Ohio § 4123.35

Full text of Ohio Ohio Revised Code § 4123.35, with citation guidance and answers to common questions.

§ 4123.35.

(A) Except as provided in this section, and until the policy year commencing July 1,

2015, every private employer and every publicly owned utility shall pay semiannually

in the months of January and July into the state insurance fund the amount of annual

premium the administrator of workers' compensation fixes for the employment or occupation

of the employer, the amount of which premium to be paid by each employer to be determined

by the classifications, rules, and rates made and published by the administrator.  The employer shall pay semiannually a further sum of money into the state insurance

fund as may be ascertained to be due from the employer by applying the rules of the

administrator. Except as otherwise provided in this section, for a policy year commencing on or after

July 1, 2015, every private employer and every publicly owned utility shall pay annually

in the month of June immediately preceding the policy year into the state insurance

fund the amount of estimated annual premium the administrator fixes for the employment

or occupation of the employer, the amount of which estimated premium to be paid by

each employer to be determined by the classifications, rules, and rates made and published

by the administrator.  The employer shall pay a further sum of money into the state insurance fund as may

be ascertained to be due from the employer by applying the rules of the administrator.  Upon receipt of the payroll report required by division (B) of section 4123.26 of the Revised Code , the administrator shall adjust the premium and assessments charged to each employer

for the difference between estimated gross payrolls and actual gross payrolls, and

any balance due to the administrator shall be immediately paid by the employer.  Any balance due the employer shall be credited to the employer's account. For a policy year commencing on or after July 1, 2015, each employer that is recognized

by the administrator as a professional employer organization or alternate employer

organization shall pay monthly into the state insurance fund the amount of premium

the administrator fixes for the employer for the prior month based on the actual payroll

of the employer reported pursuant to division (C) of section 4123.26 of the Revised Code . A receipt certifying that payment has been made shall be issued to the employer by

the bureau of workers' compensation.  The receipt is prima-facie evidence of the payment of the premium.  The administrator shall provide each employer written proof of workers' compensation

coverage as is required in section 4123.83 of the Revised Code .  Proper posting of the notice constitutes the employer's compliance with the notice

requirement mandated in section 4123.83 of the Revised Code . The bureau shall verify with the secretary of state the existence of all corporations

and organizations making application for workers' compensation coverage and shall

require every such application to include the employer's federal identification number. A private employer who has contracted with a subcontractor is liable for the unpaid

premium due from any subcontractor with respect to that part of the payroll of the

subcontractor that is for work performed pursuant to the contract with the employer. Division (A) of this section providing for the payment of premiums semiannually does

not apply to any employer who was a subscriber to the state insurance fund prior to

January 1, 1914, or, until July 1, 2015, who may first become a subscriber to the

fund in any month other than January or July.  Instead, the semiannual premiums shall be paid by those employers from time to time

upon the expiration of the respective periods for which payments into the fund have

been made by them.  After July 1, 2015, an employer who first becomes a subscriber to the fund on any

day other than the first day of July shall pay premiums according to rules adopted

by the administrator, with the advice and consent of the bureau of workers' compensation

board of directors, for the remainder of the policy year for which the coverage is

effective. The administrator, with the advice and consent of the board, shall adopt rules to

permit employers to make periodic payments of the premium and assessment due under

this division.  The rules shall include provisions for the assessment of interest charges, where

appropriate, and for the assessment of penalties when an employer fails to make timely

premium payments.  The administrator, in the rules the administrator adopts, may set an administrative

fee for these periodic payments.  An employer who timely pays the amounts due under this division is entitled to all

of the benefits and protections of this chapter.  Upon receipt of payment, the bureau shall issue a receipt to the employer certifying

that payment has been made, which receipt is prima-facie evidence of payment.  Workers' compensation coverage under this chapter continues uninterrupted upon timely

receipt of payment under this division. Every public employer, except public employers that are self-insuring employers under

