The proposed bill, Am. H. B. No. 2025-2026, seeks to enact section 6101.162 of the Revised Code, which establishes specific restrictions on contracts entered into by conservancy districts for the procurement of goods or services. The bill prohibits the inclusion of certain provisions in these contracts, such as indemnification clauses, venue selection clauses that do not comply with state jurisdiction, and terms that limit the district's liability for damages caused by negligence or misconduct. Additionally, it disallows provisions that impose unknown or unnegotiated terms on the district, those inconsistent with public records obligations, and clauses that restrict the district's ability to recover costs for replacement contractors.

If any contract includes a prohibited term as outlined in the bill, that term will be considered void from the outset, while the remainder of the contract remains enforceable. The bill also clarifies that these provisions do not apply to contracts that were already in effect prior to the bill's effective date or to renewals or extensions of such contracts. This legislation aims to protect conservancy districts from potentially harmful contractual obligations.