by the auditor of state thatthe financial forecast is considered to be nonadverse. The forecast shall display the district's projected compliance with sections 3315.17 and 3315.18 of the Revised Code beginning in the year the commission is proposed for termination.

(B) The determination that all conditions listed in division(A) of this section for thetermination of the existence of the commission and its functionsexist may be made either by the auditor of state or by thecommission and shall be certified to the commission, the auditorof state, the governor, the director of budget and management, and the budgetcommission, whereupon suchcommission and its functions under this chapter shall terminate. Thisdetermination shall be made by the auditor of state upon thefiling with the auditor of state of a written request forsuch a determination by the school district board,the governor, or the commission, or may be madeby the auditor of state upon the auditor of state's owninitiative.

(C) The commission shall prepare and submit at the time of suchcertification a final report of its activities, in such form asis appropriate for the purpose of providing a record of itsactivities and assisting other commissions created under thischapter in the conduct of their functions. All of the books andrecords of the commission shall be delivered to the auditor ofstate for retention and safekeeping.

(D) Upon receipt of the certification provided for indivision (B) of this section, the director of budget and managementshall follow theprocedures set forth in section 126.29 of the Revised Code.

(E) If, at the time of termination of the commission, aneffective financial accounting and reporting system has not beenfully implemented, the auditor of state shall monitor theprogress of implementation and shall exercise authority under this section andChapter 117. of the Revised Code to securefull implementation at the earliest time feasible but within twoyears after such termination.

Sec. 3317.01. As used in this section and section 3317.011of the Revised Code,"school district," unless otherwisespecified, means any city, local, exempted village, jointvocational, or cooperative education school district andanyeducational service center.

This chapter shall be administered by the state board ofeducation. The superintendent of public instruction shallcalculate the amounts payable to each school district and shallcertify the amounts payable to each eligible district to thetreasurer of the district as provided by this chapter. As soon as possible after such amounts are calculated, the superintendent shall certify to the treasurer of each school district the district's adjusted charge-off amount, as defined in section 5705.211 of the Revised Code, for the fiscal year for which those amounts are computed and for the fiscal year preceding that fiscal year. A separate certification of the adjusted charge-off amounts is not required if the certification of other amounts computed under this chapter indicates those adjusted charge-off amounts. No moneysshall be distributed pursuant to this chapter without theapprovalof the controlling board.

The state board of education shall, in accordance withappropriations made by the general assembly, meet the financialobligations of this chapter.

Annually, the department of education shall calculate andreport to eachschool district the district's total state andlocal funds for providing anadequate basic education to thedistrict's nonhandicapped students, utilizingthe determination insection 3317.012 of the Revised Code. In addition, thedepartmentshallcalculate and report separately for each school district thedistrict's totalstate and local funds for providing an adequateeducation for its handicappedstudents, utilizing thedeterminations in both sections 3317.012 and 3317.013of theRevised Code.

Not later than the thirty-first day of August of each fiscalyear,the department of education shall provide to each schooldistrict andcounty MR/DD board a preliminary estimate of theamount of fundingthat the department calculates the district willreceive under each ofdivisions (C)(1) and(4) of section3317.022of the Revised Code. No laterthan the first day ofDecember ofeach fiscal year, the department shallupdate thatpreliminaryestimate.

Moneys distributed pursuant to this chapter shall becalculated and paid on a fiscal year basis, beginning with thefirst day of July and extending through the thirtieth day ofJune.The moneys appropriated for each fiscal year shall bedistributedat least monthly to each school district unlessotherwise providedfor. The state board shall submit a yearlydistribution plan tothe controlling board at itsfirst meeting in July. The stateboard shall submit any proposed midyearrevision of the plan tothe controllingboard in January. Any year-end revision of theplan shall be submitted tothe controlling board in June. Ifmoneys appropriated for eachfiscal year are distributed otherthan monthly, such distributionshall be on the same basis foreach school district.

The total amounts paid each month shall constitute, asnearlyas possible, one-twelfth of the total amount payable fortheentire year. ~~Payments~~

Until fiscal year 2006, payments made during the first six months ofthefiscal year may be based on an estimate of the amountspayable forthe entire year. Payments made in the last sixmonths shall bebased on the final calculation of the amountspayable to eachschool district for that fiscal year. Paymentsmade in the lastsix months may be adjusted, if necessary, tocorrect the amountsdistributed in the first six months, and toreflect enrollmentincreases when such are at least three percent. ~~Except~~

Beginning in fiscal year 2006, payments shall be calculated to reflect the biannual reporting of average daily membership. In fiscal year 2006 and in each fiscal year thereafter, payments for July through December shall be based on student counts certified pursuant to section 3317.03 of the Revised Code for the first full week in October, and payments for January through June shall be based on the average of student counts certified pursuant to that section for the first full week of the previous October and the third full week in February.

Except asotherwise provided, payments under this chaptershall be made onlyto those school districts in which:

(A) The school district, except for anyeducational servicecenter and any jointvocational or cooperative education schooldistrict, levies forcurrent operating expenses at least twentymills. Levies forjoint vocational or cooperative educationschool districts orcounty school financing districts, limited toor to the extentapportioned to current expenses, shall beincluded in thisqualification requirement. School districtincome tax leviesunder Chapter 5748. of the Revised Code, limitedto or to theextent apportioned to current operating expenses,shall beincluded in this qualification requirement to the extentdetermined by the tax commissioner under division (D) ofsection3317.021 of the Revised Code.

(B) The school year next preceding the fiscal year forwhichsuch payments are authorized meets the requirement ofsection3313.48 or 3313.481 of the Revised Code, with regard totheminimum number of days or hours school must be open forinstruction with pupils in attendance, for individualizedparent-teacher conference and reporting periods, and forprofessional meetings of teachers. This requirement shall bewaived by the superintendent of public instruction if it had beennecessary for a school to be closed because of disease epidemic,hazardous weather conditions, inoperability of school buses orother equipmentnecessary to the school's operation, damage to aschool building, orother temporary circumstances due to utilityfailure renderingthe school building unfit for school use,provided that for thoseschool districts operating pursuant tosection 3313.48 of theRevised Code the number of days the schoolwas actually open forinstruction with pupils in attendance andfor individualizedparent-teacher conference and reporting periodsis not less thanone hundred seventy-five, or for those schooldistricts operatingon a trimester plan the number of days theschool was actuallyopen for instruction with pupils in attendancenot less thanseventy-nine days in any trimester, for those schooldistrictsoperating on a quarterly plan the number of days theschool wasactually open for instruction with pupils in attendancenot lessthan fifty-nine days in any quarter, or for those schooldistricts operating on a pentamester plan the number of days theschool was actually open for instruction with pupils inattendancenot less than forty-four days in any pentamester.

A school district shall not be considered to have failed tocomply with this division or section 3313.481 of the Revised Codebecause schools were open for instruction but either twelfthgradestudents were excused from attendance for up to three daysor onlya portion of the kindergarten students were in attendancefor upto three days in order to allow for the gradualorientation toschool of such students.

The superintendent of public instruction shall waive therequirements of this section with reference to the minimum numberof days or hours school must be in session with pupils inattendance for the school year succeeding the school year inwhicha board of education initiates a plan of operation pursuanttosection 3313.481 of the Revised Code. The minimumrequirements ofthis section shall again be applicable to such adistrictbeginning with the school year commencing the secondJulysucceeding the initiation of one such plan, and for eachschoolyear thereafter.

A school district shall not be considered to have failed tocomply withthis division or section 3313.48 or 3313.481 of theRevised Code becauseschools were open for instruction but thelength of the regularly scheduledschool day, for any number ofdays during the school year, was reduced by notmore than twohours due to hazardous weather conditions.

(C) The school district has on file, and is paying inaccordance with, a teachers' salary schedulewhich complies withsection 3317.13 of the Revised Code.

A board of education or governing board of an educationalservice center whichhas not conformed with other lawand therules pursuant thereto, shall not participate in thedistributionof funds authorized by sections 3317.022 to3317.0211, 3317.11,3317.16, 3317.17, and 3317.19 of the RevisedCode, except for goodand sufficient reason established to thesatisfaction of the stateboard of education and the statecontrolling board.

All funds allocated to school districts under this chapter,except those specifically allocated for other purposes, shall beused to pay current operating expenses only.

Sec. 3317.012. (A) The general assembly, having deliberated on the model with which to calculate the base cost of an adequate education per pupil, has made a policy decision to calculate that amount as consisting of the following building blocks:

(2) Other personnel support, which includes additional teachers, such as music, arts, and physical education teachers funded by state, local, or federal funds or other funds that are above the base cost funding level, and other school personnel including administrators;

This model reflects policy decisions made by the general assembly concerning the cost of base classroom teachers, which decisions entail two policy variables: the number of students per base classroom teacher necessary for an adequate education and the average compensation for a base classroom teacher necessary for an adequate education. The model requires the general assembly to decide the amount of other personnel support necessary for an adequate education, and increase that amount from year to year by the same percentage as it increases the average compensation for base classroom teachers. The model finally requires the general assembly to decide the nonpersonnel costs necessary for an adequate education and to inflate the nonpersonnel costs from year to year using the projected inflationary measure for the gross domestic product deflator (all items) prepared by the bureau of labor statistics of the United States department of labor.

(B)(1) For fiscal year 2006, the general assembly has resolved that a ratio of one base classroom teacher per twenty students is necessary for an adequate education. The general assembly has made a policy decision that the average compensation for base classroom teachers is $53,680 for fiscal year 2006, which includes an amount for the value of fringe benefits. For fiscal year 2007, the general assembly has resolved that a ratio of one base classroom teacher per twenty students is necessary for an adequate education. The general assembly has made a policy decision that the average compensation for base classroom teachers is $54,941, which includes an amount for the value of fringe benefits. Based on a ratio of twenty students per base classroom teacher, these amounts equal $2,684 per pupil in fiscal year 2006 and $2,747 per pupil in fiscal year 2007.

(2) The general assembly has made a policy decision that the per pupil cost of salary and benefits of other personnel support is $1,807 in fiscal year 2006. Based on the percentage increase for the average compensation of base classroom teachers from fiscal year 2006 to fiscal year 2007, the per pupil cost of other personnel support is $1,850 in fiscal year 2007.

(3) The general assembly has made a policy decision that the per pupil cost of nonpersonnel support is $792 in fiscal year 2006 and $806 in fiscal year 2007. The amount for fiscal year 2007 reflects the projected inflationary measure for the gross domestic product deflator (all items) of 1.80%.

(4) Based on the determinations specified in divisions (B)(1) to (3) of this section, the per-pupil base cost is $5,283 in fiscal year 2006 and $5,403 in fiscal year 2007.

(C) In addition to the per-pupil base cost as determined under divisions (A) and (B) of this section, the general assembly determines that the following base funding supplements shall be paid to each school district:

(1) Base funding for large-group academic intervention for all students, based on 25 hours per group of students per year at an hourly rate of $20.00 in fiscal year 2006 and $20.40 in fiscal year 2007, as follows:

(a) "Large-group intervention units" equals the district's formula ADM divided by 20;

(b) "Hourly rate" equals $20.00 in fiscal year 2006 and $20.40 in fiscal year 2007.

(2) Base funding for professional development, phased in according to the following formula:

(a) For each school district, the district's "teacher factor" is the district's formula ADM divided by 17;

(b) "Phase-in percentage" equals 0.25 in fiscal year 2006 and 0.75 in fiscal year 2007.

(3) Base funding for data-based decision making, calculated according to the following formula:

(4) Base funding for professional development regarding data-based decision making, calculated according to the following formula:

(a) For each school district, the district's "teacher factor" is the district's formula ADM divided by 17;

(b) For each school district, the district's "principal factor" is the district's formula ADM divided by 340.

(D) The general assembly intends that school districts spend the state funds calculated and paid for each component of the building blocks methodology described in divisions (B)(1) to (3) and (C)(1) to (4) of this section according to the purposes described in those divisions.

Analysis of special education cost data has resulted in afinding that the average special education additionalcost perpupil, includingthe costs of related services, can be expressedas a multiple of the base costper pupilcalculated under section3317.012 of the Revised Code. Themultiples for the followingcategories of special educationprograms, as these programs aredefined for purposes of Chapter3323. of the Revised Code,andadjusted as provided in this section, are asfollows:

(A)A multiple of 0.2892 for students whose primary or onlyidentified handicap is a speech and language handicap, as thisterm is defined pursuant to Chapter 3323. of the Revised Code;

(B) A multiple of0.3691 for students identified asspecificlearning disabled ordevelopmentallyhandicapped, asthese terms are defined pursuantto Chapter 3323.ofthe RevisedCode, or other healthhandicapped-minor;

(C) A multiple of1.7695 for students identified ashearinghandicapped, visionimpaired,or severe behavior handicapped, asthesetermsare defined pursuant toChapter 3323. of the RevisedCode;

(D) A multiple of 2.3646 for students identified asorthopedically handicapped, as thisterm is defined pursuant toChapter 3323. of the Revised Code or other health handicapped -major;

(E) A multiple of 3.1129 for students identified asmultihandicapped, asthis term is defined pursuant to Chapter3323. of the RevisedCode;

(F) A multiple of 4.7342 for students identified asautistic, having traumatic brain injuries, or as both visuallyand hearing disabled, as these terms aredefinedpursuant toChapter 3323. of the Revised Code.

In fiscal year 2004, the multiples specified in divisions (A)to (F) of this section shall be adjusted by multiplying them by 0.88. In fiscal ~~year~~ years 2005, 2006, and 2007, the multiples specified in thosedivisions shall be adjusted by multiplying them by 0.90.

Not later than the thirtieth day of May ~~30,~~ in 2004, ~~and May 30,~~ 2005, 2006, and 2007, the department shall submit to the office of budget and management a report that specifies for each city, local, exempted village, and joint vocational school district the fiscal year allocation of the state and local shares of special education and related services additional weighted funding and federal special education funds passed through to the district.

Sec. 3317.016. In addition to its form SF-3, or any successor to that form, the department of education shall publish on its web site a spreadsheet for each school district that specifies the constituent components of the district's "building blocks" funds, as follows:

(A) For compensation of base classroom teachers, as described in division (B)(1) of section 3317.012 of the Revised Code, each spreadsheet shall specify the district's aggregate and per pupil amounts of state funds and of combined state and local funds, the average compensation decided by the general assembly for base classroom teachers, as specified in that division, and the number of base classroom teachers attributable to the district based on the student-teacher ratio decided by the general assembly, as specified in that division.

(B) Each spreadsheet shall specify the district's aggregate and per pupil amounts of state funds and of combined state and local funds for each of the following:

(1) Other personnel support, as described in division (B)(2) of section 3317.012 of the Revised Code;

(3) Academic intervention services, as described in division (C)(1) of that section;

(5) Data-based decision making, as described in division (C)(3) of that section;

(6) Professional development for data-based decision making, as described in division (C)(4) of that section.

(C) Each spreadsheet shall separately specify the district's aggregate and per pupil state funds for each of the following components of poverty-based assistance under section 3317.029 of the Revised Code:

(1) Poverty-based assistance guarantee payment under division (B) of that section;

(5) Services to limited English proficient students under division (F) of that section;

Sec. 3317.017. (A) Not later than July 1, 2006, the superintendent of public instruction shall adopt a rule under which the superintendent may issue an order with respect to the spending, by a school district declared to be under an academic watch or in a state of academic emergency under section 3302.03 of the Revised Code, of the following state building block funds intended to pay instructional-related costs:

(1) State funds for compensation of base classroom teachers, as described in division (B)(1) of section 3317.012 of the Revised Code;

(2) State funds for academic intervention services under division (C)(1) of section 3317.012 and division (C) of section 3317.029 of the Revised Code;

(3) State funds for professional development under divisions (C)(2) and (4) of section 3317.012 and division (G) of section 3317.029 of the Revised Code;

(4) State funds for data based decision making under division (C)(3) of section 3317.012 of the Revised Code;

(5) The poverty-based assistance guarantee payment under division (B) of section 3317.029 of the Revised Code;

(6) State funds for all-day kindergarten under division (D) of section 3317.029 of the Revised Code;

(7) State funds for class-size reduction under division (E) of section 3317.029 of the Revised Code;

(8) State funds for services to limited English proficient students under division (F) of section 3317.029 of the Revised Code;

(9) State funds for dropout prevention under division (H) of section 3317.029 of the Revised Code;

(10) State funds for community outreach under division (I) of section 3317.029 of the Revised Code.

(B) The rule shall authorize the superintendent of public instruction to issue an order that does one or a combination of the following:

(1) Requires the school district to periodically report to the superintendent of public instruction on its spending of the state funds paid for each building blocks component described in divisions (A)(1) to (10) of this section;

(2) Requires the district to establish a separate account for each of the building blocks components described in divisions (A)(1) to (10) of this section to which the district shall credit the state funds paid for each;

(3) Directs the district's spending of any or all of the state funds paid for the components described in divisions (A)(1) to (10) of this section in accordance with the descriptions and requirements of sections 3317.012 and 3317.029 of the Revised Code.

