As Passed by the Senate 1
122nd General Assembly 4
Regular Session Am. Sub. S. B. No. 46 5
1997-1998 6
SENATORS CARNES-DIX-GAETH-WHITE 8
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A B I L L
To amend section 1509.38 and to enact sections 12
1510.01 to 1510.13 and 1510.99 of the Revised 13
Code to provide for the establishment of an oil 14
and natural gas marketing program. 15
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That section 1509.38 be amended and sections 19
1510.01, 1510.02, 1510.03, 1510.04, 1510.05, 1510.06, 1510.07, 21
1510.08, 1510.09, 1510.10, 1510.11, 1510.12, 1510.13, and 1510.99 22
of the Revised Code be enacted to read as follows: 23
Sec. 1509.38. There is hereby created in the division of 33
oil and gas a technical advisory council on oil and gas, which 34
shall consist of eight members to be appointed by the governor 35
with the advice and consent of the senate. Three members shall 36
be independent oil or gas producers, operators, or their 37
representatives, operating and producing primarily in Ohio THIS 38
STATE, three members shall be oil or gas producers, operators, or 40
their representatives having substantial oil and gas producing 41
operations in Ohio THIS STATE and at least one other state, one 42
member shall represent the public, and one member shall represent 44
persons having landowners' royalty interests in oil and gas 45
production. All members must SHALL be residents of Ohio THIS 46
STATE, and all members, except the members representing the 48
public and persons having landowners' royalty interests, must 49
SHALL have at least five years of practical or technical 51
experience in oil or gas drilling and production. Not more than 52
one member may represent any one company, producer, or operator. 53
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Terms of office shall be for three years, commencing on the 55
first day of February and ending on the thirty-first day of 56
January, except that upon expiration of the term ending February 57
1, 1976, the new term which succeeds it shall commence on 58
February 2, 1976 and end on January 31, 1979; upon expiration of 59
the terms ending on February 2, 1975, the new terms which succeed 60
them shall commence on February 3, 1975 and end on January 31, 61
1978; and upon expiration of the terms ending on February 4, 62
1973, the new terms which succeed them shall commence on February 63
5, 1973 and end on January 31, 1976. Each member shall hold 64
office from the date of his appointment until the end of the term 65
for which he THE MEMBER was appointed. A vacancy in the office 66
of a member shall be filled by the governor, with the advice and 68
consent of the senate. Any member appointed to fill a vacancy 69
occurring prior to the expiration of the term for which his THE 70
MEMBER'S predecessor was appointed shall hold office for the 71
remainder of such THAT term. Any member shall continue in office 73
subsequent to the expiration date of his THE MEMBER'S term until 74
his THE MEMBER'S successor takes office, or until a period of 77
sixty days has elapsed, whichever occurs first.
The council shall select from among its members a chairman 79
CHAIRPERSON, a vice-chairman VICE-CHAIRPERSON, and a secretary. 81
All members are entitled to their actual and necessary expenses
incurred in the performance of their duties as such members, 82
payable from the appropriations for the division. 85
The governor may remove any member for inefficiency, 87
neglect of duty, or malfeasance in office. 88
The council shall hold at least one regular meeting in each 90
quarter of a calendar year, and shall keep a record of its 91
proceedings. Special meetings may be called by the chairman, 92
CHAIRPERSON and shall be called by him THE CHAIRPERSON upon 94
receipt of a written request therefor signed by two or more
members of the council. A written notice of the time and place 96
of each meeting shall be sent to each member of the council. 97
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Five members constitute a quorum, and no action of the council is 98
valid unless five members concur.
The council shall, when requested by the chief of the 100
division of oil and gas, SHALL consult with and advise the chief 101
and perform such other duties as THAT may be lawfully delegated 103
to it by the chief. The council shall have the right to MAY 104
participate in hearings held by the chief pursuant to Chapter
1509. of the Revised Code, UNDER THIS CHAPTER and shall have HAS 106
powers of approval as provided in sections 1509.24 and 1509.25 of 108
the Revised Code. THE COUNCIL SHALL CONDUCT THE ACTIVITIES 109
REQUIRED, AND EXERCISE THE AUTHORITY GRANTED, UNDER CHAPTER 1510. 110
OF THE REVISED CODE.
