A little-known provision in HB1024 permanently limits how many new rules Ohio agencies can impose—and it takes effect July 1, 2025.
Most health services owners in Ohio have never heard of the regulatory offset requirement buried in HB1024. That's a problem, because it fundamentally changes how state agencies can regulate their industry starting July 1, 2025.
Here's what happened: Ohio set a goal for state agencies to reduce their regulatory burden by 30%. Many agencies have already met that target. HB1024 now locks in a new rule: any agency that has hit the 30% reduction threshold must follow a strict one-in/one-out requirement going forward.
Under the new provision in Section 121.951(A)(3) of HB1024, agencies can no longer simply add new regulatory restrictions. Instead, every time an agency wants to impose a new rule or restriction on health services providers, it must simultaneously remove at least one existing restriction of equal or greater burden. This isn't optional—it's a binding compliance floor.
The practical effect: new regulations become harder to implement. An agency cannot just identify a problem and write a rule. It must first identify what existing rule to eliminate, then justify that the trade-off makes sense. This creates friction in the regulatory process and gives the Joint Committee on Agency Rule Review explicit authority to scrutinize these decisions.
For health services—including clinics, home health agencies, assisted living facilities, and related providers—this means the volume and pace of new rules will slow. That can be good news if you're concerned about compliance costs. It can also mean delayed rules addressing genuine public health gaps, depending on your perspective.
This provision applies to any state agency that has already achieved the 30% regulatory reduction target. The effective date is July 1, 2025. If your agency regulator hasn't hit 30% yet, the one-in/one-out requirement doesn't apply—yet. But for those that have, the rule is permanent and binding.
There is a narrow exception: Section 121.953(C) allows an agency to show cause for why a new restriction should be imposed without an offsetting removal. But this requires formal justification and review—it's not automatic.
Health services owners should understand that their regulatory environment just became more predictable in one direction: fewer new rules, faster. If you're tracking proposed regulations that affect your operations, the one-in/one-out requirement may slow their adoption or force agencies to prioritize which new rules matter most.
If you're part of a trade association or work with regulatory counsel, this is worth discussing. Understanding how your state regulator approaches the offset requirement—which rules they might remove, how they justify new ones—can help you anticipate changes to your compliance obligations.
The change takes effect July 1, 2025. It's not dramatic, but it is real, and it's worth knowing.
Source: Ohio HB1024, Section 121.951(A)(3), Page 31; effective July 1, 2025.