2023 Second Half Year End Review and 2024 Preview

Overview.

In the second half of 2023, the 135^th Ohio General Assembly returned after its summer recess, initially set to focus on the state legislative redistricting process. The legislature spent most of the fall campaigning on statewide ballot measures, including an August special election and the November General Election, holding committee and floor session sparingly during the second half of the year. The year concluded with a flurry of activity in November and December, but overall, the 135^th General Assembly has not been very productive when it comes to passing legislation compared to previous General Assemblies. The House and Senate struggled to find common ground on many measures, including revisions to voter-approved Issue 2, which legalized adult use recreational marijuana.

The 2024 session calendar is similarly light; however, the legislature does have a growing to-do list. In addition to addressing additional adult use recreational marijuana regulations, the House and Senate will also tackle a capital budget. Additionally, Ohio’s Primary Election, scheduled for March 19, 2024, features several important races that could determine legislative leadership in 2025.

2023 Second Half Legislative Summary.

Legislators surprised most statehouse observers when a bipartisan deal was struck on redistricting. After the contentious and litigious redistricting process from 2023, most expected a similar long and drawn out fight. Instead, the Redistricting Commission unanimously adopted maps that will last through the rest of the decade before the next redistricting cycle. Although Democratic members of the Commission, Senate Minority Leader Nickie Antonio (D-Lakewood) and House Minority Leader Allison Russo (D-Upper Arlington) voted with the Republican commissioners to approve the maps, both expressed concerns with the final product and the redistricting process.

Legislators’ attentions then turned to the ballot box. First, the Special August Election, where Issue 1, which proposed changes to Ohio’s constitution related to citizen-initiated ballot measures, was soundly defeated. The November General Election featured two statewide ballot issues. Issue 1, which codified reproductive rights in Ohio’s Constitution, and Issue 2, legalizing the adult use of recreational marijuana through initiated statute, both passed overwhelmingly.

Following the election, the legislature worked on a few notable pieces of legislation, but ultimately only sent two bills to Governor DeWine’s desk before the end of the year.

1. Issue 2- Adult Use Recreational Marijuana.

After the November 2023 General Election, Ohio Senate leadership announced their intent to make changes to the initiated statute. Many of the concerns of the legislative leaders stemmed from the tax rate, lack of advertising limitations, and the THC limits in the initiated statute language.

The Ohio Senate chose to amend H.B. 86 (LaRe) during the committee process to propose changes to the new adult use recreational marijuana provisions. On December 4, 2023, the Senate General Government Committee adopted a substitute bill, which amended the initiated statute. The amendments included a ban on home grown marijuana, increase of tax rates, and lower THC potency rates. Later that week, after a bipartisan agreement was reached, which included restoration of limited home grow, the Senate General Government Committee unanimously passed the bill. The full Senate passed the measure with a vote of 29-2. However, the House recessed before holding a concurrence vote. Therefore, the bill is still awaiting House action.

The House chose to introduce a new bill to address changes to the initiated statute, H.B. 354 (Callender). The House legislation largely keeps Issue 2 intact, but also clarifies advertising and marketing of cannabis products, revises the tax structure, and adds similar language from the Senate version allowing employers to fire or refuse to hire workers who use marijuana in violation of their drug-free policy. The House Rules and Reference Committee referred the bill to House Finance Committee, where it received sponsor testimony on December 6, 2023. House Finance Committee held two more hearings on H.B. 354 prior to the holiday recess, but did not pass the measure out of committee.

In the end, neither proposal made it to the Governor’s desk. However, the legislature is expected to revisit the issue in 2024.

2. House Bill 201- Natural Gas Infrastructure Development Rider.

During the final few working days of 2023, the Senate Energy and Public Utilities Committee amended H.B. 201 (Hillyer, Demetriou), originally a bill that prohibited a state agency, county, or township from restricting the sale or use of a certain power sourced motor vehicle, to include language expanding the natural gas infrastructure development rider. The amendment grows the rider by directing the Public Utilities Commission to authorize recovery for development projects backed by JobsOhio, the Department of Development, or their regional partners. The amendment is similar to a proposal vetoed by Governor DeWine in the most recent state budget, however, despite previous reservations, Governor DeWine signed H.B. 201 on December 28, 2023.