(C) The rule shall specify situations in which the superintendent may issue an order and the types of orders the superintendent will issue for each of those situations. The rule, however, shall authorize the superintendent to issue orders in situations that are not enumerated or described in the rule.

(D) The board of education of each school district to which the superintendent of public instruction issues an order pursuant to the rule adopted under this section shall comply with that order.

(A) Unless otherwise specified,"school district" meanscity,local, and exempted village school districts.

(B)"Formula amount" means the base cost for the fiscal yearspecified in division (B)(4) of section 3317.012 of theRevised Code.

(C)"FTE basis" means acount of students based on full-timeequivalency, in accordancewith rules adopted by the department ofeducation pursuant tosection 3317.03 of the Revised Code. Inadopting its rules under thisdivision, the department shallprovide forcounting any student in category one, two, three,four, five, or sixspecialeducation ADM or in category one or twovocationaleducationADM in the same proportion the student iscounted informula ADM.

(D)~~(1)~~"FormulaADM" means, for a city, local, or exemptedvillage schooldistrict, the number reported pursuant todivision(A) of section 3317.03 of the Revised Code, and for a jointvocational school district, the number reported pursuant todivision(D) of ~~that~~ section 3317.03 of the Revised Code. Beginning in fiscal year 2006, for payments in which formula ADM is a factor, for the months of July through December, formula ADM means the number reported in October of that year, and for the months of January through June, formula ADM means the average of the numbers reported in the previous October and in February.

~~(2)~~(E) "Three-year average formula ADM" means the average offormula ADMs for thecurrent and preceding two fiscal years.However, as applicable infiscal years 1999 and 2000, thethree-year average for city, local, andexempted village schooldistricts shall be determined utilizing theFY 1997 ADM or FY 1998ADM in lieu offormula ADM for fiscal year 1997 or 1998. Infiscal years 2000and 2001, the three-year average for jointvocational school districts shallbe determined utilizing theaverage daily membership reported in fiscal years1998 and 1999under division (D) of section 3317.03 of the Revised Code in lieuofformula ADM for fiscal years 1998 and 1999.

(E)"FY 1997 ADM" or"FY 1998 ADM" means the schooldistrict'saverage daily membership reported for the applicablefiscal yearunder the version of division (A) of section 3317.03of theRevised Code in effect during thatfiscal year, adjusted asfollows:

~~(3) Minus three-fourths of theaverage daily membershipattending a joint vocational schooldistrict;~~

(4) Plus the average daily membership entitled undersection3313.64 or 3313.65 of the RevisedCode to attend school in thedistrict but receiving educational services inapproved units froman educationalservice center or another school district under acompact or acooperative education agreement, as determined by thedepartment;

(5) Minus the average daily membership receiving educationalservices from the district in approved units but entitled undersection3313.64 or 3313.65 of the Revised Code to attend school inanother schooldistrict, as determined by the department.

(F)(1)"Category onespecial education ADM" meanstheaveragedaily membership of handicapped children receivingspecialeducation services forthe handicapspecified indivision (A)ofsection 3317.013 of theRevised Code and reportedunderdivision(B)(5) or(D)(2)(b) of section 3317.03 of theRevisedCode.

(2)"Category twospecial education ADM" meansthe averagedaily membership of handicapped children receivingspecialeducation services for those handicaps specified indivision (B)of section 3317.013 of the Revised Code and reported underdivision (B)(6) or (D)(2)(c) of section 3317.03 ofthe RevisedCode.

(3)"Category three special education ADM" meansthe averagedaily membership of students receiving specialeducation servicesforthose handicaps specified in division (C) of section 3317.013of the Revised Code, andreportedunder division(B)(7) or(D)(2)(d) of section 3317.03 oftheRevised Code.

(4)"Category four specialeducation ADM" means the averagedaily membership of studentsreceiving special education servicesfor those handicaps specifiedin division (D) of section 3317.013of the Revised Code andreported under division (B)(8) or(D)(2)(e) of section 3317.03 ofthe Revised Code.

(5) "Category five special education ADM" means the averagedaily membership of students receiving special education servicesfor the handicap specified in division (E) of section 3317.013ofthe Revised Code and reported under division (B)(9) or(D)(2)(f)of section 3317.03 of the Revised Code.

(6) "Category six special education ADM" means the averagedaily membership of students receiving special education servicesfor the handicap specified in division (F) of section 3317.013ofthe Revised Code and reported under division (B)(10) or(D)(2)(g)of section 3317.03 of the Revised Code.

(7) "Category one vocational education ADM"means theaveragedaily membership of students receiving vocationaleducationservices described in division (A) of section 3317.014of theRevised Code and reported under division (B)(11) or(D)(2)(h)ofsection 3317.03 of the Revised Code.

(8)"Category two vocational education ADM" means theaveragedaily membership of students receiving vocationaleducationservicesdescribed in division (B) of section 3317.014of theRevised Code and reportedunder division (B)(12) or(D)(2)(i) ofsection3317.03 of the Revised Code.

Beginning in fiscal year 2006, for payments in which category one through six special education ADM or category one or two vocational education ADM is a factor, for the months of July through December, those terms mean the numbers as described in division (F)(1) through (8) of this section, respectively, reported in October of that year, and for the months of January through June, those terms mean the average of the numbers as described in division (F)(1) through (8) of this section, respectively, reported in the previous October and in February.

(G)"Handicapped preschool child" means ahandicapped child,as defined in section 3323.01 of theRevised Code, who is at leastage threebut is not of compulsory school age, as defined insection3321.01 of the Revised Code, and who is not currentlyenrolled inkindergarten.

(H)"County MR/DD board" means a countyboard of mentalretardation and developmentaldisabilities.

(I)"Recognized valuation" means theamount calculated for aschool district pursuant to section3317.015 of the Revised Code.

(J)"Transportation ADM" means the number ofchildrenreported under division(B)(13) of section 3317.03 of theRevisedCode.

(K)"Average efficient transportation use cost perstudent"means a statistical representation oftransportation costs ascalculated under division (D)(2) of section 3317.022 of theRevised Code.

(L)"Taxes charged and payable" means the taxes chargedandpayable against real and public utility property after makingthereduction required by section 319.301 of the Revised Code,plusthe taxes levied against tangible personal property.

(M)"Total taxable value" means the sumof the amountscertified for a city, local, exempted village, orjoint vocationalschool district under divisions (A)(1) and (2)of section 3317.021of the Revised Code.

(N)"Cost-of-doing-business factor" means the amountindicated in ~~this~~ division (N)(1) or (2) of this section for the county in which a city,local,exempted village, or joint vocational school district is located.If acity, local, or exempted village schooldistrict is locatedinmore than one county,the factor is the amount indicated forthecounty to which thedistrict is assigned by the statedepartmentof education. If a jointvocational school district islocated inmore than one county, the factor isthe amountindicated for thecounty in which the joint vocational school withthe greatestformula ADM operated by the district islocated.

(O)"Tax exempt value" of a school district means theamountcertified for a school district under division (A)(4) ofsection3317.021 of the Revised Code.

(P)"Potential value" of a school district means therecognized valuation of a school district plusthe taxexemptvalueofthe district.

(Q)"District median income" means the median Ohioadjustedgross income certified for a school district. On or before thefirstday of July of each year, the tax commissioner shall certifyto thedepartment of education for each city, exempted village,and local schooldistrict the median Ohio adjusted gross income ofthe residents ofthe school district determined on the basis oftax returns filed for thesecond preceding tax year by theresidents of the district.

(R)"Statewide median income" means the median districtmedianincome of all city, exempted village, and local schooldistricts in the state.

(S)"Income factor" for a city, exempted village, or localschooldistrict means the quotient obtained by dividing thatdistrict's median incomeby the statewide median income.

(1) The child requires the services of a doctor of medicineor osteopathic medicine at least once a week due to theinstability of the child's medical condition.

(3) The child is at risk of institutionalization in ahospital, skilled nursing facility, or intermediate care facilityfor the mentally retarded.

(U) A child may be identified as "other healthhandicapped-major" if the child's condition meets the definitionof "other health impaired" established in rules adopted by thestate board of education prior toJuly 1, 2001, and if either of the following apply:

(1) The child is identified as having a medical conditionthat is among those listed by the superintendent of publicinstruction as conditions where a substantial majority of casesfall within the definition of "medically fragile child." Thesuperintendent of public instruction shall issue an initial listno later than September 1, 2001.

(2) The child is determined by the superintendent of publicinstruction to be a medically fragile child. A school districtsuperintendent may petition the superintendent of publicinstruction for a determination that a child is a medicallyfragile child.

(V) A child may be identified as "other healthhandicapped-minor" if the child's condition meets the definitionof "other health impaired" established in rules adopted by thestate board of education prior toJuly 1, 2001, but the child's condition does not meeteither of theconditions specified in division (U)(1) or (2) ofthis section.

(W) "SF-3 payment" means the sum of the payments to a school district in a fiscal year under divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section 3317.022, divisions (J), (P), and (R) of section 3317.024, and sections 3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and 3317.053 of the Revised Code after making the adjustments required by sections 3313.981 and 3313.979 of the Revised Code, divisions (B), (C), (D), (E), (K), (L), (M), (N), and (O) of section 3317.023, and division (C) of section 3317.20 of the Revised Code.

(X) "Property exemption value" means zero in fiscal year 2006, and in fiscal year 2007 and each fiscal year thereafter, the amount certified for a school district under divisions (A)(6) and (7) of section 3317.021 of the Revised Code.

Sec. 3317.021. (A) On or before the first day of June ofeach year, the tax commissioner shall certify to the departmentofeducation the following information for each city, exemptedvillage, and local school district, and the information requiredby divisions (A)(1) and (2) of this section for each jointvocational school district, and it shall be used, along with theinformation certified under division (B) of this section, inmaking the computations for the district undersections3317.022and 3317.0217 orsection 3317.16 of the Revised Code:

(1) The taxable value of real and public utility realproperty in the school district subject to taxation in thepreceding tax year, by class and by county of location;

(2) The taxable value of tangible personal property,including public utility personal property, subject to taxationbythe district for the preceding tax year;

(3)(a) The total property tax rate and total taxes chargedand payable for the current expenses for the preceding tax yearand the total property tax rate and the total taxes charged andpayable to a joint vocational district for the preceding tax yearthat are limited to or to the extent apportioned to currentexpenses;

(b) The portion of the amount of taxes charged and payablereported for each city, local, and exempted village schooldistrict underdivision (A)(3)(a) of this section attributable toajoint vocational school district.

(4) The value of all real and public utility real propertyin the school district exempted from taxation minus both of thefollowing:

(a) The value of real and public utility real property inthe district owned by the United States government and usedexclusively for a public purpose;

(b) The value of real and public utility real property inthe district exempted from taxation under Chapter 725. or 1728. orsection3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632,5709.73, or 5709.78 ofthe Revised Code.

(5) The totalfederal adjusted gross income of theresidentsof the schooldistrict, based on tax returns filed bytheresidents of thedistrict, for the most recent year for whichthisinformation isavailable;

(6) The aggregate value of real property in the school district exempted from taxation pursuant to an ordinance adopted by the legislative authority of a municipal corporation under division (C) of section 5709.40 of the Revised Code or pursuant to a resolution adopted by a board of township trustees or board of county commissioners under division (C) of section 5709.73 or division (B) of section 5709.78 of the Revised Code, respectively, but not including payments in lieu of taxes provided under division (D)(1) of section 5709.40, division (D)(1) of section 5709.73, or division (C)(1) of section 5709.78 of the Revised Code, respectively, as indicated on the list of exempted property for the preceding tax year under section 5713.08 of the Revised Code and as if such property had been assessed for taxation that year, minus the following amounts:

(a) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to such ordinance or resolution, if the ordinance or resolution is adopted prior to January 1, 2006, and the legislative authority or board of township trustees or county commissioners, prior to January 1, 2006, executes a contract or agreement with a developer, whether for-profit or not-for-profit, with respect to the development of a project undertaken or to be undertaken and identified in the ordinance or resolution, and upon which parcels such project is being, or will be, undertaken;

(b) The product determined by multiplying (i) the aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to any such ordinance or resolution, minus the aggregate value of any improvement excluded pursuant to division (A)(6)(a) of this section, by (ii) a fraction, the numerator of which is the difference between (I) the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation pursuant to such ordinance or resolution had not been exempted from taxation and (II) the aggregate amount of payments and other compensation received in the preceding fiscal year by the school district pursuant to all agreements between the school district and a legislative authority or board of township trustees or county commissioners that were entered into in relation to such ordinance or resolution, and the denominator of which is the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation pursuant to such ordinance or resolution had not been exempted from taxation;

(c) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to such ordinance or resolution, if and to the extent that, on or before April 1, 2006, the fiscal officer of the municipal corporation that adopted the ordinance, or of the township or county that adopted the resolution, certifies and provides appropriate supporting documentation to the tax commissioner and the director of development that, based on hold-harmless provisions in any agreement between the school district and the legislative authority of the municipal corporation, board of township trustees, or board of county commissioners that was entered into on or before June 1, 2005, the ability or obligation of the municipal corporation, township, or county to repay bonds, notes, or other financial obligations issued or entered into prior to January 1, 2006, will be impaired, including obligations to or of any other body corporate and politic with whom the legislative authority of the municipal corporation or board of township trustees or county commissioners has entered into an agreement pertaining to the use of service payments derived from the improvements exempted;

(d) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to such ordinance or resolution, if the ordinance or resolution is adopted prior to January 1, 2006, in a municipal corporation with a population that exceeds one hundred thousand, as shown by the most recent federal decennial census, that includes a major employment center and that is adjacent to historically distressed neighborhoods, if the legislative authority of the municipal corporation, the board of township trustees, or the board of county commissioners that exempted the property prepares an economic analysis that demonstrates that all taxes generated within the incentive district accruing to the state by reason of improvements constructed within the district during its existence exceed the amount the state pays the school district under section 3317.022 of the Revised Code attributable to such property exemption from the school district's recognized valuation. The analysis shall be submitted to and approved by the department of development prior to January 1, 2006, and the department shall not unreasonably withhold approval. Approval shall permit use of the aggregate value for the life of the incentive district as designated in the ordinance or resolution creating it.

(e) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation under such ordinance or resolution, if the ordinance or resolution is adopted prior to January 1, 2006, and if service payments have been pledged to be used for mixed-use riverfront entertainment development in any county with a population that exceeds six hundred thousand, as shown by the most recent federal decennial census;

(f) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation under such ordinance or resolution, if, prior to January 1, 2006, the legislative authority of a municipal corporation, board of township trustees, or board of county commissioners has pledged service payments for a designated transportation capacity project approved by the transportation review advisory council under Chapter 5512. of the Revised Code;

(g) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation under such ordinance or resolution if the legislative authority of a municipal corporation, board of township trustees, or board of county commissioners have, by January 1, 2006, pledged proceeds for designated transportation improvement projects that involve federal funds for which the proceeds are used to meet a local share match requirement for such funding.

As used in division (A)(6) of this section, "project" has the same meaning as in section 5709.40 of the Revised Code.

(7) The aggregate value of real property in the school district for which an exemption from taxation is granted on or after January 1, 2006, under Chapter 725. or 1728., sections 3735.65 to 3735.70, or section 5709.62, 5709.63, 5709.632, 5709.84, or 5709.88 of the Revised Code, as indicated on the list of exempted property for the preceding tax year under section 5713.08 of the Revised Code and as if such property had been assessed for taxation that year, but not including compensation for tax revenue foregone pursuant to an agreement entered into on or after January 1, 2006, under section 5709.82 of the Revised Code, and minus the product determined by multiplying (a) the aggregate value of the real property in the school district exempted from taxation under any of the chapters or sections specified in this division, by (b) a fraction, the numerator of which is the difference between (i) the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation had not been exempted from taxation and (ii) the aggregate amount of payments and other compensation received in the preceding fiscal year by the school district pursuant to any agreements between the school district and the legislative authority of a political subdivision that acted under the authority of a chapter or statute specified in this division, that were entered into in relation to such exemption, and the denominator of which is the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation had not been exempted.

(B) On or before the first day of May each year, the taxcommissioner shall certify to the department of education thetotal taxable real property value of railroads and, separately,the total taxable tangible personal property value of all publicutilities for the preceding tax year, by school district and bycounty of location.

(C) If a public utility has properly and timely filed apetition forreassessment under section 5727.47 of the RevisedCode with respect to an assessment issuedunder section 5727.23 ofthe Revised Code affecting taxable propertyapportioned by the taxcommissioner to a school district, the taxable value of publicutilitytangible personal propertyincluded in the certificationunder divisions (A)(2) and (B)ofthis section for the schooldistrict shall include only the amount of taxablevalue on thebasis ofwhich the public utility paid tax for the preceding yearas provided indivision (B)(1) or (2)of section 5727.47 of theRevised Code.

