The bill proposes the enactment of section 2307.36 of the Revised Code, which codifies the common law cause of action for "piercing the corporate veil." This section defines key terms such as "affiliate," "covered entity," "covered person," "damages or other penalties," and "governmental entity." It establishes that a covered person is not liable to a governmental entity for damages or penalties unless specific conditions are met, including the express provision of liability in the Revised Code or the governmental entity's ability to demonstrate control and wrongdoing by the covered person.

Additionally, the bill outlines that a court cannot find a covered person liable based solely on certain actions, such as providing services to the covered entity or acting within their authority. The burden of proof for claims to pierce the corporate veil lies with the governmental entity making the claim. The section applies to all claims initiated on or after its effective date, as well as pending claims that have not yet reached a final appealable order. Importantly, the bill clarifies that it does not create new rights or causes of action beyond what existed under common law prior to its enactment.