Bill Text: OH HB516 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To make changes to Ohio's Workers' Compensation Law.

Spectrum: Partisan Bill (Republican 18-0)

Status: (Introduced - Dead) 2012-04-17 - To Insurance [HB516 Detail]

Download: Ohio-2011-HB516-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 516

Representatives Henne, Hottinger 

Cosponsors: Representatives Sears, Butler, Conditt, Boose, Buchy, Amstutz, Adams, J., Rosenberger, Brenner, Sprague, Roegner, Stebelton, Hackett, Beck, Kozlowski, McGregor 

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A BILL

To amend sections 4121.30, 4123.20, 4123.29,

1

4123.291, 4123.35, 4123.37, and 4123.411 and to

2

repeal section 4121.18 of the Revised Code to make

3

changes to Ohio's Workers' Compensation Law.

4

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

Section 1. That sections 4121.30, 4123.20, 4123.29, 4123.291,	5
4123.35, 4123.37, and 4123.411 of the Revised Code be amended to	6
read as follows:	7

Sec. 4121.30.  (A) All rules governing the operating	8
procedure of the bureau of workers' compensation and the	9
industrial commission shall be adopted in accordance with Chapter	10
119. of the Revised Code, except that determinations of the	11
bureau, district hearing officers, staff hearing officers, and the	12
commission, with respect to an individual employee's claim to	13
participate in the state insurance fund are governed only by	14
Chapter 4123. of the Revised Code.	15

The administrator of workers' compensation and commission	16
shall proceed jointly, in accordance with Chapter 119. of the	17
Revised Code, including a joint hearing, to adopt joint rules	18
governing the operating procedures of the bureau and commission.	19
The bureau shall publish the joint rules in a single publication.	20

(B) Upon submission to the bureau or the commission of a	21
petition containing not less than fifteen hundred signatures of	22
adult residents of the state, any individual may propose a rule	23
for adoption, amendment, or rescission by the bureau or the	24
commission. If, upon investigation, the bureau or commission is	25
satisfied that the signatures upon the petition are valid, it	26
shall proceed, in accordance with Chapter 119. of the Revised	27
Code, to consider adoption, amendment, or rescission of the rule.	28

(C) The administrator shall publishmake available	29
electronically all rules adopted by the bureau and the commission	30
in a single publication and shall make available in a timely	31
manner and at cost copies of all rules adopted by the bureau and	32
the commission that are currently in force. For that purpose, the	33
administrator shall maintain a mailing list of all persons	34
requesting copies of the rules.	35

(D) The rule-making authority granted to the administrator	36
under this section does not limit the commission's rule-making	37
authority relative to its overall adjudicatory policy-making and	38
management duties under this chapter and Chapters 4123., 4127.,	39
and 4131. of the Revised Code. The administrator shall not	40
disregard any rule adopted by the commission, provided that the	41
rule is within the commission's rule-making authority.	42

Sec. 4123.20.  The administrator of workers' compensation	43
shall cause to be printed, in proper form for distributionmake	44
available electronically to the public, its classifications,	45
rates, rules, and rules of procedure, and shall furnish the same	46
to any person upon application therefor, and the fact that the	47
classifications, rates, rules, and rules of procedure are printed	48
ready for distribution to all who apply for the same is a	49
sufficient publication of the same as required by this chapter	50
request.	51

Sec. 4123.29.  (A) The administrator of workers'	52
compensation, subject to the approval of the bureau of workers'	53
compensation board of directors, shall do all of the following:	54

(1) Classify occupations or industries with respect to their	55
degree of hazard and determine the risks of the different classes	56
according to the categories the national council on compensation	57
insurance establishes that are applicable to employers in this	58
state;	59

(2)(a) Fix the rates of premium of the risks of the classes	60
based upon the total payroll in each of the classes of occupation	61
or industry sufficiently large to provide a fund for the	62
compensation provided for in this chapter and to maintain a state	63
insurance fund from year to year. The administrator shall set the	64
rates at a level that assures the solvency of the fund. Where the	65
payroll cannot be obtained or, in the opinion of the	66
administrator, is not an adequate measure for determining the	67
premium to be paid for the degree of hazard, the administrator may	68
determine the rates of premium upon such other basis, consistent	69
with insurance principles, as is equitable in view of the degree	70
of hazard, and whenever in this chapter reference is made to	71
payroll or expenditure of wages with reference to fixing premiums,	72
the reference shall be construed to have been made also to such	73
other basis for fixing the rates of premium as the administrator	74
may determine under this section.	75

(b) If an employer elects to obtain other-states' coverage	76
pursuant to section 4123.292 of the Revised Code through either	77
the administrator, if the administrator elects to offer such	78
coverage, or an other-states' insurer, calculate the employer's	79
premium for the state insurance fund in the same manner as	80
otherwise required under division (A) of this section and section	81
4123.34 of the Revised Code, except that when the administrator	82
determines the expenditure of wages, payroll, or both upon which	83
to base the employer's premium, the administrator shall use only	84
the expenditure of wages, payroll, or both attributable to the	85
labor performed and services provided by that employer's employees	86
when those employees performed labor and provided services in this	87
state only and to which the other-states' coverage does not apply.	88

(c) The administrator in setting or revising rates shall	89
furnish to employers an adequate explanation of the basis for the	90
rates set.	91

(3) Develop and make available to employers who are paying	92
premiums to the state insurance fund alternative premium plans.	93
Alternative premium plans shall include retrospective rating	94
plans. The administrator may make available plans under which an	95
advanced deposit may be applied against a specified deductible	96
amount per claim and may make available other alternative premium,	97
rate, or discount plans that the administrator determines are	98
necessary to encourage employers to participate in safety or	99
compliance programs, including drug-free workplace, workplace	100
wellness, safety, job development, or claims management.	101

(4)(a) Offer to insure the obligations of employers under	102
this chapter under a plan that groups, for rating purposes,	103
employers, and pools the risk of the employers within the group	104
provided that the employers meet all of the following conditions:	105

(i) All of the employers within the group are members of an	106
organization that has been in existence for at least two years	107
prior to the date of application for group coverage;	108

(ii) The organization was formed for purposes other than that	109
of obtaining group workers' compensation under this division;	110

(iii) The employers' business in the organization is	111
substantially similar such that the risks which are grouped are	112
substantially homogeneous;	113

(iv) The group of employers consists of at least one hundred	114
members or the aggregate workers' compensation premiums of the	115
members, as determined by the administrator, are expected to	116
exceed one hundred fifty thousand dollars during the coverage	117
period;	118

(v) The formation and operation of the group program in the	119
organization will substantially improve accident prevention and	120
claims handling for the employers in the group;	121

(vi) Each employer seeking to enroll in a group for workers'	122
compensation coverage has an industrial insurance account in good	123
standing with the bureau of workers' compensation such that at the	124
time the agreement is processed no outstanding premiums,	125
penalties, or assessments are due from any of the employers.	126

(b) If an organization sponsors more than one employer group	127
to participate in group plans established under this section, that	128
organization may submit a single application that supplies all of	129
the information necessary for each group of employers that the	130
organization wishes to sponsor.	131

