As Introduced

136th General Assembly

Regular Session H. B. No. 11

2025-2026

A BILL

To amend sections 106.02, 106.023, 106.024, 111.15, 119.03, and 119.04 and to enact sections 106.025, 106.026, 106.033, 106.10, 121.96, and 126.04 of the Revised Code to require legislative approval of administrative rules and other regulatory actions under specified conditions, to allow a JCARR chairperson to request a third-party fiscal analysis of a rule, and to require state agencies to publicly post policy documents.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 106.02, 106.023, 106.024, 111.15, 119.03, and 119.04 be amended and sections 106.025, 106.026, 106.033, 106.10, 121.96, and 126.04 of the Revised Code be enacted to read as follows:

Sec. 106.02. Except as provided in sections 106.025 and 106.026 of the Revised Code, all of the following apply to a proposed rule:

(A) Subject to division (B) of this section, when an agency files a proposed rule and rule summary and fiscal analysis with the joint committee on agency rule review, the joint committee shall review the proposed rule and rule summary and fiscal analysis, and an invalidating concurrent resolution may be adopted, not later than the sixty-fifth day after the day on which the proposed rule was filed with the joint committee. If, after filing the original version of a proposed rule, the agency makes a revision in the proposed rule, the agency shall file the revised proposed rule and a revised rule summary and fiscal analysis with the joint committee. If the revised proposed rule is filed thirty-five or fewer days after the original version of the proposed rule was filed, the joint committee shall review the revised proposed rule and revised rule summary and fiscal analysis, and an invalidating concurrent resolution may be adopted, not later than the sixty-fifth day after the original version of the proposed rule was filed. If, however, the revised proposed rule is filed more than thirty-five days after the original version of the proposed rule was filed, the joint committee shall review the revised proposed rule and revised rule summary and fiscal analysis, and an invalidating concurrent resolution may be adopted, not later than the thirtieth day after the revised proposed rule was filed with the joint committee.

(B) If, after filing a proposed rule and rule summary and fiscal analysis with the joint committee, an agency determines that it needs additional time to consider the proposed rule and possibly file a revised proposed rule, the agency may notify the joint committee of the agency's intention to file a revised proposed rule. When the agency notifies the joint committee of its intention to file a revised proposed rule, the running of the time within which an invalidating concurrent resolution may be adopted is tolled.

If, after notifying the joint committee of the agency's intention to file a revised proposed rule, the agency makes a revision in the proposed rule, the agency shall file the revised proposed rule and a revised rule summary and fiscal analysis with the joint committee. If the revised proposed rule is filed thirty-five or fewer days after the agency filed the original version of the proposed rule, the joint committee shall review the revised proposed rule and revised rule summary and fiscal analysis, and an invalidating concurrent resolution may be adopted, not later than the sixty-fifth day after the agency filed the original version of the proposed rule. If, however, the revised proposed rule is filed more than thirty-five days after the agency filed the original version of the proposed rule, the joint committee shall review the revised proposed rule and revised rule summary and fiscal analysis, and an invalidating concurrent resolution may be adopted, not later than the thirtieth day after the revised proposed rule is filed with the joint committee.

(C) When an original or revised version of a proposed rule and rule summary and fiscal analysis is filed with the joint committee in December or in the following January before the first day of the legislative session, the joint committee shall review the proposed rule and rule summary and fiscal analysis, and an invalidating concurrent resolution may be adopted, as if the original version of the proposed rule and rule summary and fiscal analysis had been filed with the joint committee on the first day of the legislative session in the following January. If, however, the original version of a proposed rule and rule summary and fiscal analysis have been pending before the joint committee for more than thirty-five days, and the proposed rule and rule summary and fiscal analysis are revised in December or in the following January before the first day of the legislative session, the joint committee shall review the revised proposed rule and revised rule summary and fiscal analysis, and an invalidating concurrent resolution may be adopted, not later than the thirtieth day after the first day of the legislative session in the following January.

(D) A revised proposed rule supersedes each earlier version of the same proposed rule.

(E) The joint committee shall endeavor not to hold its public hearing on a proposed rule earlier than the forty-first day after the proposed rule was filed with the joint committee. The chairperson of the joint committee responsible for calling and conducting meetings under section 101.35 of the Revised Code may select a date for the committee's public hearing on a proposed rule that is earlier than the forty-first day after the proposed rule was filed.

Sec. 106.023. (A) An agency may not adopt a proposed rule or revised proposed rule or file it in final form unless the proposed rule has been filed with the joint committee on agency rule review under division (D) of section 111.15 or division (C) of section 119.03 of the Revised Code and ~~the~~ one of the following applies:

(1) The time for the joint committee to review the proposed rule and for the adoption of an invalidating concurrent resolution has expired without adoption of a concurrent resolution to invalidate the proposed rule;

(2) The rule or revised proposed rule is subject to section 106.026 of the Revised Code, and a law authorizing its adoption has been enacted in accordance with Ohio Constitution, Article II, Sections 15 and 16.

(B) If, before the time for its review of a proposed rule or revised proposed rule expires, the joint committee recommends adoption of a concurrent resolution invalidating the proposed rule or revised proposed rule, and the senate and house of representatives does not, within the time remaining for adoption of the concurrent resolution, hold five sessions at which its journal records a roll call vote disclosing a sufficient number of members in attendance to pass a bill, the time within which that house may adopt the concurrent resolution is extended until it has held five such sessions.

Sec. 106.024. (A) As used in this section:

(1) "Agency" has the meaning defined in section 106.01 of the Revised Code.

(2) "Rule" includes the adoption, amendment, or rescission of a rule.

(3) "Proposed rule" means the original version of a proposed rule, and each revised version of the same proposed rule, that is filed with the joint committee on agency rule review under division (D) of section 111.15 or division (C) of section 119.03 of the Revised Code.

(B) An agency shall prepare, on the form designed by the joint committee on agency rule review, a complete and accurate rule summary and fiscal analysis of each proposed rule that it files under division (D) of section 111.15 or division (C) of section 119.03 of the Revised Code.