3. Veto Override – Preemption of Local Bans on Flavored Tobacco and Vapor Products.

The House used its last session day to revisit a line item veto from the operating budget (H.B. 33- Edwards). Earlier in the year, Governor DeWine vetoed a provision from the budget bill that preempted local regulation of flavored tobacco and vaping products. Columbus, and other cities, have enacted local bans on such products. State lawmakers responded by passing the preemption measure, blocking enforcement of any local bans on the flavored products. Governor DeWine has repeatedly called for a statewide ban on flavored products. The Senate could take up the veto override in 2024. A 2/3 vote is required to override a Governor’s veto. Columbus’ flavored tobacco and vapor product ban took effect on January 1, 2024.

2024 Legislative Preview.

The Ohio General Assembly signaled many of its intended 2024 priorities with the legislative hearings that occurred at the end of the year. Below is a preview of some of the expected priority bills for 2024.

1. Energy and Utilities.
   1. Senate Bill 102 / Senate Bill 143 –Electric Security Plans.

The Senate Energy and Public Utilities Committee adopted a substitute bill for Senate Bill 102 in November. Under S.B. 102 (Wilkin), an electric distribution utility (EDU) must file a distribution rate case every five years. The bill allows for EDUs to apply for a Standard Service Offer Plan (SSO Plan). Under a plan, all direct and indirect costs that an EDU incurs to support or provide its SSO must be recovered through an SSO price. The bill requires the Public Utilities Commission of Ohio to authorize certain riders, programs, lease financing arrangements, and cost recovery for certain infrastructure projects held for future use. S.B. 102 is expected to receive additional committee activity in 2024.

Unlike S.B. 102, Senator Mark Romanchuk’s (R-Mansfield) bill, S.B. 143, seeks to eliminate electric security plans (ESPs) entirely by requiring the electric distribution utilities to establish their standard service offer (SSO) as a market- rate offer.  The Senate referred S.B. 143 to Senate Energy and Public Utilities Committee. Thus far, the bill received sponsor testimony on December 12, 2023 leading up to the holiday break. Although, both bills aim to change the ESP statutes and process in Ohio, the Committee has completed more hearings on S.B. 102. We expect additional conversations and committee activity to occur on ratemaking in Ohio.

1. 2. House Bill 358 / Senate Bill 200 – Carbon Capture.

Representative Monica Robb Blasdel (R-Columbiana) introduced House Bill 358, which is placeholder language with the intent to regulate carbon capture and storage technologies in Ohio. The House Rules and Reference Committee referred H.B. 358 to House Energy and Natural Resources Committee. Senators Tim Schaffer (R-Lancaster) and Al Landis (R-Dover) introduced identical language, Senate Bill 200. The Senate referred S.B. 200 to the Senate Energy and Public Utilities Committee. As the proposal works its way through the committee process, more detailed language will likely be unveiled as a substitute bill.

2. Insurance.

1. 1. Senate Bill 175 - Insurance Omnibus Bill.

Senator George Lang (R-West Chester) introduced Senate Bill 175 on October 17, 2023. In November, Senate Insurance Committee held sponsor testimony on S.B 175. The bill includes several key insurance related provisions. S.B. 175 exempts insurance rules that are necessary to meet the accreditation requirements by the National Association of Insurance Commissioners’ Financial Regulation Standards from the continuing law requirement concerning reductions in regulatory restrictions. Additionally, the bill exempts certain commercial policy documents from insurers that are unique in character and designed for a particular risk from the continuing law filing requirement with the Superintendent of Insurance. We expect the Senate Insurance Committee to continue its works on the bill in 2024 as many of the provisions are widely supported by the industry.

