As Reported by the Senate Energy, Natural Resources         1            

                    and Environment Committee                      2            

122nd General Assembly                                             5            

   Regular Session                            Sub. S. B. No. 46    6            

      1997-1998                                                    7            


                       SENATORS CARNES-DIX                         9            


                                                                   11           

                           A   B I L L                                          

             To amend section 1509.38 and to enact sections        13           

                1510.01 to 1510.13 and 1510.99 of the Revised      14           

                Code to provide for the establishment of an oil    15           

                and natural gas marketing program.                 16           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        18           

      Section 1.  That section 1509.38 be amended and sections     20           

1510.01, 1510.02, 1510.03, 1510.04, 1510.05, 1510.06, 1510.07,     22           

1510.08, 1510.09, 1510.10, 1510.11, 1510.12, 1510.13, and 1510.99  23           

of the Revised Code be enacted to read as follows:                 24           

      Sec. 1509.38.  There is hereby created in the division of    34           

oil and gas a technical advisory council on oil and gas, which     35           

shall consist of eight members to be appointed by the governor     36           

with the advice and consent of the senate.  Three members shall    37           

be independent oil or gas producers, operators, or their           38           

representatives, operating and producing primarily in Ohio THIS    39           

STATE, three members shall be oil or gas producers, operators, or  41           

their representatives having substantial oil and gas producing     42           

operations in Ohio THIS STATE and at least one other state, one    43           

member shall represent the public, and one member shall represent  45           

persons having landowners' royalty interests in oil and gas        46           

production. All members must SHALL be residents of Ohio THIS       47           

STATE, and all members, except the members representing the        49           

public and persons having landowners' royalty interests, must      50           

SHALL have at least five years of practical or technical           52           

experience in oil or gas drilling and production.  Not more than   53           

                                                          2      

                                                                 
one member may represent any one company, producer, or operator.   54           

      Terms of office shall be for three years, commencing on the  56           

first day of February and ending on the thirty-first day of        57           

January, except that upon expiration of the term ending February   58           

1, 1976, the new term which succeeds it shall commence on          59           

February 2, 1976 and end on January 31, 1979; upon expiration of   60           

the terms ending on February 2, 1975, the new terms which succeed  61           

them shall commence on February 3, 1975 and end on January 31,     62           

1978; and upon expiration of the terms ending on February 4,       63           

1973, the new terms which succeed them shall commence on February  64           

5, 1973 and end on January 31, 1976.  Each member shall hold       65           

office from the date of his appointment until the end of the term  66           

for which he THE MEMBER was appointed.  A vacancy in the office    67           

of a member shall be filled by the governor, with the advice and   69           

consent of the senate.  Any member appointed to fill a vacancy     70           

occurring prior to the expiration of the term for which his THE    71           

MEMBER'S predecessor was appointed shall hold office for the       72           

remainder of such THAT term.  Any member shall continue in office  74           

subsequent to the expiration date of his THE MEMBER'S term until   75           

his THE MEMBER'S successor takes office, or until a period of      78           

sixty days has elapsed, whichever occurs first.                                 

      The council shall select from among its members a chairman   80           

CHAIRPERSON, a vice-chairman VICE-CHAIRPERSON, and a secretary.    82           

All members are entitled to their actual and necessary expenses                 

incurred in the performance of their duties as such members,       83           

payable from the appropriations for the division.                  86           

      The governor may remove any member for inefficiency,         88           

neglect of duty, or malfeasance in office.                         89           

      The council shall hold at least one regular meeting in each  91           

quarter of a calendar year, and shall keep a record of its         92           

proceedings.  Special meetings may be called by the chairman,      93           

CHAIRPERSON and shall be called by him THE CHAIRPERSON upon        95           

receipt of a written request therefor signed by two or more                     

members of the council.  A written notice of the time and place    97           

                                                          3      

                                                                 
of each meeting shall be sent to each member of the council.       98           

Five members constitute a quorum, and no action of the council is  99           

valid unless five members concur.                                               

      The council shall, when requested by the chief of the        101          

division of oil and gas, SHALL consult with and advise the chief   102          

and perform such other duties as THAT may be lawfully delegated    104          

to it by the chief.  The council shall have the right to MAY       105          

participate in hearings held by the chief pursuant to Chapter                   

1509. of the Revised Code, UNDER THIS CHAPTER and shall have HAS   107          

powers of approval as provided in sections 1509.24 and 1509.25 of  109          

the Revised Code.  THE COUNCIL SHALL CONDUCT THE ACTIVITIES        110          

REQUIRED, AND EXERCISE THE AUTHORITY GRANTED, UNDER CHAPTER 1510.  111          

OF THE REVISED CODE.                                                            

