OHIO LEGISLATIVE ACTIVITY OII Legislative Update: 10.19.15 – 10.23.15 HB 71 – Transportation Contracts (Roegner, K.) HB 71 prohibits certain indemnity agreements in motor vehicle carrier transportation contracts. The bill has been favorably reported by the Senate Civil Justice Committee, and will now be eligible for a vote by the Senate as a whole. HB 80/SB 75 – Agritourism (Rep. Burkley, T.) (Senators Jones, S., Peterson, B.) Limits the authority of a board of county commissioners or board of township trustees to prohibit agritourism through zoning, applies current agricultural use valuation to land used for agritourism for property tax purposes, and establishes immunity in a civil action for agritourism providers. The bill, passed by the House 92-0 in May, is now receiving hearings in the Senate Civil Justice Committee, where last week it received sponsor testimony explaining how the bill limits liability to sue agritourism operators. (B) In a civil action, an agritourism provider is immune from liability for any harm a participant sustains during an agritourism activity if the participant is harmed as a result of a risk inherent in an agritourism activity. Nothing in this section requires an agritourism provider to eliminate risks inherent in agritourism activities. Senate Bill 75, the companion bill to HB 80, was also heard in Senate Civil Justice Committee, where it was amended and favorably reported. The Amendment to the bill clarified that if a property already qualified for current agricultural use valuation that agritourism would not change that tax treatment. The House bill is not yet scheduled for another hearing, but Senate Bill 75 will likely be voted on before winter recess. HB 180 – Contractor Labor (Maag, R.) Prohibits a public authority from requiring a contractor to employ a certain percentage of individuals from the geographic area of the public authority for the construction or professional design of a public improvement. Representative Maag gave sponsor testimony on the bill in Senate Government and Oversight Committee, expressing that a residency requirement for labor would be damaging, and, among other things, would potentially lead to increases in insurance and bonding costs. The bill has not yet been slated for another hearing. HB 207 – Workers Compensation (Henne, M., McColley, R.) The bill allows a state fund employer to have a workers' compensation claim that is likely to be subrogated by a third party paid from the surplus fund account in the state insurance fund rather than charged to the employer's experience. In House Insurance Committee, Rep. Henne added a BWC-requested technical amendment that alters the bill’s effective date. The bill has yet to be scheduled for another hearing. HB 237 – Transportation Companies (Duffey, M., Hackett, B.) Rep. Duffey (R-Worthington) and Hackett's (R-London) bill is the compromise language to create financial responsibility requirements for transportation network companies (TNC) and TNC drivers. The bill received another hearing in Senate State and Local Government Committee last week, notably receiving interested party testimony from representatives of the Taxi industry, who were made several suggestions to the bill, most of which were aimed at placing taxi's on a similar level to TNCs. The requested changes included: Removal of the restriction that personal vehicles cannot be taxi's All for cash or credit card payment Require TNC drivers to obtain a vendors license or tax identification number Require the PUCO to maintain a record of all TNC drivers Require TNC vehicles be marked for identification Require more stringent background checks of TNC drivers Zach Schiller of Policy Matters Ohio also noted the need to further address creating stronger labor and employment provisions within the bill. Chairman of the committee, Senator Frank LaRose, noted he will be discussing suggested changes with interested parties over the next few weeks. The bill has not yet been scheduled for another hearing. HB 259 – Insurance Certificates (Ryan, S., Sears, B.) Regulates certificates of insurance prepared or issued to verify the purchase of property or casualty insurance coverage. Three amendments were proposed to House Bill 259, but only two ultimately were accepted. One amendment deals with the prompt payment requirements of Medicaid services, while the other amendment aims to reduce “negative experience” under the Bureau of Worker’s Compensation when transferring a business. House Bill 259 is being further reviewed and discussed by committee members after a proposed amendment which would restrict home health care workers who are paid through Medicaid from working over 40 hours and qualifying for overtime pay. The committee is continuing to discuss the amendment before proceeding forward with the bill. The bill has yet to be scheduled for another hearing. HB 279 – Vehicle Insurance (Henne, M.) Generally prohibits individuals who do not maintain statutory minimum levels of automobile insurance from collecting noneconomic damages for harm sustained in a motor vehicle accident. House Insurance Committee heard the bill last week with opposition testimony coming from Richard Topper, a member of the Ohio Association for Justice. He noted a need for allowing uninsured drivers