The joint committee on agency rule review shall design a form for the rule summary and fiscal analysis. The form may solicit information such as the following information:

(1) The name, address, and telephone number of the agency, and the name, telephone number, and electronic mail address of an individual or office within the agency designated by that agency to be responsible for coordinating and making available information in the possession of the agency regarding the proposed rule;

(2) The Ohio Administrative Code rule number of the proposed rule;

(3) A brief summary of, and the legal basis for, the proposed rule, including citations identifying the statute that prescribes the procedure in accordance with which the agency is required to adopt the proposed rule, the statute that authorizes the agency to adopt the proposed rule, and the statute that the agency intends to amplify or implement by adopting the proposed rule;

(4) An estimate, in dollars, of the amount by which the proposed rule would increase or decrease revenues or expenditures during the current biennium;

(5) A citation identifying the appropriation that authorizes each expenditure that would be necessitated by the proposed rule;

(6) A summary of the estimated cost of compliance with the rule to all directly affected persons;

(7) The reasons why the rule is being proposed;

(8) If the rule has a fiscal effect on school districts, counties, townships, or municipal corporations, an estimate in dollars of the cost of compliance with the rule, or, if dollar amounts cannot be determined, a written explanation of why it was not possible to ascertain dollar amounts;

(9) If the rule has a fiscal effect on school districts, counties, townships, or municipal corporations and is the result of a federal requirement, a clear explanation that the proposed state rule does not exceed the scope and intent of the requirement, or, if the state rule does exceed the minimum necessary federal requirement, a justification of the excess cost, and an estimate of the costs, including those costs for local governments, exceeding the federal requirement;

(10) If the rule has a fiscal effect on school districts, counties, townships, or municipal corporations, a comprehensive cost estimate that includes the procedure and method of calculating the costs of compliance and identifies major cost categories including personnel costs, new equipment or other capital costs, operating costs, and indirect central service costs related to the rule. The fiscal analysis shall also include a written explanation of the agency's and the affected local government's ability to pay for the new requirements and a statement of any impact the rule will have on economic development.

(11) If the rule incorporates a text or other material by reference, and the agency claims the incorporation by reference is exempt from compliance with sections 121.71 to 121.74 of the Revised Code on grounds the incorporated text or other material has one or more of the characteristics described in division (B) of section 121.75 of the Revised Code, an explanation of how the incorporated text or other material is exempted under that division;

(12) If the rule imposes a fee, an explanation of how the fee directly relates to the cost actually incurred by the agency in performing the function for which the fee is charged;

(13) A comparison between the proposed rule and the approach, if any, used by the federal government and the states surrounding Ohio to address the same issue the proposed rule seeks to address.

The rule summary and fiscal analysis form~~, instead~~ shall solicit the information in divisions (B)(4), (6), (8), (9), (10), (12), and (13) of this section, if applicable. Instead of or in addition to the ~~foregoing~~information in divisions (B)(1) to (3), (5), (7), and (11) of this section, the form may solicit any other information the joint committee on agency rule review considers necessary to make the proposed rule or the fiscal effect of the proposed rule fully understandable.

(C) The agency shall file the rule summary and fiscal analysis in electronic form along with the proposed rule that it files under division (D) of section 111.15 or divisions (B) and (C) of section 119.03 of the Revised Code. The joint committee on agency rule review shall not accept any proposed rule for filing unless a copy of the rule summary and fiscal analysis of the proposed rule, completely and accurately prepared, is filed along with the proposed rule.

(D) The joint committee on agency rule review shall review the fiscal effect of each proposed rule that is filed under division (D) of section 111.15 or division (C) of section 119.03 of the Revised Code.

Sec. 106.025. (A)(1) After an agency files a proposed rule and rule summary and fiscal analysis with the joint committee on agency rule review, the chairperson appointed by the speaker of the house of representatives or the chairperson appointed by the president of the senate may request in writing that an independent third party prepare an alternative, complete and accurate rule summary and fiscal analysis of the proposed rule. A request by the chairperson appointed by the speaker of the house of representatives requires approval by a resolution adopted by the house of representatives. A request by the chairperson appointed by the president of the senate requires approval by a resolution adopted by the senate.

(2) When a chairperson of the joint committee requests an alternative rule summary and fiscal analysis be prepared under division (A)(1) of this section, the running of the time within which an invalidating concurrent resolution may be adopted is tolled. If a resolution approving a request for an alternative rule summary and fiscal analysis is not adopted under this division by the later of the following, the request is denied:

(a) Thirty days after the request is made; or

(b) The first session after the request of the chamber to which the requesting chairperson belongs at which the chamber's journal records a roll call vote disclosing a sufficient number of members in attendance to pass a bill.

(3) If a request for an alternative rule summary and fiscal analysis is denied under division (A)(2) of this section, the joint committee shall review the proposed rule and rule summary and fiscal analysis. An invalidating concurrent resolution may be adopted not later than the thirtieth day after the denial.

(B) If a request for an alternative rule summary and fiscal analysis made under division (A) of this section is approved, the chairperson who requested the alternative rule summary and fiscal analysis shall notify the agency that filed the proposed rule and shall contract with a qualified, independent third party that is not an agency to prepare the alternative rule summary and fiscal analysis of the proposed rule.

(C) The independent third party contracted to complete the alternative rule summary and fiscal analysis under division (B) of this section shall do so using the same form designed by the joint committee pursuant to section 106.024 of the Revised Code as used by the agency that filed the proposed rule. The independent third party shall complete the alternative rule summary and fiscal analysis not less than sixty days after entering the contract to complete the rule summary and fiscal analysis.

(D) On completing the alternative rule summary and fiscal analysis, the independent third party shall transmit it to the chairperson who requested it. The chairperson shall electronically transmit it to the agency that filed the proposed rule, the members of the joint committee, the secretary of state, the director of the legislative service commission, the governor, and the house and senate clerks. The clerks shall make the alternative rule summary and fiscal analysis available to the members of their respective chambers. The director of the legislative service commission shall publish it in the register of Ohio.

Except as provided in section 106.026 of the Revised Code, the joint committee shall review the proposed rule and the rule summaries and fiscal analyses prepared under this section and section 106.024 of the Revised Code, and an invalidating concurrent resolution may be adopted not later than the thirtieth day after the director of the legislative service commission publishes the rule summary and fiscal analysis prepared under this section. A failure to request an alternative rule summary and fiscal analysis under division (A) of this section, or the denial of such a request, is not an independent reason to recommend an invalidating concurrent resolution under section 106.021 of the Revised Code.

