Bill Text: OH SB335 | 2013-2014 | 130th General Assembly | Comm Sub
Bill Title: To provide that a toll project may include the substantial reconstruction or replacement of an existing toll-free highway, bridge, or tunnel, to amend the law governing public-private agreements relative to transportation facilities, and to provide for the collection of user fees on toll projects by toll project operators.
Spectrum: Moderate Partisan Bill (Republican 9-2)
Status: (Introduced - Dead) 2014-05-28 - Committee Report - S [SB335 Detail]
Download: Ohio-2013-SB335-Comm_Sub.html
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Senators Seitz, Kearney
Cosponsors: Senators Uecker, Eklund, Beagle, Manning, Brown, Hite, Lehner, Jones, Patton
To amend sections 5501.44, 5501.70, 5501.71, 5501.73, | 1 |
5501.78, 5531.11, 5531.12, 5531.13, 5531.14, | 2 |
5531.15, 5531.16, and 5739.02 and to enact | 3 |
sections 5531.141, 5531.142, 5531.143, 5531.144, | 4 |
5531.145, 5531.146, 5531.147, 5531.148, and | 5 |
5531.149 of the Revised Code to provide that a | 6 |
toll project may include the substantial | 7 |
reconstruction or replacement of an existing | 8 |
toll-free highway, bridge, or tunnel, to amend the | 9 |
law governing public-private agreements relative | 10 |
to transportation facilities, and to provide for | 11 |
the collection of user fees on toll projects by | 12 |
toll project operators. | 13 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5501.44, 5501.70, 5501.71, 5501.73, | 14 |
5501.78, 5531.11, 5531.12, 5531.13, 5531.14, 5531.15, 5531.16, and | 15 |
5739.02 be amended and sections 5531.141, 5531.142, 5531.143, | 16 |
5531.144, 5531.145, 5531.146, 5531.147, 5531.148, and 5531.149 of | 17 |
the Revised Code be enacted to read as follows: | 18 |
Sec. 5501.44. (A)(1) Notwithstanding section 5735.27 of the | 19 |
Revised Code, the director of transportation, when the director | 20 |
determines it in the interest of the welfare and safety of the | 21 |
citizens of Ohio, may enter into agreements with other states or | 22 |
subdivisions thereof or the United States relative to the | 23 |
cooperation in the repair, maintenance, or construction of a | 24 |
bridge crossing a stream that forms a boundary line of this state, | 25 |
and may expend state highway funds for said purpose. | 26 |
| 27 |
no such agreement shall be made that obligates this state to | 28 |
expend more than the cost of the construction of such portion of | 29 |
said bridge as is located within the state, and not more than | 30 |
fifty per cent of the cost of maintenance of any such bridge, and | 31 |
no such agreement shall be made that obligates the state in excess | 32 |
of three hundred thousand dollars in any one year for maintenance. | 33 |
(2) Notwithstanding division (A)(1) of this section, the | 34 |
director may expend funds for the design, construction, | 35 |
inspection, maintenance, repair, and replacement of bridge and | 36 |
bridge approaches for the bridge that were transferred from the | 37 |
Ohio bridge commission to the control of the state of Ohio, | 38 |
department of transportation, as provided in Section 4 of Amended | 39 |
Substitute House Bill No. 98 of the 114th general assembly. | 40 |
Following the replacement of that bridge, the director may expend | 41 |
funds for the design, construction, inspection, maintenance, | 42 |
repair, and replacement of bridge and bridge approaches. | 43 |
(3) Notwithstanding division (A)(1) of this section, the | 44 |
director may enter into an agreement with another state for the | 45 |
replacement, improvement, rehabilitation, operation, and | 46 |
maintenance of a bridge or system of bridges that carries an | 47 |
interstate highway over the Ohio river to another state, and for | 48 |
the replacement, improvement, rehabilitation, operation, and | 49 |
maintenance of roadways providing for ingress to and egress from | 50 |
that bridge or system of bridges. However, no such agreement shall | 51 |
obligate this state to expend more than fifty per cent of the | 52 |
total project costs. | 53 |
(4) Any | 54 |
this section shall be approved by the governor and attorney | 55 |
general of the state before they become effective. | 56 |
| 57 |
responsibility for inspection, provide for annual inspection, and | 58 |
require that a report of each inspection be filed with the | 59 |
department of transportation. The director, with regard to all | 60 |
existing bridges or other bridges on a stream that forms a | 61 |
boundary line of this state, shall take all reasonable measures to | 62 |
obtain and to secure the filing of a copy of each inspection | 63 |
report for each bridge with the department of transportation. | 64 |
| 65 |
Ohio river is scheduled to be closed by a contiguous state, shall | 66 |
make all reasonable efforts to notify the Ohio residents likely to | 67 |
be adversely affected by that closing. The department also shall | 68 |
cooperate and communicate with contiguous states in trying to | 69 |
resolve bridge closing problems. | 70 |
(B)(1) The director, when the director considers it in the | 71 |
interest of the welfare and safety of the citizens of Ohio, may | 72 |
enter into agreements with other states, subdivisions thereof, | 73 |
metropolitan planning organizations, or the United States, | 74 |
relative to the design, construction, operation, maintenance, and | 75 |
repair of a regional traffic management system, and may expend | 76 |
state and federal highway funds for such purposes, notwithstanding | 77 |
any other provision of the Revised Code. | 78 |
(2) No such agreement shall be made that obligates this state | 79 |
to expend more than the cost of construction of such portion of a | 80 |
regional traffic management system as is located within the state, | 81 |
and not more than a proportional amount, based upon the system | 82 |
presence in this state, for costs of design, operation, | 83 |
maintenance, and repair. | 84 |
(3) Any such agreements shall be approved by the governor and | 85 |
attorney general of the state before they become effective. | 86 |
(4) As used in division (B) of this section, "regional | 87 |
traffic management system" means an integrated, high-technology | 88 |
system to provide remote control center surveillance and | 89 |
monitoring of the regional freeways and main arterial routes in | 90 |
order to reduce and eliminate major backups and delays to | 91 |
motorists in the area. | 92 |
Sec. 5501.70. As used in sections 5501.70 to 5501.83 of the | 93 |
Revised Code: | 94 |
(A) "Affected jurisdiction" means any unit of government | 95 |
within the state in which all or part of a transportation facility | 96 |
is located or any other public entity directly affected by the | 97 |
transportation facility. | 98 |
(B) "Force majeure" means an uncontrollable force or natural | 99 |
disaster not within the power of the operator or the state. | 100 |
(C) "Maintenance" includes routine maintenance, major | 101 |
maintenance, and any other categories of maintenance that may be | 102 |
designated by the department of transportation. | 103 |
(D) "Material default" means any failure of an operator to | 104 |
perform any duties under a public-private agreement that | 105 |
jeopardizes delivery of adequate service to the public and remains | 106 |
unsatisfied after a reasonable period of time and after the | 107 |
operator has received written notice from the department of the | 108 |
failure. | 109 |
(E) "Operate" means any action to maintain, repair, improve, | 110 |
equip, or modify a transportation facility. | 111 |
(F) "Operator" means a private entity that has entered into a | 112 |
public-private agreement under sections 5501.71 to 5501.83 of the | 113 |
Revised Code. | 114 |
(G) "Private entity" means any natural person, corporation, | 115 |
general partnership, limited liability company, limited | 116 |
partnership, joint venture, business trust, public benefit | 117 |
corporation, nonprofit entity, or other business entity. | 118 |
(H) "Public-private agreement" means the agreement between a | 119 |
private entity and the department that relates to the development, | 120 |
financing, maintenance, or operation of a transportation facility | 121 |
subject to sections 5501.70 to 5501.83 of the Revised Code. | 122 |
(I) "Public-private initiative" means an arrangement between | 123 |
the department and one or more private entities, the terms of | 124 |
which are stated in a public-private agreement, that provides for | 125 |
all of the following: | 126 |
(1) Acceptance of a private contribution, including a money | 127 |
payment, for a project or service for a transportation facility; | 128 |
(2) Sharing of resources and the means of providing a project | 129 |
or service for a transportation facility; | 130 |
(3) Cooperation in researching, developing, and implementing | 131 |
projects or services for a transportation facility. | 132 |
(J) "Transportation facility" has the same meaning as in | 133 |
section 5501.01 of the Revised Code and also includes a tunnel, | 134 |
ferry, port facility on navigable waters that are used for | 135 |
commerce, intermodal facility, or similar facility open to the | 136 |
public and used for the transportation of persons or goods, and | 137 |
any building, structure, parking area, or other appurtenances or | 138 |
property needed to operate a transportation facility that is | 139 |
subject to a public-private agreement. | 140 |
(K) "User fee" means a rate, toll, fee, or other charge | 141 |
established under section 5531.14 of the Revised Code and imposed | 142 |
by an operator for use of all or part of a transportation facility | 143 |
in accordance with that section. | 144 |
(L) "Utility" means a privately, publicly, or cooperatively | 145 |
owned line, facility, or system for producing, transmitting, or | 146 |
distributing communications, cable television, power, electricity, | 147 |
light, heat, gas, oil, crude products, water, steam, waste, storm | 148 |
water not connected with highway drainage, alternative or | 149 |
renewable energy sources such as wind or solar, or any other | 150 |
similar commodity, including a fire or police signal system or | 151 |
street lighting system that directly or indirectly serves the | 152 |
public. | 153 |
Sec. 5501.71. (A) The department of transportation may | 154 |
solicit, receive, consider, evaluate, and accept a proposal for a | 155 |
public-private initiative. | 156 |
(B) In soliciting and selecting a private entity with which | 157 |
to enter into a public-private initiative, the department shall | 158 |
use one or both of the following: | 159 |
(1) Sealed bidding; | 160 |
(2) Selection of proposals, with or without negotiations, | 161 |
based on qualifications, best value, or both. | 162 |
(C) The department shall consider the following factors in | 163 |
evaluating and selecting a bid or proposal to enter into a | 164 |
public-private initiative: | 165 |
(1) The ability of the transportation facility to improve | 166 |
safety, reduce congestion, increase capacity, and promote economic | 167 |
growth; | 168 |
(2) The extent that the private entity's proposal addresses | 169 |
the needs identified in the appropriate state, regional, or local | 170 |
transportation plan by improving safety, reducing congestion, | 171 |
increasing capacity, or enhancing economic efficiency and the | 172 |
private entity's proposal is on the transportation improvement | 173 |
program for the affected metropolitan planning organization or the | 174 |
state transportation improvement program; | 175 |
(3) The proposed cost of and financial plan for the | 176 |
transportation facility; | 177 |
(4) The general reputation, qualifications, industry | 178 |
experience, and financial capacity of the private entity; | 179 |
(5) The proposed design, operation, and feasibility of the | 180 |
transportation facility; | 181 |
(6) Comments from local citizens and affected jurisdictions; | 182 |
(7) Benefits to the public and the affected transportation | 183 |
facility; | 184 |
(8) The safety record of the private entity; | 185 |
(9) Any other criteria that the department considers | 186 |
appropriate. | 187 |
(D) The department may select multiple private entities with | 188 |
which to enter a public-private agreement for a transportation | 189 |
facility if it is in the public interest to do so. | 190 |
(E) The department shall select a private entity or entities | 191 |
for a public-private initiative on a competitive basis. | 192 |
(F) Any materials or data submitted to, made available to, or | 193 |
received by the director of transportation, to the extent that the | 194 |
material or data consist of trade secrets, as defined in section | 195 |
1333.61 of the Revised Code, are confidential and are not public | 196 |
records for the purposes of section 149.43 of the Revised Code. | 197 |
Financial information received by the director that is related to | 198 |
a proposal is confidential and not a public record for purposes of | 199 |
section 149.43 of the Revised Code until such time as a proposal | 200 |
is selected. Prior to submission of a solicited proposal, a | 201 |
private entity may request a review by the department of | 202 |
information that the private entity has identified as | 203 |
confidential, to determine whether such information would be | 204 |
subject to disclosure under section 149.43 of the Revised Code. | 205 |
(G)(1) The department may reimburse a private entity for a | 206 |
portion of the actual costs the entity incurred in submitting a | 207 |
proposal for a public-private initiative that was solicited by the | 208 |
department under this section. When considering the reimbursement | 209 |
of such costs, the director shall describe in the request for | 210 |
proposals for a specific public-private initiative the specific | 211 |
terms and conditions for reimbursing a private entity. The | 212 |
director may include in the terms and conditions a requirement | 213 |
that the private entity execute an agreement to transfer to the | 214 |
department the rights to the use of the work product contained in | 215 |
the proposal in exchange for receiving the reimbursement. | 216 |
(2) The director shall make all decisions related to the | 217 |
reimbursement of a specific private entity and related to the | 218 |
maximum amount of the reimbursement. However, the department shall | 219 |
not reimburse a private entity if that entity enters into the | 220 |
public-private agreement that is the subject of the solicited | 221 |
proposal. The reimbursement of costs under division (G) of this | 222 |
section is exempt from the requirements of Chapter 125. of the | 223 |
Revised Code and sections 127.16 and 127.162 of the Revised Code. | 224 |
(3) Except as otherwise provided in writing by the | 225 |
department, if the solicitation or negotiation process is | 226 |
suspended, discontinued, or terminated, a private entity has no | 227 |
right to reimbursement of any costs associated directly or | 228 |
indirectly with the solicited proposal. | 229 |
Sec. 5501.73. (A) After selecting a solicited or unsolicited | 230 |
proposal for a public-private initiative, the department of | 231 |
transportation shall enter into a public-private agreement for a | 232 |
transportation facility with the selected private entity or any | 233 |
configuration of private entities. An affected jurisdiction may be | 234 |
a party to a public-private agreement entered into by the | 235 |
department and a selected private entity or combination of private | 236 |
entities. | 237 |
(B) A public-private agreement under this section shall | 238 |
provide for all of the following: | 239 |
(1) Planning, acquisition, financing, development, design, | 240 |
construction, reconstruction, replacement, improvement, | 241 |
maintenance, management, repair, leasing, or operation of a | 242 |
transportation facility; | 243 |
(2) Term of the public-private agreement; | 244 |
(3) Type of property interest, if any, the private entity | 245 |
will have in the transportation facility; | 246 |
