Regards employment status of health care workers for certain laws

sb423_02_PS

As Passed by the Senate

136th
General Assembly

Regular
Session
Am. S. B. No. 423

2025-2026

Senator Manchester

Cosponsors: Senators Huffman,
Antonio, Cirino, Craig, Hicks-Hudson, Johnson, Reineke

To
amend sections 4111.03, 4111.14, 4113.15, 4121.01, 4123.01, 4141.01,
and 5747.01 and to enact section 4113.87 of the Revised Code
to
specify that a health care worker is not the employee of a health
care worker platform or health care facility for purposes of
specified laws under certain circumstances.

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

Section
1.
That
sections 4111.03, 4111.14, 4113.15, 4121.01, 4123.01, 4141.01, and
5747.01 be amended and section 4113.87 of the Revised Code be enacted
to read as follows:

Sec.
4111.03.
(A)
Except as provided in section 4111.031 of the Revised Code, an
employer shall pay an employee for overtime at a wage rate of one and
one-half times the employee's wage rate for hours worked in excess of
forty hours in one workweek, in the manner and methods provided in
and subject to the exemptions of section 7 and section 13 of the
"Fair Labor Standards Act of 1938," 52 Stat. 1060, 29
U.S.C.A. 207, 213, as amended, and, effective beginning on
the
effective date of this amendment
July
6, 2022
,
sections 2 and 4 of the "Portal to Portal Act of 1947," 29
U.S.C. 252 and 254.

Any
employee employed in agriculture shall not be covered by the overtime
provision of this section.

A
motor carrier may elect to apply the overtime provision of this
section to an individual who is excluded from the provision under
division (D)(3)(i) of this section.

(B)
If a county employee or township employee elects to take compensatory
time off in lieu of overtime pay, for any overtime worked,
compensatory time may be granted by the employee's administrative
superior, on a time and one-half basis, at a time mutually convenient
to the employee and the administrative superior within one hundred
eighty days after the overtime is worked.

(C)
A township appointing authority or a county appointing authority with
the exception of the county department of job and family services
may, by rule or resolution as is appropriate, indicate the
authority's intention not to be bound by division (B) of this
section, and to adopt a different policy for the calculation and
payment of overtime than that established by that division. Upon
adoption, the alternative overtime policy prevails. Prior to the
adoption of an alternative overtime policy, a township appointing
authority or a county appointing authority with the exception of the
county department of job and family services shall give a written
notice of the alternative policy to each employee at least ten days
prior to its effective date.

(D)
As used in this section and section 4111.031 of the Revised Code:

(1)
"Employ" means to suffer or to permit to work.

(2)
"Employer" means the state of Ohio, its instrumentalities,
and its political subdivisions and their instrumentalities, any
individual, partnership, association, corporation, business trust, or
any person or group of persons, acting in the interest of an employer
in relation to an employee, but does not include either of the
following:

(a)
An employer whose annual gross volume of sales made for business done
is less than one hundred fifty thousand dollars, exclusive of excise
taxes at the retail level which are separately stated;

(b)
A franchisor with respect to the franchisor's relationship with a
franchisee or an employee of a franchisee, unless the franchisor
agrees to assume that role in writing or a court of competent
jurisdiction determines that the franchisor exercises a type or
degree of control over the franchisee or the franchisee's employees
that is not customarily exercised by a franchisor for the purpose of
protecting the franchisor's trademark, brand, or both. For purposes
of this division, "franchisor" and "franchisee"
have the same meanings as in 16 C.F.R. 436.1.

(3)
"Employee" means any individual employed by an employer but
does not include:

(a)
Any individual employed by the United States;

(b)
Any individual employed as a baby-sitter in the employer's home, or a
live-in companion to a sick, convalescing, or elderly person whose
principal duties do not include housekeeping;

(c)
Any individual engaged in the delivery of newspapers to the consumer;

(d)
Any individual employed as an outside salesperson compensated by
commissions or employed in a bona fide executive, administrative, or
professional capacity as such terms are defined by the "Fair
Labor Standards Act of 1938," 52 Stat. 1060, 29 U.S.C.A. 201, as
amended;

(e)
Any individual who works or provides personal services of a
charitable nature in a hospital or health institution for which
compensation is not sought or contemplated;

(f)
A member of a police or fire protection agency or student employed on
a part-time or seasonal basis by a political subdivision of this
state;

(g)
Any individual in the employ of a camp or recreational area for
children under eighteen years of age and owned and operated by a
nonprofit organization or group of organizations described in Section
501(c)(3) of the "Internal Revenue Code of 1954," and
exempt from income tax under Section 501(a) of that code;

(h)
Any individual employed directly by the house of representatives or
directly by the senate;

(i)
An individual who operates a vehicle or vessel in the performance of
services for or on behalf of a motor carrier transporting property
and to whom all of the following factors apply:

(i)
The individual owns the vehicle or vessel that is used in performing
the services for or on behalf of the carrier, or the individual
leases the vehicle or vessel under a bona fide lease agreement that
is not a temporary replacement lease agreement. For purposes of this
division, a bona fide lease agreement does not include an agreement
between the individual and the motor carrier transporting property
for which, or on whose behalf, the individual provides services.

(ii)
The individual is responsible for supplying the necessary personal
services to operate the vehicle or vessel used to provide the
service.

(iii)
The compensation paid to the individual is based on factors related
to work performed, including on a mileage-based rate or a percentage
of any schedule of rates, and not solely on the basis of the hours or
time expended.

(iv)
The individual substantially controls the means and manner of
performing the services, in conformance with regulatory requirements
and specifications of the shipper.

(v)
The individual enters into a written contract with the carrier for
whom the individual is performing the services that describes the
relationship between the individual and the carrier to be that of an
independent contractor and not that of an employee.

(vi)
The individual is responsible for substantially all of the principal
operating costs of the vehicle or vessel and equipment used to
provide the services, including maintenance, fuel, repairs, supplies,
vehicle or vessel insurance, and personal expenses, except that the
individual may be paid by the carrier the carrier's fuel surcharge
and incidental costs, including tolls, permits, and lumper fees.

(vii)
The individual is responsible for any economic loss or economic gain
from the arrangement with the carrier.

(j)
A health care worker, with respect to a health care worker platform
or health care facility for work booked through a health care worker
platform, in accordance with section 4113.87 of the Revised Code.

(4)
"Motor carrier" has the same meaning as in section 4923.01
of the Revised Code.

Sec.
4111.14.
(A)
Pursuant to the general assembly's authority to establish a minimum
wage under Section 34 of Article II, Ohio Constitution, this section
is in implementation of Section 34a of Article II, Ohio Constitution.
In implementing Section 34a of Article II, Ohio Constitution, the
general assembly hereby finds that the purpose of Section 34a of
Article II, Ohio Constitution, is to:

(1)
Ensure that Ohio employees, as defined in division (B)(1) of this
section, are paid the wage rate required by Section 34a of Article
II, Ohio Constitution;

(2)
Ensure that covered Ohio employers maintain certain records that are
directly related to the enforcement of the wage rate requirements in
Section 34a of Article II, Ohio Constitution;

(3)
Ensure that Ohio employees who are paid the wage rate required by
Section 34a of Article II, Ohio Constitution, may enforce their right
to receive that wage rate in the manner set forth in Section 34a of
Article II, Ohio Constitution; and

(4)
Protect the privacy of Ohio employees' pay and personal information
specified in Section 34a of Article II, Ohio Constitution, by
restricting an employee's access, and access by a person acting on
behalf of that employee, to the employee's own pay and personal
information.

(B)
In accordance with Section 34a of Article II, Ohio Constitution, the
terms "employer," "employee," "employ,"
"person," and "independent contractor" have the
same meanings as in the "Fair Labor Standards Act of 1938,"
52 Stat. 1060, 29 U.S.C. 203, as amended. In construing the meaning
of these terms, due consideration and great weight shall be given to
the United States department of labor's and federal courts'
interpretations of those terms under the Fair Labor Standards Act and
its regulations. As used in division (B) of this section:

(1)
"Employee" means individuals employed in Ohio, but does not
mean individuals who are excluded from the definition of "employee"
under 29 U.S.C. 203(e) or individuals who are exempted from the
minimum wage requirements in 29 U.S.C. 213 and from the definition of
"employee" in this chapter.

(2)
"Employ" and "employee" do not include
any

either
of the following:

(a)
Any
person
acting as a volunteer. In construing who is a volunteer, "volunteer"
shall have the same meaning as in sections 553.101 to 553.106 of
Title 29 of the Code of Federal Regulations, as amended, and due
consideration and great weight shall be given to the United States
department of labor's and federal courts' interpretations of the term
"volunteer" under the Fair Labor Standards Act and its
regulations.

(b)
A health care worker, with respect to a health care worker platform
or health care facility for work booked through a health care worker
platform, in accordance with section 4113.87 of the Revised Code.

(3)
"Employer" does not include a franchisor with respect to
the franchisor's relationship with a franchisee or an employee of a
franchisee, unless the franchisor agrees to assume that role in
writing or a court of competent jurisdiction determines that the
franchisor exercises a type or degree of control over the franchisee
or the franchisee's employees that is not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademark,
brand, or both. For purposes of this division, "franchisor"
and "franchisee" have the same meanings as in 16 C.F.R.
436.1.

(4)
Subject to division (B)(5) of this section, "employee" does
not include an individual who operates a vehicle or vessel in the
performance of services for or on behalf of a motor carrier
transporting property and to whom all of the following factors apply:

(a)
The individual owns the vehicle or vessel that is used in performing
the services for or on behalf of the carrier, or the individual
leases the vehicle or vessel under a bona fide lease agreement that
is not a temporary replacement lease agreement. For purposes of this
division, a bona fide lease agreement does not include an agreement
between the individual and the motor carrier transporting property
for which, or on whose behalf, the individual provides services.

(b)
The individual is responsible for supplying the necessary personal
services to operate the vehicle or vessel used to provide the
service.

(c)
The compensation paid to the individual is based on factors related
to work performed, including on a mileage-based rate or a percentage
of any schedule of rates, and not solely on the basis of the hours or
time expended.

(d)
The individual substantially controls the means and manner of
performing the services, in conformance with regulatory requirements
and specifications of the shipper.

(e)
The individual enters into a written contract with the carrier for
whom the individual is performing the services that describes the
relationship between the individual and the carrier to be that of an
independent contractor and not that of an employee.

(f)
The individual is responsible for substantially all of the principal
operating costs of the vehicle or vessel and equipment used to
provide the services, including maintenance, fuel, repairs, supplies,
vehicle or vessel insurance, and personal expenses, except that the
individual may be paid by the carrier the carrier's fuel surcharge
and incidental costs, including tolls, permits, and lumper fees.

(g)
The individual is responsible for any economic loss or economic gain
from the arrangement with the carrier.

(5)
A motor carrier may elect to consider an individual described in
division (B)(4) of this section as an employee for purposes of this
section.

(6)
"Motor carrier" has the same meaning as in section 4923.01
of the Revised Code.

(C)
In accordance with Section 34a of Article II, Ohio Constitution, the
state may issue licenses to employers authorizing payment of a wage
below that required by Section 34a of Article II, Ohio Constitution,
to individuals with mental or physical disabilities that may
otherwise adversely affect their opportunity for employment. In
issuing such licenses, the state shall abide by the rules adopted
pursuant to section 4111.06 of the Revised Code.

(D)(1)
In accordance with Section 34a of Article II, Ohio Constitution,
individuals employed in or about the property of an employer or an
individual's residence on a casual basis are not included within the
coverage of Section 34a of Article II, Ohio Constitution. As used in
division (D) of this section:

(a)
"Casual basis" means employment that is irregular or
intermittent and that is not performed by an individual whose
vocation is to be employed in or about the property of the employer
or individual's residence. In construing who is employed on a "casual
basis," due consideration and great weight shall be given to the
United States department of labor's and federal courts'
interpretations of the term "casual basis" under the Fair
Labor Standards Act and its regulations.

(b)
"An individual employed in or about the property of an employer
or individual's residence" means an individual employed on a
casual basis or an individual employed in or about a residence on a
casual basis, respectively.

(2)
In accordance with Section 34a of Article II, Ohio Constitution,
employees of a solely family-owned and operated business who are
family members of an owner are not included within the coverage of
Section 34a of Article II, Ohio Constitution. As used in division
(D)(2) of this section, "family member" means a parent,
spouse, child, stepchild, sibling, grandparent, grandchild, or other
member of an owner's immediate family.

(E)
In accordance with Section 34a of Article II, Ohio Constitution, an
employer shall at the time of hire provide an employee with the
employer's name, address, telephone number, and other contact
information and update such information when it changes. As used in
division (E) of this section:

(1)
"Other contact information" may include, where applicable,
the address of the employer's internet site on the world wide web,
the employer's electronic mail address, fax number, or the name,
address, and telephone number of the employer's statutory agent.
"Other contact information" does not include the name,
address, telephone number, fax number, internet site address, or
electronic mail address of any employee, shareholder, officer,
director, supervisor, manager, or other individual employed by or
associated with an employer.

(2)
"When it changes" means that the employer shall provide its
employees with the change in its name, address, telephone number, or
other contact information within sixty business days after the change
occurs. The employer shall provide the changed information by using
any of its usual methods of communicating with its employees,
including, but not limited to, listing the change on the employer's
internet site on the world wide web, internal computer network, or a
bulletin board where it commonly posts employee communications or by
insertion or inclusion with employees' paychecks or pay stubs.

(F)
In accordance with Section 34a of Article II, Ohio Constitution, an
employer shall maintain a record of the name, address, occupation,
pay rate, hours worked for each day worked, and each amount paid an
employee for a period of not less than three years following the last
date the employee was employed by that employer. As used in division
(F) of this section:

(1)
"Address" means an employee's home address as maintained in
the employer's personnel file or personnel database for that
employee.