(c) In providing employer group plans under division (A)(4)	132
of this section, the administrator shall consider an employer	133
group as a single employing entity for purposes of group rating.	134
No employer may be a member of more than one group for the purpose	135
of obtaining workers' compensation coverage under this division.	136

(d) At the time the administrator revises premium rates	137
pursuant to this section and section 4123.34 of the Revised Code,	138
if the premium rate of an employer who participates in a group	139
plan established under this section changes from the rate	140
established for the previous year, the administrator, in addition	141
to sending the invoice with the rate revision to that employer,	142
shall send a copy of that invoice to the third-party administrator	143
that administers the group plan for that employer's group.	144

(e) In providing employer group plans under division (A)(4)	145
of this section, the administrator shall establish a program	146
designed to mitigate the impact of a significant claim that would	147
come into the experience of a private, state fund group-rated	148
employer or a taxing district employer for the first time and be a	149
contributing factor in that employer being excluded from a	150
group-rated plan. The administrator shall establish eligibility	151
criteria and requirements that such employers must satisfy in	152
order to participate in this program. For purposes of this	153
program, the administrator shall establish a discount on premium	154
rates applicable to employers who qualify for the program.	155

(f) In no event shall division (A)(4) of this section be	156
construed as granting to an employer status as a self-insuring	157
employer.	158

(g) The administrator shall develop classifications of	159
occupations or industries that are sufficiently distinct so as not	160
to group employers in classifications that unfairly represent the	161
risks of employment with the employer.	162

(5) Generally promote employer participation in the state	163
insurance fund through the regular dissemination of information to	164
all classes of employers describing the advantages and benefits of	165
opting to make premium payments to the fund. To that end, the	166
administrator shall regularly make employers aware of the various	167
workers' compensation premium packages developed and offered	168
pursuant to this section.	169

(6) Make available to every employer who is paying premiums	170
to the state insurance fund a program whereby the employer or the	171
employer's agent pays to the claimant or on behalf of the claimant	172
the first fifteen thousand dollars of a compensable workers'	173
compensation medical-only claim filed by that claimant that is	174
related to the same injury or occupational disease. No formal	175
application is required; however, an employer must elect to	176
participate by telephoning the bureau after July 1, 1995. Once an	177
employer has elected to participate in the program, the employer	178
will be responsible for all bills in all medical-only claims with	179
a date of injury the same or later than the election date, unless	180
the employer notifies the bureau within fourteen days of receipt	181
of the notification of a claim being filed that it does not wish	182
to pay the bills in that claim, or the employer notifies the	183
bureau that the fifteen thousand dollar maximum has been paid, or	184
the employer notifies the bureau of the last day of service on	185
which it will be responsible for the bills in a particular	186
medical-only claim. If an employer elects to enter the program,	187
the administrator shall not reimburse the employer for such	188
amounts paid and shall not charge the first fifteen thousand	189
dollars of any medical-only claim paid by an employer to the	190
employer's experience or otherwise use it in merit rating or	191
determining the risks of any employer for the purpose of payment	192
of premiums under this chapter. A certified health care provider	193
shall extend to an employer who participates in this program the	194
same rates for services rendered to an employee of that employer	195
as the provider bills the administrator for the same type of	196
medical claim processed by the bureau and shall not charge,	197
assess, or otherwise attempt to collect from an employee any	198
amount for covered services or supplies that is in excess of that	199
rate. If an employer elects to enter the program and the employer	200
fails to pay a bill for a medical-only claim included in the	201
program, the employer shall be liable for that bill and the	202
employee for whom the employer failed to pay the bill shall not be	203
liable for that bill. The administrator shall adopt rules to	204
implement and administer division (A)(6) of this section. Upon	205
written request from the bureau, the employer shall provide	206
documentation to the bureau of all medical-only bills that they	207
are paying directly. Such requests from the bureau may not be made	208
more frequently than on a semiannual basis. Failure to provide	209
such documentation to the bureau within thirty days of receipt of	210
the request may result in the employer's forfeiture of	211
participation in the program for such injury. The provisions of	212
this section shall not apply to claims in which an employer with	213
knowledge of a claimed compensable injury or occupational disease,	214
has paid wages in lieu of compensation or total disability.	215

(B) The administrator, with the advice and consent of the	216
board, by rule, may do bothestablish alternative premium, rate,	217
or discount plans, including any of the following:	218

(1) Grant an employer who makes the employer's semiannual	219
premium payment at least one month prior to the last day on which	220
the payment may be made without penalty, a discount as the	221
administrator fixes from time to time;	222

(2) Levy a minimum annual administrative charge upon risks	223
where semiannual premium reports develop a charge less than the	224
administrator considers adequate to offset administrative costs of	225
processing;	226

(3) Establish any other alternative premium, rate, or	227
discount plans the administrator considers necessary.	228

Sec. 4123.291.  (A) An adjudicating committee appointed by	229
the administrator of workers' compensation to hear any matter	230
specified in divisions (B)(1) to (7) of this section shall hear	231
the matter within sixty days of the date on which an employer	232
files the request, protest, or petition. An employer desiring to	233
file a request, protest, or petition regarding any matter	234
specified in divisions (B)(1) to (7) of this section shall file	235
the request, protest, or petition to the adjudicating committee on	236
or before twenty-four months after the administrator sends notice	237
of the determination about which the employer is filing the	238
request, protest, or petition.	239

(B) An employer who is adversely affected by a decision of an	240
adjudicating committee appointed by the administrator may appeal	241
the decision of the committee to the administrator or the	242
administrator's designee. The employer shall file the appeal in	243
writing within thirty days after the employer receives the	244
decision of the adjudicating committee. The administrator or the	245
designee shall hear the appeal and hold a hearing, provided that	246
the decision of the adjudicating committee relates to one of the	247
following:	248

(1) An employer request for a waiver of a default in the	249
payment of premiums pursuant to section 4123.37 of the Revised	250
Code;	251

(2) An employer request for the settlement of liability as a	252
noncomplying employer under section 4123.75 of the Revised Code;	253

(3) An employer petition objecting to thean assessment of a	254
premium pursuant to section 4123.37 of the Revised Code and the	255
rules adopted pursuant to that section;	256

(4) An employer request for the abatement of penalties	257
assessed pursuant to section 4123.32 of the Revised Code and the	258
rules adopted pursuant to that section;	259

(5) An employer protest relating to an audit finding or a	260
determination of a manual classification, experience rating, or	261
transfer or combination of risk experience;	262

(6) Any decision relating to any other risk premium matter	263
under Chapters 4121., 4123., and 4131. of the Revised Code;	264

(7) An employer petition objecting to the amount of security	265
required under division (C) of section 4125.05 of the Revised Code	266
and the rules adopted pursuant to that section.	267

(C) The bureau of workers' compensation board of directors,	268
based upon recommendations of the workers' compensation actuarial	269
committee, shall establish the policy for all adjudicating	270
committee procedures, including, but not limited to, specific	271
criteria for manual premium rate adjustment.	272

