Ohio legislation

Proposals that would formally designate several “ag-related days” in Ohio, allow Ohio Farm Bureau to provide healthcare benefit coverage to its members, regulate imitation meat and egg products, and expand homemade food production opportunities are receiving attention in the Ohio legislature.  Here’s a summary of the bills and where they stand in the legislative process.

H.B. 65 – Agriculture Appreciation Act

The Ohio House of Representatives passed H.B. 65 on April 2, and the bill was introduced in the Senate on April 8. Sponsored by Rep. Roy Klopfenstein (R-Haviland) and Rep. Bob Peterson (R-Sabina), the act proposes the following official designations:

• “FFA Week” as the week ending with the last Saturday in February.
• “4-H Week” as the week ending with the second Saturday of March.
• “Agriculture Day” on March 21.
• "National Farmers Market Week" as the first full week of August.
• “Ohio Stormwater Awareness Week” as the first week of October.
• “Farmer’s Day” on October 12.
• “Ohio Soil Health Week” as the second full week of November, to celebrate and raise awareness for the importance of soil health and in honor of the birthday of soil pioneer and advocate David Brandt.

Readers might recognize some of H.B. 65’s proposed designations, and that would be because a similar bill nearly passed the legislature last year.  A last minute amendment in the Senate prevented the proposal from making it through the General Assembly before December 31, 2024, however.

S.B. 100 and H.B. 99 – Exemption from insurance regulations for nonprofit agricultural membership organizations

Identical bills that would exempt healthcare benefits offered by “nonprofit agricultural membership organizations” from insurance regulations has passed the Senate and is moving through the House Insurance Committee, despite opposition from a number of health care advocacy groups.  H.B. 99, sponsored by Rep. Bob Peterson (R-Sabina) and S.B. 100, sponsored by Sen. Susan Manchester (R-Waynesfield) would define a “nonprofit agricultural membership organization” as an organization that was incorporated in Ohio on or before December 31, 1919 to promote the interests of farms and that provides contractual healthcare benefit coverage exclusively with members of the organization and their families. Healthcare benefit coverage provided by such an organization, according to the proposal, is not “insurance” and is not subject to insurance regulations. The bill would also allow the nonprofit organizations to assume or reinsure the risks arising out of healthcare benefit coverage with a company authorized to provide insurance in Ohio. Opponents who testified in the bill’s third hearing before the House Insurance Committee on April 8 fear the legislation would allow discrimination against persons with pre-existing conditions. 

H.B. 10 – Imitation Meat and Egg Products

A bill that would prohibit the sale of foods that are “misbranded” as a meat or egg product has received two hearings before the House Agriculture Committee.  Sponsored by Rep. Roy Klopfenstein (R-Haviland) and Rep. Jack Daniels (R-New Franklin), H.B. 10 defines “misbranded” meat and egg products as those that: contain manufactured-protein food products or fabricated-egg products, are offered for sale by a food processing establishment, and have a package label that includes certain “meat” or “egg” terms.  A food processing establishment that sells misbranded meat and egg products would be subject to a penalty of up to $10,000 per day.  The bill would also require Ohio agencies to request a USDA exemption of cultivated-protein food products and fabricated-egg products from eligibility under SNAP and WIC food programs and would require Ohio school districts and state institutions of higher education to adopt policies preventing the purchase of cultivated-protein food products or foods misbranded as meat or egg products. Several agricultural organizations testified in support of the bill in its second hearing on April 2, 2025.

H.B. 134 - Microenterprise home kitchen operations

A bi-partisan bill would add Ohio to the small but growing list of states that have adopted “food freedom laws” to loosen regulations on the sale of homemade foods.  Sponsored by Rep. Jennifer Gross (R-West Chester) and Rep. Latyna Humphrey (D-Columbus), H.B. 134 would create a new “microenterprise home kitchen operation” registration that would broaden the types of foods a person could produce at home and sell directly to customers. Ohio law currently allows a person to sell certain “cottage foods” and “home bakery” foods with minimal regulation but requires producers of other foods to   produce the foods in a commercial kitchen and operate under state and local food licenses.  H.B. 134 would remove those requirements and allow a registered microenterprise home kitchen operation to produce and sell any homemade foods (except those containing alcohol or drugs), including items such as canned goods and hot meals.  The annual $25 registration would require an inspection by the Ohio Department of Agriculture to ensure the microenterprise home kitchen operation meets requirements in the law regarding operations, food safety, storage and preparation, and sales and delivery of the food.  H.B. 134 received its second hearing before the House Agriculture Committee today, April 9, with two proponents testifying in support of the bill.