3. Capital Budget.

Traditionally, Ohio adopts a capital budget in even-numbered years, providing funding for state capital projects and community projects. House Finance Committee Chair Jay Edwards (R-Athens) announced the timeline for the House capital budget process, with requests for new capital projects due to House members by December 18, 2023. Conversely, Senate Finance Committee Chair Matt Dolan (R-Chagrin Falls) announced the Senate’s timeline with requests due to Senate members by April 8, 2024 House leadership hoped for a quick capital budget process, but with the two vastly different timelines it appears the capital budget process could continue well into Q2 of 2024. In addition to the traditional capital budget, the legislature will also allocate funds through the One Time Strategic Community Investment Fund – a newly created $750 million resource authorized in the operating budget (HB 33-Edwards). Expect negotiations surrounding the capital budget and the one-time funds to dominate most of the spring legislative work prior to the summer recess.

Possible Ballot Issues.

1. Minimum Wage.

Although the organizers, One Fair Wage, of a proposed constitutional amendment to raise Ohio’s minimum wage already had the ability to collect signatures to place the measure on the ballot, the group instead refiled the constitutional amendment with the Attorney General’s office on March 27, 2023. The third submission of the constitutional amendment includes an increase of minimum wage to $12.75 per hour on January 1, 2025 and then an increase to $15 per hour on January 1, 2026.  Since the group did not file signatures to appear on the November 2023 General Election, they are expected to file signatures for the November 2024 General Election.

2. Redistricting.

A group of individuals, Citizens Not Politicians, filed a summary of a proposed amendment to create the Citizens Redistricting Commission and the Attorney General certified the summary in the fall of 2023. The proposed constitutional amendment language changes Ohio’s redistricting process, which just recently was amended in 2015 and 2017.  Instead of a redistricting commission comprised of elected officials, the commission is comprised of appointed citizens. The group stated that they are collecting signatures to appear on the November 2024 General Election.

3. Voting Rights.

On December 19, 2023, a ballot petition committee filed summary language with the Ohio Attorney General for a constitutional amendment that would enshrine voting rights in the Constitution. The proposal is titled the “Secure and Fair Elections” amendment and overhauls Ohio’s voting rights laws by allowing same-day registration, expands the use of ballot drop boxes, and prescribes that the General Assembly may “pass laws expanding and facilitating the rights and opportunities guaranteed under this section, but in no manner denying or limiting them.” On December 28, 2023, Ohio Attorney General Dave Yost rejected the petition summary as not providing a fair and truthful statement, meaning the petitioners must start the process over and resubmit revised summary language. The group may still target making the November 2024 General Election.

2024 Election Preview.

1. Overview.

Along with the presidential election, Ohio will be a battleground state for another U.S. Senate seat in 2024. Candidate petitions were filed on December 20, 2023 revealing the official primary races and match ups for the 2024 General Election. Preliminary, unofficial, lists of candidates for the Primary Elections for the U.S. House of Representatives, Ohio House of Representatives, and Ohio Senate are provided at the end of this memorandum.

2. S. Senate.

Senator Sherrod Brown (D-Cleveland) is up for reelection and will face the winner of the Republican primary, which includes Bernie Moreno, who recently received former President Donald Trump’s endorsement, State Senator Matt Dolan (R-Chagrin Falls) and Secretary of State Frank LaRose (R-Upper Arlington). The former President’s endorsement proved pivotal in the 2022 U.S. Senate Republican Primary, propelling now U.S. Senator J.D. Vance (R-Cincinnati) to victory. Senator Brown has won tough reelection challenges previously, but Ohio Republicans are hoping 2024 is a banner year for the GOP, allowing them to finally defeat the three-term Senator.  Regardless, Senator Brown’s re-election race versus any of the Republican challenges will be one of the most watched and competitive races in the country with the control of the United States Senate likely hanging in the balance.

3. Ohio Supreme Court.

Three of the seven seats on the Ohio Supreme Court are contested on the November ballot. Current Justices Melody J. Stewart (D-Cleveland) and Michael P. Donnelly (D-Cleveland Heights) are up for reelection in 2024. Justice Joe Deters (R-Cincinnati) will face Justice Stewart, instead of running for the unexpired term he was appointed to following Chief Justice Sharon Kennedy’s (R- Cincinnati) election to the Chief Justice seat in November of 2022. Justice Donnelly will be running against Judge Meagan Shanahan (R-Cincinnati). Lastly, Judge Dan Hawkins (R-Columbus) will face the winner of the Democratic primary, either Tenth District Court of Appeals Judge Terri Jamison (D-Columbus) or Eighth District Court of Appeals Judge Lisa Forbes (D-Cleveland), for the remainder of term that expires December 31, 2025. This November General Election will be the second General Election showing party affiliation alongside Ohio Supreme Court candidates’ names (and Court of Appeals candidates) on the ballot.

