As Reported by the Senate Civil Justice Committee

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 9

Representative Stautberg 

Cosponsors: Representatives Celebrezze, Hayes, Letson, Pillich, Winburn, Adams, J., Adams, R., Antonio, Barborak, Beck, Blair, Boose, Brown, Buchy, Budish, Burkley, Butler, Carney, Damschroder, Derickson, Duffey, Foley, Green, Hackett, McClain, Milkovich, O'Brien, Patterson, Pelanda, Perales, Rogers, Romanchuk, Rosenberger, Schuring, Sears, Slaby, Slesnick, Smith, Sprague, Szollosi Speaker Batchelder 

Senator Coley 

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A BILL

To amend sections 317.08, 2333.22, 2715.21, 2735.01,

1

2735.02, 2735.04, and 5301.09 and to enact

2

sections 2735.07, 2735.08, and 4928.80 of the

3

Revised Code to add to and clarify the powers of a

4

receiver, to provide a procedure for a receiver's

5

sale of property, to prohibit an electric

6

distribution utility from altering, refusing, or

7

discontinuing service to, or discriminating

8

against, a receiver under certain circumstances,

9

to specify the order of the distribution of the

10

proceeds of the receivership, to address the

11

effect of a receivership on noncompetitive retail

12

electric service, and to specify that a lease of

13

natural gas and petroleum is an interest in real

14

estate.

15

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 317.08, 2333.22, 2715.21, 2735.01,	16
2735.02, 2735.04, and 5301.09 be amended and sections 2735.07,	17
2735.08, and 4928.80 of the Revised Code be enacted to read as	18
follows:	19

Sec. 317.08. (A) Except as provided in divisions (C), (D),	20
and (E) of this section, the county recorder shall keep six	21
separate sets of records as follows:	22

(1) A record of deeds, in which shall be recorded all deeds	23
and other instruments of writing for the absolute and	24
unconditional sale or conveyance of lands, tenements, and	25
hereditaments; all notices as provided in sections 5301.47 to	26
5301.56 of the Revised Code; all judgments or decrees in actions	27
brought under section 5303.01 of the Revised Code; all	28
declarations and bylaws, and all amendments to declarations and	29
bylaws, as provided in Chapter 5311. of the Revised Code;	30
affidavits as provided in sections 5301.252 and 5301.56 of the	31
Revised Code; all certificates as provided in section 5311.17 of	32
the Revised Code; all articles dedicating archaeological preserves	33
accepted by the director of the Ohio historical society under	34
section 149.52 of the Revised Code; all articles dedicating nature	35
preserves accepted by the director of natural resources under	36
section 1517.05 of the Revised Code; all conveyances of	37
conservation easements and agricultural easements under section	38
5301.68 of the Revised Code; all instruments extinguishing	39
agricultural easements under section 901.21 or 5301.691 of the	40
Revised Code or pursuant to terms of such an easement granted to a	41
charitable organization under section 5301.68 of the Revised Code;	42
all instruments or orders described in division (B)(2)(b) of	43
section 5301.56 of the Revised Code; all no further action letters	44
issued under section 122.654 or 3746.11 of the Revised Code; all	45
covenants not to sue issued under section 3746.12 of the Revised	46
Code, including all covenants not to sue issued pursuant to	47
section 122.654 of the Revised Code; any restrictions on the use	48
of property contained in a no further action letter issued under	49
section 122.654 of the Revised Code, any restrictions on the use	50
of property identified pursuant to division (C)(3)(a) of section	51
3746.10 of the Revised Code, and any restrictions on the use of	52
property contained in a deed or other instrument as provided in	53
division (E) or (F) of section 3737.882 of the Revised Code; any	54
easement executed or granted under section 3734.22, 3734.24,	55
3734.25, or 3734.26 of the Revised Code; any environmental	56
covenant entered into in accordance with sections 5301.80 to	57
5301.92 of the Revised Code; all memoranda of trust, as described	58
in division (A) of section 5301.255 of the Revised Code, that	59
describe specific real property; and all agreements entered into	60
under division (A) of section 1506.44 of the Revised Code;	61

(2) A record of mortgages, in which shall be recorded all of	62
the following:	63

(a) All mortgages, including amendments, supplements,	64
modifications, and extensions of mortgages, or other instruments	65
of writing by which lands, tenements, or hereditaments are or may	66
be mortgaged or otherwise conditionally sold, conveyed, affected,	67
or encumbered;	68

(b) All executory installment contracts for the sale of land	69
executed after September 29, 1961, that by their terms are not	70
required to be fully performed by one or more of the parties to	71
them within one year of the date of the contracts;	72