(2)(a)
With respect to employees who are not exempt from the overtime pay
requirements of the Fair Labor Standards Act or this chapter, "pay
rate" means an employee's base rate of pay.

(b)
With respect to employees who are exempt from the overtime pay
requirements of the Fair Labor Standards Act or this chapter, "pay
rate" means an employee's annual base salary or other rate of
pay by which the particular employee qualifies for that exemption
under the Fair Labor Standards Act or this chapter, but does not
include bonuses, stock options, incentives, deferred compensation, or
any other similar form of compensation.

(3)
"Record" means the name, address, occupation, pay rate,
hours worked for each day worked, and each amount paid an employee in
one or more documents, databases, or other paper or electronic forms
of record-keeping maintained by an employer. No one particular method
or form of maintaining such a record or records is required under
this division. An employer is not required to create or maintain a
single record containing only the employee's name, address,
occupation, pay rate, hours worked for each day worked, and each
amount paid an employee. An employer shall maintain a record or
records from which the employee or person acting on behalf of that
employee could reasonably review the information requested by the
employee or person.

An
employer is not required to maintain the records specified in
division (F)(3) of this section for any period before January 1,
2007. On and after January 1, 2007, the employer shall maintain the
records required by division (F)(3) of this section for three years
from the date the hours were worked by the employee and for three
years after the date the employee's employment ends.

(4)(a)
Except for individuals specified in division (F)(4)(b) of this
section, "hours worked for each day worked" means the total
amount of time worked by an employee in whatever increments the
employer uses for its payroll purposes during a day worked by the
employee. An employer is not required to keep a record of the time of
day an employee begins and ends work on any given day. As used in
division (F)(4) of this section, "day" means a fixed period
of twenty-four consecutive hours during which an employee performs
work for an employer.

(b)
An employer is not required to keep records of "hours worked for
each day worked" for individuals for whom the employer is not
required to keep those records under the Fair Labor Standards Act and
its regulations or individuals who are not subject to the overtime
pay requirements specified in section 4111.03 of the Revised Code.

(5)
"Each amount paid an employee" means the total gross wages
paid to an employee for each pay period. As used in division (F)(5)
of this section, "pay period" means the period of time
designated by an employer to pay an employee the employee's gross
wages in accordance with the employer's payroll practices under
section 4113.15 of the Revised Code.

(G)
In accordance with Section 34a of Article II, Ohio Constitution, an
employer must provide such information without charge to an employee
or person acting on behalf of an employee upon request. As used in
division (G) of this section:

(1)
"Such information" means the name, address, occupation, pay
rate, hours worked for each day worked, and each amount paid for the
specific employee who has requested that specific employee's own
information and does not include the name, address, occupation, pay
rate, hours worked for each day worked, or each amount paid of any
other employee of the employer. "Such information" does not
include hours worked for each day worked by individuals for whom an
employer is not required to keep that information under the Fair
Labor Standards Act and its regulations or individuals who are not
subject to the overtime pay requirements specified in section 4111.03
of the Revised Code.

(2)
"Acting on behalf of an employee" means a person acting on
behalf of an employee as any of the following:

(a)
The certified or legally recognized collective bargaining
representative for that employee under the applicable federal law or
Chapter 4117. of the Revised Code;

(b)
The employee's attorney;

(c)
The employee's parent, guardian, or legal custodian.

A
person "acting on behalf of an employee" must be
specifically authorized by an employee in order to make a request for
that employee's own name, address, occupation, pay rate, hours worked
for each day worked, and each amount paid to that employee.

(3)
"Provide" means that an employer shall provide the
requested information within thirty business days after the date the
employer receives the request, unless either of the following occurs:

(a)
The employer and the employee or person acting on behalf of the
employee agree to some alternative time period for providing the
information.

(b)
The thirty-day period would cause a hardship on the employer under
the circumstances, in which case the employer must provide the
requested information as soon as practicable.

(4)
A "request" made by an employee or a person acting on
behalf of an employee means a request by an employee or a person
acting on behalf of an employee for the employee's own information.
The employer may require that the employee provide the employer with
a written request that has been signed by the employee and notarized
and that reasonably specifies the particular information being
requested. The employer may require that the person acting on behalf
of an employee provide the employer with a written request that has
been signed by the employee whose information is being requested and
notarized and that reasonably specifies the particular information
being requested.

(H)
In accordance with Section 34a of Article II, Ohio Constitution, an
employee, person acting on behalf of one or more employees, and any
other interested party may file a complaint with the state for a
violation of any provision of Section 34a of Article II, Ohio
Constitution, or any law or regulation implementing its provisions.
Such complaint shall be promptly investigated and resolved by the
state. The employee's name shall be kept confidential unless
disclosure is necessary to resolution of a complaint and the employee
consents to disclosure. As used in division (H) of this section:

(1)
"Complaint" means a complaint of an alleged violation
pertaining to harm suffered by the employee filing the complaint, by
a person acting on behalf of one or more employees, or by an
interested party.

(2)
"Acting on behalf of one or more employees" has the same
meaning as "acting on behalf of an employee" in division
(G)(2) of this section. Each employee must provide a separate written
and notarized authorization before the person acting on that
employee's or those employees' behalf may request the name, address,
occupation, pay rate, hours worked for each day worked, and each
amount paid for the particular employee.

(3)
"Interested party" means a party who alleges to be injured
by the alleged violation and who has standing to file a complaint
under common law principles of standing.

(4)
"Resolved by the state" means that the complaint has been
resolved to the satisfaction of the state.

(5)
"Shall be kept confidential" means that the state shall
keep the name of the employee confidential as required by division
(H) of this section.

(I)
In accordance with Section 34a of Article II, Ohio Constitution, the
state may on its own initiative investigate an employer's compliance
with Section 34a of Article II, Ohio Constitution, and any law or
regulation implementing Section 34a of Article II, Ohio Constitution.
The employer shall make available to the state any records related to
such investigation and other information required for enforcement of
Section 34a of Article II, Ohio Constitution or any law or regulation
implementing Section 34a of Article II, Ohio Constitution. The state
shall investigate an employer's compliance with this section in
accordance with the procedures described in section 4111.04 of the
Revised Code. All records and information related to investigations
by the state are confidential and are not a public record subject to
section 149.43 of the Revised Code. This division does not prevent
the state from releasing to or exchanging with other state and
federal wage and hour regulatory authorities information related to
investigations.

(J)
In accordance with Section 34a of Article II, Ohio Constitution,
damages shall be calculated as an additional two times the amount of
the back wages and in the case of a violation of an anti-retaliation
provision an amount set by the state or court sufficient to
compensate the employee and deter future violations, but not less
than one hundred fifty dollars for each day that the violation
continued. The "not less than one hundred fifty dollar"
penalty specified in division (J) of this section shall be imposed
only for violations of the anti-retaliation provision in Section 34a
of Article II, Ohio Constitution.

(K)
In accordance with Section 34a of Article II, Ohio Constitution, an
action for equitable and monetary relief may be brought against an
employer by the attorney general and/or an employee or person acting
on behalf of an employee or all similarly situated employees in any
court of competent jurisdiction, including the court of common pleas
of an employee's county of residence, for any violation of Section
34a of Article II, Ohio Constitution, or any law or regulation
implementing its provisions within three years of the violation or of
when the violation ceased if it was of a continuing nature, or within
one year after notification to the employee of final disposition by
the state of a complaint for the same violation, whichever is later.

(1)
As used in division (K) of this section, "notification"
means the date on which the notice was sent to the employee by the
state.

(2)
No employee shall join as a party plaintiff in any civil action that
is brought under division (K) of this section by an employee, person
acting on behalf of an employee, or person acting on behalf of all
similarly situated employees unless that employee first gives written
consent to become such a party plaintiff and that consent is filed
with the court in which the action is brought.

(3)
A civil action regarding an alleged violation of this section shall
be maintained only under division (K) of this section. This division
does not preclude the joinder in a single civil action of an action
under this division and an action under section 4111.10 of the
Revised Code.

(4)
Any agreement between an employee and employer to work for less than
the wage rate specified in Section 34a of Article II, Ohio
Constitution, is no defense to an action under this section.

(L)
In accordance with Section 34a of Article II, Ohio Constitution,
there shall be no exhaustion requirement, no procedural, pleading, or
burden of proof requirements beyond those that apply generally to
civil suits in order to maintain such action and no liability for
costs or attorney's fees on an employee except upon a finding that
such action was frivolous in accordance with the same standards that
apply generally in civil suits. Nothing in division (L) of this
section affects the right of an employer and employee to agree to
submit a dispute under this section to alternative dispute
resolution, including, but not limited to, arbitration, in lieu of
maintaining the civil suit specified in division (K) of this section.
Nothing in this division limits the state's ability to investigate or
enforce this section.

(M)
An employer who provides such information specified in Section 34a of
Article II, Ohio Constitution, shall be immune from any civil
liability for injury, death, or loss to person or property that
otherwise might be incurred or imposed as a result of providing that
information to an employee or person acting on behalf of an employee
in response to a request by the employee or person, and the employer
shall not be subject to the provisions of Chapters 1347. and 1349. of
the Revised Code to the extent that such provisions would otherwise
apply. As used in division (M) of this section, "such
information," "acting on behalf of an employee," and
"request" have the same meanings as in division (G) of this
section.

(N)
As used in this section, "the state" means the director of
commerce.

Sec.
4113.15.
(A)
Every employer doing business in this state shall, on or before the
first day of each month, pay all its employees the wages earned by
them during the first half of the preceding month ending with the
fifteenth day thereof, and shall, on or before the fifteenth day of
each month, pay such employees the wages earned by them during the
last half of the preceding calendar month. If at any time of payment
an employee is absent from the employee's regular place of labor and
does not receive payment of wages through an authorized
representative, such person shall be entitled to said payment at any
time thereafter upon demand upon the proper paymaster at the place
where such wages are usually paid and where such pay is due. This
section does not prohibit the daily or weekly payment of wages. The
use of a longer time lapse that is customary to a given trade,
profession or occupation, or establishment of a different time lapse
by written contract or by operation of law.

(B)
Where wages remain unpaid for thirty days beyond the regularly
scheduled payday or, in the case where no regularly scheduled payday
is applicable, for sixty days beyond the filing by the employee of a
claim or for sixty days beyond the date of the agreement, award, or
other act making wages payable and no contest court order or dispute
of any wage claim including the assertion of a counterclaim exists
accounting for nonpayment, the employer, in addition, as liquidated
damages, is liable to the employee in an amount equal to six per cent
of the amount of the claim still unpaid and not in contest or
disputed or two hundred dollars, whichever is greater.

(C)
In the absence of a contest, court order or dispute, an employer who
is party to an agreement to pay or provide fringe benefits to an
employee or to make any employee authorized deduction becomes a
trustee of any funds required by such agreement to be paid to any
person, organization, or governmental agency from the time that the
duty to make such payment arises. No person shall, without reasonable
justification or excuse for such failure, knowingly fail or refuse to
pay to the appropriate person, organization, or governmental agency
the amount necessary to provide the benefits or accomplish the
purpose of any employee authorized deduction, within thirty days
after the close of the pay period during which the employee earned or
had deducted the amount of money necessary to pay for the fringe
benefit or make any employee authorized deduction. A failure or
refusal to pay, regardless of the number of employee pay accounts
involved, constitutes one offense for the first delinquency of thirty
days and a separate offense for each successive delinquency of thirty
days.

(D)
As used in this section and section 4113.16 of the Revised Code:

(1)
"Wage" means the net amount of money payable to an
employee, including any guaranteed pay or reimbursement for expenses,
less any federal, state, or local taxes withheld; any deductions made
pursuant to a written agreement for the purpose of providing the
employee with any fringe benefits; and any employee authorized
deduction.

(2)
"Fringe benefits" includes but is not limited to health,
welfare, or retirement benefits, whether paid for entirely by the
employer or on the basis of a joint employer-employee contribution,
or vacation, separation, or holiday pay.

(3)
"Employee authorized deduction" includes but is not limited
to deductions for the purpose of any of the following:

(a)
Purchase of United States savings bonds or corporate stocks or bonds;

(b)
A charitable contribution;

(c)
Credit union savings or other regular savings program;

(d)
Repayment of a loan or other obligation.

(4)
"Employer" means an individual, firm, partnership,
association, or corporation, but does not include a franchisor with
respect to the franchisor's relationship with a franchisee or an
employee of a franchisee, unless either of the following applies:

(a)
The franchisor agrees to assume that role in writing.

(b)
A court of competent jurisdiction determines that the franchisor
exercises a type or degree of control over the franchisee or the
franchisee's employees that is not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademark,
brand, or both.

(5)
"Franchisor" and "franchisee" have the same
meanings as in 16 C.F.R. 436.1.

(6)
"Employee" does not include a health care worker, with
respect to a health care worker platform or health care facility for
work booked through a health care worker platform, in accordance with
section 4113.87 of the Revised Code.

Sec.
4113.87.
(A)
As used in this section:

(1)
"Health care worker" means any health care professional or
worker who provides health care or directly related services to
patients through a health care worker platform, including
professionals or workers who are providing a service to patients that
does not require a license.

(2)
"Health care worker platform" means any person that
operates or offers an electronic platform, system, or application
through which health care workers can accept one or more shifts to
perform health care related services at a health care facility.

(3)
"Health care facility" means any facility used to provide
health care or related services.

(B)
Except as provided in division (C) of this section, a health care
worker is not the employee of a health care worker platform or health
care facility for work booked through a health care worker platform
for purposes of sections 4111.03, 4111.14, 4113.15, 4121.01, 4123.01,
4141.01, and 5747.01 of the Revised Code if all of the following
apply:

(1)
The health care worker platform and health care worker agree in
writing or electronically that the health care worker is an
independent contractor for all work booked through the platform.