(E)(1) The chairperson who requested the alternative rule summary and fiscal analysis under division (A) of this section may authorize the cost of completing the alternative rule summary and fiscal analysis to be paid from the joint committee's current appropriations for operations. The cost shall be reimbursed in one of the following ways, as applicable:

(a) If the estimated costs described in division (B)(4), (6), (8), (10), or (12) of section 106.024 of the Revised Code, or the estimated excess cost described in division (B)(9) of section 106.024 of the Revised Code, as calculated in the alternative rule summary and fiscal analysis prepared under this section vary from the estimates in the rule summary and fiscal analysis for the proposed rule prepared by the agency by ten per cent or more, or vary from the agency's determination that there will be no such costs, the agency that filed the proposed rule shall reimburse the cost of preparing the alternative rule summary and fiscal analysis from its regular appropriation out of any fund designated for operating expenses.

(b) If the estimated costs described in division (B)(4), (6), (8), (10), or (12) of section 106.024 of the Revised Code, or the estimated excess cost described in division (B)(9) of section 106.024 of the Revised Code, as calculated in the alternative rule summary and fiscal analysis prepared under this section vary from the estimates in the rule summary and fiscal analysis prepared by the agency by less than ten per cent, or agree with the agency's determination that there will be no such costs, the cost of preparing the alternative rule summary and fiscal analysis shall be reimbursed out of the regular appropriation to the chamber of the general assembly of which the chairperson who requested the alternative rule summary and fiscal analysis is a member.

(2) The director of budget and management shall make any transfers necessary to carry out the requirements in division (E)(1) of this section.

Sec. 106.026. (A) This section applies to a proposed rule if the rule summary and fiscal analysis for the proposed rule prepared by the agency under section 106.024 of the Revised Code or the rule summary and fiscal analysis for the proposed rule prepared by an independent third party under section 106.025 of the Revised Code estimate either of the following:

(1) The proposed rule will increase the agency's expenditures during the current biennium by one hundred thousand dollars or more.

(2) The cost to comply with the proposed rule for a directly affected person will be one hundred thousand dollars or more.

(B) If a proposed rule is subject to this section, the chairperson of the joint committee on agency rule review responsible for calling and conducting meetings under section 101.35 of the Revised Code shall immediately transmit the proposed rule and rule summary and fiscal analysis to the clerk of the senate and the clerk of the house of representatives. After the chairperson of the joint committee transmits the rule and rule summary and fiscal analysis under this division, all of the following apply:

(1) The joint committee shall take no further action with respect to the proposed rule until after it is adopted or refiled in accordance with division (D) of this section.

(2) The agency shall not file a revised proposed version of the rule.

(3) The agency shall not adopt the proposed rule unless adoption is authorized by a law enacted in accordance with Ohio Constitution, Article II, Sections 15 and 16 after the chairperson transmits the rule and rule summary and fiscal analysis under this division.

(1) The clerk of the senate shall make the proposed rule and rule summary and fiscal analysis available to all members of the senate; and

(2) The clerk of the house of representatives shall make the proposed rule and rule summary and fiscal analysis available to all members of the house of representatives.

Any member of the general assembly may introduce legislation authorizing the agency to adopt the proposed rule.

(D) If a law authorizing the proposed rule is enacted before the general assembly adjourns sine die, legislative review under this chapter ends and the agency may, on or after the law's effective date, file the rule in compliance with section 111.15 or 119.04 of the Revised Code, as applicable. If a law authorizing the rule is not enacted before the general assembly adjourns sine die, the proposed rule is invalidated. The agency may refile the rule and rule summary and fiscal analysis with the joint committee.

(E) This section does not apply to any rule that is exempt from legislative review under division (D) of section 111.15 of the Revised Code or division (C) of section 119.03 of the Revised Code.

(F) The enactment of a law in accordance with Ohio Constitution, Article II, Sections 15 and 16, authorizing an agency to adopt a proposed rule to which this section applies, does not do either of the following:

(1) Grant an agency additional rulemaking authority or modify the agency's existing rulemaking authority;

(2) Extinguish or modify any claim against an agency arising from the rule.

(G) The enactment of a law in accordance with Ohio Constitution, Article II, Sections 15 and 16, authorizing an agency to adopt a proposed rule to which this section applies, shall not be used as evidence in any proceeding concerning the rule except for the purpose of determining whether the rule is in effect.

Sec. 106.033. (A) Except as provided in this section, a rule subject to, and adopted in accordance with, section 106.026 of the Revised Code expires on the date that is five years after the effective date of the law authorizing the rule's adoption or five years after the effective date of the most recent law authorizing the rule's renewal.

(B) Not less than one hundred eighty days before a rule described in division (A) of this section expires, if the agency that adopted the rule determines that the rule should not expire, the agency shall transmit the rule and a rule summary and fiscal analysis prepared in accordance with section 106.024 of the Revised Code to the clerk of the senate and the clerk of the house of representatives. The rule summary shall include the date the rule will expire under division (A) of this section.

(C) If the general assembly enacts a law authorizing the rule's extension that takes effect before the rule expires, the agency may renew the rule for an additional five years from the law's effective date. If the general assembly does not enact a law that takes effect before the rule expires, the rule expires. If the rule expires, the rule may not be readopted in substantially the same form, and a new rule that is substantially the same as the rule may not be adopted, unless the readopted or new rule is specifically authorized by a law as described in section 106.026 of the Revised Code.

Sec. 106.10. In any adjudication or court proceeding, in which a person has allegedly violated a rule adopted under section 111.15 or 119.03 of the Revised Code, both of the following apply:

(A) It is an affirmative defense to the alleged violation that a person of ordinary intelligence could not anticipate from the law purported to be the basis for the rule that the individual's conduct would be unlawful.

(B) The person may challenge the rule's validity on the basis that the rule's adoption should have been authorized by a law as described in section 106.026 of the Revised Code, and a law authorizing its adoption was not enacted.

Sec. 111.15. (A) As used in this section:

(1) "Rule" includes any rule, regulation, bylaw, or standard having a general and uniform operation adopted by an agency under the authority of the laws governing the agency; any appendix to a rule; and any internal management rule. "Rule" does not include any guideline adopted pursuant to section 3301.0714 of the Revised Code, any order respecting the duties of employees, any finding, any determination of a question of law or fact in a matter presented to an agency, or any rule promulgated pursuant to Chapter 119. or division (C)(1) or (2) of section 5117.02 of the Revised Code. "Rule" includes any amendment or rescission of a rule.