this section, shall comply with sections 4123.38 to 4123.41 , and 4123.48 of the Revised Code in regard to the contribution of moneys to the public insurance fund. (B) Employers who will abide by the rules of the administrator and who may be of sufficient

financial ability to render certain the payment of compensation to injured employees

or the dependents of killed employees, and the furnishing of medical, surgical, nursing,

and hospital attention and services and medicines, and funeral expenses, equal to

or greater than is provided for in sections 4123.52 , 4123.55 to 4123.62 , and 4123.64 to 4123.67 of the Revised Code , and who do not desire to insure the payment thereof or indemnify themselves against

loss sustained by the direct payment thereof, upon a finding of such facts by the

administrator, may be granted the privilege to pay individually compensation, and

furnish medical, surgical, nursing, and hospital services and attention and funeral

expenses directly to injured employees or the dependents of killed employees, thereby

being granted status as a self-insuring employer.  The administrator may charge employers who apply for the status as a self-insuring

employer a reasonable application fee to cover the bureau's costs in connection with

processing and making a determination with respect to an application. All employers granted status as self-insuring employers shall demonstrate sufficient

financial and administrative ability to assure that all obligations under this section

are promptly met.  The administrator shall deny the privilege where the employer is unable to demonstrate

the employer's ability to promptly meet all the obligations imposed on the employer

by this section. (1) The administrator shall consider, but is not limited to, the following factors, where

applicable, in determining the employer's ability to meet all of the obligations imposed

on the employer by this section: (a) The employer has operated in this state for a minimum of two years, provided that

an employer who has purchased, acquired, or otherwise succeeded to the operation of

a business, or any part thereof, situated in this state that has operated for at least

two years in this state, also shall qualify; (b) Where the employer previously contributed to the state insurance fund or is a successor

employer as defined by bureau rules, the amount of the buyout, as defined by bureau

rules; (c) The sufficiency of the employer's assets located in this state to insure the employer's

solvency in paying compensation directly; (d) The financial records, documents, and data, certified by a certified public accountant,

necessary to provide the employer's full financial disclosure.  The records, documents, and data include, but are not limited to, balance sheets

and profit and loss history for the current year and previous four years. (e) The employer's organizational plan for the administration of the workers' compensation

law; (f) The employer's proposed plan to inform employees of the change from a state fund

insurer to a self-insuring employer, the procedures the employer will follow as a

self-insuring employer, and the employees' rights to compensation and benefits;  and (g) The employer has either an account in a financial institution in this state, or if

the employer maintains an account with a financial institution outside this state,

ensures that workers' compensation checks are drawn from the same account as payroll

checks or the employer clearly indicates that payment will be honored by a financial

institution in this state. The administrator may waive the requirements of division (B)(1)(a) of this section

and the requirement of division (B)(1)(d) of this section that the financial records,

documents, and data be certified by a certified public accountant.  The administrator shall adopt rules establishing the criteria that an employer shall

meet in order for the administrator to waive the requirements of divisions (B)(1)(a)

and (d) of this section.  Such rules may require additional security of that employer pursuant to division (E) of section 4123.351 of the Revised Code . The administrator shall not grant the status of self-insuring employer to the state,

except that the administrator may grant the status of self-insuring employer to a

state institution of higher education, including its hospitals, that meets the requirements

of division (B)(2) of this section. (2) When considering the application of a public employer, except for a board of county

commissioners described in division (G) of section 4123.01 of the Revised Code , a board of a county hospital, or a publicly owned utility, the administrator shall

verify that the public employer satisfies all of the following requirements as the

requirements apply to that public employer: (a) For the two-year period preceding application under this section, the public employer

has maintained an unvoted debt capacity equal to at least two times the amount of

the current annual premium established by the administrator under this chapter for

that public employer for the year immediately preceding the year in which the public

employer makes application under this section. (b) For each of the two fiscal years preceding application under this section, the unreserved

and undesignated year-end fund balance in the public employer's general fund is equal

to at least five per cent of the public employer's general fund revenues for the fiscal