The Ohio General Assembly is back in Columbus after the March 19^th primary election, and committee schedules are already filling up. Given the increased activity in recent weeks, we thought it was a good time to examine what has happened legislatively this year up until this point.

H.B. 64—Eminent Domain. This bill was first introduced by Representatives Kick (R-Loudonville) and Creech (R-West Alexandria) in February of 2023. The bill’s purpose is to make it more difficult for governmental agencies or private entities to take private property through eminent domain. On February 6, 2024, the bill was updated with a Substitute House Bill 64 in the House Civil Justice Committee.

The previous version of the bill excluded recreational trails from the definition of “public use,” meaning that property could not be taken by a government agency for recreational trails. The current version of the bill narrows this language, allowing for a taking for the purpose of creating recreational trails, but not in cases where the property is not adjacent to a public road and where the property’s primary use will be for a recreational trail.

Another substantial change between the versions involves compensation offers from the government entity to the landowner. In the original version of the bill, a government entity would not have been allowed to reduce an offer made to purchase property before proceedings commenced if the reduction was based on hard-to-discover issues with the property. The current version would exclude this provision, restoring an agency’s authority to reduce offers.

Substitute House Bill 64 would also make changes to compensation and awards landowners could receive if the issue goes to court.

H.B. 197—Solar Development. Sponsored by Representatives Hoops (R-Napoleon) and Ray (R-Wadsworth), H.B. 197 would establish a the community solar pilot program and the solar development program. Under the language of the bill, a “community solar facility” is defined as a single facility with at least three subscribers and a nameplate capacity of 10 megawatts or less, or 20 megawatts or less if on a distressed site. Furthermore, the bill would require The Public Utilities Commission of Ohio (PUCO) to establish a Community Solar Pilot Program of 250 megawatts on sites in the Appalachian region of the state. The bill would also amend the state competitive retail electric service policy to encourage community solar facilities in the state and allow subscribers to community solar facilities to receive monthly electric bill offsets.

H.B. 324—Motor Fuel. Introduced by Representatives McClain (R-Upper Sandusky) and Klopfenstein (R-Haviland) in November of 2023, H.B. 324 passed the House on February 7, 2024 and was referred to the Senate Ways and Means Committee on February 27. 

If passed, the bill would authorize a temporary, nonrefundable income or CAT tax credit of 5 cents per gallon for retail dealers who sell high-ethanol blend motor fuel containing between 15-85% ethanol. The tax credit would be limited to five years or to a total of $10 million, whichever occurs first.

H.B. 327—Employee Verification. H.B. 327, introduced by Representatives Wiggam (R-Wayne County), and Swearingen (R-Huron), had its first committee hearing in House Commerce & Labor on February 13, 2024. The bill would require political subdivisions, private employers employing 75 individuals within the state of Ohio, and nonresidential construction contractors to verify each new employee’s work eligibility through the federal E-verify program. E-Verify is an online program that helps employers verify employees’ eligibility for employment. If the bill were to pass, the employer would be required to keep a record of the verification for the duration of the employee’s employment, or three years, whichever is longer. During testimony on the bill, Representatives Wiggam and Swearingen indicated an interest in possibly lowering the employee threshold, citing Florida’s 25 employee threshold.

H.B. 347—Farming Equipment Taxes. This bill was introduced by Representative Don Jones (R-Freeport) and referred to the House Ways and Means Committee in early December of 2023. Since then, the bill has been heard in committee twice, once in January, and once in February, both times without testimony. The bill would change the way farmers claim a tax exemption on certain purchases.

