Bill Text: OH HB120 | 2009-2010 | 128th General Assembly | Introduced


Bill Title: To establish the Legislative Budget Committee and the Legislative Budget Office of the Legislative Service Commission.

Spectrum: Partisan Bill (Republican 33-0)

Status: (Introduced - Dead) 2009-04-02 - To State Government [HB120 Detail]

Download: Ohio-2009-HB120-Introduced.html
As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 120


Representative Batchelder 

Cosponsors: Representatives Adams, J., Amstutz, Bacon, Baker, Balderson, Blair, Bubp, Burke, Combs, Daniels, Derickson, Evans, Gardner, Grossman, Hottinger, Huffman, Jones, Jordan, Lehner, Maag, Martin, McClain, McGregor, Mecklenborg, Morgan, Ruhl, Sears, Snitchler, Stebelton, Uecker, Wachtmann, Zehringer 



A BILL
To amend sections 102.01, 103.13, 103.132, 103.143, 1
103.16, 103.17, 103.18, 103.20, 103.21, 103.23, 2
124.14, 126.02, 126.21, 3333.04, 3333.12, 3
3333.122, 3333.27, 3769.08, 3769.20, 4743.01, and 4
5120.51 and to enact sections 103.35 and 103.36 of 5
the Revised Code to establish the Legislative 6
Budget Committee and the Legislative Budget Office 7
of the Legislative Service Commission.8


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 102.01, 103.13, 103.132, 103.143, 9
103.16, 103.17, 103.18, 103.20, 103.21, 103.23, 124.14, 126.02, 10
126.21, 3333.04, 3333.12, 3333.122, 3333.27, 3769.08, 3769.20, 11
4743.01, and 5120.51 be amended and sections 103.35 and 103.36 of 12
the Revised Code be enacted to read as follows:13

       Sec. 102.01.  As used in this chapter:14

       (A) "Compensation" means money, thing of value, or financial15
benefit. "Compensation" does not include reimbursement for actual16
and necessary expenses incurred in the performance of official17
duties.18

       (B) "Public official or employee" means any person who is19
elected or appointed to an office or is an employee of any public20
agency. "Public official or employee" does not include a person21
elected or appointed to the office of precinct, ward, or district22
committee member under section 3517.03 of the Revised Code, any23
presidential elector, or any delegate to a national convention.24
"Public official or employee" does not include a person who is a25
teacher, instructor, professor, or other kind of educator whose 26
position does not involve the performance of, or authority to 27
perform, administrative or supervisory functions.28

       (C) "Public agency" means the general assembly, all courts,29
any department, division, institution, board, commission,30
authority, bureau or other instrumentality of the state, a county,31
city, village, or township, the five state retirement systems, or32
any other governmental entity. "Public agency" does not include a33
department, division, institution, board, commission, authority,34
or other instrumentality of the state or a county, municipal35
corporation, township, or other governmental entity that functions36
exclusively for cultural, educational, historical, humanitarian,37
advisory, or research purposes; that does not expend more than ten38
thousand dollars per calendar year, excluding salaries and wages39
of employees; and whose members are uncompensated.40

       (D) "Immediate family" means a spouse residing in the41
person's household and any dependent child.42

       (E) "Income" includes gross income as defined and used in the43
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as44
amended, interest and dividends on obligations or securities of45
any state or of any political subdivision or authority of any46
state or political subdivision, and interest or dividends on47
obligations of any authority, commission, or instrumentality of48
the United States.49

       (F) Except as otherwise provided in division (A) of section50
102.08 of the Revised Code, "appropriate ethics commission" means:51

       (1) For matters relating to members of the general assembly,52
employees of the general assembly, employees of the legislative53
service commission and legislative budget office of the 54
legislative service commission, and candidates for the office of55
member of the general assembly, the joint legislative ethics56
committee;57

       (2) For matters relating to judicial officers and employees,58
and candidates for judicial office, the board of commissioners on59
grievances and discipline of the supreme court;60

       (3) For matters relating to all other persons, the Ohio61
ethics commission.62

       (G) "Anything of value" has the same meaning as provided in63
section 1.03 of the Revised Code and includes, but is not limited64
to, a contribution as defined in section 3517.01 of the Revised65
Code.66

       (H) "Honorarium" means any payment made in consideration for67
any speech given, article published, or attendance at any public68
or private conference, convention, meeting, social event, meal, or69
similar gathering. "Honorarium" does not include ceremonial gifts70
or awards that have insignificant monetary value; unsolicited71
gifts of nominal value or trivial items of informational value; or72
earned income from any person, other than a legislative agent, for73
personal services that are customarily provided in connection with74
the practice of a bona fide business, if that business initially75
began before the public official or employee conducting that76
business was elected or appointed to the public official's or77
employee's office or position of employment.78

       (I) "Employer" means any person who, directly or indirectly, 79
engages an executive agency lobbyist or legislative agent.80

       (J) "Executive agency decision," "executive agency lobbyist," 81
and "executive agency lobbying activity" have the same meanings as 82
in section 121.60 of the Revised Code.83

       (K) "Legislation," "legislative agent," "financial 84
transaction," and "actively advocate" have the same meanings as in 85
section 101.70 of the Revised Code.86

       (L) "Expenditure" has the same meaning as in section 101.70 87
of the Revised Code when used in relation to activities of a 88
legislative agent, and the same meaning as in section 121.60 of 89
the Revised Code when used in relation to activities of an 90
executive agency lobbyist.91

       Sec. 103.13.  The Ohio legislative service commission shall:92

       (A) Conduct research, make investigations, and secure93
information or data on any subject and make reports thereon to the 94
general assembly;95

       (B) Ascertain facts and make reports concerning the state96
budget, the revenues and expenditures of the state, and of the97
organization and functions of the state, its departments,98
subdivisions, and agencies;99

       (C) Make surveys, investigations, and studies, and compile100
data, information, and records on any question which may be101
referred to it by either house of the general assembly or any102
standing committee of the general assembly;103

       (D)(C) Assist and cooperate with any interim legislative104
committee or other agency created by the general assembly;105

       (E)(D) Prepare or advise in the preparation of any bill or106
resolution, when requested by any member of the general assembly;107

       (F)(E) Collect, classify, and index the documents of the108
state which shall include executive and legislative documents and109
departmental reports and keep on file all bills, resolutions, and110
official journals printed by order of either house of the general111
assembly;112

       (G)(F) Provide members of the general assembly with impartial113
and accurate information and reports concerning legislative114
problems in accordance with rules prescribed by the commission;115

       (H) Annually collect the reports required by section 4743.01 116
of the Revised Code and prepare a report evaluating the extent to 117
which state boards and commissions which regulate occupations are 118
financially self-supporting. The report shall be presented to the 119
speaker and the minority leader of the house of representatives, 120
the president and the minority leader of the senate, and the 121
chairperson and ranking minority member of the finance committees 122
of both houses, on or before the thirty-first day of December each 123
year.124

       (I)(G) Codify the rules of administrative agencies of the125
state in accordance with the provisions of section 103.05 of the126
Revised Code;127

       (J)(H) Publish the register of Ohio under section 103.051 of 128
the Revised Code;129

       (K)(I) Operate the electronic rule-filing system under 130
section 103.0511 of the Revised Code.131

       Sec. 103.132. The legislative budget office of the 132
legislative service commission, in conjunction with the 133
legislative information systems office, shall establish and 134
maintain an electronic database containing current and historical 135
revenue and expenditure data for each school district in the state 136
that is easy to use and readily accessible through the internet.137

       Sec. 103.143.  In addition to its duties under section 103.14138
of the Revised Code, the legislative budget office of the139
legislative service commission shall, in accordance with this140
section, review all bills assigned to a committee of the general141
assembly, complete the appropriate local impact statements142
required by this section, and compile and distribute these143
statements as required by division (D) of this section.144

       (A) Subject to division (F) of this section, whenever any145
bill is introduced into either house of the general assembly and146
receives second consideration pursuant to the rules of that house,147
the bill shall be reviewed immediately by the legislative budget148
officer. Upon completing this review, the legislative budget149
officer shall determine whether the bill could result in a net150
additional cost to school districts, counties, townships, or151
municipal corporations from any new or expanded program or service152
that school districts, counties, townships, or municipal153
corporations would be required to perform or administer under the154
bill. If the legislative budget officer determines that it could155
result in such a cost, the legislative service commissionbudget 156
office shall prepare a local impact statement in the manner157
specified in this section. Immediately upon determining the158
potential for a net additional cost, the legislative budget159
officer shall notify the sponsor of the bill, the chairperson of160
the committee to which the bill has been assigned, and the161
presiding officer and minority leader of the house in which the162
bill originates of the legislative budget officer's determination163
by signing and dating a statement to be delivered to them.164

       If a local impact statement is required, the legislative 165
service commissionbudget office shall, as soon as possible but no166
later than thirty days after the date the bill is scheduled for a167
first hearing in a committee in the house in which the bill was168
introduced or no later than thirty days after being requested to169
do so by the chairperson of such a committee, prepare a statement170
containing the most accurate estimate possible, in dollars, of the171
net additional costs, if any, that will be required of school172
districts, counties, townships, or municipal corporations to173
perform or administer a new or expanded program or service174
required under the bill. Copies of this statement shall be sent to 175
the governor, the speaker of the house of representatives, the176
president of the senate, the sponsor of the bill, the minority177
leader in both houses, and the chairperson of the committee to178
which the bill has been assigned.179

       No bill for which a local impact statement is required by180
this section shall be voted out of committee until after the181
committee members have received and considered the statement or,182
if the bill was amended in committee, the revised statement,183
unless the bill is voted out of committee by a two-thirds vote of184
the membership of the committee.185

       (B) In preparing a local impact statement, the legislative 186
service commissionbudget office may request any department,187
division, institution, board, commission, authority, bureau, or188
other instrumentality or officer of the state, a school district,189
a county, a municipal corporation, or a township to provide any of190
the following information:191

       (1) An estimate, in dollars, of the amount by which the bill192
would increase or decrease the revenues received or expenditures193
made by the instrumentality, officer, or entity;194

       (2) Any other information the legislative service commission195
budget office considers necessary for it to understand or explain 196
the fiscal effect of the bill.197

       An instrumentality, officer, or entity shall comply with a198
request as soon as reasonably possible, but not later than fifteen199
days, after receiving it. The legislative service commission200
budget office shall specify the manner of compliance in its 201
request, and if necessary may specify a period of time longer than 202
fifteen days for compliance. The legislative service commission203
budget office may consider any information provided under division204
(B)(1) or (2) of this section in preparing a local impact205
statement.206

       (C) Any time a bill is amended, the legislative service207
commissionbudget office shall, as soon as reasonably possible,208
revise the local impact statement to reflect changes made by209
amendment.210

       (D) The legislative service commissionbudget office shall211
annually compile the final local impact statements completed for212
all laws passed by both houses of the general assembly in the213
preceding year. It shall send a copy of this compilation as a214
draft report to associations or nonprofit organizations formed for 215
the improvement of school districts or municipal, township, or 216
county government or for their elected officials by the last day 217
of July of each year. Upon receiving the draft report, these218
associations and organizations may comment about the actual fiscal219
impact of bills passed during the year covered by the report and220
forward those comments to the legislative service commission221
budget office by the last day of August. The legislative service 222
commissionbudget office shall then prepare a final report223
consisting of the compiled local impact statements and all224
forwarded comments. The final report shall be completed by the225
last day of September and copies of the report shall be sent to226
the governor, the speaker of the house of representatives, and the227
president of the senate.228

       (E) As used in this section, "net additional cost" means any229
cost incurred or anticipated to be incurred by a school district,230
county, township, or municipal corporation in performing or231
administering a new or expanded program or service required by a232
state law other than any of the following:233

       (1) A cost arising from the exercise of authority granted by234
a state law rather than from the performance of a duty or235
obligation imposed by a state law;236

       (2) New duties or obligations that create only a minimal cost 237
for affected school districts, counties, townships, or municipal 238
corporations. The legislative service commissionbudget office239
shall determine what constitutes such a minimal cost. Before 240
making this determination, the legislative service commission241
budget office shall notify the state organizations that represent 242
school districts, counties, townships, and municipal corporations 243
regarding the proposed determination and provide a thirty-day 244
period for these organizations and individual school districts, 245
counties, townships, and municipal corporations to comment on it.246

       (3) A cost arising from a law passed as a result of a federal 247
mandate.248

       The amounts described in division (E)(2) of this section249
include only the amounts remaining after subtracting from such250
costs any revenues received or receivable by the school district,251
county, township, or municipal corporation on account of the252
program or service, including the following:253

       (a) Fees charged to the recipients of the program or service;254

       (b) State or federal aid paid specifically or categorically255
in connection with the program or service;256

       (c) Any offsetting savings resulting from the diminution or257
elimination of any other program or service directly attributable258
to the performance or administration of the required program or259
service.260

       (F) This section does not apply to any of the following:261

       (1) The main biennial operating appropriations bill;262

       (2) The biennial operating appropriations bill for state263
agencies supported by motor fuel tax revenue;264

       (3) The biennial operating appropriations bill or bills for265
the bureau of workers' compensation and the industrial commission;266

       (4) Any other bill that makes the principal biennial267
operating appropriations for one or more state agencies;268

       (5) The bill that primarily contains corrections and269
supplemental appropriations to the biennial operating270
appropriations bills;271

       (6) The main biennial capital appropriations bill;272

       (7) The bill that primarily contains reappropriations from273
previous capital appropriations bills.274

       Sec. 103.16.  The Ohio legislative service commission or any 275
committee thereofof the commission or under its direction when 276
so authorized by the commission is empowered to hold public 277
hearings, at such times and places within the state as may be 278
determined advisable or necessary to accomplish the purposes and 279
intent of sections 103.11 to 103.22 of the Revised Code.280

       Sec. 103.17.  In the discharge of any duties imposed by law, 281
any member of the Ohio legislative service commission or 282
legislative budget committee shall have the authority throughout 283
the state to administer oaths, issue subpoenas compelling the 284
attendance of witnesses and the production of any papers, books, 285
accounts, and testimony; and to cause the deposition of witnesses 286
either residing in or without the state. In case of disobedience 287
on the part of any person to comply with a subpoena issued on288
behalf of the commission or committee, or on the refusal of any 289
witness to testify to any matters regarding which he may be 290
lawfully interrogated, it shall be the duty of the county 291
prosecutor in any county, on application of the commission or 292
committee, to bring a proceeding for contempt.293

       Sec. 103.18.  The Ohio legislative service commission or any 294
committee appointed by or under the direction of the commission 295
may call upon any state department, university, agency, or 296
officer, or agency of any political subdivision for such 297
facilities and data as may be available and state departments, 298
universities, agencies and officers, and agencies of political 299
subdivisions shall cooperate with the commission or any committee 300
appointed by or under the direction of the commission to the 301
fullest possible extent.302

       Sec. 103.20.  The Ohio legislative service commission and the 303
legislative budget office of the legislative service commission304
shall be provided with adequate office space in the state house. 305
The director of the Ohio legislative service commission or 306
legislative budget officer, with the approval of the commission, 307
may obtain office space elsewhere in Columbus if the space in the 308
state house is inadequate.309

       Sec. 103.21.  (A) The compensation of the director, 310
legislative budget officer, and all officers and employees of the 311
Ohio legislative service commission and the legislative budget 312
office of the legislative service commission, the expenses of the313
commission, and the expenses of the director and the employees of 314
the commission and budget office shall be paid out of 315
appropriations made for that purpose upon vouchers approved by the 316
director, budget officer, and the chairperson of the commission.317