year computed in accordance with generally accepted accounting principles. (c) For the five-year period preceding application under this section, the public employer,

to the extent applicable, has complied fully with the continuing disclosure requirements

established in rules adopted by the United States securities and exchange commission

under 17 C.F.R. 240.15c 2 - 12 . (d) For the five-year period preceding application under this section, the public employer

has not had its local government fund distribution withheld on account of the public

employer being indebted or otherwise obligated to the state. (e) For the five-year period preceding application under this section, the public employer

has not been under a fiscal watch or fiscal emergency pursuant to section 118.023 , 118.04 , or 3316.03 of the Revised Code . (f) For the public employer's fiscal year preceding application under this section, the

public employer has obtained an annual financial audit as required under section 117.10 of the Revised Code , which has been released by the auditor of state within seven months after the end

of the public employer's fiscal year. (g) On the date of application, the public employer holds a debt rating of Aa3 or higher

according to Moody's investors service, inc., or a comparable rating by an independent

rating agency similar to Moody's investors service, inc. (h) The public employer agrees to generate an annual accumulating book reserve in its

financial statements reflecting an actuarially generated reserve adequate to pay projected

claims under this chapter for the applicable period of time, as determined by the

administrator. (i) For a public employer that is a hospital, the public employer shall submit audited

financial statements showing the hospital's overall liquidity characteristics, and

the administrator shall determine, on an individual basis, whether the public employer

satisfies liquidity standards equivalent to the liquidity standards of other public

employers. (j) Any additional criteria that the administrator adopts by rule pursuant to division

(E) of this section. The administrator may adopt rules establishing the criteria that a public employer

shall satisfy in order for the administrator to waive any of the requirements listed

in divisions (B)(2)(a) to (j) of this section.  The rules may require additional security from that employer pursuant to division (E) of section 4123.351 of the Revised Code .  The administrator shall not waive any of the requirements listed in divisions (B)(2)(a)

to (j) of this section for a public employer who does not satisfy the criteria established

in the rules the administrator adopts. (C) A board of county commissioners described in division (G) of section 4123.01 of the Revised Code , as an employer, that will abide by the rules of the administrator and that may be

of sufficient financial ability to render certain the payment of compensation to injured

employees or the dependents of killed employees, and the furnishing of medical, surgical,

nursing, and hospital attention and services and medicines, and funeral expenses,

equal to or greater than is provided for in sections 4123.52 , 4123.55 to 4123.62 , and 4123.64 to 4123.67 of the Revised Code , and that does not desire to insure the payment thereof or indemnify itself against

loss sustained by the direct payment thereof, upon a finding of such facts by the

administrator, may be granted the privilege to pay individually compensation, and

furnish medical, surgical, nursing, and hospital services and attention and funeral

expenses directly to injured employees or the dependents of killed employees, thereby

being granted status as a self-insuring employer.  The administrator may charge a board of county commissioners described in division (G) of section 4123.01 of the Revised Code that applies for the status as a self-insuring employer a reasonable application

fee to cover the bureau's costs in connection with processing and making a determination

with respect to an application.  All employers granted such status shall demonstrate sufficient financial and administrative

ability to assure that all obligations under this section are promptly met.  The administrator shall deny the privilege where the employer is unable to demonstrate

the employer's ability to promptly meet all the obligations imposed on the employer

by this section.  The administrator shall consider, but is not limited to, the following factors,

where applicable, in determining the employer's ability to meet all of the obligations

imposed on the board as an employer by this section: (1) The board has operated in this state for a minimum of two years; (2) Where the board previously contributed to the state insurance fund or is a successor

employer as defined by bureau rules, the amount of the buyout, as defined by bureau

rules; (3) The sufficiency of the board's assets located in this state to insure the board's

solvency in paying compensation directly; (4) The financial records, documents, and data, certified by a certified public accountant,

necessary to provide the board's full financial disclosure.  The records, documents, and data include, but are not limited to, balance sheets