Currently, when an Ohioan engaged in farming, agriculture, horticulture, or floriculture is buying a product for “agricultural use,” they must provide the seller with an exemption certificate. This certificate comes from the Ohio Department of Taxation and relieves the seller of the obligation to collect the sales tax on behalf of the state. However, the Department of Taxation can later determine that the purchase does not qualify for exemption, and then the farmer would be expected to pay the tax.

H.B. 347 would slightly alter this current way of doing things when it comes to the purchase of certain vehicles and trailers. Under the bill, the purchaser could receive an agricultural use exemption for taxes on these vehicles if the purchaser shows the seller copies of the purchaser’s Schedule F—the federal income tax profit of loss from farming form—for three most recent preceding years. Alternatively, a farmer could obtain a certificate from the Department of Taxation verifying that they have filed a Schedule F for three years in lieu of providing the forms directly to the seller. Notably, the bill states that “no other documentation or explanation shall be required by the vendor or the tax commissioner” to prove that the purchase qualifies for the agricultural use exemption.

The following vehicles and trailers would be included under the bill:

• Trailers, excluding watercraft trailers;
• Utility vehicles, (vehicles with a bed, principally for the purpose of transporting material or cargo in connection with construction, agricultural, forestry, grounds maintenance, land and garden, materials handling, or similar activities);
• All-purpose vehicles, (vehicles designed primarily for cross-country travel on land and water, or on multiple types of terrain, but excluding golf carts);
• Compact tractors (garden tractors, small utility tractors, and riding mowers).

H.B. 364—Seed Labeling; Noxious Weeds. Sponsored by Representatives Dobos (R-Columbus), and Klopfenstein (R-Haviland), H.B. 364 had its first hearing in the House Agriculture Committee on February 6, 2024.  Specifically, the bill would allow the Ohio Prairie Association and other noncommercial entities sharing seeds to distribute milkweed seeds non-commercially to i members, with the intent of promoting habitats for pollinators like monarch butterflies.

The bill would legally define “non-commercial seed sharing” as the distribution or transfer of ownership of seeds with no compensation or remuneration. Also included in the definition are a list of situations that are not considered “non-commercial seed sharing,” including when:

• The seeds are given as compensation of work or services rendered;

• The seeds are collected outside of Ohio;
• The seeds are patented, treated, or contain noxious weed species or invasive plants.

H.B. 364 also includes a definition of “seed library,” which it defines as a non-profit, governmental, or cooperative organization or association to which both of the following apply:

• It is established for the purpose of facilitating the donation, exchange, preservation, and dissemination of seeds among the seed library’s members or the general public.

• The use, exchange, transfer, or possession of seeds acquired by or from the non-profit governmental, or cooperative organization or association are obtained free of charge.

The bill would further exempt non-commercial seed sharers and seed libraries from labeling, advertising, handling, and sales restrictions under Ohio law.

To further the goal of promoting pollinators and habitats, H.B. 364 would make changes to the requirements for maintaining toll roads, railroads, or electric railways. Current law requires managers of such thoroughfares to destroy a number of noxious weeds along the roadway or in right of ways. The bill would no longer require the destruction of Russian thistle, Canadian thistle, common thistle, wild lettuce, wild mustard, wild parsnip, ragweed, milkweed, or ironweed. 

H.B. 447—Property Tax. Introduced on March 12, 2024 by Representative Loychik (R-Cortland), H.B. 447 was referred to the House Ways & Means Committee on April 2, 2024. The bill would modify and expand property tax homestead exemptions, gradually reduce school districts’ 20-mill floor for tax levies and modify the formula for determining farmland’s current agricultural use value (CAUV). The change to CAUV would involve the calculation of the overall capitalization rate for agricultural land.  Current law does not establish a minimum rate, but the bill would do so by stating that overall capitalization rate plus additur shall not be less than 10 percent.  Since a higher capitalization rate results in a lower CAUV value and because the current capitalization rate is around 8%, the change would likely lower CAUV values.

