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To amend sections 125.04, 5513.02, and 5747.77 and to | 1 |
enact sections 125.091, 125.092, 125.093, | 2 |
3345.691, and 3345.692 of the Revised Code to | 3 |
require that the Director of Administrative | 4 |
Services establish a program that ensures that | 5 |
supplies composed of biobased products are | 6 |
purchased by the Department of Administrative | 7 |
Services, other state agencies, and state | 8 |
institutions of higher education, and to extend | 9 |
the income tax credit for retail sales of | 10 |
alternative fuel for two additional years. | 11 |
Section 1. That sections 125.04, 5513.02, and 5747.77 be | 12 |
amended and sections 125.091, 125.092, 125.093, 3345.691, and | 13 |
3345.692 of the Revised Code be enacted to read as follows: | 14 |
Sec. 125.04. (A) Except as provided in division (D) of this | 15 |
section, the department of administrative services shall determine | 16 |
what supplies and services are purchased by or for state agencies. | 17 |
Whenever the department of administrative services makes any | 18 |
change or addition to the lists of supplies and services that it | 19 |
determines to purchase for state agencies, it shall provide a list | 20 |
to the agencies of the changes or additions. Except for the | 21 |
requirements of section 125.092 and division (B) of section 125.11 | 22 |
of the Revised Code, sections 125.04 to 125.08 and 125.09 to | 23 |
125.15 of the Revised Code do not apply to or affect the | 24 |
educational institutions of the state. | 25 |
(B)(1) As used in this division: | 26 |
(a) "Chartered nonpublic school" has the same meaning as in | 27 |
section 3310.01 of the Revised Code. | 28 |
(b) "Emergency medical service organization" has the same | 29 |
meaning as in section 4765.01 of the Revised Code. | 30 |
(c) "Political subdivision" means any county, township, | 31 |
municipal corporation, school district, conservancy district, | 32 |
township park district, park district created under Chapter 1545. | 33 |
of the Revised Code, regional transit authority, regional airport | 34 |
authority, regional water and sewer district, or port authority. | 35 |
"Political subdivision" also includes any other political | 36 |
subdivision described in the Revised Code that has been approved | 37 |
by the department to participate in the department's contracts | 38 |
under this division. | 39 |
(d) "Private fire company" has the same meaning as in section | 40 |
9.60 of the Revised Code. | 41 |
(2) Subject to division (C) of this section, the department | 42 |
of administrative services may permit a political subdivision, | 43 |
county board of elections, private fire company, private, | 44 |
nonprofit emergency medical service organization, or chartered | 45 |
nonpublic school to participate in contracts into which the | 46 |
department has entered for the purchase of supplies and services. | 47 |
The department may charge the entity a reasonable fee to cover the | 48 |
administrative costs the department incurs as a result of | 49 |
participation by the entity in such a purchase contract. | 50 |
A political subdivision desiring to participate in such | 51 |
purchase contracts shall file with the department a certified copy | 52 |
of an ordinance or resolution of the legislative authority or | 53 |
governing board of the political subdivision. The resolution or | 54 |
ordinance shall request that the political subdivision be | 55 |
authorized to participate in such contracts and shall agree that | 56 |
the political subdivision will be bound by such terms and | 57 |
conditions as the department prescribes and that it will directly | 58 |
pay the vendor under each purchase contract. A board of elections | 59 |
desiring to participate in such purchase contracts shall file with | 60 |
the purchasing authority a written request for inclusion in the | 61 |
program. A private fire company, private, nonprofit emergency | 62 |
medical service organization, or chartered nonpublic school | 63 |
desiring to participate in such purchase contracts shall file with | 64 |
the department a written request for inclusion in the program | 65 |
signed by the chief officer of the company, organization, or | 66 |
chartered nonpublic school. A request for inclusion shall include | 67 |
an agreement to be bound by such terms and conditions as the | 68 |
department prescribes and to make direct payments to the vendor | 69 |
under each purchase contract. | 70 |
The department shall include in its annual report an estimate | 71 |
of the cost it incurs by permitting political subdivisions, county | 72 |
