Am. Sub. H.B. 66*

126th General Assembly

(As Passed by the General Assembly)

 

Reps.     Calvert, Flowers, Martin, McGregor, Peterson, Schlichter, Webster, Aslanides, Blasdel, Coley, Collier, Combs, DeWine, Dolan, C. Evans, D. Evans, Hagan, Kearns, Kilbane, Law, T. Patton, Seaver, Setzer, Wagoner, White, Widowfield, Husted

Sens.      Amstutz, Goodman, Clancy, Carey, Jacobson, Harris

Effective date:  June 30, 2005; certain provisions effective September 29, 2005; certain provisions effective on other dates; certain items vetoed

This 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 that otherwise deals with the subject matter of the item.  The analysis includes a Local Government category and a Retirement Systems category.  It concludes with a Miscellaneous category.

Within each category, a summary of the items appears first (in the form of dot points), followed by a discussion of their content and operation.

TABLE OF CONTENTS

ADJUTANT GENERAL

Reimbursement of federal life insurance premiums for active duty
members of the Ohio National Guard
. 29

Death benefit for active duty members of the Ohio National Guard. 29

Ohio Military Reserve. 30

Background. 30

New annual report 30

New study commission. 30

 

DEPARTMENT OF ADMINISTRATIVE SERVICES

Layoffs due to abolishment of a position by an appointing authority. 33

Overview of former and continuing law.. 33

Definition of and bases for abolishment 34

Layoff due to abolishment of a position for reasons of economy. 34

Appeals from a State Personnel Board of Review decision pertaining
to a layoff
. 35

Encouraging Diversity, Growth, and Equity (EDGE) Program.. 35

Procurement goals and guidelines for contracting with EDGE
business enterprises
. 35

Standard industrial code. 36

Point system to evaluate bid proposals for EDGE participants. 36

Exemption from Public Records Law for EDGE applicants. 36

Debarment of vendors and contractors. 36

Overview.. 36

Vendors. 37

Contractors. 38

Office of Information Technology. 39

Changes to the Fleet Management Law.. 41

Overview of continuing law.. 41

Changes in definitions. 41

Acquisitions under DAS' master leasing program.. 42

Limit on reimbursement for state employees who use their
personal vehicles
. 42

Requirements for state institutions of higher education. 42

Disposition of proceeds derived from sale of motor vehicles. 43

Additional motor vehicles included in the fleet reporting system.. 43

Purchases of supplies and services of persons with disabilities. 44

State Use Committee--background. 44

Transfer of State Use Committee functions to DAS. 44

Office of Procurement from Community Rehabilitation Programs. 45

Temporary work levels and personnel assignments for employees exempt
from the Collective Bargaining Law
.. 50

Department of Administrative Services' recommendations for a state
government reorganization plan
. 50

 

DEPARTMENT OF AGING

Penalty for late payment of annual long-term care facility bed fee. 53

Penalty for denial of ombudsperson access to long-term care facilities or community-based long-term care sites. 53

Certification for provision of community-based long-term care services. 54

Evaluation considerations. 54

Disciplinary action and enforcement 55

Rules governing contracts and payments. 55

Long-term care consultation program.. 56

Background. 56

Overview.. 56

Duty to perform assessments. 57

Information to be provided; assessment of individual's functional
capabilities
. 57

Individuals to be provided consultations; exemptions. 58

Time frame for completion of consultations. 59

Who may perform assessments. 60

Authority to fine nursing facilities. 60

Rulemaking. 61

Plan for providing home and community-based services. 61

Level-of-care assessments to receive Medicaid nursing facility services. 61

Individuals to be assessed. 61

Who may perform assessments. 62

Level of care determinations. 62

Appeals. 63

Rulemaking. 63

Plan for providing home and community-based services. 63

Nursing home and residential care facility survey. 64

Long-Term Care Consumer Guide. 64

Background. 64

The act 65

Transfer of PACE administrative duties. 67

Transferring individuals from nursing facilities to PASSPORT. 68

PASSPORT Evaluation Panel 69

Aging and disability resource centers. 69

Ambulette service providers solely serving ODA.. 70

 

DEPARTMENT OF AGRICULTURE

Family Farm Loan Program.. 74

Animal Health and Food Safety Fund. 74

Creation of Laboratory and Administrative Support Fund. 74

Permits for concentrated animal feeding facilities. 75

Introduction. 75

Background information requirements. 75

Fertilizer license, registration, and tonnage report schedule. 76

Fertilizer inspection fee. 77

Annual fertilizer sales statement 78

Merger of funds. 78

Prohibition against regulation of fertilizer and seed by political subdivisions. 78

Pesticide registration and inspection fee. 79

Commercial feed inspection fee. 80

Commercial feed report 80

Agricultural Commodity Handlers Law definitions. 80

Plant pests program fee. 82

Metrology and Scale Certification Fund. 82

Cannery license fee. 82

Soft drink manufacturing or bottling and sale of syrup or extract fees. 82

Cold-storage warehouse operation license fee. 83

Food locker establishment operation license fee. 83

Certificates of health and freesale. 84

Wine tax diversion to Ohio Grape Industries Fund. 85

Amusement rides. 85

Permit fee. 85

Funding report by Advisory Council on Amusement Ride Safety. 85

Requirements for electrical connections. 86

 

STATE BOARD OF EXAMINERS OF ARCHITECTS

Imposition of fines against certificate holders. 87

 

OHIO ATHLETIC COMMISSION

Authority to issue, deny, suspend, or revoke boxing or wrestling match or exhibition permits  87

Alternative sites and substitute contestants for boxing or wrestling matches
or exhibitions
. 88

 

ATTORNEY GENERAL

Investigation of election-related criminal activity by the Bureau of Criminal Identification and Investigation  89

Removal of Chief Justice from the Crime Victims Assistance Advisory
Committee
. 89

Debts owed to the state. 90

Time at which debts must be certified to the Attorney General
for collection
. 90

Sale of final overdue claims to any person. 91

Sale of claims due the state:  confidentiality of information in claim.. 93

Review of state agencies' debt collection procedures. 93

Funding the Ohio Peace Officer Training Academy. 94

 

OHIO STATE BARBER BOARD

Annual review of Barber Board's rules. 94

 

 

OFFICE OF BUDGET AND MANAGEMENT

User charges for OBM budgeting services. 95

Authority to transfer interest to GRF. 96

 

CAPITOL SQUARE REVIEW AND ADVISORY BOARD

Financial disclosure statement filings. 96

 

DEPARTMENT OF COMMERCE

Plumbing inspectors. 98

Certifying and recertifying. 98

Reciprocal registration, licensure, or certification. 98

Fees. 99

Engaging in the plumbing business. 99

Technical changes in the Plumbing Law.. 99

Fire Marshal's Fireworks Training and Education Fund. 99

Fireworks Law.. 100

Distance requirements between buildings used for fireworks and
other buildings and roadways
. 100

Expansion or contraction of licensed premises. 100

Variances to requirements of Fireworks Law and license moratorium.. 102

Residential Building Code. 102

Minimum price discount for spirituous liquor wholesale purchases. 103

Issuance of Sunday sales liquor permit without local option election
approval to D liquor permit premises located at ski areas
. 103

 

OFFICE OF CONSUMERS' COUNSEL

Call center for consumer complaints against public utilities. 105

Changes to assessments collected from public utilities for maintaining
the Consumers' Counsel
105

 

CONTROLLING BOARD

Approval of state collective bargaining agreements and funds necessary to implement agreement 106

 

OHIO STATE BOARD OF COSMETOLOGY

State Board of Cosmetology office location. 107

 

OFFICE OF CRIMINAL JUSTICE SERVICES

Abolition of the Office of Criminal Justice Services and creation of the
Division of Criminal Justice Services in the Department of Public Safety
. 108

Creation of Federal Justice Programs Fund. 108

 

OHIO CULTURAL FACILITIES COMMISSION

Composition. 109

Cultural Facilities Commission bond premium.. 110

Refunding Ohio Cultural Facilities Commission obligations. 111

 

DEPARTMENT OF DEVELOPMENT

Alternative Fuel Transportation Grant Program.. 112

Shovel Ready Sites Program.. 113

Agreements to assist in retaining jobs at military facilities scheduled to close. 114

Development Financing Advisory Council quorum.. 116

Increased state contributions under the Capital Access Loan Program.. 116

Minority business development loan and bond guarantee programs. 117

Loan Guarantees for Small Businesses Program.. 118

Industrial Site Improvement Fund. 118

Restrictions on Third Frontier Commission funding embryonic
stem cell research
. 120

 

DEPARTMENT OF EDUCATION

I.  School Funding. 137

Background to school funding formula changes. 137

Base-cost and categorical funding. 137

Equalization. 137

Base-cost formula. 138

State share percentage. 139

How the base-cost "formula amount" was established under prior law.. 139

New "building blocks" methodology. 140

FY 2006 and FY 2007 base-cost formula amount 141

Base funding supplements. 141

Cost-of-doing-business factor. 143

Add-backs to the 23-mill charge-off. 143

Because of incentive district property tax exemptions. 143

Because of enterprise zone and similar property tax exemptions. 145

Reporting requirements for school district treasurers. 146

Revised base-cost formula. 147

Base-cost formula for joint vocational school districts. 147

Base-cost funding guarantee. 148

Building blocks spreadsheet 148

Spending requirements associated with the building blocks model 149

In general 149

Academic watch and academic emergency districts. 149

Transitional aid. 150

Permanent state aid guarantee eliminated. 151

Application of funding formula changes to county MR/DD boards,
community schools, open enrollment, and Post-Secondary Enrollment
Options Program
.. 151

Twice-annual reporting of formula ADM... 152

Recommended plan for second annual ADM certification. 153

Random audits of school district ADM reports. 153

Parity aid. 153

Background. 153

Changes in the parity aid calculation. 154

Full funding of parity aid. 154

Poverty-based assistance--background. 154

Poverty-based assistance payments. 155

Poverty index. 155

Guaranteed minimum payment 156

All-day kindergarten payment 157

Academic intervention payment 157

K to 3 class-size reduction payment 159

Payment for services to limited-English proficient students. 159

Professional development payment 160

Dropout prevention payment 161

Community outreach payment 162

Spending prescriptions. 162

Report on spending prescriptions. 164

Transportation subsidy. 164

Background. 164

Payments for fiscal years 2006 and 2007. 165

Recommendations for formula changes. 165

Special education weighted funding. 165

Background. 165

Continued phase-in of special education weights. 166

Threshold catastrophic amount 167

Speech-language services subsidy. 167

Special education transportation subsidy. 167

Special education funding report 167

Payment of special education excess costs to JVSDs. 168

Payment of excess costs for children in residential "homes" 168

Switch to weighted special education funding for state institutions. 168

Date for counting of students in handicapped preschool units. 169

Unit funding for preschool special education related services. 170

Report on the number of handicapped preschool children served. 170

GRADS personnel allowance. 171

Repeal of equity aid statute. 171

Recalculating school district valuations. 171

Changes in charge-off supplement ("gap aid"). 172

Background. 172

Revenue considerations. 172

Phase-down of supplement for districts passing taxes. 173

Bus purchase subsidies. 173

Reimbursement of school district share of Medicaid expenses. 174

Annual reporting by state institutions operating vocational
education programs
. 174

Cap on reimbursement of nonpublic school administrative expenses. 174

II.  Scholarship Programs. 175

Educational Choice Scholarship Pilot Program.. 175

Eligible students. 175

Scholarship amount 176

Financing of scholarships. 177

Number of scholarships. 177

Scholarship payments. 177

Excess tuition charges. 178

Transportation of scholarship students. 178

Start-up; State Board of Education rulemaking authority. 178

Purpose statement 179

Comparison with the Cleveland program.. 179

Changes to the Cleveland scholarship pilot program.. 180

Eligibility for scholarships. 180

Scholarship amount 181

Tutorial assistance grant amount 181

Pilot Project Special Education Scholarship Program.. 181

III.  Community Schools. 182

Background. 182

Caps on community schools. 183

Lottery to select additional schools allowed under caps. 183

Opening schools in excess of the caps. 184

Moratorium on new e-schools. 184

Prohibition on operating school from a residential facility. 185

Criteria for approval of sponsors. 185

Limit on number of schools an entity may sponsor. 186

Deadline for adoption of contract 187

Nullification of contract 187

Enrollment of community school students. 188

Opening date for schools. 188

Changes regarding e-schools. 189

Limit on daily hours logged by e-school students. 189

E-school teachers. 189

Administration of state assessments to e-school students. 189

Plan for special education services. 190

Provision of computers to certain community school students. 191

Sanctions for poorly performing community schools. 192

Additional reading and math assessments. 192

Sanctions for insufficient student progress. 193

Optional use of progress measure by other community schools. 195

Procedures for closing a community school 195

District report card data for conversion schools serving at-risk students. 195

Annual report of expenditures for special education services. 196

Community school to serve autistic students and non-disabled students. 196

State payments to community schools. 196

E-school expenditures for instruction. 197

Elimination of special education funding guarantee. 197

Payments for a child enrolled in a community school but also living in a residential facility  198

Poverty-based assistance for limited-English proficient students. 198

Temporary subsidy for community schools that enroll a high number
of severe behavior handicapped students
. 198

