Lawmakers are off to summer break and that typically means one thing: A LOT of bills get passed. As they worked to wrap up loose ends before leaving Capitol Square Wednesday, both the House and Senate had marathon sessions, passing everything from bail reform to capital appropriations and giving the Governor plenty to review when it comes to all the bills headed his way. But first things first – congratulations are in order for our corporation law practitioners.
Corporation Law Proposal Clears House
On Wednesday, the House passed HB556 by a vote of 90-0. Sponsored by Rep. D.J. Swearingen (R-Huron), the bill is a proposal of the Ohio Bar’s Corporation Law Committee that seeks to align Ohio's nonprofit corporation law (ORC 1702) with its general corporation law (ORC 1701). It was approved as priority legislation by our Council of Delegates in 2018.
Among the notable changes is the addition of a new section of code that would address the fiduciary duties of officers, requiring them to act in good faith and bringing the law in line with 2016 amendments to the general corporation law that were enacted via SB181 of the 131st General Assembly. Another portion of the bill would allow religious organizations to opt in to the benefits and privileges associated with being an unincorporated nonprofit association under ORC 1745.
Our thanks to Rep. Swearingen for his support in ushering this bill through the House. We look forward to continuing our work in the Senate, where HB556 awaits introduction and a committee referral once lawmakers return.
Wrongful Death Proposal Clears Committee
We’ll also be keeping our eyes peeled for another Ohio bar priority bill once the Senate returns to action. HB279, an Ohio Bar Negligence Law Committee proposal unanimously passed the Senate Judiciary Committee and is headed to the Senate floor.
Sponsored by Reps. Richard Brown (D-Canal Winchester) and Scott Oelslager (R-North Canton), HB279 passed the House last June (just before the GA’s last summer break) and was taken up by the Senate in September. The bill was approved as priority legislation by our Council of Delegates in 2020.
HB279 seeks to improve and streamline the area of law having to do with wrongful death lawsuits. The substitute bill focuses on establishing who is an “interested person” entitled to notice of the settlement of wrongful death claims by an estate’s administrator or executor pursuant to the Rules of Superintendence. Under the bill, any surviving spouse, children and parents of the decedent are always interested persons entitled to notice – this is not a change in the law.
If the executor or administrator files an application to approve settlement and distribution of survival claims before or on the date that is two years after the decedent’s death, all other next of kin are interested persons entitled to notice. If the application is filed after the date that is two years from the decedent’s death, only other next of kin who have presented their claims to the probate court before that date are interested persons entitled to notice. This is a change in the law and would provide practitioners with predictability and uniformity across the state as to what to do when, while ensuring that there is finality to the settlement process.
General Assembly Rejects Select Rules in Supreme Court Annual Update Package
Using constitutional authority rarely exercised over the years the House and Senate each adopted SCR16, sponsored by Sen. Theresa Gavarone (R-Bowling Green), which disapproved certain provisions of the Ohio Supreme Court’s annual update package to the Ohio Rules of Practice and Procedure.
The package is the work product of the Commission on the Rules of Practice and Procedure, which annually conducts its review and recommends amendments to the Supreme Court. After two public comment periods and various refinements and revisions, the Supreme Court adopted the recommendations and filed them with the General Assembly on April 26. This is the process as outlined in Article IV of the Ohio Constitution under the Modern Courts Amendment (MCA). While the MCA ensured the Supreme Court has the authority to regulate the practice of law, it does allow for General Assembly legislative oversight in that they have the ability to disapprove the rules (whole or in part) prior to the July 1 effective date. And that’s just what they did.
The majority of the rules rejected Wednesday had to do with allowing for more remote proceedings, what legislators referred to as the “Zoom Rule,” which were originally recommended by the Supreme Court’s iCourt Task Force. In her floor speech, Sen. Gavarone said that although she did not oppose remote hearings, the issue wasn’t “fully cooked.” Lawmakers also rejected Rule 20 of the Rules of Juvenile Procedure concerning the service and filing of documents subsequent to the filing of a complaint and what constitutes proof of service.
Here’s the list of proposed rule amendments that were specifically rejected by the General Assembly and will not take effect:
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Ohio Rules of Civil Procedure Rule 1, Rule 1.1, Rule 30, Rule 39, and Rule 43 and their staff notes as well as the staff note to Rule 16.
