Major Rule Reform Bill Goes Into Effect

As of Sunday, Aug. 18, Senate Bill 221 of the 132nd General Assembly went fully into effect. You may recall that this bill was vetoed by Governor John Kasich last year and then the legislature overrode his veto in November.

Although many of the provisions went into effect in February, there was a delay in implementation to allow for the Legislative Information Systems (LIS) to program or reprogram some the rule-filing system.

The bill contains the following five key provisions:

  • Adds to the definition of what an adverse impact on business can be by stating that the impact of the rule would directly reduce revenue or increase expenses
  • Requires that the source document of a new rule can be readily found and inspected without charge
  • Ensures that if the new rule imposes a fee, there must be a justification as to how the fee relates to the cost incurred by the agency
  • Allows for the opportunity to request a review of a rule in an expedited manner as opposed to the normal review process
  • Instructs state agencies to release internal policies, directives, or instructions to ensure they are not circumventing the rule making process

Last General Assembly, this bill served as a top five priority bill for the Ohio Chamber and it was a huge victory for the business community for this bill to make its way all the way through the legislative process and into law.

As we move forward, there will be more information as to the implementation of SB 221 and its impact on both the regulators and the regulated communities. We will be sure to keep you apprised of these changes as many of them will positively impact you and your business.