      Sec. 1510.01.  AS USED IN THIS CHAPTER:                      113          

      (A)  "FIRST PURCHASER" MEANS:                                115          

      (1)  WITH REGARD TO CRUDE OIL, THE PERSON TO WHOM TITLE      117          

FIRST IS TRANSFERRED BEYOND THE GATHERING TANK OR TANKS, BEYOND    118          

THE FACILITY FROM WHICH THE CRUDE OIL WAS FIRST PRODUCED, OR       119          

BOTH;                                                              120          

      (2)  WITH REGARD TO NATURAL GAS, THE PERSON TO WHOM TITLE    122          

FIRST IS TRANSFERRED BEYOND THE INLET SIDE OF THE MEASUREMENT      123          

STATION FROM WHICH THE NATURAL GAS WAS FIRST PRODUCED.             124          

      (B)  "INDEPENDENT PRODUCER" MEANS A PERSON WHO COMPLIES      127          

WITH BOTH OF THE FOLLOWING:                                                     

      (1)  PRODUCES OIL OR NATURAL GAS AND IS NOT ENGAGED IN       129          

REFINING EITHER PRODUCT;                                                        

      (2)  DERIVES A MAJORITY OF INCOME FROM OWNERSHIP IN          131          

PROPERTIES PRODUCING OIL OR NATURAL GAS.                           132          

      (C)  "QUALIFIED INDEPENDENT PRODUCER ASSOCIATION" MEANS AN   135          

ASSOCIATION THAT COMPLIES WITH ALL OF THE FOLLOWING:               136          

      (1)  IT IS IN EXISTENCE ON THE EFFECTIVE DATE OF THIS        138          

SECTION;                                                           139          

      (2)  IT IS ORGANIZED AND OPERATING WITHIN THIS STATE;        142          

      (3)  A MAJORITY OF THE MEMBERS OF ITS GOVERNING BODY ARE     144          

                                                          4      

                                                                 
INDEPENDENT PRODUCERS.                                             145          

      (D)  "TECHNICAL ADVISORY COUNCIL" OR "COUNCIL" MEANS THE     147          

TECHNICAL ADVISORY COUNCIL CREATED IN THE DIVISION OF OIL AND GAS  148          

UNDER SECTION 1509.38 OF THE REVISED CODE.                         149          

      Sec. 1510.02.  IN ACCORDANCE WITH THIS CHAPTER, THE          151          

TECHNICAL ADVISORY COUNCIL SHALL DO ALL OF THE FOLLOWING:          153          

      (A)  ESTABLISH PROCEDURES BY WHICH INDEPENDENT PRODUCERS IN  156          

THIS STATE MAY PROPOSE, DEVELOP, AND OPERATE A MARKETING PROGRAM   157          

TO DO ALL OF THE FOLLOWING:                                        158          

      (1)  DEMONSTRATE TO THE GENERAL PUBLIC THE IMPORTANCE AND    160          

ECONOMIC SIGNIFICANCE OF THE OIL AND NATURAL GAS INDUSTRY IN THIS  162          

STATE;                                                                          

      (2)  ENCOURAGE THE WISE AND EFFICIENT USE OF ENERGY;         165          

      (3)  PROMOTE ENVIRONMENTALLY SOUND PRODUCTION METHODS AND    167          

TECHNOLOGIES IN THE INDUSTRY;                                      168          

      (4)  SUPPORT RESEARCH AND EDUCATIONAL ACTIVITIES CONCERNING  171          

THE INDUSTRY.                                                                   

      (B)  ESTABLISH PROCEDURES NECESSARY TO IMPLEMENT AND         174          

ADMINISTER THIS CHAPTER:                                           175          

      (C)  DETERMINE THE ELIGIBILITY OF INDEPENDENT PRODUCERS TO   178          

PARTICIPATE IN REFERENDUMS AND OTHER PROCEDURES THAT MAY BE        179          

REQUIRED TO ESTABLISH A MARKETING PROGRAM FOR OIL AND NATURAL      180          

GAS.                                                                            

      Sec. 1510.03.  A MARKETING PROGRAM THAT IS ESTABLISHED       183          

UNDER THIS CHAPTER MAY INCLUDE AUTHORITY TO DO AT LEAST ALL OF     184          

THE FOLLOWING:                                                                  

