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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 201
2025-2026
Senator Schaffer
To
amend section 917.031 and to enact section 926.181 of the Revised
Code
to
revise the milk inspection fees, to require large agricultural
commodity handlers to execute a surety bond in case of failure, and
to make an appropriation.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 917.031 be amended and section 926.181 of the Revised Code be
enacted to read as follows:
Sec.
917.031.
The
milk sanitation board may do all of the following:
(A)
Advise and consult with the director of agriculture in the
administration and enforcement of this chapter and rules adopted
under it;
(B)
Make recommendations to the director regarding proposed rules;
(C)
Approve or disapprove agreements between the director and any public
or private entity desiring to perform or performing any of the
inspections or analyses required under this chapter and rules adopted
under it
.
;
The
milk sanitation board, after
(D)
After
reviewing
the director's annual report required under division (A)(7) of
section 917.02 of the Revised Code,
shall
prescribe
inspection fees for milk processors,
and
may prescribe inspection fees for
milk
producers
,
and milk haulers
only if the appropriation from the general revenue fund for
inspection purposes is less than the estimated cost of administering
and enforcing this chapter
.
The
board may modify any fees it has prescribed
If
the board prescribes fees, such fees, in conjunction with any
appropriation, shall not exceed an amount necessary to cover the
estimated costs of administering and enforcing this chapter
.
The
However,
under no circumstances shall the
fees
prescribed or modified by the board together with the license fees
collected pursuant to this chapter
shall
not
exceed
sixty-three per cent of the estimated cost of administering and
enforcing this chapter, as determined by the board's review of the
director's annual report.
The board may modify any fees it has prescribed under this division,
provided the fee amounts comply with this division.
Sec.
926.181.
(A)
As used in this section:
(1)
"Failure" has the same meaning as in section 926.021 of the
Revised Code.
(2)
"Large agricultural commodity handler" means an
agricultural commodity handler that is licensed under section 926.06
of the Revised Code and that annually stores an amount of an
agricultural commodity above a threshold that is determined by the
director of agriculture.
(B)
Each applicant for a handler's license that is a large agricultural
commodity handler, as condition of receiving such license, shall
execute and file or have on file with the director of agriculture a
surety bond payable to the state and for deposit in the agricultural
commodity depositors fund in case of the failure of the handler.
The
director shall establish the required amount of the surety bond based
on the capacity of each large agricultural commodity handler in
accordance with rules adopted by the director under Chapter 119. of
the Revised Code. The surety bond shall be executed by a surety
company authorized to do business in this state.
(C)
The director shall not approve any bond until it is personally signed
and acknowledged by both principal and surety, or as to either by the
principal's or surety's attorney in fact, with a certified copy of
the power of attorney attached thereto. The director shall not
approve a bond unless there is attached a certificate of the
superintendent of insurance that the company is authorized to
transact a fidelity and surety business in this state.
All
bonds shall be given in a form to be prescribed by the director and
shall run to the state as obligee.
Section
2.
That
existing section 917.031 of the Revised Code is hereby repealed.
Section
3.
(A)
As used in this section, "dairy processing plant" means a
facility that:
(1)
Is located in this state;
(2)
Is in operation as of July 1, 2025; and
(3)
Provides processing services for dairy producers.
(B)
The Director of Development shall establish a grant program for dairy
processing plants. The Director shall prescribe the grant application
form.
(C)
The owner or operator of a dairy processing plant may apply to the
Director for a grant under this section. Upon the receipt of a grant
application, the Director shall review the application and score it
based on the following criteria:
(1)
Whether the grant will improve the applicant's processing
efficiencies for dairy products by allowing for the following:
(a)
New equipment, including upgrades to existing equipment;
(b)
New technology, including upgrades to existing technology; and
(c)
Training of personnel.
(2)
Whether the grant will be used for the expansion or new construction
of facilities for the processing of dairy products, including:
(a)
Areas for the processing of dairy products; and
(b)
Refrigeration or freezers.
(3)
Whether the grant will be used for food safety certification or to
assist in obtaining cooperative interstate shipment status;
(4)
Project readiness.
(D)
For purposes of divisions (C)(1) through (4) of this section, the
Director shall not consider the following as eligible for grant
funding:
(1)
Improvements to personal residences;
(2)
Agricultural tractors, motorized vehicles, and other mobile equipment
with an internal combustion engine;
(3)
Land purchases.
(E)
Dairy processing plants awarded a grant under this section shall
maintain the equipment, technology, plant expansion, or new
construction in working and serviceable order for a period of five
years after the awarding of the grant.
(F)
The Director shall not award a grant to an applicant under this
section for more than two hundred fifty thousand dollars.
Section
4.
All
items in this act are hereby appropriated as designated out of any
moneys in the state treasury to the credit of the designated fund.
For all operating appropriations made in this act, those in the first
column are for fiscal year 2026 and those in the second column are
for fiscal year 2027. The operating appropriations made in this act
are in addition to any other operating appropriations made for these
fiscal years.
Section
5.