S.B. 156—Scenic Rivers. This bill, sponsored by Senators Reineke (R-Tiffin) and Hackett (R-London) passed the Ohio Senate on January 24, 2024, and was referred in the House to the Energy and Natural Resources Committee on February 6, 2024. The bill would transfer the Wild, Scenic, and Recreational Rivers Program from the Division of Parks and Watercraft to the Division of Natural Areas and Preserves (DNAP) in ODNR. The bill would narrow the scope DNAP’s authority to watercourses designated as wild, scenic, and recreational rivers. Currently, the law is written so that the regulatory agency has authority over areas. “Areas” encompass not just the water, but also the land surrounding rivers. On the other hand, “watercourses” are defined as “substantially natural channel[s] that [are] at least five miles in length with recognized banks and a bottom in which the flow or water occurs.” Thus, agency oversight would be diminished from the river and its surrounding area to just confines of the river itself.

The bill also clarifies that a watercourse designation does not affect private property rights adjacent to a designated river.

Finally, the bill would require DNAP to adopt rules for the use, visitation, and protection of scenic river lands and provide for the establishment of facilities and improvements that are necessary for their visitation, use, restoration, and protection, but do not impair their natural character.

S.B. 226—Agricultural Land. S.B. 226 was introduced by Senator Terry Johnson (R-McDermott) in late February and referred to the Veterans & Public Safety Committee on February 27, 2024. The bill would create the Ohio Property Protection Act, which would include protection of:

• Agricultural land, defined as “land suitable for use in agriculture,” including the water on the land, airspace above the land, and natural products and products from the land;
• Any land located within a twenty-five-mile radius of any installation under the jurisdiction of the United States Armed Forces;
• Any land located within a twenty-five radius of a critical infrastructure facility.

To protect property in the above categories, the bill would make it illegal for the following people and entities to acquire or purchase such property:

• Those persons and foreign adversaries listed on a registry compiled by the Ohio Secretary of State;
• A government of a foreign adversary;
• An individual who is a citizen of a foreign adversary;
• A business that is headquartered in a foreign adversary;
• A business that is directly or indirectly owned or controlled by one or more of the above persons and entities; and
• An agent, fiduciary, or trustee of the above persons and entities.

We’re back! We are excited to bring back our regular Ag Law Harvest posts, where we bring you interesting, timely, and important agricultural and environmental legal issues from across Ohio and the country. This month’s post provides you with a look into Ohio’s ongoing legal battle of some provisions in the recently enacted “Chicken Bill”, a brief dive into the U.S. Department of Labor’s new H-2A wage rules, a warning about conservation easement fraud, and an explanation of a court’s recent decision to release an insurance company from its duty to defend its insured in a lawsuit. 

Battle of “Chicken Bill.”
Ohio House Bill 507 (“HB 507”), sometimes referred to as “the Chicken Bill” went into effect last month and was widely known for reducing the number of poultry chicks that can be sold in lots (from six to three). However, HB 507 contained other non-poultry related provisions that have caused quite a stir. Environmental groups have sued the State, seeking a temporary restraining order, a preliminary and permanent injunction to prevent HB 507 from going into effect, and a declaratory judgement that HB 507 violates Ohio’s Constitution. Two provisions within HB 507 have specifically caught the attention of the Plaintiffs in this case: (1) a revision to Ohio Revised Code § 155.33 that requires state agencies to lease public lands for oil and gas development (the “Mandatory Leasing Provision”); and (2) a revision to Ohio Revised Code § 4928.01 that defines “green energy” to include energy generated by using natural gas, so long as the energy generated meets certain emissions and sustainability requirements (the “Green Energy Provision”). 

Plaintiffs argue that the Mandatory Leasing Provision will cause irreparable harm to their members’ “environmental, aesthetic, social, and recreational interests” in Ohio’s public lands. Additionally, Plaintiffs assert that the Mandatory Leasing Provision and Green Energy Provision violate Ohio’s Constitution by not following the “One-Subject Rule” and the “Three-Consideration Rule” both of which require transparency when creating and passing legislation in Ohio. The Franklin County Court of Common Pleas recently denied Plaintiffs’ request for a temporary restraining order, reasoning that no new leases would likely be granted until the Oil and Gas Land Management Commission adopts its rules (as required by Ohio law) and that there is “no likelihood of any immediate and irreparable injury, loss, or damage to the plaintiffs.” Since the hearing on Plaintiffs’ request for a temporary restraining order, the State of Ohio has filed its answer denying Plaintiffs’ claims and currently all parties are in the process of briefing the court on the merits of Plaintiffs’ request for a preliminary injunction. 

