| Section 1. That sections 1509.02, 1509.071, 1509.11, 1509.34, | 15 |
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1513.08, 1513.182, 1514.11, 5703.052, 5705.27, 5705.32, 5747.98, | 16 |
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5749.01, 5749.02, 5749.03, 5749.06, 5749.07, 5749.08, 5749.10, | 17 |
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5749.11, 5749.12, 5749.13, 5749.14, 5749.15, and 5751.01 be | 18 |
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amended and sections 187.14, 190.01, 190.02, 190.03, 190.04, | 19 |
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190.05, 321.50, 1509.075, 5747.56, 5747.63, 5749.031, and 5749.18 | 20 |
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of the Revised Code be enacted to read as follows: | 21 |
| (D) Serving as a member of the Ohio shale gas regional | 106 |
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commission does not constitute holding a public office or position | 107 |
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of employment under the laws of this state and does not confer a | 108 |
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right to compensation from any agency of this state. A member of | 109 |
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the commission does not have an unlawful interest in a public | 110 |
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contract under section 2921.42 of the Revised Code solely because | 111 |
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the eligible subdivision of which the member is also a public | 112 |
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official receives a grant from the Ohio shale gas infrastructure | 113 |
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development fund or the severance tax legacy fund. | 114 |
| Sec. 190.04. There is hereby created in the state treasury | 125 |
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the severance tax legacy fund. The fund shall consist of moneys | 126 |
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transferred to it from the local government reimbursement fund | 127 |
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under section 5747.56 of the Revised Code. The general assembly | 128 |
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shall not appropriate money from the fund until fiscal year 2025. | 129 |
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The general assembly shall not appropriate money from the | 130 |
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severance tax legacy fund for any fiscal year in excess of the | 131 |
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amount of interest earned by the fund in the preceding fiscal | 132 |
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year. Beginning fiscal year 2025, money in the fund shall be used | 133 |
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to award grants under section 190.05 of the Revised Code for | 134 |
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projects in subdivisions that are or were eligible subdivisions | 135 |
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for any fiscal year to foster long-term prosperity and a positive | 136 |
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legacy in the subdivision. Interest earned on the money in the | 137 |
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fund shall be credited to the fund. | 138 |
| (B) The Ohio public works commission shall not approve a | 155 |
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grant to a subdivision whose request does not meet the | 156 |
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requirements of this chapter. The director of the Ohio public | 157 |
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works commission shall notify the director of budget and | 158 |
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management of the amount of any grant awarded by the Ohio public | 159 |
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works commission under division (A) of this section. | 160 |
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Notwithstanding section 126.14 of the Revised Code, the director | 161 |
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of budget and management shall release appropriations from the | 162 |
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Ohio shale gas infrastructure development fund or the severance | 163 |
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tax legacy fund for the purpose of awarding a grant to a | 164 |
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subdivision on the presentation of a request to do so by the | 165 |
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director of the Ohio public works commission. | 166 |
| Sec. 1509.02. (A) There is hereby created in the department | 177 |
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of natural resources the division of oil and gas resources | 178 |
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management, which shall be administered by the chief of the | 179 |
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division of oil and gas resources management. The division has | 180 |
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sole and exclusive authority to regulate the permitting, location, | 181 |
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and spacing of oil and gas wells and production operations within | 182 |
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the state, excepting only those activities regulated under federal | 183 |
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laws for which oversight has been delegated to the environmental | 184 |
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protection agency and activities regulated under sections 6111.02 | 185 |
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to 6111.028 of the Revised Code. The regulation of oil and gas | 186 |
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activities is a matter of general statewide interest that requires | 187 |
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uniform statewide regulation, and this chapter and rules adopted | 188 |
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under it constitute a comprehensive plan with respect to all | 189 |
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aspects of the locating, drilling, well stimulation, completing, | 190 |
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and operating of oil and gas wells within this state, including | 191 |
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site construction and restoration, permitting related to those | 192 |
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activities, and the disposal of wastes from those wells. In order | 193 |
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to assist the division in the furtherance of its sole and | 194 |
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exclusive authority as established in this section, the chief may | 195 |
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enter into cooperative agreements with other state agencies for | 196 |
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advice and consultation, including visitations at the surface | 197 |
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location of a well on behalf of the division. Such cooperative | 198 |
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agreements do not confer on other state agencies any authority to | 199 |
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administer or enforce this chapter and rules adopted under it. In | 200 |
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addition, such cooperative agreements shall not be construed to | 201 |
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dilute or diminish the division's sole and exclusive authority as | 202 |
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established in this section. Nothing in this section affects the | 203 |
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authority granted to the director of transportation and local | 204 |
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authorities in section 723.01 or 4513.34 of the Revised Code, | 205 |
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provided that the authority granted under those sections shall not | 206 |
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be exercised in a manner that discriminates against, unfairly | 207 |
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impedes, or obstructs oil and gas activities and operations | 208 |
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regulated under this chapter. | 209 |
All moneysThe following shall be credited to the oil and gas | 213 |
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well fund, which is hereby created in the state treasury: all | 214 |
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money collected by the chief pursuant to sections 1509.06, | 215 |
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1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.222, 1509.28, | 216 |
and 1509.34, and 1509.50 of the Revised Code, ninety per cent of | 217 |
moneys received by the treasurer of state from the tax levied in | 218 |
divisions (A)(5) and (6) ofmoney transferred from the oil and gas | 219 |
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severance tax fund created in section 5749.02 of the Revised Code, | 220 |
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all civil penalties paid under section 1509.33 of the Revised | 221 |
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Code, and, notwithstanding any section of the Revised Code | 222 |
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relating to the distribution or crediting of fines for violations | 223 |
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of the Revised Code, all fines imposed under divisions (A) and (B) | 224 |
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of section 1509.99 of the Revised Code and fines imposed under | 225 |
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divisions (C) and (D) of section 1509.99 of the Revised Code for | 226 |
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all violations prosecuted by the attorney general and for | 227 |
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violations prosecuted by prosecuting attorneys that do not involve | 228 |
the transportation of brine by vehicle shall be deposited into the | 229 |
state treasury to the credit of the oil and gas well fund, which | 230 |
is hereby created. Fines imposed under divisions (C) and (D) of | 231 |
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section 1509.99 of the Revised Code for violations prosecuted by | 232 |
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prosecuting attorneys that involve the transportation of brine by | 233 |
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vehicle and penalties associated with a compliance agreement | 234 |
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entered into pursuant to this chapter shall be paid to the county | 235 |
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treasury of the county where the violation occurred. | 236 |
| The fund shall be used solely and exclusively for the | 237 |
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purposes enumerated in division (B) of section 1509.071 of the | 238 |
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Revised Code, for the expenses of the division associated with the | 239 |
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administration of this chapter and Chapter 1571. of the Revised | 240 |
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Code and rules adopted under them, and for expenses that are | 241 |
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critical and necessary for the protection of human health and | 242 |
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safety and the environment related to oil and gas production in | 243 |
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this state. The expenses of the division in excess of the moneys | 244 |
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available in the fund shall be paid from general revenue fund | 245 |
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appropriations to the department. | 246 |
| Sec. 1509.071. (A) When the chief of the division of oil and | 251 |
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gas resources management finds that an owner has failed to comply | 252 |
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with a final nonappealable order issued or compliance agreement | 253 |
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entered into under section 1509.04, the restoration requirements | 254 |
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of section 1509.072, plugging requirements of section 1509.12, or | 255 |
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permit provisions of section 1509.13 of the Revised Code, or rules | 256 |
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and orders relating thereto, the chief shall make a finding of | 257 |
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that fact and declare any surety bond filed to ensure compliance | 258 |
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with those sections and rules forfeited in the amount set by rule | 259 |
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of the chief. The chief thereupon shall certify the total | 260 |
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forfeiture to the attorney general, who shall proceed to collect | 261 |
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the amount of the forfeiture. In addition, the chief may require | 262 |
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an owner, operator, producer, or other person who forfeited a | 263 |
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surety bond to post a new surety bond in the amount of fifteen | 264 |
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thousand dollars for a single well, thirty thousand dollars for | 265 |
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two wells, or fifty thousand dollars for three or more wells. | 266 |
| (a) Determine from the records in the office of the county | 298 |
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recorder of the county in which the well is located the identity | 299 |
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of the owner of the land on which the well is located, the | 300 |
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identity of the owner of the oil or gas lease under which the well | 301 |
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was drilled or the identity of each person owning an interest in | 302 |
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the lease, and the identities of the persons having legal title | 303 |
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to, or a lien upon, any of the equipment appurtenant to the well; | 304 |
| (1) The expenditures may be made pursuant to contracts | 329 |