Sec. 1510.01. AS USED IN THIS CHAPTER: 112
(A) "FIRST PURCHASER" MEANS: 114
(1) WITH REGARD TO CRUDE OIL, THE PERSON TO WHOM TITLE 116
FIRST IS TRANSFERRED BEYOND THE GATHERING TANK OR TANKS, BEYOND 117
THE FACILITY FROM WHICH THE CRUDE OIL WAS FIRST PRODUCED, OR 118
BOTH; 119
(2) WITH REGARD TO NATURAL GAS, THE PERSON TO WHOM TITLE 121
FIRST IS TRANSFERRED BEYOND THE INLET SIDE OF THE MEASUREMENT 122
STATION FROM WHICH THE NATURAL GAS WAS FIRST PRODUCED. 123
(B) "INDEPENDENT PRODUCER" MEANS A PERSON WHO COMPLIES 126
WITH BOTH OF THE FOLLOWING:
(1) PRODUCES OIL OR NATURAL GAS AND IS NOT ENGAGED IN 128
REFINING EITHER PRODUCT;
(2) DERIVES A MAJORITY OF INCOME FROM OWNERSHIP IN 130
PROPERTIES PRODUCING OIL OR NATURAL GAS. 131
(C) "QUALIFIED INDEPENDENT PRODUCER ASSOCIATION" MEANS AN 134
ASSOCIATION THAT COMPLIES WITH ALL OF THE FOLLOWING: 135
(1) IT IS IN EXISTENCE ON THE EFFECTIVE DATE OF THIS 137
SECTION; 138
(2) IT IS ORGANIZED AND OPERATING WITHIN THIS STATE; 141
(3) A MAJORITY OF THE MEMBERS OF ITS GOVERNING BODY ARE 143
INDEPENDENT PRODUCERS. 144
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(D) "TECHNICAL ADVISORY COUNCIL" OR "COUNCIL" MEANS THE 146
TECHNICAL ADVISORY COUNCIL CREATED IN THE DIVISION OF OIL AND GAS 147
UNDER SECTION 1509.38 OF THE REVISED CODE. 148
Sec. 1510.02. IN ACCORDANCE WITH THIS CHAPTER, THE 150
TECHNICAL ADVISORY COUNCIL SHALL DO ALL OF THE FOLLOWING: 152
(A) ESTABLISH PROCEDURES BY WHICH INDEPENDENT PRODUCERS IN 155
THIS STATE MAY PROPOSE, DEVELOP, AND OPERATE A MARKETING PROGRAM 156
TO DO ALL OF THE FOLLOWING: 157
(1) DEMONSTRATE TO THE GENERAL PUBLIC THE IMPORTANCE AND 159
ECONOMIC SIGNIFICANCE OF THE OIL AND NATURAL GAS INDUSTRY IN THIS 161
STATE;
(2) ENCOURAGE THE WISE AND EFFICIENT USE OF ENERGY; 164
(3) PROMOTE ENVIRONMENTALLY SOUND PRODUCTION METHODS AND 166
TECHNOLOGIES IN THE INDUSTRY; 167
(4) SUPPORT RESEARCH AND EDUCATIONAL ACTIVITIES CONCERNING 170
THE INDUSTRY.
(B) ESTABLISH PROCEDURES NECESSARY TO IMPLEMENT AND 173
ADMINISTER THIS CHAPTER; 174
(C) DETERMINE THE ELIGIBILITY OF INDEPENDENT PRODUCERS TO 177
PARTICIPATE IN REFERENDUMS AND OTHER PROCEDURES THAT MAY BE 178
REQUIRED TO ESTABLISH A MARKETING PROGRAM FOR OIL AND NATURAL 179
GAS.