Sec. 4123.35.  (A) Except as provided in this section, every	273
employer mentioned in division (B)(2) of section 4123.01 of the	274
Revised Code, and every publicly owned utility shall pay	275
semiannually in the months of January and July into the state	276
insurance fund the amount of annual premium the administrator of	277
workers' compensation fixes for the employment or occupation of	278
the employer, the amount of which premium to be paid by each	279
employer to be determined by the classifications, rules, and rates	280
made and published by the administrator. The employer shall pay	281
semiannually a further sum of money into the state insurance fund	282
as may be ascertained to be due from the employer by applying the	283
rules of the administrator, and a receipt or certificate	284
certifying that payment has been made, along with a written notice	285
as is required in section 4123.54 of the Revised Code, shall be	286
mailed immediately to the employer by the bureau of workers'	287
compensation. The receipt or certificate is prima-facie evidence	288
of the payment of the premium, and the proper posting of the	289
notice constitutes the employer's compliance with the notice	290
requirement mandated in section 4123.54 of the Revised Code.	291

The bureau of workers' compensation shall verify with the	292
secretary of state the existence of all corporations and	293
organizations making application for workers' compensation	294
coverage and shall require every such application to include the	295
employer's federal identification number.	296

An employer as defined in division (B)(2) of section 4123.01	297
of the Revised Code who has contracted with a subcontractor is	298
liable for the unpaid premium due from any subcontractor with	299
respect to that part of the payroll of the subcontractor that is	300
for work performed pursuant to the contract with the employer.	301

Division (A) of this section providing for the payment of	302
premiums semiannually does not apply to any employer who was a	303
subscriber to the state insurance fund prior to January 1, 1914,	304
or who may first become a subscriber to the fund in any month	305
other than January or July. Instead, the semiannual premiums shall	306
be paid by those employers from time to time upon the expiration	307
of the respective periods for which payments into the fund have	308
been made by them.	309

The administrator shall adopt rules to permit employers to	310
make periodic payments of the semiannual premium due under this	311
division. The rules shall include provisions for the assessment of	312
interest charges, where appropriate, and for the assessment of	313
penalties when an employer fails to make timely premium payments.	314
An employer who timely pays the amounts due under this division is	315
entitled to all of the benefits and protections of this chapter.	316
Upon receipt of payment, the bureau immediately shall mail a	317
receipt or certificate to the employer certifying that payment has	318
been made, which receipt is prima-facie evidence of payment.	319
Workers' compensation coverage under this chapter continues	320
uninterrupted upon timely receipt of payment under this division.	321

Every public employer, except public employers that are	322
self-insuring employers under this section, shall comply with	323
sections 4123.38 to 4123.41, and 4123.48 of the Revised Code in	324
regard to the contribution of moneys to the public insurance fund.	325

(B) Employers who will abide by the rules of the	326
administrator and who may be of sufficient financial ability to	327
render certain the payment of compensation to injured employees or	328
the dependents of killed employees, and the furnishing of medical,	329
surgical, nursing, and hospital attention and services and	330
medicines, and funeral expenses, equal to or greater than is	331
provided for in sections 4123.52, 4123.55 to 4123.62, and 4123.64	332
to 4123.67 of the Revised Code, and who do not desire to insure	333
the payment thereof or indemnify themselves against loss sustained	334
by the direct payment thereof, upon a finding of such facts by the	335
administrator, may be granted the privilege to pay individually	336
compensation, and furnish medical, surgical, nursing, and hospital	337
services and attention and funeral expenses directly to injured	338
employees or the dependents of killed employees, thereby being	339
granted status as a self-insuring employer. The administrator may	340
charge employers who apply for the status as a self-insuring	341
employer a reasonable application fee to cover the bureau's costs	342
in connection with processing and making a determination with	343
respect to an application.	344

All employers granted status as self-insuring employers shall	345
demonstrate sufficient financial and administrative ability to	346
assure that all obligations under this section are promptly met.	347
The administrator shall deny the privilege where the employer is	348
unable to demonstrate the employer's ability to promptly meet all	349
the obligations imposed on the employer by this section.	350

(1) The administrator shall consider, but is not limited to,	351
the following factors, where applicable, in determining the	352
employer's ability to meet all of the obligations imposed on the	353
employer by this section:	354

(a) The employer employs a minimum of five hundred employees	355
in this state;	356

(b) The employer has operated in this state for a minimum of	357
two years, provided that an employer who has purchased, acquired,	358
or otherwise succeeded to the operation of a business, or any part	359
thereof, situated in this state that has operated for at least two	360
years in this state, also shall qualify;	361

(c) Where the employer previously contributed to the state	362
insurance fund or is a successor employer as defined by bureau	363
rules, the amount of the buyout, as defined by bureau rules;	364

(d) The sufficiency of the employer's assets located in this	365
state to insure the employer's solvency in paying compensation	366
directly;	367

(e) The financial records, documents, and data, certified by	368
a certified public accountant, necessary to provide the employer's	369
full financial disclosure. The records, documents, and data	370
include, but are not limited to, balance sheets and profit and	371
loss history for the current year and previous four years.	372

(f) The employer's organizational plan for the administration	373
of the workers' compensation law;	374

(g) The employer's proposed plan to inform employees of the	375
change from a state fund insurer to a self-insuring employer, the	376
procedures the employer will follow as a self-insuring employer,	377
and the employees' rights to compensation and benefits; and	378

(h) The employer has either an account in a financial	379
institution in this state, or if the employer maintains an account	380
with a financial institution outside this state, ensures that	381
workers' compensation checks are drawn from the same account as	382
payroll checks or the employer clearly indicates that payment will	383
be honored by a financial institution in this state.	384

The administrator may waive the requirements of divisions	385
(B)(1)(a) and (b) of this section and the requirement of division	386
(B)(1)(e) of this section that the financial records, documents,	387
and data be certified by a certified public accountant. The	388
administrator shall adopt rules establishing the criteria that an	389
employer shall meet in order for the administrator to waive the	390
requirement of division (B)(1)(e) of this section. Such rules may	391
require additional security of that employer pursuant to division	392
(E) of section 4123.351 of the Revised Code.	393

The administrator shall not grant the status of self-insuring	394
employer to the state, except that the administrator may grant the	395
status of self-insuring employer to a state institution of higher	396
education, excludingincluding its hospitals, that meets the	397
requirements of division (B)(2) of this section.	398

(2) When considering the application of a public employer,	399
except for a board of county commissioners described in division	400
(G) of section 4123.01 of the Revised Code, a board of a county	401
hospital, or a publicly owned utility, the administrator shall	402
verify that the public employer satisfies all of the following	403
requirements as the requirements apply to that public employer:	404

(a) For the two-year period preceding application under this	405
section, the public employer has maintained an unvoted debt	406
capacity equal to at least two times the amount of the current	407
annual premium established by the administrator under this chapter	408
for that public employer for the year immediately preceding the	409
year in which the public employer makes application under this	410
section.	411

(b) For each of the two fiscal years preceding application	412
under this section, the unreserved and undesignated year-end fund	413
balance in the public employer's general fund is equal to at least	414
five per cent of the public employer's general fund revenues for	415
the fiscal year computed in accordance with generally accepted	416
accounting principles.	417