       (B) The director of budget and management, upon the request 318
of the director of the legislative service commission or the 319
legislative budget officer and with the approval of the320
chairperson and vice-chairperson of the commission, shall make 321
transfers of all or part of an appropriation within the commission 322
or from one fiscal year to another.323

       Sec. 103.23.  The legislative service commission shall serve 324
as a legislative budget and program oversight commission and may 325
delegate to any committee it creates or has authority to direct326
the responsibility to:327

       (A) Conduct program reviews of state agencies and departments 328
or programs and activities within such agencies and departments, 329
of the state's local assistance programs, and of state laws. As 330
used in this section "program review" means an examination and 331
review of any state agency, department, bureau, commission, or 332
institution, or any activity, program, or law of the state to 333
determine whether or to what extent the intent and goals of the 334
organization, activity, program, or law are being achieved and 335
whether funds appropriated have been efficiently and effectively 336
expended;337

       (B) Continually review and evaluate federal and state338
government relationships and the fiscal, economic, and social339
implications thereof;340

       (C) Annually prepare and update long-range fiscal plans for 341
the state;342

       (D) Provide staff to assist the controlling board in343
performing its duties and exercising its powers.344

       If in a program review the commission cites the failure of a 345
program to meet intended goals, inadequate operating or346
administrative procedures or controls, fiscal or program reporting 347
inaccuracies, waste, extravagance, unauthorized or unintended 348
activities or programs, or other deficiencies, the head of the 349
state department, agency, bureau, commission, or institution or 350
the official responsible for the program shall respond to the 351
report and inform the commission, at such times and in such manner 352
and form as the commission determines, of any corrective actions 353
that have been taken. The commission shall report the results of 354
all program reviews to the general assembly.355

       No official of a state agency, department, bureau,356
commission, or institution shall refuse to provide or make357
available to the legislative service commission any information or 358
records under its control or in its possession when requested to 359
provide such information as part of the exercise of the360
commission's powers in this section and sectionsections 103.13 361
and 103.36 of the Revised Code unless the law dealing with the 362
information or records specifically states that the commission is 363
not authorized to review such information or records. No member or 364
employee of the commission shall use any confidential information 365
or record for any purpose except those authorized in this section 366
and sectionsections 103.13 and 103.36 of the Revised Code.367

       Sec. 103.35.  (A) There is hereby created the legislative 368
budget committee under the direction of the legislative service 369
commission. The committee shall seek to attain improved state 370
financial and administrative management through the exercise of 371
continuous review and analysis of state revenues, expenditures, 372
and management practices. 373

       (B) The committee shall consist of the following members:374

       (1) Four members of the legislative service commission, two 375
from each house of the general assembly and two from each 376
political party, appointed by the members of the commission;377

       (2) The chairperson and one member of the majority political 378
party from the senate committee handling finance and 379
appropriations, appointed by the president pro tempore of the 380
senate;381

       (3) Two members of the minority political party from the 382
senate committee handling finance and appropriations, appointed by 383
the president pro tempore of the senate;384

       (4) The chairperson and one member of the majority political 385
party from the house committee handling finance and 386
appropriations, appointed by the speaker of the house of 387
representatives;388

       (5) Two members of the minority political party from the 389
house committee handling finance and appropriations, appointed by 390
the speaker of the house of representatives.391

       Appointments shall be made not later than the effective date 392
of this section. The members of the committee shall serve during 393
their term as a member of the general assembly and until their 394
successors are appointed and qualified, notwithstanding the 395
adjournment of the general assembly of which they are members or 396
the expiration of their terms as members of such general assembly. 397
A vacancy in the office of any member of the commission shall be 398
filled for the unexpired term in the same manner as the original 399
appointment. Committee members may be reappointed.400

       The legislative budget committee shall select from its 401
members a chairperson and vice-chairperson. The offices of 402
chairperson and vice-chairperson shall alternate each session of 403
the general assembly between the members of the senate and the 404
house of representatives and between political parties. 405

       (C) The legislative budget committee shall hold its first 406
meeting not later than thirty days after the effective date of 407
this section and shall meet at least once every sixty days 408
thereafter, or more frequently at the call of the chairperson. A 409
majority of members of the committee constitutes a quorum.410

       (D) The legislative budget committee shall establish 411
priorities respecting the work of the staff of the legislative 412
budget office created in section 103.36 of the Revised Code and 413
shall review the work of the legislative budget officer and staff. 414

       (E) The members of the committee shall serve without 415
compensation but shall be reimbursed for their actual and 416
necessary expenses incurred in the performance of their official 417
duties.418

       Sec. 103.36.  (A) There is hereby created the legislative 419
budget office of the legislative service commission under the 420
direction of the legislative budget committee. The legislative 421
budget office shall be administered by the legislative budget 422
officer appointed by the legislative budget committee. The 423
legislative budget officer shall report directly to the 424
legislative budget committee. 425

       (B) The office shall employ professional staff and clerical 426
personnel as are necessary for its operations. The legislative 427
budget officer shall be responsible for recruiting, hiring, 428
dismissing, and supervising the staff of the legislative budget 429
office. 430

       Professional staff shall be expected to develop specialized 431
knowledge in particular areas of governmental services and shall 432
be called on to provide research and other information in that 433
specialty to any member of the general assembly. 434

       (C) The legislative budget office shall provide financial 435
oversight and continuous monitoring of state finances to the 436
general assembly. In addition to any duties specified elsewhere in 437
the Revised Code, the office shall provide the following services 438
to the legislative budget committee:439

       (1) Analyze and make reports to the legislative budget 440
committee concerning the state budget, revenues and expenditures 441
of the state, and organization and functions of the state, its 442
departments, subdivisions, and agencies;443

       (2) Review, as appropriate, compliance by state agencies with 444
legislative intent as established through the appropriation 445
process and inform the committee of deviations from legislative 446
intent;447

       (3) Advise the committee of any potential problems or issues 448
arising with regards to state finance, on the office's own 449
initiative and on request;450

       (4) Raise any questions regarding fiscal actions taken by the 451
governor or a state agency, on the office's own initiative and on 452
request;453

       (5) Annually collect the reports required by section 4743.01 454
of the Revised Code and prepare a report evaluating the extent to 455
which state boards and commissions which regulate occupations are 456
financially self-supporting. The report shall be presented to the 457
speaker and the minority leader of the house of representatives, 458
the president and the minority leader of the senate, and the 459
chairperson and ranking minority member of the finance committees 460
of both houses, on or before the thirty-first day of December each 461
year.462

        (6) Perform any other tasks related to state finance as 463
requested by a member of the legislative budget committee.464

       Sec. 124.14.  (A)(1) The director of administrative services465
shall establish, and may modify or rescind, by rule, a job466
classification plan for all positions, offices, and employments467
the salaries of which are paid in whole or in part by the state. 468
The director shall group jobs within a classification so that the469
positions are similar enough in duties and responsibilities to be470
described by the same title, to have the same pay assigned with471
equity, and to have the same qualifications for selection applied. 472
The director shall, by rule, assign a classification title to each 473
classification within the classification plan. However, the 474
director shall consider in establishing classifications, including 475
classifications with parenthetical titles, and assigning pay 476
ranges such factors as duties performed only on one shift, special 477
skills in short supply in the labor market, recruitment problems, 478
separation rates, comparative salary rates, the amount of training 479
required, and other conditions affecting employment. The director 480
shall describe the duties and responsibilities of the class, 481
establish the qualifications for being employed in each position 482
in the class, and file with the secretary of state a copy of 483
specifications for all of the classifications. The director shall 484
file new, additional, or revised specifications with the secretary 485
of state before they are used. 486

       The director shall, by rule, assign each classification, 487
either on a statewide basis or in particular counties or state 488
institutions, to a pay range established under section 124.15 or 489
section 124.152 of the Revised Code. The director may assign a 490
classification to a pay range on a temporary basis for a period of 491
six months. The director may establish, by rule adopted under 492
Chapter 119. of the Revised Code, experimental classification 493
plans for some or all employees paid directly by warrant of the 494
director of budget and management. The rule shall include495
specifications for each classification within the plan and shall 496
specifically address compensation ranges, and methods for 497
advancing within the ranges, for the classifications, which may be 498
assigned to pay ranges other than the pay ranges established under 499
section 124.15 or 124.152 of the Revised Code.500

       (2) The director of administrative services may reassign to a 501
proper classification those positions that have been assigned to 502
an improper classification. If the compensation of an employee in 503
such a reassigned position exceeds the maximum rate of pay for the 504
employee's new classification, the employee shall be placed in pay 505
step X and shall not receive an increase in compensation until the 506
maximum rate of pay for that classification exceeds the employee's 507
compensation.508

       (3) The director may reassign an exempt employee, as defined 509
in section 124.152 of the Revised Code, to a bargaining unit 510
classification if the director determines that the bargaining unit 511
classification is the proper classification for that employee. 512
Notwithstanding Chapter 4117. of the Revised Code or instruments513
and contracts negotiated under it, these placements are at the 514
director's discretion.515

       (4) The director shall, by rule, assign related516
classifications, which form a career progression, to a517
classification series. The director shall, by rule, assign each518
classification in the classification plan a five-digit number, the 519
first four digits of which shall denote the classification series 520
to which the classification is assigned. When a career progression 521
encompasses more than ten classifications, the director shall, by 522
rule, identify the additional classifications belonging to a 523
classification series. The additional classifications shall be 524
part of the classification series, notwithstanding the fact that 525
the first four digits of the number assigned to the additional 526
classifications do not correspond to the first four digits of the 527
numbers assigned to other classifications in the classification 528
series.529

       (5) The director, in accordance with rules adopted under 530
Chapter 119. of the Revised Code, shall establish, and may modify 531
or rescind, a classification plan for county agencies that elect 532
not to use the services and facilities of a county personnel 533
department. The rules shall include a methodology for the 534
establishment of titles unique to county agencies, the use of 535
state classification titles and classification specifications for 536
common positions, the criteria for a county to meet in 537
establishing its own classification plan, and the establishment of 538
what constitutes a classification series for county agencies.539

       (B) Division (A) of this section and sections 124.15 and540
124.152 of the Revised Code do not apply to the following persons, 541
positions, offices, and employments:542

       (1) Elected officials;543

       (2) Legislative employees, employees of the legislative544
service commission, employees of the legislative budget office of 545
the legislative service commission, employees in the office of the 546
governor, employees who are in the unclassified civil service and 547
exempt from collective bargaining coverage in the office of the 548
secretary of state, auditor of state, treasurer of state, and 549
attorney general, and employees of the supreme court;550

       (3) Employees of a county children services board that551
establishes compensation rates under section 5153.12 of the552
Revised Code;553

       (4) Any position for which the authority to determine554
compensation is given by law to another individual or entity;555

       (5) Employees of the bureau of workers' compensation whose 556
compensation the administrator of workers' compensation557
establishes under division (B) of section 4121.121 of the Revised558
Code.559

       (C) The director may employ a consulting agency to aid and560
assist the director in carrying out this section.561

       (D)(1) When the director proposes to modify a classification562
or the assignment of classes to appropriate pay ranges, the563
director shall send written notice of the proposed rule to the564
appointing authorities of the affected employees thirty days565
before a hearing on the proposed rule. The appointing authorities 566
shall notify the affected employees regarding the proposed rule. 567
The director also shall send those appointing authorities notice 568
of any final rule that is adopted within ten days after adoption.569

       (2) When the director proposes to reclassify any employee so 570
that the employee is adversely affected, the director shall give 571
to the employee affected and to the employee's appointing572
authority a written notice setting forth the proposed new573
classification, pay range, and salary. Upon the request of any574
classified employee who is not serving in a probationary period,575
the director shall perform a job audit to review the576
classification of the employee's position to determine whether the 577
position is properly classified. The director shall give to the 578
employee affected and to the employee's appointing authority a 579
written notice of the director's determination whether or not to580
reclassify the position or to reassign the employee to another581
classification. An employee or appointing authority desiring a582
hearing shall file a written request for the hearing with the 583
state personnel board of review within thirty days after receiving 584
the notice. The board shall set the matter for a hearing and 585
notify the employee and appointing authority of the time and place 586
of the hearing. The employee, the appointing authority, or any587
authorized representative of the employee who wishes to submit588
facts for the consideration of the board shall be afforded589
reasonable opportunity to do so. After the hearing, the board590
shall consider anew the reclassification and may order the591
reclassification of the employee and require the director to592
assign the employee to such appropriate classification as the 593
facts and evidence warrant. As provided in division (A)(1) of 594
section 124.03 of the Revised Code, the board may determine the 595
most appropriate classification for the position of any employee 596
coming before the board, with or without a job audit. The board 597
shall disallow any reclassification or reassignment classification 598
of any employee when it finds that changes have been made in the 599
duties and responsibilities of any particular employee for 600
political, religious, or other unjust reasons.601

       (E)(1) Employees of each county department of job and family602
services shall be paid a salary or wage established by the board 603
of county commissioners. The provisions of section 124.18 of the 604
Revised Code concerning the standard work week apply to employees 605
of county departments of job and family services. A board of 606
county commissioners may do either of the following:607

       (a) Notwithstanding any other section of the Revised Code,608
supplement the sick leave, vacation leave, personal leave, and609
other benefits of any employee of the county department of job and 610
family services of that county, if the employee is eligible for 611
the supplement under a written policy providing for the 612
supplement;613

       (b) Notwithstanding any other section of the Revised Code,614
establish alternative schedules of sick leave, vacation leave,615
personal leave, or other benefits for employees not inconsistent616
with the provisions of a collective bargaining agreement covering617
the affected employees.618

       (2) Division (E)(1) of this section does not apply to 619
employees for whom the state employment relations board 620
establishes appropriate bargaining units pursuant to section 621
4117.06 of the Revised Code, except in either of the following 622
situations:623

       (a) The employees for whom the state employment relations624
board establishes appropriate bargaining units elect no625
representative in a board-conducted representation election.626

       (b) After the state employment relations board establishes627
appropriate bargaining units for such employees, all employee628
organizations withdraw from a representation election.629

       (F)(1) Notwithstanding any contrary provision of sections 630
124.01 to 124.64 of the Revised Code, the board of trustees of 631
each state university or college, as defined in section 3345.12 of 632
the Revised Code, shall carry out all matters of governance 633
involving the officers and employees of the university or college, 634
including, but not limited to, the powers, duties, and functions 635
of the department of administrative services and the director of 636
administrative services specified in this chapter. Officers and 637
employees of a state university or college shall have the right of 638
appeal to the state personnel board of review as provided in this 639
chapter.640

       (2) Each board of trustees shall adopt rules under section641
111.15 of the Revised Code to carry out the matters of governance642
described in division (F)(1) of this section. Until the board of643
trustees adopts those rules, a state university or college shall644
continue to operate pursuant to the applicable rules adopted by645
the director of administrative services under this chapter.646

       (G)(1) Each board of county commissioners may, by a647
resolution adopted by a majority of its members, establish a648
county personnel department to exercise the powers, duties, and649
functions specified in division (G) of this section. As used in650
division (G) of this section, "county personnel department" means651
a county personnel department established by a board of county652
commissioners under division (G)(1) of this section.653