Sec. 1510.03. A MARKETING PROGRAM THAT IS ESTABLISHED 182
UNDER THIS CHAPTER MAY INCLUDE AUTHORITY TO DO AT LEAST ALL OF 183
THE FOLLOWING:
(A) CARRY OUT THE PURPOSES OF THE PROGRAM IDENTIFIED IN 185
SECTION 1510.02 OF THE REVISED CODE; 186
(B) ENTER INTO CONTRACTS WITH QUALIFIED ORGANIZATIONS, 188
AGENCIES, OR INDIVIDUALS, OR ANY COMBINATION THEREOF, TO CARRY 189
OUT THOSE PURPOSES; 190
(C) CONTRIBUTE TO ANY NATIONAL OR REGIONAL MARKETING 192
PROGRAM FOR OIL AND NATURAL GAS IF THE PROGRAM IS EXCLUSIVELY FOR 194
THE SAME PURPOSES AS THE PROGRAM ESTABLISHED UNDER THIS CHAPTER. 195
Sec. 1510.04. (A) INDEPENDENT PRODUCERS IN THIS STATE MAY 197
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PRESENT THE TECHNICAL ADVISORY COUNCIL WITH A PETITION SIGNED BY 199
THE LESSER OF ONE HUNDRED OR TEN PER CENT OF ALL SUCH PRODUCERS 200
REQUESTING THAT THE COUNCIL HOLD A REFERENDUM IN ACCORDANCE WITH 201
SECTION 1510.05 OF THE REVISED CODE TO ESTABLISH A MARKETING 202
PROGRAM FOR OIL AND NATURAL GAS OR TO AMEND AN EXISTING PROGRAM. 203
(B) AT THE TIME OF PRESENTATION OF THE PETITION TO THE 205
COUNCIL UNDER DIVISION (A) OF THIS SECTION, THE PETITIONERS ALSO 206
SHALL PRESENT THE PROPOSED PROGRAM OR AMENDMENT, WHICH SHALL 208
INCLUDE ALL OF THE FOLLOWING:
(1) THE RATE OF ASSESSMENT TO BE MADE ON THE PRODUCTION OF 210
OIL AND NATURAL GAS IN THIS STATE, WHICH SHALL NOT EXCEED ONE 211
CENT PER EACH GROSS BARREL OF OIL AND ONE-TENTH OF ONE CENT PER 212
THOUSAND CUBIC FEET OF NATURAL GAS;
(2) TERMS, CONDITIONS, LIMITATIONS, AND OTHER 214
QUALIFICATIONS FOR ASSESSMENT; 215
(3) PROCEDURES TO REFUND THE ASSESSMENT. 217
(C) BEFORE MAKING A DECISION UNDER THIS DIVISION TO 219
APPROVE OR DISAPPROVE A PROPOSED PROGRAM OR AMENDMENT, THE 220
COUNCIL SHALL PUBLISH IN AT LEAST TWO APPROPRIATE PERIODICALS 221
DESIGNATED BY THE COUNCIL A NOTICE THAT THE PROGRAM OR AMENDMENT 222
HAS BEEN PROPOSED AND INFORMING INTERESTED PERSONS OF THE 223
PROCEDURES FOR SUBMITTING COMMENTS REGARDING THE PROPOSAL. AFTER 224
PUBLISHING THE NOTICE, THE COUNCIL SHALL PROVIDE INTERESTED 225
PERSONS WITH A COPY OF THE PROPOSED PROGRAM OR AMENDMENT AND AN 227
OPPORTUNITY TO COMMENT ON THE PROPOSED PROGRAM OR AMENDMENT FOR 228
THIRTY DAYS AFTER THE PUBLICATION OF THE NOTICE. THE PETITIONERS 229
MAY MAKE CHANGES TO THE PROPOSED PROGRAM OR AMENDMENT BASED UPON 230
THE COMMENTS RECEIVED. THE COUNCIL MAY MAKE TECHNICAL CHANGES TO 231
THE PROPOSAL TO ENSURE COMPLIANCE WITH THIS CHAPTER. SUBSEQUENT 232
TO ANY CHANGES MADE BY THE PETITIONERS OR ANY TECHNICAL CHANGES 233
MADE BY THE COUNCIL TO A PROPOSED PROGRAM OR AMENDMENT, THE 234
COUNCIL MAY APPROVE OR DISAPPROVE THE PROPOSED PROGRAM OR 235
AMENDMENT.