boards of elections, private fire companies, private, nonprofit | 73 |
emergency medical service organizations, and chartered nonpublic | 74 |
schools to participate in contracts pursuant to this division. The | 75 |
department may require such entities to file a report with the | 76 |
department, as often as it finds necessary, stating how many such | 77 |
contracts the entities participated in within a specified period | 78 |
of time, and any other information the department requires. | 79 |
(3) Purchases made by a political subdivision or a county | 80 |
board of elections under this division are exempt from any | 81 |
competitive selection procedures otherwise required by law. No | 82 |
political subdivision shall make any purchase under this division | 83 |
when bids have been received for such purchase by the subdivision, | 84 |
unless such purchase can be made upon the same terms, conditions, | 85 |
and specifications at a lower price under this division. | 86 |
(C) A political subdivision as defined in division (B) of | 87 |
this section or a county board of elections may purchase supplies | 88 |
or services from another party, including a political subdivision, | 89 |
instead of through participation in contracts described in | 90 |
division (B) of this section if the political subdivision or | 91 |
county board of elections can purchase those supplies or services | 92 |
from the other party upon equivalent terms, conditions, and | 93 |
specifications but at a lower price than it can through those | 94 |
contracts. Purchases that a political subdivision or county board | 95 |
of elections makes under this division are exempt from any | 96 |
competitive selection procedures otherwise required by law. A | 97 |
political subdivision or county board of elections that makes any | 98 |
purchase under this division shall maintain sufficient information | 99 |
regarding the purchase to verify that the political subdivision or | 100 |
county board of elections satisfied the conditions for making a | 101 |
purchase under this division. Nothing in this division restricts | 102 |
any action taken by a county or township as authorized by division | 103 |
(B)(1) of section 9.48 of the Revised Code. | 104 |
(D) This section does not apply to supplies or services | 105 |
required by the legislative or judicial branches, the capitol | 106 |
square review and advisory board, the adjutant general for | 107 |
military supplies and services, to supplies or services purchased | 108 |
by a state agency directly as provided in division (A), (B), or | 109 |
(F) of section 125.05 of the Revised Code, or to purchases of | 110 |
supplies or services for the emergency management agency as | 111 |
provided in section 125.023 of the Revised Code. | 112 |
Sec. 125.091. As used in this section and sections 125.092 | 113 |
and 125.093 of the Revised Code: | 114 |
(A) "Agricultural materials" means agricultural-based | 115 |
materials or residues, including plant, animal, and marine | 116 |
materials or residues, used in the manufacture of commercial or | 117 |
industrial nonfood products. | 118 |
(B) "Biobased product" means a product determined by the | 119 |
United States secretary of agriculture to be a commercial or | 120 |
industrial product, other than food or feed, that is composed, in | 121 |
whole or significant part, of biological products, renewable | 122 |
domestic agricultural materials, or forestry material, or is an | 123 |
intermediate ingredient or feedstock. | 124 |
(C) "Biological products" means products derived from living | 125 |
materials other than agricultural or forestry materials. | 126 |
(D) "Designated item" means a generic grouping of biobased | 127 |
products identified in subpart B, 7 C.F.R. 2902.10 to 2902.42. | 128 |
(E) "Forest thinnings" means woody materials removed from a | 129 |
dense forest to improve growth, enhance forest health, or remove | 130 |
trees to recover potential mortality. | 131 |
(F) "Forestry materials" means materials derived from the | 132 |
practice of planting and caring for forests and the management of | 133 |
growing timber where such materials come from short-rotation woody | 134 |
crops that are less than ten years old, sustainably managed | 135 |
forests, wood residues, or forest thinnings. | 136 |
(G) "Intermediate ingredient or feedstock" means a material | 137 |
or compound made, in whole or in significant part, from biological | 138 |
products, renewable agricultural materials, or forestry materials | 139 |
that are subsequently used to make a more complex compound or | 140 |
product. | 141 |
