As Passed by the House 1
122nd General Assembly 4
Regular Session Sub. S. B. No. 46 5
1997-1998 6
SENATORS CARNES-DIX-GAETH-WHITE- 8
REPRESENTATIVES HAINES-HOUSEHOLDER-OGG-OPFER-PADGETT-VESPER- 9
TIBERI-TERWILLEGER-LEWIS-REID 10
12
A B I L L
To amend sections 1509.38, 3737.91, and 3737.92 and 14
to enact sections 1510.01 to 1510.13 and 1510.99 15
of the Revised Code to provide for the 17
establishment of an oil and natural gas marketing 18
program and to add requirements for eligibility 19
to receive payment from the Petroleum Underground 20
Storage Tank Financial Assurance Fund. 21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 23
Section 1. That sections 1509.38, 3737.91, and 3737.92 be 25
amended and sections 1510.01, 1510.02, 1510.03, 1510.04, 1510.05, 28
1510.06, 1510.07, 1510.08, 1510.09, 1510.10, 1510.11, 1510.12, 29
1510.13, and 1510.99 of the Revised Code be enacted to read as 30
follows:
Sec. 1509.38. There is hereby created in the division of 40
oil and gas a technical advisory council on oil and gas, which 41
shall consist of eight members to be appointed by the governor 42
with the advice and consent of the senate. Three members shall 43
be independent oil or gas producers, operators, or their 44
representatives, operating and producing primarily in Ohio THIS 45
STATE, three members shall be oil or gas producers, operators, or 47
their representatives having substantial oil and gas producing 48
operations in Ohio THIS STATE and at least one other state, one 49
member shall represent the public, and one member shall represent 51
persons having landowners' royalty interests in oil and gas 52
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production. All members must SHALL be residents of Ohio THIS 53
STATE, and all members, except the members representing the 55
public and persons having landowners' royalty interests, must 56
SHALL have at least five years of practical or technical 58
experience in oil or gas drilling and production. Not more than 59
one member may represent any one company, producer, or operator. 60
Terms of office shall be for three years, commencing on the 62
first day of February and ending on the thirty-first day of 63
January, except that upon expiration of the term ending February 64
1, 1976, the new term which succeeds it shall commence on 65
February 2, 1976 and end on January 31, 1979; upon expiration of 66
the terms ending on February 2, 1975, the new terms which succeed 67
them shall commence on February 3, 1975 and end on January 31, 68
1978; and upon expiration of the terms ending on February 4, 69
1973, the new terms which succeed them shall commence on February 70
5, 1973 and end on January 31, 1976. Each member shall hold 71
office from the date of his appointment until the end of the term 72
for which he THE MEMBER was appointed. A vacancy in the office 73
of a member shall be filled by the governor, with the advice and 75
consent of the senate. Any member appointed to fill a vacancy 76
occurring prior to the expiration of the term for which his THE 77
MEMBER'S predecessor was appointed shall hold office for the 78
remainder of such THAT term. Any member shall continue in office 80
subsequent to the expiration date of his THE MEMBER'S term until 81
his THE MEMBER'S successor takes office, or until a period of 84
sixty days has elapsed, whichever occurs first.
The council shall select from among its members a chairman 86
CHAIRPERSON, a vice-chairman VICE-CHAIRPERSON, and a secretary. 88
All members are entitled to their actual and necessary expenses
incurred in the performance of their duties as such members, 89
payable from the appropriations for the division. 92
The governor may remove any member for inefficiency, 94
neglect of duty, or malfeasance in office. 95
The council shall hold at least one regular meeting in each 97
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quarter of a calendar year, and shall keep a record of its 98
proceedings. Special meetings may be called by the chairman, 99
CHAIRPERSON and shall be called by him THE CHAIRPERSON upon 101
receipt of a written request therefor signed by two or more
members of the council. A written notice of the time and place 103
of each meeting shall be sent to each member of the council. 104
Five members constitute a quorum, and no action of the council is 105
valid unless five members concur.
The council shall, when requested by the chief of the 107
division of oil and gas, SHALL consult with and advise the chief 108
and perform such other duties as THAT may be lawfully delegated 110
to it by the chief. The council shall have the right to MAY 111
participate in hearings held by the chief pursuant to Chapter
1509. of the Revised Code, UNDER THIS CHAPTER and shall have HAS 113
powers of approval as provided in sections 1509.24 and 1509.25 of 115
the Revised Code. THE COUNCIL SHALL CONDUCT THE ACTIVITIES 116
REQUIRED, AND EXERCISE THE AUTHORITY GRANTED, UNDER CHAPTER 1510. 117
OF THE REVISED CODE.
Sec. 1510.01. AS USED IN THIS CHAPTER: 119
(A) "FIRST PURCHASER" MEANS: 121
(1) WITH REGARD TO CRUDE OIL, THE PERSON TO WHOM TITLE 123
FIRST IS TRANSFERRED BEYOND THE GATHERING TANK OR TANKS, BEYOND 124
THE FACILITY FROM WHICH THE CRUDE OIL WAS FIRST PRODUCED, OR 125
BOTH; 126
(2) WITH REGARD TO NATURAL GAS, THE PERSON TO WHOM TITLE 128
FIRST IS TRANSFERRED BEYOND THE INLET SIDE OF THE MEASUREMENT 129
STATION FROM WHICH THE NATURAL GAS WAS FIRST PRODUCED. 130
(B) "INDEPENDENT PRODUCER" MEANS A PERSON WHO COMPLIES 133
WITH BOTH OF THE FOLLOWING:
(1) PRODUCES OIL OR NATURAL GAS AND IS NOT ENGAGED IN 135
REFINING EITHER PRODUCT;
(2) DERIVES A MAJORITY OF INCOME FROM OWNERSHIP IN 137
PROPERTIES PRODUCING OIL OR NATURAL GAS. 138
(C) "QUALIFIED INDEPENDENT PRODUCER ASSOCIATION" MEANS AN 141
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ASSOCIATION THAT COMPLIES WITH ALL OF THE FOLLOWING: 142
(1) IT IS IN EXISTENCE ON THE EFFECTIVE DATE OF THIS 144
SECTION; 145
(2) IT IS ORGANIZED AND OPERATING WITHIN THIS STATE; 148
(3) A MAJORITY OF THE MEMBERS OF ITS GOVERNING BODY ARE 150
INDEPENDENT PRODUCERS. 151
(D) "TECHNICAL ADVISORY COUNCIL" OR "COUNCIL" MEANS THE 153
TECHNICAL ADVISORY COUNCIL CREATED IN THE DIVISION OF OIL AND GAS 154
UNDER SECTION 1509.38 OF THE REVISED CODE. 155
Sec. 1510.02. IN ACCORDANCE WITH THIS CHAPTER, THE 157
TECHNICAL ADVISORY COUNCIL SHALL DO ALL OF THE FOLLOWING: 159
(A) ESTABLISH PROCEDURES BY WHICH INDEPENDENT PRODUCERS IN 162
THIS STATE MAY PROPOSE, DEVELOP, AND OPERATE A MARKETING PROGRAM 163
TO DO ALL OF THE FOLLOWING: 164
(1) DEMONSTRATE TO THE GENERAL PUBLIC THE IMPORTANCE AND 166
ECONOMIC SIGNIFICANCE OF THE OIL AND NATURAL GAS INDUSTRY IN THIS 168
STATE;
(2) ENCOURAGE THE WISE AND EFFICIENT USE OF ENERGY; 171
(3) PROMOTE ENVIRONMENTALLY SOUND PRODUCTION METHODS AND 173
TECHNOLOGIES IN THE INDUSTRY; 174
(4) SUPPORT RESEARCH AND EDUCATIONAL ACTIVITIES CONCERNING 177
THE INDUSTRY.
