HB 81: Make appropriations for Bureau of Workers' Comp for FY 2026-27
The bill creates the Bureau of Workers' Compensation, which will be administered by an administrator appointed by the governor. The administrator must have significant management experience and at least five years of experience in the field of workers' compensation insurance. The board of directors, consisting of eleven members, will be appointed by the governor and will include representatives from employees, employee organizations, employers, investment and securities experts, and the public. The bill makes appropriations for the Bureau of Workers' Compensation for the biennium beginning July 1, 2025, and ending June 30, 2027. The appropriations include funding for claims, risk and medical management, administrative services, attorney general payments, the coal workers' fund, the marine industry fund, the disabled workers relief fund, safety and hygiene programs, safety grants, and a…
| Jun. 27, 2025 | Effective Certain provisions effective September 26, 2025 |
| Jun. 27, 2025 | Signed By The Governor |
| Jun. 24, 2025 | Sent To The Governor |
| Jun. 18, 2025 | Concurred in Senate amendments |
| Jun. 18, 2025 | Passed |
ANACT
To amend sections $4121.12, 4121.121, 4121.13, 4123.44, 4123.52, 4123.54, 4123.57, 4123.66, 4125.07, 4133.10, 4167.01, 4167.10$, and 5145.163 and to repeal sections $4167.25, 4167.27$, and 4167.28 of the Revised Code to make appropriations for the Bureau of Workers' Compensation for the biennium beginning July 1, 2025, and ending June 30, 2027, to provide authorization and conditions for the operation of the Bureau's programs, and to make changes to the Workers' Compensation Law.
Section 1
That sections $4121.12, 4121.121, 4121.13, 4123.44, 4123.52, 4123.54, 4123.57, 4123.66, 4125.07, 4133.10, 4167.01, 4167.10$, and 5145.163 of the Revised Code be amended to read as follows:
Sec. 4121.12
(A) There is hereby created the bureau of workers' compensation board of directors consisting of eleven members to be appointed by the governor with the advice and consent of the senate. One member shall be an individual who, on account of the individual's previous vocation, employment, or affiliations, can be classed as a representative of employees; two members shall be individuals who, on account of their previous vocation, employment, or affiliations, can be classed as representatives of employee organizations and at least one of these two individuals shall be a member of the executive committee of the largest statewide labor federation; three members shall be individuals who, on account of their previous vocation, employment, or affiliations, can be classed as representatives of employers, one of whom represents self-insuring employers, one of whom is a state fund employer who employs one hundred or more employees, and one of whom is a state fund employer who employs less than one hundred employees; two members shall be individuals who, on account of their vocation, employment, or affiliations, can be classed as investment and securities experts who have direct experience in the management, analysis, supervision, or investment of assets and are residents of this state; one member who shall be a certified public accountant; one member who shall be an actuary who is a member in good standing with the American academy of actuaries or who is an associate or fellow with the casualty actuarial society; and one member shall represent the public and also be an individual who, on account of the individual's previous vocation, employment, or affiliations, cannot be classed as either predominantly representative of employees or of employers. The governor shall select the chairperson of the board who shall serve as chairperson at the pleasure of the governor.
Sec. 4121.121
(A) There is hereby created the bureau of workers' compensation, which shall be administered by the administrator of workers' compensation. A person appointed to the position of administrator shall possess significant management experience in effectively managing an organization or organizations of substantial size and complexity. A person appointed to the position of administrator also shall possess a minimum of five years of experience in the field of workers' compensation insurance or in another insurance industry, except as otherwise provided when the conditions specified in division (C) of this section are satisfied. The governor shall appoint the administrator as provided in section 121.03 of the Revised Code, and the administrator shall serve at the pleasure of the governor. The governor shall fix the administrator's salary on the basis of the administrator's experience and the administrator's responsibilities and duties under this chapter and Chapters 4123., 4125., 4127., 4131., 4133., and 4167. of the Revised Code. The governor shall not appoint to the position of administrator any person who has, or whose spouse has, given a contribution to the campaign committee of the governor in an amount greater than one thousand dollars during the two-year period immediately preceding the date of the appointment of the administrator.
Section 2
That existing sections 4121.12, 4121.121, 4121.13, 4123.44, 4123.52, 4123.54, 4123.57, 4123.66, 4125.07, 4133.10, 4167.01, 4167.10, and 5145.163 of the Revised Code are hereby repealed.
Section 3
That sections 4167.25, 4167.27, and 4167.28 of the Revised Code are hereby repealed.