(4) A specific plan to ensure proper maintenance of the | 247 |
transportation facility throughout the term of the agreement and a | 248 |
return of the facility to the department, if applicable, in good | 249 |
condition and repair; | 250 |
(5) Whether user fees, administrative fees, or other charges | 251 |
will be collected | 252 |
accordance with sections 5531.11 to 5531.18 of the Revised Code | 253 |
and the basis by which such user fees, administrative fees, or | 254 |
other charges shall be determined and modified; | 255 |
(6) Compliance with applicable federal, state, and local | 256 |
laws; | 257 |
(7) Grounds for termination of the public-private agreement | 258 |
by the department or operator; | 259 |
(8) Disposition of the facility upon completion of the | 260 |
agreement; | 261 |
(9) Procedures for amendment of the agreement | 262 |
(10) A contract performance bond in an amount specified by | 263 |
the director of transportation, conditioned upon the private | 264 |
entity performing the work in accordance with the agreed upon | 265 |
terms, within the time prescribed, and in conformance with any | 266 |
other such terms and conditions as are specified by the director; | 267 |
(11) A payment bond in an amount specified by the director, | 268 |
conditioned upon the payment for all labor, work performed, and | 269 |
materials furnished in connection with the agreement and any other | 270 |
such terms and conditions as are specified by the director. | 271 |
(C) A public-private agreement under this section may provide | 272 |
for any of the following: | 273 |
(1) Review and approval by the department of the operator's | 274 |
plans for the development and operation of the transportation | 275 |
facility; | 276 |
(2) Inspection by the department of construction of or | 277 |
improvements to the transportation facility; | 278 |
(3) Maintenance by the operator of a policy of liability | 279 |
insurance or self-insurance; | 280 |
(4) Filing by the operator, on a periodic basis, of | 281 |
appropriate financial statements in a form acceptable to the | 282 |
department; | 283 |
(5) Filing by the operator, on a periodic basis, of traffic | 284 |
reports in a form acceptable to the department; | 285 |
(6) Financing obligations of the operator and the department; | 286 |
(7) Apportionment of expenses between the operator and the | 287 |
department; | 288 |
(8) Rights and duties of the operator, the department, and | 289 |
other state and local governmental entities with respect to use of | 290 |
the transportation facility; | 291 |
(9) Rights and remedies available in the event of default or | 292 |
delay; | 293 |
(10) Terms and conditions of indemnification of the operator | 294 |
by the department; | 295 |
(11) Assignment, subcontracting, or other delegation of | 296 |
responsibilities of the operator or the department under the | 297 |
agreement to third parties, including other private entities and | 298 |
other state agencies; | 299 |
(12) Sale or lease to the operator of private property | 300 |
related to the transportation facility; | 301 |
(13) Traffic enforcement and other policing issues, including | 302 |
any reimbursement by the private entity for such services. | 303 |
(D)(1) The director of transportation may include in any | 304 |
public-private agreement under sections 5501.70 to 5501.83 of the | 305 |
Revised Code a provision authorizing a binding dispute resolution | 306 |
method for any controversy subsequently arising out of the | 307 |
contract. The binding dispute resolution method may proceed only | 308 |
upon agreement of all parties to the controversy. If all parties | 309 |
do not agree to proceed to a binding dispute resolution, a party | 310 |
having a claim against the department shall exhaust its | 311 |
administrative remedies specified in the public-private agreement | 312 |
prior to filing any action against the department in the court of | 313 |
claims. | 314 |
No appeal from the determination of a technical expert lies | 315 |
to any court, except that the court of common pleas of Franklin | 316 |
County may issue an order vacating such a determination upon the | 317 |
application of any party to the binding dispute resolution if any | 318 |
of the following applies: | 319 |
(a) The determination was procured by corruption, fraud, or | 320 |
undue means. | 321 |
(b) There was evidence of partiality or corruption on the | 322 |
part of the technical expert. | 323 |
(c) The technical expert was guilty of misconduct in refusing | 324 |
to postpone the hearing, upon sufficient cause shown, or in | 325 |
refusing to hear evidence pertinent and material to the | 326 |
controversy, or of any other misbehavior by which the rights of | 327 |
any party have been prejudiced. | 328 |
(2) As used in this division, "binding dispute resolution" | 329 |
means a binding determination after review by a technical expert | 330 |
of all relevant items, which may include documents, and by | 331 |
interviewing appropriate personnel and visiting the project site | 332 |
involved in the controversy. "Binding dispute resolution" does not | 333 |
involve representation by legal counsel or advocacy by any person | 334 |
on behalf of any party to the controversy. | 335 |
(E) No public-private agreement entered into under this | 336 |
section shall be construed to transfer to a private entity the | 337 |
director's authority to appropriate property under Chapters 163., | 338 |
5501., and 5519. of the Revised Code. | 339 |
(F) Money collected by the department pursuant to an | 340 |
agreement entered into under this section shall be deposited into | 341 |
the state treasury to the credit of the highway operating fund | 342 |
unless the agreement is related to a toll project under sections | 343 |
5531.11 to 5531.18 of the Revised Code, in which case the money | 344 |
shall be deposited as specified in the agreement. | 345 |
(G) Chapter 5525. of the Revised Code does not apply to | 346 |
public-private agreements under sections 5501.70 to 5501.83 of the | 347 |
Revised Code. | 348 |
Sec. 5501.78. A transportation facility and any tangible | 349 |
personal property used exclusively with a transportation facility | 350 |
that is owned by the department of transportation and leased, | 351 |
licensed, financed, or otherwise conveyed to an operator, or that | 352 |
is acquired, constructed, or otherwise provided by an operator on | 353 |
behalf of the department, is exempt from all ad valorem property | 354 |
taxes and special assessments levied against property by the state | 355 |
or any political subdivision of the state. Building and | 356 |
construction materials that will be incorporated into a | 357 |
transportation facility pursuant to a public-private agreement are | 358 |
exempt from the taxes imposed under Chapters 5739. and 5741. of | 359 |
the Revised Code. | 360 |
Sec. 5531.11. As used in sections 5531.11 to 5531.18 of the | 361 |
Revised Code: | 362 |
(A) "Administrative fee" means a fee imposed by a toll | 363 |
project operator for toll collection, processing, and related | 364 |
activities. | 365 |
(B) "Cost" means all costs of constructing, improving, | 366 |
repairing, maintaining, administering, financing, and operating | 367 |
the Ohio transportation system, including all costs payable with | 368 |
respect to permanent improvements as described in division (B) of | 369 |
section 133.15 of the Revised Code. | 370 |
(C) "Electronic-monitoring system" means any form of | 371 |
electronic or other vehicle sensor or identifying device that | 372 |
automatically produces one or more photographs, one or more | 373 |
microphotographs, a videotape, recorded images, or other form of | 374 |
identifying data of each vehicle at the time it is used or | 375 |
operated on a toll project. | 376 |
(D) "Governmental agency" means any state agency, federal | 377 |
agency, political subdivision, or other local, interstate, or | 378 |
regional governmental agency, and any combination of those | 379 |
agencies. | 380 |
(E) "Highway project" means any project intended for the | 381 |
highway purpose of supporting the state highway system. A highway | 382 |
project, whether publicly or privately owned, is a state | 383 |
infrastructure project as defined in section 5531.10 of the | 384 |
Revised Code for all purposes of that section and section 5531.09 | 385 |
of the Revised Code and also is a transportation facility as | 386 |
defined in section 5501.01 of the Revised Code. | 387 |
| 388 |
389 | |
390 | |
391 | |
392 |
(F) "Motor vehicle certificate of registration issuance | 393 |
prevention order" means, relative to the registered owner of a | 394 |
motor vehicle, an order that prohibits the registrar of motor | 395 |
vehicles and any deputy registrar from doing both of the | 396 |
following: | 397 |
(1) Accepting any application for a new or renewal motor | 398 |
vehicle certificate of registration in the name of the registered | 399 |
owner; | 400 |
(2) Issuing or renewing any motor vehicle certificate of | 401 |
registration for a motor vehicle that utilized a toll project for | 402 |
which the required user fee or associated administrative fee was | 403 |
not paid by the registered owner of that motor vehicle. | 404 |
(G) "Public roads" means all public highways, roads, and | 405 |
streets in the state, whether maintained by a state agency or any | 406 |
other governmental agency. | 407 |
(H) "Public utility facilities" means tracks, pipes, mains, | 408 |
conduits, cables, wires, towers, poles, and other equipment and | 409 |
appliances of any public utility. | 410 |
(I) "Registered owner" means all of the following: | 411 |
(1) Any person or entity identified by the bureau of motor | 412 |
vehicles or any other state motor vehicle bureau, department, or | 413 |
office as the owner of a motor vehicle; | 414 |
(2) The lessee of a motor vehicle pursuant to a lease of six | 415 |
months or longer; | 416 |
(3) The renter of a motor vehicle pursuant to a written | 417 |
rental agreement with a motor vehicle renting dealer. | 418 |
(J) "Revenues" means all nontax revenues coming into the | 419 |
possession of or under the control of the department by virtue of | 420 |
sections 5531.11 to 5531.18 of the Revised Code. "Revenues" does | 421 |
not include proceeds from the sale of obligations but does include | 422 |
423 | |
toll fund established in section 5531.14 of the Revised Code, | 424 |
rentals, gifts, and grants. | 425 |
(K) "Service facilities" means service stations, restaurants, | 426 |
and other facilities for food service, roadside parks and rest | 427 |
areas, parking, camping, tenting, rest, and sleeping facilities, | 428 |
hotels or motels, and all similar and other facilities providing | 429 |
services to the traveling public in connection with the use of a | 430 |
toll project and owned, leased, licensed, or operated by the | 431 |
department
| 432 |
(L) "Service revenues" means those revenues of the department | 433 |
derived from its ownership, leasing, licensing, or operation of | 434 |
service facilities. | 435 |
(M) "State highway system" or "system" means all existing and | 436 |
future transportation projects constructed, operated, repaired, | 437 |
maintained, administered, and operated under the jurisdiction of | 438 |
the department of transportation, including toll projects and | 439 |
highway projects. | 440 |
(N) "Toll project" means any project that adds new capacity, | 441 |
including construction on existing highways, bridges, or tunnels | 442 |
where construction increases the total number of lanes, including | 443 |
toll and nontoll lanes, and does not decrease the total number of | 444 |
nontoll lanes at each mile. "Toll project" also means, subject to | 445 |
division (C) of section 5531.12 of the Revised Code, any project | 446 |
that involves substantial reconstruction, resurfacing, | 447 |
restoration, rehabilitation, or replacement of a toll or toll-free | 448 |
highway, bridge, or tunnel, including an existing highway, bridge, | 449 |
or tunnel, and conversion of the highway, bridge, or tunnel to a | 450 |
toll project; conversion of an existing highway, bridge, or tunnel | 451 |
to a toll project; initial construction of a highway, bridge, or | 452 |
tunnel as a toll project; or conversion of a high occupancy | 453 |
vehicle lane on a highway, bridge, or tunnel to a toll project. | 454 |
"Toll project" also includes new interchanges constructed for | 455 |
economic development purposes connecting an interstate highway or | 456 |
a multi-lane | 457 |
connected previously with other interstates, state highways and | 458 |
local roads, and any new high occupancy lane or new highways | 459 |
connecting an intermodal facility established, constructed, | 460 |
reconstructed, maintained, repaired, administered, operated, or | 461 |
improved, under the jurisdiction of the department
| 462 |
463 | |
sections 5531.11 to 5531.18 of the Revised Code, at a location or | 464 |
locations determined by the director of transportation,
| 465 |
all bridges, tunnels, overpasses, underpasses, interchanges, | 466 |
entrance plazas, approaches, and those portions of connecting | 467 |
public roads that serve interchanges and are determined by the | 468 |
director to be necessary for the safe merging of traffic between | 469 |
the toll project and those nontolled public roads, toll booths, | 470 |
service facilities, and administration, storage, and other | 471 |
buildings, property, and facilities that the department considers | 472 |
necessary for the operation or policing of the toll project, | 473 |
together with all property and rights that may be acquired by the | 474 |
department for the construction, maintenance, repair, | 475 |
administration, improvement, or operation of the toll project | 476 |
477 | |
478 | |
479 | |
480 |
(O) "Toll project operator" means the department or any | 481 |
agency, political subdivision, authority, or other entity that | 482 |
operates a toll project, including a private entity that operates | 483 |
a toll project pursuant to a public-private agreement authorized | 484 |
by sections 5501.70 to 5501.83 of the Revised Code. | 485 |
(P) " | 486 |
487 | |
488 | |
489 | |
490 | |
of a transportation facility, including a toll project. "User fee" | 491 |
also includes any such rate, toll, fee, or other charge imposed by | 492 |
a toll project operator pursuant to a public-private agreement | 493 |
authorized by sections 5501.70 to 5501.83 of the Revised Code. | 494 |
Sec. 5531.12. (A) In order to remove present and anticipated | 495 |
handicaps and potential hazards on the highways in this state, to | 496 |
facilitate vehicular traffic throughout the state, to promote the | 497 |
agricultural, commercial, recreational, tourism, and industrial | 498 |
development of the state, and to provide for the general welfare | 499 |
of its citizens, the director of transportation may approve toll | 500 |
projects. Any revenue derived from toll projects shall be used | 501 |
only for purposes of the toll project, including a toll project or | 502 |
any aspect of a toll project pursuant to a public-private | 503 |
agreement authorized by sections 5501.70 to 5501.83 of the Revised | 504 |
Code, and shall not be expended for any purpose other than as | 505 |
provided in Section 5a of Article XII, Ohio Constitution. The toll | 506 |
projects authorized by sections 5531.11 to 5531.18 of the Revised | 507 |
Code are part of the state highway system. | 508 |
(B) Any toll project shall be developed and submitted for | 509 |
selection in accordance with the policies and procedures of the | 510 |
511 | |
advisory council, created under Chapter 5512. of the Revised Code. | 512 |
Each toll project may be separately designated, by name or number, | 513 |
and may be constructed, improved, or reconstructed as the | 514 |
department of transportation may from time to time determine | 515 |
pursuant to sections 5531.11 to 5531.18 of the Revised Code. A | 516 |
toll project shall be considered a state infrastructure project as | 517 |