(D) IF THE COUNCIL APPROVES THE PROPOSED PROGRAM OR 237
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AMENDMENT, WITH ANY CHANGES MADE UNDER DIVISION (C) OF THIS 238
SECTION, THE COUNCIL SHALL HOLD A REFERENDUM IN ACCORDANCE WITH 239
SECTION 1510.05 OF THE REVISED CODE TO ESTABLISH A MARKETING 240
PROGRAM FOR OIL AND NATURAL GAS OR TO AMEND AN EXISTING PROGRAM. 241
Sec. 1510.05. (A) NOT LATER THAN NINETY DAYS AFTER THE 244
TECHNICAL ADVISORY COUNCIL HAS APPROVED A MARKETING PROGRAM 245
PROPOSED UNDER SECTION 1510.04 OF THE REVISED CODE, OR AN 246
AMENDMENT TO SUCH A PROGRAM, THE COUNCIL SHALL DETERMINE BY A 247
REFERENDUM WHETHER THE ELIGIBLE INDEPENDENT PRODUCERS, AS 248
DETERMINED UNDER DIVISION (C) OF SECTION 1510.02 OF THE REVISED 249
CODE, FAVOR THE PROPOSED PROGRAM OR AMENDMENT. THE COUNCIL SHALL 250
CAUSE A BALLOT REQUEST FORM TO BE PUBLISHED NOT LESS THAN THIRTY 251
DAYS BEFORE THE BEGINNING OF THE ELECTION PERIOD ESTABLISHED 252
UNDER DIVISION (B) OF THIS SECTION IN AT LEAST TWO APPROPRIATE 254
PERIODICALS DESIGNATED BY THE COUNCIL AND SHALL MAKE THE FORM 255
AVAILABLE FOR REPRODUCTION TO ANY QUALIFIED INDEPENDENT PRODUCER 256
ASSOCIATION.
(B) IN A REFERENDUM HELD UNDER THIS SECTION, EACH ELIGIBLE 259
INDEPENDENT PRODUCER IS ENTITLED TO ONE VOTE. THE COUNCIL SHALL 260
ESTABLISH A THREE-DAY PERIOD DURING WHICH ELIGIBLE INDEPENDENT 261
PRODUCERS MAY VOTE EITHER IN PERSON DURING NORMAL BUSINESS HOURS 262
AT POLLING PLACES DESIGNATED BY THE COUNCIL OR BY MAILING A 263
BALLOT TO SUCH A POLLING PLACE. THE COUNCIL SHALL SEND A MAIL-IN 265
BALLOT BY FIRST-CLASS MAIL TO ANY ELIGIBLE INDEPENDENT PRODUCER 266
WHO REQUESTS ONE BY SENDING IN THE BALLOT REQUEST FORM PROVIDED 267
FOR IN DIVISION (A) OF THIS SECTION, BY CALLING ONE OF THE 269
POLLING PLACES DESIGNATED BY THE COUNCIL, OR BY ANY ADDITIONAL 270
METHOD THAT THE COUNCIL MAY PROVIDE. A BALLOT THAT IS RETURNED 271
BY MAIL IS NOT VALID IF IT IS POSTMARKED LATER THAN THE THIRD DAY 272
OF THE ELECTION PERIOD ESTABLISHED BY THE COUNCIL. 273
(C) A MARKETING PROGRAM OR AN AMENDMENT TO A MARKETING 276
PROGRAM IS FAVORED BY INDEPENDENT PRODUCERS IF A MAJORITY OF THE 277
INDEPENDENT PRODUCERS WHO VOTE IN THE REFERENDUM VOTE IN FAVOR OF 278
THE PROGRAM OR AMENDMENT. IF THE INDEPENDENT PRODUCERS WHO VOTE 279
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IN THE REFERENDUM DO NOT FAVOR THE PROPOSED PROGRAM OR AMENDMENT, 280
THE COUNCIL SHALL NOT HOLD ANOTHER REFERENDUM ON THE PROPOSED 281
PROGRAM OR AMENDMENT DURING THE TEN MONTHS FOLLOWING THE CLOSE OF 282
THE REFERENDUM AT WHICH THE INDEPENDENT PRODUCERS DID NOT FAVOR 283
THE PROPOSED PROGRAM OR AMENDMENT. 284
Sec. 1510.06. (A) WHEN THE INDEPENDENT PRODUCERS WHO VOTE 286
IN A REFERENDUM HELD UNDER SECTION 1510.05 OF THE REVISED CODE 287
FAVOR A PROPOSED MARKETING PROGRAM, THE TECHNICAL ADVISORY 288
COUNCIL SHALL ORDER THE PROGRAM ESTABLISHED. THE COUNCIL SHALL 290
APPOINT AN OPERATING COMMITTEE CONSISTING OF SEVEN MEMBERS. SIX 292
OF THE MEMBERS SHALL BE INDEPENDENT PRODUCERS. THE COUNCIL SHALL 293
SELECT THOSE MEMBERS FROM LISTS OF NAMES SUBMITTED BY QUALIFIED
INDEPENDENT PRODUCER ASSOCIATIONS. EACH MEMBER WHO IS AN 294
INDEPENDENT PRODUCER SHALL BE AT LEAST TWENTY-FIVE YEARS OLD, BE 295
A RESIDENT OF THIS STATE, AND HAVE AT LEAST FIVE YEARS OF ACTIVE 296
EXPERIENCE IN THE OIL AND NATURAL GAS INDUSTRY.