to settle non-economic damages when another driver is proven to be at fault. In a series of exchanges between the Sponsor, Rep. Henne, and Mr. Topper, the Representative noted that similar legislation had passed in a dozen other states. A general back-and-forth between the two regarding the merits of the bill was pervasive through the testimony. PCI's Jeff Junkas also submitted written testimony in support of the bill, noting the need to remove incentives to drive without insurance. The bill has not yet been scheduled for another hearing. SB 44 – Child Seats (Schiavoni, J.) Allows the enforcement of child car seat, booster seat, and seat belt requirements as a primary offense and repeals a provision of law that declares that the failure of an operator of a motor vehicle to secure a child in a car seat, in a booster seat, or with a seat belt is inadmissible in certain criminal proceedings. Senate Minority Leader Schiavoni's bill received a 4th hearing in Senate Criminal Justice Committee last week, receiving testimony in support from the Ohio Prosecuting Attorneys Association. Though, Sen. Seitz suggested a need to amend the bill to better confine the language to children, rather than up to teenagers, as it currently would allow. The bill is not scheduled for another hearing. SB 151 – Dog Laws Sen. Bill Beagle (R-Tipp City) introduced SB 150 to revise provisions of the Dogs Law governing nuisance, dangerous, and vicious dogs and to revise enforcement. The bill would also establish a notification process regarding complaints of certain violations. The bill would establish an affirmative defense to the designation of a dog as a nuisance dog, dangerous dog, or vicious dog that the dog was teased, tormented, or abused by a person or that the dog was coming to the aid or defense of a person who was not engaged in illegal or criminal activity and who was not using the dog as a means of carrying out such activity. It also further specifies that no owner, keeper, or harborer of a dangerous dog shall fail to obtain liability insurance with an insurer authorized to write liability insurance in this state providing coverage in each occurrence because of damage or bodily injury to or death of a person caused by the dangerous dog if so ordered by a court. (1) Obtain liability insurance with an insurer authorized to write liability insurance in this state providing coverage in each occurrence because of damage or bodily injury to or death of a person caused by the dangerous dog if so ordered by a court and provide proof of that liability insurance upon request to any law enforcement officer, county dog warden, or public health official authorized to enforce this chapter; Receiving a hearing in Senate Agriculture Committee last week, a Montgomery County Commissioner, Humane Agent, and relative of a dog attack victim (Klonda Richey) spoke in support of the bill. The proponents testifying spoke to how the bill would increase accountability and protect individuals by increasing penalties against vicious dog owners. They went on to mention that Klonda Richey’s death could have been prevented had these measures been in place. The bill does not currently have another hearing scheduled. SB 181 – Fiduciary Duties (Obhof, L., Schiavoni, J.) Senators Obhof (R-Medina) and Schiavoni's (D-Boardman) bill would prescribe the fiduciary duties of corporate and limited liability company officers, specify that officers are not required for limited liability companies, permit a written waiver or elimination of the fiduciary duties of limited liability company members, managers, or officers, to clarify when a limited liability company manager's or officer's duties can be the same as a member's duties, declare the policy of the Limited Liability Company Law generally to give maximum effect to freedom of contract, and make other changes regarding corporations and limited liability companies. Under the bill, officers would have the following duties: Act in good faith. Act with the care of an ordinarily prudent person under similar circumstances. In the performance of these duties, an officer is entitled to rely on information and reports presented by directors, officers, or employees of the corporation or company, as well as counsel and accountants acting in accordance with their professional expertise, unless the officer has reason to believe the information or reports to be unwarranted. Violations of an officer's fiduciary duties must be proved by clear and convincing evidence. The bill did not hear any testimony, but was passed out of the Senate with a 32-0 vote. SB 183 – Private Investigators (LaRose, F., Thomas, C.) Amends the requirements related to the licensing and registration of private investigators and security officers. The reason this has any relation to insurance is because the PIs and Security Guards (PISGs) will, similar to current law, be required to show evidence of comprehensive, general liability insurance coverage, or other equivalent guarantee approved by the Department of Public Safety. The general liability coverage or another equivalent guarantee must be at least $100,000 for each person and $300,000 for each occurrence for bodily injury liability, and for property damage liability, at least $100,000. The bill had a substitute version adopted in Senate Transportation Commerce and Labor Committee, though the changes do not impact the insurance requirements and are more perfunctory for the investigators/security guards. Chairwoman Manning noted that the bill will be discussed over the next few weeks before it will receive a vote. HB 253/SB 209 – Rural Jobs (Rep. Retherford, W.)