After passing out the conference committee report and sending HB 49 to the Governor last week, the House returned this week with votes to override several provisions vetoed in HB 49 by Governor Kasich. The House voted to override a total of 11 vetoes, including nine that deal with Medicaid. The Senate anticipates its return over the summer months to also take up potential veto overrides. Its calendar has not yet been set. While the House wrapped up the Budget bill (HB 49), it also acted on several other items of interest further detailed below.

HB 213 REAL ESTATE APPRAISERS (Dever, J.) To change the definition of “appraisal” for purposes of the Real Estate Appraiser Licensing Law, to make changes to certain procedures and the exceptions to licensure under that law, to regulate appraisal management companies, and to declare an emergency.

During sponsor testimony, Rep. Jonathan Dever (R-Cincinnati) explained the bill would bring Ohio into compliance with federal law regarding appraisal management companies (AMC), referencing minimum standards under Dodd Frank.   According to both the sponsor and stakeholders pushing the bill, language is required for Ohio lenders to continue to be able to use AMCs to facilitate Federally Related Transactions in our state. HB 213 passed the House 82-8 and has been referred to the Senate Government Accountability and Oversight committee.

HB 199 MORTGAGE LENDING (Blessing, L.) To create the Ohio Residential Mortgage Lending Act for the purpose of regulating all non-depository lending secured by residential real estate and to limit the application of the current Mortgage Loan Law to unsecured loans and loans secured by other than residential real estate.

As explained by the sponsor and proponent testimony given by the Ohio Mortgage Bankers Association, the bill responds to confusion arising from examiners’ interpretations of the current law. The proposal specifies that all mortgage loans – both first and second liens – secured by residential real estate would fall under a single section (ORC 1322) of the law, rather than a different section (ORC 1321) that would cover loans secured by non-real estate collateral and unsecured loans.   The bill would have mortgage bankers and mortgage brokers secure licenses under ORC 1322, eliminating a mortgage banker exemption and giving the Division of Financial Institutions authority over all mortgage bankers and mortgage brokers. HB 199 passed the House 67-17 and has been referred to the Senate Insurance and Financial Institutions Committee.

HB 69 TIF DISTRICTS (Cupp, B.) To require reimbursement of certain township fire and emergency medical service levy revenue forgone because of the creation of a municipal tax increment financing district.

HB 69 amends existing Tax Incremental Financing Law to add township fire, emergency medical and ambulance levies to the list of special- purpose levies. HB 69 gives townships the choice of collecting the reimbursement, waiving it, or negotiating a partial reimbursement of the money the levy would have raised but for the TIF.   The bill only applies prospectively and to TIFs created by municipal corporations where townships provide the fire, emergency, or rescue services. HB 69 passed out of the House, and has been referred to the Senate Ways and Means Committee. HB 69 will likely be heard when the legislature returns in the fall.

Please feel free to contact OHBA with any questions.