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SB 445

Regards regulatory restrictions for administrative rulemaking

136th Legislature (2025-2026) Introduced by Andrew Brenner

SB 445 aims to inventory, limit, and cut regulatory restrictions 30% by 2025, requiring removal of multiple restrictions for any new one and increasing agency transparency.

Referred to committee
#administrativeprocedure #stateandlocalgovernment
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Bill Summary · SB 445

Overview

SB 445 (136th General Assembly, Ohio) proposes changes to how regulatory restrictions are defined and managed in state administrative rulemaking. The bill aims to create a formalInventory and reduction requirement for regulatory restrictions, with specific timelines and reporting obligations for state agencies.

Main purpose and intent

  • To redefine what counts as a “regulatory restriction” and to establish a structured process for identifying, reporting, and reducing such restrictions.
  • To ensure agencies regularly review and reduce regulatory restrictions, with a target of a 30% net reduction by June 30, 2025.
  • To prevent agencies from expanding regulatory restrictions unless they simultaneously remove others, thereby controlling cumulative regulatory burden.

Key provisions and changes

  • Definition adjustments (Section 121.95):
    • Classifies “state agency” for purposes of rulemaking responsibilities, including several state bodies (department heads, specific commissions, and institutions such as Department of Education and Workforce, Ohio Casino Control Commission, etc.).
    • Defines “regulatory restriction” as any part of a rule that requires or prohibits an action.
  • Base inventory and reporting (Section 121.95):
    • Agencies must, by Dec 31, 2019 (note: historical reference in introduced text), identify rules with regulatory restrictions and prepare a base inventory.
    • The base inventory must document for each restriction: description, rule number, underlying statute, whether required by law, whether removing would require a legal change, and any other relevant information.
    • Certain rules/restrictions are exempt from the inventory (e.g., internal management rules, emergency rules, rules required verbatim by law, accreditation requirements, etc.).
    • Agencies must post the base inventory publicly and transmit it to the Joint Committee on Agency Rule Review (JCARR).
  • Prohibition on adding without removing (Section 121.95(F)):
    • From Oct 17, 2019 to June 30, 2025, agencies may not adopt a new regulatory restriction unless they remove two or more existing restrictions (no “merging” restrictions to satisfy the requirement).
  • Reduction targets and timing (Section 121.951):
    • Agencies must reduce regulatory restrictions by 30% by June 30, 2025, with staged targets:
    • 10% reduction by June 30, 2023
    • 20% reduction by June 30, 2024
    • 30% reduction by June 30, 2025
    • Agencies must amend or rescind rules identified in their base inventory to achieve reductions using criteria from another section (106.03).
    • Once reductions are achieved, agencies may not adopt or maintain restrictions that would negate the reduction.
    • If by July 1, 2025 an agency has not achieved 30%, it may not adopt new restrictions unless it removes two or more existing restrictions (still not by merging), continuing until the goal is met.
  • Ongoing oversight and reporting (Section 121.951(A)(2)-(3)):
    • Beginning Sept 15, 2022, agencies must prepare historical progress reports on reductions, with updated inventories and net-reduction calculations.
    • Reports are transmitted to JCARR and then to the Speaker of the House and President of the Senate, continuing annually until the 30% reduction is achieved.
  • Additional notes:
    • The bill repeals current sections 121.95 and 121.951 and would replace them with the new framework.

Who would be affected

  • All state agencies subject to the rulemaking review framework, including major departments and specified commissions (e.g., Department of Education and Workforce, Ohio Casino Control Commission, State Lottery Commission, Public Utilities Commission, etc.).
  • Legislative committees (JCARR) responsible for reviewing and transmitting inventories and progress reports.

Procedural and timeline considerations

  • Base inventories and public postings expected, with ongoing annual progress reports.
  • Clear reduction milestones culminating in a 30% net reduction by mid-2025.
  • New restrictions trigger a requirement to remove multiple existing restrictions, enforcing a net-burden cap on growth of regulatory restrictions during the transition period.

Potential impact

  • Administrative burden on agencies to inventory and justify regulatory restrictions.
  • Incentive to streamline regulations, potentially reducing regulatory costs for businesses and individuals.
  • Increased transparency through public inventories and JCARR oversight.
  • Possible tension during transition if agencies struggle to meet reduction targets or face legal complexities in removing restrictions.

Compiled from official sources — confirm details with the bill’s official record.

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