Bill Text: OH HB472 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To enact the "Textbook Affordability Act" with respect to college textbook sales.

Spectrum: Moderate Partisan Bill (Democrat 12-2)

Status: (Introduced - Dead) 2010-03-23 - To Education [HB472 Detail]

Download: Ohio-2009-HB472-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 472

Representatives Lundy, Patten 

Cosponsors: Representatives Hite, Murray, Phillips, Belcher, Foley, Harwood, Hagan, Pryor, Bolon, Letson, Heard, Yuko 

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A BILL

To amend section 5739.02 and to enact sections

1

3346.01 to 3346.07 of the Revised Code to enact

2

the "Textbook Affordability Act" with respect to

3

college textbook sales.

4

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 5739.02 be amended and sections	5
3346.01, 3346.02, 3346.03, 3346.04, 3346.05, 3346.06, and 3346.07	6
of the Revised Code be enacted to read as follows:	7

Sec. 3346.01.  As used in this chapter:

8

(A) "Bookstore" means any store affiliated or under contract	9
with a state institution of higher education to sell materials to	10
students that is in the business of selling textbooks,	11
supplemental learning materials, bundled textbook packages, or	12
other school-related supplies on or in the near vicinity of the	13
campus of a state institution of higher education.	14

(B) "Bundle" means packaging a textbook and supplemental	15
learning materials together to be sold for one price.	16

(C) "Publisher" means a publishing house, firm, or company	17
that publishes, sells, or contracts for the sale of textbooks or	18
other learning materials to state institutions of higher education	19
or bookstores.	20

(D) "State institution of higher education" has the same	21
meaning as in section 3345.011 of the Revised Code.	22

(E) "Supplemental learning materials" means learning	23
materials used in teaching a course that supplement the primary	24
textbook in any form, including another book, a workbook, or a	25
CD-ROM.	26

Sec. 3346.02. No bookstore shall bundle, or order from the	27
publisher bundled, textbooks and supplemental learning materials	28
and offer that bundle for sale.	29

Sec. 3346.03. No professor, faculty member, instructor, or	30
other employee of a state institution of higher education shall	31
profit in any way from the sale of textbooks and other learning	32
materials used in a class taught by that person, other than	33
royalties from authorship.	34

As used in this section, "profit" does not include any free	35
supplemental learning materials or any associated training for use	36
of technology related to use of a textbook for instruction.	37

Sec. 3346.04. Each bookstore shall post the wholesale cost of	38
each new textbook sold at the bookstore at or near the front	39
counter of the bookstore or on the bookstore's or state	40
institution of higher education's web site.	41

Sec. 3346.05. No bookstore shall purchase for resale	42
previously used textbooks or other learning materials at less than	43
half the price the student originally paid to purchase the	44
textbook or other learning materials. This prohibition applies	45
only during the period following the completion of the semester or	46
quarter in which the textbook or other learning material was used	47
and prior to the start of the next academic semester or quarter.	48

No bookstore shall enter into or renew a contract with any	49
publisher or other entity that purchases and resells used books	50
that would require the bookstore to purchase for resale textbooks	51
or other learning materials for less than what is required under	52
this section.	53

Sec. 3346.06. (A) Each academic year, the board of trustees	54
of each state institution of higher education shall provide to the	55
chancellor of the Ohio board of regents, in the form and manner	56
and before a deadline established by the chancellor, a list of	57
each textbook, and its cost, used at the institution in that	58
academic year. The chancellor and the board of regents shall meet	59
annually to review the reports to monitor efforts by the	60
institutions to encourage faculty to be sensitive to the costs of	61
textbooks in the selection process and to make textbooks more	62
affordable.	63

(B) The chancellor shall create and implement a bulk	64
purchasing program for the most commonly used books determined	65
from the list of books provided annually under division (A) of	66
this section. The program shall include a method for reselling the	67
books to students to reflect the savings resulting from bulk	68
purchasing.	69

Sec. 3346.07. (A) The chancellor of the Ohio board of regents	70
shall negotiate with publishers and shall issue a plan under which	71
each publisher shall provide one or more electronic versions, if	72
such a version is legally available, of each of the publisher's	73
textbooks that is required for use at a state institution of	74
higher education as a main textbook of a class. The chancellor	75
shall issue and implement the plan not later than two years after	76
the effective date of this section. The chancellor may negotiate	77
and issue subsequent modifications to the plan.	78