and profit and loss history for the current year and previous four years. (5) The board's organizational plan for the administration of the workers' compensation

law; (6) The board's proposed plan to inform employees of the proposed self-insurance, the

procedures the board will follow as a self-insuring employer, and the employees' rights

to compensation and benefits; (7) The board has either an account in a financial institution in this state, or if the

board maintains an account with a financial institution outside this state, ensures

that workers' compensation checks are drawn from the same account as payroll checks

or the board clearly indicates that payment will be honored by a financial institution

in this state; (8) The board shall provide the administrator a surety bond in an amount equal to one

hundred twenty-five per cent of the projected losses as determined by the administrator. (D) The administrator shall require a surety bond from all self-insuring employers, issued

pursuant to section 4123.351 of the Revised Code , that is sufficient to compel, or secure to injured employees, or to the dependents

of employees killed, the payment of compensation and expenses, which shall in no event

be less than that paid or furnished out of the state insurance fund in similar cases

to injured employees or to dependents of killed employees whose employers contribute

to the fund, except when an employee of the employer, who has suffered the loss of

a hand, arm, foot, leg, or eye prior to the injury for which compensation is to be

paid, and thereafter suffers the loss of any other of the members as the result of

any injury sustained in the course of and arising out of the employee's employment,

the compensation to be paid by the self-insuring employer is limited to the disability

suffered in the subsequent injury, additional compensation, if any, to be paid by

the bureau out of the surplus created by section 4123.34 of the Revised Code . (E) In addition to the requirements of this section, the administrator shall make and

publish rules governing the manner of making application and the nature and extent

of the proof required to justify a finding of fact by the administrator as to granting

the status of a self-insuring employer, which rules shall be general in their application,

one of which rules shall provide that all self-insuring employers shall pay into the

state insurance fund such amounts as are required to be credited to the surplus fund

in division (B) of section 4123.34 of the Revised Code .  The administrator may adopt rules establishing requirements in addition to the requirements

described in division (B)(2) of this section that a public employer shall meet in

order to qualify for self-insuring status. Employers shall secure directly from the bureau central offices application forms

upon which the bureau shall stamp a designating number.  Prior to submission of an application, an employer shall make available to the bureau,

and the bureau shall review, the information described in division (B)(1) of this

section, and public employers shall make available, and the bureau shall review, the

information necessary to verify whether the public employer meets the requirements

listed in division (B)(2) of this section.  An employer shall file the completed application forms with an application fee,

which shall cover the costs of processing the application, as established by the administrator,

by rule, with the bureau at least ninety days prior to the effective date of the employer's

new status as a self-insuring employer.  The application form is not deemed complete until all the required information is

attached thereto.  The bureau shall only accept applications that contain the required information. (F) The bureau shall review completed applications within a reasonable time.  If the bureau determines to grant an employer the status as a self-insuring employer,

the bureau shall issue a statement, containing its findings of fact, that is prepared

by the bureau and signed by the administrator.  If the bureau determines not to grant the status as a self-insuring employer, the

bureau shall notify the employer of the determination and require the employer to

continue to pay its full premium into the state insurance fund.  The administrator also shall adopt rules establishing a minimum level of performance

as a criterion for granting and maintaining the status as a self-insuring employer

and fixing time limits beyond which failure of the self-insuring employer to provide

for the necessary medical examinations and evaluations may not delay a decision on

a claim. (G) The administrator shall adopt rules setting forth procedures for auditing the program

of self-insuring employers.  The bureau shall conduct the audit upon a random basis or whenever the bureau has

grounds for believing that a self-insuring employer is not in full compliance with

bureau rules or this chapter. The administrator shall monitor the programs conducted by self-insuring employers,

to ensure compliance with bureau requirements and for that purpose, shall develop

and issue to self-insuring employers standardized forms for use by the self-insuring

employer in all aspects of the self-insuring employers' direct compensation program

and for reporting of information to the bureau. The bureau shall receive and transmit to the self-insuring employer all complaints