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entered into by the chief with persons who agree to furnish all of | 330 |
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the materials, equipment, work, and labor as specified and | 331 |
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provided in such a contract for activities associated with the | 332 |
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restoration or plugging of a well as determined by the chief. The | 333 |
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activities may include excavation to uncover a well, geophysical | 334 |
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methods to locate a buried well when clear evidence of leakage | 335 |
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from the well exists, cleanout of wellbores to remove material | 336 |
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from a failed plugging of a well, plugging operations, | 337 |
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installation of vault and vent systems, including associated | 338 |
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engineering certifications and permits, restoration of property, | 339 |
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and repair of damage to property that is caused by such | 340 |
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activities. Expenditures shall not be used for salaries, | 341 |
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maintenance, equipment, or other administrative purposes, except | 342 |
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for costs directly attributed to the plugging of an idle and | 343 |
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orphaned well. Agents or employees of persons contracting with the | 344 |
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chief for a restoration or plugging project may enter upon any | 345 |
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land, public or private, on which the well is located for the | 346 |
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purpose of performing the work. Prior to such entry, the chief | 347 |
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shall give to the following persons written notice of the | 348 |
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existence of a contract for a project to restore or plug a well, | 349 |
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the names of the persons with whom the contract is made, and the | 350 |
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date that the project will commence: the owner of the well, the | 351 |
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owner of the land upon which the well is located, the owner or | 352 |
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agents of adjoining land, and, if the well is located in the same | 353 |
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township as or in a township adjacent to the excavations and | 354 |
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workings of a mine and the owner or lessee of that mine has | 355 |
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provided written notice identifying those townships to the chief | 356 |
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at any time during the immediately preceding three years, the | 357 |
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owner or lessee of the mine. | 358 |
| (2)(a) The owner of the land on which a well is located who | 359 |
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has received notice under division (C)(1)(b) of this section may | 360 |
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plug the well and be reimbursed by the division of oil and gas | 361 |
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resources management for the reasonable cost of plugging the well. | 362 |
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In order to plug the well, the landowner shall submit an | 363 |
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application to the chief on a form prescribed by the chief and | 364 |
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approved by the technical advisory council on oil and gas created | 365 |
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in section 1509.38 of the Revised Code. The application, at a | 366 |
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minimum, shall require the landowner to provide the same | 367 |
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information as is required to be included in the application for a | 368 |
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permit to plug and abandon under section 1509.13 of the Revised | 369 |
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Code. The application shall be accompanied by a copy of a proposed | 370 |
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contract to plug the well prepared by a contractor regularly | 371 |
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engaged in the business of plugging oil and gas wells. The | 372 |
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proposed contract shall require the contractor to furnish all of | 373 |
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the materials, equipment, work, and labor necessary to plug the | 374 |
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well properly and shall specify the price for doing the work, | 375 |
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including a credit for the equipment appurtenant to the well that | 376 |
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was forfeited to the state through the operation of division | 377 |
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(C)(2) of this section. Expenditures under division (D)(2)(a) of | 378 |
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this section shall be consistent with the expenditures for | 379 |
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activities described in division (D)(1) of this section. The | 380 |
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application also shall be accompanied by the permit fee required | 381 |
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by section 1509.13 of the Revised Code unless the chief, in the | 382 |
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chief's discretion, waives payment of the permit fee. The | 383 |
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application constitutes an application for a permit to plug and | 384 |
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abandon the well for the purposes of section 1509.13 of the | 385 |
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Revised Code. | 386 |
| (b) Within thirty days after receiving an application and | 387 |
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accompanying proposed contract under division (D)(2)(a) of this | 388 |
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section, the chief shall determine whether the plugging would | 389 |
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comply with the applicable requirements of this chapter and | 390 |
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applicable rules adopted and orders issued under it and whether | 391 |
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the cost of the plugging under the proposed contract is | 392 |
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reasonable. If the chief determines that the proposed plugging | 393 |
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would comply with those requirements and that the proposed cost of | 394 |
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the plugging is reasonable, the chief shall notify the landowner | 395 |
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of that determination and issue to the landowner a permit to plug | 396 |
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and abandon the well under section 1509.13 of the Revised Code. | 397 |
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Upon approval of the application and proposed contract, the chief | 398 |
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shall transfer ownership of the equipment appurtenant to the well | 399 |
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to the landowner. The chief may disapprove an application | 400 |
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submitted under division (D)(2)(a) of this section if the chief | 401 |
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determines that the proposed plugging would not comply with the | 402 |
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applicable requirements of this chapter and applicable rules | 403 |
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adopted and orders issued under it, that the cost of the plugging | 404 |
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under the proposed contract is unreasonable, or that the proposed | 405 |
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contract is not a bona fide, arm's length contract. | 406 |
| (d) Upon determining that the plugging has been completed in | 411 |
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compliance with the applicable requirements of this chapter and | 412 |
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applicable rules adopted and orders issued under it, the chief | 413 |
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shall reimburse the landowner for the cost of the plugging as set | 414 |
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forth in the proposed contract approved by the chief. The | 415 |
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reimbursement shall be paid from the oil and gas well fund. If the | 416 |
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chief determines that the plugging was not completed in accordance | 417 |
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with the applicable requirements, the chief shall not reimburse | 418 |
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the landowner for the cost of the plugging, and the landowner or | 419 |
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the contractor, as applicable, promptly shall transfer back to | 420 |
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this state title to and possession of the equipment appurtenant to | 421 |
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the well that previously was transferred to the landowner under | 422 |
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division (D)(2)(b) of this section. If any such equipment was | 423 |
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removed from the well during the plugging and sold, the landowner | 424 |
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shall pay to the chief the proceeds from the sale of the | 425 |
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equipment, and the chief promptly shall pay the moneys so received | 426 |
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to the treasurer of state for deposit into the oil and gas well | 427 |
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fund. | 428 |
| (E) Expenditures from the oil and gas well fund for the | 436 |
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purpose of division (B)(2) of this section may be made pursuant to | 437 |
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contracts entered into by the chief with persons who agree to | 438 |
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furnish all of the materials, equipment, work, and labor as | 439 |
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specified and provided in such a contract. The competitive bidding | 440 |
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requirements of Chapter 153. of the Revised Code do not apply if | 441 |
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the chief reasonably determines that an emergency situation exists | 442 |
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requiring immediate action for the correction of the applicable | 443 |
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health or safety risk. A contract or purchase of materials for | 444 |
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purposes of addressing the emergency situation is not subject to | 445 |
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division (B) of section 127.16 of the Revised Code. The chief, | 446 |
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designated representatives of the chief, and agents or employees | 447 |
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of persons contracting with the chief under this division may | 448 |
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enter upon any land, public or private, for the purpose of | 449 |
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performing the work. | 450 |
| (G) The owner of land on which a well is located who has | 459 |
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received notice under division (C)(1)(b) of this section, in lieu | 460 |
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of plugging the well in accordance with division (D)(2) of this | 461 |
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section, may cause ownership of the well to be transferred to an | 462 |
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owner who is lawfully doing business in this state and who has met | 463 |
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the financial responsibility requirements established under | 464 |
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section 1509.07 of the Revised Code, subject to the approval of | 465 |
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the chief. The transfer of ownership also shall be subject to the | 466 |
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landowner's filing the appropriate forms required under section | 467 |
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1509.31 of the Revised Code and providing to the chief sufficient | 468 |
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information to demonstrate the landowner's or owner's right to | 469 |
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produce a formation or formations. That information may include a | 470 |
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deed, a lease, or other documentation of ownership or property | 471 |
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rights. | 472 |
| (J) On or before the last day of June of each year, the chief | 500 |
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shall deliver to the speaker of the house of representatives and | 501 |
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the president of the senate a report listing the projected amount | 502 |
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of money to be spent from the oil or gas well fund or the well | 503 |
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plugging fund to plug each idle or orphaned well that the chief | 504 |
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estimates will begin to be plugged in the following fiscal year | 505 |
