OSBA Legislation Update

October 30, 2007


OSBA LEGISLATION IS ON THE MOVE

The OSBA currently has eight bills for the 127th General Assembly; seven have been introduced in the first ten months of the two-year session.

Since the last report, there has been activity on the following OSBA bills:

Senate Bill 134 – memoranda of trust; sponsor: Senator Keith Faber; OSBA contact: Steve Buchenroth; reported by the House Civil and Commercial Law Committee on September 20; passed the House on October 3; awaiting the Governor’s signature.

House Bill 258 – financial responsibility; sponsor: Representative Gerald Stebleton; OSBA contacts: Dan Michel, Bill Strubbe, Sharon Little; sponsor and expert testimony October 2; proponent testimony October 16; opponent testimony October 23.

House Bill 332 – Revised Uniform Partnership Act; sponsor: Representative Mark Wagoner; OSBA contact: Glenn Morrical; introduced on October 2; assigned to House Civil and Commercial Law Committee; sponsor testimony October 17; proponent testimony October 24.

House Bill ___ - corporation law; sponsor: Representative William Coley; OSBA contact: David Porter; expected to be introduced October 31. The bill would:

·  amend R.C. Sections 1701.04; 1701.55; 1701.58 and 1701.69 to permit a corporation’s original articles to eliminate cumulative voting; and

·  amend R.C. Section 1701.76 to clarify when a shareholder vote is needed in the sale of a subsidiary’s assets and in the sale of assets to a subsidiary.


Ohio State Bar Association Legislation Program

(Bills Sponsored by the OSBA)

127th General Assembly

2007-2008

Corporation law (House Bill 134; Representative Bill Seitz) – Majority standard; conversion; limited liability corporations; non-profit corporations

Proposal to amend section 1701.55 of the Ohio Revised Code to explicitly permit a

corporation’s articles to permit a majority rather than plurality standard in

elections for directors

Proposal to make technical amendments to sections 1701.782 and 1701.792 of the

Ohio Revised Code to conform the language in the conversion provisions of

Chapter 1701 to parallel language in Chapters 1705, 1775, and 1782

Proposal to amend R.C. Section 1705.21 to permit the operating agreement of an LLC

to control the rights and powers of an executor or administrator after the death or

adjudication of incompetence of an LLC member

(From the OSBA Corporation Law Committee)

Corporation law – Revised Uniform Partnership Act (House Bill 332; Representative Mark Wagoner)

Proposal to repeal Ohio’s partnership law and to enact the Revised Uniform Partnership Act in Ohio

(From the OSBA Corporation Law Committee)

Corporation law – cumulative voting; shareholder voting; sale of assets and sale of

subsidiary’s assets (Representative William Coley)

Proposal to amend R.C. Sections 1701.04; 1701.55; 1701.58 and 1701.69 to permit a

corporation’s original articles to eliminate cumulative voting

Proposal to amend R.C. Section 1701.76 to clarify when a shareholder vote is needed

in the sale of a subsidiary’s assets and in the sale of assets to a subsidiary

Probate law (Senate Bill 157; Senator Steve Buehrer) – Proposal to amend Section 1337.09 of the Ohio Revised Code and to enact a new Section 2111.122 of the Ohio Revised Code to establish a statutory authority for the nomination of a guardian for an adult incompetent child

(From OSBA Estate Planning, Trust & Probate Law Section)


Probate law (House Bill 160; Representative Danny Bubp) – Proposal to amend the

Ohio Disclaimer statute at R.C. 1339.69 in order to clarify and modernize its

provisions

(From the OSBA Estate Planning, Trust & Probate Law Section)


Family law (House Bill 178; Representative Louis Blessing, Jr.) – Health insurance;

child support

Proposal to amend R.C. 3119.30 to define the “reasonable cost of health insurance” in

child support orders

(From the OSBA Family Law Committee)

Real property law (Senate Bill 134; Senator Keith Faber) – Memorandum of trust Proposal to amend R.C. 5301.255 so that the requirement that a Memorandum of

Trust be executed by the settlor of the trust and that the Memorandum of Trust

disclose the name and address of the settlor would be deleted

(From the OSBA Real Property Section)

Insurance law (House Bill 258 – Representative Gerald Stebelton) – Financial

Responsibility

Proposal to amend R.C. 4509.51 to increase the minimum amount of insurance

required under the financial responsibility law

(From the OSBA Insurance Law Committee)

OSBA LEGISLATION INVENTORY

(Bills the OSBA is following)