concerning any self-insuring employer.  In the case of a complaint against a self-insuring employer, the administrator shall

handle the complaint through the self-insurance division of the bureau.  The bureau shall maintain a file by employer of all complaints received that relate

to the employer.  The bureau shall evaluate each complaint and take appropriate action. The administrator shall adopt as a rule a prohibition against any self-insuring employer

from harassing, dismissing, or otherwise disciplining any employee making a complaint,

which rule shall provide for a financial penalty to be levied by the administrator

payable by the offending self-insuring employer. (H) For the purpose of making determinations as to whether to grant status as a self-insuring

employer, the administrator may subscribe to and pay for a credit reporting service

that offers financial and other business information about individual employers.  The costs in connection with the bureau's subscription or individual reports from

the service about an applicant may be included in the application fee charged employers

under this section. (I) A self-insuring employer that returns to the state insurance fund as a state fund

employer shall provide the administrator with medical costs and indemnity costs by

claim, and payroll by manual classification and year, and such other information the

administrator may require.  The self-insuring employer shall submit this information by dates and in a format

determined by the administrator.  The administrator shall develop a state fund experience modification factor for

a self-insuring employer that returns to the state insurance fund based in whole or

in part on the employer's self-insured experience and the information submitted. (J) On the first day of July of each year, the administrator shall calculate separately

each self-insuring employer's assessments for the safety and hygiene fund, administrative

costs pursuant to section 4123.342 of the Revised Code , and for the surplus fund under division (B) of section 4123.34 of the Revised Code , on the basis of the paid compensation attributable to the individual self-insuring

employer according to the following calculation: (1) The total assessment against all self-insuring employers as a class for each fund

and for the administrative costs for the year that the assessment is being made, as

determined by the administrator, divided by the total amount of paid compensation

for the previous calendar year attributable to all amenable self-insuring employers; (2) Multiply the quotient in division (J)(1) of this section by the total amount of paid

compensation for the previous calendar year that is attributable to the individual

self-insuring employer for whom the assessment is being determined.  Each self-insuring employer shall pay the assessment that results from this calculation,

unless the assessment resulting from this calculation falls below a minimum assessment,

which minimum assessment the administrator shall determine on the first day of July

of each year with the advice and consent of the bureau of workers' compensation board

of directors, in which event, the self-insuring employer shall pay the minimum assessment. In determining the total amount due for the total assessment against all self-insuring

employers as a class for each fund and the administrative assessment, the administrator

shall reduce proportionately the total for each fund and assessment by the amount

of money in the self-insurance assessment fund as of the date of the computation of

the assessment. The administrator shall calculate the assessment for the portion of the surplus fund

under division (B) of section 4123.34 of the Revised Code that is used for reimbursement to a self-insuring employer under division (H) of section 4123.512 of the Revised Code in the same manner as set forth in divisions (J)(1) and (2) of this section except

that the administrator shall calculate the total assessment for this portion of the

surplus fund only on the basis of those self-insuring employers that retain participation

in reimbursement to the self-insuring employer under division (H) of section 4123.512 of the Revised Code and the individual self-insuring employer's proportion of paid compensation shall

be calculated only for those self-insuring employers who retain participation in reimbursement

to the self-insuring employer under division (H) of section 4123.512 of the Revised Code . An employer who no longer is a self-insuring employer in this state or who no longer

is operating in this state, shall continue to pay assessments for administrative costs

and for the surplus fund under division (B) of section 4123.34 of the Revised Code based upon paid compensation attributable to claims that occurred while the employer

was a self-insuring employer within this state. (K) There is hereby created in the state treasury the self-insurance assessment fund.  All investment earnings of the fund shall be deposited in the fund.  The administrator shall use the money in the self-insurance assessment fund only

for administrative costs as specified in section 4123.341 of the Revised Code . (L) Every self-insuring employer shall certify, in affidavit form subject to the penalty

for perjury, to the bureau the amount of the self-insuring employer's paid compensation

