The Ohio House of Representatives has concurred on changes to Substitute House Bill 229, legislation that would give Ohio families more freedom and flexibility over their financial decisions.

Under the bill, Ohio would join 15 other states that allow the creation of family trust companies (FTC), entities that may provide a single family with fiduciary services like accounting, financial management and investment. Such a measure would make Ohio a more competitive option, since families that set up an FTC are not required to live in the state where it is based and currently leads to many families looking outside the state for these services.

“HB 229 modernizes Ohio’s trust statutes to allow the formation of family trust companies,” said Hambley, who joint-sponsored the bill with Rep. Heather Bishoff (R-Blacklick). “Representative Bishoff and I have worked hard to ensure this bill’s passage to increase economic activity in Ohio.. Passing HB 229 not only stems the outflow of business from Ohio, but will also lead to business entering the state from states around us.”

HB 229 establishes two kinds of family trusts:
1. Unlicensed Family Trust Companies—very limited in scope, available only to descendants of a single ancestor and related trusts, charities and key employees of the FTC
2. Licensed Family Trust Companies—for families that prefer a FTC subject to the inspection of the Ohio Division of Financial Institutions; requires at least $200,000 in capital and must maintain a fidelity bond of at least $1 million

While 15 states already allow the creation of family trust companies, Ohio would be the first among the states bordering it to adopt this legislation. Among the intentions of House Bill 229 is to attract families from those bordering states to bring their business and investments into Ohio.

The bill now awaits consideration by Governor John Kasich.

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Representative Hambley Appointed To Co-Chair Of Newly Created Economic Development Committee

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State Representative Steve Hambley (R-Brunswick) this week was appointed by Ohio House Speaker Ryan Smith (R-Bidwell) to serve as Co-Chair of the Regional Economic Development Alliance Study Committee.