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and the locations of such wells, and the number and location of | 506 |
|
all idle or orphaned wells plugged in the preceding fiscal year | 507 |
|
using money from the oil or gas well fund or the well plugging | 508 |
|
fund and the amount spent from each fund to plug such wells. | 509 |
| (C) There is hereby created in the state treasury the well | 522 |
|
plugging fund, which shall consist of money transferred to the | 523 |
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fund from the oil and gas severance tax fund under division (D)(7) | 524 |
|
of section 5749.02 of the Revised Code and the oil and gas well | 525 |
|
fund under division (B) of section 1509.02 of the Revised Code. | 526 |
|
The chief shall use the money in the well plugging fund | 527 |
|
exclusively for the purposes described in division (B) of section | 528 |
|
1509.071 of the Revised Code and subject to the requirements and | 529 |
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limitations imposed by that section related to the expenditure of | 530 |
|
funds for those purposes. | 531 |
| Sec. 1509.11. (A)(1) The owner of any well, except a | 535 |
|
horizontal well, that is producing or capable of producing oil or | 536 |
|
gas shall file with the chief of the division of oil and gas | 537 |
|
resources management, on or before the thirty-first day of March, | 538 |
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a statement of production of oil, gas, and brine for the last | 539 |
|
preceding calendar year in such form as the chief may prescribe. | 540 |
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An owner that has more than one hundred such wells in this state | 541 |
|
shall submit electronically the statement of production in a | 542 |
|
format that is approved by the chief. The chief shall include on | 543 |
|
the form, at the minimum, a request for the submittal of the | 544 |
|
information that a person who is regulated under this chapter is | 545 |
|
required to submit under the "Emergency Planning and Community | 546 |
|
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C.A. 11001, and | 547 |
|
regulations adopted under it, and that the division of oil and gas | 548 |
|
resources management does not obtain through other reporting | 549 |
|
mechanisms. | 550 |
| (2) The owner of any horizontal well that is producing or | 551 |
|
capable of producing oil or gas shall file with the chief, on the | 552 |
|
forty-fifth day following the close of each calendar quarter, a | 553 |
|
statement of production of oil, gas, and brine for the preceding | 554 |
|
calendar quarter in a form that the chief prescribes. An owner | 555 |
|
that has more than one hundred horizontal wells in this state | 556 |
|
shall submit electronically the statement of production in a | 557 |
|
format that is approved by the chief. The chief shall include on | 558 |
|
the form, at a minimum, a request for the submittal of the | 559 |
|
information that a person who is regulated under this chapter is | 560 |
|
required to submit under the "Emergency Planning and Community | 561 |
|
Right-To-Know Act of 1986," 100 Stat. 1728, 42 U.S.C. 11001, and | 562 |
|
regulations adopted under it, and that the division does not | 563 |
|
obtain through other reporting mechanisms. | 564 |
| Sec. 1509.34. (A)(1) If an owner fails to pay the fees | 587 |
|
imposed by this chapter, or if the chief of the division of oil | 588 |
|
and gas resources management incurs costs under division (E) of | 589 |
|
section 1509.071 of the Revised Code to correct conditions | 590 |
|
associated with the owner's well that the chief reasonably has | 591 |
|
determined are causing imminent health or safety risks, the | 592 |
|
division of oil and gas resources management shall have a priority | 593 |
|
lien against that owner's interest in the applicable well in front | 594 |
|
of all other creditors for the amount of any such unpaid fees and | 595 |
|
costs incurred. The chief shall file a statement in the office of | 596 |
|
the county recorder of the county in which the applicable well is | 597 |
|
located of the amount of the unpaid fees and costs incurred as | 598 |
|
described in this division. The statement shall constitute a lien | 599 |
|
on the owner's interest in the well as of the date of the filing. | 600 |
|
The lien shall remain in force so long as any portion of the lien | 601 |
|
remains unpaid or until the chief issues a certificate of release | 602 |
|
of the lien. If the chief issues a certificate of release of the | 603 |
|
lien, the chief shall file the certificate of release in the | 604 |
|
office of the applicable county recorder. | 605 |
| Sec. 1513.08. (A) After a coal mining and reclamation permit | 641 |
|
application has been approved, the applicant shall file with the | 642 |
|
chief of the division of mineral resources management, on a form | 643 |
|
prescribed and furnished by the chief, the performance security | 644 |
|
required under this section that shall be payable to the state and | 645 |
|
conditioned on the faithful performance of all the requirements of | 646 |
|
this chapter and rules adopted under it and the terms and | 647 |
|
conditions of the permit. | 648 |
| (B) Using the information contained in the permit | 649 |
|
application; the requirements contained in the approved permit and | 650 |
|
reclamation plan; and, after considering the topography, geology, | 651 |
|
hydrology, and revegetation potential of the area of the approved | 652 |
|
permit, the probable difficulty of reclamation; the chief shall | 653 |
|
determine the estimated cost of reclamation under the initial term | 654 |
|
of the permit if the reclamation has to be performed by the | 655 |
|
division of mineral resources management in the event of | 656 |
|
forfeiture of the performance security by the applicant. The chief | 657 |
|
shall send written notice of the amount of the estimated cost of | 658 |
|
reclamation by certified mail to the applicant. The applicant | 659 |
|
shall send written notice to the chief indicating the method by | 660 |
|
which the applicant will provide the performance security pursuant | 661 |
|
to division (C) of this section. | 662 |
| (2) If the applicant elects to provide performance security | 672 |
|
together with reliance on the reclamation forfeiture fund through | 673 |
|
payment of the additional tax on the severance of coal that is | 674 |
levied under division (A)(B)(8) of section 5749.02 of the Revised | 675 |
|
Code, an amount of twenty-five hundred dollars per acre of land on | 676 |
|
which the operator will conduct coal mining and reclamation under | 677 |
|
the initial term of the permit as indicated in the application. | 678 |
|
However, in order for an applicant to be eligible to provide | 679 |
|
performance security in accordance with division (C)(2) of this | 680 |
|
section, the applicant, an owner and controller of the applicant, | 681 |
|
or an affiliate of the applicant shall have held a permit issued | 682 |
|
under this chapter for any coal mining and reclamation operation | 683 |
|
for a period of not less than five years. In the event of | 684 |
|
forfeiture of performance security that was provided in accordance | 685 |
|
with division (C)(2) of this section, the difference between the | 686 |
|
amount of that performance security and the estimated cost of | 687 |
|
reclamation as determined by the chief under division (B) of this | 688 |
|
section shall be obtained from money in the reclamation forfeiture | 689 |
|
fund as needed to complete the reclamation. | 690 |
| The performance security shall cover areas of land affected | 694 |
|
by mining within or immediately adjacent to the permitted area, so | 695 |
|
long as the total number of acres does not exceed the number of | 696 |
|
acres for which the performance security is provided. However, the | 697 |
|
authority for the performance security to cover areas of land | 698 |
|
immediately adjacent to the permitted area does not authorize a | 699 |
|
permittee to mine areas outside an approved permit area. As | 700 |
|
succeeding increments of coal mining and reclamation operations | 701 |
|
are to be initiated and conducted within the permit area, the | 702 |
|
permittee shall file with the chief additional performance | 703 |
|
security to cover the increments in accordance with this section. | 704 |
|
If a permittee intends to mine areas outside the approved permit | 705 |
|
area, the permittee shall provide additional performance security | 706 |
|
in accordance with this section to cover the areas to be mined. | 707 |
| If an applicant or permittee has not held a permit issued | 708 |
|
under this chapter for any coal mining and reclamation operation | 709 |
|
for a period of five years or more, the applicant or permittee | 710 |
|
shall provide performance security in accordance with division | 711 |
|
(C)(1) of this section in the full amount of the estimated cost of | 712 |
|
reclamation as determined by the chief for a permitted coal | 713 |
|
preparation plant or coal refuse disposal area that is not located | 714 |
|
within a permitted area of a mine. If an applicant for a permit | 715 |
|
for a coal preparation plant or coal refuse disposal area or a | 716 |
|
permittee of a permitted coal preparation plant or coal refuse | 717 |
|
disposal area that is not located within a permitted area of a | 718 |
|
mine has held a permit issued under this chapter for any coal | 719 |
|
mining and reclamation operation for a period of five years or | 720 |
|
more, the applicant or permittee may provide performance security | 721 |
|
for the coal preparation plant or coal refuse disposal area either | 722 |
|
in accordance with division (C)(1) of this section in the full | 723 |
|
amount of the estimated cost of reclamation as determined by the | 724 |
|
chief or in accordance with division (C)(2) of this section in an | 725 |
|
amount of twenty-five hundred dollars per acre of land with | 726 |
|
reliance on the reclamation forfeiture fund. If a permittee has | 727 |
|
previously provided performance security under division (C)(1) of | 728 |
|
this section for a coal preparation plant or coal refuse disposal | 729 |
|
area that is not located within a permitted area of a mine and | 730 |
|
elects to provide performance security in accordance with division | 731 |
|
(C)(2) of this section, the permittee shall submit written notice | 732 |
|
to the chief indicating that the permittee elects to provide | 733 |
|
performance security in accordance with division (C)(2) of this | 734 |
|
section. Upon receipt of such a written notice, the chief shall | 735 |
|
release to the permittee the amount of the performance security | 736 |
|
previously provided under division (C)(1) of this section that | 737 |
|
exceeds the amount of performance security that is required to be | 738 |
|
provided under division (C)(2) of this section. | 739 |
| (D) A permittee's liability under the performance security | 740 |
|
shall be limited to the obligations established under the permit, | 741 |
|
which include completion of the reclamation plan in order to make | 742 |
|
the land capable of supporting the postmining land use that was | 743 |
|
approved in the permit. The period of liability under the | 744 |
|
performance security shall be for the duration of the coal mining | 745 |
|
and reclamation operation and for a period coincident with the | 746 |
|
operator's responsibility for revegetation requirements under | 747 |
|
section 1513.16 of the Revised Code. | 748 |
| (E) The amount of the estimated cost of reclamation | 749 |
|
determined under division (B) of this section and the amount of a | 750 |
|
permittee's performance security provided in accordance with | 751 |
|
division (C)(1) of this section shall be adjusted by the chief as | 752 |
|
the land that is affected by mining increases or decreases or if | 753 |
|
the cost of reclamation increases or decreases. If the performance | 754 |
|
security was provided in accordance with division (C)(2) of this | 755 |
|
section and the chief has issued a cessation order under division | 756 |
|
(D)(2) of section 1513.02 of the Revised Code for failure to abate | 757 |
|
a violation of the contemporaneous reclamation requirement under | 758 |
|
division (A)(15) of section 1513.16 of the Revised Code, the chief | 759 |
|
may require the permittee to increase the amount of performance | 760 |
|
security from twenty-five hundred dollars per acre of land to five | 761 |
|
thousand dollars per acre of land. | 762 |
| If the chief increases the amount of performance security | 769 |
|
under this division, the permittee shall provide additional | 770 |
|
performance security in an amount determined by the chief. If the | 771 |
|
chief decreases the amount of performance security under this | 772 |
|
division, the chief shall determine the amount of the reduction of | 773 |
|
the performance security and send written notice of the amount of | 774 |
|
reduction to the permittee. The permittee may reduce the amount of | 775 |
|
the performance security in the amount determined by the chief. | 776 |
| (F) A permittee may request a reduction in the amount of the | 777 |
|
performance security by submitting to the chief documentation | 778 |
|
proving that the amount of the performance security provided by | 779 |
|
the permittee exceeds the estimated cost of reclamation if the | 780 |
|
reclamation would have to be performed by the division in the | 781 |
|
event of forfeiture of the performance security. The chief shall | 782 |
|
examine the documentation and determine whether the permittee's | 783 |
|
performance security exceeds the estimated cost of reclamation. If | 784 |
|
the chief determines that the performance security exceeds that | 785 |
|
estimated cost, the chief shall determine the amount of the | 786 |
|
reduction of the performance security and send written notice of | 787 |
|
the amount to the permittee. The permittee may reduce the amount | 788 |
|
of the performance security in the amount determined by the chief. | 789 |
|
Adjustments in the amount of performance security under this | 790 |
|
division shall not be considered release of performance security | 791 |
|
and are not subject to section 1513.16 of the Revised Code. | 792 |
| (G) If the performance security is a bond, it shall be | 793 |
|
executed by the operator and a corporate surety licensed to do | 794 |
|
business in this state. If the performance security is a cash | 795 |
|
deposit or negotiable certificates of deposit of a bank or savings | 796 |
|
and loan association, the bank or savings and loan association | 797 |
|
shall be licensed and operating in this state. The cash deposit or | 798 |
|
market value of the securities shall be equal to or greater than | 799 |
|
the amount of the performance security required under this | 800 |
|
section. The chief shall review any documents pertaining to the | 801 |
|
performance security and approve or disapprove the documents. The | 802 |
|
chief shall notify the applicant of the chief's determination. | 803 |
| (I) Performance security provided under this section may be | 810 |
|
held in trust, provided that the state is the primary beneficiary | 811 |
|
of the trust and the custodian of the performance security held in | 812 |