Repeal of outdated law regarding pilot project community schools. 199

IV.  Other Education Programs. 200

Later administration of spring achievement tests. 200

Deadlines for submission of tests and return of scores to districts. 201

Use of student data verification codes. 201

Public release of achievement tests. 202

Elimination of certain diagnostic assessments. 203

Early childhood education programs. 203

Elimination of Title IV-A Head Start and Head Start Plus programs. 203

Qualifications of staff for preschool and early learning programs. 204

TANF-funded Early Learning Initiative. 205

State-funded early childhood education programs. 210

Montessori programs. 212

Reading improvement grants. 212

Background. 212

Elimination of OhioReads Office and community grant program.. 212

Reading improvement grants. 213

Post-Secondary Enrollment Options Program.. 213

Background. 213

Ohio residency. 213

Purpose statement 214

Reimbursement requirement 214

High school credit for Option A.. 214

Reduction of the number of school district employees for financial reasons. 214

Application to future collective bargaining agreements. 214

Teachers. 215

Suspension of teachers' contracts. 215

Restoration of teachers. 215

Reduction of the number of nonteaching employees. 216

Suspension of contracts for nonteaching employees. 217

Restoration of nonteaching employees. 217

Termination of school district transportation staff. 217

Recourse if school district board does not comply with conditions. 219

Academic distress commissions. 219

Academic distress commissions and collective bargaining. 221

Legislative approval of new school districts. 222

School district internal auditors. 222

Eye exams for disabled students. 223

Collective bargaining agreements and use of school volunteers. 224

School district sale of real property. 224

Prohibition on lowered school district and building performance ratings. 225

Background. 225

Ohio Center for Autism and Low Incidence. 226

Stipend for National Board certified teachers. 227

Model student acceleration policy. 228

School district latchkey programs. 228

Elimination of school districts' annual spending plan and submission
of certificate of estimated resources
. 229

Elimination of requirement to file statistical reports. 229

Transportation of pupils attending vocational education programs. 229

Updated five-year projections for fiscal watch and fiscal emergency
school districts
. 230

Suspension of set-asides for school districts in certain circumstances. 230

Background. 230

School districts in fiscal emergency. 230

School districts in fiscal watch or fiscal caution. 231

Other school districts. 231

Prohibition against school district operation without a charter. 231

Map required in chartering new school districts. 231

Legislative committee to study school district consolidation. 232

School Physical Fitness and Wellness Advisory Council 232

 

BOARD OF EMBALMERS AND FUNERAL DIRECTORS

Funeral director apprenticeships. 233

 

STATE EMPLOYMENT RELATIONS BOARD

SERB Training, Publications, and Grants Fund. 234

 

ENVIRONMENTAL PROTECTION AGENCY

Motor vehicle inspection and maintenance program.. 240

Solid waste disposal fees. 242

Introduction. 242

New solid waste disposal fee. 242

Revisions concerning continuing solid waste disposal fees. 242

Procedures for collecting and remitting state solid waste disposal fees. 243

Technical changes. 245

Definition of "solid wastes" 245

Construction and demolition debris facilities. 246

Moratorium.. 246

Construction and Demolition Debris Facility Study Committee. 247

Exclusion from construction and demolition debris disposal fee. 248

New construction and demolition debris disposal fees to fund projects
of soil and water conservation districts and recycling and litter
prevention program
.. 249

Hazardous waste cleanups. 250

Use of Environmental Protection Remediation Fund for cleanups. 250

Environmental clean-up agreements. 250

Contract bidding requirements. 251

Exemption from Department of Administrative Services contracting requirements. 251

Exemption from fees for certain clean-up activities. 251

Repayment of clean-up costs to Hazardous Waste Clean-up Fund. 252

Scrap Tire Management Program.. 252

Fee on tire sales. 252

Funding for Department of Taxation's administration of fee on tire sales. 253

Cost recovery for scrap tire cleanups. 253

Fees for air pollution control permits to install based on process weight rates. 254

Extension of various fee-related provisions. 255

Synthetic minor facility emissions fees. 255

Water pollution control fees and safe drinking water fees. 255

Certification of operators of water supply systems or wastewater systems. 257

Application fees under Water Pollution Control Law and Safe
Drinking Water Law
.. 257

Distribution of federal funding for NPDES program administration. 258

Section 401 water quality certifications. 258

Background. 258

Application procedures and requirements. 259

Use of standards and procedures to evaluate mitigation proposals. 261

Mitigation requirements. 261

Fees. 262

Certification of professionals under Voluntary Action Program Law.. 263

Clean Diesel School Bus Fund. 264

 

eTECH OHIO COMMISSION

Elimination of the Ohio SchoolNet Commission and the Ohio
Educational Telecommunications Network Commission and creation
of the eTech Ohio Commission
. 265

Ohio SchoolNet Commission. 265

Ohio Educational Telecommunications Network Commission. 266

Merging of functions under the new eTech Ohio Commission. 266

Changes in duties of the former commissions when transferred to
the eTech Ohio Commission
. 267

 

GENERAL ASSEMBLY

Submission of legislative reports via electronic means. 269

 

DEPARTMENT OF HEALTH

Critical access hospitals. 272

Funding for county tuberculosis control programs and detention costs. 272

County tuberculosis programs. 272

Detention of persons with tuberculosis. 273

Administration and implementation of the "Choose Life" Fund. 274

Certificate of Need moratorium on long-term care beds. 274

Continued review of CON applications during the moratorium.. 275

Religious order infirmary beds. 276

Physician Loan Repayment Program.. 276

J-1 Visa Waiver Program.. 276

Fee increase for birth certificates, death certificates, and divorce and
dissolution of marriage decrees
. 277

Hospice care facility inspection fee. 278

Nursing home and residential care facility licensing fees. 278

Revocation of nursing home and residential care facility licenses. 279

Grounds. 279

Prohibition on transfer of right to operate. 279

Rejection of license application. 280

Religious nonmedical health care institutions:  nurse aide training exemption. 280

Elimination of Nursing Facility Regulatory Reform Task Force. 281

Adult care facility inspection fees. 281

Radiation control program fees for health care and radioactive
waste facilities
. 282

Program for Medically Handicapped Children. 283

Removal of exemption for religious beliefs. 283

BCMH eligibility. 283

Legislative Committee on the Future Funding of BCMH.. 284

Reimbursement of medical liability insurance premiums paid by free clinics. 285

 

OHIO HISTORICAL SOCIETY

Disbursement of funds by Ohio Historical Society. 286

 

DEPARTMENT OF INSURANCE

School Employees Health Care Board. 288

Medicaid health insuring corporations to post performance bond. 291

Certificate of authority to establish or operate a health insuring corporation. 292

Prompt payment requirements for health insuring corporations
covering Medicaid recipients
. 292

Additional moneys for the Department of Insurance Operating Fund and fee
increases
. 293

Exemption for "employer insureds" from the unauthorized foreign
insurance tax
. 294

Exemption for professional or medical liability insurance from the
unauthorized foreign insurance tax
. 294

Insurer's notification to Superintendent of Insurance concerning out-of-state discipline  295

Certificates of compliance for authorized foreign insurers. 295

Captive insurers exemption--tax on the unauthorized conduct of the
business of insurance
. 295

 

DEPARTMENT OF JOB AND FAMILY SERVICES

I.  General 311

Support Services Federal Operating Fund. 311

Support Services State Operating Fund. 311

Consolidated funding allocations. 311

Increase in county share of public assistance. 312

Recovery of excess payments made to county family services agencies. 312

Eligibility for certain ODJFS-administered programs. 313

Study on disability determinations. 313

Statistics on frequently dispensed drugs under the Ohio's Best Rx Program.. 314

Temporary civil service authority of the Director of Job and Family Services. 314

Overview.. 314

Changes made by the act 314

II.  Workforce Development 316

Compliance with workforce development agreements. 316

III.  Child Care. 317

Publicly funded child care reimbursement ceilings and market rate survey. 317

IV.  Child Support Enforcement 318

Lump sum payments sent to the Office of Child Support 318

Electronic disbursement of child support 319

Child support operating fund. 319

Retention of federal incentives for child support enforcement programs. 319

V.  Child Welfare and Adoption. 320

Summary of minor adoption proceedings. 320

VI.  Title IV-A Temporary Assistance for Needy Families. 320

New TANF programs. 322

Employment Retention Incentive Program.. 322

Title IV-A Demonstration Program.. 323

Kinship Permanency Incentive Program.. 325

Rulemaking. 326

Reports. 327

Ohio Works First 327

Gross income eligibility requirement 327

LEAP Program.. 328

VII.  Medicaid. 328

Medicaid eligibility reduction. 329

Aged, Blind, and Disabled Medicaid eligibility--the home as a
countable resource
. 329

Medicaid look-back period. 330

Medicaid eligibility fraud. 331

Criminal offense. 331

Civil action. 332

Medicaid Estate Recovery Program.. 333

Overview.. 333

Generally. 334

Exceptions. 335

Waiver. 336

Definition of "estate" 336

Medicaid estate recovery liens. 336

Administration of the Medicaid Estate Recovery Program.. 338

Notice to the Medicaid Estate Recovery Program Administrator. 338

Administrator of Medicaid Estate Recovery Program.. 339

State Medicaid plan amendment 339

Medicaid co-payment program.. 340

Medicaid coverage of dental services. 340

Medicaid coverage of vision services. 341

Prohibition on reimbursement for erectile dysfunction drugs. 341

Supplemental Drug Rebate Program.. 341

Multiple-state drug purchasing program.. 341

State Maximum Allowable Cost Program for Medicaid drug reimbursement 342

Medicaid e-prescribing system.. 343

Community mental health services. 344

Medicaid coverage of alcohol, drug addiction, and mental health services. 344

Medicaid reimbursement of long-term care services. 345

Introduction. 345

Fiscal year 2006 reimbursement system for nursing facilities. 345

Fiscal year 2007 reimbursement system for nursing facilities. 346

Nursing facilities rates subject to franchise permit fee changes. 347

Fiscal years 2006 and 2007 reimbursement system for ICFs/MR.. 347

Reimbursement formula revised. 348

Refund of excess depreciation. 359

Medicaid cost report's due date after change of provider. 359

Medicaid provider agreements. 360

Nursing home franchise permit fee. 361

ICF/MR franchise permit fee. 363

Nursing Facility Reimbursement Study Council abolished. 364

Ohio Veteran's Home Agency nursing facility beds. 364

Change of operator, closure, and voluntary termination and withdrawal 364

Change of operator. 365

Facility closure. 366

Voluntary termination and withdrawal of participation. 367

Notice of facility closure or voluntary termination or withdrawal 367

Notice of change of operator. 368

Determination of potential Medicaid debt 369

Withholdings. 370

Final cost report 371

Determination of actual Medicaid debt 372

Release of withholdings. 372

Provider agreement with entering operator. 373

Rate adjustment following change of operator. 375

Compliance with federal law on voluntary withdrawal 375

Medicaid care management 375

Background. 375

Care management annual report 376

Care management working group. 376

Care management reimbursement rates for noncontracting hospitals. 378

Mandatory managed care for covered families and children. 379

Mandatory managed care for the aged, blind, and disabled. 379

Behavioral health services. 380

Care management pilot program for chronically ill children. 380

Prompt payment requirements for health insuring corporations covering Medicaid recipients  381

Managed care grievance process. 381

Independent medical reviews. 381

Performance-based financial incentives in managed care contracts. 382

Mandated coverage of respiratory virus drugs. 382

Medicaid managed care franchise permit fee. 382

Medicaid payments for graduate medical education costs. 385

Approval of Medicaid plan. 386

Supplemental Medicaid payment program for children's hospitals. 386

General requirements for home and community-based services waivers. 386

ODJFS-administered Medicaid waivers. 388

Medicaid waivers for individuals with autism or developmental delays or disabilities. 389

ICF/MR Conversion Pilot Program.. 390

ODJFS to seek federal waiver and amendment state plan. 390

Administration of pilot program.. 391

Implementation of pilot program.. 391

Individuals participating in pilot program.. 392

Evaluation. 392

Restriction on statewide implementation. 393

Reconversion of ICFs/MR.. 393

ODMR/DD responsibility for certain ICF/MR costs. 393

Rules. 394

ICF/MR Conversion Advisory Council 394

Assisted living Medicaid waiver. 395

Eligibility. 395

Facility staffing requirements. 396

Evaluation of Assisted Living program.. 396

Appropriations related to the Assisted Living Medicaid waiver. 397

Medicaid voucher pilot program.. 397

Ohio Access Success Project 398

Medicaid Administrative Study Council 398

Performance audit of Medicaid program.. 401

Reviews of the Medicaid program.. 401

Medicaid data system.. 402

Rules governing services. 403

Termination of unused Medicaid provider agreements. 403

Recovery of Medicaid overpayments. 404

Recovery of Medicaid overpayments by other state agencies. 405

Attorney fees. 405

Effect on other ODJFS actions. 405

Final Medicaid orders when no hearing is requested. 406

Pharmacy and Therapeutics Committee. 406

ODJFS' duties under the Medicare Prescription Drug, Modernization and Improvement Act of 2003  406