HB3 / ESTATE TAXES (LATTA, R)To eliminate the state portion of the estate tax. The new bill would gradually raise the practical threshold of liability to apply to estates of more than $600,000 by 2010.
Current Status: / 4/25/2007 - House Ways and Means, (Sixth Hearing)
HB4 / LOCAL GOVERNMENTS (WOLPERT, L)Gives the state's portion of the estate tax to local municipalities, and allows local governments to opt out of the estate tax.
Current Status: / 4/25/2007 - House Ways and Means, (Sixth Hearing)
HB5 / EMINENT DOMAIN (GIBBS, B)Implements recommendations made by the Eminent Domain Task Force,
Current Status: / 6/19/2007 - Referred to State and Local Government and Veterans Affairs Committee
HB7 / ADOPTION (BRINKMAN, T)To reduce the barriers to adoption in Ohio including complications and red tape in the legal system and exorbitant costs.
Current Status: / 2/20/2007 - Referred to Health Committee
HB10 / JUROR COMPENSATION (WOLPERT, L)Provide that a board of county commissioners may fix the compensation of jurors in the court in an amount that differs from the compensation of jurors in the court of common pleas.
Current Status: / 4/19/2007 - House Judiciary, (Second Hearing)
HB46 / CONSUMER'S CREDIT REPORT (STEWART, J)To require a consumer reporting agency to place a security freeze on a consumer's credit report in response to a consumer's request.
Current Status: / 5/23/2007 - Referred to Judiciary - Civil Justice Committee
HB89 / CHARITABLE DONATIONS (COLEY, W)To provide persons who donate consumer goods to a charitable agency with qualified immunity from civil liability for harm that allegedly arises because the consumer goods are not fit for use and to establish a qualified immunity from civil liability for certain charitable agencies that distribute perishable food or consumer goods free of charge to individuals in need.
Current Status: / 7/19/2007 - SIGNED BY GOVERNOR; Eff. 10/18/07
HB119 / BIENNIAL BUDGET (DOLAN, M)To make operating appropriations for the biennium beginning July 1, 2007 and ending June 30, 2009, and to provide authorization and conditions for the operation of state programs.
Current Status: / 6/30/2007 - 6/30/2007 - SIGNED BY GOVERNOR, appropriations eff. 6/30/2007-some sections different dates
HB134 / CORPORATION LAW (SEITZ, B)To modify corporation law relating to the election of directors and to conform conversion provisions of Chapter 1701. of the Revised Code with parallel provisions in Chapters 1705., 1775., and 1782. of the Revised Code.
A product of the OSBA Corporation Law Committee
Current Status: / 7/19/2007 - SIGNED BY GOVERNOR; Some sections eff. 1/1/08; others 10/18/07
HB138 / JUDICIAL SALE-PROPERTY (FOLEY, M)To require purchasers of real property at a judicial sale to provide certain identifying information and to make other changes in judicial sales of real property.
Current Status: / 6/13/2007 - REPORTED OUT AS AMENDED
HB154 / MAYOR'S COURTS (WOLPERT, L)To abolish mayor's courts and to create community courts and to modify the compensation of municipal court judges in territories having a population of more than 50,000.
Current Status: / 6/13/2007 - 6/13/2007 - House Judiciary, (Fourth Hearing)
HB160 / OHIO TRUST CODE (BUBP, D)To clarify and modify the law relating to disclaimers under the Ohio Trust Code.
A product of the OSBA Estate Planning, Trust & Probate Law Section
Current Status: / 10/23/2007 - Senate Judiciary - Civil Justice, (First Hearing)
HB173 / JUDGES (SEITZ, B)To increase the compensation of justices and judges of the courts, to change the qualifications of all judges, to require the Supreme Court to establish a qualification program for candidates for judicial office, to create the Judicial Allotment Review Commission to study and review the allotment of judgeships in the courts for the purpose of recommending legislation to ensure the efficient and prompt administration of justice in Ohio, to create the Judicial Appointment Review Commission to make recommendations of persons to fill judicial vacancies, to specify that a portion of certain court costs currently deposited to the credit of the Reparations Fund be deposited in the fund for court security, and to make appropriations for court-related purposes.
Current Status: / 10/3/2007 - 10/3/2007 - House Judiciary, (Sixth Hearing)
HB178 / HEALTH INSURANCE/CHILD SUPPORT (BLESSING, L)To define the reasonable cost of health insurance coverage in child support orders.
A product of the OSBA Family Law Committee
Current Status: / 5/9/2007 - House Juvenile and Family Law, (First Hearing)
HB219 / TESTIMONIAL PRIVILEGE (PATTON, T)To create a testimonial privilege for communications between a representative of an employee organization and a bargaining unit member.
Current Status: / 6/26/2007 - 6/26/2007 - House Commerce and Labor, (First Hearing)
HB222 / LAND SALE PUBLIC NOTICES (ZEHRINGER, J)To permit instead of require that public notices and advertisements of the sale of lands and tenements taken in execution contain a description of the lands and tenements and to permit those advertisements to be made on the sheriff's web site.
Current Status: / 5/31/2007 - 5/31/2007 - House Local and Municipal Government and Urban Revitalization, (First Hearing)
