Bill Text: OH SB14 | 2013-2014 | 130th General Assembly | Introduced


Bill Title: To authorize programs and tax credits to encourage the hiring of unemployed individuals, to make changes to the Unemployment Compensation Law, to authorize grants and tax credits for the rehabilitation of distressed areas and the expansion of broadband connections to rural areas, to create a revolving loan fund and a bonding program for small businesses, to make changes to the Minority Business Bonding Program, to levy taxes, and to make an appropriation.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2013-02-12 - To Finance [SB14 Detail]

Download: Ohio-2013-SB14-Introduced.html
As Introduced

130th General Assembly
Regular Session
2013-2014
S. B. No. 14


Senator Kearney 

Cosponsors: Senators Brown, Gentile, Sawyer, Schiavoni, Skindell, Smith, Tavares, Turner 



A BILL
To amend sections 122.075, 122.71, 122.72, 122.74, 1
122.75, 122.87, 122.88, 122.89, 122.90, 125.831, 2
169.05, 4141.01, 4141.09, 4141.241, 4141.29, 3
4141.291, 4141.293, 4301.20, 5733.01, 5733.98, 4
5739.01, 5739.02, 5739.025, 5747.01, 5747.98, 5
5751.01, 5751.98, and 6301.06, to enact sections 6
122.084, 122.721, 122.731, 122.891, 4141.294, 7
4141.302, 4141.50 to 4141.57, 5709.29, 5747.61, 8
5751.55, 6301.021, 6303.01, and 6303.02, and to 9
repeal sections 901.13, 5733.46, 5733.48, 5747.28, 10
5747.29, 5747.70, 5747.75, 5747.77, and 5751.53 of 11
the Revised Code to authorize programs and tax 12
credits to encourage the hiring of unemployed 13
individuals, to make changes to the Unemployment 14
Compensation Law, to authorize grants and tax 15
credits for the rehabilitation of distressed areas 16
and the expansion of broadband connections to 17
rural areas, to create a revolving loan fund and a 18
bonding program for small businesses, to make 19
changes to the Minority Business Bonding Program, 20
to levy taxes, and to make an appropriation.21


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

       Section 1. That sections 122.075, 122.71, 122.72, 122.74, 22
122.75, 122.87, 122.88, 122.89, 122.90, 125.831, 169.05, 4141.01, 23
4141.09, 4141.241, 4141.29, 4141.291, 4141.293, 4301.20, 5733.01, 24
5733.98, 5739.01, 5739.02, 5739.025, 5747.01, 5747.98, 5751.01, 25
5751.98, and 6301.06 be amended and sections 122.084, 122.721, 26
122.731, 122.891, 4141.294, 4141.302, 4141.50, 4141.51, 4141.52, 27
4141.53, 4141.54, 4141.55, 4141.56, 4141.57, 5709.29, 5747.61, 28
5751.55, 6301.021, 6303.01, and 6303.02 of the Revised Code be 29
enacted to read as follows:30

       Sec. 122.075. (A) As used in this section:31

       (1) "Alternative fuel" has the same meaning as in section 32
125.831 of the Revised Code.33

       (2) "Biodiesel" means a mono-alkyl ester combustible liquid 34
fuel that is derived from vegetable oils or animal fats, or any 35
combination of those reagents, and that meets American society for 36
testing and materials specification D6751-03a for biodiesel fuel 37
(B100) blend stock distillate fuels.38

       (3) "Diesel fuel" and "gasoline" have the same meanings as in 39
section 5735.01 of the Revised Code.40

       (4) "Ethanol" has the same meaning as in section 5733.46 of 41
the Revised Codemeans fermentation ethyl alcohol derived from 42
agricultural products, including potatoes, cereal, grains, cheese 43
whey, and sugar beets; forest products; or other renewable 44
resources, including residue and waste generated from the 45
production, processing, and marketing of agricultural products, 46
forest products, and other renewable resources that meet all of 47
the specifications in the American society for testing and 48
materials (ASTM) specification D 4806-88 and is denatured as 49
specified in Parts 20 and 21 of Title 27 of the Code of Federal 50
Regulations.51

       (5) "Blended biodiesel" means diesel fuel containing at least 52
twenty per cent biodiesel by volume.53

       (6) "Blended gasoline" means gasoline containing at least 54
eighty-five per cent ethanol by volume.55

       (7) "Incremental cost" means either of the following:56

       (a) The difference in cost between blended gasoline and 57
gasoline containing ten per cent or less ethanol at the time that 58
the blended gasoline is purchased;59

       (b) The difference in cost between blended biodiesel and 60
diesel fuel containing two per cent or less biodiesel at the time 61
that the blended biodiesel is purchased.62

       (B) For the purpose of improving the air quality in this 63
state, the director of development services shall establish an 64
alternative fuel transportation program under which the director 65
may make grants and loans to businesses, nonprofit organizations, 66
public school systems, or local governments for the purchase and 67
installation of alternative fuel refueling or distribution 68
facilities and terminals, for the purchase and use of alternative 69
fuel, and to pay the costs of educational and promotional 70
materials and activities intended for prospective alternative fuel 71
consumers, fuel marketers, and others in order to increase the 72
availability and use of alternative fuel.73

       (C) The director, in consultation with the director of 74
agriculture, shall adopt rules in accordance with Chapter 119. of 75
the Revised Code that are necessary for the administration of the 76
alternative fuel transportation program. The rules shall establish 77
at least all of the following:78

       (1) An application form and procedures governing the 79
application process for receiving funds under the program;80

       (2) A procedure for prioritizing the award of grants and 81
loans under the program. The procedures shall give preference to 82
all of the following:83

       (a) Publicly accessible refueling facilities;84

       (b) Entities applying to the program that have secured 85
funding from other sources, including, but not limited to, private 86
or federal incentives;87

       (c) Entities that have presented compelling evidence of 88
demand in the market in which the facilities or terminals will be 89
located;90

       (d) Entities that have committed to utilizing purchased or 91
installed facilities or terminals for the greatest number of 92
years;93

       (e) Entities that will be purchasing or installing facilities 94
or terminals for any type of alternative fuel.95

       (3) A requirement that the maximum incentive for the purchase 96
and installation of an alternative fuel refueling or distribution 97
facility or terminal be eighty per cent of the cost of the 98
facility or terminal, except that at least twenty per cent of the 99
total net cost of the facility or terminal shall be incurred by 100
the recipient and not compensated for by any other source;101

       (4) A requirement that the maximum incentive for the purchase 102
of alternative fuel be eighty per cent of the cost of the fuel or, 103
in the case of blended biodiesel or blended gasoline, eighty per 104
cent of the incremental cost of the blended biodiesel or blended 105
gasoline;106

       (5) Any other criteria, procedures, or guidelines that the 107
director determines are necessary to administer the program, 108
including fees, charges, interest rates, and payment schedules.109

       (D) An applicant for a grant or loan under this section that 110
sells motor vehicle fuel at retail shall agree that if the 111
applicant receives funding, the applicant will report to the 112
director the gallon or gallon equivalent amounts of alternative 113
fuel the applicant sells at retail in this state for a period of 114
three years after the project is completed.115

       The director shall enter into a written confidentiality 116
agreement with the applicant regarding the gallon or gallon 117
equivalent amounts sold as described in this division, and upon 118
execution of the agreement this information is not a public 119
record.120

       (E) There is hereby created in the state treasury the 121
alternative fuel transportation fund. The fund shall consist of 122
money transferred to the fund under division (C) of section 123
125.836 and under division (B)(2) of section 3706.27 of the 124
Revised Code, money that is appropriated to it by the general 125
assembly, and money as may be specified by the general assembly 126
from the advanced energy fund created by section 4928.61 of the 127
Revised Code. Money in the fund shall be used to make grants and 128
loans under the alternative fuel transportation program and by the 129
director in the administration of that program.130

       Sec. 122.084.  As used in this section, a "small business" is 131
a business that has fewer than five hundred employees and that 132
conducts operations in this state.133

       The director of development services, under Chapter 119. of 134
the Revised Code, shall adopt, and may amend and rescind, as 135
necessary and proper, to improve, rules that establish and provide 136
for the administration of a small business microloan revolving 137
loan program to assist small businesses. The director shall 138
include the following in the rules:139

       (A) Qualifications to be met by small businesses that seek to 140
receive microloans through the program;141

       (B) Procedures according to which small businesses shall 142
apply for microloans through the program;143

       (C) Criteria for reviewing applications for microloans, and 144
criteria for selecting small businesses that are entitled to 145
receive microloans;146

       (D) Standards for determining the amount of microloans;147

       (E) Specifications identifying the purposes to which 148
microloans may be applied, and methods through which the use of 149
microloans can be accounted for;150

       (F) Standards for setting the interest to be paid on 151
microloans, and standards for fixing the terms according to which 152
microloans are to be repaid;153

       (G) Procedures to be implemented upon default in repayment of 154
microloans;155

       (H) Qualifications to be met by, and procedures for 156
approving, business training programs in which individuals having 157
control of small businesses are required to have participated in 158
as a condition of receiving microloans; and159

        (I) Any other qualifications, procedures, criteria, 160
specifications, methods, or standards necessary and proper for 161
efficient and successful establishment and administration of the 162
small business microloan revolving loan program as a coherent 163
program to assist small businesses.164

       The director may prescribe forms that are necessary for 165
efficient and successful administration of the small business 166
microloan revolving loan program. The forms do not need to be 167
prescribed by rule.168

       The small business microloan revolving loan program is for 169
the general purposes of assisting small businesses to meet 170
capitalization requirements, expand business operations, and 171
create and retain jobs. A small business may not use a microloan 172
to pay debts that are outstanding at the time the microloan is 173
disbursed to the small business.174

        The amount of a microloan may not exceed fifty thousand 175
dollars. The interest charged on a microloan shall be a fixed rate 176
that is at or below the market rate in the community in which the 177
microloan applicant is doing business.178

       The director shall disburse microloans through the several 179
Ohio small business development centers. The individual or 180
individuals having control of a small business, as a condition of 181
receiving a microloan, shall have participated in and successfully 182
completed an approved business training program provided by or 183
through a small business development center or the development 184
services agency.185

       There is hereby created the small business microloan 186
revolving loan fund in the state treasury. The fund consists of 187
money appropriated to the fund, money received in repayment of 188
microloans made from the fund, and investment earnings on money in 189
the fund. The director shall use money in the fund to make 190
microloans to qualified small businesses through the small 191
business microloan revolving loan program, and to pay reasonable 192
costs of administering the program. All investment earnings on 193
money in the fund shall be credited to the fund.194

       Sec. 122.71.  As used in sections 122.71 to 122.83 of the 195
Revised Code:196

       (A) "Financial institution" means any banking corporation, 197
trust company, insurance company, savings and loan association, 198
building and loan association, or corporation, partnership, 199
federal lending agency, foundation, or other institution engaged 200
in lending or investing funds for industrial or business purposes.201

       (B) "Project" means any real or personal property connected 202
with or being a part of an industrial, distribution, commercial, 203
or research facility to be acquired, constructed, reconstructed, 204
enlarged, improved, furnished, or equipped, or any combination 205
thereof, with the aid provided under sections 122.71 to 122.83 of 206
the Revised Code, for industrial, commercial, distribution, and 207
research development of the state.208

       (C) "Mortgage" means the lien imposed on a project by a 209
mortgage on real property, or by financing statements on personal 210
property, or a combination of a mortgage and financing statements 211
when a project consists of both real and personal property.212

       (D) "Mortgagor" means the principal user of a project or the 213
person, corporation, partnership, or association unconditionally 214
guaranteeing performance by the principal user of its obligations 215
under the mortgage.216

       (E)(1) "Minority business enterprise" means an individual who 217
is a United States citizen and owns and controls a business, or a 218
partnership, corporation, or joint venture of any kind that is 219
owned and controlled by United States citizens, which citizen or 220
citizens are residents of this state and are members of one of the 221
following economically disadvantaged groups: Blacks or African 222
Americans, American Indians, Hispanics or Latinos, and Asians.223

       (2) "Owned and controlled" means that at least fifty-one per 224
cent of the business, including corporate stock if a corporation, 225
is owned by persons who belong to one or more of the groups set 226
forth in division (E)(1) of this section, and that those owners 227
have control over the management and day-to-day operations of the 228
business and an interest in the capital, assets, and profits and 229
losses of the business proportionate to their percentage of 230
ownership. In order to qualify as a minority business enterprise, 231
a business shall have been owned and controlled by those persons 232
at least one year prior to being awarded a contract pursuant to 233
this section.234

       (F) "Community improvement corporation" means a corporation 235
organized under Chapter 1724. of the Revised Code.236

       (G) "Ohio development corporation" means a corporation 237
organized under Chapter 1726. of the Revised Code.238

       (H) "Minority contractors business assistance organization" 239
means an entity engaged in the provision of management and 240
technical business assistance to minority business enterprise 241
entrepreneurs.242

       (I) "Minority business supplier development council" means a 243
nonprofit organization established as an affiliate of the national 244
minority supplier development council.245

       (J) "Regional economic development entity" means an entity 246
that is under contract with the director of development services247
to administer a loan program under this chapter in a particular 248
area of the state.249

       (K) "Community development corporation" means a corporation 250
organized under Chapter 1702. of the Revised Code that consists of 251
residents of the community and business and civic leaders and that 252
has as a principal purpose one or more of the following: the 253
revitalization and development of a low- to moderate-income 254
neighborhood or community; the creation of jobs for low- to 255
moderate-income residents; the development of commercial 256
facilities and services; providing training, technical assistance, 257
and financial assistance to small businesses; and planning, 258
developing, or managing low-income housing or other community 259
development activities.260

       (L) "Small business" means a business operating in this state 261
having five million dollars or less in annual payroll 262
expenditures.263

       Sec. 122.72.  (A) There is hereby created the minority 264
development financing advisory board to assist in carrying out the 265
programs created pursuant to sections 122.71 to 122.89 of the 266
Revised Code.267

       (B) The board shall consist of ten members. The director of 268
development services or the director's designee shall be a voting 269
member on the board. Seven members shall be appointed by the 270
governor with the advice and consent of the senate and selected 271
because of their knowledge of and experience in industrial, 272
business, and commercial financing, suretyship, construction, and 273
their understanding of the problems of minority business 274
enterprises; one member also shall be a member of the senate and 275
appointed by the president of the senate, and one member also 276
shall be a member of the house of representatives and appointed by 277
the speaker of the house of representatives. With respect to the 278
board, all of the following apply:279

       (1) Not more than four of the members of the board appointed 280
by the governor shall be of the same political party.281

       (2) Each member shall hold office from the date of the 282
member's appointment until the end of the term for which the 283
member was appointed.284

       (3) The terms of office for the seven members appointed by 285
the governor shall be for seven years, commencing on the first day 286
of October and ending on the thirtieth day of September of the 287
seventh year, except that of the original seven members, three 288
shall be appointed for three years and two shall be appointed for 289
five years.290

       (4) Any member of the board is eligible for reappointment.291

       (5) Any member appointed to fill a vacancy occurring prior to 292
the expiration of the term for which the member's predecessor was 293
appointed shall hold office for the remainder of the predecessor's 294
term.295

       (6) Any member shall continue in office subsequent to the 296
expiration date of the member's term until the member's successor 297
takes office, or until a period of sixty days has elapsed, 298
whichever occurs first.299

       (7) Before entering upon official duties as a member of the 300
board, each member shall take an oath as provided by Section 7 of 301
Article XV, Ohio Constitution.302

       (8) The governor may, at any time, remove any member 303
appointed by the governor pursuant to section 3.04 of the Revised 304
Code.305

       (9) Notwithstanding section 101.26 of the Revised Code, 306
members shall receive their necessary and actual expenses while 307
engaged in the business of the board and shall be paid at the per 308
diem rate of step 1 of pay range 31 of section 124.15 of the 309
Revised Code.310

       (10) Six members of the board constitute a quorum and the 311
affirmative vote of six members is necessary for any action taken 312
by the board.313

       (11) In the event of the absence of a member appointed by the 314
president of the senate or by the speaker of the house of 315
representatives, either of the following persons may serve in the 316
member's absence:317

       (a) The president of the senate or the speaker of the house 318
of representatives, whoever appointed the absent member;319

       (b) A member of the senate or of the house of representatives 320
of the same political party as the absent member, as designated by 321
the president of the senate or the speaker of the house of 322
representatives, whoever appointed the absent member.323

       (12) The board shall annually elect one of its members as 324
chairperson and another as vice-chairperson.325

       (13) The board shall meet on the second Tuesday of each 326
month.327

       Sec. 122.721. The small business development financing 328
advisory board is established to assist in carrying out the 329
programs created under section 122.891 of the Revised Code.330

       The board consists of ten members. The director of 331
development services or the director's designee is a voting member 332
of the board. Seven members shall be appointed by the governor 333
with the advice and consent of the senate, and shall have 334
knowledge of and experience in industrial, business, and 335
commercial financing, suretyship, and construction, and an 336
understanding of the problems of small businesses. One member 337
shall be a member of the senate appointed by the president of the 338
senate, and one member shall be a member of the house of 339
representatives appointed by the speaker of the house of 340
representatives.341

       Not more than four members appointed by the governor shall be 342
members of the same political party.343

       The terms of office for the seven members appointed by the 344
governor shall be seven years, commencing on the first day of 345
October and ending on the thirtieth day of September of the 346
seventh year, except that of the original seven members, three 347
shall be appointed for three years and two shall be appointed for 348
five years.349

       Each member shall hold office from the date of the member's 350
appointment until the end of the term for which the member was 351
appointed.352

       A member is eligible for reappointment.353

        A member appointed to fill a vacancy occurring prior to the 354
expiration of the term for which the member's predecessor was 355
appointed shall hold office for the remainder of the predecessor's 356
term.357

       A member shall continue in office subsequent to the 358
expiration date of the member's term until the member's successor 359
takes office, or until a period of sixty days has elapsed, 360
whichever occurs first.361

       Before entering upon official duties as a member, the member 362
shall take an oath as provided by Ohio Constitution, Article XV, 363
Section 7.364

       The governor, at any time under section 3.04 of the Revised 365
Code, may remove a member appointed by the governor.366

        Notwithstanding section 101.26 of the Revised Code, members 367
are entitled to their necessary and actual expenses while engaged 368
in the business of the board and shall be paid at the per diem 369
rate of step 1 of pay range 31 of section 124.15 of the Revised 370
Code.371

       Six members of the board constitute a quorum, and the 372
affirmative vote of six members is necessary for any action taken 373
by the board.374

        In the event a member appointed by the president of the 375
senate or by the speaker of the house of representatives is 376
absent, either of the following persons may serve in the member's 377
absence: the president of the senate or the speaker of the house 378
of representatives, whoever appointed the absent member, or a 379
member of the senate or of the house of representatives of the 380
same political party as the absent member, as designated by the 381
president of the senate or the speaker of the house of 382
representatives, whoever appointed the absent member.383

       The board shall annually elect one of its members as 384
chairperson and another member as vice-chairperson.385

       The board shall meet on the second Tuesday of each month.386

       Sec. 122.731.  (A) The powers and duties provided in section 387
122.891 of the Revised Code are established in order to promote 388
the welfare of the people of the state by encouraging the 389
establishment and expansion of small businesses; to stabilize the 390
economy; to provide employment; to assist in the development 391
within the state of industrial, commercial, distribution, and 392
research activities required for the people of the state, and for 393
their gainful employment; and otherwise to create or preserve jobs 394
and employment opportunities and to improve the economic welfare 395
of the people of the state. It is determined that the 396
accomplishment of those purposes is essential so that the people 397
of the state may maintain their present high standards of living 398
in comparison with the people of other states and so that 399
opportunities for employment and for favorable markets for the 400
products of the state's natural resources, agriculture, and 401
manufacturing will be improved. It further is determined that it 402
therefore is necessary to establish the program authorized under 403
section 122.891 of the Revised Code, to establish the small 404
business development financing advisory board, and to vest it and 405
the director of development services with the powers and duties 406
provided in that section.407

       (B) The small business development financing advisory board 408
shall do all of the following:409

       (1) Make recommendations to the director with regard to 410
applications for assistance under section 122.891 of the Revised 411
Code;412

       (2) Advise the director in the administration of section 413
122.891 of the Revised Code; and414

       (3) Adopt bylaws to govern the conduct of the business of the 415
board.416

        The board may revise its recommendations to reflect any 417
changes in the proposed assistance made by the director.418

       Sec. 122.74.  (A)(1) The director of development services419
shall do all of the following:420

       (a) Receive applications for assistance under sections 122.71 421
to 122.89122.891 of the Revised Code and applications from surety 422
companies for bond guarantees under section 122.90 of the Revised 423
Code, and, after processing but subject to division (A)(2) of this 424
section, forward them to the minority development financing 425
advisory board or small business development financing advisory 426
board, as applicable, together with necessary supporting 427
information;428

       (b) Receive the recommendations of the boardrespective 429
boards and make a final determination whether to approve the 430
application for assistance;431

       (c) Receive recommendations from a regional economic 432
development entity for loans made under section 122.76 of the 433
Revised Code and make a final determination, notwithstanding 434
divisions (A)(1) and (2) of this section, whether to approve the 435
proposed loan;436

        (d) Transmit the director's determinations to approve 437
assistance to the controlling board unless such assistance falls 438
under section 122.90 of the Revised Code and has been previously 439
approved by the controlling board, together with any information 440
the controlling board requires for its review and decision as to 441
whether to approve the assistance.442

       (2) The director is not required to submit any determination, 443
data, terms, or any other application materials or information to 444
the minority development financing advisory board when provision 445
of the assistance has been recommended to the director by a 446
regional economic development entity or when an application for a 447
surety company for bond guarantees under section 122.90 of the 448
Revised Code has been previously approved by the controlling 449
board.450

       (B) The director may do all of the following:451

       (1) Fix the rate of interest and charges to be made upon or 452
with respect to moneys loaned or guaranteed by the director and 453
the terms upon which mortgages and lease rentals may be guaranteed 454
and the rates of charges to be made for them and make provisions 455
for the operation of the funds established by the director in 456
accordance with this section and sections 122.80, 122.88, and 457
122.90 of the Revised Code;458

       (2) Loan and guarantee moneys from the fund established in 459
accordance with section 122.80 of the Revised Code pursuant to and 460
in compliance with sections 122.71 to 122.90 of the Revised Code.461

       (3) Acquire in the name of the director any property of any 462
kind or character in accordance with sections 122.71 to 122.90 of 463
the Revised Code, by purchase, purchase at foreclosure, or 464
exchange on such terms and in such manner as the director 465
considers proper;466

       (4) Make and enter into all contracts and agreements 467
necessary or incidental to the performance of the director's 468
duties and the exercise of the director's powers under sections 469
122.71 to 122.90 of the Revised Code;470

       (5) Maintain, protect, repair, improve, and insure any 471
property that the director has acquired and dispose of it by sale, 472
exchange, or lease for the consideration and on the terms and in 473
the manner as the director considers proper, but the director 474
shall not operate any such property as a business except as the 475
lessor of it;476

       (6)(a) When the cost of any contract for the maintenance, 477
protection, repair, or improvement of any property held by the 478
director, other than compensation for personal services, involves 479
an expenditure of more than fifty thousand dollars, the director 480
shall make a written contract with the lowest responsive and 481
responsible bidder in accordance with section 9.312 of the Revised 482
Code after advertisement for not less than two consecutive weeks 483
in a newspaper of general circulation in the county where such 484
contract, or some substantial part of it, is to be performed, and 485
in such other publications as the director determines, which 486
notice shall state the general character of the work and the 487
general character of the materials to be furnished, the place 488
where plans and specifications therefor may be examined, and the 489
time and place of receiving bids.490

       (b) Each bid for a contract for the construction, demolition, 491
alteration, repair, or reconstruction of an improvement shall 492
contain the full name of every person interested in it and meet 493
the requirements of section 153.54 of the Revised Code.494

       (c) Each bid for a contract, except as provided in division 495
(B)(6)(b) of this section, shall contain the full name of every 496
person interested in it and shall be accompanied by bond or 497
certified check on a solvent bank, in such amount as the director 498
considers sufficient, that if the bid is accepted a contract will 499
be entered into and the performance of the proposal secured.500

       (d) The director may reject any and all bids.501

       (e) A bond with good and sufficient surety, approved by the 502
director, shall be required of every contractor awarded a contract 503
except as provided in division (B)(6)(b) of this section, in an 504
amount equal to at least fifty per cent of the contract price, 505
conditioned upon faithful performance of the contract.506

       (7) Employ or contract with financial consultants, 507
appraisers, consulting engineers, superintendents, managers, 508
construction and accounting experts, attorneys, and other 509
employees and agents as are necessary in the director's judgment 510
and fix their compensation;511

       (8) Receive and accept grants, gifts, and contributions of 512
money, property, labor, and other things of value to be held, 513
used, and applied only for the purpose for which the grants, 514
gifts, and contributions are made, from individuals, private and 515
public corporations, from the United States or any agency thereof, 516
from the state or any agency thereof, and from any political 517
subdivision of the state, and may agree to repay any contribution 518
of money or to return any property contributed or the value 519
thereof at such times, in amounts, and on terms and conditions, 520
excluding the payment of interest, as the director determines at 521
the time the contribution is made, and may evidence the 522
obligations by notes, bonds, or other written instruments;523

       (9) Establish with the treasurer of state the funds provided 524
in sections 122.80 and 122.88 of the Revised Code in addition to 525
such funds as the director determines are necessary or proper;526

       (10) Adopt rules under Chapter 119. of the Revised Code 527
necessary to implement sections 122.71 to 122.90 of the Revised 528
Code.529

       (11) Do all acts and things necessary or proper to carry out 530
the powers expressly granted and the duties imposed in sections 531
122.71 to 122.90 of the Revised Code.532

       (C)(1) All expenses and obligations incurred by the director 533
in carrying out the director's powers and in exercising the 534
director's duties under sections 122.71 to 122.90 of the Revised 535
Code shall be payable solely from revenues or other receipts or 536
income of the director, from grants, gifts, and contributions, or 537
funds established in accordance with such sections. Such sections 538
do not authorize the director to incur indebtedness or to impose 539
liability on the state or any political subdivision of the state.540

       (2) Financial statements and other data submitted to the 541
director by any corporation, partnership, or person in connection 542
with financial assistance provided under sections 122.71 to 122.90 543
of the Revised Code, or any information taken from such statements 544
or data for any purpose, shall not be open to public inspection.545

       Sec. 122.75.  The director of development services shall, for 546
the minority business development loan program, the minority 547
business bonding program, the small business bonding program, and 548
the minority business bond guarantee program under sections 122.87 549
to 122.90 of the Revised Code, do all of the following:550

       (A) Hire employees, consultants, and agents and fix their 551
compensation;552

       (B) Adopt bylaws and rules for the regulation of the business 553
of the minority development financing advisory board and the small 554
business development financing advisory board;555

       (C) Receive and accept grants, gifts, and contributions of 556
money, property, labor, and other things of value, to be held, 557
used, and applied only for the purpose for which the grants, 558
gifts, and contributions are made, from individuals, private and 559
public corporations, the United States or any agency of the United 560
States, the state or any agency of the state, and any political 561
subdivision of the state. The director may agree to repay any 562
contribution of money or to return any property contributed or its 563
value at such times, in amounts, and on terms and conditions, 564
excluding the payment of interest, as the director determines at 565
the time the contribution is made. The director may evidence the 566
obligations by written contracts, subject to section 122.76 of the 567
Revised Code; provided, that the director shall not thereby incur 568
indebtedness of or impose liability upon the state or any 569
political subdivision.570

       (D) Establish funds with the treasurer of state in addition 571
to the minority and small business bonding fund created under 572
section 122.88 of the Revised Code;573

       (E) Invest money in the funds the director establishes 574
pursuant to division (D) of this section that is in excess of 575
current needs, in notes, bonds, or other obligations that are 576
direct obligations of or are guaranteed by the United States, or 577
in certificates of deposit or withdrawable accounts of banks, 578
trust companies, or savings and loan associations organized under 579
the laws of this state or the United States, and may credit the 580
income or sell the investments at the director's discretion;581

       (F) Acquire any property of any kind or character in 582
accordance with sections 122.71 to 122.83 of the Revised Code, by 583
purchase, purchase at foreclosure, or exchange on terms and in a 584
manner the director considers proper;585

       (G)(1) Maintain, protect, repair, improve, and insure any 586
property the director has acquired and dispose of it by sale, 587
exchange, or lease for the consideration and on terms and in a 588
manner the director considers proper. The director may not operate 589
any property as a business except as a lessor of the property. 590
When the cost of any contract for the maintenance, protection, 591
repair, or improvement of any property of the advisory board 592
connected with the minority business development loan program, 593
other than compensation for personal services, involves an 594
expenditure of more than one thousand dollars, the director shall 595
enter into a written contract with the lowest and best bidder 596
after advertisement for not less than four consecutive weeks in a 597
newspaper of general circulation in the county where the contract, 598
or some substantial part of it, is to be performed, and in other 599
publications as the director determines. The notice shall state 600
the general character of the work and the general character of the 601
materials to be furnished, the place where plans and 602
specifications for the work and materials may be examined, and the 603
time and place of receiving bids.604

       (2) Each bid for a contract for the construction, demolition, 605
alteration, repair, or reconstruction of an improvement shall 606
contain the full name of every person interested in it and meet 607
the requirements of section 153.54 of the Revised Code.608

       (3) Each bid for a contract, except as provided in division 609
(G)(2) of this section, shall contain the full name of every 610
person interested in it and shall be accompanied by a bond or 611
certified check on a solvent bank, in the amount of ten per cent 612
of the bid, that if the bid is accepted a contract will be entered 613
into and the performance of its proposal secured. The director may 614
reject any or all bids. A bond with good and sufficient surety, 615
approved by the director, shall be required of all contractors in 616
an amount equal to at least one hundred per cent of the contract 617
price, conditioned upon faithful performance of the contract.618

       (H) Expend money appropriated to the department of619
development services agency by the general assembly for the 620
purposes of sections 122.71 to 122.83 and 122.87 to 122.90 of the 621
Revised Code;622

       (I) Do all acts and things necessary or proper to carry out 623
the powers expressly granted and the duties imposed in sections 624
122.71 to 122.83 and 122.87 to 122.90 of the Revised Code.625

       Sec. 122.87.  As used in sections 122.87 to 122.90 of the 626
Revised Code:627

       (A) "Surety company" means a company that is authorized by 628
the department of insurance to issue bonds as surety.629

       (B) "Minority business" means any of the following 630
occupations:631

       (1) Minority construction contractor;632

       (2) Minority seller;633

       (3) Minority service vendor.634

       (C) "Minority construction contractor" means a person who is 635
both a construction contractor and an owner of a minority business 636
enterprise certified under division (B) of section 123.151 of the 637
Revised Code.638

       (D) "Minority seller" means a person who is both a seller of 639
goods and an owner of a minority business enterprise listed on the 640
special minority business enterprise bid notification list under 641
division (B) of section 125.08 of the Revised Code.642

       (E) "Minority service vendor" means a person who is both a 643
vendor of services and an owner of a minority business enterprise 644
listed on the special minority business enterprise bid 645
notification list under division (B) of section 125.08 of the 646
Revised Code.647

       (F) "Minority business enterprise" has the meaning given in 648
section 122.71 of the Revised Code.649

       (G) "EDGE business enterprise" means a sole proprietorship, 650
association, partnership, corporation, limited liability 651
corporation, or joint venture certified as a participant in the 652
encouraging diversity, growth, and equity program by the director 653
of administrative services under section 123.152 of the Revised 654
Code.655

       (H) "Small business" means a business operating in this state 656
having five million dollars or less in annual payroll 657
expenditures.658

       Sec. 122.88.  (A) There is hereby created in the state 659
treasury the minority and small business bonding fund, consisting 660
of moneys deposited or credited to it pursuant to section 169.05 661
of the Revised Code; all grants, gifts, and contributions received 662
pursuant to division (B)(9) of section 122.74 of the Revised Code; 663
all moneys recovered following defaults; and any other moneys 664
obtained by the director of development services for the purposes 665
of sections 122.87 to 122.90 of the Revised Code. The fund shall 666
be administered by the director. Moneys in the fund shall be held 667
in trust for the purposes of sections 122.87 to 122.90 of the 668
Revised Code.669

       (B) Any claims against the state arising from defaults shall 670
be payable from the minority and small business bonding program 671
administrative and loss reserve fund as provided in division (C) 672
of this section or from the minority and small business bonding 673
fund. Nothing in sections 122.87 to 122.90 of the Revised Code 674
grants or pledges to any obligee or other person any state moneys 675
other than the moneys in the minority and small business bonding 676
program administrative and loss reserve fund or the minority and 677
small business bonding fund, or moneys available to the minority 678
and small business bonding fund upon request of the director in 679
accordance with division (B) of section 169.05 of the Revised 680
Code.681