(D) If on the basis of the information certified underdivision (A) of this section, the department determines that anydistrict fails in any year to meet the qualification requirementspecified in division (A) of section 3317.01 of the Revised Code,the department shall immediately request the tax commissioner todetermine the extent to which any school district income taxlevied by the district under Chapter 5748. of the Revised Codeshall be included in meeting that requirement. Within five daysof receiving such a request from the department, the taxcommissioner shall make the determination required by thisdivision and report the quotient obtained under division(D)(3)ofthis section to the department. This quotient represents thenumber of mills that the department shall include in determiningwhether the district meets the qualification requirement ofdivision (A) of section 3317.01 of the Revised Code.

The tax commissioner shall make the determination requiredbythis division as follows:

(1) Multiply one mill times the total taxable value of thedistrict as determined in divisions (A)(1) and (2) of thissection;

(2) Estimate the total amount of tax liability for thecurrent tax year under taxes levied by Chapter 5748. of theRevised Code that are apportioned to current operating expensesofthe district;

(3) Divide the amount estimated under division (D)(2) ofthis section by the product obtained under division (D)(1)ofthissection.

(E) On or before June 1, 2006, and the first day of June of each year thereafter, the director of development shall certify to the department of education the total amount of payments received by each city, local, exempted village, or joint vocational school district during the preceding tax year pursuant to an agreement entered into under division (B) of section 5709.82 of the Revised Code in relation to exemptions from taxation granted pursuant to an ordinance adopted by the legislative authority of a municipal corporation under division (C)(1) of section 5709.40 of the Revised Code, or a resolution adopted by a board of township trustees or board of county commissioners under division (C)(1) of section 5709.73 or division (B)(1) of section 5709.78 of the Revised Code, respectively. On or before April 1, 2006, and the first day of April of each year thereafter, the treasurer of each city, local, exempted village, or joint vocational school district that has entered into such an agreement shall report to the director of development the total amount of such payments the district received during the preceding tax year pursuant to each such agreement. The state board of education, in accordance with sections 3319.31 and 3319.311 of the Revised Code, may suspend or revoke the license of a treasurer found to have willfully reported erroneous, inaccurate, or incomplete data under this division.

Sec. 3317.022. (A)~~(1)~~ The department of education shallcomputeand distribute state base cost funding toeach schooldistrict for the fiscal year ~~in accordance with thefollowingformula,making any adjustment required bydivision (A)(2) ofthis section and~~usingtheinformation obtainedunder section3317.021 of the RevisedCode inthe calendar year inwhich thefiscal year begins.

formula ADM) + the sum of the base funding supplements prescribed in divisions (C)(1) to (4) of section 3317.012 of the Revised Code] -

~~(.023 Xrecognized valuation)~~[.023 x (the sum of recognized valuation and property exemption (value)]

If the difference obtained is a negative number, thedistrict's computation shall be zero.

(a) The difference of (i) the district's fiscal year 2005 base cost payment under the version of division (A)(1) of this section in effect in fiscal year 2005, minus (ii) the amount computed for the district for the current fiscal year under current division (A)(1) of this section;

ADM) X current year formula ADM] minus the amount computed for the

If one of the amounts computed under division (A)(2)(a) or (b) of this section is a positive amount, the department shall pay the district that amount in addition to the amount calculated under division (A)(1) of this section. If both amounts are positive amounts, the department shall pay the district the lesser of the two amounts in addition to the amount calculated under division (A)(1) of this section.

(3)(a) For each school district for which the tax exemptvalue of the district equals or exceeds twenty-five per cent ofthe potential value of the district, the department of educationshall calculate the difference between the district's tax exemptvalue and twenty-five per cent of the district's potential value.

(b) For each school district to which division(A)~~(2)~~(3)(a) ofthis section applies, thedepartmentshall adjust the recognizedvaluation used inthecalculationunderdivision (A)(1) of thissection by subtracting from it the amountcalculated underdivision (A)~~(2)~~(3)(a) of this section.

(1) The "total special education weight" for a districtmeans the sum of the following amounts:

(a) The district's category one special education ADMmultiplied by themultiple specifiedin division(A) ofsection3317.013 of the Revised Code;

(b) The district's category twospecial educationADMmultiplied by themultiplespecifiedin division(B) of section3317.013 of the RevisedCode;

(c) The district's category three special education ADMmultiplied by the multiple specified in division (C) of section3317.013 of the Revised Code;

(d) The district's category four special education ADMmultiplied by the multiple specified in division (D) of section3317.013 of the Revised Code;

(e) The district's category five special education ADMmultiplied by the multiple specified in division (E) of section3317.013 of the Revised Code;

(f) The district's category six special education ADMmultiplied by the multiple specified in division (F) of section3317.013 of the Revised Code.

(2) "State share percentage" means the percentage calculatedfor adistrict as follows:

(a) Calculate the state base cost funding amount forthedistrict forthe fiscal year under division (A) of this section.Ifthe district would not receive any state base costfunding forthat yearunder that division, the district's state sharepercentage is zero.

(b) If the district would receive state base costfundingunder thatdivision, divide that amount by an amount equal to thefollowing:

formula ADM) + the sum of the base funding supplements prescribed in divisions (C)(1) to (4) of section 3317.012 of the Revised Code

(a) Child study, special education supervisors andcoordinators, speech and hearing services, adaptive physicaldevelopment services, occupational or physical therapy,teacherassistants for handicapped children whosehandicaps are describedin division(B) of section 3317.013 or division (F)(3) of section3317.02 of the Revised Code, behavioral intervention,interpreterservices, work study, nursing services, andspecializedintegrative services as those terms are defined by the department;

(b) Speech and language services provided to anystudentwith a handicap, including any student whose primary oronlyhandicap is a speech and language handicap;

(c) Any related service not specifically coveredby otherstate funds but specified in federal law, including butnotlimited to, audiology and school psychological services;

(d) Any service included in units funded underformerdivision (O)(1) ofsection 3317.023 of the Revised Code;

(e) Any other related service needed byhandicapped childrenin accordance with their individualizededucation plans.

(4) The "total vocational education weight" for a districtmeansthe sum of the following amounts:

(a) The district's category one vocational education ADMmultiplied by the multiple specified in division (A) of section3317.014 of the Revised Code;

(b) The district's category two vocational education ADMmultiplied by the multiple specified in division (B) of section3317.014 of the Revised Code.

(C)(1) The department shall compute and distribute statespecial education and related services additional weighted costsfundsto each school district in accordance with the followingformula:

(2) Theattributed local share of special education andrelated services additionalweighted costs equals:

(3)(a) The department shall compute andpay in accordancewiththis division additional state aid toschool districts forstudents incategories two through six specialeducation ADM. Ifa district'scosts for the fiscal year for astudent in itscategories two through sixspecialeducation ADMexceed thethreshold catastrophic cost for serving the student,thedistrictmay submit tothe superintendent of publicinstructiondocumentation, asprescribed by the superintendent, ofall itscosts for thatstudent. Upon submission of documentationfor astudent of thetype and in the manner prescribed, thedepartmentshall pay tothe district an amount equal to thesum of thefollowing:

(i) One-half of the district's costs for the student inexcess of the threshold catastrophic cost;

(ii) The product of one-half of thedistrict's costs for thestudent in excess ofthe threshold catastrophic cost multipliedbythe district's state share percentage.

(b) For purposes of division (C)(3)(a) of this section, thethreshold catastrophic cost for serving a student equals:

(i) For a student in the school district's category two,three, four, or five special education ADM, twenty-five thousanddollars in fiscal year 2002 ~~and~~, twenty-five thousand seven hundreddollars in fiscal years 2003, 2004, and 2005, and twenty-six thousand five hundred dollars in fiscal years 2006 and 2007;

(ii) For a student in the district's category six specialeducation ADM, thirty thousand dollars in fiscal year 2002 ~~and~~,thirty thousand eight hundred forty dollars in fiscal years 2003, 2004, and 2005, and thirty-one thousand eight hundred dollars in fiscal years 2006 and 2007.

(c) The district shall only reportunder division (C)(3)(a)of this section, and the department shall onlypayfor, thecostsof educational expenses and the relatedservices providedtothestudent in accordance with the student'sindividualizededucationprogram. Any legal fees, court costs, orother costsassociatedwith any cause of action relating to thestudent maynot beincluded in the amount.

(4)(a) As used in this division, the "personnelallowance"means thirtythousand dollarsin fiscalyears 2002, 2003, 2004, ~~and~~, 2005, 2006, and 2007.

(b) For the provision of speech language pathology services to students,including studentswho donot haveindividualized educationprograms prepared forthem underChapter3323. of the RevisedCode, and fornoother purpose, the department of education shallpay eachschool district anamount calculated under the followingformula:

(5) In any fiscal year, a school district shall spendforpurposes that the department designates as approved forspecialeducationand related servicesexpensesat least the amountcalculatedas follows:

The purposes approved by the department for special educationexpenses shall include, but shall not be limited to,identification of handicapped children, compliance with staterules governing the education of handicapped children andprescribing the continuum of program options for handicappedchildren, provision of speech language pathology services, and the portion of the school district's overalladministrative and overhead costs that are attributable to thedistrict's special education student population.

The department shall require school districts to report dataannually to allow for monitoring compliance with division (C)(5)of this section. The department shall annually report to thegovernor and the general assembly the amount of money spent byeach school district for special education and related services.

(6) In any fiscal year, a school district shall spend for the provision of speech language pathology services not less than the sum of the amount calculated under division (C)(1) of this section for the students in the district's category one special education ADM and the amount calculated under division (C)(4) of this section.

(a) "Daily bus miles per student" equals the number of busmilestraveled per day, divided by transportation base.

(b) "Transportation base" equals total student count asdefinedin section 3301.011 of the Revised Code, minus the numberofstudents enrolled in preschool handicapped units, plus thenumberof nonpublic school students included in transportationADM.

(d) "Transportation cost per student" equals total operatingcosts for board-owned or contractor-operated school buses dividedbytransportation base.

(2) Analysis of student transportation cost data hasresulted in afinding that an average efficient transportation usecost per studentcan be calculated by means of a regressionformula that has as its twoindependent variables the number ofdaily bus miles per studentand the transported studentpercentage. For fiscalyear 1998 transportation cost data, theaverage efficienttransportation use cost per student is expressedas follows:

The department of education shall annually determine theaverageefficient transportation use cost per student inaccordance with theprinciples stated in division (D)(2) of thissection, updating theintercept and regression coefficients of theregression formulamodeled in this division, based on an annualstatewide analysis ofeach school district's daily bus miles perstudent, transportedstudent percentage, and transportation costper student data. Thedepartment shall conduct the annual updateusing data, includingdaily bus miles per student, transportedstudent percentage, andtransportation cost per student data, fromthe prior fiscal year. The department shall notify the office ofbudget and management ofsuch update by the fifteenth day ofFebruary of each year.

(3) In addition to funds paid under divisions (A), (C), and(E) of thissection, eachdistrict with a transported studentpercentage greater thanzero shall receive a payment equal to apercentage of the product of the district's transportationbasefrom the prior fiscal year times the annuallyupdated averageefficient transportation use cost per student,times an inflationfactorof two and eight tenths per cent to account for theone-year differencebetween the data used in updating theformulaand calculating the payment and the year in which the payment ismade. The percentage shall be the following percentage of thatproductspecified for the corresponding fiscal year:

The payments made under division (D)(3) of this section eachyearshall be calculated based on all of the same prior year'sdata used to updatethe formula.

(4) In addition to funds paid under divisions (D)(2)and (3)of this section, a school district shall receive arough roadsubsidy ifboth of the following apply:

(a) Its county rough road percentage is higher than thestatewiderough road percentage, as those terms are defined indivision(D)(5) of this section;

(b) Its district student density islower than the statewidestudent density, as those terms are defined inthat division.

(5) The rough road subsidy paid to each district meetingthequalifications of division (D)(4) of this section shallbecalculated in accordance with the following formula:

(a) "Per rough mile subsidy" equals the amount calculated inaccordance with the following formula:

(i) "Maximum rough road percentage" means the highest countyrough road percentage in the state.

(ii) "County rough road percentage" equals the percentage ofthe mileage of state, municipal, county, and township roads thatis rated bythe department of transportation astype A, B, C, E2,or F in thecounty in which the school district is locatedor, ifthe district is located in more than one county, the countytowhich it is assigned for purposes of determining itscost-of-doing-business factor.

(iii) "Statewide rough road percentage" means the percentageofthe statewide total mileage of state, municipal, county, andtownship roadsthat is rated as type A, B, C, E2, orF by thedepartment of transportation.

(b) "Total rough road miles" means a school district's totalbusmiles traveled in one year times its county rough roadpercentage.

(i) "Minimum student density" means the lowest districtstudentdensity in the state.

(ii) "District student density" means a school district'stransportation base divided by the number of square miles in thedistrict.

(iii) "Statewide student density" means the sum of thetransportation bases for all school districts divided by the sumof the squaremiles in all school districts.

(6) In addition to funds paid under divisions(D)(2) to (5)of this section, each districtshall receive in accordance withrules adopted by the state board of educationa payment forstudents transported bymeans other than board-owned orcontractor-operated buses and whosetransportation is not fundedunder division (J) of section 3317.024of the Revised Code. Therules shall includeprovisions for school district reporting ofsuch students.

(E)(1) The department shall compute and distribute statevocationaleducation additional weighted costs funds to eachschool district inaccordance with the following formula:

In any fiscal year, a school district receiving funds underdivision (E)(1) of this section shall spend those funds only forthe purposes that the department designates as approved forvocationaleducation expenses. Vocational educational expenses approved by the department shall include only expenses connected to the delivery of career-technical programming to career-technical students. The department shall require the school district to report data annually so that the department may monitor the district's compliance with the requirements regarding the manner in which funding received under division (E)(1) of this section may be spent.

(2) The department shall compute for each schooldistrictstate funds for vocational education associated services inaccordance with the following formula:

In any fiscal year, a school district receiving funds underdivision (E)(2) of this section, or through a transfer of fundspursuant to division (L) of section 3317.023 of the Revised Code,shall spendthose funds only forthe purposes that the departmentdesignates as approved for vocationaleducation associatedservices expenses, which mayinclude such purposes asapprenticeship coordinators, coordinators for othervocationaleducation services, vocationalevaluation, and other purposesdesignated by the department. Thedepartment may deny paymentunder division (E)(2) of this section toany district that thedepartment determines is not operating those services oris usingfunds paid underdivision (E)(2) of this section, or through atransfer of fundspursuant to division (L) of section 3317.023 ofthe Revised Code, for otherpurposes.

(F) The actual local share inany fiscal year for thecombination of special education andrelated services additionalweighted costs funding calculatedunder division (C)(1) of thissection, transportation fundingcalculated under divisions (D)(2)and (3) of this section, andvocational education and associatedservices additional weightedcosts funding calculated underdivisions (E)(1) and (2) of thissection shall not exceed for anyschool district the product ofthree and three-tenths mills times the district'srecognized valuation. The department annually shall payeachschooldistrict as an excess cost supplement any amount bywhichthe sumof the district's attributed local shares for thatfundingexceedsthat product. For purposes of calculating theexcess costsupplement:

(1) The attributed local share for special education andrelated services additional weighted costs funding is the amountspecified in division (C)(2) of this section.

(2) The attributed local share of transportation fundingequals the difference of the total amount calculated for thedistrict using the formula developed under division (D)(2) of thissection minus the actual amount paid to the district afterapplying the percentage specified in division (D)(3) of thissection.

(3) The attributed local share of vocational education andassociated services additional weighted costs funding is theamount determined as follows:

Sec. 3317.023. (A) Notwithstanding section 3317.022 oftheRevised Code, the amounts required to be paid to a districtunderthis chapter shall be adjusted by the amountof the computationsmade under divisions (B) to~~(M)~~(O) of thissection.

(1)"Classroom teacher" means a licensed employee whoprovides direct instruction to pupils, excluding teachers fundedfrom money paid to the district from federal sources; educationalservice personnel; and vocational and special education teachers.

(2)"Educational service personnel" shall not include suchspecialists funded from money paid to the district from federalsources or assigned full-time to vocational or special educationstudents and classes and may only include those persons employedin the eight specialist areas in a pattern approved by thedepartment of education under guidelines established by the stateboard of education.

(3)"Annual salary" means the annual base salary stated inthe state minimum salary schedule for the performance of theteacher's regular teaching duties that the teacher earns forservices rendered for the first full week of October of thefiscalyear for which the adjustment is made under division(C) of thissection. It shall not include any salary payments forsupplemental teachers contracts.