New H-2A Wage Rules: Harvesting Prosperity or Sowing Seeds of Despair? 
On February 28, 2023, the U.S. Department of Labor (the “DOL”) published a final rule establishing a new methodology for determining hourly Adverse Effect Wage Rates (“AEWR”) for non-range farm occupations (i.e. all farm occupations other than herding and production of livestock on the range) for H-2A workers. The new methodology has been in effect since March 30^th. Late last month Rep. Ralph Norman and the Chairman of the House Committee on Agriculture, Rep. Glenn “GT” Thompson, introduced a resolution of disapproval under the Congressional Review Act, seeking to invalidate the DOL’s final rule. Similarly, the National Council of Agricultural Employers (“NCAE”) released a statement declaring that it has filed a Motion for Preliminary Injunction against the DOL’s new methodology. 

Opponents of the new rule argue that the increased wages that farmers and ranchers will be required to pay will put family operations out of business. On the other hand, the DOL believes “this methodology strikes a reasonable balance between the [law’s] competing goals of providing employers with adequate supply of legal agricultural labor and protecting the wages and working conditions of workers in the United States similarly employed.” Producers can visit the DOL’s frequently asked questions publication to learn more about the new H-2A wage rule. As it stands, the new H-2A regulations remain in effect and producers should be taking all possible steps to follow the new rules. Make sure to speak with your attorney if you have any questions about compliance with H-2A regulations. 

Conservation Easement Fraud – Protecting Land or Preying on Profits? 
For a while now, conservation easements have been utilized by farmers and landowners to preserve their land while also obtaining a substantial tax benefit. But not all actors in the conservation easement sphere are good ones. Earlier this month, a land appraiser in North Carolina pled guilty to conspiring to defraud the United States as part of a syndicated conservation easement tax shelter scheme. According to a press release by the U.S. Department of Justice (“DOJ”), Walter “Terry” Douglas Roberts II of Shelby, North Carolina conspired with others to defraud the United States by inflating the value of conservation easements which led to $1.3 billion in fraudulent tax deductions. Roberts is guilty of inflating the value at least 18 conservation easements by failing to follow normal appraisal methods, making false statements, and manipulating or relying on knowingly manipulated data to achieve a desired tax deduction amount. Roberts faces a maximum penalty of five years in prison and could be forced to pay back a specified amount to the U.S. Government. 

Conservation easement fraud is not new, however. The Internal Revenue Service (“IRS”) has been monitoring the abuse of the conservation easement tax deductions for some time. The IRS has included these fraudulent transactions on its annual “Dirty Dozen” list of tax avoidance scams. The IRS has seen taxpayers, often encouraged by promoters armed with questionable appraisals, take inappropriately large deductions for these types of easements. These promoters twist the law to develop abusive tax shelters that do nothing more than “game the tax system with grossly inflated tax deductions and generate high fees for promoters.” The IRS urges taxpayers to avoid becoming entangled by these dishonest promoters and that “[i]f something sounds too good to be true, then it probably is.” If you have questions about the tax benefits of a conservation easement, make sure to speak with your attorney and/or tax professional.  

Alleged Intentional Acts Not Covered by Insurance. 
An animal feed manufacturer is in hot water, literally. A city in Mississippi has accused Gold Coast Commodities, Inc. (“Gold Coast”), an animal feed manufacturer, of intentionally dumping hot, greasy wastewater into the City’s sewer system. Prior to the City’s investigation into Gold Coast’s alleged toxic dumping, Gold Coast purchased a pollution liability insurance policy from Crum & Forster Specialty Insurance Company (“Crum & Forster”). After an investigation conducted by the City and the Mississippi Department of Environmental Quality, the City filed a lawsuit against the feed manufacturer alleging that it intentionally dumped toxic waste into the City’s sewer system. Gold Coast then notified its insurance company of the potential claim. However, Crum & Forster denied coverage for Gold Coast’s alleged toxic dumping. According to the insurance policy, coverage exists for an “occurrence” defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Crum & Forster refused to provide a defense or coverage for Gold Coast in the City’s toxic dumping lawsuit because the City alleges multiple times that Gold Coast acted intentionally, and therefore, Gold Coast’s actions were not an accident and not covered by the policy. 