       (C) There is hereby created in the state treasury the 682
minority and small business bonding program administrative and 683
loss reserve fund, consisting of all premiums charged and 684
collected in accordance with sectionsections 122.89 and 122.891685
of the Revised Code and any interest income earned from the moneys 686
in the minority and small business bonding fund. All expenses of 687
the director and, the minority development financing advisory 688
board, and the small business development financing advisory board689
in carrying out the purposes of sections 122.87 to 122.90 of the 690
Revised Code shall be paid from the minority and small business 691
bonding program administrative and loss reserve fund.692

       Any moneys to the credit of the minority and small business 693
bonding program administrative and loss reserve fund in excess of 694
the amount necessary to fund the appropriation authority for the 695
minority and small business bonding program administrative and 696
loss reserve fund shall be held as a loss reserve to pay claims 697
arising from defaults on surety bonds underwritten in accordance 698
with section 122.89 or 122.891 of the Revised Code or guaranteed 699
in accordance with section 122.90 of the Revised Code. If the 700
balance of funds in the minority and small business bonding 701
program administrative and loss reserve fund is insufficient to 702
pay a claim against the state arising from default, then such 703
claim shall be payable from the minority and small business 704
bonding fund.705

       Sec. 122.89.  (A) The director of development services may 706
execute bonds as surety for minority businesses as principals, on 707
contracts with the state, any political subdivision or 708
instrumentality thereof, or any person as the obligee. The 709
director as surety may exercise all the rights and powers of a 710
company authorized by the department of insurance to execute bonds 711
as surety but shall not be subject to any requirements of a surety 712
company under Title XXXIX of the Revised Code nor to any rules of 713
the department of insurance.714

       (B) The director, with the advice of the minority development 715
financing advisory board, shall adopt rules under Chapter 119. of 716
the Revised Code establishing procedures for application for 717
surety bonds by minority businesses and for review and approval of 718
applications. The board shall review each application in 719
accordance with the rules and, based on the bond worthiness of 720
each applicant, shall refer all qualified applicants to the 721
director. Based on the recommendation of the board, the director 722
shall determine whether or not the applicant shall receive 723
bonding. The rules shall establish the maximum amount of any bond 724
issued at two million dollars.725

       (C) The rules of the board shall require the minority 726
business to pay a premium in advance for the bond to be 727
established by the director, with the advice of the board after 728
the director receives advice from the superintendent of insurance 729
regarding the standard market rates for premiums for similar 730
bonds. All premiums paid by minority businesses shall be paid into 731
the minority and small business bonding program administrative and 732
loss reserve fund.733

       (D) The rules of the board shall provide for a retainage of 734
money paid to the minority business or EDGE business enterprise of 735
fifteen per cent for a contract valued at more than fifty thousand 736
dollars and for a retainage of twelve per cent for a contract 737
valued at fifty thousand dollars or less.738

       (E) The penal sum amounts of all outstanding bonds issued by 739
the director shall not exceed the amount of moneys in the minority 740
and small business bonding fund and available to the fund under 741
division (B) of section 169.05 of the Revised Code.742

       (F) The superintendent of insurance shall provide such 743
technical and professional assistance as is considered necessary 744
by the director, including providing advice regarding the standard 745
market rates for bond premiums as described under division (C) of 746
this section.747

       (G) Notwithstanding any provision of the Revised Code to the 748
contrary, a minority business or EDGE business enterprise may bid 749
or enter into a contract with the state or with any 750
instrumentality of the state without being required to provide a 751
bond as follows:752

       (1) For the first contract that a minority business or EDGE 753
business enterprise enters into with the state or with any 754
particular instrumentality of the state, the minority business or 755
EDGE business enterprise may bid or enter into a contract valued 756
at twenty-five thousand dollars or less without being required to 757
provide a bond, but only if the minority business or EDGE business 758
enterprise is participating in a qualified contractor assistance 759
program or has successfully completed a qualified contractor 760
assistance program after the effective date of this amendment761
October 16, 2009;762

       (2) After the state or any particular instrumentality of the 763
state has accepted the first contract as completed and all 764
subcontractors and suppliers on the contract have been paid, the 765
minority business or EDGE business enterprise may bid or enter 766
into a second contract with the state or with that particular 767
instrumentality of the state valued at fifty thousand dollars or 768
less without being required to provide a bond, but only if the 769
minority business or EDGE business enterprise is participating in 770
a qualified contractor assistance program or has successfully 771
completed a qualified contractor assistance program after the 772
effective date of this amendmentOctober 16, 2009;773

       (3) After the state or any particular instrumentality of the 774
state has accepted the second contract as completed and all 775
subcontractors and suppliers on the contract have been paid, the 776
minority business or EDGE business enterprise may bid or enter 777
into a third contract with the state or with that particular 778
instrumentality of the state valued at one hundred thousand 779
dollars or less without being required to provide a bond, but only 780
if the minority business or EDGE business enterprise has 781
successfully completed a qualified contractor assistance program 782
after the effective date of this amendmentOctober 16, 2009;783

       (4) After the state or any particular instrumentality of the 784
state has accepted the third contract as completed and all 785
subcontractors and suppliers on the contract have been paid, the 786
minority business or EDGE business enterprise may bid or enter 787
into a fourth contract with the state or with that particular 788
instrumentality of the state valued at three hundred thousand 789
dollars or less without being required to provide a bond, but only 790
if the minority business or EDGE business enterprise has 791
successfully completed a qualified contractor assistance program 792
after the effective date of this amendmentOctober 16, 2009;793

       (5) After the state or any instrumentality of the state has 794
accepted the fourth contract as completed and all subcontractors 795
and suppliers on the contract have been paid, upon a showing that 796
with respect to a contract valued at four hundred thousand dollars 797
or less with the state or with any particular instrumentality of 798
the state, that the minority business or EDGE business enterprise 799
either has been denied a bond by two surety companies or that the 800
minority business or EDGE business enterprise has applied to two 801
surety companies for a bond and, at the expiration of sixty days 802
after making the application, has neither received nor been denied 803
a bond, the minority business or EDGE business enterprise may 804
repeat its participation in the unbonded state contractor program. 805
Under no circumstances shall a minority business or EDGE business 806
enterprise be permitted to participate in the unbonded state 807
contractor program more than twice.808

       (H) Notwithstanding any provision of the Revised Code to the 809
contrary, a minority business or EDGE business enterprise may bid 810
or enter into a contract with any political subdivision of the 811
state or with any instrumentality of a political subdivision 812
without being required to provide a bond as follows:813

       (1) For the first contract that the minority business or EDGE 814
business enterprise enters into with any particular political 815
subdivision of the state or with any particular instrumentality of 816
a political subdivision, the minority business or EDGE business 817
enterprise may bid or enter into a contract valued at twenty-five 818
thousand dollars or less without being required to provide a bond, 819
but only if the minority business or EDGE business enterprise is 820
participating in a qualified contractor assistance program or has 821
successfully completed a qualified contractor assistance program 822
after the effective date of this amendmentOctober 16, 2009;823

       (2) After any political subdivision of the state or any 824
instrumentality of a political subdivision has accepted the first 825
contract as completed and all subcontractors and suppliers on the 826
contract have been paid, the minority business or EDGE business 827
enterprise may bid or enter into a second contract with that 828
particular political subdivision of the state or with that 829
particular instrumentality of a political subdivision valued at 830
fifty thousand dollars or less without being required to provide a 831
bond, but only if the minority business or EDGE business 832
enterprise is participating in a qualified contractor assistance 833
program or has successfully completed a qualified contractor 834
assistance program after the effective date of this amendment835
October 16, 2009;836

       (3) After any political subdivision of the state or any 837
instrumentality of a political subdivision has accepted the second 838
contract as completed and all subcontractors and suppliers on the 839
contract have been paid, the minority business or EDGE business 840
enterprise may bid or enter into a third contract with that 841
particular political subdivision of the state or with that 842
particular instrumentality of a political subdivision valued at 843
one hundred thousand dollars or less without being required to 844
provide a bond, but only if the minority business or EDGE business 845
enterprise has successfully completed a qualified contractor 846
assistance program after the effective date of this amendment847
October 16, 2009;848

       (4) After any political subdivision of the state or any 849
instrumentality of a political subdivision has accepted the third 850
contract as completed and all subcontractors and suppliers on the 851
contract have been paid, the minority business or EDGE business 852
enterprise may bid or enter into a fourth contract with that 853
particular political subdivision of the state or with that 854
particular instrumentality of a political subdivision valued at 855
two hundred thousand dollars or less without being required to 856
provide a bond, but only if the minority business or EDGE business 857
enterprise has successfully completed a qualified contractor 858
assistance program after the effective date of this amendment859
October 16, 2009;860

       (5) After any political subdivision of the state or any 861
instrumentality of a political subdivision has accepted the fourth 862
contract as completed and all subcontractors and suppliers on the 863
contract have been paid, upon a showing that with respect to a 864
contract valued at three hundred thousand dollars or less with any 865
political subdivision of the state or any instrumentality of a 866
political subdivision, that the minority business or EDGE business 867
enterprise either has been denied a bond by two surety companies 868
or that the minority business or EDGE business enterprise has 869
applied to two surety companies for a bond and, at the expiration 870
of sixty days after making the application, has neither received 871
nor been denied a bond, the minority business or EDGE business 872
enterprise may repeat its participation in the unbonded political 873
subdivision contractor program. Under no circumstances shall a 874
minority business or EDGE business enterprise be permitted to 875
participate in the unbonded political subdivision contractor 876
program more than twice.877

       (I) Notwithstanding any provision of the Revised Code to the 878
contrary, if a minority business or EDGE business enterprise has 879
entered into two or more contracts with the state or with any 880
instrumentality of the state, the minority business or EDGE 881
business enterprise may bid or enter into a contract with a 882
political subdivision of the state or with any instrumentality of 883
a political subdivision valued at the level at which the minority 884
business or EDGE business enterprise would qualify if entering 885
into an additional contract with the state.886

       (J) The director of development services shall coordinate and 887
oversee the unbonded state contractor program described in 888
division (G) of this section, the unbonded political subdivision 889
contractor program described in division (H) of this section, and 890
the approval of a qualified contractor assistance program. The 891
director shall prepare an annual report and submit it to the 892
governor and the general assembly on or before the first day of 893
February that includes the following: information on the 894
director's activities for the preceding calendar year regarding 895
the unbonded state contractor program, the unbonded political 896
subdivision contractor program, and the qualified contractor 897
assistance program; a summary and description of the operations 898
and activities of these programs; an assessment of the 899
achievements of these programs; and a recommendation as to whether 900
these programs need to continue.901

       (K) As used in this section:902

       (1) "EDGE business enterprise" means an EDGE business 903
enterprise certified under section 123.152 of the Revised Code.904

       (2) "Qualified contractor assistance program" means an 905
educational program or technical assistance program for business 906
development that is designed to assist a minority business or EDGE 907
business enterprise in becoming eligible for bonding and has been 908
approved by the director of development services for use as 909
required under this section.910

       (3) "Successfully completed a qualified contractor assistance 911
program" means the minority business or EDGE business enterprise 912
completed such a program on or after the effective date of this 913
amendmentOctober 16, 2009. 914

       (4) "Unbonded state contractor program" means the program 915
described in division (G) of this section.916

       (5) "Unbonded political subdivision contractor program" means 917
the program described in division (H) of this section.918

       Sec. 122.891. (A) As used in this section:919

       (1) "Qualified contractor assistance program" means an 920
educational program or technical assistance program for business 921
development that is designed to assist a small business in 922
becoming eligible for bonding and that has been approved by the 923
director of development services for operation and attendance as 924
required under this section.925

       (2) "Successfully completed a qualified contractor assistance 926
program" means the small business completed such a program on or 927
after the effective date of this section.928

       (3) "Unbonded state contractor program" means the program 929
described in division (H) of this section.930

       (4) "Unbonded political subdivision contractor program" means 931
the program described in division (I) of this section.932

       (B) The director may execute bonds as surety for small 933
businesses as principals on contracts with the state or 934
instrumentality thereof, a political subdivision or 935
instrumentality thereof, or any person as the obligee. The 936
director as surety may exercise all the rights and powers of a 937
company authorized by the department of insurance to execute bonds 938
as surety, but shall not be subject to any requirements of a 939
surety company under Title XXXIX of the Revised Code or to any 940
rules of the department or superintendent of insurance.941

       (C) The director, with the advice of the small business 942
development financing advisory board, shall adopt rules under 943
Chapter 119. of the Revised Code establishing procedures whereby 944
small businesses shall apply for surety bonds, and for the review 945
and approval of applications. The board shall review each 946
application in accordance with the rules and, based upon the bond 947
worthiness of each applicant, shall refer all qualified applicants 948
to the director. Based on the recommendation of the board, the 949
director shall determine whether or not the applicant is entitled 950
to receive bonding. The rules shall establish the maximum amount 951
of any bond issued at two million dollars.952

       (D) The rules shall require the small business to pay a 953
premium in advance for the bond. The premium shall be established 954
by the director, with the advice of the board, after the director 955
has received advice from the superintendent of insurance regarding 956
the standard market rates for premiums for similar bonds. All 957
premiums paid by small businesses shall be paid into the minority 958
and small business bonding program administrative and loss reserve 959
fund.960

       (E) The rules shall provide for a retainage of money paid to 961
the small business of fifteen per cent for a contract valued at 962
more than fifty thousand dollars and for a retainage of twelve per 963
cent for a contract valued at fifty thousand dollars or less.964

       (F) The penal sum amounts of all outstanding bonds issued by 965
the director shall not exceed the amount of money in and available 966
to the minority and small business bonding fund under division (B) 967
of section 169.05 of the Revised Code.968

       (G) The superintendent of insurance shall provide technical 969
and professional assistance as is considered necessary by the 970
director, including providing advice regarding the standard market 971
rates for bond premiums as described under division (D) of this 972
section.973

       (H) Notwithstanding any provision of the Revised Code to the 974
contrary, a small business may bid or enter into a contract with 975
the state or with any instrumentality of the state without being 976
required to provide a bond as follows:977

       (1) For the first contract that a small business enters into 978
with the state or with any particular instrumentality of the 979
state, the small business may bid or enter into a contract valued 980
at twenty-five thousand dollars or less without being required to 981
provide a bond, but only if the small business is participating in 982
a qualified contractor assistance program or has successfully 983
completed a qualified contractor assistance program after the 984
effective date of this section.985

       (2) After the state or the particular instrumentality of the 986
state has accepted the first contract as completed and all 987
subcontractors and suppliers on the contract have been paid, the 988
small business may bid or enter into a second contract with the 989
state or with that particular instrumentality of the state valued 990
at fifty thousand dollars or less without being required to 991
provide a bond, but only if the small business is participating in 992
a qualified contractor assistance program or has successfully 993
completed a qualified contractor assistance program after the 994
effective date of this section.995

       (3) After the state or the particular instrumentality of the 996
state has accepted the second contract as completed and all 997
subcontractors and suppliers on the contract have been paid, the 998
small business may bid or enter into a third contract with the 999
state or with that particular instrumentality of the state valued 1000
at one hundred thousand dollars or less without being required to 1001
provide a bond, but only if the small business has successfully 1002
completed a qualified contractor assistance program after the 1003
effective date of this section.1004

       (4) After the state or the particular instrumentality of the 1005
state has accepted the third contract as completed and all 1006
subcontractors and suppliers on the contract have been paid, the 1007
small business may bid or enter into a fourth contract with the 1008
state or with that particular instrumentality of the state valued 1009
at three hundred thousand dollars or less without being required 1010
to provide a bond, but only if the small business has successfully 1011
completed a qualified contractor assistance program after the 1012
effective date of this section.1013

       (5) After the state or the instrumentality of the state has 1014
accepted the fourth contract as completed and all subcontractors 1015
and suppliers on the contract have been paid, upon a showing that 1016
with respect to a contract valued at four hundred thousand dollars 1017
or less with the state or with any particular instrumentality of 1018
the state, that the small business either has been denied a bond 1019
by two surety companies or that the small business has applied to 1020
two surety companies for a bond and, at the expiration of sixty 1021
days after making the application, has neither received nor been 1022
denied a bond, the small business may repeat its participation in 1023
the unbonded state contractor program. Under no circumstances 1024
shall a small business be permitted to participate in the unbonded 1025
state contractor program more than twice.1026

       (I) Notwithstanding any provision of the Revised Code to the 1027
contrary, a small business may bid or enter into a contract with 1028
any political subdivision of the state or with any instrumentality 1029
of a political subdivision without being required to provide a 1030
bond as follows:1031

       (1) For the first contract that the small business enters 1032
into with any particular political subdivision of the state or 1033
with any particular instrumentality of a political subdivision, 1034
the small business may bid or enter into a contract valued at 1035
twenty-five thousand dollars or less without being required to 1036
provide a bond, but only if the small business is participating in 1037
a qualified contractor assistance program or has successfully 1038
completed a qualified contractor assistance program after the 1039
effective date of this section.1040

       (2) After the political subdivision or the instrumentality of 1041
a political subdivision has accepted the first contract as 1042
completed and all subcontractors and suppliers on the contract 1043
have been paid, the small business may bid or enter into a second 1044
contract with that particular political subdivision or with that 1045
particular instrumentality of a political subdivision valued at 1046
fifty thousand dollars or less without being required to provide a 1047
bond, but only if the small business is participating in a 1048
qualified contractor assistance program or has successfully 1049
completed a qualified contractor assistance program after the 1050
effective date of this section.1051

       (3) After the political subdivision or the instrumentality of 1052
a political subdivision has accepted the second contract as 1053
completed and all subcontractors and suppliers on the contract 1054
have been paid, the small business may bid or enter into a third 1055
contract with that particular political subdivision or with that 1056
particular instrumentality of a political subdivision valued at 1057
one hundred thousand dollars or less without being required to 1058
provide a bond, but only if the small business has successfully 1059
completed a qualified contractor assistance program after the 1060
effective date of this section.1061

       (4) After the political subdivision or the instrumentality of 1062
a political subdivision has accepted the third contract as 1063
completed and all subcontractors and suppliers on the contract 1064
have been paid, the small business may bid or enter into a fourth 1065
contract with that particular political subdivision of the state 1066
or with that particular instrumentality of a political subdivision 1067
valued at two hundred thousand dollars or less without being 1068
required to provide a bond, but only if the small business has 1069
successfully completed a qualified contractor assistance program 1070
after the effective date of this section.1071

       (5) After the political subdivision or the instrumentality of 1072
a political subdivision has accepted the fourth contract as 1073
completed and all subcontractors and suppliers on the contract 1074
have been paid, upon a showing that with respect to a contract 1075
valued at three hundred thousand dollars or less with any 1076
political subdivision or any instrumentality of a political 1077
subdivision, that the small business either has been denied a bond 1078
by two surety companies or that the small business has applied to 1079
two surety companies for a bond and, at the expiration of sixty 1080
days after making the application, has neither received nor been 1081
denied a bond, the small business may repeat its participation in 1082
the unbonded political subdivision contractor program. Under no 1083
circumstances shall a small business be permitted to participate 1084
in the unbonded political subdivision contractor program more than 1085
twice.1086

       (J) Notwithstanding any provision of the Revised Code to the 1087
contrary, if a small business has entered into two or more 1088
contracts with the state or with any instrumentality of the state, 1089
the small business may bid or enter into a contract with a 1090
political subdivision or with any instrumentality of a political 1091
subdivision valued at the level at which the small business would 1092
qualify if entering into an additional contract with the state.1093

       (K) The director of development services shall coordinate and 1094
oversee the unbonded state contractor program described in 1095
division (H) of this section, the unbonded political subdivision 1096
contractor program described in division (I) of this section, and 1097
the approval of a qualified contractor assistance program. The 1098
director shall prepare an annual report and submit it to the 1099
governor and the general assembly on or before the first day of 1100
February that includes the following: information on the 1101
director's activities for the preceding calendar year regarding 1102
the unbonded state contractor program, the unbonded political 1103
subdivision contractor program, and the qualified contractor 1104
assistance program; a summary and description of the operations 1105
and activities of these programs; an assessment of the 1106
achievements of these programs; and a recommendation as to whether 1107
these programs need to continue.1108

       Sec. 122.90.  (A) The director of development services may 1109
guarantee bonds executed by sureties for minority businesses and 1110
EDGE business enterprises certified under section 123.152 of the 1111
Revised Code as principals on contracts with the state, any 1112
political subdivision or instrumentality, or any person as the 1113
obligee. The director, as guarantor, may exercise all the rights 1114
and powers of a company authorized by the department of insurance 1115
to guarantee bonds under Chapter 3929. of the Revised Code but 1116
otherwise is not subject to any laws related to a guaranty company 1117
under Title XXXIX of the Revised Code nor to any rules of the 1118
department of insurance.1119

       (B) The director shall adopt rules under Chapter 119. of the 1120
Revised Code to establish procedures for the application for bond 1121
guarantees and the review and approval of applications for bond 1122
guarantees submitted by sureties that execute bonds eligible for 1123
guarantees under division (A) of this section.1124

       (C) In accordance with rules adopted pursuant to this 1125
section, the director may guarantee up to ninety per cent of the 1126
loss incurred and paid by sureties on bonds guaranteed under 1127
division (A) of this section.1128

       (D) The penal sum amounts of all outstanding guarantees made 1129
by the director under this section shall not exceed three times 1130
the difference between the amount of moneys in the minority and 1131
small business bonding fund and available to the fund under 1132
division (B) of section 169.05 of the Revised Code and the amount 1133
of all outstanding bonds issued by the director in accordance with 1134
division (A) of section 122.89 of the Revised Code.1135

       (E) The director of development, with controlling board 1136
approval, may approve one application per fiscal year from each 1137
surety bond company for bond guarantees in an amount requested to 1138
support one fiscal year of that company's activity under this 1139
section. A surety bond company that applies for a bond guarantee 1140
under this division, whether or not the guarantee is approved, is 1141
not restricted from also applying for individual bond guarantees 1142
under division (A) of this section.1143

       Sec. 125.831. As used in sections 125.831 to 125.834 of the 1144
Revised Code:1145

       (A) "Alternative fuel" means any of the following fuels used 1146
in a motor vehicle:1147

       (1) E85 blend fuel;1148

       (2) Blended biodiesel;1149

       (3) Natural gas;1150

       (4) Liquefied petroleum gas;1151

       (5) Hydrogen;1152

       (6) Compressed air;1153

       (7) Any power source, including electricity;1154

       (8) Any fuel not described in divisions (A)(1) to (7) of this 1155
section that the United States department of energy determines, by 1156
final rule, to be substantially not petroleum, and that would 1157
yield substantial energy security and environmental benefits.1158

       (B) "Biodiesel" means a mono-alkyl ester combustible liquid 1159
fuel that is derived from vegetable oils or animal fats, or any 1160
combination of those reagents that meets the American society for 1161
testing and materials specification for biodiesel fuel (B100) 1162
blend stock distillate fuels and any other standards that the 1163
director of administrative services adopts by rule.1164

       (C) "Blended biodiesel" means a blend of biodiesel with 1165
petroleum based diesel fuel in which the resultant product 1166
contains not less than twenty per cent biodiesel that meets the 1167
American society for testing and materials specification for 1168
blended diesel fuel and any other standards that the director of 1169
administrative services adopts by rule.1170

       (D) "Diesel fuel" means any liquid fuel that is capable of 1171
use in discrete form or as a blend component in the operation of 1172
engines of the diesel type.1173

       (E) "E85 blend fuel" means fuel containing eighty-five per 1174
cent or more ethanol as defined in section 5733.46122.075 of the 1175
Revised Code or containing any other percentage of not less than 1176
seventy per cent ethanol if the United States department of energy 1177
determines, by rule, that the lower percentage is necessary to 1178
provide for the requirements of cold start, safety, or vehicle 1179
functions, and that meets the American society for testing and 1180
materials specification for E85 blend fuel and any other standards 1181
that the director of administrative services adopts by rule.1182

       (F) "Law enforcement officer" means an officer, agent, or 1183
employee of a state agency upon whom, by statute, a duty to 1184
conserve the peace or to enforce all or certain laws is imposed 1185
and the authority to arrest violators is conferred, within the 1186
limits of that statutory duty and authority, but does not include 1187
such an officer, agent, or employee if that duty and authority is 1188
location specific.1189

       (G)(1) "Motor vehicle" means any automobile, car minivan, 1190
cargo van, passenger van, sport utility vehicle, or pickup truck 1191
with a gross vehicle weight of under twelve thousand pounds.1192

       (2) "Motor vehicle" does not include, except for the purposes 1193
of division (C) of section 125.832 of the Revised Code, any 1194
vehicle described in division (G)(1) of this section that is used 1195
by a law enforcement officer and law enforcement agency or any 1196
vehicle that is so described and that is equipped with specialized 1197
equipment that is not normally found in such a vehicle and that is 1198
used to carry out a state agency's specific and specialized duties 1199
and responsibilities.1200

       (H) "Specialized equipment" does not include standard mobile 1201
radios with no capabilities other than voice communication, 1202
exterior and interior lights, or roof-mounted caution lights.1203

       (I) "State agency" means every organized body, office, board, 1204
authority, commission, or agency established by the laws of the 1205
state for the exercise of any governmental or quasi-governmental 1206
function of state government regardless of the funding source for 1207
that entity, other than any state institution of higher education, 1208
the office of the governor, lieutenant governor, auditor of state, 1209
treasurer of state, secretary of state, or attorney general, the 1210
general assembly or any legislative agency, the courts or any 1211
judicial agency, or any state retirement system or retirement 1212
program established by or referenced in the Revised Code.1213

       (J) "State institution of higher education" has the same 1214
meaning as in section 3345.011 of the Revised Code.1215

       Sec. 169.05.  (A) Every holder required to file a report 1216
under section 169.03 of the Revised Code shall, at the time of 1217
filing, pay to the director of commerce ten per cent of the 1218
aggregate amount of unclaimed funds as shown on the report, except 1219
for aggregate amounts of fifty dollars or less in which case one 1220
hundred per cent shall be paid. The funds may be deposited by the 1221
director in the state treasury to the credit of the unclaimed 1222
funds trust fund, which is hereby created, or placed with a 1223
financial organization. Any interest earned on money in the trust 1224
fund shall be credited to the trust fund. The remainder of the 1225
aggregate amount of unclaimed funds as shown on the report, plus 1226
earnings accrued to date of payment to the director, shall, at the 1227
option of the director, be retained by the holder or paid to the 1228
director for deposit as agent for the mortgage funds with a 1229
financial organization as defined in section 169.01 of the Revised 1230
Code, with the funds to be in income-bearing accounts to the 1231
credit of the mortgage funds, or the holder may enter into an 1232
agreement with the director specifying the obligations of the 1233
United States in which funds are to be invested, and agree to pay 1234
the interest on the obligations to the state. Holders retaining 1235
any funds not in obligations of the United States shall enter into 1236
an agreement with the director specifying the classification of 1237
income-bearing account in which the funds will be held and pay the 1238
state interest on the funds at a rate equal to the prevailing 1239
market rate for similar funds. Moneys that the holder is required 1240
to pay to the director rather than to retain may be deposited with 1241
the treasurer of state, or placed with a financial organization.1242

       Securities and other intangible property transferred to the 1243
director shall, within a reasonable time, be converted to cash and 1244
the proceeds deposited as provided for other funds.1245

       One-half of the funds evidenced by agreements, in 1246
income-bearing accounts, or on deposit with the treasurer of state 1247
shall be allocated on the records of the director to the mortgage 1248
insurance fund created by section 122.561 of the Revised Code. Out 1249
of the remaining half, after allocation of sufficient moneys to 1250
the minority and small business bonding fund to meet the 1251
provisions of division (B) of this section, the remainder shall be 1252
allocated on the records of the director to the housing 1253
development fund created by division (A) of section 175.11 of the 1254
Revised Code.1255

       (B) The director shall serve as agent for the director of 1256
development services and as agent for the Ohio housing finance 1257
agency in making deposits and withdrawals and maintaining records 1258
pertaining to the minority and small business bonding fund created 1259
by section 122.88 of the Revised Code, the mortgage insurance 1260
fund, and the housing development fund created by section 175.11 1261
of the Revised Code. Funds from the mortgage insurance fund are 1262
available to the director of development services when those funds 1263
are to be disbursed to prevent or cure, or upon the occurrence of, 1264
a default of a mortgage insured pursuant to section 122.451 of the 1265
Revised Code. Funds from the housing development fund are 1266
available upon request to the Ohio housing finance agency, in an 1267
amount not to exceed the funds allocated on the records of the 1268
director, for the purposes of section 175.05 of the Revised Code. 1269
Funds from the minority and small business bonding fund are 1270
available to the director of development services upon request to 1271
pay obligations on bonds the director writes pursuant to section 1272
122.88 of the Revised Code; except that, unless the general 1273
assembly authorizes additional amounts, the total maximum amount 1274
of moneys that may be allocated to the minority and small business 1275
bonding fund under this division is ten million dollars.1276

       When funds are to be disbursed, the appropriate agency shall 1277
call upon the director to transfer the necessary funds to it. The 1278
director shall first withdraw the funds paid by the holders and 1279
deposited with the treasurer of state or in a financial 1280
institution as agent for the funds. Whenever these funds are 1281
inadequate to meet the request, the director shall provide for a 1282
withdrawal of funds, within a reasonable time and in the amount 1283
necessary to meet the request, from financial institutions in 1284
which the funds were retained or placed by a holder and from other 1285
holders who have retained funds, in an equitable manner as the 1286
director prescribes. In the event that the amount to be withdrawn 1287
from any one holder is less than five hundred dollars, the amount 1288
to be withdrawn is at the director's discretion. The director 1289
shall then transfer to the agency the amount of funds requested.1290

       Funds deposited in the unclaimed funds trust fund are subject 1291
to call by the director when necessary to pay claims the director 1292
allows under section 169.08 of the Revised Code, in accordance 1293
with the director's rules, to defray the necessary costs of making 1294
publications this chapter requires and to pay other operating and 1295
administrative expenses the department of commerce incurs in the 1296
administration and enforcement of this chapter.1297

       The unclaimed funds trust fund shall be assessed a 1298
proportionate share of the administrative costs of the department 1299
of commerce in accordance with procedures the director of commerce 1300
prescribes and the director of budget and management approves. The 1301
assessment shall be paid from the unclaimed funds trust fund to 1302
the division of administration fund.1303

       (C) Earnings on the accounts in financial organizations to 1304
the credit of the mortgage funds shall, at the option of the 1305
financial organization, be credited to the accounts at times and 1306
at rates as earnings are paid on other accounts of the same 1307
classification held in the financial organization or paid to the 1308
director. The director shall be notified annually, and at other 1309
times as the director may request, of the amount of the earnings 1310
credited to the accounts. Interest on unclaimed funds a holder 1311
retains shall be paid to the director or credited as specified in 1312
the agreement under which the organization retains the funds. 1313
Interest payable to the director under an agreement to invest 1314
unclaimed funds and obligations of the United States shall be paid 1315
annually by the holder to the director. Any earnings or interest 1316
the director receives under this division shall be deposited in 1317
and credited to the mortgage funds.1318

       Sec. 4141.01.  As used in this chapter, unless the context 1319
otherwise requires:1320

       (A)(1) "Employer" means the state, its instrumentalities, its 1321
political subdivisions and their instrumentalities, Indian tribes, 1322
and any individual or type of organization including any 1323
partnership, limited liability company, association, trust, 1324
estate, joint-stock company, insurance company, or corporation, 1325
whether domestic or foreign, or the receiver, trustee in 1326
bankruptcy, trustee, or the successor thereof, or the legal 1327
representative of a deceased person who subsequent to December 31, 1328
1971, or in the case of political subdivisions or their 1329
instrumentalities, subsequent to December 31, 1973:1330

       (a) Had in employment at least one individual, or in the case 1331
of a nonprofit organization, subsequent to December 31, 1973, had 1332
not less than four individuals in employment for some portion of a 1333
day in each of twenty different calendar weeks, in either the 1334
current or the preceding calendar year whether or not the same 1335
individual was in employment in each such day; or1336

       (b) Except for a nonprofit organization, had paid for service 1337
in employment wages of fifteen hundred dollars or more in any 1338
calendar quarter in either the current or preceding calendar year; 1339
or1340

