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 explicitly stated in the Revised Code or if the governmental entity can demonstrate specific conditions that justify piercing the corporate veil, including the exertion of control over the covered entity that leads to fraud or injury.

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 sharing management roles. The burden of proof for claims against a covered person lies with the governmental entity making the claim. The section applies to all claims initiated on or after its effective date, as well as those pending at that time without 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.