In response, Gold Coast filed a lawsuit against Crum & Forster asking a federal district court in Mississippi to declare that Crum & Forster is required to defend and provide coverage for Gold Coast under the terms of the insurance policy. On a motion to dismiss, the federal district court in Mississippi dismissed Gold Coast’s lawsuit against the insurance company. The district court reasoned that in the underlying toxic dumping lawsuit, the City is not alleging an accident, rather the City asserts that Gold Coast intentionally dumped the toxic waste. Thus, Crum & Forster is not obligated to provide a defense or coverage for Gold Coast, under the terms of the policy. Gold Coast appealed to the Fifth Circuit Court of Appeals (which has jurisdiction over federal cases arising in Texas, Louisiana, and Mississippi). 

The Fifth Circuit affirmed the decision of the federal district court, rejecting Gold Coast’s claim that Crum & Forster is obligated to provide a defense and coverage for Gold Coast in the City’s toxic dumping lawsuit. Gold Coast argued that the City seeks to recover under the legal theory of negligence in the toxic dumping case, therefore Gold Coast’s actions are accidental in nature. The Fifth Circuit was unconvinced. The Fifth Circuit explained that when reading a complaint, the court must look at the factual allegations, not the legal conclusions. The Fifth Circuit found that the factual allegations in the City’s lawsuit all referred to Gold Coast’s intentional or knowing misconduct and any recovery sought under the theory of negligence is not a factual allegation, instead it is a legal conclusion. The Fifth Circuit concluded that using terms like “negligence” do not “transform the character of the factual allegations of intentional conduct against [Gold Coast] into allegations of accidental conduct constituting an ‘occurrence.’” Thus, the Fifth Circuit affirmed the federal district court’s decision to dismiss Gold Coast’s lawsuit against its insurer. Unless the Supreme Court of the United States decides to take up the case, it looks like Gold Coast is all on its own in its fight against the City. The lesson here is that although insurance is important to have, its equally as important to speak with your insurance agent to understand what types of incidents are covered under your insurance policy. 

The weeks since Thanksgiving have been busy ones at Ohio's Statehouse, but not a creature is stirring now as the legislature enjoys its Christmas recess.  While agriculture didn’t receive any final Christmas gifts from the General Assembly, a few bills advanced and may pass early next year.  Here’s a rundown of agricultural legislation in Ohio.

Newly introduced Ohio legislation

S.C.R. 13 – Repeal Individual Income Tax.  Sen. George Lang (R-West Chester) introduced a concurrent resolution on December 9, 2021 expressing an intention for the legislature to repeal the state personal income tax within ten years. The resolution cites disincentives to reside in Ohio, repeals by other states, and business climate impacts as justification for the intent to repeal the income tax.  The Senate referred the measure to its Ways and Means Committee on December 15.

H.B. 484 -- Walleye as Official State Fish.  Representatives Michael Sheehy (D-Oregon)  and Lisa Sobecki (D-Toledo) introduced a bill that would designate the walleye as Ohio’s official state fish.  The bill was referred to the House Agricultural & Conservation Committee on November 16, 2021.

H.B. 507 -- Poultry Chicks.  This bill to reduce the minimum number for poultry chicks sold in lots from six to three was introduced by Rep. Koehler (R-Springfield) on December 8, 2021.

Ohio legislation on the move

H.B. 440/S.B. 241– Agricultural Linked Deposit Program.  Part of the “Ohio Gains Initiative,” these companion bills would make revisions to Ohio’s Agricultural Linked Deposit Program, which provides interest rate reductions of up to 3% on operating loans and lines of credit for farm operators and agribusinesses.  The legislation would extend the program to agricultural cooperatives and replace the $150,000 loan maximum to amounts as determined by the State Treasurer.  The House passed the bill on December 9, 2021. The Senate Financial Institutions and Technology Committee reported out its bill on December 15, 2021, so the bill should head to the Senate floor soon.