       (c) Had paid, subsequent to December 31, 1977, for employment 1341
in domestic service in a local college club, or local chapter of a 1342
college fraternity or sorority, cash remuneration of one thousand 1343
dollars or more in any calendar quarter in the current calendar 1344
year or the preceding calendar year, or had paid subsequent to 1345
December 31, 1977, for employment in domestic service in a private 1346
home cash remuneration of one thousand dollars in any calendar 1347
quarter in the current calendar year or the preceding calendar 1348
year:1349

       (i) For the purposes of divisions (A)(1)(a) and (b) of this 1350
section, there shall not be taken into account any wages paid to, 1351
or employment of, an individual performing domestic service as 1352
described in this division.1353

       (ii) An employer under this division shall not be an employer 1354
with respect to wages paid for any services other than domestic 1355
service unless the employer is also found to be an employer under 1356
division (A)(1)(a), (b), or (d) of this section.1357

       (d) As a farm operator or a crew leader subsequent to 1358
December 31, 1977, had in employment individuals in agricultural 1359
labor; and1360

       (i) During any calendar quarter in the current calendar year 1361
or the preceding calendar year, paid cash remuneration of twenty 1362
thousand dollars or more for the agricultural labor; or1363

       (ii) Had at least ten individuals in employment in 1364
agricultural labor, not including agricultural workers who are 1365
aliens admitted to the United States to perform agricultural labor 1366
pursuant to sections 1184(c) and 1101(a)(15)(H) of the 1367
"Immigration and Nationality Act," 66 Stat. 163, 189, 8 U.S.C.A. 1368
1101(a)(15)(H)(ii)(a), 1184(c), for some portion of a day in each 1369
of the twenty different calendar weeks, in either the current or 1370
preceding calendar year whether or not the same individual was in 1371
employment in each day; or1372

       (e) Is not otherwise an employer as defined under division 1373
(A)(1)(a) or (b) of this section; and1374

       (i) For which, within either the current or preceding 1375
calendar year, service, except for domestic service in a private 1376
home not covered under division (A)(1)(c) of this section, is or 1377
was performed with respect to which such employer is liable for 1378
any federal tax against which credit may be taken for 1379
contributions required to be paid into a state unemployment fund;1380

       (ii) Which, as a condition for approval of this chapter for 1381
full tax credit against the tax imposed by the "Federal 1382
Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to 3311, is 1383
required, pursuant to such act to be an employer under this 1384
chapter; or1385

       (iii) Who became an employer by election under division 1386
(A)(4) or (5) of this section and for the duration of such 1387
election; or1388

       (f) In the case of the state, its instrumentalities, its 1389
political subdivisions, and their instrumentalities, and Indian 1390
tribes, had in employment, as defined in divisions (B)(2)(a) and 1391
(B)(2)(l) of this section, at least one individual;1392

       (g) For the purposes of division (A)(1)(a) of this section, 1393
if any week includes both the thirty-first day of December and the 1394
first day of January, the days of that week before the first day 1395
of January shall be considered one calendar week and the days 1396
beginning the first day of January another week.1397

       (2) Each individual employed to perform or to assist in 1398
performing the work of any agent or employee of an employer is 1399
employed by such employer for all the purposes of this chapter, 1400
whether such individual was hired or paid directly by such 1401
employer or by such agent or employee, provided the employer had 1402
actual or constructive knowledge of the work. All individuals 1403
performing services for an employer of any person in this state 1404
who maintains two or more establishments within this state are 1405
employed by a single employer for the purposes of this chapter.1406

       (3) An employer subject to this chapter within any calendar 1407
year is subject to this chapter during the whole of such year and 1408
during the next succeeding calendar year.1409

       (4) An employer not otherwise subject to this chapter who 1410
files with the director of job and family services a written 1411
election to become an employer subject to this chapter for not 1412
less than two calendar years shall, with the written approval of 1413
such election by the director, become an employer subject to this 1414
chapter to the same extent as all other employers as of the date 1415
stated in such approval, and shall cease to be subject to this 1416
chapter as of the first day of January of any calendar year 1417
subsequent to such two calendar years only if at least thirty days 1418
prior to such first day of January the employer has filed with the 1419
director a written notice to that effect.1420

       (5) Any employer for whom services that do not constitute 1421
employment are performed may file with the director a written 1422
election that all such services performed by individuals in the 1423
employer's employ in one or more distinct establishments or places 1424
of business shall be deemed to constitute employment for all the 1425
purposes of this chapter, for not less than two calendar years. 1426
Upon written approval of the election by the director, such 1427
services shall be deemed to constitute employment subject to this 1428
chapter from and after the date stated in such approval. Such 1429
services shall cease to be employment subject to this chapter as 1430
of the first day of January of any calendar year subsequent to 1431
such two calendar years only if at least thirty days prior to such 1432
first day of January such employer has filed with the director a 1433
written notice to that effect.1434

       (B)(1) "Employment" means service performed by an individual 1435
for remuneration under any contract of hire, written or oral, 1436
express or implied, including service performed in interstate 1437
commerce and service performed by an officer of a corporation, 1438
without regard to whether such service is executive, managerial, 1439
or manual in nature, and without regard to whether such officer is 1440
a stockholder or a member of the board of directors of the 1441
corporation, unless it is shown to the satisfaction of the 1442
director that such individual has been and will continue to be 1443
free from direction or control over the performance of such 1444
service, both under a contract of service and in fact. The 1445
director shall adopt rules to define "direction or control."1446

       (2) "Employment" includes:1447

       (a) Service performed after December 31, 1977, by an 1448
individual in the employ of the state or any of its 1449
instrumentalities, or any political subdivision thereof or any of 1450
its instrumentalities or any instrumentality of more than one of 1451
the foregoing or any instrumentality of any of the foregoing and 1452
one or more other states or political subdivisions and without 1453
regard to divisions (A)(1)(a) and (b) of this section, provided 1454
that such service is excluded from employment as defined in the 1455
"Federal Unemployment Tax Act," 53 Stat. 183, 26 U.S.C.A. 3301, 1456
3306(c)(7) and is not excluded under division (B)(3) of this 1457
section; or the services of employees covered by voluntary 1458
election, as provided under divisions (A)(4) and (5) of this 1459
section;1460

       (b) Service performed after December 31, 1971, by an 1461
individual in the employ of a religious, charitable, educational, 1462
or other organization which is excluded from the term "employment" 1463
as defined in the "Federal Unemployment Tax Act," 84 Stat. 713, 26 1464
U.S.C.A. 3301 to 3311, solely by reason of section 26 U.S.C.A. 1465
3306(c)(8) of that act and is not excluded under division (B)(3) 1466
of this section;1467

       (c) Domestic service performed after December 31, 1977, for 1468
an employer, as provided in division (A)(1)(c) of this section;1469

       (d) Agricultural labor performed after December 31, 1977, for 1470
a farm operator or a crew leader, as provided in division 1471
(A)(1)(d) of this section;1472

       (e) Service not covered under division (B)(1) of this section 1473
which is performed after December 31, 1971:1474

       (i) As an agent-driver or commission-driver engaged in 1475
distributing meat products, vegetable products, fruit products, 1476
bakery products, beverages other than milk, laundry, or 1477
dry-cleaning services, for the individual's employer or principal;1478

       (ii) As a traveling or city salesperson, other than as an 1479
agent-driver or commission-driver, engaged on a full-time basis in 1480
the solicitation on behalf of and in the transmission to the 1481
salesperson's employer or principal except for sideline sales 1482
activities on behalf of some other person of orders from 1483
wholesalers, retailers, contractors, or operators of hotels, 1484
restaurants, or other similar establishments for merchandise for 1485
resale, or supplies for use in their business operations, provided 1486
that for the purposes of division (B)(2)(e)(ii) of this section, 1487
the services shall be deemed employment if the contract of service 1488
contemplates that substantially all of the services are to be 1489
performed personally by the individual and that the individual 1490
does not have a substantial investment in facilities used in 1491
connection with the performance of the services other than in 1492
facilities for transportation, and the services are not in the 1493
nature of a single transaction that is not a part of a continuing 1494
relationship with the person for whom the services are performed.1495

       (f) An individual's entire service performed within or both 1496
within and without the state if:1497

       (i) The service is localized in this state.1498

       (ii) The service is not localized in any state, but some of 1499
the service is performed in this state and either the base of 1500
operations, or if there is no base of operations then the place 1501
from which such service is directed or controlled, is in this 1502
state or the base of operations or place from which such service 1503
is directed or controlled is not in any state in which some part 1504
of the service is performed but the individual's residence is in 1505
this state.1506

       (g) Service not covered under division (B)(2)(f)(ii) of this 1507
section and performed entirely without this state, with respect to 1508
no part of which contributions are required and paid under an 1509
unemployment compensation law of any other state, the Virgin 1510
Islands, Canada, or of the United States, if the individual 1511
performing such service is a resident of this state and the 1512
director approves the election of the employer for whom such 1513
services are performed; or, if the individual is not a resident of 1514
this state but the place from which the service is directed or 1515
controlled is in this state, the entire services of such 1516
individual shall be deemed to be employment subject to this 1517
chapter, provided service is deemed to be localized within this 1518
state if the service is performed entirely within this state or if 1519
the service is performed both within and without this state but 1520
the service performed without this state is incidental to the 1521
individual's service within the state, for example, is temporary 1522
or transitory in nature or consists of isolated transactions;1523

       (h) Service of an individual who is a citizen of the United 1524
States, performed outside the United States except in Canada after 1525
December 31, 1971, or the Virgin Islands, after December 31, 1971, 1526
and before the first day of January of the year following that in 1527
which the United States secretary of labor approves the Virgin 1528
Islands law for the first time, in the employ of an American 1529
employer, other than service which is "employment" under divisions 1530
(B)(2)(f) and (g) of this section or similar provisions of another 1531
state's law, if:1532

       (i) The employer's principal place of business in the United 1533
States is located in this state;1534

       (ii) The employer has no place of business in the United 1535
States, but the employer is an individual who is a resident of 1536
this state; or the employer is a corporation which is organized 1537
under the laws of this state, or the employer is a partnership or 1538
a trust and the number of partners or trustees who are residents 1539
of this state is greater than the number who are residents of any 1540
other state; or1541

       (iii) None of the criteria of divisions (B)(2)(f)(i) and (ii) 1542
of this section is met but the employer has elected coverage in 1543
this state or the employer having failed to elect coverage in any 1544
state, the individual has filed a claim for benefits, based on 1545
such service, under this chapter.1546

       (i) For the purposes of division (B)(2)(h) of this section, 1547
the term "American employer" means an employer who is an 1548
individual who is a resident of the United States; or a 1549
partnership, if two-thirds or more of the partners are residents 1550
of the United States; or a trust, if all of the trustees are 1551
residents of the United States; or a corporation organized under 1552
the laws of the United States or of any state, provided the term 1553
"United States" includes the states, the District of Columbia, the 1554
Commonwealth of Puerto Rico, and the Virgin Islands.1555

       (j) Notwithstanding any other provisions of divisions (B)(1) 1556
and (2) of this section, service, except for domestic service in a 1557
private home not covered under division (A)(1)(c) of this section, 1558
with respect to which a tax is required to be paid under any 1559
federal law imposing a tax against which credit may be taken for 1560
contributions required to be paid into a state unemployment fund, 1561
or service, except for domestic service in a private home not 1562
covered under division (A)(1)(c) of this section, which, as a 1563
condition for full tax credit against the tax imposed by the 1564
"Federal Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to 1565
3311, is required to be covered under this chapter.1566

       (k) Construction services performed by any individual under a 1567
construction contract, as defined in section 4141.39 of the 1568
Revised Code, if the director determines that the employer for 1569
whom services are performed has the right to direct or control the 1570
performance of the services and that the individuals who perform 1571
the services receive remuneration for the services performed. The 1572
director shall presume that the employer for whom services are 1573
performed has the right to direct or control the performance of 1574
the services if ten or more of the following criteria apply:1575

       (i) The employer directs or controls the manner or method by 1576
which instructions are given to the individual performing 1577
services;1578

       (ii) The employer requires particular training for the 1579
individual performing services;1580

       (iii) Services performed by the individual are integrated 1581
into the regular functioning of the employer;1582

       (iv) The employer requires that services be provided by a 1583
particular individual;1584

       (v) The employer hires, supervises, or pays the wages of the 1585
individual performing services;1586

       (vi) A continuing relationship between the employer and the 1587
individual performing services exists which contemplates 1588
continuing or recurring work, even if not full-time work;1589

       (vii) The employer requires the individual to perform 1590
services during established hours;1591

       (viii) The employer requires that the individual performing 1592
services be devoted on a full-time basis to the business of the 1593
employer;1594

       (ix) The employer requires the individual to perform services 1595
on the employer's premises;1596

       (x) The employer requires the individual performing services 1597
to follow the order of work established by the employer;1598

       (xi) The employer requires the individual performing services 1599
to make oral or written reports of progress;1600

       (xii) The employer makes payment to the individual for 1601
services on a regular basis, such as hourly, weekly, or monthly;1602

       (xiii) The employer pays expenses for the individual 1603
performing services;1604

       (xiv) The employer furnishes the tools and materials for use 1605
by the individual to perform services;1606

       (xv) The individual performing services has not invested in 1607
the facilities used to perform services;1608

       (xvi) The individual performing services does not realize a 1609
profit or suffer a loss as a result of the performance of the 1610
services;1611

       (xvii) The individual performing services is not performing 1612
services for more than two employers simultaneously;1613

       (xviii) The individual performing services does not make the 1614
services available to the general public;1615

       (xix) The employer has a right to discharge the individual 1616
performing services;1617

       (xx) The individual performing services has the right to end 1618
the individual's relationship with the employer without incurring 1619
liability pursuant to an employment contract or agreement.1620

       (l) Service performed by an individual in the employ of an 1621
Indian tribe as defined by section 4(e) of the "Indian 1622
Self-Determination and Education Assistance Act," 88 Stat. 2204 1623
(1975), 25 U.S.C.A. 450b(e), including any subdivision, 1624
subsidiary, or business enterprise wholly owned by an Indian tribe 1625
provided that the service is excluded from employment as defined 1626
in the "Federal Unemployment Tax Act," 53 Stat. 183 (1939), 26 1627
U.S.C.A. 3301 and 3306(c)(7) and is not excluded under division 1628
(B)(3) of this section.1629

       (3) "Employment" does not include the following services if 1630
they are found not subject to the "Federal Unemployment Tax Act," 1631
84 Stat. 713 (1970), 26 U.S.C.A. 3301 to 3311, and if the services 1632
are not required to be included under division (B)(2)(j) of this 1633
section:1634

       (a) Service performed after December 31, 1977, in 1635
agricultural labor, except as provided in division (A)(1)(d) of 1636
this section;1637

       (b) Domestic service performed after December 31, 1977, in a 1638
private home, local college club, or local chapter of a college 1639
fraternity or sorority except as provided in division (A)(1)(c) of 1640
this section;1641

       (c) Service performed after December 31, 1977, for this state 1642
or a political subdivision as described in division (B)(2)(a) of 1643
this section when performed:1644

       (i) As a publicly elected official;1645

       (ii) As a member of a legislative body, or a member of the 1646
judiciary;1647

       (iii) As a military member of the Ohio national guard;1648

       (iv) As an employee, not in the classified service as defined 1649
in section 124.11 of the Revised Code, serving on a temporary 1650
basis in case of fire, storm, snow, earthquake, flood, or similar 1651
emergency;1652

       (v) In a position which, under or pursuant to law, is 1653
designated as a major nontenured policymaking or advisory 1654
position, not in the classified service of the state, or a 1655
policymaking or advisory position the performance of the duties of 1656
which ordinarily does not require more than eight hours per week.1657

       (d) In the employ of any governmental unit or instrumentality 1658
of the United States;1659

       (e) Service performed after December 31, 1971:1660

       (i) Service in the employ of an educational institution or 1661
institution of higher education, including those operated by the 1662
state or a political subdivision, if such service is performed by 1663
a student who is enrolled and is regularly attending classes at 1664
the educational institution or institution of higher education; or1665

       (ii) By an individual who is enrolled at a nonprofit or 1666
public educational institution which normally maintains a regular 1667
faculty and curriculum and normally has a regularly organized body 1668
of students in attendance at the place where its educational 1669
activities are carried on as a student in a full-time program, 1670
taken for credit at the institution, which combines academic 1671
instruction with work experience, if the service is an integral 1672
part of the program, and the institution has so certified to the 1673
employer, provided that this subdivision shall not apply to 1674
service performed in a program established for or on behalf of an 1675
employer or group of employers.1676

       (f) Service performed by an individual in the employ of the 1677
individual's son, daughter, or spouse and service performed by a 1678
child under the age of eighteen in the employ of the child's 1679
father or mother;1680

       (g) Service performed for one or more principals by an 1681
individual who is compensated on a commission basis, who in the 1682
performance of the work is master of the individual's own time and 1683
efforts, and whose remuneration is wholly dependent on the amount 1684
of effort the individual chooses to expend, and which service is 1685
not subject to the "Federal Unemployment Tax Act," 53 Stat. 183 1686
(1939), 26 U.S.C.A. 3301 to 3311. Service performed after December 1687
31, 1971:1688

       (i) By an individual for an employer as an insurance agent or 1689
as an insurance solicitor, if all this service is performed for 1690
remuneration solely by way of commission;1691

       (ii) As a home worker performing work, according to 1692
specifications furnished by the employer for whom the services are 1693
performed, on materials or goods furnished by such employer which 1694
are required to be returned to the employer or to a person 1695
designated for that purpose.1696

       (h) Service performed after December 31, 1971:1697

       (i) In the employ of a church or convention or association of 1698
churches, or in an organization which is operated primarily for 1699
religious purposes and which is operated, supervised, controlled, 1700
or principally supported by a church or convention or association 1701
of churches;1702

       (ii) By a duly ordained, commissioned, or licensed minister 1703
of a church in the exercise of the individual's ministry or by a 1704
member of a religious order in the exercise of duties required by 1705
such order; or1706

       (iii) In a facility conducted for the purpose of carrying out 1707
a program of rehabilitation for individuals whose earning capacity 1708
is impaired by age or physical or mental deficiency or injury, or 1709
providing remunerative work for individuals who because of their 1710
impaired physical or mental capacity cannot be readily absorbed in 1711
the competitive labor market, by an individual receiving such 1712
rehabilitation or remunerative work.1713

       (i) Service performed after June 30, 1939, with respect to 1714
which unemployment compensation is payable under the "Railroad 1715
Unemployment Insurance Act," 52 Stat. 1094 (1938), 45 U.S.C. 351;1716

       (j) Service performed by an individual in the employ of any 1717
organization exempt from income tax under section 501 of the 1718
"Internal Revenue Code of 1954," if the remuneration for such 1719
service does not exceed fifty dollars in any calendar quarter, or 1720
if such service is in connection with the collection of dues or 1721
premiums for a fraternal beneficial society, order, or association 1722
and is performed away from the home office or is ritualistic 1723
service in connection with any such society, order, or 1724
association;1725

       (k) Casual labor not in the course of an employer's trade or 1726
business; incidental service performed by an officer, appraiser, 1727
or member of a finance committee of a bank, building and loan 1728
association, savings and loan association, or savings association 1729
when the remuneration for such incidental service exclusive of the 1730
amount paid or allotted for directors' fees does not exceed sixty 1731
dollars per calendar quarter is casual labor;1732

       (l) Service performed in the employ of a voluntary employees' 1733
beneficial association providing for the payment of life, 1734
sickness, accident, or other benefits to the members of such 1735
association or their dependents or their designated beneficiaries, 1736
if admission to a membership in such association is limited to 1737
individuals who are officers or employees of a municipal or public 1738
corporation, of a political subdivision of the state, or of the 1739
United States and no part of the net earnings of such association 1740
inures, other than through such payments, to the benefit of any 1741
private shareholder or individual;1742

       (m) Service performed by an individual in the employ of a 1743
foreign government, including service as a consular or other 1744
officer or employee or of a nondiplomatic representative;1745

       (n) Service performed in the employ of an instrumentality 1746
wholly owned by a foreign government if the service is of a 1747
character similar to that performed in foreign countries by 1748
employees of the United States or of an instrumentality thereof 1749
and if the director finds that the secretary of state of the 1750
United States has certified to the secretary of the treasury of 1751
the United States that the foreign government, with respect to 1752
whose instrumentality exemption is claimed, grants an equivalent 1753
exemption with respect to similar service performed in the foreign 1754
country by employees of the United States and of instrumentalities 1755
thereof;1756

       (o) Service with respect to which unemployment compensation 1757
is payable under an unemployment compensation system established 1758
by an act of congress;1759

       (p) Service performed as a student nurse in the employ of a 1760
hospital or a nurses' training school by an individual who is 1761
enrolled and is regularly attending classes in a nurses' training 1762
school chartered or approved pursuant to state law, and service 1763
performed as an intern in the employ of a hospital by an 1764
individual who has completed a four years' course in a medical 1765
school chartered or approved pursuant to state law;1766

       (q) Service performed by an individual under the age of 1767
eighteen in the delivery or distribution of newspapers or shopping 1768
news, not including delivery or distribution to any point for 1769
subsequent delivery or distribution;1770

       (r) Service performed in the employ of the United States or 1771
an instrumentality of the United States immune under the 1772
Constitution of the United States from the contributions imposed 1773
by this chapter, except that to the extent that congress permits 1774
states to require any instrumentalities of the United States to 1775
make payments into an unemployment fund under a state unemployment 1776
compensation act, this chapter shall be applicable to such 1777
instrumentalities and to services performed for such 1778
instrumentalities in the same manner, to the same extent, and on 1779
the same terms as to all other employers, individuals, and 1780
services, provided that if this state is not certified for any 1781
year by the proper agency of the United States under section 3304 1782
of the "Internal Revenue Code of 1954," the payments required of 1783
such instrumentalities with respect to such year shall be refunded 1784
by the director from the fund in the same manner and within the 1785
same period as is provided in division (E) of section 4141.09 of 1786
the Revised Code with respect to contributions erroneously 1787
collected;1788

       (s) Service performed by an individual as a member of a band 1789
or orchestra, provided such service does not represent the 1790
principal occupation of such individual, and which service is not 1791
subject to or required to be covered for full tax credit against 1792
the tax imposed by the "Federal Unemployment Tax Act," 53 Stat. 1793
183 (1939), 26 U.S.C.A. 3301 to 3311. 1794

       (t) Service performed in the employ of a day camp whose 1795
camping season does not exceed twelve weeks in any calendar year, 1796
and which service is not subject to the "Federal Unemployment Tax 1797
Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311. Service 1798
performed after December 31, 1971:1799

       (i) In the employ of a hospital, if the service is performed 1800
by a patient of the hospital, as defined in division (W) of this 1801
section;1802

       (ii) For a prison or other correctional institution by an 1803
inmate of the prison or correctional institution;1804

       (iii) Service performed after December 31, 1977, by an inmate 1805
of a custodial institution operated by the state, a political 1806
subdivision, or a nonprofit organization.1807

       (u) Service that is performed by a nonresident alien 1808
individual for the period the individual temporarily is present in 1809
the United States as a nonimmigrant under division (F), (J), (M), 1810
or (Q) of section 101(a)(15) of the "Immigration and Nationality 1811
Act," 66 Stat. 163, 8 U.S.C.A. 1101, as amended, that is excluded 1812
under section 3306(c)(19) of the "Federal Unemployment Tax Act," 1813
53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311.1814

       (v) Notwithstanding any other provisions of division (B)(3) 1815
of this section, services that are excluded under divisions 1816
(B)(3)(g), (j), (k), and (l) of this section shall not be excluded 1817
from employment when performed for a nonprofit organization, as 1818
defined in division (X) of this section, or for this state or its 1819
instrumentalities, or for a political subdivision or its 1820
instrumentalities or for Indian tribes;1821

       (w) Service that is performed by an individual working as an 1822
election official or election worker if the amount of remuneration 1823
received by the individual during the calendar year for services 1824
as an election official or election worker is less than one 1825
thousand dollars;1826

       (x) Service performed for an elementary or secondary school 1827
that is operated primarily for religious purposes, that is 1828
described in subsection 501(c)(3) and exempt from federal income 1829
taxation under subsection 501(a) of the Internal Revenue Code, 26 1830
U.S.C.A. 501;1831

       (y) Service performed by a person committed to a penal 1832
institution.1833

       (z) Service performed for an Indian tribe as described in 1834
division (B)(2)(l) of this section when performed in any of the 1835
following manners:1836

       (i) As a publicly elected official;1837

       (ii) As a member of an Indian tribal council;1838

       (iii) As a member of a legislative or judiciary body;1839

       (iv) In a position which, pursuant to Indian tribal law, is 1840
designated as a major nontenured policymaking or advisory 1841
position, or a policymaking or advisory position where the 1842
performance of the duties ordinarily does not require more than 1843
eight hours of time per week;1844

       (v) As an employee serving on a temporary basis in the case 1845
of a fire, storm, snow, earthquake, flood, or similar emergency.1846

       (aa) Service performed after December 31, 1971, for a 1847
nonprofit organization, this state or its instrumentalities, a 1848
political subdivision or its instrumentalities, or an Indian tribe 1849
as part of an unemployment work-relief or work-training program 1850
assisted or financed in whole or in part by any federal agency or 1851
an agency of a state or political subdivision, thereof, by an 1852
individual receiving the work-relief or work-training.1853

       (bb) Participation in a learn to earn program as defined in 1854
section 4141.293 of the Revised Code.1855

       (4) If the services performed during one half or more of any 1856
pay period by an employee for the person employing that employee 1857
constitute employment, all the services of such employee for such 1858
period shall be deemed to be employment; but if the services 1859
performed during more than one half of any such pay period by an 1860
employee for the person employing that employee do not constitute 1861
employment, then none of the services of such employee for such 1862
period shall be deemed to be employment. As used in division 1863
(B)(4) of this section, "pay period" means a period, of not more 1864
than thirty-one consecutive days, for which payment of 1865
remuneration is ordinarily made to the employee by the person 1866
employing that employee. Division (B)(4) of this section does not 1867
apply to services performed in a pay period by an employee for the 1868
person employing that employee, if any of such service is excepted 1869
by division (B)(3)(o) of this section.1870

       (C) "Benefits" means money payments payable to an individual 1871
who has established benefit rights, as provided in this chapter, 1872
for loss of remuneration due to the individual's unemployment.1873

       (D) "Benefit rights" means the weekly benefit amount and the 1874
maximum benefit amount that may become payable to an individual 1875
within the individual's benefit year as determined by the 1876
director.1877

       (E) "Claim for benefits" means a claim for waiting period or 1878
benefits for a designated week.1879

       (F) "Additional claim" means the first claim for benefits 1880
filed following any separation from employment during a benefit 1881
year; "continued claim" means any claim other than the first claim 1882
for benefits and other than an additional claim.1883

       (G)(1) "Wages" means remuneration paid to an employee by each 1884
of the employee's employers with respect to employment; except 1885
that wages shall not include that part of remuneration paid during 1886
any calendar year to an individual by an employer or such 1887
employer's predecessor in interest in the same business or 1888
enterprise, which in any calendar year is in excess of eight 1889
thousand two hundred fifty dollars on and after January 1, 1992; 1890
eight thousand five hundred dollars on and after January 1, 1993; 1891
eight thousand seven hundred fifty dollars on and after January 1, 1892
1994; and nine thousand dollars on and after January 1, 1995. 1893
Remuneration in excess of such amounts shall be deemed wages 1894
subject to contribution to the same extent that such remuneration 1895
is defined as wages under the "Federal Unemployment Tax Act," 84 1896
Stat. 714 (1970), 26 U.S.C.A. 3301 to 3311, as amended. The 1897
remuneration paid an employee by an employer with respect to 1898
employment in another state, upon which contributions were 1899
required and paid by such employer under the unemployment 1900
compensation act of such other state, shall be included as a part 1901
of remuneration in computing the amount specified in this 1902
division.1903

       (2) Notwithstanding division (G)(1) of this section, if, as 1904
of the computation date for any calendar year, the director 1905
determines that the level of the unemployment compensation fund is 1906
sixty per cent or more below the minimum safe level as defined in 1907
section 4141.25 of the Revised Code, then, effective the first day 1908
of January of the following calendar year, wages subject to this 1909
chapter shall not include that part of remuneration paid during 1910
any calendar year to an individual by an employer or such 1911
employer's predecessor in interest in the same business or 1912
enterprise which is in excess of nine thousand dollars. The 1913
increase in the dollar amount of wages subject to this chapter 1914
under this division shall remain in effect from the date of the 1915
director's determination pursuant to division (G)(2) of this 1916
section and thereafter notwithstanding the fact that the level in 1917
the fund may subsequently become less than sixty per cent below 1918
the minimum safe level.1919

       (H)(1) "Remuneration" means all compensation for personal 1920
services, including commissions and bonuses and the cash value of 1921
all compensation in any medium other than cash, except that in the 1922
case of agricultural or domestic service, "remuneration" includes 1923
only cash remuneration. Gratuities customarily received by an 1924
individual in the course of the individual's employment from 1925
persons other than the individual's employer and which are 1926
accounted for by such individual to the individual's employer are 1927
taxable wages.1928

       The reasonable cash value of compensation paid in any medium 1929
other than cash shall be estimated and determined in accordance 1930
with rules prescribed by the director, provided that 1931
"remuneration" does not include:1932

       (a) Payments as provided in divisions (b)(2) to (b)(16) of 1933
section 3306 of the "Federal Unemployment Tax Act," 84 Stat. 713, 1934
26 U.S.C.A. 3301 to 3311, as amended;1935

       (b) The payment by an employer, without deduction from the 1936
remuneration of the individual in the employer's employ, of the 1937
tax imposed upon an individual in the employer's employ under 1938
section 3101 of the "Internal Revenue Code of 1954," with respect 1939
to services performed after October 1, 1941.1940

       (2) "Cash remuneration" means all remuneration paid in cash, 1941
including commissions and bonuses, but not including the cash 1942
value of all compensation in any medium other than cash.1943

       (I) "Interested party" means the director and any party to 1944
whom notice of a determination of an application for benefit 1945
rights or a claim for benefits is required to be given under 1946
section 4141.28 of the Revised Code.1947

       (J) "Annual payroll" means the total amount of wages subject 1948
to contributions during a twelve-month period ending with the last 1949
day of the second calendar quarter of any calendar year.1950

       (K) "Average annual payroll" means the average of the last 1951
three annual payrolls of an employer, provided that if, as of any 1952
computation date, the employer has had less than three annual 1953
payrolls in such three-year period, such average shall be based on 1954
the annual payrolls which the employer has had as of such date.1955

       (L)(1) "Contributions" means the money payments to the state 1956
unemployment compensation fund required of employers by section 1957
4141.25 of the Revised Code and of the state and any of its 1958
political subdivisions electing to pay contributions under section 1959
4141.242 of the Revised Code. Employers paying contributions shall 1960
be described as "contributory employers."1961

       (2) "Payments in lieu of contributions" means the money 1962
payments to the state unemployment compensation fund required of 1963
reimbursing employers under sections 4141.241 and 4141.242 of the 1964
Revised Code.1965

       (M) An individual is "totally unemployed" in any week during 1966
which the individual performs no services and with respect to such 1967
week no remuneration is payable to the individual.1968

       (N) An individual is "partially unemployed" in any week if, 1969
due to involuntary loss of work, the total remuneration payable to 1970
the individual for such week is less than the individual's weekly 1971
benefit amount.1972

       (O) "Week" means the calendar week ending at midnight 1973
Saturday unless an equivalent week of seven consecutive calendar 1974
days is prescribed by the director.1975

       (1) "Qualifying week" means any calendar week in an 1976
individual's base period with respect to which the individual 1977
earns or is paid remuneration in employment subject to this 1978
chapter. A calendar week with respect to which an individual earns 1979
remuneration but for which payment was not made within the base 1980
period, when necessary to qualify for benefit rights, may be 1981
considered to be a qualifying week. The number of qualifying weeks 1982
which may be established in a calendar quarter shall not exceed 1983
the number of calendar weeks in the quarter.1984

       (2) "Average weekly wage" means the amount obtained by 1985
dividing an individual's total remuneration for all qualifying 1986
weeks during the base period by the number of such qualifying 1987
weeks, provided that if the computation results in an amount that 1988
is not a multiple of one dollar, such amount shall be rounded to 1989
the next lower multiple of one dollar.1990

       (P) "Weekly benefit amount" means the amount of benefits an 1991
individual would be entitled to receive for one week of total 1992
unemployment.1993

       (Q)(1) "Base period" means the first four of the last five 1994
completed calendar quarters immediately preceding the first day of 1995
an individual's benefit year, except as provided in division 1996
(Q)(2) of this section.1997