(B) ESTABLISH PROCEDURES NECESSARY TO IMPLEMENT AND 180
ADMINISTER THIS CHAPTER; 181
(C) DETERMINE THE ELIGIBILITY OF INDEPENDENT PRODUCERS TO 184
PARTICIPATE IN REFERENDUMS AND OTHER PROCEDURES THAT MAY BE 185
REQUIRED TO ESTABLISH A MARKETING PROGRAM FOR OIL AND NATURAL 186
GAS.
Sec. 1510.03. A MARKETING PROGRAM THAT IS ESTABLISHED 189
UNDER THIS CHAPTER MAY INCLUDE AUTHORITY TO DO AT LEAST ALL OF 190
THE FOLLOWING:
(A) CARRY OUT THE PURPOSES OF THE PROGRAM IDENTIFIED IN 192
SECTION 1510.02 OF THE REVISED CODE; 193
(B) ENTER INTO CONTRACTS WITH QUALIFIED ORGANIZATIONS, 195
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AGENCIES, OR INDIVIDUALS, OR ANY COMBINATION THEREOF, TO CARRY 196
OUT THOSE PURPOSES; 197
(C) CONTRIBUTE TO ANY NATIONAL OR REGIONAL MARKETING 199
PROGRAM FOR OIL AND NATURAL GAS IF THE PROGRAM IS EXCLUSIVELY FOR 201
THE SAME PURPOSES AS THE PROGRAM ESTABLISHED UNDER THIS CHAPTER. 202
Sec. 1510.04. (A) INDEPENDENT PRODUCERS IN THIS STATE MAY 204
PRESENT THE TECHNICAL ADVISORY COUNCIL WITH A PETITION SIGNED BY 206
THE LESSER OF ONE HUNDRED OR TEN PER CENT OF ALL SUCH PRODUCERS 207
REQUESTING THAT THE COUNCIL HOLD A REFERENDUM IN ACCORDANCE WITH 208
SECTION 1510.05 OF THE REVISED CODE TO ESTABLISH A MARKETING 209
PROGRAM FOR OIL AND NATURAL GAS OR TO AMEND AN EXISTING PROGRAM. 210
(B) AT THE TIME OF PRESENTATION OF THE PETITION TO THE 212
COUNCIL UNDER DIVISION (A) OF THIS SECTION, THE PETITIONERS ALSO 213
SHALL PRESENT THE PROPOSED PROGRAM OR AMENDMENT, WHICH SHALL 215
INCLUDE ALL OF THE FOLLOWING:
(1) THE RATE OF ASSESSMENT TO BE MADE ON THE PRODUCTION OF 217
OIL AND NATURAL GAS IN THIS STATE, WHICH SHALL NOT EXCEED ONE 218
CENT PER EACH GROSS BARREL OF OIL AND ONE-TENTH OF ONE CENT PER 219
THOUSAND CUBIC FEET OF NATURAL GAS;
(2) TERMS, CONDITIONS, LIMITATIONS, AND OTHER 221
QUALIFICATIONS FOR ASSESSMENT; 222
(3) PROCEDURES TO REFUND THE ASSESSMENT. 224
(C) BEFORE MAKING A DECISION UNDER THIS DIVISION TO 226
APPROVE OR DISAPPROVE A PROPOSED PROGRAM OR AMENDMENT, THE 227
COUNCIL SHALL PUBLISH IN AT LEAST TWO APPROPRIATE PERIODICALS 228
DESIGNATED BY THE COUNCIL A NOTICE THAT THE PROGRAM OR AMENDMENT 229
HAS BEEN PROPOSED AND INFORMING INTERESTED PERSONS OF THE 230
PROCEDURES FOR SUBMITTING COMMENTS REGARDING THE PROPOSAL. AFTER 231
PUBLISHING THE NOTICE, THE COUNCIL SHALL PROVIDE INTERESTED 232
PERSONS WITH A COPY OF THE PROPOSED PROGRAM OR AMENDMENT AND AN 234
OPPORTUNITY TO COMMENT ON THE PROPOSED PROGRAM OR AMENDMENT FOR 235
THIRTY DAYS AFTER THE PUBLICATION OF THE NOTICE. THE PETITIONERS 236
MAY MAKE CHANGES TO THE PROPOSED PROGRAM OR AMENDMENT BASED UPON 237
THE COMMENTS RECEIVED. THE COUNCIL MAY MAKE TECHNICAL CHANGES TO 238
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THE PROPOSAL TO ENSURE COMPLIANCE WITH THIS CHAPTER. SUBSEQUENT 239
TO ANY CHANGES MADE BY THE PETITIONERS OR ANY TECHNICAL CHANGES 240
MADE BY THE COUNCIL TO A PROPOSED PROGRAM OR AMENDMENT, THE 241
COUNCIL MAY APPROVE OR DISAPPROVE THE PROPOSED PROGRAM OR 242
AMENDMENT.
(D) IF THE COUNCIL APPROVES THE PROPOSED PROGRAM OR 244
AMENDMENT, WITH ANY CHANGES MADE UNDER DIVISION (C) OF THIS 245
SECTION, THE COUNCIL SHALL HOLD A REFERENDUM IN ACCORDANCE WITH 246
SECTION 1510.05 OF THE REVISED CODE TO ESTABLISH A MARKETING 247
PROGRAM FOR OIL AND NATURAL GAS OR TO AMEND AN EXISTING PROGRAM. 248
Sec. 1510.05. (A) NOT LATER THAN NINETY DAYS AFTER THE 251
TECHNICAL ADVISORY COUNCIL HAS APPROVED A MARKETING PROGRAM 252
PROPOSED UNDER SECTION 1510.04 OF THE REVISED CODE, OR AN 253
AMENDMENT TO SUCH A PROGRAM, THE COUNCIL SHALL DETERMINE BY A 254
REFERENDUM WHETHER THE ELIGIBLE INDEPENDENT PRODUCERS, AS 255
DETERMINED UNDER DIVISION (C) OF SECTION 1510.02 OF THE REVISED 256
CODE, FAVOR THE PROPOSED PROGRAM OR AMENDMENT. THE COUNCIL SHALL 257
CAUSE A BALLOT REQUEST FORM TO BE PUBLISHED NOT LESS THAN THIRTY 258
DAYS BEFORE THE BEGINNING OF THE ELECTION PERIOD ESTABLISHED 259
UNDER DIVISION (B) OF THIS SECTION IN AT LEAST TWO APPROPRIATE 261
PERIODICALS DESIGNATED BY THE COUNCIL AND SHALL MAKE THE FORM 262
AVAILABLE FOR REPRODUCTION TO ANY QUALIFIED INDEPENDENT PRODUCER 263
ASSOCIATION.
