OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 194 Bill Analysis
135th General Assembly
Click here for H.B. 194’s Fiscal Note
Version: As Passed by the House
Primary Sponsor: Rep. K. Miller
Effective date:
Larry Gunter, Jr., Research Analyst
SUMMARY
Authorizes the Registrar of Motor Vehicles to enter into a contract, via a competitive
selection process, with a vendor to operate a special license plate program that will
operate alongside the current statutory process for establishing and issuing specialty
license plates.
Requires the vendor, under the contract, to design and market specialty license plates
required to be issued under current law and new specialty license plates established
under the program.
Stipulates that the contract between the private vendor and the Registrar must contain
certain provisions, including:
A requirement that the private vendor use electronic infrastructure that is
compatible with infrastructure used by the Bureau of Motor Vehicles (BMV);
Terms governing the security of the information exchanged between the Registrar,
the private vendor, and any other third parties;
Terms allowing a motor vehicle owner or lessee to select the combination of letters
and numbers appearing on a license plate and various design features for a specialty
license plate;
Provisions allowing the vendor to enter into an agreement to create new license
plates not currently offered by the BMV; and
An allowance for the Registrar (or any deputy registrar) to collect the following fees
and contribution that are in addition to any applicable motor vehicle registration
taxes and fees:
A fee deposited in the Public Safety − Highway Purposes Fund to compensate the
Registrar for costs associated with program administration and license plate
design and production;
May 9, 2024
Office of Research and Drafting LSC Legislative Budget Office
A fee deposited in the Public Safety Specialty License Plate Contract Fund
(created by the bill) to compensate the private vendor for the performance of its
duties under the contract; and
A contribution deposited in the Drug Law Enforcement Fund, which is used to
make grants to local governments to defray expenses related to local drug task
forces.
Limits the contract between the Registrar and the private vendor to two years, but
allows the contract to be extended for additional two-year periods.
Exempts the private vendor from an existing general prohibition against charging a fee
for online motor vehicle registrations unless specified conditions exist.
Requires the Registrar to submit each specialty license plate created under the program
to the Joint Committee on Agency Rule Review (JCARR) for approval, and requires JCARR
to approve or disapprove of any proposed specialty license plate.
Prohibits the Registrar from restricting the background color, color combinations, or
color alphanumeric license plate numbers of a specialty license plate proposed by the
private vendor except for purposes of public safety.
DETAILED ANALYSIS
Private vendor specialty license plate program
Under current law, the Registrar of Motor Vehicles must issue a variety of specialty
license plates, which may be used in lieu of the standard license plate issued to the majority of
Ohio motorists. Each specialty license plate is authorized by statute and honors the military and
military awards or highlights various organizations, schools, and sports teams. Examples of
specialty license plates include:
The Distinguished Flying Cross license plate
The Ohio State University license plate (one of three types)
P a g e |2 H.B. 194
As Passed by the House
Office of Research and Drafting LSC Legislative Budget Office
Ohio State Beekeepers license plate
The bill establishes a program whereby the Registrar must enter into a contract with a
private vendor to design and market specialty license plates. The private vendor is selected by
the Registrar through a competitive bidding process. The specialty license plate program
established by the bill operates alongside the current statutory process for establishing and
issuing specialty license plates. As a result, a person may choose to obtain a specialty license
plate established and designed pursuant to statute or through the contractor-operated
specialty license plate program.1
Authority under the contract
Under the contract, beginning nine months after the bill’s effective date, the private
vendor must design and market specialty license plates, including those required by law to be
issued by the Registrar. The Registrar remains responsible for the issuance of each specialty
license plate and a validation sticker and for the collection of existing taxes and fees related to
the specialty license plate. Additionally, the Registrar (or a deputy registrar) must collect the
following:
1. A fee deposited in the Public Safety − Highway Purposes Fund to compensate the
Registrar for costs associated with program administration and license plate design and
production;
2. A fee deposited in the Public Safety Specialty License Plate Contract Fund (created by
the bill) to compensate the private vendor for the performance of its duties under the
contract; and
3. A contribution deposited in the Drug Law Enforcement Fund, which is used to make
grants to local governments to defray expenses related to local drug task forces.