       (2)(a) Each board of county commissioners, by a resolution 654
adopted by a majority of its members, may designate the county 655
personnel department of the county to exercise the powers, duties, 656
and functions of the department of administrative services and the 657
director of administrative services specified in sections 124.01 658
to 124.64 and Chapter 325. of the Revised Code, except for the 659
powers and duties of the state personnel board of review, which 660
powers and duties shall not be construed as having been modified 661
or diminished in any manner by division (G)(2) of this section, 662
with respect to the employees for whom the board of county 663
commissioners is the appointing authority or co-appointing664
authority. The board of county commissioners shall deliver a 665
certified copy of the resolution to the director of administrative 666
services not later than ten working days after the resolution is 667
adopted, and the director shall inform the board in a writing sent 668
by certified mail of the date of receipt of the copy of the 669
resolution.670

       (b) Upon the director's receipt of the copy of the 671
resolution, the powers, duties, and functions referred to in 672
division (G)(2)(a) of this section that may be exercised shall be 673
vested in and assigned to the county personnel department with674
respect to the employees for whom the board of county675
commissioners is the appointing authority or co-appointing676
authority. 677

       (c) Nothing in division (G)(2) of this section shall be678
construed to limit the right of any employee who possesses the679
right of appeal to the state personnel board of review to continue 680
to possess that right of appeal.681

       (d) Any board of county commissioners that has established a682
county personnel department may contract with the department of683
administrative services, another political subdivision, or an684
appropriate public or private entity to provide competitive685
testing services or other appropriate services.686

       (3) After the county personnel department of a county has687
assumed the powers, duties, and functions of the department of688
administrative services and the director of administrative 689
services as described in division (G)(2) of this section, any 690
elected official, board, agency, or other appointing authority of 691
that county, upon written notification to the director, may elect 692
to use the services and facilities of the county personnel 693
department. Upon the acceptance by the director of that written 694
notification, the county personnel department shall exercise the 695
powers, duties, and functions of the department of administrative 696
services and the director as described in division (G)(2) of this 697
section with respect to the employees of that elected official, 698
board, agency, or other appointing authority. The director shall 699
inform the elected official, board, agency, or other appointing 700
authority in a writing sent by certified mail of the date of 701
acceptance of that written notification. Except for those 702
employees under the jurisdiction of the county personnel 703
department, the director shall continue to exercise these powers, 704
duties, and functions with respect to employees of the county.705

       (4) When at least two years have passed since the creation of 706
a county personnel department, a board of county commissioners, by 707
a resolution adopted by a majority of its members, may disband the 708
county personnel department and return to the department of709
administrative services for the administration of sections 124.01710
to 124.64 and Chapter 325. of the Revised Code. The board shall 711
deliver a certified copy of the resolution to the director of 712
administrative services not later than ten working days after the 713
resolution is adopted, and the director shall inform the board in 714
a writing sent by certified mail of the date of receipt of the 715
copy of the resolution. Upon the director's receipt of the copy of 716
the resolution, all powers, duties, and functions previously 717
vested in and assigned to the county personnel department shall 718
return to the director.719

       (5) When at least two years have passed since electing to use 720
the services and facilities of a county personnel department, an 721
elected official, board, agency, or appointing authority of a 722
county may return to the department of administrative services for 723
the administration of sections 124.01 to 124.64 and Chapter 325. 724
of the Revised Code. The elected official, board, agency, or 725
appointing authority shall send the director of administrative 726
services a certified copy of the resolution that states its 727
decision to return to the department of administrative services' 728
jurisdiction, and the director shall inform the elected official, 729
board, agency, or appointing authority in a writing sent by 730
certified mail of the date of receipt of the copy of the 731
resolution. Upon the director's receipt of the copy of the 732
resolution, all powers, duties, and functions previously vested in 733
and assigned to the county personnel department with respect to 734
the employees of that elected official, board, agency, or 735
appointing authority shall return to the director.736

       (6) The director of administrative services, by rule adopted 737
in accordance with Chapter 119. of the Revised Code, shall 738
prescribe criteria and procedures for granting to each county 739
personnel department the powers, duties, and functions of the 740
department of administrative services and the director as 741
described in division (G)(2) of this section with respect to the 742
employees of an elected official, board, agency, or other 743
appointing authority or co-appointing authority. The rules shall 744
cover the following criteria and procedures:745

       (a) The notification to the department of administrative746
services that an elected official, board, agency, or other747
appointing authority of a county has elected to use the services748
and facilities of the county personnel department;749

       (b) A requirement that each county personnel department, in 750
carrying out its duties, adhere to merit system principles with 751
regard to employees of county departments of job and family 752
services, child support enforcement agencies, and public child 753
welfare agencies so that there is no threatened loss of federal 754
funding for these agencies, and a requirement that the county be755
financially liable to the state for any loss of federal funds due756
to the action or inaction of the county personnel department. The 757
costs associated with audits conducted to monitor compliance with 758
division (G)(6)(b) of this section shall be borne equally by the 759
department of administrative services and the county.760

       (c) The termination of services and facilities rendered by761
the department of administrative services, to include rate762
adjustments, time periods for termination, and other related763
matters;764

       (d) Authorization for the director of administrative services 765
to conduct periodic audits and reviews of county personnel 766
departments to guarantee the uniform application of this granting 767
of the director's powers, duties, and functions. The costs of the 768
audits and reviews shall be borne equally by the department of 769
administrative services and the county for which the services are 770
performed.771

       (e) The dissemination of audit findings under division772
(G)(6)(d) of this section, any appeals process relating to adverse 773
findings by the department, and the methods whereby the county 774
personnel program will revert to the authority of the director of 775
administrative services due to misuse or nonuniform application of 776
the authority granted to the county under division (G)(2) or (3) 777
of this section.778

       (H) The director of administrative services shall establish 779
the rate and method of compensation for all employees who are paid 780
directly by warrant of the director of budget and management and 781
who are serving in positions that the director of administrative 782
services has determined impracticable to include in the state job 783
classification plan. This division does not apply to elected784
officials, legislative employees, employees of the legislative785
service commission, employees who are in the unclassified civil 786
service and exempt from collective bargaining coverage in the 787
office of the secretary of state, auditor of state, treasurer of 788
state, and attorney general, employees of the courts, employees of 789
the bureau of workers' compensation whose compensation the790
administrator of workers' compensation establishes under division791
(B) of section 4121.121 of the Revised Code, or employees of an792
appointing authority authorized by law to fix the compensation of793
those employees.794

       (I) The director shall set the rate of compensation for all 795
intermittent, seasonal, temporary, emergency, and casual employees 796
in the service of the state who are not considered public 797
employees under section 4117.01 of the Revised Code. Those 798
employees are not entitled to receive employee benefits. This rate 799
of compensation shall be equitable in terms of the rate of 800
employees serving in the same or similar classifications. This 801
division does not apply to elected officials, legislative 802
employees, employees of the legislative service commission, 803
employees of the legislative budget office of the legislative 804
service commission, employees who are in the unclassified civil805
service and exempt from collective bargaining coverage in the 806
office of the secretary of state, auditor of state, treasurer of 807
state, and attorney general, employees of the courts, employees of 808
the bureau of workers' compensation whose compensation the 809
administrator establishes under division (B) of section 4121.121 810
of the Revised Code, or employees of an appointing authority 811
authorized by law to fix the compensation of those employees.812

       Sec. 126.02.  The director of budget and management shall813
prepare and submit to the governor, biennially, not later than the814
first day of January preceding the convening of the general815
assembly, state budget estimates of revenues and expenditures for816
each state fund and budget estimates for each state agency, except817
such estimates as are required under section 126.022 of the818
Revised Code. The budget estimates for each state agency for which 819
direct appropriations are proposed shall include the following 820
details:821

       (A) Estimates of the operating budget;822

       (B) Estimates of the subsidy appropriations necessary,823
delineated by a distinct subsidy program;824

       (C) Estimates for special purposes, delineated by a distinct825
special purpose program;826

       (D) Estimates of appropriations necessary from each fund in827
reasonable detail to allow for adequate planning and oversight of828
programs and activities.829

       In the preparation of state revenue and expenditure830
estimates, the director of budget and management shall, not later831
than the fifteenth day of September in the year preceding the832
first regular session of the general assembly, distribute to all833
affected state agencies the forms necessary for the preparation of834
budget requests, which shall be in the form prescribed by the835
director in consultation with legislative budget office of the836
legislative service commission to procure information concerning837
the revenues and expenditures for the preceding and current838
bienniums, an estimate of the revenues and expenditures of the839
current fiscal year, and an estimate of the revenues and proposed840
expenditures for the respective agencies for the two succeeding841
fiscal years for which appropriations have to be made. Each such842
agency shall, not later than the first day of November, file with843
the director its estimate of revenues and proposed expenditures844
for the succeeding biennium.845

       Each such agency shall, not later than the first day of846
December, file with the chairperson of the finance committees of847
the senate and house of representatives and the legislative 848
service commissionbudget office a duplicate copy of such budget 849
request.850

       The budget request shall be accompanied by a statement in851
writing giving facts and explanation of reasons for the items852
requested. The director and the legislative service commission853
budget office may make further inquiry and investigation as to any854
item desired. The director may approve, disapprove, or alter the855
requests, excepting those for the legislative and judicial856
branches of the state. The requests as revised by the director857
constitute the state budget estimates of revenues and expenditures858
which the director is required to submit to the governor.859

       The director shall determine a method to incorporate the 860
principles of zero-based budgeting into the forms prescribed in 861
this section.862

       Sec. 126.21.  (A) The director of budget and management shall 863
do all of the following:864

       (1) Keep all necessary accounting records;865

       (2) Prescribe and maintain the accounting system of the state 866
and establish appropriate accounting procedures and charts of 867
accounts;868

       (3) Establish procedures for the use of written, electronic,869
optical, or other communications media for approving and reviewing 870
payment vouchers;871

       (4) Reconcile, in the case of any variation between the872
amount of any appropriation and the aggregate amount of items of873
the appropriation, with the advice and assistance of the state874
agency affected by it and the legislative budget office of the 875
legislative service commission, totals so as to correspond in the876
aggregate with the total appropriation. In the case of a conflict877
between the item and the total of which it is a part, the item878
shall be considered the intended appropriation.879

       (5) Evaluate on an ongoing basis and, if necessary, recommend 880
improvements to the internal controls used in state agencies;881

       (6) Authorize the establishment of petty cash accounts. The882
director may withdraw approval for any petty cash account and 883
require the officer in charge to return to the state treasury any 884
unexpended balance shown by the officer's accounts to be on hand. 885
Any officer who is issued a warrant for petty cash shall render a 886
detailed account of the expenditures of the petty cash and shall 887
report when requested the balance of petty cash on hand at any 888
time.889

       (7) Process orders, invoices, vouchers, claims, and payrolls890
and prepare financial reports and statements;891

       (8) Perform extensions, reviews, and compliance checks prior892
to or after approving a payment as the director considers893
necessary;894

       (9) Issue the official comprehensive annual financial report895
of the state. The report shall cover all funds of the state896
reporting entity and shall include basic financial statements and897
required supplementary information prepared in accordance with898
generally accepted accounting principles and other information as899
the director provides. All state agencies, authorities,900
institutions, offices, retirement systems, and other component901
units of the state reporting entity as determined by the director902
shall furnish the director whatever financial statements and other903
information the director requests for the report, in the form, at904
the times, covering the periods, and with the attestation the905
director prescribes. The information for state institutions of906
higher education, as defined in section 3345.011 of the Revised907
Code, shall be submitted to the chancellor by the Ohio board of908
regents. The board shall establish a due date by which each such909
institution shall submit the information to the board, but no 910
such date shall be later than one hundred twenty days after the 911
end of the state fiscal year unless a later date is approved by 912
the director.913

       (B) In addition to the director's duties under division (A)914
of this section, the director may establish and administer one or 915
more state payment card programs that permit or require state 916
agencies to use a payment card to purchase equipment, materials,917
supplies, or services in accordance with guidelines issued by the 918
director. The chief administrative officer of a state agency that 919
uses a payment card for such purposes shall ensure that purchases 920
made with the card are made in accordance with the guidelines 921
issued by the director and do not exceed the unexpended, 922
unencumbered, unobligated balance in the appropriation to be 923
charged for the purchase. State agencies may participate in only 924
those state payment card programs that the director establishes 925
pursuant to this section.926

       (C) In addition to the director's duties under divisions (A) 927
and (B) of this section, the director may enter into any contract 928
or agreement necessary for and incidental to the performance of 929
the director's duties or the duties of the office of budget and 930
management.931

       Sec. 3333.04.  The chancellor of the Ohio board of regents 932
shall:933

       (A) Make studies of state policy in the field of higher934
education and formulate a master plan for higher education for the935
state, considering the needs of the people, the needs of the936
state, and the role of individual public and private institutions937
within the state in fulfilling these needs;938

       (B)(1) Report annually to the governor and the general939
assembly on the findings from the chancellor's studies and the 940
master plan for higher education for the state;941

       (2) Report at least semiannually to the general assembly and942
the governor the enrollment numbers at each state-assisted943
institution of higher education.944

       (C) Approve or disapprove the establishment of new branches945
or academic centers of state colleges and universities;946

       (D) Approve or disapprove the establishment of state947
technical colleges or any other state institution of higher948
education;949

       (E) Recommend the nature of the programs, undergraduate,950
graduate, professional, state-financed research, and public951
services which should be offered by the state colleges,952
universities, and other state-assisted institutions of higher953
education in order to utilize to the best advantage their954
facilities and personnel;955

       (F) Recommend to the state colleges, universities, and other956
state-assisted institutions of higher education graduate or957
professional programs, including, but not limited to, doctor of958
philosophy, doctor of education, and juris doctor programs, that959
could be eliminated because they constitute unnecessary960
duplication, as shall be determined using the process developed961
pursuant to this division, or for other good and sufficient cause. 962
Prior to recommending a program for elimination, the chancellor 963
shall request the board of regents to hold at least one public 964
hearing on the matter and advise the chancellor on whether the 965
program should be recommended for elimination. The board shall 966
provide notice of each hearing within a reasonable amount of time 967
prior to its scheduled date. Following the hearing, the board 968
shall issue a recommendation to the chancellor. The chancellor 969
shall consider the board's recommendation but shall not be 970
required to accept it.971

       For purposes of determining the amounts of any state972
instructional subsidies paid to state colleges, universities, and 973
other state-assisted institutions of higher education, the 974
chancellor may exclude students enrolled in any program that the975
chancellor has recommended for elimination pursuant to this 976
division except that the chancellor shall not exclude any such977
student who enrolled in the program prior to the date on which the 978
chancellor initially commences to exclude students under this979
division.980

       The chancellor and state colleges, universities, and other 981
state-assisted institutions of higher education shall jointly 982
develop a process for determining which existing graduate or 983
professional programs constitute unnecessary duplication.984

       (G) Recommend to the state colleges, universities, and other985
state-assisted institutions of higher education programs which986
should be added to their present programs;987

       (H) Conduct studies for the state colleges, universities, and 988
other state-assisted institutions of higher education to assist 989
them in making the best and most efficient use of their existing 990
facilities and personnel;991

       (I) Make recommendations to the governor and general assembly 992
concerning the development of state-financed capital plans for 993
higher education; the establishment of new state colleges, 994
universities, and other state-assisted institutions of higher 995
education; and the establishment of new programs at the existing 996
state colleges, universities, and other institutions of higher 997
education;998

