Thompson v. Industrial Commission (1 Ohio St. 3d 244, 1982)

Sweeney, J.

This appeal presents two issues for our consideration. The first is whether the transfer of SIF investment income to the DWRF, pursuant to R.C. 4123.411, violates Section 35, Article II of the Ohio Constitution. The second is whether the transfer of SIF earnings to the DWRF retroactively increases the compensation paid to disabled workers in violation of Section 28, Article II of the constitution.

I.

The Court of Appeals determined that the DWRF funding scheme contained in R.C. 4123.411 contravened Section 35, Article II. The court reasoned as follows:

“The SIF, created by the General Assembly pursuant to authority granted it by Article II, Section 35, of the Ohio Constitution, is a trust fund which can be used for no other purpose than that provided by Article II, Section 35: providing compensation to workers and their dependents. Corrugated Container Co. v. Dickerson (1960), 171 Ohio St. 289 [13 O.O. 2d 337]; Welsh v. Indus. Comm. (1940), 136 Ohio St. 387 [16 O.O. 564]; R.C. 4123.30. The crux of the matter before us, then, is the determination of whether income produced as the result of investing any surplus or reserve belonging to the SIF is itself a part of the SIF. If it is, then, plaintiffs contention is correct: the effect of the transfer provided for by R.C. 4123.411 is to divert a portion of the trust fund to an independent welfare fund, in contravention of Article II, Section 35, of the Ohio Constitution.

<