for the previous calendar year.  In reporting paid compensation paid for the previous year, a self-insuring employer

shall exclude from the total amount of paid compensation any reimbursement the self-insuring

employer receives in the previous calendar year from the surplus fund pursuant to section 4123.512 of the Revised Code for any paid compensation.  The self-insuring employer also shall exclude from the paid compensation reported

any amount recovered under section 4123.931 of the Revised Code and any amount that is determined not to have been payable to or on behalf of a claimant

in any final administrative or judicial proceeding.  The self-insuring employer shall exclude such amounts from the paid compensation

reported in the reporting period subsequent to the date the determination is made.  The administrator shall adopt rules, in accordance with Chapter 119. of the Revised

Code, that provide for all of the following: (1) Establishing the date by which self-insuring employers must submit such information

and the amount of the assessments provided for in division (J) of this section for

employers who have been granted self-insuring status within the last calendar year; (2) If an employer fails to pay the assessment when due, the administrator may add a

late fee penalty of not more than five hundred dollars to the assessment plus an additional

penalty amount as follows: (a) For an assessment from sixty-one to ninety days past due, the prime interest rate,

multiplied by the assessment due; (b) For an assessment from ninety-one to one hundred twenty days past due, the prime

interest rate plus two per cent, multiplied by the assessment due; (c) For an assessment from one hundred twenty-one to one hundred fifty days past due,

the prime interest rate plus four per cent, multiplied by the assessment due; (d) For an assessment from one hundred fifty-one to one hundred eighty days past due,

the prime interest rate plus six per cent, multiplied by the assessment due; (e) For an assessment from one hundred eighty-one to two hundred ten days past due, the

prime interest rate plus eight per cent, multiplied by the assessment due; (f) For each additional thirty-day period or portion thereof that an assessment remains

past due after it has remained past due for more than two hundred ten days, the prime

interest rate plus eight per cent, multiplied by the assessment due. (3) An employer may appeal a late fee penalty and penalty assessment to the administrator. For purposes of division (L)(2) of this section, “ prime interest rate ” means the average bank prime rate, and the administrator shall determine the prime

interest rate in the same manner as a county auditor determines the average bank prime

rate under section 929.02 of the Revised Code . The administrator shall include any assessment and penalties that remain unpaid for

previous assessment periods in the calculation and collection of any assessments due

under this division or division (J) of this section. (M) As used in this section, “ paid compensation ” means all amounts paid by a self-insuring employer for living maintenance benefits,

all amounts for compensation paid pursuant to sections 4121.63 , 4121.67 , 4123.56 , 4123.57 , 4123.58 , 4123.59 , 4123.60 , and 4123.64 of the Revised Code , all amounts paid as wages in lieu of such compensation, all amounts paid in lieu

of such compensation under a nonoccupational accident and sickness program fully funded

by the self-insuring employer, and all amounts paid by a self-insuring employer for

a violation of a specific safety standard pursuant to Section 35 of Article II, Ohio Constitution and section 4121.47 of the Revised Code . (N) Should any section of this chapter or Chapter 4121. of the Revised Code providing

for self-insuring employers' assessments based upon compensation paid be declared

unconstitutional by a final decision of any court, then that section of the Revised

Code declared unconstitutional shall revert back to the section in existence prior

to November 3, 1989, providing for assessments based upon payroll. (O) The administrator may grant a self-insuring employer the privilege to self-insure

a construction project entered into by the self-insuring employer that is scheduled

for completion within six years after the date the project begins, and the total cost

of which is estimated to exceed one hundred million dollars or, for employers described

in division (R) of this section, if the construction project is estimated to exceed

twenty-five million dollars.  The administrator may waive such cost and time criteria and grant a self-insuring

employer the privilege to self-insure a construction project regardless of the time

needed to complete the construction project and provided that the cost of the construction

project is estimated to exceed fifty million dollars.  A self-insuring employer who desires to self-insure a construction project shall

submit to the administrator an application listing the dates the construction project