defined in section 5531.10 of the Revised Code for all purposes of | 518 |
that section and section 5531.09 of the Revised Code and also is a | 519 |
transportation facility as defined in section 5501.01 of the | 520 |
Revised Code. | 521 |
(C) Nothing in this chapter shall be construed to permit | 522 |
523 | |
This division does not apply to user fees charged for the use of a | 524 |
toll project that consists of the replacement, improvement, | 525 |
rehabilitation, operation, and maintenance of a bridge or system | 526 |
of bridges that carries an interstate freeway over the Ohio river | 527 |
to another state, and for the replacement, improvement, | 528 |
rehabilitation, operation, and maintenance of the roadways that | 529 |
provide ingress to and egress from such a bridge or system of | 530 |
bridges, generally following the route of that interstate freeway. | 531 |
Sec. 5531.13. (A) The director of transportation may acquire | 532 |
or dispose of any public or private property or interests therein | 533 |
that the director determines to be necessary, convenient, or | 534 |
proper for the construction, improvement, repair, maintenance, | 535 |
administration, or operation of toll projects in the same manner | 536 |
as the director may acquire or dispose of such property for | 537 |
transportation facilities or highway purposes, under sections | 538 |
5501.311 to 5501.34 and 5501.45 and Chapter 5519. of the Revised | 539 |
Code. | 540 |
(B) The director may enter into any contracts the director | 541 |
determines to be necessary, convenient, or proper for the | 542 |
construction, improvement, repair, maintenance, administration, or | 543 |
operation of toll projects in the manner provided in Chapter 5525. | 544 |
of the Revised Code or pursuant to a public-private agreement | 545 |
under sections 5501.70 to 5501.83 of the Revised Code. | 546 |
(C) The director may enter into any professional contracts | 547 |
the director determines to be necessary, convenient, or proper for | 548 |
the construction, improvement, repair, maintenance, | 549 |
administration, or operation of toll projects in the manner | 550 |
provided in Chapter 5526. of the Revised Code or pursuant to a | 551 |
public-private agreement under sections 5501.70 to 5501.83 of the | 552 |
Revised Code. | 553 |
(D) | 554 |
established in section 5531.14 of the Revised Code may be used for | 555 |
the acquisition of property under division (A) of this section or | 556 |
pursuant to contracts entered into under division (B) or (C) of | 557 |
this section to the same extent permitted by section 5531.14 of | 558 |
the Revised Code with respect to obligations. | 559 |
Sec. 5531.14. (A) To the extent permitted by federal law, | 560 |
the director of transportation may fix, revise, charge, and | 561 |
collect | 562 |
any person or governmental agency desiring the use of any part | 563 |
thereof, including the right-of-way adjoining the paved portion, | 564 |
for placing thereon telephone, electric light, or power lines, | 565 |
service facilities, or for any other purpose, and fix the terms, | 566 |
conditions, rents, and rates of charge for such use; provided, | 567 |
that no | 568 |
in, on, along, over, or under the toll project, equipment or | 569 |
public utility facilities that are necessary to serve service | 570 |
facilities or to interconnect any public utility facilities. | 571 |
A toll project operator shall display signs that identify the | 572 |
applicable user fees, including fees for motor vehicles that do | 573 |
not have an active, functioning electronic toll collection device | 574 |
registered for and in use in the vehicle. The toll project | 575 |
operator shall erect or otherwise display signs in advance of the | 576 |
toll project at locations that are of distances that are | 577 |
sufficient to notify motor vehicle operators of the opportunity to | 578 |
exit the street or highway on which they are traveling before the | 579 |
street or highway becomes, becomes part of, or otherwise leads to | 580 |
the toll project and for the use of which user fees apply. | 581 |
(B) In accordance with Chapter 119. of the Revised Code, the | 582 |
director shall establish a plan, schedule, or system of | 583 |
fees or charges and shall declare the purpose, amount, and | 584 |
duration of the
| 585 |
implement a | 586 |
include a plan, schedule, or system of tolls or charges that is | 587 |
subject to adjustment by the director within and in accordance | 588 |
with that plan, schedule, or system. | 589 |
| 590 |
591 | |
592 | |
593 | |
594 | |
595 |
| 596 |
597 | |
598 | |
599 |
| 600 |
the Revised Code, also may adopt such additional rules as the | 601 |
director determines necessary for the establishment, collection, | 602 |
and enforcement of user fees and administrative fees, including | 603 |
the purpose, amount, and duration of the fees. | 604 |
(C) One or more user fees, or a portion of any user fees, may | 605 |
be pledged to the repayment of obligations in the bond proceedings | 606 |
for those obligations and shall be a pledged receipt for those | 607 |
obligations to the extent pledged in those bond proceedings. One | 608 |
or more user fees, or a portion of any user fees, also may be | 609 |
pledged to the repayment of obligations under any public-private | 610 |
agreement or related financing as provided in sections 5501.70 to | 611 |
5501.83 of the Revised Code. | 612 |
(D) User fees shall be so fixed and adjusted by the director | 613 |
as to provide funds at least sufficient with other revenues of the | 614 |
Ohio transportation system, if any, to pay all of the following: | 615 |
(1) Any | 616 |
pay costs of one or more toll projects as such charges become due | 617 |
and payable; | 618 |
(2) Together with any other amounts available for such | 619 |
purpose, any obligations under any public-private agreement | 620 |
entered into in connection with a toll project as such amounts | 621 |
become due and payable; | 622 |
(3) The cost of maintaining, improving, repairing, | 623 |
constructing, financing and operating toll projects within the | 624 |
interstate system or the state highway system and its different | 625 |
parts and sections, and to create and maintain any reserves for | 626 |
those purposes. | 627 |
(E) Except as provided in division (F) of this section, money | 628 |
received from
| 629 |
than those received pursuant to a public-private agreement, which | 630 |
shall be deposited in accordance with such agreement, shall be | 631 |
deposited to the credit of the Ohio toll fund, which is hereby | 632 |
created in the state treasury. The treasurer of state may | 633 |
establish separate subaccounts within the Ohio toll fund as | 634 |
determined to be necessary or convenient to pay costs of | 635 |
constructing, improving, repairing, maintaining, administering, | 636 |
and operating toll projects within the state highway system. Any | 637 |
remaining money deposited into the Ohio toll fund shall be used at | 638 |
the discretion of the director to support construction, | 639 |
improvement, repair, maintenance, administration, and operation | 640 |
costs for approved toll projects and highway projects within one | 641 |
mile of a toll project. All investment earnings of the fund shall | 642 |
be credited to the fund. | 643 |
(F) The issuing authority | 644 |
of each fiscal year, shall certify or cause to be certified to the | 645 |
department of transportation and the office of budget and | 646 |
management the total amount of money required during the current | 647 |
fiscal year to meet in full all | 648 |
otherwise comply with the requirements of any applicable bond | 649 |
proceedings and all obligations under any public-private agreement | 650 |
relating to a toll project as provided in sections 5501.70 to | 651 |
5501.83 of the Revised Code. The issuing authority shall make or | 652 |
cause to be made supplemental certifications to the department | 653 |
654 | |
bond service payment date and at such other times during each | 655 |
fiscal year as may be provided in the applicable bond | 656 |
proceeding or public-private agreement or required by that | 657 |
department or office. Bond service charges, costs of credit | 658 |
enhancement facilities, other financing costs, and any other | 659 |
amounts required under the applicable bond proceedings and all | 660 |
amounts required under any applicable public-private agreement | 661 |
shall be set forth separately in each certification. Money | 662 |
received from | 663 |
deposited to the credit of the bond service fund at such times and | 664 |
in such amounts as are necessary to satisfy all those payment | 665 |
requirements of the applicable bond proceedings | 666 |
the credit of any fund established for such purpose under any | 667 |
public-private agreement. At such time that bond service charges | 668 |
on all outstanding bonds issued in connection with any toll | 669 |
project and the interest on the bonds have been paid | 670 |
sufficient amount for the payment of all such bonds and the | 671 |
interest on the bonds to the maturity of the bonds has been set | 672 |
aside in trust for the benefit of the bondholders, as provided in | 673 |
the applicable bond proceedings, and at such time as all amounts | 674 |
due and to become due pursuant to a public-private agreement, | 675 |
which are payable from user fees, have been paid, the project | 676 |
shall be operated, improved, and maintained by the department of | 677 |
transportation as a part of the state highway system and shall be | 678 |
free of | 679 |
Sec. 5531.141. (A) The department of transportation may | 680 |
collect a user fee by utilizing a system of collection that is | 681 |
capable of charging an account holder the appropriate user fee by | 682 |
transmission of information from an electronic toll collection | 683 |
device on a motor vehicle. In addition, for any motor vehicle that | 684 |
does not use an electronic toll collection device, the department | 685 |
may utilize an electronic-monitoring system for user fee | 686 |
collection. | 687 |
(B)(1) If a motor vehicle uses a toll project and the user | 688 |
fee is not paid through an electronic toll collection device or | 689 |
otherwise, the toll project operator first shall use the | 690 |
electronic-monitoring system for the toll project to determine if | 691 |
the registered owner of the motor vehicle has established an | 692 |
account for the payment of the user fee. If such an account has | 693 |
been established, the toll project operator shall charge the | 694 |
account holder the appropriate user fee. If the toll project | 695 |
operator cannot locate an established account, or if the toll | 696 |
project operator locates an established account but the account | 697 |
cannot be charged the appropriate user fee, the toll project | 698 |
operator may send by regular first class mail an invoice for the | 699 |
unpaid user fee. The toll project operator shall include with the | 700 |
invoice the information described in section 5531.143 of the | 701 |
Revised Code. The toll project operator shall send the invoice to | 702 |
the registered owner of the motor vehicle as shown in the records | 703 |
of either of the following: | 704 |
(a) The bureau of motor vehicles; | 705 |
(b) The department, division, bureau, office, or other unit | 706 |
of government of any other state or jurisdiction that is | 707 |
functionally equivalent to the bureau of motor vehicles. | 708 |
(2) With respect to any user fee and any associated | 709 |
administrative fee, the toll project operator, in the toll project | 710 |
operator's sole discretion, may determine not to pursue collection | 711 |
of that user fee or administrative fee or to terminate collection | 712 |
measures in relation to that user fee or administrative fee. | 713 |
Sec. 5531.142. (A) A person or entity that receives an | 714 |
invoice under section 5531.141 of the Revised Code or a late | 715 |
notice under division (C) of this section shall do one of the | 716 |
following: | 717 |
(1) Pay the user fee and any administrative fee set forth in | 718 |
the invoice or late notice directly to the toll project operator | 719 |
within thirty-five days after the date of mailing of the invoice | 720 |
or late notice; | 721 |
(2) File with the toll project operator a notice to contest | 722 |
liability for the unpaid user fee within thirty-five days after | 723 |
the date of the mailing of the invoice or late notice by utilizing | 724 |
the form provided with the invoice or late notice under section | 725 |
5531.143 of the Revised Code; | 726 |
(3) If the registered owner is a motor vehicle leasing dealer | 727 |
or a motor vehicle renting dealer, notify the toll project | 728 |
operator within thirty-five days after the date of mailing of the | 729 |
invoice or late notice of the name and address of the person who | 730 |
was the lessee or renter of the motor vehicle at the time the user | 731 |
fee was incurred. A motor vehicle leasing dealer or a motor | 732 |
vehicle renting dealer that receives an invoice or late notice | 733 |
shall not pay a user fee or any administrative fee and | 734 |
subsequently attempt to collect a fee or assess the lessee or | 735 |
renter a charge in excess of the amount actually paid on behalf of | 736 |
the lessee or renter. | 737 |
(B) Upon receipt of the name and address of the lessee or | 738 |
renter of a motor vehicle provided by a motor vehicle leasing | 739 |
dealer or motor vehicle renting dealer under division (A)(3) of | 740 |
this section, the toll project operator shall send an invoice to | 741 |
the lessee or renter of the motor vehicle as described in section | 742 |
5531.141 of the Revised Code. The toll project operator shall send | 743 |
all subsequent late notices for the unpaid user fees to the lessee | 744 |
or renter, and the motor vehicle renting or leasing dealer has no | 745 |
further liability for unpaid user fees or administrative fees | 746 |
under this chapter. | 747 |
(C) If a registered owner fails to pay or contest an invoice | 748 |
within thirty-five days after the date of mailing of the invoice, | 749 |
the toll project operator may send to the registered owner by | 750 |
regular first class mail a late notice containing the information | 751 |
described in section 5531.143 of the Revised Code. The toll | 752 |
project operator may charge an administrative fee for each late | 753 |
notice, the purpose of which is to enable the toll project | 754 |
operator to recover the expenses of collecting the unpaid user | 755 |
fee. The director of transportation shall establish the amount of | 756 |
the administrative fee by rule. | 757 |
Sec. 5531.143. A toll project operator shall include with | 758 |
each invoice and late notice all of the following: | 759 |
(A) The registered owner's name and current known address; | 760 |
(B) Descriptions and amounts of all user fees and | 761 |
administrative fees assessed; | 762 |
(C) A request for payment within thirty-five days after the | 763 |
date of mailing of such invoice or late notice; | 764 |
(D) A warning of the potential consequences for failing to | 765 |
pay the total amount due as indicated in such invoice or late | 766 |
notice, including additional fees and penalties, potential court | 767 |
summons, and inability to renew motor vehicle registrations; | 768 |
(E) Information for disputing the invoice or late notice and | 769 |
a form that a person may use to file a notice to contest liability | 770 |
for a user fee or administrative fee; | 771 |
(F) Contact information for the customer service center for | 772 |
the applicable toll project; and | 773 |
(G) Information about obtaining an electronic toll collection | 774 |
device and establishing an electronic toll collection account. | 775 |
Sec. 5531.144. (A) The registered owner of a motor vehicle | 776 |
that utilizes a toll project is liable for payment of the | 777 |
applicable user fee. | 778 |
(B)(1) If the registered owner, in response to an invoice | 779 |
mailed to the registered owner under section 5531.141 of the | 780 |