(B) The chancellor shall negotiate and include in the plan	79
provisions requiring publishers to provide electronic versions of	80
each of the publisher's textbooks that is required for use at a	81
state institution of higher education in one or more formats that	82
are accessible to students with disabilities. The formats must be	83
compatible with commonly used Braille translations or speech	84
synthesis software. The chancellor shall issue and implement these	85
provisions as soon as practicable after the effective date of this	86
section, but the provisions shall apply beginning not later than	87
the start of the first academic year commencing at least two years	88
after the effective date of this section.	89

(C) Each publisher shall comply with the plan issued and	90
modified by the chancellor under this section.	91

(D) Each bookstore shall offer for purchase each electronic	92
version of a textbook provided by a publisher under this section.	93

(E) Each publisher shall ensure that the format of each	94
electronic textbook required under divisions (A) and (B) of this	95
section maintains, as much as possible, the structural integrity	96
of the printed version of the textbook. A publisher may	97
incorporate technical security measures within electronic	98
textbooks to prevent unauthorized copying, modification,	99
distribution, or use.	100

Sec. 5739.02.  For the purpose of providing revenue with	101
which to meet the needs of the state, for the use of the general	102
revenue fund of the state, for the purpose of securing a thorough	103
and efficient system of common schools throughout the state, for	104
the purpose of affording revenues, in addition to those from	105
general property taxes, permitted under constitutional	106
limitations, and from other sources, for the support of local	107
governmental functions, and for the purpose of reimbursing the	108
state for the expense of administering this chapter, an excise tax	109
is hereby levied on each retail sale made in this state.	110

(A)(1) The tax shall be collected as provided in section	111
5739.025 of the Revised Code. The rate of the tax shall be five	112
and one-half per cent. The tax applies and is collectible when	113
the sale is made, regardless of the time when the price is paid	114
or delivered.	115

(2) In the case of the lease or rental, with a fixed term of	116
more than thirty days or an indefinite term with a minimum period	117
of more than thirty days, of any motor vehicles designed by the	118
manufacturer to carry a load of not more than one ton, watercraft,	119
outboard motor, or aircraft, or of any tangible personal property,	120
other than motor vehicles designed by the manufacturer to carry a	121
load of more than one ton, to be used by the lessee or renter	122
primarily for business purposes, the tax shall be collected by the	123
vendor at the time the lease or rental is consummated and shall be	124
calculated by the vendor on the basis of the total amount to be	125
paid by the lessee or renter under the lease agreement. If the	126
total amount of the consideration for the lease or rental includes	127
amounts that are not calculated at the time the lease or rental is	128
executed, the tax shall be calculated and collected by the vendor	129
at the time such amounts are billed to the lessee or renter. In	130
the case of an open-end lease or rental, the tax shall be	131
calculated by the vendor on the basis of the total amount to be	132
paid during the initial fixed term of the lease or rental, and for	133
each subsequent renewal period as it comes due. As used in this	134
division, "motor vehicle" has the same meaning as in section	135
4501.01 of the Revised Code, and "watercraft" includes an outdrive	136
unit attached to the watercraft.	137

A lease with a renewal clause and a termination penalty or	138
similar provision that applies if the renewal clause is not	139
exercised is presumed to be a sham transaction. In such a case,	140
the tax shall be calculated and paid on the basis of the entire	141
length of the lease period, including any renewal periods, until	142
the termination penalty or similar provision no longer applies.	143
The taxpayer shall bear the burden, by a preponderance of the	144
evidence, that the transaction or series of transactions is not a	145
sham transaction.	146

(3) Except as provided in division (A)(2) of this section, in	147
the case of a sale, the price of which consists in whole or in	148
part of the lease or rental of tangible personal property, the tax	149
shall be measured by the installments of that lease or rental.	150

(4) In the case of a sale of a physical fitness facility	151
service or recreation and sports club service, the price of which	152
consists in whole or in part of a membership for the receipt of	153
the benefit of the service, the tax applicable to the sale shall	154
be measured by the installments thereof.	155

(B) The tax does not apply to the following:

156

(1) Sales to the state or any of its political subdivisions,	157
or to any other state or its political subdivisions if the laws of	158
that state exempt from taxation sales made to this state and its	159
political subdivisions;	160

(2) Sales of food for human consumption off the premises	161
where sold;	162

(3) Sales of food sold to students only in a cafeteria,	163
dormitory, fraternity, or sorority maintained in a private,	164
public, or parochial school, college, or university;	165

(4) Sales of newspapers and of magazine subscriptions and	166
sales or transfers of magazines distributed as controlled	167
circulation publications;	168

(5) The furnishing, preparing, or serving of meals without	169
charge by an employer to an employee provided the employer records	170
the meals as part compensation for services performed or work	171
done;	172