(2)
The health care worker platform allows each health care worker to
decide whether to accept a shift at a health care facility without
any requirement that a health care worker accepts a minimum number of
shifts.

(3)
The health care platform allows each health care worker to agree in
writing or electronically to the rates offered or set by the health
care facility or the health care worker platform.

(4)
The health care worker may accept or reject shifts with any health
care facility without being penalized by the health care worker
platform.

(5)
The health care worker platform does not require the health care
worker to be available to accept or fulfill any particular shifts
during specific hours or on specific days.

(6)
The health care worker platform does not restrict the health care
worker from engaging in any other occupation or business, including
health care work or health care related work.

(7)
The health care worker platform does not require the health care
worker to use specific equipment, tools, or other supplies.

(8)
The health care worker platform does not prescribe or control the
means and methods for the services performed by a health care worker
at a health care facility.

(9)
The contract or other agreement between the health care worker and
the health care worker platform may be terminated by either party
with or without cause.

(10)
The health care worker is responsible for the payment of all federal,
state, and local taxes on the health care worker's earnings derived
from all services performed for health care facilities booked through
the platform.

(11)
The health care worker platform does not require a health care worker
to enter into a noncompete agreement with the platform.

(12)
The health care worker platform does not require a health care worker
or health care facility to pay any fee or compensation to the
platform if a health care worker accepts an offer of employment from
a health care facility.

(13)
The health care worker platform does not restrict a health care
worker from accepting shifts through another platform or from a
health care facility that does not offer shifts on the platform,
except that a health care worker platform may remove from the
platform a health care worker who accepts simultaneous shifts on two
different health care worker platforms.

(14)
The health care worker platform maintains, or verifies that the
health care worker maintains, occupational accident insurance that
applies to the work of the health care worker who books work through
the health care worker platform.

(15)
The health care worker platform maintains, or verifies that the
health care worker maintains, general liability insurance or
professional liability insurance for work booked through the health
care worker platform.

(C)
Division (B) of this section does not apply to a health care worker's
relationship with a health care facility for work booked through a
health care worker platform by the health care worker if the health
care worker and health care facility or its parent company have an
existing employment relationship and either of the following apply:

(1)
The health care worker has received compensation from the health care
facility or parent company that must be reported using internal
revenue service form W-2 for any of the twenty-one days immediately
preceding the shift.

(2)
The health care worker books a shift at the health care facility
through a health care worker platform during a period of
employer-approved leave, including medical, parental, family, or
military leave, whether paid or unpaid.

(D)
A health care worker platform may advertise to the public that the
platform is seeking health care workers to use the platform.

Sec.
4121.01.
(A)
As used in sections 4121.01 to 4121.29 of the Revised Code:

(1)
"Place of employment" means every place, whether indoors or
out, or underground, and the premises appurtenant thereto, where
either temporarily or permanently any industry, trade, or business is
carried on, or where any process or operation, directly or indirectly
related to any industry, trade, or business, is carried on and where
any person is directly or indirectly employed by another for direct
or indirect gain or profit, but does not include any place where
persons are employed in private domestic service or agricultural
pursuits which do not involve the use of mechanical power.

(2)
"Employment" means any trade, occupation, or process of
manufacture or any method of carrying on such trade, occupation, or
process of manufacture in which any person may be engaged, except in
such private domestic service or agricultural pursuits as do not
involve the use of mechanical power.

(3)
"Employer" means every person, firm, corporation, agent,
manager, representative, or other person having control or custody of
any employment, place of employment, or employee. "Employer"
does not include a franchisor with respect to the franchisor's
relationship with a franchisee or an employee of a franchisee, unless
the franchisor agrees to assume that role in writing or a court of
competent jurisdiction determines that the franchisor exercises a
type or degree of control over the franchisee or the franchisee's
employees that is not customarily exercised by a franchisor for the
purpose of protecting the franchisor's trademark, brand, or both. For
purposes of this division, "franchisor" and "franchisee"
have the same meanings as in 16 C.F.R. 436.1.

(4)(a)
(4)

"Employee" means a person who may be required or directed
by any employer, in consideration of direct or indirect gain or
profit, to engage in any employment, or to go, or work, or be at any
time in any place of employment, including a person described in
division (A)(4)(b) of this section if a motor carrier elects to
consider the person to be an employee.

(b)

"Employee"
does not include
a

either
of the following:

(a)
A health care worker, with respect to a health care worker platform
or health care facility for work booked through a health care worker
platform, in accordance with section 4113.87 of the Revised Code.

(b)
A
person
who operates a vehicle or vessel in the performance of services for
or on behalf of a motor carrier transporting property and to whom all
of the following factors apply:

(i)
The person owns the vehicle or vessel that is used in performing the
services for or on behalf of the carrier, or the person leases the
vehicle or vessel under a bona fide lease agreement that is not a
temporary replacement lease agreement. For purposes of this division,
a bona fide lease agreement does not include an agreement between the
person and the motor carrier transporting property for which, or on
whose behalf, the person provides services.

(ii)
The person is responsible for supplying the necessary personal
services to operate the vehicle or vessel used to provide the
service.

(iii)
The compensation paid to the person is based on factors related to
work performed, including on a mileage-based rate or a percentage of
any schedule of rates, and not solely on the basis of the hours or
time expended.

(iv)
The person substantially controls the means and manner of performing
the services, in conformance with regulatory requirements and
specifications of the shipper.

(v)
The person enters into a written contract with the carrier for whom
the person is performing the services that describes the relationship
between the person and the carrier to be that of an independent
contractor and not that of an employee.

(vi)
The person is responsible for substantially all of the principal
operating costs of the vehicle or vessel and equipment used to
provide the services, including maintenance, fuel, repairs, supplies,
vehicle or vessel insurance, and personal expenses, except that the
person may be paid by the carrier the carrier's fuel surcharge and
incidental costs, including tolls, permits, and lumper fees.

(vii)
The person is responsible for any economic loss or economic gain from
the arrangement with the carrier.

(5)
"Frequenter" means every person, other than an employee,
who may go in or be in a place of employment under circumstances
which render the person other than a trespasser.

(6)
"Deputy" means any person employed by the industrial
commission or the bureau of workers' compensation, designated as a
deputy by the commission or the administrator of workers'
compensation, who possesses special, technical, scientific,
managerial, professional, or personal abilities or qualities in
matters within the jurisdiction of the commission or the bureau, and
who may be engaged in the performance of duties under the direction
of the commission or the bureau calling for the exercise of such
abilities or qualities.

(7)
"Order" means any decision, rule, regulation, direction,
requirement, or standard, or any other determination or decision that
the bureau is empowered to and does make.

(8)
"General order" means an order that applies generally
throughout the state to all persons, employments, or places of
employment, or all persons, employments, or places of employment of a
class under the jurisdiction of the bureau. All other orders shall be
considered special orders.

(9)
"Local order" means any ordinance, order, rule, or
determination of the legislative authority of any municipal
corporation, or any trustees, or board or officers of any municipal
corporation upon any matter over which the bureau has jurisdiction.

(10)
"Welfare" means comfort, decency, and moral well-being.

(11)
"Safe" or "safety," as applied to any employment
or a place of employment, means such freedom from danger to the life,
health, safety, or welfare of employees or frequenters as the nature
of the employment will reasonably permit, including requirements as
to the hours of labor with relation to the health and welfare of
employees.

(12)
"Employee organization" means any labor or bona fide
organization in which employees participate and that exists for the
purpose, in whole or in part, of dealing with employers concerning
grievances, labor disputes, wages, hours, terms, and other conditions
of employment.

(13)
"Motor carrier" has the same meaning as in section 4923.01
of the Revised Code.

(B)
As used in the Revised Code:

(1)
"Industrial commission" means the chairperson of the
three-member industrial commission created pursuant to section
4121.02 of the Revised Code when the context refers to the authority
vested in the chairperson as the chief executive officer of the
three-member industrial commission pursuant to divisions (A), (B),
(C), and (D) of section 4121.03 of the Revised Code.

(2)
"Industrial commission" means the three-member industrial
commission created pursuant to section 4121.02 of the Revised Code
when the context refers to the authority vested in the three-member
industrial commission pursuant to division (E) of section 4121.03 of
the Revised Code.

(3)
"Industrial commission" means the industrial commission as
a state agency when the context refers to the authority vested in the
industrial commission as a state agency.

Sec.
4123.01.
As
used in this chapter:

(A)(1)
"Employee" means:

(a)
Every person in the service of the state, or of any county, municipal
corporation, township, or school district therein, including regular
members of lawfully constituted police and fire departments of
municipal corporations and townships, whether paid or volunteer, and
wherever serving within the state or on temporary assignment outside
thereof, and executive officers of boards of education, under any
appointment or contract of hire, express or implied, oral or written,
including any elected official of the state, or of any county,
municipal corporation, or township, or members of boards of
education.

As
used in division (A)(1)(a) of this section, the term "employee"
includes the following persons when responding to an inherently
dangerous situation that calls for an immediate response on the part
of the person, regardless of whether the person is within the limits
of the jurisdiction of the person's regular employment or voluntary
service when responding, on the condition that the person responds to
the situation as the person otherwise would if the person were on
duty in the person's jurisdiction:

(i)
Off-duty peace officers. As used in division (A)(1)(a)(i) of this
section, "peace officer" has the same meaning as in section
2935.01 of the Revised Code.

(ii)
Off-duty firefighters, whether paid or volunteer, of a lawfully
constituted fire department.

(iii)
Off-duty first responders, emergency medical technicians-basic,
emergency medical technicians-intermediate, or emergency medical
technicians-paramedic, whether paid or volunteer, of an ambulance
service organization or emergency medical service organization
pursuant to Chapter 4765. of the Revised Code.

(b)
Every person in the service of any person, firm, or private
corporation, including any public service corporation, that (i)
employs one or more persons regularly in the same business or in or
about the same establishment under any contract of hire, express or
implied, oral or written, including aliens and minors, household
workers who earn one hundred sixty dollars or more in cash in any
calendar quarter from a single household and casual workers who earn
one hundred sixty dollars or more in cash in any calendar quarter
from a single employer, or (ii) is bound by any such contract of hire
or by any other written contract, to pay into the state insurance
fund the premiums provided by this chapter.

(c)
Every person who performs labor or provides services pursuant to a
construction contract, as defined in section 4123.79 of the Revised
Code, if at least ten of the following criteria apply:

(i)
The person is required to comply with instructions from the other
contracting party regarding the manner or method of performing
services;

(ii)
The person is required by the other contracting party to have
particular training;

(iii)
The person's services are integrated into the regular functioning of
the other contracting party;

(iv)
The person is required to perform the work personally;

(v)
The person is hired, supervised, or paid by the other contracting
party;

(vi)
A continuing relationship exists between the person and the other
contracting party that contemplates continuing or recurring work even
if the work is not full time;

(vii)
The person's hours of work are established by the other contracting
party;

(viii)
The person is required to devote full time to the business of the
other contracting party;

(ix)
The person is required to perform the work on the premises of the
other contracting party;

(x)
The person is required to follow the order of work set by the other
contracting party;

(xi)
The person is required to make oral or written reports of progress to
the other contracting party;

(xii)
The person is paid for services on a regular basis such as hourly,
weekly, or monthly;

(xiii)
The person's expenses are paid for by the other contracting party;

(xiv)
The person's tools and materials are furnished by the other
contracting party;

(xv)
The person is provided with the facilities used to perform services;

(xvi)
The person does not realize a profit or suffer a loss as a result of
the services provided;

(xvii)
The person is not performing services for a number of employers at
the same time;

(xviii)
The person does not make the same services available to the general
public;

(xix)
The other contracting party has a right to discharge the person;

(xx)
The person has the right to end the relationship with the other
contracting party without incurring liability pursuant to an
employment contract or agreement.

Every
person in the service of any independent contractor or subcontractor
who has failed to pay into the state insurance fund the amount of
premium determined and fixed by the administrator of workers'
compensation for the person's employment or occupation or who is a
self-insuring employer and who has failed to pay compensation and
benefits directly to the employer's injured and to the dependents of
the employer's killed employees as required by section 4123.35 of the
Revised Code, shall be considered as the employee of the person who
has entered into a contract, whether written or verbal, with such
independent contractor unless such employees or their legal
representatives or beneficiaries elect, after injury or death, to
regard such independent contractor as the employer.

(d)
Every person who operates a vehicle or vessel in the performance of
services for or on behalf of a motor carrier transporting property,
unless all of the following factors apply to the person:

(i)
The person owns the vehicle or vessel that is used in performing the
services for or on behalf of the carrier, or the person leases the
vehicle or vessel under a bona fide lease agreement that is not a
temporary replacement lease agreement. For purposes of this division,
a bona fide lease agreement does not include an agreement between the
person and the motor carrier transporting property for which, or on
whose behalf, the person provides services.

(ii)
The person is responsible for supplying the necessary personal
services to operate the vehicle or vessel used to provide the
service.

(iii)
The compensation paid to the person is based on factors related to
work performed, including on a mileage-based rate or a percentage of
any schedule of rates, and not solely on the basis of the hours or
time expended.

(iv)
The person substantially controls the means and manner of performing
the services, in conformance with regulatory requirements and
specifications of the shipper.

(v)
The person enters into a written contract with the carrier for whom
the person is performing the services that describes the relationship
between the person and the carrier to be that of an independent
contractor and not that of an employee.

(vi)
The person is responsible for substantially all of the principal
operating costs of the vehicle or vessel and equipment used to
provide the services, including maintenance, fuel, repairs, supplies,
vehicle or vessel insurance, and personal expenses, except that the
person may be paid by the carrier the carrier's fuel surcharge and
incidental costs, including tolls, permits, and lumper fees.