(2) "Agency" means any governmental entity of the state and includes, but is not limited to, any board, department, division, commission, bureau, society, council, institution, state college or university, community college district, technical college district, or state community college. "Agency" does not include the general assembly, the controlling board, the adjutant general's department, or any court.

(3) "Internal management rule" means any rule, regulation, bylaw, or standard governing the day-to-day staff procedures and operations within an agency.

(B)(1) Any rule, other than a rule of an emergency nature, adopted by any agency pursuant to this section shall be effective on the tenth day after the day on which the rule in final form and in compliance with division (B)(3) of this section is filed as follows:

(a) The rule shall be filed in electronic form with both the secretary of state and the director of the legislative service commission;

(b) The rule shall be filed in electronic form with the joint committee on agency rule review. Division (B)(1)(b) of this section does not apply to any rule to which division (D) of this section does not apply.

An Except as provided in this paragraph, an agency that adopts or amends a rule that is subject to division (D) of this section shall assign a review date to the rule that is not later than five years after its effective date. If a review date assigned to a rule exceeds the five-year maximum, the review date for the rule is five years after its effective date. A rule with a review date is subject to review under section 106.03 of the Revised Code. This paragraph does not apply to a rule of a state college or university, community college district, technical college district, or state community college. A rule subject to section 106.026 of the Revised Code requiring a law authorizing its adoption is not subject to review under section 106.03 of the Revised Code and expires in accordance with section 106.033 of the Revised Code.

If an agency in adopting a rule designates an effective date that is later than the effective date provided for by division (B)(1) of this section, the rule if filed as required by such division shall become effective on the later date designated by the agency.

Any rule that is required to be filed under division (B)(1) of this section is also subject to division (D) of this section if not exempted by that division.

If a rule incorporates a text or other material by reference, the agency shall comply with sections 121.71 to 121.75 of the Revised Code.

(2) A rule of an emergency nature necessary for the immediate preservation of the public peace, health, or safety shall state the reasons for the necessity. The emergency rule, in final form and in compliance with division (B)(3) of this section, shall be filed in electronic form with the secretary of state, the director of the legislative service commission, and the joint committee on agency rule review. The emergency rule is effective immediately upon completion of the latest filing, except that if the agency in adopting the emergency rule designates an effective date, or date and time of day, that is later than the effective date and time provided for by division (B)(2) of this section, the emergency rule if filed as required by such division shall become effective at the later date, or later date and time of day, designated by the agency.

Except as provided in section 107.43 of the Revised Code, an emergency rule becomes invalid at the end of the one hundred twentieth day it is in effect. Prior to that date, the agency may file the emergency rule as a nonemergency rule in compliance with division (B)(1) of this section. The agency may not refile the emergency rule in compliance with division (B)(2) of this section so that, upon the emergency rule becoming invalid under such division, the emergency rule will continue in effect without interruption for another one hundred twenty-day period.

The adoption of an emergency rule under division (B)(2) of this section in response to a state of emergency, as defined under section 107.42 of the Revised Code, may be invalidated by the general assembly, in whole or in part, by adopting a concurrent resolution in accordance with section 107.43 of the Revised Code.

(3) An agency shall file a rule under division (B)(1) or (2) of this section in compliance with the following standards and procedures:

(a) The rule shall be numbered in accordance with the numbering system devised by the director for the Ohio administrative code.

(b) The rule shall be prepared and submitted in compliance with the rules of the legislative service commission.

(d) Each rule that amends or rescinds another rule shall clearly refer to the rule that is amended or rescinded. Each amendment shall fully restate the rule as amended.

If the director of the legislative service commission or the director's designee gives an agency notice pursuant to section 103.05 of the Revised Code that a rule filed by the agency is not in compliance with the rules of the legislative service commission, the agency shall within thirty days after receipt of the notice conform the rule to the rules of the commission as directed in the notice.

(C) All rules filed pursuant to divisions (B)(1)(a) and (2) of this section shall be recorded by the secretary of state and the director under the title of the agency adopting the rule and shall be numbered according to the numbering system devised by the director. The secretary of state and the director shall preserve the rules in an accessible manner. Each such rule shall be a public record open to public inspection and may be transmitted to any law publishing company that wishes to reproduce it.

~~(D)~~(D)(1) At least sixty-five days before a board, commission, department, division, or bureau of the government of the state files a rule under division (B)(1) of this section, it shall file the full text of the proposed rule in electronic form with the joint committee on agency rule review, and the proposed rule is subject to legislative review and invalidation under section 106.021 or 106.026 of the Revised Code. If a state board, commission, department, division, or bureau makes a revision in a proposed rule after it is filed with the joint committee, the state board, commission, department, division, or bureau shall promptly file the full text of the proposed rule in its revised form in electronic form with the joint committee. A state board, commission, department, division, or bureau shall also file the rule summary and fiscal analysis prepared under section 106.024 of the Revised Code in electronic form along with a proposed rule, and along with a proposed rule in revised form, that is filed under this division. If a proposed rule has an adverse impact on businesses, the state board, commission, department, division, or bureau also shall file the business impact analysis, any recommendations received from the common sense initiative office, and the associated memorandum of response, if any, in electronic form along with the proposed rule, or the proposed rule in revised form, that is filed under this division.

(2) A proposed rule that is subject to legislative review under this division may not be adopted and filed in final form under division (B)(1) of this section unless ~~the~~ one of the following applies:

(a) The proposed rule has been filed with the joint committee on agency rule review under this division and the time for the joint committee to review the proposed rule has expired without recommendation of a concurrent resolution to invalidate the proposed rule;

(b) The proposed rule is subject to section 106.026 of the Revised Code, and a law authorizing its adoption enacted in accordance with Ohio Constitution, Article II, Sections 15 and 16 is in effect.

(3) If a proposed rule that is subject to legislative review under this division implements a federal law or rule, the agency shall provide to the joint committee a citation to the federal law or rule the proposed rule implements and a statement as to whether the proposed rule implements the federal law or rule in a manner that is more or less stringent or burdensome than the federal law or rule requires.

(4) As used in this division, "commission" includes the public utilities commission when adopting rules under a federal or state statute.

