Bill Text: OH SB2 | 2011-2012 | 129th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: To adopt a new business rule review procedure.

Spectrum: Moderate Partisan Bill (Republican 68-9)

Status: (Passed) 2011-06-07 - Effective Date [SB2 Detail]

Download: Ohio-2011-SB2-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 2

Senator Hughes 

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A BILL

To amend sections 103.0511, 111.15, 117.20, 119.03,

1

121.39, 122.08, 122.081, 122.94, and 1710.02; to

2

enact sections 108.11, 108.12, 108.13, 108.21,

3

108.22, 108.23, 121.81, 121.82, 121.83, and

4

121.91; and to repeal section 121.24 of the

5

Revised Code to adopt a new small business rule

6

review procedure.

7

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

Section 1. That sections 103.0511, 111.15, 117.20, 119.03,	8
121.39, 122.08, 122.081, 122.94, and 1710.02 be amended and that	9
sections 108.11, 108.12, 108.13, 108.21, 108.22, 108.23, 121.81,	10
121.82, 121.83, and 121.91 of the Revised Code be enacted to read	11
as follows:	12

Sec. 103.0511.  The director of the legislative service	13
commission shall establish and maintain, and enhance and improve,	14
an electronic rule-filing system connecting:	15

(A) The legislative service commission, the joint committee	16
on agency rule review, and the secretary of state, and the office	17
of small business;	18

(B) The governor, the senate and house of representatives,	19
and the clerks of the senate and house of representatives;	20

(C) Each agency that files rules and other rule-making and	21
rule-related documents with the legislative service commission,	22
the joint committee on agency rule review, the governor, the	23
secretary of state, the office of small business, the general	24
assembly, or a committee of the senate or house of representatives	25
under section 111.15, 117.20, 119.03, 119.031, 119.032, 119.0311,	26
119.04, 121.24, 121.39, 127.18, 4141.14, 5117.02, or 5703.14 of	27
the Revised Code or any other statute;	28

(D) The several publishers of the Administrative Code; and

29

(E) The common sense initiative office; and

30

(F) Any other person or governmental officer or entity whose	31
inclusion in the system is required for the system to be a	32
complete electronic rule-filing system.	33

The electronic rule-filing system is to enable rules and	34
rule-making and rule-related documents to be filed, and official	35
responses to these filings to be made, exclusively by electronic	36
means.	37

Sec. 108.11. As used in sections 108.11 to 108.13 of the	38
Revised Code, "proposed rule" and "small business" have the	39
meanings defined in section 121.81 of the Revised Code.	40

Sections 108.11 to 108.13 and 108.21 to 108.23 of the Revised	41
Code are complementary to sections 121.81 to 121.83 of the Revised	42
Code.	43

Sec. 108.12. A proposed rule that affects small businesses	44
has an adverse impact on small businesses if a provision of the	45
proposed rule that applies to small businesses has any of the	46
following effects:	47

(A) It requires a license, permit, or any other prior	48
authorization to engage in or operate a line of business;	49

(B) It imposes a criminal penalty, a civil penalty, or	50
another sanction, or creates a cause of action, for failure to	51
comply with its terms;	52

(C) It requires the report of information as a condition of	53
compliance; or	54

(D) It otherwise requires a small business to spend time or	55
make expenditures that are not directly related to its business	56
operations.	57

Sec. 108.13. The common sense initiative office shall	58
develop, and as it becomes necessary or advisable shall improve, a	59
small business impact analysis instrument that shall be used as	60
required by law to evaluate proposed rules that might have an	61
adverse impact on small businesses. The instrument shall be in	62
writing, and shall include the following:	63

(A) Standards that encourage agencies to draft proposed	64
rules, and proposed revisions thereto, in such a manner that the	65
rules will be as easy to understand as their subject matter	66
permits;	67

(B) Performance measures that can be applied to evaluate the	68
likely efficiency and effectiveness of a proposed rule in	69
achieving its regulatory objectives;	70

(C) Standards for evaluating alternative means of regulation	71
that might reduce or eliminate the adverse impact a proposed rule	72
might have on small businesses;	73

(D) Standards that will promote transparency, predictability,	74
consistency, and flexibility in the implementation and operation	75
of a proposed rule, as well as an overall favorable balance in a	76
proposed rule between its regulatory objectives and the costs of	77
compliance it imposes on regulated persons;	78

(E) Standards that require an agency to encourage small	79
businesses that might be adversely impacted by a proposed rule to	80
participate in the rule-making process, beginning at the earliest	81
practicable stage, and that will encourage small businesses that	82
are or may be adversely impacted by a proposed rule to offer	83
advice and assistance to the agency when the proposed rule is	84
adopted and is being implemented and administered; and	85

(F) Any other standards or measures, or any other criteria,	86
the office concludes will reduce or eliminate adverse impacts on	87
small businesses and foster improved regulation and economic	88
development in the state.	89

Alternative means of regulation include, and are not limited	90
to, less stringent compliance or reporting requirements, less	91
stringent schedules or deadlines, consolidation or simplification	92
of requirements, establishment of performance standards to replace	93
operational standards, and exemption of small businesses.	94

The instrument does not need to be adopted as a rule. The	95
office shall publish the current instrument in the register of	96
Ohio.	97

Sec. 108.21. The common sense initiative office is	98
established within the office of the lieutenant governor. The	99
lieutenant governor shall organize, and as it becomes necessary or	100
advisable may re-organize, the office. The lieutenant governor	101
shall appoint professional, technical, and clerical personnel who	102
are necessary if the work of the office is to be carried out	103
efficiently and successfully. The employees are in the	104
unclassified service and serve at the pleasure of the lieutenant	105
governor. The lieutenant governor shall provide the office with	106
office space, and with furnishings, equipment, and resources, as	107
is necessary if the work of the office is to be carried out	108
efficiently and successfully. References in law authorizing or	109
requiring action by the "common sense initiative office" imply	110
action being taken by relevant personnel of the office.	111

Sec. 108.22. The common sense initiative office shall	112
establish a system through which any person may comment	113
concerning:	114

(A) The adverse impact on small businesses a proposed rule	115
might have;	116

(B) The adverse impact on small businesses that a rule	117
currently in effect is having; or	118

(C) The adverse impact on small businesses the implementation	119
or administration of a rule currently in effect is having.	120

The office shall prepare a plan for the comment system, and	121
shall revise or replace the plan to improve the comment system in	122
light of learning, experience, or technological development. The	123
office shall publish the current plan for the comment system in	124
the register of Ohio.	125

At a minimum, the plan for the comment system shall provide	126
for communication of comments as follows: The office shall accept	127
comments in writing that are delivered to the office personally,	128
by mail, or by express. The office shall establish a toll-free	129
telephone number that a person may call to offer comments. (The	130
telephone number shall be connected to a recording device at its	131
answering point.) And the office shall create a web site that	132
enables a person to offer comments electronically.	133

The office shall forward written, telephoned, and	134
electronically transmitted comments to the state agency having	135
jurisdiction over the rule. The office has no other duty with	136
regard to the comments.	137

Sec. 108.23. The common sense initiative office, in	138
consultation with the director of administrative services, shall	139
develop, and as it becomes necessary or advisable may improve,	140
customer service performance standards for state agencies and	141
their officers and employees. The office shall address the	142
standards specifically to the several state agencies as they	143
function as part of state government, and to the several positions	144
held by a state agency's officers and employees. The office shall	145
base the standards pertaining to officers and employees on the job	146
descriptions of the positions they hold in the state agency. The	147
office is not required to adopt the standards by rule.	148

The office shall reduce the standards to writing, and shall	149
transmit a copy of the standards that pertain to a state agency	150
and its officers and employees to the director or other head of	151
the state agency. The office also shall publish the current	152
standards in the register of Ohio.	153

Sec. 111.15.  (A) As used in this section:

154

(1) "Rule" includes any rule, regulation, bylaw, or standard	155
having a general and uniform operation adopted by an agency under	156
the authority of the laws governing the agency; any appendix to a	157
rule; and any internal management rule. "Rule" does not include	158
any guideline adopted pursuant to section 3301.0714 of the Revised	159
Code, any order respecting the duties of employees, any finding,	160
any determination of a question of law or fact in a matter	161
presented to an agency, or any rule promulgated pursuant to	162
Chapter 119., section 4141.14, division (C)(1) or (2) of section	163
5117.02, or section 5703.14 of the Revised Code. "Rule" includes	164
any amendment or rescission of a rule.	165

(2) "Agency" means any governmental entity of the state and	166
includes, but is not limited to, any board, department, division,	167
commission, bureau, society, council, institution, state college	168
or university, community college district, technical college	169
district, or state community college. "Agency" does not include	170
the general assembly, the controlling board, the adjutant	171
general's department, or any court.	172

(3) "Internal management rule" means any rule, regulation,	173
bylaw, or standard governing the day-to-day staff procedures and	174
operations within an agency.	175

(4) "Substantive revision" has the same meaning as in	176
division (J) of section 119.01 of the Revised Code.	177