(vii)
The person is responsible for any economic loss or economic gain from
the arrangement with the carrier.

(2)
"Employee" does not mean any of the following:

(a)
A duly ordained, commissioned, or licensed minister or assistant or
associate minister of a church in the exercise of ministry;

(b)
Any officer of a family farm corporation;

(c)
An individual incorporated as a corporation;

(d)
An officer of a nonprofit corporation, as defined in section 1702.01
of the Revised Code, who volunteers the person's services as an
officer;

(e)
An individual who otherwise is an employee of an employer but who
signs the waiver and affidavit specified in section 4123.15 of the
Revised Code on the condition that the administrator has granted a
waiver and exception to the individual's employer under section
4123.15 of the Revised Code;

(f)(i)
A qualifying employee described in division (A)(14)(a) of section
5703.94 of the Revised Code when the qualifying employee is
performing disaster work in this state during a disaster response
period pursuant to a qualifying solicitation received by the
employee's employer;

(ii)
A qualifying employee described in division (A)(14)(b) of section
5703.94 of the Revised Code when the qualifying employee is
performing disaster work in this state during a disaster response
period on critical infrastructure owned or used by the employee's
employer;

(iii)
As used in division (A)(2)(f) of this section, "critical
infrastructure," "disaster response period," "disaster
work," and "qualifying employee" have the same
meanings as in section 5703.94 of the Revised Code.

(g)
A health care worker, with respect to a health care worker platform
or health care facility for work booked through a health care worker
platform, in accordance with section 4113.87 of the Revised Code.

Any
employer may elect to include as an "employee" within this
chapter, any person excluded from the definition of "employee"
pursuant to division (A)(1)(d) or (A)(2)(a), (b), (c), or (e) of this
section in accordance with rules adopted by the administrator, with
the advice and consent of the bureau of workers' compensation board
of directors. If an employer is a partnership, sole proprietorship,
individual incorporated as a corporation, or family farm corporation,
such employer may elect to include as an "employee" within
this chapter, any member of such partnership, the owner of the sole
proprietorship, the individual incorporated as a corporation, or the
officers of the family farm corporation. Nothing in this section
shall prohibit a partner, sole proprietor, or any person excluded
from the definition of "employee" pursuant to division
(A)(2)(a), (b), (c), or (e) of this section from electing to be
included as an "employee" under this chapter in accordance
with rules adopted by the administrator, with the advice and consent
of the board.

In
the event of an election, the employer or person electing coverage
shall serve upon the bureau of workers' compensation written notice
naming the person to be covered and include the person's remuneration
for premium purposes in all future payroll reports. No partner, sole
proprietor, or person excluded from the definition of "employee"
pursuant to division (A)(1)(d) or (A)(2)(a), (b), (c), or (e) of this
section, shall receive benefits or compensation under this chapter
until the bureau receives written notice of the election permitted by
this section.

For
informational purposes only, the bureau shall prescribe such language
as it considers appropriate, on such of its forms as it considers
appropriate, to advise employers of their right to elect to include
as an "employee" within this chapter a sole proprietor, any
member of a partnership, or a person excluded from the definition of
"employee" under division (A)(1)(d) or (A)(2)(a), (b), (c),
or (e) of this section, that they should check any health and
disability insurance policy, or other form of health and disability
plan or contract, presently covering them, or the purchase of which
they may be considering, to determine whether such policy, plan, or
contract excludes benefits for illness or injury that they might have
elected to have covered by workers' compensation.

(B)(1)
"Employer" means:

(a)
The state, including state hospitals, each county, municipal
corporation, township, school district, and hospital owned by a
political subdivision or subdivisions other than the state;

(b)
Every person, firm, professional employer organization, alternate
employer organization, and private corporation, including any public
service corporation, that (i) has in service one or more employees or
shared employees regularly in the same business or in or about the
same establishment under any contract of hire, express or implied,
oral or written, or (ii) is bound by any such contract of hire or by
any other written contract, to pay into the insurance fund the
premiums provided by this chapter.

All
such employers are subject to this chapter. Any member of a firm or
association, who regularly performs manual labor in or about a mine,
factory, or other establishment, including a household establishment,
shall be considered an employee in determining whether such person,
firm, or private corporation, or public service corporation, has in
its service, one or more employees and the employer shall report the
income derived from such labor to the bureau as part of the payroll
of such employer, and such member shall thereupon be entitled to all
the benefits of an employee.

(2)
"Employer" does not include a franchisor with respect to
the franchisor's relationship with a franchisee or an employee of a
franchisee, unless the franchisor agrees to assume that role in
writing or a court of competent jurisdiction determines that the
franchisor exercises a type or degree of control over the franchisee
or the franchisee's employees that is not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademark,
brand, or both. For purposes of this division, "franchisor"
and "franchisee" have the same meanings as in 16 C.F.R.
436.1.

(C)
"Injury" includes any injury, whether caused by external
accidental means or accidental in character and result, received in
the course of, and arising out of, the injured employee's employment.
"Injury" does not include:

(1)
Psychiatric conditions except where the claimant's psychiatric
conditions have arisen from an injury or occupational disease
sustained by that claimant or where the claimant's psychiatric
conditions have arisen from sexual conduct in which the claimant was
forced by threat of physical harm to engage or participate;

(2)
Injury or disability caused primarily by the natural deterioration of
tissue, an organ, or part of the body;

(3)
Injury or disability incurred in voluntary participation in an
employer-sponsored recreation or fitness activity if the employee
signs a waiver of the employee's right to compensation or benefits
under this chapter prior to engaging in the recreation or fitness
activity;

(4)
Injury or disability sustained by an employee who performs the
employee's duties in a work area that is located within the
employee's home and that is separate and distinct from the location
of the employer, unless all of the following apply:

(a)
The employee's injury or disability arises out of the employee's
employment.

(b)
The employee's injury or disability was caused by a special hazard of
the employee's employment activity.

(c)
The employee's injury or disability is sustained in the course of an
activity undertaken by the employee for the exclusive benefit of the
employer.

(5)
A condition that pre-existed an injury unless that pre-existing
condition is substantially aggravated by the injury. Such a
substantial aggravation must be documented by objective diagnostic
findings, objective clinical findings, or objective test results.
Subjective complaints may be evidence of such a substantial
aggravation. However, subjective complaints without objective
diagnostic findings, objective clinical findings, or objective test
results are insufficient to substantiate a substantial aggravation.

(D)
"Child" includes a posthumous child and a child legally
adopted prior to the injury.

(E)
"Family farm corporation" means a corporation founded for
the purpose of farming agricultural land in which the majority of the
voting stock is held by and the majority of the stockholders are
persons or the spouse of persons related to each other within the
fourth degree of kinship, according to the rules of the civil law,
and at least one of the related persons is residing on or actively
operating the farm, and none of whose stockholders are a corporation.
A family farm corporation does not cease to qualify under this
division where, by reason of any devise, bequest, or the operation of
the laws of descent or distribution, the ownership of shares of
voting stock is transferred to another person, as long as that person
is within the degree of kinship stipulated in this division.

(F)
"Occupational disease" means a disease contracted in the
course of employment, which by its causes and the characteristics of
its manifestation or the condition of the employment results in a
hazard which distinguishes the employment in character from
employment generally, and the employment creates a risk of
contracting the disease in greater degree and in a different manner
from the public in general.

(G)
"Self-insuring employer" means an employer who is granted
the privilege of paying compensation and benefits directly under
section 4123.35 of the Revised Code, including a board of county
commissioners for the sole purpose of constructing a sports facility
as defined in section 307.696 of the Revised Code, provided that the
electors of the county in which the sports facility is to be built
have approved construction of a sports facility by ballot election no
later than November 6, 1997.

(H)
"Private employer" means an employer as defined in division
(B)(1)(b) of this section.

(I)
"Professional employer organization" has the same meaning
as in section 4125.01 of the Revised Code.

(J)
"Public employer" means an employer as defined in division
(B)(1)(a) of this section.

(K)
"Sexual conduct" means vaginal intercourse between a male
and female; anal intercourse, fellatio, and cunnilingus between
persons regardless of gender; and, without privilege to do so, the
insertion, however slight, of any part of the body or any instrument,
apparatus, or other object into the vaginal or anal cavity of
another. Penetration, however slight, is sufficient to complete
vaginal or anal intercourse.

(L)
"Other-states' insurer" means an insurance company that is
authorized to provide workers' compensation insurance coverage in any
of the states that permit employers to obtain insurance for workers'
compensation claims through insurance companies.

(M)
"Other-states' coverage" means both of the following:

(1)
Insurance coverage secured by an eligible employer for workers'
compensation claims of employees who are in employment relationships
localized in a state other than this state or those employees'
dependents;

(2)
Insurance coverage secured by an eligible employer for workers'
compensation claims that arise in a state other than this state where
an employer elects to obtain coverage through either the
administrator or an other-states' insurer.

(N)
"Limited other-states coverage" means insurance coverage
provided by the administrator to an eligible employer for workers'
compensation claims of employees who are in an employment
relationship localized in this state but are temporarily working in a
state other than this state, or those employees' dependents.

(O)
"Motor carrier" has the same meaning as in section 4923.01
of the Revised Code.

(P)
"Alternate employer organization" has the same meaning as
in section 4133.01 of the Revised Code.

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

(A)(1)
"Employer" means any of the following, provided the
individual or entity is subject to this chapter under section
4141.011 of the Revised Code: any state, its instrumentalities, its
political subdivisions and their instrumentalities, Indian tribes,
and any individual or type of organization including any partnership,
limited liability company, association, trust, estate, joint-stock
company, insurance company, or corporation, whether domestic or
foreign, or the receiver, trustee in bankruptcy, trustee, or the
successor thereof, or the legal representative of a deceased person.

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

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

(2)
"Employment" includes:

(a)
Service performed after December 31, 1977, by an individual in the
employ of the state or any of its instrumentalities, or any political
subdivision thereof or any of its instrumentalities or any
instrumentality of more than one of the foregoing or any
instrumentality of any of the foregoing and one or more other states
or political subdivisions and without regard to division (A) of
section 4141.011 of the Revised Code, provided that such service is
excluded from employment as defined in the "Federal Unemployment
Tax Act," 53 Stat. 183, 26 U.S.C.A. 3301, 3306(c)(7) and is not
excluded under division (B)(3) of this section; or the services of
employees covered by voluntary election, as provided under divisions
(H) and (I) of section 4141.011 of the Revised Code;

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

(c)
Domestic service performed after December 31, 1977, for an employer,
as provided in division (C) of section 4141.011 of the Revised Code;

(d)
Agricultural labor performed after December 31, 1977, for a farm
operator or a crew leader, as provided in division (D) of section
4141.011 of the Revised Code;

(e)
Subject to division (B)(2)(m) of this section, service not covered
under division (B)(1) of this section which is performed after
December 31, 1971:

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

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

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

(i)
The service is localized in this state.

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

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

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

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

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

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

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

(j)
Notwithstanding any other provisions of divisions (B)(1) and (2) of
this section, service, except for domestic service in a private home
not covered under division (C) of section 4141.011 of the Revised
Code, with respect to which a tax is required to be paid under any
federal law imposing a tax against which credit may be taken for
contributions required to be paid into a state unemployment fund, or
service, except for domestic service in a private home not covered
under division (C) of section 4141.011 of the Revised Code, which, as
a condition for full tax credit against the tax imposed by the
"Federal Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A.
3301 to 3311, is required to be covered under this chapter.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(m)
Service performed by an individual for or on behalf of a motor
carrier transporting property as an operator of a vehicle or vessel,
unless all of the following factors apply to the individual and the
motor carrier has not elected to consider the individual's service as
employment:

(i)
The individual owns the vehicle or vessel that is used in performing
the services for or on behalf of the carrier, or the individual
leases the vehicle or vessel under a bona fide lease agreement that
is not a temporary replacement lease agreement. For purposes of this
division, a bona fide lease agreement does not include an agreement
between the individual and the motor carrier transporting property
for which, or on whose behalf, the individual provides services.

(ii)
The individual is responsible for supplying the necessary personal
services to operate the vehicle or vessel used to provide the
service.

(iii)
The compensation paid to the individual is based on factors related
to work performed, including on a mileage-based rate or a percentage
of any schedule of rates, and not solely on the basis of the hours or
time expended.

(iv)
The individual substantially controls the means and manner of
performing the services, in conformance with regulatory requirements
and specifications of the shipper.

(v)
The individual enters into a written contract with the carrier for
whom the individual is performing the services that describes the
relationship between the individual and the carrier to be that of an
independent contractor and not that of an employee.

(vi)
The individual is responsible for substantially all of the principal
operating costs of the vehicle or vessel and equipment used to
provide the services, including maintenance, fuel, repairs, supplies,
vehicle or vessel insurance, and personal expenses, except that the
individual may be paid by the carrier the carrier's fuel surcharge
and incidental costs, including tolls, permits, and lumper fees.

(vii)
The individual is responsible for any economic loss or economic gain
from the arrangement with the carrier.

(viii)
The individual is not performing services described in 26 U.S.C.
3306(c)(7) or (8).

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

(a)
Service performed after December 31, 1977, in agricultural labor,
except as provided in division (D) of section 4141.011 of the Revised
Code;

(b)
Domestic service performed after December 31, 1977, in a private
home, local college club, or local chapter of a college fraternity or
sorority except as provided in division (C) of section 4141.011 of
the Revised Code;

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

(i)
As a publicly elected official;

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

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

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

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

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

(e)
Service performed after December 31, 1971:

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

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

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

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

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

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

(h)
Service performed after December 31, 1971:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(u)
Service that is performed by a nonresident alien individual for the
period the individual temporarily is present in the United States as
a nonimmigrant under division (F), (J), (M), or (Q) of section
101(a)(15) of the "Immigration and Nationality Act," 66
Stat. 163, 8 U.S.C.A. 1101, as amended, that is excluded under
section 3306(c)(19) of the "Federal Unemployment Tax Act,"
53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311.