(H) "Sustainably managed forests" means the practice of land | 142 |
stewardship that integrates the reforestation, management, | 143 |
growing, nurturing, and harvesting of trees for useful products | 144 |
while conserving soil and improving air and water quality, | 145 |
wildlife, fish habitat, and aesthetics. | 146 |
Sec. 125.092. (A) Except as provided in divisions (G) and | 147 |
(H) of this section, when purchasing equipment, material, or | 148 |
supplies, the department of administrative services, other state | 149 |
agencies, and state institutions of higher education shall | 150 |
purchase biobased products in accordance with the biobased product | 151 |
preference program established by the director of administrative | 152 |
services under this section. | 153 |
(B) Not later than one hundred eighty days after the | 154 |
effective date of this section, the director shall establish a | 155 |
biobased product preference program, which shall ensure that the | 156 |
department of administrative services, other state agencies, and | 157 |
state institutions of higher education purchase biobased products | 158 |
by giving a preference to those designated items that are composed | 159 |
of the highest percentage of biobased content practicable or that | 160 |
comply with regulations adopted under 42 U.S.C. 6914b-1 by the | 161 |
administrator of the United States environmental protection | 162 |
agency. The purchase of biobased products under the program shall | 163 |
be consistent with sections 125.01 to 125.11 of the Revised Code. | 164 |
As part of the program, the director shall adopt a policy of | 165 |
setting minimum biobased content specifications for awarding | 166 |
contracts in a manner that ensures that the biobased content of | 167 |
biobased products is consistent with the guidelines issued under 7 | 168 |
U.S.C. 8102, except when the director determines that division | 169 |
(C)(1), (2), or (3) of this section applies. | 170 |
(C) The director may determine that it is not possible for a | 171 |
biobased product to be purchased in accordance with the biobased | 172 |
product preference program if the director determines that any of | 173 |
the following applies to the product: | 174 |
(1) The product is not available within a reasonable period | 175 |
of time. | 176 |
(2) The product fails to meet the performance standards set | 177 |
forth in the applicable specifications for the product. | 178 |
(3) The price of the product is an unreasonable price. As | 179 |
used in division (C)(3) of this section, "unreasonable price" | 180 |
means either of the following: | 181 |
(a) The price of the biobased product exceeds the price of a | 182 |
substantially equivalent nonbiobased product. | 183 |
(b) The price of the biobased product exceeds the fair market | 184 |
value of a substantially equivalent nonbiobased product. | 185 |
In accordance with rules adopted under this section, the | 186 |
director may determine a percentage that is up to five per cent by | 187 |
which the price of a biobased product may exceed the price or fair | 188 |
market value of a substantially equivalent nonbiobased product | 189 |
without being considered an unreasonable price for the purpose of | 190 |
division (C)(3)(a) or (b) of this section, as applicable. In doing | 191 |
so, the director shall give consideration to the benefits of | 192 |
expanding the use of biobased products. | 193 |
(D) For any biobased product offered under the biobased | 194 |
product preference program, a vendor shall certify that the | 195 |
product meets the biobased content requirements for the designated | 196 |
item of which the product is an exemplar. Upon request, a vendor | 197 |
shall provide to the director information to verify the biobased | 198 |
content of a biobased product qualifying for purchase in | 199 |
accordance with the program. | 200 |
(E) The director shall adopt rules in accordance with Chapter | 201 |
119. of the Revised Code that prescribe all of the following: | 202 |
(1) The procedures the department of administrative services | 203 |
and other state agencies shall use to give preference to and | 204 |
purchase biobased products in accordance with the program; | 205 |
(2) The purchasing policy the director adopts under division | 206 |
(B) of this section; | 207 |
(3) Procedures and guidelines to be used by the director in | 208 |
determining percentages for purposes of division (C) of this | 209 |
section; | 210 |
(4) Other requirements or procedures that are necessary to | 211 |
implement the biobased product preference program. | 212 |