THE SEVENTH MEMBER SHALL BE A MEMBER OF THE OHIO FARM 298
BUREAU FEDERATION. THE COUNCIL SHALL SELECT THAT MEMBER FROM A 299
LIST SUBMITTED BY THE FEDERATION. 300
OF THE INITIAL APPOINTMENTS, THE COUNCIL SHALL APPOINT TWO 302
MEMBERS FOR TERMS OF ONE YEAR, TWO MEMBERS FOR TERMS OF TWO 303
YEARS, AND THREE MEMBERS FOR TERMS OF THREE YEARS. THEREAFTER, 305
THE COUNCIL SHALL APPOINT EACH MEMBER FOR A THREE-YEAR TERM 306
UNLESS THE APPOINTEE IS TO FILL A VACANCY, IN WHICH CASE THE 307
APPOINTEE SHALL BE APPOINTED FOR THE UNEXPIRED TERM. EACH SUCH 308
SUBSEQUENT APPOINTMENT SHALL BE MADE PRIOR TO THE EXPIRATION DATE 309
OF THE PRECEDING OR VACANT TERM. THE COUNCIL SHALL NOT APPOINT 310
ANY MEMBER OF AN OPERATING COMMITTEE TO SERVE MORE THAN THREE
SUCCESSIVE FULL THREE-YEAR TERMS. 311
(B) EACH MEMBER OF AN OPERATING COMMITTEE IS ENTITLED TO 314
ACTUAL AND NECESSARY TRAVEL AND INCIDENTAL EXPENSES WHILE 315
ATTENDING MEETINGS OF THE COMMITTEE OR WHILE ENGAGED IN THE 316
PERFORMANCE OF OFFICIAL RESPONSIBILITIES DELEGATED TO THE 317
COMMITTEE.
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(C) NO PERSON IS LIABLE IN A CIVIL ACTION FOR ANY ACTIONS 319
TAKEN IN GOOD FAITH AS A MEMBER OF AN OPERATING COMMITTEE. 320
Sec. 1510.07. THE TECHNICAL ADVISORY COUNCIL SHALL MONITOR 322
THE ACTIONS OF AN OPERATING COMMITTEE TO ENSURE ALL OF THE 323
FOLLOWING:
(A) A MARKETING PROGRAM IS SELF-SUPPORTING; 325
(B) THE COMMITTEE KEEPS ALL RECORDS THAT ARE REQUIRED FOR 327
AGENCIES OF THE STATE; 329
(C) ALL PROGRAM OPERATIONS ARE IN ACCORD WITH BOTH OF THE 331
FOLLOWING: 332
(1) THE PROVISIONS OF THE MARKETING PROGRAM; 334
(2) THIS CHAPTER AND PROCEDURES ESTABLISHED UNDER IT. 336
Sec. 1510.08. (A)(1) EXCEPT AS PROVIDED IN DIVISION 339
(A)(2) OF THIS SECTION, AN OPERATING COMMITTEE MAY LEVY 340
ASSESSMENTS ON THE PRODUCTION OF OIL AND NATURAL GAS IN THIS 341
STATE FOR THE PURPOSES OF A MARKETING PROGRAM ESTABLISHED UNDER 342
THIS CHAPTER.