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

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

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

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

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

(i)
As a publicly elected official;

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

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

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

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

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

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

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

(5)
"Employment" does not include service performed by a health
care worker, with respect to a health care worker platform or health
care facility for work booked through a health care worker platform,
in accordance with section 4113.87 of the Revised Code.

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

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

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

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

(G)
"Wages" means remuneration paid to an employee by each of
the employee's employers with respect to employment; except that
wages shall not include that part of remuneration paid during any
calendar year to an individual by an employer or such employer's
predecessor in interest in the same business or enterprise, which in
any calendar year is in excess of nine thousand dollars on and after
January 1, 1995; nine thousand five hundred dollars on and after
January 1, 2018; and nine thousand dollars on and after January 1,
2020. Remuneration in excess of such amounts shall be deemed wages
subject to contribution to the same extent that such remuneration is
defined as wages under the "Federal Unemployment Tax Act,"
84 Stat. 714 (1970), 26 U.S.C.A. 3301 to 3311, as amended. The
remuneration paid an employee by an employer with respect to
employment in another state, upon which contributions were required
and paid by such employer under the unemployment compensation act of
such other state, shall be included as a part of remuneration in
computing the amount specified in this division.

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

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

(a)
Payments as provided in divisions (b)(2) to (b)(20) of section 3306
of the "Federal Unemployment Tax Act," 84 Stat. 713, 26
U.S.C.A. 3301 to 3311, as amended;

(b)
The payment by an employer, without deduction from the remuneration
of the individual in the employer's employ, of the tax imposed upon
an individual in the employer's employ under section 3101 of the
"Internal Revenue Code of 1954," with respect to services
performed after October 1, 1941.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2)
Effective for benefit years beginning on and after December 26, 2004,
but before July 1, 2022, any application for determination of benefit
rights made in accordance with section 4141.28 of the Revised Code is
valid if the individual satisfies the criteria described in division
(R)(1) of this section, and if the reason for the individual's
separation from employment is not disqualifying pursuant to division
(D)(2) of section 4141.29 or section 4141.291 of the Revised Code. A
disqualification imposed pursuant to division (D)(2) of section
4141.29 or section 4141.291 of the Revised Code must be removed as
provided in those sections as a requirement of establishing a valid
application for benefit years beginning on and after December 26,
2004, but before July 1, 2022. Effective for benefit years beginning
on and after July 1, 2022, any application for determination of
benefit rights made in accordance with section 4141.28 of the Revised
Code is valid if the individual satisfies the criteria described in
division (R)(1) of this section. A disqualification imposed pursuant
to division (D)(2) of section 4141.29 or section 4141.291 of the
Revised Code does not affect the validity of an application.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(AA)
"Alien" means, for the purposes of division (D) of section
4141.011 of the Revised Code, an individual who is an alien admitted
to the United States to perform service in agricultural labor
pursuant to sections 214 (c) and 101 (a)(15)(H) of the "Immigration
and Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101.

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

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

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

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

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

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

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

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

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

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

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

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

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

(EE)
"Motor carrier" has the same meaning as in section 4923.01
of the Revised Code.

Sec.
5747.01.
Except
as otherwise expressly provided or clearly appearing from the
context, any term used in this chapter that is not otherwise defined
in this section has the same meaning as when used in a comparable
context in the laws of the United States relating to federal income
taxes or if not used in a comparable context in those laws, has the
same meaning as in section 5733.40 of the Revised Code. Any reference
in this chapter to the Internal Revenue Code includes other laws of
the United States relating to federal income taxes.

As
used in this chapter:

(A)
"Adjusted gross income" or "Ohio adjusted gross
income" means federal adjusted gross income, as defined and used
in the Internal Revenue Code, adjusted as provided in this section:

(1)
Add interest or dividends on obligations or securities of any state
or of any political subdivision or authority of any state, other than
this state and its subdivisions and authorities.

(2)
Add interest or dividends on obligations of any authority,
commission, instrumentality, territory, or possession of the United
States to the extent that the interest or dividends are exempt from
federal income taxes but not from state income taxes.

(3)
Deduct interest or dividends on obligations of the United States and
its territories and possessions or of any authority, commission, or
instrumentality of the United States to the extent that the interest
or dividends are included in federal adjusted gross income but exempt
from state income taxes under the laws of the United States.

(4)
Deduct disability and survivor's benefits to the extent included in
federal adjusted gross income.

(5)
Deduct the following, to the extent not otherwise deducted or
excluded in computing federal or Ohio adjusted gross income:

(a)
Benefits under Title II of the Social Security Act and tier 1
railroad retirement;

(b)
Railroad retirement benefits, other than tier 1 railroad retirement
benefits, to the extent such amounts are exempt from state taxation
under federal law.

(6)
Deduct the amount of wages and salaries, if any, not otherwise
allowable as a deduction but that would have been allowable as a
deduction in computing federal adjusted gross income for the taxable
year, had the work opportunity tax credit allowed and determined
under sections 38, 51, and 52 of the Internal Revenue Code not been
in effect.

(7)
Deduct any interest or interest equivalent on public obligations and
purchase obligations to the extent that the interest or interest
equivalent is included in federal adjusted gross income.

(8)
Add any loss or deduct any gain resulting from the sale, exchange, or
other disposition of public obligations to the extent that the loss
has been deducted or the gain has been included in computing federal
adjusted gross income.

(9)
Deduct or add amounts, as provided under section 5747.70 of the
Revised Code, related to contributions made to or tuition units
purchased under a qualified tuition program established pursuant to
section 529 of the Internal Revenue Code.

(10)(a)
Deduct, to the extent not otherwise allowable as a deduction or
exclusion in computing federal or Ohio adjusted gross income for the
taxable year, the amount the taxpayer paid during the taxable year
for medical care insurance and qualified long-term care insurance for
the taxpayer, the taxpayer's spouse, and dependents. No deduction for
medical care insurance under division (A)(10)(a) of this section
shall be allowed either to any taxpayer who is eligible to
participate in any subsidized health plan maintained by any employer
of the taxpayer or of the taxpayer's spouse, or to any taxpayer who
is entitled to, or on application would be entitled to, benefits
under part A of Title XVIII of the "Social Security Act,"
49 Stat. 620 (1935), 42 U.S.C. 301, as amended. For the purposes of
division (A)(10)(a) of this section, "subsidized health plan"
means a health plan for which the employer pays any portion of the
plan's cost. The deduction allowed under division (A)(10)(a) of this
section shall be the net of any related premium refunds, related
premium reimbursements, or related insurance premium dividends
received during the taxable year.

(b)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income during the taxable year, the
amount the taxpayer paid during the taxable year, not compensated for
by any insurance or otherwise, for medical care of the taxpayer, the
taxpayer's spouse, and dependents, to the extent the expenses exceed
seven and one-half per cent of the taxpayer's federal adjusted gross
income.

(c)
For purposes of division (A)(10) of this section, "medical care"
has the meaning given in section 213 of the Internal Revenue Code,
subject to the special rules, limitations, and exclusions set forth
therein, and "qualified long-term care" has the same
meaning given in section 7702B(c) of the Internal Revenue Code.
Solely for purposes of division (A)(10)(a) of this section,
"dependent" includes a person who otherwise would be a
"qualifying relative" and thus a "dependent"
under section 152 of the Internal Revenue Code but for the fact that
the person fails to meet the income and support limitations under
section 152(d)(1)(B) and (C) of the Internal Revenue Code.

(11)(a)
Deduct any amount included in federal adjusted gross income solely
because the amount represents a reimbursement or refund of expenses
that in any year the taxpayer had deducted as an itemized deduction
pursuant to section 63 of the Internal Revenue Code and applicable
United States department of the treasury regulations. The deduction
otherwise allowed under division (A)(11)(a) of this section shall be
reduced to the extent the reimbursement is attributable to an amount
the taxpayer deducted under this section in any taxable year.

(b)
Add any amount not otherwise included in Ohio adjusted gross income
for any taxable year to the extent that the amount is attributable to
the recovery during the taxable year of any amount deducted or
excluded in computing federal or Ohio adjusted gross income in any
taxable year.

(12)
Deduct any portion of the deduction described in section 1341(a)(2)
of the Internal Revenue Code, for repaying previously reported income
received under a claim of right, that meets both of the following
requirements:

(a)
It is allowable for repayment of an item that was included in the
taxpayer's adjusted gross income for a prior taxable year and did not
qualify for a credit under division (A) or (B) of section 5747.05 of
the Revised Code for that year;

(b)
It does not otherwise reduce the taxpayer's adjusted gross income for
the current or any other taxable year.

(13)
Deduct an amount equal to the deposits made to, and net investment
earnings of, a medical savings account during the taxable year, in
accordance with section 3924.66 of the Revised Code. The deduction
allowed by division (A)(13) of this section does not apply to medical
savings account deposits and earnings otherwise deducted or excluded
for the current or any other taxable year from the taxpayer's federal
adjusted gross income.

(14)(a)
Add an amount equal to the funds withdrawn from a medical savings
account during the taxable year, and the net investment earnings on
those funds, when the funds withdrawn were used for any purpose other
than to reimburse an account holder for, or to pay, eligible medical
expenses, in accordance with section 3924.66 of the Revised Code;

(b)
Add the amounts distributed from a medical savings account under
division (A)(2) of section 3924.68 of the Revised Code during the
taxable year.

(15)
Add any amount claimed as a credit under section 5747.059 of the
Revised Code to the extent that such amount satisfies either of the
following:

(a)
The amount was deducted or excluded from the computation of the
taxpayer's federal adjusted gross income as required to be reported
for the taxpayer's taxable year under the Internal Revenue Code;

(b)
The amount resulted in a reduction of the taxpayer's federal adjusted
gross income as required to be reported for any of the taxpayer's
taxable years under the Internal Revenue Code.

(16)
Deduct the amount contributed by the taxpayer to an individual
development account program established by a county department of job
and family services pursuant to sections 329.11 to 329.14 of the
Revised Code for the purpose of matching funds deposited by program
participants. On request of the tax commissioner, the taxpayer shall
provide any information that, in the tax commissioner's opinion, is
necessary to establish the amount deducted under division (A)(16) of
this section.

(17)(a)(i)
Subject to divisions (A)(17)(a)(iii), (iv), and (v) of this section,
add five-sixths of the amount of depreciation expense allowed by
subsection (k) of section 168 of the Internal Revenue Code, including
the taxpayer's proportionate or distributive share of the amount of
depreciation expense allowed by that subsection to a pass-through
entity in which the taxpayer has a direct or indirect ownership
interest.

(ii)
Subject to divisions (A)(17)(a)(iii), (iv), and (v) of this section,
add five-sixths of the amount of qualifying section 179 depreciation
expense, including the taxpayer's proportionate or distributive share
of the amount of qualifying section 179 depreciation expense allowed
to any pass-through entity in which the taxpayer has a direct or
indirect ownership interest.

(iii)
Subject to division (A)(17)(a)(v) of this section, for taxable years
beginning in 2012 or thereafter, if the increase in income taxes
withheld by the taxpayer is equal to or greater than ten per cent of
income taxes withheld by the taxpayer during the taxpayer's
immediately preceding taxable year, "two-thirds" shall be
substituted for "five-sixths" for the purpose of divisions
(A)(17)(a)(i) and (ii) of this section.

(iv)
Subject to division (A)(17)(a)(v) of this section, for taxable years
beginning in 2012 or thereafter, a taxpayer is not required to add an
amount under division (A)(17) of this section if the increase in
income taxes withheld by the taxpayer and by any pass-through entity
in which the taxpayer has a direct or indirect ownership interest is
equal to or greater than the sum of (I) the amount of qualifying
section 179 depreciation expense and (II) the amount of depreciation
expense allowed to the taxpayer by subsection (k) of section 168 of
the Internal Revenue Code, and including the taxpayer's proportionate
or distributive shares of such amounts allowed to any such
pass-through entities.

(v)
If a taxpayer directly or indirectly incurs a net operating loss for
the taxable year for federal income tax purposes, to the extent such
loss resulted from depreciation expense allowed by subsection (k) of
section 168 of the Internal Revenue Code and by qualifying section
179 depreciation expense, "the entire" shall be substituted
for "five-sixths of the" for the purpose of divisions
(A)(17)(a)(i) and (ii) of this section.

The
tax commissioner, under procedures established by the commissioner,
may waive the add-backs related to a pass-through entity if the
taxpayer owns, directly or indirectly, less than five per cent of the
pass-through entity.

(b)
Nothing in division (A)(17) of this section shall be construed to
adjust or modify the adjusted basis of any asset.

(c)
To the extent the add-back required under division (A)(17)(a) of this
section is attributable to property generating nonbusiness income or
loss allocated under section 5747.20 of the Revised Code, the
add-back shall be sitused to the same location as the nonbusiness
income or loss generated by the property for the purpose of
determining the credit under division (A) of section 5747.05 of the
Revised Code. Otherwise, the add-back shall be apportioned, subject
to one or more of the four alternative methods of apportionment
enumerated in section 5747.21 of the Revised Code.

(d)
For the purposes of division (A)(17)(a)(v) of this section, net
operating loss carryback and carryforward shall not include the
allowance of any net operating loss deduction carryback or
carryforward to the taxable year to the extent such loss resulted
from depreciation allowed by section 168(k) of the Internal Revenue
Code and by the qualifying section 179 depreciation expense amount.