VIII.  Hospital Care Assurance Program.. 407

IX.  Disability Medical Assistance. 408

Disability Medical Assistance Program.. 408

Disability Medical Assistance Council 408

X.  Title XX Social Services. 410

Audits of state agency Title XX expenditures. 410

Audits of Title XX social services providers. 410

Rules governing the Title XX program.. 411

Use of TANF funds for Title XX social services. 411

Audits of TANF/Title XX social service providers. 411

Rules governing TANF/Title XX social services. 412

XI.  Food Stamp Program.. 412

Food Stamp Program work requirements. 412

 

JUDICIARY/SUPREME COURT

Vehicle allowance for Supreme Court justices. 413

Medina municipal court clerk. 414

Election. 414

Compensation. 414

Removal of the right to counsel for indigents in certain civil juvenile
proceedings
. 415

Criminal justice regional information system.. 416

 

LEGISLATIVE SERVICE COMMISSION

Ohio school district revenue and expenditure database. 418

Legislative Office of Education Oversight 418

Legislative Budget Office. 419

 

LOCAL GOVERNMENT

Health care benefits for agencies of political subdivisions. 423

Procedure changes to family and children first county councils. 423

Purpose of county family and children first councils. 423

Membership of county family and children first councils. 424

County council executive committee. 424

Procedures for the county service coordination mechanism.. 424

Changes to the county council comprehensive joint service plan. 426

Changes to the service coordination process for children alleged
to be unruly
. 426

Dispute resolution processes. 427

Use of money in the indigent drivers alcohol treatment funds. 428

Bids and bid guaranties for county purchases. 428

Law libraries. 429

Overview; addition of materials and equipment to free of charge use. 429

Setting of compensation for law librarians. 429

Provision of space and utilities. 430

Payment of compensation and costs. 430

Task Force on Law Library Associations. 431

Spending authority of county boards of elections. 432

Insurance law changes. 432

Mandamus actions. 433

Incurring obligations and fund transfers. 433

County Electronic Voting Machine Maintenance Fund. 434

Direct recording electronic voting machine acquisition requirements. 434

Treatment of political subdivision insurance and self-insurance costs
and deductibles
. 435

Local Government and Library Revenue Distribution Task Force. 436

Boards of trustees for certain regional transit authorities. 437

Metropolitan housing authorities. 438

Continuing law.. 438

Changes made by the act 439

Local funding options for construction of convention center. 439

Local funding options for support of arts organizations. 440

Governing board for certain regional arts and cultural  districts. 440

Report on county and large city cost savings. 441

Annual Local Government Inventory and Road Report 441

 

OHIO LOTTERY COMMISSION

Creation of the Charitable Gaming Oversight Fund. 442

 

DEPARTMENT OF MENTAL HEALTH

Transfer of Ohio Family and Children First Cabinet Council
administrative duties
. 443

Family and Children First Administration Fund. 444

Billing methodology for Department of Mental Health hospital inpatients. 444

Billing methodology for state-operated community mental health
services clients
. 449

Consolidated prescription drug purchasing program.. 449

 

DEPARTMENT OF MENTAL RETARDATION AND DEVELOPMENTAL DISABILITIES

Community alternative funding system terminated. 451

Medicaid case management services. 453

Medicaid home and community-based services. 455

Rules governing service contracts. 455

Fee increase for county MR/DD boards. 456

Priority waiting lists for home and community-based services. 456

Home and community-based services under the Department of MR/DD.. 457

 

DEPARTMENT OF NATURAL RESOURCES

Fees for oil and gas well permits. 463

Old Woman Creek National Estuarine Research Reserve. 463

Privatization of inspection of certain dams. 464

Division of Wildlife's sources of funding for payments to school districts. 465

Youth hunting licenses and permits; fur taker permits. 466

Resident hunting and fishing licenses for certain military personnel 466

State park fees. 467

Prohibition against rules establishing state park admission
and parking fees
. 467

Discount program for Golden Buckeye Card holders. 467

Elimination of Parks and Recreation Depreciation Reserve Fund. 468

Watercraft Revolving Loan Fund and related program.. 468

Nonresident operation of all-purpose and other special vehicles. 470

Distribution of money from severance tax on coal 470

 

OHIO BOARD OF NURSING

Medication Aide Pilot Program.. 471

Medication Aide Advisory Council 472

Council duties. 473

Program operation. 474

Evaluation and report 474

Use of medication aides after pilot program terminates. 475

Medication aides. 475

Disciplinary action. 477

Reporting alleged misconduct 477

Medication aide training programs. 478

Participating facilities. 478

Immunity from liability and disciplinary actions. 479

Rules. 479

 

OHIO OCCUPATIONAL THERAPY, PHYSICAL THERAPY, AND ATHLETIC TRAINERS BOARD

Occupational Therapy, Physical Therapy, and Athletic Trainers
Board membership
. 481

Practice of physical therapy without prescription or referral 481

 

OHIO PUBLIC DEFENDER COMMISSION

Background information. 482

Operation of the act 483

Application fee for indigent defendants and parties in juvenile court 483

Billing practices of the State Public Defender. 485

DEPARTMENT OF PUBLIC SAFETY

Creation of the Division of Criminal Justice Services in the Department
of Public Safety and abolition of the Office of Criminal Justice Services
. 487

Proceeds from the criminal forfeiture of property to Department of
Public Safety agencies under federal law
.. 488

Deletion by the Bureau of Motor Vehicles of a record of conviction. 488

Display of certain special license plates on recreational vehicles. 489

Commercial driver's license exemption. 489

Commercial driver's licenses. 489

Utility vehicles and the motor vehicle dealer licensing law.. 490

Repeal of dealer registration provisions of the special vehicle law.. 491

Homeland security funds. 491

 

PUBLIC UTILITIES COMMISSION OF OHIO

Assessments collected from railroads and public utilities for maintaining
the Public Utilities Commission
. 492

Forfeitures assessed by the Commission. 493

General forfeitures against a public utility or railroad. 493

Forfeitures for gas pipe-line safety violations. 494

Utility Radiological Safety Board Assessments. 494

 

OHIO BOARD OF REGENTS

Cap on undergraduate tuition increases at state institutions of
higher education
. 497

Phasing out of the Ohio Instructional Grant Program.. 498

Creation of the Ohio College Opportunity Grant Program.. 498

Eligibility. 498

Priority for low-income students based on elementary and secondary achievement 500

Amount of grant awards per academic year. 500

Ineligibility for a grant 501

Institutions must refund grants to the state if student no longer eligible. 501

State Need-Based Financial Aid Reconciliation Fund. 502

Financial aid audits. 502

Fees for certificates of authorization and annual reports. 502

Transfer of career-technical education coursework to state institutions
of higher education
. 503

Local administration competency certification program.. 503

Background. 503

The act 504

Award of state college and university printing contracts. 505

Prior law.. 505

Changes by the act 505

National Guard Scholarship Reserve Fund. 506

Kent State University's Columbus Program in Intergovernmental Issues. 506

Insurance for treasurer of Shawnee State University. 507

Warren County-Montgomery County community college district 507

Board of trustees membership. 507

Community college taxes and bonds in each county. 508

Trustees' voting powers. 508

Tuition for Warren County residents. 509

Bonds. 509

University enrollment caps. 509

Nurse Education Assistance Program loans. 510

The Ohio State University Board of Trustees membership. 510

 

DEPARTMENT OF REHABILITATION AND CORRECTION

Payment for necessary medical care of persons confined in a county jail
or a state correctional institution at the Medicaid reimbursement rate
. 512

Assessment of library fees. 512

Correctional Faith-Based Initiatives Task Force. 512

GPS monitoring of sexually violent predators. 513

 

RETIREMENT SYSTEMS

Elimination of appropriation to Ohio Police and Fire Pension Fund. 514

Municipal pubic safety directors included in PERS-LE.. 515

Retaining independent legal counsel 515

 

STATE BOARD OF SANITARIAN REGISTRATION

Notification of sanitarian continuing education courses. 516

Sanitarian fees. 516

 

OHIO STATE SCHOOL FOR THE BLIND/
SCHOOL FOR THE DEAF

Administration of donations and federal funds. 517

Custodial funds for students. 518

State School for the Deaf Educational Program Expenses Fund. 518

State School for the Blind Student Activity and Work-Study Fund. 519

 

SCHOOL FACILITIES COMMISSION

Background. 520

Equalization of maintenance levies. 521

Career-technical school building assistance loan program.. 523

 

 

Investment earnings of Education Facilities Trust Fund. 524

Background. 524

Project plan submission to ODOT. 525

 

SECRETARY OF STATE

Notary public name or address change and resignation. 526

Commissions for special police officers. 526

Prohibitions on duplicate candidacy. 527

Nomination or election to a federal office and a state or county office. 527

Disqualification from the ballot before the primary election. 528

Disqualification from the ballot before the general election. 528

 

BOARD OF SPEECH-LANGUAGE PATHOLOGY 
AND AUDIOLOGY

Licensure of audiologists. 530

Licensure requirements. 530

Licensure for individuals previously licensed in another state. 531

Removal of license renewal provision. 531

 

DEPARTMENT OF TAXATION

I.  Commercial Activity Tax. 542

New business privilege tax. 542

Persons subject to tax. 543

Persons not subject to the tax. 543

Computation of tax. 545

Revenue limitation and future rate adjustments. 545

"Taxable gross receipts" 547

Use of revenue. 554

Tax credits. 555

Registration and fee. 556

Consolidation of related taxpayers. 557

Combined taxpayers. 559

Tax periods. 559

General administration. 560

Criminal penalties. 562

Challenging legality of tax's application. 563

II.  Corporation Franchise Tax. 563

Phase-out of corporation franchise tax. 563

Credit for unused net operating loss deductions, other deferred tax assets. 564

Some noncorporations treated as corporations. 567

Recycling and Litter Prevention Fund. 568

Purchase and installation of new manufacturing machinery and equipment 568

Tax credits not available for purchases made after June 30, 2005. 568

Tax credits converted to grants administered by the Department
of Development
569

Telephone company tax credit for providing telephone service programs
to aid the communicatively impaired
. 570

III.  Personal Income Tax. 570

Tax rates reduced uniformly by 21%... 570

Inflation adjustments delayed. 572

Deduction for qualified tuition and fees eliminated. 572

Credit for low-income taxpayers created. 573

Injured military personnel income tax refund contribution system.. 573

Overview.. 573

Reporting requirement 574

Rulemaking required. 574

Administrative costs. 574

Taxation of trust income made permanent 574

Trust residency rules. 575

"Qualifying investment pass-through entity" 576

Trust election to be subject to the commercial activity tax. 577

Credit for a resident's out-of-state income tax liability disallowed if
the out-of-state income tax liability is deducted in computing the
resident's tax base
. 578

Meaning of "indirect" ownership. 578

Treatment of income from nonresident's sale of a pass-through entity. 579

IV.  Property Taxes and Transfer Fees. 580

Elimination of the 10% rollback in real property taxes for real property
used in business
. 580

Phase-out of tax on business and telecommunications personal property. 581

Exemption of new business machinery and equipment 581

Phase-out of tax on all other business tangible personal property. 582

Phase-out of tax on telecommunications property. 582

Reimbursement of local taxing units. 583

Reimbursement for county administrative fee losses. 585

Clarification of definition of "manufacturing equipment" 585

Joint Legislative Tax Reform Impact Study Committee. 586

Reduction in assessment rate on public utility property. 587

Tax treatment of nonutility electricity providers. 587

Railroad property assessment 588

Property leased to public utilities. 588

Taxation of oil and gas recovery equipment 589

School district property tax to offset funding formula charge-off increases. 590

Accelerate phase-out of state reimbursement for $10,000 business
property exemption
. 590

Equalization of real property assessments. 591

School district property tax replacement payments when district
mergers occur
. 591

Computation used to determine amounts deposited each year in the
Property Tax Administration Fund changed
. 593

State payment of estimated taxes for acquired property. 595

Interest rate reduced on personal property tax late payments and
overpayments
. 595

Incentive districts. 596

Overview.. 596

Conditions for creating incentive districts. 596

Notice requirements and reimbursement of municipalities, counties, or townships in which incentive districts are located. 597

Grandfathering incentive districts. 598

Treatment of special tax levies levied on property exempted in incentive districts. 598

Tax increment financing changes. 599

Real property tax exemption for certain buildings and lands used by a state university. 600

Performing arts center tax exemption. 601

V.  Sales and Use Taxes. 602

Rate change. 602

Temporarily maintain the 0.9% discount for vendors and sellers. 603

Overview of the Streamlined Sales and Use Tax Agreement and changes
made to conform to it
603

Sourcing multiple points of use sales; sales of direct mail 603

Administering exempt sales under the Agreement 604

Change to the statute of limitations for assessing sales or use taxes. 605

Medical equipment definitions and exemptions. 605

Revisions to the definition of "price"; tax treatment of
"bundled transactions"
606

Telecommunications definitions and sourcing requirements. 606

Timing of the adoption of resolutions for county
permissive sales tax levies
. 606

County license fee reimbursement 607

Transmission to the Treasurer of State of sales and use taxes collected
by court clerks upon issuing certificates of title
. 608

Sales of investment metal bullion and coins subject to sales and use taxes. 608

VI.   Kilowatt-hour and Natural Gas Consumption Taxes. 609

The kilowatt-hour (kWh) tax. 609

Elimination of the trigger for reducing revenues credited to GRF. 609

The natural gas consumption tax. 610

Elimination of the threshold for transferring GRF moneys to other funds. 610

 