(B) IN A REFERENDUM HELD UNDER THIS SECTION, EACH ELIGIBLE 266
INDEPENDENT PRODUCER IS ENTITLED TO ONE VOTE. THE COUNCIL SHALL 267
ESTABLISH A THREE-DAY PERIOD DURING WHICH ELIGIBLE INDEPENDENT 268
PRODUCERS MAY VOTE EITHER IN PERSON DURING NORMAL BUSINESS HOURS 269
AT POLLING PLACES DESIGNATED BY THE COUNCIL OR BY MAILING A 270
BALLOT TO SUCH A POLLING PLACE. THE COUNCIL SHALL SEND A MAIL-IN 272
BALLOT BY FIRST-CLASS MAIL TO ANY ELIGIBLE INDEPENDENT PRODUCER 273
WHO REQUESTS ONE BY SENDING IN THE BALLOT REQUEST FORM PROVIDED 274
FOR IN DIVISION (A) OF THIS SECTION, BY CALLING ONE OF THE 276
POLLING PLACES DESIGNATED BY THE COUNCIL, OR BY ANY ADDITIONAL 277
METHOD THAT THE COUNCIL MAY PROVIDE. A BALLOT THAT IS RETURNED 278
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BY MAIL IS NOT VALID IF IT IS POSTMARKED LATER THAN THE THIRD DAY 279
OF THE ELECTION PERIOD ESTABLISHED BY THE COUNCIL. 280
(C) A MARKETING PROGRAM OR AN AMENDMENT TO A MARKETING 283
PROGRAM IS FAVORED BY INDEPENDENT PRODUCERS IF A MAJORITY OF THE 284
INDEPENDENT PRODUCERS WHO VOTE IN THE REFERENDUM VOTE IN FAVOR OF 285
THE PROGRAM OR AMENDMENT. IF THE INDEPENDENT PRODUCERS WHO VOTE 286
IN THE REFERENDUM DO NOT FAVOR THE PROPOSED PROGRAM OR AMENDMENT, 287
THE COUNCIL SHALL NOT HOLD ANOTHER REFERENDUM ON THE PROPOSED 288
PROGRAM OR AMENDMENT DURING THE TEN MONTHS FOLLOWING THE CLOSE OF 289
THE REFERENDUM AT WHICH THE INDEPENDENT PRODUCERS DID NOT FAVOR 290
THE PROPOSED PROGRAM OR AMENDMENT. 291
Sec. 1510.06. (A) WHEN THE INDEPENDENT PRODUCERS WHO VOTE 293
IN A REFERENDUM HELD UNDER SECTION 1510.05 OF THE REVISED CODE 294
FAVOR A PROPOSED MARKETING PROGRAM, THE TECHNICAL ADVISORY 295
COUNCIL SHALL ORDER THE PROGRAM ESTABLISHED. THE COUNCIL SHALL 297
APPOINT AN OPERATING COMMITTEE CONSISTING OF SEVEN MEMBERS. SIX 299
OF THE MEMBERS SHALL BE INDEPENDENT PRODUCERS. THE COUNCIL SHALL 300
SELECT THOSE MEMBERS FROM LISTS OF NAMES SUBMITTED BY QUALIFIED
INDEPENDENT PRODUCER ASSOCIATIONS. EACH MEMBER WHO IS AN 301
INDEPENDENT PRODUCER SHALL BE AT LEAST TWENTY-FIVE YEARS OLD, BE 302
A RESIDENT OF THIS STATE, AND HAVE AT LEAST FIVE YEARS OF ACTIVE 303
EXPERIENCE IN THE OIL AND NATURAL GAS INDUSTRY.
THE SEVENTH MEMBER SHALL BE A MEMBER OF AN ORGANIZATION 305
THAT REPRESENTS FARMERS. THE COUNCIL SHALL SELECT THAT MEMBER 306
FROM A LIST SUBMITTED BY SUCH AN ORGANIZATION. 307
OF THE INITIAL APPOINTMENTS, THE COUNCIL SHALL APPOINT TWO 309
MEMBERS FOR TERMS OF ONE YEAR, TWO MEMBERS FOR TERMS OF TWO 310
YEARS, AND THREE MEMBERS FOR TERMS OF THREE YEARS. THEREAFTER, 312
THE COUNCIL SHALL APPOINT EACH MEMBER FOR A THREE-YEAR TERM 313
UNLESS THE APPOINTEE IS TO FILL A VACANCY, IN WHICH CASE THE 314
APPOINTEE SHALL BE APPOINTED FOR THE UNEXPIRED TERM. EACH SUCH 315
SUBSEQUENT APPOINTMENT SHALL BE MADE PRIOR TO THE EXPIRATION DATE 316
OF THE PRECEDING OR VACANT TERM. THE COUNCIL SHALL NOT APPOINT 317
ANY MEMBER OF AN OPERATING COMMITTEE TO SERVE MORE THAN THREE
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SUCCESSIVE FULL THREE-YEAR TERMS. 318
(B) EACH MEMBER OF AN OPERATING COMMITTEE IS ENTITLED TO 321
ACTUAL AND NECESSARY TRAVEL AND INCIDENTAL EXPENSES WHILE 322
ATTENDING MEETINGS OF THE COMMITTEE OR WHILE ENGAGED IN THE 323
PERFORMANCE OF OFFICIAL RESPONSIBILITIES DELEGATED TO THE 324
COMMITTEE.
(C) NO PERSON IS LIABLE IN A CIVIL ACTION FOR ANY ACTIONS 326
TAKEN IN GOOD FAITH AS A MEMBER OF AN OPERATING COMMITTEE. 327
Sec. 1510.07. THE TECHNICAL ADVISORY COUNCIL SHALL MONITOR 329
THE ACTIONS OF AN OPERATING COMMITTEE TO ENSURE ALL OF THE 330
FOLLOWING:
(A) A MARKETING PROGRAM IS SELF-SUPPORTING; 332
(B) THE COMMITTEE KEEPS ALL RECORDS THAT ARE REQUIRED FOR 334
AGENCIES OF THE STATE; 336
(C) ALL PROGRAM OPERATIONS ARE IN ACCORD WITH BOTH OF THE 338
FOLLOWING: 339
(1) THE PROVISIONS OF THE MARKETING PROGRAM; 341
(2) THIS CHAPTER AND PROCEDURES ESTABLISHED UNDER IT. 343
Sec. 1510.08. (A)(1) EXCEPT AS PROVIDED IN DIVISION 346
(A)(2) OF THIS SECTION, AN OPERATING COMMITTEE MAY LEVY 347
ASSESSMENTS ON THE PRODUCTION OF OIL AND NATURAL GAS IN THIS 348
STATE FOR THE PURPOSES OF A MARKETING PROGRAM ESTABLISHED UNDER 349
THIS CHAPTER.