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Ohio Rules of Criminal Procedure Rule 1, Rule 2, Rule 10, Rule 40 and Rule 43 and staff notes to Rule 40 and Rule 43.
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Ohio Rules of Evidence Rule 101.
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Ohio Rules of Juvenile Procedure Rule 1, Rule 2, Rule 20, Rule 25, Rule 27, Rule 29, Rule 34 and Rule 41.
The remaining rules in the package will take effect on July 1. Note - If you have interest in this process, Legislative Counsel Scott Lundregan wrote all about it in an Ohio Lawyer column last year and you can also refresh your memory on the Modern Courts Amendment via Ohio Lawyer. It celebrated its 50th anniversary back in 2019 when the article was published.
General Assembly Sends Bail Reform Constitutional Amendment and Ban on Non-Citizen Voting to Ballot
On Wednesday, the Senate also adopted HJR2, sponsored by Reps. Jeff LaRe (R-Canal Winchester) and D.J. Swearingen (R-Huron), by a vote of 25-7. The House adopted the resolution last week and the Senate’s action now sends a proposal to amend Section 9 of Article I of the Ohio Constitution to the ballot in the November 2022 general election. Voters will decide whether to amend the constitution to allow judges to consider factors like public safety, a person's prior criminal record and the seriousness of the offense when determining bail amounts and limit the Supreme Court’s ability to prescribe rules related to the amount and conditions of bail. The proposal is a response to the Ohio Supreme Court’s January ruling in DuBose v. McGuffey, in which the court ruled 4-3 that bail determinations should be limited to a defendant's risk of non-appearance in court.
Ohio voters will also decide in November on whether to expressly prohibit local governments from allowing non-citizens to vote in local elections now that the Ohio House and Senate (by a vote of 32-0 this week) have both passed HJR4, sponsored by Reps. Jay Edwards (R-Nelsonville) and Bill Seitz (R-Cincinnati).
And speaking of ballots...
Secretary of State Orders Preparation for Aug. 2 Primary
After the U.S. District Court for the Southern District of Ohio last Friday ordered the state to use “Map 3” (that had previously been rejected by the Ohio Supreme Court) for its state legislative districts and to hold an Aug. 2 primary election for state races, Secretary of State Frank LaRose issued a directive to county boards of elections to begin preparations and program their systems by June 7, which many boards have already done due to a previous directive. These state maps will be in place for one election cycle only.
Meanwhile, a group of six potential Democratic state legislative candidates have filed a lawsuit in the Ohio Supreme Court asking for an order that their candidate filings be accepted by their boards of elections if they were filed before 4 p.m. on May 4 or before 4 p.m. on May 23 for write-in candidates. Under Map 3, the plaintiffs’ districts are different than what they would have been at the time of the Feb. 2 filing deadline for the May 3 primary and they argue that they should be allowed to run in their new districts, many of which have no Democratic candidate.
Other Bills That Were Passed This Week
On the Way to the Governor
HB687, the State Capital Bill, sponsored by Rep. Scott Oelslager (R-North Canton), would amend Sections 219.10, 221.10, 221.13, 223.10, 223.15, 227.10, 229.10, 229.20, 237.10, and 237.13 of HB597 of the 134th General Assembly to provide authorization and conditions for the operation of certain state programs, make capital appropriations for the biennium ending June 30, 2024 and make other appropriations. The bill passed the House 82-8 and the Senate 32-0, sending it to the Governor’s desk.
SB231, sponsored by Sen. Jay Hottinger (R-Newark), would expressly authorize the issuance of an income tax refund in the name of a deceased taxpayer's fiduciary. The House passed the bill with a vote of 89-0 and it now goes to the Governor for his signature.
SB246, sponsored by Sens. Michael Rulli (R-Salem) and George Lang (R-West Chester), would levy a tax on a pass-through entity's income apportioned to Ohio and authorize a refundable income tax credit for an owner for such tax paid. The House passed the bill with a vote of 87-2 and it now goes to the Governor for his signature.
SB273, sponsored by Sens. Jay Hottinger (R-Newark) and Robert Hackett (R-London), would amend the law governing the Ohio Life and Health Insurance Guaranty Association and make changes regarding required distributions under an alternative retirement plan. The bill passed the House with a vote of 88-0 and heads to the Governor for his signature.