(e)
For the purposes of divisions (A)(17) and (18) of this section:

(i)
"Income taxes withheld" means the total amount withheld and
remitted under sections 5747.06 and 5747.07 of the Revised Code by an
employer during the employer's taxable year.

(ii)
"Increase in income taxes withheld" means the amount by
which the amount of income taxes withheld by an employer during the
employer's current taxable year exceeds the amount of income taxes
withheld by that employer during the employer's immediately preceding
taxable year.

(iii)
"Qualifying section 179 depreciation expense" means the
difference between (I) the amount of depreciation expense directly or
indirectly allowed to a taxpayer under section 179 of the Internal
Revised Code, and (II) the amount of depreciation expense directly or
indirectly allowed to the taxpayer under section 179 of the Internal
Revenue Code as that section existed on December 31, 2002.

(18)(a)
If the taxpayer was required to add an amount under division
(A)(17)(a) of this section for a taxable year, deduct one of the
following:

(i)
One-fifth of the amount so added for each of the five succeeding
taxable years if the amount so added was five-sixths of qualifying
section 179 depreciation expense or depreciation expense allowed by
subsection (k) of section 168 of the Internal Revenue Code;

(ii)
One-half of the amount so added for each of the two succeeding
taxable years if the amount so added was two-thirds of such
depreciation expense;

(iii)
One-sixth of the amount so added for each of the six succeeding
taxable years if the entire amount of such depreciation expense was
so added.

(b)
If the amount deducted under division (A)(18)(a) of this section is
attributable to an add-back allocated under division (A)(17)(c) of
this section, the amount deducted shall be sitused to the same
location. Otherwise, the deduction shall be apportioned using the
apportionment factors for the taxable year in which the deduction is
taken, subject to one or more of the four alternative methods of
apportionment enumerated in section 5747.21 of the Revised Code.

(c)
No deduction is available under division (A)(18)(a) of this section
with regard to any depreciation allowed by section 168(k) of the
Internal Revenue Code and by the qualifying section 179 depreciation
expense amount to the extent that such depreciation results in or
increases a federal net operating loss carryback or carryforward. If
no such deduction is available for a taxable year, the taxpayer may
carry forward the amount not deducted in such taxable year to the
next taxable year and add that amount to any deduction otherwise
available under division (A)(18)(a) of this section for that next
taxable year. The carryforward of amounts not so deducted shall
continue until the entire addition required by division (A)(17)(a) of
this section has been deducted.

(19)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received during the taxable year as reimbursement
for life insurance premiums under section 5919.31 of the Revised
Code.

(20)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received during the taxable year as a death
benefit paid by the adjutant general under section 5919.33 of the
Revised Code.

(21)
Deduct, to the extent included in federal adjusted gross income and
not otherwise allowable as a deduction or exclusion in computing
federal or Ohio adjusted gross income for the taxable year, military
pay and allowances received by the taxpayer during the taxable year
for active duty service in the armed forces of the United States, as
defined in section 5907.01 of the Revised Code, or reserve components
thereof or the national guard. The deduction may not be claimed for
military pay and allowances received by the taxpayer while the
taxpayer is stationed in this state.

(22)
Deduct, to the extent not otherwise allowable as a deduction or
exclusion in computing federal or Ohio adjusted gross income for the
taxable year and not otherwise compensated for by any other source,
the amount of qualified organ donation expenses incurred by the
taxpayer during the taxable year, not to exceed ten thousand dollars.
A taxpayer may deduct qualified organ donation expenses only once for
all taxable years beginning with taxable years beginning in 2007.

For
the purposes of division (A)(22) of this section:

(a)
"Human organ" means all or any portion of a human liver,
pancreas, kidney, intestine, or lung, and any portion of human bone
marrow.

(b)
"Qualified organ donation expenses" means travel expenses,
lodging expenses, and wages and salary forgone by a taxpayer in
connection with the taxpayer's donation, while living, of one or more
of the taxpayer's human organs to another human being.

(23)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
received by the taxpayer as retired personnel pay for service in the
uniformed services or reserve components thereof, or the national
guard, or received by the surviving spouse or former spouse of such a
taxpayer under the survivor benefit plan on account of such a
taxpayer's death. If the taxpayer receives income on account of
retirement paid under the federal civil service retirement system or
federal employees retirement system, or under any successor
retirement program enacted by the congress of the United States that
is established and maintained for retired employees of the United
States government, and such retirement income is based, in whole or
in part, on credit for the taxpayer's uniformed service, the
deduction allowed under this division shall include only that portion
of such retirement income that is attributable to the taxpayer's
uniformed service, to the extent that portion of such retirement
income is otherwise included in federal adjusted gross income and is
not otherwise deducted under this section. Any amount deducted under
division (A)(23) of this section is not included in a taxpayer's
adjusted gross income for the purposes of section 5747.055 of the
Revised Code. No amount may be deducted under division (A)(23) of
this section on the basis of which a credit was claimed under section
5747.055 of the Revised Code.

(24)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received during the taxable year from the
military injury relief fund created in section 5902.05 of the Revised
Code.

(25)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, the
amount the taxpayer received as a veterans bonus during the taxable
year from the Ohio department of veterans services as authorized by
Section 2r of Article VIII, Ohio Constitution.

(26)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, any
income derived from a transfer agreement or from the enterprise
transferred under that agreement under section 4313.02 of the Revised
Code.

(27)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, Ohio
college opportunity or federal Pell grant amounts received by the
taxpayer or the taxpayer's spouse or dependent pursuant to section
3333.122 of the Revised Code or 20 U.S.C. 1070a, et seq., and used to
pay room or board furnished by the educational institution for which
the grant was awarded at the institution's facilities, including meal
plans administered by the institution. For the purposes of this
division, receipt of a grant includes the distribution of a grant
directly to an educational institution and the crediting of the grant
to the enrollee's account with the institution.

(28)
Deduct from the portion of an individual's federal adjusted gross
income that is business income, to the extent not otherwise deducted
or excluded in computing federal adjusted gross income for the
taxable year, one hundred twenty-five thousand dollars for each
spouse if spouses file separate returns under section 5747.08 of the
Revised Code or two hundred fifty thousand dollars for all other
individuals.

(29)
Deduct, as provided under section 5747.78 of the Revised Code,
contributions to ABLE savings accounts made in accordance with
sections 113.50 to 113.56 of the Revised Code.

(30)(a)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income during the taxable year, all of
the following:

(i)
Compensation paid to a qualifying employee described in division
(A)(14)(a) of section 5703.94 of the Revised Code to the extent such
compensation is for disaster work conducted in this state during a
disaster response period pursuant to a qualifying solicitation
received by the employee's employer;

(ii)
Compensation paid to a qualifying employee described in division
(A)(14)(b) of section 5703.94 of the Revised Code to the extent such
compensation is for disaster work conducted in this state by the
employee during the disaster response period on critical
infrastructure owned or used by the employee's employer;

(iii)
Income received by an out-of-state disaster business for disaster
work conducted in this state during a disaster response period, or,
if the out-of-state disaster business is a pass-through entity, a
taxpayer's distributive share of the pass-through entity's income
from the business conducting disaster work in this state during a
disaster response period, if, in either case, the disaster work is
conducted pursuant to a qualifying solicitation received by the
business.

(b)
All terms used in division (A)(30) of this section have the same
meanings as in section 5703.94 of the Revised Code.

(31)
For a taxpayer who is a qualifying Ohio educator, deduct, to the
extent not otherwise deducted or excluded in computing federal or
Ohio adjusted gross income for the taxable year, the lesser of three
hundred dollars or the amount of expenses described in subsections
(a)(2)(D)(i) and (ii) of section 62 of the Internal Revenue Code paid
or incurred by the taxpayer during the taxpayer's taxable year in
excess of the amount the taxpayer is authorized to deduct for that
taxable year under subsection (a)(2)(D) of that section.

(32)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
received by the taxpayer as a disability severance payment, computed
under 10 U.S.C. 1212, following discharge or release under honorable
conditions from the armed forces of the United States, as defined in
section 5907.01 of the Revised Code.

(33)
Deduct, to the extent not otherwise deducted or excluded in computing
federal adjusted gross income or Ohio adjusted gross income, amounts
not subject to tax due to an agreement entered into under division
(A)(2) of section 5747.05 of the Revised Code.

(34)
Deduct amounts as provided under section 5747.79 of the Revised Code
related to the taxpayer's qualifying capital gains and deductible
payroll.

To
the extent a qualifying capital gain described under division (A)(34)
of this section is business income, the taxpayer shall deduct those
gains under this division before deducting any such gains under
division (A)(28) of this section.

(35)(a)
For taxable years beginning in or after 2026, deduct, to the extent
not otherwise deducted or excluded in computing federal or Ohio
adjusted gross income for the taxable year:

(i)
One hundred per cent of the capital gain received by the taxpayer in
the taxable year from a qualifying interest in an Ohio venture
capital operating company attributable to the company's investments
in Ohio businesses during the period for which the company was an
Ohio venture operating company; and

(ii)
Fifty per cent of the capital gain received by the taxpayer in the
taxable year from a qualifying interest in an Ohio venture capital
operating company attributable to the company's investments in all
other businesses during the period for which the company was an Ohio
venture operating company.

(b)
Add amounts previously deducted by the taxpayer under division
(A)(35)(a) of this section if the director of development certifies
to the tax commissioner that the requirements for the deduction were
not met.

(c)
All terms used in division (A)(35) of this section have the same
meanings as in section 122.851 of the Revised Code.

(d)
To the extent a capital gain described in division (A)(35)(a) of this
section is business income, the taxpayer shall apply that division
before applying division (A)(28) of this section.

(36)
Add, to the extent not otherwise included in computing federal or
Ohio adjusted gross income for any taxable year, the taxpayer's
proportionate share of the amount of the tax levied under section
5747.38 of the Revised Code and paid by an electing pass-through
entity for the taxable year.

Notwithstanding
any provision of the Revised Code to the contrary, the portion of the
addition required by division (A)(36) of this section related to the
apportioned business income of the pass-through entity shall be
considered business income under division (B) of this section. Such
addition is eligible for the deduction in division (A)(28) of this
section, subject to the applicable dollar limitations, and the tax
rate prescribed by division (A)(4)(a) of section 5747.02 of the
Revised Code. The taxpayer shall provide, upon request of the tax
commissioner, any documentation necessary to verify the portion of
the addition that is business income under this division.

(37)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
delivered to a qualifying institution pursuant to section 3333.128 of
the Revised Code for the benefit of the taxpayer or the taxpayer's
spouse or dependent.

(38)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income for the taxable year, amounts
received under the Ohio adoption grant program pursuant to section
5180.451 of the Revised Code.

(39)
Deduct, to the extent included in federal adjusted gross income,
income attributable to amounts provided to a taxpayer for any of the
purposes for which an exclusion would have been authorized under
section 139 of the Internal Revenue Code if the train derailment near
the city of East Palestine on February 3, 2023, had been a qualified
disaster pursuant to that section, or to compensate for lost business
resulting from that derailment, if such amounts are provided by any
of the following:

(a)
A federal, state, or local government agency;

(b)
A railroad company, as that term is defined in section 5727.01 of the
Revised Code;

(c)
Any subsidiary, insurer, or agent of a railroad company or any
related person.

Notwithstanding
any provision to the contrary, the derailment is not required to meet
the definition of a "qualified disaster" pursuant to
section 139 of the Internal Revenue Code to qualify for the deduction
under this section.

(40)
Deduct, to the extent included in federal adjusted gross income,
income attributable to loan repayments on behalf of the taxpayer
under the rural practice incentive program under section 3333.135 of
the Revised Code.

(41)
Add any income taxes deducted in computing federal or Ohio adjusted
gross income to the extent the income taxes were derived from income
subject to a tax levied in another state or the District of Columbia
when such tax was enacted for purposes of complying with internal
revenue service notice 2020-75.

Notwithstanding
any provision of the Revised Code to the contrary, the portion of the
addition required by division (A)(41) of this section related to the
apportioned business income of the pass-through entity shall be
considered business income under division (B) of this section. Such
addition is eligible for the deduction in division (A)(28) of this
section, subject to the applicable dollar limitations, and the tax
rate prescribed by division (A)(4)(a) of section 5747.02 of the
Revised Code. The taxpayer shall provide, upon request of the tax
commissioner, any documentation necessary to verify the portion of
the addition that is business income under this division.

(42)
Deduct amounts contributed to a homeownership savings account and
calculated pursuant to divisions (B) and (C) of section 5747.85 of
the Revised Code.

(43)
If the taxpayer is the account owner of a homeownership savings
account, upon withdrawal or transfer of funds from the account, or
closure of the account containing funds that are not used for
eligible expenses, add the amount of such funds not used for an
eligible expense. The addition required under this division shall not
exceed the sum of the amounts deducted by the taxpayer for such
account under division (A)(42) of this section in any taxable year
and the amount of any funds deposited in the account by a contributor
other than the account owner. As used in division (A)(43) of this
section, "homeownership savings account," "contributor,"
"account owner," and "eligible expenses" have the
same meanings as in section 5747.85 of the Revised Code.

(44)
Deduct, to the extent not otherwise deducted or excluded in computing
federal or Ohio adjusted gross income during the taxable year, up to
seven hundred fifty dollars of contributions the taxpayer makes to a
pregnancy resource center that meets the criteria in division (B) of
section 5180.71 of the Revised Code.

(B)
"Business income" means income, including gain or loss,
arising from transactions, activities, and sources in the regular
course of a trade or business and includes income, gain, or loss from
real property, tangible property, and intangible property if the
acquisition, rental, management, and disposition of the property
constitute integral parts of the regular course of a trade or
business operation. "Business income" includes income,
including gain or loss, from a partial or complete liquidation of a
business, including, but not limited to, gain or loss from the sale
or other disposition of goodwill or the sale of an equity or
ownership interest in a business.