Revised Code or a late notice mailed under section 5531.142 of the | 781 |
Revised Code, submits a notice to contest liability for the user | 782 |
fee or any administrative fee, the toll project operator shall | 783 |
schedule a hearing at which the registered owner may contest | 784 |
liability for the user fee or administrative fee. The toll project | 785 |
operator shall send written notice by regular first class mail to | 786 |
the registered owner listing the time and date of the hearing. A | 787 |
hearing officer of the toll project operator shall preside over | 788 |
the hearing and shall hold the hearing not later than thirty-five | 789 |
days after the date of mailing of the hearing notice. The hearing | 790 |
officer shall conduct the hearing at a location within the county | 791 |
in which the toll project is located. The registered owner may | 792 |
present evidence at the hearing as to the reasons why the | 793 |
registered owner is not liable for payment of the user fee or | 794 |
administrative fee. | 795 |
At the hearing, the hearing officer shall determine if the | 796 |
registered owner is liable for the payment of any user fee or | 797 |
administrative fee. | 798 |
(2) Upon a finding by the hearing officer that the registered | 799 |
owner is not liable for payment of the user fee or administrative | 800 |
fee, the hearing officer shall enter that finding into the records | 801 |
of the toll project operator and cancel the invoice. | 802 |
(3) If the hearing officer finds that the registered owner is | 803 |
liable for payment of the user fee or any administrative fee, the | 804 |
hearing officer shall enter that finding into the records of the | 805 |
toll project operator. If payment in full is not made upon | 806 |
completion of the hearing, the hearing officer shall notify the | 807 |
registrar of motor vehicles of the hearing officer's decision that | 808 |
the registered owner is liable for payment of the user fee or any | 809 |
administrative fee. The hearing officer also shall include with | 810 |
the notification to the registrar a motor vehicle certificate of | 811 |
registration issuance prevention order. The hearing officer shall | 812 |
give the registered owner a copy of the order. The order remains | 813 |
in effect until the toll project operator notifies the registrar | 814 |
that all unpaid user fees and administrative fees have been paid | 815 |
in full. | 816 |
If the hearing officer finds that the registered owner is | 817 |
liable for payment of the user fee or any administrative fee and | 818 |
the registered owner resides in another state, the hearing officer | 819 |
shall send notice of the hearing officer's decision to the | 820 |
department, division, bureau, office, or other unit of government | 821 |
that is functionally equivalent to the bureau of motor vehicles. | 822 |
The hearing officer shall include with the notice the registration | 823 |
prevention order, which shall have the same effect in another | 824 |
state or jurisdiction as in this state. | 825 |
(4) If the registered owner does not pay all unpaid user fees | 826 |
and administrative fees within thirty-five days after the date of | 827 |
the hearing officer's decision that the registered owner is liable | 828 |
for payment of such fees, and the registered owner does not file | 829 |
an appeal described in division (C) of this section within that | 830 |
same thirty-five-day time period, the toll project operator may | 831 |
file a civil suit against the registered owner in the municipal | 832 |
court or county court having jurisdiction over the location of the | 833 |
toll project as provided in section 5531.146 of the Revised Code. | 834 |
(C)(1) The registered owner may appeal an adverse finding by | 835 |
the hearing officer to the municipal court or county court having | 836 |
jurisdiction over the location of the toll project within | 837 |
thirty-five days after the date of the hearing officer's decision | 838 |
that the registered owner is liable for payment of such fees. If | 839 |
the registered owner fails to file an appeal with the municipal | 840 |
court or county court within that time period, the registered | 841 |
owner is considered to have waived the registered owner's right to | 842 |
appeal the decision of the hearing officer. After that time period | 843 |
has expired, the toll project operator may file a civil suit | 844 |
against the registered owner in the municipal court or county | 845 |
court having jurisdiction over the location of the toll project as | 846 |
provided in section 5531.146 of the Revised Code. | 847 |
Upon the filing of a timely appeal by the registered owner, | 848 |
the clerk of the municipal court or county court shall notify the | 849 |
registrar of the filing of the appeal by the registered owner. The | 850 |
motor vehicle certificate of registration issuance prevention | 851 |
order is automatically stayed pending the results of the appeal in | 852 |
the municipal court or county court. | 853 |
(2) At the appeal hearing, the municipal court or county | 854 |
court shall determine whether the registered owner is liable for | 855 |
the payment of any user fee or administrative fee. If the court | 856 |
finds that the registered owner is not liable for payment of the | 857 |
user fee or administrative fee, the court shall issue a ruling to | 858 |
that effect and cancel the invoice. The toll project operator | 859 |
immediately shall inform the registrar of the ruling and shall | 860 |
direct the registrar to cancel the motor vehicle certificate of | 861 |
registration issuance prevention order issued under division | 862 |
(B)(3) of this section. | 863 |
If the court finds that the registered owner is liable for | 864 |
payment of the user fee or any administrative fee, the court shall | 865 |
issue a ruling to that effect. If the court issues such a ruling | 866 |
and payment in full is not made to the toll project operator upon | 867 |
completion of the appeal hearing, the toll project operator shall | 868 |
inform the registrar of motor vehicles of the ruling and the | 869 |
failure by the registered owner to make payment in full. In that | 870 |
circumstance, the stay of the motor vehicle certificate of | 871 |
registration issuance prevention order described in division | 872 |
(C)(1) of this section terminates and the order becomes effective. | 873 |
In addition, if the registered owner fails to pay in full the user | 874 |
fee and any administrative fee within thirty-five days after the | 875 |
date the court issues the ruling, the toll project operator may | 876 |
file a civil suit against the registered owner in the municipal | 877 |
court or county court having jurisdiction over the location of the | 878 |
toll project as provided in section 5531.146 of the Revised Code. | 879 |
If, upon completion of the appeal hearing, the registered | 880 |
owner makes payment in full to the toll project operator of all | 881 |
user fees and administrative fees that the court ruled the | 882 |
registered owner was liable for payment, the toll project operator | 883 |
shall inform the registrar of motor vehicles of the ruling and the | 884 |
payment in full by the registered owner and direct the registrar | 885 |
to cancel the motor vehicle certificate of registration issuance | 886 |
prevention order. | 887 |
(D) If the registered owner fails to pay an invoice and any | 888 |
administrative fee and fails to submit a notice to contest | 889 |
liability for any of those fees within thirty-five days after the | 890 |
date of mailing of the invoice, the toll project operator may send | 891 |
a late notice to the registered owner as provided in division (C) | 892 |
of section 5531.142 of the Revised Code. If, in response to the | 893 |
late notice, the registered owner submits a notice to contest | 894 |
liability for the user fee and any administrative fee within | 895 |
thirty-five days after the date of mailing of the late notice, the | 896 |
toll project operator shall schedule and hold a hearing as | 897 |
described in division (B)(1) of this section. Divisions (B)(2), | 898 |
(3), and (4) and (C)(1) and (2) of this section apply to such a | 899 |
hearing. | 900 |
Sec. 5531.145. (A) If the toll project operator sends a late | 901 |
notice to the registered owner and the registered owner, within | 902 |
thirty-five days after the date of mailing of the late notice, | 903 |
fails to pay the user fee and any administrative fee contained in | 904 |
the late notice and fails to submit a notice to contest liability | 905 |
for any of those fees, the toll project operator may do either of | 906 |
the following: | 907 |
(1) Issue a motor vehicle certificate of registration | 908 |
issuance prevention order to the registrar of motor vehicles and | 909 |
send a copy of the order to the registered owner. If the | 910 |
registered owner resides in another state or jurisdiction, the | 911 |
toll project operator shall send the order to the department, | 912 |
division, bureau, office, or other unit of government that is | 913 |
functionally equivalent to the bureau of motor vehicles. The order | 914 |
shall have the same effect in another state or jurisdiction as in | 915 |
this state. | 916 |
(2) File a civil suit against the registered owner in the | 917 |
municipal court or county court having jurisdiction over the | 918 |
location of the toll project as provided in section 5531.146 of | 919 |
the Revised Code. | 920 |
(B) If the toll project operator sends a motor vehicle | 921 |
certificate of registration issuance prevention order to the | 922 |
registrar under division (A)(1) of this section, the registered | 923 |
owner may file a request for a hearing in the municipal court or | 924 |
county having jurisdiction over the location of the toll project | 925 |
within thirty-five days after the date the toll project operator | 926 |
sends the order to the registrar. The order shall remain in effect | 927 |
pending the results of the hearing in the municipal court or | 928 |
county court. If the registered owner fails to file an appeal with | 929 |
the municipal court or county court within that thirty-five-day | 930 |
period, the registered owner is considered to have waived the | 931 |
registered owner's right to appeal the issuance of the motor | 932 |
vehicle certificate of registration issuance prevention order. The | 933 |
toll project operator may file a civil suit against the registered | 934 |
owner in the municipal court or county court having jurisdiction | 935 |
over the location of the toll project as provided in section | 936 |
5531.146 of the Revised Code. | 937 |
(C)(1) If an appeal hearing is requested under division (B) | 938 |
of this section, the municipal court or county court shall | 939 |
determine whether the registered owner is liable for the payment | 940 |
of any user fee or administrative fee and whether the issuance by | 941 |
the toll project operator of the motor vehicle certificate of | 942 |
registration issuance prevention order was valid. If the court | 943 |
finds that the registered owner is not liable for payment of the | 944 |
user fee or administrative fee, the court shall issue a ruling to | 945 |
that effect and dismiss the late notice. The toll project operator | 946 |
immediately shall inform the registrar of the ruling and shall | 947 |
direct the registrar to cancel the motor vehicle certificate of | 948 |
registration issuance prevention order issued under division | 949 |
(A)(1) of this section. | 950 |
(2) If the court finds that the registered owner is liable | 951 |
for payment of the user fee or any administrative fee and that the | 952 |
issuance by the toll project operator of the motor vehicle | 953 |
certificate of registration issuance prevention order was valid, | 954 |
the court shall issue a ruling to that effect. If the court issues | 955 |
such a ruling and payment in full is not made to the toll project | 956 |
operator upon completion of the appeal hearing, the toll project | 957 |
operator shall inform the registrar of motor vehicles of the | 958 |
ruling and the failure by the registered owner to make payment in | 959 |
full, and the motor vehicle certificate of registration issuance | 960 |
prevention order issued under division (A)(1) of this section | 961 |
remains in effect. | 962 |
(3) If the court finds that the registered owner is liable | 963 |
for payment of the user fee or any administrative fee but the | 964 |
issuance by the toll project operator of the motor vehicle | 965 |
certificate of registration issuance prevention order was not | 966 |
valid, the court shall issue a ruling to that effect. If the court | 967 |
issues such a ruling, the toll project operator shall inform the | 968 |
registrar of the ruling and direct the registrar to cancel the | 969 |
motor vehicle certificate of registration issuance prevention | 970 |
order. The registered owner remains liable for payment of the user | 971 |
fee or any administrative fee. The toll project operator may | 972 |
reissue the motor vehicle certificate of registration issuance | 973 |
prevention order. If the toll project operator reissues the order, | 974 |
the registered owner may appeal the order as provided in division | 975 |
(B) of this section. | 976 |
(4) If, upon completion of the appeal hearing, the registered | 977 |
owner pays in full to the toll project operator all user fees and | 978 |
administrative fees for which the court ruled the registered owner | 979 |
was liable, the toll project operator shall inform the registrar | 980 |
of the ruling and the payment in full by the registered owner. The | 981 |
toll project operator also shall direct the registrar to cancel | 982 |
the motor vehicle certificate of registration issuance prevention | 983 |
order. | 984 |
(5) If the court rules under division (C)(2) or (3) of this | 985 |
section that the registered owner is liable for payment of the | 986 |
user fee or any administrative fee, and the registered owner does | 987 |
not pay all such fees within thirty-five days after the court | 988 |
issues the ruling, the toll project operator may file a civil suit | 989 |
against the registered owner in the municipal court or county | 990 |
court having jurisdiction over the location of the toll project as | 991 |
provided in section 5531.146 of the Revised Code. | 992 |
(D) At any time after a toll project operator issues an order | 993 |
under division (A)(1) of this section, the registered owner may | 994 |
pay all user fees and administrative fees owed to the toll project | 995 |
operator. If such payment is made, the toll project operator shall | 996 |
inform the registrar of the payment and shall direct the registrar | 997 |
to cancel the motor vehicle certificate of registration prevention | 998 |
order. | 999 |
Sec. 5531.146. (A)(1) As provided in sections 5531.144 and | 1000 |
5531.145 of the Revised Code, a toll project operator may file a | 1001 |
civil suit against a registered owner in the municipal court or | 1002 |
county court having jurisdiction over the location of the toll | 1003 |
project. The toll project operator also shall file all related | 1004 |
documentation and information described in section 5531.143 of the | 1005 |
Revised Code with the clerk of the municipal court or county | 1006 |
court. | 1007 |
Except as otherwise provided in division (A)(2) of this | 1008 |
section, the toll project operator shall not file such a suit | 1009 |
earlier than thirty-five days after the date of mailing of a late | 1010 |
notice to the registered owner. | 1011 |
(2) In a circumstance in which a registered owner is liable | 1012 |
for multiple user fees and any associated administrative fees | 1013 |
involving one or more motor vehicles, the toll project operator | 1014 |
may file a civil suit addressing all such user fees and | 1015 |
administrative fees; provided, no such suit shall include fees | 1016 |
incurred more than one hundred twenty-five days prior to the date | 1017 |
of filing of such suit. | 1018 |
