From the Statehouse 2006 No. 05
by Jennifer Garrison
Feb. 12, 2006
FROM THE STATEHOUSE – 2006 ARTICLE 5
This week the Ohio House of Representatives voted to update and streamline Ohio’s Corporation, securities, and business entity laws through Substitute House Bill 301. Substitute House Bill 301 was a result of a 3 year project of the Ohio State Bar Association corporate law committee. A large percentage of United States corporations choose to incorporate in the State of Delaware. The goal of this legislation is to make Ohio a more attractive place to do business, so more corporations choose Ohio in which to incorporate. This bill passed. I voted “yes”.
Some of the changes to existing law found in Substitute House Bill 3 are as follows:
Allows directors to amend regulations in administrative areas.
Provides notice to regulation and articles changes made by directors may be given by public corporations through inclusion of the information in their filings with the SEC.
Allows committees of the Board to appoint subcommittees.
Gives certainty of certificates of good standing by allowing them to be relied upon for 7 days after issuance.
Allows more flexibility in paying shares through valuable consideration other than cash or tangible property.
Allows the Board of Directors to form holding companies by corporations, where the shareholder base of the original company would be the same as the base of the spun-off or holding company.
The bill also allows a change from a Limited Liability Company to a Corporation or vice versa by adopting a declaration of conversion.
The State’s regulations of broker dealers were also amended in this bill to mirror federal regulations.
The House also considered Senate Bill 33 which prohibits any person or entity from selling to a purchaser a gift card containing an expiration date that is less than 2 years after the date it was issued. I voted “yes”. The bill passed.
The Ohio House also considered and voted on House Bill 368. House Bill 368 deals with a problem resulting from an 80 year old law recently brought to the attention of the General Assembly. In Ohio concert venues are considered dance halls and minors are prohibited from being in a public dance hall unless accompanied by their parent or guardian. Many times a parent brings their child and one of their friends to a concert and under current law this is prohibited. House Bill 368 removed this prohibition. The bill passed. I voted “yes”.
I previously voted “yes” on House Bill 102 which establishes a woman that gives birth to a child born after embryo donation as the biological mother opposed to the embryo donor. The bill also established the husband of the woman who gave birth as the legal father. The Senate added an amendment to House Bill 102. The amendment allows a husband to rebut the father-child relationship if he can prove he did not consent to the embryo donation. The House accepted the Senate amendment unanimously. The bill went to the Governor for his signature.
Last week I also voted on Substitute House Bill 46, which allows Boards of County Commissioners and political subdivisions to offer their employees Health Savings Accounts. I voted “yes. The bill passed.
Finally, last week Substitute House Bill 137 updated the procedures by which a Juvenile Court may seal and expunge records. I voted “yes”. The bill passed.
You can reach Jennifer Garrison at her Columbus office at 614-644-8728 or in the district at 740-373-2414 or by e-mail at jennifer@jennifergarrison.com. Her website is Riffe Center | 77 South High Street | Columbus Ohio 43215-6111 | (800) 282-0253 | District93@ohr.state.oh.us
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