As
used in this division, the "sale of an equity or ownership
interest in a business" means sales to which either or both of
the following apply:

(1)
The sale is treated for federal income tax purposes as the sale of
assets.

(2)
The seller materially participated, as described in 26 C.F.R.
1.469-5T, in the activities of the business during the taxable year
in which the sale occurs or during any of the five preceding taxable
years.

(C)
"Nonbusiness income" means all income other than business
income and may include, but is not limited to, compensation, rents
and royalties from real or tangible personal property, capital gains,
interest, dividends and distributions, patent or copyright royalties,
or lottery winnings, prizes, and awards.

(D)
"Compensation" means any form of remuneration paid to an
employee for personal services.

(E)
"Fiduciary" means a guardian, trustee, executor,
administrator, receiver, conservator, or any other person acting in
any fiduciary capacity for any individual, trust, or estate.

(F)
"Fiscal year" means an accounting period of twelve months
ending on the last day of any month other than December.

(G)
"Individual" means any natural person.

(H)
"Internal Revenue Code" means the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.

(I)
"Resident" means any of the following:

(1)
An individual who is domiciled in this state, subject to section
5747.24 of the Revised Code;

(2)
The estate of a decedent who at the time of death was domiciled in
this state. The domicile tests of section 5747.24 of the Revised Code
are not controlling for purposes of division (I)(2) of this section.

(3)
A trust that, in whole or part, resides in this state. If only part
of a trust resides in this state, the trust is a resident only with
respect to that part.

For
the purposes of division (I)(3) of this section:

(a)
A trust resides in this state for the trust's current taxable year to
the extent, as described in division (I)(3)(d) of this section, that
the trust consists directly or indirectly, in whole or in part, of
assets, net of any related liabilities, that were transferred, or
caused to be transferred, directly or indirectly, to the trust by any
of the following:

(i)
A person, a court, or a governmental entity or instrumentality on
account of the death of a decedent, but only if the trust is
described in division (I)(3)(e)(i) or (ii) of this section;

(ii)
A person who was domiciled in this state for the purposes of this
chapter when the person directly or indirectly transferred assets to
an irrevocable trust, but only if at least one of the trust's
qualifying beneficiaries is domiciled in this state for the purposes
of this chapter during all or some portion of the trust's current
taxable year;

(iii)
A person who was domiciled in this state for the purposes of this
chapter when the trust document or instrument or part of the trust
document or instrument became irrevocable, but only if at least one
of the trust's qualifying beneficiaries is a resident domiciled in
this state for the purposes of this chapter during all or some
portion of the trust's current taxable year. If a trust document or
instrument became irrevocable upon the death of a person who at the
time of death was domiciled in this state for purposes of this
chapter, that person is a person described in division (I)(3)(a)(iii)
of this section.

(b)
A trust is irrevocable to the extent that the transferor is not
considered to be the owner of the net assets of the trust under
sections 671 to 678 of the Internal Revenue Code.

(c)
With respect to a trust other than a charitable lead trust,
"qualifying beneficiary" has the same meaning as "potential
current beneficiary" as defined in section 1361(e)(2) of the
Internal Revenue Code, and with respect to a charitable lead trust
"qualifying beneficiary" is any current, future, or
contingent beneficiary, but with respect to any trust "qualifying
beneficiary" excludes a person or a governmental entity or
instrumentality to any of which a contribution would qualify for the
charitable deduction under section 170 of the Internal Revenue Code.

(d)
For the purposes of division (I)(3)(a) of this section, the extent to
which a trust consists directly or indirectly, in whole or in part,
of assets, net of any related liabilities, that were transferred
directly or indirectly, in whole or part, to the trust by any of the
sources enumerated in that division shall be ascertained by
multiplying the fair market value of the trust's assets, net of
related liabilities, by the qualifying ratio, which shall be computed
as follows:

(i)
The first time the trust receives assets, the numerator of the
qualifying ratio is the fair market value of those assets at that
time, net of any related liabilities, from sources enumerated in
division (I)(3)(a) of this section. The denominator of the qualifying
ratio is the fair market value of all the trust's assets at that
time, net of any related liabilities.

(ii)
Each subsequent time the trust receives assets, a revised qualifying
ratio shall be computed. The numerator of the revised qualifying
ratio is the sum of (1) the fair market value of the trust's assets
immediately prior to the subsequent transfer, net of any related
liabilities, multiplied by the qualifying ratio last computed without
regard to the subsequent transfer, and (2) the fair market value of
the subsequently transferred assets at the time transferred, net of
any related liabilities, from sources enumerated in division
(I)(3)(a) of this section. The denominator of the revised qualifying
ratio is the fair market value of all the trust's assets immediately
after the subsequent transfer, net of any related liabilities.

(iii)
Whether a transfer to the trust is by or from any of the sources
enumerated in division (I)(3)(a) of this section shall be ascertained
without regard to the domicile of the trust's beneficiaries.

(e)
For the purposes of division (I)(3)(a)(i) of this section:

(i)
A trust is described in division (I)(3)(e)(i) of this section if the
trust is a testamentary trust and the testator of that testamentary
trust was domiciled in this state at the time of the testator's death
for purposes of the taxes levied under Chapter 5731. of the Revised
Code.

(ii)
A trust is described in division (I)(3)(e)(ii) of this section if the
transfer is a qualifying transfer described in any of divisions
(I)(3)(f)(i) to (vi) of this section, the trust is an irrevocable
inter vivos trust, and at least one of the trust's qualifying
beneficiaries is domiciled in this state for purposes of this chapter
during all or some portion of the trust's current taxable year.

(f)
For the purposes of division (I)(3)(e)(ii) of this section, a
"qualifying transfer" is a transfer of assets, net of any
related liabilities, directly or indirectly to a trust, if the
transfer is described in any of the following:

(i)
The transfer is made to a trust, created by the decedent before the
decedent's death and while the decedent was domiciled in this state
for the purposes of this chapter, and, prior to the death of the
decedent, the trust became irrevocable while the decedent was
domiciled in this state for the purposes of this chapter.

(ii)
The transfer is made to a trust to which the decedent, prior to the
decedent's death, had directly or indirectly transferred assets, net
of any related liabilities, while the decedent was domiciled in this
state for the purposes of this chapter, and prior to the death of the
decedent the trust became irrevocable while the decedent was
domiciled in this state for the purposes of this chapter.

(iii)
The transfer is made on account of a contractual relationship
existing directly or indirectly between the transferor and either the
decedent or the estate of the decedent at any time prior to the date
of the decedent's death, and the decedent was domiciled in this state
at the time of death for purposes of the taxes levied under Chapter
5731. of the Revised Code.

(iv)
The transfer is made to a trust on account of a contractual
relationship existing directly or indirectly between the transferor
and another person who at the time of the decedent's death was
domiciled in this state for purposes of this chapter.

(v)
The transfer is made to a trust on account of the will of a testator
who was domiciled in this state at the time of the testator's death
for purposes of the taxes levied under Chapter 5731. of the Revised
Code.

(vi)
The transfer is made to a trust created by or caused to be created by
a court, and the trust was directly or indirectly created in
connection with or as a result of the death of an individual who, for
purposes of the taxes levied under Chapter 5731. of the Revised Code,
was domiciled in this state at the time of the individual's death.

(g)
The tax commissioner may adopt rules to ascertain the part of a trust
residing in this state.

(J)
"Nonresident" means an individual or estate that is not a
resident. An individual who is a resident for only part of a taxable
year is a nonresident for the remainder of that taxable year.

(K)
"Pass-through entity" has the same meaning as in section
5733.04 of the Revised Code.

(L)
"Return" means the notifications and reports required to be
filed pursuant to this chapter for the purpose of reporting the tax
due and includes declarations of estimated tax when so required.

(M)
"Taxable year" means the calendar year or the taxpayer's
fiscal year ending during the calendar year, or fractional part
thereof, upon which the adjusted gross income is calculated pursuant
to this chapter.

(N)
"Taxpayer" means any person subject to the tax imposed by
section 5747.02 of the Revised Code or any pass-through entity that
makes the election under division (D) of section 5747.08 of the
Revised Code.

(O)
"Dependents" means dependents as defined in the Internal
Revenue Code.

(P)
"Principal county of employment" means, in the case of a
nonresident, the county within the state in which a taxpayer performs
services for an employer or, if those services are performed in more
than one county, the county in which the major portion of the
services are performed.

(Q)
As used in sections 5747.50 to 5747.55 of the Revised Code:

(1)
"Subdivision" means any county, municipal corporation, park
district, or township.

(2)
"Essential local government purposes" includes all
functions that any subdivision is required by general law to
exercise, including like functions that are exercised under a charter
adopted pursuant to the Ohio Constitution.

(R)
"Overpayment" means any amount already paid that exceeds
the figure determined to be the correct amount of the tax.

(S)
"Taxable income" or "Ohio taxable income" applies
only to estates and trusts, and means federal taxable income, as
defined and used in the Internal Revenue Code, adjusted as follows:

(1)
Add interest or dividends, net of ordinary, necessary, and reasonable
expenses not deducted in computing federal taxable income, on
obligations or securities of any state or of any political
subdivision or authority of any state, other than this state and its
subdivisions and authorities, but only to the extent that such net
amount is not otherwise includible in Ohio taxable income and is
described in either division (S)(1)(a) or (b) of this section:

(a)
The net amount is not attributable to the S portion of an electing
small business trust and has not been distributed to beneficiaries
for the taxable year;

(b)
The net amount is attributable to the S portion of an electing small
business trust for the taxable year.

(2)
Add interest or dividends, net of ordinary, necessary, and reasonable
expenses not deducted in computing federal taxable income, on
obligations of any authority, commission, instrumentality, territory,
or possession of the United States to the extent that the interest or
dividends are exempt from federal income taxes but not from state
income taxes, but only to the extent that such net amount is not
otherwise includible in Ohio taxable income and is described in
either division (S)(1)(a) or (b) of this section;

(3)
Add the amount of personal exemption allowed to the estate pursuant
to section 642(b) of the Internal Revenue Code;

(4)
Deduct interest or dividends, net of related expenses deducted in
computing federal taxable income, on obligations of the United States
and its territories and possessions or of any authority, commission,
or instrumentality of the United States to the extent that the
interest or dividends are exempt from state taxes under the laws of
the United States, but only to the extent that such amount is
included in federal taxable income and is described in either
division (S)(1)(a) or (b) of this section;

(5)
Deduct the amount of wages and salaries, if any, not otherwise
allowable as a deduction but that would have been allowable as a
deduction in computing federal taxable income for the taxable year,
had the work opportunity tax credit allowed under sections 38, 51,
and 52 of the Internal Revenue Code not been in effect, but only to
the extent such amount relates either to income included in federal
taxable income for the taxable year or to income of the S portion of
an electing small business trust for the taxable year;

(6)
Deduct any interest or interest equivalent, net of related expenses
deducted in computing federal taxable income, on public obligations
and purchase obligations, but only to the extent that such net amount
relates either to income included in federal taxable income for the
taxable year or to income of the S portion of an electing small
business trust for the taxable year;

(7)
Add any loss or deduct any gain resulting from sale, exchange, or
other disposition of public obligations to the extent that such loss
has been deducted or such gain has been included in computing either
federal taxable income or income of the S portion of an electing
small business trust for the taxable year;

(8)
Except in the case of the final return of an estate, add any amount
deducted by the taxpayer on both its Ohio estate tax return pursuant
to section 5731.14 of the Revised Code, and on its federal income tax
return in determining federal taxable income;

(9)(a)
Deduct any amount included in federal taxable income solely because
the amount represents a reimbursement or refund of expenses that in a
previous year the decedent had deducted as an itemized deduction
pursuant to section 63 of the Internal Revenue Code and applicable
treasury regulations. The deduction otherwise allowed under division
(S)(9)(a) of this section shall be reduced to the extent the
reimbursement is attributable to an amount the taxpayer or decedent
deducted under this section in any taxable year.

(b)
Add any amount not otherwise included in Ohio taxable income for any
taxable year to the extent that the amount is attributable to the
recovery during the taxable year of any amount deducted or excluded
in computing federal or Ohio taxable income in any taxable year, but
only to the extent such amount has not been distributed to
beneficiaries for the taxable year.

(10)
Deduct any portion of the deduction described in section 1341(a)(2)
of the Internal Revenue Code, for repaying previously reported income
received under a claim of right, that meets both of the following
requirements:

(a)
It is allowable for repayment of an item that was included in the
taxpayer's taxable income or the decedent's adjusted gross income for
a prior taxable year and did not qualify for a credit under division
(A) or (B) of section 5747.05 of the Revised Code for that year.

(b)
It does not otherwise reduce the taxpayer's taxable income or the
decedent's adjusted gross income for the current or any other taxable
year.

(11)
Add any amount claimed as a credit under section 5747.059 of the
Revised Code to the extent that the amount satisfies either of the
following:

(a)
The amount was deducted or excluded from the computation of the
taxpayer's federal taxable income as required to be reported for the
taxpayer's taxable year under the Internal Revenue Code;

(b)
The amount resulted in a reduction in the taxpayer's federal taxable
income as required to be reported for any of the taxpayer's taxable
years under the Internal Revenue Code.

(12)
Deduct any amount, net of related expenses deducted in computing
federal taxable income, that a trust is required to report as farm
income on its federal income tax return, but only if the assets of
the trust include at least ten acres of land satisfying the
definition of "land devoted exclusively to agricultural use"
under section 5713.30 of the Revised Code, regardless of whether the
land is valued for tax purposes as such land under sections 5713.30
to 5713.38 of the Revised Code. If the trust is a pass-through entity
investor, section 5747.231 of the Revised Code applies in
ascertaining if the trust is eligible to claim the deduction provided
by division (S)(12) of this section in connection with the
pass-through entity's farm income.