(6) Sales of motor fuel upon receipt, use, distribution, or	173
sale of which in this state a tax is imposed by the law of this	174
state, but this exemption shall not apply to the sale of motor	175
fuel on which a refund of the tax is allowable under division (A)	176
of section 5735.14 of the Revised Code; and the tax commissioner	177
may deduct the amount of tax levied by this section applicable to	178
the price of motor fuel when granting a refund of motor fuel tax	179
pursuant to division (A) of section 5735.14 of the Revised Code	180
and shall cause the amount deducted to be paid into the general	181
revenue fund of this state;	182

(7) Sales of natural gas by a natural gas company, of water	183
by a water-works company, or of steam by a heating company, if in	184
each case the thing sold is delivered to consumers through pipes	185
or conduits, and all sales of communications services by a	186
telegraph company, all terms as defined in section 5727.01 of the	187
Revised Code, and sales of electricity delivered through wires;	188

(8) Casual sales by a person, or auctioneer employed directly	189
by the person to conduct such sales, except as to such sales of	190
motor vehicles, watercraft or outboard motors required to be	191
titled under section 1548.06 of the Revised Code, watercraft	192
documented with the United States coast guard, snowmobiles, and	193
all-purpose vehicles as defined in section 4519.01 of the Revised	194
Code;	195

(9)(a) Sales of services or tangible personal property, other	196
than motor vehicles, mobile homes, and manufactured homes, by	197
churches, organizations exempt from taxation under section	198
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	199
organizations operated exclusively for charitable purposes as	200
defined in division (B)(12) of this section, provided that the	201
number of days on which such tangible personal property or	202
services, other than items never subject to the tax, are sold does	203
not exceed six in any calendar year, except as otherwise provided	204
in division (B)(9)(b) of this section. If the number of days on	205
which such sales are made exceeds six in any calendar year, the	206
church or organization shall be considered to be engaged in	207
business and all subsequent sales by it shall be subject to the	208
tax. In counting the number of days, all sales by groups within a	209
church or within an organization shall be considered to be sales	210
of that church or organization.	211

(b) The limitation on the number of days on which tax-exempt	212
sales may be made by a church or organization under division	213
(B)(9)(a) of this section does not apply to sales made by student	214
clubs and other groups of students of a primary or secondary	215
school, or a parent-teacher association, booster group, or similar	216
organization that raises money to support or fund curricular or	217
extracurricular activities of a primary or secondary school.	218

(c) Divisions (B)(9)(a) and (b) of this section do not apply	219
to sales by a noncommercial educational radio or television	220
broadcasting station.	221

(10) Sales not within the taxing power of this state under	222
the Constitution of the United States;	223

(11) Except for transactions that are sales under division	224
(B)(3)(r) of section 5739.01 of the Revised Code, the	225
transportation of persons or property, unless the transportation	226
is by a private investigation and security service;	227

(12) Sales of tangible personal property or services to	228
churches, to organizations exempt from taxation under section	229
501(c)(3) of the Internal Revenue Code of 1986, and to any other	230
nonprofit organizations operated exclusively for charitable	231
purposes in this state, no part of the net income of which inures	232
to the benefit of any private shareholder or individual, and no	233
substantial part of the activities of which consists of carrying	234
on propaganda or otherwise attempting to influence legislation;	235
sales to offices administering one or more homes for the aged or	236
one or more hospital facilities exempt under section 140.08 of the	237
Revised Code; and sales to organizations described in division (D)	238
of section 5709.12 of the Revised Code.	239

"Charitable purposes" means the relief of poverty; the	240
improvement of health through the alleviation of illness, disease,	241
or injury; the operation of an organization exclusively for the	242
provision of professional, laundry, printing, and purchasing	243
services to hospitals or charitable institutions; the operation of	244
a home for the aged, as defined in section 5701.13 of the Revised	245
Code; the operation of a radio or television broadcasting station	246
that is licensed by the federal communications commission as a	247
noncommercial educational radio or television station; the	248
operation of a nonprofit animal adoption service or a county	249
humane society; the promotion of education by an institution of	250
learning that maintains a faculty of qualified instructors,	251
teaches regular continuous courses of study, and confers a	252
recognized diploma upon completion of a specific curriculum; the	253
operation of a parent-teacher association, booster group, or	254
similar organization primarily engaged in the promotion and	255
support of the curricular or extracurricular activities of a	256
primary or secondary school; the operation of a community or area	257
center in which presentations in music, dramatics, the arts, and	258
related fields are made in order to foster public interest and	259
education therein; the production of performances in music,	260
dramatics, and the arts; or the promotion of education by an	261
organization engaged in carrying on research in, or the	262
dissemination of, scientific and technological knowledge and	263
information primarily for the public.	264