SB287, sponsored by Sen. Nathan Manning (R-North Ridgeville), would allow county credit card charges for temporary and necessary assistance care provided by a county veterans service office. The bill passed the House with a vote of 88-0 and heads to the Governor for his signature.
HB99, sponsored by Rep. Thomas Hall (R-Madison Township), would expressly exempt persons authorized to go armed within a school safety zone from a peace officer basic training requirement, impose training and other requirements on those persons and require that a board of education or school governing body that authorizes persons to go armed in a school provide public notice of that authorization. The Senate passed the bill by a vote of 23-9 and the House later concurred with Senate amendments by a vote of 56-34, sending the bill over to the Governor.
HB193, sponsored by Reps. Alessandro Cutrona (R-Canfield) and Gail Pavliga (R-Atwater) deals with electronic prescriptions for Schedule II controlled substances. The Senate passed the bill by a vote of 31-1 and the House later concurred with Senate amendments by a vote of 85-0, sending the bill over to the Governor.
HB371, sponsored by Reps. Jean Schmidt (R-Miami Township) and Sedrick Denson (D-Cincinnati), would revise the laws governing coverage of screening mammography and patient notice of dense breast tissue. The Senate passed the bill with a vote of 31-1 and sent it to the House, which concurred with Senate amendments by a vote of 84-0. It now heads to the Governor.
HB377, sponsored by Rep. Thomas Hall (R-Madison Township), would amend Section 220.11 of HB168 of the 134th General Assembly to make an appropriation related to coronavirus local fiscal recovery. The bill was passed in the Senate by a vote of 31-1, the House concurred 80-10 and the bill now goes to the Governor.
HB430, sponsored by Rep. Jon Cross (R-Kenton), addresses underground utility facilities affected by construction, exempts mobile computing units from certain building regulation, makes changes relating to the Landlord and Tenant Law, limits regulation of telecommunications, wireless or internet protocol-enabled service providers, revises the law governing the plugging of idle and orphaned wells and revises the use of the Abandoned Mine Reclamation Fund. It would also designate April as "Ohio Work Zone Safety Awareness Month." The Senate passed the bill by a vote of 25-6 and it then earned a 55-28 House concurrence. It, too, goes to the Governor.
HB515, sponsored by Reps. James Hoops (R-Napoleon) and Craig Riedel (R-Defiance), would exempt from income tax certain gains from the sale of an ownership interest in a business. The Senate passed the bill with a vote of 31-0, the House concurred 85-0 and it now goes to the Governor.
HB518, sponsored by Rep. James Hoops (R-Napoleon), would create the Fulton County Municipal Court in Wauseon on Jan. 1, 2024, establish one full-time judgeship in that court, abolish the Fulton County Court on that date, provide for the election for the Fulton County Municipal Court of one full-time judge in 2023, expand the jurisdiction of the Housing Division of the Toledo Municipal Court, and relative to the Hamilton County Municipal Court. The Senate passed the bill with a vote of 32-0 and the House later concurred 80-7, sending the bill to Governor DeWine.
HB583, sponsored by Reps. Adam Bird (R-New Richmond) and Don Jones (R-Freeport), is an education omnibus bill originally concerning educator licenses for substitute teachers. The bill would establish a study committee on the substitute teacher shortage. The Senate last week adopted several amendments to the bill. It would now also make changes to the school financing system, the Educational Choice Scholarship Program, the Pilot Project Scholarship Program, the ACE Educational Savings Account Program, Community Schools of Quality, community school sponsors, state funding for certain community schools, dyslexia screening requirements, tutoring programs, alternative resident education licenses, Ohio School Safety Month, the career-technical education income tax credit and practical nurse education programs. HB583 also contains an appropriation. The House concurred with the Senate amendments by a vote of 54-36, sending this bill on to the Governor to be signed into law.
HB140, sponsored by Rep. Derek Merrin (R-Monclova Township), would enact the "Ballot Uniformity and Transparency Act" to modify the form of election notices and ballot language for property tax levies. The bill passed the Senate by a vote of 22-10 and now heads to the Governor to be signed into law.
HB206, sponsored by Reps. Haraz Ghanbari (R-Perrysburg) and Michael O'Brien (D-Warren), would permit a township police officer who serves a population between 5,000 and 50,000 to enforce specified traffic offenses on interstate highways within the township if authorized by that township's board of trustees. The bill passed the Senate by a vote of 29-3 and heads to the Governor.