(F) The director shall maintain a list of products that | 213 |
qualify as designated items under the biobased product preference | 214 |
program. | 215 |
(G) When purchasing equipment, material, or supplies, a state | 216 |
institution of higher education shall purchase designated items in | 217 |
accordance with procedures established by the institution. | 218 |
(H) If, after assessing the functions of designated items, a | 219 |
state agency determines that none of the designated items are | 220 |
functionally capable of meeting a specific need of the agency, the | 221 |
agency shall notify the director of administrative services. If, | 222 |
after assessing the functions of designated items, a state | 223 |
institution of higher education determines that none of the | 224 |
designated items are functionally capable of meeting a specific | 225 |
need of the institution, the institution shall notify both the | 226 |
director of administrative services and the chancellor of the | 227 |
board of regents. The agency or institution then may purchase a | 228 |
nonbiobased product that is functionally capable of meeting that | 229 |
specific need of the agency or institution, as applicable. Such a | 230 |
purchase does not constitute failure to comply with the biobased | 231 |
product preference program or preclude the agency or institution | 232 |
from otherwise participating in the program. | 233 |
(I) This section does not apply to the purchase of motor | 234 |
vehicle fuel, heating oil, or electricity. | 235 |
(J) As used in this section, "state institution of higher | 236 |
education" has the same meaning as in section 3345.011 of the | 237 |
Revised Code. | 238 |
Sec. 125.093. Not later than September 30, 2010, and the | 239 |
thirtieth day of September each year thereafter, the director of | 240 |
administrative services shall prepare and submit to the governor, | 241 |
the president of the senate, and the speaker of the house of | 242 |
representatives a report that describes the number and types of | 243 |
biobased products purchased under section 125.092 of the Revised | 244 |
Code and the amount of money spent by the department of | 245 |
administrative services and other state agencies for those | 246 |
biobased products. | 247 |
Sec. 3345.691. A state institution of higher education, as | 248 |
defined in section 3345.011 of the Revised Code, shall comply with | 249 |
section 125.092 of the Revised Code regarding the purchase of | 250 |
biobased products. | 251 |
Sec. 3345.692. (A) Not later than September 15, 2010, and | 252 |
the fifteenth day of September each year thereafter, a state | 253 |
institution of higher education shall prepare and submit to the | 254 |
chancellor of the board of regents a report that describes the | 255 |
number and types of biobased products purchased under section | 256 |
125.092 of the Revised Code and the amount of money spent by the | 257 |
state institution of higher education for those biobased products. | 258 |
(B) Not later than September 30, 2010, and the thirtieth day | 259 |
of September each year thereafter, the chancellor of the board of | 260 |
regents shall prepare and submit to the governor, the president of | 261 |
the senate, and the speaker of the house of representatives a | 262 |
report that describes the number and types of biobased products | 263 |
purchased under section 125.092 of the Revised Code and the amount | 264 |
of money spent by state institutions of higher education for those | 265 |
biobased products as that information is provided to the | 266 |
chancellor under division (A) of this section. | 267 |
(C) As used in this section, "state institution of higher | 268 |
education" has the same meaning as in section 3345.011 of the | 269 |
Revised Code. | 270 |
Sec. 5513.02. (A) Specifications describing the character of | 271 |
the articles that the department of transportation is proposing to | 272 |
purchase, and the conditions governing shipment and delivery, | 273 |
shall be kept on file at the department and open to public | 274 |
inspection throughout the time during which an invitation to | 275 |
bidders is required to be posted. The director of transportation | 276 |
may require bids to be accompanied by a certified check payable to | 277 |
the director in an amount fixed by the director and stated in the | 278 |
invitation to bidders. Persons, firms, or corporations desiring to | 279 |
bid on more than one invitation shall be relieved from furnishing | 280 |
certified checks with their bids provided they first furnish a | 281 |
bond payable to the state, in an amount and with surety approved | 282 |