(c) All options to purchase real estate, including	73
supplements, modifications, and amendments of the options, but no	74
option of that nature shall be recorded if it does not state a	75
specific day and year of expiration of its validity;	76

(d) Any tax certificate sold under section 5721.33 of the	77
Revised Code, or memorandum of it, that is presented for filing of	78
record.	79

(3) A record of powers of attorney, including all memoranda	80
of trust, as described in division (A) of section 5301.255 of the	81
Revised Code, that do not describe specific real property;	82

(4) A record of plats, in which shall be recorded all plats	83
and maps of town lots, of the subdivision of town lots, and of	84
other divisions or surveys of lands, any center line survey of a	85
highway located within the county, the plat of which shall be	86
furnished by the director of transportation or county engineer,	87
and all drawings and amendments to drawings, as provided in	88
Chapter 5311. of the Revised Code;	89

(5) A record of leases, including a lease described in	90
section 5301.09 of the Revised Code, in which shall be recorded	91
all leases, memoranda of leases, and supplements, modifications,	92
and amendments of leases and memoranda of leases;	93

(6) A record of declarations executed pursuant to section	94
2133.02 of the Revised Code and durable powers of attorney for	95
health care executed pursuant to section 1337.12 of the Revised	96
Code.	97

(B) All instruments or memoranda of instruments entitled to	98
record shall be recorded in the proper record in the order in	99
which they are presented for record. The recorder may index, keep,	100
and record in one volume unemployment compensation liens, internal	101
revenue tax liens and other liens in favor of the United States as	102
described in division (A) of section 317.09 of the Revised Code,	103
personal tax liens, mechanic's liens, agricultural product liens,	104
notices of liens, certificates of satisfaction or partial release	105
of estate tax liens, discharges of recognizances, excise and	106
franchise tax liens on corporations, broker's liens, and liens	107
provided for in sections 1513.33, 1513.37, 3752.13, 5164.56, and	108
5311.18 of the Revised Code.	109

The recording of an option to purchase real estate, including	110
any supplement, modification, and amendment of the option, under	111
this section shall serve as notice to any purchaser of an interest	112
in the real estate covered by the option only during the period of	113
the validity of the option as stated in the option.	114

(C) In lieu of keeping the six separate sets of records	115
required in divisions (A)(1) to (6) of this section and the	116
records required in divisions (D) and (E) of this section, a	117
county recorder may record all the instruments required to be	118
recorded by this section in two separate sets of record books. One	119
set shall be called the "official records" and shall contain the	120
instruments listed in divisions (A)(1), (2), (3), (5), and (6) and	121
(D) and (E) of this section. The second set of records shall	122
contain the instruments listed in division (A)(4) of this section.	123

(D) Except as provided in division (C) of this section, the	124
county recorder shall keep a separate set of records containing	125
all corrupt activity lien notices filed with the recorder pursuant	126
to section 2923.36 of the Revised Code and a separate set of	127
records containing all medicaid fraud lien notices filed with the	128
recorder pursuant to section 2933.75 of the Revised Code.	129

(E)(1) The county recorder shall keep a separate set of	130
records containing all transfers, conveyances, or assignments of	131
any type of tangible or intangible personal property or any rights	132
or interests in that property if and to the extent that any person	133
wishes to record that personal property transaction and if the	134
applicable instrument is acknowledged before a notary public. If	135
the transferor is a natural person, the notice of personal	136
property transfer shall be recorded in the county in this state in	137
which the transferor maintains the transferor's principal	138
residence. If the transferor is not a natural person, the notice	139
of personal property transfer shall be recorded in the county in	140
this state in which the transferor maintains its principal place	141
of business. If the transferor does not maintain a principal	142
residence or a principal place of business in this state and the	143
transfer is to a trustee of a legacy trust formed pursuant to	144
Chapter 5816. of the Revised Code, the notice of personal property	145
transfer shall be recorded in the county in this state where that	146
trustee maintains a principal residence or principal place of	147
business. In all other instances, the notice of personal property	148
transfer shall be recorded in the county in this state where the	149
property described in the notice is located.	150

(2) The records described in division (E)(1) of this section	151
shall be maintained in or as part of the "official records" under	152
division (C) of this section.	153

Sec. 2333.22. (A) In proceedings under sections 2333.09 to	154
2333.27, inclusive, of the Revised Code, the judge by order may	155
appoint the sheriff of the proper county, or other suitable	156
person, a receiver of the property of the judgment debtor. Such	157

(B) The judge alsowho appointed the receiver under division	158
(A) of this section, by order, may forbid a transfer, or other	159
disposition of or interference with, the property of the judgment	160
debtor not exempt by law.	161