(c) For the five-year period preceding application under this	418
section, the public employer, to the extent applicable, has	419
complied fully with the continuing disclosure requirements	420
established in rules adopted by the United States securities and	421
exchange commission under 17 C.F.R. 240.15c 2-12.	422

(d) For the five-year period preceding application under this	423
section, the public employer has not had its local government fund	424
distribution withheld on account of the public employer being	425
indebted or otherwise obligated to the state.	426

(e) For the five-year period preceding application under this	427
section, the public employer has not been under a fiscal watch or	428
fiscal emergency pursuant to section 118.023, 118.04, or 3316.03	429
of the Revised Code.	430

(f) For the public employer's fiscal year preceding	431
application under this section, the public employer has obtained	432
an annual financial audit as required under section 117.10 of the	433
Revised Code, which has been released by the auditor of state	434
within seven months after the end of the public employer's fiscal	435
year.	436

(g) On the date of application, the public employer holds a	437
debt rating of Aa3 or higher according to Moody's investors	438
service, inc., or a comparable rating by an independent rating	439
agency similar to Moody's investors service, inc.	440

(h) The public employer agrees to generate an annual	441
accumulating book reserve in its financial statements reflecting	442
an actuarially generated reserve adequate to pay projected claims	443
under this chapter for the applicable period of time, as	444
determined by the administrator.	445

(i) For a public employer that is a hospital, the public	446
employer shall submit audited financial statements showing the	447
hospital's overall liquidity characteristics, and the	448
administrator shall determine, on an individual basis, whether the	449
public employer satisfies liquidity standards equivalent to the	450
liquidity standards of other public employers.	451

(j) Any additional criteria that the administrator adopts by	452
rule pursuant to division (E) of this section.	453

The administrator may adopt rules establishing the criteria	454
that a public employer shall satisfy in order for the	455
administrator to waive any of the requirements listed in divisions	456
(B)(2)(a) to (j) of this section. The rules may require additional	457
security from that employer pursuant to division (E) of section	458
4123.351 of the Revised Code. The administrator shall not waive	459
any of the requirements listed in divisions (B)(2)(a) to (j) of	460
this section for a public employer who does not satisfy the	461
criteria established in the rules the administrator adopts.	462

(C) A board of county commissioners described in division (G)	463
of section 4123.01 of the Revised Code, as an employer, that will	464
abide by the rules of the administrator and that may be of	465
sufficient financial ability to render certain the payment of	466
compensation to injured employees or the dependents of killed	467
employees, and the furnishing of medical, surgical, nursing, and	468
hospital attention and services and medicines, and funeral	469
expenses, equal to or greater than is provided for in sections	470
4123.52, 4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised	471
Code, and that does not desire to insure the payment thereof or	472
indemnify itself against loss sustained by the direct payment	473
thereof, upon a finding of such facts by the administrator, may be	474
granted the privilege to pay individually compensation, and	475
furnish medical, surgical, nursing, and hospital services and	476
attention and funeral expenses directly to injured employees or	477
the dependents of killed employees, thereby being granted status	478
as a self-insuring employer. The administrator may charge a board	479
of county commissioners described in division (G) of section	480
4123.01 of the Revised Code that applies for the status as a	481
self-insuring employer a reasonable application fee to cover the	482
bureau's costs in connection with processing and making a	483
determination with respect to an application. All employers	484
granted such status shall demonstrate sufficient financial and	485
administrative ability to assure that all obligations under this	486
section are promptly met. The administrator shall deny the	487
privilege where the employer is unable to demonstrate the	488
employer's ability to promptly meet all the obligations imposed on	489
the employer by this section. The administrator shall consider,	490
but is not limited to, the following factors, where applicable, in	491
determining the employer's ability to meet all of the obligations	492
imposed on the board as an employer by this section:	493

(1) The board as an employer employs a minimum of five	494
hundred employees in this state;	495

(2) The board has operated in this state for a minimum of two	496
years;	497

(3) Where the board previously contributed to the state	498
insurance fund or is a successor employer as defined by bureau	499
rules, the amount of the buyout, as defined by bureau rules;	500

(4) The sufficiency of the board's assets located in this	501
state to insure the board's solvency in paying compensation	502
directly;	503

(5) The financial records, documents, and data, certified by	504
a certified public accountant, necessary to provide the board's	505
full financial disclosure. The records, documents, and data	506
include, but are not limited to, balance sheets and profit and	507
loss history for the current year and previous four years.	508

(6) The board's organizational plan for the administration of	509
the workers' compensation law;	510

(7) The board's proposed plan to inform employees of the	511
proposed self-insurance, the procedures the board will follow as a	512
self-insuring employer, and the employees' rights to compensation	513
and benefits;	514

(8) The board has either an account in a financial	515
institution in this state, or if the board maintains an account	516
with a financial institution outside this state, ensures that	517
workers' compensation checks are drawn from the same account as	518
payroll checks or the board clearly indicates that payment will be	519
honored by a financial institution in this state;	520

(9) The board shall provide the administrator a surety bond	521
in an amount equal to one hundred twenty-five per cent of the	522
projected losses as determined by the administrator.	523

(D) The administrator shall require a surety bond from all	524
self-insuring employers, issued pursuant to section 4123.351 of	525
the Revised Code, that is sufficient to compel, or secure to	526
injured employees, or to the dependents of employees killed, the	527
payment of compensation and expenses, which shall in no event be	528
less than that paid or furnished out of the state insurance fund	529
in similar cases to injured employees or to dependents of killed	530
employees whose employers contribute to the fund, except when an	531
employee of the employer, who has suffered the loss of a hand,	532
arm, foot, leg, or eye prior to the injury for which compensation	533
is to be paid, and thereafter suffers the loss of any other of the	534
members as the result of any injury sustained in the course of and	535
arising out of the employee's employment, the compensation to be	536
paid by the self-insuring employer is limited to the disability	537
suffered in the subsequent injury, additional compensation, if	538
any, to be paid by the bureau out of the surplus created by	539
section 4123.34 of the Revised Code.	540

(E) In addition to the requirements of this section, the	541
administrator shall make and publish rules governing the manner of	542
making application and the nature and extent of the proof required	543
to justify a finding of fact by the administrator as to granting	544
the status of a self-insuring employer, which rules shall be	545
general in their application, one of which rules shall provide	546
that all self-insuring employers shall pay into the state	547
insurance fund such amounts as are required to be credited to the	548
surplus fund in division (B) of section 4123.34 of the Revised	549
Code. The administrator may adopt rules establishing requirements	550
in addition to the requirements described in division (B)(2) of	551
this section that a public employer shall meet in order to qualify	552
for self-insuring status.	553

Employers shall secure directly from the bureau central	554
offices application forms upon which the bureau shall stamp a	555
designating number. Prior to submission of an application, an	556
employer shall make available to the bureau, and the bureau shall	557
review, the information described in division (B)(1) of this	558
section, and public employers shall make available, and the bureau	559
shall review, the information necessary to verify whether the	560
public employer meets the requirements listed in division (B)(2)	561
of this section. An employer shall file the completed application	562
forms with an application fee, which shall cover the costs of	563
processing the application, as established by the administrator,	564
by rule, with the bureau at least ninety days prior to the	565
effective date of the employer's new status as a self-insuring	566
employer. The application form is not deemed complete until all	567
the required information is attached thereto. The bureau shall	568
only accept applications that contain the required information.	569