(4)"Regular student population" means the formula ADMplusthe number of students reported as enrolled in the districtpursuantto division (A)(1) of section 3313.981 of the RevisedCode;minus the number of students reported underdivision (A)(2)of section 3317.03 of the RevisedCode; minus the FTE of studentsreported underdivision (B)(6), (7), (8), (9), (10), (11),or (12) ofthatsection who are enrolledin a vocational educationclass orreceiving special education;and minus twenty per cent of thestudentsenrolled concurrently in a jointvocational schooldistrict.

(5)"State share percentage"has the samemeaning as insection3317.022of the Revised Code.

(6)"VEPD" means a school district or group of schooldistrictsdesignated by the department of education as beingresponsible for theplanning for and provision of vocationaleducationservices to students within the district or group.

(7)"Lead district" means a school district, including ajointvocational school district, designated by the department asaVEPD, or designated to provide primary vocational educationleadership within a VEPD composed of a group of districts.

(B) If the district employs less than one full-timeequivalent classroom teacher for each twenty-five pupils intheregular student population in any school district, deduct the sumof the amounts obtainedfrom the following computations:

(1) Divide the number of the district's full-timeequivalentclassroom teachers employed by one twenty-fifth;

(C) If a positive amount, add one-half of the amountobtained by multiplying the number of full-time equivalentclassroom teachers by:

(1) The mean annual salary of all full-time equivalentclassroom teachers employed by the district at their respectivetraining and experience levels minus;

(2) The mean annual salary of all such teachers at theirrespective levels in all school districts receiving paymentsunderthis section.

The number of full-time equivalent classroom teachers usedinthis computation shall not exceed one twenty-fifth of thedistrict's regular student population. In calculatingthedistrict's mean salary underthis division, those full-timeequivalent classroom teachers withthe highest training levelshall be counted first, those with thenext highest training levelsecond, and so on, in descendingorder. Within the respectivetraining levels, teachers with thehighest years of service shallbe counted first, the next highestyears of service second, and soon, in descending order.

(D) This division does not apply to a school district thathas entered into an agreement under division (A) of section3313.42 of the Revised Code. Deduct the amount obtained from thefollowing computations if the district employs fewer than fivefull-time equivalent educational service personnel, includingelementary school art, music, and physical education teachers,counselors, librarians, visiting teachers, school social workers,and school nurses for each one thousand pupils in theregularstudent population:

(1) Divide the number of full-time equivalent educationalservice personnel employed by the district by fiveone-thousandths;

(E) If a local school district, or a city or exemptedvillage school district to which a governing board ofaneducational service center provides servicespursuant to section3313.843 of the RevisedCode, deduct the amount of the paymentrequired for thereimbursement of the governing board undersection 3317.11 of the RevisedCode.

(F)(1) If the district is required to pay to or entitledtoreceive tuition from another school district under division(C)(2)or (3) of section 3313.64 or section 3313.65 of theRevised Code,or if the superintendent of public instruction isrequired todetermine the correct amount of tuition and make adeduction orcredit under section 3317.08 of the Revised Code,deduct andcredit such amounts as provided in division (J) ofsection 3313.64or section 3317.08 of the Revised Code.

(2) For each child for whom the district is responsiblefortuition or payment under division (A)(1) of section 3317.082 orsection 3323.091 of the Revised Code, deductthe amount of tuitionor payment for which the district is responsible.

(G) If the district has been certified by thesuperintendentof public instruction under section 3313.90 of theRevised Code asnot in compliance with the requirements of thatsection, deduct anamount equal to ten per cent of the amountcomputed for thedistrict under section 3317.022 of the RevisedCode.

(H) If the district has received a loan from acommerciallending institution for which payments are made by thesuperintendent of public instruction pursuant to division (E)(3)of section 3313.483 of the Revised Code, deduct an amount equaltosuch payments.

(I)(1) If the district is a party to an agreement enteredinto under division (D), (E), or (F) of section 3311.06 ordivision (B) of section 3311.24 of the Revised Code and isobligated to make payments to another district under such anagreement, deduct an amount equal to such payments if thedistrictschool board notifies the department in writing that itwishes tohave such payments deducted.

(2) If the district is entitled to receive payments fromanother district that has notified the department to deduct suchpayments under division (I)(1) of this section, add theamount ofsuch payments.

(J) If the district is required to pay an amount of fundstoa cooperative education district pursuant to a provisiondescribedby division (B)(4) of section 3311.52 or division(B)(8) ofsection 3311.521 of the Revised Code, deduct suchamounts asprovided under that provision and credit those amountsto thecooperative education district for payment to the districtunderdivision (B)(1) of section 3317.19 of the Revised Code.

(K)(1) If a district is educating a student entitled toattendschool in another district pursuant to a shared educationcontract, compact,or cooperative education agreement other thanan agreement entered intopursuant to section 3313.842 of theRevised Code, credit tothat educating district on an FTE basis both of the following:

(i) The fiscal year 2005 formula amount times the fiscal year 2005 cost ofdoingbusiness factor of the school district where the student isentitled to attendschool pursuant to section 3313.64 or 3313.65of the RevisedCode;

(ii) The sum of (the current formula amount times the current cost-of-doing-business factor of the school district when the student is entitled to attend school pursuant to section 3313.64 or 3313.65 of the Revised Code) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(b) An amount equal to the current formula amount times the statesharepercentage times any multiple applicable to the studentpursuant to section3317.013 or 3317.014 of the Revised Code.

(2) Deduct any amount credited pursuant to division (K)(1)ofthis section from amounts paid to the school district in whichthe student isentitled to attend school pursuant to section3313.64 or 3313.65 of theRevised Code.

(3) If the district is required by a shared educationcontract, compact,or cooperative education agreement to makepayments to an educational servicecenter, deduct the amounts frompayments to the district and add them to theamounts paid to theservice center pursuant to section 3317.11 of the RevisedCode.

(L)(1) If a district, including a joint vocational schooldistrict, is a lead district of a VEPD, credit to that districtthe amounts calculated for all the school districts within thatVEPD pursuant to division (E)(2) of section3317.022 of theRevised Code.

(2) Deduct from each appropriate district that is not a leaddistrict, the amount attributable to that district that iscredited to alead district under division (L)(1) of this section.

(M) If the department pays a joint vocational school district under division (G)(4) of section 3317.16 of the Revised Code for excess costs of providing special education and related services to a handicapped student, as calculated under division (G)(2) of that section, the department shall deduct the amount of that payment from the city, local, or exempted village school district that is responsible as specified in that section for the excess costs.

(N)(1) If the district reports an amount of excess cost for special education services for a child under division (C) of section 3323.14 of the Revised Code, the department shall pay that amount to the district.

(2) If the district reports an amount of excess cost for special education services for a child under division (C) of section 3323.14 of the Revised Code, the department shall deduct that amount from the district of residence of that child.

(O) If the department of job and family services presents to the department of education a payment request through an intrastate transfer voucher for the nonfederal share of reimbursements made to a school district for medicaid services provided by the district, the department of education shall pay the amount of that request to the department of job and family services and shall deduct the amount of that payment from the district.

Sec. 3317.024. In addition to the moneys paid to eligibleschool districts pursuant to section3317.022 of the Revised Code,moneysappropriated for the education programs in divisions (A) to(H), (J) to (L),(O), (P), and (R) of thissection shall bedistributed to school districts meetingthe requirements ofsection 3317.01 of the Revised Code;in the case of divisions (J)and (P) of thissection, to educational service centers asprovided in section3317.11 of the Revised Code; in the case ofdivisions (E),(M), and (N) of this section, tocounty MR/DDboards; in the case of division (R)of this section,to jointvocational school districts; in thecase of division (K) of thissection, tocooperative education school districts; and in thecase of division (Q) ofthis section, to the institutions definedunder section 3317.082 of theRevised Code providing elementary orsecondary education programs to childrenother than childrenreceiving special education under section 3323.091 of theRevisedCode. The following shall be distributed monthly, quarterly, orannually as may be determined by the state board of education:

(A) A per pupil amount to each school district thatestablishes a summer school remediation program that complieswithrules of the state board of education.

(B) An amount for each island school district and eachjointstate school district for the operation of each high schoolandeach elementary school maintained within such district andforcapital improvements for such schools. Such amounts shall bedetermined on the basis of standards adopted by the state boardofeducation.

(C) An amount for each school district operating classesforchildren of migrant workers who are unable to be inattendance inan Ohio school during the entire regular schoolyear. The amountsshall be determined on the basis of standardsadopted by the stateboard of education, except that paymentshall be made only forsubjects regularly offered by the schooldistrict providing theclasses.

(D) An amount for each school district with guidance,testing, and counseling programs approved by the state board ofeducation. The amount shall be determined on the basis ofstandards adopted by the state board of education.

(E) An amount for the emergency purchase of school busesasprovided for in section 3317.07 of the Revised Code;

(F) An amount for each school district required to paytuition for a child in an institution maintained by thedepartmentof youth services pursuant to section 3317.082 of theRevisedCode, provided the child wasnot included in the calculation ofthe district's average dailymembership for the preceding schoolyear.

(G) In fiscal year 2000 only, an amount to each schooldistrict for supplemental salary allowances for each licensedemployee exceptthose licensees serving as superintendents,assistant superintendents, principals, or assistant principals,whose term ofservice in any year is extended beyond the term ofservice of regularclassroom teachers, as described in section3301.0725 of the RevisedCode;

(H) An amount for adult basic literacy education for eachdistrict participating in programs approved by the state board ofeducation. The amount shall be determined on the basis ofstandards adopted by the state board of education.

(I) Notwithstanding section 3317.01 of the Revised Code, butonly untilJune 30, 1999,to each city, local, and exemptedvillage school district, anamount forconducting driver educationcourses at high schools for which thestate board of educationprescribes minimum standards and tojoint vocational andcooperative education schooldistricts and educational servicecenters, an amount for conductingdriver education courses topupils enrolled in a high school forwhich the state boardprescribes minimum standards. Nopayments shall be made underthis division after June 30, 1999.

(J) An amount for the approved cost of transporting~~developmentally handicapped~~ eligible pupils with disabilities attending a special education program approved by the department of education whom it is impossible orimpractical to transport by regular school bus in the course ofregular route transportation provided by the district or servicecenter. No district or service center is eligible to receive apayment under this division forthe cost of transporting any pupilwhom it transports by regularschool bus and who is included inthe district's transportationADM. The state board of educationshall establishstandards and guidelines for use by the departmentof educationin determining the approved cost of suchtransportation for eachdistrict or service center.

(K) An amount to each school district, including eachcooperative education school district, pursuant to section3313.81of the Revised Code to assist in providing free lunchesto needychildren and an amount to assist needy school districtsinpurchasing necessary equipment for food preparation. Theamountsshall be determined on the basis of rules adopted by thestateboard of education.

(L) An amount to each school district, for each pupilattending a chartered nonpublic elementary or high school withinthe district. The amount shall equal the amount appropriated forthe implementation of section 3317.06 of the Revised Code dividedby the average daily membership in grades kindergarten throughtwelve in nonpublic elementary and high schools within the stateas determined during the first full week in October of eachschoolyear.

(M) An amount for each county MR/DD board,distributed onthe basis of standards adopted by the state board of education,for the approved cost of transportation required for childrenattending special education programs operated by the county MR/DDboard under section 3323.09 of the Revised Code;

(N) An amount for each county MR/DD board,distributed onthe basis of standards adopted by the state board of education,for supportive home services for preschool children;

(O) An amount for each school district that establishes amentor teacher program that complies with rules of the stateboardof education. No school district shall be required to establishormaintain such a program in any year unless sufficient funds areappropriatedto cover the district's total costs for the program.

(P) An amount to each school district or educational servicecenter for the total number of gifted units approved pursuant tosection 3317.05 of the Revised Code. The amount for each suchunit shall be the sum of the minimum salary for the teacher oftheunit, calculated on the basis of the teacher's traininglevel andyears of experience pursuant tothe salary schedule prescribed inthe version of section 3317.13 of the Revised Codein effect priortoJuly 1, 2001,plus fifteenper cent ofthat minimum salaryamount, plus two thousand sixhundredseventy-eightdollars.

(Q) An amount to eachinstitution defined under section3317.082 of theRevised Code providing elementary orsecondaryeducation to children other than children receivingspecialeducation under section 3323.091 of theRevised Code. This amountfor anyinstitution in any fiscal year shall equal the total ofalltuition amounts required to be paid to the institution underdivision (A)(1) of section3317.082 of the Revised Code.

(R) A grant to each school district and joint vocationalschooldistrict that operates a "graduation, reality, anddual-role skills"(GRADS) program for pregnant and parentingstudents that isapproved by the department. The amount of thepayment shall be the district'sstate sharepercentage, as definedin section 3317.022 or 3317.16 of theRevised Code, times theGRADSpersonnel allowance times the full-time-equivalent number ofGRADSteachers approved by the department. The GRADS personnelallowance is $47,555 in fiscalyears 2004 ~~and~~, 2005, 2006, and 2007.

The state board of education or any other board ofeducationor governing board may provide for any resident of a districtoreducational service center territory anyeducational service forwhich funds are made available to theboard by the United Statesunder the authority of public law,whether such funds comedirectly or indirectly from the UnitedStates or any agency ordepartment thereof or through the stateor any agency, department,or political subdivision thereof.

Sec. 3317.026. (A) As used in this section,"refundedtaxes" means taxes charged and payable fromreal and tangiblepersonal property, including public utilityproperty, that havebeen found to have been overpaid as theresult of reductions inthe taxable value of such property and thathave been refunded,including any interest or penalty refundedwith those taxes. Iftaxes are refunded over a period of time pursuant todivision(B)(2), (3), or (4) of section 319.36 or division (C) ofsection5727.471 of the Revised Code,the total amount of taxes requiredto be refunded, excluding any interestaccruing after the day theundertaking is entered into, shall be considered tohave beenrefunded on the day the first portion of the overpayment is paidorcredited.

(B) Not later than the last day of February each year,eachcounty auditor shall certify to the tax commissioner, foreachschool district in the county, the amount of refunded taxesrefundedin the preceding calendar year and the reductions intaxable value thatresulted in those refunds, except forreductions in taxable value thatpreviously have been reported tothe tax commissioner on anabstract. If the tax commissionerdetermines thatthe amount of refunded taxes certified for aschool districtexceeds three per cent of the total taxes chargedand payable for currentexpenses of the school district for thecalendar year in which those taxeswere refunded, the taxcommissioner shall certify thereductions in taxable value thatresulted in those refunds on or before thefirst day of June tothe department of education. Upon receiving thecertification bythe tax commissioner, the department ofeducation shall reduce thetotal taxable value of the schooldistrict, as defined in section3317.02 of theRevised Code, by the total amount of thereductionsin taxable value that resulted in those refunds for the purpose ofcomputing the ~~state aid~~ SF-3 payment forthe school district for the currentfiscal year ~~under section3317.022 of the Revised Code~~. Theincrease in theamount of such aid resulting from the adjustmentrequired bythis section shall be paid to the school district onor beforethe ~~thirtieth~~ thirty-first day of ~~June~~ July ofthe ~~current~~ following fiscal year.

If an adjustment ismade under thisdivision intheamountof state aid paid to aschool district, the tax valuereductionsfrom which thatadjustment results shall not be used inrecomputing aid to aschool district under section 3317.027 of theRevised Code.

~~(D)~~(C) If a school district received a grant from thecatastrophic expenditures account pursuant to division (C) ofsection 3316.20 of the Revised Code on the basis of the samecircumstances for which an adjustment is made under this section,the amount of the adjustment shall be reduced and transferred inaccordance with division (C) of section 3316.20 of the RevisedCode.

(D) Not later than the first day of June each year, the taxcommissioner shall certify to the department of education foreachschool district the total of the increases in taxable valueabovethe amount of taxable value on which tax was paid, asprovided indivision (B)(1) or (2) of section 5727.47 of theRevised Code, asdetermined by the commissioner, and for which anotification wassent pursuant to section 5727.471 of the RevisedCode, in thepreceding calendar year.Upon receiving thecertification, thedepartment shall increasethe total taxablevalue, as defined insection 3317.02 of theRevised Code, of theschool district by thetotal amount of theincrease in taxablevalue certified by thecommissioner fortheschool district forthe purpose of computingthe schooldistrict's~~state aid~~ SF-3 payment for thefollowing fiscal year~~under sections3317.022 and 3317.0212 oftheRevised Code~~.

Sec. 3317.027. On or before the fifteenth day of May ofeachyear, the tax commissioner shall certify to the departmentofeducation:

(A) The amount by which applications filed under section5713.38 of the Revised Code or complaints filed under section5715.19 of the Revised Code resulted in a reduction in the secondpreceding year's taxable value in each school district in whichsuch a reduction occurred, and the amount by which such reductionreduced the district's taxes charged and payable for such year;and

(B) The taxes charged and payable for the second precedingtax year that were remitted under section 5713.081 of the RevisedCode and the taxable value against which such taxes were imposed.