      (A)  CARRY OUT THE PURPOSES OF THE PROGRAM IDENTIFIED IN     186          

SECTION 1510.02 OF THE REVISED CODE;                               187          

      (B)  ENTER INTO CONTRACTS WITH QUALIFIED ORGANIZATIONS,      189          

AGENCIES, OR INDIVIDUALS, OR ANY COMBINATION THEREOF, TO CARRY     190          

OUT THOSE PURPOSES;                                                191          

      (C)  CONTRIBUTE TO ANY NATIONAL OR REGIONAL MARKETING        193          

PROGRAM FOR OIL AND NATURAL GAS IF THE PROGRAM IS EXCLUSIVELY FOR  195          

THE SAME PURPOSES AS THE PROGRAM ESTABLISHED UNDER THIS CHAPTER.   196          

                                                          5      

                                                                 
      Sec. 1510.04.  (A)  INDEPENDENT PRODUCERS IN THIS STATE MAY  198          

PRESENT THE TECHNICAL ADVISORY COUNCIL WITH A PETITION SIGNED BY   200          

THE LESSER OF ONE HUNDRED OR TEN PER CENT OF ALL SUCH PRODUCERS    201          

REQUESTING THAT THE COUNCIL HOLD A REFERENDUM IN ACCORDANCE WITH   202          

SECTION 1510.05 OF THE REVISED CODE TO ESTABLISH A MARKETING       203          

PROGRAM FOR OIL AND NATURAL GAS OR TO AMEND AN EXISTING PROGRAM.   204          

      (B)  AT THE TIME OF PRESENTATION OF THE PETITION TO THE      206          

COUNCIL UNDER DIVISION (A) OF THIS SECTION, THE PETITIONERS ALSO   207          

SHALL PRESENT THE PROPOSED PROGRAM OR AMENDMENT, WHICH SHALL       209          

INCLUDE ALL OF THE FOLLOWING:                                                   

      (1)  THE RATE OF ASSESSMENT TO BE MADE ON THE PRODUCTION OF  211          

OIL AND NATURAL GAS IN THIS STATE, WHICH SHALL NOT EXCEED ONE      212          

CENT PER EACH GROSS BARREL OF OIL AND ONE-TENTH OF ONE CENT PER    213          

THOUSAND CUBIC FEET OF NATURAL GAS;                                             

      (2)  TERMS, CONDITIONS, LIMITATIONS, AND OTHER               215          

QUALIFICATIONS FOR ASSESSMENT;                                     216          

      (3)  PROCEDURES TO REFUND THE ASSESSMENT.                    218          

      (C)  BEFORE MAKING A DECISION UNDER THIS DIVISION TO         220          

APPROVE OR DISAPPROVE A PROPOSED PROGRAM OR AMENDMENT, THE         221          

COUNCIL SHALL PUBLISH IN AT LEAST TWO APPROPRIATE PERIODICALS      222          

DESIGNATED BY THE COUNCIL A NOTICE THAT THE PROGRAM OR AMENDMENT   223          

HAS BEEN PROPOSED AND INFORMING INTERESTED PERSONS OF THE          224          

PROCEDURES FOR SUBMITTING COMMENTS REGARDING THE PROPOSAL.  AFTER  225          

PUBLISHING THE NOTICE, THE COUNCIL SHALL PROVIDE INTERESTED        226          

PERSONS WITH A COPY OF THE PROPOSED PROGRAM OR AMENDMENT AND AN    228          

OPPORTUNITY TO COMMENT ON THE PROPOSED PROGRAM OR AMENDMENT FOR    229          

THIRTY DAYS AFTER THE PUBLICATION OF THE NOTICE.  THE PETITIONERS  230          

MAY MAKE CHANGES TO THE PROPOSED PROGRAM OR AMENDMENT BASED UPON   231          

THE COMMENTS RECEIVED.  THE COUNCIL MAY MAKE TECHNICAL CHANGES TO  232          

THE PROPOSAL TO ENSURE COMPLIANCE WITH THIS CHAPTER.  SUBSEQUENT   233          

TO ANY CHANGES MADE BY THE PETITIONERS OR ANY TECHNICAL CHANGES    234          

MADE BY THE COUNCIL TO A PROPOSED PROGRAM OR AMENDMENT, THE        235          

COUNCIL MAY APPROVE OR DISAPPROVE THE PROPOSED PROGRAM OR          236          

AMENDMENT.                                                                      