       (J) Review the appropriation requests of the public community 999
colleges and the state colleges and universities and submit to the 1000
office of budget and management and to the chairpersons of the 1001
finance committees of the house of representatives and of the 1002
senate the chancellor's recommendations in regard to the biennial 1003
higher education appropriation for the state, including 1004
appropriations for the individual state colleges and universities 1005
and public community colleges. For the purpose of determining the 1006
amounts of instructional subsidies to be paid to state-assisted 1007
colleges and universities, the chancellor shall define "full-time 1008
equivalent student" by program per academic year. The definition 1009
may take into account the establishment of minimum enrollment 1010
levels in technical education programs below which support 1011
allowances will not be paid. Except as otherwise provided in this 1012
section, the chancellor shall make no change in the definition of 1013
"full-time equivalent student" in effect on November 15, 1981,1014
which would increase or decrease the number of subsidy-eligible1015
full-time equivalent students, without first submitting a fiscal1016
impact statement to the president of the senate, the speaker of1017
the house of representatives, legislative budget office of the1018
legislative service commission, and the director of budget and1019
management. The chancellor shall work in close cooperation with 1020
the director of budget and management in this respect and in all1021
other matters concerning the expenditures of appropriated funds1022
by state colleges, universities, and other institutions of higher1023
education.1024

       (K) Seek the cooperation and advice of the officers and1025
trustees of both public and private colleges, universities, and1026
other institutions of higher education in the state in performing1027
the chancellor's duties and making the chancellor's plans, 1028
studies, and recommendations;1029

       (L) Appoint advisory committees consisting of persons1030
associated with public or private secondary schools, members of1031
the state board of education, or personnel of the state department1032
of education;1033

       (M) Appoint advisory committees consisting of college and1034
university personnel, or other persons knowledgeable in the field1035
of higher education, or both, in order to obtain their advice and1036
assistance in defining and suggesting solutions for the problems1037
and needs of higher education in this state;1038

       (N) Approve or disapprove all new degrees and new degree1039
programs at all state colleges, universities, and other1040
state-assisted institutions of higher education;1041

       (O) Adopt such rules as are necessary to carry out the 1042
chancellor's duties and responsibilities. The rules shall 1043
prescribe procedures for the chancellor to follow when taking 1044
actions associated with the chancellor's duties and 1045
responsibilities and shall indicate which types of actions are 1046
subject to those procedures. The procedures adopted under this 1047
division shall be in addition to any other procedures prescribed 1048
by law for such actions. However, if any other provision of the 1049
Revised Code or rule adopted by the chancellor prescribes 1050
different procedures for such an action, the procedures adopted 1051
under this division shall not apply to that action to the extent 1052
they conflict with the procedures otherwise prescribed by law. The 1053
procedures adopted under this division shall include at least the 1054
following:1055

       (1) Provision for public notice of the proposed action;1056

        (2) An opportunity for public comment on the proposed action, 1057
which may include a public hearing on the action by the board of 1058
regents;1059

        (3) Methods for parties that may be affected by the proposed 1060
action to submit comments during the public comment period;1061

       (4) Submission of recommendations from the board of regents 1062
regarding the proposed action, at the request of the chancellor;1063

        (5) Written publication of the final action taken by the 1064
chancellor and the chancellor's rationale for the action;1065

       (6) A timeline for the process described in divisions (O)(1) 1066
to (5) of this section.1067

       (P) Establish and submit to the governor and the general1068
assembly a clear and measurable set of goals and timetables for1069
their achievement for each program under the chancellor's 1070
supervision that is designed to accomplish any of the following:1071

       (1) Increased access to higher education;1072

       (2) Job training;1073

       (3) Adult literacy;1074

       (4) Research;1075

       (5) Excellence in higher education;1076

       (6) Reduction in the number of graduate programs within the1077
same subject area.1078

       In July of each odd-numbered year, the chancellor shall1079
submit to the governor and the general assembly a report on1080
progress made toward these goals.1081

       (Q) Make recommendations to the governor and the general1082
assembly regarding the design and funding of the student financial1083
aid programs specified in sections 3333.12, 3333.122, 3333.21 to1084
3333.27, and 5910.02 of the Revised Code;1085

       (R) Participate in education-related state or federal1086
programs on behalf of the state and assume responsibility for the1087
administration of such programs in accordance with applicable1088
state or federal law;1089

       (S) Adopt rules for student financial aid programs as1090
required by sections 3333.12, 3333.122, 3333.21 to 3333.27, 1091
3333.28, and 5910.02 of the Revised Code, and perform any other1092
administrative functions assigned to the chancellor by those1093
sections;1094

       (T) Conduct enrollment audits of state-supported1095
institutions of higher education;1096

       (U) Appoint consortia of college and university personnel1097
to advise or participate in the development and operation of 1098
statewide collaborative efforts, including the Ohio supercomputer 1099
center, the Ohio academic resources network, OhioLink, and the1100
Ohio learning network. For each consortium, the chancellor shall 1101
designate a college or university to serve as that consortium's 1102
fiscal agent, financial officer, and employer. Any funds 1103
appropriated for the consortia shall be distributed to the 1104
fiscal agents for the operation of the consortia. A consortium 1105
shall follow the rules of the college or university that serves 1106
as its fiscal agent. The chancellor may restructure existing 1107
consortia, appointed under this division, in accordance with 1108
procedures adopted under divisions (D)(1) to (6) of this section.1109

       (V) Adopt rules establishing advisory duties and 1110
responsibilities of the board of regents not otherwise prescribed 1111
by law;1112

       (W) Respond to requests for information about higher 1113
education from members of the general assembly and direct staff to 1114
conduct research or analysis as needed for this purpose.1115

       Sec. 3333.12.  (A) As used in this section:1116

       (1) "Eligible student" means an undergraduate student who is:1117

       (a) An Ohio resident enrolled in an undergraduate program 1118
before the 2006-2007 academic year;1119

       (b) Enrolled in either of the following:1120

       (i) An accredited institution of higher education in this1121
state that meets the requirements of Title VI of the Civil Rights1122
Act of 1964 and is state-assisted, is nonprofit and has a1123
certificate of authorization pursuant to Chapter 1713. of the 1124
Revised Code, has a certificate of registration from the state 1125
board of career colleges and schools and program authorization to 1126
award an associate or bachelor's degree, or is a private1127
institution exempt from regulation under Chapter 3332. of the1128
Revised Code as prescribed in section 3333.046 of the Revised1129
Code. Students who attend an institution that holds a certificate1130
of registration shall be enrolled in a program leading to an1131
associate or bachelor's degree for which associate or bachelor's1132
degree program the institution has program authorization issued1133
under section 3332.05 of the Revised Code.1134

       (ii) A technical education program of at least two years1135
duration sponsored by a private institution of higher education in1136
this state that meets the requirements of Title VI of the Civil1137
Rights Act of 1964.1138

       (c) Enrolled as a full-time student or enrolled as a less1139
than full-time student for the term expected to be the student's1140
final term of enrollment and is enrolled for the number of credit1141
hours necessary to complete the requirements of the program in1142
which the student is enrolled.1143

       (2) "Gross income" includes all taxable and nontaxable income1144
of the parents, the student, and the student's spouse, except1145
income derived from an Ohio academic scholarship, income earned by1146
the student between the last day of the spring term and the first1147
day of the fall term, and other income exclusions designated by1148
the chancellor of the Ohio board of regents. Gross income may be 1149
verified to the chancellor by the institution in which the student 1150
is enrolled using the federal financial aid eligibility 1151
verification process or by other means satisfactory to the 1152
chancellor.1153

       (3) "Resident," "full-time student," "dependent,"1154
"financially independent," and "accredited" shall be defined by1155
rules adopted by the chancellor.1156

       (B) The chancellor shall establish and administer an 1157
instructional grant program and may adopt rules to carry out this 1158
section. The general assembly shall support the instructional 1159
grant program by such sums and in such manner as it may provide, 1160
but the chancellor may also receive funds from other sources to 1161
support the program. If the amounts available for support of the 1162
program are inadequate to provide grants to all eligible students, 1163
preference in the payment of grants shall be given in terms of 1164
income, beginning with the lowest income category of gross income 1165
and proceeding upward by category to the highest gross income 1166
category.1167

       An instructional grant shall be paid to an eligible student1168
through the institution in which the student is enrolled, except1169
that no instructional grant shall be paid to any person serving a1170
term of imprisonment. Applications for such grants shall be made1171
as prescribed by the chancellor, and such applications may be made 1172
in conjunction with and upon the basis of information provided in1173
conjunction with student assistance programs funded by agencies of1174
the United States government or from financial resources of the1175
institution of higher education. The institution shall certify1176
that the student applicant meets the requirements set forth in1177
divisions (A)(1)(b) and (c) of this section. Instructional grants1178
shall be provided to an eligible student only as long as the1179
student is making appropriate progress toward a nursing diploma or1180
an associate or bachelor's degree. No student shall be eligible to 1181
receive a grant for more than ten semesters, fifteen quarters, or 1182
the equivalent of five academic years. A grant made to an eligible 1183
student on the basis of less than full-time enrollment shall be 1184
based on the number of credit hours for which the student is 1185
enrolled and shall be computed in accordance with a formula1186
adopted by the chancellor. No student shall receive more than one1187
grant on the basis of less than full-time enrollment.1188

       An instructional grant shall not exceed the total1189
instructional and general charges of the institution.1190

       (C) The tables in this division prescribe the maximum grant1191
amounts covering two semesters, three quarters, or a comparable1192
portion of one academic year. Grant amounts for additional terms1193
in the same academic year shall be determined under division (D)1194
of this section.1195

       For a full-time student who is a dependent and enrolled in a1196
nonprofit educational institution that is not a state-assisted1197
institution and that has a certificate of authorization issued1198
pursuant to Chapter 1713. of the Revised Code, the amount of the1199
instructional grant for two semesters, three quarters, or a1200
comparable portion of the academic year shall be determined in1201
accordance with the following table:1202

Private Institution
1203

Table of Grants
1204

Maximum Grant $5,466 1205
Gross Income Number of Dependents 1206

1 2 3 4 5 or more 1207

$0 - $15,000 $5,466 $5,466 $5,466 $5,466 $5,466 1208
$15,001 - $16,000 4,920 5,466 5,466 5,466 5,466 1209
$16,001 - $17,000 4,362 4,920 5,466 5,466 5,466 1210
$17,001 - $18,000 3,828 4,362 4,920 5,466 5,466 1211
$18,001 - $19,000 3,288 3,828 4,362 4,920 5,466 1212
$19,001 - $22,000 2,736 3,288 3,828 4,362 4,920 1213
$22,001 - $25,000 2,178 2,736 3,288 3,828 4,362 1214
$25,001 - $28,000 1,626 2,178 2,736 3,288 3,828 1215
$28,001 - $31,000 1,344 1,626 2,178 2,736 3,288 1216
$31,001 - $32,000 1,080 1,344 1,626 2,178 2,736 1217
$32,001 - $33,000 984 1,080 1,344 1,626 2,178 1218
$33,001 - $34,000 888 984 1,080 1,344 1,626 1219
$34,001 - $35,000 444 888 984 1,080 1,344 1220
$35,001 - $36,000 -- 444 888 984 1,080 1221
$36,001 - $37,000 -- -- 444 888 984 1222
$37,001 - $38,000 -- -- -- 444 888 1223
$38,001 - $39,000 -- -- -- -- 444 1224

       For a full-time student who is financially independent and1225
enrolled in a nonprofit educational institution that is not a1226
state-assisted institution and that has a certificate of1227
authorization issued pursuant to Chapter 1713. of the Revised1228
Code, the amount of the instructional grant for two semesters,1229
three quarters, or a comparable portion of the academic year shall1230
be determined in accordance with the following table:1231

Private Institution
1232

Table of Grants
1233

Maximum Grant $5,466 1234
Gross Income Number of Dependents 1235

0 1 2 3 4 5 or more 1236

$0 - $4,800 $5,466 $5,466 $5,466 $5,466 $5,466 $5,466 1237
$4,801 - $5,300 4,920 5,466 5,466 5,466 5,466 5,466 1238
$5,301 - $5,800 4,362 5,196 5,466 5,466 5,466 5,466 1239
$5,801 - $6,300 3,828 4,914 5,196 5,466 5,466 5,466 1240
$6,301 - $6,800 3,288 4,650 4,914 5,196 5,466 5,466 1241
$6,801 - $7,300 2,736 4,380 4,650 4,914 5,196 5,466 1242
$7,301 - $8,300 2,178 4,104 4,380 4,650 4,914 5,196 1243
$8,301 - $9,300 1,626 3,822 4,104 4,380 4,650 4,914 1244
$9,301 - $10,300 1,344 3,546 3,822 4,104 4,380 4,650 1245
$10,301 - $11,800 1,080 3,408 3,546 3,822 4,104 4,380 1246
$11,801 - $13,300 984 3,276 3,408 3,546 3,822 4,104 1247
$13,301 - $14,800 888 3,228 3,276 3,408 3,546 3,822 1248
$14,801 - $16,300 444 2,904 3,228 3,276 3,408 3,546 1249
$16,301 - $19,300 -- 2,136 2,628 2,952 3,276 3,408 1250
$19,301 - $22,300 -- 1,368 1,866 2,358 2,676 3,000 1251
$22,301 - $25,300 -- 1,092 1,368 1,866 2,358 2,676 1252
$25,301 - $30,300 -- 816 1,092 1,368 1,866 2,358 1253
$30,301 - $35,300 -- 492 540 672 816 1,314 1254

       For a full-time student who is a dependent and enrolled in an1255
educational institution that holds a certificate of registration1256
from the state board of career colleges and schools or a private 1257
institution exempt from regulation under Chapter 3332. of the 1258
Revised Code as prescribed in section 3333.046 of the Revised1259
Code, the amount of the instructional grant for two semesters,1260
three quarters, or a comparable portion of the academic year shall1261
be determined in accordance with the following table:1262

Career Institution
1263

Table of Grants
1264

Maximum Grant $4,632 1265
Gross Income Number of Dependents 1266

1 2 3 4 5 or more 1267

$0 - $15,000 $4,632 $4,632 $4,632 $4,632 $4,632 1268
$15,001 - $16,000 4,182 4,632 4,632 4,632 4,632 1269
$16,001 - $17,000 3,684 4,182 4,632 4,632 4,632 1270
$17,001 - $18,000 3,222 3,684 4,182 4,632 4,632 1271
$18,001 - $19,000 2,790 3,222 3,684 4,182 4,632 1272
$19,001 - $22,000 2,292 2,790 3,222 3,684 4,182 1273
$22,001 - $25,000 1,854 2,292 2,790 3,222 3,684 1274
$25,001 - $28,000 1,416 1,854 2,292 2,790 3,222 1275
$28,001 - $31,000 1,134 1,416 1,854 2,292 2,790 1276
$31,001 - $32,000 906 1,134 1,416 1,854 2,292 1277
$32,001 - $33,000 852 906 1,134 1,416 1,854 1278
$33,001 - $34,000 750 852 906 1,134 1,416 1279
$34,001 - $35,000 372 750 852 906 1,134 1280
$35,001 - $36,000 -- 372 750 852 906 1281
$36,001 - $37,000 -- -- 372 750 852 1282
$37,001 - $38,000 -- -- -- 372 750 1283
$38,001 - $39,000 -- -- -- -- 372 1284

       For a full-time student who is financially independent and1285
enrolled in an educational institution that holds a certificate of1286
registration from the state board of career colleges and schools1287
or a private institution exempt from regulation under Chapter 1288
3332. of the Revised Code as prescribed in section 3333.046 of the 1289
Revised Code, the amount of the instructional grant for two1290
semesters, three quarters, or a comparable portion of the academic1291
year shall be determined in accordance with the following table:1292

