OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 444 Bill Analysis
135th General Assembly
Click here for H.B. 444’s Fiscal Note
Version: As Introduced
Primary Sponsor: Reps. Miranda and McNally
Effective date:
Reid J. Fleeson, Attorney
SUMMARY
 Prohibits “public utilities” (gas, natural gas, and electric light companies that are public
utilities under Ohio law and their affiliates or subsidiaries) from recovering from their
customers the costs of “political expenditures” which include, for example, lobbying
expenditures, contributions to a political candidate, party, or committee, and
contributions to certain tax-exempt organizations.
 Authorizes the Public Utilities Commission (PUCO) to order a public utility to refund,
with interest, customers charges that have been imposed in violation of the bill’s
prohibition against recovering political expenditure costs from customers.
 Subjects a public utility that violates this prohibition to a PUCO-ordered fine equal to
20 times the amount that the public utility charged to customers in violation of the bill.
 Creates the Political Activity Fine Fund in the state treasury consisting of the fines paid
for violation of the bill and specifies that the fund must be used to assist customers in
paying past-due public utility bills.
 Requires the Department of Development to administer the Political Activity Fine Fund
and distribute the money in the fund through the Percentage of Income Payment Plan
(PIPP) Program, which is the Department administered program to assist customers with
paying utility bills.
 Requires public utilities, not later than January 1, to electronically submit to PUCO
annual expenditure reports of political expenditures made during the preceding
12-month period and requires PUCO to post the reports on its website.
 Requires PUCO to compile into a single report the public utility political expenditure
reports, submit the report to the General Assembly not later than February 1 each year,
and post the report on its website.
March 12, 2024
Office of Research and Drafting LSC Legislative Budget Office
 Requires PUCO to adopt (1) rules to implement the bill’s provisions, (2) in conjunction
with the Department, rules to establish a process within the PIPP Program for
distributing the money collected from fines, and (3) rules specifying that the money
must be used to assist customers with the payment of past-due public utility bills.
 Exempts rules adopted under the bill from the regulatory restriction limitation in
existing law.
DETAILED ANALYSIS
Prohibition against cost recovery for political expenditures
The bill prohibits a “public utility” from recovering the cost of any “political
expenditure” from its customers through any rate, rate mechanism, rental, toll, fee, rider, or
other charge implemented under the Ohio laws regarding utility ratemaking, competitive retail
electric service, or alternative rate plans for natural gas companies.1
“Public utility”
The bill’s prohibition applies to a “public utility,” which is one of the following that is
regulated by the Public Utilities Commission (PUCO), including any affiliate or subsidiary of the
company:
 An electric light company, when engaged in the business of supplying electricity for
light, heat, or power purposes to consumers within Ohio, including supplying electric
transmission service for electricity delivered to Ohio;
 A gas company, when engaged in the business of supplying artificial gas for lighting,
power, or heating purposes to consumers within Ohio or when engaged in the business
of supplying artificial gas to gas companies or to natural gas companies within Ohio;
 A natural gas company, when engaged in the business of supplying natural gas for
lighting, power, or heating purposes to consumers within Ohio.2
For the purposes of the bill, “public utility” does not include, for example, a PUCO-regulated
utility that is a water-works company, sewage disposal system company, or telephone
company.
“Political expenditure”
Under the bill, a “political expenditure,” is any of the following:
 A contribution or gift to a political candidate, party, or committee, to a committee of the
General Assembly, or to an organization working to promote the adoption or defeat of,
or influence the outcome of an election for, a ballot issue or question;
1 R.C. 4933.52.
2 R.C. 4933.51(A); R.C. 4905.02 and 4905.03, not in the bill.
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 A contribution to a tax-exempt trade association, chamber of commerce, organization
described under subsection 501(c)(6) of the U.S. Internal Revenue Code;
 A contribution to a nonprofit organization, which is defined as a tax-exempt
organization described under subsection 501(c)(3) or 501(c)(4) of the U.S. Internal
Revenue Code;
 Dues paid to any industry association of which the public utility is a member;
 An expenditure incurred for the purpose of lobbying any branch of government;
 Expenses incurred for the purpose of influencing public opinion about public policy
issues or about the reputation of the public utility;
 Expenses incurred to fund any other political, charitable, or lobbying activity.3
PUCO orders regarding public utility violations
Public utilities that violate the bill’s prohibition against recovering political expenditure
costs are subject to PUCO orders to pay refunds to customers and to a pay a fine.