HB447, sponsored by Rep. Brian Lampton (R-Beavercreek), has to do with workers' compensation for employees who work from home and other changes to the Workers' Compensation Law. The bill passed the Senate by a vote of 32-0 and moves on to the Governor’s desk.
HB537, sponsored by Rep. Cindy Abrams (R-Harrison), would designate February 12 as "Cholangiocarcinoma Awareness Day." The bill passed the Senate by a vote of 32-0. It, too, heads to the Governor.
SB61, sponsored by Sen. Louis Blessing III (R-Cincinnati) and Nickie Antonio (R-Lakewood), regards condominiums, planned community properties, and new communities. The bill passed the House last week and the Senate concurred with House amendments this week by a vote of 32-0, sending it on to the Governor’s desk.
SB156, sponsored by Sen. Kristina Roegner (R-Hudson), recognizes knives as “arms” that are constitutionally protected and provides uniform laws throughout the state regarding the ownership, possession and purchase of knives. The bill passed the House by a vote of 57-32 and the Senate later concurred 25-7, sending the bill on to the Governor’s desk.
SB160, sponsored by Sen. Sandra O'Brien (R-Ashtabula), would require certain entities to inform veterans and their spouses about available health care benefits, require the Department of Medicaid to inform a veteran who applies for Medicaid about the county veterans service commission and to name the act the “Veteran Information Act.” The bill passed the House by a vote of 84-0 and later earned Senate concurrence 32-0. It now goes to the Governor.
SB224, sponsored by Sen. Jerry Cirino (R-Kirtland), would make changes to the laws that impact funeral homes, funeral professionals, funeral hearses, funeral escort vehicles, pre-need funeral contracts and the parental right of disposition for a deceased adult child. It would also require the appointment of alternates to the Ohio Elections Commission. The bill passed the House by a vote of 83-0 and the Senate concurred 32-0. It moves on to the Governor.
SB225, sponsored by Sen. Kirk Schuring (R-Canton), would modify the historic rehabilitation and the opportunity zone investment tax credits, adjust the applicability of certain recently enacted provisions related to tax increment financing and downtown redevelopment districts and authorize the City of Canton to distribute moneys in the Hartford-Houtz Poor Fund to the Canton Ex-Newsboys Association or any other charitable organization. The bill passed the House by a vote of 85-5 and later earned Senate concurrence with a vote of 32-0. It now goes to the Governor.
SB239, sponsored by Sen. Louis Blessing III (R-Cincinnati), regards qualifications for professional treatment staff. The bill took on an amendment on the House floor having to do with a pay raise for direct care workers and passed the chamber 55-31. The Senate later concurred with a vote of 32-0 sending the bill on to DeWine.
SB264, sponsored by Sen. Andrew Brenner (R-Delaware), would regulate remote work by mortgage loan originators and other persons working for entities subject to the Residential Mortgage Lending Act. The bill passed House 86-1 and the Senate concurred with House amendments 32-0. It goes to the Governor’s desk.
Passed the House:
HB142 sponsored by Reps. Erica Crawley (D-Columbus) and Tom Brinkman (R-Mt. Lookout), would allow Medicaid to cover doula services. The bill passed the House with a vote of 81-3 and moves on to the Senate for further consideration.
HB151, sponsored by Rep. Don Jones (R-Freeport), would amend the version of section 3319.223 of the Revised Code (the Teacher Residency Program) that is scheduled to take effect on April 12, 2023, continue the changes on and after that date, reduce the duration of the Alternative Resident Educator License from four to two years, revise the Ohio Teacher Residency Program as it exists beginning on April 12, 2023 and require one day of professional development leave each school year for classroom teachers to observe veteran teachers. The bill was amended on the floor to include language that would prohibit transgender women and girls from participating in women’s and girl’s sports. The amendment and the bill passed the House by a vote of 56-28 and it now heads to the Senate for further consideration.
HB203, sponsored by Rep. Jena Powell (R-Arcanum), would require an occupational licensing authority to issue a license or government certification to an applicant who holds a license, government certification or private certification or has satisfactory work experience in another state under certain circumstances and would amend the version of section 3319.22 of the Revised Code (standards and requirements for educator licenses; local professional development committees) that is scheduled to take effect on April 12, 2023 and continue the changes on and after that date. The bill passed the House with a vote of 54-33 and moves on to the Senate for further consideration.