VII.  Cigarette Taxes. 610

Sale, distribution, and taxation of cigarettes. 610

Cigarette tax. 610

"Floor tax" on cigarette inventories. 610

Unstamped cigarettes prohibitions:  quantity basis rather than value basis. 611

Persons subject to Ohio laws governing sale, distribution, and taxation
of cigarettes
. 612

Tax stamps. 612

Records pertaining to cigarette sales and purchases. 613

Manufacturer and importer reports. 613

Seizure and forfeiture of cigarettes. 614

Tax Commissioner's and peace officers' inspection powers. 614

Licenses to traffic in cigarettes. 614

Authorized sales. 615

"Authorized recipients of tobacco products" 616

Consent for consumer shipment 617

Use tax exemption for cigarettes. 618

Cigarette excise use tax exemption for cigarettes. 618

Transportation of untaxed cigarettes. 618

VIII.  Other Taxation Provisions. 618

Local Government Funds. 618

Permanent law.. 619

Act's treatment of LGF, LGRAF, and LLGSF. 621

LGF and LGRAF. 621

LLGSF. 623

Job retention tax credit 624

Authority to enter into agreements for job retention tax credits extended. 624

Job retention tax credit:  capital investment projects. 624

Job creation tax credit 624

Overview of the job creation tax credit 624

Extension of the job creation tax credit to insurance companies. 625

Estate taxes. 625

Overview of the additional estate tax, generation-skipping tax, and
the family-owned business deduction
. 625

Federal changes that have affected the state estate tax law.. 626

Constructive elimination of the additional estate tax and generation-
skipping tax; repeal of the deduction for family-owned businesses
. 626

Temporary tax credit 627

Estate tax penalty for late payments and filings; change to rate applied to overpayments and underpayments of the estate tax. 627

Interest 628

Penalties. 628

Waiving penalties. 628

Additional amendments made to incorporate federal tax law changes. 629

Technical correction. 629

Real estate assessment funds. 630

Phase-out of the grain handling tax. 630

Tax credits under the Ohio Venture Capital Program.. 631

Credit extended to dealers in intangibles and public utilities. 631

Credit amounts. 631

Claiming of credit by equity investors. 632

Motor fuel taxes. 633

The motor fuel use tax. 633

Motor fuel excise tax:  prompt payment discount and shrinkage allowance. 634

Motor fuel tax refund application. 634

Pass-through entity tax law:  technical and conforming changes. 635

Tax Commissioner authorized to require identifying information from
persons filing tax documents with the Department of Taxation
. 636

Overview.. 636

Confidentiality of social security numbers. 636

Commissioner may impose penalties for failure to provide or update
identifying information
. 636

Criminal penalties. 637

School district income tax on earnings. 637

Background. 637

Alternative school district income tax base. 638

Reauthorization of municipal income tax sharing with school districts. 638

Convention facilities authority lodging tax. 639

Convention center tax authorizations. 640

Food and beverage tax for convention centers. 640

Lodging taxes for convention centers. 641

Temporary tax amnesty program.. 643

Program description. 643

Distribution of taxes collected under the program.. 644

State reimbursement for $10,000 business property exemption. 644

Dealers in intangibles tax:  penalty review procedures established. 644

Definition of "dealer in intangibles" 645

Tax Commissioner reports on tourism-related tax revenue. 646

 

DEPARTMENT OF TRANSPORTATION

Transportation improvement district projects. 648

Transportation improvement district bond refunding through the State Infrastructure Bank  648

General aviation license tax. 649

Maintenance of state park roads. 649

 

OHIO TUITION TRUST AUTHORITY

Background. 650

Guaranteed College Savings Program.. 651

Variable College Savings Program.. 651

Index Operating Fund. 651

Change in terminology. 652

Account termination and refunds under the Guaranteed Program.. 652

Prior law.. 652

The act 653

Account termination and refunds under the Variable Program.. 653

Refunds to scholarship programs. 654

Elimination of refunds for beneficiaries receiving scholarships. 654

Refund of tuition in case of withdrawal from school 654

 

OHIO VETERANS' HOME AGENCY

Ohio Veterans' Homes Rental, Service, and Medicare Reimbursement Fund. 655

 

OHIO WATER DEVELOPMENT AUTHORITY

Competitive bidding requirements. 655

 

BUREAU OF WORKERS' COMPENSATION

Bureau of Workers' Compensation investments. 660

Fiduciary review conducted by the Inspector General 660

Requirements and restrictions for investing. 660

Changes to the Oversight Commission. 662

Chief Investment Officer. 663

Bureau of Workers' Compensation chief investment officer license. 665

Audits. 667

Fiduciary requirements and conflict of interest 668

Criminal records checks. 670

Campaign contributions. 673

Ethics disclosures. 673

 

DEPARTMENT OF YOUTH SERVICES

Payment of maintenance and other expenses of a district detention facility. 674

Referral of children by the Department of Youth Services to community corrections facilities  675

 

MISCELLANEOUS

Financial accountability of persons that contract with the state or a
political subdivision
. 677

Overview.. 677

Contracts for the provision of services benefiting individuals or the public. 678

Contracts for the provision of goods, construction, and all other services. 691

Application. 693

Legal Aid Fund. 693

Ohio Legal Assistance Foundation (OLAF). 694

Filing fees. 695

Ohio Community Service Council Gifts and Donations Fund. 696

Consolidation of certain regulatory boards and commissions. 696

Department of Health. 697

Department of Commerce. 697

Department of Public Safety. 698

Transition team and recommendations. 698

Implementing legislation. 699

Satisfaction of judgments and settlements against the state. 699

Conveyance of real estate in Athens County. 699

Safekeeping of securities pledged by trust companies. 700

Ohio CASA/GAL Study Committee. 700

Applicability of Ohio's Miscellaneous Bond Proceedings Law.. 701

 

ADJUTANT GENERAL

·        Requires the Adjutant General to reimburse premiums of defined "active duty members" of the Ohio National Guard who choose to purchase life insurance under a specified federal program.

·        Requires the Adjutant General to pay a $100,000 death benefit to a designated beneficiary or beneficiaries if defined "active duty members" of the Ohio National Guard die while performing active duty.

·        Requires the Commander of the Ohio Military Reserve (OHMR) to annually report to the General Assembly all OHMR expenditures and the use of all OHMR funds.

·        Creates the Ohio Military Reserve Homeland Security Study Commission to evaluate the OHMR's role and effectiveness and to report its findings to the General Assembly before January 1, 2006.

 

 

Reimbursement of federal life insurance premiums for active duty members of the Ohio National Guard

(R.C. 5919.31)

The act requires the Adjutant General to reimburse an active duty member (see below) of the Ohio National Guard in an amount equal to the monthly life insurance premium paid for each month or part of a month by the member while being an active duty member--if the member chooses to purchase life insurance from the federal Servicemembers' Group Life Insurance program.  "Active duty member" generally is defined as a member of the Ohio National Guard on active duty pursuant to an executive order of the President of the United States, the federal Homeland Defense Activity Law, another act of Congress, or a proclamation of the Governor, but does not include a member performing full-time Ohio National Guard duty or performing special work active duty under specified federal law.[1]

If the Adjutant General does not have sufficient available unencumbered funds to so reimburse active duty Ohio National Guard members, the Adjutant General may request additional money from the Controlling Board.  The act also gives the Adjutant General power to prescribe and enforce regulations to implement these life insurance premium provisions, which regulations need not be adopted as rules in accordance with R.C. 111.15 or the Administrative Procedure Act.

Death benefit for active duty members of the Ohio National Guard

(R.C. 5919.33)

Under former law, the Adjutant General had to pay a $20,000 death benefit from appropriations for operating expenses to an Ohio National Guard member's designated beneficiary or beneficiaries if the member died while performing state active duty under orders issued by the Adjutant General on behalf of the Governor.  Under the act, the Adjutant General instead must pay a $100,000 death benefit from the appropriations made for this purpose to the designated beneficiary or beneficiaries of any "active duty member" of the Ohio National Guard who dies while performing active duty.  The act defines "active duty member" in the same manner as described under the preceding topic.

Ohio Military Reserve

(R.C. 5920.01; Section 560.03)

Background

The Ohio Military Reserve (OHMR) is organized as a reserve military force to defend the state when the Ohio National Guard is employed so as to leave the state without adequate defense.  The Governor is its commander-in-chief and is responsible for prescribing rules under which the OHMR operates.  The OHMR cannot be called into the military service of the United States, but it may become a component of the Ohio National Guard and subject to the Secretary of Defense's regulations thereby.  Enlistment in the OHMR does not exempt a person from military service under any law of the United States.

New annual report

The act requires the OHMR's commander to annually prepare, and deliver to the General Assembly within three months of the end of the state fiscal year, a written report of all OHMR expenditures and of the use of all OHMR funds (R.C. 5920.01(B)).

New study commission

The act creates the Ohio Military Reserve Homeland Security Study Commission to evaluate the OHMR's role and effectiveness.  The Commission consists of seven members:  the Chair of the House Commerce and Labor Committee, who will serve as the study commission's chairperson, two members of the House of Representatives appointed by the House Speaker, two members of the Senate appointed by the Senate President, the Adjutant General or the Adjutant General's designee, and the Director of Public Safety or the Director's designee.  The act directs the study commission to report its findings to the General Assembly before January 1, 2006.  (Section 560.03.)

 

DEPARTMENT OF ADMINISTRATIVE SERVICES

·        Defines for appointing authorities when "reasons of economy" exist that may result in the abolishment of a position and the layoff of the employee holding the position.

·        Redefines for appointing authorities the term "abolishment" as the deletion of a position from the organization or structure of an appointing authority.

·        Permits an appointing authority to appeal a State Personnel Board of Review decision pertaining to a classified employee's layoff, to the appropriate court of common pleas under the Administrative Procedure Act.

·        Requires the Director of Administrative Services to establish guidelines rather than agency procurement goals for state universities and the Ohio School Facilities Commission for awarding contracts to EDGE business enterprises, thus allowing them to establish their own procurement goals.

·        Allows the Director to use an equivalent code classification instead of standard industrial code when establishing agency procurement goals and to establish a system comparable to a point system to evaluate bid proposals to encourage EDGE business enterprises to participate in the procurement of certain services.

·        Exempts EDGE Program applicants' financial information and trade secrets from the Public Records Law unless certain circumstances apply.

·        Authorizes the Director of Administrative Services to debar vendors and contractors from consideration for contract awards based on separate, specified factors and establishes procedures governing the debarments, including notice and hearing requirements.

·        Establishes the Office of Information Technology in the Department of Administrative Services to advise the Governor regarding the superintendence and implementation of statewide information technology policy and to lead, oversee, and direct activities regarding the development and use of information technology by specified state agencies.

·        Changes the definitions of "state agency" and "law enforcement officer" as used in the Fleet Management Law to include or exclude various individuals or entities from those terms.

·        Includes cargo vans within the types of motor vehicles subject to the Fleet Management Law.

·        Generally requires state agencies subject to the Fleet Management Law to acquire motor vehicles through the master leasing program established by the Department of Administrative Services.

·        Prohibits reimbursement to state employees who use their own personal vehicles for any mileage incurred above an amount the Department of Administrative Services determines annually unless the Department approves reimbursement for the excess mileage in accordance with specified standards.

·        Requires a state institution of higher education to use the Department of Administrative Services' fleet management tracking system, fuel card program (to pay for fuel and vehicle maintenance), and bulk fuel purchases contract (to make bulk fuel purchases) if the Department certifies pursuant to an annual specified reporting procedure that the institution will save funds by doing so.

·        Authorizes proceeds from the disposition under the Fleet Management Law of motor vehicles that were purchased with General Revenue Fund money to be deposited, in the discretion of the Director of Administrative Services, to the credit of either the Fleet Management Fund or the Investment Recovery Fund, rather than just into the Fleet Management Fund.

·        Requires state agencies to submit data and other information to the Department of Administrative Services about motor vehicles that otherwise are not subject to the Fleet Management Law.

·        Transfers, as of July 1, 2005, or the earliest date thereafter permitted by law, the functions of the State Committee for the Purchase of Products and Services Provided by Persons with Severe Disabilities ("State Use Committee"), formerly housed in the Department of Mental Retardation and Developmental Disabilities, to the Department of Administrative Services.

·        Requires the Department of Administrative Services to replace, by July 1, 2007, the State Use Committee with a new Office of Procurement from Community Rehabilitation Programs (OPCRP).

·        Requires the OPCRP to establish a new program that generally requires state agencies and entities, as well as county, township, and village governments, to purchase supplies and services (1) provided by persons with work-limiting disabilities who are employed by community rehabilitation programs and (2) from an associated procurement list established by the OPCRP.

·        Generally requires the OPCRP to establish fair market prices for items on the procurement list, and provides that purchases from the list are not subject to any competitive selection process.

·        Establishes that a fee must be paid to DAS by all agencies and entities making purchases under the OPCRP purchase program to cover DAS' costs in administering the program.

·        Permits an appointing authority to assign duties of a higher classification to an exempt employee for not more than two years with that employee's consent in non-vacancy circumstances.

·        Permits, if necessary, employees who are exempt from the Collective Bargaining Law and who are assigned to duties within their agency to maintain operations during the Ohio Administrative Knowledge System implementation, to agree to a temporary assignment for more than two years.