(2) AN OPERATING COMMITTEE SHALL NOT LEVY AN ASSESSMENT 351
THAT WAS NOT APPROVED BY INDEPENDENT PRODUCERS OR THAT EXCEEDS 352
THE AMOUNT AUTHORIZED UNDER DIVISION (B)(1) OF SECTION 1510.04 OF 354
THE REVISED CODE. AN OPERATING COMMITTEE SHALL NOT LEVY AN 355
ASSESSMENT AGAINST AN INDEPENDENT PRODUCER WHO IS NOT ELIGIBLE TO 356
VOTE IN A REFERENDUM FOR THE MARKETING PROGRAM THAT THE OPERATING 357
COMMITTEE ADMINISTERS, AS DETERMINED UNDER DIVISION (C) OF 358
SECTION 1510.02 OF THE REVISED CODE. 359
(B) THE TECHNICAL ADVISORY COUNCIL MAY REQUIRE A FIRST 362
PURCHASER TO WITHHOLD ASSESSMENTS FROM ANY AMOUNTS THAT THE FIRST 363
PURCHASER OWES TO INDEPENDENT PRODUCERS AND, NOTWITHSTANDING 364
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DIVISION (A)(2) OF THIS SECTION, TO REMIT THEM TO THE CHAIRPERSON 366
OF THE COUNCIL AT THE OFFICE OF THE DIVISION OF OIL AND GAS. A 367
FIRST PURCHASER WHO PAYS AN ASSESSMENT THAT IS LEVIED PURSUANT TO 368
THIS SECTION FOR AN INDEPENDENT PRODUCER MAY DEDUCT THE AMOUNT OF 369
THE ASSESSMENT FROM ANY MONEYS THAT THE FIRST PURCHASER OWES THE 370
INDEPENDENT PRODUCER. 371
(C) A MARKETING PROGRAM SHALL REQUIRE A REFUND OF 374
ASSESSMENTS COLLECTED UNDER THIS SECTION AFTER RECEIVING AN 375
APPLICATION FOR A REFUND FROM AN INDEPENDENT PRODUCER. AN 376
APPLICATION FOR A REFUND SHALL BE MADE ON A FORM FURNISHED BY THE 378
COUNCIL. THE OPERATING COMMITTEE SHALL ENSURE THAT REFUND FORMS 379
ARE AVAILABLE WHERE ASSESSMENTS FOR ITS PROGRAM ARE WITHHELD. 380
AN INDEPENDENT PRODUCER WHO DESIRES A REFUND SHALL SUBMIT A 382
REQUEST FOR A REFUND NOT LATER THAN THE THIRTY-FIRST DAY OF MARCH 383
OF THE YEAR IN WHICH THE REQUEST IS SUBMITTED. THE COUNCIL SHALL 384
REFUND THE ASSESSMENT TO THE INDEPENDENT PRODUCER NOT LATER THAN 385
THE THIRTIETH DAY OF JUNE OF THE YEAR IN WHICH THE REQUEST FOR 386
THE REFUND IS SUBMITTED.
(D) AN OPERATING COMMITTEE SHALL NOT USE MONEYS FROM ANY 389
ASSESSMENTS THAT IT LEVIES FOR ANY POLITICAL OR LEGISLATIVE 390
PURPOSE OR FOR PREFERENTIAL TREATMENT OF ONE PERSON TO THE 391
DETRIMENT OF ANOTHER PERSON WHO IS AFFECTED BY THE MARKETING 392
PROGRAM THAT THE OPERATING COMMITTEE ADMINISTERS. 393
Sec. 1510.09. (A) THERE IS HEREBY ESTABLISHED A FUND FOR 396
ANY MARKETING PROGRAM THAT IS ESTABLISHED BY THE TECHNICAL 397
ADVISORY COUNCIL UNDER THIS CHAPTER. THE FUND SHALL BE IN THE 398
CUSTODY OF THE TREASURER OF STATE, BUT SHALL NOT BE PART OF THE
STATE TREASURY. EXCEPT AS AUTHORIZED IN DIVISION (B) OF THIS 400
SECTION, ALL MONEYS COLLECTED PURSUANT TO SECTION 1510.08 OF THE 401
REVISED CODE FOR THE MARKETING PROGRAM SHALL BE PAID INTO THE 402
FUND FOR THE MARKETING PROGRAM AND SHALL BE DISBURSED ONLY
PURSUANT TO A VOUCHER SIGNED BY THE CHAIRPERSON OF THE COUNCIL 403
FOR USE IN DEFRAYING THE COSTS OF ADMINISTRATION OF THE MARKETING 405
PROGRAM AND FOR CARRYING OUT SECTIONS 1510.02, 1510.03, AND 406
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1510.11 OF THE REVISED CODE.
(B) IN LIEU OF DEPOSITS IN THE FUND ESTABLISHED UNDER 408
DIVISION (A) OF THIS SECTION, THE OPERATING COMMITTEE OF A 410
MARKETING PROGRAM ESTABLISHED UNDER THIS CHAPTER MAY DEPOSIT ALL 411
MONEYS COLLECTED PURSUANT TO SECTION 1510.08 OF THE REVISED CODE 412
WITH A BANK OR A SAVINGS AND LOAN ASSOCIATION AS DEFINED IN 413
SECTIONS 1101.01 AND 1151.01 OF THE REVISED CODE. ALL MONEYS
COLLECTED PURSUANT TO SECTION 1510.08 OF THE REVISED CODE FOR THE 414
MARKETING PROGRAM AND DEPOSITED PURSUANT TO THIS DIVISION ALSO 415
SHALL BE USED ONLY IN DEFRAYING THE COSTS OF ADMINISTRATION OF 416
THE MARKETING PROGRAM AND FOR CARRYING OUT SECTIONS 1510.02,
1510.03, AND 1510.11 OF THE REVISED CODE. 417
(C) AN OPERATING COMMITTEE SHALL ESTABLISH A FISCAL YEAR 420
FOR ITS MARKETING PROGRAM, SHALL PUBLISH AN ACTIVITY AND 421
FINANCIAL REPORT WITHIN SIXTY DAYS OF THE END OF EACH FISCAL
YEAR, AND SHALL MAKE THE REPORT AVAILABLE TO EACH INDEPENDENT 422
PRODUCER WHO PAYS AN ASSESSMENT OR OTHERWISE CONTRIBUTES TO THE 423
MARKETING PROGRAM THAT THE COMMITTEE ADMINISTERS AND TO OTHER 424
INTERESTED PERSONS.