Upon receipt of such certifications, the department shallrecompute the ~~state aid for such year under section3317.022 ofthe Revised Code~~ district's SF-3 payment and determine the amount ~~of aid~~ that the SF-3 paymentwould havebeen paid had the taxable value not been used in thecomputationmade under division (A)(1) of section 3317.021 of theRevised Codeandhad the taxes charged and payable not been includedin thecertification made under division (A)(3) of such section. Thedepartment shall ~~adjust~~ calculate the amount that the remainder of the fiscal year'spayments ~~so the district's total payments~~ should have been for the fiscal year~~equal~~ including the amount of the ~~recomputation~~ SF-3 payment as recomputed. The increase or decrease in the amount of aid resulting from the adjustment required under this section shall be paid to the school district on or before the thirty-first day of July of the following fiscal year.

If a school district received a grant from the catastrophicexpenditures account pursuant to division (C) of section 3316.20of the Revised Code on the basis of the same circumstances forwhich a recomputation is made under this section, the amount ofthe recomputation shall be reduced and transferred in accordancewith division (C) of section 3316.20 of the Revised Code.

Sec. 3317.028. (A) On or before the fifteenth day of May ineach calendar year prior to calendar year 2007, the tax commissioner shall determine for eachschool district whether the taxable value of all tangiblepersonalproperty, including utility tangible personal property,subject totaxation by the district in the preceding tax year wasless orgreater than the taxable value of such property duringthe secondpreceding tax year. If any such decrease exceeds fiveper cent ofthe district's tangible personal property taxablevalue includedin the total taxable value used in computing the district's~~state aidcomputation~~ SF-3 payment for the fiscal year that ends in thecurrent calendaryear, or if any such increase exceeds five percent of thedistrict's total taxable value used in computing the district's~~state aidcomputation~~ SF-3 payment for the fiscal year that ends in thecurrent calendaryear, the tax commissioner shall certify both of thefollowing tothedepartment of education:

(1) The taxable value of the tangible personal propertyincrease or decrease, including utility tangible personalpropertyincrease or decrease, which shall be considered a changeinvaluation;

(2) The decrease or increase in taxes charged and payableonsuch change in taxable value calculated in the same manner asindivision (A)(3) of section 3317.021 of the Revised Code.

(B) Notwithstanding division(A)of this section, whendetermining under that division incalendar year 2002 whether thetaxable value of tangiblepersonal property subject to taxation byeach school district inthe preceding tax year was less or greaterthan the taxablevalue of such property during the secondpreceding tax year, thetax commissioner shall exclude from thetaxable value for bothyears the tax value loss, as defined insection 5727.84 of the Revised Code On or before May 15, 2007, and the fifteenth day of May in each calendar year thereafter, the tax commissioner shall determine for each school district whether the taxable value of all utility tangible personal property subject to taxation by the district in the preceding tax year was less or greater than the taxable value of such property during the second preceding tax year. If any decrease exceeds five per cent of the district's tangible personal property taxable value included in the total taxable value used in the district's state aid computation for the fiscal year that ends in the current calendar year, or if any increase exceeds five per cent of the district's total taxable value used in the district's state aid computation for the fiscal year that ends in the current calendar year, the tax commissioner shall certify both of the following to the department of education:

(1) The taxable value of the utility tangible personal property increase or decrease, which shall be considered a change in valuation;

(2) The decrease or increase in taxes charged and payable on such change in taxable value calculated in the same manner as in division (A)(3) of section 3317.021 of the Revised Code.

(C) Upon receipt of ~~such~~ a certification specified in this section, the department ofeducation shall reduce or increase by the respective amountscertified, and the taxable value and the taxes charged and payablethat were used in computing the district's ~~state aid computation undersection 3317.022 of the Revised Code~~ SF-3 payment for the fiscalyear that endsin the current calendar year and shall recomputethe ~~state aid~~ SF-3 payment forsuch fiscal year. ~~During the last six monthsof the fiscal year,the~~ The department shall pay the district a sumequal to one-half ofthe recomputed payments in lieu of thepayments otherwise requiredunder ~~such sections~~ that section on or before the thirty-first day of July of the following fiscal year.

(D) If a school district received a grant from thecatastrophic expenditures account pursuant to division (C) ofsection 3316.20 of the Revised Code on the basis of the samecircumstances for which a recomputation is made under thissection, the amount of the recomputation shall be reduced andtransferred in accordance with division (C) of section 3316.20 ofthe Revised Code.

~~(a) In fiscal years prior to fiscal year 2004,~~ the quotientobtained bydividingthe five-year average number of childrenagesfive toseventeenresiding in the school district andliving in afamilyreceiving assistanceunder the Ohio works firstprogram oran antecedent program known as TANF or ADC, ascertified oradjustedundersection 3317.10of the Revised Code,by thedistrict'sthree-yearaverage formulaADM.

(b) Beginning in fiscal year 2004, theunduplicated number of children ages five to seventeen residing inthe school district and living in a family that has family incomenot exceeding the federal poverty guidelines and that receivesfamily assistance, as certified or adjusted under section 3317.10of the Revised Code, divided by the district's three-year averageformula ADM.

~~(c) The medical assistance program, including the healthystart program, established under Chapter 5111. of the RevisedCode;~~

(d) The children's health insurance program part Iestablished under section 5101.50 of the Revised Code or, prior tofiscal year 2000, an executive order issued under section 107.17of the Revised Code;

~~(e) The disability financial assistance program established underChapter 5115. of the Revised Code;~~

~~(f) The disability medical assistance program established under Chapter 5115. of the Revised Code.~~

~~(a) In fiscal years prior to fiscal year 2004,~~ the five-yearaverageof the total number ofchildren ages five to seventeenyearsresiding in the state andreceiving assistanceundertheOhio works first program or an antecedent program known asTANF orADC, divided bythesum of the three-year average formulaADMsforall schooldistricts in the state.

(b) Beginning in fiscal year 2004, the total unduplicated number of children ages five to seventeenresiding in the state and living in a family that has familyincome not exceeding the federal poverty guidelines and thatreceives family assistance, divided by the sum of the three-yearaverage formula ADMs for all school districts in the state.

~~(4)~~(3)"~~DPIA~~ Poverty index"means the quotient obtained by dividing theschool district's ~~DPIA~~ poverty percentageby the statewide ~~DPIA~~poverty percentage.

~~(5)"Federal povertyguidelines" has the same meaning as insection 5101.46 of theRevised Code.~~

~~(a) In fiscal years prior to fiscal year 2004,~~ thefive-yearaverage number of children ages five to seventeenresiding in theschool district and living in a family receivingassistance underthe Ohio works first program or an antecedentprogram known asTANF or ADC, as certified under section 3317.10of the RevisedCode;

~~(7)~~(5) "Kindergarten ADM" means the number ofstudents reportedunder section 3317.03 of the Revised Code as enrolled inkindergarten, excluding any kindergarten students reported under division (B)(3)(e) or (f) of section 3317.03 of the Revised Code.

~~(8)~~(6)"Kindergarten through third gradeADM" means theamountcalculated as follows:

(a) Multiply the kindergartenADM by the sum of one plus theall-daykindergarten percentage;

(c) Subtract from the sum calculated under division(A)(6)(b) of this section thenumber of special education studentsin grades kindergartenthrough three.

(9)"Statewide average teacher salary" meansforty-twothousandfour hundredsixty-ninedollars infiscal year2002,andforty-three thousandsix hundredfifty-eight dollarsinfiscalyear2003,whichincludes an amount for thevalue offringebenefits.

~~(10)~~ "Kindergarten through third grade ADM" shall not include any students reported under division (B)(3)(e) or (f) of section 3317.03 of the Revised Code.

(7)"All-day kindergarten" means akindergarten classthatisin session five days per week for notless than the samenumberofclock hours each day as for pupilsin grades one throughsix.

~~(11)~~(8)"All-day kindergarten percentage" means thepercentageofadistrict's actual total number of studentsenrolled inkindergarten who areenrolled in all-day kindergarten.

~~(a) In fiscal years prior to fiscal year 2004,~~the schoolbuildings in a district with percentages ofstudents in gradeskindergartenthrough threereceivingassistance under Ohio worksfirstat least as high as thedistrict-wide percentage ofstudentsreceivingsuchassistance.

(b) Beginning in fiscal year 2004, the school buildings inadistrict with percentages of students in grades kindergartenthrough three receiving family assistance at least as high as thedistrict-wide percentage of students receiving family assistance.

~~(c)~~ If, in any fiscal year, theinformationprovided by thedepartment ofjob and family servicesundersection 3317.10 of theRevisedCode is insufficient todeterminetheOhio works first ~~orfamily assistance~~ percentage in each building,"buildings withthehighest concentration of need" has themeaninggiven in rulesthatthe department of education shalladopt. Therules shallbase thedefinition of"buildings withthe highestconcentrationof need"on family income of students ingradeskindergartenthrough threein a manner that, to the extentpossiblewithavailable data,approximates the intent of thisdivisionanddivision ~~(G)~~(K) of thissection to designate buildingswhere theOhio works first ~~orfamily assistance~~percentage in those grades equals orexceeds thedistrict-wideOhio works first ~~orfamily assistance~~ percentage.

(B) In addition to theamounts required to be paid to aschool district under section3317.022 of the Revised Code, athe department of education shall compute and distribute to each school district ~~shallreceive~~ for poverty-based assistance the greater of the following:

(1) The amount thedistrict received in fiscalyear ~~1998~~ 2005 for disadvantaged pupil impact aid pursuant to ~~division (B) ofsection3317.023 of the Revised Code as itexisted at that time or the~~ Section 41.10 of Am. Sub. H.B. 95 of the 125th General Assembly, as amended, minus the amount deducted from the district under Section 16 of Am. Sub. S.B. 2 of the 125th General Assembly that year for payments to internet- and computer-based community schools;

(2) The sum of thecomputations made under divisions (C) to ~~(E)~~(I) ofthis section.

(C) A ~~supplemental~~ payment ~~that may be utilized~~ for ~~measuresrelated to safety and security and for remediation or similar~~ academic interventionprograms,if the district's poverty index is greater than or equal to 0.25, calculated as follows:

(1) If the DPIA indexof the school district is greater thanor equal tothirty-five-hundredths, but less than one, an amountobtained bymultiplying thedistrict's DPIA studentcount by twohundred thirtydollars;

(2) If the DPIA indexof the school district is greater thanor equal to one,an amount obtained by multiplying theDPIA indexby twohundred thirty dollars and multiplying that product by thedistrict's DPIA student count.

Except as otherwise provided in division (F) of this section,beginning with the school year that starts July 1, 2002, eachschool district annually shall use at least twenty per cent of thefunds calculated for the district under this division forintervention services required by section 3313.608 of the RevisedCode.

(1) If the district's poverty index is greater than or equal to 0.25, calculate the district's level one amount for large-group academic intervention for all students as follows:

(a) If the district's poverty index is greater than or equal to 0.25 but less than 0.75:

(i) "Large-group intervention units" equals the district's formula ADM divided by 20;

(ii) "Hourly rate" equals $20.00 in fiscal year 2006 and $20.40 in fiscal year 2007;

(iv) "Phase-in percentage" equals 0.60 in fiscal year 2006 and 1.00 in fiscal year 2007.

Where "large-group intervention units," "hourly rate," "level one hours," and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section.

(2) If the district's poverty index is greater than or equal to 0.75, calculate the district's level two amount for medium-group academic intervention for all students as follows:

(a) If the district's poverty index is greater than or equal to 0.75 but less than 1.50:

(i) "Medium group intervention units" equals the district's formula ADM divided by 15;

(ii) "Hourly rate," "level one hours," and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section.

(i) "Medium group intervention units" has the same meaning as in division (C)(2)(a)(i) of this section;

(ii) "Hourly rate" and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section;

(3) If the district's poverty index is greater than or equal to 1.50, calculate the district's level three amount for small-group academic intervention for impoverished students as follows:

(a) If the district's poverty index is greater than or equal to 1.50 but less than 2.50:

{level one hours + [level three hours X (poverty index – 1.50)]}

(i) "Small group intervention units" equals the quotient of (the district's poverty student count times 3) divided by 10;

(ii) "Hourly rate," "level one hours," and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section;

(i) "Small group intervention units" has the same meaning as in division (C)(3)(a)(i) of this section;

(ii) "Hourly rate" and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section;

Any district that receives funds under division (C)(2) or (3) of this section annually shall submit to the department of education by a date established by the department a plan describing how the district will deploy those funds. The deployment measures described in that plan shall comply with any applicable spending requirements prescribed in division (J)(6) of this section or with any order issued by the superintendent of public instruction under section 3317.017 of the Revised Code.

(D) A payment for all-day kindergarten if the~~DPIA~~ poverty index ofthe school district is greaterthan or equal to ~~one~~1.0 or if thedistrict's three-year average formula ADM exceededseventeenthousand five hundred~~, calculated~~. In addition, the department shall make a payment under this division to any school district that, in a prior fiscal year, qualified for this payment and provided all-day kindergarten, regardless of changes to the district's poverty index. The department shall calculate the payment under this division bymultiplying the all-daykindergarten percentageby thekindergarten ADM and multiplyingthat product by the formulaamount.

(E) A class-sizereduction payment based on calculating thenumber of newteachers necessary to achieve a lowerstudent-teacherratio, as follows:

(1) Determine or calculate a formula number of teachers peronethousand students based on the~~DPIA~~ poverty index of the schooldistrict as follows:

(a) If the ~~DPIA~~poverty index of the school district is less than~~six-tenths~~ 1.0, theformula number of teachers is ~~43.478~~ 50.0, which is thenumber ofteachers per one thousand students at a student-teacherratioof ~~twenty-three~~ twenty to one;

(b) If the ~~DPIA~~ poverty index of the schooldistrict is greater thanor equal to ~~six-tenths~~ 1.0, but less than~~two and one-half~~ 1.5, theformula number of teachers is calculated asfollows:

Where ~~43.478~~ 50.0 is the number of teachers per one thousandstudents at a student-teacher ratio of ~~twenty-three~~ twenty to one; ~~1.9~~0.5 isthe interval from a ~~DPIA~~poverty index of ~~six-tenths~~ 1.0 to a~~DPIA~~ poverty index of~~two andone-half~~ 1.5; and ~~23.188~~ 16.667 is the difference in the number ofteachers per one thousand students at a student-teacher ratio offifteen to one and the number of teachers per one thousandstudents at a student-teacher ratio of ~~twenty-three~~ twenty toone.

(c) If the ~~DPIA~~poverty index of the school district is greater thanor equal to~~two and one-half~~ 1.5, the formula number of teachers is66.667,which is the number of teachers per one thousand studentsat astudent-teacher ratio of fifteen to one.

(2) Multiply the formula number of teachers determined orcalculated indivision (E)(1) of this section by thekindergartenthrough third grade ADM for the district and divide thatproductby one thousand;

(a) Multiply the kindergarten through third grade ADMby~~43.478~~ 50.0, which is thenumber of teachers per one thousand studentsat a student-teacher ratio of~~twenty-three~~ twenty to one, and divide thatproduct by one thousand;

(b) Subtract the quotient obtained indivision (E)(3)(a) ofthis sectionfrom the product in division (E)(2) of this section.

(4) Multiply the greater of the difference obtained underdivision (E)(3) of this sectionor zero by the statewide averageteachers ~~salary~~ compensation. For this purpose, the "statewide average teacher compensation" is $53,680 in fiscal year 2006 and $54,941 in fiscal year 2007, which includes an amount for the value of fringe benefits.

(F) A payment for services to limited English proficient students, if the district's poverty index is greater than or equal to 1.0 and the proportion of its students who are limited English proficient, as reported in 2003 on its school district report issued under section 3302.03 of the Revised Code for the 2002-2003 school year, is greater than or equal to 2.0%, calculated as follows:

(1) If the district's poverty index is greater than or equal to 1.0, but less than 1.75, determine the amount per limited English proficient student as follows:

(2) If the district's poverty index is greater than or equal to 1.75, the amount per limited English proficient student equals:

(3) Multiply the per student amount determined for the district under division (F)(1) or (2) of this section by the number of the district's limited English proficient students, times a phase-in percentage of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007. For purposes of this calculation, the number of limited English proficient students for each district shall be the number determined by the department when it calculated the district's percentage of limited English students for its school district report card issued in 2003 for the 2002-2003 school year.

Not later than December 31, 2006, the department of education shall recommend to the general assembly and the director of budget and management a method of identifying the number of limited English proficient students for purposes of calculating payments under this division after fiscal year 2007.