·        Would have required the Department of Administrative Services to recommend by January 1, 2007, to the leaders of the General Assembly a state government reorganization plan focused on increased efficiencies in the operation of state government and a reduced number of state agencies (VETOED).

 

 

Layoffs due to abolishment of a position by an appointing authority

(R.C. 124.321(D))

Overview of former and continuing law

Under the Civil Service Law, one of the continuing reasons for which an appointing authority may lay off an employee is as a result of the abolishment of the employee's position (see grounds in next paragraph).  Formerly, the abolishment had to be due to the lack of continued need for that position--the abolishment was a permanent deletion of the position from the appointing authority's organization or structure.  The appointing authority had to indicate in its determination to abolish the position this "lack of continued need" for it. 

Under continuing law, an abolishment of a position and, therefore, a consequent lay off of the employee holding the position may be (1) as the result of a reorganization for the efficient operation of the appointing authority, (2) for reasons of economy, or (3) for lack of work.

Definition of and bases for abolishment

The act redefines the term "abolishment" as the deletion of a position (as contrasted with former law's "permanent" deletion of a position) from the organization or structure of an appointing authority.  The act also removes from the definition the condition that the abolishment "be due to the lack of continued need" for the position and repeals the corresponding requirement that the appointing authority's determination to abolish the position indicate this lack of continued need.  However, the act still provides that an abolishment may be for any one or any combination of the following:  as the result of a reorganization for the efficient operation of the appointing authority, for reasons of economy (see below), or for lack of work.

Layoff due to abolishment of a position for reasons of economy

The act essentially defines for appointing authorities the second basis--"reasons of economy"--that may result in the abolishment of a position and the lay off of the employee holding it.  Specifically, the act provides that "reasons of economy" must be determined at the time the appointing authority proposes to abolish the position.  Additionally, "reasons of economy" generally must be based on the appointing authority's estimated amount of savings with respect to salary, benefits, and other matters associated with the abolishment of the position.  However, the act allows "reasons of economy" to be based on savings with respect to salary and benefits only if both of the following apply:

·        Either the appointing authority's operating appropriation has been reduced by an executive or legislative action, or the appointing authority has a current or projected deficiency in funding to maintain current or projected levels of staffing and operations.

·        It files a notice of the position's abolishment with the Director of Administrative Services within one year of the appointing authority's operating appropriation being reduced by an executive or legislative action or the appointing authority having a current or projected deficiency in funding as described above.

If an appointing authority is authorized to abolish a position and lay off an employee based on the appointing authority's estimated amount of savings with respect to salary and benefits only, as outlined above, each of the following applies:

·        The position's abolishment must be done in good faith and not as a subterfuge for discipline.

·        If a circumstance affects a specific program only, the appointing authority only may abolish a position within that program.

·        If a circumstance does not affect a specific program only, the appointing authority may identify a position that it considers appropriate for abolishment based on the reasons of economy.

Appeals from a State Personnel Board of Review decision pertaining to a layoff

(R.C. 124.328)

Continuing law allows a classified employee to appeal the employee's layoff by an appointing authority to the State Personnel Board of Review (SPBR).  And, under former law, only the employee could appeal the SPBR's decision to the appropriate court of common pleas under the Administrative Procedure Act. 

The act also allows an appointing authority to so appeal a SPBR decision.

Encouraging Diversity, Growth, and Equity (EDGE) Program

Procurement goals and guidelines for contracting with EDGE business enterprises

(R.C. 123.152(B)(2) and (14))

Under continuing law, state agencies are encouraged to contract with "EDGE business enterprises," which are businesses certified by the Director of Administrative Services as participants in the Encouraging Diversity, Growth, and Equity (EDGE) Program.  The Director must establish procurement goals for state agencies, including state universities and the Ohio School Facilities Commission, to contract with EDGE business enterprises generally for services, goods, and public improvements.[2]  The act requires the Director to establish guidelines, rather than procurement goals, for state universities and the Ohio School Facilities Commission to allow the universities and Commission to establish their own procurement goals for contracting with EGE business enterprises.

Standard industrial code

(R.C. 123.152(B)(2))

Under continuing law, the Director is required to establish agency procurement goals for contracting with EDGE business enterprises based on the availability of eligible program participants by region or geographic area.  Formerly, the procurement goals also had to be established by standard industrial code, but the act allows the Director to use "equivalent code classification" as an alternative to using standard industrial code.

Point system to evaluate bid proposals for EDGE participants

(R.C. 123.152(B)(6))

Under former law, the Director was required to establish a point system to evaluate bid proposals to encourage EDGE business enterprises to participate in the procurement of professional design and information technology services.  The act allows the Director to establish a "comparable system" as an alternative to a point system.

Exemption from Public Records Law for EDGE applicants

(R.C. 123.152(C))

The act exempts from the Public Records Law business and personal financial information and trade secrets submitted by EDGE Program applicants to the Director unless the Director presents the financial information or trade secrets at a public hearing or public proceeding concerning the applicant's eligibility to participate in the Program.

Debarment of vendors and contractors

(R.C. 125.25 and 153.02)

Overview

The act authorizes the Director of Administrative Services to debar vendors and contractors from consideration for contract awards based on specified factors.  It also establishes procedures governing the debarment, including notice and hearing requirements.  As described below, the specified factors differ between the vendors and contractors.

Vendors

Under the act, the Director of Administrative Services may debar a vendor from consideration for contract awards (apparently for supplies or services) upon a finding, based upon a reasonable belief, that the vendor has done any of the following:

(1)  Abused the selection process by repeatedly withdrawing bids or proposals before purchase orders or contracts are issued or failing to accept orders based upon firm bids;

(2)  Failed to substantially perform a contract (according to its terms, conditions, and specifications) within specified time limits;

(3)  Failed to cooperate in monitoring contract performance by refusing to provide information or documents required in a contract, failed to respond to complaints to the vendor, or accumulated repeated justified complaints regarding performance of a contract;

(4)  Attempted to influence a public employee to breach ethical conduct standards or to influence a contract award;

(5)  Colluded to restrain competition by any means;

(6)  Been convicted of a criminal offense related to the application for or performance of any public or private contract, including embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense that directly reflects on the vendor's business integrity;

(7)  Been convicted under state or federal antitrust laws;

(8)  Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;

(9)  Violated any other responsible business practice or performed in an unsatisfactory manner as determined by the Director;

(10)  Through the default of a contract or through other means had a determination of unresolved finding for recovery by the Auditor of State;

(11)  Acted in such a manner as to be debarred from participating in a contract with any governmental agency.

When the Director reasonably believes that grounds for debarment exist, the Director must send the vendor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing.  The hearing must be conducted in accordance with the Administrative Procedure Act.  If the vendor does not request a hearing in the specified manner, the Director must issue the debarment decision without a hearing and must notify the vendor of the decision by certified mail, return receipt requested.

The Director must determine the length of a debarment period and may rescind a debarment at any time upon notification to the vendor.  During a debarment period, a vendor is not eligible to participate in any state contract, but after the debarment period expires, the vendor is eligible to be awarded a state contract (apparently for supplies or services).

Through the Office of Information Technology (see the next portion of this analysis) and the Office of Procurement Services, the Director is required to maintain a list of all vendors currently debarred from participating in state contracts (apparently for supplies or services).

Contractors

The Director also may debar under the act a contractor from contract awards for certain public improvements upon proof that the contractor has done any of the following:

(1)  Defaulted on a contract requiring the execution of a takeover agreement;

(2)  Knowingly failed during the course of a contract to maintain the coverage required by the Bureau of Workers' Compensation;

(3)  Knowingly failed during the course of a contract to maintain the contractor's drug-free workplace program as required by the contract;

(4)  Knowingly failed during the course of a contract to maintain insurance required by the contract or otherwise by law, resulting in a substantial loss to the owner;

(5)  Misrepresented the firm's qualifications in the selection process set forth in the Professional Design Services Law;

(6)  Been convicted of a criminal offense related to the application for or performance of any public or private contract, including embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense that directly reflects on the contractor's business integrity;

(7)  Been convicted of a criminal offense under state or federal antitrust laws;

(8)  Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;

(9)  Been debarred from bidding on or participating in a contract with any state or federal agency.

When the Director reasonably believes that grounds for debarment exist, the Director must send the contractor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing.  The hearing must be conducted in accordance with the Administrative Procedure Act.  If the contractor does not request a hearing in the specified manner, the Director must issue the debarment decision without a hearing and must notify the contractor of the decision by certified mail, return receipt requested.

The Director must determine the length of a debarment period and may rescind a debarment at any time upon notification to the contractor.  During a debarment period, a contractor is not eligible to bid for or participate in any contract for a public improvement, but after the debarment period expires, the contractor is eligible to bid for and participate in contracts for public improvements.

Through the Office of the State Architect, the Director is required to maintain a list of all contractors currently debarred under these provisions.  Any governmental entity awarding a contract for construction of a public improvement may use a contractor's presence on the debarment list to determine whether a contractor is responsible or best as may be required in the award of a contract.

Office of Information Technology

(R.C. 125.041 and 125.18)

The act establishes the Office of Information Technology that is to be housed within the Department of Administrative Services (DAS).  The Office is to be under the supervision of a chief information officer (CIO) who must serve as the director of the Office.  The CIO must be appointed by the Governor and is subject to removal at the pleasure of the Governor.

The CIO is required to advise the Governor regarding the superintendence and implementation of statewide information technology policy.  The CIO also must lead, oversee, and direct state agency activities related to information technology development and use.[3]  In that regard, the CIO must do all of the following:

·        Coordinate and superintend statewide efforts to promote common use and development of technology by state agencies.  The Office must establish policies and standards that govern and direct state agency participation in statewide programs and initiatives.

·        Establish policies and standards for the acquisition and use of information technology by state agencies, including, but not limited to, hardware, software, technology services, and security, with which state agencies must comply.

·        Establish criteria and review processes to identify state agency information technology projects that require alignment or oversight.  As appropriate, the Office must provide the Governor and the Director of Budget and Management with notice and advice regarding the appropriate allocation of resources for those projects.  The CIO may require state agencies to provide, and may prescribe the form and manner by which they must provide, information to fulfill the CIO's alignment and oversight role.

The Office is permitted to make contracts for, operate, and superintend technology supplies and services for state agencies, and the act confers on the Office the same authority DAS has, under specified purchasing of supplies and services statutes, for the purchase of information technology supplies and services for state agencies.  The Office also may establish cooperative agreements with federal and local government agencies and state agencies that are not under the authority of the Governor for the provision of technology services and the development of technology projects.

Changes to the Fleet Management Law

(R.C. 125.831 and 125.832)

Overview of continuing law

Continuing law requires the Director of Administrative Services to establish and operate a fleet management program for purposes including, but not limited to, cost-effective acquisition, maintenance, management, analysis, and disposal of all motor vehicles owned or leased by the state.  It also grants the Department of Administrative Services (DAS) exclusive authority over the acquisition and management of all motor vehicles used by state agencies. 

Changes in definitions

Formerly, a "motor vehicle" for purposes of the Fleet Management Law generally was defined as any automobile, car minivan, passenger van, sport utility vehicle, or pickup truck with a gross vehicle weight under 12,000 pounds.  The act continues to so define a "motor vehicle" but also includes a cargo van within the definition for purposes of the Fleet Management Law.

Continuing law excludes from that definition of "motor vehicle" any vehicle mentioned above that is used by a law enforcement officer and law enforcement agency.  Former law relatedly defined "law enforcement officer" as an officer, agent, or employee of a state agency upon whom, by statute, a duty to conserve the peace or to enforce all or certain laws is imposed and the authority to arrest violators is conferred, within the limits of that statutory duty and authority.  The act modifies the definition of "law enforcement officer" by specifying that it does not include an officer, agent, or employee as described above if the officer's, agent's, or employee's duty and authority is location specific.  Thus, a vehicle used by such an officer, agent, or employee is no longer excluded from the definition of a "motor vehicle" covered by the Fleet Management Law because it is not a vehicle used by a "law enforcement officer" and law enforcement agency.

The Fleet Management Law formerly defined "state agency" to mean every organized body, office, or agency established by the laws of Ohio for the exercise of any function of state government, other than (1) a state-supported institution of higher education, (2) the offices of the Governor, Lieutenant Governor, Auditor of State, Treasurer of State, Secretary of State, or Attorney General, (3) the General Assembly or any legislative agency, or (4) the courts or any judicial agency.  The act modifies this definition to mean every organized body, office, board, authority, commission, or agency established by the laws of Ohio for the exercise of any governmental or quasi-governmental function of state government regardless of the funding source for that entity, other than continuing law's four categories of exempt entities mentioned above and, as added by the act, any state retirement system or retirement program established by or referenced in the Revised Code.  Thus, this definitional change at the same time adds to, and removes from, the state agencies subject to the Fleet Management Law.  The term "state-supported institution of higher education" also becomes "state institution of higher education" under the act (see more detail below).

Acquisitions under DAS' master leasing program

Under continuing law, DAS' exclusive authority over the acquisition and management of all motor vehicles used by state agencies includes approving the purchase or lease of each motor vehicle for use by a state agency and determining whether a motor vehicle will be leased or purchased for that use.  The act generally requires that, on and after July 1, 2005, each state agency acquire all passenger motor vehicles under DAS' master leasing program.  If DAS determines, however, that acquisition under this program is not the most economical method and if DAS and the state agency can provide economic justification for doing so, DAS may approve the purchase, rather than the lease, of a passenger motor vehicle for the acquiring state agency.