(D) IN ADDITION TO THE REPORT REQUIRED BY DIVISION (C) OF 427
THIS SECTION, AN OPERATING COMMITTEE THAT DEPOSITS MONEYS IN
ACCORDANCE WITH DIVISION (B) OF THIS SECTION SHALL SUBMIT TO THE 429
COUNCIL BOTH OF THE FOLLOWING: 430
(1) ANNUALLY, A FINANCIAL STATEMENT PREPARED BY A 432
CERTIFIED PUBLIC ACCOUNTANT HOLDING VALID CERTIFICATION FROM THE 433
OHIO BOARD OF ACCOUNTANCY ISSUED PURSUANT TO CHAPTER 4701. OF THE 434
REVISED CODE. THE OPERATING COMMITTEE SHALL FILE THE FINANCIAL 435
STATEMENT WITH THE COUNCIL NOT MORE THAN SIXTY DAYS AFTER THE END 437
OF EACH FISCAL YEAR.
(2) MONTHLY, AN UNAUDITED FINANCIAL STATEMENT. 439
Sec. 1510.10. (A) THE TECHNICAL ADVISORY COUNCIL 441
TEMPORARILY MAY SUSPEND THE OPERATION OF A MARKETING PROGRAM, OR 442
ANY PART OF A PROGRAM, FOR ANY REASON UPON RECOMMENDATION BY THE 443
OPERATING COMMITTEE OF THE PROGRAM FOR A PERIOD OF NOT MORE THAN 445
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TWELVE CONSECUTIVE MONTHS.
(B) AT LEAST ONCE IN EACH FIVE YEARS OF OPERATION, OR AT 447
ANY TIME UPON WRITTEN PETITION BY THE LESSER OF ONE HUNDRED OR 448
TEN PER CENT OF THE INDEPENDENT PRODUCERS IN THIS STATE, THE 449
COUNCIL SHALL HOLD A HEARING AS PRESCRIBED IN CHAPTER 119. OF THE 450
REVISED CODE TO CONSIDER THE CONTINUATION OF THE PROGRAM. 451
(C) NOT LATER THAN THIRTY DAYS AFTER THE CLOSE OF ANY 453
HEARING TO CONSIDER THE CONTINUATION OF A MARKETING PROGRAM, THE 454
COUNCIL SHALL RECOMMEND CONTINUATION OR TERMINATION OF THE 455
PROGRAM, SHALL GIVE PUBLIC NOTICE, AND SHALL NOTIFY EACH 456
INDEPENDENT PRODUCER OF RECORD, ALL PARTIES APPEARING AT THE 457
HEARING, AND OTHER INTERESTED PARTIES OF THE RECOMMENDATION.
(D) WHEN THE COUNCIL RECOMMENDS TERMINATION OF A MARKETING 460
PROGRAM, WITHIN FORTY-FIVE DAYS THE COUNCIL SHALL CONDUCT A
REFERENDUM TO DETERMINE WHETHER INDEPENDENT PRODUCERS FAVOR THE 461
PROPOSED TERMINATION. INDEPENDENT PRODUCERS FAVOR THE 462
TERMINATION OF THE PROGRAM IF A MAJORITY OF THE INDEPENDENT 463
PRODUCERS WHO VOTE IN THE REFERENDUM VOTE IN FAVOR OF TERMINATION 464
OF THE PROGRAM.
Sec. 1510.11. WHEN INDEPENDENT PRODUCERS FAVOR TERMINATION 467
OF A MARKETING PROGRAM ESTABLISHED UNDER THIS CHAPTER, THE 468
OPERATING COMMITTEE OF THE PROGRAM AND THE TECHNICAL ADVISORY 469
COUNCIL SHALL TERMINATE ALL OPERATIONS OF THE PROGRAM. UPON 470
TERMINATION OF THE PROGRAM, THE COUNCIL SHALL RETURN ANY 471
REMAINING UNOBLIGATED MONEYS TO THE INDEPENDENT PRODUCERS WHO 472
PAID THE ASSESSMENTS LEVIED UNDER SECTION 1510.08 OF THE REVISED
CODE DURING THE IMMEDIATELY PRECEDING TWELVE MONTHS AND SHALL 474
PRORATE THE MONEYS ACCORDINGLY.
Sec. 1510.12. THE TECHNICAL ADVISORY COUNCIL MAY INSTITUTE 477
AN ACTION AT LAW OR IN EQUITY THAT APPEARS NECESSARY TO ENFORCE 478
COMPLIANCE WITH THIS CHAPTER, A PROCEDURE ESTABLISHED UNDER IT, 479
OR A MARKETING PROGRAM ESTABLISHED UNDER IT.
Sec. 1510.13. (A) NO PERSON SHALL KNOWINGLY FAIL OR 481
REFUSE TO WITHHOLD OR REMIT ANY ASSESSMENT LEVIED UNDER SECTION 482
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1510.08 OF THE REVISED CODE.