|
trust is a bank, trust company, or other financial institution | 813 |
|
that is licensed and operating in this state. The chief shall | 814 |
|
review the trust document and approve or disapprove the document. | 815 |
|
The chief shall notify the applicant of the chief's determination. | 816 |
| (J) If a surety, bank, savings and loan association, trust | 817 |
|
company, or other financial institution that holds the performance | 818 |
|
security required under this section becomes insolvent, the | 819 |
|
permittee shall notify the chief of the insolvency, and the chief | 820 |
|
shall order the permittee to submit a plan for replacement | 821 |
|
performance security within thirty days after receipt of notice | 822 |
|
from the chief. If the permittee provided performance security in | 823 |
|
accordance with division (C)(1) of this section, the permittee | 824 |
|
shall provide the replacement performance security within ninety | 825 |
|
days after receipt of notice from the chief. If the permittee | 826 |
|
provided performance security in accordance with division (C)(2) | 827 |
|
of this section, the permittee shall provide the replacement | 828 |
|
performance security within one year after receipt of notice from | 829 |
|
the chief, and, for a period of one year after the permittee's | 830 |
|
receipt of notice from the chief or until the permittee provides | 831 |
|
the replacement performance security, whichever occurs first, | 832 |
|
money in the reclamation forfeiture fund shall be the permittee's | 833 |
|
replacement performance security in an amount not to exceed the | 834 |
|
estimated cost of reclamation as determined by the chief. | 835 |
| (2) The provision of additional performance security in the | 847 |
|
amount of the estimated cost to the division of mineral resources | 848 |
|
management to repair material damage and replace water supplies | 849 |
|
resulting from subsidence until the repair or replacement is | 850 |
|
completed. However, if such repair or replacement is completed, or | 851 |
|
compensation for structures that have been damaged by subsidence | 852 |
|
is provided, by the permittee within ninety days of the occurrence | 853 |
|
of the subsidence, additional performance security is not | 854 |
|
required. In addition, the chief may extend the ninety-day period | 855 |
|
for a period not to exceed one year if the chief determines that | 856 |
|
the permittee has demonstrated in writing that subsidence is not | 857 |
|
complete and that probable subsidence-related damage likely will | 858 |
|
occur and, as a result, the completion of repairs of | 859 |
|
subsidence-related material damage to lands or protected | 860 |
|
structures or the replacement of water supply within ninety days | 861 |
|
of the occurrence of the subsidence would be unreasonable. | 862 |
| (M) A permittee that held a valid coal mining and reclamation | 869 |
|
permit immediately prior to April 6, 2007, shall provide, not | 870 |
|
later than a date established by the chief, performance security | 871 |
|
in accordance with division (C)(1) or (2) of this section, rather | 872 |
|
than in accordance with the law as it existed prior to that date, | 873 |
|
by filing it with the chief on a form that the chief prescribes | 874 |
|
and furnishes. Accordingly, for purposes of this section, | 875 |
|
"applicant" is deemed to include such a permittee. | 876 |
| Sec. 1513.182. (A) There is hereby created the reclamation | 884 |
|
forfeiture fund advisory board consisting of the director of | 885 |
|
natural resources, the director of insurance, and seven members | 886 |
|
appointed by the governor with the advice and consent of the | 887 |
|
senate. Of the governor's appointments, one shall be a certified | 888 |
|
public accountant, one shall be a registered professional engineer | 889 |
|
with experience in reclamation of mined land, two shall represent | 890 |
|
agriculture, agronomy, or forestry, one shall be a representative | 891 |
|
of operators of coal mining operations that have valid permits | 892 |
|
issued under this chapter and that have provided performance | 893 |
|
security under division (C)(1) of section 1513.08 of the Revised | 894 |
|
Code, one shall be a representative of operators of coal mining | 895 |
|
operations that have valid permits issued under this chapter and | 896 |
|
that have provided performance security under division (C)(2) of | 897 |
|
section 1513.08 of the Revised Code, and one shall be a | 898 |
|
representative of the public. | 899 |
| Of the original members appointed by the governor, two shall | 900 |
|
serve an initial term of two years, three an initial term of three | 901 |
|
years, and two an initial term of four years. Thereafter, terms of | 902 |
|
appointed members shall be for four years, with each term ending | 903 |
|
on the same date as the original date of appointment. An appointed | 904 |
|
member shall hold office from the date of appointment until the | 905 |
|
end of the term for which the member was appointed. Vacancies | 906 |
|
shall be filled in the same manner as original appointments. A | 907 |
|
member appointed to fill a vacancy occurring prior to the | 908 |
|
expiration of the term for which the member's predecessor was | 909 |
|
appointed shall hold office for the remainder of that term. A | 910 |
|
member shall continue in office subsequent to the expiration date | 911 |
|
of the member's term until the member's successor takes office or | 912 |
|
until a period of sixty days has elapsed, whichever occurs first. | 913 |
|
The governor may remove an appointed member of the board for | 914 |
|
misfeasance, nonfeasance, or malfeasance. | 915 |
| The directors of natural resources and insurance shall not | 916 |
|
receive compensation for serving on the board, but shall be | 917 |
|
reimbursed for the actual and necessary expenses incurred in the | 918 |
|
performance of their duties as members of the board. The members | 919 |
|
appointed by the governor shall receive per diem compensation | 920 |
|
fixed pursuant to division (J) of section 124.15 of the Revised | 921 |
|
Code and reimbursement for the actual and necessary expenses | 922 |
|
incurred in the performance of their duties. | 923 |
| Sec. 1514.11. In addition to the purposes authorized in | 967 |
|
section 1514.06 of the Revised Code, the chief of the division of | 968 |
|
mineral resources management may use moneys in the surface mining | 969 |
|
fund created under that section for the administration and | 970 |
|
enforcement of this chapter, for the reclamation of land affected | 971 |
|
by surface or in-stream mining under a permit issued under this | 972 |
|
chapter that the operator failed to reclaim and for which the | 973 |
|
performance bond filed by the operator is insufficient to complete | 974 |
|
the reclamation, and for the reclamation of land affected by | 975 |
|
surface or in-stream mining that was abandoned and left | 976 |
|
unreclaimed and for which no permit was issued or bond filed under | 977 |
|
this chapter. Also, the chief may use the portion of the surface | 978 |
|
mining fund that consists of moneys collected from the severance | 979 |
|
taxes levied under section 5749.02 of the Revised Code for mine | 980 |
|
safety and first aid training. For purposes of this section, the | 981 |
|
chief shall expend moneys in the fund in accordance with the | 982 |
|
procedures and requirements established in section 1514.06 of the | 983 |
|
Revised Code and may enter into contracts and perform work in | 984 |
|
accordance with that section. | 985 |
| Fees collected under sections 1514.02 and 1514.03 of the | 986 |
|
Revised Code, one-half of the moneys collected from the severance | 987 |
taxes levied under divisions (A)(B)(3) and (4) of section 5749.02 | 988 |
|
of the Revised Code, and all of the moneys collected from the | 989 |
severance tax levied under division (A)(B)(7) of section 5749.02 | 990 |
|
of the Revised Code shall be credited to the fund in accordance | 991 |
|
with those sections. Notwithstanding any section of the Revised | 992 |
|
Code relating to the distribution or crediting of fines for | 993 |
|
violations of the Revised Code, all fines imposed under section | 994 |
|
1514.99 of the Revised Code shall be credited to the fund. | 995 |
| Sec. 5703.052. (A) There is hereby created in the state | 996 |
|
treasury the tax refund fund, from which refunds shall be paid for | 997 |
|
taxes illegally or erroneously assessed or collected, or for any | 998 |
|
other reason overpaid, that are levied by Chapter 4301., 4305., | 999 |
|
5726., 5728., 5729., 5731., 5733., 5735., 5736., 5739., 5741., | 1000 |
|
5743., 5747., 5748., 5749., 5751., or 5753. and sections 3737.71, | 1001 |
|
3905.35, 3905.36, 4303.33, 5707.03, 5725.18, 5727.28, 5727.38, | 1002 |
|
5727.81, and 5727.811 of the Revised Code. Refunds for fees or | 1003 |
|
wireless 9-1-1 charges illegally or erroneously assessed or | 1004 |
|
collected, or for any other reason overpaid, that are levied by | 1005 |
|
sections 128.42 or 3734.90 to 3734.9014 of the Revised Code also | 1006 |
|
shall be paid from the fund. Refunds for amounts illegally or | 1007 |
|
erroneously assessed or collected by the tax commissioner, or for | 1008 |
|
any other reason overpaid, that are due under former section | 1009 |
|
1509.50 of the Revised Code as that section existed before its | 1010 |
|
repeal by H.B. 375 of the 130th general assembly shall be paid | 1011 |
|
from the fund. However, refunds for taxes levied under section | 1012 |
|
5739.101 of the Revised Code shall not be paid from the tax refund | 1013 |
|
fund, but shall be paid as provided in section 5739.104 of the | 1014 |
|
Revised Code. | 1015 |
| (B)(1) Upon certification by the tax commissioner to the | 1016 |
|
treasurer of state of a tax refund, a wireless 9-1-1 charge | 1017 |
|
refund, or another amount refunded, or by the superintendent of | 1018 |
|
insurance of a domestic or foreign insurance tax refund, the | 1019 |
|
treasurer of state shall place the amount certified to the credit | 1020 |
|
of the fund. The certified amount transferred shall be derived | 1021 |
|
from the receipts of the same tax, fee, wireless 9-1-1 charge, or | 1022 |
|
other amount from which the refund arose. | 1023 |
| (2) When a refund is for a tax, fee, wireless 9-1-1 charge, | 1024 |
|
or other amount that is not levied by the state or that was | 1025 |
|
illegally or erroneously distributed to a taxing jurisdiction, the | 1026 |
|
tax commissioner shall recover the amount of that refund from the | 1027 |
|
next distribution of that tax, fee, wireless 9-1-1 charge, or | 1028 |
|
other amount that otherwise would be made to the taxing | 1029 |
|
jurisdiction. If the amount to be recovered would exceed | 1030 |
|
twenty-five per cent of the next distribution of that tax, fee, | 1031 |
|
wireless 9-1-1 charge, or other amount, the commissioner may | 1032 |
|
spread the recovery over more than one future distribution, taking | 1033 |
|
into account the amount to be recovered and the amount of the | 1034 |
|
anticipated future distributions. In no event may the commissioner | 1035 |
|
spread the recovery over a period to exceed twenty-four months. | 1036 |
| Sec. 5705.27. There is hereby created in each county a | 1037 |
|
county budget commission consisting of the county auditor, the | 1038 |
|
county treasurer, and the prosecuting attorney. Upon petition | 1039 |
|
filed with the board of elections, signed by the number of | 1040 |
|
electors of the county equal in amount to three per cent of the | 1041 |
|
total number of votes cast for governor at the most recent | 1042 |
|
election therefor, there shall be submitted to the electors of the | 1043 |
|
county at the next general election occurring not sooner than | 1044 |
|
ninety days after the filing of the petition, the question "Shall | 1045 |
|
the county budget commission consist of two additional members to | 1046 |
|
be elected from the county?" Provision shall be made on the ballot | 1047 |
|
for the election from the county at large of two additional | 1048 |
|
members of the county budget commission who shall be electors of | 1049 |
|
the county if a majority of the electors voting on the question | 1050 |
|
shall have voted in the affirmative. In such counties, where the | 1051 |
|
electors have voted in the affirmative, the county budget | 1052 |
|
commission shall consist of such two elected members in addition | 1053 |
|
to the county auditor, the county treasurer and the prosecuting | 1054 |
|
attorney. Such members, who shall not hold any other public | 1055 |
office, shall serve for a term of four years. The | 1056 |
| The commission shall meet at the office of the county auditor | 1057 |
in each county on the first Monday in February and on the first | 1058 |
|
Monday in August, annually, and shall complete its work on or | 1059 |
|
before the first day of September, annually, unless for good cause | 1060 |
the tax commissioner extends the time for completing the work. A | 1061 |
| The commission shall meet at the call of the county auditor to | 1062 |
|
hold a hearing not later than forty days following the deposit of | 1063 |
|
any money into the severance tax infrastructure fund created under | 1064 |
|
section 321.50 of the Revised Code for the purpose of distributing | 1065 |
|
such money to subdivisions in accordance with division (G) of | 1066 |
|
section 5705.32 of the Revised Code. At least thirty days before | 1067 |
|
the hearing, the auditor shall notify the taxing authorities of | 1068 |
|
all subdivisions located in the county that money has been | 1069 |
|
deposited in the severance tax infrastructure fund and that each | 1070 |
|
taxing authority receiving notice may appear and testify to | 1071 |
|
demonstrate the subdivision's need, if any, for such money to pay | 1072 |
|
for permanent improvements or for reconstructing, improving, | 1073 |
|
repairing, or equipping roads or bridges. The notification shall | 1074 |
|
require a subdivision to respond within fifteen days after the | 1075 |
|
auditor sends the notification to the subdivision notifying the | 1076 |
|
auditor that a representative of the subdivision will appear and | 1077 |
|
give testimony or evidence at the hearing. If no subdivision | 1078 |
|
responds within this period, the commission may cancel the | 1079 |
|
scheduled hearing. In any event, the commission shall proceed as | 1080 |
|
provided in division (G) of section 5705.32 of the Revised Code. | 1081 |
| In adjusting the rates of taxation and fixing the amount of | 1094 |
|
taxes to be levied each year, the commissioners shall be governed | 1095 |
|
by the amount of the taxable property shown on the auditor's tax | 1096 |
|
list for the current year; provided that if the auditor's tax list | 1097 |
|
has not been completed, the auditor shall estimate, as nearly as | 1098 |
|
practicable, the amount of the taxable property for such year, and | 1099 |
|
such officers shall be governed by such estimate. | 1100 |
| In any county in which two members of the commission are | 1101 |
|
elected, upon petition filed with the board of elections, signed | 1102 |
|
by the number of electors of the county equal in amount to three | 1103 |
|
per cent of the votes cast for governor at the most recent | 1104 |
|
election therefor, there shall be submitted to the electors of the | 1105 |
