OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 363 Bill Analysis
135th General Assembly
Click here for H.B. 363’s Fiscal Note
Version: As Introduced
Primary Sponsor: Rep. Troy
Effective date:
Rocky Hernandez, Attorney
SUMMARY
Public Utilities Commission changes
Makes the following changes to the composition of the Public Utilities Commission
(PUCO):
Requires one of the five commissioners to be a bona fide consumer representative
selected by the Governor from a list of three nominees submitted by the Office of
the Consumers’ Counsel (OCC);
Prohibits commissioners appointed after the bill’s effective date from previously
being or continuing as a representative or employee of, or having any relation to or
business transaction with, any entity, entity’s parent, affiliate, or subsidiary that is
subject to PUCO regulation;
Expands the list of one or more fields a PUCO commissioner must have three years
of experience in to include social sciences, social services, consumer representation,
or education and research in utility regulation.
Requires commissioner applicants to disclose on the application all services rendered to
any public utility regardless of whether those services were remunerated.
Designates commissioner applications as public records for purposes of Ohio’s Public
Records Law.
PUCO Nominating Council changes
Makes the following changes to the composition of the PUCO Nominating Council:
Eliminates the State Board of Registration for Professional Engineers and Surveyors
Chairperson from membership;
Adds three members to the Council:
January 16, 2024
Office of Research and Drafting LSC Legislative Budget Office
A representative of minority communities appointed by the Governor, to serve
at the Governor’s pleasure (to be appointed on the first vacancy of the State
Board of Registration for Professional Engineers and Surveyors Chairperson after
the bill’s effective date);
Two members of the public, one appointed by the minority leader of the House
of Representatives and the other by the minority leader of the Senate, to serve
at the pleasure of the respective leader who appointed them (to be appointed
on the bill’s effective date).
Adds requirements of active membership to certain bona fide organizations and
associations for certain members, applicable to their successor members after the
bill’s effective date;
Prohibits members (except the member representing Ohio public utilities) appointed
after the bill’s effective date from previously being, or continuing as, a
representative or employee of, or have any relation to, any entity, entity’s parent,
affiliate, or subsidiary that is subject to PUCO regulation;
Prohibits any Council member appointed after the bill’s effective date from engaging
in business with, holding stocks or bonds in, or having a pecuniary interest in any
entity or entity’s parent, affiliate, or subsidiary subject to PUCO regulation.
Requires commissioner interviews to be conducted in public meetings in accordance
with Ohio’s Sunshine Law and no interview can be conducted during an executive
session.
Limits the members terms to no more than two years.
Limits the time members can hold the office of chairperson and secretary to no more
than two one-year terms in those positions.
Repeals the requirement that, to the extent possible, the Council must attempt to
ensure that the primary experience of two of the commissioners is in energy, and two
have their primary experience in transportation or communications technology.
Requires the Council to invite (instead of permitting it to accept) comments from any
person when reviewing and evaluating possible PUCO appointees.
Online information about PUCO nomination process
Requires PUCO to make available certain information regarding the operations of the
PUCO Nominating Council and opportunities for the public to comment electronically or
via other means on various topics related to the Nominating Council and the PUCO
nomination process.
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As Introduced
Office of Research and Drafting LSC Legislative Budget Office
DETAILED ANALYSIS
Public Utilities Commission nomination process
The bill makes changes to the Public Utilities Commission (PUCO), PUCO Nominating
Council, and the PUCO commissioner nominating process.
PUCO changes
Office of Consumers’ Counsel nomination
The bill requires one of the five commissioners to be a bona fide consumer
representative to be chosen by the Governor from a list of three nominations made by the
Office of Consumers’ Counsel (OCC). The bill further specifies that, after the bill’s effective date,
the next vacancy on PUCO must be filled with an OCC-nominated commissioner. Under current
law, all five of the commissioners are selected by the Governor from a list submitted by the
PUCO Nominating Council.1
Prior employment with a public utility prohibited
The bill prohibits any commissioner appointed after the bill’s effective date from being a
current representative or employee of, or having previously been such a representative or
employee of, or have any relation to or business transaction with, any entity or entity’s parent,
affiliate, or subsidiary that is subject to PUCO regulation.2
Prior experience
The bill expands the list of fields a commissioner must have experience in. Under
current law, a commissioner must have at least three years of experience in one or more of the
following fields: economics, law, finance, accounting, engineering, physical or natural sciences,
natural resources, or environmental studies. The bill adds social sciences, social services,
consumer representation, and education and research in utility regulation to this list.3
Commissioner applications
The bill requires commissioner applicants to disclose on the application all services
rendered to any public utility, regardless of whether those services were remunerated. The bill
further designates commissioner applications as public records in accordance with Ohio’s Public