Career Institution
1293

Table of Grants
1294

Maximum Grant $4,632 1295
Gross Income Number of Dependents 1296

0 1 2 3 4 5 or more 1297

$0 - $4,800 $4,632 $4,632 $4,632 $4,632 $4,632 $4,632 1298
$4,801 - $5,300 4,182 4,632 4,632 4,632 4,632 4,632 1299
$5,301 - $5,800 3,684 4,410 4,632 4,632 4,632 4,632 1300
$5,801 - $6,300 3,222 4,158 4,410 4,632 4,632 4,632 1301
$6,301 - $6,800 2,790 3,930 4,158 4,410 4,632 4,632 1302
$6,801 - $7,300 2,292 3,714 3,930 4,158 4,410 4,632 1303
$7,301 - $8,300 1,854 3,462 3,714 3,930 4,158 4,410 1304
$8,301 - $9,300 1,416 3,246 3,462 3,714 3,930 4,158 1305
$9,301 - $10,300 1,134 3,024 3,246 3,462 3,714 3,930 1306
$10,301 - $11,800 906 2,886 3,024 3,246 3,462 3,714 1307
$11,801 - $13,300 852 2,772 2,886 3,024 3,246 3,462 1308
$13,301 - $14,800 750 2,742 2,772 2,886 3,024 3,246 1309
$14,801 - $16,300 372 2,466 2,742 2,772 2,886 3,024 1310
$16,301 - $19,300 -- 1,800 2,220 2,520 2,772 2,886 1311
$19,301 - $22,300 -- 1,146 1,584 1,986 2,268 2,544 1312
$22,301 - $25,300 -- 930 1,146 1,584 1,986 2,268 1313
$25,301 - $30,300 -- 708 930 1,146 1,584 1,986 1314
$30,301 - $35,300 -- 426 456 570 708 1,116 1315

       For a full-time student who is a dependent and enrolled in a1316
state-assisted educational institution, the amount of the1317
instructional grant for two semesters, three quarters, or a1318
comparable portion of the academic year shall be determined in1319
accordance with the following table:1320

Public Institution
1321

Table of Grants
1322

Maximum Grant $2,190 1323
Gross Income Number of Dependents 1324

1 2 3 4 5 or more 1325

$0 - $15,000 $2,190 $2,190 $2,190 $2,190 $2,190 1326
$15,001 - $16,000 1,974 2,190 2,190 2,190 2,190 1327
$16,001 - $17,000 1,740 1,974 2,190 2,190 2,190 1328
$17,001 - $18,000 1,542 1,740 1,974 2,190 2,190 1329
$18,001 - $19,000 1,320 1,542 1,740 1,974 2,190 1330
$19,001 - $22,000 1,080 1,320 1,542 1,740 1,974 1331
$22,001 - $25,000 864 1,080 1,320 1,542 1,740 1332
$25,001 - $28,000 648 864 1,080 1,320 1,542 1333
$28,001 - $31,000 522 648 864 1,080 1,320 1334
$31,001 - $32,000 420 522 648 864 1,080 1335
$32,001 - $33,000 384 420 522 648 864 1336
$33,001 - $34,000 354 384 420 522 648 1337
$34,001 - $35,000 174 354 384 420 522 1338
$35,001 - $36,000 -- 174 354 384 420 1339
$36,001 - $37,000 -- -- 174 354 384 1340
$37,001 - $38,000 -- -- -- 174 354 1341
$38,001 - $39,000 -- -- -- -- 174 1342

       For a full-time student who is financially independent and1343
enrolled in a state-assisted educational institution, the amount1344
of the instructional grant for two semesters, three quarters, or a1345
comparable portion of the academic year shall be determined in1346
accordance with the following table:1347

Public Institution
1348

Table of Grants
1349

Maximum Grant $2,190 1350
Gross Income Number of Dependents 1351

0 1 2 3 4 5 or more 1352

$0 - $4,800 $2,190 $2,190 $2,190 $2,190 $2,190 $2,190 1353
$4,801 - $5,300 1,974 2,190 2,190 2,190 2,190 2,190 1354
$5,301 - $5,800 1,740 2,082 2,190 2,190 2,190 2,190 1355
$5,801 - $6,300 1,542 1,968 2,082 2,190 2,190 2,190 1356
$6,301 - $6,800 1,320 1,866 1,968 2,082 2,190 2,190 1357
$6,801 - $7,300 1,080 1,758 1,866 1,968 2,082 2,190 1358
$7,301 - $8,300 864 1,638 1,758 1,866 1,968 2,082 1359
$8,301 - $9,300 648 1,530 1,638 1,758 1,866 1,968 1360
$9,301 - $10,300 522 1,422 1,530 1,638 1,758 1,866 1361
$10,301 - $11,800 420 1,356 1,422 1,530 1,638 1,758 1362
$11,801 - $13,300 384 1,308 1,356 1,422 1,530 1,638 1363
$13,301 - $14,800 354 1,290 1,308 1,356 1,422 1,530 1364
$14,801 - $16,300 174 1,164 1,290 1,308 1,356 1,422 1365
$16,301 - $19,300 -- 858 1,050 1,182 1,308 1,356 1366
$19,301 - $22,300 -- 540 750 948 1,062 1,200 1367
$22,301 - $25,300 -- 432 540 750 948 1,062 1368
$25,301 - $30,300 -- 324 432 540 750 948 1369
$30,301 - $35,300 -- 192 210 264 324 522 1370

       (D) For a full-time student enrolled in an eligible1371
institution for a semester or quarter in addition to the portion1372
of the academic year covered by a grant determined under division1373
(C) of this section, the maximum grant amount shall be a1374
percentage of the maximum prescribed in the applicable table of1375
that division. The maximum grant for a fourth quarter shall be1376
one-third of the maximum amount prescribed under that division.1377
The maximum grant for a third semester shall be one-half of the1378
maximum amount prescribed under that division.1379

       (E) No grant shall be made to any student in a course of1380
study in theology, religion, or other field of preparation for a1381
religious profession unless such course of study leads to an1382
accredited bachelor of arts, bachelor of science, associate of1383
arts, or associate of science degree.1384

       (F)(1) Except as provided in division (F)(2) of this section, 1385
no grant shall be made to any student for enrollment during a 1386
fiscal year in an institution with a cohort default rate1387
determined by the United States secretary of education pursuant to1388
the "Higher Education Amendments of 1986," 100 Stat. 1278, 1408,1389
20 U.S.C.A. 1085, as amended, as of the fifteenth day of June1390
preceding the fiscal year, equal to or greater than thirty per1391
cent for each of the preceding two fiscal years.1392

       (2) Division (F)(1) of this section does not apply to the1393
following:1394

       (a) Any student enrolled in an institution that under the1395
federal law appeals its loss of eligibility for federal financial1396
aid and the United States secretary of education determines its1397
cohort default rate after recalculation is lower than the rate1398
specified in division (F)(1) of this section or the secretary1399
determines due to mitigating circumstances the institution may1400
continue to participate in federal financial aid programs. The 1401
chancellor shall adopt rules requiring institutions to provide1402
information regarding an appeal to the chancellor.1403

       (b) Any student who has previously received a grant under1404
this section who meets all other requirements of this section.1405

       (3) The chancellor shall adopt rules for the notification of 1406
all institutions whose students will be ineligible to participate 1407
in the grant program pursuant to division (F)(1) of this section.1408

       (4) A student's attendance at an institution whose students1409
lose eligibility for grants under division (F)(1) of this section1410
shall not affect that student's eligibility to receive a grant1411
when enrolled in another institution.1412

       (G) Institutions of higher education that enroll students1413
receiving instructional grants under this section shall report to1414
the chancellor all students who have received instructional grants 1415
but are no longer eligible for all or part of such grants and 1416
shall refund any moneys due the state within thirty days after the1417
beginning of the quarter or term immediately following the quarter1418
or term in which the student was no longer eligible to receive all1419
or part of the student's grant. There shall be an interest charge1420
of one per cent per month on all moneys due and payable after such1421
thirty-day period. The chancellor shall immediately notify the 1422
office of budget and management and legislative budget office of1423
the legislative service commission of all refunds so received.1424

       Sec. 3333.122.  (A) As used in this section:1425

       (1) "Eligible student" means a student who is:1426

       (a) An Ohio resident who first enrolls in an undergraduate 1427
program in the 2006-2007 academic year or thereafter;1428

       (b) If the student first enrolled in an undergraduate 1429
program in the 2006-2007 or 2007-2008 academic year, the student 1430
is enrolled in one of the following:1431

       (i) An accredited institution of higher education in this1432
state that meets the requirements of Title VI of the Civil Rights1433
Act of 1964 and is state-assisted, is nonprofit and has a1434
certificate of authorization pursuant to Chapter 1713. of the 1435
Revised Code, has a certificate of registration from the state 1436
board of career colleges and schools and program authorization to 1437
award an associate or bachelor's degree, or is a private1438
institution exempt from regulation under Chapter 3332. of the1439
Revised Code as prescribed in section 3333.046 of the Revised1440
Code. Students who attend an institution that holds a certificate1441
of registration shall be enrolled in a program leading to an1442
associate or bachelor's degree for which associate or bachelor's1443
degree program the institution has program authorization issued1444
under section 3332.05 of the Revised Code.1445

       (ii) A technical education program of at least two years1446
duration sponsored by a private institution of higher education in1447
this state that meets the requirements of Title VI of the Civil1448
Rights Act of 1964;1449

       (iii) A nursing diploma program approved by the board of 1450
nursing under division (A)(5) of section 4723.06 of the Revised 1451
Code and that meets the requirements of Title VI of the Civil 1452
Rights Act of 1964.1453

       (c) If the student first enrolled in an undergraduate program 1454
after the 2007-2008 academic year, the student is enrolled in 1455
one of the following:1456

       (i) An accredited institution of higher education in this 1457
state that meets the requirements of Title VI of the Civil Rights 1458
Act of 1964 and is state-assisted, is nonprofit and has a 1459
certificate of authorization pursuant to Chapter 1713. of the 1460
Revised Code, or is a private institution exempt from regulation 1461
under Chapter 3332. of the Revised Code as prescribed in section 1462
3333.046 of the Revised Code;1463

       (ii) An education program of at least two years duration 1464
sponsored by a private institution of higher education in this 1465
state that meets the requirements of Title VI of the Civil Rights 1466
Act of 1964 and has a certificate of authorization pursuant to 1467
Chapter 1713. of the Revised Code;1468

       (iii) A nursing diploma program approved by the board of 1469
nursing under division (A)(5) of section 4723.06 of the Revised 1470
Code and that meets the requirements of Title VI of the Civil 1471
Rights Act of 1964.1472

       (2) A student who participated in either the early college 1473
high school program administered by the department of education or 1474
in the post-secondary enrollment options program pursuant to 1475
Chapter 3365. of the Revised Code before the 2006-2007 academic 1476
year shall not be excluded from eligibility for a needs-based 1477
financial aid grant under this section.1478

       (3) "Resident," "expected family contribution" or "EFC," 1479
"full-time student," "three-quarters-time student," "half-time 1480
student," "one-quarter-time student," and "accredited" shall be 1481
defined by rules adopted by the chancellor of the Ohio board of 1482
regents.1483

       (B) The chancellor shall establish and administer a 1484
needs-based financial aid program based on the United States 1485
department of education's method of determining financial need and 1486
may adopt rules to carry out this section. The program shall be 1487
known as the Ohio college opportunity grant program. The general 1488
assembly shall support the needs-based financial aid program by 1489
such sums and in such manner as it may provide, but the chancellor 1490
may also receive funds from other sources to support the program. 1491
If the amounts available for support of the program are inadequate 1492
to provide grants to all eligible students, preference in the 1493
payment of grants shall be given in terms of expected family 1494
contribution, beginning with the lowest expected family 1495
contribution category and proceeding upward by category to the1496
highest expected family contribution category.1497

       A needs-based financial aid grant shall be paid to an 1498
eligible student through the institution in which the student is 1499
enrolled, except that no needs-based financial aid grant shall be 1500
paid to any person serving a term of imprisonment. Applications 1501
for such grants shall be made as prescribed by the chancellor, and1502
such applications may be made in conjunction with and upon the1503
basis of information provided in conjunction with student1504
assistance programs funded by agencies of the United States1505
government or from financial resources of the institution of1506
higher education. The institution shall certify that the student1507
applicant meets the requirements set forth in divisions (A)(1)(a) 1508
and (b) of this section. Needs-based financial aid grants shall be 1509
provided to an eligible student only as long as the student is 1510
making appropriate progress toward a nursing diploma or an 1511
associate or bachelor's degree. No student shall be eligible to 1512
receive a grant for more than ten semesters, fifteen quarters, or 1513
the equivalent of five academic years. A grant made to an eligible 1514
student on the basis of less than full-time enrollment shall be 1515
based on the number of credit hours for which the student is 1516
enrolled and shall be computed in accordance with a formula1517
adopted by the chancellor. No student shall receive more than one1518
grant on the basis of less than full-time enrollment.1519

       A needs-based financial aid grant shall not exceed the total1520
instructional and general charges of the institution.1521

       (C) The tables in this division prescribe the maximum grant1522
amounts covering two semesters, three quarters, or a comparable1523
portion of one academic year. Grant amounts for additional terms1524
in the same academic year shall be determined under division (D)1525
of this section.1526

       As used in the tables in division (C) of this section:1527

        (1) "Private institution" means an institution that is 1528
nonprofit and has a certificate of authorization pursuant to 1529
Chapter 1713. of the Revised Code.1530

        (2) "Career college" means either an institution that holds a 1531
certificate of registration from the state board of career 1532
colleges and schools or a private institution exempt from 1533
regulation under Chapter 3332. of the Revised Code as prescribed 1534
in section 3333.046 of the Revised Code.1535

       Full-time students shall be eligible to receive awards 1536
according to the following table:1537

Full-Time Enrollment
1538

If the EFC is equal to or greater than: And if the EFC is no more than: If the student attends a public institution, the annual award shall be: If the student attends a private institution, the annual award shall be: If the student attends a career college, the annual award shall be: 1539
$2,101 $2,190 $300 $600 $480 1540
2,001 2,100 402 798 642 1541
1,901 2,000 498 1,002 798 1542
1,801 1,900 600 1,200 960 1543
1,701 1,800 702 1,398 1,122 1544
1,601 1,700 798 1,602 1,278 1545
1,501 1,600 900 1,800 1,440 1546
1,401 1,500 1,002 1,998 1,602 1547
1,301 1,400 1,098 2,202 1,758 1548
1,201 1,300 1,200 2,400 1,920 1549
1,101 1,200 1,302 2,598 2,082 1550
1,001 1,100 1,398 2,802 2,238 1551
901 1,000 1,500 3,000 2,400 1552
801 900 1,602 3,198 2,562 1553
701 800 1,698 3,402 2,718 1554
601 700 1,800 3,600 2,280 1555
501 600 1,902 3,798 3,042 1556
401 500 1,998 4,002 3,198 1557
301 400 2,100 4,200 3,360 1558
201 300 2,202 4,398 3,522 1559
101 200 2,298 4,602 3,678 1560
1 100 2,400 4,800 3,840 1561
0 0 2,496 4,992 3,996 1562

       Three-quarters-time students shall be eligible to receive 1563
awards according to the following table:1564