(B) BEFORE CRIMINAL PROCEEDINGS ARE INSTITUTED PURSUANT TO 484
THIS SECTION, THE TECHNICAL ADVISORY COUNCIL SHALL GIVE THE 485
ALLEGED VIOLATOR AN OPPORTUNITY TO PRESENT THE ALLEGED VIOLATOR'S 486
VIEWS CONCERNING WHY THE PROCEEDINGS SHOULD NOT BE INSTITUTED. 487
Sec. 1510.99. WHOEVER VIOLATES SECTION 1510.13 OF THE 489
REVISED CODE IS GUILTY OF A MISDEMEANOR OF THE FOURTH DEGREE. 490
Sec. 3737.91. (A) There is hereby created the petroleum 499
underground storage tank financial assurance fund, which shall be 500
in the custody of the treasurer of state, but is not a part of 501
the state treasury. The fund shall consist of moneys from the 502
following sources: 503
(1) All fees collected under divisions (B) and (F) of this 505
section and all supplemental fees collected under division (C) of 506
this section; 507
(2) Interest earned on moneys in the fund; 509
(3) Appropriations to the fund from the general revenue 511
fund; 512
(4) The proceeds of revenue bonds issued under sections 514
3737.90 to 3737.948 of the Revised Code, provided that upon 515
resolution of the petroleum underground storage tank release 516
compensation board created in section 3737.90 of the Revised 517
Code, all or part of those proceeds may be deposited into a 518
separate account of the fund. Chapters 131. and 135. of the 519
Revised Code do not apply to the establishment, deposit, 520
investment, application, and safeguard of any such account and 521
moneys in any such account. 522
(B) For the purposes of paying the costs of implementing 524
and administering this section and sections 3737.90 and 3737.92 525
of the Revised Code and rules adopted under them; payment or 526
reimbursement of corrective action costs under section 3737.92 of 527
the Revised Code; compensating third parties for bodily injury or 528
property damage under that section; and payment of principal and 529
interest on revenue bonds issued under sections 3737.90 to 530
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3737.948 of the Revised Code to raise capital for the fund, there 531
is hereby assessed an annual petroleum underground storage tank 532
financial assurance fee on each tank comprising an underground 533
storage tank or an underground storage tank system that contains 534
or has contained petroleum and for which a responsible person is 535
required to demonstrate financial responsibility by rules adopted 536
by the fire marshal under division (B) of section 3737.882 of the 537
Revised Code. The fee assessed by this division shall be paid to 538
the board by a responsible person for each tank that is subject 539
to the fee. The fee shall be paid not later than the first day 540
of July of each year, except that in 1989 the fee shall be paid 541
by either the first day of September or ninety days after July 542
11, 1989, whichever is later. The fee is in addition to any fee 543
established by the fire marshal under section 3737.88 of the 544
Revised Code. 545
The amount of the annual fee due in 1989 and 1990 is one 547
hundred fifty dollars per tank per year. In 1991 and subsequent 548
years the board shall establish the amount of the annual fee in 549
accordance with this division. Not later than the first day of 550
April of 1991 and each subsequent year, the board, in 551
consultation with the administrative agent of the fund with whom 552
the board has entered into a contract under division (B)(3) of 553
section 3737.90 of the Revised Code, if any, shall determine the 554
amount of the annual fee to be assessed in that year and shall 555
adopt rules in accordance with Chapter 119. of the Revised Code 556
to establish the fee at that amount. The fee shall be 557
established at an amount calculated to maintain the continued 558
financial soundness of the fund, provided that if the unobligated 559
balance of the fund exceeds forty-five million dollars on the 560
date that an annual determination is made, the board may assess a 561
fee in the year to which the determination applies only to the 562
extent required in or by, or necessary to comply with covenants 563
or other requirements in, revenue bonds issued under sections 564
3737.90 to 3737.948 of the Revised Code or in proceedings or 565
14
other covenants or agreements related to such bonds. Not later 566
than the first day of May of 1991 and each subsequent year, the 567
board shall notify each responsible person by certified mail of 568
the amount of the annual fee per tank due in that year. As used 569
in this paragraph, "proceedings" has the same meaning as in 570
section 133.01 of the Revised Code. 571
If a responsible person is both the owner and operator of a 573
tank, he THE RESPONSIBLE PERSON shall pay any annual fee assessed 575
under this division in compliance with this division and the 576
rules adopted thereunder. If the owner of the tank and the 577
operator of the tank are not the same person, any annual fee 578
assessed under this division in compliance with this division and 579
the rules adopted thereunder shall be paid by one of the 580
responsible persons; however, all such responsible persons are 581
liable for noncompliance with this division. 582
(C) As necessary to maintain the financial soundness of 584
the fund, the board, by rules adopted in accordance with Chapter 585
119. of the Revised Code, may at any time assess a supplemental 586
petroleum underground storage tank financial assurance fee on 587
tanks subject to the fee assessed under division (B) or (F) of 588
this section in any fiscal year in which the board finds that the 589
unobligated balance in the fund is less than fifteen million 590
dollars. The board, in consultation with the fund's 591
administrative agent, if any, shall establish the amount of the 592
supplemental fee at an amount that will ensure an unobligated 593
balance in the fund of at least fifteen million dollars at the 594
end of the fiscal year in which the supplemental fee is assessed. 595
Not less than thirty days before the date on which payment of the 596
supplemental fee is due under the board's rules, the board shall 597
notify each responsible person by certified mail of the amount of 598
the supplemental fee and the date on which payment of the 599
supplemental fee to the board is due. 600
If a responsible person is both the owner and operator of a 602
tank, he THE RESPONSIBLE PERSON shall pay any supplemental fee 603
15
assessed under this division in compliance with this division and 605
the rules adopted thereunder. If the owner of the tank and the 606
operator of the tank are not the same person, any supplemental 607
fee assessed under this division in compliance with this division 608
and the rules adopted thereunder shall be paid by one of the 609
responsible persons; however, all such responsible persons are 610
liable for noncompliance with this division. 611
(D)(1) The board shall issue a certificate of coverage to 613
any responsible person who has complied with both ALL of the 614
following: 615
(a) Paid the fee assessed under division (B) or (F) of 617
this section; 618
(b) Demonstrated to the board financial responsibility in 620
compliance with the rules adopted by the fire marshal under 621
division (B) of section 3737.882 of the Revised Code for the 622
deductible amount established under division (E) of this section 623
or, when appropriate, the reduced deductible amount established 624
under division (F) of this section. If the responsible person 625
utilizes self-insurance as a financial responsibility mechanism, 626
he THE RESPONSIBLE PERSON shall provide the board with an 627
affidavit in which the responsible party certifies that all 629
documentation submitted to the board is true and accurate; 630
(c) CERTIFIED TO THE BOARD THAT FOR EACH PETROLEUM 632
UNDERGROUND STORAGE TANK SYSTEM FOR WHICH A CERTIFICATE OF 633
COVERAGE IS SOUGHT, THE RESPONSIBLE PERSON IS IN COMPLIANCE WITH 634
APPLICABLE RULES FOR PETROLEUM UNDERGROUND STORAGE TANK SYSTEMS 635
THAT HAVE BEEN ADOPTED BY THE FIRE MARSHAL UNDER SECTION 3737.88 636
OF THE REVISED CODE.
The certificate of coverage shall state the amount of 638
coverage to which the responsible party PERSON is entitled from 639
the fund pursuant to division (D)(3) of this section and the time 641
period for which the certificate provides that coverage. An 642
issued certificate of coverage is subject to the condition that 643
the holder timely pay any supplemental fee assessed under 644
16
division (C) of this section during the time that the certificate 645
is in effect. 646
(2) The board shall not issue a certificate of coverage to 648
any responsible person who fails to comply with divisions 649
(D)(1)(a) and, (b), AND (c) of this section. 651
(3) The maximum disbursement from the fund for any single 653
release of petroleum is the difference between the deductible 654
amount established under division (E) of this section or, when 655
appropriate, the reduced deductible amount established under 656
division (F) of this section and one million dollars. The 657
maximum disbursement from the fund during any fiscal year on 658
behalf of any responsible person shall not exceed in the 659
aggregate one million dollars less the deductible amount if the 660
responsible person owns or operates not more than one hundred 661
tanks comprising underground petroleum storage tanks or 662
underground petroleum storage tank systems, shall not exceed in 663
the aggregate two million dollars less the deductible amount if 664
the responsible person owns or operates not more than two hundred 665
such tanks, shall not exceed in the aggregate three million 666
dollars less the deductible amount if the responsible person owns 667
or operates not more than three hundred such tanks, and shall not 668
exceed in the aggregate four million dollars less the deductible 669
amount if the responsible person owns or operates more than three 670
hundred such tanks. The maximum disbursement from the fund for 671
any single release or for any fiscal year under this division 672
does not in any manner limit the liability of a responsible 673
person for a release of petroleum. 674
(E)(1) Except as otherwise provided in division (F) of 676
this section, no responsible person is eligible to receive moneys 677
from the fund under section 3737.92 of the Revised Code until he 678
THE RESPONSIBLE PERSON demonstrates to the board financial 679
responsibility for the first fifty thousand dollars of the cost 681
for corrective action for, and compensating third parties for 682
bodily injury and property damage caused by, accidental releases 683
17
of petroleum from an underground storage tank owned or operated 684
by the responsible party. The fifty thousand dollar amount is 685
the deductible amount for the purposes of this section and 686
section 3737.92 of the Revised Code.