(C) Under the control of the judge who appointed a receiver	162
under division (A) of this section and except as ordered by the	163
judge under division (B) of this section, the receiver may do any	164
of the acts specified in section 2735.04 of the Revised Code.	165

Sec. 2715.21. (A) The receiver appointed under section	166
2715.20 of the Revised Code shall take possession of all notes,	167
due bills, books of account, accounts, and other evidences of	168
debt, that have been taken by the levying officer as the property	169
of the defendant in attachment, and proceed to settle and collect	170
them. For that purpose, the receiver may commence and maintain	171
actions in histhe receiver's own name, as receiver, but no right	172
of defense thereinin the action shall be impaired or affected.	173

(B) Under the control of the court that appointed the	174
receiver under section 2715.20 of the Revised Code, the receiver	175
may do any of the acts specified in section 2735.04 of the Revised	176
Code.	177

Sec. 2735.01. (A) A receiver may be appointed by the supreme	178
court or a judge thereof, the court of appeals or a judge thereof	179
in histhe judge's district, the court of common pleas or a judge	180
thereof in histhe judge's county, or the probate court, in causes	181
pending in such courts respectively, in the following cases:	182

(A)(1) In an action by a vendor to vacate a fraudulent	183
purchase of property, or by a creditor to subject property or a	184
fund to histhe creditor's claim, or between partners or others	185
jointly owning or interested in any property or fund, on the	186
application of the plaintiff, or of a party whose right to or	187
interest in the property or fund, or the proceeds thereofof the	188
property or fund, is probable, and when it is shown that the	189
property or fund is in danger of being lost, removed, or	190
materially injured;	191

(B)(2) In an action by a mortgagee, for the foreclosure of	192
histhe mortgagee's mortgage and sale of the mortgagemortgaged	193
property, when it appears that the mortgaged property is in danger	194
of being lost, removed, or materially injured, diminished in	195
value, or squandered, or that the condition of the mortgage has	196
not been performed, and theeither of the following applies:	197

(a) The property is probably insufficient to discharge the	198
mortgage debt.	199

(b) The mortgagor has consented in writing to the appointment	200
of a receiver.	201

(3) To enforce a contractual assignment of rents and leases;

202

(C)(4) After judgment, to carry the judgment into effect;

203

(D)(5) After judgment, to dispose of the property according	204
to the judgment, or to preserve it during the pendency of an	205
appeal, or when an execution has been returned unsatisfied and the	206
judgment debtor refuses to apply the property in satisfaction of	207
the judgment;	208

(E)(6) When a corporation, limited liability company,	209
partnership, limited partnership, or other entity has been	210
dissolved, or is insolvent, oris in imminent danger of	211
insolvency, or has forfeited its corporate, limited liability	212
company, partnership, limited partnership, or other entity rights;	213

(F)(7) In all other cases in which receivers have been	214
appointed by the usages of equity.	215

(B) A receiver appointed under division (A)(1), (2), (3), or	216
(5) of this section shall be appointed only with respect to the	217
particular property that is the subject of the action in which the	218
appointment of a receiver is sought.	219

(C) A receiver appointed under division (A)(6) of this	220
section may be appointed to manage all the affairs of the	221
corporation, limited liability company, partnership, limited	222
partnership, or other entity with respect to which the appointment	223
of a receiver is sought.	224

(D) A receiver appointed under division (A)(4) or (7) of this	225
section may be appointed to manage all the affairs of the	226
corporation, limited liability company, partnership, limited	227
partnership, or other entity, or only with respect to particular	228
property as determined by the court.	229

Sec. 2735.02.  No party, attorney for a party, or person	230
interested in an action shall be appointed receiver thereinin the	231
action except by consent of all of the parties to the action and	232
all other persons holding a recorded ownership interest in or a	233
recorded or filed lien on the property that is subject to the	234
action. No person except a resident of this state shall be	235
appointed or act as receiver of a railroad or other corporation	236
within, partnership, limited liability company, or other entity	237
created under the laws of this state. In selecting a receiver,	238
priority consideration shall be afforded to any of the qualified	239
persons nominated by the party seeking the receivership. No	240
nomination of qualified persons for the receivership is binding	241
upon the court.	242

Sec. 2735.04. (A) The powers of a receiver shall be set	243
forth in the order of the court that appointed the receiver as	244
those powers may be modified by the court or as otherwise approved	245
by the court upon application of the receiver or a party to the	246
action.	247

(B) Under the control of the court whichthat appointed him,	248
the receiver as provided in section 2735.01 of the Revised Code, a	249
the receiver may bringdo any of the following:	250

(1) Bring and defend actions in histhe receiver's own name	251
as receiver, take;	252