Nothing in this division shall be deemed to exempt sales to	265
any organization for use in the operation or carrying on of a	266
trade or business, or sales to a home for the aged for use in the	267
operation of independent living facilities as defined in division	268
(A) of section 5709.12 of the Revised Code.	269

(13) Building and construction materials and services sold to	270
construction contractors for incorporation into a structure or	271
improvement to real property under a construction contract with	272
this state or a political subdivision of this state, or with the	273
United States government or any of its agencies; building and	274
construction materials and services sold to construction	275
contractors for incorporation into a structure or improvement to	276
real property that are accepted for ownership by this state or any	277
of its political subdivisions, or by the United States government	278
or any of its agencies at the time of completion of the structures	279
or improvements; building and construction materials sold to	280
construction contractors for incorporation into a horticulture	281
structure or livestock structure for a person engaged in the	282
business of horticulture or producing livestock; building	283
materials and services sold to a construction contractor for	284
incorporation into a house of public worship or religious	285
education, or a building used exclusively for charitable purposes	286
under a construction contract with an organization whose purpose	287
is as described in division (B)(12) of this section; building	288
materials and services sold to a construction contractor for	289
incorporation into a building under a construction contract with	290
an organization exempt from taxation under section 501(c)(3) of	291
the Internal Revenue Code of 1986 when the building is to be used	292
exclusively for the organization's exempt purposes; building and	293
construction materials sold for incorporation into the original	294
construction of a sports facility under section 307.696 of the	295
Revised Code; and building and construction materials and services	296
sold to a construction contractor for incorporation into real	297
property outside this state if such materials and services, when	298
sold to a construction contractor in the state in which the real	299
property is located for incorporation into real property in that	300
state, would be exempt from a tax on sales levied by that state;	301

(14) Sales of ships or vessels or rail rolling stock used or	302
to be used principally in interstate or foreign commerce, and	303
repairs, alterations, fuel, and lubricants for such ships or	304
vessels or rail rolling stock;	305

(15) Sales to persons primarily engaged in any of the	306
activities mentioned in division (B)(42)(a) or (g) of this	307
section, to persons engaged in making retail sales, or to persons	308
who purchase for sale from a manufacturer tangible personal	309
property that was produced by the manufacturer in accordance with	310
specific designs provided by the purchaser, of packages, including	311
material, labels, and parts for packages, and of machinery,	312
equipment, and material for use primarily in packaging tangible	313
personal property produced for sale, including any machinery,	314
equipment, and supplies used to make labels or packages, to	315
prepare packages or products for labeling, or to label packages or	316
products, by or on the order of the person doing the packaging, or	317
sold at retail. "Packages" includes bags, baskets, cartons,	318
crates, boxes, cans, bottles, bindings, wrappings, and other	319
similar devices and containers, but does not include motor	320
vehicles or bulk tanks, trailers, or similar devices attached to	321
motor vehicles. "Packaging" means placing in a package. Division	322
(B)(15) of this section does not apply to persons engaged in	323
highway transportation for hire.	324

(16) Sales of food to persons using supplemental nutrition	325
assistance program benefits to purchase the food. As used in this	326
division, "food" has the same meaning as in 7 U.S.C. 2012 and	327
federal regulations adopted pursuant to the Food and Nutrition Act	328
of 2008.	329

(17) Sales to persons engaged in farming, agriculture,	330
horticulture, or floriculture, of tangible personal property for	331
use or consumption directly in the production by farming,	332
agriculture, horticulture, or floriculture of other tangible	333
personal property for use or consumption directly in the	334
production of tangible personal property for sale by farming,	335
agriculture, horticulture, or floriculture; or material and parts	336
for incorporation into any such tangible personal property for use	337
or consumption in production; and of tangible personal property	338
for such use or consumption in the conditioning or holding of	339
products produced by and for such use, consumption, or sale by	340
persons engaged in farming, agriculture, horticulture, or	341
floriculture, except where such property is incorporated into real	342
property;	343

(18) Sales of drugs for a human being that may be dispensed	344
only pursuant to a prescription; insulin as recognized in the	345
official United States pharmacopoeia; urine and blood testing	346
materials when used by diabetics or persons with hypoglycemia to	347
test for glucose or acetone; hypodermic syringes and needles when	348
used by diabetics for insulin injections; epoetin alfa when	349
purchased for use in the treatment of persons with medical	350
disease; hospital beds when purchased by hospitals, nursing homes,	351
or other medical facilities; and medical oxygen and medical	352
oxygen-dispensing equipment when purchased by hospitals, nursing	353
homes, or other medical facilities;	354

(19) Sales of prosthetic devices, durable medical equipment	355
for home use, or mobility enhancing equipment, when made pursuant	356
to a prescription and when such devices or equipment are for use	357
by a human being.	358