Three-Quarters-Time Enrollment
1565

If the EFC is equal to or greater than: And the EFC is no more than: If the student attends a public institution, the annual award shall be: If the student attends a private institution, the annual award shall be: If the student attends a career college, the annual award shall be: 1566
$2,101 $2,190 $228 $450 $360 1567
2,001 2,100 300 600 480 1568
1,901 2,000 372 750 600 1569
1,801 1,900 450 900 720 1570
1,701 1,800 528 1,050 840 1571
1,601 1,700 600 1,200 960 1572
1,501 1,600 678 1,350 1,080 1573
1,401 1,500 750 1,500 1,200 1574
1,301 1,400 822 1,650 1,320 1575
1,201 1,300 900 1,800 1,440 1576
1,101 1,200 978 1,950 1,560 1577
1,001 1,100 1,050 2,100 1,680 1578
901 1,000 1,128 2,250 1,800 1579
801 900 1,200 2,400 1,920 1580
701 800 1,272 2,550 2,040 1581
601 700 1,350 2,700 2,160 1582
501 600 1,428 2,850 2,280 1583
401 500 1,500 3,000 2,400 1584
301 400 1,578 3,150 2,520 1585
201 300 1,650 3,300 2,640 1586
101 200 1,722 3,450 2,760 1587
1 100 1,800 3,600 2,880 1588
0 0 1,872 3,744 3,000 1589

       Half-time students shall be eligible to receive awards 1590
according to the following table:1591

Half-Time Enrollment
1592

If the EFC is equal to or greater than: And if the EFC is no more than: If the student attends a public institution, the annual award shall be: If the student attends a private institution, the annual award shall be: If the student attends a career college, the annual award shall be: 1593
$2,101 $2,190 $150 $300 $240 1594
2,001 2,100 204 402 324 1595
1,901 2,000 252 504 402 1596
1,801 1,900 300 600 480 1597
1,701 1,800 354 702 564 1598
1,601 1,700 402 804 642 1599
1,501 1,600 450 900 720 1600
1,401 1,500 504 1,002 804 1601
1,301 1,400 552 1,104 882 1602
1,201 1,300 600 1,200 960 1603
1,101 1,200 654 1,302 1,044 1604
1,001 1,100 702 1,404 1,122 1605
901 1,000 750 1,500 1,200 1606
801 900 804 1,602 1,284 1607
701 800 852 1,704 1,362 1608
601 700 900 1,800 1,440 1609
501 600 954 1,902 1,524 1610
401 500 1,002 2,004 1,602 1611
301 400 1,050 2,100 1,680 1612
201 300 1,104 2,202 1,764 1613
101 200 1,152 2,304 1,842 1614
1 100 1,200 2,400 1,920 1615
0 0 1,248 2,496 1,998 1616

       One-quarter-time students shall be eligible to receive awards 1617
according to the following table:1618

One-Quarter-Time Enrollment
1619

If the EFC is equal to or greater than: And if the EFC is no more than: If the student attends a public institution, the annual award shall be: If the student attends a private institution, the annual award shall be: If the student attends a career college, the annual award shall be: 1620
$2,101 $2,190 $78 $150 $120 1621
2,001 2,100 102 198 162 1622
1,901 2,000 126 252 198 1623
1,801 1,900 150 300 240 1624
1,701 1,800 174 348 282 1625
1,601 1,700 198 402 318 1626
1,501 1,600 228 450 360 1627
1,401 1,500 252 498 402 1628
1,301 1,400 276 552 438 1629
1,201 1,300 300 600 480 1630
1,101 1,200 324 648 522 1631
1,001 1,100 348 702 558 1632
901 1,000 378 750 600 1633
801 900 402 798 642 1634
701 800 426 852 678 1635
601 700 450 900 720 1636
501 600 474 948 762 1637
401 500 498 1,002 798 1638
301 400 528 1,050 840 1639
201 300 552 1,098 882 1640
101 200 576 1,152 918 1641
1 100 600 1,200 960 1642
0 0 624 1,248 1,002 1643

       (D) For a full-time student enrolled in an eligible1644
institution for a semester or quarter in addition to the portion1645
of the academic year covered by a grant determined under division1646
(C) of this section, the maximum grant amount shall be a1647
percentage of the maximum prescribed in the applicable table of1648
that division. The maximum grant for a fourth quarter shall be1649
one-third of the maximum amount prescribed under that division.1650
The maximum grant for a third semester shall be one-half of the1651
maximum amount prescribed under that division.1652

       (E) No grant shall be made to any student in a course of1653
study in theology, religion, or other field of preparation for a1654
religious profession unless such course of study leads to an1655
accredited bachelor of arts, bachelor of science, associate of1656
arts, or associate of science degree.1657

       (F)(1) Except as provided in division (F)(2) of this section, 1658
no grant shall be made to any student for enrollment during a 1659
fiscal year in an institution with a cohort default rate1660
determined by the United States secretary of education pursuant to1661
the "Higher Education Amendments of 1986," 100 Stat. 1278, 1408,1662
20 U.S.C.A. 1085, as amended, as of the fifteenth day of June1663
preceding the fiscal year, equal to or greater than thirty per1664
cent for each of the preceding two fiscal years.1665

       (2) Division (F)(1) of this section does not apply to the1666
following:1667

       (a) Any student enrolled in an institution that under the1668
federal law appeals its loss of eligibility for federal financial1669
aid and the United States secretary of education determines its1670
cohort default rate after recalculation is lower than the rate1671
specified in division (F)(1) of this section or the secretary1672
determines due to mitigating circumstances the institution may1673
continue to participate in federal financial aid programs. The1674
chancellor shall adopt rules requiring institutions to provide1675
information regarding an appeal to the chancellor.1676

       (b) Any student who has previously received a grant under1677
this section who meets all other requirements of this section.1678

       (3) The chancellor shall adopt rules for the notification of 1679
all institutions whose students will be ineligible to participate 1680
in the grant program pursuant to division (F)(1) of this section.1681

       (4) A student's attendance at an institution whose students1682
lose eligibility for grants under division (F)(1) of this section1683
shall not affect that student's eligibility to receive a grant1684
when enrolled in another institution.1685

       (G) Institutions of higher education that enroll students1686
receiving needs-based financial aid grants under this section 1687
shall report to the chancellor all students who have received 1688
needs-based financial aid grants but are no longer eligible for 1689
all or part of such grants and shall refund any moneys due the 1690
state within thirty days after the beginning of the quarter or 1691
term immediately following the quarter or term in which the 1692
student was no longer eligible to receive all or part of the 1693
student's grant. There shall be an interest charge of one per cent 1694
per month on all moneys due and payable after such thirty-day 1695
period. The chancellor shall immediately notify the office of 1696
budget and management and the legislative budget office of the1697
legislative service commission of all refunds so received.1698

       Sec. 3333.27.  As used in this section:1699

       (A) "Eligible institution" means a nonprofit Ohio institution 1700
of higher education that holds a certificate of authorization 1701
issued under section 1713.02 of the Revised Code and meets the 1702
requirements of Title VI of the Civil Rights Act of 1964.1703

       (B) "Resident" and "full-time student" have the meanings1704
established for purposes of this section by rule of the chancellor 1705
of the Ohio board of regents.1706

       The chancellor shall establish and administer a student1707
choice grant program and shall adopt rules for the administration1708
of the program.1709

       The chancellor may make a grant to any resident of this state 1710
who is enrolled as a full-time student in a bachelor's degree 1711
program at an eligible institution and maintains an academic 1712
record that meets or exceeds the standard established pursuant to 1713
this section by rule of the chancellor, except that no grant shall 1714
be made to any individual who was enrolled as a student in an 1715
institution of higher education on or before July 1, 1984, or is 1716
serving a term of imprisonment. The grant shall not exceed the 1717
lesser of the total instructional and general charges of the 1718
institution in which the student is enrolled, or an amount equal 1719
to one-fourth of the total of any state instructional subsidy 1720
amount distributed by the chancellor in the second fiscal year of 1721
the preceding biennium for all full-time students enrolled in1722
bachelor's degree programs at four-year state-assisted1723
institutions of higher education divided by the sum of the actual1724
number of full-time students enrolled in bachelor's degree1725
programs at four-year state-assisted institutions of higher1726
education reported to the chancellor for such year by the 1727
institutions to which the subsidy was distributed.1728

       The chancellor shall prescribe the form and manner of1729
application for grants including the manner of certification by1730
eligible institutions that each applicant from such institution is 1731
enrolled in a bachelor's degree program as a full-time student and 1732
has an academic record that meets or exceeds the standard1733
established by the chancellor.1734

       A grant awarded to an eligible student shall be paid to the1735
institution in which the student is enrolled, and the institution1736
shall reduce the student's instructional and general charges by1737
the amount of the grant. Each grant awarded shall be prorated and1738
paid in equal installments at the time of enrollment for each term1739
of the academic year for which the grant is awarded. No student1740
shall be eligible to receive a grant for more than ten semesters,1741
fifteen quarters, or the equivalent of five academic years.1742

       The receipt of an Ohio student choice grant shall not affect1743
a student's eligibility for assistance, or the amount of such1744
assistance, granted under section 3315.33, 3333.12, 3333.122, 1745
3333.22, 3333.26, 5910.03, 5910.032, or 5919.34 of the Revised 1746
Code. If a student receives assistance under one or more of such 1747
sections, the student choice grant made to the student shall not1748
exceed the difference between the amount of assistance received 1749
under such sections and the total instructional and general 1750
charges of the institution in which the student is enrolled.1751

       The general assembly shall support the student choice grant1752
program by such sums and in such manner as it may provide, but the 1753
chancellor may also receive funds from other sources to support 1754
the program.1755

       No grant shall be made to any student enrolled in a course of1756
study leading to a degree in theology, religion, or other field of1757
preparation for a religious profession unless the course of study1758
leads to an accredited bachelor of arts or bachelor of science1759
degree.1760

       Institutions of higher education that enroll students1761
receiving grants under this section shall report to the chancellor 1762
the name of each student who has received such a grant but who is 1763
no longer eligible for all or part of such grant and shall refund 1764
all moneys due to the state within thirty days after the beginning 1765
of the term immediately following the term in which the student 1766
was no longer eligible to receive all or part of the grant. There1767
shall be an interest charge of one per cent per month on all1768
moneys due and payable after such thirty-day period. The 1769
chancellor shall immediately notify the office of budget and 1770
management and the legislative budget office of the legislative1771
service commission of all refunds received.1772

       Sec. 3769.08.  (A) Any person holding a permit to conduct a1773
horse-racing meeting may provide a place in the race meeting1774
grounds or enclosure at which the permit holder may conduct and1775
supervise the pari-mutuel system of wagering by patrons of legal1776
age on the live racing programs and simulcast racing programs1777
conducted by the permit holder.1778

       The pari-mutuel method of wagering upon the live racing1779
programs and simulcast racing programs held at or conducted within1780
such race track, and at the time of such horse-racing meeting, or1781
at other times authorized by the state racing commission, shall1782
not be unlawful. No other place, except that provided and1783
designated by the permit holder and except as provided in section1784
3769.26 of the Revised Code, nor any other method or system of1785
betting or wagering, except the pari-mutuel system, shall be used1786
or permitted by the permit holder; nor, except as provided in1787
section 3769.089 or 3769.26 of the Revised Code, shall the1788
pari-mutuel system of wagering be conducted by the permit holder1789
on any races except the races at the race track, grounds, or1790
enclosure for which the person holds a permit. Each permit holder1791
may retain as a commission an amount not to exceed eighteen per1792
cent of the total of all moneys wagered.1793

       The pari-mutuel wagering authorized by this section is1794
subject to sections 3769.25 to 3769.28 of the Revised Code.1795

       (B) At the close of each racing day, each permit holder1796
authorized to conduct thoroughbred racing, out of the amount1797
retained on that day by the permit holder, shall pay by check,1798
draft, or money order to the tax commissioner, as a tax, a sum1799
equal to the following percentages of the total of all moneys1800
wagered on live racing programs on that day and shall separately1801
compute and pay by check, draft, or money order to the tax1802
commissioner, as a tax, a sum equal to the following percentages1803
of the total of all money wagered on simulcast racing programs on1804
that day:1805

       (1) One per cent of the first two hundred thousand dollars1806
wagered, or any part of that amount;1807

       (2) Two per cent of the next one hundred thousand dollars1808
wagered, or any part of that amount;1809

       (3) Three per cent of the next one hundred thousand dollars1810
wagered, or any part of that amount;1811

       (4) Four per cent of all sums over four hundred thousand1812
dollars wagered.1813

       Except as otherwise provided in section 3769.089 of the1814
Revised Code, each permit holder authorized to conduct1815
thoroughbred racing shall use for purse money a sum equal to fifty1816
per cent of the pari-mutuel revenues retained by the permit holder1817
as a commission after payment of the state tax. This fifty per1818
cent payment shall be in addition to the purse distribution from1819
breakage specified in this section.1820

       Subject to division (M) of this section, from the moneys paid1821
to the tax commissioner by thoroughbred racing permit holders,1822
one-half of one per cent of the total of all moneys so wagered on1823
a racing day shall be paid into the Ohio fairs fund created by1824
section 3769.082 of the Revised Code, one and one-eighth per cent1825
of the total of all moneys so wagered on a racing day shall be1826
paid into the Ohio thoroughbred race fund created by section1827
3769.083 of the Revised Code, and one-quarter of one per cent of1828
the total of all moneys wagered on a racing day by each permit1829
holder shall be paid into the state racing commission operating1830
fund created by section 3769.03 of the Revised Code. The required1831
payment to the state racing commission operating fund does not1832
apply to county and independent fairs and agricultural societies.1833
The remaining moneys may be retained by the permit holder, except1834
as provided in this section with respect to the odd cents1835
redistribution. Amounts paid into the PASSPORT fund shall be used1836
solely for the support of the PASSPORT program as determined in1837
appropriations made by the general assembly. If the PASSPORT1838
program is abolished, the amount that would have been paid to the1839
PASSPORT fund under this chapter shall be paid to the general1840
revenue fund of the state. As used in this chapter, "PASSPORT1841
program" means the PASSPORT program created under section 173.401842
of the Revised Code.1843

       The total amount paid to the Ohio thoroughbred race fund1844
under this section and division (A) of section 3769.087 of the1845
Revised Code shall not exceed by more than six per cent the total1846
amount paid to this fund under this section and that section1847
during the immediately preceding calendar year.1848

       Each year, the total amount calculated for payment into the1849
Ohio fairs fund under this division, division (C) of this section,1850
and division (A) of section 3769.087 of the Revised Code shall be1851
an amount calculated using the percentages specified in this1852
division, division (C) of this section, and division (A) of1853
section 3769.087 of the Revised Code.1854

       A permit holder may contract with a thoroughbred horsemen's1855
organization for the organization to act as a representative of1856
all thoroughbred owners and trainers participating in a1857
horse-racing meeting conducted by the permit holder. A1858
"thoroughbred horsemen's organization" is any corporation or1859
association that represents, through membership or otherwise, more1860
than one-half of the aggregate of all thoroughbred owners and1861
trainers who were licensed and actively participated in racing1862
within this state during the preceding calendar year. Except as1863
otherwise provided in this paragraph, any moneys received by a1864
thoroughbred horsemen's organization shall be used exclusively for1865
the benefit of thoroughbred owners and trainers racing in this1866
state through the administrative purposes of the organization,1867
benevolent activities on behalf of the horsemen, promotion of the1868
horsemen's rights and interests, and promotion of equine research.1869
A thoroughbred horsemen's organization may expend not more than an1870
aggregate of five per cent of its annual gross receipts, or a1871
larger amount as approved by the organization, for dues,1872
assessments, and other payments to all other local, national, or1873
international organizations having as their primary purposes the1874
promotion of thoroughbred horse racing, thoroughbred horsemen's1875
rights, and equine research.1876