The Registrar and any deputy registrar issuing a registration or registration renewal
under the program also may collect the existing service fee of $5.2
1 R.C. 4503.261(A).
2 R.C. 4503.038, 4503.19, 4503.261(A), (B)(7), and (D), 4503.262, and 5502.68.
P a g e |3 H.B. 194
As Passed by the House
Office of Research and Drafting LSC Legislative Budget Office
Contract terms
The contract between the Registrar and private vendor is limited to two years, but may
be extended afterwards for additional two-year terms upon agreement of the parties. The
contract must include the following:
A requirement that the private vendor use electronic infrastructure that is compatible
with infrastructure used by the Bureau of Motor Vehicles (BMV);
Provisions concerning the security of the information exchanged through the electronic
infrastructure use by the Registrar, the private vendor, and any other third parties;
Provisions allowing a motor vehicle owner or lessee to select the combination of letters
and numbers appearing on a license plate, subject to the approval of the Registrar;
Provisions allowing an owner or lessee purchasing a specialty license plate created by
the private vendor to select various design features of the license plate;
Provisions allowing the private vendor to contract with any person for the marketing
and sale of a specialty license plate that is not offered by the BMV (a person or entity
that has sponsored a specialty license plate offered by the BMV may create a new
specialty license plate through the private vendor);
Provisions specifying that the private vendor complies with all applicable copyright and
trademark laws;
A requirement that the Registrar collect the fees and contribution specified above that
are in addition to any applicable motor vehicle registration taxes and fees; and
Provisions requiring the private vendor to comply with all applicable requirements of
the Revised Code and the Ohio Administrative Code.3
JCARR approval of designs
Under the bill the Registrar must submit each specialty license plate design created
under the specialty license plate program to the Joint Committee on Agency Rule Review
(JCARR). JCARR has final authority regarding the design and content of any specialty license
plate and must approve or disapprove of any proposed specialty license plate. Furthermore, the
Registrar may consult with the Superintendent of the State Highway Patrol regarding the
readability, reflectivity, and public safety of a specialty license plate. The Registrar may not
restrict the background color, color combinations, or color alphanumeric license plate numbers
of a specialty license plate proposed by the private vendor, except for purposes of public
safety.4
3 R.C. 4503.261(B).
4 R.C. 4503.261(C).
P a g e |4 H.B. 194
As Passed by the House
Office of Research and Drafting LSC Legislative Budget Office
Third party online registration exemption
The bill provides that the private vendor is exempt from a prohibition that prevents
third parties from conducting the online registration of motor vehicles. Under current law, a
person is prohibited from charging any fee for the submission of an application for a motor
vehicle registration or registration renewal by electronic means unless a person complies with
all of the following:
The person prominently displays on the person’s website that the service is not
provided by a government agency;
The person requires customers to confirm they understand that the person’s services
are not offered by a governmental entity; and
The person’s website states that the person may opt to submit the application directly
to the Registrar, and the Registrar’s link for submission is provided on the person’s
website.
Failure to comply with all of the above requirements results in a maximum fine of
$1,000.5
HISTORY
Action Date
Introduced 05-30-23
Reported, H. Homeland Security 04-30-24
Passed House (87-3) 05-08-24
ANHB0194PH-135/ar
5 R.C. 4503.261(A)(3); R.C. 4503.106, not in the bill. Since the vendor no longer has authority to facilitate
the registration of motor vehicles and the collection of fees associated with registration as was required
in the As Introduced version of the bill, it is unclear if this exemption has any practical effect.
P a g e |5 H.B. 194
As Passed by the House
Statutes affected: As Introduced: 4503.038, 4503.102, 5502.68
As Reported By House Committee: 4503.038, 4503.19, 5502.68
As Passed By House: 4503.038, 4503.19, 5502.68