(B)(1) Any rule, other than a rule of an emergency nature,	178
adopted by any agency pursuant to this section shall be effective	179
on the tenth day after the day on which the rule in final form and	180
in compliance with division (B)(3) of this section is filed as	181
follows:	182

(a) The rule shall be filed in electronic form with both the	183
secretary of state and the director of the legislative service	184
commission;	185

(b) The rule shall be filed in electronic form with the joint	186
committee on agency rule review. Division (B)(1)(b) of this	187
section does not apply to any rule to which division (D) of this	188
section does not apply.	189

An agency that adopts or amends a rule that is subject to	190
division (D) of this section shall assign a review date to the	191
rule that is not later than five years after its effective date.	192
If no review date is assigned to a rule, or if a review date	193
assigned to a rule exceeds the five-year maximum, the review date	194
for the rule is five years after its effective date. A rule with a	195
review date is subject to review under section 119.032 of the	196
Revised Code. This paragraph does not apply to a rule of a state	197
college or university, community college district, technical	198
college district, or state community college.	199

If all filings are not completed on the same day, the rule	200
shall be effective on the tenth day after the day on which the	201
latest filing is completed. If an agency in adopting a rule	202
designates an effective date that is later than the effective date	203
provided for by division (B)(1) of this section, the rule if filed	204
as required by such division shall become effective on the later	205
date designated by the agency.	206

Any rule that is required to be filed under division (B)(1)	207
of this section is also subject to division (D) of this section if	208
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or	209
(8) of this section.	210

If a rule incorporates a text or other material by reference,	211
the agency shall comply with sections 121.71 to 121.76 of the	212
Revised Code.	213

(2) A rule of an emergency nature necessary for the immediate	214
preservation of the public peace, health, or safety shall state	215
the reasons for the necessity. The emergency rule, in final form	216
and in compliance with division (B)(3) of this section, shall be	217
filed in electronic form with the secretary of state, the director	218
of the legislative service commission, and the joint committee on	219
agency rule review. The emergency rule is effective immediately	220
upon completion of the latest filing, except that if the agency in	221
adopting the emergency rule designates an effective date, or date	222
and time of day, that is later than the effective date and time	223
provided for by division (B)(2) of this section, the emergency	224
rule if filed as required by such division shall become effective	225
at the later date, or later date and time of day, designated by	226
the agency.	227

An emergency rule becomes invalid at the end of the ninetieth	228
day it is in effect. Prior to that date, the agency may file the	229
emergency rule as a nonemergency rule in compliance with division	230
(B)(1) of this section. The agency may not refile the emergency	231
rule in compliance with division (B)(2) of this section so that,	232
upon the emergency rule becoming invalid under such division, the	233
emergency rule will continue in effect without interruption for	234
another ninety-day period.	235

(3) An agency shall file a rule under division (B)(1) or (2)	236
of this section in compliance with the following standards and	237
procedures:	238

(a) The rule shall be numbered in accordance with the	239
numbering system devised by the director for the Ohio	240
administrative code.	241

(b) The rule shall be prepared and submitted in compliance	242
with the rules of the legislative service commission.	243

(c) The rule shall clearly state the date on which it is to	244
be effective and the date on which it will expire, if known.	245

(d) Each rule that amends or rescinds another rule shall	246
clearly refer to the rule that is amended or rescinded. Each	247
amendment shall fully restate the rule as amended.	248

If the director of the legislative service commission or the	249
director's designee gives an agency notice pursuant to section	250
103.05 of the Revised Code that a rule filed by the agency is not	251
in compliance with the rules of the legislative service	252
commission, the agency shall within thirty days after receipt of	253
the notice conform the rule to the rules of the commission as	254
directed in the notice.	255

(C) All rules filed pursuant to divisions (B)(1)(a) and (2)	256
of this section shall be recorded by the secretary of state and	257
the director under the title of the agency adopting the rule and	258
shall be numbered according to the numbering system devised by the	259
director. The secretary of state and the director shall preserve	260
the rules in an accessible manner. Each such rule shall be a	261
public record open to public inspection and may be transmitted to	262
any law publishing company that wishes to reproduce it.	263

(D) At least sixty-five days before a board, commission,	264
department, division, or bureau of the government of the state	265
files a rule under division (B)(1) of this section, it shall file	266
the full text of the proposed rule in electronic form with the	267
joint committee on agency rule review, and the proposed rule is	268
subject to legislative review and invalidation under division (I)	269
of section 119.03 of the Revised Code. If a state board,	270
commission, department, division, or bureau makes a substantive	271
revision in a proposed rule after it is filed with the joint	272
committee, the state board, commission, department, division, or	273
bureau shall promptly file the full text of the proposed rule in	274
its revised form in electronic form with the joint committee. The	275
latest version of a proposed rule as filed with the joint	276
committee supersedes each earlier version of the text of the same	277
proposed rule. Except as provided in division (F) of this section,	278
a state board, commission, department, division, or bureau shall	279
also file the rule summary and fiscal analysis prepared under	280
section 121.24 or 127.18 of the Revised Code, or both, in	281
electronic form along with a proposed rule, and along with a	282
proposed rule in revised form, that is filed under this division.	283
And, if a proposed rule has an adverse impact on small businesses,	284
the state board, commission, department, division, or bureau also	285
shall file the small business impact analysis in electronic form	286
along with the proposed rule, or the proposed rule in revised	287
form, that is filed under this division.	288

As used in this division, "commission" includes the public	289
utilities commission when adopting rules under a federal or state	290
statute.	291

This division does not apply to any of the following:

292

(1) A proposed rule of an emergency nature;

293

(2) A rule proposed under section 1121.05, 1121.06, 1155.18,	294
1163.22, 1349.33, 1707.201, 1733.412, 4123.29, 4123.34, 4123.341,	295
4123.342, 4123.40, 4123.411, 4123.44, or 4123.442 of the Revised	296
Code;	297

(3) A rule proposed by an agency other than a board,	298
commission, department, division, or bureau of the government of	299
the state;	300

(4) A proposed internal management rule of a board,	301
commission, department, division, or bureau of the government of	302
the state;	303

(5) Any proposed rule that must be adopted verbatim by an	304
agency pursuant to federal law or rule, to become effective within	305
sixty days of adoption, in order to continue the operation of a	306
federally reimbursed program in this state, so long as the	307
proposed rule contains both of the following:	308

(a) A statement that it is proposed for the purpose of	309
complying with a federal law or rule;	310

(b) A citation to the federal law or rule that requires	311
verbatim compliance.	312

(6) An initial rule proposed by the director of health to	313
impose safety standards and quality-of-care standards with respect	314
to a health service specified in section 3702.11 of the Revised	315
Code, or an initial rule proposed by the director to impose	316
quality standards on a facility listed in division (A)(4) of	317
section 3702.30 of the Revised Code, if section 3702.12 of the	318
Revised Code requires that the rule be adopted under this section;	319

(7) A rule of the state lottery commission pertaining to	320
instant game rules.	321

If a rule is exempt from legislative review under division	322
(D)(5) of this section, and if the federal law or rule pursuant to	323
which the rule was adopted expires, is repealed or rescinded, or	324
otherwise terminates, the rule is thereafter subject to	325
legislative review under division (D) of this section.	326

(E) Whenever a state board, commission, department, division,	327
or bureau files a proposed rule or a proposed rule in revised form	328
under division (D) of this section, it shall also file the full	329
text of the same proposed rule or proposed rule in revised form in	330
electronic form with the secretary of state and the director of	331
the legislative service commission. Except as provided in division	332
(F) of this section, a state board, commission, department,	333
division, or bureau shall file the rule summary and fiscal	334
analysis prepared under section 121.24 or 127.18 of the Revised	335
Code, or both, in electronic form along with a proposed rule or	336
proposed rule in revised form that is filed with the secretary of	337
state or the director of the legislative service commission.	338

(F) Except as otherwise provided in this division, the	339
auditor of state or the auditor of state's designee is not	340
required to file a rule summary and fiscal analysis along with a	341
proposed rule, or proposed rule in revised form, that the auditor	342
of state proposes under section 117.12, 117.19, 117.38, or 117.43	343
of the Revised Code and files under division (D) or (E) of this	344
section. If, however, the auditor of state or the designee	345
prepares a rule summary and fiscal analysis of the original	346
version of such a proposed rule for purposes of complying with	347
section 121.24 of the Revised Code, the auditor of state or	348
designee shall file the rule summary and fiscal analysis in	349
electronic form along with the original version of the proposed	350
rule filed under division (D) or (E) of this section.	351

Sec. 117.20.  (A) In adopting rules pursuant to Chapter 117.	352
of the Revised Code, the auditor of state or the auditor of	353
state's designee shall do both of the following:	354

(1) Before adopting any such rule, except a rule of an	355
emergency nature, do each of the following:	356