Except
for farm income attributable to the S portion of an electing small
business trust, the deduction provided by division (S)(12) of this
section is allowed only to the extent that the trust has not
distributed such farm income.

(13)
Add the net amount of income described in section 641(c) of the
Internal Revenue Code to the extent that amount is not included in
federal taxable income.

(14)
Add or deduct the amount the taxpayer would be required to add or
deduct under division (A)(17) or (18) of this section if the
taxpayer's Ohio taxable income was computed in the same manner as an
individual's Ohio adjusted gross income is computed under this
section.

(15)
Add, to the extent not otherwise included in computing taxable income
or Ohio taxable income for any taxable year, the taxpayer's
proportionate share of the amount of the tax levied under section
5747.38 of the Revised Code and paid by an electing pass-through
entity for the taxable year.

(16)
Add any income taxes deducted in computing federal taxable income or
Ohio taxable income to the extent the income taxes were derived from
income subject to a tax levied in another state or the District of
Columbia when such tax was enacted for purposes of complying with
internal revenue service notice 2020-75.

(T)
"School district income" and "school district income
tax" have the same meanings as in section 5748.01 of the Revised
Code.

(U)
As used in divisions (A)(7), (A)(8), (S)(6), and (S)(7) of this
section, "public obligations," "purchase obligations,"
and "interest or interest equivalent" have the same
meanings as in section 5709.76 of the Revised Code.

(V)
"Limited liability company" means any limited liability
company formed under former Chapter 1705. of the Revised Code as that
chapter existed prior to February 11, 2022, Chapter 1706. of the
Revised Code, or the laws of any other state.

(W)
"Pass-through entity investor" means any person who, during
any portion of a taxable year of a pass-through entity, is a partner,
member, shareholder, or equity investor in that pass-through entity.

(X)
"Banking day" has the same meaning as in section 1304.01 of
the Revised Code.

(Y)
"Month" means a calendar month.

(Z)
"Quarter" means the first three months, the second three
months, the third three months, or the last three months of the
taxpayer's taxable year.

(AA)(1)
"Modified business income" means the business income
included in a trust's Ohio taxable income after such taxable income
is first reduced by the qualifying trust amount, if any.

(2)
"Qualifying trust amount" of a trust means capital gains
and losses from the sale, exchange, or other disposition of equity or
ownership interests in, or debt obligations of, a qualifying investee
to the extent included in the trust's Ohio taxable income, but only
if the following requirements are satisfied:

(a)
The book value of the qualifying investee's physical assets in this
state and everywhere, as of the last day of the qualifying investee's
fiscal or calendar year ending immediately prior to the date on which
the trust recognizes the gain or loss, is available to the trust.

(b)
The requirements of section 5747.011 of the Revised Code are
satisfied for the trust's taxable year in which the trust recognizes
the gain or loss.

Any
gain or loss that is not a qualifying trust amount is modified
business income, qualifying investment income, or modified
nonbusiness income, as the case may be.

(3)
"Modified nonbusiness income" means a trust's Ohio taxable
income other than modified business income, other than the qualifying
trust amount, and other than qualifying investment income, as defined
in section 5747.012 of the Revised Code, to the extent such
qualifying investment income is not otherwise part of modified
business income.

(4)
"Modified Ohio taxable income" applies only to trusts, and
means the sum of the amounts described in divisions (AA)(4)(a) to (c)
of this section:

(a)
The fraction, calculated under section 5747.013, and applying section
5747.231 of the Revised Code, multiplied by the sum of the following
amounts:

(i)
The trust's modified business income;

(ii)
The trust's qualifying investment income, as defined in section
5747.012 of the Revised Code, but only to the extent the qualifying
investment income does not otherwise constitute modified business
income and does not otherwise constitute a qualifying trust amount.

(b)
The qualifying trust amount multiplied by a fraction, the numerator
of which is the sum of the book value of the qualifying investee's
physical assets in this state on the last day of the qualifying
investee's fiscal or calendar year ending immediately prior to the
day on which the trust recognizes the qualifying trust amount, and
the denominator of which is the sum of the book value of the
qualifying investee's total physical assets everywhere on the last
day of the qualifying investee's fiscal or calendar year ending
immediately prior to the day on which the trust recognizes the
qualifying trust amount. If, for a taxable year, the trust recognizes
a qualifying trust amount with respect to more than one qualifying
investee, the amount described in division (AA)(4)(b) of this section
shall equal the sum of the products so computed for each such
qualifying investee.

(c)(i)
With respect to a trust or portion of a trust that is a resident as
ascertained in accordance with division (I)(3)(d) of this section,
its modified nonbusiness income.

(ii)
With respect to a trust or portion of a trust that is not a resident
as ascertained in accordance with division (I)(3)(d) of this section,
the amount of its modified nonbusiness income satisfying the
descriptions in divisions (B)(2) to (5) of section 5747.20 of the
Revised Code, except as otherwise provided in division (AA)(4)(c)(ii)
of this section. With respect to a trust or portion of a trust that
is not a resident as ascertained in accordance with division
(I)(3)(d) of this section, the trust's portion of modified
nonbusiness income recognized from the sale, exchange, or other
disposition of a debt interest in or equity interest in a section
5747.212 entity, as defined in section 5747.212 of the Revised Code,
without regard to division (A) of that section, shall not be
allocated to this state in accordance with section 5747.20 of the
Revised Code but shall be apportioned to this state in accordance
with division (B) of section 5747.212 of the Revised Code without
regard to division (A) of that section.

If
the allocation and apportionment of a trust's income under divisions
(AA)(4)(a) and (c) of this section do not fairly represent the
modified Ohio taxable income of the trust in this state, the
alternative methods described in division (C) of section 5747.21 of
the Revised Code may be applied in the manner and to the same extent
provided in that section.

(5)(a)
Except as set forth in division (AA)(5)(b) of this section,
"qualifying investee" means a person in which a trust has
an equity or ownership interest, or a person or unit of government
the debt obligations of either of which are owned by a trust. For the
purposes of division (AA)(2)(a) of this section and for the purpose
of computing the fraction described in division (AA)(4)(b) of this
section, all of the following apply:

(i)
If the qualifying investee is a member of a qualifying controlled
group on the last day of the qualifying investee's fiscal or calendar
year ending immediately prior to the date on which the trust
recognizes the gain or loss, then "qualifying investee"
includes all persons in the qualifying controlled group on such last
day.

(ii)
If the qualifying investee, or if the qualifying investee and any
members of the qualifying controlled group of which the qualifying
investee is a member on the last day of the qualifying investee's
fiscal or calendar year ending immediately prior to the date on which
the trust recognizes the gain or loss, separately or cumulatively
own, directly or indirectly, on the last day of the qualifying
investee's fiscal or calendar year ending immediately prior to the
date on which the trust recognizes the qualifying trust amount, more
than fifty per cent of the equity of a pass-through entity, then the
qualifying investee and the other members are deemed to own the
proportionate share of the pass-through entity's physical assets
which the pass-through entity directly or indirectly owns on the last
day of the pass-through entity's calendar or fiscal year ending
within or with the last day of the qualifying investee's fiscal or
calendar year ending immediately prior to the date on which the trust
recognizes the qualifying trust amount.

(iii)
For the purposes of division (AA)(5)(a)(iii) of this section, "upper
level pass-through entity" means a pass-through entity directly
or indirectly owning any equity of another pass-through entity, and
"lower level pass-through entity" means that other
pass-through entity.

An
upper level pass-through entity, whether or not it is also a
qualifying investee, is deemed to own, on the last day of the upper
level pass-through entity's calendar or fiscal year, the
proportionate share of the lower level pass-through entity's physical
assets that the lower level pass-through entity directly or
indirectly owns on the last day of the lower level pass-through
entity's calendar or fiscal year ending within or with the last day
of the upper level pass-through entity's fiscal or calendar year. If
the upper level pass-through entity directly and indirectly owns less
than fifty per cent of the equity of the lower level pass-through
entity on each day of the upper level pass-through entity's calendar
or fiscal year in which or with which ends the calendar or fiscal
year of the lower level pass-through entity and if, based upon clear
and convincing evidence, complete information about the location and
cost of the physical assets of the lower pass-through entity is not
available to the upper level pass-through entity, then solely for
purposes of ascertaining if a gain or loss constitutes a qualifying
trust amount, the upper level pass-through entity shall be deemed as
owning no equity of the lower level pass-through entity for each day
during the upper level pass-through entity's calendar or fiscal year
in which or with which ends the lower level pass-through entity's
calendar or fiscal year. Nothing in division (AA)(5)(a)(iii) of this
section shall be construed to provide for any deduction or exclusion
in computing any trust's Ohio taxable income.

(b)
With respect to a trust that is not a resident for the taxable year
and with respect to a part of a trust that is not a resident for the
taxable year, "qualifying investee" for that taxable year
does not include a C corporation if both of the following apply:

(i)
During the taxable year the trust or part of the trust recognizes a
gain or loss from the sale, exchange, or other disposition of equity
or ownership interests in, or debt obligations of, the C corporation.

(ii)
Such gain or loss constitutes nonbusiness income.

(6)
"Available" means information is such that a person is able
to learn of the information by the due date plus extensions, if any,
for filing the return for the taxable year in which the trust
recognizes the gain or loss.

(BB)
"Qualifying controlled group" has the same meaning as in
section 5733.04 of the Revised Code.

(CC)
"Related member" has the same meaning as in section
5733.042 of the Revised Code.

(DD)(1)
For the purposes of division (DD) of this section:

(a)
"Qualifying person" means any person other than a
qualifying corporation.

(b)
"Qualifying corporation" means any person classified for
federal income tax purposes as an association taxable as a
corporation, except either of the following:

(i)
A corporation that has made an election under subchapter S, chapter
one, subtitle A, of the Internal Revenue Code for its taxable year
ending within, or on the last day of, the investor's taxable year;

(ii)
A subsidiary that is wholly owned by any corporation that has made an
election under subchapter S, chapter one, subtitle A of the Internal
Revenue Code for its taxable year ending within, or on the last day
of, the investor's taxable year.

(2)
For the purposes of this chapter, unless expressly stated otherwise,
no qualifying person indirectly owns any asset directly or indirectly
owned by any qualifying corporation.

(EE)
For purposes of this chapter and Chapter 5751. of the Revised Code:

(1)
"Trust" does not include a qualified pre-income tax trust.

(2)
A "qualified pre-income tax trust" is any pre-income tax
trust that makes a qualifying pre-income tax trust election as
described in division (EE)(3) of this section.

(3)
A "qualifying pre-income tax trust election" is an election
by a pre-income tax trust to subject to the tax imposed by section
5751.02 of the Revised Code the pre-income tax trust and all
pass-through entities of which the trust owns or controls, directly,
indirectly, or constructively through related interests, five per
cent or more of the ownership or equity interests. The trustee shall
notify the tax commissioner in writing of the election on or before
April 15, 2006. The election, if timely made, shall be effective on
and after January 1, 2006, and shall apply for all tax periods and
tax years until revoked by the trustee of the trust.

(4)
A "pre-income tax trust" is a trust that satisfies all of
the following requirements:

(a)
The document or instrument creating the trust was executed by the
grantor before January 1, 1972;

(b)
The trust became irrevocable upon the creation of the trust; and

(c)
The grantor was domiciled in this state at the time the trust was
created.

(FF)
"Uniformed services" means all of the following:

(1)
"Armed forces of the United States" as defined in section
5907.01 of the Revised Code;

(2)
The commissioned corps of the national oceanic and atmospheric
administration;

(3)
The commissioned corps of the public health service.

(GG)
"Taxable business income" means the amount by which an
individual's business income that is included in federal adjusted
gross income exceeds the amount of business income the individual is
authorized to deduct under division (A)(28) of this section for the
taxable year.

(HH)
"Employer" does not include a franchisor with respect to
the franchisor's relationship with a franchisee or an employee of a
franchisee, unless the franchisor agrees to assume that role in
writing or a court of competent jurisdiction determines that the
franchisor exercises a type or degree of control over the franchisee
or the franchisee's employees that is not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademark,
brand, or both. For purposes of this division, "franchisor"
and "franchisee" have the same meanings as in 16 C.F.R.
436.1.

(II)
"Modified adjusted gross income" means Ohio adjusted gross
income plus any amount deducted under divisions (A)(28) and (34) of
this section for the taxable year.

(JJ)
"Qualifying Ohio educator" means an individual who, for a
taxable year, qualifies as an eligible educator, as that term is
defined in section 62 of the Internal Revenue Code, and who holds a
certificate, license, or permit described in Chapter 3319. or section
3301.071 of the Revised Code.

(KK)
"Professional employer organization," "professional
employer organization agreement," and "professional
employer organization reporting entity" have the same meanings
as in section 4125.01 of the Revised Code.

(LL)
"Alternate employer organization" and "alternate
employer organization agreement" have the same meanings as in
section 4133.01 of the Revised Code.

(MM)
"Casino gaming" has the same meaning as in section 3772.01
of the Revised Code, "lottery sports gaming" has the same
meaning as in section 3770.23 of the Revised Code, "sports
gaming" has the same meaning as in section 3775.01 of the
Revised Code, and "video lottery terminal" has the same
meaning as in section 3770.21 of the Revised Code.

(NN)
"Employee" does not include a health care worker, with
respect to a health care worker platform or health care facility for
work booked through a health care worker platform, in accordance with
section 4113.87 of the Revised Code.

Section
2.
That
existing sections 4111.03, 4111.14, 4113.15, 4121.01, 4123.01,
4141.01, and 5747.01 of the Revised Code are hereby repealed.