|
county at the next general election occurring not sooner than | 1106 |
|
ninety days after the filing of the petition, the question "Shall | 1107 |
|
the elected members be eliminated from the county budget | 1108 |
|
commission?" If the majority of the electors voting thereon shall | 1109 |
|
have voted in the affirmative, the county budget commission shall | 1110 |
|
consist solely of the county auditor, the county treasurer, and | 1111 |
|
the prosecuting attorney. | 1112 |
| Sec. 5705.32. (A) The county budget commission shall adjust | 1113 |
|
the estimated amounts required from the general property tax for | 1114 |
|
each fund, as shown by the tax budgets or other information | 1115 |
|
required to be provided under section 5705.281 of the Revised | 1116 |
|
Code, so as to bring the tax levies required therefor within the | 1117 |
|
limitations specified in sections 5705.01 to 5705.47 of the | 1118 |
|
Revised Code, for such levies, but no levy shall be reduced below | 1119 |
|
a minimum fixed by law. The commission may revise and adjust the | 1120 |
|
estimate of balances and receipts from all sources for each fund | 1121 |
|
and shall determine the total appropriations that may be made | 1122 |
|
therefrom. | 1123 |
| (B) The commission shall fix the amount of the county public | 1124 |
|
library fund to be distributed to each board of public library | 1125 |
|
trustees that has qualified under section 5705.28 of the Revised | 1126 |
|
Code for participation in the proceeds of such fund. The amount | 1127 |
|
paid to all libraries in the county from such fund shall never be | 1128 |
|
a smaller per cent of the fund than the average of the percentages | 1129 |
|
of the county's classified taxes that were distributed to | 1130 |
|
libraries in 1982, 1983, and 1984, as determined by the county | 1131 |
|
auditor. The commission shall base the amount for distribution on | 1132 |
|
the needs of such library for the construction of new library | 1133 |
|
buildings, parts of buildings, improvements, operation, | 1134 |
|
maintenance, or other expenses. In determining the needs of each | 1135 |
|
library board of trustees, and in calculating the amount to be | 1136 |
|
distributed to any library board of trustees on the basis of its | 1137 |
|
needs, the commission shall make no reduction in its allocation | 1138 |
|
from the fund on account of additional revenues realized by a | 1139 |
|
library from increased taxes or service charges voted by its | 1140 |
|
electorate, from revenues received through federal or state | 1141 |
|
grants, projects, or programs, or from grants from private | 1142 |
|
sources. | 1143 |
| (C) Notwithstanding the fact that alternative methods of | 1144 |
|
financing such needs are available, after fixing the amount to be | 1145 |
|
distributed to libraries, the commission shall fix the amount, if | 1146 |
|
any, of the county public library fund to be distributed to each | 1147 |
|
board of township park commissioners, the county, and each | 1148 |
|
municipal corporation in accordance with the following: | 1149 |
| (1) Each municipal corporation in the county shall receive a | 1150 |
|
per cent of the remainder that equals the per cent that the county | 1151 |
|
auditor determines the classified property taxes originating in | 1152 |
|
such municipal corporation in 1984 were of the total of all of the | 1153 |
|
county's classified property taxes in 1984. The commission may | 1154 |
|
deduct from this amount any amount that the budget commission | 1155 |
|
allows to the board of township park commissioners of a township | 1156 |
|
park district, the boundaries of which are coextensive with or | 1157 |
|
contained within the boundaries of the municipal corporation. | 1158 |
| (2) The county shall receive a per cent of the remainder that | 1159 |
|
equals the per cent that the county auditor determines the | 1160 |
|
classified property taxes originating outside of the boundaries of | 1161 |
|
municipal corporations in the county in 1984 were of the total of | 1162 |
|
all of the county's classified property taxes in 1984. The | 1163 |
|
commission may deduct from this amount any amount that the budget | 1164 |
|
commission allows to the board of township park commissioners of a | 1165 |
|
township park district, the boundaries of which are not | 1166 |
|
coextensive with or contained within those of any municipal | 1167 |
|
corporation in the county. | 1168 |
| (D) The commission shall separately set forth the amounts | 1169 |
|
fixed and determined under divisions (B) and (C) of this section | 1170 |
|
in the "official certificate of estimated resources," as provided | 1171 |
|
in section 5705.35 of the Revised Code, and separately certify | 1172 |
|
such amount to the county auditor who shall be guided thereby in | 1173 |
|
the distribution of the county public library fund for and during | 1174 |
|
the fiscal year. In determining such amounts, the commission shall | 1175 |
|
be guided by the estimate certified by the tax commissioner and | 1176 |
|
presented by the auditor under section 5705.31 of the Revised | 1177 |
|
Code, as to the total amount of revenue to be received in the | 1178 |
|
county public library fund during such fiscal year. | 1179 |
| (E)(1) At least five days before the date of any meeting at | 1180 |
|
which the budget commission plans to discuss the distribution of | 1181 |
|
the county public library fund, it shall notify each legislative | 1182 |
|
authority and board of public library trustees, county | 1183 |
|
commissioners, and township park commissioners eligible to | 1184 |
|
participate in the distribution of the fund of the date, time, | 1185 |
|
place, and agenda for the meeting. Any legislative authority or | 1186 |
|
board entitled to notice under this division may designate an | 1187 |
|
officer or employee of such legislative authority or board to whom | 1188 |
|
the commission shall deliver the notice. | 1189 |
| Subject to division (G)(2) of this section, the commission | 1210 |
|
shall determine the amount, if any, to be distributed to each | 1211 |
|
subdivision represented at the hearing on the basis of the | 1212 |
|
testimony and evidence presented, and shall issue an order to the | 1213 |
|
county treasurer distributing all or a portion of the money in the | 1214 |
|
severance tax infrastructure fund to such subdivisions. An order | 1215 |
|
of the commission under this division may not be appealed. If the | 1216 |
|
commission canceled the hearing because no subdivisions responded | 1217 |
|
to the notice, the commission shall hold a meeting to determine | 1218 |
|
whether money in the fund shall be distributed and, if so, the | 1219 |
|
amounts to be distributed, based on any information in the | 1220 |
|
commission's possession. | 1221 |
| (1) An amount equal to the lesser of the money in the local | 1253 |
|
government reimbursement fund or the sum of the amounts certified | 1254 |
|
by the tax commissioner under divisions (A)(1) and (2) of this | 1255 |
|
section to the undivided local government fund and the public | 1256 |
|
library fund of each county and to each municipal corporation | 1257 |
|
receiving money that calendar year under division (C) of section | 1258 |
|
5747.50 of the Revised Code in the same proportions as money from | 1259 |
|
the local government fund is distributed to undivided local | 1260 |
|
government funds and those municipal corporations under divisions | 1261 |
|
(B) and (C) of section 5747.50 of the Revised Code and from the | 1262 |
|
public library fund to county public library funds under section | 1263 |
|
5747.47 of the Revised Code for that calendar year. | 1264 |
| (B) For taxable years beginning on or after January 1, 2014, | 1302 |
|
a taxpayer holding a royalty interest in a well producing oil or | 1303 |
|
gas may claim a nonrefundable credit against the tax imposed by | 1304 |
|
section 5747.02 of the Revised Code. The amount of the credit | 1305 |
|
equals the amount of oil and gas severance tax paid by the severer | 1306 |
|
for calendar quarters that end in or coincide with the taxpayer's | 1307 |
|
taxable year multiplied by the lesser of twelve and one-half per | 1308 |
|
cent or the proportion on the last day of the taxable year of that | 1309 |
|
tax by which the taxpayer's royalty payments are reduced or for | 1310 |
|
which the taxpayer is contractually required to pay the severer. | 1311 |
| A taxpayer who has a direct or indirect ownership interest in | 1312 |
|
a pass-through entity that owns a royalty interest may claim a | 1313 |
|
credit under this section with respect to each well for which the | 1314 |
|
pass-through entity receives a royalty payment. The amount of the | 1315 |
|
credit with respect to each well shall be the taxpayer's | 1316 |
|
distributive or proportionate share of oil and gas severance tax | 1317 |
|
paid by the severer for the calendar quarters that end in or | 1318 |
|
coincide with the taxpayer's taxable year multiplied by the lesser | 1319 |
|
of twelve and one-half per cent or the proportion, on the last day | 1320 |
|
of the taxable year, of that tax by which the pass-through | 1321 |
|
entity's royalty payments are reduced or for which the | 1322 |
|
pass-through entity is contractually required to pay the severer. | 1323 |
| (D) On or before the last day of January of each year, a | 1328 |
|
severer shall deliver to each taxpayer or pass-through entity that | 1329 |
|
holds a royalty interest in the severer's well a written report | 1330 |
|
that lists the amount of oil and gas severance tax the severer | 1331 |
|
paid on oil and gas severed and sold from that well in the | 1332 |
|
preceding calendar year unless that information has already been | 1333 |
|
provided by a severer to each taxpayer or pass-through entity in | 1334 |
|
one or more written periodic reports. If requested by the tax | 1335 |
|
commissioner, a taxpayer or pass-through entity shall furnish to | 1336 |
|
the commissioner such reports or other documentation | 1337 |
|
substantiating the taxpayer's or entity's royalty interest or the | 1338 |
|
proportion of oil and gas severance tax by which the taxpayer's or | 1339 |
|
entity's royalty payments are reduced or for which the taxpayer or | 1340 |
|
entity is required to pay the severer. | 1341 |
| (B) For any credit, except the refundable credits enumerated | 1433 |
|
in this section and the credit granted under division (I) of | 1434 |
|
section 5747.08 of the Revised Code, the amount of the credit for | 1435 |
|
a taxable year shall not exceed the tax due after allowing for any | 1436 |
|
other credit that precedes it in the order required under this | 1437 |
|
section. Any excess amount of a particular credit may be carried | 1438 |
|
forward if authorized under the section creating that credit. | 1439 |
|
Nothing in this chapter shall be construed to allow a taxpayer to | 1440 |
|
claim, directly or indirectly, a credit more than once for a | 1441 |
|
taxable year. | 1442 |
| (M) "Wellhead gross receipts" means the total amount received | 1482 |
|
by a severer or another person from the first sale of oil and gas, | 1483 |
|
whether or not the sale occurs at the wellhead, after deduction | 1484 |
|
for any fees paid or costs incurred or accrued by or on behalf of | 1485 |
|
the severer or an affiliate of the severer for processing, | 1486 |
|
gathering, transporting, fractionating, stabilizing, compressing, | 1487 |
|
dehydrating, shrinkage, brokering, delivering, and market access | 1488 |
|
for such oil and gas, but not including fees paid or costs | 1489 |
|
incurred or accrued for oil and gas lease acquisitions, | 1490 |
|
geophysical and geologic services, well site preparation, well | 1491 |
|
drilling, well completion services, related tangible or intangible | 1492 |
|
drilling costs, natural gas storage services, general | 1493 |
|
merchandising, and lease operating costs for the production of oil | 1494 |
|
and gas at the wellhead. | 1495 |
| Sec. 5749.02. (A) For the purpose of providing revenue to | 1511 |
|
administer the state's coal mining and reclamation regulatory | 1512 |
|
program and oil and gas regulatory program, to meet the | 1513 |
|
environmental and resource management needs of this state, to | 1514 |
|
provide revenue for local governments, to provide revenue for | 1515 |
|
temporary income tax reductions, and to reclaim land affected by | 1516 |
mining, an excisea tax is hereby levied on the privilege of | 1517 |
|
engaging in the severance of natural resources from the soil or | 1518 |
|
water of this state under divisions (B) and (C) of this section. | 1519 |
The tax | 1520 |
| (8) Except as otherwise provided in this division or in rules | 1533 |
|
adopted by the reclamation forfeiture fund advisory board under | 1534 |
|
section 1513.182 of the Revised Code, an additional fourteen cents | 1535 |
|
per ton of coal produced from an area under a coal mining and | 1536 |
|
reclamation permit issued under Chapter 1513. of the Revised Code | 1537 |
|
for which the performance security is provided under division | 1538 |
|
(C)(2) of section 1513.08 of the Revised Code. Beginning July 1, | 1539 |
|
2007, if at the end of a fiscal biennium the balance of the | 1540 |
|
reclamation forfeiture fund created in section 1513.18 of the | 1541 |
|
Revised Code is equal to or greater than ten million dollars, the | 1542 |
|
rate levied shall be twelve cents per ton. Beginning July 1, 2007, | 1543 |
|
if at the end of a fiscal biennium the balance of the fund is at | 1544 |
|
least five million dollars, but less than ten million dollars, the | 1545 |
|
rate levied shall be fourteen cents per ton. Beginning July 1, | 1546 |
|
2007, if at the end of a fiscal biennium the balance of the fund | 1547 |
|
is less than five million dollars, the rate levied shall be | 1548 |
|
sixteen cents per ton. Beginning July 1, 2009, not later than | 1549 |
|
thirty days after the close of a fiscal biennium, the chief of the | 1550 |
|
division of mineral resources management shall certify to the tax | 1551 |
|
commissioner the amount of the balance of the reclamation | 1552 |
|
forfeiture fund as of the close of the fiscal biennium. Any | 1553 |
|
necessary adjustment of the rate levied shall take effect on the | 1554 |
|
first day of the following January and shall remain in effect | 1555 |
|
during the calendar biennium that begins on that date. | 1556 |
| (b) When determining whether a contract is comparable for | 1585 |
|
purposes of division (C)(2)(a)(i) or (ii) of this section, the | 1586 |
|
commissioner shall consider the contract price for oil or gas, the | 1587 |
|
time of the contract's execution, the basin where oil and gas is | 1588 |
|
being sold, any markets served and costs to access the markets, | 1589 |
|
the quality and volume of the oil or gas, and any other factor. | 1590 |
| (1) Of the moneys in the fund from the tax levied in division | 1603 |
(A)(B)(1) of this section, four and seventy-six-hundredths per | 1604 |
|
cent shall be credited to the geological mapping fund created in | 1605 |
|
section 1505.09 of the Revised Code, eighty and | 1606 |
|
ninety-five-hundredths per cent shall be credited to the coal | 1607 |
|
mining administration and reclamation reserve fund created in | 1608 |
|
section 1513.181 of the Revised Code, and fourteen and | 1609 |
|
twenty-nine-hundredths per cent shall be credited to the | 1610 |