                                                          6      

                                                                 
      (D)  IF THE COUNCIL APPROVES THE PROPOSED PROGRAM OR         238          

AMENDMENT, WITH ANY CHANGES MADE UNDER DIVISION (C) OF THIS        239          

SECTION, THE COUNCIL SHALL HOLD A REFERENDUM IN ACCORDANCE WITH    240          

SECTION 1510.05 OF THE REVISED CODE TO ESTABLISH A MARKETING       241          

PROGRAM FOR OIL AND NATURAL GAS OR TO AMEND AN EXISTING PROGRAM.   242          

      Sec. 1510.05.  (A)  NOT LATER THAN NINETY DAYS AFTER THE     245          

TECHNICAL ADVISORY COUNCIL HAS APPROVED A MARKETING PROGRAM        246          

PROPOSED UNDER SECTION 1510.04 OF THE REVISED CODE, OR AN          247          

AMENDMENT TO SUCH A PROGRAM, THE COUNCIL SHALL DETERMINE BY A      248          

REFERENDUM WHETHER THE ELIGIBLE INDEPENDENT PRODUCERS, AS          249          

DETERMINED UNDER DIVISION (C) OF SECTION 1510.02 OF THE REVISED    250          

CODE, FAVOR THE PROPOSED PROGRAM OR AMENDMENT.  THE COUNCIL SHALL  251          

CAUSE A BALLOT REQUEST FORM TO BE PUBLISHED NOT LESS THAN THIRTY   252          

DAYS BEFORE THE BEGINNING OF THE ELECTION PERIOD ESTABLISHED       253          

UNDER DIVISION (B) OF THIS SECTION IN AT LEAST TWO APPROPRIATE     255          

PERIODICALS DESIGNATED BY THE COUNCIL AND SHALL MAKE THE FORM      256          

AVAILABLE FOR REPRODUCTION TO ANY QUALIFIED INDEPENDENT PRODUCER   257          

ASSOCIATION.                                                                    

