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 Introduced
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.
Requires the vendor, under the contract, to design, market, sell, and issue specialty
license plates required to be issued under current law and new specialty license plates,
as well as facilitate the registration of vehicles issued license plates under the contract.
Stipulates that the contract between the private vendor and the Registrar must include
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) for
motor vehicle registration purposes;
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;
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 private vendor to collect fees that are in addition to any
applicable motor vehicle registration taxes and fees, provided that the private
vendor remit the fees to the Registrar for deposit in the drug law enforcement fund.
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.
June 20, 2023
Office of Research and Drafting LSC Legislative Budget Office
Authorizes the Registrar to disapprove of any proposed specialty license plate that does
not meet the standards of the BMV regarding the design and content of specialty license
plates.
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)
Ohio State Beekeepers license plate
The bill establishes a program whereby the Registrar must enter into a contract with a
private vendor to issue 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
P a g e |2 H.B. 194
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
license plates. As a result, a person may choose to apply for a specialty license plate through
the Registrar or through the contractor-operated specialty license plate program.1
Private vendor authority
Under the contract, the private vendor must design, market, sell, and issue specialty
license plates, including those required by law to be issued by the Registrar. The vendor also
must facilitate the initial and renewal registrations of motor vehicles for owners and lessees
who request specialty license plates and who choose to use the vendor to issue them. In doing
so, the vendor must issue validation stickers and collect the ordinary taxes and fees associated
with motor vehicle registration. Additionally, the contractor must collect additional fees that
must be deposited into the Drug Law Enforcement Fund, which is used to assist local
governmental entities in enforcement of criminal laws regarding illegal drugs.2
Registrar authority
The Registrar has final authority regarding the design and content of any specialty
license plate and may disapprove of any proposed specialty license plate that does not meet
the standards of the Bureau of Motor Vehicles (BMV). Additionally, 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.3
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 BMV to verify the owner or lessee's identifying
information when submitting a registration application and required payments;
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;
1 R.C. 4503.261(A).
2 R.C. 4503.261(A), (B)(7), and (D), and R.C. 5502.68 .
3 R.C. 4503.261(C).
P a g e |3 H.B. 194
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
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 Registrar (a person or
entity that has sponsored a specialty license plate offered by the Registrar 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;
Authorization for the private vendor to collect fees 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.4
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
ANHB0194IN-135/ar
4 R.C. 4503.261(B).
5 R.C. 4503.261(A)(2); R.C. 4503.106, not in the bill.
P a g e |4 H.B. 194
As Introduced