by the director, conditioned for the faithful performances of all | 283 |
contracts that may be awarded to them, and otherwise conditioned | 284 |
as the director requires. All bids shall be publicly opened and | 285 |
read at the time and place mentioned in the notice. All purchases | 286 |
shall be made by the director from the lowest responsive and | 287 |
responsible bidder for each item in accordance with section 9.312 | 288 |
of the Revised Code, except where the director has established in | 289 |
the bidding documents a provision for multiple awards for the | 290 |
purchase of items such as asphalt, aggregates, machinery parts, | 291 |
and others as the director determines necessary, and except that | 292 |
in the purchase of machinery, equipment, or supplies for which | 293 |
fixed and definite specifications cannot be prepared, the director | 294 |
may purchase the articles meeting the general specifications | 295 |
prescribed and which the director finds are most suitable for the | 296 |
uses intended. Sections 5513.01 to 5513.04 of the Revised Code | 297 |
shall apply to the exchange of machinery and equipment and in | 298 |
force account operations where the director desires to combine in | 299 |
one order the furnishing, hauling, and placing of material. The | 300 |
director may purchase or authorize the purchase without notice, or | 301 |
upon such notice as the director prescribes, of materials that in | 302 |
the director's judgment may be required for the immediate repair | 303 |
of roads or bridges destroyed or damaged by flood, landslide, or | 304 |
other casualty. No person shall place separate orders for the | 305 |
purpose of defeating such sections, and contracts of purchase | 306 |
shall not be valid unless made in conformity with this section. | 307 |
(B) | 308 |
125.11 of the Revised Code
| 309 |
products by the director pursuant to sections 5513.01 to 5513.04 | 310 |
of the Revised Code. | 311 |
Sec. 5747.77. (A) As used in this section: | 312 |
(1) "Alternative fuel" means E85 blend fuel or blended | 313 |
biodiesel. | 314 |
(2) "Biodiesel" means a mono-alkyl ester combustible liquid | 315 |
fuel that is derived from vegetable oils or animal fats, or any | 316 |
combination of those reagents that meets the American society for | 317 |
testing and materials specification for biodiesel fuel (B100) | 318 |
blend stock distillate fuels. | 319 |
(3) "Blended biodiesel" means a blend of biodiesel with | 320 |
petroleum-based diesel fuel in which the resultant product | 321 |
contains not less than twenty per cent biodiesel and meets the | 322 |
American society for testing and materials specification for | 323 |
blended diesel fuel. For taxable years ending in 2010 or 2011, | 324 |
"six per cent" shall be substituted for "twenty per cent." | 325 |
(4) "Diesel fuel" means any liquid fuel that is capable of | 326 |
use in discrete form or as a blend component in the operation of | 327 |
engines of the diesel type. | 328 |
(5) "Ethanol" means fermentation ethyl alcohol derived from | 329 |
agricultural products, including potatoes, cereal, grains, cheese | 330 |
whey, and sugar beets; forest products; or other renewable | 331 |
resources, including residue and waste generated from the | 332 |
production, processing, and marketing of agricultural products, | 333 |
forest products, and other renewable resources that meet all of | 334 |
the specifications in the American society for testing and | 335 |
materials (ASTM) specification D 4806-88 and is denatured as | 336 |
specified in Parts 20 and 21 of Title 27 of the Code of Federal | 337 |
Regulations. | 338 |
(6) "E85 blend fuel" means fuel containing eighty-five per | 339 |
cent or more ethanol, or containing any other percentage of not | 340 |
less than seventy per cent ethanol if the United States department | 341 |
of energy determines, by rule, that the lower percentage is | 342 |
necessary to provide for the requirements of cold start, safety, | 343 |
or other vehicle functions, and that meets the American society | 344 |
for testing and materials specification for E85 blend fuel. | 345 |
(7) "Retail dealer" means any person that is a taxpayer under | 346 |
this chapter that owns or operates a retail service station | 347 |
located in this state. | 348 |
(8) "Retail service station" means a location in this state | 349 |
from which alternative fuel is sold to the general public and is | 350 |
dispensed or pumped directly into motor vehicle fuel tanks for | 351 |
consumption. | 352 |
(B) For taxable years ending in 2008 and 2009, there is | 353 |