      (B)  IN A REFERENDUM HELD UNDER THIS SECTION, EACH ELIGIBLE  260          

INDEPENDENT PRODUCER IS ENTITLED TO ONE VOTE.  THE COUNCIL SHALL   261          

ESTABLISH A THREE-DAY PERIOD DURING WHICH ELIGIBLE INDEPENDENT     262          

PRODUCERS MAY VOTE EITHER IN PERSON DURING NORMAL BUSINESS HOURS   263          

AT POLLING PLACES DESIGNATED BY THE COUNCIL OR BY MAILING A        264          

BALLOT TO SUCH A POLLING PLACE.  THE COUNCIL SHALL SEND A MAIL-IN  266          

BALLOT BY FIRST-CLASS MAIL TO ANY ELIGIBLE INDEPENDENT PRODUCER    267          

WHO REQUESTS ONE BY SENDING IN THE BALLOT REQUEST FORM PROVIDED    268          

FOR IN DIVISION (A) OF THIS SECTION, BY CALLING ONE OF THE         270          

POLLING PLACES DESIGNATED BY THE COUNCIL, OR BY ANY ADDITIONAL     271          

METHOD THAT THE COUNCIL MAY PROVIDE.  A BALLOT THAT IS RETURNED    272          

BY MAIL IS NOT VALID IF IT IS POSTMARKED LATER THAN THE THIRD DAY  273          

OF THE ELECTION PERIOD ESTABLISHED BY THE COUNCIL.                 274          

      (C)  A MARKETING PROGRAM OR AN AMENDMENT TO A MARKETING      277          

PROGRAM IS FAVORED BY INDEPENDENT PRODUCERS IF A MAJORITY OF THE   278          

INDEPENDENT PRODUCERS WHO VOTE IN THE REFERENDUM VOTE IN FAVOR OF  279          

                                                          7      

                                                                 
THE PROGRAM OR AMENDMENT.  IF THE INDEPENDENT PRODUCERS WHO VOTE   280          

IN THE REFERENDUM DO NOT FAVOR THE PROPOSED PROGRAM OR AMENDMENT,  281          

THE COUNCIL SHALL NOT HOLD ANOTHER REFERENDUM ON THE PROPOSED      282          

PROGRAM OR AMENDMENT DURING THE TEN MONTHS FOLLOWING THE CLOSE OF  283          

THE REFERENDUM AT WHICH THE INDEPENDENT PRODUCERS DID NOT FAVOR    284          

THE PROPOSED PROGRAM OR AMENDMENT.                                 285          

      Sec. 1510.06.  (A)  WHEN THE INDEPENDENT PRODUCERS WHO VOTE  287          

IN A REFERENDUM HELD UNDER SECTION 1510.05 OF THE REVISED CODE     288          

FAVOR A PROPOSED MARKETING PROGRAM, THE TECHNICAL ADVISORY         289          

COUNCIL SHALL ORDER THE PROGRAM ESTABLISHED.  THE COUNCIL SHALL    291          

APPOINT AN OPERATING COMMITTEE CONSISTING OF SEVEN MEMBERS.  SIX   293          

OF THE MEMBERS SHALL BE INDEPENDENT PRODUCERS.  THE COUNCIL SHALL  294          

SELECT THOSE MEMBERS FROM LISTS OF NAMES SUBMITTED BY QUALIFIED                 

INDEPENDENT PRODUCER ASSOCIATIONS.  EACH MEMBER WHO IS AN          295          

INDEPENDENT PRODUCER SHALL BE AT LEAST TWENTY-FIVE YEARS OLD, BE   296          

A RESIDENT OF THIS STATE, AND HAVE AT LEAST FIVE YEARS OF ACTIVE   297          

EXPERIENCE IN THE OIL AND NATURAL GAS INDUSTRY.                                 

      THE SEVENTH MEMBER SHALL BE A MEMBER OF THE OHIO FARM        299          

BUREAU FEDERATION.  THE COUNCIL SHALL SELECT THAT MEMBER FROM A    300          

LIST SUBMITTED BY THE FEDERATION.                                  301          

      OF THE INITIAL APPOINTMENTS, THE COUNCIL SHALL APPOINT TWO   303          

MEMBERS FOR TERMS OF ONE YEAR, TWO MEMBERS FOR TERMS OF TWO        304          

YEARS, AND THREE MEMBERS FOR TERMS OF THREE YEARS.  THEREAFTER,    306          

THE COUNCIL SHALL APPOINT EACH MEMBER FOR A THREE-YEAR TERM        307          

UNLESS THE APPOINTEE IS TO FILL A VACANCY, IN WHICH CASE THE       308          

APPOINTEE SHALL BE APPOINTED FOR THE UNEXPIRED TERM.  EACH SUCH    309          

SUBSEQUENT APPOINTMENT SHALL BE MADE PRIOR TO THE EXPIRATION DATE  310          

OF THE PRECEDING OR VACANT TERM.  THE COUNCIL SHALL NOT APPOINT    311          

ANY MEMBER OF AN OPERATING COMMITTEE TO SERVE MORE THAN THREE                   

SUCCESSIVE FULL THREE-YEAR TERMS.                                  312          

      (B)  EACH MEMBER OF AN OPERATING COMMITTEE IS ENTITLED TO    315          

ACTUAL AND NECESSARY TRAVEL AND INCIDENTAL EXPENSES WHILE          316          

ATTENDING MEETINGS OF THE COMMITTEE OR WHILE ENGAGED IN THE        317          

PERFORMANCE OF OFFICIAL RESPONSIBILITIES DELEGATED TO THE          318          

                                                          8      

                                                                 
COMMITTEE.                                                                      

      (C)  NO PERSON IS LIABLE IN A CIVIL ACTION FOR ANY ACTIONS   320          

TAKEN IN GOOD FAITH AS A MEMBER OF AN OPERATING COMMITTEE.         321          

      Sec. 1510.07.  THE TECHNICAL ADVISORY COUNCIL SHALL MONITOR  323          

THE ACTIONS OF AN OPERATING COMMITTEE TO ENSURE ALL OF THE         324          

FOLLOWING:                                                                      

      (A)  A MARKETING PROGRAM IS SELF-SUPPORTING;                 326          

      (B)  THE COMMITTEE KEEPS ALL RECORDS THAT ARE REQUIRED FOR   328          

AGENCIES OF THE STATE;                                             330          

      (C)  ALL PROGRAM OPERATIONS ARE IN ACCORD WITH BOTH OF THE   332          

FOLLOWING:                                                         333          

      (1)  THE PROVISIONS OF THE MARKETING PROGRAM;                335          

      (2)  THIS CHAPTER AND PROCEDURES ESTABLISHED UNDER IT.       337          

      Sec. 1510.08.  (A)(1)  EXCEPT AS PROVIDED IN DIVISION        340          

(A)(2) OF THIS SECTION, AN OPERATING COMMITTEE MAY LEVY            341          

ASSESSMENTS ON THE PRODUCTION OF OIL AND NATURAL GAS IN THIS       342          

STATE FOR THE PURPOSES OF A MARKETING PROGRAM ESTABLISHED UNDER    343          

THIS CHAPTER.                                                                   