(3) The clerk of the municipal court or county court shall | 1019 |
execute a summons regarding a suit filed under division (A)(1) of | 1020 |
this section by sending a copy of the summons in accordance with | 1021 |
the rules of civil procedure to the address of the registered | 1022 |
owner of the vehicle as shown in the records of the bureau of | 1023 |
motor vehicles, as identified and provided by a motor vehicle | 1024 |
leasing dealer or motor vehicle renting dealer, or as shown in the | 1025 |
records of the department, division, bureau, office, or other unit | 1026 |
of government of any other state or jurisdiction that is | 1027 |
functionally equivalent to the bureau of motor vehicles. The | 1028 |
issuance of such a summons constitutes sufficient notice to the | 1029 |
registered owner. | 1030 |
The summons shall compel the appearance of the registered | 1031 |
owner to appear in the municipal court or county court, and shall | 1032 |
include notice of the time and place of the trial as well as the | 1033 |
potential civil penalty and costs for such violation. The summons | 1034 |
also shall include a statement that the registered owner's motor | 1035 |
vehicle utilized a toll project and therefore the registered owner | 1036 |
incurred liability for payment of the applicable user fee as | 1037 |
provided in division (A) of section 5531.144 of the Revised Code | 1038 |
and also shall list the Revised Code citation for that section. | 1039 |
The summons constitutes sufficient notice to the registered owner | 1040 |
that the vehicle was used on a toll project and, as a result, the | 1041 |
registered owner is liable for payment of the user fee. | 1042 |
(B) Proof that a motor vehicle utilized a toll project and | 1043 |
therefore the registered owner of the motor vehicle is liable for | 1044 |
payment of the applicable user fee shall be evidenced by either or | 1045 |
both of the following: | 1046 |
(1) Information and documentation obtained from an | 1047 |
electronic-monitoring system or electronic toll collection system; | 1048 |
(2) A certificate confirming the identification of the | 1049 |
vehicle issued by a toll project operator that is based on an | 1050 |
inspection of photographs, microphotographs, videotapes, other | 1051 |
recorded images or identifying data produced by an | 1052 |
electronic-monitoring system, or through electronic data collected | 1053 |
by an electronic toll collection system. | 1054 |
The certificate and the documentation attached thereto are | 1055 |
prima facie evidence of the facts contained therein. The court | 1056 |
shall ensure that the certificate and any photographs, | 1057 |
microphotographs, videotapes, or other recorded images or | 1058 |
electronic data evidencing liability for payment of the applicable | 1059 |
user fee are available for inspection in any proceeding to | 1060 |
adjudicate the liability for payment of the user fee. | 1061 |
(C)(1) A registered owner is not liable for a user fee and it | 1062 |
is a complete defense to a cause of action asserting such | 1063 |
liability if within thirty-five days after the mailing of the | 1064 |
invoice, late notice, or a summons, the registered owner of the | 1065 |
motor vehicle produces for the toll project operator or the court | 1066 |
a certified copy of a report of a law enforcement agency showing | 1067 |
both of the following: | 1068 |
(a) The motor vehicle had been reported stolen prior to the | 1069 |
time that the motor vehicle utilized the toll project. | 1070 |
(b) The motor vehicle had remained stolen at the time of the | 1071 |
alleged violation. | 1072 |
(2) The court shall dismiss the case against a registered | 1073 |
owner when divisions (C)(1)(a) and (b) apply. | 1074 |
(D) The toll project operator may offer to the registered | 1075 |
owner the option to pay the unpaid user fee and any administrative | 1076 |
fee, as specified in the summons, plus a reduced civil penalty, | 1077 |
provided that the registered owner actually pays to the toll | 1078 |
project operator the entire amount so calculated not less than | 1079 |
fourteen days prior to the scheduled trial date. The toll project | 1080 |
operator shall establish a schedule for reduced civil penalties | 1081 |
that are offered to registered owners pursuant to this division, | 1082 |
and the toll project operator shall adhere to the schedule when | 1083 |
making such offers. The toll project operator may revise the | 1084 |
schedule from time to time as the toll project operator determines | 1085 |
necessary. | 1086 |
If the registered owner accepts the offer and the toll | 1087 |
project operator receives the entire amount not less than fourteen | 1088 |
days prior to the scheduled trial date, the toll project operator | 1089 |
shall move the court, not less than five business days prior to | 1090 |
the trial date, to dismiss the summons issued to the registered | 1091 |
owner. Upon such a motion, the court shall dismiss the summons and | 1092 |
dismiss the case. | 1093 |
(E)(1) Upon a finding by the municipal court or county court | 1094 |
that the registered owner is liable for payment of the user fee as | 1095 |
provided in division (A) of section 5531.144 of the Revised Code, | 1096 |
the court shall order the registered owner to pay all applicable | 1097 |
court costs, user fees due, and administrative fees. The court | 1098 |
also shall impose a civil penalty upon the registered owner, as | 1099 |
follows: | 1100 |
(a) For a first instance, as shown in the records of the toll | 1101 |
project operator, in which the registered owner was liable for | 1102 |
payment of a user fee and the registered owner did not pay the | 1103 |
user fee and did not submit a timely notice to contest the user | 1104 |
fee and the toll project operator sent both an invoice and a late | 1105 |
notice to the registered owner, seventy-five dollars; | 1106 |
(b) For a second instance as described in division (E)(1)(a) | 1107 |
of this section within one year of a first such instance, one | 1108 |
hundred fifty dollars; | 1109 |
(c) For a third instance as described in division (E)(1)(a) | 1110 |
of this section within two years of a second such instance, two | 1111 |
hundred fifty dollars; | 1112 |
(d) For a fourth or subsequent instance as described in | 1113 |
division (E)(1)(a) of this section within three years of a third | 1114 |
such instance, five hundred dollars. | 1115 |
(2) The clerk of the municipal court or county court shall | 1116 |
pay all user fees, administrative fees, and penalties the court | 1117 |
assesses and collects under this section to the department of | 1118 |
transportation for deposit into the state treasury to the credit | 1119 |
of the highway operating fund or for payment by the department in | 1120 |
accordance with a public-private agreement pursuant to sections | 1121 |
5501.70 to 5501.83 of the Revised Code. | 1122 |
(F)(1) Upon a finding by a court that the registered owner is | 1123 |
liable for payment of a user fee as provided in division (A) of | 1124 |
section 5531.144 of the Revised Code, the court shall issue a | 1125 |
motor vehicle certificate of registration issuance prevention | 1126 |
order. The order shall remain in effect until the court has | 1127 |
notified the registrar that all unpaid user fees, administrative | 1128 |
fees, and civil penalties have been paid in full and the court has | 1129 |
issued a new order rescinding its previous order. The registrar | 1130 |
and all deputy registrars shall comply with the order. | 1131 |
(2) If the registered owner resides in another state or | 1132 |
jurisdiction, the court shall issue a motor vehicle certificate of | 1133 |
registration issuance prevention order and send a copy of the | 1134 |
order to the department, division, bureau, office, or other unit | 1135 |
of government of another state or jurisdiction that is | 1136 |
functionally equivalent to the bureau of motor vehicles for | 1137 |
enforcement in that other state or jurisdiction. The order shall | 1138 |
have the same effect in another state or jurisdiction as in this | 1139 |
state. | 1140 |
(G)(1) A civil penalty imposed pursuant to this section shall | 1141 |
not be made part of the driving record of the person upon whom | 1142 |
such civil penalty is imposed, nor shall it be considered in any | 1143 |
manner for insurance purposes in the provision of motor vehicle | 1144 |
insurance coverage. | 1145 |
(2) No person shall be subject to both this section and to | 1146 |
criminal prosecution under any provision of the Revised Code or | 1147 |
any rule adopted thereunder for nonpayment of user fees or related | 1148 |
administrative fees. | 1149 |
Sec. 5531.147. A toll project operator shall not initiate | 1150 |
collection procedures that are regulated by federal law against a | 1151 |
registered owner in any of the following circumstances: | 1152 |
(A) During the thirty-five-day period after the date of | 1153 |
mailing of an invoice or a late notice to the registered owner; | 1154 |
(B) The registered owner has timely submitted a notice to | 1155 |
contest liability for a user fee or any administrative fee to the | 1156 |
toll project operator. The toll project operator may initiate | 1157 |
collection procedures that are regulated by federal law against | 1158 |
such a registered owner if, at the hearing conducted by the | 1159 |
hearing officer described in section 5533.144 of the Revised Code, | 1160 |
the hearing officer finds that the registered owner is liable for | 1161 |
payment of the user fee or administrative fee at issue and the | 1162 |
registered owner does not pay the fee at issue in full within | 1163 |
thirty-five days after the hearing officer makes the finding. | 1164 |
(C) The registered owner has filed a request for an appeal | 1165 |
hearing with the municipal court or county court having | 1166 |
jurisdiction over the location of the toll project. The toll | 1167 |
project operator may initiate collection procedures that are | 1168 |
regulated by federal law against such a registered owner if, at | 1169 |
the appeal hearing conducted by the municipal court or county | 1170 |
court described in section 5533.144 of the Revised Code, the court | 1171 |
finds that the registered owner is liable for payment of the user | 1172 |
fee or administrative fee at issue and the registered owner does | 1173 |
not pay the fee at issue in full within thirty-five days after the | 1174 |
court issues a ruling to that effect. | 1175 |
(D) The toll project operator has filed a civil suit against | 1176 |
the registered owner in the municipal court or county court having | 1177 |
jurisdiction over the location of the toll project. | 1178 |
Sec. 5531.148. (A) A toll project operator may enter into an | 1179 |
agreement with the bureau of motor vehicles and the department, | 1180 |
division, bureau, office, or other unit of government of any other | 1181 |
state or jurisdiction that is functionally equivalent to the | 1182 |
bureau of motor vehicles to obtain motor vehicle owner and | 1183 |
registration information that is necessary to conduct electronic | 1184 |
toll collection and electronic monitoring. | 1185 |
(B)(1) A toll project operator shall ensure that information | 1186 |
collected by an electronic toll collection device, an | 1187 |
electronic-monitoring system in conjunction with an electronic | 1188 |
toll collection system, or under division (A) of this section is | 1189 |
limited solely to that information that is necessary for the | 1190 |
collection of unpaid user fees and administrative fees; necessary | 1191 |
to establish liability of the registered owner of a motor vehicle | 1192 |
for payment of a user fee as provided in division (A) of section | 1193 |
5531.144 of the Revised Code; or necessary in any proceeding to | 1194 |
establish or confirm such liability. | 1195 |
(2) A toll project operator shall ensure that all images or | 1196 |
other data collected by an electronic toll collection device, an | 1197 |
electronic-monitoring system, or under division (A) of this | 1198 |
section are: | 1199 |
(a) Maintained in a protected database with security that is | 1200 |
at least comparable to the security used for databases operated by | 1201 |
the department of transportation; | 1202 |
(b) Used solely for the collection of unpaid user fees and | 1203 |
administrative fees. | 1204 |
(3) All of the following apply to the images and other data | 1205 |
described in division (B)(2) of this section: | 1206 |
(a) The images and other data are not public records under | 1207 |
section 149.43 of the Revised Code. | 1208 |
(b) A toll project operator or any other person shall not | 1209 |
sell or use the images and data for sales, solicitation, or | 1210 |
marketing purposes. Division (B)(3)(b) of this section does not | 1211 |
prohibit the department of transportation or the toll project | 1212 |
operator from using the images and data to facilitate collection | 1213 |
or payment of user fees and administrative fees. | 1214 |
(c) A toll project operator or any other person shall not | 1215 |
disclose the images and data to any other entity except to a | 1216 |
registered owner who contests liability for and challenges the | 1217 |
imposition of a user fee or administrative fee; or except as may | 1218 |
be necessary for the collection of unpaid user fees or | 1219 |
administrative fees. | 1220 |
(d) The images and data shall not be used in any court in a | 1221 |
pending action or proceeding except upon an order from a court of | 1222 |
competent jurisdiction or unless the action or proceeding relates | 1223 |
to the liability of the registered owner of a motor vehicle for | 1224 |
payment of a user fee as provided in division (A) of section | 1225 |
5531.144 of the Revised Code. | 1226 |
(4)(a) Except as otherwise provided in this section, a toll | 1227 |
project operator shall not retain any images or other data | 1228 |
collected by an electronic toll collection device, an | 1229 |
electronic-monitoring system, or under division (A) of this | 1230 |
section and shall purge, write over, or otherwise eliminate, from | 1231 |
existence the images or other data not later than one hundred | 1232 |
eighty days after the collection of any unpaid user fees or | 1233 |
administrative fees. Upon request from the director of | 1234 |
transportation, any entity operating an electronic toll collection | 1235 |
system or electronic-monitoring system in conjunction with an | 1236 |
electronic toll collection system shall certify compliance with | 1237 |
this section and, upon request, shall make all records pertaining | 1238 |
to such system available for inspection and audit by the director | 1239 |
or the director's designee. | 1240 |
(b) No entity operating an electronic toll collection system | 1241 |
or electronic-monitoring system in conjunction with an electronic | 1242 |
toll collection system shall fail to certify compliance with this | 1243 |
section or fail, upon request, to make all records pertaining to | 1244 |
such system available for inspection and audit by the director or | 1245 |
the director's designee. | 1246 |
(5) Whoever violates division (B)(4)(b) of this section is | 1247 |
guilty of a minor misdemeanor on a first offense and a misdemeanor | 1248 |
of the fourth degree on each subsequent offense. | 1249 |
Sec. 5531.149. The director of transportation may enter into | 1250 |
an agreement with the department, division, bureau, office, or | 1251 |
other unit of government of any other state or jurisdiction that | 1252 |
is functionally equivalent to the department of transportation or | 1253 |
the bureau of motor vehicles for the purpose of enforcing sections | 1254 |
5531.11 to 5531.18 of the Revised Code with respect to the | 1255 |
registered owner of a motor vehicle that is titled or registered | 1256 |
in such other state or jurisdiction and utilizes a toll project. | 1257 |
The agreement may provide for the denial in such other state or | 1258 |
jurisdiction of the issuance of a new or renewal motor vehicle | 1259 |
certificate of registration in the name of that person and the | 1260 |