(5) This division does not apply to any of the following:

~~(1)~~(a) A proposed rule of an emergency nature;

~~(2)~~(b) A rule proposed under section 1121.05, 1121.06, 1349.33, 1707.201, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.345, 4123.40, 4123.411, 4123.44, or 4123.442 of the Revised Code;

~~(3)~~(c) A rule proposed by an agency other than a board, commission, department, division, or bureau of the government of the state;

~~(4)~~(d) A proposed internal management rule of a board, commission, department, division, or bureau of the government of the state;

~~(5)~~(e) Any proposed rule that must be adopted verbatim by an agency pursuant to federal law or rule, to become effective within sixty days of adoption, in order to continue the operation of a federally reimbursed program in this state, so long as the proposed rule contains both of the following:

~~(a)~~(i) A statement that it is proposed for the purpose of complying with a federal law or rule;

~~(b)~~(ii) A citation to the federal law or rule that requires verbatim compliance.

~~(6)~~(f) An initial rule proposed by the director of health to impose quality standards on a health care facility as defined in section 3702.30 of the Revised Code;

~~(7)~~(g) A rule of the state lottery commission pertaining to instant game rules.

If a rule is exempt from legislative review under division ~~(D)(5)~~(D)(5)(e) of this section, and if the federal law or rule pursuant to which the rule was adopted expires, is repealed or rescinded, or otherwise terminates, the rule is thereafter subject to legislative review under division (D) of this section.

Whenever a state board, commission, department, division, or bureau files a proposed rule or a proposed rule in revised form under division (D) of this section, it shall also file the full text of the same proposed rule or proposed rule in revised form in electronic form with the secretary of state and the director of the legislative service commission. A state board, commission, department, division, or bureau shall file the rule summary and fiscal analysis prepared under section 106.024 of the Revised Code in electronic form along with a proposed rule or proposed rule in revised form that is filed with the secretary of state or the director of the legislative service commission.

Sec. 119.03. In the adoption, amendment, or rescission of any rule, an agency shall comply with the following procedure:

(A) Reasonable public notice shall be given in the register of Ohio at least thirty days prior to the date set for a hearing, in the form the agency determines. The agency shall file copies of the public notice under division (B) of this section. (The agency gives public notice in the register of Ohio when the public notice is published in the register under that division.)

The public notice shall include:

(1) A statement of the agency's intention to consider adopting, amending, or rescinding a rule;

(2) A synopsis of the proposed rule, amendment, or rule to be rescinded or a general statement of the subject matter to which the proposed rule, amendment, or rescission relates;

(3) A statement of the reason or purpose for adopting, amending, or rescinding the rule;

(4) The date, time, and place of a hearing on the proposed action, which shall be not earlier than the thirty-first nor later than the fortieth day after the proposed rule, amendment, or rescission is filed under division (B) of this section.

In addition to public notice given in the register of Ohio, the agency may give whatever other notice it reasonably considers necessary to ensure notice constructively is given to all persons who are subject to or affected by the proposed rule, amendment, or rescission.

The agency shall provide a copy of the public notice required under division (A) of this section to any person who requests it and pays a reasonable fee, not to exceed the cost of copying and mailing.

(B) The full text of the proposed rule, amendment, or rule to be rescinded, accompanied by the public notice required under division (A) of this section, shall be filed in electronic form with the secretary of state and with the director of the legislative service commission. (If in compliance with this division an agency files more than one proposed rule, amendment, or rescission at the same time, and has prepared a public notice under division (A) of this section that applies to more than one of the proposed rules, amendments, or rescissions, the agency shall file only one notice with the secretary of state and with the director for all of the proposed rules, amendments, or rescissions to which the notice applies.) The proposed rule, amendment, or rescission and public notice shall be filed as required by this division at least sixty-five days prior to the date on which the agency, in accordance with division (E) of this section, issues an order adopting the proposed rule, amendment, or rescission.

If the proposed rule, amendment, or rescission incorporates a text or other material by reference, the agency shall comply with sections 121.71 to 121.75 of the Revised Code.

The proposed rule, amendment, or rescission shall be available for at least thirty days prior to the date of the hearing at the office of the agency in printed or other legible form without charge to any person affected by the proposal. Failure to furnish such text to any person requesting it shall not invalidate any action of the agency in connection therewith.

If the agency files a revision in the text of the proposed rule, amendment, or rescission, it shall also promptly file the full text of the proposed rule, amendment, or rescission in its revised form in electronic form with the secretary of state and with the director of the legislative service commission.

The agency shall file the rule summary and fiscal analysis prepared under section 106.024 of the Revised Code in electronic form along with a proposed rule, amendment, or rescission or proposed rule, amendment, or rescission in revised form that is filed with the secretary of state or the director of the legislative service commission.

The agency shall file the hearing report relating to a proposed rule, amendment, or rescission in electronic form with the secretary of state and the director of the legislative service commission at the same time the agency files the hearing report with the joint committee on agency rule review.

The director of the legislative service commission shall publish in the register of Ohio the full text of the original and each revised version of a proposed rule, amendment, or rescission; the full text of a public notice; the full text of a rule summary and fiscal analysis; and the full text of a hearing report that is filed with the director under this division.

~~(C)~~(C)(1) When an agency files a proposed rule, amendment, or rescission under division (B) of this section, it also shall file in electronic form with the joint committee on agency rule review the full text of the proposed rule, amendment, or rule to be rescinded in the same form and the public notice required under division (A) of this section. (If in compliance with this division an agency files more than one proposed rule, amendment, or rescission at the same time, and has given a public notice under division (A) of this section that applies to more than one of the proposed rules, amendments, or rescissions, the agency shall file only one notice with the joint committee for all of the proposed rules, amendments, or rescissions to which the notice applies.) The proposed rule, amendment, or rescission is subject to legislative review and invalidation under sections 106.02, 106.021, ~~and~~ 106.022, and 106.026 of the Revised Code. If the agency makes a revision in a proposed rule, amendment, or rescission after it is filed with the joint committee, the agency promptly shall file the full text of the proposed rule, amendment, or rescission in its revised form in electronic form with the joint committee.

An agency shall file the rule summary and fiscal analysis prepared under section 106.024 of the Revised Code in electronic form along with a proposed rule, amendment, or rescission, and along with a proposed rule, amendment, or rescission in revised form, that is filed under this division.