       (2) If an individual does not have sufficient qualifying 1998
weeks and wages in the base period to qualify for benefit rights, 1999
the individual's base period shall be the four most recently 2000
completed calendar quarters preceding the first day of the 2001
individual's benefit year. Such base period shall be known as the 2002
"alternate base period." If information as to weeks and wages for 2003
the most recent quarter of the alternate base period is not 2004
available to the director from the regular quarterly reports of 2005
wage information, which are systematically accessible, the 2006
director may, consistent with the provisions of section 4141.28 of 2007
the Revised Code, base the determination of eligibility for 2008
benefits on the affidavit of the claimant with respect to weeks 2009
and wages for that calendar quarter. The claimant shall furnish 2010
payroll documentation, where available, in support of the 2011
affidavit. The determination based upon the alternate base period 2012
as it relates to the claimant's benefit rights, shall be amended 2013
when the quarterly report of wage information from the employer is 2014
timely received and that information causes a change in the 2015
determination. As provided in division (B) of section 4141.28 of 2016
the Revised Code, any benefits paid and charged to an employer's 2017
account, based upon a claimant's affidavit, shall be adjusted 2018
effective as of the beginning of the claimant's benefit year. No 2019
calendar quarter in a base period or alternate base period shall 2020
be used to establish a subsequent benefit year.2021

       (3) The "base period" of a combined wage claim, as described 2022
in division (H) of section 4141.43 of the Revised Code, shall be 2023
the base period prescribed by the law of the state in which the 2024
claim is allowed.2025

       (4) For purposes of determining the weeks that comprise a 2026
completed calendar quarter under this division, only those weeks 2027
ending at midnight Saturday within the calendar quarter shall be 2028
utilized.2029

       (R)(1) "Benefit year" with respect to an individual means the 2030
fifty-two week period beginning with the first day of that week 2031
with respect to which the individual first files a valid 2032
application for determination of benefit rights, and thereafter 2033
the fifty-two week period beginning with the first day of that 2034
week with respect to which the individual next files a valid 2035
application for determination of benefit rights after the 2036
termination of the individual's last preceding benefit year, 2037
except that the application shall not be considered valid unless 2038
the individual has had employment in six weeks that is subject to 2039
this chapter or the unemployment compensation act of another 2040
state, or the United States, and has, since the beginning of the 2041
individual's previous benefit year, in the employment earned three 2042
times the average weekly wage determined for the previous benefit 2043
year. The "benefit year" of a combined wage claim, as described in 2044
division (H) of section 4141.43 of the Revised Code, shall be the 2045
benefit year prescribed by the law of the state in which the claim 2046
is allowed. Any application for determination of benefit rights 2047
made in accordance with section 4141.28 of the Revised Code is 2048
valid if the individual filing such application is unemployed, has 2049
been employed by an employer or employers subject to this chapter 2050
in at least twenty qualifying weeks within the individual's base 2051
period, and has earned or been paid remuneration at an average 2052
weekly wage of not less than twenty-seven and one-half per cent of 2053
the statewide average weekly wage for such weeks. For purposes of 2054
determining whether an individual has had sufficient employment 2055
since the beginning of the individual's previous benefit year to 2056
file a valid application, "employment" means the performance of 2057
services for which remuneration is payable.2058

       (2) Effective for benefit years beginning on and after 2059
December 26, 2004, any application for determination of benefit 2060
rights made in accordance with section 4141.28 of the Revised Code 2061
is valid if the individual satisfies the criteria described in 2062
division (R)(1) of this section, and if the reason for the 2063
individual's separation from employment is not disqualifying 2064
pursuant to division (D)(2) of section 4141.29 or section 4141.291 2065
of the Revised Code. A disqualification imposed pursuant to 2066
division (D)(2) of section 4141.29 or section 4141.291 of the 2067
Revised Code must be removed as provided in those sections as a 2068
requirement of establishing a valid application for benefit years 2069
beginning on and after December 26, 2004.2070

       (3) The statewide average weekly wage shall be calculated by 2071
the director once a year based on the twelve-month period ending 2072
the thirtieth day of June, as set forth in division (B)(3) of 2073
section 4141.30 of the Revised Code, rounded down to the nearest 2074
dollar. Increases or decreases in the amount of remuneration 2075
required to have been earned or paid in order for individuals to 2076
have filed valid applications shall become effective on Sunday of 2077
the calendar week in which the first day of January occurs that 2078
follows the twelve-month period ending the thirtieth day of June 2079
upon which the calculation of the statewide average weekly wage 2080
was based.2081

       (4) As used in this division, an individual is "unemployed" 2082
if, with respect to the calendar week in which such application is 2083
filed, the individual is "partially unemployed" or "totally 2084
unemployed" as defined in this section or if, prior to filing the 2085
application, the individual was separated from the individual's 2086
most recent work for any reason which terminated the individual's 2087
employee-employer relationship, or was laid off indefinitely or 2088
for a definite period of seven or more days.2089

       (S) "Calendar quarter" means the period of three consecutive 2090
calendar months ending on the thirty-first day of March, the 2091
thirtieth day of June, the thirtieth day of September, and the 2092
thirty-first day of December, or the equivalent thereof as the 2093
director prescribes by rule.2094

       (T) "Computation date" means the first day of the third 2095
calendar quarter of any calendar year.2096

       (U) "Contribution period" means the calendar year beginning 2097
on the first day of January of any year.2098

       (V) "Agricultural labor," for the purpose of this division, 2099
means any service performed prior to January 1, 1972, which was 2100
agricultural labor as defined in this division prior to that date, 2101
and service performed after December 31, 1971:2102

       (1) On a farm, in the employ of any person, in connection 2103
with cultivating the soil, or in connection with raising or 2104
harvesting any agricultural or horticultural commodity, including 2105
the raising, shearing, feeding, caring for, training, and 2106
management of livestock, bees, poultry, and fur-bearing animals 2107
and wildlife;2108

       (2) In the employ of the owner or tenant or other operator of 2109
a farm in connection with the operation, management, conservation, 2110
improvement, or maintenance of such farm and its tools and 2111
equipment, or in salvaging timber or clearing land of brush and 2112
other debris left by hurricane, if the major part of such service 2113
is performed on a farm;2114

       (3) In connection with the production or harvesting of any 2115
commodity defined as an agricultural commodity in section 15 (g) 2116
of the "Agricultural Marketing Act," 46 Stat. 1550 (1931), 12 2117
U.S.C. 1141j, as amended, or in connection with the ginning of 2118
cotton, or in connection with the operation or maintenance of 2119
ditches, canals, reservoirs, or waterways, not owned or operated 2120
for profit, used exclusively for supplying and storing water for 2121
farming purposes;2122

       (4) In the employ of the operator of a farm in handling, 2123
planting, drying, packing, packaging, processing, freezing, 2124
grading, storing, or delivering to storage or to market or to a 2125
carrier for transportation to market, in its unmanufactured state, 2126
any agricultural or horticultural commodity, but only if the 2127
operator produced more than one half of the commodity with respect 2128
to which such service is performed;2129

       (5) In the employ of a group of operators of farms, or a 2130
cooperative organization of which the operators are members, in 2131
the performance of service described in division (V)(4) of this 2132
section, but only if the operators produced more than one-half of 2133
the commodity with respect to which the service is performed;2134

       (6) Divisions (V)(4) and (5) of this section shall not be 2135
deemed to be applicable with respect to service performed:2136

       (a) In connection with commercial canning or commercial 2137
freezing or in connection with any agricultural or horticultural 2138
commodity after its delivery to a terminal market for distribution 2139
for consumption; or2140

       (b) On a farm operated for profit if the service is not in 2141
the course of the employer's trade or business.2142

       As used in division (V) of this section, "farm" includes 2143
stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, 2144
plantations, ranches, nurseries, ranges, greenhouses, or other 2145
similar structures used primarily for the raising of agricultural 2146
or horticultural commodities and orchards.2147

       (W) "Hospital" means an institution which has been registered 2148
or licensed by the Ohio department of health as a hospital.2149

       (X) "Nonprofit organization" means an organization, or group 2150
of organizations, described in section 501(c)(3) of the "Internal 2151
Revenue Code of 1954," and exempt from income tax under section 2152
501(a) of that code.2153

       (Y) "Institution of higher education" means a public or 2154
nonprofit educational institution, including an educational 2155
institution operated by an Indian tribe, which:2156

       (1) Admits as regular students only individuals having a 2157
certificate of graduation from a high school, or the recognized 2158
equivalent;2159

       (2) Is legally authorized in this state or by the Indian 2160
tribe to provide a program of education beyond high school; and2161

       (3) Provides an educational program for which it awards a 2162
bachelor's or higher degree, or provides a program which is 2163
acceptable for full credit toward such a degree, a program of 2164
post-graduate or post-doctoral studies, or a program of training 2165
to prepare students for gainful employment in a recognized 2166
occupation.2167

       For the purposes of this division, all colleges and 2168
universities in this state are institutions of higher education.2169

       (Z) For the purposes of this chapter, "states" includes the 2170
District of Columbia, the Commonwealth of Puerto Rico, and the 2171
Virgin Islands.2172

       (AA) "Alien" means, for the purposes of division (A)(1)(d) of 2173
this section, an individual who is an alien admitted to the United 2174
States to perform service in agricultural labor pursuant to 2175
sections 214 (c) and 101 (a)(15)(H) of the "Immigration and 2176
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101.2177

       (BB)(1) "Crew leader" means an individual who furnishes 2178
individuals to perform agricultural labor for any other employer 2179
or farm operator, and:2180

       (a) Pays, either on the individual's own behalf or on behalf 2181
of the other employer or farm operator, the individuals so 2182
furnished by the individual for the service in agricultural labor 2183
performed by them;2184

       (b) Has not entered into a written agreement with the other 2185
employer or farm operator under which the agricultural worker is 2186
designated as in the employ of the other employer or farm 2187
operator.2188

       (2) For the purposes of this chapter, any individual who is a 2189
member of a crew furnished by a crew leader to perform service in 2190
agricultural labor for any other employer or farm operator shall 2191
be treated as an employee of the crew leader if:2192

       (a) The crew leader holds a valid certificate of registration 2193
under the "Farm Labor Contractor Registration Act of 1963," 90 2194
Stat. 2668, 7 U.S.C. 2041; or2195

       (b) Substantially all the members of the crew operate or 2196
maintain tractors, mechanized harvesting or crop-dusting 2197
equipment, or any other mechanized equipment, which is provided by 2198
the crew leader; and2199

       (c) If the individual is not in the employment of the other 2200
employer or farm operator within the meaning of division (B)(1) of 2201
this section.2202

       (3) For the purposes of this division, any individual who is 2203
furnished by a crew leader to perform service in agricultural 2204
labor for any other employer or farm operator and who is not 2205
treated as in the employment of the crew leader under division 2206
(BB)(2) of this section shall be treated as the employee of the 2207
other employer or farm operator and not of the crew leader. The 2208
other employer or farm operator shall be treated as having paid 2209
cash remuneration to the individual in an amount equal to the 2210
amount of cash remuneration paid to the individual by the crew 2211
leader, either on the crew leader's own behalf or on behalf of the 2212
other employer or farm operator, for the service in agricultural 2213
labor performed for the other employer or farm operator.2214

       (CC) "Educational institution" means an institution other 2215
than an institution of higher education as defined in division (Y) 2216
of this section, including an educational institution operated by 2217
an Indian tribe, which:2218

       (1) Offers participants, trainees, or students an organized 2219
course of study or training designed to transfer to them 2220
knowledge, skills, information, doctrines, attitudes, or abilities 2221
from, by, or under the guidance of an instructor or teacher; and2222

       (2) Is approved, chartered, or issued a permit to operate as 2223
a school by the state board of education, other government agency, 2224
or Indian tribe that is authorized within the state to approve, 2225
charter, or issue a permit for the operation of a school.2226

       For the purposes of this division, the courses of study or 2227
training which the institution offers may be academic, technical, 2228
trade, or preparation for gainful employment in a recognized 2229
occupation.2230

       (DD) "Cost savings day" means any unpaid day off from work in 2231
which employees continue to accrue employee benefits which have a 2232
determinable value including, but not limited to, vacation, 2233
pension contribution, sick time, and life and health insurance.2234

       (EE) "Affected unit" means a definable group of two or more 2235
employees, including a department or shift, designated by an 2236
employer to participate in a short-time compensation plan.2237

       (FF) "Fringe benefit" means health insurance or a defined 2238
benefit plan or defined contribution plan as those terms are 2239
defined in the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 2240
U.S.C. 414, as amended, which is an incident to employment in 2241
addition to the cash remuneration earned.2242

       (GG) "Normal weekly hours of work" means the number of hours 2243
in a week that an employee normally works for an employer, not to 2244
exceed forty hours and not including hours of overtime work.2245

       (HH) "Participating employee" means an employee who works a 2246
reduced number of hours under an approved short-time compensation 2247
plan.2248

       (II) "Short-time compensation benefit" means an unemployment 2249
compensation benefit that is payable to an employee participating 2250
in a short-time compensation plan.2251

       (JJ) "Short-time compensation plan" means a plan submitted by 2252
an employer, for approval by the director, under which an employer 2253
reduces the normal weekly hours of work of the employees who are 2254
members of an affected unit in lieu of laying off those employees.2255

       (KK) "Unemployment compensation benefit" means the benefits 2256
payable under this chapter, other than short-time compensation 2257
benefits, and includes any amount payable pursuant to an agreement 2258
under federal law providing for compensation, assistance, or 2259
allowances with respect to unemployment.2260

       Sec. 4141.09.  (A) There is hereby created an unemployment 2261
compensation fund to be administered by the state without 2262
liability on the part of the state beyond the amounts paid into 2263
the fund and earned by the fund. The unemployment compensation 2264
fund shall consist of all contributions, payments in lieu of 2265
contributions described in sections 4141.241 and 4141.242 of the 2266
Revised Code, reimbursements of the federal share of extended 2267
benefits described in section 4141.301 of the Revised Code, 2268
collected under sections 4141.01 to 4141.464141.57 of the Revised 2269
Code, together with all interest earned upon any moneys deposited 2270
with the secretary of the treasury of the United States to the 2271
credit of the account of this state in the unemployment trust fund 2272
established and maintained pursuant to section 904 of the "Social 2273
Security Act," any property or securities acquired through the use 2274
of moneys belonging to the fund, and all earnings of such property 2275
or securities. The unemployment compensation fund shall be used to 2276
pay benefits, short-time compensation benefits, and refunds as 2277
provided by such sections and for no other purpose.2278

       (B) The treasurer of state shall be the custodian of the 2279
unemployment compensation fund and shall administer such fund in 2280
accordance with the directions of the director of job and family 2281
services. All disbursements therefrom shall be paid by the 2282
treasurer of state on warrants drawn by the director. Such 2283
warrants may bear the facsimile signature of the director printed 2284
thereon and that of a deputy or other employee of the director 2285
charged with the duty of keeping the account of the unemployment 2286
compensation fund and with the preparation of warrants for the 2287
payment of benefits to the persons entitled thereto. Moneys in the 2288
clearing and benefit accounts shall not be commingled with other 2289
state funds, except as provided in division (C) of this section, 2290
but shall be maintained in separate accounts on the books of the 2291
depositary bank. Such money shall be secured by the depositary 2292
bank to the same extent and in the same manner as required by 2293
sections 135.01 to 135.21 of the Revised Code; and collateral 2294
pledged for this purpose shall be kept separate and distinct from 2295
any collateral pledged to secure other funds of this state. All 2296
sums recovered for losses sustained by the unemployment 2297
compensation fund shall be deposited therein. The treasurer of 2298
state shall be liable on the treasurer's official bond for the 2299
faithful performance of the treasurer's duties in connection with 2300
the unemployment compensation fund, such liability to exist in 2301
addition to any liability upon any separate bond.2302

       (C) The treasurer of state shall maintain within the 2303
unemployment compensation fund three separate accounts which shall 2304
be a clearing account, a trust fund account, and a benefit 2305
account. All moneys payable to the unemployment compensation fund, 2306
upon receipt by the director, shall be forwarded to the treasurer 2307
of state, who shall immediately deposit them in the clearing 2308
account. Refunds of contributions, or payments in lieu of 2309
contributions, payable pursuant to division (E) of this section 2310
may be paid from the clearing account upon warrants signed by a 2311
deputy or other employee of the director charged with the duty of 2312
keeping the record of the clearing account and with the 2313
preparation of warrants for the payment of refunds to persons 2314
entitled thereto. After clearance thereof, all moneys in the 2315
clearing account shall be deposited with the secretary of the 2316
treasury of the United States to the credit of the account of this 2317
state in the unemployment trust fund established and maintained 2318
pursuant to section 904 of the "Social Security Act," in 2319
accordance with requirements of the "Federal Unemployment Tax 2320
Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301, 3304(a)(3), any law 2321
in this state relating to the deposit, administration, release, or 2322
disbursement of moneys in the possession or custody of this state 2323
to the contrary notwithstanding. The benefit account shall consist 2324
of all moneys requisitioned from this state's account in the 2325
unemployment trust fund. Federal funds may be deposited, at the 2326
director's discretion, into the benefit account. Any funds 2327
deposited into the benefit account shall be disbursed solely for 2328
payment of benefits under a federal program administered by this 2329
state and for no other purpose. Moneys in the clearing and benefit 2330
accounts may be deposited by the treasurer of state, under the 2331
direction of the director, in any bank or public depositary in 2332
which general funds of the state may be deposited, but no public 2333
deposit insurance charge or premium shall be paid out of the fund.2334

       (D) Moneys shall be requisitioned from this state's account 2335
in the unemployment trust fund solely for the payment of benefits 2336
and in accordance with regulations prescribed by the director. The 2337
director shall requisition from the unemployment trust fund such 2338
amounts, not exceeding the amount standing to this state's account 2339
therein, as are deemed necessary for the payment of benefits for a 2340
reasonable future period. Upon receipt thereof, the treasurer of 2341
state shall deposit such moneys in the benefit account. 2342
Expenditures of such money in the benefit account and refunds from 2343
the clearing account shall not require specific appropriations or 2344
other formal release by state officers of money in their custody. 2345
Any balance of moneys requisitioned from the unemployment trust 2346
fund which remains unclaimed or unpaid in the benefit account 2347
after the expiration of the period for which such sums were 2348
requisitioned shall either be deducted from estimates for and may 2349
be utilized for the payment of benefits during succeeding periods, 2350
or, in the discretion of the director, shall be redeposited with 2351
the secretary of the treasury of the United States to the credit 2352
of this state's account in the unemployment trust fund, as 2353
provided in division (C) of this section. Unclaimed or unpaid 2354
federal funds redeposited with the secretary of the treasury of 2355
the United States shall be credited to the appropriate federal 2356
account.2357

       (E) No claim for an adjustment or a refund on contribution, 2358
payment in lieu of contributions, interest, or forfeiture alleged 2359
to have been erroneously or illegally assessed or collected, or 2360
alleged to have been collected without authority, and no claim for 2361
an adjustment or a refund of any sum alleged to have been 2362
excessive or in any manner wrongfully collected shall be allowed 2363
unless an application, in writing, therefor is made within four 2364
years from the date on which such payment was made. If the 2365
director determines that such contribution, payment in lieu of 2366
contributions, interest, or forfeiture, or any portion thereof, 2367
was erroneously collected, the director shall allow such employer 2368
to make an adjustment thereof without interest in connection with 2369
subsequent contribution payments, or payments in lieu of 2370
contributions, by the employer, or the director may refund said 2371
amount, without interest, from the clearing account of the 2372
unemployment compensation fund, except as provided in division (B) 2373
of section 4141.11 of the Revised Code. For like cause and within 2374
the same period, adjustment or refund may be so made on the 2375
director's own initiative. An overpayment of contribution, payment 2376
in lieu of contributions, interest, or forfeiture for which an 2377
employer has not made application for refund prior to the date of 2378
sale of the employer's business shall accrue to the employer's 2379
successor in interest.2380

       An application for an adjustment or a refund, or any portion 2381
thereof, that is rejected is binding upon the employer unless, 2382
within thirty days after the mailing of a written notice of 2383
rejection to the employer's last known address, or, in the absence 2384
of mailing of such notice, within thirty days after the delivery 2385
of such notice, the employer files an application for a review and 2386
redetermination setting forth the reasons therefor. The director 2387
shall promptly examine the application for review and 2388
redetermination, and if a review is granted, the employer shall be 2389
promptly notified thereof, and shall be granted an opportunity for 2390
a prompt hearing.2391

       (F) If the director finds that contributions have been paid 2392
to the director in error, and that such contributions should have 2393
been paid to a department of another state or of the United States 2394
charged with the administration of an unemployment compensation 2395
law, the director may upon request by such department or upon the 2396
director's own initiative transfer to such department the amount 2397
of such contributions, less any benefits paid to claimants whose 2398
wages were the basis for such contributions. The director may 2399
request and receive from such department any contributions or 2400
adjusted contributions paid in error to such department which 2401
should have been paid to the director.2402

       (G) In accordance with section 303(c)(3) of the Social 2403
Security Act, and section 3304(a)(17) of the Internal Revenue Code 2404
of 1954 for continuing certification of Ohio unemployment 2405
compensation laws for administrative grants and for tax credits, 2406
any interest required to be paid on advances under Title XII of 2407
the Social Security Act shall be paid in a timely manner and shall 2408
not be paid, directly or indirectly, by an equivalent reduction in 2409
the Ohio unemployment taxes or otherwise, by the state from 2410
amounts in the unemployment compensation fund.2411

       (H) The treasurer of state, under the direction of the 2412
director and in accordance with the "Cash Management Improvement 2413
Act of 1990," 104 Stat. 1061, 31 U.S.C.A. 335, 6503, shall deposit 2414
amounts of interest earned by the state on funds in the benefit 2415
account established pursuant to division (C) of this section into 2416
the department of job and family services banking fees fund, which 2417
is hereby created in the state treasury for the purpose of paying 2418
related banking costs incurred by the state for the period for 2419
which the interest is calculated, except that if the deposited 2420
interest exceeds the banking costs incurred by the state for the 2421
period for which the interest is calculated, the treasurer of 2422
state shall deposit the excess interest into the unemployment 2423
trust fund.2424

       (I) The treasurer of state, under the direction of the 2425
director, shall deposit federal funds received by the director for 2426
training and administration and for payment of benefits, job 2427
search, relocation, transportation, and subsistence allowances 2428
pursuant to the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. 2429
2101, as amended; the "North American Free Trade Agreement 2430
Implementation Act," 107 Stat. 2057 (1993), 19 U.S.C.A. 3301, as 2431
amended; and the "Trade Act of 2002," 116 Stat. 993, 19 U.S.C.A. 2432
3801, as amended, into the Trade Act training and administration 2433
account, which is hereby created for the purpose of making 2434
payments specified under those acts. The treasurer of state, under 2435
the direction of the director, may transfer funds from the Trade 2436
Act training and administration account to the benefit account for 2437
the purpose of making any payments directly to claimants for 2438
benefits, job search, relocation, transportation, and subsistence 2439
allowances, as specified by those acts.2440

       Sec. 4141.241.  (A)(1) Any nonprofit organization described 2441
in division (X) of section 4141.01 of the Revised Code, which 2442
becomes subject to this chapter on or after January 1, 1972, shall 2443
pay contributions under section 4141.25 of the Revised Code, 2444
unless it elects, in accordance with this division, to pay to the 2445
director of job and family services for deposit in the 2446
unemployment compensation fund an amount in lieu of contributions 2447
equal to the amount of regular benefits plus one half of extended 2448
benefits paid from that fund that is attributable to service in 2449
the employ of the nonprofit organization to individuals whose 2450
service, during the base period of the claims, was within the 2451
effective period of such election.2452

       (2) Any nonprofit organization which becomes subject to this 2453
chapter after January 1, 1972, may elect to become liable for 2454
payments in lieu of contributions for a period of not less than 2455
the remainder of that calendar year and the next calendar year, 2456
beginning with the date on which such subjectivity begins, by 2457
filing a written notice of its election with the director not 2458
later than thirty days immediately following the date of the 2459
determination of such subjectivity.2460

       (3) Any nonprofit organization which makes an election in 2461
accordance with this division will continue to be liable for 2462
payments in lieu of contributions for the period described in this 2463
division and until it files with the director a written notice 2464
terminating its election. The notice shall be filed not later than 2465
thirty days prior to the beginning of the calendar year for which 2466
the termination is to become effective.2467

       (4) Any nonprofit organization which has been paying 2468
contributions for a period subsequent to January 1, 1972, may 2469
change to a reimbursable basis by filing with the director, not 2470
later than thirty days prior to the beginning of any calendar 2471
year, a written notice of election to become liable for payments 2472
in lieu of contributions. The election shall not be terminable by 2473
the organization during that calendar year and the next calendar 2474
year.2475

       (5) The director, in accordance with any rules the director 2476
prescribes, shall notify each nonprofit organization of any 2477
determination which the director may make of its status as an 2478
employer and of the effective date of any election which it makes 2479
and of any termination of the election. Any determinations shall 2480
be subject to reconsideration, appeal, and review in accordance 2481
with section 4141.26 of the Revised Code.2482

       (B) Except as provided in division (I)(J) of section 4141.29 2483
of the Revised Code, benefits based on service with a nonprofit 2484
organization granted a reimbursing status under this section shall 2485
be payable in the same amount, on the same terms, and subject to 2486
the same conditions, as benefits payable on the basis of other 2487
service subject to this chapter. Payments in lieu of contributions 2488
shall be made in accordance with this division and division (D) of 2489
section 4141.24 of the Revised Code.2490

       (1)(a) At the end of each calendar quarter, or at the end of 2491
any other period as determined by the director under division 2492
(D)(4) of section 4141.24 of the Revised Code, the director shall 2493
bill each nonprofit organization or group of such organizations 2494
which has elected to make payments in lieu of contributions for an 2495
amount equal to the full amount of regular benefits plus one half 2496
of the amount of extended benefits paid during such quarter or 2497
other prescribed period which is attributable to service in the 2498
employ of such organization.2499

       (b) In the computation of the amount of benefits to be 2500
charged to employers liable for payments in lieu of contributions, 2501
all benefits attributable to service described in division 2502
(B)(1)(a) of this section shall be computed and charged to such 2503
organization as described in division (D) of section 4141.24 of 2504
the Revised Code, and, except as provided in division (D)(2) of 2505
section 4141.24 of the Revised Code, no portion of the amount may 2506
be charged to the mutualized account established by division (B) 2507
of section 4141.25 of the Revised Code.2508

       (c) The director may prescribe regulations under which 2509
organizations, which have elected to make payments in lieu of 2510
contributions may request permission to make such payments in 2511
equal installments throughout the year with an adjustment at the 2512
end of the year for any excess or shortage of the amount of such 2513
installment payments compared with the total amount of benefits 2514
actually charged the organization's account during the year. In 2515
making any adjustment, where the total installment payments are 2516
less than the actual benefits charged, the organization shall be 2517
liable for payment of the unpaid balance in accordance with 2518
division (B)(2) of this section. If the total installment payments 2519
exceed the actual benefits charged, all or part of the excess may, 2520
at the discretion of the director, be refunded or retained in the 2521
fund as part of the payments which may be required in the next 2522
year.2523

       (2) Payment of any bill rendered under division (B)(1) of 2524
this section shall be made not later than thirty days after the 2525
bill was mailed to the last known address of the organization or 2526
was otherwise delivered to it, unless there has been an 2527
application for review and redetermination in accordance with 2528
division (B)(4) of this section.2529

       (3) Payments made by an organization under this section shall 2530
not be deducted or deductible, in whole or in part, from the 2531
remuneration of individuals in the employ of the organization.2532

       (4) An organization may file an application for review and 2533
redetermination of the amounts appearing on any bill rendered to 2534
such organization under division (B)(1) of this section. The 2535
application shall be filed and determined under division (D)(4) of 2536
section 4141.24 of the Revised Code.2537

       (5) Past-due payments of amounts in lieu of contributions 2538
shall be subject to the same interest rates and collection 2539
procedures that apply to past-due contributions under sections 2540
4141.23 and 414.27 of the Revised Code. In case of failure to file 2541
a required quarterly report within the time prescribed by the 2542
director, the nonprofit organization shall be subject to a 2543
forfeiture pursuant to section 4141.20 of the Revised Code for 2544
each quarterly report that is not timely filed.2545

       All interest and forfeitures collected under this division 2546
shall be paid into the unemployment compensation special 2547
administrative fund as provided in section 4141.11 of the Revised 2548
Code.2549

       (6) All payments in lieu of contributions collected under 2550
this section shall be paid into the unemployment compensation fund 2551
as provided in section 4141.09 of the Revised Code. Any refunds of 2552
such payments shall be paid from the unemployment compensation 2553
fund, as provided in section 4141.09 of the Revised Code.2554

       (C)(1) Any nonprofit organization, or group of such 2555
organizations approved under division (D) of this section, that 2556
elects to become liable for payments in lieu of contributions 2557
shall be required within thirty days after the effective date of 2558
its election, to execute and file with the director a surety bond 2559
approved by the director or it may elect instead to deposit with 2560
the director approved municipal or other bonds, or approved 2561
securities, or a combination thereof, or other forms of collateral 2562
security approved by the director.2563

       (2)(a) The amount of the bond or deposit required shall be 2564
equal to three per cent of the organization's wages paid for 2565
employment as defined in section 4141.01 of the Revised Code that 2566
would have been taxable had the organization been a subject 2567
employer during the four calendar quarters immediately preceding 2568
the effective date of the election, or the amount established by 2569
the director within the limitation provided in division (C)(2)(d) 2570
of this section, whichever is the less. The effective date of the 2571
amount of the bond or other collateral security required after the 2572
employer initially is determined by the director to be liable for 2573
payments in lieu of contributions shall be the renewal date in the 2574
case of a bond or the biennial anniversary of the effective date 2575
of election in the case of deposit of securities or other forms of 2576
collateral security approved by the director, whichever date shall 2577
be most recent and applicable. If the nonprofit organization did 2578
not pay wages in each of such four calendar quarters, the amount 2579
of the bond or deposit shall be as determined by the director 2580
under regulations prescribed for this purpose.2581

       (b) Any bond or other form of collateral security approved by 2582
the director deposited under this division shall be in force for a 2583
period of not less than two calendar years and shall be renewed 2584
with the approval of the director, at such times as the director 2585
may prescribe, but not less frequently than at two-year intervals 2586
as long as the organization continues to be liable for payments in 2587
lieu of contributions. The director shall require adjustments to 2588
be made in a previously filed bond or other form of collateral 2589
security as the director considers appropriate. If the bond or 2590
other form of collateral security is to be increased, the adjusted 2591
bond or collateral security shall be filed by the organization 2592
within thirty days of the date that notice of the required 2593
adjustment was mailed or otherwise delivered to it. Failure by any 2594
organization covered by such bond or collateral security to pay 2595
the full amount of payments in lieu of contributions when due, 2596
together with any applicable interest provided for in division 2597
(B)(5) of this section, shall render the surety liable on the bond 2598
or collateral security to the extent of the bond or collateral 2599
security, as though the surety was the organization.2600

       (c) Any securities accepted in lieu of surety bond by the 2601
director shall be deposited with the treasurer of state who shall 2602
have custody thereof and retain the same in the treasurer of 2603
state's possession, or release them, according to conditions 2604
prescribed by regulations of the director. Income from the 2605
securities, held in custody by the treasurer of state, shall 2606
accrue to the benefit of the depositor and shall be distributed to 2607
the depositor in the absence of any notification from the director 2608
that the depositor is in default on any payment owed to the 2609
director. The director may require the sale of any such bonds to 2610
the extent necessary to satisfy any unpaid payments in lieu of 2611
contributions, together with any applicable interest or 2612
forfeitures provided for in division (B)(5) of this section. The 2613
director shall require the employer within thirty days following 2614
any sale of deposited securities, under this subdivision, to 2615
deposit additional securities, surety bond, or combination of 2616
both, to make whole the employer's security deposit at the 2617
approved level. Any cash remaining from the sale of such 2618
securities may, at the discretion of the director, be refunded in 2619
whole or in part, or be paid into the unemployment compensation 2620
fund to cover future payments required of the organization.2621

       (d) The required bond or deposit for any nonprofit 2622
organization, or group of such organizations approved by the 2623
director under division (D) of this section, that is determined by 2624
the director to be liable for payments in lieu of contributions 2625
effective beginning on and after January 1, 1996, but prior to 2626
January 1, 1998, and the required bond or deposit for any renewed 2627
elections under division (C)(2)(b) of this section effective 2628
during that period shall not exceed one million two hundred fifty 2629
thousand dollars. The required bond or deposit for any nonprofit 2630
organization, or group of such organizations approved by the 2631
director under division (D) of this section, that is determined to 2632
be liable for payments in lieu of contributions effective on and 2633
after January 1, 1998, and the required bond or deposit for any 2634
renewed elections effective on and after January 1, 1998, shall 2635
not exceed two million dollars.2636