       (C) Except as otherwise provided in division (B) of this1877
section, at the close of each racing day, each permit holder1878
authorized to conduct harness or quarter horse racing, out of the1879
amount retained that day by the permit holder, shall pay by check,1880
draft, or money order to the tax commissioner, as a tax, a sum1881
equal to the following percentages of the total of all moneys1882
wagered on live racing programs and shall separately compute and1883
pay by check, draft, or money order to the tax commissioner, as a1884
tax, a sum equal to the following percentages of the total of all1885
money wagered on simulcast racing programs on that day:1886

       (1) One per cent of the first two hundred thousand dollars1887
wagered, or any part of that amount;1888

       (2) Two per cent of the next one hundred thousand dollars1889
wagered, or any part of that amount;1890

       (3) Three per cent of the next one hundred thousand dollars1891
wagered, or any part of that amount;1892

       (4) Four per cent of all sums over four hundred thousand1893
dollars wagered.1894

       Except as otherwise provided in division (B) and subject to1895
division (M) of this section, from the moneys paid to the tax1896
commissioner by permit holders authorized to conduct harness or1897
quarter horse racing, one-half of one per cent of all moneys1898
wagered on that racing day shall be paid into the Ohio fairs fund;1899
from the moneys paid to the tax commissioner by permit holders1900
authorized to conduct harness racing, five-eighths of one per cent1901
of all moneys wagered on that racing day shall be paid into the1902
Ohio standardbred development fund; and from the moneys paid to1903
the tax commissioner by permit holders authorized to conduct1904
quarter horse racing, five-eighths of one per cent of all moneys1905
wagered on that racing day shall be paid into the Ohio quarter1906
horse development fund.1907

       (D) In addition, subject to division (M) of this section,1908
beginning on January 1, 1996, from the money paid to the tax1909
commissioner as a tax under this section and division (A) of1910
section 3769.087 of the Revised Code by harness horse permit1911
holders, one-half of one per cent of the amount wagered on a1912
racing day shall be paid into the Ohio standardbred development1913
fund. Beginning January 1, 1998, the payment to the Ohio1914
standardbred development fund required under this division does1915
not apply to county agricultural societies or independent1916
agricultural societies.1917

       The total amount paid to the Ohio standardbred development1918
fund under this division, division (C) of this section, and1919
division (A) of section 3769.087 of the Revised Code and the total1920
amount paid to the Ohio quarter horse development fund under this1921
division and division (A) of that section shall not exceed by more1922
than six per cent the total amount paid into the fund under this1923
division, division (C) of this section, and division (A) of1924
section 3769.087 of the Revised Code in the immediately preceding1925
calendar year.1926

       (E) Subject to division (M) of this section, from the money1927
paid as a tax under this chapter by harness and quarter horse1928
permit holders, one-quarter of one per cent of the total of all1929
moneys wagered on a racing day by each permit holder shall be paid1930
into the state racing commission operating fund created by section1931
3769.03 of the Revised Code. This division does not apply to1932
county and independent fairs and agricultural societies.1933

       (F) Except as otherwise provided in section 3769.089 of the1934
Revised Code, each permit holder authorized to conduct harness1935
racing shall pay to the harness horsemen's purse pool a sum equal1936
to fifty per cent of the pari-mutuel revenues retained by the1937
permit holder as a commission after payment of the state tax. This1938
fifty per cent payment is to be in addition to the purse1939
distribution from breakage specified in this section.1940

       (G) In addition, each permit holder authorized to conduct1941
harness racing shall be allowed to retain the odd cents of all1942
redistribution to be made on all mutual contributions exceeding a1943
sum equal to the next lowest multiple of ten.1944

       Forty per cent of that portion of that total sum of such odd1945
cents shall be used by the permit holder for purse money for Ohio1946
sired, bred, and owned colts, for purse money for Ohio bred1947
horses, and for increased purse money for horse races. Upon the1948
formation of the corporation described in section 3769.21 of the1949
Revised Code to establish a harness horsemen's health and1950
retirement fund, twenty-five per cent of that portion of that1951
total sum of odd cents shall be paid at the close of each racing1952
day by the permit holder to that corporation to establish and fund 1953
the health and retirement fund. Until that corporation is formed, 1954
that twenty-five per cent shall be paid at the close of each 1955
racing day by the permit holder to the tax commissioner or the tax 1956
commissioner's agent in the county seat of the county in which the 1957
permit holder operates race meetings. The remaining thirty-five 1958
per cent of that portion of that total sum of odd cents shall be1959
retained by the permit holder.1960

       (H) In addition, each permit holder authorized to conduct1961
thoroughbred racing shall be allowed to retain the odd cents of1962
all redistribution to be made on all mutuel contributions1963
exceeding a sum equal to the next lowest multiple of ten. Twenty1964
per cent of that portion of that total sum of such odd cents shall1965
be used by the permit holder for increased purse money for horse1966
races. Upon the formation of the corporation described in section1967
3769.21 of the Revised Code to establish a thoroughbred horsemen's1968
health and retirement fund, forty-five per cent of that portion of1969
that total sum of odd cents shall be paid at the close of each1970
racing day by the permit holder to that corporation to establish1971
and fund the health and retirement fund. Until that corporation is 1972
formed, that forty-five per cent shall be paid by the permit1973
holder to the tax commissioner or the tax commissioner's agent in1974
the county seat of the county in which the permit holder operates1975
race meetings, at the close of each racing day. The remaining1976
thirty-five per cent of that portion of that total sum of odd1977
cents shall be retained by the permit holder.1978

       (I) In addition, each permit holder authorized to conduct1979
quarter horse racing shall be allowed to retain the odd cents of1980
all redistribution to be made on all mutuel contributions1981
exceeding a sum equal to the next lowest multiple of ten, subject1982
to a tax of twenty-five per cent on that portion of the total sum1983
of such odd cents that is in excess of two thousand dollars during1984
a calendar year, which tax shall be paid at the close of each1985
racing day by the permit holder to the tax commissioner or the tax1986
commissioner's agent in the county seat of the county within which1987
the permit holder operates race meetings. Forty per cent of that1988
portion of that total sum of such odd cents shall be used by the1989
permit holder for increased purse money for horse races. The1990
remaining thirty-five per cent of that portion of that total sum1991
of odd cents shall be retained by the permit holder.1992

       (J)(1) To encourage the improvement of racing facilities for1993
the benefit of the public, breeders, and horse owners, and to1994
increase the revenue to the state from the increase in pari-mutuel1995
wagering resulting from those improvements, the taxes paid by a1996
permit holder to the state as provided for in this chapter shall1997
be reduced by three-fourths of one per cent of the total amount1998
wagered for those permit holders who make capital improvements to1999
existing race tracks or construct new race tracks. The percentage2000
of the reduction that may be taken each racing day shall equal2001
seventy-five per cent of the taxes levied under divisions (B) and2002
(C) of this section and section 3769.087 of the Revised Code, and2003
division (F)(2) of section 3769.26 of the Revised Code, as2004
applicable, divided by the calculated amount each fund should2005
receive under divisions (B) and (C) of this section and section2006
3769.087 of the Revised Code, and division (F)(2) of section2007
3769.26 of the Revised Code and the reduction provided for in this2008
division. If the resulting percentage is less than one, that2009
percentage shall be multiplied by the amount of the reduction2010
provided for in this division. Otherwise, the permit holder shall2011
receive the full reduction provided for in this division. The2012
amount of the allowable reduction not received shall be carried2013
forward and applied against future tax liability. After any2014
reductions expire, any reduction carried forward shall be treated2015
as a reduction as provided for in this division.2016

       If more than one permit holder is authorized to conduct2017
racing at the facility that is being built or improved, the cost2018
of the new race track or capital improvement shall be allocated2019
between or among all the permit holders in the ratio that the2020
permit holders' number of racing days bears to the total number of2021
racing days conducted at the facility.2022

       A reduction for a new race track or a capital improvement2023
shall start from the day racing is first conducted following the2024
date actual construction of the new race track or each capital2025
improvement is completed and the construction cost has been 2026
approved by the racing commission, unless otherwise provided in2027
this section. A reduction for a new race track or a capital2028
improvement shall continue for a period of twenty-five years for2029
new race tracks and for fifteen years for capital improvements if2030
the construction of the capital improvement or new race track2031
commenced prior to March 29, 1988, and for a period of ten years2032
for new race tracks or capital improvements if the construction of 2033
the capital improvement or new race track commenced on or after2034
March 29, 1988, but before the effective date of this amendment2035
June 6, 2001, or until the total tax reduction reaches seventy per2036
cent of the approved cost of the new race track or capital2037
improvement, as allocated to each permit holder, whichever occurs2038
first. A reduction for a new race track or a capital improvement2039
approved after the effective date of this amendmentJune 6, 2001,2040
shall continue until the total tax reduction reaches one hundred2041
per cent of the approved cost of the new race track or capital2042
improvement, as allocated to each permit holder.2043

       A reduction granted for a new race track or a capital2044
improvement, the application for which was approved by the racing2045
commission after March 29, 1988, but before the effective date of2046
this amendmentJune 6, 2001, shall not commence nor shall the2047
ten-year period begin to run until all prior tax reductions with2048
respect to the same race track have ended. The total tax reduction 2049
because of capital improvements shall not during any one year 2050
exceed for all permit holders using any one track three-fourths of 2051
one per cent of the total amount wagered, regardless of the number 2052
of capital improvements made. Several capital improvements to a 2053
race track may be consolidated in an application if the racing 2054
commission approved the application prior to March 29, 1988. No 2055
permit holder may receive a tax reduction for a capital 2056
improvement approved by the racing commission on or after March 2057
29, 1988, at a race track until all tax reductions have ended for 2058
all prior capital improvements approved by the racing commission 2059
under this section or section 3769.20 of the Revised Code at that 2060
race track. If there are two or more permit holders operating 2061
meetings at the same track, they may consolidate their 2062
applications. The racing commission shall notify the tax 2063
commissioner when the reduction of tax begins and when it ends.2064

       Each fiscal year the racing commission shall submit a report2065
to the tax commissioner, the office of budget and management, and 2066
the legislative budget office of the legislative service2067
commission. The report shall identify each capital improvement2068
project undertaken under this division and in progress at each2069
race track, indicate the total cost of each project, state the tax 2070
reduction that resulted from each project during the immediately 2071
preceding fiscal year, estimate the tax reduction that will result 2072
from each project during the current fiscal year, state the total 2073
tax reduction that resulted from all such projects at all race 2074
tracks during the immediately preceding fiscal year, and estimate 2075
the total tax reduction that will result from all such projects at 2076
all race tracks during the current fiscal year.2077

       (2) In order to qualify for the reduction in tax, a permit2078
holder shall apply to the racing commission in such form as the2079
commission may require and shall provide full details of the new 2080
race track or capital improvement, including a schedule for its2081
construction and completion, and set forth the costs and expenses2082
incurred in connection with it. The racing commission shall not2083
approve an application unless the permit holder shows that a2084
contract for the new race track or capital improvement has been2085
let under an unrestricted competitive bidding procedure, unless2086
the contract is exempted by the controlling board because of its2087
unusual nature. In determining whether to approve an application,2088
the racing commission shall consider whether the new race track or2089
capital improvement will promote the safety, convenience, and2090
comfort of the racing public and horse owners and generally tend2091
towards the improvement of racing in this state.2092

       (3) If a new race track or capital improvement is approved by2093
the racing commission and construction has started, the tax 2094
reduction may be authorized by the commission upon presentation of2095
copies of paid bills in excess of one hundred thousand dollars or2096
ten per cent of the approved cost, whichever is greater. After the2097
initial authorization, the permit holder shall present copies of2098
paid bills. If the permit holder is in substantial compliance with 2099
the schedule for construction and completion of the new race track2100
or capital improvement, the racing commission may authorize the2101
continuation of the tax reduction upon the presentation of the 2102
additional paid bills. The total amount of the tax reduction2103
authorized shall not exceed the percentage of the approved cost of 2104
the new race track or capital improvement specified in division2105
(J)(1) of this section. The racing commission may terminate any2106
tax reduction immediately if a permit holder fails to complete the2107
new race track or capital improvement, or to substantially comply 2108
with the schedule for construction and completion of the new race2109
track or capital improvement. If a permit holder fails to complete 2110
a new race track or capital improvement, the racing commission 2111
shall order the permit holder to repay to the state the total 2112
amount of tax reduced. The normal tax paid by the permit holder 2113
shall be increased by three-fourths of one per cent of the total2114
amount wagered until the total amount of the additional tax2115
collected equals the total amount of tax reduced.2116

       (4) As used in this section:2117

       (a) "Capital improvement" means an addition, replacement, or2118
remodeling of a structural unit of a race track facility costing2119
at least one hundred thousand dollars, including, but not limited2120
to, the construction of barns used exclusively for the race track2121
facility, backstretch facilities for horsemen, paddock facilities,2122
new pari-mutuel and totalizator equipment and appurtenances to2123
that equipment purchased by the track, new access roads, new2124
parking areas, the complete reconstruction, reshaping, and2125
leveling of the racing surface and appurtenances, the installation 2126
of permanent new heating or air conditioning, roof replacement or 2127
restoration, installations of a permanent nature forming a part of 2128
the track structure, and construction of buildings that are 2129
located on a permit holder's premises. "Capital improvement" does 2130
not include the cost of replacement of equipment that is not2131
permanently installed, ordinary repairs, painting, and maintenance2132
required to keep a race track facility in ordinary operating2133
condition.2134

       (b) "New race track" includes the reconstruction of a race2135
track damaged by fire or other cause that has been declared by the2136
racing commission, as a result of the damage, to be an inadequate2137
facility for the safe operation of horse racing.2138

       (c) "Approved cost" includes all debt service and interest2139
costs that are associated with a capital improvement or new race2140
track and that the racing commission approves for a tax reduction2141
under division (J) of this section.2142

       (5) The racing commission shall not approve an application2143
for a tax reduction under this section if it has reasonable cause2144
to believe that the actions or negligence of the permit holder2145
substantially contributed to the damage suffered by the track due2146
to fire or other cause. The racing commission shall obtain any2147
data or information available from a fire marshal, law enforcement2148
official, or insurance company concerning any fire or other damage2149
suffered by a track, prior to approving an application for a tax2150
reduction.2151

       (6) The approved cost to which a tax reduction applies shall 2152
be determined by generally accepted accounting principles and 2153
verified by an audit of the permit holder's records upon2154
completion of the project by the racing commission, or by an2155
independent certified public accountant selected by the permit2156
holder and approved by the commission.2157

       (K) No other license or excise tax or fee, except as provided 2158
in sections 3769.01 to 3769.14 of the Revised Code, shall be 2159
assessed or collected from such licensee by any county, township, 2160
district, municipal corporation, or other body having power to 2161
assess or collect a tax or fee. That portion of the tax paid under 2162
this section by permit holders for racing conducted at and during 2163
the course of an agricultural exposition or fair, and that portion 2164
of the tax that would have been paid by eligible permit holders 2165
into the PASSPORT fund as a result of racing conducted at and 2166
during the course of an agricultural exposition or fair, shall be 2167
deposited into the state treasury to the credit of the horse2168
racing tax fund, which is hereby created for the use of the2169
agricultural societies of the several counties in which the taxes2170
originate. The state racing commission shall determine eligible 2171
permit holders for purposes of the preceding sentence, taking into 2172
account the breed of horse, the racing dates, the geographic 2173
proximity to the fair, and the best interests of Ohio racing. On 2174
the first day of any month on which there is money in the fund, 2175
the tax commissioner shall provide for payment to the treasurer of 2176
each agricultural society the amount of the taxes collected under 2177
this section upon racing conducted at and during the course of any 2178
exposition or fair conducted by the society.2179

