For the purpose of providing referees for the hearings required by section 3319.16 of the Revised Code, the department of education and workforce shall compile a list of resident electors from names that the department shall solicit annually from the state bar association.

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Upon receipt of notice that a referee has been demanded by a teacher or by a board of education, the department shall immediately designate three persons from such list, from whom the referee to hear the matter shall be chosen, and the department shall immediately notify the designees, the teacher, and the board of the school district involved. If within five days of receipt of the notice, the teacher and board are unable to select a mutually agreeable designee to serve as referee, the department shall appoint one of the three designees to serve as referee. The appointment of the referee shall be entered in the minutes of the board. The referee appointed shall be paid the referee’s usual and customary fee for attending the hearing which shall be paid from the school district general fund upon vouchers approved by the department and presented to the treasurer of the district. No referee shall be a member of, an employee of, or teacher employed by the board of education nor related to any such person by consanguinity or marriage.