denial of any motor vehicle certificate of registration for the | 1261 |
motor vehicle that utilized a toll project for which the required | 1262 |
user fee or associated administrative fee was not paid by the | 1263 |
registered owner. | 1264 |
Sec. 5531.15. (A) The director of transportation, in | 1265 |
accordance with Chapter 119. of the Revised Code, may adopt such | 1266 |
rules as the director considers advisable for the control and | 1267 |
regulation of traffic on any toll project, for the protection and | 1268 |
preservation of property under the jurisdiction and control of the | 1269 |
department of transportation, for the maintenance and preservation | 1270 |
of good order within the property under its control, and for the | 1271 |
purpose of establishing owner or operator liability for failure to | 1272 |
comply with toll collection rules. | 1273 |
(B) The rules shall provide that | 1274 |
of the following persons shall be afforded ready access, while in | 1275 |
the performance of their official duties, to all property under | 1276 |
the jurisdiction of the department of transportation and without | 1277 |
the payment of | 1278 |
(1) Public police officers; | 1279 |
(2) Operators of municipal, township, county, and state | 1280 |
maintenance vehicles; | 1281 |
(3) Operators of United States military vehicles traveling in | 1282 |
a convoy; | 1283 |
(4) Operators of official emergency response vehicles. | 1284 |
(C) No person shall violate any such rules of the department | 1285 |
of transportation. | 1286 |
(D)(1) All fines collected for the violation of applicable | 1287 |
laws of the state and the rules of the department of | 1288 |
transportation or money arising from bonds forfeited for such | 1289 |
violation shall be disposed of in accordance with section 5503.04 | 1290 |
of the Revised Code. | 1291 |
(2) All fees or charges assessed by the department of | 1292 |
transportation in accordance with this section against an owner or | 1293 |
operator of a vehicle as a civil violation for failure to comply | 1294 |
with toll collection rules shall be revenues of the department. | 1295 |
Sec. 5531.16. (A) Each toll project shall be maintained and | 1296 |
kept in good condition and repair by the department of | 1297 |
transportation or in accordance with the terms of a public-private | 1298 |
agreement pursuant to sections 5501.70 to 5501.83 of the Revised | 1299 |
Code. Toll projects shall be operated by toll collectors and other | 1300 |
employees and agents that the department employs or contracts for. | 1301 |
Toll projects shall be policed by the state highway patrol in | 1302 |
accordance with section 5503.02 of the Revised Code; provided, | 1303 |
that the state highway patrol also shall enforce all rules of the | 1304 |
department adopted under division (A) of section 5531.15 of the | 1305 |
Revised Code that relate to the operation and use of vehicles on a | 1306 |
toll project and that are punishable under division (A) of section | 1307 |
5531.99 of the Revised Code. | 1308 |
(B) An action for damages against the state for any public or | 1309 |
private property damaged or destroyed in carrying out the powers | 1310 |
granted by sections 5531.11 to 5531.18 of the Revised Code shall | 1311 |
be filed in the court of claims pursuant to Chapter 2743. of the | 1312 |
Revised Code. | 1313 |
(C) All governmental agencies may lease, lend, grant, or | 1314 |
convey to the department of transportation at its request, upon | 1315 |
terms that the proper authorities of the governmental agencies | 1316 |
consider reasonable and fair and without the necessity for an | 1317 |
advertisement, order of court, or other action or formality, other | 1318 |
than the regular and formal action of the authorities concerned, | 1319 |
any property that is necessary or convenient to the effectuation | 1320 |
of the purposes of sections 5531.11 to 5531.18 of the Revised | 1321 |
Code, including public roads and other property already devoted to | 1322 |
public use. | 1323 |
(D) Each bridge constituting part of a toll project shall be | 1324 |
considered a bridge on the state highway system for purposes of | 1325 |
sections 5501.47 and 5501.49 of the Revised Code. | 1326 |
(E) In accordance with Chapter 5501. of the Revised Code, the | 1327 |
department of transportation shall make an annual report of its | 1328 |
toll project activities for the preceding calendar year to the | 1329 |
governor and the general assembly. | 1330 |
Sec. 5739.02. For the purpose of providing revenue with | 1331 |
which to meet the needs of the state, for the use of the general | 1332 |
revenue fund of the state, for the purpose of securing a thorough | 1333 |
and efficient system of common schools throughout the state, for | 1334 |
the purpose of affording revenues, in addition to those from | 1335 |
general property taxes, permitted under constitutional | 1336 |
limitations, and from other sources, for the support of local | 1337 |
governmental functions, and for the purpose of reimbursing the | 1338 |
state for the expense of administering this chapter, an excise tax | 1339 |
is hereby levied on each retail sale made in this state. | 1340 |
(A)(1) The tax shall be collected as provided in section | 1341 |
5739.025 of the Revised Code. The rate of the tax shall be five | 1342 |
and three-fourths per cent. The tax applies and is collectible | 1343 |
when the sale is made, regardless of the time when the price is | 1344 |
paid or delivered. | 1345 |
(2) In the case of the lease or rental, with a fixed term of | 1346 |
more than thirty days or an indefinite term with a minimum period | 1347 |
of more than thirty days, of any motor vehicles designed by the | 1348 |
manufacturer to carry a load of not more than one ton, watercraft, | 1349 |
outboard motor, or aircraft, or of any tangible personal property, | 1350 |
other than motor vehicles designed by the manufacturer to carry a | 1351 |
load of more than one ton, to be used by the lessee or renter | 1352 |
primarily for business purposes, the tax shall be collected by the | 1353 |
vendor at the time the lease or rental is consummated and shall be | 1354 |
calculated by the vendor on the basis of the total amount to be | 1355 |
paid by the lessee or renter under the lease agreement. If the | 1356 |
total amount of the consideration for the lease or rental includes | 1357 |
amounts that are not calculated at the time the lease or rental is | 1358 |
executed, the tax shall be calculated and collected by the vendor | 1359 |
at the time such amounts are billed to the lessee or renter. In | 1360 |
the case of an open-end lease or rental, the tax shall be | 1361 |
calculated by the vendor on the basis of the total amount to be | 1362 |
paid during the initial fixed term of the lease or rental, and for | 1363 |
each subsequent renewal period as it comes due. As used in this | 1364 |
division, "motor vehicle" has the same meaning as in section | 1365 |
4501.01 of the Revised Code, and "watercraft" includes an outdrive | 1366 |
unit attached to the watercraft. | 1367 |
A lease with a renewal clause and a termination penalty or | 1368 |
similar provision that applies if the renewal clause is not | 1369 |
exercised is presumed to be a sham transaction. In such a case, | 1370 |
the tax shall be calculated and paid on the basis of the entire | 1371 |
length of the lease period, including any renewal periods, until | 1372 |
the termination penalty or similar provision no longer applies. | 1373 |
The taxpayer shall bear the burden, by a preponderance of the | 1374 |
evidence, that the transaction or series of transactions is not a | 1375 |
sham transaction. | 1376 |
(3) Except as provided in division (A)(2) of this section, in | 1377 |
the case of a sale, the price of which consists in whole or in | 1378 |
part of the lease or rental of tangible personal property, the tax | 1379 |
shall be measured by the installments of that lease or rental. | 1380 |
(4) In the case of a sale of a physical fitness facility | 1381 |
service or recreation and sports club service, the price of which | 1382 |
consists in whole or in part of a membership for the receipt of | 1383 |
the benefit of the service, the tax applicable to the sale shall | 1384 |
be measured by the installments thereof. | 1385 |
(B) The tax does not apply to the following: | 1386 |
(1) Sales to the state or any of its political subdivisions, | 1387 |
or to any other state or its political subdivisions if the laws of | 1388 |
that state exempt from taxation sales made to this state and its | 1389 |
political subdivisions; | 1390 |
(2) Sales of food for human consumption off the premises | 1391 |
where sold; | 1392 |
(3) Sales of food sold to students only in a cafeteria, | 1393 |
dormitory, fraternity, or sorority maintained in a private, | 1394 |
public, or parochial school, college, or university; | 1395 |
(4) Sales of newspapers and sales or transfers of magazines | 1396 |
distributed as controlled circulation publications; | 1397 |
(5) The furnishing, preparing, or serving of meals without | 1398 |
charge by an employer to an employee provided the employer records | 1399 |
the meals as part compensation for services performed or work | 1400 |
done; | 1401 |
(6) Sales of motor fuel upon receipt, use, distribution, or | 1402 |
sale of which in this state a tax is imposed by the law of this | 1403 |
state, but this exemption shall not apply to the sale of motor | 1404 |
fuel on which a refund of the tax is allowable under division (A) | 1405 |
of section 5735.14 of the Revised Code; and the tax commissioner | 1406 |
may deduct the amount of tax levied by this section applicable to | 1407 |
the price of motor fuel when granting a refund of motor fuel tax | 1408 |
pursuant to division (A) of section 5735.14 of the Revised Code | 1409 |
and shall cause the amount deducted to be paid into the general | 1410 |
revenue fund of this state; | 1411 |
(7) Sales of natural gas by a natural gas company, of water | 1412 |
by a water-works company, or of steam by a heating company, if in | 1413 |
each case the thing sold is delivered to consumers through pipes | 1414 |
or conduits, and all sales of communications services by a | 1415 |
telegraph company, all terms as defined in section 5727.01 of the | 1416 |
Revised Code, and sales of electricity delivered through wires; | 1417 |
(8) Casual sales by a person, or auctioneer employed directly | 1418 |
by the person to conduct such sales, except as to such sales of | 1419 |
motor vehicles, watercraft or outboard motors required to be | 1420 |
titled under section 1548.06 of the Revised Code, watercraft | 1421 |
documented with the United States coast guard, snowmobiles, and | 1422 |
all-purpose vehicles as defined in section 4519.01 of the Revised | 1423 |
Code; | 1424 |
(9)(a) Sales of services or tangible personal property, other | 1425 |
than motor vehicles, mobile homes, and manufactured homes, by | 1426 |
churches, organizations exempt from taxation under section | 1427 |
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit | 1428 |
organizations operated exclusively for charitable purposes as | 1429 |
defined in division (B)(12) of this section, provided that the | 1430 |
number of days on which such tangible personal property or | 1431 |
services, other than items never subject to the tax, are sold does | 1432 |
not exceed six in any calendar year, except as otherwise provided | 1433 |
in division (B)(9)(b) of this section. If the number of days on | 1434 |
which such sales are made exceeds six in any calendar year, the | 1435 |
church or organization shall be considered to be engaged in | 1436 |
business and all subsequent sales by it shall be subject to the | 1437 |
tax. In counting the number of days, all sales by groups within a | 1438 |
church or within an organization shall be considered to be sales | 1439 |
of that church or organization. | 1440 |
(b) The limitation on the number of days on which tax-exempt | 1441 |
sales may be made by a church or organization under division | 1442 |
(B)(9)(a) of this section does not apply to sales made by student | 1443 |
clubs and other groups of students of a primary or secondary | 1444 |
school, or a parent-teacher association, booster group, or similar | 1445 |
organization that raises money to support or fund curricular or | 1446 |
extracurricular activities of a primary or secondary school. | 1447 |
(c) Divisions (B)(9)(a) and (b) of this section do not apply | 1448 |
to sales by a noncommercial educational radio or television | 1449 |
broadcasting station. | 1450 |
(10) Sales not within the taxing power of this state under | 1451 |
the Constitution or laws of the United States or the Constitution | 1452 |
of this state; | 1453 |
(11) Except for transactions that are sales under division | 1454 |
(B)(3)(r) of section 5739.01 of the Revised Code, the | 1455 |
transportation of persons or property, unless the transportation | 1456 |
is by a private investigation and security service; | 1457 |
(12) Sales of tangible personal property or services to | 1458 |
churches, to organizations exempt from taxation under section | 1459 |
501(c)(3) of the Internal Revenue Code of 1986, and to any other | 1460 |
nonprofit organizations operated exclusively for charitable | 1461 |
purposes in this state, no part of the net income of which inures | 1462 |
to the benefit of any private shareholder or individual, and no | 1463 |
substantial part of the activities of which consists of carrying | 1464 |
on propaganda or otherwise attempting to influence legislation; | 1465 |
sales to offices administering one or more homes for the aged or | 1466 |
one or more hospital facilities exempt under section 140.08 of the | 1467 |
Revised Code; and sales to organizations described in division (D) | 1468 |
of section 5709.12 of the Revised Code. | 1469 |
"Charitable purposes" means the relief of poverty; the | 1470 |
improvement of health through the alleviation of illness, disease, | 1471 |
or injury; the operation of an organization exclusively for the | 1472 |
provision of professional, laundry, printing, and purchasing | 1473 |
services to hospitals or charitable institutions; the operation of | 1474 |
a home for the aged, as defined in section 5701.13 of the Revised | 1475 |
Code; the operation of a radio or television broadcasting station | 1476 |
that is licensed by the federal communications commission as a | 1477 |
noncommercial educational radio or television station; the | 1478 |
operation of a nonprofit animal adoption service or a county | 1479 |
humane society; the promotion of education by an institution of | 1480 |
learning that maintains a faculty of qualified instructors, | 1481 |
teaches regular continuous courses of study, and confers a | 1482 |
recognized diploma upon completion of a specific curriculum; the | 1483 |
operation of a parent-teacher association, booster group, or | 1484 |
similar organization primarily engaged in the promotion and | 1485 |
support of the curricular or extracurricular activities of a | 1486 |
primary or secondary school; the operation of a community or area | 1487 |
center in which presentations in music, dramatics, the arts, and | 1488 |
related fields are made in order to foster public interest and | 1489 |
education therein; the production of performances in music, | 1490 |
dramatics, and the arts; or the promotion of education by an | 1491 |
organization engaged in carrying on research in, or the | 1492 |
dissemination of, scientific and technological knowledge and | 1493 |
information primarily for the public. | 1494 |
Nothing in this division shall be deemed to exempt sales to | 1495 |
any organization for use in the operation or carrying on of a | 1496 |
trade or business, or sales to a home for the aged for use in the | 1497 |
operation of independent living facilities as defined in division | 1498 |
(A) of section 5709.12 of the Revised Code. | 1499 |
(13) Building and construction materials and services sold to | 1500 |
construction contractors for incorporation into a structure or | 1501 |