      (2)  AN OPERATING COMMITTEE SHALL NOT LEVY AN ASSESSMENT     345          

THAT WAS NOT APPROVED BY INDEPENDENT PRODUCERS OR THAT EXCEEDS     346          

THE AMOUNT AUTHORIZED UNDER DIVISION (B)(1) OF SECTION 1510.04 OF  348          

THE REVISED CODE.  AN OPERATING COMMITTEE SHALL NOT LEVY AN        349          

ASSESSMENT AGAINST AN INDEPENDENT PRODUCER WHO IS NOT ELIGIBLE TO  350          

VOTE IN A REFERENDUM FOR THE MARKETING PROGRAM THAT THE OPERATING  351          

COMMITTEE ADMINISTERS, AS DETERMINED UNDER DIVISION (C) OF         352          

SECTION 1510.02 OF THE REVISED CODE.                               353          

      (B)  THE TECHNICAL ADVISORY COUNCIL MAY REQUIRE A FIRST      356          

PURCHASER TO WITHHOLD ASSESSMENTS FROM ANY AMOUNTS THAT THE FIRST  357          

PURCHASER OWES TO INDEPENDENT PRODUCERS AND, NOTWITHSTANDING       358          

DIVISION (A)(2) OF THIS SECTION, TO REMIT THEM TO THE CHAIRPERSON  360          

OF THE COUNCIL AT THE OFFICE OF THE DIVISION OF OIL AND GAS.  A    361          

FIRST PURCHASER WHO PAYS AN ASSESSMENT THAT IS LEVIED PURSUANT TO  362          

THIS SECTION FOR AN INDEPENDENT PRODUCER MAY DEDUCT THE AMOUNT OF  363          

THE ASSESSMENT FROM ANY MONEYS THAT THE FIRST PURCHASER OWES THE   364          

                                                          9      

                                                                 
INDEPENDENT PRODUCER.                                              365          

      (C)  A MARKETING PROGRAM SHALL REQUIRE A REFUND OF           368          

ASSESSMENTS COLLECTED UNDER THIS SECTION AFTER RECEIVING AN        369          

APPLICATION FOR A REFUND FROM AN INDEPENDENT PRODUCER.  AN         370          

APPLICATION FOR A REFUND SHALL BE MADE ON A FORM FURNISHED BY THE  372          

COUNCIL.  THE OPERATING COMMITTEE SHALL ENSURE THAT REFUND FORMS   373          

ARE AVAILABLE WHERE ASSESSMENTS FOR ITS PROGRAM ARE WITHHELD.      374          

      AN INDEPENDENT PRODUCER WHO DESIRES A REFUND SHALL SUBMIT A  376          

REQUEST FOR A REFUND NOT LATER THAN THE THIRTY-FIRST DAY OF MARCH  377          

OF THE YEAR IN WHICH THE REQUEST IS SUBMITTED.  THE COUNCIL SHALL  378          

REFUND THE ASSESSMENT TO THE INDEPENDENT PRODUCER NOT LATER THAN   379          

THE THIRTIETH DAY OF JUNE OF THE YEAR IN WHICH THE REQUEST FOR     380          

THE REFUND IS SUBMITTED.                                                        