H.B. 397– Agricultural Leases.  For agricultural crop leases that don’t address how and when to terminate the lease,  H.B. 397 would require a landlord who wants to terminate the lease to provide a written notice of termination to the tenant by September 1.  The termination would be effective December 31 of the year notice is provided or on the date harvest is complete, whichever comes first. The House passed the bill on December 8, 2021 and the Senate referred it to the Senate Agriculture & Natural Resources Committee on December 15, 2021.

H.B. 321– Auctioneers.  The proposal makes several revisions to auctioneers licensing, including  eliminating the apprentice requirement and replacing it with a course of study in auctioneering at an approved institution; removing the oral exam requirement ; increasing the number of written exams offered; removing the special auctioneer license; allowing auction firms to provide online or live auction services; and granting the Ohio Department of Agriculture authority over internet auctions, which are currently exempt from ODA oversight. The bill passed the House on December 9, 2021 and was referred to the Senate Agriculture & Natural Resources Committee December 15, 2021.

H.B. 95 -- Beginning Farmers.  This legislation passed the House back on June 28, 2021 and finally received its second hearing before the Senate Ways and Means Committee on December 7, 2021.  It proposes to allow individuals to be certified as beginning farmers and would establish income tax credits for certified beginning farmers who attend approved financial management programs and for owners who sell land and agricultural assets to certified beginning farmers.

S.B. 210 – Postnuptial Agreements.  Spouses could agree to terminate or modify pre-nuptial agreements after marriage under this proposal, which would bring Ohio in line with many other states.  The bill passed the Senate on  November 16, 2021 and was assigned to the House Civil Justice Committee on December 7, 2021. 

S.B. 246 – Income Tax.  The goal of this bill is to avoid the federal State and Local Tax (SALT ) $10,000 deduction cap for federal income tax by allowing an electable individual income tax on a pass-through entity’s income apportioned to Ohio and a refundable income tax credit for tax paid.  It received its third hearing with the Senate Ways and Means Committee on December 14, 2021.

S.B. 247 – Income Tax.  The sale of an ownership interest in a business would be considered business income for Ohio income tax purposes if federal income tax law treats the sale as a sale of assets or the seller materially participates in the business activities during the taxable year in which interest was sold or any of preceding five taxable years.  If passed, the legislation would apply to any audits, refund applications, petition for reassessments, and appeals pending on or after the bill’s 90-day effective date. The proposal had a third hearing with the Senate Ways and Means Committee on December 14, 2021.

Ohio legislation at a standstill

H.B. 175 – Water Pollution.  This controversial legislation would exclude “ephemeral features”—those that result from surface water flowing or pooling in direct response to precipitation--from water pollution control programs.  The bill passed the House in late September and received a second hearing in the Senate Agriculture & Natural Resources Committee on November 30 but has not received attention since that date.

S.B. 47– Overtime Pay.  The proposal would exempt an employer from paying overtime for employer travel to and from a worksite, preliminary and postliminary activities, and minor tasks performed beyond scheduled work hours without authorization, such as checking email or phone messages.  It passed the Senate in September and received a first hearing before the House Commerce and Labor Committee but no further action has occurred since October 26, 2021.

S.B. 257– Income Tax Credit for Donations to Townships.  Qualifying donations of cash, property or services accepted by a township would receive a refundable state income tax credit of up to $5,000 under this proposal.  The bill has not received a hearing since its referral to the Senate Ways and Means Committee on November 10, 2021.

S.J.R. 3 – Constitutional right to hunt and fish.  If passed, the joint resolution would place a constitutional amendment before Ohio voters that would guarantee the right to hunt, fish, and harvest wildlife, subject only to laws and rules that promote wildlife conservation and management or preserve the future of hunting and fishing.  No action has been taken on the resolution since it received a second hearing before the Senate Agriculture and Natural Resources Committee on November 16, 2021.