       (3) If any nonprofit organization fails to file a bond or 2637
make a deposit, or to file a bond in an increased amount or to 2638
make whole the amount of a previously made deposit, as provided 2639
under this division, the director may terminate the organization's 2640
election to make payments in lieu of contributions effective for 2641
the quarter following such failure and the termination shall 2642
continue for not less than the remainder of that calendar year and 2643
the next calendar year, beginning with the quarter in which the 2644
termination becomes effective; except that the director may extend 2645
for good cause the applicable filing, deposit, or adjustment 2646
period by not more than thirty days.2647

       (D)(1) Two or more nonprofit organizations that have become 2648
liable for payments in lieu of contributions, in accordance with 2649
division (A) of this section, may file a joint application to the 2650
director for the establishment of the group account for the 2651
purpose of sharing the cost of benefits paid that are attributable 2652
to service in the employ of those employers. Notwithstanding 2653
division (E) of section 4141.242 of the Revised Code, hospitals 2654
operated by this state or a political subdivision may participate 2655
in a group account with nonprofit organizations under the 2656
procedures set forth in this section. Each application shall 2657
identify and authorize a group representative to act as the 2658
group's agent for the purposes of this division.2659

       (2) Upon the director's approval of the application, the 2660
director shall establish a group account for the employers 2661
effective as of the beginning of the calendar quarter in which the 2662
director receives the application and shall notify the group's 2663
representative of the effective date of the account. The account 2664
shall remain in effect for not less than two years and thereafter 2665
until terminated by the director or upon application by the group.2666

       (3) Upon establishment of the account, each member of the 2667
group shall be liable, in the event that the group representative 2668
fails to pay any bill issued to it pursuant to division (B) of 2669
this section, for payments in lieu of contributions with respect 2670
to each calendar quarter in the amount that bears the same ratio 2671
to the total benefits paid in the quarter that are attributable to 2672
service performed in the employ of all members of the group as the 2673
total wages paid for service in employment by the member in the 2674
quarter bear to the total wages paid during the quarter for 2675
service performed in the employ of all members of the group.2676

       (4) The director shall adopt regulations as considered 2677
necessary with respect to the following: applications for 2678
establishment, bonding, maintenance, and termination of group 2679
accounts that are authorized by this section; addition of new 2680
members to and withdrawal of active members from such accounts; 2681
and the determination of the amounts that are payable under this 2682
division by the group representative and in the event of default 2683
in payment by the group representative, members of the group, and 2684
the time and manner of payments.2685

       Sec. 4141.29.  Each eligible individual shall receive 2686
benefits as compensation for loss of remuneration due to 2687
involuntary total or partial unemployment in the amounts and 2688
subject to the conditions stipulated in this chapter.2689

       (A) No individual is entitled to a waiting period or benefits 2690
for any week unless the individual:2691

       (1) Has filed a valid application for determination of 2692
benefit rights in accordance with section 4141.28 of the Revised 2693
Code;2694

       (2) Has made a claim for benefits in accordance with section 2695
4141.28 of the Revised Code;2696

       (3) Has registered at an employment office or other 2697
registration place maintained or designated by the director of job 2698
and family services. Registration shall be made in accordance with 2699
the time limits, frequency, and manner prescribed by the director.2700

       (4)(a)(i) Is able to work and available for suitable work 2701
and, except as provided in division (A)(4)(a)(ii) of this section, 2702
is actively seeking suitable work either in a locality in which 2703
the individual has earned wages subject to this chapter during the 2704
individual's base period, or if the individual leaves that 2705
locality, then in a locality where suitable work normally is 2706
performed.2707

       (ii) The director may waive the requirement that a claimant 2708
be actively seeking work when the director finds that the 2709
individual has been laid off and the employer who laid the 2710
individual off has notified the director within ten days after the 2711
layoff, that work is expected to be available for the individual 2712
within a specified number of days not to exceed forty-five 2713
calendar days following the last day the individual worked. In the 2714
event the individual is not recalled within the specified period, 2715
this waiver shall cease to be operative with respect to that 2716
layoff.2717

       (b) The individual shall be instructed as to the efforts that 2718
the individual must make in the search for suitable work, except 2719
where the active search for work requirement has been waived under 2720
division (A)(4)(a) of this section, and shall keep a record of 2721
where and when the individual has sought work in complying with 2722
those instructions and, upon request, shall produce that record 2723
for examination by the director.2724

       (c) An individual who is attending a training course approved 2725
by the director meets the requirement of this division, if 2726
attendance was recommended by the director and the individual is 2727
regularly attending the course and is making satisfactory 2728
progress. An individual also meets the requirements of this 2729
division if the individual is participating and advancing in a 2730
training program, as defined in division (P) of section 5709.61 of 2731
the Revised Code, and if an enterprise, defined in division (B) of 2732
section 5709.61 of the Revised Code, is paying all or part of the 2733
cost of the individual's participation in the training program 2734
with the intention of hiring the individual for employment as a 2735
new employee, as defined in division (L) of section 5709.61 of the 2736
Revised Code, for at least ninety days after the individual's 2737
completion of the training program.2738

       (d) An individual who becomes unemployed while attending a 2739
regularly established school and whose base period qualifying 2740
weeks were earned in whole or in part while attending that school, 2741
meets the availability and active search for work requirements of 2742
division (A)(4)(a) of this section if the individual regularly 2743
attends the school during weeks with respect to which the 2744
individual claims unemployment benefits and makes self available 2745
on any shift of hours for suitable employment with the 2746
individual's most recent employer or any other employer in the 2747
individual's base period, or for any other suitable employment to 2748
which the individual is directed, under this chapter.2749

       (e) The director shall adopt any rules that the director 2750
deems necessary for the administration of division (A)(4) of this 2751
section.2752

       (f) Notwithstanding any other provisions of this section, no 2753
otherwise eligible individual shall be denied benefits for any 2754
week because the individual is in training approved under section 2755
236(a)(1) of the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. 2756
2296, nor shall that individual be denied benefits by reason of 2757
leaving work to enter such training, provided the work left is not 2758
suitable employment, or because of the application to any week in 2759
training of provisions in this chapter, or any applicable federal 2760
unemployment compensation law, relating to availability for work, 2761
active search for work, or refusal to accept work.2762

       For the purposes of division (A)(4)(f) of this section, 2763
"suitable employment" means with respect to an individual, work of 2764
a substantially equal or higher skill level than the individual's 2765
past adversely affected employment, as defined for the purposes of 2766
the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. 2101, and 2767
wages for such work at not less than eighty per cent of the 2768
individual's average weekly wage as determined for the purposes of 2769
that federal act.2770

       (5) Is unable to obtain suitable work. An individual who is 2771
provided temporary work assignments by the individual's employer 2772
under agreed terms and conditions of employment, and who is 2773
required pursuant to those terms and conditions to inquire with 2774
the individual's employer for available work assignments upon the 2775
conclusion of each work assignment, is not considered unable to 2776
obtain suitable employment if suitable work assignments are 2777
available with the employer but the individual fails to contact 2778
the employer to inquire about work assignments.2779

       (6) Participates in reemployment services, such as job search 2780
assistance services, if the individual has been determined to be 2781
likely to exhaust benefits under this chapter, including 2782
compensation payable pursuant to 5 U.S.C.A. Chapter 85, other than 2783
extended compensation, and needs reemployment services pursuant to 2784
the profiling system established by the director under division 2785
(K)(L) of this section, unless the director determines that:2786

       (a) The individual has completed such services; or2787

       (b) There is justifiable cause for the claimant's failure to 2788
participate in such services.2789

       (B) An individual suffering total or partial unemployment is 2790
eligible for benefits for unemployment occurring subsequent to a 2791
waiting period of one week and no benefits shall be payable during 2792
this required waiting period. Not more than one week of waiting 2793
period shall be required of any individual in any benefit year in 2794
order to establish the individual's eligibility for total or 2795
partial unemployment benefits.2796

       (C) The waiting period for total or partial unemployment 2797
shall commence on the first day of the first week with respect to 2798
which the individual first files a claim for benefits at an 2799
employment office or other place of registration maintained or 2800
designated by the director or on the first day of the first week 2801
with respect to which the individual has otherwise filed a claim 2802
for benefits in accordance with the rules of the department of job 2803
and family services, provided such claim is allowed by the 2804
director.2805

       (D) Notwithstanding division (A) of this section, no 2806
individual may serve a waiting period or be paid benefits under 2807
the following conditions:2808

       (1) For any week with respect to which the director finds 2809
that:2810

       (a) The individual's unemployment was due to a labor dispute 2811
other than a lockout at any factory, establishment, or other 2812
premises located in this or any other state and owned or operated 2813
by the employer by which the individual is or was last employed; 2814
and for so long as the individual's unemployment is due to such 2815
labor dispute. No individual shall be disqualified under this 2816
provision if either of the following applies:2817

       (i) The individual's employment was with such employer at any 2818
factory, establishment, or premises located in this state, owned 2819
or operated by such employer, other than the factory, 2820
establishment, or premises at which the labor dispute exists, if 2821
it is shown that the individual is not financing, participating 2822
in, or directly interested in such labor dispute;2823

       (ii) The individual's employment was with an employer not 2824
involved in the labor dispute but whose place of business was 2825
located within the same premises as the employer engaged in the 2826
dispute, unless the individual's employer is a wholly owned 2827
subsidiary of the employer engaged in the dispute, or unless the 2828
individual actively participates in or voluntarily stops work 2829
because of such dispute. If it is established that the claimant 2830
was laid off for an indefinite period and not recalled to work 2831
prior to the dispute, or was separated by the employer prior to 2832
the dispute for reasons other than the labor dispute, or that the 2833
individual obtained a bona fide job with another employer while 2834
the dispute was still in progress, such labor dispute shall not 2835
render the employee ineligible for benefits.2836

       (b) The individual has been given a disciplinary layoff for 2837
misconduct in connection with the individual's work.2838

       (2) For the duration of the individual's unemployment if the 2839
director finds that:2840

       (a) The individual quit work without just cause or has been 2841
discharged for just cause in connection with the individual's 2842
work, provided division (D)(2) of this section does not apply to 2843
the separation of a person under any of the following 2844
circumstances:2845

       (i) Separation from employment for the purpose of entering 2846
the armed forces of the United States if the individual is 2847
inducted into the armed forces within one of the following 2848
periods:2849

       (I) Thirty days after separation;2850

       (II) One hundred eighty days after separation if the 2851
individual's date of induction is delayed solely at the discretion 2852
of the armed forces.2853

       (ii) Separation from employment pursuant to a 2854
labor-management contract or agreement, or pursuant to an 2855
established employer plan, program, or policy, which permits the 2856
employee, because of lack of work, to accept a separation from 2857
employment;2858

       (iii) The individual has left employment to accept a recall 2859
from a prior employer or, except as provided in division 2860
(D)(2)(a)(iv) of this section, to accept other employment as 2861
provided under section 4141.291 of the Revised Code, or left or 2862
was separated from employment that was concurrent employment at 2863
the time of the most recent separation or within six weeks prior 2864
to the most recent separation where the remuneration, hours, or 2865
other conditions of such concurrent employment were substantially 2866
less favorable than the individual's most recent employment and 2867
where such employment, if offered as new work, would be considered 2868
not suitable under the provisions of divisions (E) and (F) of this 2869
section. Any benefits that would otherwise be chargeable to the 2870
account of the employer from whom an individual has left 2871
employment or was separated from employment that was concurrent 2872
employment under conditions described in division (D)(2)(a)(iii) 2873
of this section, shall instead be charged to the mutualized 2874
account created by division (B) of section 4141.25 of the Revised 2875
Code, except that any benefits chargeable to the account of a 2876
reimbursing employer under division (D)(2)(a)(iii) of this section 2877
shall be charged to the account of the reimbursing employer and 2878
not to the mutualized account, except as provided in division 2879
(D)(2) of section 4141.24 of the Revised Code.2880

       (iv) When an individual has been issued a definite layoff 2881
date by the individual's employer and before the layoff date, the 2882
individual quits to accept other employment, the provisions of 2883
division (D)(2)(a)(iii) of this section apply and no 2884
disqualification shall be imposed under division (D) of this 2885
section. However, if the individual fails to meet the employment 2886
and earnings requirements of division (A)(2) of section 4141.291 2887
of the Revised Code, then the individual, pursuant to division 2888
(A)(5) of this section, shall be ineligible for benefits for any 2889
week of unemployment that occurs prior to the layoff date.2890

       (b) The individual has refused without good cause to accept 2891
an offer of suitable work when made by an employer either in 2892
person or to the individual's last known address, or has refused 2893
or failed to investigate a referral to suitable work when directed 2894
to do so by a local employment office of this state or another 2895
state, provided that this division shall not cause a 2896
disqualification for a waiting week or benefits under the 2897
following circumstances:2898

       (i) When work is offered by the individual's employer and the 2899
individual is not required to accept the offer pursuant to the 2900
terms of the labor-management contract or agreement; or2901

       (ii) When the individual is attending a training course 2902
pursuant to division (A)(4) of this section except, in the event 2903
of a refusal to accept an offer of suitable work or a refusal or 2904
failure to investigate a referral, benefits thereafter paid to 2905
such individual shall not be charged to the account of any 2906
employer and, except as provided in division (B)(1)(b) of section 2907
4141.241 of the Revised Code, shall be charged to the mutualized 2908
account as provided in division (B) of section 4141.25 of the 2909
Revised Code.2910

       (c) SuchExcept as otherwise provided in section 4141.294 of 2911
the Revised Code, such individual quit work to marry or because of 2912
marital, parental, filial, or other domestic obligations.2913

       (d) The individual became unemployed by reason of commitment 2914
to any correctional institution.2915

       (e) The individual became unemployed because of dishonesty in 2916
connection with the individual's most recent or any base period 2917
work. Remuneration earned in such work shall be excluded from the 2918
individual's total base period remuneration and qualifying weeks 2919
that otherwise would be credited to the individual for such work 2920
in the individual's base period shall not be credited for the 2921
purpose of determining the total benefits to which the individual 2922
is eligible and the weekly benefit amount to be paid under section 2923
4141.30 of the Revised Code. Such excluded remuneration and 2924
noncredited qualifying weeks shall be excluded from the 2925
calculation of the maximum amount to be charged, under division 2926
(D) of section 4141.24 and section 4141.33 of the Revised Code, 2927
against the accounts of the individual's base period employers. In 2928
addition, no benefits shall thereafter be paid to the individual 2929
based upon such excluded remuneration or noncredited qualifying 2930
weeks.2931

       For purposes of division (D)(2)(e) of this section, 2932
"dishonesty" means the commission of substantive theft, fraud, or 2933
deceitful acts.2934

       (E) No individual otherwise qualified to receive benefits 2935
shall lose the right to benefits by reason of a refusal to accept 2936
new work if:2937

       (1) As a condition of being so employed the individual would 2938
be required to join a company union, or to resign from or refrain 2939
from joining any bona fide labor organization, or would be denied 2940
the right to retain membership in and observe the lawful rules of 2941
any such organization.2942

       (2) The position offered is vacant due directly to a strike, 2943
lockout, or other labor dispute.2944

       (3) The work is at an unreasonable distance from the 2945
individual's residence, having regard to the character of the work 2946
the individual has been accustomed to do, and travel to the place 2947
of work involves expenses substantially greater than that required 2948
for the individual's former work, unless the expense is provided 2949
for.2950

       (4) The remuneration, hours, or other conditions of the work 2951
offered are substantially less favorable to the individual than 2952
those prevailing for similar work in the locality.2953

       (F) Subject to the special exceptions contained in division 2954
(A)(4)(f) of this section and section 4141.301 of the Revised 2955
Code, in determining whether any work is suitable for a claimant 2956
in the administration of this chapter, the director, in addition 2957
to the determination required under division (E) of this section, 2958
shall consider the degree of risk to the claimant's health, 2959
safety, and morals, the individual's physical fitness for the 2960
work, the individual's prior training and experience, the length 2961
of the individual's unemployment, the distance of the available 2962
work from the individual's residence, and the individual's 2963
prospects for obtaining local work.2964

       (G) No claimant shall be denied regular unemployment benefits 2965
under this section due to failing to satisfy the requirement 2966
regarding availability for work, failing to actively search for 2967
suitable work, or refusing to accept suitable work as described 2968
under division (A) of this section, solely because the claimant is 2969
seeking only part-time work.2970

       (H) The "duration of unemployment" as used in this section 2971
means the full period of unemployment next ensuing after a 2972
separation from any base period or subsequent work and until an 2973
individual has become reemployed in employment subject to this 2974
chapter, or the unemployment compensation act of another state, or 2975
of the United States, and until such individual has worked six 2976
weeks and for those weeks has earned or been paid remuneration 2977
equal to six times an average weekly wage of not less than: 2978
eighty-five dollars and ten cents per week beginning on June 26, 2979
1990; and beginning on and after January 1, 1992, twenty-seven and 2980
one-half per cent of the statewide average weekly wage as computed 2981
each first day of January under division (B)(3) of section 4141.30 2982
of the Revised Code, rounded down to the nearest dollar, except 2983
for purposes of division (D)(2)(c) of this section, such term 2984
means the full period of unemployment next ensuing after a 2985
separation from such work and until such individual has become 2986
reemployed subject to the terms set forth above, and has earned 2987
wages equal to one-half of the individual's average weekly wage or 2988
sixty dollars, whichever is less.2989

       (H)(I) If a claimant is disqualified under division 2990
(D)(2)(a), (c), or (d) of this section or found to be qualified 2991
under the exceptions provided in division (D)(2)(a)(i), (iii), or 2992
(iv) of this section or, division (A)(2) of section 4141.291 of 2993
the Revised Code, or section 4141.294 of the Revised Code, then 2994
benefits that may become payable to such claimant, which are 2995
chargeable to the account of the employer from whom the individual 2996
was separated under such conditions, shall be charged to the 2997
mutualized account provided in section 4141.25 of the Revised 2998
Code, provided that no charge shall be made to the mutualized 2999
account for benefits chargeable to a reimbursing employer, except 3000
as provided in division (D)(2) of section 4141.24 of the Revised 3001
Code. In the case of a reimbursing employer, the director shall 3002
refund or credit to the account of the reimbursing employer any 3003
over-paid benefits that are recovered under division (B) of 3004
section 4141.35 of the Revised Code. Amounts chargeable to other 3005
states, the United States, or Canada that are subject to 3006
agreements and arrangements that are established pursuant to 3007
section 4141.43 of the Revised Code shall be credited or 3008
reimbursed according to the agreements and arrangements to which 3009
the chargeable amounts are subject.3010

       (I)(J)(1) Benefits based on service in employment as provided 3011
in divisions (B)(2)(a) and (b) of section 4141.01 of the Revised 3012
Code shall be payable in the same amount, on the same terms, and 3013
subject to the same conditions as benefits payable on the basis of 3014
other service subject to this chapter; except that after December 3015
31, 1977:3016

       (a) Benefits based on service in an instructional, research, 3017
or principal administrative capacity in an institution of higher 3018
education, as defined in division (Y) of section 4141.01 of the 3019
Revised Code; or for an educational institution as defined in 3020
division (CC) of section 4141.01 of the Revised Code, shall not be 3021
paid to any individual for any week of unemployment that begins 3022
during the period between two successive academic years or terms, 3023
or during a similar period between two regular but not successive 3024
terms or during a period of paid sabbatical leave provided for in 3025
the individual's contract, if the individual performs such 3026
services in the first of those academic years or terms and has a 3027
contract or a reasonable assurance that the individual will 3028
perform services in any such capacity for any such institution in 3029
the second of those academic years or terms.3030

       (b) Benefits based on service for an educational institution 3031
or an institution of higher education in other than an 3032
instructional, research, or principal administrative capacity, 3033
shall not be paid to any individual for any week of unemployment 3034
which begins during the period between two successive academic 3035
years or terms of the employing educational institution or 3036
institution of higher education, provided the individual performed 3037
those services for the educational institution or institution of 3038
higher education during the first such academic year or term and, 3039
there is a reasonable assurance that such individual will perform 3040
those services for any educational institution or institution of 3041
higher education in the second of such academic years or terms.3042

       If compensation is denied to any individual for any week 3043
under division (I)(J)(1)(b) of this section and the individual was 3044
not offered an opportunity to perform those services for an 3045
institution of higher education or for an educational institution 3046
for the second of such academic years or terms, the individual is 3047
entitled to a retroactive payment of compensation for each week 3048
for which the individual timely filed a claim for compensation and 3049
for which compensation was denied solely by reason of division 3050
(I)(J)(1)(b) of this section. An application for retroactive 3051
benefits shall be timely filed if received by the director or the 3052
director's deputy within or prior to the end of the fourth full 3053
calendar week after the end of the period for which benefits were 3054
denied because of reasonable assurance of employment. The 3055
provision for the payment of retroactive benefits under division 3056
(I)(J)(1)(b) of this section is applicable to weeks of 3057
unemployment beginning on and after November 18, 1983. The 3058
provisions under division (I)(J)(1)(b) of this section shall be 3059
retroactive to September 5, 1982, only if, as a condition for full 3060
tax credit against the tax imposed by the "Federal Unemployment 3061
Tax Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311, the 3062
United States secretary of labor determines that retroactivity is 3063
required by federal law.3064

       (c) With respect to weeks of unemployment beginning after 3065
December 31, 1977, benefits shall be denied to any individual for 3066
any week which commences during an established and customary 3067
vacation period or holiday recess, if the individual performs any 3068
services described in divisions (I)(J)(1)(a) and (b) of this 3069
section in the period immediately before the vacation period or 3070
holiday recess, and there is a reasonable assurance that the 3071
individual will perform any such services in the period 3072
immediately following the vacation period or holiday recess.3073

       (d) With respect to any services described in division 3074
(I)(J)(1)(a), (b), or (c) of this section, benefits payable on the 3075
basis of services in any such capacity shall be denied as 3076
specified in division (I)(J)(1)(a), (b), or (c) of this section to 3077
any individual who performs such services in an educational 3078
institution or institution of higher education while in the employ 3079
of an educational service agency. For this purpose, the term 3080
"educational service agency" means a governmental agency or 3081
governmental entity that is established and operated exclusively 3082
for the purpose of providing services to one or more educational 3083
institutions or one or more institutions of higher education.3084

       (e) Any individual employed by a county board of 3085
developmental disabilities shall be notified by the thirtieth day 3086
of April each year if the individual is not to be reemployed the 3087
following academic year.3088

       (f) Any individual employed by a school district, other than 3089
a municipal school district as defined in section 3311.71 of the 3090
Revised Code, shall be notified by the first day of June each year 3091
if the individual is not to be reemployed the following academic 3092
year.3093

       (2) No disqualification will be imposed, between academic 3094
years or terms or during a vacation period or holiday recess under 3095
this division, unless the director or the director's deputy has 3096
received a statement in writing from the educational institution 3097
or institution of higher education that the claimant has a 3098
contract for, or a reasonable assurance of, reemployment for the 3099
ensuing academic year or term.3100

       (3) If an individual has employment with an educational 3101
institution or an institution of higher education and employment 3102
with a noneducational employer, during the base period of the 3103
individual's benefit year, then the individual may become eligible 3104
for benefits during the between-term, or vacation or holiday 3105
recess, disqualification period, based on employment performed for 3106
the noneducational employer, provided that the employment is 3107
sufficient to qualify the individual for benefit rights separately 3108
from the benefit rights based on school employment. The weekly 3109
benefit amount and maximum benefits payable during a 3110
disqualification period shall be computed based solely on the 3111
nonschool employment.3112

       (J)(K) Benefits shall not be paid on the basis of employment 3113
performed by an alien, unless the alien had been lawfully admitted 3114
to the United States for permanent residence at the time the 3115
services were performed, was lawfully present for purposes of 3116
performing the services, or was otherwise permanently residing in 3117
the United States under color of law at the time the services were 3118
performed, under section 212(d)(5) of the "Immigration and 3119
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101:3120

       (1) Any data or information required of individuals applying 3121
for benefits to determine whether benefits are not payable to them 3122
because of their alien status shall be uniformly required from all 3123
applicants for benefits.3124

       (2) In the case of an individual whose application for 3125
benefits would otherwise be approved, no determination that 3126
benefits to the individual are not payable because of the 3127
individual's alien status shall be made except upon a 3128
preponderance of the evidence that the individual had not, in 3129
fact, been lawfully admitted to the United States.3130

       (K)(L) The director shall establish and utilize a system of 3131
profiling all new claimants under this chapter that:3132

       (1) Identifies which claimants will be likely to exhaust 3133
regular compensation and will need job search assistance services 3134
to make a successful transition to new employment;3135

       (2) Refers claimants identified pursuant to division 3136
(K)(L)(1) of this section to reemployment services, such as job 3137
search assistance services, available under any state or federal 3138
law;3139

       (3) Collects follow-up information relating to the services 3140
received by such claimants and the employment outcomes for such 3141
claimant's subsequent to receiving such services and utilizes such 3142
information in making identifications pursuant to division 3143
(K)(L)(1) of this section; and3144

       (4) Meets such other requirements as the United States 3145
secretary of labor determines are appropriate.3146

       (M) As used in this section, "seeking only part-time work" 3147
means the claimant is willing and able to work at least twelve 3148
hours per week.3149

       Sec. 4141.291.  (A) Notwithstanding section 4141.29 of the 3150
Revised Code, an individual who voluntarily quits work:3151

       (1) To accept a recall from a prior employer and establishes 3152
that the refusal or failure to accept the recall would have 3153
resulted in a substantial loss of employment rights, benefits, or 3154
pension, under a labor-management agreement or company policy;3155

       (2) To accept a recall to employment from a prior employer 3156
and cannot establish that a substantial loss of employment rights, 3157
benefits, or pension was involved in the recall, or to accept 3158
other employment subject to this chapter, or the unemployment 3159
compensation act of another state, or of the United States, where 3160
the individual obtains such employment while still employed or 3161
commences such employment within seven calendar days after the 3162
last day of employment with the prior employer, and subsequent to 3163
the last day of the employment with the prior employer, works 3164
three weeks in the new employment and earns wages equal to one and 3165
one-half times the individual's average weekly wage or one hundred 3166
eighty dollars, whichever is less;3167

       (3) Shall, under the conditions specified in either division 3168
(A)(1) or (2) of this section, remove the disqualification imposed 3169
by division (D)(2)(a) of section 4141.29 of the Revised Code and 3170
shall be deemed to have fully complied with division (G)(H) of 3171
such section.3172

       (B) Benefits which may become payable to such individual 3173
because of the individual's subsequent separation from the 3174
employer who recalled that individual shall be charged to employer 3175
accounts as provided in division (D) of section 4141.24 of the 3176
Revised Code.3177

       (C) Any benefits which would be chargeable to the account of 3178
the employer from whom such individual voluntarily quit to accept 3179
such recall or other employment which are not chargeable to the 3180
recalling employer as provided in this section shall be charged to 3181
the mutualized account provided in section 4141.25 of the Revised 3182
Code; except that any benefits chargeable to the account of a 3183
reimbursing employer under this division shall be charged to the 3184
account of the reimbursing employer and not the mutualized 3185
account, except as provided in division (D)(2) of section 4141.24 3186
of the Revised Code.3187

       Sec. 4141.293.  (A) As used in this section, "learn to earn 3188
program" means any program established by the department of job 3189
and family services that offers a structured, supervised training 3190
opportunity to an eligible unemployment compensation claimant with 3191
a designated worksite training provider.3192

       (B) Participation in a learn to earn program is voluntary.3193

       (C) If a learn to earn program participant is otherwise 3194
eligible for unemployment compensation benefits, the participant 3195
shall continue to receive unemployment compensation benefits 3196
pursuant to this chapter during participation in the program.3197

       (D) A participant in a learn to earn program shall be 3198
registered at an employment office or other registration place 3199
maintained or designated by the director of job and family 3200
services according to the procedure set forth in division (A)(3) 3201
of section 4141.29 of the Revised Code.3202

       (E) A learn to earn program participant may participate in a 3203
learn to earn program for a period not to exceed twenty-four hours 3204
a week for a maximum of six weeks.3205

       (F) A designated worksite training provider participating in 3206
a learn to earn program shall not use a participant in the program 3207
to displace any employee employed by the provider as of the date 3208
the provider participates in the program, including for any 3209
partial displacement, such as a reduction in the hours of 3210
nonovertime work, wages, or employment benefits.3211

       A designated worksite training provider participating in a 3212
learn to earn program shall not permit a claimant participating in 3213
the program to perform work activities related to any job for 3214
which any of the following circumstances apply:3215

       (1) Another individual is on layoff from the same or any 3216
substantially equivalent position.3217

       (2) The provider has terminated the employment of any 3218
employee or otherwise reduced the workforce of the provider with 3219
the intention of filling or partially filling the vacancy so 3220
created with the work activities to be performed by a program 3221
participant.3222

       (3) A strike or lockout is occurring at the worksite that is 3223
the designated worksite for a claimant participating in the 3224
program.3225

       (4) The position is created in a manner that infringes in any 3226
way upon the promotional opportunities of individuals currently 3227
employed by the provider as of the date of the employer's 3228
participation in a learn to earn program.3229

       (G) A designated worksite training provider participating in 3230
a learn to earn program shall not, by means of assigning work 3231
activities under the program, impair an existing contract for 3232
services or a collective bargaining agreement. Such a provider 3233
shall not undertake any activity that would be inconsistent with 3234
the terms of a collective bargaining agreement without the written 3235
concurrence of the labor organization that is signatory to the 3236
collective bargaining agreement.3237

       Sec. 4141.294.  (A) As used in this section:3238

       (1) "Compelling family circumstances" means any of the 3239
following: 3240

       (a) The claimant was separated from employment with the 3241
claimant's employer because of the claimant's illness or 3242
disability and, based upon available information, the director of 3243
job and family services finds that it was medically necessary for 3244
the claimant to stop working or change occupations.3245

       (b) The claimant was separated from work due to an immediate 3246
family member's illness or disability.3247

       (c) The claimant's spouse was transferred or employed in 3248
another city or state, the family is required to move to the 3249
location of that job, the location is outside the commuting 3250
distance of the claimant's previous employment, and the claimant 3251
separates from employment in order to move to the new location 3252
with the claimant's spouse.3253

       (2) "Disability" means a verified disability that 3254
necessitates the care of the disabled person for a period of time 3255
that exceeds the amount of time an employer will provide paid or 3256
unpaid leave. "Disability" includes mental and physical 3257
disabilities, permanent and temporary disabilities, and partial 3258
and total disabilities.3259

       (3) "Immediate family member" means a claimant's spouse, 3260
parent, or child under the age of eighteen.3261

       (4) "Illness" means a verified illness that necessitates the 3262
care of the ill person for a period of time that exceeds the 3263
amount of time an employer will provide paid or unpaid leave.3264

       (B)(1) Notwithstanding section 4141.29 of the Revised Code, a 3265
claimant is eligible for waiting week credit and for unemployment 3266
compensation benefits if the director finds that the claimant has 3267
left work voluntarily or has been discharged because of 3268
circumstances directly resulting from domestic abuse and any of 3269
the following applies:3270

       (a) The claimant reasonably fears future domestic abuse at or 3271
en route to the workplace.3272

       (b) The claimant needs to relocate to avoid future domestic 3273
abuse.3274

       (c) The claimant reasonably believes that leaving work is 3275
necessary for the safety of the claimant or the claimant's family.3276

       (2) When determining if a claimant has experienced domestic 3277
abuse for the purpose of receiving unemployment compensation 3278
benefits, the director shall require the claimant to provide 3279
documentation of domestic abuse that may include police or court 3280
records or other documentation of abuse from a shelter worker, 3281
attorney, member of the clergy, or medical or other professional 3282
from whom the claimant has sought assistance.3283

       (3) The director shall keep confidential any documentation or 3284
evidence of domestic abuse acquired by the director pursuant to 3285
this section unless the claimant gives written consent for 3286
disclosure.3287

       (C) Notwithstanding section 4141.29 of the Revised Code, an 3288
individual is eligible for waiting week credit and for 3289
unemployment compensation benefits if the director determines that 3290
the claimant was separated from employment due to compelling 3291
family circumstances.3292

       Sec. 4141.302. (A) As used in this section:3293

       (1) "Declining occupation" means either of the following 3294
occupations:3295

       (a) An occupation in which a lack of sufficient current 3296
demand in a claimant's labor market area exists for the 3297
occupational skills for which the claimant is qualified by 3298
training and experience or current physical or mental capacity, 3299
and the lack of employment opportunities is expected to continue 3300
for an extended period of time;3301