improvement to real property under a construction contract with | 1502 |
this state or a political subdivision of this state, or with the | 1503 |
United States government or any of its agencies; building and | 1504 |
construction materials and services sold to construction | 1505 |
contractors for incorporation into a structure or improvement to | 1506 |
real property that are accepted for ownership by this state or any | 1507 |
of its political subdivisions, or by the United States government | 1508 |
or any of its agencies at the time of completion of the structures | 1509 |
or improvements; building and construction materials sold to | 1510 |
construction contractors for incorporation into a horticulture | 1511 |
structure or livestock structure for a person engaged in the | 1512 |
business of horticulture or producing livestock; building | 1513 |
materials and services sold to a construction contractor for | 1514 |
incorporation into a house of public worship or religious | 1515 |
education, or a building used exclusively for charitable purposes | 1516 |
under a construction contract with an organization whose purpose | 1517 |
is as described in division (B)(12) of this section; building | 1518 |
materials and services sold to a construction contractor for | 1519 |
incorporation into a building under a construction contract with | 1520 |
an organization exempt from taxation under section 501(c)(3) of | 1521 |
the Internal Revenue Code of 1986 when the building is to be used | 1522 |
exclusively for the organization's exempt purposes; building and | 1523 |
construction materials sold for incorporation into the original | 1524 |
construction of a sports facility under section 307.696 of the | 1525 |
Revised Code; building and construction materials and services | 1526 |
sold to a construction contractor for incorporation into real | 1527 |
property outside this state if such materials and services, when | 1528 |
sold to a construction contractor in the state in which the real | 1529 |
property is located for incorporation into real property in that | 1530 |
state, would be exempt from a tax on sales levied by that state; | 1531 |
building and construction materials for incorporation into a | 1532 |
transportation facility pursuant to a public-private agreement | 1533 |
entered into under sections 5501.70 to 5501.83 of the Revised | 1534 |
Code; and, until one calendar year after the construction of a | 1535 |
convention center that qualifies for property tax exemption under | 1536 |
section 5709.084 of the Revised Code is completed, building and | 1537 |
construction materials and services sold to a construction | 1538 |
contractor for incorporation into the real property comprising | 1539 |
that convention center; | 1540 |
(14) Sales of ships or vessels or rail rolling stock used or | 1541 |
to be used principally in interstate or foreign commerce, and | 1542 |
repairs, alterations, fuel, and lubricants for such ships or | 1543 |
vessels or rail rolling stock; | 1544 |
(15) Sales to persons primarily engaged in any of the | 1545 |
activities mentioned in division (B)(42)(a), (g), or (h) of this | 1546 |
section, to persons engaged in making retail sales, or to persons | 1547 |
who purchase for sale from a manufacturer tangible personal | 1548 |
property that was produced by the manufacturer in accordance with | 1549 |
specific designs provided by the purchaser, of packages, including | 1550 |
material, labels, and parts for packages, and of machinery, | 1551 |
equipment, and material for use primarily in packaging tangible | 1552 |
personal property produced for sale, including any machinery, | 1553 |
equipment, and supplies used to make labels or packages, to | 1554 |
prepare packages or products for labeling, or to label packages or | 1555 |
products, by or on the order of the person doing the packaging, or | 1556 |
sold at retail. "Packages" includes bags, baskets, cartons, | 1557 |
crates, boxes, cans, bottles, bindings, wrappings, and other | 1558 |
similar devices and containers, but does not include motor | 1559 |
vehicles or bulk tanks, trailers, or similar devices attached to | 1560 |
motor vehicles. "Packaging" means placing in a package. Division | 1561 |
(B)(15) of this section does not apply to persons engaged in | 1562 |
highway transportation for hire. | 1563 |
(16) Sales of food to persons using supplemental nutrition | 1564 |
assistance program benefits to purchase the food. As used in this | 1565 |
division, "food" has the same meaning as in 7 U.S.C. 2012 and | 1566 |
federal regulations adopted pursuant to the Food and Nutrition Act | 1567 |
of 2008. | 1568 |
(17) Sales to persons engaged in farming, agriculture, | 1569 |
horticulture, or floriculture, of tangible personal property for | 1570 |
use or consumption primarily in the production by farming, | 1571 |
agriculture, horticulture, or floriculture of other tangible | 1572 |
personal property for use or consumption primarily in the | 1573 |
production of tangible personal property for sale by farming, | 1574 |
agriculture, horticulture, or floriculture; or material and parts | 1575 |
for incorporation into any such tangible personal property for use | 1576 |
or consumption in production; and of tangible personal property | 1577 |
for such use or consumption in the conditioning or holding of | 1578 |
products produced by and for such use, consumption, or sale by | 1579 |
persons engaged in farming, agriculture, horticulture, or | 1580 |
floriculture, except where such property is incorporated into real | 1581 |
property; | 1582 |
(18) Sales of drugs for a human being that may be dispensed | 1583 |
only pursuant to a prescription; insulin as recognized in the | 1584 |
official United States pharmacopoeia; urine and blood testing | 1585 |
materials when used by diabetics or persons with hypoglycemia to | 1586 |
test for glucose or acetone; hypodermic syringes and needles when | 1587 |
used by diabetics for insulin injections; epoetin alfa when | 1588 |
purchased for use in the treatment of persons with medical | 1589 |
disease; hospital beds when purchased by hospitals, nursing homes, | 1590 |
or other medical facilities; and medical oxygen and medical | 1591 |
oxygen-dispensing equipment when purchased by hospitals, nursing | 1592 |
homes, or other medical facilities; | 1593 |
(19) Sales of prosthetic devices, durable medical equipment | 1594 |
for home use, or mobility enhancing equipment, when made pursuant | 1595 |
to a prescription and when such devices or equipment are for use | 1596 |
by a human being. | 1597 |
(20) Sales of emergency and fire protection vehicles and | 1598 |
equipment to nonprofit organizations for use solely in providing | 1599 |
fire protection and emergency services, including trauma care and | 1600 |
emergency medical services, for political subdivisions of the | 1601 |
state; | 1602 |
(21) Sales of tangible personal property manufactured in this | 1603 |
state, if sold by the manufacturer in this state to a retailer for | 1604 |
use in the retail business of the retailer outside of this state | 1605 |
and if possession is taken from the manufacturer by the purchaser | 1606 |
within this state for the sole purpose of immediately removing the | 1607 |
same from this state in a vehicle owned by the purchaser; | 1608 |
(22) Sales of services provided by the state or any of its | 1609 |
political subdivisions, agencies, instrumentalities, institutions, | 1610 |
or authorities, or by governmental entities of the state or any of | 1611 |
its political subdivisions, agencies, instrumentalities, | 1612 |
institutions, or authorities; | 1613 |
(23) Sales of motor vehicles to nonresidents of this state | 1614 |
under the circumstances described in division (B) of section | 1615 |
5739.029 of the Revised Code; | 1616 |
(24) Sales to persons engaged in the preparation of eggs for | 1617 |
sale of tangible personal property used or consumed directly in | 1618 |
such preparation, including such tangible personal property used | 1619 |
for cleaning, sanitizing, preserving, grading, sorting, and | 1620 |
classifying by size; packages, including material and parts for | 1621 |
packages, and machinery, equipment, and material for use in | 1622 |
packaging eggs for sale; and handling and transportation equipment | 1623 |
and parts therefor, except motor vehicles licensed to operate on | 1624 |
public highways, used in intraplant or interplant transfers or | 1625 |
shipment of eggs in the process of preparation for sale, when the | 1626 |
plant or plants within or between which such transfers or | 1627 |
shipments occur are operated by the same person. "Packages" | 1628 |
includes containers, cases, baskets, flats, fillers, filler flats, | 1629 |
cartons, closure materials, labels, and labeling materials, and | 1630 |
"packaging" means placing therein. | 1631 |
(25)(a) Sales of water to a consumer for residential use; | 1632 |
(b) Sales of water by a nonprofit corporation engaged | 1633 |
exclusively in the treatment, distribution, and sale of water to | 1634 |
consumers, if such water is delivered to consumers through pipes | 1635 |
or tubing. | 1636 |
(26) Fees charged for inspection or reinspection of motor | 1637 |
vehicles under section 3704.14 of the Revised Code; | 1638 |
(27) Sales to persons licensed to conduct a food service | 1639 |
operation pursuant to section 3717.43 of the Revised Code, of | 1640 |
tangible personal property primarily used directly for the | 1641 |
following: | 1642 |
(a) To prepare food for human consumption for sale; | 1643 |
(b) To preserve food that has been or will be prepared for | 1644 |
human consumption for sale by the food service operator, not | 1645 |
including tangible personal property used to display food for | 1646 |
selection by the consumer; | 1647 |
(c) To clean tangible personal property used to prepare or | 1648 |
serve food for human consumption for sale. | 1649 |
(28) Sales of animals by nonprofit animal adoption services | 1650 |
or county humane societies; | 1651 |
(29) Sales of services to a corporation described in division | 1652 |
(A) of section 5709.72 of the Revised Code, and sales of tangible | 1653 |
personal property that qualifies for exemption from taxation under | 1654 |
section 5709.72 of the Revised Code; | 1655 |
(30) Sales and installation of agricultural land tile, as | 1656 |
defined in division (B)(5)(a) of section 5739.01 of the Revised | 1657 |
Code; | 1658 |
(31) Sales and erection or installation of portable grain | 1659 |
bins, as defined in division (B)(5)(b) of section 5739.01 of the | 1660 |
Revised Code; | 1661 |
(32) The sale, lease, repair, and maintenance of, parts for, | 1662 |
or items attached to or incorporated in, motor vehicles that are | 1663 |
primarily used for transporting tangible personal property | 1664 |
belonging to others by a person engaged in highway transportation | 1665 |
for hire, except for packages and packaging used for the | 1666 |
transportation of tangible personal property; | 1667 |
(33) Sales to the state headquarters of any veterans' | 1668 |
organization in this state that is either incorporated and issued | 1669 |
a charter by the congress of the United States or is recognized by | 1670 |
the United States veterans administration, for use by the | 1671 |
headquarters; | 1672 |
(34) Sales to a telecommunications service vendor, mobile | 1673 |
telecommunications service vendor, or satellite broadcasting | 1674 |
service vendor of tangible personal property and services used | 1675 |
directly and primarily in transmitting, receiving, switching, or | 1676 |
recording any interactive, one- or two-way electromagnetic | 1677 |
communications, including voice, image, data, and information, | 1678 |
through the use of any medium, including, but not limited to, | 1679 |
poles, wires, cables, switching equipment, computers, and record | 1680 |
storage devices and media, and component parts for the tangible | 1681 |
personal property. The exemption provided in this division shall | 1682 |
be in lieu of all other exemptions under division (B)(42)(a) or | 1683 |
(n) of this section to which the vendor may otherwise be entitled, | 1684 |
based upon the use of the thing purchased in providing the | 1685 |
telecommunications, mobile telecommunications, or satellite | 1686 |
broadcasting service. | 1687 |
(35)(a) Sales where the purpose of the consumer is to use or | 1688 |
consume the things transferred in making retail sales and | 1689 |
consisting of newspaper inserts, catalogues, coupons, flyers, gift | 1690 |
certificates, or other advertising material that prices and | 1691 |
describes tangible personal property offered for retail sale. | 1692 |
(b) Sales to direct marketing vendors of preliminary | 1693 |
materials such as photographs, artwork, and typesetting that will | 1694 |
be used in printing advertising material; and of printed matter | 1695 |
that offers free merchandise or chances to win sweepstake prizes | 1696 |
and that is mailed to potential customers with advertising | 1697 |
material described in division (B)(35)(a) of this section; | 1698 |
(c) Sales of equipment such as telephones, computers, | 1699 |
facsimile machines, and similar tangible personal property | 1700 |
primarily used to accept orders for direct marketing retail sales. | 1701 |
(d) Sales of automatic food vending machines that preserve | 1702 |
food with a shelf life of forty-five days or less by refrigeration | 1703 |
and dispense it to the consumer. | 1704 |
For purposes of division (B)(35) of this section, "direct | 1705 |
marketing" means the method of selling where consumers order | 1706 |
tangible personal property by United States mail, delivery | 1707 |
service, or telecommunication and the vendor delivers or ships the | 1708 |
tangible personal property sold to the consumer from a warehouse, | 1709 |
catalogue distribution center, or similar fulfillment facility by | 1710 |
means of the United States mail, delivery service, or common | 1711 |
carrier. | 1712 |
(36) Sales to a person engaged in the business of | 1713 |
horticulture or producing livestock of materials to be | 1714 |
incorporated into a horticulture structure or livestock structure; | 1715 |
(37) Sales of personal computers, computer monitors, computer | 1716 |
keyboards, modems, and other peripheral computer equipment to an | 1717 |
individual who is licensed or certified to teach in an elementary | 1718 |
or a secondary school in this state for use by that individual in | 1719 |
preparation for teaching elementary or secondary school students; | 1720 |
(38) Sales to a professional racing team of any of the | 1721 |
following: | 1722 |
(a) Motor racing vehicles; | 1723 |
(b) Repair services for motor racing vehicles; | 1724 |
(c) Items of property that are attached to or incorporated in | 1725 |
motor racing vehicles, including engines, chassis, and all other | 1726 |
components of the vehicles, and all spare, replacement, and | 1727 |
rebuilt parts or components of the vehicles; except not including | 1728 |
tires, consumable fluids, paint, and accessories consisting of | 1729 |
instrumentation sensors and related items added to the vehicle to | 1730 |
collect and transmit data by means of telemetry and other forms of | 1731 |
communication. | 1732 |
(39) Sales of used manufactured homes and used mobile homes, | 1733 |
as defined in section 5739.0210 of the Revised Code, made on or | 1734 |
after January 1, 2000; | 1735 |
(40) Sales of tangible personal property and services to a | 1736 |
provider of electricity used or consumed directly and primarily in | 1737 |
generating, transmitting, or distributing electricity for use by | 1738 |
others, including property that is or is to be incorporated into | 1739 |
and will become a part of the consumer's production, transmission, | 1740 |
or distribution system and that retains its classification as | 1741 |
tangible personal property after incorporation; fuel or power used | 1742 |
in the production, transmission, or distribution of electricity; | 1743 |