(G) A payment for professional development of teachers, if the district's poverty index is greater than or equal to 1.0, calculated as follows:

(1) If the district's poverty index is greater than or equal to 1.0, but less than 1.75, determine the amount per teacher as follows:

(2) If the district's poverty index is greater than or equal to 1.75, the amount per teacher equals:

(4) Multiply the per teacher amount determined for the district under division (G)(1) or (2) of this section by the number of teachers determined under division (G)(3) of this section, times a phase-in percentage of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(H) A payment for dropout prevention, if the district is a big eight school district as defined in section 3314.02 of the Revised Code, calculated as follows:

Where "phase-in percentage" equals 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(I) An amount for community outreach, if the district is an urban school district as defined in section 3314.02 of the Revised Code, calculated as follows:

Where "phase-in percentage" equals 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(J) This division applies only to school districts whose~~DPIA~~ poverty index is ~~one~~ 1.0 or greater.

(1) Each school district subject to this division shallfirst utilizefunds received under this section so that, whencombined with other fundsof the district, sufficient funds existto provide all-daykindergarten to at least the number of childrenin the district's all-daykindergarten percentage.

(2) ~~Up to an amount equal to the district's DPIA indexmultiplied byits DPIA student count multiplied bytwo hundredthirtydollars of the moneydistributed underthissection may beutilized~~ Each school district shall use its payment under division (F) of this section for one or more of the following purposes:

(a) To hire teachers for limited English proficient students or other personnel to provide intervention services for those students;

(c) To provide other services to assist those students in passing the third-grade reading achievement test, and to provide for those students the intervention services required by section 3313.608 of the Revised Code.

(3) Each school district shall use its payment under division (G) of this section for professional development of teachers or other licensed personnel providing educational services to students only in one or more of the following areas:

In addition, each district shall use the payment only to implement programs identified on a list of eligible professional development programs provided by the department of education. The department annually shall provide the list to each district receiving a payment under division (G) of this section. However, a district may apply to the department for a waiver to implement an alternative professional development program in one or more of the areas specified in divisions (J)(3)(a) to (c) of this section. If the department grants the waiver, the district may use its payment under division (G) of this section to implement the alternative program.

(4) Each big eight school district shall use its payment under division (H) of this section either for preventing at-risk students from dropping out of school, for safety and security measures described in division (J)(5)(b) of this section, for academic intervention services described in division (J)(6) of this section, or for a combination of those purposes. Not later than September 1, 2005, the department of education shall provide each big eight school district with a list of dropout prevention programs that it has determined are successful. The department subsequently may update the list. Each district that elects to use its payment under division (H) of this section for dropout prevention shall use the payment only to implement a dropout prevention program specified on the department's list. However, a district may apply to the department for a waiver to implement an alternative dropout prevention program. If the department grants the waiver, the district may use its payment under division (H) of this section to implement the alternative program.

(5) Each urban school district that has a poverty index greater than or equal to 1.0 shall use its payment under division (I) of this section for one or a combination of the following purposes:

(a) To hire or contract for community liaison officers, attendance or truant officers, or safety and security personnel;

(b) To implement programs designed to ensure that schools are free of drugs and violence and have a disciplined environment conducive to learning;

(6) Each school district with a poverty index greater than or equal to 1.0 shall use the amount of its payment under division (C) of this section, and may use any amount of its payment under division (H) or (I) of this section, for ~~one or both of thefollowing:~~

~~(a) Programs designed to ensure thatschools are free ofdrugs and violence and have a disciplinedenvironment conducive tolearning;~~

~~(b) Remediation~~ academic intervention services for students who havefailed or are indanger of failing any of the testsadministeredpursuant tosection 3301.0710 of the Revised Code.

Beginning with the school year that starts on July 1, 2002,each school district shall use at least twenty per cent of thefunds set aside for the purposes of divisions (F)(2)(a) and (b) ofthis section to provide, including intervention services required by section3313.608 of the Revised Code. No district shall spend any portion of its payment under division (C) of this section for any other purpose. Notwithstanding any provision to the contrary in Chapter 4117. of the Revised Code, no collective bargaining agreement entered into after the effective date of this amendment shall require use of the payment for any other purpose.

~~(3)~~(7) Except as otherwise required by division ~~(G)~~(K) orpermitted under division ~~(K)~~(O) of this section,all ~~other~~ remaining fundsdistributed under this section to districts ~~subject tothisdivision~~ with a poverty index greater than or equal to 1.0 shall be utilized for the purpose ofthe third gradeguarantee. The third grade guarantee consistsof increasing theamount ofinstructional attention received per pupil inkindergartenthrough third grade, either by reducing the ratio ofstudents toinstructional personnel or by increasing the amount ofinstruction and curriculum-related activities by extending thelength of the school day or the school year.

School districts may implement a reduction of the ratio ofstudents to instructional personnel through any or all of thefollowing methods:

(b) Employing full-time educational aides oreducationalparaprofessionals issued a permit or license undersection3319.088 of the Revised Code;

Districts may extend the school day either by increasingtheamount of time allocated for each class, increasing thenumber ofclasses provided per day, offering optional academic-relatedafter-school programs, providing curriculum-relatedextracurricular activities, or establishing tutoring orremedialservices for students who have demonstrated aneducational need.In accordance with section 3319.089 of the Revised Code, adistrictextending the school day pursuant to this division mayutilize a participantof the work experience program who has achild enrolled in a public school inthat district and who isfulfilling the work requirements of that program byvolunteeringor working in that public school. If the work experience programparticipant is compensated, the school district may use the fundsdistributedunder this section for all or part of thecompensation.

Districts may extend the school year either through addingregular days of instruction to the school calendar or byprovidingsummer programs.

~~(G)~~(K) Each district ~~subject to division(F) of this section~~shall not expend any fundsreceived under division (E) of thissection inany school buildings that are not buildings with thehighest concentration ofneed, unless there is a ratio ofinstructional personnel to students of nomore than fifteen to onein each kindergarten and first grade class in allbuildings withthe highest concentration of need. This division does not requirethat the funds used inbuildings with the highest concentration ofneed be spent solelyto reduce the ratio of instructionalpersonnel to students inkindergarten and first grade. A schooldistrict may spend thefunds in those buildings in any mannerpermitted by division~~(F)(3)~~(J)(7) of this section, but maynot spendthe money in other buildings unless the fifteen-to-one ratiorequired by this division is attained.

~~(H)~~(L)(1) By the first day of August of each fiscal year, eachschool district wishing to receive any funds under division (D)ofthis section shall submit to the department ofeducation anestimate of itsall-day kindergarten percentage. Each districtshall update its estimate throughout thefiscal year in the formand manner required by the department,and the department shalladjust payments under this section toreflect the updates.

(2) Annually by the end of December, the department ofeducation, utilizing data from the information systemestablishedunder section 3301.0714of the Revised Code and after consultationwith thelegislative office of education oversight, shalldetermine for each school district subject to division ~~(F)~~(J) ofthissection whether in the preceding fiscal year thedistrict's ratioof instructional personnel to students and its numberofkindergarten students receiving all-day kindergarten appearreasonable, given the amounts of money the districtreceived forthat fiscal year pursuant to divisions (D) and (E) ofthissection. If the department is unable to verify from thedataavailable that students are receiving reasonable amounts ofinstructional attention and all-day kindergarten, given the fundsthe districthas received under this sectionand that class-sizereductionfunds are being used in school buildings with thehighest concentration ofneed as required by division ~~(G)~~(K) of thissection, thedepartment shall conduct a more intensiveinvestigation toensure that funds have been expended as requiredby thissection. The department shall file an annual report ofits findings underthis division with the chairpersons of thecommittees in each house of thegeneral assembly dealing withfinance and education.

~~(I) Any~~ (M)(1) Each school district with a ~~DPIA~~ poverty index less than ~~one~~1.0 anda three-year average formula ADM exceeding seventeen thousand fivehundred shall first utilize funds receivedunderthis section sothat,when combined with other funds of thedistrict,sufficientfundsexist to provide all-day kindergartento at least thenumberofchildren in the district's all-daykindergartenpercentage.~~Sucha district~~

(2) Each school district with a poverty index less than 1.0 that receives a payment under division (C) of this section shall use its payment under that division in accordance with all requirements of division (J)(6) of this section.

(3) Each school district with a poverty index less than 1.0 that receives a payment under division (I) of this section shall use its payment under that division for one or a combination of the following purposes:

(a) To hire or contract for community liaison officers, attendance or truant officers, or safety and security personnel;

(b) To implement programs designed to ensure that schools are free of drugs and violence and have a disciplined environment conducive to learning;

(4) Each school district to which division (M)(1), (2), or (3) of this section applies shall expend ~~at leastseventy percent of~~ theremainingfunds received under thissection, andany otherdistrict with a~~DPIA~~poverty index less than~~one~~ 1.0 shall expend ~~atleastseventy per cent of~~all funds receivedunder thissection, for anyof the followingpurposes:

~~(1)~~(a) The purchase of technology forinstructional purposes for remediation;

~~(3)~~(c) Reduction of class sizes in grades kindergarten through three, as described in division (J)(7) of this section;

~~(5)~~(e) Dropout prevention programs approved by the department of education under division (J)(4) of this section;

~~(6)~~(f) Guaranteeing that all third graders areready toprogress to more advanced work;

~~(9)~~(i) Head start or, preschool, early childhood education, or early learning programs;

~~(10)~~(j) Reading improvement and remediation programs describedby thedepartment of education;

~~(11)~~(k) Programs designed to ensure that schoolsare free ofdrugs and violence and have a disciplinedenvironment conducive tolearning;

~~(12)~~(l) Furnishing, free of charge, materials used incoursesof instruction, except for the necessary textbooksor electronictextbooks required to be furnished without charge pursuant tosection 3329.06 of the Revised Code, to pupils living in familiesparticipating in Ohio works first in accordance with section3313.642 of the Revised Code;

~~(13)~~(m) School breakfasts provided pursuant to section3313.813of the Revised Code.

~~Each district shall submit to the department, in such formatand at suchtime as the department shall specify, a report on theprograms for which itexpended funds under this division.~~

~~(J)~~(N) If at any time the superintendent of public instructiondetermines that a school district receiving fundsunder division(D) of this section has enrolled less than the all-daykindergartenpercentage reported for that fiscal year, thesuperintendentshall withhold from the funds otherwise due thedistrict underthis section a proportional amount as determined bythe difference in thecertified all-daykindergarten percentageand the percentage actually enrolled inall-day kindergarten.

The superintendent shall also withhold an appropriate amountof fundsotherwise due a district for any other misuse of fundsnot in accordance withthis section.

~~(K)~~(O)(1) A district may use a portion of the funds calculatedforit under division (D) of this section to modify or purchaseclassroom space to provide all-day kindergarten, if both of thefollowingconditions are met:

(a) The district certifies to the department, in a manneracceptable to the department, that it has a shortage of space forproviding all-day kindergarten.

(b) The district provides all-day kindergarten to the numberof children inthe all-day kindergarten percentage it certifiedunder this section.

(2) A district may use a portion of the funds described indivision ~~(F)(3)~~(J)(7) of this section to modify or purchase classroomspace to enable it to further reduce class size in gradeskindergarten through two with a goal of attaining class sizes offifteen students per licensed teacher. To do so, the districtmust certify its need for additional space to the department, in amanner satisfactory to the department.

(1) "Total taxes charged and payable for currentexpenses"means the sum of the taxes charged and payable ascertified underdivision (A)(3)(a) of section 3317.021 of theRevised Code lessany amounts reported under division (A)(3)(b) of thatsection,andthe tax distribution for the preceding year under any schooldistrict income tax levied by the district pursuant toChapter5748. of the Revised Code to the extent therevenue from theincome tax is allocated or apportioned to currentexpenses.

(2)"Charge-off amount" means ~~the product obtained bymultiplying~~ two and three-tenths per cent multipled by (the sum of recognizedvaluation and property exemption value).

(3) Until fiscal year 2003, the "actual local share ofspecial education,transportation, and vocational educationfunding" for any schooldistrict means the sum of the district'sattributed local sharesdescribed in divisions (F)(1) to (3) ofsection 3317.022 of theRevised Code. Beginning in fiscal year2003, the "actual local share of special education,transportation, and vocational education funding" means that summinus the amount of any excess cost supplementpayment calculatedfor the district under division (F) ofsection 3317.022 of theRevised Code.

(4) "Current expense revenues from the tangible property tax replacement fund" means payments received from the school district tangible property tax replacement fund or the general revenue fund under section 5751.21 of the Revised Code for fixed-rate levies for current expenses and for fixed-sum levies for current expenses, including school district emergency levies under sections 5705.194 to 5705.197 of the Revised Code.

(B) Upon receiving the certifications under section 3317.021ofthe Revised Code, the department of education shall determinefor each city,local, and exempted village school district whetherthedistrict's charge-off amount is greater than the sum of the district'stotaltaxes charged and payable for currentexpenses and current expense revenues from the tangible property tax replacement fund, and if itthe charge-off amount is greater,shall pay the district the amount of thedifference. Apayment shall not bemade to any school districtfor which thecomputation under division(A) of section 3317.022of the RevisedCodeequals zero.

(C)(1) If a district's charge-off amount is equal to orgreaterthan the sum of its totaltaxes charged andpayable for currentexpenses and current expense revenues from the tangible property tax replacement fund, thedepartment shall, in addition tothe paymentrequired underdivision (B) of this section, pay thedistrict theamount ofits actual local share of specialeducation,transportation, and vocationaleducationfunding.

(2) If a district's charge-off amount is less than the sum of itstotaltaxes charged and payable for current expenses and current expense revenues from the tangible property tax replacement fund,the departmentshall pay the district any amount bywhich itsactual local shareofspecial education,transportation, and vocational educationfunding exceeds the sum of itstotaltaxes charged and payable for currentexpenses and current expense revenues from the tangible property tax replacement fund minus itscharge-off amount.

(D) If a school district that received a payment under division (B) or (C) of this section in the prior fiscal year is ineligible for payment under those divisions in the current fiscal year, the department shall determine if the ineligibility is the result of a property tax or income tax levy approved by the district's voters to take effect in tax year 2005 or thereafter. If the department determines that is the case, and calculates that the levy causing the ineligibility exceeded by at least one mill the equivalent millage of the prior year's payment under divisions (B) and (C) of this section, the department shall make a payment to the district for the first three years that the district loses eligibility for payment under divisions (B) and (C) of this section, as follows:

(1) In the first year of ineligibility, the department shall pay the district seventy-five per cent of the amount it last paid the district under divisions (B) and (C) of this section.

(2) In the second year of ineligibility, the department shall pay the district fifty per cent of the amount it last paid the district under those divisions.

(3) In the third year of ineligibility, the department shall pay the district twenty-five per cent of the amount it last paid the district under those divisions.

(E) A district that receives payment under division (D) of this section and subsequently qualifies for payment under division (B) or (C) of this section is ineligible for future payments under division (D) of this section.

Sec. 3317.0217. The department of education shall annually compute and pay state parity aid to school districts, as follows:

(A) Calculate the local wealth per pupil of each schooldistrict, which equals the following sum:

(1) Two-thirds times the quotient of (a) the district'srecognized valuation divided by (b) its formula ADM; plus

(2) One-third times the quotient of (a) the average of thetotal federal adjusted gross income of the school district'sresidents for the three years most recently reported under section3317.021 of the Revised Code divided by (b) its formula ADM.

(B) Rank all school districts in order of local wealth perpupil, from the district with the lowest local wealth per pupil tothe district with the highest local wealth per pupil.

(1) "Payment percentage," for purposes of division (C) ofthis section, equals 20% infiscal year 2002, 40%in fiscal year2003, 58% in fiscal year 2004, 76% in fiscal year2005, and 100%afterfiscal year 2005.

(2) Nine and one-half mills (0.0095) is the generalassembly'sdetermination of the average number of effectiveoperating millsthat districts in the seventieth to ninetiethpercentiles ofvaluations per pupil collected in fiscal year 2001above therevenues required to finance their attributed localshares of thecalculated cost of an adequate education. This wasdetermined by(a) adding the district revenues from operatingproperty taxlevies and income tax levies, (b) subtracting fromthat total thesum of (i) twenty-three mills times adjustedrecognized valuationplus (ii) the attributed local shares ofspecial education,transportation, and vocational educationfunding as described indivisions (F)(1) to (3) of section3317.022 of the Revised Code,and (c) converting the result to aneffective operating propertytax rate Seven and one-half mills (0.0075) is an adjustment to the original parity aid standard of nine and one-half mills, to account for the general assembly's policy decision to phase-out use of the cost-of-doing-business factor in the base cost formula.

~~(3)~~(2) The "threshold local wealth per pupil" is the localwealth per pupil of the school district with thefour-hundred-ninetieth lowest local wealth per pupil.

If the result of the calculation for a school district underdivision (C) of this section is less than zero, the district's perpupil parity aid shall be zero.

(D) Compute the per pupil alternative parity aid for eachschool district that has a combination of an income factor of 1.0or less, a ~~DPIA~~ poverty index of 1.0 or greater, and a fiscal year 2005cost-of-doing-business factor of 1.0375 or greater, in accordancewith the following formula:

(1) "~~DPIA~~ Poverty index" has the same meaning as in section 3317.029of the Revised Code.