Limit on reimbursement for state employees who use their personal vehicles

The act requires the Director to adopt rules that prohibit the reimbursement of state employees who use their own motor vehicles for any mileage they incur above an amount that DAS must determine annually, unless reimbursement for the excess mileage is approved by DAS in accordance with standards for that approval the Director must establish in those rules.

Requirements for state institutions of higher education

Under the act, not later than each September 15, each state institution of higher education must report to DAS on all of the following topics relating to motor vehicles that it acquires and manages:  (1) the methods it uses to track the motor vehicles, (2) whether or not it uses a fuel card program to purchase fuel for, or to pay for the maintenance of, the motor vehicles, and (3) whether or not it makes bulk purchases of fuel for the motor vehicles.  Assuming that it does not use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that DAS provides, the report also must include (a) an analysis of the amount the institution would save, if any, if it were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that DAS provides instead of the fleet management system the institution regularly uses and (b) a rationale for either continuing with the fleet management system that the institution regularly uses or changing to the use of those tools and services that DAS provides.

Within 90 days after receipt of all annual reports from state institutions of higher education, DAS must prepare and certify a list of those institutions that it determines would save amounts if they were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that DAS provides.  The institutions so certified then must use those tools and services until DAS next certifies state institutions of higher education as required by the act.

The act defines "state institution of higher education" for purposes of the Fleet Management Law to mean each of the four-year state universities, the Northeastern Ohio Universities College of Medicine, the Medical University of Ohio at Toledo, and each community college, state community college, university branch, or technical college.

Disposition of proceeds derived from sale of motor vehicles

Former law required that the proceeds derived from the disposition of any motor vehicles under the Fleet Management Law be paid (1) to the fund that originally provided money for the purchase or lease of the motor vehicles or (2) if the motor vehicles were originally purchased with money derived from the General Revenue Fund (GRF), to the credit of the Fleet Management Fund created under continuing law.  The act maintains requirement (1) above but instead requires that, if motor vehicles were originally purchased with money derived from the GRF, the proceeds be deposited, in the discretion of the Director, to the credit of either the Fleet Management Fund or the Investment Recovery Fund created by continuing law.  The Investment Recovery Fund receives proceeds from the transfer, sale, or lease of excess and surplus supplies no longer needed by state agencies (R.C. 125.14(A)--not in the act).

Additional motor vehicles included in the fleet reporting system

Continuing law requires the Director to establish and maintain a fleet reporting system and correspondingly to require state agencies (see definition above) to submit to DAS information relative to state motor vehicles, to be used in operating the fleet management program.  The act requires state agencies to submit information not only with respect to state "motor vehicles" covered by the Fleet Management Law (see definition above) but also relative to state motor vehicles excluded from the definition of those covered "motor vehicles," namely (1) motor vehicles used by law enforcement officers and law enforcement agencies and (2) motor vehicles that are equipped with specialized equipment that is not normally found in a vehicle and that is used to carry out a state agency's specific and specialized duties and responsibilities.

Purchases of supplies and services of persons with disabilities

State Use Committee--background

(R.C. 4115.31 to 4115.35)

Temporarily continuing law (see below "transfer" and "termination" discussion) provides for the creation of a state committee for the purchase of products and services provided by persons with severe disabilities (commonly referred to as the "State Use Committee").  The State Use Committee must adopt rules under the Administrative Procedure Act that require the Committee to take various actions that have the goal of promoting the purchase by specified governmental entities of products and services of persons with severe disabilities.[4]  Among those actions are determining products and services that are suitable for procurement by specified governmental entities, putting those products and services on a procurement list the Committee must establish, maintain, and publish, and verifying the fair market price for the products and services. 

Temporarily continuing law generally requires any state agency, instrumentality of the state, or political subdivision that intends to purchase any product or service to examine the procurement list and, if the product or service it intends to purchase is on the list and available, to procure it from an agency for persons with severe disabilities.  Purchases made in this manner are not subject to competitive bidding requirements.

Former law provided that a subordinate named by the Director of Mental Retardation and Developmental Disabilities (MRDD) was to be the Committee's executive director and that the Director of MRDD had to furnish other staff and clerical assistance, office space, and supplies required by the Committee.

Transfer of State Use Committee functions to DAS

(R.C. 4115.32 and Sections 203.12, 203.12.01, and 209.09.06)

In general.  The act provides that, effective July 1, 2005, or the earliest date after that date permitted by law, the State Use Committee becomes part of the Department of Administrative Services (DAS).  The Committee's functions, assets, and liabilities, including its records, are to be transferred to DAS, and then (1) DAS is to become the successor to, assume the obligations of, and otherwise constitute the continuation of the Committee and (2) the duties of the Committee's executive director are transferred to DAS.  The DAS Director must designate a subordinate to act as the Committee's executive director.

On-going business, rights, and rules.  The act provides that any business commenced but not completed by the Committee on June 30, 2005, must be completed by DAS in the same manner and with the same effect as if completed by the Committee.  No validation, cure, right, privilege, remedy, obligation, or liability is lost or impaired by reason of the transfer.

All of the Committee's rules, orders, and determinations will continue in effect as rules, orders, and determinations of DAS, until modified or rescinded by DAS.  If necessary to ensure the integrity of the Ohio Administrative Code, the Director of the Legislative Service Commission must renumber the Committee's rules to reflect the transfer.

Employees.  Department of Mental Retardation and Developmental Disabilities employees designated as staff for the Committee will be transferred to DAS.  The transferred employees will retain their positions and all benefits, subject to the statutory law governing layoffs and provisions of union contracts between the state and all bargaining units affected.

Pending proceedings and actions.  The transfer does not affect judicial or administrative actions or proceedings pending on July 1, 2005, to which the Committee is a party.  Those actions or proceedings instead must be prosecuted or defended in the DAS Director's name.  On application to the court or other tribunal, the DAS Director must be substituted as a party for the Director of MRDD.

Office of Procurement from Community Rehabilitation Programs

(R.C. 125.11, 125.60 to 125.6012, 127.16, 307.86, 731.14, 731.141, 4115.32, 4115.34, and 4115.36)

Overview.  After the transfer to DAS of the functions of the State Use Committee--in particular, its program for the purchase of products and services of persons with severe disabilities, the act provides for the termination of the Committee and that program and their replacement with the Office of Procurement from Community Rehabilitation Programs and a program to promote the procurement of supplies and services of persons with work-limited disabilities.

Creation of the Office; termination of the State Use Committee.  The act provides that, not later than July 1, 2007, the DAS Director must establish the Office of Procurement from Community Rehabilitation Programs (OPCRP) within DAS.  The Director also must designate a DAS employee as administrator of the OPCRP. 

The act correspondingly provides that not later than July 1, 2007, the Director must abolish the State Use Committee and its program for the purchase of products and services of persons with severe disabilities.  Abolition of the Committee will make all the laws governing the Committee no longer effective.

Key definitions.  The OPCRP purchase program provides for the purchase by government ordering offices of supplies or services provided by persons with a work-limiting disability who are employed by a community rehabilitation program.  The act defines a "government ordering office" as any of the following:  (1) any state agency, including the General Assembly, the Ohio Supreme Court, and the office of a state elected official, or any state authority, board, bureau, commission, institution, or instrumentality that is funded in total or in part by state money, or (2) a county, township, or village.  "Person with a work-limiting disability" is defined by the act as an individual who has a disability as described in the federal Americans with Disabilities Act and who (1) because of that disability is substantially limited in the type or quantity of work the individual can perform or is prevented from working regularly, and (2) meets the criteria established by OPCRP.[5]  Finally, the act defines a "community rehabilitation program" as an agency that (1) is organized under federal or Ohio law such that no part of its net income inures to the benefit of any shareholder or other individual, (2) is certified as a sheltered workshop, if applicable, by the Wage and Hour Division of the U.S. Department of Labor, (3) is registered and in good standing with the Ohio Secretary of State as a domestic nonprofit corporation, (4) complies with applicable occupational health and safety standards required by federal or Ohio law, (5) operates in the interest of persons with work-limiting disabilities, provides vocational or other employment-related training to persons with work-limiting disabilities, and employs persons with work-limiting disabilities in the manufacture of products or the provision of services, and (6) is a nonprofit corporation for federal tax purposes.

Purchases from the procurement list.  The act requires the OPCRP to establish, maintain, and periodically update a procurement list of approved supplies and services available from qualified nonprofit agencies or their agents (see below).  Government ordering offices, before purchasing any supply or service, must determine whether the supply or service is on the procurement list.  And, if the supply or service is on the list at a fair market price established by the OPCRP (see below), the government ordering office must purchase it from the qualified nonprofit agency or an approved agent offering it for sale at that price.  If the supply or service is on the procurement list but a fair market price has not been established, the government ordering office must attempt to negotiate an agreement with one or more of the listed qualified nonprofit agencies or approved agents.

Fair market price.  The act provides that, prior to purchases by government ordering offices under its provisions, the OPCRP must attempt to establish for each item (i.e., supply or service) on the procurement list a fair market price that is representative of the range of prices that a government ordering office would expect to pay to purchase the item in the marketplace.  When establishing a fair market price for an item, the OPCRP must consider the cost of doing business with respect to that item, including sales, marketing, and research and development costs and agent fees.  If the OPCRP cannot establish a fair market price as described above, it must put the item on the list and let a government ordering office and qualified nonprofit agency negotiate the price.  If the negotiations produce an agreement, the OPCRP may accept the agreed upon price as the fair market price.  If an agreement is not successfully negotiated in such a case, the OPCRP may establish a fair market price or release the government ordering office from the act's requirements (see further "release" discussion below).

Qualified nonprofit agencies and approved agents.  The act permits a community rehabilitation program to apply to the OPCRP to be certified as qualified to provide its supplies and services for procurement by government ordering offices.  The OPCRP must prescribe the form of the application, and, if it is satisfied that an applicant program is qualified, it must certify the program as a qualified nonprofit agency for the purposes of the purchasing program outlined in the act.  The act also gives DAS the authority to structure or regulate competition among qualified nonprofit agencies for the overall benefit of the OPCRP purchase program.

Under the act, the OPCRP may certify any entity to serve as an approved agent of a qualified nonprofit agency for purposes of the OPCRP purchase program.  The OPCRP must prescribe procedures under which an entity can apply and be considered for that certification.  An approved agent can do any of the following:  (1) contract with the OPCRP to provide centralized business facilitation or other assistance to qualified nonprofit agencies (however, the OPCRP must consult with qualified nonprofit agencies before agreeing to such a contract), (2) act as a distributor of supplies and services registered on the procurement list, and (3) provide marketing, administrative, and other services related to sales.

DAS fee for purchases.  The act provides that all government ordering offices purchasing supplies and services from qualified nonprofit agencies or their approved agents must reimburse DAS a reasonable sum to cover its costs in administering the OPCRP purchase program.  DAS is permitted to bill administrative costs to government ordering offices directly, or allow qualified nonprofit agencies or their approved agents to collect and remit the fees.  Any fee collected and remitted by qualified nonprofit agencies or their approved agents will be considered allowable expenses in addition to the fair market price.  All fees collected under these provisions must be deposited in the state treasury to the credit of DAS' General Services Fund.

Release from compliance with OPCRP purchase program.  The act provides that when a government ordering office and a qualified nonprofit agency or approved agent are negotiating a price and they cannot come to an agreement, instead of setting a fair market price, the OPCRP may release the government ordering office from compliance with the OPCRP purchase program.

It also provides that the OPCRP, on its own or pursuant to a request from a government ordering office, may release a government ordering office from compliance with the OPCRP purchase program.  If the OPCRP determines that compliance is not possible or not advantageous, or if conditions prescribed in rules adopted by the OPCRP for granting a release are met, it may grant such a release.  That release must be written, specify the supplies or services to which it applies, state how long it will be effective, and state the reason for which it is granted.

Nonapplicability of OPCRP purchase program.  The act provides that the OPCRP purchase program does not apply to the purchase of a product or service available from a state agency, state instrumentality, or political subdivision under any law in effect on July 1, 2005.  It also specifies that the program does not prohibit the purchase of a supply or service from a qualified nonprofit agency by a political subdivision that is not a government ordering office.

Competitive selection nonapplicability.  The act makes it clear that purchases under the OPCRP purchase program by a government ordering office are not subject to any competitive selection requirements.  It also specifies that purchases made by any of the following political subdivisions that are not government ordering offices from a qualified nonprofit agency or its approved agent are exempt from any competitive selection procedures otherwise required by law:  municipal corporations, school districts, conservancy districts, township park districts, metropolitan park districts, regional transit authorities, regional airport authorities, regional water and sewer districts, port authorities, and any other political subdivision approved by DAS to participate in DAS "pooled" supply or service purchase contracts.  Finally, a political subdivision of the type listed in the previous sentence is prohibited from purchasing supplies or services from another party or political subdivision instead of through the OPCRP purchase program if the supplies or services are on the procurement list, even if it can get the supplies or services at a lower price.