(2) AN OPERATING COMMITTEE SHALL NOT LEVY AN ASSESSMENT 344
THAT WAS NOT APPROVED BY INDEPENDENT PRODUCERS OR THAT EXCEEDS 345
THE AMOUNT AUTHORIZED UNDER DIVISION (B)(1) OF SECTION 1510.04 OF 347
THE REVISED CODE. AN OPERATING COMMITTEE SHALL NOT LEVY AN 348
ASSESSMENT AGAINST AN INDEPENDENT PRODUCER WHO IS NOT ELIGIBLE TO 349
VOTE IN A REFERENDUM FOR THE MARKETING PROGRAM THAT THE OPERATING 350
COMMITTEE ADMINISTERS, AS DETERMINED UNDER DIVISION (C) OF 351
SECTION 1510.02 OF THE REVISED CODE. 352
(B) THE TECHNICAL ADVISORY COUNCIL MAY REQUIRE A FIRST 355
PURCHASER TO WITHHOLD ASSESSMENTS FROM ANY AMOUNTS THAT THE FIRST 356
PURCHASER OWES TO INDEPENDENT PRODUCERS AND, NOTWITHSTANDING 357
DIVISION (A)(2) OF THIS SECTION, TO REMIT THEM TO THE CHAIRPERSON 359
OF THE COUNCIL AT THE OFFICE OF THE DIVISION OF OIL AND GAS. A 360
FIRST PURCHASER WHO PAYS AN ASSESSMENT THAT IS LEVIED PURSUANT TO 361
THIS SECTION FOR AN INDEPENDENT PRODUCER MAY DEDUCT THE AMOUNT OF 362
THE ASSESSMENT FROM ANY MONEYS THAT THE FIRST PURCHASER OWES THE 363
INDEPENDENT PRODUCER. 364
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(C) A MARKETING PROGRAM SHALL REQUIRE A REFUND OF 367
ASSESSMENTS COLLECTED UNDER THIS SECTION AFTER RECEIVING AN 368
APPLICATION FOR A REFUND FROM AN INDEPENDENT PRODUCER. AN 369
APPLICATION FOR A REFUND SHALL BE MADE ON A FORM FURNISHED BY THE 371
COUNCIL. THE OPERATING COMMITTEE SHALL ENSURE THAT REFUND FORMS 372
ARE AVAILABLE WHERE ASSESSMENTS FOR ITS PROGRAM ARE WITHHELD. 373
AN INDEPENDENT PRODUCER WHO DESIRES A REFUND SHALL SUBMIT A 375
REQUEST FOR A REFUND NOT LATER THAN THE THIRTY-FIRST DAY OF MARCH 376
OF THE YEAR IN WHICH THE REQUEST IS SUBMITTED. THE COUNCIL SHALL 377
REFUND THE ASSESSMENT TO THE INDEPENDENT PRODUCER NOT LATER THAN 378
THE THIRTIETH DAY OF JUNE OF THE YEAR IN WHICH THE REQUEST FOR 379
THE REFUND IS SUBMITTED.