|
unreclaimed lands fund created in section 1513.30 of the Revised | 1611 |
|
Code. | 1612 |
(C)(E) When, at the close of any fiscal year, the chief finds | 1661 |
|
that the balance of the reclamation forfeiture fund, plus | 1662 |
|
estimated transfers to it from the coal mining administration and | 1663 |
|
reclamation reserve fund under section 1513.181 of the Revised | 1664 |
|
Code, plus the estimated revenues from the tax levied by division | 1665 |
(A)(B)(8) of this section for the remainder of the calendar year | 1666 |
|
that includes the close of the fiscal year, are sufficient to | 1667 |
|
complete the reclamation of all lands for which the performance | 1668 |
|
security has been provided under division (C)(2) of section | 1669 |
|
1513.08 of the Revised Code, the purposes for which the tax under | 1670 |
division (A)(B)(8) of this section is levied shall be deemed | 1671 |
|
accomplished at the end of that calendar year. The chief, within | 1672 |
|
thirty days after the close of the fiscal year, shall certify | 1673 |
|
those findings to the tax commissioner, and the tax levied under | 1674 |
division (A)(B)(8) of this section shall cease to be imposed for | 1675 |
|
the subsequent calendar year after the last day of that calendar | 1676 |
|
year on coal produced under a coal mining and reclamation permit | 1677 |
|
issued under Chapter 1513. of the Revised Code if the permittee | 1678 |
has made tax payments under division (A)(B)(8) of this section | 1679 |
|
during each of the preceding five full calendar years. Not later | 1680 |
|
than thirty days after the close of a fiscal year, the chief shall | 1681 |
|
certify to the tax commissioner the identity of any permittees who | 1682 |
|
accordingly no longer are required to pay the tax levied under | 1683 |
division (A)(B)(8) of this section for the subsequent calendar | 1684 |
|
year. | 1685 |
| The severance of natural resources from land or water in this | 1689 |
|
state owned legally or beneficially by the severer, which natural | 1690 |
|
resources will be used on the land from which they are taken by | 1691 |
|
the severer as part of the improvement of or use in the severer's | 1692 |
|
homestead and which have a yearly cumulative market value of not | 1693 |
|
greater than one thousand dollars. When severed natural resources | 1694 |
|
so used exceed a cumulative market value of one thousand dollars | 1695 |
|
during any year, the further severance of natural resources shall | 1696 |
|
be subject to the tax imposed by section 5749.02 of the Revised | 1697 |
|
Code. | 1698 |
| Sec. 5749.031. The first ten million dollars of wellhead | 1699 |
|
gross receipts after deduction for payments to holders of a | 1700 |
|
royalty interest from the first sale of oil and gas and received | 1701 |
|
by a severer or other person for oil and gas severed from a | 1702 |
|
horizontal well the first day of production of which is on or | 1703 |
|
after October 1, 2013, is exempt from the tax imposed under | 1704 |
|
division (C) of section 5749.02 of the Revised Code. As used in | 1705 |
|
this section, "holder of a royalty interest" means a person | 1706 |
|
authorized by written agreement to share in the value or proceeds | 1707 |
|
of a horizontal well's production, except a person that has a | 1708 |
|
working interest in that well. | 1709 |
| Sec. 5749.06. (A)(1) Each severer liable for the tax imposed | 1710 |
by section 5749.02 of the Revised Code and each severer or owner | 1711 |
liable for the amounts due under section 1509.50 of the Revised | 1712 |
Codeor required to report the information described in division | 1713 |
|
(J)(1) of this section shall make and file returns with the tax | 1714 |
|
commissioner in the prescribed form and as of the prescribed | 1715 |
|
times, computing and reflecting therein the tax as required by | 1716 |
this chapter and amounts due under section 1509.50 of the Revised | 1717 |
Code. | 1718 |
| (2) The returns shall be filed for every quarterly period, | 1719 |
|
which periods shall end on the thirty-first day of March, the | 1720 |
|
thirtieth day of June, the thirtieth day of September, and the | 1721 |
|
thirty-first day of December of each year, as required by this | 1722 |
|
section, unless a different return period is prescribed for a | 1723 |
|
taxpayer by the commissioner. | 1724 |
| (B)(1) A separate return shall be filed for each calendar | 1725 |
|
quarterly period, or other period, or any part thereof, during | 1726 |
|
which the severer holds a license as provided by section 5749.04 | 1727 |
of the Revised Code, or is required to hold the license, or during | 1728 |
which an owner is required to file a return. The return shall be | 1729 |
filed within forty-fivesixty days after the last day of each such | 1730 |
|
calendar month, or other period, or any part thereof, for which | 1731 |
|
the return is required. The tax due is payable along with the | 1732 |
|
return. All such returns shall contain such information as the | 1733 |
|
commissioner may require to fairly administer the tax. | 1734 |
| (C) If the commissioner believes that quarterly payments of | 1738 |
|
tax would result in a delay that might jeopardize the collection | 1739 |
|
of such tax payments, the commissioner may order that such | 1740 |
|
payments be made weekly, or more frequently if necessary, such | 1741 |
|
payments to be made not later than seven days following the close | 1742 |
|
of the period for which the jeopardy payment is required. Such an | 1743 |
|
order shall be delivered to the taxpayer personally or by | 1744 |
|
certified mail and shall remain in effect until the commissioner | 1745 |
|
notifies the taxpayer to the contrary. | 1746 |
(G)(1) A severer or owner, as applicable, shall remit | 1765 |
|
payments electronically and, if required by the commissioner, file | 1766 |
|
each return electronically. The commissioner may require that the | 1767 |
severer or owner use the Ohio business gateway, as defined in | 1768 |
|
section 718.051 of the Revised Code, or another electronic means | 1769 |
|
to file returns and remit payments electronically. | 1770 |
| (3) After the director of budget and management makes any | 1801 |
|
transfer required by division (H)(2) of this section, but not | 1802 |
later than the fifteenthfirst day of the second month following | 1803 |
|
the end of each calendar quarter, the commissioner shall certify | 1804 |
|
to the director the total amount remaining in the severance tax | 1805 |
|
receipts fund organized according to the amount attributable to | 1806 |
|
each natural resource and according to the amount attributable to | 1807 |
aeach tax imposed by this chapter and the amounts due under | 1808 |
section 1509.50 of the Revised Code. | 1809 |
| (I) Penalties imposed under this section are in addition to | 1810 |
|
any other penalty imposed under this chapter and shall be | 1811 |
|
considered as revenue arising from the tax levied under this | 1812 |
|
chapter or the amount due under former section 1509.50 of the | 1813 |
|
Revised Code, as applicable. The commissioner may collect any | 1814 |
|
penalty or interest imposed under this section in the same manner | 1815 |
|
as provided for the making of an assessment in section 5749.07 of | 1816 |
|
the Revised Code. The commissioner may abate all or a portion of | 1817 |
|
such interest or penalties and may adopt rules governing such | 1818 |
|
abatements. | 1819 |
| (J)(1) Each severer subject to the tax levied under division | 1820 |
|
(C) of section 5749.02 of the Revised Code shall report on its | 1821 |
|
return filed under this section the severer's or other person's | 1822 |
|
wellhead gross receipts, even if those receipts are exempt from | 1823 |
|
that tax under section 5749.031 of the Revised Code, and the | 1824 |
|
proportionate amount of such wellhead gross receipts that are | 1825 |
|
attributable to horizontal wells located in each county, arranged | 1826 |
|
according to those counties. | 1827 |
| Sec. 5749.07. (A) If any severer required by this chapter to | 1842 |
make and file returns and pay the tax leviedimposed by section | 1843 |
5749.02 of the Revised Code, or any severer or owner liable for | 1844 |
the amounts due under section 1509.50 of the Revised Code, fails | 1845 |
|
to make such return or pay such tax or amounts, the tax | 1846 |
commissioner may make an assessment against the severer or owner | 1847 |
|
based upon any information in the commissioner's possession. | 1848 |
| (B) Unless the party assessed files with the commissioner | 1861 |
|
within sixty days after service of the notice of assessment, | 1862 |
|
either personally or by certified mail, a written petition for | 1863 |
|
reassessment signed by the party assessed or that party's | 1864 |
|
authorized agent having knowledge of the facts, the assessment | 1865 |
|
becomes final and the amount of the assessment is due and payable | 1866 |
|
from the party assessed to the treasurer of state. The petition | 1867 |
|
shall indicate the objections of the party assessed, but | 1868 |
|
additional objections may be raised in writing if received by the | 1869 |
|
commissioner prior to the date shown on the final determination. | 1870 |
|
If the petition has been properly filed, the commissioner shall | 1871 |
|
proceed under section 5703.60 of the Revised Code. | 1872 |
| (C) After an assessment becomes final, if any portion of the | 1873 |
|
assessment remains unpaid, including accrued interest, a certified | 1874 |
|
copy of the commissioner's entry making the assessment final may | 1875 |
|
be filed in the office of the clerk of the court of common pleas | 1876 |
|
in the county in which the party assessed resides or in which the | 1877 |
|
party's business is conducted. If the party assessed maintains no | 1878 |
|
place of business in this state and is not a resident of this | 1879 |
|
state, the certified copy of the entry may be filed in the office | 1880 |
|
of the clerk of the court of common pleas of Franklin county. | 1881 |
| Immediately upon the filing of such entry, the clerk shall | 1882 |
|
enter a judgment for the state against the party assessed in the | 1883 |
|
amount shown on the entry. The judgment may be filed by the clerk | 1884 |
|
in a loose-leaf book entitled "special judgments for state | 1885 |
|
severance tax," and shall have the same effect as other judgments. | 1886 |
|
Execution shall issue upon the judgment upon the request of the | 1887 |
|
commissioner, and all laws applicable to sales on execution shall | 1888 |
|
apply to sales made under the judgment. | 1889 |
| If the assessment is not paid in its entirety within sixty | 1890 |
|
days after the day the assessment is issued, the portion of the | 1891 |
assessment consisting of tax due or amounts due under section | 1892 |
1509.50 of the Revised Code shall bear interest at the rate per | 1893 |
|
annum prescribed by section 5703.47 of the Revised Code from the | 1894 |
|
day the commissioner issues the assessment until it is paid or | 1895 |
|
until it is certified to the attorney general for collection under | 1896 |
|
section 131.02 of the Revised Code, whichever comes first. If the | 1897 |
|
unpaid portion of the assessment is certified to the attorney | 1898 |
|
general for collection, the entire unpaid portion of the | 1899 |
|
assessment shall bear interest at the rate per annum prescribed by | 1900 |
|
section 5703.47 of the Revised Code from the date of certification | 1901 |
|
until the date it is paid in its entirety. Interest shall be paid | 1902 |
|
in the same manner as the tax and may be collected by the issuance | 1903 |
|
of an assessment under this section. | 1904 |
Sec. 5749.08. The tax commissioner shall refund to taxpayers | 1916 |
|
the amount of taxes levied by section 5749.02 of the Revised Code | 1917 |
|
and amounts due under former section 1509.50 of the Revised Code | 1918 |
|
that were paid illegally or erroneously or paid on an illegal or | 1919 |
|
erroneous assessment. Applications for refund shall be filed with | 1920 |
|
the commissioner, on the form prescribed by the commissioner, | 1921 |
|
within four years from the date of the illegal or erroneous | 1922 |
|
payment. On the filing of the application, the commissioner shall | 1923 |
|
determine the amount of refund to which the applicant is entitled, | 1924 |
|
plus interest computed in accordance with section 5703.47 of the | 1925 |
|
Revised Code from the date of the payment of an erroneous or | 1926 |
|
illegal assessment until the date the refund is paid. If the | 1927 |
|
amount is not less than that claimed, the commissioner shall | 1928 |
|
certify the amount to the director of budget and management and | 1929 |
|
treasurer of state for payment from the tax refund fund created by | 1930 |
|
section 5703.052 of the Revised Code. If the amount is less than | 1931 |
|
that claimed, the commissioner shall proceed in accordance with | 1932 |
|
section 5703.70 of the Revised Code. | 1933 |
Sec. 5749.10. If the tax commissioner finds that a taxpayer, | 1934 |
| person liable for tax under this chapter or for any amount due | 1935 |
|
under former section 1509.50 of the Revised Code is about to | 1936 |
depart from the state, or remove the taxpayer'sperson's property | 1937 |
therefrom, or conceal the taxpayer's personthemselves or their | 1938 |
|
property, or do any other act tending to prejudice or to render | 1939 |
|
wholly or partly ineffectual proceedings to collect such tax or | 1940 |
|
other amount due unless such proceedings are brought without | 1941 |
|
delay, or if the commissioner believes that the collection of the | 1942 |
tax or amount due from any taxpayerperson will be jeopardized by | 1943 |
delay, the commissioner shall give notice of such findings to such | 1944 |
taxpayerthe person together with the demand for an immediate | 1945 |
|
return and immediate payment of such tax or other amount due, with | 1946 |
|
penalty as provided in section 5749.15 of the Revised Code, | 1947 |
|
whereupon such tax or other amount due shall become immediately | 1948 |
|
due and payable. In such cases the commissioner may immediately | 1949 |
|
file an entry with the clerk of the court of common pleas in the | 1950 |
|
same manner and with the same effect as provided in section | 1951 |
5749.07 of the Revised Code, provided that if such taxpayerthe | 1952 |
|
person, within five days from notice of the assessment, furnishes | 1953 |
evidence satisfactory to the commissioner, under the regulations | 1954 |
prescribedrules adopted by the commissioner, that the taxpayer is | 1955 |
|
not in default in making returns or paying any tax prescribed by | 1956 |
|
this chapter or amount due under former section 1509.50 of the | 1957 |
Revised Code, or that the taxpayerperson will duly return and | 1958 |
|
pay, or post bond satisfactory to the commissioner conditioned | 1959 |
|
upon payment of the tax or other amount finally determined to be | 1960 |
|
due, then such tax or other amount due shall not be payable prior | 1961 |
|
to the time and manner otherwise fixed for payment under section | 1962 |
|
5749.07 of the Revised Code, and the person assessed shall be | 1963 |
|
restored the rights granted under such section. Upon satisfaction | 1964 |
|
of the assessment the commissioner shall order the bond cancelled, | 1965 |
|
securities released, and judgment vacated. | 1966 |