       (b) An occupation for which a seasonal variation in demand 3302
exists in the labor market and a claimant has no other skills for 3303
which a current demand exists.3304

       (2) "Extended benefits" and "regular benefits" have the same 3305
meanings as in section 4141.301 of the Revised Code.3306

       (3) "High-demand occupation" means an occupation in a labor 3307
market area where work opportunities are available and qualified 3308
applicants are lacking as determined by the use of available labor 3309
market information.3310

       (4) "Similar stipend" means an amount provided under a 3311
program with similar aims, such as providing training to increase 3312
employability, as the program described in division (B)(3) of this 3313
section.3314

       (B) A claimant who otherwise is eligible for regular benefits 3315
is eligible to receive training extension benefits if the director 3316
of job and family services determines that the claimant satisfies 3317
all of the following criteria:3318

       (1) The claimant is unemployed.3319

       (2) The claimant has exhausted all rights to regular 3320
benefits, all rights to extended benefits, and all rights to 3321
benefits under section 2002 of division B, title n, known as "The 3322
Assistance for Unemployed Workers and Struggling Families Act" of 3323
the "American Recovery and Reinvestment Act of 2009," Pub. L. No. 3324
111-5, 123 Stat. 115, as amended.3325

       (3) The claimant is enrolled in a training program approved 3326
by the director or in a job training program authorized under the 3327
"Workforce Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801 3328
et seq., as amended; except that the training program must prepare 3329
the claimant for entry into a high-demand occupation if the 3330
director determines that the claimant separated from a declining 3331
occupation or has been involuntarily and indefinitely separated 3332
from employment as a result of a permanent reduction of operations 3333
at the claimant's place of employment.3334

       (4) The claimant is making satisfactory progress to complete 3335
the training as determined by the director.3336

       (C) The amount of a claimant's weekly training extension 3337
benefit shall equal the claimant's weekly benefit amount as 3338
determined for the most recent benefit year, less any deductible 3339
income as determined under section 4141.31 of the Revised Code and 3340
any reduction required by division (D) of this section. The total 3341
amount of training extension benefits payable to a claimant shall 3342
be equal to twenty-six times the claimant's average weekly benefit 3343
amount for the most recent benefit year. A claimant who is 3344
receiving training extension benefits shall not be denied training 3345
extension benefits because the claimant may not satisfy the 3346
requirements of division (A)(4) or (5) of section 4141.29 of the 3347
Revised Code. The director shall charge any training extension 3348
benefits paid pursuant to this section to the mutualized account 3349
created in section 4141.25 of the Revised Code and shall not 3350
charge an employer's account for any training extension benefits 3351
paid to a claimant.3352

       (D) The amount of a claimant's weekly training extension 3353
benefit shall be reduced by the amount of any similar stipend or 3354
other training allowances for nontraining costs received by the 3355
claimant for the week that the weekly training extension benefit 3356
is due to the claimant.3357

       Sec. 4141.50.  (A) There is hereby created the short-time 3358
compensation program. An employer who wishes to participate in the 3359
program shall submit, on an application form provided by the 3360
director of job and family services, a plan to the director that 3361
satisfies the requirements listed in section 4141.51 of the 3362
Revised Code. If an employee the employer covers under the plan is 3363
subject to a collective bargaining agreement, the employer shall 3364
have the employee's collective bargaining agent approve the plan 3365
in writing. The written approval shall include a statement as to 3366
whether the agent believes the implementation of the plan is 3367
consistent with federal law. The employer shall submit that 3368
approval to the director with the employer's proposed plan.3369

       (B) The director may adopt rules as the director determines 3370
necessary, including additional plan requirements, to administer 3371
the short-time compensation program in accordance with any 3372
guidance issued by the United States secretary of labor with 3373
respect to the short-time compensation program.3374

       Sec. 4141.51.  (A) The director of job and family services 3375
shall approve a short-time compensation plan submitted by an 3376
employer under section 4141.50 of the Revised Code in which the 3377
employer does all of the following:3378

       (1) Identifies the specific affected unit or units to which 3379
the plan will apply, including the number of full-time or 3380
part-time workers in each affected unit and the percentage of 3381
workers in each affected unit who are to be covered by the plan;3382

       (2) Identifies in the plan the employees in the affected unit 3383
by name, social security number, the employer's unemployment tax 3384
identification number, and any other information required by the 3385
director to identify plan participants;3386

       (3) Identifies the normal weekly hours of work for each 3387
employee in the affected unit or units identified in the plan;3388

       (4) Includes the specific percentage by which the hours of 3389
each employee in the affected unit or units will be reduced, which 3390
shall be at least ten per cent but not more than sixty per cent;3391

       (5) Includes a certification by the employer that if the 3392
employer provides fringe benefits, the employer will continue to 3393
provide fringe benefits to participating employees under the same 3394
terms and conditions as though the normal weekly hours of work of 3395
those employees had not been reduced, or to the same extent as the 3396
benefits are provided to other employees not participating in the 3397
short-time compensation program;3398

       (6) Includes a certification by the employer that the 3399
implementation of a short-time compensation plan and resulting 3400
reduction in work hours is in lieu of temporary layoffs and 3401
includes an estimate of the number of layoffs that would have 3402
occurred absent the ability to participate in the short-time 3403
compensation plan.3404

       (7) Agrees in writing to furnish the director reports 3405
relating to the operation of the plan as the director requests in 3406
accordance with section 4141.54 of the Revised Code, to allow the 3407
director access to all records necessary to approve, disapprove, 3408
or evaluate the plan, and to follow any other directive that the 3409
director determines to be necessary to implement the plan and that 3410
is consistent with the requirements for plan approval provided in 3411
division (A) of this section;3412

       (8) Describes the manner in which the plan will be 3413
implemented, includes a plan to give advance notice, if feasible, 3414
to an employee whose normal weekly hours of work will be reduced 3415
under the plan, and, if advanced notice is not feasible, provides 3416
an explanation of why that notice is not feasible;3417

       (9) Identifies any week during the effective period of the 3418
plan for which the employer regularly provides no work, such as a 3419
holiday or other regularly scheduled plant closing;3420

       (10) Includes a certification by the employer that the 3421
employer's participation in the short-time compensation plan and 3422
the plan's implementation are consistent with the employer's 3423
obligations under applicable federal and state laws;3424

       (11) Includes the proposed effective date for the plan and a 3425
termination date, which shall be not more than twelve calendar 3426
months later than the proposed effective date;3427

       (12) Includes any other provision added to the application 3428
form by the director that the United States secretary of labor 3429
determines to be appropriate for purposes of a short-time 3430
compensation program.3431

       (B)(1) An employer shall not include in the employer's 3432
short-time compensation plan any employee employed by the employer 3433
on a seasonal, temporary, or intermittent basis.3434

       (2) As used in this division:3435

       (a) "Seasonal basis" has the same meaning as "seasonal 3436
employment" as defined in section 4141.33 of the Revised Code.3437

       (b) "Temporary basis" means any employment where an employee 3438
is expected to remain in a position for only a limited period of 3439
time or is hired by a temporary agency to fill a gap in the 3440
employer's workforce.3441

       (c) "Intermittent basis" means employment that is not 3442
continuous but may consist of periodic intervals of weekly work 3443
and intervals of no weekly work.3444

       (C) The director shall approve or deny a short-time 3445
compensation plan and shall send a written notice to the employer 3446
stating whether the director approved or denied the plan not later 3447
than thirty days after the director receives the plan. If the 3448
director denies approval of a short-time compensation plan, the 3449
director shall state the reasons for denying approval in the 3450
written notice sent to the employer. A decision denying a plan 3451
shall be final, but an employer subject to a denial shall be 3452
allowed to submit another short-time compensation plan for 3453
approval not earlier than fifteen days after the date of the 3454
denial. 3455

       Sec. 4141.52.  (A) A short-time compensation plan approved 3456
under section 4141.51 of the Revised Code takes effect on the 3457
later of the date the director of job and family services approves 3458
the plan or the date specified in the plan as the effective date. 3459
Except as otherwise provided in division (B) of this section, an 3460
approved plan expires on the termination date specified in the 3461
plan.3462

       (B) The director may terminate an approved plan for good 3463
cause at any time, including upon the request of any employees in 3464
the affected unit. A termination order issued under this division 3465
shall be in writing and shall specify the reasons for the 3466
revocation and the effective date of the revocation.3467

       (C) The director may periodically review the operation of 3468
each employer's short-time compensation plan to assure that no 3469
good cause exists for termination of the plan pursuant to division 3470
(B) of this section. For purposes of this section, good cause 3471
shall include any of the following:3472

       (1) An employer's failure to comply with assurances given in 3473
the plan;3474

       (2) An employer's unreasonable revision of productivity 3475
standards for the affected unit;3476

       (3) An employer's violation of any criteria on which approval 3477
of the plan was based;3478

       (4) Circumstances tending to defeat the intent and effective 3479
operation of the employer's short-time compensation plan.3480

       (D) An employer may terminate a short-time compensation plan 3481
at any time upon written notice to the director. Upon receipt of a 3482
termination notice from an employer, the director shall promptly 3483
notify each member of the affected unit of the plan's termination 3484
date.3485

       (E) An employer may submit a new application to participate 3486
in a short-time compensation plan at any time after the expiration 3487
or termination date of an existing plan. 3488

       Sec. 4141.53.  A participating employer may modify a 3489
short-time compensation plan approved under section 4141.51 of the 3490
Revised Code to meet changed conditions regarding the 3491
participating employer's business if the modification conforms to 3492
the basic provisions of the plan as approved by the director of 3493
job and family services. Before implementing the proposed change, 3494
the participating employer shall report the proposed change in 3495
writing to the director. If the director determines that the 3496
proposed change will result in a substantial modification of the 3497
plan approved under section 4141.51 of the Revised Code, the 3498
director shall reevaluate the proposed modified plan to determine 3499
whether the plan continues to satisfy the requirements listed in 3500
divisions (A)(1) to (12) of that section. The director shall 3501
approve or deny the modification in accordance with that section.3502

       The director shall approve or deny a proposed modification in 3503
writing, within thirty days after a modification request is 3504
received by the director. Any decision to approve or deny a 3505
proposed modification shall be promptly communicated to the 3506
employer. If a proposed modification is approved, the director 3507
shall notify the employer of the effective date of the 3508
modification.3509

       An employer is not required to request approval of a plan 3510
modification from the director if the change is not substantial, 3511
but the employer shall report every change to the director 3512
promptly and in writing. The director may terminate an employer's 3513
plan if the employer fails to comply with this reporting 3514
requirement.3515

       If an employer has reported a change to the director and has 3516
not requested approval of a plan modification, the director shall 3517
require the employer to request a modification to the plan if the 3518
director determines that the change is substantial.3519

       Approval of a modified plan does not affect the plan's 3520
original expiration date determined under section 4141.52 of the 3521
Revised Code.3522

       Sec. 4141.54.  Upon request of the director of job and family 3523
services, a participating employer shall monitor and evaluate the 3524
operation of the participating employer's short-time compensation 3525
plan and shall report the participating employer's findings to the 3526
director.3527

       Sec. 4141.55.  (A) Notwithstanding section 4141.01, 4141.29, 3528
4141.30, or 4141.31 of the Revised Code, an individual is 3529
unemployed for purposes of this chapter in a week during which the 3530
individual is a participating employee under a short-time 3531
compensation plan approved under section 4141.51 of the Revised 3532
Code that is in effect for that week.3533

       (B) An individual is eligible to receive short-time 3534
compensation benefits for a week in which the individual satisfies 3535
all of the following:3536

       (1) The individual is employed as a member of an affected 3537
unit subject to a shared-time compensation plan that was approved 3538
before that week and is in effect for that week.3539

       (2) The individual is able to work and is available for the 3540
individual's normal weekly hours of work with the short-time 3541
compensation employer, which may include, for purposes of this 3542
section, participating in training that is approved by the 3543
director to enhance job skills, such as employer-sponsored 3544
training, or training funded by the "Workforce Investment Act of 3545
1998," 112 Stat. 936, 29 U.S.C. 2832, as amended.3546

       (3) The individual's normal weekly hours of work have been 3547
reduced by at least ten per cent but not more than sixty per cent 3548
and the individual receives a corresponding reduction in wages.3549

       (4) The individual has been employed by an employer or 3550
employers subject to this chapter in at least twenty qualifying 3551
weeks within the individual's base period and has earned or been 3552
paid remuneration at an average weekly wage of not less than 3553
twenty-seven and one-half per cent of the statewide average weekly 3554
wage for those weeks.3555

       (5) The individual has been subject to a short-time 3556
compensation plan for at least one week prior to the week for 3557
which the short-time compensation benefits are to be paid, or 3558
otherwise satisfies the waiting period requirement of division (B) 3559
of section 4141.29 of the Revised Code for the individual's 3560
benefit year.3561

       (6) The individual otherwise satisfies the requirements of 3562
this chapter and is not otherwise disqualified from receiving 3563
unemployment compensation benefits.3564

       (C) Notwithstanding section 4141.29 of the Revised Code, the 3565
director of job and family services shall not deny short-time 3566
compensation benefits for a week to an otherwise eligible employee 3567
because the employee is unavailable for work other than as 3568
required under division (B)(2) of this section, is not actively 3569
searching for work, or refuses to apply for or to accept work with 3570
an employer other than with the employer who is implementing the 3571
plan.3572

       (D) The director shall pay an employee who is eligible for a 3573
weekly short-time compensation benefit in an amount equal to the 3574
employee's regular weekly benefit amount for a period of total 3575
unemployment as described in division (B) of section 4141.30 of 3576
the Revised Code multiplied by the nearest full percentage of 3577
reduction of the employee's normal weekly hours of work under the 3578
employer's short-time compensation plan. The director shall round 3579
the amount of a short-time compensation benefit that is not a 3580
multiple of one dollar to the next highest dollar amount.3581

       (E) An employee is not entitled to receive short-time 3582
compensation benefits and regular unemployment compensation 3583
benefits that, when combined, exceed the maximum total benefits 3584
payable to the employee in a benefit year under section 4141.30 of 3585
the Revised Code. An employee shall receive short-time 3586
compensation benefits for a maximum of fifty-two weeks regardless 3587
of whether the employee has received the total maximum benefits 3588
payable for the employee's benefit year. An individual who 3589
receives short-time compensation benefits is not entitled to 3590
receive benefits for partial unemployment under division (C) of 3591
section 4141.30 of the Revised Code for any week during which the 3592
individual participates in a short-time compensation plan. The 3593
director shall not pay an individual short-time compensation 3594
benefits for a week during which the individual performs paid work 3595
for the employer implementing the short-time compensation plan 3596
that exceeds the reduced hours established under the plan. Any 3597
short-time compensation benefits paid to an individual shall be 3598
deducted from the total benefits available to the individual for 3599
the individual's benefit year, as described in division (D) of 3600
section 4141.30 of the Revised Code.3601

       (F) An individual participating in a short-time compensation 3602
plan may participate in training, including a training program 3603
sponsored by the employer implementing the plan or funded under 3604
the federal "Workforce Development Act of 1998," 112 Stat. 936, 29 3605
U.S.C. 2801 et seq., as amended, to enhance job skills if the 3606
program is approved by the director.3607

       (G) An individual who has received all of the short-time 3608
compensation benefits and regular unemployment compensation 3609
benefits available in a benefit year is an individual who has 3610
exhausted regular benefits under section 4141.30 of the Revised 3611
Code and is entitled to receive extended benefits under section 3612
4141.301 of the Revised Code if the individual is otherwise 3613
eligible to receive benefits under that section.3614

       Sec. 4141.56.  (A) Notwithstanding section 4141.55 of the 3615
Revised Code:3616

       (1) An individual who is otherwise eligible to receive 3617
short-time compensation benefits pursuant to section 4141.55 of 3618
the Revised Code is ineligible to receive short-time compensation 3619
benefits for any week in which the employee performs work for a 3620
short-time compensation employer and another employer, and the 3621
individual's combined hours of work in the week exceed ninety per 3622
cent of the individual's normal weekly hours of work with the 3623
short-time employer.3624

       (2) An individual who is otherwise eligible to receive 3625
short-time compensation benefits pursuant to section 4141.55 of 3626
the Revised Code is eligible to receive a reduced benefit for any 3627
week in which the employee performs work for a short-time 3628
compensation employer and another employer, and the individual's 3629
combined hours of work in the week do not exceed ninety per cent 3630
of the individual's normal weekly hours of work with the 3631
short-time compensation employer. The reduced benefit amount shall 3632
be calculated by multiplying the employee's regular weekly benefit 3633
amount for a period of total unemployment, as described in 3634
division (B) of section 4141.30 of the Revised Code, by the 3635
nearest full percentage by which the employee's combined hours of 3636
work are less than the individual's normal weekly hours of work 3637
with the short-time compensation employer.3638

       (B) An individual who is not provided any work during a week 3639
by the individual's short-time compensation employer, or any other 3640
employer, and who is otherwise eligible, shall be paid benefits 3641
for being totally unemployed for that week.3642

       (C) An individual who is not provided any work by the 3643
individual's short-time compensation employer during a week, but 3644
who works for another employer during that time and is otherwise 3645
eligible may be paid benefits for being partially unemployed for 3646
that week.3647

       Sec. 4141.57.  Any short-time compensation benefits paid to 3648
an individual pursuant to sections 4141.55 and 4141.56 of the 3649
Revised Code shall be charged to an employer's account in 3650
accordance with division (D) of section 4141.24 of the Revised 3651
Code.3652

       Sec. 4301.20.  This chapter and Chapter 4303. of the Revised 3653
Code do not prevent the following:3654

       (A) The storage of intoxicating liquor in bonded warehouses, 3655
established in accordance with the acts of congress and under the 3656
regulation of the United States, located in this state, or the 3657
transportation of intoxicating liquor to or from bonded warehouses 3658
of the United States wherever located;3659

       (B) A bona fide resident of this state who is the owner of a 3660
warehouse receipt from obtaining or transporting to the resident's 3661
residence for the resident's own consumption and not for resale 3662
spirituous liquor stored in a government bonded warehouse in this 3663
state or in another state prior to December 1933, subject to such 3664
terms as are prescribed by the division of liquor control;3665

       (C) The manufacture of cider from fruit for the purpose of 3666
making vinegar, and nonintoxicating cider and fruit juices for use 3667
and sale;3668

       (D) A licensed physician or dentist from administering or 3669
dispensing intoxicating liquor or alcohol to a patient in good 3670
faith in the actual course of the practice of the physician's or 3671
dentist's profession;3672

       (E) The sale of alcohol to physicians, dentists, druggists, 3673
veterinary surgeons, manufacturers, hospitals, infirmaries, or 3674
medical or educational institutions using the alcohol for 3675
medicinal, mechanical, chemical, or scientific purposes;3676

       (F) The sale, gift, or keeping for sale by druggists and 3677
others of any of the medicinal preparations manufactured in 3678
accordance with the formulas prescribed by the United States 3679
Pharmacopoeia and National Formulary, patent or proprietary 3680
preparations, and other bona fide medicinal and technical 3681
preparations, which contain no more alcohol than is necessary to 3682
hold the medicinal agents in solution and to preserve the same, 3683
which are manufactured and sold as medicine and not as beverages, 3684
are unfit for use for beverage purposes, and the sale of which 3685
does not require the payment of a United States liquor dealer's 3686
tax;3687

       (G) The manufacture and sale of tinctures or of toilet, 3688
medicinal, and antiseptic preparations and solutions not intended 3689
for internal human use nor to be sold as beverages, and which are 3690
unfit for beverage purposes, if upon the outside of each bottle, 3691
box, or package of which there is printed in the English language, 3692
conspicuously and legibly, the quantity by volume of alcohol in 3693
the preparation or solution;3694

       (H) The manufacture and keeping for sale of the food products 3695
known as flavoring extracts when manufactured and sold for 3696
cooking, culinary, or flavoring purposes, and which are unfit for 3697
use for beverage purposes;3698

       (I) The lawful sale of wood alcohol or of ethyl alcohol for 3699
external use when combined with other substances as to make it 3700
unfit for internal use;3701

       (J) The manufacture, sale, and transport of ethanol or ethyl 3702
alcohol for use as fuel. As used in this division, "ethanol" has 3703
the same meaning as in section 5733.46122.075 of the Revised 3704
Code.3705

       (K) The purchase and importation into this state or the 3706
purchase at wholesale from A or B permit holders in this state of 3707
beer and intoxicating liquor for use in manufacturing processes of 3708
nonbeverage food products under terms prescribed by the division, 3709
provided that the terms prescribed by the division shall not 3710
increase the cost of the beer or intoxicating liquor to any 3711
person, firm, or corporation purchasing and importing it into this 3712
state or purchasing it from an A or B permit holder for that use;3713

       (L) Any resident of this state or any member of the armed 3714
forces of the United States, who has attained the age of 3715
twenty-one years, from bringing into this state, for personal use 3716
and not for resale, not more than one liter of spirituous liquor, 3717
four and one-half liters of wine, or two hundred eighty-eight 3718
ounces of beer in any thirty-day period, and the same is free of 3719
any tax consent fee when the resident or member of the armed 3720
forces physically possesses and accompanies the spirituous liquor, 3721
wine, or beer on returning from a foreign country, another state, 3722
or an insular possession of the United States;3723

       (M) Persons, at least twenty-one years of age, who collect 3724
ceramic commemorative bottles containing spirituous liquor that 3725
have unbroken federal tax stamps on them from selling or trading 3726
the bottles to other collectors. The bottles shall originally have 3727
been purchased at retail from the division, legally imported under 3728
division (L) of this section, or legally imported pursuant to a 3729
supplier registration issued by the division. The sales shall be 3730
for the purpose of exchanging a ceramic commemorative bottle 3731
between private collectors and shall not be for the purpose of 3732
selling the spirituous liquor for personal consumption. The sale 3733
or exchange authorized by this division shall not occur on the 3734
premises of any permit holder, shall not be made in connection 3735
with the business of any permit holder, and shall not be made in 3736
connection with any mercantile business.3737

       (N) The sale of beer or intoxicating liquor without a liquor 3738
permit at a private residence, not more than five times per 3739
calendar year at a residence address, at an event that has the 3740
following characteristics:3741

       (1) The event is for a charitable, benevolent, or political 3742
purpose, but shall not include any event the proceeds of which are 3743
for the profit or gain of any individual;3744

       (2) The event has in attendance not more than fifty people;3745

       (3) The event shall be for a period not to exceed twelve 3746
hours;3747

       (4) The sale of beer and intoxicating liquor at the event 3748
shall not take place between two-thirty a.m. and five-thirty a.m.;3749

       (5) No person under twenty-one years of age shall purchase or 3750
consume beer or intoxicating liquor at the event and no beer or 3751
intoxicating liquor shall be sold to any person under twenty-one 3752
years of age at the event; and3753

       (6) No person at the event shall sell or furnish beer or 3754
intoxicating liquor to an intoxicated person.3755

       (O) The possession or consumption of beer or intoxicating 3756
liquor by a person who is under twenty-one years of age and who is 3757
a student at an accredited college or university, provided that 3758
both of the following apply: 3759

       (1) The person is required to taste and expectorate the beer 3760
or intoxicating liquor for a culinary, food service, or 3761
hospitality course. 3762

       (2) The person is under the direct supervision of the 3763
instructor of the culinary, food service, or hospitality course.3764

       Sec. 5709.29.  (A) As used in this section:3765

       (1) "Distressed residential or commercial property" means 3766
real property that was or is used exclusively for residential or 3767
commercial purposes as classified in the county real property tax 3768
records and that is vacant, abandoned, foreclosed-upon, or located 3769
in a blighted area.3770

       (2) "Blighted area" has the same meaning as in section 1.08 3771
of the Revised Code.3772

       (3) "Qualifying improvement" means the increase in the 3773
assessed value of distressed residential or commercial property as 3774
shown on the tax list for a tax year after the tax year in which 3775
the owner of that property remodels the property.3776

       (4) "Remodel" means to make any change to a building that 3777
constitutes distressed residential or commercial property for the 3778
purpose of making it structurally more sound or more habitable or 3779
to improve its appearance.3780

       (B) If the owner of distressed residential or commercial 3781
property remodels the property within one year after first 3782
acquiring title to the property, the qualifying improvement is 3783
exempt from taxation until the tax year immediately following the 3784
tax year in which that owner transfers title to the property to 3785
another person.3786

       Sec. 5733.01.  (A) The tax provided by this chapter for 3787
domestic corporations shall be the amount charged against each 3788
corporation organized for profit under the laws of this state and 3789
each nonprofit corporation organized pursuant to Chapter 1729. of 3790
the Revised Code, except as provided in sections 5733.09 and 3791
5733.10 of the Revised Code, for the privilege of exercising its 3792
franchise during the calendar year in which that amount is 3793
payable, and the tax provided by this chapter for foreign 3794
corporations shall be the amount charged against each corporation 3795
organized for profit and each nonprofit corporation organized or 3796
operating in the same or similar manner as nonprofit corporations 3797
organized under Chapter 1729. of the Revised Code, under the laws 3798
of any state or country other than this state, except as provided 3799
in sections 5733.09 and 5733.10 of the Revised Code, for the 3800
privilege of doing business in this state, owning or using a part 3801
or all of its capital or property in this state, holding a 3802
certificate of compliance with the laws of this state authorizing 3803
it to do business in this state, or otherwise having nexus in or 3804
with this state under the Constitution of the United States, 3805
during the calendar year in which that amount is payable.3806

       (B) A corporation is subject to the tax imposed by section 3807
5733.06 of the Revised Code for each calendar year prior to 2014 3808
that it is so organized, doing business, owning or using a part or 3809
all of its capital or property, holding a certificate of 3810
compliance, or otherwise having nexus in or with this state under 3811
the Constitution of the United States, on the first day of January 3812
of that calendar year. No credit authorized by this chapter may be 3813
claimed for tax year 2014 or any tax year thereafter.3814

       (C) Any corporation subject to this chapter that is not 3815
subject to the federal income tax shall file its returns and 3816
compute its tax liability as required by this chapter in the same 3817
manner as if that corporation were subject to the federal income 3818
tax.3819

       (D) For purposes of this chapter, a federally chartered 3820
financial institution shall be deemed to be organized under the 3821
laws of the state within which its principal office is located.3822

       (E) For purposes of this chapter, any person, as defined in 3823
section 5701.01 of the Revised Code, shall be treated as a 3824
corporation if the person is classified for federal income tax 3825
purposes as an association taxable as a corporation, and an equity 3826
interest in the person shall be treated as capital stock of the 3827
person.3828

       (F) For the purposes of this chapter, "disregarded entity" 3829
has the same meaning as in division (D) of section 5745.01 of the 3830
Revised Code.3831

       (1) A person's interest in a disregarded entity, whether held 3832
directly or indirectly, shall be treated as the person's ownership 3833
of the assets and liabilities of the disregarded entity, and the 3834
income, including gain or loss, shall be included in the person's 3835
net income under this chapter.3836

       (2) Any sale, exchange, or other disposition of the person's 3837
interest in the disregarded entity, whether held directly or 3838
indirectly, shall be treated as a sale, exchange, or other 3839
disposition of the person's share of the disregarded entity's 3840
underlying assets or liabilities, and the gain or loss from such 3841
sale, exchange, or disposition shall be included in the person's 3842
net income under this chapter.3843

       (3) The disregarded entity's payroll, property, and sales 3844
factors shall be included in the person's factors.3845

       (G) The tax a corporation is required to pay under this 3846
chapter shall be as follows:3847

        (1)(a) For financial institutions, the greater of the minimum 3848
payment required under division (E) of section 5733.06 of the 3849
Revised Code or the difference between all taxes charged the 3850
financial institution under this chapter, without regard to 3851
division (G)(2) of this section, less any credits allowable 3852
against such tax.3853

       (b) A corporation satisfying the description in division 3854
(E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised 3855
Code, as that section existed before its amendment by H.B. 510 of 3856
the 129th general assembly, that is not a financial institution, 3857
insurance company, or dealer in intangibles is subject to the 3858
taxes imposed under this chapter as a corporation and not subject 3859
to tax as a financial institution, and shall pay the greater of 3860
the minimum payment required under division (E) of section 5733.06 3861
of the Revised Code or the difference between all the taxes 3862
charged under this chapter, without regard to division (G)(2) of 3863
this section, less any credits allowable against such tax.3864

        (2) For all corporations other than those persons described 3865
in division (G)(1)(a) or (b) of this section, the amount under 3866
division (G)(2)(a) of this section applicable to the tax year 3867
specified less the amount under division (G)(2)(b) of this 3868
section:3869

        (a)(i) For tax year 2005, the greater of the minimum payment 3870
required under division (E) of section 5733.06 of the Revised Code 3871
or the difference between all taxes charged the corporation under 3872
this chapter and any credits allowable against such tax;3873

        (ii) For tax year 2006, the greater of the minimum payment 3874
required under division (E) of section 5733.06 of the Revised Code 3875
or four-fifths of the difference between all taxes charged the 3876
corporation under this chapter and any credits allowable against 3877
such tax, except the qualifying pass-through entity tax credit 3878
described in division (A)(30) and the refundable credits described 3879
in divisions (A)(31) to (35) of section 5733.98 of the Revised 3880
Code;3881

        (iii) For tax year 2007, the greater of the minimum payment 3882
required under division (E) of section 5733.06 of the Revised Code 3883
or three-fifths of the difference between all taxes charged the 3884
corporation under this chapter and any credits allowable against 3885
such tax, except the qualifying pass-through entity tax credit 3886
described in division (A)(30) and the refundable credits described 3887
in divisions (A)(31) to (35) of section 5733.98 of the Revised 3888
Code;3889

        (iv) For tax year 2008, the greater of the minimum payment 3890
required under division (E) of section 5733.06 of the Revised Code 3891
or two-fifths of the difference between all taxes charged the 3892
corporation under this chapter and any credits allowable against 3893
such tax, except the qualifying pass-through entity tax credit 3894
described in division (A)(30) and the refundable credits described 3895
in divisions (A)(31) to (35) of section 5733.98 of the Revised 3896
Code;3897

        (v) For tax year 2009, the greater of the minimum payment 3898
required under division (E) of section 5733.06 of the Revised Code 3899
or one-fifth of the difference between all taxes charged the 3900
corporation under this chapter and any credits allowable against 3901
such tax, except the qualifying pass-through entity tax credit 3902
described in division (A)(30) and the refundable credits described 3903
in divisions (A)(31), (32), (33), and (34) of section 5733.98 of 3904
the Revised Code;3905

        (vi) For tax year 2010 and each tax year thereafter, no tax.3906

        (b) A corporation shall subtract from the amount calculated 3907
under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section 3908
any qualifying pass-through entity tax credit described in 3909
division (A)(30)(28) and any refundable credits described in 3910
divisions (A)(31)(29) to (35)(33) of section 5733.98 of the 3911
Revised Code to which the corporation is entitled. Any unused 3912
qualifying pass-through entity tax credit is not refundable.3913

        (c) For the purposes of computing the amount of a credit that 3914
may be carried forward to a subsequent tax year under division 3915
(G)(2) of this section, a credit is utilized against the tax for a 3916
tax year to the extent the credit applies against the tax for that 3917
tax year, even if the difference is then multiplied by the 3918
applicable fraction under division (G)(2)(a) of this section.3919

       (3) Nothing in division (G) of this section eliminates or 3920
reduces the tax imposed by section 5733.41 of the Revised Code on 3921
a qualifying pass-through entity.3922

       Sec. 5733.98.  (A) To provide a uniform procedure for 3923
calculating the amount of tax imposed by section 5733.06 of the 3924
Revised Code that is due under this chapter, a taxpayer shall 3925
claim any credits to which it is entitled in the following order, 3926
except as otherwise provided in section 5733.058 of the Revised 3927
Code:3928

       (1) For tax year 2005, the credit for taxes paid by a 3929
qualifying pass-through entity allowed under section 5733.0611 of 3930
the Revised Code;3931

       (2) The credit allowed for financial institutions under 3932
section 5733.45 of the Revised Code;3933

       (3) The credit for qualifying affiliated groups under section 3934
5733.068 of the Revised Code;3935

       (4) The subsidiary corporation credit under section 5733.067 3936
of the Revised Code;3937

       (5) The savings and loan assessment credit under section 3938
5733.063 of the Revised Code;3939

       (6) The credit for recycling and litter prevention donations 3940
under section 5733.064 of the Revised Code;3941

       (7) The credit for employers that enter into agreements with 3942
child day-care centers under section 5733.36 of the Revised Code;3943

