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
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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
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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
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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
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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.
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(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
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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
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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
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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
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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
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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
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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