| Sec. 5749.11. (A) There is hereby allowed a nonrefundable | 1969 |
credit against the taxes imposed under division (A)(B)(8) of | 1970 |
|
section 5749.02 of the Revised Code for any severer to which a | 1971 |
|
reclamation tax credit certificate is issued under section | 1972 |
|
1513.171 of the Revised Code. The credit shall be claimed in the | 1973 |
|
amount shown on the certificate. The credit shall be claimed by | 1974 |
|
deducting the amount of the credit from the amount of the first | 1975 |
|
tax payment due under section 5749.06 of the Revised Code after | 1976 |
|
the certificate is issued. | 1977 |
| Sec. 5749.12. Any nonresident of this state who accepts the | 1991 |
|
privilege extended by the laws of this state to nonresidents | 1992 |
|
severing natural resources in this state, and any resident of this | 1993 |
|
state who subsequently becomes a nonresident or conceals the | 1994 |
|
resident's whereabouts, makes the secretary of state of Ohio the | 1995 |
|
person's agent for the service of process or notice in any | 1996 |
|
assessment, action, or proceedings instituted in this state | 1997 |
against such person under this chapter or for purposes of amounts | 1998 |
due under section 1509.50 of the Revised Code. | 1999 |
| Sec. 5749.13. The tax commissioner may prescribe | 2002 |
|
requirements as to the keeping of records and other pertinent | 2003 |
|
documents and the filing of copies of federal income tax returns | 2004 |
|
and determinations. The commissioner may require any person, by | 2005 |
|
rule or by notice served on that person, to keep such records as | 2006 |
|
the commissioner considers necessary to show whether that person | 2007 |
|
is liable, and the extent of liability, for the tax imposed under | 2008 |
|
this chapter and the amount due under former section 1509.50 of | 2009 |
|
the Revised Code. Such records and other documents shall be open | 2010 |
|
during business hours to the inspection of the commissioner, and | 2011 |
|
shall be preserved for a period of four years after the date the | 2012 |
|
return was required to be filed or actually was filed, whichever | 2013 |
|
is later, unless the commissioner, in writing, consents to their | 2014 |
|
destruction within that period, or by order requires that they be | 2015 |
|
kept longer. | 2016 |
| (B) There is allowed a nonrefundable credit against the tax | 2039 |
|
imposed under division (C) of section 5749.02 of the Revised Code | 2040 |
|
to a severer that paid the tax imposed by section 5751.02 of the | 2041 |
|
Revised Code in a calendar quarter beginning on or after October | 2042 |
|
1, 2014. The amount of the credit shall equal the amount of tax | 2043 |
|
paid by the severer with respect to taxable gross receipts | 2044 |
|
realized from the first sale of oil or gas severed from a | 2045 |
|
horizontal well. The severer shall claim the credit for the | 2046 |
|
calendar quarter in which the tax was paid. If the credit exceeds | 2047 |
|
the tax otherwise due under section 5749.02 of the Revised Code | 2048 |
|
for the calendar quarter, the excess shall not be carried forward | 2049 |
|
to subsequent calendar quarters. | 2050 |
| (A) "Person" means, but is not limited to, individuals, | 2057 |
|
combinations of individuals of any form, receivers, assignees, | 2058 |
|
trustees in bankruptcy, firms, companies, joint-stock companies, | 2059 |
|
business trusts, estates, partnerships, limited liability | 2060 |
|
partnerships, limited liability companies, associations, joint | 2061 |
|
ventures, clubs, societies, for-profit corporations, S | 2062 |
|
corporations, qualified subchapter S subsidiaries, qualified | 2063 |
|
subchapter S trusts, trusts, entities that are disregarded for | 2064 |
|
federal income tax purposes, and any other entities. | 2065 |
| (c) Except for any differences resulting from the use of an | 2096 |
|
accrual basis method of accounting for purposes of determining | 2097 |
|
gross receipts under this chapter and the use of the cash basis | 2098 |
|
method of accounting for purposes of determining gross receipts | 2099 |
|
under section 5727.24 of the Revised Code, the gross receipts | 2100 |
|
directly attributed to the activity of a natural gas company shall | 2101 |
|
be determined in a manner consistent with division (D) of section | 2102 |
|
5727.03 of the Revised Code. | 2103 |
| (c) In the case of a partnership, trust, or other | 2127 |
|
unincorporated business organization other than a limited | 2128 |
|
liability company, one person owns the organization if, under the | 2129 |
|
articles of organization or other instrument governing the affairs | 2130 |
|
of the organization, that person has a beneficial interest in the | 2131 |
|
organization's profits, surpluses, losses, or distributions of | 2132 |
|
fifty per cent or more of the combined beneficial interests of all | 2133 |
|
persons having such an interest in the organization. | 2134 |
| (5) A domestic insurance company or foreign insurance | 2135 |
|
company, as defined in section 5725.01 of the Revised Code, that | 2136 |
|
paid the insurance company premiums tax imposed by section 5725.18 | 2137 |
|
or Chapter 5729. of the Revised Code, or an unauthorized insurance | 2138 |
|
company whose gross premiums are subject to tax under section | 2139 |
|
3905.36 of the Revised Code based on one or more measurement | 2140 |
|
periods that include the entire tax period under this chapter; | 2141 |
| (7) Except as otherwise provided in this division, a | 2149 |
|
pre-income tax trust as defined in division (FF)(4) of section | 2150 |
|
5747.01 of the Revised Code and any pass-through entity of which | 2151 |
|
such pre-income tax trust owns or controls, directly, indirectly, | 2152 |
|
or constructively through related interests, more than five per | 2153 |
|
cent of the ownership or equity interests. If the pre-income tax | 2154 |
|
trust has made a qualifying pre-income tax trust election under | 2155 |
|
division (FF)(3) of section 5747.01 of the Revised Code, then the | 2156 |
|
trust and the pass-through entities of which it owns or controls, | 2157 |
|
directly, indirectly, or constructively through related interests, | 2158 |
|
more than five per cent of the ownership or equity interests, | 2159 |
|
shall not be excluded persons for purposes of the tax imposed | 2160 |
|
under section 5751.02 of the Revised Code. | 2161 |
| (F) Except as otherwise provided in divisions (F)(2), (3), | 2164 |
|
and (4) of this section, "gross receipts" means the total amount | 2165 |
|
realized by a person, without deduction for the cost of goods sold | 2166 |
|
or other expenses incurred, that contributes to the production of | 2167 |
|
gross income of the person, including the fair market value of any | 2168 |
|
property and any services received, and any debt transferred or | 2169 |
|
forgiven as consideration. | 2170 |
| (c) Receipts from the sale, exchange, or other disposition of | 2185 |
|
an asset described in section 1221 or 1231 of the Internal Revenue | 2186 |
|
Code, without regard to the length of time the person held the | 2187 |
|
asset. Notwithstanding section 1221 of the Internal Revenue Code, | 2188 |
|
receipts from hedging transactions also are excluded to the extent | 2189 |
|
the transactions are entered into primarily to protect a financial | 2190 |
|
position, such as managing the risk of exposure to (i) foreign | 2191 |
|
currency fluctuations that affect assets, liabilities, profits, | 2192 |
|
losses, equity, or investments in foreign operations; (ii) | 2193 |
|
interest rate fluctuations; or (iii) commodity price fluctuations. | 2194 |
|
As used in division (F)(2)(c) of this section, "hedging | 2195 |
|
transaction" has the same meaning as used in section 1221 of the | 2196 |
|
Internal Revenue Code and also includes transactions accorded | 2197 |
|
hedge accounting treatment under statement of financial accounting | 2198 |
|
standards number 133 of the financial accounting standards board. | 2199 |
|
For the purposes of division (F)(2)(c) of this section, the actual | 2200 |
|
transfer of title of real or tangible personal property to another | 2201 |
|
entity is not a hedging transaction. | 2202 |
| (g) Compensation, whether current or deferred, and whether in | 2213 |
|
cash or in kind, received or to be received by an employee, former | 2214 |
|
employee, or the employee's legal successor for services rendered | 2215 |
|
to or for an employer, including reimbursements received by or for | 2216 |
|
an individual for medical or education expenses, health insurance | 2217 |
|
premiums, or employee expenses, or on account of a dependent care | 2218 |
|
spending account, legal services plan, any cafeteria plan | 2219 |
|
described in section 125 of the Internal Revenue Code, or any | 2220 |
|
similar employee reimbursement; | 2221 |
| (j) Gifts or charitable contributions received; membership | 2228 |
|
dues received by trade, professional, homeowners', or condominium | 2229 |
|
associations; and payments received for educational courses, | 2230 |
|
meetings, meals, or similar payments to a trade, professional, or | 2231 |
|
other similar association; and fundraising receipts received by | 2232 |
|
any person when any excess receipts are donated or used | 2233 |
|
exclusively for charitable purposes; | 2234 |
| (m) Tax refunds, other tax benefit recoveries, and | 2241 |
|
reimbursements for the tax imposed under this chapter made by | 2242 |
|
entities that are part of the same combined taxpayer or | 2243 |
|
consolidated elected taxpayer group, and reimbursements made by | 2244 |
|
entities that are not members of a combined taxpayer or | 2245 |
|
consolidated elected taxpayer group that are required to be made | 2246 |
|
for economic parity among multiple owners of an entity whose tax | 2247 |
|
obligation under this chapter is required to be reported and paid | 2248 |
|
entirely by one owner, pursuant to the requirements of sections | 2249 |
|
5751.011 and 5751.012 of the Revised Code; | 2250 |
| (q) In the case of receipts from the sale of cigarettes or | 2258 |
|
tobacco products by a wholesale dealer, retail dealer, | 2259 |
|
distributor, manufacturer, or seller, all as defined in section | 2260 |
|
5743.01 of the Revised Code, an amount equal to the federal and | 2261 |
|
state excise taxes paid by any person on or for such cigarettes or | 2262 |
|
tobacco products under subtitle E of the Internal Revenue Code or | 2263 |
|
Chapter 5743. of the Revised Code; | 2264 |
| (t) Receipts realized by a new motor vehicle dealer or used | 2275 |
|
motor vehicle dealer, as defined in section 4517.01 of the Revised | 2276 |
|
Code, from the sale or other transfer of a motor vehicle, as | 2277 |
|
defined in that section, to another motor vehicle dealer for the | 2278 |
|
purpose of resale by the transferee motor vehicle dealer, but only | 2279 |
|
if the sale or other transfer was based upon the transferee's need | 2280 |
|
to meet a specific customer's preference for a motor vehicle; | 2281 |
| (u) Receipts from a financial institution described in | 2282 |
|
division (E)(3) of this section for services provided to the | 2283 |
|
financial institution in connection with the issuance, processing, | 2284 |
|
servicing, and management of loans or credit accounts, if such | 2285 |
|
financial institution and the recipient of such receipts have at | 2286 |
|
least fifty per cent of their ownership interests owned or | 2287 |
|
controlled, directly or constructively through related interests, | 2288 |
|
by common owners; | 2289 |
| (w) Funds received or used by a mortgage broker that is not a | 2294 |
|
dealer in intangibles, other than fees or other consideration, | 2295 |
|
pursuant to a table-funding mortgage loan or warehouse-lending | 2296 |
|
mortgage loan. Terms used in division (F)(2)(w) of this section | 2297 |
|
have the same meanings as in section 1322.01 of the Revised Code, | 2298 |
|
except "mortgage broker" means a person assisting a buyer in | 2299 |
|
obtaining a mortgage loan for a fee or other consideration paid by | 2300 |
|
the buyer or a lender, or a person engaged in table-funding or | 2301 |
|
warehouse-lending mortgage loans that are first lien mortgage | 2302 |
|
loans. | 2303 |
| (I) "Qualifying distribution center receipts" means receipts | 2316 |
|
of a supplier from qualified property that is delivered to a | 2317 |
|
qualified distribution center, multiplied by a quantity that | 2318 |
|
equals one minus the Ohio delivery percentage. If the qualified | 2319 |
|
distribution center is a refining facility, "supplier" includes | 2320 |
|
all dealers, brokers, processors, sellers, vendors, cosigners, and | 2321 |
|
distributors of qualified property. | 2322 |
| (II) "Qualified property" means tangible personal property | 2323 |
|
delivered to a qualified distribution center that is shipped to | 2324 |
|
that qualified distribution center solely for further shipping by | 2325 |
|
the qualified distribution center to another location in this | 2326 |
|
state or elsewhere or, in the case of gold, silver, platinum, or | 2327 |
|
palladium delivered to a refining facility solely for refining to | 2328 |
|
a grade and fineness acceptable for delivery to a registered | 2329 |
|
commodities exchange. "Further shipping" includes storing and | 2330 |
|
repackaging property into smaller or larger bundles, so long as | 2331 |
|
the property is not subject to further manufacturing or | 2332 |
|
processing. "Refining" is limited to extracting impurities from | 2333 |
|
gold, silver, platinum, or palladium through smelting or some | 2334 |
|
other process at a refining facility. | 2335 |
| (III) "Qualified distribution center" means a warehouse, a | 2336 |
|
facility similar to a warehouse, or a refining facility in this | 2337 |
|
state that, for the qualifying year, is operated by a person that | 2338 |
|
is not part of a combined taxpayer group and that has a qualifying | 2339 |
|
certificate. All warehouses or facilities similar to warehouses | 2340 |
|
that are operated by persons in the same taxpayer group and that | 2341 |
|
are located within one mile of each other shall be treated as one | 2342 |
|
qualified distribution center. All refining facilities that are | 2343 |
|
operated by persons in the same taxpayer group and that are | 2344 |
|
located in the same or adjacent counties may be treated as one | 2345 |
|
qualified distribution center. | 2346 |
| The applicant must substantiate to the commissioner's | 2359 |
|
satisfaction that, for the qualifying period, all persons | 2360 |
|
operating the distribution center have more than fifty per cent of | 2361 |
|
the cost of the qualified property shipped to a location such that | 2362 |
|
it would be sitused outside this state under the provisions of | 2363 |
|
division (E) of section 5751.033 of the Revised Code. The | 2364 |
|
applicant must also substantiate that the distribution center | 2365 |
|
cumulatively had costs from its suppliers equal to or exceeding | 2366 |
|
five hundred million dollars during the qualifying period. (For | 2367 |
|
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier" | 2368 |
|
excludes any person that is part of the consolidated elected | 2369 |
|
taxpayer group, if applicable, of the operator of the qualified | 2370 |
|
distribution center.) The commissioner may require the applicant | 2371 |
|
to have an independent certified public accountant certify that | 2372 |