(F) The bureau shall review completed applications within a	570
reasonable time. If the bureau determines to grant an employer the	571
status as a self-insuring employer, the bureau shall issue a	572
statement, containing its findings of fact, that is prepared by	573
the bureau and signed by the administrator. If the bureau	574
determines not to grant the status as a self-insuring employer,	575
the bureau shall notify the employer of the determination and	576
require the employer to continue to pay its full premium into the	577
state insurance fund. The administrator also shall adopt rules	578
establishing a minimum level of performance as a criterion for	579
granting and maintaining the status as a self-insuring employer	580
and fixing time limits beyond which failure of the self-insuring	581
employer to provide for the necessary medical examinations and	582
evaluations may not delay a decision on a claim.	583

(G) The administrator shall adopt rules setting forth	584
procedures for auditing the program of self-insuring employers.	585
The bureau shall conduct the audit upon a random basis or whenever	586
the bureau has grounds for believing that a self-insuring employer	587
is not in full compliance with bureau rules or this chapter.	588

The administrator shall monitor the programs conducted by	589
self-insuring employers, to ensure compliance with bureau	590
requirements and for that purpose, shall develop and issue to	591
self-insuring employers standardized forms for use by the	592
self-insuring employer in all aspects of the self-insuring	593
employers' direct compensation program and for reporting of	594
information to the bureau.	595

The bureau shall receive and transmit to the self-insuring	596
employer all complaints concerning any self-insuring employer. In	597
the case of a complaint against a self-insuring employer, the	598
administrator shall handle the complaint through the	599
self-insurance division of the bureau. The bureau shall maintain a	600
file by employer of all complaints received that relate to the	601
employer. The bureau shall evaluate each complaint and take	602
appropriate action.	603

The administrator shall adopt as a rule a prohibition against	604
any self-insuring employer from harassing, dismissing, or	605
otherwise disciplining any employee making a complaint, which rule	606
shall provide for a financial penalty to be levied by the	607
administrator payable by the offending self-insuring employer.	608

(H) For the purpose of making determinations as to whether to	609
grant status as a self-insuring employer, the administrator may	610
subscribe to and pay for a credit reporting service that offers	611
financial and other business information about individual	612
employers. The costs in connection with the bureau's subscription	613
or individual reports from the service about an applicant may be	614
included in the application fee charged employers under this	615
section.	616

(I) The administrator, notwithstanding other provisions of	617
this chapter, may permit a self-insuring employer to resume	618
payment of premiums to the state insurance fund with appropriate	619
credit modifications to the employer's basic premium rate as such	620
rate is determined pursuant to section 4123.29 of the Revised	621
Code.	622

(J) On the first day of July of each year, the administrator	623
shall calculate separately each self-insuring employer's	624
assessments for the safety and hygiene fund, administrative costs	625
pursuant to section 4123.342 of the Revised Code, and for the	626
portion of the surplus fund under division (B) of section 4123.34	627
of the Revised Code that is not used for handicapped	628
reimbursement, on the basis of the paid compensation attributable	629
to the individual self-insuring employer according to the	630
following calculation:	631

(1) The total assessment against all self-insuring employers	632
as a class for each fund and for the administrative costs for the	633
year that the assessment is being made, as determined by the	634
administrator, divided by the total amount of paid compensation	635
for the previous calendar year attributable to all amenable	636
self-insuring employers;	637

(2) Multiply the quotient in division (J)(1) of this section	638
by the total amount of paid compensation for the previous calendar	639
year that is attributable to the individual self-insuring employer	640
for whom the assessment is being determined. Each self-insuring	641
employer shall pay the assessment that results from this	642
calculation, unless the assessment resulting from this calculation	643
falls below a minimum assessment, which minimum assessment the	644
administrator shall determine on the first day of July of each	645
year with the advice and consent of the bureau of workers'	646
compensation board of directors, in which event, the self-insuring	647
employer shall pay the minimum assessment.	648

In determining the total amount due for the total assessment	649
against all self-insuring employers as a class for each fund and	650
the administrative assessment, the administrator shall reduce	651
proportionately the total for each fund and assessment by the	652
amount of money in the self-insurance assessment fund as of the	653
date of the computation of the assessment.	654

The administrator shall calculate the assessment for the	655
portion of the surplus fund under division (B) of section 4123.34	656
of the Revised Code that is used for handicapped reimbursement in	657
the same manner as set forth in divisions (J)(1) and (2) of this	658
section except that the administrator shall calculate the total	659
assessment for this portion of the surplus fund only on the basis	660
of those self-insuring employers that retain participation in the	661
handicapped reimbursement program and the individual self-insuring	662
employer's proportion of paid compensation shall be calculated	663
only for those self-insuring employers who retain participation in	664
the handicapped reimbursement program. The administrator, as the	665
administrator determines appropriate, may determine the total	666
assessment for the handicapped portion of the surplus fund in	667
accordance with sound actuarial principles.	668

The administrator shall calculate the assessment for the	669
portion of the surplus fund under division (B) of section 4123.34	670
of the Revised Code that under division (D) of section 4121.66 of	671
the Revised Code is used for rehabilitation costs in the same	672
manner as set forth in divisions (J)(1) and (2) of this section,	673
except that the administrator shall calculate the total assessment	674
for this portion of the surplus fund only on the basis of those	675
self-insuring employers who have not made the election to make	676
payments directly under division (D) of section 4121.66 of the	677
Revised Code and an individual self-insuring employer's proportion	678
of paid compensation only for those self-insuring employers who	679
have not made that election.	680

The administrator shall calculate the assessment for the	681
portion of the surplus fund under division (B) of section 4123.34	682
of the Revised Code that is used for reimbursement to a	683
self-insuring employer under division (H) of section 4123.512 of	684
the Revised Code in the same manner as set forth in divisions	685
(J)(1) and (2) of this section except that the administrator shall	686
calculate the total assessment for this portion of the surplus	687
fund only on the basis of those self-insuring employers that	688
retain participation in reimbursement to the self-insuring	689
employer under division (H) of section 4123.512 of the Revised	690
Code and the individual self-insuring employer's proportion of	691
paid compensation shall be calculated only for those self-insuring	692
employers who retain participation in reimbursement to the	693
self-insuring employer under division (H) of section 4123.512 of	694
the Revised Code.	695

An employer who no longer is a self-insuring employer in this	696
state or who no longer is operating in this state, shall continue	697
to pay assessments for administrative costs and for the portion of	698
the surplus fund under division (B) of section 4123.34 of the	699
Revised Code that is not used for handicapped reimbursement, based	700
upon paid compensation attributable to claims that occurred while	701
the employer was a self-insuring employer within this state.	702

(K) There is hereby created in the state treasury the	703
self-insurance assessment fund. All investment earnings of the	704
fund shall be deposited in the fund. The administrator shall use	705
the money in the self-insurance assessment fund only for	706
administrative costs as specified in section 4123.341 of the	707
Revised Code.	708