(2) If a proposed rule, amendment, or rescission has an adverse impact on businesses, the agency also shall file the business impact analysis, any recommendations received from the common sense initiative office, and the agency's memorandum of response, if any, in electronic form along with the proposed rule, amendment, or rescission, or along with the proposed rule, amendment, or rescission in revised form, that is filed under this division.

(3) The agency shall file the hearing report in electronic form with the joint committee before the joint committee holds its public hearing on the proposed rule, amendment, or rescission. The filing of a hearing report does not constitute a revision of the proposed rule, amendment, or rescission to which the hearing report relates.

(4) If the proposed rule, amendment, or rescission requires liability insurance, a bond, or any other financial responsibility instrument as a condition of licensure, the agency shall conduct a diligent search to determine if the liability insurance, bond, or other financial responsibility instrument is readily available in the amounts required as a condition of licensure, and shall certify to the joint committee that the search was conducted.

(5) If the proposed rule, amendment, or rescission implements a federal law or rule, the agency shall provide to the joint committee a citation to the federal law or rule the proposed rule, amendment, or rescission implements and a statement as to whether the proposed rule implements the federal law or rule in a manner that is more or less stringent or burdensome than the federal law or rule requires.

(6) A proposed rule, amendment, or rescission that is subject to legislative review under this division may not be adopted under division (E) of this section or filed in final form under section 119.04 of the Revised Code unless ~~the~~ one of the following applies:

(a) The proposed rule, amendment, or rescission has been filed with the joint committee on agency rule review under this division and the time for legislative review of the proposed rule, amendment, or rescission has expired without adoption of a concurrent resolution to invalidate the proposed rule, amendment, or rescission;

(b) The proposed rule, amendment, or rescission is subject to section 106.026 of the Revised Code, and a law authorizing its adoption enacted in accordance with Ohio Constitution, Article II, Sections 15 and 16 is in effect.

(7) This division does not apply to:

~~(1)~~ (a) An emergency rule, amendment, or rescission;

~~(2)~~ (b) A proposed rule, amendment, or rescission that must be adopted verbatim by an agency pursuant to federal law or rule, to become effective within sixty days of adoption, in order to continue the operation of a federally reimbursed program in this state, so long as the proposed rule contains both of the following:

~~(a)~~ (i) A statement that it is proposed for the purpose of complying with a federal law or rule;

~~(b)~~ (ii) A citation to the federal law or rule that requires verbatim compliance.

~~(3)~~ (c) A proposed rule, amendment, or rescission that, as set forth in section 3719.41 of the Revised Code, must be adopted by the state board of pharmacy pursuant to federal law or rule, to become effective within sixty days of adoption, so long as the proposed rule contains a statement that it is proposed for the purpose of complying with federal law or rule.

(8) If a rule or amendment is exempt from legislative review under division ~~(C)(2)~~ (C)(7)(b) of this section, and if the federal law or rule pursuant to which the rule or amendment was adopted expires, is repealed or rescinded, or otherwise terminates, the rule or amendment, or its rescission, is thereafter subject to legislative review under division (C) of this section.

(D) On the date and at the time and place designated in the notice, the agency shall conduct a public hearing at which any person affected by the proposed action of the agency may appear and be heard in person, by the person's attorney, or both, may present the person's position, arguments, or contentions, orally or in writing, offer and examine witnesses, and present evidence tending to show that the proposed rule, amendment, or rescission, if adopted or effectuated, will be unreasonable or unlawful. An agency may permit persons affected by the proposed rule, amendment, or rescission to present their positions, arguments, or contentions in writing, not only at the hearing, but also for a reasonable period before, after, or both before and after the hearing. A person who presents a position or arguments or contentions in writing before or after the hearing is not required to appear at the hearing.

At the hearing, the testimony shall be recorded. Such record shall be made at the expense of the agency. The agency is required to transcribe a record that is not sight readable only if a person requests transcription of all or part of the record and agrees to reimburse the agency for the costs of the transcription. An agency may require the person to pay in advance all or part of the cost of the transcription.

In any hearing under this section the agency may administer oaths or affirmations.

The agency shall consider the positions, arguments, or contentions presented at, or before or after, the hearing. The agency shall prepare a hearing summary of the positions, arguments, or contentions, and of the issues raised by the positions, arguments, or contentions. The agency then shall prepare a hearing report explaining, with regard to each issue, how it is reflected in the rule, amendment, or rescission. If an issue is not reflected in the rule, amendment, or rescission, the hearing report shall explain why the issue is not reflected. The agency shall include the hearing summary in the hearing report as an appendix thereto. And, in the hearing report, the agency shall identify the proposed rule, amendment, or rescission to which the hearing report relates.

~~(E) After~~ (E)(1) Subject to division (E)(2) of this section, after divisions (A), (B), (C), and (D) of this section have been complied with, and when the time for legislative review under sections 106.02, 106.022, and 106.023 of the Revised Code has expired without adoption of a concurrent resolution to invalidate the proposed rule, amendment, or rescission, the agency may issue an order adopting the proposed rule or the proposed amendment or rescission of the rule, consistent with the synopsis or general statement included in the public notice. At that time the agency shall designate the effective date of the rule, amendment, or rescission, which shall not be earlier than the tenth day after the rule, amendment, or rescission has been filed in its final form as provided in section 119.04 of the Revised Code.

(2) If a proposed rule, amendment, or rescission is subject to section 106.026 of the Revised Code, the agency may issue an order adopting the proposed rule or the proposed amendment or rescission of the rule on or after the effective date of the law authorizing adoption enacted in accordance with Ohio Constitution, Article II, Sections 15 and 16.

(F) Prior to the effective date of a rule, amendment, or rescission, the agency shall make a reasonable effort to inform those affected by the rule, amendment, or rescission and to have available for distribution to those requesting it the full text of the rule as adopted or as amended.

(G)(1) If the governor, upon the request of an agency, determines that an emergency requires the immediate adoption, amendment, or rescission of a rule, the governor shall issue an order, the text of which shall be filed in electronic form with the agency, the secretary of state, the director of the legislative service commission, and the joint committee on agency rule review, that the procedure prescribed by this section with respect to the adoption, amendment, or rescission of a specified rule is suspended. The agency may then adopt immediately the emergency rule, amendment, or rescission and it becomes effective on the date the rule, amendment, or rescission, in final form and in compliance with division (A)(2) of section 119.04 of the Revised Code, is filed in electronic form with the secretary of state, the director of the legislative service commission, and the joint committee on agency rule review. The director shall publish the full text of the emergency rule, amendment, or rescission in the register of Ohio.