Order requiring refund of charges
If a public utility charges its customers in violation of the bill, the charges are subject to
refund, plus interest. If PUCO determines that a violation occurred, PUCO must order the
payment of refunds in a manner designed to allocate the refunds to customer classes in the
same proportion as the charges were originally collected.4
Ordered imposing fine
If PUCO, after providing notice and a hearing, determines that a public utility has
charged its customers in violation of the bill, PUCO must issue an order imposing a fine on the
public utility. The bill requires the fine to equal 20 times the amount charged to the public
utility’s customers in violation of the bill’s prohibition.5
Political Activity Fine Fund
The bill creates the Political Activity Fine Fund in the state treasury. The fund consists of
the fines paid by public utilities as described above. Money in the fund must be used to assist
customers in paying public utility bills that are past due. The assistance to customers must be
done according to a process established by rules that PUCO must adopt.6
The Department of Development must administer the fund and distribute the money in
the fund to customers through the Percentage of Income Payment Plan (PIPP) Program that the
3 R.C. 4933.51(B) and (C); 26 United States Code 501, not in the bill.
4 R.C. 4933.53.
5 R.C. 4933.55.
6 R.C. 4933.57.
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Department administers. The distribution of the money must be done in accordance with rules
that the bill requires PUCO to adopt.7
In Ohio, low-income customers, for their gas or electric utility service, may participate in
the PIPP Program administered by the Department. Upon enrollment and proof of income
eligibility, PIPP Program customers pay lower monthly payments that, if paid on time and in full
each month, reduce the customers’ outstanding balances.8
Public utility expenditure reports
As required by the bill, all public utilities must submit an annual expenditure report to
PUCO not later than January 1. The expenditure report must list all political expenditures that
the public utility made during the preceding 12-month period. The report must include, for
each expenditure, the payee, amount, and purpose of the expenditure. It must be submitted to
PUCO electronically, and upon its receipt, PUCO must post the report on its website.9
PUCO must compile the public utility expenditure reports into a single report and, not
later than February 1 each year, submit the report to the General Assembly. PUCO must post
the report on the PUCO website. And, the report must be submitted in accordance with the law
regarding state agency report availability. In addition to requiring that the report be displayed
on the agency’s website, that law requires submitting the report to the General Assembly by
electronic means.10
Rules
PUCO must adopt rules to implement the bill’s provisions. PUCO also must adopt rules,
in conjunction with the Department of Development, to establish a process within the PIPP
Program for distributing the money collected from the PUCO-ordered fines that may be
imposed under the bill. The bill requires the rules to specify that the money collected must be
used to assist customers with the payment of past-due public utility bills.11
Rules adopted under the bill are exempt from the regulatory restriction limitation in
existing law. Current law, unchanged by the bill, prohibits state agencies, including PUCO, from
adopting a new regulatory restriction unless the agency simultaneously removes two or more
existing regulatory restrictions until June 30, 2025. State agencies are also required to achieve a
30% total regulatory restriction reduction by June 30, 2025. Regulatory restrictions are state
agency rules that include words such as “shall,” “require,” and “prohibit.”12
7 R.C. 4933.58; R.C. 4928.53, not in the bill.
8R.C. 4928.51 to 4928.58, not in the bill; Percentage of Income Payment Plan (PIPP), available at the
Department of Development’s website: development.ohio.gov.
9 R.C. 4933.59(A).
10 R.C. 4933.59(B); R.C. 101.68, not in the bill.
11 R.C. 4933.60(A).
12 R.C. 4933.60(B); R.C. 121.95 to 121.952, not in the bill.
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As Introduced
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HISTORY
Action Date
Introduced 03-07-24
ANHB0444IN-135/ks
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As Introduced