(L) Every self-insuring employer shall certify, in affidavit	709
form subject to the penalty for perjury, to the bureau the amount	710
of the self-insuring employer's paid compensation for the previous	711
calendar year. In reporting paid compensation paid for the	712
previous year, a self-insuring employer shall exclude from the	713
total amount of paid compensation any reimbursement the	714
self-insuring employer receives in the previous calendar year from	715
the surplus fund pursuant to section 4123.512 of the Revised Code	716
for any paid compensation. The self-insuring employer also shall	717
exclude from the paid compensation reported any amount recovered	718
under section 4123.931 of the Revised Code and any amount that is	719
determined not to have been payable to or on behalf of a claimant	720
in any final administrative or judicial proceeding. The	721
self-insuring employer shall exclude such amounts from the paid	722
compensation reported in the reporting period subsequent to the	723
date the determination is made. The administrator shall adopt	724
rules, in accordance with Chapter 119. of the Revised Code, that	725
provide for all of the following:	726

(1) Establishing the date by which self-insuring employers	727
must submit such information and the amount of the assessments	728
provided for in division (J) of this section for employers who	729
have been granted self-insuring status within the last calendar	730
year;	731

(2) If an employer fails to pay the assessment when due, the	732
administrator may add a late fee penalty of not more than five	733
hundred dollars to the assessment plus an additional penalty	734
amount as follows:	735

(a) For an assessment from sixty-one to ninety days past due,	736
the prime interest rate, multiplied by the assessment due;	737

(b) For an assessment from ninety-one to one hundred twenty	738
days past due, the prime interest rate plus two per cent,	739
multiplied by the assessment due;	740

(c) For an assessment from one hundred twenty-one to one	741
hundred fifty days past due, the prime interest rate plus four per	742
cent, multiplied by the assessment due;	743

(d) For an assessment from one hundred fifty-one to one	744
hundred eighty days past due, the prime interest rate plus six per	745
cent, multiplied by the assessment due;	746

(e) For an assessment from one hundred eighty-one to two	747
hundred ten days past due, the prime interest rate plus eight per	748
cent, multiplied by the assessment due;	749

(f) For each additional thirty-day period or portion thereof	750
that an assessment remains past due after it has remained past due	751
for more than two hundred ten days, the prime interest rate plus	752
eight per cent, multiplied by the assessment due.	753

(3) An employer may appeal a late fee penalty and penalty	754
assessment to the administrator.	755

For purposes of division (L)(2) of this section, "prime	756
interest rate" means the average bank prime rate, and the	757
administrator shall determine the prime interest rate in the same	758
manner as a county auditor determines the average bank prime rate	759
under section 929.02 of the Revised Code.	760

The administrator shall include any assessment and penalties	761
that remain unpaid for previous assessment periods in the	762
calculation and collection of any assessments due under this	763
division or division (J) of this section.	764

(M) As used in this section, "paid compensation" means all	765
amounts paid by a self-insuring employer for living maintenance	766
benefits, all amounts for compensation paid pursuant to sections	767
4121.63, 4121.67, 4123.56, 4123.57, 4123.58, 4123.59, 4123.60, and	768
4123.64 of the Revised Code, all amounts paid as wages in lieu of	769
such compensation, all amounts paid in lieu of such compensation	770
under a nonoccupational accident and sickness program fully funded	771
by the self-insuring employer, and all amounts paid by a	772
self-insuring employer for a violation of a specific safety	773
standard pursuant to Section 35 of Article II, Ohio Constitution	774
and section 4121.47 of the Revised Code.	775

(N) Should any section of this chapter or Chapter 4121. of	776
the Revised Code providing for self-insuring employers'	777
assessments based upon compensation paid be declared	778
unconstitutional by a final decision of any court, then that	779
section of the Revised Code declared unconstitutional shall revert	780
back to the section in existence prior to November 3, 1989,	781
providing for assessments based upon payroll.	782

(O) The administrator may grant a self-insuring employer the	783
privilege to self-insure a construction project entered into by	784
the self-insuring employer that is scheduled for completion within	785
six years after the date the project begins, and the total cost of	786
which is estimated to exceed one hundred million dollars or, for	787
employers described in division (R) of this section, if the	788
construction project is estimated to exceed twenty-five million	789
dollars. The administrator may waive such cost and time criteria	790
and grant a self-insuring employer the privilege to self-insure a	791
construction project regardless of the time needed to complete the	792
construction project and provided that the cost of the	793
construction project is estimated to exceed fifty million dollars.	794
A self-insuring employer who desires to self-insure a construction	795
project shall submit to the administrator an application listing	796
the dates the construction project is scheduled to begin and end,	797
the estimated cost of the construction project, the contractors	798
and subcontractors whose employees are to be self-insured by the	799
self-insuring employer, the provisions of a safety program that is	800
specifically designed for the construction project, and a	801
statement as to whether a collective bargaining agreement	802
governing the rights, duties, and obligations of each of the	803
parties to the agreement with respect to the construction project	804
exists between the self-insuring employer and a labor	805
organization.	806

A self-insuring employer may apply to self-insure the	807
employees of either of the following:	808

(1) All contractors and subcontractors who perform labor or	809
work or provide materials for the construction project;	810

(2) All contractors and, at the administrator's discretion, a	811
substantial number of all the subcontractors who perform labor or	812
work or provide materials for the construction project.	813

Upon approval of the application, the administrator shall	814
mail a certificate granting the privilege to self-insure the	815
construction project to the self-insuring employer. The	816
certificate shall contain the name of the self-insuring employer	817
and the name, address, and telephone number of the self-insuring	818
employer's representatives who are responsible for administering	819
workers' compensation claims for the construction project. The	820
self-insuring employer shall post the certificate in a conspicuous	821
place at the site of the construction project.	822

The administrator shall maintain a record of the contractors	823
and subcontractors whose employees are covered under the	824
certificate issued to the self-insured employer. A self-insuring	825
employer immediately shall notify the administrator when any	826
contractor or subcontractor is added or eliminated from inclusion	827
under the certificate.	828

Upon approval of the application, the self-insuring employer	829
is responsible for the administration and payment of all claims	830
under this chapter and Chapter 4121. of the Revised Code for the	831
employees of the contractor and subcontractors covered under the	832
certificate who receive injuries or are killed in the course of	833
and arising out of employment on the construction project, or who	834
contract an occupational disease in the course of employment on	835
the construction project. For purposes of this chapter and Chapter	836
4121. of the Revised Code, a claim that is administered and paid	837
in accordance with this division is considered a claim against the	838
self-insuring employer listed in the certificate. A contractor or	839
subcontractor included under the certificate shall report to the	840
self-insuring employer listed in the certificate, all claims that	841
arise under this chapter and Chapter 4121. of the Revised Code in	842
connection with the construction project for which the certificate	843
is issued.	844