(20) Sales of emergency and fire protection vehicles and	359
equipment to nonprofit organizations for use solely in providing	360
fire protection and emergency services, including trauma care and	361
emergency medical services, for political subdivisions of the	362
state;	363

(21) Sales of tangible personal property manufactured in this	364
state, if sold by the manufacturer in this state to a retailer for	365
use in the retail business of the retailer outside of this state	366
and if possession is taken from the manufacturer by the purchaser	367
within this state for the sole purpose of immediately removing the	368
same from this state in a vehicle owned by the purchaser;	369

(22) Sales of services provided by the state or any of its	370
political subdivisions, agencies, instrumentalities, institutions,	371
or authorities, or by governmental entities of the state or any of	372
its political subdivisions, agencies, instrumentalities,	373
institutions, or authorities;	374

(23) Sales of motor vehicles to nonresidents of this state	375
under the circumstances described in division (B) of section	376
5739.029 of the Revised Code;	377

(24) Sales to persons engaged in the preparation of eggs for	378
sale of tangible personal property used or consumed directly in	379
such preparation, including such tangible personal property used	380
for cleaning, sanitizing, preserving, grading, sorting, and	381
classifying by size; packages, including material and parts for	382
packages, and machinery, equipment, and material for use in	383
packaging eggs for sale; and handling and transportation equipment	384
and parts therefor, except motor vehicles licensed to operate on	385
public highways, used in intraplant or interplant transfers or	386
shipment of eggs in the process of preparation for sale, when the	387
plant or plants within or between which such transfers or	388
shipments occur are operated by the same person. "Packages"	389
includes containers, cases, baskets, flats, fillers, filler flats,	390
cartons, closure materials, labels, and labeling materials, and	391
"packaging" means placing therein.	392

(25)(a) Sales of water to a consumer for residential use,	393
except the sale of bottled water, distilled water, mineral water,	394
carbonated water, or ice;	395

(b) Sales of water by a nonprofit corporation engaged	396
exclusively in the treatment, distribution, and sale of water to	397
consumers, if such water is delivered to consumers through pipes	398
or tubing.	399

(26) Fees charged for inspection or reinspection of motor	400
vehicles under section 3704.14 of the Revised Code;	401

(27) Sales to persons licensed to conduct a food service	402
operation pursuant to section 3717.43 of the Revised Code, of	403
tangible personal property primarily used directly for the	404
following:	405

(a) To prepare food for human consumption for sale;

406

(b) To preserve food that has been or will be prepared for	407
human consumption for sale by the food service operator, not	408
including tangible personal property used to display food for	409
selection by the consumer;	410

(c) To clean tangible personal property used to prepare or	411
serve food for human consumption for sale.	412

(28) Sales of animals by nonprofit animal adoption services	413
or county humane societies;	414

(29) Sales of services to a corporation described in division	415
(A) of section 5709.72 of the Revised Code, and sales of tangible	416
personal property that qualifies for exemption from taxation under	417
section 5709.72 of the Revised Code;	418

(30) Sales and installation of agricultural land tile, as	419
defined in division (B)(5)(a) of section 5739.01 of the Revised	420
Code;	421

(31) Sales and erection or installation of portable grain	422
bins, as defined in division (B)(5)(b) of section 5739.01 of the	423
Revised Code;	424

(32) The sale, lease, repair, and maintenance of, parts for,	425
or items attached to or incorporated in, motor vehicles that are	426
primarily used for transporting tangible personal property	427
belonging to others by a person engaged in highway transportation	428
for hire, except for packages and packaging used for the	429
transportation of tangible personal property;	430

(33) Sales to the state headquarters of any veterans'	431
organization in this state that is either incorporated and issued	432
a charter by the congress of the United States or is recognized by	433
the United States veterans administration, for use by the	434
headquarters;	435

(34) Sales to a telecommunications service vendor, mobile	436
telecommunications service vendor, or satellite broadcasting	437
service vendor of tangible personal property and services used	438
directly and primarily in transmitting, receiving, switching, or	439
recording any interactive, one- or two-way electromagnetic	440
communications, including voice, image, data, and information,	441
through the use of any medium, including, but not limited to,	442
poles, wires, cables, switching equipment, computers, and record	443
storage devices and media, and component parts for the tangible	444
personal property. The exemption provided in this division shall	445
be in lieu of all other exemptions under division (B)(42)(a) of	446
this section to which the vendor may otherwise be entitled, based	447
upon the use of the thing purchased in providing the	448
telecommunications, mobile telecommunications, or satellite	449
broadcasting service.	450