       (L) From the tax paid under this section by harness track2180
permit holders, the tax commissioner shall pay into the Ohio2181
thoroughbred race fund a sum equal to a percentage of the amount2182
wagered upon which the tax is paid. The percentage shall be2183
determined by the tax commissioner and shall be rounded to the2184
nearest one-hundredth. The percentage shall be such that, when2185
multiplied by the amount wagered upon which tax was paid by the2186
harness track permit holders in the most recent year for which2187
final figures are available, it results in a sum that2188
substantially equals the same amount of tax paid by the tax2189
commissioner during that year into the Ohio fairs fund from taxes2190
paid by thoroughbred permit holders. This division does not apply2191
to county and independent fairs and agricultural societies.2192

       (M) Twenty-five per cent of the taxes levied on thoroughbred 2193
racing permit holders, harness racing permit holders, and quarter 2194
horse racing permit holders under this section, division (A) of2195
section 3769.087 of the Revised Code, and division (F)(2) of2196
section 3769.26 of the Revised Code shall be paid into the2197
PASSPORT fund. The tax commissioner shall pay any money remaining, 2198
after the payment into the PASSPORT fund and the reductions 2199
provided for in division (J) of this section and in section 2200
3769.20 of the Revised Code, into the Ohio fairs fund, Ohio 2201
thoroughbred race fund, Ohio standardbred development fund, Ohio 2202
quarter horse fund, and state racing commission operating fund as 2203
prescribed in this section and division (A) of section 3769.087 of 2204
the Revised Code. The tax commissioner shall thereafter use and2205
apply the balance of the money paid as a tax by any permit holder2206
to cover any shortage in the accounts of such funds resulting from2207
an insufficient payment as a tax by any other permit holder. The2208
moneys received by the tax commissioner shall be deposited weekly2209
and paid by the tax commissioner into the funds to cover the total2210
aggregate amount due from all permit holders to the funds, as2211
calculated under this section and division (A) of section 3769.0872212
of the Revised Code, as applicable. If, after the payment into the2213
PASSPORT fund, sufficient funds are not available from the tax2214
deposited by the tax commissioner to pay the required amounts into 2215
the Ohio fairs fund, Ohio standardbred development fund, Ohio 2216
thoroughbred race fund, Ohio quarter horse fund, and the state 2217
racing commission operating fund, the tax commissioner shall2218
prorate on a proportional basis the amount paid to each of the 2219
funds. Any shortage to the funds as a result of a proration shall 2220
be applied against future deposits for the same calendar year when 2221
funds are available. After this application, the tax commissioner 2222
shall pay any remaining money paid as a tax by all permit holders2223
into the PASSPORT fund. This division does not apply to permit2224
holders conducting racing at the course of an agricultural2225
exposition or fair as described in division (K) of this section.2226

       Sec. 3769.20.  (A) To encourage the renovation of existing2227
racing facilities for the benefit of the public, breeders, and2228
horse owners and to increase the revenue to the state from the2229
increase in pari-mutuel wagering resulting from such improvement,2230
the taxes paid by a permit holder to the state, in excess of the2231
amount paid into the PASSPORT fund, shall be reduced by one per2232
cent of the total amount wagered for those permit holders who2233
carry out a major capital improvement project. The percentage of2234
the reduction that may be taken each racing day shall equal2235
seventy-five per cent of the amount of the taxes levied under2236
divisions (B) and (C) of section 3769.08, section 3769.087, and2237
division (F)(2) of section 3769.26 of the Revised Code, as2238
applicable, divided by the calculated amount each fund should2239
receive under divisions (B) and (C) of section 3769.08, section2240
3769.087, and division (F)(2) of section 3769.26 of the Revised2241
Code and the reduction provided for in this section. If the2242
resulting percentage is less than one, that percentage shall be2243
multiplied by the amount of the reduction provided for in this2244
section. Otherwise, the permit holder shall receive the full2245
reduction provided for in this section. The amount of the2246
allowable reduction not received shall be carried forward and2247
added to any other reduction balance and applied against future2248
tax liability. After any reductions expire, any reduction carried2249
forward shall be treated as a reduction as provided for in this2250
section. If the amount of allowable reduction exceeds the amount2251
of taxes derived from a permit holder, the amount of the allowable 2252
reduction not used may be carried forward and applied against2253
future tax liability.2254

       If more than one permit holder is authorized to conduct2255
racing at the facility that is being improved, the cost of the2256
major capital improvement project shall be allocated between or2257
among all the permit holders in the ratio that each permit2258
holder's number of racing days bears to the total number of racing2259
days conducted at the facility.2260

       A reduction for a major capital improvement project shall2261
start from the day racing is first conducted following the date on2262
which the major capital improvement project is completed and the2263
construction cost has been approved by the state racing2264
commission, except as otherwise provided in division (E) of this2265
section, and shall continue until the total tax reduction equals2266
the cost of the major capital improvement project plus debt2267
service applicable to the project. In no event, however, shall2268
any tax reduction, excluding any reduction balances, be permitted2269
under this section after December 31, 2014. The total tax2270
reduction because of the major capital improvement project shall2271
not during any one year exceed for all permit holders using any2272
one track one per cent of the total amount wagered. The racing2273
commission shall notify the tax commissioner when the reduction of 2274
tax begins and when it ends.2275

       (B) Each fiscal year, the racing commission shall submit a2276
report to the tax commissioner, the office of budget and2277
management, and the legislative budget office of the legislative2278
service commission. The report shall identify each capital2279
improvement project undertaken under this section and in progress2280
at each race track, indicate the total cost of each project, state2281
the tax reduction that resulted from each project during the2282
immediately preceding fiscal year, estimate the tax reduction that 2283
will result from each project during the current fiscal year, 2284
state the total tax reduction that resulted from all such projects 2285
at all race tracks during the immediately preceding fiscal year, 2286
and estimate the total tax reduction that will result from all 2287
such projects at all race tracks during the current fiscal year.2288

       (C) The tax reduction granted pursuant to this section shall2289
be in addition to any tax reductions for capital improvements and2290
new race tracks provided for in section 3769.08 of the Revised2291
Code and approved by the racing commission.2292

       (D) In order to qualify for the reduction in tax, a permit2293
holder shall apply to the racing commission in such form as the2294
commission may require and shall provide full details of the major2295
capital improvement project, including plans and specifications, a2296
schedule for the project's construction and completion, and a2297
breakdown of proposed costs. In addition, the permit holder shall2298
have commenced construction of the major capital improvement2299
project or shall have had the application for the project approved2300
by the racing commission prior to March 29, 1988. The racing2301
commission shall not approve an application unless the permit2302
holder shows that a contract for the major capital improvement2303
project has been let under an unrestricted competitive bidding2304
procedure, unless the contract is exempted by the controlling2305
board because of its unusual nature. In determining whether to2306
approve an application, the racing commission shall consider2307
whether the major capital improvement project will promote the2308
safety, convenience, and comfort of the racing public and horse2309
owners and generally tend toward the improvement of racing in this2310
state.2311

       (E) If the major capital improvement project is approved by2312
the racing commission and construction has started, the tax 2313
reduction may be authorized by the commission upon presentation of2314
copies of paid bills in excess of five hundred thousand dollars.2315
After the initial authorization, the permit holder shall present2316
copies of paid bills in the amount of not less than five hundred2317
thousand dollars. If the permit holder is in substantial2318
compliance with the schedule for construction and completion of2319
the major capital improvement project, the racing commission may2320
authorize the continuance of the tax reduction upon the2321
presentation of the additional paid bills in increments of five2322
hundred thousand dollars. The racing commission may terminate the2323
tax reduction if a permit holder fails to complete the major2324
capital improvement project or fails to comply substantially with2325
the schedule for construction and completion of the major capital2326
improvement project. If the time for completion of the major2327
capital improvement project is delayed by acts of God, strikes, or2328
the unavailability of labor or materials, the time for completion2329
as set forth in the schedule shall be extended by the period of2330
the delay. If a permit holder fails to complete the major capital2331
improvement project, the racing commission shall order the permit2332
holder to repay to the state the total amount of tax reduced,2333
unless the permit holder has spent at least six million dollars on2334
the project. The normal tax paid by the permit holder under2335
section 3769.08 of the Revised Code shall be increased by one per2336
cent of the total amount wagered until the total amount of the2337
additional tax collected equals the total amount of tax reduced.2338
Any action taken by the racing commission pursuant to this section2339
in terminating the tax adjustment or requiring repayment of the2340
amount of tax reduced shall be subject to Chapter 119. of the2341
Revised Code.2342

       (F) As used in this section, "major capital improvement2343
project" means the renovation, reconstruction, or remodeling,2344
costing at least six million dollars, of a race track facility,2345
including, but not limited to, the construction of barns used2346
exclusively for that race track facility, backstretch facilities2347
for horsemen, paddock facilities, pari-mutuel and totalizator2348
equipment and appurtenances to that equipment purchased by the2349
track, new access roads, new parking areas, the complete2350
reconstruction, reshaping, and leveling of the racing surface and2351
appurtenances, grandstand enclosure, installation of permanent new2352
heating or air conditioning, roof replacement, and installations2353
of a permanent nature forming a part of the track structure.2354

       (G) The cost and expenses to which the tax reduction granted2355
under this section applies shall be determined by generally2356
accepted accounting principles and be verified by an audit of the2357
permit holder's records, upon completion of the major capital2358
improvement project, either by the racing commission or by an2359
independent certified public accountant selected by the permit2360
holder and approved by the commission.2361

       (H) This section and section 3769.201 of the Revised Code2362
govern any tax reduction granted to a permit holder for the cost2363
to the permit holder of any cleanup, repair, or improvement2364
required as a result of damage caused by the 1997 Ohio river flood2365
to the place, track, or enclosure for which the permit is issued.2366

       Sec. 4743.01.  Each board, commission, or agency created2367
under or by virtue of Title XLVII of the Revised Code and such2368
other boards, commissions, and agencies as the director of the2369
legislative service commissionlegislative budget officer2370
determines are regulating occupations and professions shall, on 2371
the first day of September, make a report to the legislative 2372
budget office of the legislative service commission of its2373
receipts and disbursements and of its official acts of the2374
preceding fiscal year, in such form as the commissionbudget 2375
office may prescribe. The required report shall include an 2376
accounting of the fees such boards, commissions, and agencies 2377
charge and receive for examination, licensure, registration, 2378
certification, renewal of licensure, and providing of a duplicate 2379
copy of such certification or licensure; an accounting of fines 2380
charged by such boards, commissions, and agencies for violations 2381
of law and rules; the uses such boards, commissions, and agencies 2382
make of their revenue; the use of funds, as defined by section 2383
131.01 of the Revised Code, by such boards, commissions, and 2384
agencies; the date on which the last adjustment was made to the 2385
fee charged; the percentage of increase or decrease of the last 2386
adjustment of fees; the authority by which such adjustment was 2387
made; and the extent to which such boards, commissions, or 2388
agencies have authority to adjust fees. The commissionbudget 2389
office shall receive and consolidate the reports as required by 2390
division (H)(C)(5) of section 103.13103.36 of the Revised Code.2391

       Sec. 5120.51.  (A)(1) If the director of rehabilitation and2392
correction determines that a bill introduced in the general2393
assembly is likely to have a significant impact on the population2394
of, or the cost of operating, any or all state correctional2395
institutions under the administration of the department of2396
rehabilitation and correction, the department shall prepare a2397
population and cost impact statement for the bill, in accordance2398
with division (A)(2) of this section.2399

       (2) A population and cost impact statement required for a2400
bill shall estimate the increase or decrease in the correctional2401
institution population that likely would result if the bill were 2402
enacted, shall estimate, in dollars, the amount by which revenues 2403
or expenditures likely would increase or decrease if the bill were 2404
enacted, and briefly shall explain each of the estimates.2405

       A population and cost impact statement required for a bill2406
initially shall be prepared after the bill is referred to a2407
committee of the general assembly in the house of origination but2408
before the meeting of the committee at which the committee is2409
scheduled to vote on whether to recommend the bill for passage. A2410
copy of the statement shall be distributed to each member of the2411
committee that is considering the bill and to the member of the2412
general assembly who introduced it. If the bill is recommended for 2413
passage by the committee, the department shall update the2414
statement before the bill is taken up for final consideration by2415
the house of origination. A copy of the updated statement shall be 2416
distributed to each member of that house and to the member of the 2417
general assembly who introduced the bill. If the bill is passed by 2418
the house of origination and is introduced in the second house, 2419
the provisions of this division concerning the preparation,2420
updating, and distribution of the statement in the house of2421
origination also apply in the second house.2422

       (B) The governor or any member of the general assembly, at2423
any time, may request the department to prepare a population and2424
cost impact statement for any bill introduced in the general2425
assembly. Upon receipt of a request, the department promptly shall 2426
prepare a statement that includes the estimates and explanations 2427
described in division (A)(2) of this section and present a copy of 2428
it to the governor or member who made the request.2429

       (C) In the preparation of a population and cost impact2430
statement required by division (A) or (B) of this section, the2431
department shall use a technologically sophisticated system2432
capable of estimating future state correctional institution2433
populations. The system shall have the capability to adjust its2434
estimates based on actual and proposed changes in sentencing laws2435
and trends, sentence durations, parole rates, crime rates, and any2436
other data that affect state correctional institution populations.2437
The department, in conjunction with the advisory committee2438
appointed under division (E) of this section, shall review and2439
update the data used in the system, not less than once every six2440
months, to improve the accuracy of the system.2441

       (D) At least once every six months, the department shall2442
provide to the correctional institution inspection committee a2443
copy of the estimates of state correctional institution2444
populations obtained through use of the system described in2445
division (C) of this section and a description of the assumptions2446
regarding sentencing laws and trends, sentence durations, parole2447
rates, crime rates, and other relevant data that were made by the2448
department to obtain the estimates. Additionally, a copy of the2449
estimates and a description of the assumptions made to obtain them2450
shall be provided, upon reasonable request, to other legislative2451
staff, including the staff of the legislative service commission 2452
and the legislative budget office of the legislative service 2453
commission, to the office of budget and management, and to the 2454
division of criminal justice services in the department of public 2455
safety.2456

       (E) The correctional institution inspection committee shall2457
appoint an advisory committee to review the operation of the2458
system for estimating future state correctional institution2459
populations that is used by the department in the preparation of2460
population cost impact statements pursuant to this section and to2461
join with the department in its reviews and updating of the data2462
used in the system under division (C) of this section. The2463
advisory committee shall be comprised of at least one prosecuting2464
attorney, at least one common pleas court judge, at least one2465
public defender, at least one person who is a member or staff2466
employee of the committee, and at least one representative of the 2467
division of criminal justice services in the department of public 2468
safety.2469

       Section 2. That existing sections 102.01, 103.13, 103.132, 2470
103.143, 103.16, 103.17, 103.18, 103.20, 103.21, 103.23, 124.14, 2471
126.02, 126.21, 3333.04, 3333.12, 3333.122, 3333.27, 3769.08, 2472
3769.20, 4743.01, and 5120.51 of the Revised Code are hereby 2473
repealed.2474

       Section 3. It is the intent of the General Assembly that all 2475
individuals currently serving as fiscal staff of the Legislative 2476
Service Commission shall serve as employees of the Legislative 2477
Budget Office.2478

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