May 16, 2023
Workers’ Compensation and Industrial Commission Budgets Begin Hearings in the Senate
The Ohio Senate Insurance Committee has begun its hearings on the Bureau of Workers’ Compensation (BWC) and Industrial Commission (IC) budgets. Both Administrator John Logue and Chair Jim Hughes testified before the committee earlier this month and highlighted the major aspects of their budget bills.

Other than the elimination of the proposed agency name change for the BWC, each budget bill remains unchanged from their as-introduced version and they enjoyed broad bi-partisan support in the Ohio House, passing the lower chamber with a combined total of five no votes. The most significant policy change comes the BWC’s budget where they are proposing the elimination of the administrative cost fund assessment that is currently a separate charge from an employer’s premium that impacts the total amount an employer pays. Under HB 31, the assessment would be calculated as part of an employer’s premium, like we see with other insurance products like auto insurance, and provide more price transparency for Ohio employers. 

Across the biennium, the BWC budget bill appropriates a total of $755.8 million and the IC budget appropriates a total of $111.1 million. These expenditures are paid for entirely by employer premiums and may be offset by BWC’s investment returns. 

The Ohio Chamber has followed each bill since the beginning of the legislative process and will continue to monitor the bills to assure no last second amendments that would negatively impact Ohio businesses are added.
Ohio Chamber Testifies on Bill Combating Fraudulent Business Filings
Ohio Chamber SVP Rick Carfagna offered proponent testimony last Tuesday in the Senate Judiciary Committee on Senate Bill 98, priority legislation for the Ohio Chamber which proposes several new identity theft protections for Ohio businesses. The hearing follows a late March press conference attended by Ohio Chamber of Commerce President and CEO Steve Stivers, Ohio Secretary of State Frank LaRose, and State Senator Michael Rulli (R-Salem) to unveil the legislation.  SB 98 creates a host of new protections across four main areas:
 
  • Fraudulent Filings – Under SB 98, Ohio businesses and individuals will have a process in place to report if a bad actor has formed a new business fraudulently using someone else's address or personal info or has taken over a legitimate business filing to leverage it for fraud.

  • Deceptive Mailings – SB 98 goes after the practice of misleading mailers that imitate official governmental entities and charge exorbitant amounts of money for public services that are typically free or at a very low cost.

  • Limiting Reinstatements – Some bad actors fraudulently reinstate a dormant business without having any connection to the business, and then use that business’ history and/or good credit to obtain a business loan or to apply for unclaimed funds. SB 98 limits reinstatements to two years from the date of cancellation, unless an affidavit demonstrating the accuracy of the entity is provided.

  • Inaccurate Agent Addresses - Fraudulent businesses frequently use false address information or a PO Box address or a commercial mailbox address to hide their identities. SB 98 requires an agent’s address to be a residential or business address and forbids the use of a PO Box or other commercial mailbox such as a UPS store.
 
According to the U.S. Department of Justice, one out of every ten people is a victim of identity theft, with thieves increasingly targeting businesses with potentially disastrous outcomes. A Dun & Bradstreet study reinforces this, reporting a 106% increase in business identity theft in 2018 and 254% increase in 2020.
 
Last Tuesday’s hearing was the second in Senate Judiciary, with both the Ohio Chamber and NFIB-Ohio presently the only two formal proponents having offered testimony. The OCC will continue to monitor and advocate for SB 98 until these critical protections for Ohio’s business community come to fruition.
Energy News
Rule 1501:155:1-01 (Oil and Gas Lease) mentioned last week passed through the JCARR process. The rule and attached lease will become final later this month. This will allow the administration to begin the process of allowing mineral exploration on state lands. In turn, this will unleash more economic opportunities for Ohioans and provide additional energy security for Ohio and the United States.
Legal News
As the COVID-19 emergencies begin to be lifted there may be a host of allowances made by both the federal and state governments during the pandemic. One specific item employers will need to take note of is the end of flexibility pertaining to I-9 requirements. The allowance of virtual examination of documentation ends on July 31, 2023. Employers will have until August 30, 2023, to perform all required physical examinations of identity and employment eligibility documents for individuals hired on or after March 20, 2020. Employers should consult with their HR professionals and if needed, an immigration attorney if questions arise on this issue.
May is Mental Health Awareness Month
The Ohio Suicide Prevention Foundation launched its employer mental health toolkit. It is designed to help employers and management address when an employee is experiencing a mental health crisis in the workplace.

"We know that when an employee experiences a mental health crisis that it can cause a ripple effect throughout the workplace," Tony Coder, OSPF executive director, said in a statement. "It's vitally important that management knows what to do in these situations to reduce the impact and look after the wellbeing of their entire team."

Additionally, throughout the entire month of May, the Ohio Department of Insurance is promoting its Mental Health Insurance Assistance Office (MHIA) that can provide answers to questions and concerns.

"Whatever the issue, even if it is about Medicaid, Medicare, or a self-insured employer plan, which are mostly outside our regulatory jurisdiction, MHIA staff work to get answers for consumers," the department said in a statement.