HB492, sponsored by Reps. Mike Loychik (R-Bazetta) and Gail Pavliga (R-Atwater), would require school athletic coaches to complete mental health training and to revise the renewal requirements for pupil-activity program permits. The bill passed the House with a vote of 50-35 and moves on to the Senate for further consideration.
HB497, sponsored by Reps. Gayle Manning (R-North Ridgeville) and Phil Robinson (D-Solon), would eliminate retention under the Third Grade Reading Guarantee. The bill passed the House with a vote of 80-10 and moves on to the Senate for further consideration.
HB501, sponsored by Rep. Thomas Hall (Madison Township), would make various township law changes. The bill passed the House with a vote of 86-2 and moves on to the Senate for further consideration.
HB513, sponsored by Reps. Jon Cross (R-Kenton) and Bill Roemer (R-Richfield), has to do with the deduction and recovery of bad debts for cigarette and tobacco and vapor products taxes. The bill passed the House with a vote of 89-0 and heads to the Senate for further consideration.
HB575, sponsored by Rep. Alessandro Cutrona (R-Canfield), would modernize fraternal benefit society solvency regulation and oversight. It passed the House with a vote of 90-0 and heads to the Senate.
HB578, sponsored by Rep. Bill Roemer (R-Richfield), would create and amend various license plates and designate memorial highways. The bill passed the House by a vote of 90-0 and moves on to the Senate for further consideration.
HCR46, sponsored by Reps. Mark Johnson (R-Chillicothe) and Shane Wilkin (R-Lynchburg), would urge President Biden not to recommend to Congress that the Veterans Affairs Medical Center located in Chillicothe, Ohio be closed. The House adopted the resolution by a vote of 89-0, sending it on to the Senate for further consideration.
Passed the Senate:
SB131, sponsored by Sens. Kristina Roegner (R-Hudson) and Robert McColley (R-Napoleon), would require an occupational licensing authority to issue a license or government certification to an applicant who holds a license, government certification or private certification or has satisfactory work experience in another state under certain circumstances and would amend the version of section 3319.22 of the Revised Code that is scheduled to take effect on April 12, 2023 and continue the changes on and after that date. It passed the Senate with a vote of 31-0 and heads to the House for further consideration.
SB164, sponsored by Sens. Jay Hottinger (R-Newark) and Kenny Yuko (D-Richmond Heights), would revise the law and penalties associated with companion animal cruelty and to prohibit the destruction of a domestic animal by the use of a gas chamber. It passed the Senate with a vote of 32-0 and heads to the House for further consideration.
SB255, sponsored by Sens. Nickie Antonio (D-Lakewood) and Sandra Williams (D-Cleveland), would designate a portion of Lorain Avenue in Cleveland as the "Officer Wayne A. Leon Memorial Highway." It passed the Senate with a vote of 32-0 and heads to the House for further consideration.
SB269, sponsored by Sen. Nathan Manning (R-North Ridgeville), would clarify that the State Lottery Commission has the authority to operate certain internet lottery games and prohibit the Commission from conducting internet lottery game versions of certain number match lottery games. It passed the Senate with a vote of 30-2 and heads to the House for further consideration.
SB323, sponsored by Sen. Robert Hackett (R-London), would designate multiple memorial highways. It passed the Senate with a vote of 32-0 and heads to the House for further consideration.
Week Ahead
We don’t expect to see lawmakers back in session until after the November election and, with all that time on our hands, you may be thinking that now might be the perfect time to brush up on what’s happened and what’s coming up at the Statehouse. Us too. It’s no accident that, on Monday, Ohio Bar Policy Director and Legislative Counsel Scott Lundregan will be presenting his quarterly legislative update. He’ll be joined by Senate Majority Whip Rob McColley (R-Napoleon) to cover the latest on bills that are important to the profession and what we should look forward to when legislators return to Capitol Square. It’s always complimentary for Ohio Bar members so be sure to join us from the comfort of your home or office and remember to register here.
And, on Friday, our Fourth Annual Solo and Small Firm Institute is a full-day affair, jam-packed with useful information. Attendees will get updates on tech, ethics, marketing, wellness and more. You can join us in person or via webcast.
Happy Summer!