(D) AN OPERATING COMMITTEE SHALL NOT USE MONEYS FROM ANY 382
ASSESSMENTS THAT IT LEVIES FOR ANY POLITICAL OR LEGISLATIVE 383
PURPOSE OR FOR PREFERENTIAL TREATMENT OF ONE PERSON TO THE 384
DETRIMENT OF ANOTHER PERSON WHO IS AFFECTED BY THE MARKETING 385
PROGRAM THAT THE OPERATING COMMITTEE ADMINISTERS. 386
Sec. 1510.09. (A) THERE IS HEREBY ESTABLISHED A FUND FOR 389
ANY MARKETING PROGRAM THAT IS ESTABLISHED BY THE TECHNICAL 390
ADVISORY COUNCIL UNDER THIS CHAPTER. THE FUND SHALL BE IN THE 391
CUSTODY OF THE TREASURER OF STATE, BUT SHALL NOT BE PART OF THE
STATE TREASURY. EXCEPT AS AUTHORIZED IN DIVISION (B) OF THIS 393
SECTION, ALL MONEYS COLLECTED PURSUANT TO SECTION 1510.08 OF THE 394
REVISED CODE FOR THE MARKETING PROGRAM SHALL BE PAID INTO THE 395
FUND FOR THE MARKETING PROGRAM AND SHALL BE DISBURSED ONLY
PURSUANT TO A VOUCHER SIGNED BY THE CHAIRPERSON OF THE COUNCIL 396
FOR USE IN DEFRAYING THE COSTS OF ADMINISTRATION OF THE MARKETING 398
PROGRAM AND FOR CARRYING OUT SECTIONS 1510.02, 1510.03, AND 399
1510.11 OF THE REVISED CODE.
(B) IN LIEU OF DEPOSITS IN THE FUND ESTABLISHED UNDER 401
DIVISION (A) OF THIS SECTION, THE OPERATING COMMITTEE OF A 403
MARKETING PROGRAM ESTABLISHED UNDER THIS CHAPTER MAY DEPOSIT ALL 404
MONEYS COLLECTED PURSUANT TO SECTION 1510.08 OF THE REVISED CODE 405
WITH A BANK OR A SAVINGS AND LOAN ASSOCIATION AS DEFINED IN 406
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SECTIONS 1101.01 AND 1151.01 OF THE REVISED CODE. ALL MONEYS
COLLECTED PURSUANT TO SECTION 1510.08 OF THE REVISED CODE FOR THE 407
MARKETING PROGRAM AND DEPOSITED PURSUANT TO THIS DIVISION ALSO 408
SHALL BE USED ONLY IN DEFRAYING THE COSTS OF ADMINISTRATION OF 409
THE MARKETING PROGRAM AND FOR CARRYING OUT SECTIONS 1510.02,
1510.03, AND 1510.11 OF THE REVISED CODE. 410
(C) AN OPERATING COMMITTEE SHALL ESTABLISH A FISCAL YEAR 413
FOR ITS MARKETING PROGRAM, SHALL PUBLISH AN ACTIVITY AND 414
FINANCIAL REPORT WITHIN SIXTY DAYS OF THE END OF EACH FISCAL
YEAR, AND SHALL MAKE THE REPORT AVAILABLE TO EACH INDEPENDENT 415
PRODUCER WHO PAYS AN ASSESSMENT OR OTHERWISE CONTRIBUTES TO THE 416
MARKETING PROGRAM THAT THE COMMITTEE ADMINISTERS AND TO OTHER 417
INTERESTED PERSONS.
(D) IN ADDITION TO THE REPORT REQUIRED BY DIVISION (C) OF 420
THIS SECTION, AN OPERATING COMMITTEE THAT DEPOSITS MONEYS IN
ACCORDANCE WITH DIVISION (B) OF THIS SECTION SHALL SUBMIT TO THE 422
COUNCIL BOTH OF THE FOLLOWING: 423
(1) ANNUALLY, A FINANCIAL STATEMENT PREPARED BY A 425
CERTIFIED PUBLIC ACCOUNTANT HOLDING VALID CERTIFICATION FROM THE 426
OHIO BOARD OF ACCOUNTANCY ISSUED PURSUANT TO CHAPTER 4701. OF THE 427
REVISED CODE. THE OPERATING COMMITTEE SHALL FILE THE FINANCIAL 428
STATEMENT WITH THE COUNCIL NOT MORE THAN SIXTY DAYS AFTER THE END 430
OF EACH FISCAL YEAR.
(2) MONTHLY, AN UNAUDITED FINANCIAL STATEMENT. 432
Sec. 1510.10. (A) THE TECHNICAL ADVISORY COUNCIL 434
TEMPORARILY MAY SUSPEND THE OPERATION OF A MARKETING PROGRAM, OR 435
ANY PART OF A PROGRAM, FOR ANY REASON UPON RECOMMENDATION BY THE 436
OPERATING COMMITTEE OF THE PROGRAM FOR A PERIOD OF NOT MORE THAN 438
TWELVE CONSECUTIVE MONTHS.