4. S. House of Representatives.

All of Ohio’s incumbent members of the United States House of Representatives face General Election challengers, several also drew primary challengers. In a race that will again garner national attention, Congressman Greg Landsman (D-Cincinnati), who upset Steve Chabot in 2022, will be challenged by Republican Orlando Sonza (R-Cincinnati). Neither have primary opposition. Congresswoman Marcy Kaptur (D-Toledo), the current longest serving member of Congress in the nation, will face the winner of the crowded Republican primary in November. Representative Derek Merrin (R- Monclova Township), former Representative Craig Riedel (R-Defiance), J.R. Majewski (R-Port Clinton), and Steve Lankenau (R-Defiance) all filed for the Republican primary of Ohio’s 9^th congressional district. In 2022, Congresswoman Kaptur defeated J.R. Majewski.

The upcoming retirements of Republican Congressmen Brad Wenstrup (R-Cincinnati) and Bill Johnson (R-Marietta) created crowded Republican primaries. Congressman Bill Johnson announced he will retire in early January, therefore, Governor DeWine set the special election dates. The primary for the 6^th congressional district seat will be held on March 19, 2024, the same day as Ohio’s 2024 primary election. The special election for the congressional seat will be held on Tuesday, June 11, 2024. Congressman Wenstrup is expected to remain in his seat until the end of 2024. Several state legislators are seeking higher office as a result, including State Senators Niraj Antani (R-Miamisburg), Shane Wilkin (R-Hillsboro), and Michael Rulli (R-Salem), as well as State Representative Reggie Stoltzfus (R-Paris Township). The winner of those respected primaries is projected to also win the General Election contests. Democratic State Representative Adam Miller (D-Columbus) is challenging Republican Congressman Mike Carey (R-Columbus) for the 15^th congressional district.

5. Ohio General Assembly.

Many legislators are seeking to switch chambers, including several Senators facing term limits. President Matt Huffman (R-Lima) is running for election in the Ohio House, and many speculate that he will seek to take the Speaker seat once elected. Speaker Jason Stephens (R-Kitts Hill) is seeking reelection to his seat. Senator Stephanie Kunze also filed her petitions to run for the 11^th House district. She will face Crystal Lett (D-Hilliard), who Senator Kunze defeated in 2020. Representative Beth Liston (D-Dublin) is running for the Senate seat currently held by Senator Kunze. Representative Tom Patton (R-Strongsville) looks to return to the Ohio Senate.

Representative Mike Loychik (R-Cortland) filed to run against incumbent Senator Sandra O’Brien (R-Rome). Former Representative Candice Keller (R-Middletown) filed petitions to challenge Senator George Lang (R-West Chester) in the Republican primary. This election battle will be the second time Keller and Lang have squared off in a primary for the Southwest Ohio Senate district. Another former legislator, Kyle Koehler (R-Springfield), filed to return to the General Assembly. The former State Representative is running for the 10^th Senate district, which term-limited Senator Bob Hackett currently represents. 

Several members announced their intention not to run for reelection including Representatives Mary Lightbody (D-Plain Township), Richard Brown (D-Canal Winchester), and Tavia Galonski (D-Akron). Representative Galonski is instead running for Summit County Clerk of Courts.

Conclusion.

As we enter 2024, Ohio’s legislative agenda will be quiet prior to the March Primary Election. Legislative members will return for a few session dates in late Spring until returning back to their districts in the early Summer to campaign for the November General Election. With so many bills awaiting legislative action, we expect a busy lame duck session at the end of 2024. You can view any of the bills discussed in this memo at the Ohio General Assembly’s website: https://www.legislature.ohio.gov or contact a member of Bricker Graydon’s Government Relations team for more details.

We look forward to working with you in the coming year and helping make 2024 a success.

U.S. House of Representatives[1]

Ohio House of Representatives

Ohio Senate

[1] Preliminary, unofficial, lists of candidates.

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