Other OPCRP duties and powers.  The act provides that the OPCRP, in addition to its previously described functions, must or may do all of the following:

·        Must monitor the procurement practices of government ordering offices to ensure compliance with the OPCRP purchase program;

·        Must develop and recommend to the DAS Director, in cooperation with qualified nonprofit agencies, government ordering offices, the Department of MRDD, the Department of Mental Health, the Department of Job and Family Services, and the Rehabilitation Services Commission, rules the Director must adopt in accordance with the Administrative Procedure Act for the effective and efficient administration of the OPCRP purchase program;

·        Must prepare a report of its activities by the last day of December of each year and post it on the OPCRP web site;

·        May enter into contractual agreements and establish pilot programs to further the objectives of the OPCRP purchase program.

Provision of information to OPCRP.  The act requires a government ordering office and qualified nonprofit agency to provide the necessary information and documentation requested by the OPCRP to enable it to effectively administer the purchase program.

Cooperation with other governmental agencies.  The act provides that the Department of MRDD, Department of Mental Health, Department of Job and Family Services, Rehabilitation Services Commission, and any other state or governmental agency or community rehabilitation program responsible for the provision of rehabilitation and vocational educational services to persons with work-limiting disabilities may cooperate, through written agreement, in providing resources to DAS for the operation of the OPCRP.  The resources may include leadership and assistance in dealing with the societal aspects of meeting the needs of persons with work-limiting disabilities.

The act also permits the OPCRP and all governmental entities that administer socioeconomic programs to enter into contractual agreements, cooperative working relationships, or other arrangements that are necessary for the effective coordination and realization of the objectives of these entities.

Temporary work levels and personnel assignments for employees exempt from the Collective Bargaining Law

(Section 569.03)

Under continuing codified law, whenever an employee is assigned to work in a higher-level position for a continuous period of more than two weeks but not more than two years because of a vacancy, the employee may be paid at a rate approximately 4% higher than the employee's current base pay rate.  The Director of Administrative Services must approve the temporary position change.  (R.C. 124.181(J)--not in the act.)

Under the act, notwithstanding that codified law, in cases where a vacancy does not exist, an appointing authority, with the written consent of an exempt employee (see below), may assign duties of a higher classification for not more than two years to the exempt employee.  The exempt employee must receive compensation commensurate with the duties of the higher classification.  The act utilizes continuing law's definitions of (1) "appointing authority"--an officer, commission, board, or body having the power of appointment to, or removal from, positions in any office, department, commission, board, or institution, and (2) "exempt employee"--a permanent full-time or permanent part-time employee paid directly by warrant of the Auditor of State whose position is included in the job classification plan of the Department of Administrative Services but who is not considered a public employee for the purposes of the Collective Bargaining Law.

The act also permits employees who are exempt from the Collective Bargaining Law and who are assigned to duties within their agency to maintain operations during the Ohio Administrative Knowledge System implementation, to agree to a temporary assignment for more than two years if necessary--notwithstanding the codified law referred to above.

Department of Administrative Services' recommendations for a state government reorganization plan

(Section 315.04)

The act would have required the Department of Administrative Services to do both of the following: (1) begin, within 30 days after the provisions' effective date, developing recommendations for a state government reorganization plan focused on increased efficiencies in the operation of state government and a reduced number of state agencies and (2) present its recommendations to the House Speaker, Senate President, and House and Senate Minority Leaders by not later than January 1, 2007.  (VETOED.)

 

DEPARTMENT OF AGING

·        Subject to certain exceptions, requires that the Ohio Department of Aging (ODA) assess a penalty equal to a long-term care facility's total annual bed fee for failure to pay a bed fee on or before a deadline established by ODA's rules.

·        Permits ODA to assess a penalty, not to exceed $500 for each violation, against a long-term care provider, other entity, or employee of a provider or entity that denies a representative of the state long-term care ombudsperson access to a long-term care facility or community-based long-term care site.

·        Provides that a provider of community-based long-term care services under a program administered by ODA cannot receive payment unless the provider obtains certification from ODA.

·        Requires that ODA develop a long-term care consultation program under which residents and potential residents of nursing facilities are provided with information about options available to meet long-term care needs and about factors to consider in making long-term care decisions.

·        Eliminates provisions authorizing the Ohio Department of Job and Family Services (ODJFS) to administer a similar program for potential residents of nursing facilities who are not Medicaid applicants or recipients.

·        Modifies the procedures ODJFS must follow when conducting assessments of Medicaid applicants or recipients who apply for admission to or reside in a nursing facility to determine whether they need the level of care provided by a nursing facility.

·        Permits ODJFS' level of care assessments to be performed concurrently with consultations performed under the long-term care consultation program to be developed by ODA.

·        Authorizes ODA to conduct an annual survey of nursing homes and residential care facilities and establishes a fine for failure to complete the survey.

·        Requires that ODA publish the Ohio Long-Term Care Consumer Guide, which may be developed as a continuation or modification of the guide ODA currently publishes pursuant to its general rule-making authority.

·        Requires that the Guide include information on both nursing homes and residential care facilities, including information obtained from customer satisfaction surveys conducted or provided for by ODA.

·        Permits ODA to charge fees for the customer satisfaction surveys in an amount not exceeding $400 annually for nursing homes and $300 annually for residential care facilities.

·        Requires that ODA carry out the day-to-day administration of the Medicaid program component known as the Program for All-Inclusive Care for the Elderly (PACE).

·        Permits ODA to adopt rules for the PACE program if the rules:  (1) are authorized by rules adopted by ODJFS and (2) address only those issues that are not addressed in ODJFS rules for the PACE program. 

·        Repeals the uncodified law under which the transfer of PACE administrative duties from ODJFS to ODA originally occurred.

·        Provides for an individual admitted to a nursing facility while on a waiting list for the PASSPORT Program to be placed in the PASSPORT Program if it is determined that the PASSPORT Program is appropriate for the individual and the individual would rather be placed in the PASSPORT Program than continue to reside in a nursing facility.

·        Creates the PASSPORT Evaluation Panel to select an independent contractor to conduct an evaluation of the PASSPORT Program (VETOED).

·        Requires the PASSPORT Evaluation Panel to approve a final report by not later than June 30, 2007 (VETOED).

·        Permits ODA to apply for the 2005 Aging and Disability Resource Center Grant Initiative of the Administration on Aging and the Centers for Medicare and Medicaid and to create an Aging and Disability Resource Center if the application is accepted.

·        Exempts from the Medical Transportation Law an ambulette service provider who operates under ODA rules during the period of time on any day that the provider is solely serving ODA or ODA's designee and creates new requirements for this type of provider.

 

 

Penalty for late payment of annual long-term care facility bed fee

(R.C. 173.26)

Continuing law, unaltered by the act, requires a nursing home, residential care facility, adult care facility, adult foster home, or other specified long-term care facility to annually pay to the Ohio Department of Aging (ODA) a fee of $6 for each bed the facility maintained for use by a resident during any part of the previous year.  The funds are used to pay the costs of operating regional long-term care ombudsperson programs.  The act requires ODA to assess a penalty on long-term care facilities that fail to pay the bed fee not later than 90 days after the deadline established by ODA rules.  The penalty is an amount equal to a facility's total annual bed fee. 

Penalty for denial of ombudsperson access to long-term care facilities or community-based long-term care sites

(R.C. 173.99(C); R.C. 173.19 (not in the act))

The Office of the State Long-Term Care Ombudsperson Program, through the State Long-Term Care Ombudsperson and the Regional Long-Term Care Ombudsperson Programs, must receive, investigate, and attempt to resolve complaints made by long-term care facility residents, recipients, sponsors, providers of long-term care, or any person acting on behalf of a resident or recipient relating to health, safety, civil rights, or residents' rights issues.  Each complaint is assigned to a representative of the Office who is responsible for investigating and working with the parties to resolve the complaint.  To carry out these responsibilities, a representative has the right to access long-term care facilities and community-based long-term care sites unescorted as reasonably necessary to investigate a complaint.  The act permits ODA to assess a penalty, not to exceed $500 for each violation, against a long-term care provider, other entity, or person employed by the provider or entity that denies a representative of the Program access to a long-term care facility or community-based long-term care site.

Certification for provision of community-based long-term care services

(R.C. 173.39 to 173.393)

The act requires ODA to certify providers of community-based long-term care services[6] under programs ODA administers and, subject to certain exceptions, prohibits ODA from paying a person or government entity for providing community-based long-term care services under such a program unless the provider is certified to provide the services and provides the services.  ODA may, however, pay a non-certified person or government entity for providing community-based long-term care services if the provider meets the terms of a contract that includes conditions of participation and service standards and the contract is not for Medicaid-funded services, other than services provided under the Program of All-Inclusive Care for the Elderly (PACE).[7]

ODA is required to adopt rules in accordance with Ohio's Administrative Procedure Act (R.C. Chapter 119.) establishing certification requirements.  The rules must establish procedures for ensuring that PASSPORT agencies comply with criminal background check requirements under the law governing the PASSPORT Program and evaluating the services provided by persons and government entities seeking or holding a certificate to ensure they are provided in a quality manner advantageous to the individual receiving the services.

Evaluation considerations

The act requires that ODA consider the following during the evaluation of a provider:

(1)  Provider's experience and financial responsibility;

(2)  Provider's ability to comply with standards of the community-based long-term care services program;

(3)  Provider's ability to meet the needs of individuals served;

(4)  Any other factor ODA considers relevant.

The act provides that, in general, records of an evaluation are public records and must be made available on the request of any person.  The act, however, prohibits the release of a part of a record of an evaluation as a public record if the release of the part would violate federal or state law.

Disciplinary action and enforcement

The act authorizes ODA to take disciplinary action against a provider.  ODA must adopt rules setting standards for determining which type of disciplinary action to take.  The act requires the rules to specify the reasons for taking disciplinary action, including disciplinary actions based on good cause, and for misfeasance, malfeasance, nonfeasance, confirmed abuse or neglect, financial irresponsibility, or other conduct of the provider ODA determines is injurious to the health or safety of individuals being served.

ODA is authorized to take the following types of disciplinary actions:

(1)  Issue a written warning;

(2)  Require submission of a plan of correction;

(3)  Suspend referrals;

(4)  Remove clients;

(5)  Impose a fiscal sanction, such as a civil monetary penalty or an order that unearned funds be repaid;

(6)  Revoke the provider's certificate;

(7)  Impose another sanction.

The act requires ODA to hold hearings when there is a dispute between ODA or its designee and a provider concerning actions ODA or its designee takes or does not take regarding certification or disciplinary proceedings.  This does not apply, however, if the disciplinary action is issuing a written warning or requiring the submission of a plan of correction.

Rules governing contracts and payments

ODA is required by the act to adopt rules concerning contracts between ODA, or ODA's designee, and persons and government entities regarding community-based long-term care services provided under a program ODA administers.  ODA must also adopt rules concerning ODA's payments for such services.

Long-term care consultation program

Background

The Revised Code provides for several different types of assessments of persons applying or intending to apply for admission to a nursing facility.[8]  The Ohio Department of Job and Family Services (ODJFS), or an agency designated by ODJFS, is authorized to assess any person who is not an applicant for or recipient of Medicaid who applies or intends to apply to a nursing facility to determine whether the person is in need of nursing facility services and whether an alternative source of long-term care is more appropriate for the person in meeting the person's physical, mental, and psychosocial needs than admission to the facility to which the person has applied (R.C. 5101.75 and 5101.751).  In addition, ODJFS may require an applicant for or recipient of Medicaid who applies or intends to apply for admission to a nursing facility to undergo an assessment to determine whether the person needs the level of care provided by a nursing facility (R.C. 5101.754, 5111.204, and 5111.205).

Overview

In general, the act transfers from ODJFS to ODA, the authority to provide assessments of non-Medicaid recipients, modifies the nature of those assessments by including a "long-term care consultation,"[9] and expands the population that must be given the assessments (R.C. 173.42 and 173.43 and repeal of R.C. 5101.751 and 5101.753).  It also revises the law governing assessments of Medicaid recipients by ODJFS (R.C. 5111.204 and repeal of R.C. 5101.754 and 5111.205).

Duty to perform assessments

(R.C. 173.42(B) and (C) and 5101.75(B))

Under prior law, ODJFS was permitted to assess a person applying or intending to apply for admission to a nursing facility who was not an applicant for or recipient of Medicaid to determine whether the person was in need of nursing facility services and whether an alternative source of long-term care was more appropriate for the person in meeting the person's physical, mental, and psychosocial needs than admission to the facility to which the person has applied.  Each assessment was to be performed by ODJFS or an agency designated by ODJFS.

The act requires ODA to develop a long-term care consultation program whereby individuals or their representatives are provided with information through professional consultations about options available to meet long-term care needs and about factors to consider in making long-term care decisions.  ODA may enter into a contract with an area agency on aging or other entity under which the long-term care consultation program for a particular area is administered by the area agency on aging or other entity pursuant to the contract; otherwise, the program is to be administered by ODA.

Information to be provided; assessment of individual's functional capabilities

(R.C. 173.42(E), (F), and (J))

Under the act, the information provided through a long-term care consultation must be appropriate to the individual's needs and situation.  The information must address the following:

(1)  The availability of any long-term care options open to the individual;

(2)  Sources and methods of both public and private payment for long-term care services;

(3)  Factors to consider when choosing among the available programs, services, and benefits;

(4)  Opportunities and methods for maximizing independence and self-reliance, including support services provided by the individual's family, friends, and community.