(a) At least thirty-five days before any public hearing on	357
the proposed rule-making action, mail notice of the hearing to	358
each public office and to each statewide organization that the	359
auditor of state or designee determines will be affected or	360
represents persons who will be affected by the proposed	361
rule-making action;	362

(b) Mail a copy of the proposed rule to any person or	363
organization that requests a copy within five days after receipt	364
of the request;	365

(c) Consult with appropriate state and local government	366
agencies, or with persons representative of their interests,	367
including statewide organizations of local government officials,	368
and consult with accounting professionals and other interested	369
persons;	370

(d) Conduct, on the date and at the time and place designated	371
in the notice, a public hearing at which any person affected by	372
the proposed rule, including statewide organizations of local	373
government officials, may appear and be heard in person, by	374
attorney, or both, and may present the person's or organization's	375
position or contentions orally or in writing.	376

(2) Except as otherwise provided in division (A)(2) of this	377
section, comply with divisions (B) to (E) of section 111.15 of the	378
Revised Code. The auditor of state is not required to file a rule	379
summary and fiscal analysis along with any copy of a proposed	380
rule, or proposed rule in revised form, that is filed with the	381
joint committee on agency rule review, the secretary of state, or	382
the director of the legislative service commission under division	383
(D) or (E) of section 111.15 of the Revised Code; however, if the	384
auditor of state or the auditor of state's designee prepares a	385
rule summary and fiscal analysis of the original version of a	386
proposed rule for purposes of complying with section 121.24 of the	387
Revised Code, the auditor of state or designee shall file a copy	388
of the rule summary and fiscal analysis in electronic form along	389
with the original version of the proposed rule filed under	390
division (D) or (E) of section 111.15 of the Revised Code.	391

(B) The auditor of state shall diligently discharge the	392
duties imposed by divisions (A)(1)(a), (b), and (c) of this	393
section, but failure to mail any notice or copy of a proposed	394
rule, or to consult with any person or organization, shall not	395
invalidate any rule.	396

(C) Notwithstanding any contrary provision of the Revised	397
Code, the auditor of state may prepare and disseminate, to public	398
offices and other interested persons and organizations, advisory	399
bulletins, directives, and instructions relating to accounting and	400
financial reporting systems, budgeting procedures, fiscal	401
controls, and the constructions by the auditor of state of	402
constitutional and statutory provisions, court decisions, and	403
opinions of the attorney general. The bulletins, directives, and	404
instructions shall be of an advisory nature only.	405

(D) As used in this section, "rule" includes the adoption,	406
amendment, or rescission of a rule.	407

Sec. 119.03.  In the adoption, amendment, or rescission of	408
any rule, an agency shall comply with the following procedure:	409

(A) Reasonable public notice shall be given in the register	410
of Ohio at least thirty days prior to the date set for a hearing,	411
in the form the agency determines. The agency shall file copies of	412
the public notice under division (B) of this section. (The agency	413
gives public notice in the register of Ohio when the public notice	414
is published in the register under that division.)	415

The public notice shall include:

416

(1) A statement of the agency's intention to consider	417
adopting, amending, or rescinding a rule;	418

(2) A synopsis of the proposed rule, amendment, or rule to be	419
rescinded or a general statement of the subject matter to which	420
the proposed rule, amendment, or rescission relates;	421

(3) A statement of the reason or purpose for adopting,	422
amending, or rescinding the rule;	423

(4) The date, time, and place of a hearing on the proposed	424
action, which shall be not earlier than the thirty-first nor later	425
than the fortieth day after the proposed rule, amendment, or	426
rescission is filed under division (B) of this section.	427

In addition to public notice given in the register of Ohio,	428
the agency may give whatever other notice it reasonably considers	429
necessary to ensure notice constructively is given to all persons	430
who are subject to or affected by the proposed rule, amendment, or	431
rescission.	432

The agency shall provide a copy of the public notice required	433
under division (A) of this section to any person who requests it	434
and pays a reasonable fee, not to exceed the cost of copying and	435
mailing.	436

(B) The full text of the proposed rule, amendment, or rule to	437
be rescinded, accompanied by the public notice required under	438
division (A) of this section, shall be filed in electronic form	439
with the secretary of state and with the director of the	440
legislative service commission. (If in compliance with this	441
division an agency files more than one proposed rule, amendment,	442
or rescission at the same time, and has prepared a public notice	443
under division (A) of this section that applies to more than one	444
of the proposed rules, amendments, or rescissions, the agency	445
shall file only one notice with the secretary of state and with	446
the director for all of the proposed rules, amendments, or	447
rescissions to which the notice applies.) The proposed rule,	448
amendment, or rescission and public notice shall be filed as	449
required by this division at least sixty-five days prior to the	450
date on which the agency, in accordance with division (D) of this	451
section, issues an order adopting the proposed rule, amendment, or	452
rescission.	453

If the proposed rule, amendment, or rescission incorporates a	454
text or other material by reference, the agency shall comply with	455
sections 121.71 to 121.76 of the Revised Code.	456

The proposed rule, amendment, or rescission shall be	457
available for at least thirty days prior to the date of the	458
hearing at the office of the agency in printed or other legible	459
form without charge to any person affected by the proposal.	460
Failure to furnish such text to any person requesting it shall not	461
invalidate any action of the agency in connection therewith.	462

If the agency files a substantive revision in the text of the	463
proposed rule, amendment, or rescission under division (H) of this	464
section, it shall also promptly file the full text of the proposed	465
rule, amendment, or rescission in its revised form in electronic	466
form with the secretary of state and with the director of the	467
legislative service commission.	468

The agency shall file the rule summary and fiscal analysis	469
prepared under section 121.24 or 127.18 of the Revised Code, or	470
both, in electronic form along with a proposed rule, amendment, or	471
rescission or proposed rule, amendment, or rescission in revised	472
form that is filed with the secretary of state or the director of	473
the legislative service commission.	474

The director of the legislative service commission shall	475
publish in the register of Ohio the full text of the original and	476
each revised version of a proposed rule, amendment, or rescission;	477
the full text of a public notice; and the full text of a rule	478
summary and fiscal analysis that is filed with the director under	479
this division.	480

(C) On the date and at the time and place designated in the	481
notice, the agency shall conduct a public hearing at which any	482
person affected by the proposed action of the agency may appear	483
and be heard in person, by the person's attorney, or both, may	484
present the person's position, arguments, or contentions, orally	485
or in writing, offer and examine witnesses, and present evidence	486
tending to show that the proposed rule, amendment, or rescission,	487
if adopted or effectuated, will be unreasonable or unlawful. An	488
agency may permit persons affected by the proposed rule,	489
amendment, or rescission to present their positions, arguments, or	490
contentions in writing, not only at the hearing, but also for a	491
reasonable period before, after, or both before and after the	492
hearing. A person who presents a position or arguments or	493
contentions in writing before or after the hearing is not required	494
to appear at the hearing.	495

At the hearing, the testimony shall be recorded. Such record	496
shall be made at the expense of the agency. The agency is required	497
to transcribe a record that is not sight readable only if a person	498
requests transcription of all or part of the record and agrees to	499
reimburse the agency for the costs of the transcription. An agency	500
may require the person to pay in advance all or part of the cost	501
of the transcription.	502

In any hearing under this section the agency may administer	503
oaths or affirmations.	504

(D) After complying with divisions (A), (B), (C), and (H) of	505
this section, and when the time for legislative review and	506
invalidation under division (I) of this section has expired, the	507
agency may issue an order adopting the proposed rule or the	508
proposed amendment or rescission of the rule, consistent with the	509
synopsis or general statement included in the public notice. At	510
that time the agency shall designate the effective date of the	511
rule, amendment, or rescission, which shall not be earlier than	512
the tenth day after the rule, amendment, or rescission has been	513
filed in its final form as provided in section 119.04 of the	514
Revised Code.	515

(E) Prior to the effective date of a rule, amendment, or	516
rescission, the agency shall make a reasonable effort to inform	517
those affected by the rule, amendment, or rescission and to have	518
available for distribution to those requesting it the full text of	519
the rule as adopted or as amended.	520

(F) If the governor, upon the request of an agency,	521
determines that an emergency requires the immediate adoption,	522
amendment, or rescission of a rule, the governor shall issue an	523
order, the text of which shall be filed in electronic form with	524
the agency, the secretary of state, the director of the	525
legislative service commission, and the joint committee on agency	526
rule review, that the procedure prescribed by this section with	527
respect to the adoption, amendment, or rescission of a specified	528
rule is suspended. The agency may then adopt immediately the	529
emergency rule, amendment, or rescission and it becomes effective	530
on the date the rule, amendment, or rescission, in final form and	531
in compliance with division (A)(2) of section 119.04 of the	532
Revised Code, areis filed in electronic form with the secretary	533
of state, the director of the legislative service commission, and	534
the joint committee on agency rule review. If all filings are not	535
completed on the same day, the emergency rule, amendment, or	536
rescission shall be effective on the day on which the latest	537
filing is completed. The director shall publish the full text of	538
the emergency rule, amendment, or rescission in the register of	539
Ohio.	540

The emergency rule, amendment, or rescission shall become	541
invalid at the end of the ninetieth day it is in effect. Prior to	542
that date the agency may adopt the emergency rule, amendment, or	543
rescission as a nonemergency rule, amendment, or rescission by	544
complying with the procedure prescribed by this section for the	545
adoption, amendment, and rescission of nonemergency rules. The	546
agency shall not use the procedure of this division to readopt the	547
emergency rule, amendment, or rescission so that, upon the	548
emergency rule, amendment, or rescission becoming invalid under	549
this division, the emergency rule, amendment, or rescission will	550
continue in effect without interruption for another ninety-day	551
period, except when division (I)(2)(a) of this section prevents	552
the agency from adopting the emergency rule, amendment, or	553
rescission as a nonemergency rule, amendment, or rescission within	554
the ninety-day period.	555

This division does not apply to the adoption of any emergency	556
rule, amendment, or rescission by the tax commissioner under	557
division (C)(2) of section 5117.02 of the Revised Code.	558

(G) Rules adopted by an authority within the department of	559
job and family services for the administration or enforcement of	560
Chapter 4141. of the Revised Code or of the department of taxation	561
shall be effective without a hearing as provided by this section	562
if the statutes pertaining to such agency specifically give a	563
right of appeal to the board of tax appeals or to a higher	564
authority within the agency or to a court, and also give the	565
appellant a right to a hearing on such appeal. This division does	566
not apply to the adoption of any rule, amendment, or rescission by	567
the tax commissioner under division (C)(1) or (2) of section	568
5117.02 of the Revised Code, or deny the right to file an action	569
for declaratory judgment as provided in Chapter 2721. of the	570
Revised Code from the decision of the board of tax appeals or of	571
the higher authority within such agency.	572

(H) When any agency files a proposed rule, amendment, or	573
rescission under division (B) of this section, it shall also file	574
in electronic form with the joint committee on agency rule review	575
the full text of the proposed rule, amendment, or rule to be	576
rescinded in the same form and the public notice required under	577
division (A) of this section. (If in compliance with this division	578
an agency files more than one proposed rule, amendment, or	579
rescission at the same time, and has given a public notice under	580
division (A) of this section that applies to more than one of the	581
proposed rules, amendments, or rescissions, the agency shall file	582
only one notice with the joint committee for all of the proposed	583
rules, amendments, or rescissions to which the notice applies.) If	584
the agency makes a substantive revision in a proposed rule,	585
amendment, or rescission after it is filed with the joint	586
committee, the agency shall promptly file the full text of the	587
proposed rule, amendment, or rescission in its revised form in	588
electronic form with the joint committee. The latest version of a	589
proposed rule, amendment, or rescission as filed with the joint	590
committee supersedes each earlier version of the text of the same	591
proposed rule, amendment, or rescission. An agency shall file the	592
rule summary and fiscal analysis prepared under section 121.24 or	593
127.18 of the Revised Code, or both, in electronic form along with	594
a proposed rule, amendment, or rescission, and along with a	595
proposed rule, amendment, or rescission in revised form, that is	596
filed under this division. And, if a proposed rule, amendment, or	597
rescission has an adverse impact on small businesses, the agency	598
also shall file the small business impact analysis in electronic	599
form along with the proposed rule, amendment, or rescission, or	600
along with the proposed rule, amendment, or rescission in revised	601
form, that is filed under this division.	602

This division does not apply to:

603

(1) An emergency rule, amendment, or rescission;

604

(2) Any proposed rule, amendment, or rescission that must be	605
adopted verbatim by an agency pursuant to federal law or rule, to	606
become effective within sixty days of adoption, in order to	607
continue the operation of a federally reimbursed program in this	608
state, so long as the proposed rule contains both of the	609
following:	610

(a) A statement that it is proposed for the purpose of	611
complying with a federal law or rule;	612

(b) A citation to the federal law or rule that requires	613
verbatim compliance.	614

If a rule or amendment is exempt from legislative review	615
under division (H)(2) of this section, and if the federal law or	616
rule pursuant to which the rule or amendment was adopted expires,	617
is repealed or rescinded, or otherwise terminates, the rule or	618
amendment, or its rescission, is thereafter subject to legislative	619
review under division (H) of this section.	620

(I)(1) The joint committee on agency rule review may	621
recommend the adoption of a concurrent resolution invalidating a	622
proposed rule, amendment, rescission, or part thereof if it finds	623
any of the following:	624

(a) That the rule-making agency has exceeded the scope of its	625
statutory authority in proposing the rule, amendment, or	626
rescission;	627

(b) That the proposed rule, amendment, or rescission	628
conflicts with another rule, amendment, or rescission adopted by	629
the same or a different rule-making agency;	630

(c) That the proposed rule, amendment, or rescission	631
conflicts with the legislative intent in enacting the statute	632
under which the rule-making agency proposed the rule, amendment,	633
or rescission;	634

(d) That the rule-making agency has failed to prepare a	635
complete and accurate rule summary and fiscal analysis of the	636
proposed rule, amendment, or rescission as required by section	637
121.24 or 127.18 of the Revised Code, or both, or that;	638

(e) That the proposed rule, amendment, or rescission	639
incorporates a text or other material by reference and either the	640
rule-making agency has failed to file the text or other material	641
incorporated by reference as required by section 121.73 of the	642
Revised Code or, in the case of a proposed rule or amendment, the	643
incorporation by reference fails to meet the standards stated in	644
section 121.72, 121.75, or 121.76 of the Revised Code;	645

(f) That the rule-making agency has failed to demonstrate	646
that the regulatory intent of the proposed rule, amendment, or	647
rescission outweighs its adverse impact on small businesses in	648
this state.	649

The joint committee shall not hold its public hearing on a	650
proposed rule, amendment, or rescission earlier than the	651
forty-first day after the original version of the proposed rule,	652
amendment, or rescission was filed with the joint committee.	653

The house of representatives and senate may adopt a	654
concurrent resolution invalidating a proposed rule, amendment,	655
rescission, or part thereof. The concurrent resolution shall state	656
which of the specific rules, amendments, rescissions, or parts	657
thereof are invalidated. A concurrent resolution invalidating a	658
proposed rule, amendment, or rescission shall be adopted not later	659
than the sixty-fifth day after the original version of the text of	660
the proposed rule, amendment, or rescission is filed with the	661
joint committee, except that if more than thirty-five days after	662
the original version is filed the rule-making agency either files	663
a revised version of the text of the proposed rule, amendment, or	664
rescission, or revises the rule summary and fiscal analysis in	665
accordance with division (I)(4) of this section, a concurrent	666
resolution invalidating the proposed rule, amendment, or	667
rescission shall be adopted not later than the thirtieth day after	668
the revised version of the proposed rule or rule summary and	669
fiscal analysis is filed. If, after the joint committee on agency	670
rule review recommends the adoption of a concurrent resolution	671
invalidating a proposed rule, amendment, rescission, or part	672
thereof, the house of representatives or senate does not, within	673
the time remaining for adoption of the concurrent resolution, hold	674
five floor sessions at which its journal records a roll call vote	675
disclosing a sufficient number of members in attendance to pass a	676
bill, the time within which that house may adopt the concurrent	677
resolution is extended until it has held five such floor sessions.	678

Within five days after the adoption of a concurrent	679
resolution invalidating a proposed rule, amendment, rescission, or	680
part thereof, the clerk of the senate shall send the rule-making	681
agency, the secretary of state, and the director of the	682
legislative service commission in electronic form a certified text	683
of the resolution together with a certification stating the date	684
on which the resolution takes effect. The secretary of state and	685
the director of the legislative service commission shall each note	686
the invalidity of the proposed rule, amendment, rescission, or	687
part thereof, and shall each remove the invalid proposed rule,	688
amendment, rescission, or part thereof from the file of proposed	689
rules. The rule-making agency shall not proceed to adopt in	690
accordance with division (D) of this section, or to file in	691
accordance with division (B)(1) of section 111.15 of the Revised	692
Code, any version of a proposed rule, amendment, rescission, or	693
part thereof that has been invalidated by concurrent resolution.	694

Unless the house of representatives and senate adopt a	695
concurrent resolution invalidating a proposed rule, amendment,	696
rescission, or part thereof within the time specified by this	697
division, the rule-making agency may proceed to adopt in	698
accordance with division (D) of this section, or to file in	699
accordance with division (B)(1) of section 111.15 of the Revised	700
Code, the latest version of the proposed rule, amendment, or	701
rescission as filed with the joint committee. If by concurrent	702
resolution certain of the rules, amendments, rescissions, or parts	703
thereof are specifically invalidated, the rule-making agency may	704
proceed to adopt, in accordance with division (D) of this section,	705
or to file in accordance with division (B)(1) of section 111.15 of	706
the Revised Code, the latest version of the proposed rules,	707
amendments, rescissions, or parts thereof as filed with the joint	708
committee that are not specifically invalidated. The rule-making	709
agency may not revise or amend any proposed rule, amendment,	710
rescission, or part thereof that has not been invalidated except	711
as provided in this chapter or in section 111.15 of the Revised	712
Code.	713

(2)(a) A proposed rule, amendment, or rescission that is	714
filed with the joint committee under division (H) of this section	715
or division (D) of section 111.15 of the Revised Code shall be	716
carried over for legislative review to the next succeeding regular	717
session of the general assembly if the original or any revised	718
version of the proposed rule, amendment, or rescission is filed	719
with the joint committee on or after the first day of December of	720
any year.	721

(b) The latest version of any proposed rule, amendment, or	722
rescission that is subject to division (I)(2)(a) of this section,	723
as filed with the joint committee, is subject to legislative	724
review and invalidation in the next succeeding regular session of	725
the general assembly in the same manner as if it were the original	726
version of a proposed rule, amendment, or rescission that had been	727
filed with the joint committee for the first time on the first day	728
of the session. A rule-making agency shall not adopt in accordance	729
with division (D) of this section, or file in accordance with	730
division (B)(1) of section 111.15 of the Revised Code, any version	731
of a proposed rule, amendment, or rescission that is subject to	732
division (I)(2)(a) of this section until the time for legislative	733
review and invalidation, as contemplated by division (I)(2)(b) of	734
this section, has expired.	735

(3) Invalidation of any version of a proposed rule,	736
amendment, rescission, or part thereof by concurrent resolution	737
shall prevent the rule-making agency from instituting or	738
continuing proceedings to adopt any version of the same proposed	739
rule, amendment, rescission, or part thereof for the duration of	740
the general assembly that invalidated the proposed rule,	741
amendment, rescission, or part thereof unless the same general	742
assembly adopts a concurrent resolution permitting the rule-making	743
agency to institute or continue such proceedings.	744

The failure of the general assembly to invalidate a proposed	745
rule, amendment, rescission, or part thereof under this section	746
shall not be construed as a ratification of the lawfulness or	747
reasonableness of the proposed rule, amendment, rescission, or any	748
part thereof or of the validity of the procedure by which the	749
proposed rule, amendment, rescission, or any part thereof was	750
proposed or adopted.	751

(4) In lieu of recommending a concurrent resolution to	752
invalidate a proposed rule, amendment, rescission, or part thereof	753
because the rule-making agency has failed to prepare a complete	754
and accurate fiscal analysis, the joint committee on agency rule	755
review may issue, on a one-time basis, for rules, amendments,	756
rescissions, or parts thereof that have a fiscal effect on school	757
districts, counties, townships, or municipal corporations, a	758
finding that the rule summary and fiscal analysis is incomplete or	759
inaccurate and order the rule-making agency to revise the rule	760
summary and fiscal analysis and refile it with the proposed rule,	761
amendment, rescission, or part thereof. If an emergency rule is	762
filed as a nonemergency rule before the end of the ninetieth day	763
of the emergency rule's effectiveness, and the joint committee	764
issues a finding and orders the rule-making agency to refile under	765
division (I)(4) of this section, the governor may also issue an	766
order stating that the emergency rule shall remain in effect for	767
an additional sixty days after the ninetieth day of the emergency	768
rule's effectiveness. The governor's orders shall be filed in	769
accordance with division (F) of this section. The joint committee	770
shall send in electronic form to the rule-making agency, the	771
secretary of state, and the director of the legislative service	772
commission a certified text of the finding and order to revise the	773
rule summary and fiscal analysis, which shall take immediate	774
effect.	775

An order issued under division (I)(4) of this section shall	776
prevent the rule-making agency from instituting or continuing	777
proceedings to adopt any version of the proposed rule, amendment,	778
rescission, or part thereof until the rule-making agency revises	779
the rule summary and fiscal analysis and refiles it in electronic	780
form with the joint committee along with the proposed rule,	781
amendment, rescission, or part thereof. If the joint committee	782
finds the rule summary and fiscal analysis to be complete and	783
accurate, the joint committee shall issue a new order noting that	784
the rule-making agency has revised and refiled a complete and	785
accurate rule summary and fiscal analysis. The joint committee	786
shall send in electronic form to the rule-making agency, the	787
secretary of state, and the director of the legislative service	788
commission a certified text of this new order. The secretary of	789
state and the director of the legislative service commission shall	790
each link this order to the proposed rule, amendment, rescission,	791
or part thereof. The rule-making agency may then proceed to adopt	792
in accordance with division (D) of this section, or to file in	793
accordance with division (B)(1) of section 111.15 of the Revised	794
Code, the proposed rule, amendment, rescission, or part thereof	795
that was subject to the finding and order under division (I)(4) of	796
this section. If the joint committee determines that the revised	797
rule summary and fiscal analysis is still inaccurate or	798
incomplete, the joint committee shall recommend the adoption of a	799
concurrent resolution in accordance with division (I)(1) of this	800
section.	801

Sec. 121.39.  (A) As used in this section, "environmental	802
protection" means any of the following:	803

(1) Protection of human health or safety, biological	804
resources, or natural resources by preventing, reducing, or	805
remediating the pollution or degradation of air, land, or water	806
resources or by preventing or limiting the exposure of humans,	807
animals, or plants to pollution;	808

(2) Appropriation or regulation of privately owned property	809
to preserve air, land, or water resources in a natural state or to	810
wholly or partially restore them to a natural state;	811

(3) Regulation of the collection, management, treatment,	812
reduction, storage, or disposal of solid, hazardous, radioactive,	813
or other wastes;	814

(4) Plans or programs to promote or regulate the	815
conservation, recycling, or reuse of energy, materials, or wastes.	816

(B) Except as otherwise provided in division (E) of this	817
section, when proposed legislation dealing with environmental	818
protection or containing a component dealing with environmental	819
protection is referred to a committee of the general assembly,	820
other than a committee on rules or reference, the sponsor of the	821
legislation, at the time of the first hearing of the legislation	822
before the committee, shall submit to the members of the committee	823
a written statement identifying either the documentation that is	824
the basis of the legislation or the federal requirement or	825
requirements with which the legislation is intended to comply. If	826
the legislation is not based on documentation or has not been	827
introduced to comply with a federal requirement or requirements,	828
the written statement from the sponsor shall so indicate.	829

Also at the time of the first hearing of the legislation	830
before the committee, a statewide organization that represents	831
businesses in this state and that elects its board of directors	832
may submit to the members of the committee a written estimate of	833
the costs to the regulated community in this state of complying	834
with the legislation if it is enacted.	835

At any hearing of the legislation before the committee, a	836
representative of any state agency, environmental advocacy	837
organization, or consumer advocacy organization or any private	838
citizen may present documentation containing an estimate of the	839
monetary and other costs to public health and safety and the	840
environment and to consumers and residential utility customers,	841
and the effects on property values, if the legislation is not	842
enacted.	843

(C) Until such time as the statement required under division	844
(B) of this section is submitted to the committee to which	845
proposed legislation dealing with environmental protection or	846
containing a component dealing with environmental protection was	847
referred, the legislation shall not be reported by that committee.	848
This requirement does not apply if the component dealing with	849
environmental protection is removed from the legislation or if	850
two-thirds of the members of the committee vote in favor of a	851
motion to report the proposed legislation.	852

(D) Except as otherwise provided in division (E) of this	853
section, prior to adopting a rule or an amendment proposed to a	854
rule dealing with environmental protection or containing a	855
component dealing with environmental protection, a state agency	856
shall do all of the following:	857

(1) Consult with organizations that represent political	858
subdivisions, environmental interests, business interests, and	859
other persons affected by the proposed rule or amendment;	860

(2) Consider documentation relevant to the need for, the	861
environmental benefits or consequences of, other benefits of, and	862
the technological feasibility of the proposed rule or amendment;	863

(3) Specifically identify whether the proposed rule or	864
amendment is being adopted or amended to enable the state to	865
obtain or maintain approval to administer and enforce a federal	866
environmental law or to participate in a federal environmental	867
program, whether the proposed rule or amendment is more stringent	868
than its federal counterpart, and, if the proposed rule or	869
amendment is more stringent, the rationale for not incorporating	870
its federal counterpart;	871

(4) Include with the proposed rule or amendment and the rule	872
summary and fiscal analysis required under sections 121.24 and	873
section 127.18 of the Revised Code, when they are filed with the	874
joint committee on agency rule review in accordance with division	875
(D) of section 111.15 or division (H) of section 119.03 of the	876
Revised Code, one of the following in electronic form, as	877
applicable:	878

(a) The information identified under division (D)(3) of this	879
section and, if the proposed rule or amendment is more stringent	880
than its federal counterpart, as identified in that division, the	881
documentation considered under division (D)(2) of this section;	882

(b) If an amendment proposed to a rule is being adopted or	883
amended under a state statute that establishes standards with	884
which the amendment shall comply, and the proposed amendment is	885
more stringent than the rule that it is proposing to amend, the	886
documentation considered under division (D)(2) of this section;	887

(c) If division (D)(4)(a) or (b) of this section is not	888
applicable, the documentation considered under division (D)(2) of	889
this section.	890

If the agency subsequently files a revision of such a	891
proposed rule or amendment in accordance with division (D) of	892
section 111.15 or division (H) of section 119.03 of the Revised	893
Code, the revision shall be accompanied in electronic form by the	894
applicable information or documentation.	895

Division (D) of this section does not apply to any emergency	896
rule adopted under division (B)(2) of section 111.15 or division	897
(F) of section 119.03 of the Revised Code, but does apply to any	898
such rule that subsequently is adopted as a nonemergency rule	899
under either of those divisions.	900

The information or documentation submitted under division	901
(D)(4) of this section may be in the form of a summary or index of	902
available knowledge or information and shall consist of or be	903
based upon the best available generally accepted knowledge or	904
information in the appropriate fields, as determined by the agency	905
that prepared the documentation.	906

(E) The statement required under division (B) and the	907
information or documentation required under division (D) of this	908
section need not be prepared or submitted with regard to a	909
proposed statute or rule, or an amendment to a rule, if the	910
statute, rule, or amendment is procedural or budgetary in nature,	911
or governs the organization or operation of a state agency, and	912
will not affect the substantive rights or obligations of any	913
person other than a state agency or an employee or contractor of a	914
state agency.	915

(F) The insufficiency, incompleteness, or inadequacy of a	916
statement, information, documentation, or a summary of information	917
or documentation provided in accordance with division (B) or (D)	918
of this section shall not be grounds for invalidation of any	919
statute, rule, or amendment to a rule.	920

(G) This section applies only to the following:

921

(1) Legislation and components of legislation dealing with	922
environmental protection that are introduced in the general	923
assembly after March 5, 1996;	924

(2) Rules and rule amendments dealing with environmental	925
protection that are filed with the joint committee on agency rule	926
review in accordance with division (D) of section 111.15 or	927
division (H) of section 119.03 of the Revised Code after March 5,	928
1996.	929

Sec. 121.81. As used in sections 121.81 to 121.83 of the	930
Revised Code:	931

(A) "Agency" means a state agency that is required to file	932
proposed rules for legislative review under division (D) of	933
section 111.15 or division (H) of section 119.03 of the Revised	934
Code.	935

(B) "Proposed rule" means a proposed amendment, adoption, or	936
rescission of a rule, and includes a proposed amendment, adoption,	937
or rescission of a rule in both its original and any revised form.	938
"Proposed rule" does not include an emergency rule adopted under	939
division (B)(2) of section 111.15 or division (F) of section	940
119.03 of the Revised Code, but does include a rule that is	941
proposed to replace an emergency rule that expires under those	942
divisions.	943

(C) "Small business" means an independently owned and	944
operated business entity, including affiliates, that has fewer	945
than five hundred full time employees or gross annual sales of	946
less than six million dollars, and the principal location of which	947
is located in the state.	948

Sections 121.81 to 121.83 and 121.91 of the Revised Code are	949
complementary to sections 108.11 to 108.13 and 108.21 to 108.23 of	950
the Revised Code.	951

Sec. 121.82.  In the course of developing a rule that is	952
intended to be proposed under division (D) of section 111.15 or	953
division (H) of section 119.03 of the Revised Code, an agency	954
shall:	955

(A) Evaluate the proposed rule against the small business	956
impact analysis instrument and incorporate features into the	957
proposed rule that will eliminate or adequately reduce any adverse	958
impact the proposed rule might have on small businesses; and	959

(B) Prepare a small business impact analysis that describes	960
its evaluation of the proposed rule against the small business	961
impact analysis instrument, that identifies any features that were	962
incorporated into the proposed rule as a result of the evaluation,	963
and that explains how those features, if there were any, eliminate	964
or adequately reduce any adverse impact the proposed rule might	965
have on small businesses.	966

Sec. 121.83.  (A) When an agency files a proposed rule for	967
legislative review under division (D) of section 111.15 of the	968
Revised Code or division (H) of section 119.03 of the Revised	969
Code, the agency electronically shall file one copy of the small	970
business impact analysis along with the proposed rule.	971

The joint committee on agency rule review does not have	972
jurisdiction to review, and shall reject, the filing of a proposed	973
rule if, at any time while the proposed rule is in its possession,	974
it discovers that the proposed rule might have an adverse impact	975
on small businesses and the agency has not included with the	976
filing a small business impact analysis or has included a small	977
business impact analysis that is inadequately prepared. The joint	978
committee electronically shall return a filing that is rejected to	979
the agency. Such a rejection does not preclude the agency from	980
refiling the proposed rule after complying with section 121.82 of	981
the Revised Code. When a filing is rejected under this division,	982
it is as if the filing had not been made.	983

Sec. 121.91.  A state agency, and its officers and employees,	984
shall comply with the customer service performance standards that	985
have been developed by the common sense initiative office and that	986
apply to the state agency and its officers and employees. A state	987
agency's compliance with the standards shall be evaluated, by the	988
director of budget and management and the committees of the senate	989
and house of representatives having jurisdiction over the state	990
operating budget, as part of the consideration of its biennial	991
budget. (If the evaluation is of the office of budget and	992
management, evaluation by the committees is sufficient.) An	993
officer's or employee's compliance with the standards shall be	994
evaluated as part of the officer's or employee's periodic	995
performance reviews. And a state agency's and its officer's and	996
employee's compliance with the standards may be evaluated as part	997
of any performance audit of the state agency.	998

Sec. 122.08.  (A) There is hereby created within the	999
department of development an office to be known as the office of	1000
small business. The office shall be under the supervision of a	1001
manager appointed by the director of development.	1002

(B) The office shall do all of the following:

1003

(1) Act as liaison between the small business community and	1004
state governmental agencies;	1005

(2) Furnish information and technical assistance to persons	1006
and small businesses concerning the establishment and maintenance	1007
of a small business, and concerning state laws and rules relevant	1008
to the operation of a small business. In conjunction with these	1009
duties, the office shall keep a record of all proposed and	1010
currently effective state agency rules affecting individuals,	1011
small businesses, or small organizations, as defined in section	1012
121.24 of the Revised Code, and may testify before the joint	1013
committee on agency rule review concerning any proposed rule	1014
affecting individuals, small businesses, or small organizations.	1015

(3) Prepare and publish the small business register under	1016
section 122.081 of the Revised Code;	1017

(4) Receive complaints from small businesses concerning	1018
governmental activity, compile and analyze those complaints, and	1019
periodically make recommendations to the governor and the general	1020
assembly on changes in state laws or agency rules needed to	1021
eliminate burdensome and unproductive governmental regulation to	1022
improve the economic climate within which small businesses	1023
operate;	1024

(5) Receive complaints or questions from small businesses and	1025
direct those businesses to the appropriate governmental agency.	1026
If, within a reasonable period of time, a complaint is not	1027
satisfactorily resolved or a question is not satisfactorily	1028
answered, the office shall, on behalf of the small business, make	1029
every effort to secure a satisfactory result. For this purpose,	1030
the office may consult with any state governmental agency and may	1031
make any suggestion or request that seems appropriate.	1032

(6) Utilize, to the maximum extent possible, the printed and	1033
electronic media to disseminate information of current concern and	1034
interest to the small business community and to make known to	1035
small businesses the services available through the office. The	1036
office shall publish such books, pamphlets, and other printed	1037
materials, and shall participate in such trade association	1038
meetings, conventions, fairs, and other meetings involving the	1039
small business community, as the manager considers appropriate.	1040

(7) Prepare for inclusion in the department of development's	1041
annual report to the governor and general assembly, a description	1042
of the activities of the office and a report of the number of	1043
rules affecting individuals, small businesses, and small	1044
organizations that were filed withrecorded by the office under	1045
division (B)(2) of section 121.24 of the Revised Code, during the	1046
preceding calendar year;	1047

(8) Operate the Ohio first-stop business connection to assist	1048
individuals in identifying and preparing applications for business	1049
licenses, permits, and certificates and to serve as the central	1050
public distributor for all forms, applications, and other	1051
information related to business licensing. Each state agency,	1052
board, and commission shall cooperate in providing assistance,	1053
information, and materials to enable the connection to perform its	1054
duties under this division.	1055

(C) The office may, upon the request of a state agency,	1056
assist the agency with the preparation of any rule that will	1057
affect individuals, small businesses, or small organizations.	1058

(D) The director of development shall assign employees and	1059
furnish equipment and supplies to the office as the director	1060
considers necessary for the proper performance of the duties	1061
assigned to the office.	1062

Sec. 122.081.  (A) The office of small business in the	1063
department of development shall prepare and publish a "small	1064
business register" or contract with any person as provided in this	1065
section to prepare and publish the register. The small business	1066
register shall contain the following information regarding each	1067
proposed rule filed withrecorded by the office of small business	1068
under division (B)(2) of section 121.24 of the Revised Code:	1069

(1) The title and administrative code rule number of the	1070
proposed rule;	1071

(2) A brief summary of the proposed rule;

1072

(3) The date on which the proposed rule was filed with	1073
recorded by the office of small business under division (B)(2) of	1074
section 121.24 of the Revised Code; and	1075

(4) The name, address, and telephone number of thean	1076
individual or office within the agency that proposed the rule who	1077
has been designated as being responsible for complying with	1078
division (E) of section 121.24 of the Revised Code with regard to	1079
can provide information about the proposed rule.	1080

(B) The small business register shall be published on a	1081
weekly basis. The information required under division (A) of this	1082
section shall be published in the register no later than two weeks	1083
after the proposed rule to which the information relates is filed	1084
withrecorded by the office of small business under division	1085
(B)(2) of section 121.24 of the Revised Code. The office of small	1086
business shall furnish the small business register, on a single	1087
copy or subscription basis, to any person who requests it and pays	1088
a single copy price or subscription rate fixed by the office. The	1089
office shall furnish the chairmenchairpersons of the standing	1090
committees of the senate and house of representatives having	1091
jurisdiction over individuals, small businesses, and small	1092
organizations with free subscriptions to the small business	1093
register.	1094

(C) Upon the request of the office of small business, the	1095
director of administrative services shall, in accordance with the	1096
competitive selection procedure of Chapter 125. of the Revised	1097
Code, let a contract for the compilation, printing, and	1098
distribution of the small business register.	1099

(D) The office of small business shall adopt, and may amend	1100
or rescind, in accordance with Chapter 119. of the Revised Code,	1101
such rules as are necessary to enable it to properly carry out	1102
this section.	1103

Sec. 122.94.  The director of the department of development	1104
shall:	1105

(A) Promulgate rules in accordance with Chapter 119. of the	1106
Revised Code for the conduct of the minority business development	1107
division's business and for carrying out the purposes of sections	1108
122.92 to 122.94 of the Revised Code;	1109

(B) Prepare an annual report to the governor and the general	1110
assembly on or before the first day of February of its activities	1111
for the preceding calendar year. In addition to the submissions	1112
required by section 101.68 of the Revised Code, the director shall	1113
submit copies of the annual report to the chairmen of the standing	1114
committees of the senate and house of representatives having	1115
jurisdiction over individuals, small businesses, and small	1116
organizations, as those terms are defined in section 121.24 of the	1117
Revised Code.	1118

Sec. 1710.02.  (A) A special improvement district may be	1119
created within the boundaries of any one municipal corporation,	1120
any one township, or any combination of contiguous municipal	1121
corporations and townships for the purpose of developing and	1122
implementing plans for public improvements and public services	1123
that benefit the district. A district may be created by petition	1124
of the owners of real property within the proposed district, or by	1125
an existing qualified nonprofit corporation. If the district is	1126
created by an existing qualified nonprofit corporation, the	1127
purposes for which the district is created may be supplemental to	1128
the other purposes for which the corporation is organized. All	1129
territory in a special improvement district shall be contiguous;	1130
except that the territory in a special improvement district may be	1131
noncontiguous if at least one special energy improvement project	1132
is designated for each parcel of real property included within the	1133
special improvement district. Additional territory may be added to	1134
a special improvement district created under this chapter for the	1135
purpose of developing and implementing plans for special energy	1136
improvement projects if at least one special energy improvement	1137
project is designated for each parcel of real property included	1138
within such additional territory and the addition of territory is	1139
authorized by the initial plan proposed under division (F) of this	1140
section or a plan adopted by the board of directors of the special	1141
improvement district under section 1710.06 of the Revised Code.	1142

The district shall be governed by the board of trustees of a	1143
nonprofit corporation. This board shall be known as the board of	1144
directors of the special improvement district. No special	1145
improvement district shall include any church property, or	1146
property of the federal or state government or a county, township,	1147
or municipal corporation, unless the church or the county,	1148
township, or municipal corporation specifically requests in	1149
writing that the property be included within the district, or	1150
unless the church is a member of the existing qualified nonprofit	1151
corporation creating the district at the time the district is	1152
created. More than one district may be created within a	1153
participating political subdivision, but no real property may be	1154
included within more than one district unless the owner of the	1155
property files a written consent with the clerk of the legislative	1156
authority, the township fiscal officer, or the village clerk, as	1157
appropriate. The area of each district shall be contiguous; except	1158
that the area of a special improvement district may be	1159
noncontiguous if all parcels of real property included within such	1160
area contain at least one special energy improvement thereon.	1161

(B) Except as provided in division (C) of this section, a	1162
district created under this chapter is not a political	1163
subdivision. A district created under this chapter shall be	1164
considered a public agency under section 102.01 and a public	1165
authority under section 4115.03 of the Revised Code. Each member	1166
of the board of directors of a district, each member's designee or	1167
proxy, and each officer and employee of a district shall be	1168
considered a public official or employee under section 102.01 of	1169
the Revised Code and a public official and public servant under	1170
section 2921.42 of the Revised Code. Districts created under this	1171
chapter are not subject to section 121.251sections 121.81 to	1172
121.83 of the Revised Code. Districts created under this chapter	1173
are subject to sections 121.22 and 121.23 of the Revised Code.	1174

(C) Each district created under this chapter shall be	1175
considered a political subdivision for purposes of section 4905.34	1176
of the Revised Code.	1177

Membership on the board of directors of the district shall	1178
not be considered as holding a public office. Directors and their	1179
designees shall be entitled to the immunities provided by Chapter	1180
1702. and to the same immunity as an employee under division	1181
(A)(6) of section 2744.03 of the Revised Code, except that	1182
directors and their designees shall not be entitled to the	1183
indemnification provided in section 2744.07 of the Revised Code	1184
unless the director or designee is an employee or official of a	1185
participating political subdivision of the district and is acting	1186
within the scope of the director's or designee's employment or	1187
official responsibilities.	1188

District officers and district members and directors and	1189
their designees or proxies shall not be required to file a	1190
statement with the Ohio ethics commission under section 102.02 of	1191
the Revised Code. All records of the district shall be treated as	1192
public records under section 149.43 of the Revised Code, except	1193
that records of organizations contracting with a district shall	1194
not be considered to be public records under section 149.43 or	1195
section 149.431 of the Revised Code solely by reason of any	1196
contract with a district.	1197

(D) Except as otherwise provided in this section, the	1198
nonprofit corporation that governs a district shall be organized	1199
in the manner described in Chapter 1702. of the Revised Code.	1200
Except in the case of a district created by an existing qualified	1201
nonprofit corporation, the corporation's articles of incorporation	1202
are required to be approved, as provided in division (E) of this	1203
section, by resolution of the legislative authority of each	1204
participating political subdivision of the district. A copy of	1205
that resolution shall be filed along with the articles of	1206
incorporation in the secretary of state's office.	1207

In addition to meeting the requirements for articles of	1208
incorporation set forth in Chapter 1702. of the Revised Code, the	1209
articles of incorporation for the nonprofit corporation governing	1210
a district formed under this chapter shall provide all the	1211
following:	1212

(1) The name for the district, which shall include the name	1213
of each participating political subdivision of the district;	1214

(2) A description of the territory within the district, which	1215
may be all or part of each participating political subdivision.	1216
The description shall be specific enough to enable real property	1217
owners to determine if their property is located within the	1218
district.	1219

(3) A description of the procedure by which the articles of	1220
incorporation may be amended. The procedure shall include	1221
receiving approval of the amendment, by resolution, from the	1222
legislative authority of each participating political subdivision	1223
and filing the approved amendment and resolution with the	1224
secretary of state.	1225

(4) The reasons for creating the district, plus an	1226
explanation of how the district will be conducive to the public	1227
health, safety, peace, convenience, and welfare of the district.	1228

(E) The articles of incorporation for a nonprofit corporation	1229
governing a district created under this chapter and amendments to	1230
them shall be submitted to the municipal executive, if any, and	1231
the legislative authority of each municipal corporation or	1232
township in which the proposed district is to be located. Except	1233
in the case of a district created by an existing qualified	1234
nonprofit corporation, the articles or amendments shall be	1235
accompanied by a petition signed either by the owners of at least	1236
sixty per cent of the front footage of all real property located	1237
in the proposed district that abuts upon any street, alley, public	1238
road, place, boulevard, parkway, park entrance, easement, or other	1239
existing public improvement within the proposed district,	1240
excluding church property or property owned by the state, county,	1241
township, municipal, or federal government, unless a church,	1242
county, township, or municipal corporation has specifically	1243
requested in writing that the property be included in the	1244
district, or by the owners of at least seventy-five per cent of	1245
the area of all real property located within the proposed	1246
district, excluding church property or property owned by the	1247
state, county, township, municipal, or federal government, unless	1248
a church, county, township, or municipal corporation has	1249
specifically requested in writing that the property be included in	1250
the district. Pursuant to Section 2o of Article VIII, Ohio	1251
Constitution, the petition required under this division may be for	1252
the purpose of developing and implementing plans for special	1253
energy improvement projects, and, in such case, is determined to	1254
be in furtherance of the purposes set forth in Section 2o of	1255
Article VIII, Ohio Constitution. If a special improvement district	1256
is being created under this chapter for the purpose of developing	1257
and implementing plans for special energy improvement projects,	1258
the petition required under this division shall be signed by one	1259
hundred per cent of the owners of the area of all real property	1260
located within the proposed special improvement district, at least	1261
one special energy improvement project shall be designated for	1262
each parcel of real property within the special improvement	1263
district, and the special improvement district may include any	1264
number of parcels of real property as determined by the	1265
legislative authority of each participating political subdivision	1266
in which the proposed special improvement district is to be	1267
located. For purposes of determining compliance with these	1268
requirements, the area of the district, or the front footage and	1269
ownership of property, shall be as shown in the most current	1270
records available at the county recorder's office and the county	1271
engineer's office sixty days prior to the date on which the	1272
petition is filed.	1273

Each municipal corporation or township with which the	1274
petition is filed has sixty days to approve or disapprove, by	1275
resolution, the petition, including the articles of incorporation.	1276
In the case of a district created by an existing qualified	1277
nonprofit corporation, each municipal corporation or township has	1278
sixty days to approve or disapprove the creation of the district	1279
after the corporation submits the articles of incorporation or	1280
amendments thereto. This chapter does not prohibit or restrict the	1281
rights of municipal corporations under Article XVIII of the Ohio	1282
Constitution or the right of the municipal legislative authority	1283
to impose reasonable conditions in a resolution of approval. The	1284
acquisition, installation, equipping, and improvement of a special	1285
energy improvement project under this chapter shall not supersede	1286
any local zoning, environmental, or similar law or regulation.	1287

(F) Persons proposing creation and operation of the district	1288
may propose an initial plan for public services or public	1289
improvements that benefit all or any part of the district. Any	1290
initial plan shall be submitted as part of the petition proposing	1291
creation of the district or, in the case of a district created by	1292
an existing qualified nonprofit corporation, shall be submitted	1293
with the articles of incorporation or amendments thereto.	1294

An initial plan may include provisions for the following:

1295

(1) Creation and operation of the district and of the	1296
nonprofit corporation to govern the district under this chapter;	1297

(2) Hiring employees and professional services;

1298

(3) Contracting for insurance;

1299

(4) Purchasing or leasing office space and office equipment;

1300

(5) Other actions necessary initially to form, operate, or	1301
organize the district and the nonprofit corporation to govern the	1302
district;	1303

(6) A plan for public improvements or public services that	1304
benefit all or part of the district, which plan shall comply with	1305
the requirements of division (A) of section 1710.06 of the Revised	1306
Code and may include, but is not limited to, any of the permissive	1307
provisions described in the fourth sentence of that division or	1308
listed in divisions (A)(1) to (7) of that section;	1309

(7) If the special improvement district is being created	1310
under this chapter for the purpose of developing and implementing	1311
plans for special energy improvement projects, provision for the	1312
addition of territory to the special improvement district.	1313

After the initial plan is approved by all municipal	1314
corporations and townships to which it is submitted for approval	1315
and the district is created, each participating subdivision shall	1316
levy a special assessment within its boundaries to pay for the	1317
costs of the initial plan. The levy shall be for no more than ten	1318
years from the date of the approval of the initial plan; except	1319
that if the proceeds of the levy are to be used to pay the costs	1320
of a special energy improvement project, the levy of a special	1321
assessment shall be for no more than thirty years from the date of	1322
approval of the initial plan. In the event that additional	1323
territory is added to a special improvement district, the special	1324
assessment to be levied with respect to such additional territory	1325
shall commence not earlier than the date such territory is added	1326
and shall be for no more than thirty years from such date. For	1327
purposes of levying an assessment for this initial plan, the	1328
services or improvements included in the initial plan shall be	1329
deemed a special benefit to property owners within the district.	1330

(G) Each nonprofit corporation governing a district under	1331
this chapter may do the following:	1332

(1) Exercise all powers of nonprofit corporations granted	1333
under Chapter 1702. of the Revised Code that do not conflict with	1334
this chapter;	1335

(2) Develop, adopt, revise, implement, and repeal plans for	1336
public improvements and public services for all or any part of the	1337
district;	1338

(3) Contract with any person, political subdivision as	1339
defined in section 2744.01 of the Revised Code, or state agency as	1340
defined in section 1.60 of the Revised Code to develop and	1341
implement plans for public improvements or public services within	1342
the district;	1343

(4) Contract and pay for insurance for the district and for	1344
directors, officers, agents, contractors, employees, or members of	1345
the district for any consequences of the implementation of any	1346
plan adopted by the district or any actions of the district.	1347

The board of directors of a special improvement district may,	1348
acting as agent and on behalf of a participating political	1349
subdivision, sell, transfer, lease, or convey any special energy	1350
improvement project owned by the participating political	1351
subdivision upon a determination by the legislative authority	1352
thereof that the project is not required to be owned exclusively	1353
by the participating political subdivision for its purposes, for	1354
uses determined by the legislative authority thereof as those that	1355
will promote the welfare of the people of such participating	1356
political subdivision; to improve the quality of life and the	1357
general and economic well-being of the people of the participating	1358
political subdivision; better ensure the public health, safety,	1359
and welfare; protect water and other natural resources; provide	1360
for the conservation and preservation of natural and open areas	1361
and farmlands, including by making urban areas more desirable or	1362
suitable for development and revitalization; control, prevent,	1363
minimize, clean up, or mediate certain contamination of or	1364
pollution from lands in the state and water contamination or	1365
pollution; or provide for safe and natural areas and resources.	1366
The legislative authority of each participating political	1367
subdivision shall specify the consideration for such sale,	1368
transfer, lease, or conveyance and any other terms thereof. Any	1369
determinations made by a legislative authority of a participating	1370
political subdivision under this division shall be conclusive.	1371

Any sale, transfer, lease, or conveyance of a special energy	1372
improvement project by a participating political subdivision or	1373
the board of directors of the special improvement district may be	1374
made without advertising, receipt of bids, or other competitive	1375
bidding procedures applicable to the participating political	1376
subdivision or the special improvement district under Chapter 153.	1377
or 735. or section 1710.11 of the Revised Code or other	1378
representative provisions of the Revised Code.	1379

Section 2. That existing sections 103.0511, 111.15, 117.20,	1380
119.03, 121.39, 122.08, 122.081, 122.94, and 1710.02 of the	1381
Revised Code are repealed.	1382

Section 3. That section 121.24 of the Revised Code is	1383
repealed, effective January 1, 2012.	1384

Section 4. The amendments by this act to sections 103.0511,	1385
111.15, 117.20, 119.03, 121.39, 122.08, 122.081, 122.94, and	1386
1710.02 of the Revised Code take effect on January 1, 2012.	1387

Section 5. The enactment by this act of sections 108.11 to	1388
108.13 and 121.81 to 121.83 of the Revised Code first applies to a	1389
proposed rule, the original and any revised version of which is	1390
filed with the Joint Committee on Agency Rule Review on or after	1391
January 1, 2012. If rule-making proceedings are commenced and	1392
completed before January 1, 2012, sections 108.11 to 108.13 and	1393
121.81 to 121.83 of the Revised Code do not apply to the	1394
proceedings, and section 121.24 of the Revised Code applies to the	1395
proceedings instead. If rule-making proceedings are commenced but	1396
not completed before January 1, 2012, section 121.24 of the	1397
Revised Code applies to the original version of the proposed rule	1398
if it is filed with the Joint Committee before that date, and	1399
sections 108.11 to 108.13 and 121.81 to 121.83 of the Revised Code	1400
apply to any revised version of the proposed rule that is filed on	1401
or after that date.	1402

Section 121.24 and sections 108.11 to 108.13 and 121.81 to	1403
121.83 of the Revised Code do not apply to a proposed rule that is	1404
deemed the original version of a proposed rule by the carry-over	1405
provisions in division (I)(2) of section 119.03 of the Revised	1406
Code. Whether section 121.24 or sections 108.11 to 108.13 and	1407
121.81 to 121.83 of the Revised Code applied to such a proposed	1408
rule before its carry over, the results of that application are	1409
carried over with the proposed rule.	1410

Section 6. The Common Sense Initiative Office shall publish	1411
the first edition of the Small Business Impact Analysis Instrument	1412
in the Register of Ohio as soon as practicable after the effective	1413
date of this act but not later than October 3, 2011.	1414

Section 7. Notwithstanding the delayed effective date	1415
applying to the amendments by this act to section 103.0511 of the	1416
Revised Code, the electronic rule-filing system shall be modified	1417
to connect the Common Sense Initiative Office into the system as	1418
soon as practicable after the effective date of this act but not	1419
later than August 15, 2011.	1420

Section 8. The Lieutenant Governor shall set up the Common	1421
Sense Initiative Office and have it in operation as soon as	1422
practicable after the effective date of this act but not later	1423
than August 15, 2011.	1424