       (8) The credit for employers that reimburse employee child 3944
care expenses under section 5733.38 of the Revised Code;3945

       (9) The credit for maintaining railroad active grade crossing 3946
warning devices under section 5733.43 of the Revised Code;3947

       (10) The credit for purchases of lights and reflectors under 3948
section 5733.44 of the Revised Code;3949

       (11) The nonrefundable job retention credit under division 3950
(B) of section 5733.0610 of the Revised Code;3951

       (12) The credit for tax years 2008 and 2009 for selling 3952
alternative fuel under section 5733.48 of the Revised Code;3953

       (13) The second credit for purchases of new manufacturing 3954
machinery and equipment under section 5733.33 of the Revised Code;3955

       (14)(13) The job training credit under section 5733.42 of the 3956
Revised Code;3957

       (15)(14) The credit for qualified research expenses under 3958
section 5733.351 of the Revised Code;3959

       (16)(15) The enterprise zone credit under section 5709.66 of 3960
the Revised Code;3961

       (17)(16) The credit for the eligible costs associated with a 3962
voluntary action under section 5733.34 of the Revised Code;3963

       (18)(17) The credit for employers that establish on-site 3964
child day-care centers under section 5733.37 of the Revised Code;3965

       (19) The ethanol plant investment credit under section 3966
5733.46 of the Revised Code;3967

       (20)(18) The credit for purchases of qualifying grape 3968
production property under section 5733.32 of the Revised Code;3969

       (21)(19) The export sales credit under section 5733.069 of 3970
the Revised Code;3971

       (22)(20) The credit for research and development and 3972
technology transfer investors under section 5733.35 of the Revised 3973
Code;3974

       (23)(21) The enterprise zone credits under section 5709.65 of 3975
the Revised Code;3976

       (24)(22) The credit for using Ohio coal under section 5733.39 3977
of the Revised Code;3978

       (25)(23) The credit for purchases of qualified low-income 3979
community investments under section 5733.58 of the Revised Code;3980

       (26)(24) The credit for small telephone companies under 3981
section 5733.57 of the Revised Code;3982

       (27)(25) The credit for eligible nonrecurring 9-1-1 charges 3983
under section 5733.55 of the Revised Code;3984

       (28)(26) For tax year 2005, the credit for providing programs 3985
to aid the communicatively impaired under division (A) of section 3986
5733.56 of the Revised Code;3987

       (29)(27) The research and development credit under section 3988
5733.352 of the Revised Code;3989

       (30)(28) For tax years 2006 and subsequent tax years, the 3990
credit for taxes paid by a qualifying pass-through entity allowed 3991
under section 5733.0611 of the Revised Code;3992

       (31)(29) The refundable credit for rehabilitating a historic 3993
building under section 5733.47 of the Revised Code;3994

       (32)(30) The refundable jobs creation credit or job retention 3995
credit under division (A) of section 5733.0610 of the Revised 3996
Code;3997

       (33)(31) The refundable credit for tax withheld under 3998
division (B)(2) of section 5747.062 of the Revised Code;3999

       (34)(32) The refundable credit under section 5733.49 of the 4000
Revised Code for losses on loans made to the Ohio venture capital 4001
program under sections 150.01 to 150.10 of the Revised Code;4002

       (35)(33) For tax years 2006, 2007, and 2008, the refundable 4003
credit allowable under division (B) of section 5733.56 of the 4004
Revised Code;4005

       (36)(34) The refundable motion picture production credit 4006
under section 5733.59 of the Revised Code.4007

       (B) For any credit except the refundable credits enumerated 4008
in this section, the amount of the credit for a tax year shall not 4009
exceed the tax due after allowing for any other credit that 4010
precedes it in the order required under this section. Any excess 4011
amount of a particular credit may be carried forward if authorized 4012
under the section creating that credit.4013

       Sec. 5739.01.  As used in this chapter:4014

       (A) "Person" includes individuals, receivers, assignees, 4015
trustees in bankruptcy, estates, firms, partnerships, 4016
associations, joint-stock companies, joint ventures, clubs, 4017
societies, corporations, the state and its political subdivisions, 4018
and combinations of individuals of any form.4019

       (B) "Sale" and "selling" include all of the following 4020
transactions for a consideration in any manner, whether absolutely 4021
or conditionally, whether for a price or rental, in money or by 4022
exchange, and by any means whatsoever:4023

       (1) All transactions by which title or possession, or both, 4024
of tangible personal property, is or is to be transferred, or a 4025
license to use or consume tangible personal property is or is to 4026
be granted;4027

       (2) All transactions by which lodging by a hotel is or is to 4028
be furnished to transient guests;4029

       (3) All transactions by which:4030

       (a) An item of tangible personal property is or is to be 4031
repaired, except property, the purchase of which would not be 4032
subject to the tax imposed by section 5739.02 of the Revised Code;4033

       (b) An item of tangible personal property is or is to be 4034
installed, except property, the purchase of which would not be 4035
subject to the tax imposed by section 5739.02 of the Revised Code 4036
or property that is or is to be incorporated into and will become 4037
a part of a production, transmission, transportation, or 4038
distribution system for the delivery of a public utility service;4039

       (c) The service of washing, cleaning, waxing, polishing, or 4040
painting a motor vehicle is or is to be furnished;4041

       (d) Until August 1, 2003, industrial laundry cleaning 4042
services are or are to be provided and, on and after August 1, 4043
2003, laundry and dry cleaning services are or are to be provided;4044

       (e) Automatic data processing, computer services, or 4045
electronic information services are or are to be provided for use 4046
in business when the true object of the transaction is the receipt 4047
by the consumer of automatic data processing, computer services, 4048
or electronic information services rather than the receipt of 4049
personal or professional services to which automatic data 4050
processing, computer services, or electronic information services 4051
are incidental or supplemental. Notwithstanding any other 4052
provision of this chapter, such transactions that occur between 4053
members of an affiliated group are not sales. An "affiliated 4054
group" means two or more persons related in such a way that one 4055
person owns or controls the business operation of another member 4056
of the group. In the case of corporations with stock, one 4057
corporation owns or controls another if it owns more than fifty 4058
per cent of the other corporation's common stock with voting 4059
rights.4060

       (f) Telecommunications service, including prepaid calling 4061
service, prepaid wireless calling service, or ancillary service, 4062
is or is to be provided, but not including coin-operated telephone 4063
service;4064

       (g) Landscaping and lawn care service is or is to be 4065
provided;4066

       (h) Private investigation and security service is or is to be 4067
provided;4068

       (i) Information services or tangible personal property is 4069
provided or ordered by means of a nine hundred telephone call;4070

       (j) Building maintenance and janitorial service is or is to 4071
be provided;4072

       (k) Employment service is or is to be provided;4073

       (l) Employment placement service is or is to be provided;4074

       (m) Exterminating service is or is to be provided;4075

       (n) Physical fitness facility service is or is to be 4076
provided;4077

       (o) Recreation and sports club service is or is to be 4078
provided;4079

       (p) On and after August 1, 2003, satellite broadcasting 4080
service is or is to be provided;4081

       (q) On and after August 1, 2003, personal care service is or 4082
is to be provided to an individual. As used in this division, 4083
"personal care service" includes skin care, the application of 4084
cosmetics, manicuring, pedicuring, hair removal, tattooing, body 4085
piercing, tanning, massage, and other similar services. "Personal 4086
care service" does not include a service provided by or on the 4087
order of a licensed physician or licensed chiropractor, or the 4088
cutting, coloring, or styling of an individual's hair.4089

       (r) On and after August 1, 2003, the transportation of 4090
persons by motor vehicle or aircraft is or is to be provided, when 4091
the transportation is entirely within this state, except for 4092
transportation provided by an ambulance service, by a transit bus, 4093
as defined in section 5735.01 of the Revised Code, and 4094
transportation provided by a citizen of the United States holding 4095
a certificate of public convenience and necessity issued under 49 4096
U.S.C. 41102;4097

       (s) On and after August 1, 2003, motor vehicle towing service 4098
is or is to be provided. As used in this division, "motor vehicle 4099
towing service" means the towing or conveyance of a wrecked, 4100
disabled, or illegally parked motor vehicle.4101

        (t) On and after August 1, 2003, snow removal service is or 4102
is to be provided. As used in this division, "snow removal 4103
service" means the removal of snow by any mechanized means, but 4104
does not include the providing of such service by a person that 4105
has less than five thousand dollars in sales of such service 4106
during the calendar year.4107

       (u) Electronic publishing service is or is to be provided to 4108
a consumer for use in business, except that such transactions 4109
occurring between members of an affiliated group, as defined in 4110
division (B)(3)(e) of this section, are not sales.4111

       (4) All transactions by which printed, imprinted, 4112
overprinted, lithographic, multilithic, blueprinted, photostatic, 4113
or other productions or reproductions of written or graphic matter 4114
are or are to be furnished or transferred;4115

       (5) The production or fabrication of tangible personal 4116
property for a consideration for consumers who furnish either 4117
directly or indirectly the materials used in the production of 4118
fabrication work; and include the furnishing, preparing, or 4119
serving for a consideration of any tangible personal property 4120
consumed on the premises of the person furnishing, preparing, or 4121
serving such tangible personal property. Except as provided in 4122
section 5739.03 of the Revised Code, a construction contract 4123
pursuant to which tangible personal property is or is to be 4124
incorporated into a structure or improvement on and becoming a 4125
part of real property is not a sale of such tangible personal 4126
property. The construction contractor is the consumer of such 4127
tangible personal property, provided that the sale and 4128
installation of carpeting, the sale and installation of 4129
agricultural land tile, the sale and erection or installation of 4130
portable grain bins, or the provision of landscaping and lawn care 4131
service and the transfer of property as part of such service is 4132
never a construction contract.4133

       As used in division (B)(5) of this section:4134

       (a) "Agricultural land tile" means fired clay or concrete 4135
tile, or flexible or rigid perforated plastic pipe or tubing, 4136
incorporated or to be incorporated into a subsurface drainage 4137
system appurtenant to land used or to be used primarily in 4138
production by farming, agriculture, horticulture, or floriculture. 4139
The term does not include such materials when they are or are to 4140
be incorporated into a drainage system appurtenant to a building 4141
or structure even if the building or structure is used or to be 4142
used in such production.4143

       (b) "Portable grain bin" means a structure that is used or to 4144
be used by a person engaged in farming or agriculture to shelter 4145
the person's grain and that is designed to be disassembled without 4146
significant damage to its component parts.4147

       (6) All transactions in which all of the shares of stock of a 4148
closely held corporation are transferred, or an ownership interest 4149
in a pass-through entity, as defined in section 5733.04 of the 4150
Revised Code, is transferred, if the corporation or pass-through 4151
entity is not engaging in business and its entire assets consist 4152
of boats, planes, motor vehicles, or other tangible personal 4153
property operated primarily for the use and enjoyment of the 4154
shareholders or owners;4155

       (7) All transactions in which a warranty, maintenance or 4156
service contract, or similar agreement by which the vendor of the 4157
warranty, contract, or agreement agrees to repair or maintain the 4158
tangible personal property of the consumer is or is to be 4159
provided;4160

       (8) The transfer of copyrighted motion picture films used 4161
solely for advertising purposes, except that the transfer of such 4162
films for exhibition purposes is not a sale;4163

       (9) On and after August 1, 2003, all transactions by which 4164
tangible personal property is or is to be stored, except such 4165
property that the consumer of the storage holds for sale in the 4166
regular course of business;4167

       (10) All transactions in which "guaranteed auto protection" 4168
is provided whereby a person promises to pay to the consumer the 4169
difference between the amount the consumer receives from motor 4170
vehicle insurance and the amount the consumer owes to a person 4171
holding title to or a lien on the consumer's motor vehicle in the 4172
event the consumer's motor vehicle suffers a total loss under the 4173
terms of the motor vehicle insurance policy or is stolen and not 4174
recovered, if the protection and its price are included in the 4175
purchase or lease agreement;4176

       (11)(a) Except as provided in division (B)(11)(b) of this 4177
section, on and after October 1, 2009, all transactions by which 4178
health care services are paid for, reimbursed, provided, 4179
delivered, arranged for, or otherwise made available by a medicaid 4180
health insuring corporation pursuant to the corporation's contract 4181
with the state.4182

       (b) If the centers for medicare and medicaid services of the 4183
United States department of health and human services determines 4184
that the taxation of transactions described in division (B)(11)(a) 4185
of this section constitutes an impermissible health care-related 4186
tax under section 1903(w) of the "Social Security Act," 49 Stat. 4187
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations 4188
adopted thereunder, the director of job and family services shall 4189
notify the tax commissioner of that determination. Beginning with 4190
the first day of the month following that notification, the 4191
transactions described in division (B)(11)(a) of this section are 4192
not sales for the purposes of this chapter or Chapter 5741. of the 4193
Revised Code. The tax commissioner shall order that the collection 4194
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026, 4195
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code 4196
shall cease for transactions occurring on or after that date.4197

       Except as provided in this section, "sale" and "selling" do 4198
not include transfers of interest in leased property where the 4199
original lessee and the terms of the original lease agreement 4200
remain unchanged, or professional, insurance, or personal service 4201
transactions that involve the transfer of tangible personal 4202
property as an inconsequential element, for which no separate 4203
charges are made.4204

       (C) "Vendor" means the person providing the service or by 4205
whom the transfer effected or license given by a sale is or is to 4206
be made or given and, for sales described in division (B)(3)(i) of 4207
this section, the telecommunications service vendor that provides 4208
the nine hundred telephone service; if two or more persons are 4209
engaged in business at the same place of business under a single 4210
trade name in which all collections on account of sales by each 4211
are made, such persons shall constitute a single vendor.4212

       Physicians, dentists, hospitals, and veterinarians who are 4213
engaged in selling tangible personal property as received from 4214
others, such as eyeglasses, mouthwashes, dentifrices, or similar 4215
articles, are vendors. Veterinarians who are engaged in 4216
transferring to others for a consideration drugs, the dispensing 4217
of which does not require an order of a licensed veterinarian or 4218
physician under federal law, are vendors.4219

       (D)(1) "Consumer" means the person for whom the service is 4220
provided, to whom the transfer effected or license given by a sale 4221
is or is to be made or given, to whom the service described in 4222
division (B)(3)(f) or (i) of this section is charged, or to whom 4223
the admission is granted.4224

       (2) Physicians, dentists, hospitals, and blood banks operated 4225
by nonprofit institutions and persons licensed to practice 4226
veterinary medicine, surgery, and dentistry are consumers of all 4227
tangible personal property and services purchased by them in 4228
connection with the practice of medicine, dentistry, the rendition 4229
of hospital or blood bank service, or the practice of veterinary 4230
medicine, surgery, and dentistry. In addition to being consumers 4231
of drugs administered by them or by their assistants according to 4232
their direction, veterinarians also are consumers of drugs that 4233
under federal law may be dispensed only by or upon the order of a 4234
licensed veterinarian or physician, when transferred by them to 4235
others for a consideration to provide treatment to animals as 4236
directed by the veterinarian.4237

       (3) A person who performs a facility management, or similar 4238
service contract for a contractee is a consumer of all tangible 4239
personal property and services purchased for use in connection 4240
with the performance of such contract, regardless of whether title 4241
to any such property vests in the contractee. The purchase of such 4242
property and services is not subject to the exception for resale 4243
under division (E)(1) of this section.4244

       (4)(a) In the case of a person who purchases printed matter 4245
for the purpose of distributing it or having it distributed to the 4246
public or to a designated segment of the public, free of charge, 4247
that person is the consumer of that printed matter, and the 4248
purchase of that printed matter for that purpose is a sale.4249

       (b) In the case of a person who produces, rather than 4250
purchases, printed matter for the purpose of distributing it or 4251
having it distributed to the public or to a designated segment of 4252
the public, free of charge, that person is the consumer of all 4253
tangible personal property and services purchased for use or 4254
consumption in the production of that printed matter. That person 4255
is not entitled to claim exemption under division (B)(42)(f) of 4256
section 5739.02 of the Revised Code for any material incorporated 4257
into the printed matter or any equipment, supplies, or services 4258
primarily used to produce the printed matter.4259

       (c) The distribution of printed matter to the public or to a 4260
designated segment of the public, free of charge, is not a sale to 4261
the members of the public to whom the printed matter is 4262
distributed or to any persons who purchase space in the printed 4263
matter for advertising or other purposes.4264

       (5) A person who makes sales of any of the services listed in 4265
division (B)(3) of this section is the consumer of any tangible 4266
personal property used in performing the service. The purchase of 4267
that property is not subject to the resale exception under 4268
division (E)(1) of this section.4269

       (6) A person who engages in highway transportation for hire 4270
is the consumer of all packaging materials purchased by that 4271
person and used in performing the service, except for packaging 4272
materials sold by such person in a transaction separate from the 4273
service.4274

       (7) In the case of a transaction for health care services 4275
under division (B)(11) of this section, a medicaid health insuring 4276
corporation is the consumer of such services. The purchase of such 4277
services by a medicaid health insuring corporation is not subject 4278
to the exception for resale under division (E)(1) of this section 4279
or to the exemptions provided under divisions (B)(12), (18), (19), 4280
and (22) of section 5739.02 of the Revised Code.4281

       (E) "Retail sale" and "sales at retail" include all sales, 4282
except those in which the purpose of the consumer is to resell the 4283
thing transferred or benefit of the service provided, by a person 4284
engaging in business, in the form in which the same is, or is to 4285
be, received by the person.4286

       (F) "Business" includes any activity engaged in by any person 4287
with the object of gain, benefit, or advantage, either direct or 4288
indirect. "Business" does not include the activity of a person in 4289
managing and investing the person's own funds.4290

       (G) "Engaging in business" means commencing, conducting, or 4291
continuing in business, and liquidating a business when the 4292
liquidator thereof holds itself out to the public as conducting 4293
such business. Making a casual sale is not engaging in business.4294

       (H)(1)(a) "Price," except as provided in divisions (H)(2), 4295
(3), and (4) of this section, means the total amount of 4296
consideration, including cash, credit, property, and services, for 4297
which tangible personal property or services are sold, leased, or 4298
rented, valued in money, whether received in money or otherwise, 4299
without any deduction for any of the following:4300

       (i) The vendor's cost of the property sold;4301

       (ii) The cost of materials used, labor or service costs, 4302
interest, losses, all costs of transportation to the vendor, all 4303
taxes imposed on the vendor, including the tax imposed under 4304
Chapter 5751. of the Revised Code, and any other expense of the 4305
vendor;4306

       (iii) Charges by the vendor for any services necessary to 4307
complete the sale;4308

       (iv) On and after August 1, 2003, delivery charges. As used 4309
in this division, "delivery charges" means charges by the vendor 4310
for preparation and delivery to a location designated by the 4311
consumer of tangible personal property or a service, including 4312
transportation, shipping, postage, handling, crating, and packing.4313

       (v) Installation charges;4314

       (vi) Credit for any trade-in.4315

       (b) "Price" includes consideration received by the vendor 4316
from a third party, if the vendor actually receives the 4317
consideration from a party other than the consumer, and the 4318
consideration is directly related to a price reduction or discount 4319
on the sale; the vendor has an obligation to pass the price 4320
reduction or discount through to the consumer; the amount of the 4321
consideration attributable to the sale is fixed and determinable 4322
by the vendor at the time of the sale of the item to the consumer; 4323
and one of the following criteria is met:4324

       (i) The consumer presents a coupon, certificate, or other 4325
document to the vendor to claim a price reduction or discount 4326
where the coupon, certificate, or document is authorized, 4327
distributed, or granted by a third party with the understanding 4328
that the third party will reimburse any vendor to whom the coupon, 4329
certificate, or document is presented;4330

       (ii) The consumer identifies the consumer's self to the 4331
seller as a member of a group or organization entitled to a price 4332
reduction or discount. A preferred customer card that is available 4333
to any patron does not constitute membership in such a group or 4334
organization.4335

       (iii) The price reduction or discount is identified as a 4336
third party price reduction or discount on the invoice received by 4337
the consumer, or on a coupon, certificate, or other document 4338
presented by the consumer.4339

       (c) "Price" does not include any of the following:4340

       (i) Discounts, including cash, term, or coupons that are not 4341
reimbursed by a third party that are allowed by a vendor and taken 4342
by a consumer on a sale;4343

       (ii) Interest, financing, and carrying charges from credit 4344
extended on the sale of tangible personal property or services, if 4345
the amount is separately stated on the invoice, bill of sale, or 4346
similar document given to the purchaser;4347

       (iii) Any taxes legally imposed directly on the consumer that 4348
are separately stated on the invoice, bill of sale, or similar 4349
document given to the consumer. For the purpose of this division, 4350
the tax imposed under Chapter 5751. of the Revised Code is not a 4351
tax directly on the consumer, even if the tax or a portion thereof 4352
is separately stated.4353

       (iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this 4354
section, any discount allowed by an automobile manufacturer to its 4355
employee, or to the employee of a supplier, on the purchase of a 4356
new motor vehicle from a new motor vehicle dealer in this state.4357

       (v) The dollar value of a gift card that is not sold by a 4358
vendor or purchased by a consumer and that is redeemed by the 4359
consumer in purchasing tangible personal property or services if 4360
the vendor is not reimbursed and does not receive compensation 4361
from a third party to cover all or part of the gift card value. 4362
For the purposes of this division, a gift card is not sold by a 4363
vendor or purchased by a consumer if it is distributed pursuant to 4364
an awards, loyalty, or promotional program. Past and present 4365
purchases of tangible personal property or services by the 4366
consumer shall not be treated as consideration exchanged for a 4367
gift card.4368

       (2) In the case of a sale of any new motor vehicle by a new 4369
motor vehicle dealer, as defined in section 4517.01 of the Revised 4370
Code, in which another motor vehicle is accepted by the dealer as 4371
part of the consideration received, "price" has the same meaning 4372
as in division (H)(1) of this section, reduced by the credit 4373
afforded the consumer by the dealer for the motor vehicle received 4374
in trade.4375

       (3) In the case of a sale of any watercraft or outboard motor 4376
by a watercraft dealer licensed in accordance with section 4377
1547.543 of the Revised Code, in which another watercraft, 4378
watercraft and trailer, or outboard motor is accepted by the 4379
dealer as part of the consideration received, "price" has the same 4380
meaning as in division (H)(1) of this section, reduced by the 4381
credit afforded the consumer by the dealer for the watercraft, 4382
watercraft and trailer, or outboard motor received in trade. As 4383
used in this division, "watercraft" includes an outdrive unit 4384
attached to the watercraft.4385

       (4) In the case of transactions for health care services 4386
under division (B)(11) of this section, "price" means the amount 4387
of managed care premiums received each month by a medicaid health 4388
insuring corporation.4389

       (I) "Receipts" means the total amount of the prices of the 4390
sales of vendors, provided that the dollar value of gift cards 4391
distributed pursuant to an awards, loyalty, or promotional 4392
program, and cash discounts allowed and taken on sales at the time 4393
they are consummated are not included, minus any amount deducted 4394
as a bad debt pursuant to section 5739.121 of the Revised Code. 4395
"Receipts" does not include the sale price of property returned or 4396
services rejected by consumers when the full sale price and tax 4397
are refunded either in cash or by credit.4398

       (J) "Place of business" means any location at which a person 4399
engages in business.4400

       (K) "Premises" includes any real property or portion thereof 4401
upon which any person engages in selling tangible personal 4402
property at retail or making retail sales and also includes any 4403
real property or portion thereof designated for, or devoted to, 4404
use in conjunction with the business engaged in by such person.4405

       (L) "Casual sale" means a sale of an item of tangible 4406
personal property that was obtained by the person making the sale, 4407
through purchase or otherwise, for the person's own use and was 4408
previously subject to any state's taxing jurisdiction on its sale 4409
or use, and includes such items acquired for the seller's use that 4410
are sold by an auctioneer employed directly by the person for such 4411
purpose, provided the location of such sales is not the 4412
auctioneer's permanent place of business. As used in this 4413
division, "permanent place of business" includes any location 4414
where such auctioneer has conducted more than two auctions during 4415
the year.4416

       (M) "Hotel" means every establishment kept, used, maintained, 4417
advertised, or held out to the public to be a place where sleeping 4418
accommodations are offered to guests, in which five or more rooms 4419
are used for the accommodation of such guests, whether the rooms 4420
are in one or several structures, except as otherwise provided in 4421
division (G) of section 5739.09 of the Revised Code.4422

       (N) "Transient guests" means persons occupying a room or 4423
rooms for sleeping accommodations for less than thirty consecutive 4424
days.4425

       (O) "Making retail sales" means the effecting of transactions 4426
wherein one party is obligated to pay the price and the other 4427
party is obligated to provide a service or to transfer title to or 4428
possession of the item sold. "Making retail sales" does not 4429
include the preliminary acts of promoting or soliciting the retail 4430
sales, other than the distribution of printed matter which 4431
displays or describes and prices the item offered for sale, nor 4432
does it include delivery of a predetermined quantity of tangible 4433
personal property or transportation of property or personnel to or 4434
from a place where a service is performed.4435

       (P) "Used directly in the rendition of a public utility 4436
service" means that property that is to be incorporated into and 4437
will become a part of the consumer's production, transmission, 4438
transportation, or distribution system and that retains its 4439
classification as tangible personal property after such 4440
incorporation; fuel or power used in the production, transmission, 4441
transportation, or distribution system; and tangible personal 4442
property used in the repair and maintenance of the production, 4443
transmission, transportation, or distribution system, including 4444
only such motor vehicles as are specially designed and equipped 4445
for such use. Tangible personal property and services used 4446
primarily in providing highway transportation for hire are not 4447
used directly in the rendition of a public utility service. In 4448
this definition, "public utility" includes a citizen of the United 4449
States holding, and required to hold, a certificate of public 4450
convenience and necessity issued under 49 U.S.C. 41102.4451

       (Q) "Refining" means removing or separating a desirable 4452
product from raw or contaminated materials by distillation or 4453
physical, mechanical, or chemical processes.4454

       (R) "Assembly" and "assembling" mean attaching or fitting 4455
together parts to form a product, but do not include packaging a 4456
product.4457

       (S) "Manufacturing operation" means a process in which 4458
materials are changed, converted, or transformed into a different 4459
state or form from which they previously existed and includes 4460
refining materials, assembling parts, and preparing raw materials 4461
and parts by mixing, measuring, blending, or otherwise committing 4462
such materials or parts to the manufacturing process. 4463
"Manufacturing operation" does not include packaging.4464

       (T) "Fiscal officer" means, with respect to a regional 4465
transit authority, the secretary-treasurer thereof, and with 4466
respect to a county that is a transit authority, the fiscal 4467
officer of the county transit board if one is appointed pursuant 4468
to section 306.03 of the Revised Code or the county auditor if the 4469
board of county commissioners operates the county transit system.4470

       (U) "Transit authority" means a regional transit authority 4471
created pursuant to section 306.31 of the Revised Code or a county 4472
in which a county transit system is created pursuant to section 4473
306.01 of the Revised Code. For the purposes of this chapter, a 4474
transit authority must extend to at least the entire area of a 4475
single county. A transit authority that includes territory in more 4476
than one county must include all the area of the most populous 4477
county that is a part of such transit authority. County population 4478
shall be measured by the most recent census taken by the United 4479
States census bureau.4480

       (V) "Legislative authority" means, with respect to a regional 4481
transit authority, the board of trustees thereof, and with respect 4482
to a county that is a transit authority, the board of county 4483
commissioners.4484

       (W) "Territory of the transit authority" means all of the 4485
area included within the territorial boundaries of a transit 4486
authority as they from time to time exist. Such territorial 4487
boundaries must at all times include all the area of a single 4488
county or all the area of the most populous county that is a part 4489
of such transit authority. County population shall be measured by 4490
the most recent census taken by the United States census bureau.4491

       (X) "Providing a service" means providing or furnishing 4492
anything described in division (B)(3) of this section for 4493
consideration.4494

       (Y)(1)(a) "Automatic data processing" means processing of 4495
others' data, including keypunching or similar data entry services 4496
together with verification thereof, or providing access to 4497
computer equipment for the purpose of processing data.4498

       (b) "Computer services" means providing services consisting 4499
of specifying computer hardware configurations and evaluating 4500
technical processing characteristics, computer programming, and 4501
training of computer programmers and operators, provided in 4502
conjunction with and to support the sale, lease, or operation of 4503
taxable computer equipment or systems.4504

       (c) "Electronic information services" means providing access 4505
to computer equipment by means of telecommunications equipment for 4506
the purpose of either of the following:4507

       (i) Examining or acquiring data stored in or accessible to 4508
the computer equipment;4509

       (ii) Placing data into the computer equipment to be retrieved 4510
by designated recipients with access to the computer equipment.4511

       For transactions occurring on or after the effective date of 4512
the amendment of this section by H.B. 157 of the 127th general 4513
assembly, December 21, 2007, "electronic information services" 4514
does not include electronic publishing as defined in division 4515
(LLL) of this section.4516

       (d) "Automatic data processing, computer services, or 4517
electronic information services" shall not include personal or 4518
professional services.4519

       (2) As used in divisions (B)(3)(e) and (Y)(1) of this 4520
section, "personal and professional services" means all services 4521
other than automatic data processing, computer services, or 4522
electronic information services, including but not limited to:4523

       (a) Accounting and legal services such as advice on tax 4524
matters, asset management, budgetary matters, quality control, 4525
information security, and auditing and any other situation where 4526
the service provider receives data or information and studies, 4527
alters, analyzes, interprets, or adjusts such material;4528

       (b) Analyzing business policies and procedures;4529

       (c) Identifying management information needs;4530

       (d) Feasibility studies, including economic and technical 4531
analysis of existing or potential computer hardware or software 4532
needs and alternatives;4533

       (e) Designing policies, procedures, and custom software for 4534
collecting business information, and determining how data should 4535
be summarized, sequenced, formatted, processed, controlled, and 4536
reported so that it will be meaningful to management;4537

       (f) Developing policies and procedures that document how 4538
business events and transactions are to be authorized, executed, 4539
and controlled;4540

       (g) Testing of business procedures;4541

       (h) Training personnel in business procedure applications;4542

       (i) Providing credit information to users of such information 4543
by a consumer reporting agency, as defined in the "Fair Credit 4544
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or 4545
as hereafter amended, including but not limited to gathering, 4546
organizing, analyzing, recording, and furnishing such information 4547
by any oral, written, graphic, or electronic medium;4548

       (j) Providing debt collection services by any oral, written, 4549
graphic, or electronic means.4550

       The services listed in divisions (Y)(2)(a) to (j) of this 4551
section are not automatic data processing or computer services.4552

       (Z) "Highway transportation for hire" means the 4553
transportation of personal property belonging to others for 4554
consideration by any of the following:4555

       (1) The holder of a permit or certificate issued by this 4556
state or the United States authorizing the holder to engage in 4557
transportation of personal property belonging to others for 4558
consideration over or on highways, roadways, streets, or any 4559
similar public thoroughfare;4560

       (2) A person who engages in the transportation of personal 4561
property belonging to others for consideration over or on 4562
highways, roadways, streets, or any similar public thoroughfare 4563
but who could not have engaged in such transportation on December 4564
11, 1985, unless the person was the holder of a permit or 4565
certificate of the types described in division (Z)(1) of this 4566
section;4567

       (3) A person who leases a motor vehicle to and operates it 4568
for a person described by division (Z)(1) or (2) of this section.4569

       (AA)(1) "Telecommunications service" means the electronic 4570
transmission, conveyance, or routing of voice, data, audio, video, 4571
or any other information or signals to a point, or between or 4572
among points. "Telecommunications service" includes such 4573
transmission, conveyance, or routing in which computer processing 4574
applications are used to act on the form, code, or protocol of the 4575
content for purposes of transmission, conveyance, or routing 4576
without regard to whether the service is referred to as voice-over 4577
internet protocol service or is classified by the federal 4578
communications commission as enhanced or value-added. 4579
"Telecommunications service" does not include any of the 4580
following:4581

        (a) Data processing and information services that allow data 4582
to be generated, acquired, stored, processed, or retrieved and 4583
delivered by an electronic transmission to a consumer where the 4584
consumer's primary purpose for the underlying transaction is the 4585
processed data or information;4586

        (b) Installation or maintenance of wiring or equipment on a 4587
customer's premises;4588

        (c) Tangible personal property;4589

       (d) Advertising, including directory advertising;4590

        (e) Billing and collection services provided to third 4591
parties;4592

        (f) Internet access service;4593

        (g) Radio and television audio and video programming 4594
services, regardless of the medium, including the furnishing of 4595
transmission, conveyance, and routing of such services by the 4596
programming service provider. Radio and television audio and video 4597
programming services include, but are not limited to, cable 4598
service, as defined in 47 U.S.C. 522(6), and audio and video 4599
programming services delivered by commercial mobile radio service 4600
providers, as defined in 47 C.F.R. 20.3;4601