A self-insuring employer who complies with this division is	845
entitled to the protections provided under this chapter and	846
Chapter 4121. of the Revised Code with respect to the employees of	847
the contractors and subcontractors covered under a certificate	848
issued under this division for death or injuries that arise out	849
of, or death, injuries, or occupational diseases that arise in the	850
course of, those employees' employment on that construction	851
project, as if the employees were employees of the self-insuring	852
employer, provided that the self-insuring employer also complies	853
with this section. No employee of the contractors and	854
subcontractors covered under a certificate issued under this	855
division shall be considered the employee of the self-insuring	856
employer listed in that certificate for any purposes other than	857
this chapter and Chapter 4121. of the Revised Code. Nothing in	858
this division gives a self-insuring employer authority to control	859
the means, manner, or method of employment of the employees of the	860
contractors and subcontractors covered under a certificate issued	861
under this division.	862

The contractors and subcontractors included under a	863
certificate issued under this division are entitled to the	864
protections provided under this chapter and Chapter 4121. of the	865
Revised Code with respect to the contractor's or subcontractor's	866
employees who are employed on the construction project which is	867
the subject of the certificate, for death or injuries that arise	868
out of, or death, injuries, or occupational diseases that arise in	869
the course of, those employees' employment on that construction	870
project.	871

The contractors and subcontractors included under a	872
certificate issued under this division shall identify in their	873
payroll records the employees who are considered the employees of	874
the self-insuring employer listed in that certificate for purposes	875
of this chapter and Chapter 4121. of the Revised Code, and the	876
amount that those employees earned for employment on the	877
construction project that is the subject of that certificate.	878
Notwithstanding any provision to the contrary under this chapter	879
and Chapter 4121. of the Revised Code, the administrator shall	880
exclude the payroll that is reported for employees who are	881
considered the employees of the self-insuring employer listed in	882
that certificate, and that the employees earned for employment on	883
the construction project that is the subject of that certificate,	884
when determining those contractors' or subcontractors' premiums or	885
assessments required under this chapter and Chapter 4121. of the	886
Revised Code. A self-insuring employer issued a certificate under	887
this division shall include in the amount of paid compensation it	888
reports pursuant to division (L) of this section, the amount of	889
paid compensation the self-insuring employer paid pursuant to this	890
division for the previous calendar year.	891

Nothing in this division shall be construed as altering the	892
rights of employees under this chapter and Chapter 4121. of the	893
Revised Code as those rights existed prior to September 17, 1996.	894
Nothing in this division shall be construed as altering the rights	895
devolved under sections 2305.31 and 4123.82 of the Revised Code as	896
those rights existed prior to September 17, 1996.	897

As used in this division, "privilege to self-insure a	898
construction project" means privilege to pay individually	899
compensation, and to furnish medical, surgical, nursing, and	900
hospital services and attention and funeral expenses directly to	901
injured employees or the dependents of killed employees.	902

(P) A self-insuring employer whose application is granted	903
under division (O) of this section shall designate a safety	904
professional to be responsible for the administration and	905
enforcement of the safety program that is specifically designed	906
for the construction project that is the subject of the	907
application.	908

A self-insuring employer whose application is granted under	909
division (O) of this section shall employ an ombudsperson for the	910
construction project that is the subject of the application. The	911
ombudsperson shall have experience in workers' compensation or the	912
construction industry, or both. The ombudsperson shall perform all	913
of the following duties:	914

(1) Communicate with and provide information to employees who	915
are injured in the course of, or whose injury arises out of	916
employment on the construction project, or who contract an	917
occupational disease in the course of employment on the	918
construction project;	919

(2) Investigate the status of a claim upon the request of an	920
employee to do so;	921

(3) Provide information to claimants, third party	922
administrators, employers, and other persons to assist those	923
persons in protecting their rights under this chapter and Chapter	924
4121. of the Revised Code.	925

A self-insuring employer whose application is granted under	926
division (O) of this section shall post the name of the safety	927
professional and the ombudsperson and instructions for contacting	928
the safety professional and the ombudsperson in a conspicuous	929
place at the site of the construction project.	930

(Q) The administrator may consider all of the following when	931
deciding whether to grant a self-insuring employer the privilege	932
to self-insure a construction project as provided under division	933
(O) of this section:	934

(1) Whether the self-insuring employer has an organizational	935
plan for the administration of the workers' compensation law;	936

(2) Whether the safety program that is specifically designed	937
for the construction project provides for the safety of employees	938
employed on the construction project, is applicable to all	939
contractors and subcontractors who perform labor or work or	940
provide materials for the construction project, and has as a	941
component, a safety training program that complies with standards	942
adopted pursuant to the "Occupational Safety and Health Act of	943
1970," 84 Stat. 1590, 29 U.S.C.A. 651, and provides for continuing	944
management and employee involvement;	945

(3) Whether granting the privilege to self-insure the	946
construction project will reduce the costs of the construction	947
project;	948

(4) Whether the self-insuring employer has employed an	949
ombudsperson as required under division (P) of this section;	950

(5) Whether the self-insuring employer has sufficient surety	951
to secure the payment of claims for which the self-insuring	952
employer would be responsible pursuant to the granting of the	953
privilege to self-insure a construction project under division (O)	954
of this section.	955

(R) As used in divisions (O), (P), and (Q), "self-insuring	956
employer" includes the following employers, whether or not they	957
have been granted the status of being a self-insuring employer	958
under division (B) of this section:	959

(1) A state institution of higher education;

960

(2) A school district;

961

(3) A county school financing district;

962

(4) An educational service center;

963

(5) A community school established under Chapter 3314. of the	964
Revised Code;	965

(6) A municipal power agency as defined in section 3734.058	966
of the Revised Code.	967

(S) As used in this section:

968

(1) "Unvoted debt capacity" means the amount of money that a	969
public employer may borrow without voter approval of a tax levy;	970

(2) "State institution of higher education" means the state	971
universities listed in section 3345.011 of the Revised Code,	972
community colleges created pursuant to Chapter 3354. of the	973
Revised Code, university branches created pursuant to Chapter	974
3355. of the Revised Code, technical colleges created pursuant to	975
Chapter 3357. of the Revised Code, and state community colleges	976
created pursuant to Chapter 3358. of the Revised Code.	977

Sec. 4123.37. In(A) As used in this section "amenable:

978

(1) "Amenable employer" has the same meaning as "employer" as	979
defined in division (J) of section 4123.32 of the Revised Code.	980

(2) "Assessment" means any determination by the administrator	981
of workers' compensation that a specific sum of money is owed by	982
an employer under this chapter or Chapter 4121., 4127., or 4131.	983
of the Revised Code, except for amounts owed by an employer	984
pursuant to section 4123.75 of the Revised Code.	985

(B) If the administrator of workers' compensation finds that	986
any person, firm, or private corporation, including any public	987
service corporation, is, or has been at any time after January 1,	988
1923, an amenable employer and has not complied with section	989
4123.35 of the Revised Code the administrator shall determine the	990
period during which the person, firm, or corporation was an	991
amenable employer and shall forthwith give notice of the	992
determination to the employer. Within twenty days thereafter the	993
employer shall furnish the bureau of workers' compensation with	994
the payroll covering the period included in the determination and,	995
if the employer is an amenable employer at the time of the	996
determination, shall pay a premium security deposit for the eight	997
months next succeeding the date of the determination and shall pay	998
into the state insurance fund the amount of premium applicable to	999
such payroll.	1000