energy conversion equipment as defined in section 5727.01 of the | 1744 |
Revised Code; and tangible personal property and services used in | 1745 |
the repair and maintenance of the production, transmission, or | 1746 |
distribution system, including only those motor vehicles as are | 1747 |
specially designed and equipped for such use. The exemption | 1748 |
provided in this division shall be in lieu of all other exemptions | 1749 |
in division (B)(42)(a) or (n) of this section to which a provider | 1750 |
of electricity may otherwise be entitled based on the use of the | 1751 |
tangible personal property or service purchased in generating, | 1752 |
transmitting, or distributing electricity. | 1753 |
(41) Sales to a person providing services under division | 1754 |
(B)(3)(r) of section 5739.01 of the Revised Code of tangible | 1755 |
personal property and services used directly and primarily in | 1756 |
providing taxable services under that section. | 1757 |
(42) Sales where the purpose of the purchaser is to do any of | 1758 |
the following: | 1759 |
(a) To incorporate the thing transferred as a material or a | 1760 |
part into tangible personal property to be produced for sale by | 1761 |
manufacturing, assembling, processing, or refining; or to use or | 1762 |
consume the thing transferred directly in producing tangible | 1763 |
personal property for sale by mining, including, without | 1764 |
limitation, the extraction from the earth of all substances that | 1765 |
are classed geologically as minerals, production of crude oil and | 1766 |
natural gas, or directly in the rendition of a public utility | 1767 |
service, except that the sales tax levied by this section shall be | 1768 |
collected upon all meals, drinks, and food for human consumption | 1769 |
sold when transporting persons. Persons engaged in rendering | 1770 |
services in the exploration for, and production of, crude oil and | 1771 |
natural gas for others are deemed engaged directly in the | 1772 |
exploration for, and production of, crude oil and natural gas. | 1773 |
This paragraph does not exempt from "retail sale" or "sales at | 1774 |
retail" the sale of tangible personal property that is to be | 1775 |
incorporated into a structure or improvement to real property. | 1776 |
(b) To hold the thing transferred as security for the | 1777 |
performance of an obligation of the vendor; | 1778 |
(c) To resell, hold, use, or consume the thing transferred as | 1779 |
evidence of a contract of insurance; | 1780 |
(d) To use or consume the thing directly in commercial | 1781 |
fishing; | 1782 |
(e) To incorporate the thing transferred as a material or a | 1783 |
part into, or to use or consume the thing transferred directly in | 1784 |
the production of, magazines distributed as controlled circulation | 1785 |
publications; | 1786 |
(f) To use or consume the thing transferred in the production | 1787 |
and preparation in suitable condition for market and sale of | 1788 |
printed, imprinted, overprinted, lithographic, multilithic, | 1789 |
blueprinted, photostatic, or other productions or reproductions of | 1790 |
written or graphic matter; | 1791 |
(g) To use the thing transferred, as described in section | 1792 |
5739.011 of the Revised Code, primarily in a manufacturing | 1793 |
operation to produce tangible personal property for sale; | 1794 |
(h) To use the benefit of a warranty, maintenance or service | 1795 |
contract, or similar agreement, as described in division (B)(7) of | 1796 |
section 5739.01 of the Revised Code, to repair or maintain | 1797 |
tangible personal property, if all of the property that is the | 1798 |
subject of the warranty, contract, or agreement would not be | 1799 |
subject to the tax imposed by this section; | 1800 |
(i) To use the thing transferred as qualified research and | 1801 |
development equipment; | 1802 |
(j) To use or consume the thing transferred primarily in | 1803 |
storing, transporting, mailing, or otherwise handling purchased | 1804 |
sales inventory in a warehouse, distribution center, or similar | 1805 |
facility when the inventory is primarily distributed outside this | 1806 |
state to retail stores of the person who owns or controls the | 1807 |
warehouse, distribution center, or similar facility, to retail | 1808 |
stores of an affiliated group of which that person is a member, or | 1809 |
by means of direct marketing. This division does not apply to | 1810 |
motor vehicles registered for operation on the public highways. As | 1811 |
used in this division, "affiliated group" has the same meaning as | 1812 |
in division (B)(3)(e) of section 5739.01 of the Revised Code and | 1813 |
"direct marketing" has the same meaning as in division (B)(35) of | 1814 |
this section. | 1815 |
(k) To use or consume the thing transferred to fulfill a | 1816 |
contractual obligation incurred by a warrantor pursuant to a | 1817 |
warranty provided as a part of the price of the tangible personal | 1818 |
property sold or by a vendor of a warranty, maintenance or service | 1819 |
contract, or similar agreement the provision of which is defined | 1820 |
as a sale under division (B)(7) of section 5739.01 of the Revised | 1821 |
Code; | 1822 |
(l) To use or consume the thing transferred in the production | 1823 |
of a newspaper for distribution to the public; | 1824 |
(m) To use tangible personal property to perform a service | 1825 |
listed in division (B)(3) of section 5739.01 of the Revised Code, | 1826 |
if the property is or is to be permanently transferred to the | 1827 |
consumer of the service as an integral part of the performance of | 1828 |
the service; | 1829 |
(n) To use or consume the thing transferred primarily in | 1830 |
producing tangible personal property for sale by farming, | 1831 |
agriculture, horticulture, or floriculture. Persons engaged in | 1832 |
rendering farming, agriculture, horticulture, or floriculture | 1833 |
services for others are deemed engaged primarily in farming, | 1834 |
agriculture, horticulture, or floriculture. This paragraph does | 1835 |
not exempt from "retail sale" or "sales at retail" the sale of | 1836 |
tangible personal property that is to be incorporated into a | 1837 |
structure or improvement to real property. | 1838 |
(o) To use or consume the thing transferred in acquiring, | 1839 |
formatting, editing, storing, and disseminating data or | 1840 |
information by electronic publishing. | 1841 |
As used in division (B)(42) of this section, "thing" includes | 1842 |
all transactions included in divisions (B)(3)(a), (b), and (e) of | 1843 |
section 5739.01 of the Revised Code. | 1844 |
(43) Sales conducted through a coin operated device that | 1845 |
activates vacuum equipment or equipment that dispenses water, | 1846 |
whether or not in combination with soap or other cleaning agents | 1847 |
or wax, to the consumer for the consumer's use on the premises in | 1848 |
washing, cleaning, or waxing a motor vehicle, provided no other | 1849 |
personal property or personal service is provided as part of the | 1850 |
transaction. | 1851 |
(44) Sales of replacement and modification parts for engines, | 1852 |
airframes, instruments, and interiors in, and paint for, aircraft | 1853 |
used primarily in a fractional aircraft ownership program, and | 1854 |
sales of services for the repair, modification, and maintenance of | 1855 |
such aircraft, and machinery, equipment, and supplies primarily | 1856 |
used to provide those services. | 1857 |
(45) Sales of telecommunications service that is used | 1858 |
directly and primarily to perform the functions of a call center. | 1859 |
As used in this division, "call center" means any physical | 1860 |
location where telephone calls are placed or received in high | 1861 |
volume for the purpose of making sales, marketing, customer | 1862 |
service, technical support, or other specialized business | 1863 |
activity, and that employs at least fifty individuals that engage | 1864 |
in call center activities on a full-time basis, or sufficient | 1865 |
individuals to fill fifty full-time equivalent positions. | 1866 |
(46) Sales by a telecommunications service vendor of 900 | 1867 |
service to a subscriber. This division does not apply to | 1868 |
information services, as defined in division (FF) of section | 1869 |
5739.01 of the Revised Code. | 1870 |
(47) Sales of value-added non-voice data service. This | 1871 |
division does not apply to any similar service that is not | 1872 |
otherwise a telecommunications service. | 1873 |
(48)(a) Sales of machinery, equipment, and software to a | 1874 |
qualified direct selling entity for use in a warehouse or | 1875 |
distribution center primarily for storing, transporting, or | 1876 |
otherwise handling inventory that is held for sale to independent | 1877 |
salespersons who operate as direct sellers and that is held | 1878 |
primarily for distribution outside this state; | 1879 |
(b) As used in division (B)(48)(a) of this section: | 1880 |
(i) "Direct seller" means a person selling consumer products | 1881 |
to individuals for personal or household use and not from a fixed | 1882 |
retail location, including selling such product at in-home product | 1883 |
demonstrations, parties, and other one-on-one selling. | 1884 |
(ii) "Qualified direct selling entity" means an entity | 1885 |
selling to direct sellers at the time the entity enters into a tax | 1886 |
credit agreement with the tax credit authority pursuant to section | 1887 |
122.17 of the Revised Code, provided that the agreement was | 1888 |
entered into on or after January 1, 2007. Neither contingencies | 1889 |
relevant to the granting of, nor later developments with respect | 1890 |
to, the tax credit shall impair the status of the qualified direct | 1891 |
selling entity under division (B)(48) of this section after | 1892 |
execution of the tax credit agreement by the tax credit authority. | 1893 |
(c) Division (B)(48) of this section is limited to machinery, | 1894 |
equipment, and software first stored, used, or consumed in this | 1895 |
state within the period commencing June 24, 2008, and ending on | 1896 |
the date that is five years after that date. | 1897 |
(49) Sales of materials, parts, equipment, or engines used in | 1898 |
the repair or maintenance of aircraft or avionics systems of such | 1899 |
aircraft, and sales of repair, remodeling, replacement, or | 1900 |
maintenance services in this state performed on aircraft or on an | 1901 |
aircraft's avionics, engine, or component materials or parts. As | 1902 |
used in division (B)(49) of this section, "aircraft" means | 1903 |
aircraft of more than six thousand pounds maximum certified | 1904 |
takeoff weight or used exclusively in general aviation. | 1905 |
(50) Sales of full flight simulators that are used for pilot | 1906 |
or flight-crew training, sales of repair or replacement parts or | 1907 |
components, and sales of repair or maintenance services for such | 1908 |
full flight simulators. "Full flight simulator" means a replica of | 1909 |
a specific type, or make, model, and series of aircraft cockpit. | 1910 |
It includes the assemblage of equipment and computer programs | 1911 |
necessary to represent aircraft operations in ground and flight | 1912 |
conditions, a visual system providing an out-of-the-cockpit view, | 1913 |
and a system that provides cues at least equivalent to those of a | 1914 |
three-degree-of-freedom motion system, and has the full range of | 1915 |
capabilities of the systems installed in the device as described | 1916 |
in appendices A and B of part 60 of chapter 1 of title 14 of the | 1917 |
Code of Federal Regulations. | 1918 |
(51) Any transfer or lease of tangible personal property | 1919 |
between the state and JobsOhio in accordance with section 4313.02 | 1920 |
of the Revised Code. | 1921 |
(52)(a) Sales to a qualifying corporation. | 1922 |
(b) As used in division (B)(52) of this section: | 1923 |
(i) "Qualifying corporation" means a nonprofit corporation | 1924 |
organized in this state that leases from an eligible county land, | 1925 |
buildings, structures, fixtures, and improvements to the land that | 1926 |
are part of or used in a public recreational facility used by a | 1927 |
major league professional athletic team or a class A to class AAA | 1928 |
minor league affiliate of a major league professional athletic | 1929 |
team for a significant portion of the team's home schedule, | 1930 |
provided the following apply: | 1931 |
(I) The facility is leased from the eligible county pursuant | 1932 |
to a lease that requires substantially all of the revenue from the | 1933 |
operation of the business or activity conducted by the nonprofit | 1934 |
corporation at the facility in excess of operating costs, capital | 1935 |
expenditures, and reserves to be paid to the eligible county at | 1936 |
least once per calendar year. | 1937 |
(II) Upon dissolution and liquidation of the nonprofit | 1938 |
corporation, all of its net assets are distributable to the board | 1939 |
of commissioners of the eligible county from which the corporation | 1940 |
leases the facility. | 1941 |
(ii) "Eligible county" has the same meaning as in section | 1942 |
307.695 of the Revised Code. | 1943 |
(53) Sales to or by a cable service provider, video service | 1944 |
provider, or radio or television broadcast station regulated by | 1945 |
the federal government of cable service or programming, video | 1946 |
service or programming, audio service or programming, or | 1947 |
electronically transferred digital audiovisual or audio work. As | 1948 |
used in division (B)(53) of this section, "cable service" and | 1949 |
"cable service provider" have the same meanings as in section | 1950 |
1332.01 of the Revised Code, and "video service," "video service | 1951 |
provider," and "video programming" have the same meanings as in | 1952 |
section 1332.21 of the Revised Code. | 1953 |
(C) For the purpose of the proper administration of this | 1954 |
chapter, and to prevent the evasion of the tax, it is presumed | 1955 |
that all sales made in this state are subject to the tax until the | 1956 |
contrary is established. | 1957 |
(D) The levy of this tax on retail sales of recreation and | 1958 |
sports club service shall not prevent a municipal corporation from | 1959 |
levying any tax on recreation and sports club dues or on any | 1960 |
income generated by recreation and sports club dues. | 1961 |
(E) The tax collected by the vendor from the consumer under | 1962 |
this chapter is not part of the price, but is a tax collection for | 1963 |
the benefit of the state, and of counties levying an additional | 1964 |
sales tax pursuant to section 5739.021 or 5739.026 of the Revised | 1965 |
Code and of transit authorities levying an additional sales tax | 1966 |
pursuant to section 5739.023 of the Revised Code. Except for the | 1967 |
discount authorized under section 5739.12 of the Revised Code and | 1968 |
the effects of any rounding pursuant to section 5703.055 of the | 1969 |
Revised Code, no person other than the state or such a county or | 1970 |
transit authority shall derive any benefit from the collection or | 1971 |
payment of the tax levied by this section or section 5739.021, | 1972 |
5739.023, or 5739.026 of the Revised Code. | 1973 |
Section 2. That existing sections 5501.44, 5501.70, 5501.71, | 1974 |
5501.73, 5501.78, 5531.11, 5531.12, 5531.13, 5531.14, 5531.15, | 1975 |
5531.16, and 5739.02 of the Revised Code are hereby repealed. | 1976 |
Section 3. Section 5739.02 of the Revised Code is presented | 1977 |
in this act as a composite of the section as amended by both Am. | 1978 |
Sub. H.B. 51 and Am. Sub. H.B. 59 of the 130th General Assembly. | 1979 |
The General Assembly, applying the principle stated in division | 1980 |
(B) of section 1.52 of the Revised Code that amendments are to be | 1981 |
harmonized if reasonably capable of simultaneous operation, finds | 1982 |
that the composite is the resulting version of the section in | 1983 |
effect prior to the effective date of the section as presented in | 1984 |
this act. | 1985 |