(2) The board, in consultation with the fund's 688
administrative agent, if any, may, by rules adopted in accordance 689
with Chapter 119. of the Revised Code, establish for any fiscal 690
year a deductible amount that differs from fifty thousand 691
dollars. The deductible amount established by the board shall be 692
such an amount as to maintain the financial soundness of the 693
fund. Any action of the board to establish a differing 694
deductible amount or to alter a deductible amount previously 695
established by it shall be taken concurrently with the 696
establishment under division (B) of this section of the annual 697
fee due on the first day of the fiscal year in which the 698
deductible amount will apply. If the deductible amount 699
established under this division differs from that in effect at 700
the time of the board's action, the board shall notify each 701
responsible person of the change by certified mail not later than 702
the first day of May preceding the effective date of the change. 703
(F)(1) Any responsible person owning, or owning or 705
operating, a total of six or fewer petroleum underground storage 706
tanks may elect in calendar years 1989 and 1990 to pay twice the 707
amount of the per tank annual fee for each tank assessed under 708
division (B) of this section in order to reduce the amount of the 709
deductible established in division (E) of this section to the 710
total amount of ten thousand dollars. The election shall be 711
available only at the time of the payment of the annual fee and 712
any supplemental fee. The election shall not be retroactively 713
applied. 714
(2) Any responsible person owning, or owning or operating, 716
a total of six or fewer petroleum underground storage tanks may 717
elect in calendar year 1991 and in each subsequent year to pay an 718
additional fee at an amount established by the board in addition 719
18
to the per tank annual fee assessed under division (B) of this 720
section in order to reduce the deductible amount established 721
under division (E) of this section. In calendar year 1991 and in 722
each subsequent year, the board shall establish the amount of the 723
additional fee and the reduced deductible amount. In determining 724
the amount of the additional fee and the reduced deductible 725
amount, the board shall take into consideration the effect of the 726
additional claims paid under section 3737.92 of the Revised Code 727
to responsible persons making an election under division (F)(2) 728
of this section and balance that consideration with such factors 729
as the availability of liability insurance, the difficulty of 730
proving financial responsibility pursuant to the rules adopted by 731
the fire marshal under division (B) of section 3737.882 of the 732
Revised Code, and the hardship created on small owners and 733
operators of petroleum underground storage tanks by an increase 734
in either the additional fee or the reduced deductible amount. 735
(3) Any responsible person owning, or owning or operating, 737
a total of six or fewer petroleum underground storage tanks who 738
elects to pay the additional fee under divisions (F)(1) and (2) 739
of this section shall pay any per tank supplemental fee assessed 740
under division (C) of this section. 741
(G) If the director of the fund determines that a 743
responsible person has failed to comply with division (B), (C), 744
or (F) of this section, the director of the fund shall notify 745
each responsible person for the petroleum underground storage 746
tank of the noncompliance. If, within thirty days after the 747
notification, the responsible person fails to pay the applicable 748
fee or any fee previously assessed upon the responsible person 749
under this section, the director of the fund shall issue an order 750
requiring the responsible person to pay all of the fees he THE 751
RESPONSIBLE PERSON owes to the fund and an additional late 752
payment fee in the amount of one thousand dollars to the fund. 754
If a responsible person fails to comply with any order of 756
the director of the fund within thirty days after the issuance of 757
19
the order, the director shall notify the fire marshal of that 758
noncompliance. Upon the request of the director of the fund, the 759
attorney general may bring a civil action for appropriate relief, 760
including a temporary restraining order or preliminary or 761
permanent injunction, in the court of common pleas of the county 762
in which the petroleum underground storage tank that is the 763
subject of the order is located. The court shall issue an 764
injunction upon a demonstration that a failure to comply with the 765
director's order has occurred or is occurring. 766
Any orders issued by the director of the fund under this 768
division may be appealed by the responsible person under division 769
(F) of section 3737.92 of the Revised Code. For the purpose of 770
an appeal of any order of the director of the fund, 771
"determination" as used in that division includes any order of 772
the director of the fund. The filing of a notice of appeal under 773
this division does not operate as a stay of any order of the 774
director of the fund. 775
Sec. 3737.92. (A) The petroleum underground storage tank 784
release compensation board created in section 3737.90 of the 785
Revised Code shall use moneys in the petroleum underground 786
storage tank financial assurance fund established in section 787
3737.91 of the Revised Code exclusively for the following 788
purposes: 789
(1) Payment of the expenses of administering the fund; 791
(2) Payment of the administrative expenses of the board; 793
(3) Payment to or reimbursement of responsible persons for 795
the necessary cost of corrective action for and compensating 796
third parties for bodily injury and property damage caused by 797
accidental releases of petroleum in accordance with this section, 798
provided that proceeds from the issuance of revenue bonds under 799
sections 3737.90 to 3737.948 of the Revised Code may only be used 800
for the payment to or reimbursement of responsible persons for 801
the necessary costs of corrective action for improving property 802
damaged by accidental releases of petroleum in accordance with 803
20
this section; 804
(4) Deposit into any funds provided for in a resolution or 806
resolutions of the board in connection with any revenue bonds 807
issued under sections 3737.90 to 3737.948 of the Revised Code; 808
(5) Placement of petroleum underground storage tank linked 810
deposits under sections 3737.95 to 3737.98 of the Revised Code. 811
(B) A responsible person seeking to obtain from the fund 813
payment of or reimbursement for corrective action costs for an 814
accidental release of petroleum shall submit a claim to the board 815
in accordance with and containing the information required by 816
rules adopted by the board in accordance with Chapter 119. of the 817
Revised Code. Before authorizing any disbursement from the fund 818
to pay all or any portion of a claim submitted under this 819
division, the director of the fund shall first determine that the 820
claim meets all of the following criteria: 821
(1) The responsible person is eligible under division (D) 823
of this section to receive payment of or reimbursement for the 824
corrective action costs from the fund; 825
(2) The corrective action performed or to be performed has 827
been authorized by the fire marshal under section 3737.882 of the 828
Revised Code and rules adopted under that section; 829
(3) The costs of performing the corrective action are 831
necessary to comply with the rules of the fire marshal adopted 832
under sections 3737.88 and 3737.882 of the Revised Code governing 833
corrective actions. 834
(C) A responsible person seeking to obtain from the fund 836
payment of or reimbursement for compensation paid or to be paid 837
to third parties for bodily injury or property damage caused by 838
an accidental release of petroleum shall submit a claim to the 839
board in accordance with and containing the information required 840
by rules adopted by the board in accordance with Chapter 119. of 841