is scheduled to begin and end, the estimated cost of the construction project, the

contractors and subcontractors whose employees are to be self-insured by the self-insuring

employer, the provisions of a safety program that is specifically designed for the

construction project, and a statement as to whether a collective bargaining agreement

governing the rights, duties, and obligations of each of the parties to the agreement

with respect to the construction project exists between the self-insuring employer

and a labor organization. A self-insuring employer may apply to self-insure the employees of either of the following: (1) All contractors and subcontractors who perform labor or work or provide materials

for the construction project; (2) All contractors and, at the administrator's discretion, a substantial number of all

the subcontractors who perform labor or work or provide materials for the construction

project. Upon approval of the application, the administrator shall mail a certificate granting

the privilege to self-insure the construction project to the self-insuring employer.  The certificate shall contain the name of the self-insuring employer and the name,

address, and telephone number of the self-insuring employer's representatives who

are responsible for administering workers' compensation claims for the construction

project.  The self-insuring employer shall post the certificate in a conspicuous place at

the site of the construction project. The administrator shall maintain a record of the contractors and subcontractors whose

employees are covered under the certificate issued to the self-insured employer.  A self-insuring employer immediately shall notify the administrator when any contractor

or subcontractor is added or eliminated from inclusion under the certificate. Upon approval of the application, the self-insuring employer is responsible for the

administration and payment of all claims under this chapter and Chapter 4121. of the

Revised Code for the employees of the contractor and subcontractors covered under

the certificate who receive injuries or are killed in the course of and arising out

of employment on the construction project, or who contract an occupational disease

in the course of employment on the construction project.  For purposes of this chapter and Chapter 4121. of the Revised Code, a claim that

is administered and paid in accordance with this division is considered a claim against

the self-insuring employer listed in the certificate.  A contractor or subcontractor included under the certificate shall report to the

self-insuring employer listed in the certificate, all claims that arise under this

chapter and Chapter 4121. of the Revised Code in connection with the construction

project for which the certificate is issued. A self-insuring employer who complies with this division is entitled to the protections

provided under this chapter and Chapter 4121. of the Revised Code with respect to

the employees of the contractors and subcontractors covered under a certificate issued

under this division for death or injuries that arise out of, or death, injuries, or

occupational diseases that arise in the course of, those employees' employment on

that construction project, as if the employees were employees of the self-insuring

employer, provided that the self-insuring employer also complies with this section.  No employee of the contractors and subcontractors covered under a certificate issued

under this division shall be considered the employee of the self-insuring employer

listed in that certificate for any purposes other than this chapter and Chapter 4121.

of the Revised Code.  Nothing in this division gives a self-insuring employer authority to control the

means, manner, or method of employment of the employees of the contractors and subcontractors

covered under a certificate issued under this division. The contractors and subcontractors included under a certificate issued under this

division are entitled to the protections provided under this chapter and Chapter 4121.

of the Revised Code with respect to the contractor's or subcontractor's employees

who are employed on the construction project which is the subject of the certificate,

for death or injuries that arise out of, or death, injuries, or occupational diseases

that arise in the course of, those employees' employment on that construction project. The contractors and subcontractors included under a certificate issued under this

division shall identify in their payroll records the employees who are considered

the employees of the self-insuring employer listed in that certificate for purposes

of this chapter and Chapter 4121. of the Revised Code, and the amount that those employees

earned for employment on the construction project that is the subject of that certificate.  Notwithstanding any provision to the contrary under this chapter and Chapter 4121.

of the Revised Code, the administrator shall exclude the payroll that is reported

for employees who are considered the employees of the self-insuring employer listed

in that certificate, and that the employees earned for employment on the construction

project that is the subject of that certificate, when determining those contractors'

or subcontractors' premiums or assessments required under this chapter and Chapter