An individual's long-term care consultation may include an assessment of the individual's functional capabilities.  It also may incorporate portions of determinations required to be made by the Department of Mental Health or the Department of Mental Retardation and Developmental Disabilities[10] and may be provided concurrently with the assessment required to be made by ODJFS (see "Level-of-care assessments to receive Medicaid nursing facility services," below).

At the conclusion of a consultation, ODA or the program administrator under contract with ODA must provide the individual or the individual's representative with a written summary of options and resources available to meet the individual's needs.  And even though the summary may specify that a source of long-term care other than care in a nursing facility is appropriate and available, the individual is not required to seek an alternative source and may be admitted to or continue to reside in a nursing facility.

Individuals to be provided consultations; exemptions

(R.C. 173.42(G) and (I))

Under the act a long-term care consultation may be provided for nursing facility residents who have not applied and have not indicated an intention to apply for Medicaid.  The purpose of these consultations is to determine continued need for nursing facility services, to provide information on alternative services, and to make referrals to alternative services.

But, the act requires long-term care consultations to be provided to the following:

(1)  Individuals who apply or indicate an intention to apply for admission to a nursing facility, regardless of the source of payment to be used for such care;

(2)  Residents of nursing facilities who apply or indicate an intention to apply for Medicaid;

(3)  Residents who are likely to "spend down" their resources within six months after admission to a level that qualifies them financially for Medicaid;

(4)  Any individual who requests a long-term care consultation.

The act exempts certain individuals from the long-term care consultation requirement.  The exemptions largely parallel exemptions in prior law, but differ in the following ways:

(1)  The act exempts an individual from the requirement if the individual or the individual's representative chooses to forego participation in the consultation pursuant to criteria specified in rules adopted under the act.

(2)  The act eliminates the exemption regarding a person placed in the nursing facility in order to provide temporary relief to the person's primary caregiver.[11]

(3)  The act additionally exempts an individual who is seeking admission to a facility that is not a nursing facility with a provider agreement under the Medicaid Law.

(4)  The act exempts any individual who is to be transferred from another nursing facility.

(5)  The act exempts any individual who is to be readmitted to a nursing facility following a period of hospitalization.

(6)  The act eliminates the exemption based on the failure of a timely assessment.

Time frame for completion of consultations

(R.C. 173.42(H))

When a long-term care consultation is required, the act requires it to be provided as follows:

(1)  If the individual for whom the consultation is being provided has applied for Medicaid and the consultation is being provided concurrently with the assessment required to be made by ODJFS (see "Level-of-care assessments to receive Medicaid nursing facility services," below), the consultation must be completed in accordance with the applicable time frames specified in the Medicaid law for providing a level of care determination based on the assessment.

(2)  In all other cases, the consultation must be provided not later than five calendar days after ODA, or the program administrator under contract with ODA, receives notice that (a) the individual has applied or has indicated an intention to apply for admission to a nursing facility or (b) if the individual is a resident of a nursing facility, the individual has applied or has indicated an intention to apply for Medicaid.

An individual or the individual's representative may request that a long-term care consultation be provided on a date that is later than that required under (1) or (2), above.  Also, if a consultation cannot be completed within the required time frames, ODA or the program administrator may (a) exempt the individual from the consultation pursuant to rules adopted under the act, (b) in the case of an applicant for admission to a nursing facility, provide the consultation after the individual is admitted to the facility, or (c) in the case of a resident of a nursing facility, provide the consultation as soon as practicable.

Who may perform assessments

(R.C. 173.42(D), 173.43, 5101.75(B), and 5101.752 and 5101.751 (repealed))

The act requires the long-term care consultations to be provided by individuals certified by ODA.  The Director of ODA is required to adopt rules in accordance with the Administrative Procedure Act (R.C. Chapter 119.) governing the certification process and requirements.  The rules must specify the education, experience, or training in long-term care a person is to have to qualify for certification.  The act repeals the authority of ODJFS to designate another agency to provide the assessments, and ODA is given no analogous designation authority.

Authority to fine nursing facilities

(R.C. 173.42(K) and (M) and 5111.62)

The act, in a manner similar to prior law, prohibits any nursing facility for which an operator has a provider agreement under the Medicaid law from admitting or retaining any individual as a resident, unless the nursing facility has received evidence that a long-term care consultation has been completed for the individual or that the individual is exempt from the long-term care consultation requirement.  The act transfers from the Director of ODJFS to the Director of ODA the authority to fine a nursing facility an amount determined by rule if the facility violates this prohibition.  All fines collected are to be deposited into the state treasury to the credit of the Residents Protection Fund.

Rulemaking

(R.C. 173.42(L))

Under the act, the Director of ODA is authorized to adopt any rules the Director considers necessary for the implementation and administration of the act's long-term care consultation provisions.  The rules must be adopted in accordance with the Administrative Procedure Act and may specify all of the following:

(1)  Procedures for performing long-term care consultations;

(2)  Information to be provided through long-term care consultations regarding long-term care services that are available;

(3)  Criteria for identifying nursing facility residents who would benefit from the provision of a long-term care consultation;

(4)  Criteria under which an individual or the individual's representative may choose to forego participation in a long-term care consultation;

(5)  Criteria for exempting individuals from the long-term care consultation requirement;

(6)  Circumstances under which it may be appropriate to provide an individual's consultation after the individual's admission to a nursing facility.

Plan for providing home and community-based services

(R.C. 5101.573 (repealed))

The act repeals a provision under which ODJFS or an agency designated by ODJFS could develop a plan for provision of home and community-based services to a person if the recommendation resulting from the assessment is that home and community-based services are appropriate for the person.

Level-of-care assessments to receive Medicaid nursing facility services

Individuals to be assessed

(R.C. 5111.204(B))

Continuing law authorizes ODJFS to require an applicant for or recipient of Medicaid who applies or intends to apply for admission to a nursing facility to undergo an assessment to determine whether the applicant or recipient needs the level of care provided by a nursing facility.

The act expands this provision to also apply to an applicant for or recipient of Medicaid who resides in a nursing facility.  In addition, the act specifies that the assessment may be performed concurrently with a long-term care consultation performed by ODA.

Who may perform assessments

(R.C. 5101.754 and 5111.204(B) and (G))

Prior law permitted ODJFS to designate another agency to conduct assessments.  Under the act, ODJFS may instead enter into contracts in the form of interagency agreements with one or more other state agencies to perform the assessments.  The interagency agreements must be in accordance with Medicaid law provisions governing interagency agreements to administer one or more components of the Medicaid program.  The interagency agreements must specify the responsibilities of each agency in the performance of the assessments.

Level of care determinations

(R.C. 5111.204 (C) and (D))

The act adds an additional category of assessment:  a level of care determination.  Under the act, ODJFS or the contracting agency must provide a level of care determination based on the assessment as follows:

(1) In the case of a person applying or intending to apply for admission to a nursing facility while hospitalized, not later than (a) one working day after the person or the person's representative submits the application or notifies ODJFS of the person's intention to apply and submits all information required for providing the level of care determination or (b) a later date requested by the person or the person's representative.

(2)  In the case of a person applying or intending to apply for admission to a nursing facility who is not hospitalized, not later than (a) five calendar days after the person submits an application for Medicaid or notifies ODJFS of the person's intention to apply and submits all information required for providing the level of care determination or (b) a later date requested by the person or the person's representative.

(3)  In the case of a person who resides in a nursing facility, not later than (a) five calendar days after the person or the person's representative submits an application for medical assistance and submits all information required for providing the level of care determination, or (b) a later date requested by the person or the person's representative.

(4)  In the case of an emergency, within the number of days specified by ODJFS rules.

The act also removes a provision that provided for partial assessments to be conducted (existing R.C. 5111.204(C), (D), (E), and (H)).

Appeals

(R.C. 5111.204(D))

The act retains a law that permits a person assessed or the person's representative to appeal the conclusions reached by ODJFS or the contracting agency on the basis of the assessment, but rephrases the provision to refer to requesting "a state hearing to dispute the conclusions" rather than referring to an "appeal."  The act requires that the state be represented in any requested state hearing by ODJFS or the contracting agency, whichever performed the assessment.

Rulemaking

(R.C. 5111.204(F))

The act revises law authorizing the Director of ODJFS to adopt rules to implement and administer the assessment provision as follows:

(1)  It eliminates partial assessments.

(2)  It requires that the rules set forth circumstances that constitute an "emergency" and the number of days within which a level of care determination must be provided in the case of an emergency.

(3)  It eliminates specific criteria that must be included in rules establishing criteria and procedures to be used in determining whether admission to a nursing facility or continued stay in a nursing facility is appropriate for the person being assessed.

(4)  It makes conforming changes to reflect the other changes in the act.

Plan for providing home and community-based services

(R.C. 5111.205 (repealed))

The act repeals a provision under which ODJFS or the designated agency, whichever performed the assessment, could develop a plan for provision of home and community-based services to that person if the recommendation resulting from the assessment was that home and community-based services were appropriate for the person assessed.

Nursing home and residential care facility survey

(R.C. 173.44 and 173.99(D))

The act authorizes ODA to conduct an annual survey of nursing homes and residential care facilities.[12]  The survey is to include questions about capacity, occupancy, and private pay charges related to the facilities.  ODA may work with an outside entity to conduct the survey and analyze the results.  The results and analysis of the survey are to be made available to the General Assembly, other state agencies, nursing home and residential care facility providers, and the public.

A nursing home or residential care facility that recklessly fails to complete the survey is subject to a $100 fine.

Long-Term Care Consumer Guide

Background

(former R.C. 173.45 to 173.59 and R.C. 173.02; O.A.C. Chapter 173-45)

Am. Sub. H.B. 95 of the 125th General Assembly, the biennial operating budget for fiscal years 2004 and 2005, repealed provisions that required ODA to publish the Ohio Long-Term Care Consumer Guide, a guide to Ohio nursing homes.  Prior law required the Guide to be made available on the Internet and updated periodically.  Every two years, ODA was required to publish an Executive Summary of the Guide, which had to be available in electronic and printed media.  In addition, prior law specified that, to the extent possible, annual customer satisfaction surveys had to be conducted for use in the Guide.  ODA was permitted to charge the nursing home a fee of up to $400 for each annual survey.  The Guide has continued to be published pursuant to ODA rules, but the statutory provisions were eliminated.

The act

(R.C. 173.45 to 173.49)

The act enacts new statutory provisions governing publication of an Ohio Long-Term Care Consumer Guide, conduct of customer satisfaction surveys, and the fee relating to the surveys.

Authorization to publish and content of Guide.  The act requires ODA to develop and publish a guide to long-term care facilities for use by individuals considering long-term care facility admission and their families, friends, and advisors.[13]  This Ohio Long-Term Care Consumer Guide may be published in printed form or in electronic form for distribution over the Internet.  The Guide may be developed as a continuation or modification of the rule-authorized Guide currently published by ODA.

The Guide must include information on each long-term care facility in Ohio.  For each facility, the Guide must include the following information, as applicable to the facility:

(1)  Information regarding the facility's compliance with Ohio statutes and rules and federal statutes and regulations;

(2)  Information generated by the United States Department of Health and Human Services Centers for Medicare and Medicaid Services from the quality measures developed as part of its nursing home quality initiative;

(3)  Results of customer satisfaction surveys;

(4)  Any other information ODA specifies by rule.

Customer satisfaction surveys.  For purposes of publishing the Guide, ODA must conduct or provide for the conduct of an annual customer satisfaction survey of each long-term care facility.  The act specifies that each long-term care facility must cooperate in the conduct of the survey (but does not specify a penalty for non-compliance).  The results of the surveys may include information obtained from long-term care facility residents, their families, or both.

Fees and the Long-Term Care Consumer Guide Fund.  ODA may charge fees for the conduct of annual customer satisfaction surveys.  ODA may contract with any person or government entity to collect the fees on its behalf.  The fees may not exceed the following amounts:

(1)  $400 for the customer satisfaction survey of a long-term care facility that is a nursing home;

(2)  $300 for the customer satisfaction survey pertaining to a long-term care facility that is a residential care facility.

Fees paid by a long-term care facility that is a "nursing facility" must be reimbursed through the Medicaid Program.[14]

The act creates in the state treasury the Long-Term Care Consumer Guide Fund.  Money collected from the fees charged for the conduct of customer satisfaction surveys must be deposited in the state treasury and credited to the Fund.  ODA must use money in the Fund for costs associated with publishing the Guide, including, but not limited to, costs incurred in conducting or providing for the conduct of customer satisfaction surveys.

Rules.  The act authorizes ODA to adopt rules under the Administrative Procedure Act (R.C. Chapter 119.) to implement and administer the provisions relating to the annual surveys and the publication of the Long-Term Care Consumer Guide.

Transfer of PACE administrative duties

(R.C. 173.50; Section 490.03)

The Program of All-Inclusive Care for the Elderly (PACE) is a Medicaid component based on a managed care model through which certain sites provide frail, older adults with all of their needed health care and ancillary services in acute, subacute, institutional, and community settings.  Enrollment is voluntary, and once enrolled, PACE becomes the sole source of all Medicare and Medicaid covered services and other items or medical, social, or rehabilitation services the PACE interdisciplinary team determines an enrollee needs.  If a participant requires placement in a nursing home, PACE is responsible and accountable for the care and services provided and must regularly evaluate the participant’s condition.