HB255 / PROBATE/GUARDIANSHIP REQUIREMENTS (LATTA, R)To allow appointment of a nonprofit corporation or public agency as guardian of a person, allow an executor or administrator to accept the county auditor's valuation of real estate, provide that the testimonial privilege between a physician or dentist and a patient does not apply in certain guardianship, adult protective services, commitment, or institutionalization proceedings, eliminate the requirement that a probate court act as a board of education, or governing board of an educational service center that fails to perform its duties, and require a probate court to promptly fill a school board vacancy not filled within 30 days.
Current Status: / 6/25/2007 - 6/25/2007 - House Judiciary, (Third Hearing)
HB258 / FINANCIAL RESPONSIBILITY PROOF (STEBELTON, G)To increase the minimum amounts required for valid proof of financial responsibility.
A product of the OSBA Negligence & Insurance Law Committees
Current Status: / 10/23/2007 - House Insurance, (Third Hearing)
HB332 / REVISED UNIFORM PARTNERSHIP ACT (WAGONER, M)To adopt the Uniform Partnership Act to be known as the "Ohio Uniform Partnership Act (1997)," to establish that on and after January 1, 2009, the act governs new partnerships and partnerships that elect to be governed by the act, to establish that effective January 1, 2010, the act governs all partnerships in Ohio, and to establish that effective January 1, 2010, the existing Ohio Partnership Law no longer governs partnerships.
A product of the OSBA Corporation Law Committee
Current Status: / 10/24/2007 - House Civil and Commercial Law, (Second Hearing)
SB6 / CONSUMER'S CREDIT REPORT (NIEHAUS, T)To allow a consumer to place a security freeze on the consumer's credit report, to specify that Social Security numbers are confidential, to specify that certain personal information is not a public record, to require a public office to redact from a document that is otherwise a public record certain personal information.
Current Status: / 10/24/2007 - PASSED BY SENATE
SB7 / EMINENT DOMAIN (GRENDELL, T)To formally state the G.A.'s intentions in its upcoming deliberations on reforming Ohio's laws regulating the exercise of eminent domain.
Current Status: / 7/10/2007 - SIGNED BY GOVERNOR; Eff. 10/10/2007
B21 / DOMESTIC VIOLENCE (COUGHLIN, K)To adopt the Uniform Interstate Enforcement of Domestic Violence Protection Orders Act.
Current Status: / 3/28/2007 - Senate Judiciary - Criminal Justice, (Third Hearing)
SB59 / MEDICAL NEGLIGENCE (COUGHLIN, K)Establish pilot program mandating arbitration for claims of medical negligence.
Current Status: / 10/17/2007 - SUBSTITUTE BILL ACCEPTED
SB134 / MEMORANDA OF TRUST (FABER, K)To provide that memoranda of trust be executed and acknowledged only by the trustee of the trust instead of both the settlor and trustee.
A product of the OSBA Real Property Section
Current Status: / 10/18/2007 - SIGNED BY GOVERNOR; Eff. 1/17/2008
SB153 / ACCIDENT MINIMUM FINANCIAL LIMITS (SCHULER, R)To increase the minimum financial limits for bodily injury for one person injured in an accident, for all bodily injuries in one accident and for the property damage maximum in one accident.
A product of the OSBA Negligence & Insurance Law Committee
Current Status: / 4/25/2007 - Referred to Insurance, Commerce and Labor Committee
SB157 / GUARDIANS (BUEHRER, S)To specifically authorize a person to designate a guardian for the person's incompetent adult child.
A product of the OSBA Estate Planning, Trust & Probate Law Committee
Current Status: / 10/3/2007 - 10/3/2007 - House Judiciary, (Second Hearing)
SJR1 / TAKING OF PRIVATE PROPERTY (COUGHLIN, K)Provide limits on the power of a public authority to take private property for public use.
Current Status: / 6/27/2007 - BILL FAILED
Bills Introduced Since 9/21/2007
HB322 / CONSTRUCTION/DEMOLITION DEBRIS(HUGHES, J) To require the Director of Administrative Services to adopt rules governing construction and demolition debris recycling and water and energy usage with respect to certain public works projects.
HB323 / FENCES(GIBBS, B) To revise the Fences Law.
HB324 / NONPROFIT SPORTS CLUB FEES(BATCHELDER, W) To exempt physical fitness facility and recreation and sports club membership fees from the sales tax if the facility or club is owned or controlled bya nonprofit, income tax-exempt organization operated for religious or charitable purposes.
HB325 / LICENSE PLATES(GERBERRY, R) To establish a veteran's license plate available to active duty and honorably discharged persons who, while serviing in the armed forces of the United States served in Afghanistan during Operation Enduring Freedom or in Iraq during Operation Iraqi Freedom.
HB326 / HIGHER EDUCATION(GERBERRY, R) To require state institutions of higher education to include coursework in government as a condition of awarding an undergraduate degree, diploma, or certificate.
HB327 / BOARDS OF HEALTH(MCGREGOR, J) With regard to boards of health of city and general health districts,
HB328 / RAIL SECURITY(PATTON, T) To require rail owners and operators to secure rail facilities and equipment from the threat of terrorism through the development of a vulnerability assessment, an infrastructure protection program, and proper communication with public authorities and to provide civil penalties for noncompliance by a rail owner or operator.