Section 4
All items in this act are hereby appropriated out of any moneys in the state treasury to the credit of the designated fund. For all appropriations made in this act, those in the first column are for fiscal year 2026 and those in the second column are for fiscal year 2027.
| B | Dedicated Purpose Fund Group | 2026 | 2027 |
|---|---|---|---|
| C | 7023 855407 Claims, Risk and Medical Management | $123,887,269 | $128,050,202 |
| D | 7023 855409 Administrative Services | $167,215,851 | $168,637,822 |
| E | 7023 855410 Attorney General Payments | $6,384,084 | $6,607,527 |
| F | 8220 855606 Coal Workers' Fund | $197,040 | $197,040 |
| G | 8230 855608 Marine Industry | $75,000 | $75,000 |
| H | 8250 855605 Disabled Workers Relief Fund | $201,000 | $201,000 |
| I | 8260 855609 Safety and Hygiene Operating | $21,471,244 | $23,281,721 |
| J | 8260 855610 Safety Grants | $41,300,000 | $41,300,000 |
| K | 8260 855611 Health and Safety Initiative | $3,000,000 | $3,000,000 |
| L | 8260 855612 Safety Campaign | $250,000 | $250,000 |
| M | 8260 855619 Safety and Health Workforce Safety Innovation Center | $14,700,000 | $14,700,000 |
| N | Dedicated Purpose Fund Group Total | $378,681,488 | $386,300,312 |
| O | Federal Fund Group | ||
| P | 3490 855601 OSHA Enforcement | $1,751,293 | $1,751,293 |
| Q | 3FW 0 855614 BLS SOII Grant | $199,000 | $199,000 |
| R | Federal Fund Group Total | $1,950,293 | $1,950,293 |
| S | TOTAL ALL BUDGET FUND GROUPS | $380,631,781 | $388,250,605 |
Section 5
WORKERS' COMPENSATION FRAUD UNIT
Of the foregoing appropriation item 855410, Attorney General Payments, $869,610 in fiscal year 2026 and $900,046 in fiscal year 2027 shall be used to fund the expenses of the Workers' Compensation Fraud Unit within the Attorney General's Office. These payments shall be processed at the beginning of each quarter of each fiscal year and deposited into the Workers' Compensation Section Fund (Fund 1950) used by the Attorney General.
Section 6
SAFETY AND HYGIENE
Notwithstanding section 4121.37 of the Revised Code, as directed by the Bureau of Workers' Compensation, the Treasurer of State shall remit up to $80,721,244 cash in fiscal year 2026 and up to $82,531,721 cash in fiscal year 2027 from the State Insurance Fund to the state treasury to the credit of the Safety and Hygiene Fund (Fund 8260) to be used to fund appropriation lines 855609 for the purpose of operating a Safety and Hygiene program, 855610 to be used for Safety Grants, 855611 for the purpose of operating a Health and Wellness Program, 855612 for the purpose of operating a statewide safety awareness and education campaign, and 855619 for the purpose of funding a workforce safety innovation center program.
Section 7
FEDERAL GRANT PROGRAMS
The foregoing appropriation item 855609, Safety and Hygiene Operating, may be used to provide the state match for federal grant funding received by the Division of Safety and Hygiene.
Section 8
VOCATIONAL REHABILITATION
The Bureau of Workers' Compensation and the Opportunities for Ohioans with Disabilities Agency may enter into an interagency agreement for the provision of vocational rehabilitation services and staff to mutually eligible clients. The Bureau may provide funds from the State Insurance Fund to fund vocational rehabilitation services and staff in accordance with the interagency agreement.
Section 9
DEPUTY INSPECTOR GENERAL FOR BWC AND OIC FUNDING
To pay for the FY 2026 costs related to the Deputy Inspector General for the Bureau of Workers' Compensation and Industrial Commission, on July 1, 2025, and January 1, 2026, or as soon as possible thereafter, the Director of Budget and Management shall transfer $212,500 cash from the Workers' Compensation Fund (Fund 7023) to the Deputy Inspector General for the Bureau of Workers' Compensation and Industrial Commission Fund (Fund 5FT0).
To pay for the FY 2027 costs related to the Deputy Inspector General for the Bureau of Workers' Compensation and Industrial Commission, on July 1, 2026, and January 1, 2027, or as soon as possible thereafter, the Director of Budget and Management shall transfer $212,500 cash from the Workers' Compensation Fund (Fund 7023) to the Deputy Inspector General for the Bureau of Workers' Compensation and Industrial Commission Fund (Fund 5FT0).
If additional amounts are needed, the Inspector General may seek Controlling Board approval for additional transfers of cash and to increase the amount appropriated in appropriation item 965604, Deputy Inspector General for the Bureau of Workers' Compensation and Industrial Commission.
Section 10
The amendment of sections 4123.52 and 4123.57 of the Revised Code by this act applies to claims pending on or arising on or after the effective date of this section.
Section 11
This Section and Sections 4, 5, and 6 of this act are exempt from the referendum under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code and therefore take effect immediately when this act becomes law.
Section 12
The General Assembly, applying the principle stated in division (B) of section 1.52 of the Revised Code that amendments are to be harmonized if reasonably capable of simultaneous operation, finds that the following sections, presented in this act as composites of the sections as amended by the acts indicated, are the resulting versions of the sections in effect prior to the effective date of the sections as presented in this act:
Section 4123.52 of the Revised Code as amended by both H.B. 33 of the 135th General Assembly and H.B. 81 of the 133rd General Assembly.
Section 4123.57 of the Revised Code as amended by both H.B. 75 and H.B. 281 of the 134th General Assembly.