      (D)  AN OPERATING COMMITTEE SHALL NOT USE MONEYS FROM ANY    383          

ASSESSMENTS THAT IT LEVIES FOR ANY POLITICAL OR LEGISLATIVE        384          

PURPOSE OR FOR PREFERENTIAL TREATMENT OF ONE PERSON TO THE         385          

DETRIMENT OF ANOTHER PERSON WHO IS AFFECTED BY THE MARKETING       386          

PROGRAM THAT THE OPERATING COMMITTEE ADMINISTERS.                  387          

      Sec. 1510.09.  (A)  THERE IS HEREBY ESTABLISHED A FUND FOR   390          

ANY MARKETING PROGRAM THAT IS ESTABLISHED BY THE TECHNICAL         391          

ADVISORY COUNCIL UNDER THIS CHAPTER.  THE FUND SHALL BE IN THE     392          

CUSTODY OF THE TREASURER OF STATE, BUT SHALL NOT BE PART OF THE                 

STATE TREASURY.  EXCEPT AS AUTHORIZED IN DIVISION (B) OF THIS      394          

SECTION, ALL MONEYS COLLECTED PURSUANT TO SECTION 1510.08 OF THE   395          

REVISED CODE FOR THE MARKETING PROGRAM SHALL BE PAID INTO THE      396          

FUND FOR THE MARKETING PROGRAM AND SHALL BE DISBURSED ONLY                      

PURSUANT TO A VOUCHER SIGNED BY THE CHAIRPERSON OF THE COUNCIL     397          

FOR USE IN DEFRAYING THE COSTS OF ADMINISTRATION OF THE MARKETING  399          

PROGRAM AND FOR CARRYING OUT SECTIONS 1510.02, 1510.03, AND        400          

1510.11 OF THE REVISED CODE.                                                    

      (B)  IN LIEU OF DEPOSITS IN THE FUND ESTABLISHED UNDER       402          

DIVISION (A) OF THIS SECTION, THE OPERATING COMMITTEE OF A         404          

MARKETING PROGRAM ESTABLISHED UNDER THIS CHAPTER MAY DEPOSIT ALL   405          

MONEYS COLLECTED PURSUANT TO SECTION 1510.08 OF THE REVISED CODE   406          

                                                          10     

                                                                 
WITH A BANK OR A SAVINGS AND LOAN ASSOCIATION AS DEFINED IN        407          

SECTIONS 1101.01 AND 1151.01 OF THE REVISED CODE.  ALL MONEYS                   

COLLECTED PURSUANT TO SECTION 1510.08 OF THE REVISED CODE FOR THE  408          

MARKETING PROGRAM AND DEPOSITED PURSUANT TO THIS DIVISION ALSO     409          

SHALL BE USED ONLY IN DEFRAYING THE COSTS OF ADMINISTRATION OF     410          

THE MARKETING PROGRAM AND FOR CARRYING OUT SECTIONS 1510.02,                    

1510.03, AND 1510.11 OF THE REVISED CODE.                          411          

      (C)  AN OPERATING COMMITTEE SHALL ESTABLISH A FISCAL YEAR    414          

FOR ITS MARKETING PROGRAM, SHALL PUBLISH AN ACTIVITY AND           415          

FINANCIAL REPORT WITHIN SIXTY DAYS OF THE END OF EACH FISCAL                    

YEAR, AND SHALL MAKE THE REPORT AVAILABLE TO EACH INDEPENDENT      416          

PRODUCER WHO PAYS AN ASSESSMENT OR OTHERWISE CONTRIBUTES TO THE    417          

MARKETING PROGRAM THAT THE COMMITTEE ADMINISTERS AND TO OTHER      418          

INTERESTED PERSONS.                                                             

      (D)  IN ADDITION TO THE REPORT REQUIRED BY DIVISION (C) OF   421          

THIS SECTION, AN OPERATING COMMITTEE THAT DEPOSITS MONEYS IN                    

ACCORDANCE WITH DIVISION (B) OF THIS SECTION SHALL SUBMIT TO THE   423          

COUNCIL BOTH OF THE FOLLOWING:                                     424          

      (1)  ANNUALLY, A FINANCIAL STATEMENT PREPARED BY A           426          

CERTIFIED PUBLIC ACCOUNTANT HOLDING VALID CERTIFICATION FROM THE   427          

OHIO BOARD OF ACCOUNTANCY ISSUED PURSUANT TO CHAPTER 4701. OF THE  428          

REVISED CODE.  THE OPERATING COMMITTEE SHALL FILE THE FINANCIAL    429          

STATEMENT WITH THE COUNCIL NOT MORE THAN SIXTY DAYS AFTER THE END  431          

OF EACH FISCAL YEAR.                                                            

      (2)  MONTHLY, AN UNAUDITED FINANCIAL STATEMENT.              433          

      Sec. 1510.10.  (A)  THE TECHNICAL ADVISORY COUNCIL           435          

TEMPORARILY MAY SUSPEND THE OPERATION OF A MARKETING PROGRAM, OR   436          

ANY PART OF A PROGRAM, FOR ANY REASON UPON RECOMMENDATION BY THE   437          

OPERATING COMMITTEE OF THE PROGRAM FOR A PERIOD OF NOT MORE THAN   439          

TWELVE CONSECUTIVE MONTHS.                                                      