If the employer does not furnish the payroll and pay the	1001
applicable premium and premium security deposit within the twenty	1002
days, the administrator shall forthwith make an assessment of the	1003
premium due from the employer for the period the administrator	1004
determined the employer to be an amenable employer including the	1005
premium security deposit according to section 4123.32 of the	1006
Revised Code if the employer is an amenable employer at the time	1007
of the determination, basing the assessmentamount due upon the	1008
information in the possession of the administrator.	1009

(C) The administrator shall give to the employer assessed	1010
written notice of thean assessment and include in that notice a	1011
demand for payment in accordance with this division. The notice	1012
shall be mailed to the employer at the employer's residence or	1013
usual place of business by certified mail. Unless the employer to	1014
whom the notice of assessment is directed files with the bureau	1015
within twenty days after receipt thereof, a petition in writing,	1016
verified under oath by the employer, or the employer's authorized	1017
agent having knowledge of the facts, setting forth with	1018
particularity the items of the assessment objected to, together	1019
with the reason for the objections, the assessment shall become	1020
conclusive and the amount thereof shall be due and payable from	1021
the employer so assessed to the state insurance fund. When a	1022
petition objecting to an assessment is filed the bureau shall	1023
assign a time and place for the hearing of the same and shall	1024
notify the petitioner thereof by certified mail. When an employer	1025
files a petition the assessment made by the administrator shall	1026
become due and payable ten days after the bureau sends notice of	1027
the finding made at the hearing has been sent by certified mail	1028
to the party assessed. An employer may first appeal an adverse	1029
decision to the administrator or the designee of the administrator	1030
as provided in section 4123.291 of the Revised Code, and	1031
subsequently an appeal may be taken from any finding to the court	1032
of common pleas of Franklin county upon the execution by the party	1033
assessed of a bond to the state in double the amount found due	1034
and ordered paid by the bureau conditioned that the party will pay	1035
any judgment and costs rendered against it for the premium	1036
assessment.	1037

(D) When no petition objecting to an assessment is filed or	1038
when a finding is made affirming or modifying an assessment after	1039
hearing, a certified copy of the assessment as affirmed or	1040
modified may be filed by the administrator in the office of the	1041
clerk of the court of common pleas in any county in which the	1042
employer has property or in which the employer has a place of	1043
business. The clerk, immediately upon the filing of the	1044
assessment, shall enter a judgment for the state against the	1045
employer in the amount shown on the assessment. The judgment may	1046
be filed by the clerk in a loose leaf book entitled "special	1047
judgments for state insurance fund." The judgment shall bear the	1048
same rate of interest, have the same effect as other judgments,	1049
and be given the same preference allowed by law on other judgments	1050
rendered for claims for taxes. An assessment or judgment under	1051
this section shall not be a bar to the adjustment of the	1052
employer's account upon the employer furnishing the employer's	1053
payroll records to the bureau.	1054

(E) The administrator, for good cause shown, may waive a	1055
default in the payment of premium where the default is of less	1056
than sixty days' duration, and upon payment by the employer of the	1057
premium for the period, the employer and the employer's employees	1058
are entitled to all of the benefits and immunities provided by	1059
this chapter.	1060

Sec. 4123.411.  (A) For the purpose of carrying out sections	1061
4123.412 to 4123.418 of the Revised Code, the administrator of	1062
workers' compensation, with the advice and consent of the bureau	1063
of workers' compensation board of directors, shall levy an	1064
assessment against all employers at a rate, of at least five but	1065
not to exceed ten cents per one hundred dollars of payroll, such	1066
rate to be determined annually for each employer group listed in	1067
divisions (A)(1) to (3) of this section, which will produce an	1068
amount no greater than the amount the administrator estimates to	1069
be necessary to carry out such sections for the period for which	1070
the assessment is levied. In the event the amount produced by the	1071
assessment is not sufficient to carry out such sections the	1072
additional amount necessary shall be provided from the income	1073
produced as a result of investments made pursuant to section	1074
4123.44 of the Revised Code.	1075

Assessments shall be levied according to the following	1076
schedule:	1077

(1) Private fund employers, except self-insuring	1078
employers--in January and July of each year upon gross payrolls of	1079
the preceding six months;	1080

(2) Counties and taxing district employers therein, except	1081
county hospitals that are self-insuring employers--in January of	1082
each year upon gross payrolls of the preceding twelve months;	1083

(3) The state as an employer--in January, April, July, and	1084
October of each year upon gross payrolls of the preceding three	1085
months.	1086

Amounts assessed in accordance with this section shall be	1087
collected from each employer as prescribed in rules the	1088
administrator adopts.	1089

The moneys derived from the assessment provided for in this	1090
section shall be credited to the disabled workers' relief fund	1091
created by section 4123.412 of the Revised Code. The administrator	1092
shall establish by rule classifications of employers within	1093
divisions (A)(1) to (3) of this section and shall determine rates	1094
for each class so as to fairly apportion the costs of carrying out	1095
sections 4123.412 to 4123.418 of the Revised Code.	1096

(B) For all injuries and disabilities occurring on or after	1097
January 1, 1987, the administrator, for the purposes of carrying	1098
out sections 4123.412 to 4123.418 of the Revised Code, shall levy	1099
an assessment against all employers at a rate per one hundred	1100
dollars of payroll, such rate to be determined annually for each	1101
classification of employer in each employer group listed in	1102
divisions (A)(1) to (3) of this section, which will produce an	1103
amount no greater than the amount the administrator estimates to	1104
be necessary to carry out such sections for the period for which	1105
the assessment is levied. The administrator annually shall	1106
establish the contributions due from employers for the disabled	1107
workers' relief fund at rates as low as possible but that will	1108
assure sufficient moneys to guarantee the payment of any claims	1109
against that fund.	1110

Amounts assessed in accordance with this division shall be	1111
billed at the same time premiums are billed and credited to the	1112
disabled workers' relief fund created by section 4123.412 of the	1113
Revised Code. The administrator shall determine the rates for each	1114
class in the same manner as the administrator fixes the rates for	1115
premiums pursuant to section 4123.29 of the Revised Code.	1116

(C) For a self-insuring employer, the bureau of workers'	1117
compensation shall pay to employees who are participants	1118
regardless of the date of injury, any amounts due to the	1119
participants under section 4123.414 of the Revised Code and shall	1120
bill the self-insuring employer, semiannually, for all amounts	1121
paid to a participant.	1122

Section 2. That existing sections 4121.30, 4123.20, 4123.29,	1123
4123.291, 4123.35, 4123.37, and 4123.411 and section 4121.18 of	1124
the Revised Code are hereby repealed.	1125

Section 3.  Section 4123.35 of the Revised Code is presented	1126
in this act as a composite of the section as amended by Sub. H.B.	1127
123, Am. Sub. H.B. 153, and Sub. S.B. 171 of the 129th General	1128
Assembly. The General Assembly, applying the principle stated in	1129
division (B) of section 1.52 of the Revised Code that amendments	1130
are to be harmonized if reasonably capable of simultaneous	1131
operation, finds that the composite is the resulting version of	1132
the section in effect prior to the effective date of the section	1133
as presented in this act.	1134