hereby allowed a nonrefundable credit against the tax imposed by | 354 |
section 5747.02 of the Revised Code for a retail dealer that sells | 355 |
alternative fuel. The credit for a dealer's taxable year ending in | 356 |
2008 shall equal fifteen cents per gallon of alternative fuel sold | 357 |
and dispensed through a metered pump at the retail dealer's retail | 358 |
service station during any part of calendar year 2007 or 2008 | 359 |
included in that taxable year. The credit for a dealer's taxable | 360 |
year ending in 2009 shall equal fifteen cents per gallon of | 361 |
alternative fuel sold and dispensed through a metered pump at the | 362 |
retail dealer's retail service station during any part of calendar | 363 |
year 2008 included in that taxable year, plus thirteen cents per | 364 |
gallon of alternative fuel sold and dispensed in that manner | 365 |
during any part of calendar year 2009 included in that taxable | 366 |
year. | 367 |
(C)(1) For taxable years ending in 2010 or 2011, there is | 368 |
hereby allowed a nonrefundable credit against the tax imposed by | 369 |
section 5747.02 of the Revised Code for a retail dealer that sells | 370 |
alternative fuel. Except as otherwise provided in division (C)(2) | 371 |
of this section, the credit for a dealer's taxable year ending in | 372 |
2010 shall equal fifteen cents per gallon of alternative fuel sold | 373 |
and dispensed through a metered pump at the retail dealer's retail | 374 |
service station during any part of calendar year 2009 or 2010 | 375 |
included in that taxable year. Except as otherwise provided in | 376 |
division (C)(2) of this section, the credit for a dealer's taxable | 377 |
year ending in 2011 shall equal fifteen cents per gallon of | 378 |
alternative fuel sold and dispensed through a metered pump at the | 379 |
retail dealer's retail service station during any part of calendar | 380 |
year 2010 included in that taxable year, plus thirteen cents per | 381 |
gallon of alternative fuel sold and dispensed in that manner | 382 |
during any part of calendar year 2011 included in that taxable | 383 |
year. | 384 |
(2) In the case of blended biodiesel containing at least ten | 385 |
per cent but less than twenty per cent biodiesel as sold and | 386 |
dispensed through such metered pump, the credit otherwise allowed | 387 |
under division (C)(1) of this section shall equal seven and | 388 |
one-half cents per gallon. In the case of blended biodiesel | 389 |
containing at least six per cent but less than ten per cent | 390 |
biodiesel as sold and dispensed through such metered pump, the | 391 |
credit otherwise allowed under division (C)(1) of this section | 392 |
shall equal three and three-fourths cents per gallon. | 393 |
(D) The credit shall be calculated separately for each retail | 394 |
service station owned or operated by the retail dealer. The credit | 395 |
allowed under this section may not be claimed for alternative fuel | 396 |
sold or dispensed before January 1, 2008, or on or after January | 397 |
1, | 398 |
| 399 |
section in the order prescribed in section 5747.98 of the Revised | 400 |
Code. The credit shall not exceed the amount of tax otherwise due | 401 |
under section 5747.02 of the Revised Code after deducting any | 402 |
other credits that precede the credit claimed under this section | 403 |
in that order. | 404 |
| 405 |
pass-through treatment of the credit if the retail dealer is a | 406 |
pass-through entity. If the retail dealer is a pass-through | 407 |
entity, references in other divisions of this section to "taxable | 408 |
year" refer to the dealer's taxable year; an equity owner of the | 409 |
retail dealer that is a pass-through entity may claim the owner's | 410 |
distributive or proportionate share of the credit for the equity | 411 |
owner's taxable year that includes the last day of the entity's | 412 |
taxable year. | 413 |
Section 2. That existing sections 125.04, 5513.02, and | 414 |
5747.77 of the Revised Code are hereby repealed. | 415 |
Section 3. Section 125.04 of the Revised Code is presented | 416 |
in this act as a composite of the section as amended by both Am. | 417 |
Sub. H.B. 562 and Am. Sub. S.B. 268 of the 127th General Assembly. | 418 |
The General Assembly, applying the principle stated in division | 419 |
(B) of section 1.52 of the Revised Code that amendments are to be | 420 |
harmonized if reasonably capable of simultaneous operation, finds | 421 |
that the composite is the resulting version of the section in | 422 |
effect prior to the effective date of the section as presented in | 423 |
this act. | 424 |