      (B)  AT LEAST ONCE IN EACH FIVE YEARS OF OPERATION, OR AT    441          

ANY TIME UPON WRITTEN PETITION BY THE LESSER OF ONE HUNDRED OR     442          

TEN PER CENT OF THE INDEPENDENT PRODUCERS IN THIS STATE, THE       443          

COUNCIL SHALL HOLD A HEARING AS PRESCRIBED IN CHAPTER 119. OF THE  444          

                                                          11     

                                                                 
REVISED CODE TO CONSIDER THE CONTINUATION OF THE PROGRAM.          445          

      (C)  NOT LATER THAN THIRTY DAYS AFTER THE CLOSE OF ANY       447          

HEARING TO CONSIDER THE CONTINUATION OF A MARKETING PROGRAM, THE   448          

COUNCIL SHALL RECOMMEND CONTINUATION OR TERMINATION OF THE         449          

PROGRAM, SHALL GIVE PUBLIC NOTICE, AND SHALL NOTIFY EACH           450          

INDEPENDENT PRODUCER OF RECORD, ALL PARTIES APPEARING AT THE       451          

HEARING, AND OTHER INTERESTED PARTIES OF THE RECOMMENDATION.                    

      (D)  WHEN THE COUNCIL RECOMMENDS TERMINATION OF A MARKETING  454          

PROGRAM, WITHIN FORTY-FIVE DAYS THE COUNCIL SHALL CONDUCT A                     

REFERENDUM TO DETERMINE WHETHER INDEPENDENT PRODUCERS FAVOR THE    455          

PROPOSED TERMINATION.  INDEPENDENT PRODUCERS FAVOR THE             456          

TERMINATION OF THE PROGRAM IF A MAJORITY OF THE INDEPENDENT        457          

PRODUCERS WHO VOTE IN THE REFERENDUM VOTE IN FAVOR OF TERMINATION  458          

OF THE PROGRAM.                                                                 

      Sec. 1510.11.  WHEN INDEPENDENT PRODUCERS FAVOR TERMINATION  461          

OF A MARKETING PROGRAM ESTABLISHED UNDER THIS CHAPTER, THE         462          

OPERATING COMMITTEE OF THE PROGRAM AND THE TECHNICAL ADVISORY      463          

COUNCIL SHALL TERMINATE ALL OPERATIONS OF THE PROGRAM.  UPON       464          

TERMINATION OF THE PROGRAM, THE COUNCIL SHALL RETURN ANY           465          

REMAINING UNOBLIGATED MONEYS TO THE INDEPENDENT PRODUCERS WHO      466          

PAID THE ASSESSMENTS LEVIED UNDER SECTION 1510.08 OF THE REVISED                

CODE DURING THE IMMEDIATELY PRECEDING TWELVE MONTHS AND SHALL      468          

PRORATE THE MONEYS ACCORDINGLY.                                                 

      Sec. 1510.12.  THE TECHNICAL ADVISORY COUNCIL MAY INSTITUTE  471          

AN ACTION AT LAW OR IN EQUITY THAT APPEARS NECESSARY TO ENFORCE    472          

COMPLIANCE WITH THIS CHAPTER, A PROCEDURE ESTABLISHED UNDER IT,    473          

OR A MARKETING PROGRAM ESTABLISHED UNDER IT.                                    

      Sec. 1510.13.  (A)  NO PERSON SHALL KNOWINGLY FAIL OR        475          

REFUSE TO WITHHOLD OR REMIT ANY ASSESSMENT LEVIED UNDER SECTION    476          

1510.08 OF THE REVISED CODE.                                                    

      (B)  BEFORE CRIMINAL PROCEEDINGS ARE INSTITUTED PURSUANT TO  478          

THIS SECTION, THE TECHNICAL ADVISORY COUNCIL SHALL GIVE THE        479          

ALLEGED VIOLATOR AN OPPORTUNITY TO PRESENT THE ALLEGED VIOLATOR'S  480          

VIEWS CONCERNING WHY THE PROCEEDINGS SHOULD NOT BE INSTITUTED.     481          

                                                          12     

                                                                 
      Sec. 1510.99.  WHOEVER VIOLATES SECTION 1510.13 OF THE       483          

REVISED CODE IS GUILTY OF A MISDEMEANOR OF THE FOURTH DEGREE.      484          

      Section 2.  That existing section 1509.38 of the Revised     486          

Code is hereby repealed.                                           487