Record Law.4
1 R.C. 4901.02(A)(2)(d) and 4901.021.
2 R.C. 4901.02(A)(2)(f).
3 R.C. 4901.02(D).
4 R.C. 4901.02(F); R.C. 149.43, not in the bill.
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As Introduced
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PUCO Nominating Council changes
Council composition
Member eliminated
The bill eliminates from membership on the PUCO Nominating Council the chairperson
of the State Board of Registration for Professional Engineers and Surveyors.5
Members added
The bill adds the following members to the Council:
A representative of minority communities appointed by the Governor, to serve at the
Governor’s pleasure, who will be appointed upon the first vacancy from the Council by
the chairperson of the State Board of Registration for Professional Engineers and
Surveyors that occurs after the bill’s effective date;6
Two members of the public, one appointed by the minority leader of the House of
Representatives and another appointed by the minority leader in the Senate, to serve at
the pleasure of the respective minority leader that appointed them, and are to be
appointed upon the bill’s effective date.7
Current member qualifications altered
The bill adds new requirements to some of the current positions on the Council, which
requirements will only apply to members appointed to those positions upon the first vacancies
by the members’ respective predecessors, after the bill’s effective date. The members and the
new requirements are described as follows:
The member of the public appointed by the Speaker of the House and the member
appointed by the President of the Senate must be active members of a bona fide
consumer protection organization;
The member who is a representative of the business community must be a member of a
bona fide statewide trade association;
The member who is a senior citizen 65 years or older must be an officer of a bona fide
statewide association for advocacy of older persons.8
Employment and business with public utilities prohibited
The bill prohibits any member appointed after the bill’s effective date from currently
being or having previously been a representative or employee of, or have any relation to, any
5 R.C. 4901.021(A)(3).
6 R.C. 4901.021(A)(6) and (E)(1).
7 R.C. 4901.021(A)(9) and (10), and (E)(3).
8 R.C. 4901.021(A)(7), (8), (12), (14), and (E)(2).
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As Introduced
Office of Research and Drafting LSC Legislative Budget Office
entity or entity’s parent, affiliate, or subsidiary, that is subject to PUCO regulation. The bill
makes an exception to this prohibition for the member that is a representative of the regulated
Ohio public utilities appointed by the Governor.
The bill further prohibits any member appointed after the bill’s effective date from
engaging in business with, hold stocks or bonds in, or have pecuniary interest in any entity or
entity’s parent, affiliate, or subsidiary, that is subject to PUCO regulation.9
Commissioner applicant interviews
The bill requires interviews of commissioner applicants to be conducted in public
meetings subject to Ohio’s Sunshine Law. Additionally, the bill prohibits interviews from being
conducted during an executive session under the Sunshine Law.10
Term limits
The bill limits members of the Council to serve for no more than two years, but exempts
the following members from this limit:
The Chairperson of OCC’s Governing Board;
The President of the Accountancy Board;
The President of the Ohio State Bar Association;
The President of the Ohio Municipal League;
The Director of Development or the Director’s department-employed designee.
Current law does not contain any time limit for how long one can be a member of the
Council.
The bill limits the time members of the Council can hold the office of chairperson and
secretary to not more than two one-year terms in those positions. Under current law and
regulations, the Council must select from among its members a chairperson and secretary at its
first meeting each calendar year, which they serve as until the first meeting of the Council held
the following calendar year, unless removed from office or replaced as a member of the
Council.11
Review of commissioner applicants
The bill makes changes to the Council’s commissioner review process. First, the bill
repeals the requirement that the Council choose commissioner candidates who have
backgrounds primarily in energy and in transportation or communications technology. Under
current law, the Council, to the extent possible, must continually attempt to ensure that the
9 R.C. 4901.021(A)(11) and (B).
10 R.C. 4901.021(C); R.C. 121.22, not in the bill.
11 R.C. 4901.021(D) and (F); Ohio Administrative Code 4901:7-1-04(B), not in the bill.
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As Introduced
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primary focus of the background of two commissioners is in energy, and that two
commissioners have a background in transportation or communications technology.
Additionally, the bill requires the Council, in reviewing and evaluating possible
appointees to PUCO, to invite comments from any person. Under current law, the Council may
accept comments, but it is not required to do so.12
Online information about PUCO nomination process
The bill requires PUCO to make the following information publically available on its
website:
The operations of the PUCO Nominating Council including: biographical information for
each Council member and for each commissioner applicant, meeting notices and
minutes, and video recordings of Council meetings and applicant interviews;
Opportunities for the public to comment, electronically or some other way, on
commissioner applicants, the Nominating Council process, and any other subjects
relating to the Nominating Council and the commissioner appointment process.13
HISTORY
Action Date
Introduced 12-13-23
ANHB0363IN-135/ar
12 R.C. 4901.021(H)(2) and (I).
13 R.C. 4901.022.
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As Introduced
Statutes affected: As Introduced: 4901.02, 4901.021