Except as provided in division (G)(2) of this section, or section 107.43 of the Revised Code, the emergency rule, amendment, or rescission shall become invalid at the end of the one hundred twentieth day it is in effect. Prior to that date the agency may adopt the emergency rule, amendment, or rescission as a nonemergency rule, amendment, or rescission by complying with the procedure prescribed by this section for the adoption, amendment, and rescission of nonemergency rules. The agency shall not use the procedure of division (G)(1) of this section to readopt the emergency rule, amendment, or rescission so that, upon the emergency rule, amendment, or rescission becoming invalid under division (G)(1) of this section, the emergency rule, amendment, or rescission will continue in effect without interruption for another one-hundred-twenty-day period, except when section 106.02 of the Revised Code prevents the agency from adopting the emergency rule, amendment, or rescission as a nonemergency rule, amendment, or rescission within the one-hundred-twenty-day period.

Division (G)(1) of this section does not apply to the adoption of any emergency rule, amendment, or rescission by the tax commissioner under division (C)(2) of section 5117.02 of the Revised Code.

(2) An emergency rule or amendment adding a substance to a controlled substance schedule shall become invalid at the end of the one hundred eightieth day it is in effect. Prior to that date, the state board of pharmacy may adopt the emergency rule or amendment as a nonemergency rule or amendment by complying with the procedure prescribed by this section for adoption and amendment of nonemergency rules. The board shall not use the procedure of division (G)(1) of this section to readopt the emergency rule or amendment so that, upon the emergency rule or amendment becoming invalid under division (G)(2) of this section, the emergency rule or amendment will continue in effect beyond the one-hundred-eighty-day period.

(3) The general assembly, by adopting a concurrent resolution, and in accordance with section 107.43 of the Revised Code, may do either of the following:

(a) Invalidate, in whole or in part, an emergency rule adopted or amended by an agency in response to a state of emergency, as defined under section 107.42 of the Revised Code, under division (G)(1) of this section;

(b) Authorize an agency to readopt, in whole or in part, a rule that was rescinded in response to a state of emergency under division (G)(1) of this section.

(H) Rules adopted by an authority within the department of job and family services for the administration or enforcement of Chapter 4141. of the Revised Code or of the department of taxation shall be effective without a hearing as provided by this section if the statutes pertaining to such agency specifically give a right of appeal to the board of tax appeals or to a higher authority within the agency or to a court, and also give the appellant a right to a hearing on such appeal. This division does not apply to the adoption of any rule, amendment, or rescission by the tax commissioner under division (C)(1) or (2) of section 5117.02 of the Revised Code, or deny the right to file an action for declaratory judgment as provided in Chapter 2721. of the Revised Code from the decision of the board of tax appeals or of the higher authority within such agency.

Sec. 119.04. (A)(1) Any rule adopted by any agency shall be effective on the tenth day after the day on which the rule in final form and in compliance with division (A)(2) of this section is filed as follows:

(a) The rule shall be filed in electronic form with both the secretary of state and the director of the legislative service commission;

(b) The rule shall be filed in electronic form with the joint committee on agency rule review. Division (A)(1)(b) of this section does not apply to any rule to which division (C) of section 119.03 of the Revised Code does not apply.

If an agency in adopting a rule designates an effective date that is later than the effective date provided for by this division, the rule if filed as required by this division shall become effective on the later date designated by the agency.

An agency that adopts or amends a rule that is subject to section 106.03 of the Revised Code shall assign a review date to the rule that is not later than five years after its effective date. If a review date assigned to a rule exceeds the five-year maximum, the review date for the rule is five years after its effective date. A rule with a review date is subject to review under section 106.03 of the Revised Code. A rule subject to section 106.026 of the Revised Code requiring a law authorizing its adoption is not subject to review under section 106.03 of the Revised Code and expires in accordance with section 106.033 of the Revised Code.

(2) The agency shall file the rule in compliance with the following standards and procedures:

(a) The rule shall be numbered in accordance with the numbering system devised by the director for the Ohio administrative code.

(b) The rule shall be prepared and submitted in compliance with the rules of the legislative service commission.

(d) Each rule that amends or rescinds another rule shall clearly refer to the rule that is amended or rescinded. Each amendment shall fully restate the rule as amended.

If the director of the legislative service commission or the director's designee gives an agency notice pursuant to section 103.05 of the Revised Code that a rule filed by the agency is not in compliance with the rules of the commission, the agency shall within thirty days after receipt of the notice conform the rule to the rules of the commission as directed in the notice.

(3) As used in this section, "rule" includes an amendment or rescission of a rule.

(B) The secretary of state and the director shall preserve the rules filed under division (A)(1)(a) of this section in an accessible manner. Each such rule shall be a public record open to public inspection and may be transmitted to any law publishing company that wishes to reproduce it.

Sec. 121.96. (A) As used in this section:

(1) "Agency" means any agency to which sections 101.352, 101.353, 121.93, and 121.931 of the Revised Code apply.

(2) "Guidance document" means a written principle of law or policy that has not been stated in a rule and that an agency is relying on in conducting adjudications or other determinations of rights and liabilities or in issuing writings and other materials. "Guidance document" does not include written principles of law or policy relied on by the agency in issuing internal management rules as defined in section 111.15 of the Revised Code.

(B) Except as provided in division (E) of this section, an agency shall do both of the following:

(1) On the date the agency issues a guidance document, publish the document in accordance with the requirements of division (C) of this section;

(2) Not later than one hundred eighty days after the effective date of this section, publish, in accordance with the requirements of division (C) of this section, any guidance document issued by the agency that is in effect on the effective date of this section.

(C)(1) An agency that publishes a guidance document in accordance with division (B) of this section shall publish the document to a single location on a web site maintained by the director of administrative services pursuant to division (D) of this section.

(2) Each agency shall, for guidance documents published by the agency under division (B) of this section, post a hyperlink on the agency's web site that provides access to the guidance documents at the location described in division (C)(1) of this section. The hyperlink shall be prominently displayed on the agency's web site.

