HB 151: Allocate state revenue surplus to fund road and bridge projects

As Introduced

136th General Assembly Regular Session 2025-2026

H. B. No. 151

Representative Stephens

A B I L L

To amend section 131.44 and to enact section 1
5501.62 of the Revised Code and to amend Section 2
755.30 of H.B. 33 of the 135th General Assembly 3
to codify it as section 5501.61 of the Revised 4
Code to allocate a portion of any state revenue 5
surplus to a program that funds certain road and 6
bridge projects. 7

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

Section 1. That section 131.44 be amended and section 8
5501.62 of the Revised Code be enacted to read as follows: 9

Sec. 131.44. (A) As used in this section: 10

(1) "Surplus revenue" means the excess, if any, of the 11
total fund balance over the required year-end balance. 12
(2) "Total fund balance" means the sum of the unencumbered 13
balance in the general revenue fund on the last day of the 14
preceding fiscal year plus the balance in the budget 15
stabilization fund. 16
(3) "Required year-end balance" means the sum of the 17
following: 18

H. B. No. 151 As Introduced

(a) Ten per cent of the general revenue fund revenues for 19
the preceding fiscal year; 20
(b) "Ending fund balance," which means one-half of one per 21
cent of general revenue fund revenues for the preceding fiscal 22
year; 23
(c) "Carryover balance," which means, with respect to a 24
fiscal biennium, the excess, if any, of the estimated general 25
revenue fund appropriation and transfer requirement for the 26
second fiscal year of the biennium over the estimated general 27
revenue fund revenue for that fiscal year; 28
(d) "Capital appropriation reserve," which means the 29
amount, if any, of general revenue fund capital appropriations 30
made for the current biennium that the director of budget and 31
management has determined will be encumbered or disbursed. 32
(4) "Estimated general revenue fund appropriation and 33
transfer requirement" means the most recent adjusted 34
appropriations made by the general assembly from the general 35
revenue fund and includes both of the following: 36
(a) Appropriations made and transfers of appropriations 37
from the first fiscal year to the second fiscal year of the 38
biennium in provisions of acts of the general assembly signed by 39
the governor but not yet effective; 40
(b) Transfers of appropriations from the first fiscal year 41
to the second fiscal year of the biennium approved by the 42
controlling board. 43
(5) "Estimated general revenue fund revenue" means the 44
most recent such estimate available to the director of budget 45
and management. 46

H. B. No. 151 As Introduced

(6) "Sales tax holiday" has the same meaning as in section 47
5739.01 of the Revised Code. 48
(B)(1) Not later than the thirty-first day of July each 49
year, the director of budget and management shall determine the 50
surplus revenue that existed on the preceding thirtieth day of 51
June and transfer from the general revenue fund, to the extent 52
of the unobligated, unencumbered balance on the preceding 53
thirtieth day of June in excess of one-half of one per cent of 54
the general revenue fund revenues in the preceding fiscal year, 55
the following: 56
(a) First, to the budget stabilization fund, any amount 57
necessary for the balance of the budget stabilization fund to 58
equal ten per cent of the general revenue fund revenues of the 59
preceding fiscal year; 60
(b) Then, to the expanded sales tax holiday fund, which is 61
hereby created in the state treasury, an amount equal to the 62
lesser of the surplus revenue or the amount that would cause the 63
balance of the fund to equal two hundred fifty million dollars; 64
(c) Then, to the Connect4Ohio fund created in section 65
5501.62 of the Revised Code, an amount equal to any remaining 66
surplus revenue after making the transfer described in division 67
(B)(1)(b) of this section. 68
(2) Not later than the thirty-first day of July of 2024 69
and each year thereafter, if the balance in the expanded sales 70
tax holiday fund is sixty million dollars or more, the director 71
shall certify to the tax commissioner that a sales tax holiday 72
shall be held in August of the following fiscal year. The 73
commissioner, in consultation with the director and county 74
commissioners association of Ohio, shall determine the number of 75