        (h) Ancillary service;4602

        (i) Digital products delivered electronically, including 4603
software, music, video, reading materials, or ring tones.4604

        (2) "Ancillary service" means a service that is associated 4605
with or incidental to the provision of telecommunications service, 4606
including conference bridging service, detailed telecommunications 4607
billing service, directory assistance, vertical service, and voice 4608
mail service. As used in this division:4609

        (a) "Conference bridging service" means an ancillary service 4610
that links two or more participants of an audio or video 4611
conference call, including providing a telephone number. 4612
"Conference bridging service" does not include telecommunications 4613
services used to reach the conference bridge.4614

        (b) "Detailed telecommunications billing service" means an 4615
ancillary service of separately stating information pertaining to 4616
individual calls on a customer's billing statement.4617

        (c) "Directory assistance" means an ancillary service of 4618
providing telephone number or address information.4619

        (d) "Vertical service" means an ancillary service that is 4620
offered in connection with one or more telecommunications 4621
services, which offers advanced calling features that allow 4622
customers to identify callers and manage multiple calls and call 4623
connections, including conference bridging service.4624

        (e) "Voice mail service" means an ancillary service that 4625
enables the customer to store, send, or receive recorded messages. 4626
"Voice mail service" does not include any vertical services that 4627
the customer may be required to have in order to utilize the voice 4628
mail service.4629

        (3) "900 service" means an inbound toll telecommunications 4630
service purchased by a subscriber that allows the subscriber's 4631
customers to call in to the subscriber's prerecorded announcement 4632
or live service, and which is typically marketed under the name 4633
"900" service" and any subsequent numbers designated by the 4634
federal communications commission. "900 service" does not include 4635
the charge for collection services provided by the seller of the 4636
telecommunications service to the subscriber, or services or 4637
products sold by the subscriber to the subscriber's customer.4638

        (4) "Prepaid calling service" means the right to access 4639
exclusively telecommunications services, which must be paid for in 4640
advance and which enables the origination of calls using an access 4641
number or authorization code, whether manually or electronically 4642
dialed, and that is sold in predetermined units or dollars of 4643
which the number declines with use in a known amount.4644

        (5) "Prepaid wireless calling service" means a 4645
telecommunications service that provides the right to utilize 4646
mobile telecommunications service as well as other 4647
non-telecommunications services, including the download of digital 4648
products delivered electronically, and content and ancillary 4649
services, that must be paid for in advance and that is sold in 4650
predetermined units or dollars of which the number declines with 4651
use in a known amount.4652

        (6) "Value-added non-voice data service" means a 4653
telecommunications service in which computer processing 4654
applications are used to act on the form, content, code, or 4655
protocol of the information or data primarily for a purpose other 4656
than transmission, conveyance, or routing.4657

        (7) "Coin-operated telephone service" means a 4658
telecommunications service paid for by inserting money into a 4659
telephone accepting direct deposits of money to operate.4660

        (8) "Customer" has the same meaning as in section 5739.034 of 4661
the Revised Code.4662

       (BB) "Laundry and dry cleaning services" means removing soil 4663
or dirt from towels, linens, articles of clothing, or other fabric 4664
items that belong to others and supplying towels, linens, articles 4665
of clothing, or other fabric items. "Laundry and dry cleaning 4666
services" does not include the provision of self-service 4667
facilities for use by consumers to remove soil or dirt from 4668
towels, linens, articles of clothing, or other fabric items.4669

       (CC) "Magazines distributed as controlled circulation 4670
publications" means magazines containing at least twenty-four 4671
pages, at least twenty-five per cent editorial content, issued at 4672
regular intervals four or more times a year, and circulated 4673
without charge to the recipient, provided that such magazines are 4674
not owned or controlled by individuals or business concerns which 4675
conduct such publications as an auxiliary to, and essentially for 4676
the advancement of the main business or calling of, those who own 4677
or control them.4678

       (DD) "Landscaping and lawn care service" means the services 4679
of planting, seeding, sodding, removing, cutting, trimming, 4680
pruning, mulching, aerating, applying chemicals, watering, 4681
fertilizing, and providing similar services to establish, promote, 4682
or control the growth of trees, shrubs, flowers, grass, ground 4683
cover, and other flora, or otherwise maintaining a lawn or 4684
landscape grown or maintained by the owner for ornamentation or 4685
other nonagricultural purpose. However, "landscaping and lawn care 4686
service" does not include the providing of such services by a 4687
person who has less than five thousand dollars in sales of such 4688
services during the calendar year.4689

       (EE) "Private investigation and security service" means the 4690
performance of any activity for which the provider of such service 4691
is required to be licensed pursuant to Chapter 4749. of the 4692
Revised Code, or would be required to be so licensed in performing 4693
such services in this state, and also includes the services of 4694
conducting polygraph examinations and of monitoring or overseeing 4695
the activities on or in, or the condition of, the consumer's home, 4696
business, or other facility by means of electronic or similar 4697
monitoring devices. "Private investigation and security service" 4698
does not include special duty services provided by off-duty police 4699
officers, deputy sheriffs, and other peace officers regularly 4700
employed by the state or a political subdivision.4701

       (FF) "Information services" means providing conversation, 4702
giving consultation or advice, playing or making a voice or other 4703
recording, making or keeping a record of the number of callers, 4704
and any other service provided to a consumer by means of a nine 4705
hundred telephone call, except when the nine hundred telephone 4706
call is the means by which the consumer makes a contribution to a 4707
recognized charity.4708

       (GG) "Research and development" means designing, creating, or 4709
formulating new or enhanced products, equipment, or manufacturing 4710
processes, and also means conducting scientific or technological 4711
inquiry and experimentation in the physical sciences with the goal 4712
of increasing scientific knowledge which may reveal the bases for 4713
new or enhanced products, equipment, or manufacturing processes.4714

       (HH) "Qualified research and development equipment" means 4715
capitalized tangible personal property, and leased personal 4716
property that would be capitalized if purchased, used by a person 4717
primarily to perform research and development. Tangible personal 4718
property primarily used in testing, as defined in division (A)(4) 4719
of section 5739.011 of the Revised Code, or used for recording or 4720
storing test results, is not qualified research and development 4721
equipment unless such property is primarily used by the consumer 4722
in testing the product, equipment, or manufacturing process being 4723
created, designed, or formulated by the consumer in the research 4724
and development activity or in recording or storing such test 4725
results.4726

       (II) "Building maintenance and janitorial service" means 4727
cleaning the interior or exterior of a building and any tangible 4728
personal property located therein or thereon, including any 4729
services incidental to such cleaning for which no separate charge 4730
is made. However, "building maintenance and janitorial service" 4731
does not include the providing of such service by a person who has 4732
less than five thousand dollars in sales of such service during 4733
the calendar year.4734

       (JJ) "Employment service" means providing or supplying 4735
personnel, on a temporary or long-term basis, to perform work or 4736
labor under the supervision or control of another, when the 4737
personnel so provided or supplied receive their wages, salary, or 4738
other compensation from the provider or supplier of the employment 4739
service or from a third party that provided or supplied the 4740
personnel to the provider or supplier. "Employment service" does 4741
not include:4742

       (1) Acting as a contractor or subcontractor, where the 4743
personnel performing the work are not under the direct control of 4744
the purchaser.4745

       (2) Medical and health care services.4746

       (3) Supplying personnel to a purchaser pursuant to a contract 4747
of at least one year between the service provider and the 4748
purchaser that specifies that each employee covered under the 4749
contract is assigned to the purchaser on a permanent basis.4750

       (4) Transactions between members of an affiliated group, as 4751
defined in division (B)(3)(e) of this section.4752

       (5) Transactions where the personnel so provided or supplied 4753
by a provider or supplier to a purchaser of an employment service 4754
are then provided or supplied by that purchaser to a third party 4755
as an employment service, except "employment service" does include 4756
the transaction between that purchaser and the third party.4757

       (KK) "Employment placement service" means locating or finding 4758
employment for a person or finding or locating an employee to fill 4759
an available position.4760

       (LL) "Exterminating service" means eradicating or attempting 4761
to eradicate vermin infestations from a building or structure, or 4762
the area surrounding a building or structure, and includes 4763
activities to inspect, detect, or prevent vermin infestation of a 4764
building or structure.4765

       (MM) "Physical fitness facility service" means all 4766
transactions by which a membership is granted, maintained, or 4767
renewed, including initiation fees, membership dues, renewal fees, 4768
monthly minimum fees, and other similar fees and dues, by a 4769
physical fitness facility such as an athletic club, health spa, or 4770
gymnasium, which entitles the member to use the facility for 4771
physical exercise.4772

       (NN) "Recreation and sports club service" means all 4773
transactions by which a membership is granted, maintained, or 4774
renewed, including initiation fees, membership dues, renewal fees, 4775
monthly minimum fees, and other similar fees and dues, by a 4776
recreation and sports club, which entitles the member to use the 4777
facilities of the organization. "Recreation and sports club" means 4778
an organization that has ownership of, or controls or leases on a 4779
continuing, long-term basis, the facilities used by its members 4780
and includes an aviation club, gun or shooting club, yacht club, 4781
card club, swimming club, tennis club, golf club, country club, 4782
riding club, amateur sports club, or similar organization.4783

       (OO) "Livestock" means farm animals commonly raised for food, 4784
food production, or other agricultural purposes, including, but 4785
not limited to, cattle, sheep, goats, swine, poultry, and captive 4786
deer. "Livestock" does not include invertebrates, amphibians, 4787
reptiles, domestic pets, animals for use in laboratories or for 4788
exhibition, or other animals not commonly raised for food or food 4789
production.4790

       (PP) "Livestock structure" means a building or structure used 4791
exclusively for the housing, raising, feeding, or sheltering of 4792
livestock, and includes feed storage or handling structures and 4793
structures for livestock waste handling.4794

       (QQ) "Horticulture" means the growing, cultivation, and 4795
production of flowers, fruits, herbs, vegetables, sod, mushrooms, 4796
and nursery stock. As used in this division, "nursery stock" has 4797
the same meaning as in section 927.51 of the Revised Code.4798

       (RR) "Horticulture structure" means a building or structure 4799
used exclusively for the commercial growing, raising, or 4800
overwintering of horticultural products, and includes the area 4801
used for stocking, storing, and packing horticultural products 4802
when done in conjunction with the production of those products.4803

       (SS) "Newspaper" means an unbound publication bearing a title 4804
or name that is regularly published, at least as frequently as 4805
biweekly, and distributed from a fixed place of business to the 4806
public in a specific geographic area, and that contains a 4807
substantial amount of news matter of international, national, or 4808
local events of interest to the general public.4809

       (TT) "Professional racing team" means a person that employs 4810
at least twenty full-time employees for the purpose of conducting 4811
a motor vehicle racing business for profit. The person must 4812
conduct the business with the purpose of racing one or more motor 4813
racing vehicles in at least ten competitive professional racing 4814
events each year that comprise all or part of a motor racing 4815
series sanctioned by one or more motor racing sanctioning 4816
organizations. A "motor racing vehicle" means a vehicle for which 4817
the chassis, engine, and parts are designed exclusively for motor 4818
racing, and does not include a stock or production model vehicle 4819
that may be modified for use in racing. For the purposes of this 4820
division:4821

       (1) A "competitive professional racing event" is a motor 4822
vehicle racing event sanctioned by one or more motor racing 4823
sanctioning organizations, at which aggregate cash prizes in 4824
excess of eight hundred thousand dollars are awarded to the 4825
competitors.4826

       (2) "Full-time employee" means an individual who is employed 4827
for consideration for thirty-five or more hours a week, or who 4828
renders any other standard of service generally accepted by custom 4829
or specified by contract as full-time employment"Managed care 4830
premium" means any premium, capitation, or other payment a 4831
medicaid health insuring corporation receives for providing or 4832
arranging for the provision of health care services to its members 4833
or enrollees residing in this state.4834

        (UU)(1) "Lease" or "rental" means any transfer of the 4835
possession or control of tangible personal property for a fixed or 4836
indefinite term, for consideration. "Lease" or "rental" includes 4837
future options to purchase or extend, and agreements described in 4838
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where 4839
the amount of consideration may be increased or decreased by 4840
reference to the amount realized upon the sale or disposition of 4841
the property. "Lease" or "rental" does not include:4842

       (a) A transfer of possession or control of tangible personal 4843
property under a security agreement or a deferred payment plan 4844
that requires the transfer of title upon completion of the 4845
required payments;4846

       (b) A transfer of possession or control of tangible personal 4847
property under an agreement that requires the transfer of title 4848
upon completion of required payments and payment of an option 4849
price that does not exceed the greater of one hundred dollars or 4850
one per cent of the total required payments;4851

       (c) Providing tangible personal property along with an 4852
operator for a fixed or indefinite period of time, if the operator 4853
is necessary for the property to perform as designed. For purposes 4854
of this division, the operator must do more than maintain, 4855
inspect, or set-up the tangible personal property.4856

       (2) "Lease" and "rental," as defined in division (UU) of this 4857
section, shall not apply to leases or rentals that exist before 4858
June 26, 2003.4859

       (3) "Lease" and "rental" have the same meaning as in division 4860
(UU)(1) of this section regardless of whether a transaction is 4861
characterized as a lease or rental under generally accepted 4862
accounting principles, the Internal Revenue Code, Title XIII of 4863
the Revised Code, or other federal, state, or local laws.4864

       (VV) "Mobile telecommunications service" has the same meaning 4865
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No. 4866
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and, 4867
on and after August 1, 2003, includes related fees and ancillary 4868
services, including universal service fees, detailed billing 4869
service, directory assistance, service initiation, voice mail 4870
service, and vertical services, such as caller ID and three-way 4871
calling.4872

       (WW) "Certified service provider" has the same meaning as in 4873
section 5740.01 of the Revised Code.4874

       (XX) "Satellite broadcasting service" means the distribution 4875
or broadcasting of programming or services by satellite directly 4876
to the subscriber's receiving equipment without the use of ground 4877
receiving or distribution equipment, except the subscriber's 4878
receiving equipment or equipment used in the uplink process to the 4879
satellite, and includes all service and rental charges, premium 4880
channels or other special services, installation and repair 4881
service charges, and any other charges having any connection with 4882
the provision of the satellite broadcasting service.4883

       (YY) "Tangible personal property" means personal property 4884
that can be seen, weighed, measured, felt, or touched, or that is 4885
in any other manner perceptible to the senses. For purposes of 4886
this chapter and Chapter 5741. of the Revised Code, "tangible 4887
personal property" includes motor vehicles, electricity, water, 4888
gas, steam, and prewritten computer software.4889

       (ZZ) "Direct mail" means printed material delivered or 4890
distributed by United States mail or other delivery service to a 4891
mass audience or to addressees on a mailing list provided by the 4892
consumer or at the direction of the consumer when the cost of the 4893
items are not billed directly to the recipients. "Direct mail" 4894
includes tangible personal property supplied directly or 4895
indirectly by the consumer to the direct mail vendor for inclusion 4896
in the package containing the printed material. "Direct mail" does 4897
not include multiple items of printed material delivered to a 4898
single address.4899

       (AAA) "Computer" means an electronic device that accepts 4900
information in digital or similar form and manipulates it for a 4901
result based on a sequence of instructions.4902

       (BBB) "Computer software" means a set of coded instructions 4903
designed to cause a computer or automatic data processing 4904
equipment to perform a task.4905

       (CCC) "Delivered electronically" means delivery of computer 4906
software from the seller to the purchaser by means other than 4907
tangible storage media.4908

       (DDD) "Prewritten computer software" means computer software, 4909
including prewritten upgrades, that is not designed and developed 4910
by the author or other creator to the specifications of a specific 4911
purchaser. The combining of two or more prewritten computer 4912
software programs or prewritten portions thereof does not cause 4913
the combination to be other than prewritten computer software. 4914
"Prewritten computer software" includes software designed and 4915
developed by the author or other creator to the specifications of 4916
a specific purchaser when it is sold to a person other than the 4917
purchaser. If a person modifies or enhances computer software of 4918
which the person is not the author or creator, the person shall be 4919
deemed to be the author or creator only of such person's 4920
modifications or enhancements. Prewritten computer software or a 4921
prewritten portion thereof that is modified or enhanced to any 4922
degree, where such modification or enhancement is designed and 4923
developed to the specifications of a specific purchaser, remains 4924
prewritten computer software; provided, however, that where there 4925
is a reasonable, separately stated charge or an invoice or other 4926
statement of the price given to the purchaser for the modification 4927
or enhancement, the modification or enhancement shall not 4928
constitute prewritten computer software.4929

       (EEE)(1) "Food" means substances, whether in liquid, 4930
concentrated, solid, frozen, dried, or dehydrated form, that are 4931
sold for ingestion or chewing by humans and are consumed for their 4932
taste or nutritional value. "Food" does not include alcoholic 4933
beverages, dietary supplements, soft drinks, or tobacco.4934

       (2) As used in division (EEE)(1) of this section:4935

       (a) "Alcoholic beverages" means beverages that are suitable 4936
for human consumption and contain one-half of one per cent or more 4937
of alcohol by volume.4938

       (b) "Dietary supplements" means any product, other than 4939
tobacco, that is intended to supplement the diet and that is 4940
intended for ingestion in tablet, capsule, powder, softgel, 4941
gelcap, or liquid form, or, if not intended for ingestion in such 4942
a form, is not represented as conventional food for use as a sole 4943
item of a meal or of the diet; that is required to be labeled as a 4944
dietary supplement, identifiable by the "supplement facts" box 4945
found on the label, as required by 21 C.F.R. 101.36; and that 4946
contains one or more of the following dietary ingredients:4947

       (i) A vitamin;4948

       (ii) A mineral;4949

       (iii) An herb or other botanical;4950

       (iv) An amino acid;4951

       (v) A dietary substance for use by humans to supplement the 4952
diet by increasing the total dietary intake;4953

       (vi) A concentrate, metabolite, constituent, extract, or 4954
combination of any ingredient described in divisions 4955
(EEE)(2)(b)(i) to (v) of this section.4956

       (c) "Soft drinks" means nonalcoholic beverages that contain 4957
natural or artificial sweeteners. "Soft drinks" does not include 4958
beverages that contain milk or milk products, soy, rice, or 4959
similar milk substitutes, or that contains greater than fifty per 4960
cent vegetable or fruit juice by volume.4961

       (d) "Tobacco" means cigarettes, cigars, chewing or pipe 4962
tobacco, or any other item that contains tobacco.4963

       (FFF) "Drug" means a compound, substance, or preparation, and 4964
any component of a compound, substance, or preparation, other than 4965
food, dietary supplements, or alcoholic beverages that is 4966
recognized in the official United States pharmacopoeia, official 4967
homeopathic pharmacopoeia of the United States, or official 4968
national formulary, and supplements to them; is intended for use 4969
in the diagnosis, cure, mitigation, treatment, or prevention of 4970
disease; or is intended to affect the structure or any function of 4971
the body.4972

       (GGG) "Prescription" means an order, formula, or recipe 4973
issued in any form of oral, written, electronic, or other means of 4974
transmission by a duly licensed practitioner authorized by the 4975
laws of this state to issue a prescription.4976

       (HHH) "Durable medical equipment" means equipment, including 4977
repair and replacement parts for such equipment, that can 4978
withstand repeated use, is primarily and customarily used to serve 4979
a medical purpose, generally is not useful to a person in the 4980
absence of illness or injury, and is not worn in or on the body. 4981
"Durable medical equipment" does not include mobility enhancing 4982
equipment.4983

       (III) "Mobility enhancing equipment" means equipment, 4984
including repair and replacement parts for such equipment, that is 4985
primarily and customarily used to provide or increase the ability 4986
to move from one place to another and is appropriate for use 4987
either in a home or a motor vehicle, that is not generally used by 4988
persons with normal mobility, and that does not include any motor 4989
vehicle or equipment on a motor vehicle normally provided by a 4990
motor vehicle manufacturer. "Mobility enhancing equipment" does 4991
not include durable medical equipment.4992

       (JJJ) "Prosthetic device" means a replacement, corrective, or 4993
supportive device, including repair and replacement parts for the 4994
device, worn on or in the human body to artificially replace a 4995
missing portion of the body, prevent or correct physical deformity 4996
or malfunction, or support a weak or deformed portion of the body. 4997
As used in this division, "prosthetic device" does not include 4998
corrective eyeglasses, contact lenses, or dental prosthesis.4999

       (KKK)(1) "Fractional aircraft ownership program" means a 5000
program in which persons within an affiliated group sell and 5001
manage fractional ownership program aircraft, provided that at 5002
least one hundred airworthy aircraft are operated in the program 5003
and the program meets all of the following criteria:5004

       (a) Management services are provided by at least one program 5005
manager within an affiliated group on behalf of the fractional 5006
owners.5007

       (b) Each program aircraft is owned or possessed by at least 5008
one fractional owner.5009

       (c) Each fractional owner owns or possesses at least a 5010
one-sixteenth interest in at least one fixed-wing program 5011
aircraft.5012

       (d) A dry-lease aircraft interchange arrangement is in effect 5013
among all of the fractional owners.5014

       (e) Multi-year program agreements are in effect regarding the 5015
fractional ownership, management services, and dry-lease aircraft 5016
interchange arrangement aspects of the program.5017

       (2) As used in division (KKK)(1) of this section:5018

       (a) "Affiliated group" has the same meaning as in division 5019
(B)(3)(e) of this section.5020

       (b) "Fractional owner" means a person that owns or possesses 5021
at least a one-sixteenth interest in a program aircraft and has 5022
entered into the agreements described in division (KKK)(1)(e) of 5023
this section.5024

       (c) "Fractional ownership program aircraft" or "program 5025
aircraft" means a turbojet aircraft that is owned or possessed by 5026
a fractional owner and that has been included in a dry-lease 5027
aircraft interchange arrangement and agreement under divisions 5028
(KKK)(1)(d) and (e) of this section, or an aircraft a program 5029
manager owns or possesses primarily for use in a fractional 5030
aircraft ownership program.5031

       (d) "Management services" means administrative and aviation 5032
support services furnished under a fractional aircraft ownership 5033
program in accordance with a management services agreement under 5034
division (KKK)(1)(e) of this section, and offered by the program 5035
manager to the fractional owners, including, at a minimum, the 5036
establishment and implementation of safety guidelines; the 5037
coordination of the scheduling of the program aircraft and crews; 5038
program aircraft maintenance; program aircraft insurance; crew 5039
training for crews employed, furnished, or contracted by the 5040
program manager or the fractional owner; the satisfaction of 5041
record-keeping requirements; and the development and use of an 5042
operations manual and a maintenance manual for the fractional 5043
aircraft ownership program.5044

       (e) "Program manager" means the person that offers management 5045
services to fractional owners pursuant to a management services 5046
agreement under division (KKK)(1)(e) of this section"Captive 5047
deer" means deer and other cervidae that have been legally 5048
acquired, or their offspring, that are privately owned for 5049
agricultural or farming purposes.5050

       (LLL) "Electronic publishing" means providing access to one 5051
or more of the following primarily for business customers, 5052
including the federal government or a state government or a 5053
political subdivision thereof, to conduct research: news; 5054
business, financial, legal, consumer, or credit materials; 5055
editorials, columns, reader commentary, or features; photos or 5056
images; archival or research material; legal notices, identity 5057
verification, or public records; scientific, educational, 5058
instructional, technical, professional, trade, or other literary 5059
materials; or other similar information which has been gathered 5060
and made available by the provider to the consumer in an 5061
electronic format. Providing electronic publishing includes the 5062
functions necessary for the acquisition, formatting, editing, 5063
storage, and dissemination of data or information that is the 5064
subject of a sale.5065

       (MMM) "Medicaid health insuring corporation" means a health 5066
insuring corporation that holds a certificate of authority under 5067
Chapter 1751. of the Revised Code and is under contract with the 5068
department of job and family services pursuant to section 5111.17 5069
of the Revised Code.5070

       (NNN) "Managed care premium" means any premium, capitation, 5071
or other payment a medicaid health insuring corporation receives 5072
for providing or arranging for the provision of health care 5073
services to its members or enrollees residing in this state.5074

       (OOO) "Captive deer" means deer and other cervidae that have 5075
been legally acquired, or their offspring, that are privately 5076
owned for agricultural or farming purposes.5077

       (PPP) "Gift card" means a document, card, certificate, or 5078
other record, whether tangible or intangible, that may be redeemed 5079
by a consumer for a dollar value when making a purchase of 5080
tangible personal property or services.5081

       Sec. 5739.02.  For the purpose of providing revenue with 5082
which to meet the needs of the state, for the use of the general 5083
revenue fund of the state, for the purpose of securing a thorough 5084
and efficient system of common schools throughout the state, for 5085
the purpose of affording revenues, in addition to those from 5086
general property taxes, permitted under constitutional 5087
limitations, and from other sources, for the support of local 5088
governmental functions, and for the purpose of reimbursing the 5089
state for the expense of administering this chapter, an excise tax 5090
is hereby levied on each retail sale made in this state.5091

       (A)(1) The tax shall be collected as provided in section 5092
5739.025 of the Revised Code. The rate of the tax shall be five 5093
and one-half per cent. The tax applies and is collectible when the 5094
sale is made, regardless of the time when the price is paid or 5095
delivered.5096

        (2) In the case of the lease or rental, with a fixed term of 5097
more than thirty days or an indefinite term with a minimum period 5098
of more than thirty days, of any motor vehicles designed by the 5099
manufacturer to carry a load of not more than one ton, watercraft, 5100
outboard motor, or aircraft, or of any tangible personal property, 5101
other than motor vehicles designed by the manufacturer to carry a 5102
load of more than one ton, to be used by the lessee or renter 5103
primarily for business purposes, the tax shall be collected by the 5104
vendor at the time the lease or rental is consummated and shall be 5105
calculated by the vendor on the basis of the total amount to be 5106
paid by the lessee or renter under the lease agreement. If the 5107
total amount of the consideration for the lease or rental includes 5108
amounts that are not calculated at the time the lease or rental is 5109
executed, the tax shall be calculated and collected by the vendor 5110
at the time such amounts are billed to the lessee or renter. In 5111
the case of an open-end lease or rental, the tax shall be 5112
calculated by the vendor on the basis of the total amount to be 5113
paid during the initial fixed term of the lease or rental, and for 5114
each subsequent renewal period as it comes due. As used in this 5115
division, "motor vehicle" has the same meaning as in section 5116
4501.01 of the Revised Code, and "watercraft" includes an outdrive 5117
unit attached to the watercraft.5118

       A lease with a renewal clause and a termination penalty or 5119
similar provision that applies if the renewal clause is not 5120
exercised is presumed to be a sham transaction. In such a case, 5121
the tax shall be calculated and paid on the basis of the entire 5122
length of the lease period, including any renewal periods, until 5123
the termination penalty or similar provision no longer applies. 5124
The taxpayer shall bear the burden, by a preponderance of the 5125
evidence, that the transaction or series of transactions is not a 5126
sham transaction.5127

       (3) Except as provided in division (A)(2) of this section, in 5128
the case of a sale, the price of which consists in whole or in 5129
part of the lease or rental of tangible personal property, the tax 5130
shall be measured by the installments of that lease or rental.5131

       (4) In the case of a sale of a physical fitness facility 5132
service or recreation and sports club service, the price of which 5133
consists in whole or in part of a membership for the receipt of 5134
the benefit of the service, the tax applicable to the sale shall 5135
be measured by the installments thereof.5136

       (B) The tax does not apply to the following:5137

       (1) Sales to the state or any of its political subdivisions, 5138
or to any other state or its political subdivisions if the laws of 5139
that state exempt from taxation sales made to this state and its 5140
political subdivisions;5141

       (2) Sales of food for human consumption off the premises 5142
where sold;5143

       (3) Sales of food sold to students only in a cafeteria, 5144
dormitory, fraternity, or sorority maintained in a private, 5145
public, or parochial school, college, or university;5146

       (4) Sales of newspapers and of magazine subscriptions and 5147
sales or transfers of magazines distributed as controlled 5148
circulation publications;5149

       (5) The furnishing, preparing, or serving of meals without 5150
charge by an employer to an employee provided the employer records 5151
the meals as part compensation for services performed or work 5152
done;5153

       (6) Sales of motor fuel upon receipt, use, distribution, or 5154
sale of which in this state a tax is imposed by the law of this 5155
state, but this exemption shall not apply to the sale of motor 5156
fuel on which a refund of the tax is allowable under division (A) 5157
of section 5735.14 of the Revised Code; and the tax commissioner 5158
may deduct the amount of tax levied by this section applicable to 5159
the price of motor fuel when granting a refund of motor fuel tax 5160
pursuant to division (A) of section 5735.14 of the Revised Code 5161
and shall cause the amount deducted to be paid into the general 5162
revenue fund of this state;5163

       (7) Sales of natural gas by a natural gas company, of water 5164
by a water-works company, or of steam by a heating company, if in 5165
each case the thing sold is delivered to consumers through pipes 5166
or conduits, and all sales of communications services by a 5167
telegraph company, all terms as defined in section 5727.01 of the 5168
Revised Code, and sales of electricity delivered through wires;5169

       (8) Casual sales by a person, or auctioneer employed directly 5170
by the person to conduct such sales, except as to such sales of 5171
motor vehicles, watercraft or outboard motors required to be 5172
titled under section 1548.06 of the Revised Code, watercraft 5173
documented with the United States coast guard, snowmobiles, and 5174
all-purpose vehicles as defined in section 4519.01 of the Revised 5175
Code;5176

       (9)(a) Sales of services or tangible personal property, other 5177
than motor vehicles, mobile homes, and manufactured homes, by 5178
churches, organizations exempt from taxation under section 5179
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit 5180
organizations operated exclusively for charitable purposes as 5181
defined in division (B)(12) of this section, provided that the 5182
number of days on which such tangible personal property or 5183
services, other than items never subject to the tax, are sold does 5184
not exceed six in any calendar year, except as otherwise provided 5185
in division (B)(9)(b) of this section. If the number of days on 5186
which such sales are made exceeds six in any calendar year, the 5187
church or organization shall be considered to be engaged in 5188
business and all subsequent sales by it shall be subject to the 5189
tax. In counting the number of days, all sales by groups within a 5190
church or within an organization shall be considered to be sales 5191
of that church or organization.5192

       (b) The limitation on the number of days on which tax-exempt 5193
sales may be made by a church or organization under division 5194
(B)(9)(a) of this section does not apply to sales made by student 5195
clubs and other groups of students of a primary or secondary 5196
school, or a parent-teacher association, booster group, or similar 5197
organization that raises money to support or fund curricular or 5198
extracurricular activities of a primary or secondary school.5199

       (c) Divisions (B)(9)(a) and (b) of this section do not apply 5200
to sales by a noncommercial educational radio or television 5201
broadcasting station.5202

       (10) Sales not within the taxing power of this state under 5203
the Constitution of the United States;5204

       (11) Except for transactions that are sales under division 5205
(B)(3)(r) of section 5739.01 of the Revised Code, the 5206
transportation of persons or property, unless the transportation 5207
is by a private investigation and security service;5208

       (12) Sales of tangible personal property or services to 5209
churches, to organizations exempt from taxation under section 5210
501(c)(3) of the Internal Revenue Code of 1986, and to any other 5211
nonprofit organizations operated exclusively for charitable 5212
purposes in this state, no part of the net income of which inures 5213
to the benefit of any private shareholder or individual, and no 5214
substantial part of the activities of which consists of carrying 5215
on propaganda or otherwise attempting to influence legislation; 5216
sales to offices administering one or more homes for the aged or 5217
one or more hospital facilities exempt under section 140.08 of the 5218
Revised Code; and sales to organizations described in division (D) 5219
of section 5709.12 of the Revised Code.5220

       "Charitable purposes" means the relief of poverty; the 5221
improvement of health through the alleviation of illness, disease, 5222
or injury; the operation of an organization exclusively for the 5223
provision of professional, laundry, printing, and purchasing 5224
services to hospitals or charitable institutions; the operation of 5225
a home for the aged, as defined in section 5701.13 of the Revised 5226
Code; the operation of a radio or television broadcasting station 5227
that is licensed by the federal communications commission as a 5228
noncommercial educational radio or television station; the 5229
operation of a nonprofit animal adoption service or a county 5230
humane society; the promotion of education by an institution of 5231
learning that maintains a faculty of qualified instructors, 5232
teaches regular continuous courses of study, and confers a 5233
recognized diploma upon completion of a specific curriculum; the 5234