(3) An agency shall categorize guidance documents published by the agency under division (B) of this section into specific, identifiable topics and shall further divide the topics and guidance documents into subcategories as appropriate.

(D) Not later than ninety days after the effective date of this section, the director of administrative services shall create a web site on which guidance documents shall be published under division (B) of this section.

(E) If any information in a guidance document issued by an agency is not a public record under section 149.43 of the Revised Code, the information is not subject to the requirements of this section.

(F)(1) If an agency rescinds a guidance document, the agency shall do both of the following:

(a) Maintain the rescinded guidance document on the web site maintained by the director of administrative services pursuant to division (D) of this section;

(b) Indicate that the guidance document was rescinded, the date on which the guidance document was rescinded, and, if the guidance document was rescinded pursuant to a court order, the case number of the case in which the order was entered.

(2) An agency shall comply with division (F)(1) of this section not later than the date on which a guidance document is rescinded. In the case of a guidance document that is rescinded pursuant to a court order, the agency shall comply with division (F)(1) of this section not later than the date on which the court enters the order.

Sec. 126.04. (A) As used in this section:

(1) "Costs" means opportunity cost to society.

(2) "Cost savings" means the cost imposed by a regulatory action that is eliminated by the rescission, replacement, or modification of that regulatory action.

(3) "Deregulatory action" means the rescission, replacement, or modification of an existing regulatory action.

(4) "Incremental regulatory cost" means the difference between the estimated cost of issuing a significant regulatory action and the estimated cost saved by issuing any deregulatory action.

(5) "Regulatory action" means any rule, regulatory guidance, statement of policy, information collection request, form, or reporting, recordkeeping, or disclosure requirement that imposes a burden on the public or governs a state agency's operations.

(6) "Significant regulatory action" means any regulatory action that is likely to do any of the following:

(a) Impose an annual effect on this state's economy of one million dollars or more;

(b) Adversely affect in a material way this state's economy, a sector of this state's economy, productivity, competition, jobs, the environment, public health or safety, or a specific identifiable community within this state;

(d) Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof;

(e) Raise a novel legal or policy issue.

(B) By the thirty-first day of December and the thirtieth day of June in each year, the director of budget and management shall publish a unified regulatory agenda. In the unified regulatory agenda, the director shall include both of the following:

(1) A list of regulatory and deregulatory actions under development or review at each state agency;

(2) A regulatory plan of all significant regulatory actions and associated deregulatory actions that each state agency reasonably expects to issue in proposed or final form in the year in which the agenda is published and the following fiscal year.

(C)(1) In accordance with guidance issued by the director under division (F) of this section, and not less than sixty days before each date of publication for the unified regulatory agendas under division (B) of this section, the head of each state agency shall submit to the director an agenda of all regulatory actions and deregulatory actions under development at the agency. In the agenda of regulatory actions, the head of each state agency shall include all of the following:

(a) A regulatory action or deregulatory action identifier number;

(b) A brief summary of the action;

(d) Any required deadline for the action and the reason the deadline is required;

(e) The name and contact information for a knowledgeable official at the agency who is familiar with the action;

(f) Any other information as required by the director.

(2) The agenda described in division (C)(1) of this section shall include a list of each significant regulatory action the agency reasonably expects to issue in proposed or final form in the current and following fiscal year. For each significant regulatory action, the head of the agency shall include all of the following:

(a) A statement of the significant regulatory action's objectives;

(b) The legal authority for the significant regulatory action;

(d) The agency's schedule for the significant regulatory action;

(e) The estimated cost of the significant regulatory action;

(f) The estimated benefit of the significant regulatory action;

(g) Any deregulatory action related to the significant regulatory action;

(h) A best approximation of the total cost or savings of the significant regulatory action and any cost or savings associated with the related deregulatory action identified under division (C)(2)(g) of this section;

(i) An estimate of the economic effects of the significant regulatory action that were considered in drafting the action, including any estimate of the net effect the action will have on the number of jobs in this state, or, if an estimate is not available, a statement affirming that no information on the economic effects of the action has been considered.

(D)(1) In the December unified regulatory agenda described in division (B) of this section, the director shall establish the annual regulatory budget. In the regulatory budget, the director shall do both of the following:

(a) Specify the net amount of incremental regulatory costs allowed at each state agency for the next fiscal year;

(b) At the director's discretion, set an incremental regulatory cost allowance allowing an increase, prohibiting an increase, or requiring a decrease of incremental regulatory costs.

(2) If the director does not set a net amount of incremental regulatory costs allowed for a state agency under division (D)(1)(b) of this section, the net incremental regulatory cost allowed shall be zero.

(E)(1) Except as provided in division (E)(2) of this section, a state agency shall not take a significant regulatory action unless all of the following apply:

(a) The head of the state agency identifies at least one deregulatory action to offset the costs of the significant regulatory action and issues the deregulatory action before or on the same schedule as the significant regulatory action;

(b) The incremental costs of the significant regulatory action as offset by any deregulatory action issued before or on the same schedule as the significant regulatory action do not cause the state agency to exceed or contribute to the agency exceeding the agency's incremental regulatory cost allowance for that fiscal year as established by the director under division (D) of this section;

(c) The significant regulatory action was included on the most recent version of the published unified regulatory agenda.

(2) The general assembly may approve the issuance of a significant regulatory action that is prohibited under division (E)(1) of this section by enacting a law in accordance with Ohio Constitution, Article II, Sections 15 and 16.

(F)(1) Not later than ninety days after the effective date of this section, the director shall issue guidance on how a state agency shall comply with the requirements of division (C) of this section. In the guidance, the director shall include all of the following:

(a) A process for standardizing the measurement and estimation of regulatory costs, including cost savings associated with deregulatory actions;

(b) Standards for determining what qualifies as a deregulatory action;

(c) Standards for determining the costs of existing regulatory actions that are considered for repeal, replacement, or modification;

(d) Standards under which the director will determine whether a regulatory action or a collection of regulatory actions qualifies as a significant regulatory action.

(2) The director shall periodically update the guidance issued pursuant to division (F)(1) of this section.

Section 2. That existing sections 106.02, 106.023, 106.024, 111.15, 119.03, and 119.04 of the Revised Code are hereby repealed.