H. B. No. 151 As Introduced

days for which the sales tax holiday will be held, which shall 76
be at least three days, and which may include additional days if 77
the commissioner and director determine that the balance in the 78
expanded sales tax holiday fund is sufficient to reimburse the 79
general revenue fund, local government fund, public library 80
fund, and permissive tax distribution fund for the revenue that 81
would be forgone on four or more of the dates during the period 82
specified in section 5739.41 of the Revised Code. In making the 83
determination, the commissioner and director shall take into 84
account estimated changes in consumer behavior during the time 85
of and immediately preceding and following the sales tax 86
holiday. 87

(C) The director of budget and management shall transfer money in the expanded sales tax holiday fund to the general revenue fund, local government fund, public library fund, and permissive tax distribution fund as necessary to offset revenue reductions resulting from a sales tax holiday held under section 5739.41 of the Revised Code. The amount transferred to each such fund, and the amounts distributed to counties and transit authorities from the permissive tax distribution fund, shall be in the same proportions as the transfer and distribution of taxes actually collected under sections 5739.02, 5739.021, 5739.023, 5739.026, 5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code in August of the fiscal year in which the sales tax holiday is held. If no sales tax holiday is held under section 5739.41 of the Revised Code in the current fiscal year, the director shall not transfer money from the sales tax holiday fund to the general revenue fund, local government fund, public library fund, or permissive tax distribution fund.

Sec. 5501.62. The Connect40hio fund is created in the state treasury. The fund shall consist of money appropriated to

H. B. No. 151 As Introduced

it by the general assembly and money transferred to it by the 107
director of budget and management in accordance with section 108
131.44 of the Revised Code. All investment earnings of the fund 109
shall be credited to the fund. 110
The director of transportation shall administer the fund 111
and use the money in it to support the Connect4Ohio program 112
established in section 5501.61 of the Revised Code and for the 113
purposes of that program. 114
Section 2. That existing section 131.44 of the Revised 115
Code is hereby repealed. 116
Section 3. That Section 755.30 of H.B. 33 of the 135th 117
General Assembly be amended to codify it as section 5501.61 of 118
the Revised Code to read as follows: 119

Sec. 755.30 5501.61. (A) As used in this section, "rural county" means a county that does not contain a municipal corporation with a population greater than fifty-five thousand residents according to the most recent federal decennial census.

(B) The Connect4Ohio Program program is created, and the 124
Department department of Transportation transportation shall 125
administer the Programprogram. The purpose of the Program 126
program is to assist in creating seamless transportation 127
connections throughout all of Ohio and, by doing so, to make it 128
easier for all Ohio workers to commute from their homes to 129
employment centers. 130
(C) As part of the Programprogram, the Department 131
department and the Transportation Review Advisory Council 132
transportation review advisory council (TRAC) shall work 133
together to provide funding for unfunded projects included on 134
the "Final 2023 - 2026 Major New Construction Program List, TRAC 135

H. B. No. 151 As Introduced

Tier 1 - Construction Commitments; TRAC Tier 2 - Development 136
Commitments; TRAC Tier 3 - Development Commitments"major new 137
construction program list for the TRAC tiers document that was 138
is published by the Department on March 29, 2023department 139
annually. The provision of funding shall be consistent with the 140
following priorities: 141
(1) Completing existing corridor projects, particularly 142
corridor projects that benefit two or more connected rural 143
counties; 144
(2) Eliminating traffic impediments on county, township, 145
state, and federal highway routes, particularly within rural 146
counties; 147
(3) Funding such projects at one hundred per cent of the 148
project cost, when appropriate, particularly for projects that 149
are located in a rural county or that extend between two or more 150
connected rural counties; 151
(4) Providing the necessary matching funds to receive TRAC 152
approval for any construction projects that are related to the 153
Program program and its purpose. 154
(D) The Director director of Transportation transportation 155
shall establish any procedures and requirements necessary to 156
administer this section. 157
Section 4. That existing Section 755.30 of H.B. 33 of the 158
135th General Assembly is hereby repealed. 159
Section 5. Not later than the tenth day after the 160
effective date of this section, the Director of Budget and 161
Management shall transfer all but two hundred fifty million 162
dollars from the Expanded Sales Tax Holiday Fund created in 163
section 131.44 of the Revised Code to the Connect4Ohio Fund 164

H. B. No. 151 As Introduced

created in section 5501.62 of the Revised Code.