(2) "Payment percentage," for purposes of division (D) ofthis section, equals 50% in fiscal year 2002 and 100% after fiscalyear 2002.

(E) Pay each district that has a combination of an incomefactor of 1.0 or less, a ~~DPIA~~ poverty index of 1.0 or greater, and a fiscal year 2005cost-of-doing-business factor of 1.0375 or greater, the greater ofthe following:

(1) The product of the district's per pupil parity aidcalculated under division (C) of this section times its net formulaADM;

(2) The product of its per pupil alternative parity aidcalculated under division (D) of this section times its net formulaADM.

(F) Pay every other district the product of its per pupilparity aid calculated under division (C) of this section times its netformula ADM.

(G) As used in divisions (E) and (F) of this section, "net formula ADM" means formula ADM minus the number of internet- and computer-based community school students and scholarship students reported under divisions (B)(3)(e) and (f) of section 3317.03 of the Revised Code.

Sec. 3317.03. Notwithstanding divisions(A)(1), (B)(1), and(C) of this section, anystudent enrolled in kindergarten morethan half time shall be reported asone-half student under thissection.

(A) The superintendent of each city and exemptedvillageschool district and of each educational service center shall,forthe schools under the superintendent's supervision,certify to thestate board ofeducation on or before the fifteenth day of Octoberin each year forthe first full school week in October the formulaADM~~,which~~. Beginning in fiscal year 2006, each superintendent also shall certify to the state board, for the schools under the superintendent's supervision, the formula ADM for the third full week in February. If a school under the superintendent's supervision is closed for one or more days during that week due to hazardous weather conditions or other circumstances described in the first paragraph of division (B) of section 3317.01 of the Revised Code, the superintendent may apply to the superintendent of public instruction for a waiver, under which the superintendent of public instruction may exempt the district superintendent from certifying the formula ADM for that school for that week and specify an alternate week for certifying the formula ADM of that school.

The formula ADM shall consist of the average daily membership duringsuch week of thesum of the following:

(1) On an FTE basis, the number ofstudents in gradeskindergarten through twelve receiving any educationalservicesfrom the district,except that the following categories ofstudents shall not beincluded in the determination:

(b) Adjacent or other district students enrolled in thedistrict under an open enrollment policy pursuant to section3313.98 of the Revised Code;

(c) Students receiving services in the district pursuant toa compact,cooperative education agreement, or a contract, but whoare entitled to attendschool in another district pursuant tosection 3313.64 or 3313.65 of theRevised Code;

(d) Students for whom tuition ispayable pursuant tosections 3317.081 and 3323.141 of theRevised Code.

(2) On an FTE basis, the number ofstudents entitled toattend school in the district pursuant tosection 3313.64 or3313.65 of theRevised Code, but receiving educationalservices ingrades kindergarten through twelve from one or more of thefollowing entities:

(a) A community school pursuant to Chapter3314. of theRevised Code, including any participation in a collegepursuant toChapter 3365. of the Revised Code while enrolled in such communityschool;

(b) An alternative school pursuant to sections 3313.974 to3313.979 of the Revised Code as described in division(I)(2)(a) or(b) of this section;

(c) A college pursuant to Chapter 3365. of the Revised Code,exceptwhen the student is enrolled in the college while alsoenrolled in a communityschool pursuant to Chapter 3314. of theRevised Code;

(d) An adjacent or otherschool district under an openenrollment policy adopted pursuantto section 3313.98 of theRevised Code;

(f) Another school districtunder a cooperative educationagreement, compact, or contract;

(g) A chartered nonpublic school with a scholarship paid under section 3310.08 of the Revised Code.

(3) Twenty per cent of the number of students enrolled in a jointvocational school district or under a vocational educationcompact,excluding any studentsentitled to attend school in thedistrict under section 3313.64 or3313.65 of the Revised Code whoare enrolled in anotherschool district through an open enrollmentpolicy as reported underdivision (A)(2)(d) of this section andthen enroll ina joint vocational school district or under avocational educationcompact;

(4) The number of handicapped children, other thanhandicapped preschool children, entitled to attend school in thedistrict pursuant to section 3313.64 or 3313.65 of theRevisedCode who are placed with acounty MR/DD board, minus thenumber ofsuch children placed with a countyMR/DD board in fiscal year1998. If this calculation produces a negative number, thenumberreported under division(A)(4) of this section shall bezero.

(5) In the case of the report submitted for the third full week in February, or the alternative week if specified by the superintendent of public instruction, the number of students reported under division (A)(1) or (2) of this section for the first full week of the preceding October but who since that week have received high school diplomas.

(B) To enable thedepartment of education to obtain the dataneeded to completethe calculation of payments pursuant to thischapter, inaddition to the formula ADM, eachsuperintendent shallreport separately the following studentcounts for the same week for which formula ADM is certified:

(1) The total average daily membership in regular dayclasses included in the report under division (A)(1) or (2) ofthissection for kindergarten, and each of grades one throughtwelve inschools under thesuperintendent's supervision;

(2) The number of all handicappedpreschoolchildrenenrolled as of the first day ofDecember in classes in thedistrict that are eligible for approval under division (B) of section 3317.05 of the RevisedCodeand the number of those classes, which shall be reported notlater than thefifteenth day of December, in accordance with rulesadopted underthat section;

(3) The number of children entitled to attend school inthedistrict pursuant to section 3313.64 or 3313.65 of theRevisedCode who are ~~participating~~:

(a) Participating in apilot project scholarship programestablished under sections3313.974 to 3313.979 of the RevisedCode as described in division(I)(2)(a) or (b) of this section~~,are enrolled~~;

(b) Enrolled in a college under Chapter3365. of the Revised Code,except when thestudent is enrolled in the college while alsoenrolled in a community schoolpursuant to Chapter 3314. of theRevised Code~~, are enrolled~~;

(d) Enrolled in acommunity schoolestablished under Chapter 3314.of the RevisedCode that is not an internet- or computer-based community school as defined in section 3314.02 of the Revised Code, including any participation in a collegepursuant to Chapter3365. of the Revised Code while enrolled in such communityschool~~,or are participating~~;

(e) Enrolled in an internet- or computer-based community school, as defined in section 3314.02 of the Revised Code, including any participation in a college pursuant to Chapter 3365. of the Revised Code while enrolled in the school;

(f) Enrolled in a chartered nonpublic school with a scholarship paid under section 3310.08 of the Revised Code;

(g) Participating in aprogram operated by a county MR/DD boardor a stateinstitution;

(5) The average daily membership ofhandicapped childrenreported under division (A)(1) or (2) of thissection receivingspecial educationservicesfor the category onehandicap describedin division (A)of section 3317.013 of theRevised Code;

(6) The average daily membership of handicapped childrenreported underdivision (A)(1) or (2) of this section receivingspecialeducation servicesfor category twohandicaps describedin division(B)of section 3317.013 of theRevised Code;

(7) The average daily membership of handicapped childrenreported underdivision (A)(1) or (2) of this sectionreceivingspecial education services forcategory three handicapsdescribedin division(C)ofsection3317.013 of the Revised Code;

(8)The average dailymembership of handicapped childrenreported under division (A)(1)or (2) of this section receivingspecial education services forcategory four handicaps describedin division (D) of section3317.013 of the Revised Code;

(9) The average daily membership of handicapped childrenreported under division (A)(1) or (2) of this section receivingspecial education services for the category five handicapdescribedin division (E) of section 3317.013 of the Revised Code;

(10) The average daily membership of handicapped childrenreported under division (A)(1) or (2) of this section receivingspecial education services for category six handicaps described indivision (F) of section 3317.013 of the Revised Code;

(11) The average daily membership of pupils reported underdivision(A)(1) or (2) of this section enrolled in category onevocational education programs or classes, described in division(A) of section 3317.014 of the Revised Code, operated by theschooldistrict or by another district, other than a jointvocational schooldistrict, or by an educational service center, excluding any student reported under division (B)(3)(e) of this section as enrolled in an internet- or computer-based community school, notwithstanding division (C) of section 3317.02 of the Revised Code and division (C)(3) of this section;

(12) The average daily membership of pupils reportedunderdivision(A)(1) or (2) of this section enrolled in categorytwovocationaleducation programs or services, described indivision(B) of section3317.014 of the Revised Code, operated bytheschool district or another school district,other than a jointvocational school district, or by an educational servicecenter, excluding any student reported under division (B)(3)(e) of this section as enrolled in an internet- or computer-based community school, notwithstanding division (C) of section 3317.02 of the Revised Code and division (C)(3) of this section;

(13) The average number ofchildren transported by theschool district on board-owned or contractor-owned and -operatedbuses,reported in accordance with rules adopted bythe departmentof education;

(14)(a) The number of children, other thanhandicappedpreschool children, the district placed with acounty MR/DD boardin fiscalyear 1998;

(b) The number of handicapped children, other thanhandicapped preschool children, placed with a countyMR/DD boardin the currentfiscal year to receive specialeducation servicesfor the category one handicapdescribed indivision (A) ofsection3317.013of the RevisedCode;

(c) The number of handicapped children, other thanhandicapped preschool children, placed with a countyMR/DD boardin the currentfiscal year to receive specialeducation servicesfor category two handicapsdescribed indivision (B) ofsection3317.013of the RevisedCode;

(d) The number of handicapped children, other thanhandicapped preschool children, placed with a countyMR/DD boardin the currentfiscal year to receive specialeducationservicesfor category three handicaps described indivision(C) of section3317.013 of the RevisedCode;

(e) The number of handicapped children, other thanhandicapped preschool children, placed with a county MR/DD boardin the current fiscal year to receive special education servicesfor category four handicaps described in division (D) of section3317.013 of the Revised Code;

(f) The number of handicapped children, other thanhandicapped preschool children, placed with a county MR/DD boardin the current fiscal year to receive special education servicesfor the category five handicap described in division (E) ofsection3317.013 of the Revised Code;

(g) The number of handicapped children, other thanhandicapped preschool children, placed with a county MR/DD boardin the current fiscal year to receive special education servicesfor category six handicaps described in division (F) of section3317.013 of the Revised Code.

(C)(1) Except as otherwise provided in this section forkindergarten students, the average daily membership in divisions(B)(1) to(12) of this section shall be basedupon the numberoffull-time equivalent students. The state board ofeducationshalladopt rules defining full-time equivalent students and fordetermining the average daily membership therefromfor thepurposes of divisions (A), (B), and(D) of this section.

(2) A student enrolled in a community school establishedunder Chapter 3314. of the Revised Code shall be counted in theformula ADM and, if applicable, the category one, two, three,four, five, or sixspecial education ADM of the school district inwhich the studentis entitled to attend school under section3313.64 or 3313.65 ofthe Revised Code for the same proportion ofthe school year thatthe student is counted in the enrollment ofthe community schoolfor purposes of section 3314.08 of theRevised Code.

(3) No childshall becounted as more than a total of onechild in thesum ofthe average daily memberships of aschooldistrict under division(A), divisions(B)(1) to(12), or division(D) of thissection,except as follows:

(a) A child with a handicap described in section 3317.013ofthe Revised Code may becounted both in formulaADM and incategory one, two, three,four, five, or sixspecial educationADM and, if applicable, incategory one or twovocationaleducationADM. As provided indivision (C) of section3317.02 ofthe Revised Code,such a childshall be counted incategory one,two, three, four, five, orsix special educationADM in the sameproportion that the child iscounted in formulaADM.

(b) A child enrolled in vocational education programs orclasses describedin section3317.014 of the Revised Codemay becounted both in formula ADM andcategory one or twovocationaleducation ADM and, if applicable, incategory one, two,three,four, five, or sixspecial education ADM. Such a childshall becounted in categoryone or two vocational education ADMinthesame proportion as thepercentage of time that the childspends inthevocationaleducation programs or classes.

(4) Based on the information reportedunder this section,thedepartment of education shall determine the totalstudentcount,as defined in section 3301.011 of the Revised Code, foreachschool district.

(D)(1) The superintendent of each joint vocational schooldistrictshall certify tothe superintendent of public instructionon or before the fifteenthday of October in each year for thefirst full school week inOctober the formula ADM~~, which~~. Beginning in fiscal year 2006, each superintendent also shall certify to the state superintendent the formula ADM for the third full week in February. If a school operated by the joint vocational school district is closed for one or more days during that week due to hazardous weather conditions or other circumstances described in the first paragraph of division (B) of section 3317.01 of the Revised Code, the superintendent may apply to the superintendent of public instruction for a waiver, under which the superintendent of public instruction may exempt the district superintendent from certifying the formula ADM for that school for that week and specify an alternate week for certifying the formula ADM of that school.

The formula ADM, exceptas otherwise provided in this division, shallconsist oftheaverage dailymembership during such week, on anFTE basis, of thenumber ofstudents receiving any educationalservices from thedistrict,including students enrolled in acommunity school established under Chapter 3314. of the RevisedCode who are attending the joint vocational district under anagreement between the district board of education and thegoverning authority of the community school and are entitled toattend school in a city, local, or exempted village schooldistrict whose territory is part of the territory of the jointvocational district. In the case of the report submitted for the third week in February, or the alternative week if specified by the superintendent of public instruction, the superintendent of the joint vocational school district may include the number of students reported under division (D)(1) of this section for the first full week of the preceding October but who since that week have received high school diplomas.

The following categoriesof students shall not beincludedin the determinationmade under division (D)(1) of this section:

(b) Adjacent or other district joint vocational studentsenrolledin the district under an open enrollment policy pursuantto section3313.98 of the Revised Code;

(c) Students receiving services in the district pursuanttoa compact, cooperative education agreement, or a contract, but whoareentitled to attend school in a city, local, orexemptedvillage school district whose territory is not part oftheterritory of the joint vocational district;

(d) Students for whom tuition is payable pursuant tosections3317.081 and 3323.141 of the Revised Code.

(2) To enable the department of education to obtain the dataneeded to complete the calculation of payments pursuant to thischapter,in addition to the formula ADM, each superintendent shallreportseparately the average daily membership included in thereport under division(D)(1) of this section for each of thefollowing categories ofstudents for the same week for which formula ADM is certified:

(a) Students enrolled in each grade included in the jointvocational district schools;

(b) Handicapped children receiving specialeducationservicesfor the category one handicap described indivision (A)of section 3317.013of the Revised Code;

(c) Handicapped children receiving specialeducationservicesfor the category two handicaps described indivision (B)of section 3317.013of the Revised Code;

(d) Handicapped childrenreceiving special educationservices for category threehandicapsdescribed in division(C)of section3317.013 of theRevised Code;

(e)Handicapped childrenreceiving special education servicesfor category four handicapsdescribed in division (D) of section3317.013 of the Revised Code;

(f) Handicapped children receiving special educationservices for the category five handicap described in division (E)ofsection 3317.013 of the Revised Code;

(g) Handicapped children receiving special educationservices for category six handicaps described in division (F) ofsection 3317.013 of the Revised Code;

(h) Students receiving category one vocational educationservices, described in division (A) of section 3317.014 of theRevised Code;

(i) Students receiving category two vocational educationservices, described in division (B) of section 3317.014 of theRevised Code.

The superintendent of each joint vocational school districtshall also indicate the city, local, orexempted village schooldistrict in which eachjoint vocational district pupil is entitledto attend schoolpursuant to section 3313.64 or 3313.65 of theRevised Code.

(E) In each school of each city, local, exempted village,joint vocational, and cooperative education school district thereshall be maintained a record of school membership, which recordshall accurately show, for each day the school is in session, theactual membership enrolled in regular day classes. For thepurpose of determining average daily membership, the membershipfigure of any school shall not include any pupils except thosepupils described by division (A) of this section. Therecord ofmembership for each school shall be maintained in suchmanner thatno pupil shall be counted as in membership prior tothe actualdate of entry in the school and also in suchmanner that where forany cause a pupil permanently withdrawsfrom the school that pupilshall not be counted as inmembership from andafter the date ofsuch withdrawal. There shall not be includedin the membership ofany school any of the following:

(3) Any pupil who was enrolled in the schoolsof thedistrict during the previous school year when tests wereadministered under section 3301.0711 of the Revised Code but didnot take one or more of the tests required by that section andwasnot excused pursuant to division (C)(1) or (3) of that section;

(4) Any pupil who has attained the age of twenty-two years,except for veterans of the armed services whose attendance wasinterrupted before completing the recognized twelve-year courseofthe public schools by reason of induction or enlistment in thearmed forces and who apply for reenrollment in the public schoolsystem of their residence not later than four years aftertermination of war or their honorable discharge.

If, however, any veteran described bydivision (E)(4) ofthissection elects toenroll in special courses organized forveteransfor whom tuition is paid under the provisions of federallaws, orotherwise, that veteran shall not be included inaveragedailymembership.