|
the calculation of the minimum thresholds required for a qualified | 2373 |
|
distribution center by the operator of a distribution center has | 2374 |
|
been made in accordance with generally accepted accounting | 2375 |
|
principles. The commissioner shall issue or deny the issuance of a | 2376 |
|
certificate within sixty days after the receipt of the | 2377 |
|
application. A denial is subject to appeal under section 5717.02 | 2378 |
|
of the Revised Code. If the operator files a timely appeal under | 2379 |
|
section 5717.02 of the Revised Code, the operator shall be granted | 2380 |
|
a qualifying certificate effective for the remainder of the | 2381 |
|
qualifying year or until the appeal is finalized, whichever is | 2382 |
|
earlier. If the operator does not prevail in the appeal, the | 2383 |
|
operator shall pay the ineligible operator's supplier tax | 2384 |
|
liability. | 2385 |
| (X) "Ineligible operator's supplier tax liability" means an | 2402 |
|
amount equal to the tax liability of all suppliers of a | 2403 |
|
distribution center had the distribution center not been issued a | 2404 |
|
qualifying certificate for the qualifying year. Ineligible | 2405 |
|
operator's supplier tax liability shall not include interest or | 2406 |
|
penalties. The tax commissioner shall determine an ineligible | 2407 |
|
operator's supplier tax liability based on information that the | 2408 |
|
commissioner may request from the operator of the distribution | 2409 |
|
center. An operator shall provide a list of all suppliers of the | 2410 |
|
distribution center and the corresponding costs of qualified | 2411 |
|
property for the qualifying year at issue within sixty days of a | 2412 |
|
request by the commissioner under this division. | 2413 |
| (ii)(I) If the distribution center is new and was not open | 2414 |
|
for the entire qualifying period, the operator of the distribution | 2415 |
|
center may request that the commissioner grant a qualifying | 2416 |
|
certificate. If the certificate is granted and it is later | 2417 |
|
determined that more than fifty per cent of the qualified property | 2418 |
|
during that year was not shipped to a location such that it would | 2419 |
|
be sitused outside of this state under the provisions of division | 2420 |
|
(E) of section 5751.033 of the Revised Code or if it is later | 2421 |
|
determined that the person that operates the distribution center | 2422 |
|
had average monthly costs from its suppliers of less than forty | 2423 |
|
million dollars during that year, then the operator of the | 2424 |
|
distribution center shall pay the ineligible operator's supplier | 2425 |
|
tax liability. (For purposes of division (F)(2)(z)(ii) of this | 2426 |
|
section, "supplier" excludes any person that is part of the | 2427 |
|
consolidated elected taxpayer group, if applicable, of the | 2428 |
|
operator of the qualified distribution center.) | 2429 |
| (II) The commissioner may grant a qualifying certificate to a | 2430 |
|
distribution center that does not qualify as a qualified | 2431 |
|
distribution center for an entire qualifying period if the | 2432 |
|
operator of the distribution center demonstrates that the business | 2433 |
|
operations of the distribution center have changed or will change | 2434 |
|
such that the distribution center will qualify as a qualified | 2435 |
|
distribution center within thirty-six months after the date the | 2436 |
|
operator first applies for a certificate. If, at the end of that | 2437 |
|
thirty-six-month period, the business operations of the | 2438 |
|
distribution center have not changed such that the distribution | 2439 |
|
center qualifies as a qualified distribution center, the operator | 2440 |
|
of the distribution center shall pay the ineligible operator's | 2441 |
|
supplier tax liability for each year that the distribution center | 2442 |
|
received a certificate but did not qualify as a qualified | 2443 |
|
distribution center. For each year the distribution center | 2444 |
|
receives a certificate under division (F)(2)(z)(ii)(II) of this | 2445 |
|
section, the distribution center shall pay all applicable fees | 2446 |
|
required under division (F)(2)(z) of this section and shall submit | 2447 |
|
an updated business plan showing the progress the distribution | 2448 |
|
center made toward qualifying as a qualified distribution center | 2449 |
|
during the preceding year. | 2450 |
| (iii) When filing an application for a qualifying certificate | 2456 |
|
under division (F)(2)(z)(i)(VI) of this section, the operator of a | 2457 |
|
qualified distribution center also shall provide documentation, as | 2458 |
|
the commissioner requires, for the commissioner to ascertain the | 2459 |
|
Ohio delivery percentage. The commissioner, upon issuing the | 2460 |
|
qualifying certificate, also shall certify the Ohio delivery | 2461 |
|
percentage. The operator of the qualified distribution center may | 2462 |
|
appeal the commissioner's certification of the Ohio delivery | 2463 |
|
percentage in the same manner as an appeal is taken from the | 2464 |
|
denial of a qualifying certificate under division (F)(2)(z)(i)(VI) | 2465 |
|
of this section. | 2466 |
| (iv)(I) In the case where the distribution center is new and | 2467 |
|
not open for the entire qualifying period, the operator shall make | 2468 |
|
a good faith estimate of an Ohio delivery percentage for use by | 2469 |
|
suppliers in their reports of taxable gross receipts for the | 2470 |
|
remainder of the qualifying period. The operator of the facility | 2471 |
|
shall disclose to the suppliers that such Ohio delivery percentage | 2472 |
|
is an estimate and is subject to recalculation. By the due date of | 2473 |
|
the next application for a qualifying certificate, the operator | 2474 |
|
shall determine the actual Ohio delivery percentage for the | 2475 |
|
estimated qualifying period and proceed as provided in division | 2476 |
|
(F)(2)(z)(iii) of this section with respect to the calculation and | 2477 |
|
recalculation of the Ohio delivery percentage. The supplier is | 2478 |
|
required to file, within sixty days after receiving notice from | 2479 |
|
the operator of the qualified distribution center, amended reports | 2480 |
|
for the impacted calendar quarter or quarters or calendar year, | 2481 |
|
whichever the case may be. Any additional tax liability or tax | 2482 |
|
overpayment shall be subject to interest but shall not be subject | 2483 |
|
to the imposition of any penalty so long as the amended returns | 2484 |
|
are timely filed. | 2485 |
| (II) The operator of a distribution center that receives a | 2486 |
|
qualifying certificate under division (F)(2)(z)(ii)(II) of this | 2487 |
|
section shall make a good faith estimate of the Ohio delivery | 2488 |
|
percentage that the operator estimates will apply to the | 2489 |
|
distribution center at the end of the thirty-six-month period | 2490 |
|
after the operator first applied for a qualifying certificate | 2491 |
|
under that division. The result of the estimate shall be | 2492 |
|
multiplied by a factor of one and seventy-five one-hundredths. The | 2493 |
|
product of that calculation shall be the Ohio delivery percentage | 2494 |
|
used by suppliers in their reports of taxable gross receipts for | 2495 |
|
each qualifying year that the distribution center receives a | 2496 |
|
qualifying certificate under division (F)(2)(z)(ii)(II) of this | 2497 |
|
section, except that, if the product is less than five per cent, | 2498 |
|
the Ohio delivery percentage used shall be five per cent and that, | 2499 |
|
if the product exceeds forty-nine per cent, the Ohio delivery | 2500 |
|
percentage used shall be forty-nine per cent. | 2501 |
| (v) Qualifying certificates and Ohio delivery percentages | 2502 |
|
issued by the commissioner shall be open to public inspection and | 2503 |
|
shall be timely published by the commissioner. A supplier relying | 2504 |
|
in good faith on a certificate issued under this division shall | 2505 |
|
not be subject to tax on the qualifying distribution center | 2506 |
|
receipts under division (F)(2)(z) of this section. An operator | 2507 |
|
receiving a qualifying certificate is liable for the ineligible | 2508 |
|
operator's supplier tax liability for each year the operator | 2509 |
|
received a certificate but did not qualify as a qualified | 2510 |
|
distribution center. | 2511 |
| (vi) The annual fee for a qualifying certificate shall be one | 2512 |
|
hundred thousand dollars for each qualified distribution center. | 2513 |
|
If a qualifying certificate is not issued, the annual fee is | 2514 |
|
subject to refund after the exhaustion of all appeals provided for | 2515 |
|
in division (F)(2)(z)(i)(VI) of this section. The first one | 2516 |
|
hundred thousand dollars of the annual application fees collected | 2517 |
|
each calendar year shall be credited to the revenue enhancement | 2518 |
|
fund. The remainder of the annual application fees collected shall | 2519 |
|
be distributed in the same manner required under section 5751.20 | 2520 |
|
of the Revised Code. | 2521 |
| (dd) Bad debts from receipts on the basis of which the tax | 2532 |
|
imposed by this chapter was paid in a prior quarterly tax payment | 2533 |
|
period. For the purpose of this division, "bad debts" means any | 2534 |
|
debts that have become worthless or uncollectible between the | 2535 |
|
preceding and current quarterly tax payment periods, have been | 2536 |
|
uncollected for at least six months, and that may be claimed as a | 2537 |
|
deduction under section 166 of the Internal Revenue Code and the | 2538 |
|
regulations adopted under that section, or that could be claimed | 2539 |
|
as such if the taxpayer kept its accounts on the accrual basis. | 2540 |
|
"Bad debts" does not include repossessed property, uncollectible | 2541 |
|
amounts on property that remains in the possession of the taxpayer | 2542 |
|
until the full purchase price is paid, or expenses in attempting | 2543 |
|
to collect any account receivable or for any portion of the debt | 2544 |
|
recovered; | 2545 |
| (I) "Qualified uranium receipts" means receipts from the | 2554 |
|
sale, exchange, lease, loan, production, processing, or other | 2555 |
|
disposition of uranium within a uranium enrichment zone certified | 2556 |
|
by the tax commissioner under division (F)(2)(gg)(ii) of this | 2557 |
|
section. "Qualified uranium receipts" does not include any | 2558 |
|
receipts with a situs in this state outside a uranium enrichment | 2559 |
|
zone certified by the tax commissioner under division | 2560 |
|
(F)(2)(gg)(ii) of this section. | 2561 |
| (ii) Any person that owns, leases, or operates real or | 2567 |
|
tangible personal property constituting or located within a | 2568 |
|
uranium enrichment zone may apply to the tax commissioner to have | 2569 |
|
the uranium enrichment zone certified for the purpose of excluding | 2570 |
|
qualified uranium receipts under division (F)(2)(gg) of this | 2571 |
|
section. The application shall include such information that the | 2572 |
|
tax commissioner prescribes. Within sixty days after receiving the | 2573 |
|
application, the tax commissioner shall certify the zone for that | 2574 |
|
purpose if the commissioner determines that the property qualifies | 2575 |
|
as a uranium enrichment zone as defined in division (F)(2)(gg) of | 2576 |
|
this section, or, if the tax commissioner determines that the | 2577 |
|
property does not qualify, the commissioner shall deny the | 2578 |
|
application or request additional information from the applicant. | 2579 |
|
If the tax commissioner denies an application, the commissioner | 2580 |
|
shall state the reasons for the denial. The applicant may appeal | 2581 |
|
the denial of an application to the board of tax appeals pursuant | 2582 |
|
to section 5717.02 of the Revised Code. If the applicant files a | 2583 |
|
timely appeal, the tax commissioner shall conditionally certify | 2584 |
|
the applicant's property. The conditional certification shall | 2585 |
|
expire when all of the applicant's appeals are exhausted. Until | 2586 |
|
final resolution of the appeal, the applicant shall retain the | 2587 |
|
applicant's records in accordance with section 5751.12 of the | 2588 |
|
Revised Code, notwithstanding any time limit on the preservation | 2589 |
|
of records under that section. | 2590 |
| (jj) Receipts realized by a taxpayer that is a severer from | 2602 |
|
the first sale of oil or gas severed from the soil or water of | 2603 |
|
this state on or after October 1, 2014, on the basis of which the | 2604 |
|
severer is liable for a tax imposed under section 5749.02 of the | 2605 |
|
Revised Code, if the severer is subject to the tax imposed under | 2606 |
|
section 5747.02 of the Revised Code on income from that sale or is | 2607 |
|
a pass-through entity, the direct or indirect owners of which are | 2608 |
|
subject to that tax on the income from that sale. A pass-through | 2609 |
|
entity may exclude only those receipts proportionate to such | 2610 |
|
direct or indirect owners' distributive or proportionate shares of | 2611 |
|
the pass-through entity. As used in division (F)(2)(jj) of this | 2612 |
|
section, "severer" has the same meaning as in division (I)(2) of | 2613 |
|
section 5749.01 of the Revised Code. | 2614 |
| (3) In the case of a taxpayer when acting as a real estate | 2618 |
|
broker, "gross receipts" includes only the portion of any fee for | 2619 |
|
the service of a real estate broker, or service of a real estate | 2620 |
|
salesperson associated with that broker, that is retained by the | 2621 |
|
broker and not paid to an associated real estate salesperson or | 2622 |
|
another real estate broker. For the purposes of this division, | 2623 |
|
"real estate broker" and "real estate salesperson" have the same | 2624 |
|
meanings as in section 4735.01 of the Revised Code. | 2625 |
| (K) "Internal Revenue Code" means the Internal Revenue Code | 2671 |
|
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in | 2672 |
|
this chapter that is not otherwise defined has the same meaning as | 2673 |
|
when used in a comparable context in the laws of the United States | 2674 |
|
relating to federal income taxes unless a different meaning is | 2675 |
|
clearly required. Any reference in this chapter to the Internal | 2676 |
|
Revenue Code includes other laws of the United States relating to | 2677 |
|
federal income taxes. | 2678 |
| Section 2. That existing sections 1509.02, 1509.071, | 2711 |
|
1509.11, 1509.34, 1513.08, 1513.182, 1514.11, 5703.052, 5705.27, | 2712 |
|
5705.32, 5747.98, 5749.01, 5749.02, 5749.03, 5749.06, 5749.07, | 2713 |
|
5749.08, 5749.10, 5749.11, 5749.12, 5749.13, 5749.14, 5749.15, and | 2714 |
|
5751.01, and section
1509.50 of the Revised Code are hereby | 2715 |
|
repealed. | 2716 |
| Section 4. On or before the effective date of this act, the | 2718 |
|
Chief of the Division of Oil and Gas Resources Management shall | 2719 |
|
prepare a plan for the development of the inventory described in | 2720 |
|
division (B) of section 1509.075 of the Revised Code and deliver | 2721 |
|
that plan to the Speaker of the House of Representatives and the | 2722 |
|
President of the Senate. The plan shall include the time and | 2723 |
|
internal or external resources that the Chief believes are | 2724 |
|
necessary to complete that inventory. | 2725 |