(35)(a) Sales where the purpose of the consumer is to use or	451
consume the things transferred in making retail sales and	452
consisting of newspaper inserts, catalogues, coupons, flyers, gift	453
certificates, or other advertising material that prices and	454
describes tangible personal property offered for retail sale.	455

(b) Sales to direct marketing vendors of preliminary	456
materials such as photographs, artwork, and typesetting that will	457
be used in printing advertising material; of printed matter that	458
offers free merchandise or chances to win sweepstake prizes and	459
that is mailed to potential customers with advertising material	460
described in division (B)(35)(a) of this section; and of equipment	461
such as telephones, computers, facsimile machines, and similar	462
tangible personal property primarily used to accept orders for	463
direct marketing retail sales.	464

(c) Sales of automatic food vending machines that preserve	465
food with a shelf life of forty-five days or less by refrigeration	466
and dispense it to the consumer.	467

For purposes of division (B)(35) of this section, "direct	468
marketing" means the method of selling where consumers order	469
tangible personal property by United States mail, delivery	470
service, or telecommunication and the vendor delivers or ships the	471
tangible personal property sold to the consumer from a warehouse,	472
catalogue distribution center, or similar fulfillment facility by	473
means of the United States mail, delivery service, or common	474
carrier.	475

(36) Sales to a person engaged in the business of	476
horticulture or producing livestock of materials to be	477
incorporated into a horticulture structure or livestock structure;	478

(37) Sales of personal computers, computer monitors, computer	479
keyboards, modems, and other peripheral computer equipment to an	480
individual who is licensed or certified to teach in an elementary	481
or a secondary school in this state for use by that individual in	482
preparation for teaching elementary or secondary school students;	483

(38) Sales to a professional racing team of any of the	484
following:	485

(a) Motor racing vehicles;

486

(b) Repair services for motor racing vehicles;

487

(c) Items of property that are attached to or incorporated in	488
motor racing vehicles, including engines, chassis, and all other	489
components of the vehicles, and all spare, replacement, and	490
rebuilt parts or components of the vehicles; except not including	491
tires, consumable fluids, paint, and accessories consisting of	492
instrumentation sensors and related items added to the vehicle to	493
collect and transmit data by means of telemetry and other forms of	494
communication.	495

(39) Sales of used manufactured homes and used mobile homes,	496
as defined in section 5739.0210 of the Revised Code, made on or	497
after January 1, 2000;	498

(40) Sales of tangible personal property and services to a	499
provider of electricity used or consumed directly and primarily in	500
generating, transmitting, or distributing electricity for use by	501
others, including property that is or is to be incorporated into	502
and will become a part of the consumer's production, transmission,	503
or distribution system and that retains its classification as	504
tangible personal property after incorporation; fuel or power used	505
in the production, transmission, or distribution of electricity;	506
and tangible personal property and services used in the repair and	507
maintenance of the production, transmission, or distribution	508
system, including only those motor vehicles as are specially	509
designed and equipped for such use. The exemption provided in this	510
division shall be in lieu of all other exemptions in division	511
(B)(42)(a) of this section to which a provider of electricity may	512
otherwise be entitled based on the use of the tangible personal	513
property or service purchased in generating, transmitting, or	514
distributing electricity.	515

(41) Sales to a person providing services under division	516
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	517
personal property and services used directly and primarily in	518
providing taxable services under that section.	519

(42) Sales where the purpose of the purchaser is to do any of	520
the following:	521

(a) To incorporate the thing transferred as a material or a	522
part into tangible personal property to be produced for sale by	523
manufacturing, assembling, processing, or refining; or to use or	524
consume the thing transferred directly in producing tangible	525
personal property for sale by mining, including, without	526
limitation, the extraction from the earth of all substances that	527
are classed geologically as minerals, production of crude oil and	528
natural gas, farming, agriculture, horticulture, or floriculture,	529
or directly in the rendition of a public utility service, except	530
that the sales tax levied by this section shall be collected upon	531
all meals, drinks, and food for human consumption sold when	532
transporting persons. Persons engaged in rendering farming,	533
agricultural, horticultural, or floricultural services, and	534
services in the exploration for, and production of, crude oil and	535
natural gas, for others are deemed engaged directly in farming,	536
agriculture, horticulture, and floriculture, or exploration for,	537
and production of, crude oil and natural gas. This paragraph does	538
not exempt from "retail sale" or "sales at retail" the sale of	539
tangible personal property that is to be incorporated into a	540
structure or improvement to real property.	541

(b) To hold the thing transferred as security for the	542
performance of an obligation of the vendor;	543

(c) To resell, hold, use, or consume the thing transferred as	544
evidence of a contract of insurance;	545