Notwithstanding division (E)(3) of this section, themembership of any school may include a pupil who did not take atest required by section 3301.0711 of the Revised Code if thesuperintendent of public instruction grants a waiver from therequirement to take the test to the specific pupil. Thesuperintendent may grant such a waiver only for good cause inaccordance with rules adopted by the state board of education.

Except as provided indivisions (B)(2)and (F) ofthis section,theaverage daily membership figure of any local,city,exemptedvillage, or joint vocational school district shallbedeterminedby dividingthe figure representing the sum of thenumber ofpupils enrolled during eachday the school of attendanceisactually open forinstruction during the ~~first full school~~ week~~inOctober~~ for which the formula ADM is being certified by the total numberof days the school was actuallyopenfor instruction during thatweek. For purposes of statefunding,"enrolled" persons are onlythose pupils who areattending school,those who have attendedschool during thecurrent school year andare absent forauthorized reasons, andthose handicapped childrencurrentlyreceiving home instruction.

The average daily membership figure of any cooperativeeducation schooldistrict shall be determined in accordance withrules adopted by the stateboard of education.

(F)(1) If the formula ADM for the first full schoolweek inFebruary is atleast three per cent greater than that certifiedfor the firstfull school week in the preceding October, thesuperintendent ofschools of any city, exempted village, or jointvocational school districtor educational service center shallcertify such increase to thesuperintendent of publicinstruction.Such certification shall be submitted no later thanthe fifteenthday of February. For the balance of the fiscalyear, beginningwith the February payments, the superintendent ofpublicinstruction shall use the increased formulaADM in calculating orrecalculating the amounts to be allocated inaccordance with section 3317.022 or 3317.16 ofthe RevisedCode. In no eventshall the superintendent use an increasedmembership certified tothe superintendent after thefifteenth day of February. Division (F)(1) of this section does not apply after fiscal year 2005.

(2) If on the first school day of April the total numberofclasses or units for handicappedpreschool children thatareeligible for approval under division (B) of section 3317.05of theRevised Code exceeds the number of unitsthat have been approvedfor the year under that division, thesuperintendent of schools ofany city, exempted village,or cooperative education schooldistrict or educationalservice center shall make thecertifications required by thissection for that day. If thedepartment determines additional units can beapproved for thefiscal year within any limitations set forth inthe actsappropriating moneys for the funding of such units,the department shall approve additional units for the fiscal year onthebasis of such average daily membership. For each unit soapproved, the department shall pay an amountcomputedin the manner prescribed in section3317.052 or 3317.19andsection3317.053 of the Revised Code.

(3) If a student attending a community school under Chapter3314. of the Revised Code is not included in the formula ADMcertified ~~for the first full school week of October~~ for the schooldistrict in which the student is entitled to attend school undersection 3313.64 or 3313.65 of the Revised Code, the department ofeducation shall adjust the formula ADM of that school district toinclude the community school student in accordance with division(C)(2) of this section, and shall recalculate the schooldistrict's payments under this chapter for the entire fiscal yearon the basis of that adjusted formula ADM. This requirementapplies regardless of whether the student was enrolled, as definedin division (E) of this section, in the community school duringthe first full school week in October.

(G)(1)(a) The superintendent of an institution operating aspecial education program pursuant to section 3323.091 of theRevised Code shall, for the programs under suchsuperintendent'ssupervision,certify to the state board of education ~~the~~, in the manner prescribed by the superintendent of public instruction, both of the following:

(i) The average daily membership of all handicapped children other than handicapped preschool children receiving services at the institution for each category of handicap described in divisions (A) to (F) of section 3317.013 of the Revised Code;

(ii) The averagedailymembership of all handicapped preschool children in classes orprogramsapproved annually by the department of education~~, in themanner prescribedby the superintendent of public instruction~~ for unit funding under section 3317.05 of the Revised Code.

(b) The superintendent of aninstitution with vocationaleducation units approved underdivision (A) of section 3317.05 ofthe RevisedCode shall, for the units underthe superintendent'ssupervision, certify to the state board ofeducation the averagedaily membership in those units, in themanner prescribed by thesuperintendent of publicinstruction.

(2) The superintendent of each county MR/DD board thatmaintains special education classesunder section 3317.20 of theRevised Code or units approved pursuant to section3317.05 of the Revised Code shalldo both ofthe following:

(a) Certify to the state board, in themanner prescribed bythe board, the average dailymembership in classesunder section3317.20 ofthe Revised Code for eachschool district that hasplaced childrenin the classes;

(b) Certify to the state board, in the manner prescribed bytheboard, the number of all handicapped preschool childrenenrolled as ofthe first day of December in classes eligible forapprovalunder division (B) ofsection 3317.05 of the RevisedCode, and the number of thoseclasses.

(3)(a) If on the first school day ofApril the number ofclasses or units maintained for handicapped preschoolchildren bythe county MR/DD boardthat are eligible for approval underdivision (B) of section 3317.05 of theRevised Code is greaterthan the number of units approved for the year underthatdivision,the superintendent shall make thecertification requiredby this section for that day.

(b) If the department determines that additional classesorunits can beapproved for the fiscal year within anylimitationsset forth inthe acts appropriating moneys for thefunding of theclasses and units described in division (G)(3)(a) of thissection, the department shall approve andfundadditional units for thefiscal year on the basis of such averagedaily membership. Foreachunit so approved, the department shall pay anamountcomputed in the manner prescribed insections3317.052 and3317.053 of the RevisedCode.

(H) Except as provided in division (I)of this section, whenany city, local, or exempted village schooldistrict providesinstruction for a nonresident pupil whoseattendance isunauthorized attendance as defined in section3327.06 of theRevised Code, that pupil's membership shall not beincluded inthat district's membership figure used in thecalculation of thatdistrict's formulaADM or included in the determination of anyunit approved forthe district under section 3317.05 of theRevised Code. Thereporting official shall report separately theaverage dailymembership of all pupils whose attendance in thedistrict isunauthorized attendance, and the membership of eachsuch pupilshall be credited to the school district in which thepupil isentitled to attend school under division (B) of section3313.64or section 3313.65 of the Revised Code as determined bythedepartment of education.

(I)(1) A city, local, exempted village, or joint vocationalschooldistrict admittinga scholarship studentof a pilot projectdistrict pursuant to division (C) of section 3313.976of theRevised Code may count such student in its average dailymembership.

(2) In any year for which funds are appropriated for pilotprojectscholarship programs, a school district implementing astate-sponsored pilotproject scholarship program that yearpursuant tosections 3313.974to3313.979 of the RevisedCodemay count in average daily membership:

(a) All children residing in the district and utilizing ascholarship to attend kindergarten in any alternative school, asdefined insection 3313.974 of the Revised Code;

(b) All children who were enrolled in the district in thepreceding year who are utilizing a scholarship to attend any suchalternativeschool.

(J) The superintendent of each cooperative education schooldistrict shall certify to the superintendent of publicinstruction, in amanner prescribed by the state board ofeducation, the applicable averagedaily memberships for allstudents in the cooperative education district, alsoindicatingthe city, local, or exempted village district where each pupil isentitled to attend school under section 3313.64 or 3313.65 of theRevisedCode.

Sec. 3317.031. A membership record shall be kept by gradelevel in each city, local, exempted village, joint vocational,and cooperative education school district and such a record shallbe kept by grade level in each educationalservice center thatprovides academic instruction to pupils, classes for handicappedpupils, or any other direct instructional services to pupils. Such membership record shall show the following information foreach pupil enrolled: Name, date of birth, name of parent, dateentered school, date withdrawn from school, days present, daysabsent, and the number of days school was open for instructionwhile the pupil was enrolled. At the end of the school year thismembership record shall show the total days present, the totaldays absent, and the total days due for all pupils in each grade. Such membership record shall show the pupils that are transportedto and from school and it shall also show the pupils that aretransported living within one mile of the school attended. Thismembership record shall also show any other informationprescribed by the state board of education.

This membership record shall be kept intact for at leastfive years and shall be made available to the state board ofeducation or its representative in making an audit of the averagedaily membership or the transportation of the district or educationalservice center. Themembership records of local school districts shall be filed atthe close of each school year in the office of theeducational service center superintendent.

The state board of education may withhold any money due anyschool district or educational service center under sections 3317.022to ~~3317.0212~~ 3317.0211, 3317.11,3317.16, 3317.17, or 3317.19 of the Revised Code until it hassatisfactory evidence that the board of education or educational servicecenter governing board has fullycomplied with all of the provisions of this section.

Nothing in this section shall require any person torelease, or to permit access to, public school records inviolation of section 3319.321 of the Revised Code.

Sec. 3317.035. The auditor of state may conduct annual audits of the information certified under section 3317.03 of the Revised Code by a number of school districts determined by the auditor of state and selected at random.

Sec. 3317.05. (A) For the purpose of calculatingpaymentsunder sections3317.052 and3317.053 of theRevised Code, the department ofeducation shall determine foreach institution, bythe last day ofJanuary of each year andbased on informationcertified undersection 3317.03 of theRevised Code, the number ofvocational education units orfractions of unitsapproved by the department on the basis ofstandardsand rules adopted by thestate board of education. As used in thisdivision,"institution" means aninstitution operated by adepartment specified insection 3323.091of the Revised Code andthat providesvocational educationprograms under the supervisionof thedivision of vocationaleducation of the department that meet the standardsand rules for these programs,includinglicensure of professionalstaff involved in theprograms, asestablished by the state board.

(B) For the purpose of calculating paymentsunder sections3317.052, 3317.053, 3317.11, and 3317.19 oftheRevised Code, the department shalldetermine, basedoninformation certified undersection 3317.03 of the RevisedCode,the following by the last dayof January of eachyear for eacheducationalservice center, foreach school district, includingeachcooperative education schooldistrict, for each institutioneligible for payment under section3323.091 ofthe Revised Code,and for each county MR/DD board:thenumber ofclasses operatedby the school district, servicecenter,institution, orcountyMR/DD board forhandicappedpreschoolchildren, or fractionthereof, including in the case ofa districtor service centerthat is a funding agent, classestaught by alicensed teacheremployed by that district or servicecenter undersection3313.841of the Revised Code, approvedannually by the department on thebasis of standards and rulesadopted bythestate board.

(C) For the purpose of calculating payments under sections3317.052, 3317.053, 3317.11, and 3317.19 oftheRevisedCode, the department shall determine, based

	For state office, except member of the
	state board of education		$65
	For office of member of general assembly		$40
	For county office		$40
	For city office		$25
	For office of member of the state board
	of education		$25
	For office of member of a city, local,
	exempted village, or cooperative
	education board of
	education or educational service
	center governing board		$20
	For position of business manager,
	treasurer, or superintendent of a
	city, local, exempted village, joint
	vocational, or cooperative education
	school district or
	educational service center		$20

		Years of	Percentage
Attained	or	Total Service	of
Birthday		Credit	Base Amount

$11,900 or less		$5,000 or seventy-five per cent
More than $11,900 but not more than $17,500		$3,000 or sixty per cent
More than $17,500 but not more than $23,000		$1,000 or twenty-five per cent
More than $23,000		-0-

Permit		~~$ 50~~ $ 150
Annual inspection and reinspectionper ride:
	Kiddie rides		$100
	Roller coaster		$950
	Aerial lifts or bungee
	jumping facilities		$450
	Go karts		$ 5
	Other rides		$160
Midseason operational inspectionper ride	$25
Expedited inspection per ride	$ 100
Failure to cancel scheduled inspection per ride	$ 100
Failure to have amusement ride ready for
inspection per ride	$100

	Maximum
	Group	Staff Member/
Age Group	Size	Child Ratio
Birth to less than 12 months	12	1:5, or 2:12 if
		two preschool
		staff members
		are in the room
12 months to less than 18 months	12	1:6
18 months to less than 30 months	14	1:7
30 months to less than 3 years	16	1:8
3-year-olds	24	1:12
4- and 5-year-olds not in school	28	1:14

	48		75% of the benefit payable under
			division (B)(3) of this section
	49		80% of the benefit payable under
			division (B)(3) of this section
	50		86% of the benefit payable under
			division (B)(3) of this section
	51		93% of the benefit payable under
			division (B)(3) of this section

		COST-OF-DOING-BUSINESS
	COUNTY	FACTOR AMOUNT
	Adams	~~1.0035~~ 1.00233
	Allen	~~1.0206~~ 1.01373
	Ashland	~~1.0297~~ 1.01980
	Ashtabula	~~1.0397~~ 1.02647
	Athens	~~1.0014~~ 1.00093
	Auglaize	~~1.0247~~ 1.01647
	Belmont	~~1.0064~~ 1.00427
	Brown	~~1.0177~~ 1.01180
	Butler	~~1.0646~~ 1.04307
	Carroll	~~1.0137~~ 1.00913
	Champaign	~~1.0446~~ 1.02973
	Clark	~~1.0447~~ 1.02980
	Clermont	~~1.0541~~ 1.03607
	Clinton	~~1.0329~~ 1.02193
	Columbiana	~~1.0214~~ 1.01427
	Coshocton	~~1.0173~~ 1.01153
	Crawford	~~1.0164~~ 1.01093
	Cuyahoga	~~1.0626~~ 1.04173
	Darke	~~1.0338~~ 1.02253
	Defiance	~~1.0146~~ 1.00973
	Delaware	~~1.0528~~ 1.03520
	Erie	~~1.0388~~ 1.02587
	Fairfield	~~1.0366~~ 1.02440
	Fayette	~~1.0319~~ 1.02127
	Franklin	~~1.0608~~ 1.04053
	Fulton	~~1.0330~~ 1.0220
	Gallia	~~1.0000~~ 1.00000
	Geauga	~~1.0501~~ 1.03340
	Greene	~~1.0444~~ 1.02960
	Guernsey	~~1.0066~~ 1.00440
	Hamilton	~~1.0750~~ 1.05000
	Hancock	~~1.0215~~ 1.01433
	Hardin	~~1.0356~~ 1.02373
	Harrison	~~1.0074~~ 1.00493
	Henry	~~1.0318~~ 1.02120
	Highland	~~1.0148~~ 1.00987
	Hocking	~~1.0188~~ 1.01253
	Holmes	~~1.0178~~ 1.01187
	Huron	~~1.0293~~ 1.01953
	Jackson	~~1.0138~~ 1.00920
	Jefferson	~~1.0073~~ 1.00487
	Knox	~~1.0279~~ 1.01860
	Lake	~~1.0524~~ 1.03493
	Lawrence	~~1.0081~~ 1.00540
	Licking	~~1.0381~~ 1.02540
	Logan	~~1.0385~~ 1.02567
	Lorain	~~1.0515~~ 1.03433
	Lucas	~~1.0390~~ 1.02600
	Madison	~~1.0488~~ 1.03253
	Mahoning	~~1.0346~~ 1.02307
	Marion	~~1.0306~~ 1.02040
	Medina	~~1.0536~~ 1.03573
	Meigs	~~1.0026~~ 1.00173
	Mercer	~~1.0203~~ 1.01353
	Miami	~~1.0411~~ 1.02740
	Monroe	~~1.0050~~ 1.00333
	Montgomery	~~1.0453~~ 1.03020
	Morgan	~~1.0089~~ 1.00593
	Morrow	~~1.0301~~ 1.02007
	Muskingum	~~1.0127~~ 1.00847
	Noble	~~1.0073~~ 1.00487
	Ottawa	~~1.0486~~ 1.03240
	Paulding	~~1.0115~~ 1.00767
	Perry	~~1.0160~~ 1.01067
	Pickaway	~~1.0391~~ 1.02607
	Pike	~~1.0103~~ 1.00687
	Portage	~~1.0472~~ 1.03147
	Preble	~~1.0442~~ 1.02947
	Putnam	~~1.0216~~ 1.01440
	Richland	~~1.0199~~ 1.01327
	Ross	~~1.0151~~ 1.01007
	Sandusky	~~1.0321~~ 1.02140
	Scioto	~~1.0012~~ 1.00080
	Seneca	~~1.0223~~ 1.01487
	Shelby	~~1.0278~~ 1.01853
	Stark	~~1.0255~~ 1.01700
	Summit	~~1.0542~~ 1.03613
	Trumbull	~~1.0351~~ 1.02340
	Tuscarawas	~~1.0089~~ 1.00593
	Union	~~1.0500~~ 1.03333
	Van Wert	~~1.0133~~ 1.00887
	Vinton	~~1.0095~~ 1.00633
	Warren	~~1.0658~~ 1.04387
	Washington	~~1.0060~~ 1.00400
	Wayne	~~1.0348~~ 1.02320
	Williams	~~1.0228~~ 1.01520
	Wood	~~1.0360~~ 1.02400
	Wyandot	~~1.0171~~ 1.01140

	FISCAL YEAR		PERCENTAGE
	2000		52.5%
	2001		55%
	2002		57.5%
	2003 and thereafter		The greater of 60%or the district's state share percentage

		Reduce Taxable Value
Total Income		by the Lesser of: