Ohio House Bill 1 State Budget

GFGEG

Ohio Legislative Service CommissionFinal Analysis Jennifer A. Parker, Megan Cummiskey, and other LSC staff

Am. Sub. H.B. 1*128th General Assembly (As Passed by the General Assembly)Reps. Sykes, Chandler, Brown, Bolon, Book, Celeste, DeBose, DeGeeter, Domenick, Dyer, Hagan, Harris, Harwood, Heard, Koziura, Letson, Luckie, Mallory, Pryor, Stewart, Szollosi, Ujvagi, Weddington, B. Williams, S. Williams, Winburn, Yates, Yuko Carey, Goodman, Harris, Niehaus

Sens.

Effective date: July 17, 2009; certain provisions effective October 16, 2009; certain provisions effective on other dates; contains item vetoes

TABLE OF CONTENTSThis final analysis is arranged by state agency, beginning with the Adjutant General and continuing in alphabetical order. Items that do not directly involve an agency are located under the agency that has regulatory authority over the item, or otherwise deals with the subject matter of the item. The analysis includes a Local Government category and a Retirement category and ends with a Miscellaneous category. Within each category, a summary of the items appears first (in the form of dot points),followedbyadiscussionoftheircontentandoperation.ADJUTANT GENERAL (ADJ) ................................................................................................... 26 Ohio Army National Guard facility and maintenance expenses .................................................. 27 Community Match Armories Fund .............................................................................................. 28 Camp Perry/Buckeye Inn Operations Fund ................................................................................ 28 National Guard Service Medal Fund ........................................................................................... 29 Ohio National Guard Facility Maintenance Fund ........................................................................ 29 Assistant Adjutant General-Army and Air Force ......................................................................... 29

This final analysis does not address appropriations, fund transfers, and similar provisions. See the LegislativeServiceCommissionsBudgetinDetailspreadsheetandGreenbooksforAm.Sub.H.B.1for ananalysisofsuchprovisions.*

Ohio National Guard Scholarship Program ................................................................................. 30 Payment of Adjutant General's workers' compensation costs .................................................... 30

DEPARTMENT OF ADMINISTRATIVE SERVICES (DAS) ....................................................... 30 Leasing space by Department of Administrative Services .......................................................... 38 State Equal Employment Opportunity Program .......................................................................... 38 Department's agreements with political subdivisions to provide personnel services .................. 39 Department's receipt of reimbursement for the use of its county job classification plans ........... 39 Department's supervision of county personnel departments ...................................................... 39 Department's responsibility for administering examinations for positions in the service of the state ...................................................................................................................................... 41 Changes in amount of annual vacation leave accrued by certain state employees ................... 41 Payment for denied vacation leave ............................................................................................. 42 Grant of additional sick leave credit to state employees in July 2011 ......................................... 43 Moratoria on the accrual and annual payment of personal leave ............................................... 43 One-time pay supplement in August 2011 to state employees paid by warrant of the Director of Budget and Management .......................................................................................... 44 Use of compensatory time balance to supplement disability leave payments ............................ 45 Payment of employee share of various benefits when employee is on disability leave .............. 45 Salary continuation program for service-connected injuries and changes to occupational injury leave program ................................................................................................................... 45 Elimination of probationary periods for intermittent employees .................................................. 47 Elimination of involvement of the Department in layoffs not affecting employees paid by warrant of the Director of Budget and Management ................................................................... 47 Department's responsibility for the administration of layoff displacement rights ......................... 48 Calculation of retention points for state employees affected by a layoff ..................................... 48 Mandatory cost savings days for exempt state employees ........................................................ 49 Creation of the Cost Savings Fund to account for savings from employee participation in the mandatory cost savings program and cost savings days ..................................................... 51 Miscellaneous civil service changes ........................................................................................... 51 Pay reduction for exempt employees of the Auditor of State ...................................................... 52 Health Care Spending Account Fund ......................................................................................... 52 Dependent Care Spending Account Fund .................................................................................. 52 State Employee Educational Development Fund ....................................................................... 52 MARCS Administration Fund ...................................................................................................... 53 State employee payroll reduction strategies ............................................................................... 53 Preference for purchasing products made and services performed in the United States and Ohio with funds made available for fiscal stabilization and recovery purposes ................... 54 Sufficient competition for purchase of Ohio-produced or mined products (VETOED) ................ 54 Contractor compliance with local regulations or ordinances that relate to the employment of residents and local businesses ................................................................................................... 55 Databases of state employee pay, agency expenses, and tax credit issuances published on one Internet web site (PARTIALLY VETOED) ....................................................................... 55 Life insurance coverage for county and municipal court judges ................................................. 56 Removal of obsolete pay tables prescribing pay for exempt employees .................................... 56 State agency spending controls .................................................................................................. 56 State agency spending plans and their implementation ...................................................... 57 Specific state agency spending controls ............................................................................. 58 Compliance with a new uncodified statute based on Executive Order 2008-13S in complying with the Minority Set Aside Act and EDGE Business Enterprise Act ......................... 60 Equal Employment Opportunity Officers ............................................................................. 61 Agency contract provisions ................................................................................................. 62

Legislative Service Commission

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Am. Sub. H.B. 1 As Passed by the General Assembly

EDGE waiver controls ......................................................................................................... 62 Annual compliance report ................................................................................................... 63 Deadline of December 31, 2009, for state agencies to establish a longterm plan for compliance with the Minority Set Aside Act and EDGE Business Enterprise Act ....................... 63 Explicit requirement to comply with Minority Business Set Aside Act and Edge Business Enterprise Act ............................................................................................................................. 64 Changes in the Minority Business Bonding Program .................................................................. 64 Minority Business Bonding Program ................................................................................... 64 Two-year pilot project involving the conversion of 10% of certain vehicles of the state fleet to a propane fuel system (VETOED) .......................................................................................... 67

DEPARTMENT OF AGING (AGE) ............................................................................................. 68 Residential State Supplement program ...................................................................................... 72 Background ......................................................................................................................... 72 Eligibility and payments amounts ........................................................................................ 72 Residential State Supplement Workgroup (VETOED) ........................................................ 73 PACE program ............................................................................................................................ 74 Background ......................................................................................................................... 74 Expansion of PACE program .............................................................................................. 75 Home first process .............................................................................................................. 75 Kosher home-delivered meals under the PASSPORT program ................................................. 76 Choices Program ........................................................................................................................ 76 Assisted Living Program ............................................................................................................. 77 Consolidated federal Medicaid waivers ...................................................................................... 77 Home First reports ...................................................................................................................... 78 Civil penalties against long-term care providers ......................................................................... 78 Community-based long-term care services ................................................................................ 80 Unified long-term care budget ..................................................................................................... 81 Interagency agreement regarding unified long-term care budget ....................................... 81 Services to be available under the unified long-term care budget ...................................... 82 Care management and authorization services .................................................................... 83 Federal approval ................................................................................................................. 83 Rules ................................................................................................................................... 84 Unified Long-Term Care Budget Workgroup (PARTIALLY VETOED) ................................ 84 Progress report on unified long-term care budget ............................................................... 85 Transfer of appropriations ................................................................................................... 85 Long-Term Care Consultation Program ...................................................................................... 86 Background ......................................................................................................................... 86 Provision of consultations ................................................................................................... 86 Periodic or follow-up consultations ...................................................................................... 87 Program administration ....................................................................................................... 88 Fines ................................................................................................................................... 89 Monitoring of home and community-based services ........................................................... 89 Annual report ....................................................................................................................... 89 Ohio's Best Rx Program.............................................................................................................. 90 Ohio Community Service Council ............................................................................................... 90 Brain Injury Advisory Committee ................................................................................................. 92

DEPARTMENT OF AGRICULTURE (AGR) .............................................................................. 93 Sustainable Agriculture Program Fund ....................................................................................... 96 Changes in certain operating and development funds ................................................................ 96 Fee changes in Nursery Stock and Plant Pests Law .................................................................. 97


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Gypsy Moth Suppression Program ............................................................................................. 98 Central Support and Indirect Costs Fund .................................................................................... 99 Fee for license to operate meat or poultry processing establishment ......................................... 99 Livestock Dealers Law .............................................................................................................. 100 Changes in definitions and fees ........................................................................................ 100 Small dealers of livestock license ..................................................................................... 101 Other provisions ................................................................................................................ 102 Garbage-Fed Swine and Poultry Law ....................................................................................... 103 Rendering Plants Law ............................................................................................................... 103 Food processing establishment registration ............................................................................. 104 Amusement ride inspections ..................................................................................................... 107 Wine tax diversion to Ohio Grape Industries Fund ................................................................... 107 Ohio Pet Fund ........................................................................................................................... 107 Veterinarian Loan Repayment Program ................................................................................... 108 Ohio Farm Loan Fund ............................................................................................................... 108 Ohio Beekeepers Task Force ................................................................................................... 108

AIR QUALITY DEVELOPMENT AUTHORITY (AIR) ............................................................... 110 Energy Strategy Development Program ................................................................................... 111 Allocation of the Qualified Energy Conservation Bond limitation .............................................. 111 Advanced energy ...................................................................................................................... 112

DEPARTMENT OF ALCOHOL AND DRUG ADDICTION SERVICES (ADA)......................... 113 Anabolic steroid warning sign ................................................................................................... 114 Annual reports on use of state and federal funds for administrative functions ......................... 114 Information systems maintained by ODADAS and ODMH ....................................................... 115 Indigent drivers alcohol treatment funds ................................................................................... 116 Prior and continuing law .................................................................................................... 116 Changes made by the act ................................................................................................. 117 Annual reports by ADAMHS boards .................................................................................. 117 ODADAS representation on the Ohio Commission on Fatherhood .......................................... 118

ATHLETIC COMMISSION (ATH) ............................................................................................. 118 Expansion of Ohio Athletic Commission licensing authority ..................................................... 119 Evidence of financial security that a promoter must submit with a license application and verification of the application ..................................................................................................... 119 Information contained on a boxing or martial arts or wrestling promoter's license ................... 119 Commission rules regarding medical examination before and after bouts the Commission regulates ................................................................................................................................... 120 Fines for violation of the Ohio Athletic Commission Law .......................................................... 120 Grounds for Ohio Athletic Commission to revoke, suspend, or refuse to renew a license ....... 120 Clarification of Ohio Athletic Commission fee statute ............................................................... 121

ATTORNEY GENERAL (AGO) ................................................................................................ 121 Peace officer training and reporting requirements .................................................................... 122 Hours of training in certain areas ...................................................................................... 122 Agency reports to OPOTC ................................................................................................ 123 Exemption from peace officer training requirements ......................................................... 123 Reparations Fund and Crime Victims Reparations Law--payment of attorney's fees incurred to obtain a restraining order, custody order, or other order to separate a victim from an offender........................................................................................................................ 124


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Concealed carry licenses .......................................................................................................... 124 Amount of fee .................................................................................................................... 124 Deposit and distribution of fee ........................................................................................... 126 Firearms pamphlet ............................................................................................................ 127 Renewal applications ........................................................................................................ 127 Definition of "unloaded" as used in offense of improperly handling firearms in a motor vehicle ....................................................................................................................................... 128

AUDITOR OF STATE (AUD) .................................................................................................... 128 General Revenue Fund transfers for certain unpaid audit costs (VETOED)............................. 129 Public Audit Expense Fund-Independent Auditors ............................................................ 130 Appropriation of GRF transfers ......................................................................................... 130

STATE BARBER BOARD (BRB) ............................................................................................ 130 Optional charge during barber license renewal to fund barber museum .................................. 130

OFFICE OF BUDGET AND MANAGEMENT (OBM) ............................................................... 131 Federal money made available to the state for fiscal stabilization and recovery purposes ...... 132 Legislative approval of certificates of participation (VETOED) ................................................. 132 Preparation of list of state employees who work primarily for one state agency while being paid with funds appropriated to another (VETOED) ................................................................. 133 Reporting related to segregated custodial funds ...................................................................... 133 Employment status of OBM employees whose primary duties include the consolidation of statewide financing functions and common transactional processes ....................................... 133 Reports monitoring the effectiveness of federal stimulus funds ................................................ 134 Semi-annual reports .......................................................................................................... 134 Quarterly reports ............................................................................................................... 134

CAPITOL SQUARE REVIEW AND ADVISORY BOARD (CSR) ............................................. 135 Placement of the Capitol Square Review and Advisory Board in the legislative branch of state government (VETOED) .................................................................................................... 135 Exemption of the Board from jurisdiction of the Office of Information Technology (VETOED) ................................................................................................................................. 136

STATE CHIROPRACTIC BOARD (CHR) ................................................................................ 136 Renewal of licenses to practice chiropractic ............................................................................. 137

CIVIL RIGHTS COMMISSION (CIV) ........................................................................................ 137 Civil Rights Law ........................................................................................................................ 138 The Ohio Fair Housing Law .............................................................................................. 138 Enforcement of the Ohio Fair Housing Law ...................................................................... 138 Administrative hearing; election of civil action under Attorney General ............................ 138 Private civil action ............................................................................................................. 139 Operation of the act .................................................................................................................. 139 Definition of "aggrieved person" ........................................................................................ 139 Authority to request subpoenas ........................................................................................ 140 Participation in administrative hearing .............................................................................. 140 Right to intervene in civil action the Attorney General maintains ...................................... 140

Legislative Service Commission-5Am. Sub. H.B. 1 As Passed by the General Assembly

DEPARTMENT OF COMMERCE (COM) ................................................................................. 141 Unclaimed Funds Trust Fund costs and fees of administration ................................................ 144 Public Depository Law .............................................................................................................. 144 Independence of the Superintendent and Division of Financial Institutions (PARTIALLY VETOED) .................................................................................................................................. 145 Implementation of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ("S.A.F.E. Act") ............................................................................................................ 145 Background ....................................................................................................................... 145 Overview of the act ........................................................................................................... 147 Application for a loan originator license; investigation ...................................................... 150 Issuance of license; license renewals ............................................................................... 151 Pre-licensing instruction; written test ................................................................................. 153 Bond requirement .............................................................................................................. 155 Continuing education requirement .................................................................................... 156 Conduct of business .......................................................................................................... 157 Duties and standards of care ............................................................................................ 158 Required disclosures ......................................................................................................... 159 Prohibitions; penalties and damages ................................................................................ 160 Enforcement; administrative actions; reports to NMLSR................................................... 161 Information shared with NMLSR; confidentiality; challenge process................................. 162 Rule-making authority ....................................................................................................... 163 Transition to licensed loan originators ............................................................................... 164 Conforming changes ......................................................................................................... 164 Credit union compliance with the federal S.A.F.E. Act ............................................................. 165 Regulation of mortgage lenders under the Mortgage Loan Law ............................................... 165 Registration required; exemptions .................................................................................... 165 Application; investigation ................................................................................................... 167 Renewal ............................................................................................................................ 168 Net worth or bond requirement ......................................................................................... 169 Permissible fees and other charges .................................................................................. 170 Choice of law ..................................................................................................................... 171 Duties and standards of care ............................................................................................ 171 Required disclosures; advertising ..................................................................................... 172 Prohibitions; penalties ....................................................................................................... 173 Enforcement; administrative actions; reports to NMLSR................................................... 175 Confidentiality .................................................................................................................... 177 Credit union service organization exemption requirements .............................................. 178 Transition to the new requirements ................................................................................... 180 Regulation of mortgage brokers under the Mortgage Brokers Law .......................................... 181 Registration required; exemptions .................................................................................... 181 Application; operations manager; investigation; renewals ................................................ 184 Surety bond requirement ................................................................................................... 186 Call reports to NMLSR; annual reports ............................................................................. 186 Disclosures ........................................................................................................................ 187 Advertising ........................................................................................................................ 187 Prohibitions; penalties ....................................................................................................... 187 Enforcement; administrative actions; damages................................................................. 188 Mortgage banker exemption requirements ....................................................................... 189 Credit union service organization exemption requirements .............................................. 191 Transition to the new requirements ................................................................................... 192 Assessments for video service authorizations .......................................................................... 192 Division of Securities................................................................................................................. 193


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Securities license and filing fee increases ........................................................................ 193 Fees associated with the transfer of a securities dealer or investment adviser license .... 194 Investor Education and Enforcement Expense Fund ........................................................ 194 State Fire Marshal's Fund ......................................................................................................... 194 Creation of the Division of Labor............................................................................................... 195 The Division of Labor and Worker Safety and the Division of Industrial Compliance ....... 195 Division of Labor ............................................................................................................... 197 Increase in fees for boiler inspections and related occupational licenses ................................ 198 Changes to the fees charged for elevator inspections .............................................................. 199 The Real Estate Brokers Law ................................................................................................... 201 Licensing--fees .................................................................................................................. 201 Real Estate Recovery Fund .............................................................................................. 202 Real Estate Appraiser Law ....................................................................................................... 202

STATE BOARD OF COSMETOLOGY (COS) ......................................................................... 207 Restoration of expired license ................................................................................................... 207 Fines ......................................................................................................................................... 208 Cosmetology licensing .............................................................................................................. 208

COUNSELOR, SOCIAL WORKER, AND MARRIAGE AND FAMILY THERAPIST BOARD (CSW) ......................................................................................................................... 209 New fees ................................................................................................................................... 209 Authority to fine ......................................................................................................................... 210

DEPARTMENT OF DEVELOPMENT (DEV) ............................................................................ 210 Expansion of "Appalachian region" ........................................................................................... 213 Local development districts ....................................................................................................... 214 Export promotion assistance and foreign investment ............................................................... 214 State subsidy for hosting sports events .................................................................................... 214 Development Financing Advisory Council ................................................................................ 216 Capital access loans for minority business enterprises ............................................................ 217 Rules for application by minority business for a bond ............................................................... 218 Community development corporations--Minority Business Enterprise Loan Program .............. 218 Disposition of Build American Bond payments related to liquor profit debt service .................. 219 Micro-lending Program (PARTIALLY VETOED) ....................................................................... 220 Rapid outreach loans ................................................................................................................ 220 Logistics and Distribution Infrastructure Taxable Bond Fund ................................................... 221 Duties of Director of Development .................................................................................... 222 Department of Development program to encourage businesses to hire individuals from significantly disadvantaged groups ........................................................................................... 222 Low- and Moderate-Income Housing Trust Fund ..................................................................... 223 Venture Capital Authority tax credits ......................................................................................... 224 Composition of Authority ................................................................................................... 224 Investment purposes ......................................................................................................... 225 Maximum tax credit issuance ............................................................................................ 225 Port authority bond funding of Third Frontier through OVC Program ................................ 225 Investment policy .............................................................................................................. 226 Reporting ........................................................................................................................... 227 Loan guarantees for historic rehabilitation projects .................................................................. 227 Compressed air included in the definition of alternative fuel ..................................................... 228 Alternative Fuel Transportation Grant Program ................................................................ 228


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State vehicles capable of using alternative fuel ................................................................ 228 Allocation of National Recovery Zone Bond Limitations ........................................................... 229

DEPARTMENT OF EDUCATION (EDU) .................................................................................. 229 Interstate Compact.................................................................................................................... 237 I. State Funding for Primary and Secondary Education ........................................................... 249 Introduction ............................................................................................................................... 249 Spending accountability for school districts .............................................................................. 250 Spending plans ................................................................................................................. 250 Spending plans for school districts with low graduation rates ........................................... 251 Temporary provision--fiscal year 2010 .............................................................................. 251 Permanent provisions ....................................................................................................... 251 Rules for expenditure and reporting .................................................................................. 253 Statutory spending requirements ...................................................................................... 254 Sanctions .......................................................................................................................... 256 Waivers ............................................................................................................................. 259 FACT form ................................................................................................................................ 259 PASS form ................................................................................................................................ 259 Ohio School Funding Advisory Council ..................................................................................... 260 Council membership ......................................................................................................... 261 Subcommittee on school district-community school collaboration .................................... 263 Other subcommittees ........................................................................................................ 264 Staff assistance ................................................................................................................. 264 Use of state funds--all-day kindergarten and class-size reduction ........................................... 264 Use of state funds--ESC services and joint programs .............................................................. 264 Designation of creative learning environments ......................................................................... 264 Harmon Commission ......................................................................................................... 265 State Board guidelines and Department of Education assistance .................................... 265 Designation of creative learning environments ................................................................. 265 Progress reports ................................................................................................................ 266 Acceptance of donations ................................................................................................... 267 Grants and stipends .......................................................................................................... 267 Joint vocational school districts ................................................................................................. 267 Educational service center funding ........................................................................................... 267 Community school and STEM school payments ...................................................................... 268 Formula amount for other purposes .......................................................................................... 268 Ed Choice funding..................................................................................................................... 269 Deductions ........................................................................................................................ 269 Maximum scholarship amounts (PARTIALLY VETOED) .................................................. 269 Post-Secondary Enrollment Options alternative funding .......................................................... 270 School fees for low-income students ........................................................................................ 271 Payments for students in residential facilities ........................................................................... 271 Background ....................................................................................................................... 271 The act .............................................................................................................................. 272 Legal claims for reimbursement of reduced funds .................................................................... 272 Nonpublic school administrative cost reimbursement ............................................................... 272 Sharing of stimulus funds with nonpublic schools ..................................................................... 273 II. Academic Standards and Assessments .............................................................................. 274 Minimum standards for schools ................................................................................................ 274 Minimum school district operating standards .................................................................... 274 Construction; application of Collective Bargaining Law..................................................... 275 Standard for reporting financial information to the public .......................................................... 276


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Academic standards and model curricula ................................................................................. 276 Background ....................................................................................................................... 276 Adoption of revised standards and curricula in core subjects ........................................... 277 Adoption of standards and curricula in other subjects ...................................................... 278 Committee to advise on standards and curricula .............................................................. 279 Achievement assessments ....................................................................................................... 279 Background ....................................................................................................................... 279 Name and content changes .............................................................................................. 280 Scoring levels .................................................................................................................... 280 Administration dates .......................................................................................................... 281 Public records status of OGT ............................................................................................ 282 Temporary suspension of writing and social studies assessments ................................... 283 Replacement of OGT as graduation requirement ..................................................................... 283 National assessment and end-of-course exams ............................................................... 284 Senior project .................................................................................................................... 284 Scoring requirements ........................................................................................................ 285 Timeline for development and implementation ................................................................. 285 Exemption for disabled students ....................................................................................... 286 Performance indicators for district and building report cards .................................................... 286 Report card data on college and work readiness ...................................................................... 287 Background--prior law ....................................................................................................... 287 Diagnostic assessments ........................................................................................................... 287 Community service education ................................................................................................... 288 Background ....................................................................................................................... 288 College and career readiness; financial literacy ....................................................................... 289 All-day kindergarten .................................................................................................................. 290 Authority to charge tuition for all-day kindergarten ............................................................ 290 Annual surveys .................................................................................................................. 291 Reduction of excused calamity days; study of extended school year ....................................... 291 Interstate Compact on Educational Opportunity for Military Children ....................................... 292 Introduction ....................................................................................................................... 292 Matters between a "sending state" and a "receiving state" ............................................... 293 Applicability ....................................................................................................................... 293 Records and enrollment .................................................................................................... 293 Placement ......................................................................................................................... 295 Graduation requirements .................................................................................................. 295 Excused absences ............................................................................................................ 295 Extracurricular participation ............................................................................................... 296 State coordination ............................................................................................................. 296 Business education standards (PARTIALLY VETOED) ........................................................... 297 Parental involvement best practices ......................................................................................... 298 Waiver of eighth-grade American history .................................................................................. 298 High school credit ..................................................................................................................... 298 Student absences for extracurricular activities ......................................................................... 299 III. Educator Licensure and Employment ................................................................................. 299 Educator licensure .................................................................................................................... 299 New teacher licenses ........................................................................................................ 300 Alternative resident educator license ................................................................................ 304 One-year conditional teaching permits .............................................................................. 306 Provisional license for teaching in a STEM school ........................................................... 307 Principal licenses .............................................................................................................. 308 Continuing effect of former licenses .................................................................................. 308


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Ohio Teacher Residency Program ............................................................................................ 308 Approval of educator preparation programs ............................................................................. 309 Report on quality of teacher preparation programs ........................................................... 310 Sharing of value-added data with Chancellor ........................................................................... 310 Licensure of school nurses ....................................................................................................... 310 School Health Services Advisory Council ......................................................................... 311 Educator Standards Board........................................................................................................ 313 Duties of Board ................................................................................................................. 313 Membership ...................................................................................................................... 315 Subcommittees on standards ............................................................................................ 316 Peer assistance and review programs ...................................................................................... 318 Teach Ohio Program ................................................................................................................. 318 Ohio Teaching Fellows Program ............................................................................................... 319 Teacher tenure.......................................................................................................................... 320 Background ....................................................................................................................... 320 The act .............................................................................................................................. 321 Termination of educator employment contracts ........................................................................ 322 Background ....................................................................................................................... 322 The act .............................................................................................................................. 323 Contract termination referees ................................................................................................... 323 IV. Community Schools ............................................................................................................ 324 Background ............................................................................................................................... 324 Closure of poorly performing community schools ..................................................................... 325 Exemptions ....................................................................................................................... 325 Handling of student records after school closes ....................................................................... 326 Oversight of sponsors ............................................................................................................... 326 Annual report on community school sponsors .......................................................................... 327 New start-up community schools .............................................................................................. 327 Report cards ............................................................................................................................. 328 Unauditable community schools ............................................................................................... 328 Exception to community school location ................................................................................... 329 Conversion community schools ................................................................................................ 329 E-school expenditures for instruction ........................................................................................ 330 Community school calamity days (VETOED) ........................................................................... 330 V. Scholarship Programs ......................................................................................................... 331 Ed Choice eligibility (VETOED) ................................................................................................. 331 Background ....................................................................................................................... 331 Vetoed eligibility standards ............................................................................................... 332 Administration of achievement assessments to scholarship students ...................................... 333 VI. Early Childhood Programs .................................................................................................. 334 Center for Early Childhood Development ................................................................................. 334 Early Childhood Advisory Council ............................................................................................. 335 Early Childhood Financing Workgroup ..................................................................................... 335 State-funded early childhood education programs ................................................................... 335 Early Learning Initiative (VETOED) .......................................................................................... 338 ODJFS duties .................................................................................................................... 339 ODE duties ........................................................................................................................ 339 Joint ODJFS and ODE duties ........................................................................................... 339 Contracting with an early learning agency ........................................................................ 340 Terms of the contract ........................................................................................................ 340 Early learning program duties ........................................................................................... 341 Eligible expenditures ......................................................................................................... 342


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Early Childhood Cabinet--health district representation ............................................................ 342 Inspection of preschool and latchkey programs ........................................................................ 342 VII. Other Provisions ................................................................................................................ 342 Strategic plan ............................................................................................................................ 342 Partnership for Continued Learning .......................................................................................... 343 Background ....................................................................................................................... 343 Center for Creativity and Innovation ......................................................................................... 346 Audio recordings of State Board meetings ............................................................................... 347 Ohio Education Computer Network .......................................................................................... 348 Programs ........................................................................................................................... 348 ITC funding reserves ......................................................................................................... 349 Use of volunteers by Department of Education ........................................................................ 349 Family and civic engagement teams ......................................................................................... 349 Combining with business advisory council ........................................................................ 350 Corporal punishment ................................................................................................................. 350 Administration of prescription drugs to students ....................................................................... 350 School Health and Safety Network; periodic review of school safety policies .......................... 351 Background--the repealed law .......................................................................................... 351 School policies on food allergies ............................................................................................... 352 Criminal records checks of school employees .......................................................................... 352 Background ....................................................................................................................... 352 The act .............................................................................................................................. 353 School emergency procedures ................................................................................................. 354 School safety and violence in-service training .......................................................................... 354 Special education...................................................................................................................... 355 ESC switches by local school districts ...................................................................................... 355 Background ....................................................................................................................... 355 Moratorium on ESC switches (VETOED) .......................................................................... 356 State Board procedures for approval of ESC switches (VETOED) ................................... 356 Dissolution procedures for ESCs (VETOED) ............................................................................ 357 Continuation of services to "city" and "exempted village" districts (PARTIALLY VETOED) .......................................................................................................................... 357 Pledge of allegiance.................................................................................................................. 358 Vocational education contracts ................................................................................................. 358 Termination of school district transportation staff ..................................................................... 359 Creation and operation of a regional student education district (RSED) .................................. 359 Creation ............................................................................................................................. 359 Board of directors .............................................................................................................. 360 Provision of services ......................................................................................................... 360 Status and authority of RSED and board of directors ....................................................... 360 Officers .............................................................................................................................. 361 Procuring liability insurance .............................................................................................. 361 Changes to and dissolution of the RSED .......................................................................... 361 Tax levy to fund RSED services ............................................................................................... 362 Resolution to levy tax ........................................................................................................ 362 Effect of levy adoption, rejection, or expiration ................................................................. 363 Creation of RSED special fund to hold tax levy proceeds ................................................. 363 School district ninety-nine year lease of excess real property .................................................. 363 School construction bonds: 40-year maturity ........................................................................... 364 Transfer of School Employees Health Care Board (VETOED) ................................................. 365

Legislative Service Commission-11Am. Sub. H.B. 1 As Passed by the General Assembly

STATE EMPLOYMENT RELATIONS BOARD (ERB) ............................................................. 366 Administrative merger of the State Employment Relations Board and the State Personnel Board of Review........................................................................................................................ 368 Background ....................................................................................................................... 368 Administrative merger ....................................................................................................... 369 Abolishment of the Transcripts and Other Documents Fund ............................................ 370 Changes regarding the appointment and classification of specified SERB employees ............ 371 Method of conducting a representation election for collective bargaining ................................ 372 Collective bargaining for members and employees of the Capitol Square Review and Advisory Board (VETOED) ....................................................................................................... 372 Collective bargaining for independent home care providers and independent child care providers ................................................................................................................................... 373 Introduction ....................................................................................................................... 373 Collective bargaining rights of providers ........................................................................... 374 Collective bargaining rights of representative organizations ............................................. 374 Collective bargaining agreements ..................................................................................... 375 SERB authority .................................................................................................................. 376 Applicable definitions ........................................................................................................ 376 Effective period ................................................................................................................. 376

BOARD OF REGISTRATION FOR PROFESSIONAL ENGINEERS AND SURVEYORS (ENG) ................................................................................................................ 376 Professional engineer or surveyor registration verification ....................................................... 377

ENVIRONMENTAL PROTECTION AGENCY (EPA) ............................................................... 377 State solid waste disposal fees; construction and demolition debris disposal fees .................. 381 Funding for Environmental Protection Fund ...................................................................... 381 Funding for Soil and Water Conservation District Assistance Fund .................................. 382 Exemption from new solid waste disposal fees (VETOED)............................................... 382 Electronic filing of fees ...................................................................................................... 382 Payment of solid waste disposal fees ............................................................................... 382 Solid waste generation fees--composted and recycled materials ............................................. 383 Solid waste management district rules governing out-of-district waste .................................... 383 Scrap Tire Grant Fund; Scrap Tire Management Fund; tire fees .............................................. 384 Extension of E-Check; Auto Emissions Test Fund (PARTIALLY VETOED) ............................. 385 Clean Diesel School Bus Fund ................................................................................................. 389 Extension of various air and water fees and related provisions ................................................ 389 Synthetic minor facility emissions fees .............................................................................. 389 Water pollution control fees and safe drinking water fees ................................................. 390 Certification of operators of water supply systems or wastewater systems ...................... 391 Application fees under Water Pollution Control Law and Safe Drinking Water Law ......... 392 Hazardous waste facility permit modifications .......................................................................... 392 Natural Resources Damages Fund; Hazardous Waste Clean-up Fund; Environmental Protection Remediation Fund ................................................................................................... 393 Air contaminant source installation permits .............................................................................. 394 Environmental Review Appeals Commission: deadlines for the issuance of orders................ 395

eTECH COMMISSION (ETC) ................................................................................................... 396 Background ............................................................................................................................... 396 State education technology plan ............................................................................................... 396 Interactive distance learning pilot project .................................................................................. 397


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Permanent provision ......................................................................................................... 397 Temporary provision ......................................................................................................... 398 Evaluation of the Pilot Project ........................................................................................... 400

OFFICE OF THE GOVERNOR (GOV) ..................................................................................... 401 Service Coordination Workgroup .............................................................................................. 401 Executive orders of the Governor ............................................................................................. 402 Prohibition on the use of prison labor at the Governor's Residence (VETOED) ....................... 403

DEPARTMENT OF HEALTH (DOH) ........................................................................................ 403 Confidentiality of child fatality review board reports .................................................................. 410 Child fatality review board annual report ................................................................................... 410 Annual report of the Department of Health and the Children's Trust Fund Board .................... 410 Help Me Grow program funding ................................................................................................ 411 Help Me Grow home-visiting programs ..................................................................................... 411 Help Me Grow Advisory Council ............................................................................................... 412 Governor's Advisory Council on Physical Fitness, Wellness, and Sports ................................. 413 HIV testing ................................................................................................................................ 414 Licensure as a freestanding diagnostic imaging center ............................................................ 417 Certificate of Need program ...................................................................................................... 418 Background--long-term care beds ..................................................................................... 418 Limited extension of the moratorium on new long-term care beds.................................... 418 Replacement or relocation within the same county ........................................................... 419 Relocation from a contiguous county ................................................................................ 419 Comparative review for relocation between counties ........................................................ 420 Review procedures ........................................................................................................... 424 Reasons for CON denial ................................................................................................... 425 Dentist Loan Repayment Program ............................................................................................ 427 Dental health resource shortage areas ............................................................................. 427 Eligibility requirements ...................................................................................................... 427 Application......................................................................................................................... 427 Recruitment efforts ............................................................................................................ 427 Parties to the loan repayment contract ............................................................................. 428 Length of service ............................................................................................................... 428 Repayment amount ........................................................................................................... 428 Failure to complete service obligation ............................................................................... 428 Assignment of duty to repay loans .................................................................................... 429 Dentist Loan Repayment Advisory Board ......................................................................... 429 Vital statistics fees .................................................................................................................... 429 Vital statistics--reports of deaths to county auditors and boards of elections (PARTIALLY VETOED) .................................................................................................................................. 430 Fees for board of health services .............................................................................................. 431 Background ....................................................................................................................... 431 Fee categories (PARTIALLY VETOED) ............................................................................ 433 Definition of palliative care ........................................................................................................ 434 Hospice licensing fees .............................................................................................................. 435 Nursing home and residential care facility licensing fees ......................................................... 435 Nurse Aide Registry .................................................................................................................. 436 Removal of name from registry ......................................................................................... 436 Nursing home administrator annual registration fee ................................................................. 437 Adult care facilities .................................................................................................................... 437 Background ....................................................................................................................... 437


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License to operate adult care facility--application process ................................................ 437 Restrictions on applying for license ................................................................................... 438 Determining number of residents for license ..................................................................... 438 Temporary licenses ........................................................................................................... 439 Waiver of licensing requirements ...................................................................................... 439 Restrictions on facility placement ...................................................................................... 439 Inspection of adult care facilities ....................................................................................... 441 Correcting violations .......................................................................................................... 441 Fines ................................................................................................................................. 442 Civil penalties .................................................................................................................... 442 Injunctions ......................................................................................................................... 443 Transfer or discharge of resident ...................................................................................... 443 Authorization to enter facility ............................................................................................. 444 Persons authorized to provide skilled nursing care ........................................................... 445 Department of Health complaint number .......................................................................... 445 Technical changes ............................................................................................................ 445 Community alternative homes .................................................................................................. 445 Hospital accreditation................................................................................................................ 446 Handlers of radioactive material and radiation-generating equipment ...................................... 447 Radiation experts ...................................................................................................................... 448 Disease and Cancer Commission (VETOED) .......................................................................... 448 Hemophilia Advisory Council (VETOED) .................................................................................. 449 Council responsibilities ...................................................................................................... 449 Council membership ......................................................................................................... 449 Sickle Cell Anemia Advisory Committee (VETOED) ................................................................. 451 Federal funds for abstinence education (VETOED) .................................................................. 451 Extension of moratorium regarding the sewage treatment systems program ........................... 452 Agricultural labor camp licensing fees ...................................................................................... 453

COMMISSION ON HISPANIC-LATINO AFFAIRS (SPA) ........................................................ 453 Changes in legislative membership of Commission on Hispanic-Latino Affairs........................ 453

OHIO HOUSING FINANCE AGENCY (HFA) ........................................................................... 454 Housing assistance for honorably discharged veterans ........................................................... 454 Grants for Grads Program ........................................................................................................ 455 Program eligibility .............................................................................................................. 455 Receipt of assistance ........................................................................................................ 456 Lien on first home .............................................................................................................. 457

DEPARTMENT OF INSURANCE (INS) ................................................................................... 458 Review of health insuring corporation's capability and availability of services--certificate of authority .................................................................................................................................... 460 Franchise plans......................................................................................................................... 462 Independent, external reviews of health care coverage decisions ........................................... 463 External reviews at the request of the insured person ...................................................... 463 Automatic external reviews ............................................................................................... 463 Insurance prompt payment fines--disposition ........................................................................... 465 Electronic payment of claims .................................................................................................... 465 Health insurance premium rate filing ........................................................................................ 465 Limiting age for dependent child coverage under a health care plan or insurance policy (PARTIALLY VETOED) ............................................................................................................ 466


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Exceptions ......................................................................................................................... 467 Deduction for coverage for older children ......................................................................... 468 Mandated review by Superintendent of Insurance--exemption ......................................... 469 Mandatory open enrollment period for health insurance coverage ........................................... 469 Maximum number of required enrollees ............................................................................ 470 Rates for open enrollment coverage ................................................................................. 471 Delay in open enrollment coverage ................................................................................... 472 Preexisting conditions ....................................................................................................... 472 Commissions for open enrollment contracts ..................................................................... 472 Exceptions ......................................................................................................................... 473 Rules adopted by the Superintendent ............................................................................... 473 Group-to-individual policy conversions ..................................................................................... 474 Continuation of group health insurance coverage .................................................................... 475 Administrative expenses incurred by sickness and accident insurers ...................................... 475 Employer-sponsored health insurance coverage ...................................................................... 477 Implementation .................................................................................................................. 478 Definitions ......................................................................................................................... 479 Health Care Coverage and Quality Council .............................................................................. 479 Council membership ......................................................................................................... 479 Duties and reports (PARTIALLY VETOED) ...................................................................... 481 Exemption from sunset requirements ............................................................................... 483 The Ohio Fair Plan Underwriting Association ........................................................................... 483 Rates for basic property insurance and homeowners insurance ...................................... 483 Binders for basic property insurance and homeowners insurance.................................... 483 Property and casualty insurance reporting requirements ......................................................... 484 Providers of investment options under alternative retirement plans ......................................... 486

DEPARTMENT OF JOB AND FAMILY SERVICES (JFS) ...................................................... 486 I. General ................................................................................................................................. 500 Expenditure of federal grant funds obligated by the Ohio Department of Job and Family Services (ODJFS) for financial allocations to county family services agencies and local workforce investment boards .................................................................................................... 500 ODJFS General Services Administration and Operating Fund ................................................. 501 Collaboration on welfare reform training ................................................................................... 502 Action against a county regarding family services duties ......................................................... 502 Reallocation of unused county funds (VETOED) ...................................................................... 503 Direct deposit system for cash assistance ................................................................................ 504 II. Child Welfare and Adoption ................................................................................................. 506 State adoption maintenance subsidy and post adoption special services subsidy ................... 506 Listing of children available for adoption and prospective adoptive parents ............................. 507 Alternative Response pilot program .......................................................................................... 508 ODJFS review of associations and institutions (VETOED) ....................................................... 509 III. Publicly Funded Child Care ................................................................................................ 509 Reimbursements for providers of publicly funded child care .................................................... 509 Certificates of payment for days a child has been absent ........................................................ 509 Eligibility determinations for publicly funded child care ............................................................. 510 Child day-care center and home inspections and day-care law violations ............................... 510 Liability insurance for type A and type B family day-care homes .............................................. 511 Committee to study publicly funded child care services ........................................................... 511 IV. Child Support Enforcement ................................................................................................ 512 Office of Child Support requests for medical insurance information ......................................... 512 Issuance of income withholding notices .................................................................................... 513


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Mandatory electronic remittance of child support by certain payors ......................................... 513 Remittance of combined child support payments ..................................................................... 513 Waiver and compromise of assigned child support arrearages ................................................ 514 V. Temporary Assistance for Needy Families (TANF) ............................................................. 514 Ohio Works First (OWF) sanctions ........................................................................................... 515 Notices of number of months of OWF Participation .................................................................. 516 Prevention, Retention, and Contingency (PRC) Program Suspensions ................................... 516 VI. Medicaid ............................................................................................................................. 517 Annual Medicaid eligibility redeterminations for parents ........................................................... 517 Medicaid third party liability ....................................................................................................... 517 Background .......................................................................................................