(d) To use or consume the thing directly in commercial	546
fishing;	547

(e) To incorporate the thing transferred as a material or a	548
part into, or to use or consume the thing transferred directly in	549
the production of, magazines distributed as controlled circulation	550
publications;	551

(f) To use or consume the thing transferred in the production	552
and preparation in suitable condition for market and sale of	553
printed, imprinted, overprinted, lithographic, multilithic,	554
blueprinted, photostatic, or other productions or reproductions of	555
written or graphic matter;	556

(g) To use the thing transferred, as described in section	557
5739.011 of the Revised Code, primarily in a manufacturing	558
operation to produce tangible personal property for sale;	559

(h) To use the benefit of a warranty, maintenance or service	560
contract, or similar agreement, as described in division (B)(7) of	561
section 5739.01 of the Revised Code, to repair or maintain	562
tangible personal property, if all of the property that is the	563
subject of the warranty, contract, or agreement would not be	564
subject to the tax imposed by this section;	565

(i) To use the thing transferred as qualified research and	566
development equipment;	567

(j) To use or consume the thing transferred primarily in	568
storing, transporting, mailing, or otherwise handling purchased	569
sales inventory in a warehouse, distribution center, or similar	570
facility when the inventory is primarily distributed outside this	571
state to retail stores of the person who owns or controls the	572
warehouse, distribution center, or similar facility, to retail	573
stores of an affiliated group of which that person is a member, or	574
by means of direct marketing. This division does not apply to	575
motor vehicles registered for operation on the public highways. As	576
used in this division, "affiliated group" has the same meaning as	577
in division (B)(3)(e) of section 5739.01 of the Revised Code and	578
"direct marketing" has the same meaning as in division (B)(35) of	579
this section.	580

(k) To use or consume the thing transferred to fulfill a	581
contractual obligation incurred by a warrantor pursuant to a	582
warranty provided as a part of the price of the tangible personal	583
property sold or by a vendor of a warranty, maintenance or service	584
contract, or similar agreement the provision of which is defined	585
as a sale under division (B)(7) of section 5739.01 of the Revised	586
Code;	587

(l) To use or consume the thing transferred in the production	588
of a newspaper for distribution to the public;	589

(m) To use tangible personal property to perform a service	590
listed in division (B)(3) of section 5739.01 of the Revised Code,	591
if the property is or is to be permanently transferred to the	592
consumer of the service as an integral part of the performance of	593
the service;	594

(n) To use or consume the thing transferred in acquiring,	595
formatting, editing, storing, and disseminating data or	596
information by electronic publishing.	597

As used in division (B)(42) of this section, "thing" includes	598
all transactions included in divisions (B)(3)(a), (b), and (e) of	599
section 5739.01 of the Revised Code.	600

(43) Sales conducted through a coin operated device that	601
activates vacuum equipment or equipment that dispenses water,	602
whether or not in combination with soap or other cleaning agents	603
or wax, to the consumer for the consumer's use on the premises in	604
washing, cleaning, or waxing a motor vehicle, provided no other	605
personal property or personal service is provided as part of the	606
transaction.	607

(44) Sales of replacement and modification parts for engines,	608
airframes, instruments, and interiors in, and paint for, aircraft	609
used primarily in a fractional aircraft ownership program, and	610
sales of services for the repair, modification, and maintenance of	611
such aircraft, and machinery, equipment, and supplies primarily	612
used to provide those services.	613

(45) Sales of telecommunications service that is used	614
directly and primarily to perform the functions of a call center.	615
As used in this division, "call center" means any physical	616
location where telephone calls are placed or received in high	617
volume for the purpose of making sales, marketing, customer	618
service, technical support, or other specialized business	619
activity, and that employs at least fifty individuals that engage	620
in call center activities on a full-time basis, or sufficient	621
individuals to fill fifty full-time equivalent positions.	622

(46) Sales by a telecommunications service vendor of 900	623
service to a subscriber. This division does not apply to	624
information services, as defined in division (FF) of section	625
5739.01 of the Revised Code.	626

(47) Sales of value-added non-voice data service. This	627
division does not apply to any similar service that is not	628
otherwise a telecommunications service.	629

(48)(a) Sales of machinery, equipment, and software to a	630
qualified direct selling entity for use in a warehouse or	631
distribution center primarily for storing, transporting, or	632
otherwise handling inventory that is held for sale to independent	633
salespersons who operate as direct sellers and that is held	634
primarily for distribution outside this state;	635

(b) As used in division (B)(48)(a) of this section:

636

(i) "Direct seller" means a person selling consumer products	637
to individuals for personal or household use and not from a fixed	638
retail location, including selling such product at in-home product	639
demonstrations, parties, and other one-on-one selling.	640

(ii) "Qualified direct selling entity" means an entity	641
selling to direct sellers at the time the entity enters into a tax	642
credit agreement with the tax credit authority pursuant to section	643
122.17 of the Revised Code, provided that the agreement was	644
entered into on or after January 1, 2007. Neither contingencies	645
relevant to the granting of, nor later developments with respect	646
to, the tax credit shall impair the status of the qualified direct	647
selling entity under division (B)(48) of this section after	648
execution of the tax credit agreement by the tax credit authority.	649

(c) Division (B)(48) of this section is limited to machinery,	650
equipment, and software first stored, used, or consumed in this	651
state within the period commencing June 24, 2008, and ending on	652
the date that is five years after that date.	653

(49) Sales of materials, parts, equipment, or engines used	654
in the repair or maintenance of aircraft or avionics systems of	655
such aircraft, and sales of repair, remodeling, replacement, or	656
maintenance services in this state performed on aircraft or on an	657
aircraft's avionics, engine, or component materials or parts. As	658
used in division (B)(49) of this section, "aircraft" means	659
aircraft of more than six thousand pounds maximum certified	660
takeoff weight or used exclusively in general aviation.	661

(50) Sales of full flight simulators that are used for pilot	662
or flight-crew training, sales of repair or replacement parts or	663
components, and sales of repair or maintenance services for such	664
full flight simulators. "Full flight simulator" means a replica	665
of a specific type, or make, model, and series of aircraft	666
cockpit. It includes the assemblage of equipment and computer	667
programs necessary to represent aircraft operations in ground and	668
flight conditions, a visual system providing an	669
out-of-the-cockpit view, and a system that provides cues at least	670
equivalent to those of a three-degree-of-freedom motion system,	671
and has the full range of capabilities of the systems installed	672
in the device as described in appendices A and B of part 60 of	673
chapter 1 of title 14 of the Code of Federal Regulations.	674

(51) Sales of textbooks and written supplemental materials	675
required for coursework at an eligible institution, as defined in	676
section 5747.01 of the Revised Code, or a private institution	677
exempt from regulation under Chapter 3332. of the Revised Code as	678
prescribed in section 3333.046 of the Revised Code.	679

(C) For the purpose of the proper administration of this	680
chapter, and to prevent the evasion of the tax, it is presumed	681
that all sales made in this state are subject to the tax until the	682
contrary is established.	683

(D) The levy of this tax on retail sales of recreation and	684
sports club service shall not prevent a municipal corporation from	685
levying any tax on recreation and sports club dues or on any	686
income generated by recreation and sports club dues.	687

(E) The tax collected by the vendor from the consumer under	688
this chapter is not part of the price, but is a tax collection for	689
the benefit of the state, and of counties levying an additional	690
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	691
Code and of transit authorities levying an additional sales tax	692
pursuant to section 5739.023 of the Revised Code. Except for the	693
discount authorized under section 5739.12 of the Revised Code and	694
the effects of any rounding pursuant to section 5703.055 of the	695
Revised Code, no person other than the state or such a county or	696
transit authority shall derive any benefit from the collection or	697
payment of the tax levied by this section or section 5739.021,	698
5739.023, or 5739.026 of the Revised Code.	699

Section 2.  That existing section 5739.02 of the Revised Code	700
is hereby repealed.	701

Section 3. This act shall be known as the "Textbook	702
Affordability Act."	703

Section 4.  The Chancellor of the Ohio Board of Regents shall	704
develop pilot textbook rental programs at two or more state	705
institutions of higher education to commence not later than the	706
start of the 2011-2012 academic year and to last for two years.	707
The rental programs shall be optional to students and shall be	708
designed to be financially self-sustaining. The Chancellor shall	709
submit a report to the General Assembly in accordance with section	710
101.68 of the Revised Code not later than one year after	711
completion of the pilot programs. The report shall include	712
implementation strategies for programs at all state institutions	713
of higher education, including any further potential recommended	714
action by the General Assembly. A campus or program that	715
participates in a textbook rental pilot program may establish	716
policies and procedures for the program and shall report annually	717
to the General Assembly in accordance with section 101.68 of the	718
Revised Code and to the Chancellor with information on the	719
procedures, savings, and participant comment.	720

Section 5. Any bookstore that, prior to the effective date of	721
this section, entered into a contract with a publisher that	722
requires the purchase for resale of used textbooks in violation of	723
section 3346.05 of the Revised Code shall not be required to	724
comply with that section until the expiration of the contract. Any	725
renewal of the contract shall comply with that section.	726