(Senator Hite, C.) Enacts the "Ohio Rural Jobs Act" which authorizes a nonrefundable tax credit for insurance companies that invest in rural business growth funds, which are certified to provide capital to rural and agricultural businesses Senator Hite's version of the bill, SB 209, did not receive testimony last week, but was passed out of committee and subsequently voted out of the Senate, 33-0. House Bill 253, the companion to SB 209, is up for a hearing on October 27th, in House Agriculture and Rural Development Committee. SB 213 – Cosmetology Law (Jordan, K., Tavares, C.) SB 213 is the recently introduced companion bill to HB 227, sponsored by Reps. Roegner and Reece. The pertinent component that is identical in both bills is the exemption of the $10,000 bond requirement for cosmetology schools if it is a vocational or career-technical school program conducted by a city, exempted village, local, or join vocational school district. (8) Files with the board a good and sufficient surety bond executed by the person individual, firm, or corporation operating the school of cosmetology as principal and by a surety company as surety in the amount of ten thousand dollars; provided, that this requirement does not apply to a vocational or career-technical school program conducted by a city, exempted village, local, or joint vocational school district. The bond shall be in the form prescribed by the board and be conditioned upon the school's continued instruction in the theory and practice of the branches of cosmetology. Every bond shall continue in effect until notice of its termination is given to the board by registered mail and every bond shall so provide. The bill received a hearing in Senate Government, Oversight, and Reform committee last week. There was proponent testimony to the bill, primarily from salon and cosmetologist representatives, as well as the American Sun tanning Association. Though, the testimony did not touch on the bonding process. The bill has not been scheduled for another hearing. SB 215 – Vehicle Forcible Entry (Hughes, J., LaRose, F.) Grants a person immunity from civil liability for any damage resulting from the forcible entry of a motor vehicle for the purpose of removing a minor or an animal from the vehicle because the minor or the animal is in imminent danger of suffering harm. The bill establishes certain criteria which must be met to grant immunity, including: (1) Determines the vehicle is locked or there is otherwise no reasonable method for the minor or the animal to exit the vehicle; (2) Has a good faith belief that forcible entry into the vehicle is necessary because the minor or the animal is in imminent danger of suffering harm if not immediately removed from the vehicle and, based upon the circumstances known to the person at the time, the belief is a reasonable one; (3) Has contacted the local law enforcement agency, the fire department, or a 9-1-1 operator prior to forcibly entering the vehicle; (4) Places a notice on the vehicle's windshield with the person's contact information, the reason the entry was made, the location of the minor or the animal, and the fact that the authorities have been notified; (5) Remains with the minor or the animal in a safe location, out of the elements but reasonably close to the vehicle, until law enforcement or emergency responders arrive; (6) Used not more force to enter the vehicle and remove the minor or the animal from the vehicle than was necessary under the circumstances. SB 215 received a hearing in Senate Civil Justice committee, where doctors and animal advocates testified in support of the measure. The bill has yet to be scheduled for another hearing. SB 223/HB 368 – Insurance Guarantors (Senator Bacon, K.) (Rep. Sears, B.) Makes changes to the health coverage benefit limits and coverage exclusions for life and health insurance guaranty associations by increasing thresholds for certain payments to claimants who hold policies with liquidated insurance companies. The bill, in part, increases maximum payments to better align Ohio with the rest of the country, by increasing payouts from $100,000 to $300,000 for disability and long-term care insurance, and moves major medical insurance up to $500,000. The legislation also clarifies payments for U.S. citizens living abroad; removes guaranty association coverage of Medicare Part C and D policies; bases structured settlement annuities on laws of where consumers reside, not the insurer; and requires a court order before an impaired insurance company triggers guaranty fund coverage. Before being voted out of Senate Insurance Committee, Alan Berliner of the Ohio Life and Health Insurance Guaranty Association testified, explaining the importance of the bill, and necessity of its expedient passage. The bill was unanimously passed out of the Senate last week. Rep. Sears bill, HB 368, received informal sponsor testimony in House Insurance Committee last week.