(B) AT LEAST ONCE IN EACH FIVE YEARS OF OPERATION, OR AT 440
ANY TIME UPON WRITTEN PETITION BY THE LESSER OF ONE HUNDRED OR 441
TEN PER CENT OF THE INDEPENDENT PRODUCERS IN THIS STATE, THE 442
COUNCIL SHALL HOLD A HEARING AS PRESCRIBED IN CHAPTER 119. OF THE 443
REVISED CODE TO CONSIDER THE CONTINUATION OF THE PROGRAM. 444
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(C) NOT LATER THAN THIRTY DAYS AFTER THE CLOSE OF ANY 446
HEARING TO CONSIDER THE CONTINUATION OF A MARKETING PROGRAM, THE 447
COUNCIL SHALL RECOMMEND CONTINUATION OR TERMINATION OF THE 448
PROGRAM, SHALL GIVE PUBLIC NOTICE, AND SHALL NOTIFY EACH 449
INDEPENDENT PRODUCER OF RECORD, ALL PARTIES APPEARING AT THE 450
HEARING, AND OTHER INTERESTED PARTIES OF THE RECOMMENDATION.
(D) WHEN THE COUNCIL RECOMMENDS TERMINATION OF A MARKETING 453
PROGRAM, WITHIN FORTY-FIVE DAYS THE COUNCIL SHALL CONDUCT A
REFERENDUM TO DETERMINE WHETHER INDEPENDENT PRODUCERS FAVOR THE 454
PROPOSED TERMINATION. INDEPENDENT PRODUCERS FAVOR THE 455
TERMINATION OF THE PROGRAM IF A MAJORITY OF THE INDEPENDENT 456
PRODUCERS WHO VOTE IN THE REFERENDUM VOTE IN FAVOR OF TERMINATION 457
OF THE PROGRAM.
Sec. 1510.11. WHEN INDEPENDENT PRODUCERS FAVOR TERMINATION 460
OF A MARKETING PROGRAM ESTABLISHED UNDER THIS CHAPTER, THE 461
OPERATING COMMITTEE OF THE PROGRAM AND THE TECHNICAL ADVISORY 462
COUNCIL SHALL TERMINATE ALL OPERATIONS OF THE PROGRAM. UPON 463
TERMINATION OF THE PROGRAM, THE COUNCIL SHALL RETURN ANY 464
REMAINING UNOBLIGATED MONEYS TO THE INDEPENDENT PRODUCERS WHO 465
PAID THE ASSESSMENTS LEVIED UNDER SECTION 1510.08 OF THE REVISED
CODE DURING THE IMMEDIATELY PRECEDING TWELVE MONTHS AND SHALL 467
PRORATE THE MONEYS ACCORDINGLY.
Sec. 1510.12. THE TECHNICAL ADVISORY COUNCIL MAY INSTITUTE 470
AN ACTION AT LAW OR IN EQUITY THAT APPEARS NECESSARY TO ENFORCE 471
COMPLIANCE WITH THIS CHAPTER, A PROCEDURE ESTABLISHED UNDER IT, 472
OR A MARKETING PROGRAM ESTABLISHED UNDER IT.
Sec. 1510.13. (A) NO PERSON SHALL KNOWINGLY FAIL OR 474
REFUSE TO WITHHOLD OR REMIT ANY ASSESSMENT LEVIED UNDER SECTION 475
1510.08 OF THE REVISED CODE.
(B) BEFORE CRIMINAL PROCEEDINGS ARE INSTITUTED PURSUANT TO 477
THIS SECTION, THE TECHNICAL ADVISORY COUNCIL SHALL GIVE THE 478
ALLEGED VIOLATOR AN OPPORTUNITY TO PRESENT THE ALLEGED VIOLATOR'S 479
VIEWS CONCERNING WHY THE PROCEEDINGS SHOULD NOT BE INSTITUTED. 480
Sec. 1510.99. WHOEVER VIOLATES SECTION 1510.13 OF THE 482
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REVISED CODE IS GUILTY OF A MISDEMEANOR OF THE FOURTH DEGREE. 483
Section 2. That existing section 1509.38 of the Revised 485
Code is hereby repealed. 486