the Revised Code. Before authorizing any disbursement from the 842
fund to pay all or any portion of a claim submitted under this 843
division, the director of the fund shall first determine that the 844
21
claim meets both of the following criteria: 845
(1) The responsible person who submitted the claim is 847
eligible under division (D) of this section to receive payment of 848
or reimbursement for the third-party compensation from the fund; 849
(2) There is a legally enforceable judgment against the 851
responsible person for bodily injury or property damage to one or 852
more third parties resulting from the release in the amount 853
stated in the claim, or, if there is a settlement with a third 854
party as a result of the release, the amount of the settlement 855
stated in the claim is reasonable. 856
(D) A responsible person is not eligible to receive 858
payment or reimbursement from the fund under division (B) or (C) 859
of this section unless all of the following conditions are met: 860
(1) At the time that the release was first suspected or 862
confirmed, a responsible person possessed a valid certificate of 863
coverage issued by the board under division (D) of section 864
3737.91 of the Revised Code for the petroleum underground storage 865
tank system from which the release occurred; 866
(2) One of the following applies: 868
(a) The petroleum underground storage tank system from 870
which the release occurred was registered in compliance with 871
rules adopted by the fire marshal under section 3737.88 of the 872
Revised Code when the occurrence of the release was first 873
suspected or confirmed; 874
(b) The fire marshal has recommended that payment or 876
reimbursement be made because good cause existed for the 877
responsible person's failure to have so registered the petroleum 878
underground storage tank system, and the responsible person has 879
registered the petroleum underground storage tank system with the 880
fire marshal and paid all back registration fees payable under 881
those rules for registration of the system from the time the 882
responsible person should have, but failed to register the 883
system. 884
(3) The fire marshal has determined that, when the claim 886
22
was filed, a responsible person was in compliance with all orders 887
issued under sections 3737.88 and 3737.882 of the Revised Code 888
regarding the petroleum underground storage tank system from 889
which the release occurred; 890
(4) A responsible person demonstrates financial 892
responsibility for the deductible amount applicable under section 893
3737.91 of the Revised Code for the petroleum underground storage 894
tank system from which the release has occurred; 895
(5) The responsible person has not falsified any 897
attestation contained on a registration application required by 898
rules adopted under section 3737.88 of the Revised Code; 899
(6) THE PETROLEUM UNDERGROUND STORAGE TANK SYSTEM FROM 901
WHICH THE RELEASE OCCURRED WAS IN COMPLIANCE WITH RULES, OTHER 902
THAN RULES REGARDING REGISTRATION, ADOPTED BY THE FIRE MARSHAL 903
UNDER SECTION 3737.88 OF THE REVISED CODE WHEN THE OCCURRENCE OF 904
THE RELEASE WAS FIRST SUSPECTED OR CONFIRMED.
(E) The director of the fund may make a determination to 906
approve or disapprove a claim and to authorize a disbursement 907
from the fund for payment of an approved claim administratively 908
without a hearing. If the director of the fund makes a 909
determination regarding a claim that is inconsistent with a 910
recommendation or determination of the fire marshal for purposes 911
of division (B)(2) or (3) or (D)(2), (3), or (5) of this section, 912
the director shall detail those inconsistencies in a written 913
finding of fact before authorizing any disbursement from the fund 914
for payment of the claim. Upon making a determination of a claim 915
under this section, the director of the fund shall provide 916
written notice of the determination and a copy of any written 917
finding of fact accompanying the determination to the responsible 918
person who submitted the claim and to the fire marshal. 919
(F) If the responsible person who submitted a claim under 921
this section or the fire marshal objects to the determination of 922
the claim made by the director of the fund and files an objection 923
to the determination with the board within thirty days after the 924
23
mailing of the notification of the determination and finding of 925
fact, if any, the board shall appoint a referee to conduct an 926
adjudication hearing on the determination. The adjudication 927
hearing shall be conducted in accordance with section 119.09 of 928
the Revised Code. For the purposes of adjudication hearings on 929
determinations of the director of the fund, the term "agency" as 930
used in that section includes the board. 931
If any party is aggrieved by an order of the board made 933
after the adjudication hearing on the determination, the party 934
may appeal the order in accordance with section 119.12 of the 935
Revised Code. For the purposes of appeals of any such orders, 936
the terms "fire marshal" and "building" as used in that section 937
include the board and petroleum underground storage tank, 938
respectively. 939
(G) Neither the state, the board, nor the director of the 941
fund is liable to any responsible person to pay the cost of any 942
corrective action or of third party compensation for a release of 943
petroleum when the fund is depeleted of moneys because the amount 944
of the claims made on the fund exceeds the unobligated balance in 945
the fund. However, upon assessing and collecting a supplemental 946
fee under division (C) of section 3737.91 of the Revised Code, 947
the board shall again consider the claim of a responsible person 948
whose claim was not initially honored because of the 949
insufficiency of unobligated balances in the fund to pay that 950
person's claim. 951
The inability of a responsible person to obtain money from 953
the fund does not in any manner limit the liability of a 954
responsible person for a release of petroleum. 955
(H) Neither the right to apply for payment or 957
reimbursement nor the receipt of payment or reimbursement under 958
this section limits the liability of any responsible person to 959
the state for the payment of any corrective action or enforcement 960
costs under sections 3737.882 and 3737.89 of the Revised Code, or 961
to any third party for bodily injury or property damage, 962
24
resulting from a release of petroleum from an underground storage 963
tank system owned or operated by the responsible person. Neither 964
the right to apply for payment or reimbursement under this 965
section nor any delay by the board or director of the fund in 966
acting upon any claim for any such payment or reimbursement 967
limits or postpones the duty of any responsible person to comply 968
with any order of the fire marshal issued under section 3737.88 969
or 3737.882 of the Revised Code. 970
(I) The board, upon payment to or reimbursement of a 972
responsible person from the fund for corrective action costs or 973
the cost of compensation to third parties for bodily injury or 974
property damage, is entitled by subrogation to all rights of the 975
responsible person to recover those costs from any other person. 976
The attorney general, upon the request of the board, may bring a 977
civil action to recover those costs in the court of common pleas 978
of the county in which the release of petroleum occurred. 979
(J) Nothing in this section limits the right of the 981
federal government to recover from the responsible person any 982
federal money expended for any corrective or enforcement action 983
as a result of a release of petroleum. 984
(K) If the responsible person described in division (D) of 987
this section is a state agency, any payments or reimbursements
received by the state agency under this section shall be 988
deposited into the fund from which the expenditures for the 989
corrective action or third party compensation originally were 990
made.
Section 2. That existing sections 1509.38, 3737.91, and 992
3737.92 of the Revised Code are hereby repealed. 994