4121. of the Revised Code.  A self-insuring employer issued a certificate under this division shall include

in the amount of paid compensation it reports pursuant to division (L) of this section,

the amount of paid compensation the self-insuring employer paid pursuant to this division

for the previous calendar year. Nothing in this division shall be construed as altering the rights of employees under

this chapter and Chapter 4121. of the Revised Code as those rights existed prior to

September 17, 1996.  Nothing in this division shall be construed as altering the rights devolved under sections 2305.31 and 4123.82 of the Revised Code as those rights existed prior to September 17, 1996. As used in this division, “ privilege to self-insure a construction project ” means privilege to pay individually compensation, and to furnish medical, surgical,

nursing, and hospital services and attention and funeral expenses directly to injured

employees or the dependents of killed employees. (P) A self-insuring employer whose application is granted under division (O) of this

section shall designate a safety professional to be responsible for the administration

and enforcement of the safety program that is specifically designed for the construction

project that is the subject of the application. A self-insuring employer whose application is granted under division (O) of this section

shall employ an ombudsperson for the construction project that is the subject of the

application.  The ombudsperson shall have experience in workers' compensation or the construction

industry, or both.  The ombudsperson shall perform all of the following duties: (1) Communicate with and provide information to employees who are injured in the course

of, or whose injury arises out of employment on the construction project, or who contract

an occupational disease in the course of employment on the construction project; (2) Investigate the status of a claim upon the request of an employee to do so; (3) Provide information to claimants, third party administrators, employers, and other

persons to assist those persons in protecting their rights under this chapter and

Chapter 4121. of the Revised Code. A self-insuring employer whose application is granted under division (O) of this section

shall post the name of the safety professional and the ombudsperson and instructions

for contacting the safety professional and the ombudsperson in a conspicuous place

at the site of the construction project. (Q) The administrator may consider all of the following when deciding whether to grant

a self-insuring employer the privilege to self-insure a construction project as provided

under division (O) of this section: (1) Whether the self-insuring employer has an organizational plan for the administration

of the workers' compensation law; (2) Whether the safety program that is specifically designed for the construction project

provides for the safety of employees employed on the construction project, is applicable

to all contractors and subcontractors who perform labor or work or provide materials

for the construction project, and has as a component, a safety training program that

complies with standards adopted pursuant to the “Occupational Safety and Health Act

of 1970,” 84 Stat. 1590, 29 U.S.C.A. 651 , and provides for continuing management and employee involvement; (3) Whether granting the privilege to self-insure the construction project will reduce

the costs of the construction project; (4) Whether the self-insuring employer has employed an ombudsperson as required under

division (P) of this section; (5) Whether the self-insuring employer has sufficient surety to secure the payment of

claims for which the self-insuring employer would be responsible pursuant to the granting

of the privilege to self-insure a construction project under division (O) of this

section. (R) As used in divisions (O), (P), and (Q), “ self-insuring employer ” includes the following employers, whether or not they have been granted the status

of being a self-insuring employer under division (B) of this section: (1) A state institution of higher education; (2) A school district; (3) A county school financing district; (4) An educational service center; (5) A community school established under Chapter 3314. of the Revised Code; (6) A municipal power agency as defined in section 3734.058 of the Revised Code . (S) As used in this section: (1) “ Unvoted debt capacity ” means the amount of money that a public employer may borrow without voter approval

of a tax levy; (2) “ State institution of higher education ” means the state universities listed in section 3345.011 of the Revised Code , community colleges created pursuant to Chapter 3354. of the Revised Code, university

branches created pursuant to Chapter 3355. of the Revised Code, technical colleges

created pursuant to Chapter 3357. of the Revised Code, and state community colleges

created pursuant to Chapter 3358. of the Revised Code.

Frequently Asked Questions About Ohio § 4123.35

What does Ohio Revised Code § 4123.35 cover?

Section 4123.35 is part of the Ohio Revised Code, the codified statutory law of Ohio. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Ohio § 4123.35?

A common citation format is "Ohio Revised Code § 4123.35" (Ohio). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Ohio law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.

How does Ohio § 4123.35 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Ohio.