1
2
3
4
5
A
AGR
DEPARTMENT OF AGRICULTURE
B
General
Revenue Fund
C
GRF
700401
Animal
Health Programs
$627,500
$627,500
D
GRF
700403
Dairy
Division
$1,751,000
$1,787,000
E
GRF
700415
Poultry
Inspection
$627,500
$627,500
F
GRF
700512
Local
Fairs
$0
$4,700,000
G
GRF
700516
Dairy
Processing Grants
$12,500,000
$12,500,000
H
General
Revenue Fund Group Total
$15,506,000
$20,242,000
I
Dedicated
Purpose Fund Group
J
5CQ1
700430
Ohio
Livestock Show and Sale
$1,000,000
$1,000,000
K
6H20
700670
H2Ohio
$26,907,500
$26,962,000
L
Dedicated
Purpose Fund Group Total
$27,907,500
$27,962,000
M
TOTAL
ALL BUDGET FUND GROUPS
$43,413,500
$48,204,000
LOCAL
FAIRS
The
foregoing appropriation item 700512, Local Fairs, shall be used to
support county and independent agricultural societies.
DAIRY
PROCESSING GRANTS
The
foregoing appropriation item 700516, Dairy Processing Grants, shall
be used to administer the Dairy Processing Grants Program established
in Section 3 of this act.
The
unexpended, unencumbered portion of appropriation item 700516, Dairy
Processing Grants, at the end of fiscal year 2026 is hereby
reappropriated for the same purpose in fiscal year 2027.
OHIO
LIVESTOCK SHOW AND SALE
The
foregoing appropriation item 700430, Ohio Livestock Show and Sale,
shall be used to offset up to fifty per cent of the rental and
equipment costs for state and national livestock events held at the
Ohio Expo Center.
On
July 1 of each fiscal year, or as soon as possible thereafter, the
Director of Budget and Management shall transfer $1,000,000 cash from
the General Revenue Fund to the Ohio Livestock Show and Sale Fund
(Fund 5CQ1), which is hereby created in the state treasury.
Section
6.
1
2
3
4
5
A
EPA
ENVIRONMENTAL PROTECTION AGENCY
B
Dedicated
Purpose Fund Group
C
6H20
715695
H2Ohio
$12,637,015
$12,637,015
D
Dedicated
Purpose Fund Group Total
$12,637,015
$12,637,015
E
TOTAL
ALL BUDGET FUND GROUPS
$12,637,015
$12,637,015
Section
7.
1
2
3
4
5
A
BOR
DEPARTMENT OF HIGHER EDUCATION
B
General
Revenue Fund
C
GRF
235535
Ohio
State Agricultural
Research
$37,169,000
$37,169,000
D
GRF
235569
The
Ohio State University
College
of Veterinary
Medicine
Supplement
$20,000,000
$20,000,000
E
General
Revenue Fund Total
$57,169,000
$57,169,000
F
TOTAL
ALL BUDGET FUND GROUPS
$57,169,000
$57,169,000
OHIO
STATE AGRICULTURAL RESEARCH
The
foregoing appropriation item 235535, Ohio State Agricultural
Research, shall be disbursed through the Chancellor of Higher
Education to the Ohio State University in monthly payments, unless
otherwise determined by the Director of Budget and Management under
section 126.09 of the Revised Code.
The
Ohio Agricultural Research and Development Center (OARDC), an entity
of the College of Food, Agricultural, and Environmental Sciences
(CFAES) of the Ohio State University, shall maintain its biosafety
level three plant and animal agrosecurity research facility on the
CFAES Wooster campus for conducting research on infectious diseases
of plants and animals. OARDC shall further its mission of enhancing
Ohio's economic development and job creation by continuing to
internally allocate on a competitive basis appropriated funding of
programs based on demonstrated performance. Academic units, faculty,
and faculty-driven programs shall be evaluated and rewarded
consistent with agreed-upon performance expectations as called for in
the College's Expectations and Criteria for Performance Assessment.
THE
OHIO STATE UNIVERSITY COLLEGE OF VETERINARY MEDICINE SUPPLEMENT
The
foregoing appropriation item 235569, The Ohio State University
College of Veterinary Medicine Supplement, shall be distributed
through the Chancellor of Higher Education to the Ohio State
University College of Veterinary Medicine to provide supplemental
support for education, research, and operations.
Section
8.
1
2
3
4
5
A
DNR
DEPARTMENT OF NATURAL RESOURCES
B
Dedicated
Purpose Fund Group
C
6H20
725681
H2Ohio
$20,422,268
$20,422,268
D
Dedicated
Purpose Fund Group Total
$20,422,268
$20,422,268
E
TOTAL
ALL BUDGET FUND GROUPS
$20,422,268
$20,422,268
Section
9.
CASH
TRANSFER FROM THE GENERAL REVENUE FUND TO THE H2OHIO FUND
On
July 1, 2025, or as soon as possible thereafter, the Director of
Budget and Management shall transfer $120,276,066 cash from the
General Revenue Fund to the H2Ohio Fund (Fund 6H20).
Section
10.
Within
the limits set forth in this act, the Director of Budget and
Management shall establish accounts indicating the source and amount
of funds for each appropriation made in this act, and shall determine
the manner in which appropriation accounts shall be maintained.
Expenditures from operating appropriations contained in this act
shall be accounted for as though made in, and are subject to all
applicable provisions of, the main operating appropriations act of
the 136th General Assembly.