Wolson, B. Bernard

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A REVIEW OF OHIO LEGISLATION. FROMJUNE, 1934, TO APRIL, 1935THIRD SPECIAL SESSION*This review of Ohio legislation will be limited to the legis-lation of the Third Special Session and the more importantenactments during the present regular session. The act pertain-ing to building and loan associations is perhaps the most impor-tant of the special session. The necessity of the present law isreadily gleaned from the emergency clause of the act. 115O.L.Pt. II 393- It reads, "No adequate law in the State ofOhio permits reorganization of building and loan associationsso as to have their capital structure in such shape as to inspirethe confidence of the people, and no method under the existinglaw to permit the rehabilitation of building and loan associationswhose capital is impaired. The law is at present inadequate inthe requirements of reserve necessary to be carried by buildingand loan associations. . . .The enactment of this law accom-plishes the above results. ... " The law makes more strin-gent the regulation of building and loan associations by requir-ing more complete reports of their condition and by requiringreports within shorter intervals of time, and by restricting in-vestment and loaning possibilities.Other acts relating to building and loan associations enactedduring the special session are: I. An act dealing with the dis-solution, rehabilitation and reorganization of building and loanassociations. This act directs the supervision of defunct buildingand loan associations facilitating the liquidation of their assetsand aiding in reorganization of the defunct banks. 2. An actconverting domestic building and loan associations into federalsavings and loan associations by the purchase of shares of stockin the latter association by the former, this enactment serving* For a review of Ohio Legislation previous to the period which thispaper covers, see the Ohio State LAw JOURNAL, Vol. i, No. I, p. 24.208 LAW JOURNAL-MAY, 1935to avail citizens in the State of Ohio of federal loans for thepurchase and construction of homes. I15 O.L.Pt. II 394- 3. Anact to permit a set-off of certificates of deposit irrespective ofthe time of acquisition, against debts to the building and loanassociation owed by the borrower, to the extent of 50% of thedebt. The intent of this act is to maintain the selling price of thecertificates as near their real value as possible. 115 O.L. Pt.II 398.The problem of how to pay the teachers' salaries, whichconfronted the legislature in the 3rd special session, was at-tacked by the enactment authorizing boards of education to bor-row money and to issue notes. It was sought by this act to makefunds available for paying teachers and other employees of thepublic schools so that the closing of the schools would be fore-stalled.THE REGULAR SESSIONThe regular session of the Ohio legislature convening Janu-ary 7, 1935, issued much legislation to the date of this writingdealing principally with taxation and relief to divers classes.Much of the legislation dealt with amendments to statutesalready enacted. The principal acts having to do with taxationare the following:An act authorizing additional tax levies outside of our pres-ent constitutional Io-mill limitation, such additional tax beingleviable for relief and welfare requirements. Sen. B. No. io.An act to exempt interurban railroad companies within theState of Ohio as defined in G. C. Section 614-2 & 501 from alltaxation except that on real estate and special assessments fortwo years from Jan. I, 1935. This act was effected to aid thedecrepit companies and does not apply to any company in whichany officer or employee is making a salary of $5,ooo or moreper year, or to any interurban which pays dividends during thisperiod. Amended Sen. B. No. 23.Several acts have been passed or amendments made to pres-ent statutes in an attempt to make the administration of the salestax more effective, these statutes being directed principally tosituations where residents of Ohio purchase motor vehicles inother States in order to avoid the sales tax. Thus the legislatureamended G. C. 6294 dealing with the registration of motorvehicles so that a purchaser is required to pay the 3 % tax as aprerequisite to the issuing of a license. H. B. No. 255. Theother acts dealing with this same problem will be found inH. B. No. 252, H. B. No. 253, and H. B. No. 254.Some legislation has been directed toward debtor relief asthe act extending the foreclosure moratorium to 1937, the latestamendment being H. B. No. 30. Amended Senate Bill No. 20was enacted reading that "no assignment of or order for wagesor salary shall be valid if made after this act goes into effect andbefore April I, 1937." The object of this act is to eliminate asfar as possible the necessity of the wage-earner's having todemand public relief, by permitting him to retain all his wagesfree from assignments.In order to increase employment an act was passed to appro-priate large sums to the department of highways and publicworks. Amended Sen. B. No. 39. And to aid disabled soldiersand sailors doing business in more than one county an act waspassed requiring their procurement of a license only in onecounty instead of two or more, in order to operate. H. B. I 14.For the purpose of encouraging agricultural fairs and givingaid to county agricultural societies, an act creating appropria-tions therefore was passed. H. B. No. I IO.The legislature recognizing the financial difficulties ofnumerous Ohio cities passed a bill authorizing taxing authoritiesof municipal corporations to fund deficiencies in operating rev-enues for the year 1935, and permitting them to hold specialelection on the matter of their issuing bonds and levying taxesfor such purpose. Sen. B. No. i5.The act authorizing direct housing relief which was passedMarch 22, 1933, was extended to March I, 1937.209LEGISLATION210 LAW JOURNAL-MAY, 1935We have had some important legislation in the field ofbanking. The first act is to facilitate the resumption of businessby banks for which conservators have been appointed. The actpermits a court of common pleas to hold a hearing on planssubmitted to it by deposit stockholders and creditors. H. B.No. 24. The second act authorizes banks organized under thelaws of Ohio to obtain the benefits of federal deposit insurance.This act gives every bank, in addition to the rights, powers andprivileges possessed by it under the Ohio laws, the power tobecome a member of the temporary federal deposit insurancefund and to purchase stock of the federal deposit insurance cor-poration.A distinct change has been made in appellate procedures bya bill, H. B. No. 42, passed April 2o to become effective Janu-ary 1, 1936. The bill abolishes error proceedings as it wasand requires the instituting of all appellate reviews by noticeof appeal.*In view of the increased problems relative to the adminis-tration of the sales tax and the liquidation of banks as well asthe financial problems of the state, it is anticipated that muchof the legislation that emanates during the remainder of thesession will be directed to banking and tax bills.B. BERNARD WOLSON* See page 186 for a more detailed analysis of this bill by Professor S. A.Harris.

A Review of Ohio Legislation from June, 1934, to April, 1935

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A Review of Ohio Legislation from June, 1934, to April, 1935

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