(2) Take and keep possession of real or personal property,	253
receive;	254

(3) Collect rents, collect, compound forand other	255
obligations, and compromise demands, make;	256

(4) Enter into contracts, including, but not limited to	257
contracts of sale, lease, or, so long as existing lien rights will	258
not be impacted, contracts for construction and for the completion	259
of construction work;	260

(5) Sell and make transfers, and generallyof real or	261
personal property;	262

(6) Execute deeds, leases, or other documents of conveyance	263
of real or personal property;	264

(7) Open and maintain deposit accounts in the receiver's	265
name;	266

(8) Generally do suchany other acts respecting the property	267
asthat the court authorizes.	268

(C) Any funds that are expended by or on behalf of the	269
receiver, including receivership fees, fees for professionals	270
assisting the receivership, and those expended in entering into or	271
performing contracts under division (B)(4) of this section,	272
including those for the completion of construction work authorized	273
by the court, shall be taxed as court costs or otherwise treated	274
as an administrative expense of the action. The court may require	275
an additional deposit to cover funds that would be expended by the	276
receiver under a contract entered into under division (B)(4) of	277
this section only from the parties that have requested or	278
expressly consented to the receiver incurring those expenses.	279

(D)(1)(a) Subject to the approval and supervision of the	280
court and the requirements of this section, a receiver may sell	281
property free and clear of liens by private sale pursuant to a	282
written contract between the receiver and the prospective	283
purchaser, by private auction, by public auction, or by any other	284
method that the court determines is fair to the owner of the	285
property and all other parties with an interest in the property,	286
is reasonable under the circumstances, and will maximize the	287
return from the property to the receivership estate, taking into	288
account the potential cost of holding and operating the property.	289

(b) Before entering an order authorizing the sale of the	290
property by the receiver, the court may require that the receiver	291
provide evidence of the value of the property. That valuation may	292
be provided by any evidence that the court determines is	293
appropriate. In a public or private auction, the court may	294
establish a minimum bid.	295

(c) If the receiver requests authority to sell the property	296
pursuant to a prospective purchase contract and if warranted by	297
the circumstances, the court may require that the receiver solicit	298
and consider additional offers. If the receiver ultimately sells	299
the property to a party other than the original proposed	300
purchaser, if approved by the court, the receiver may pay to the	301
unsuccessful original proposed purchaser a reasonable amount of	302
costs and expenses from the sale proceeds in an amount determined	303
by the court to compensate that proposed purchaser for	304
participation in the sale process to the extent that participation	305
brought value to the receivership.	306

(2) Any sale of real property under division (B)(5) of this	307
section shall be made only after all of the following occur:	308

(a) An application is made by the receiver or the first	309
mortgage holder that requests that the receiver be granted the	310
authority to sell the specific real property and sets forth either	311
of the following:	312

(i) If the receiver has not received a specific offer for	313
sale that the receiver desires to accept, the proposed procedures	314
for the conduct of the sale;	315

(ii) If the receiver has received a specific offer for sale	316
that the receiver desires to accept, the identity of the buyer and	317
the proposed terms of the sale.	318

(b) At least ten days' prior written notice is given in	319
accordance with the Rules of Civil Procedure to all of the owners	320
of the real property, all parties to the action, and all other	321
persons with a recorded or filed lien encumbering the real	322
property to be sold as those persons are identified in a	323
preliminary judicial report or a commitment for an owner's policy	324
of title insurance previously filed with the court pursuant to	325
section 2329.191 of the Revised Code or, if not previously filed,	326
in a preliminary judicial report or a commitment for an owner's	327
policy of title insurance filed with the application of the	328
receiver for authority to sell the real property that otherwise	329
complies with the requirements of section 2329.191 of the Revised	330
Code, unless the lien or interest is barred by lis pendens	331
pursuant to section 2703.26 of the Revised Code.	332

(c) An opportunity is given for a hearing at which all of the	333
parties and persons to whom the notice is given under division	334
(D)(2)(b) of this section may be heard, provided that if no such	335
party or person objects to the proposed sale or requests a hearing	336
within the period provided pursuant to that division, the court	337
may proceed without a hearing.	338

(d) The court issues an order of sale of the real property	339
that sets forth the required procedure for or the terms of the	340
sale. The order of sale is the final appealable order with respect	341
to the matters contained in the order.	342

(3)(a) If requested in the receiver's application for	343
authority to sell the real property under division (D)(2)(a) of	344
this section, upon a finding by the court after notice and an	345
opportunity for a hearing as provided in divisions (D)(2)(b) and	346
(c) of this section that it is in the best interest of the	347
receivership estate that the real property be sold free and clear	348
of liens, the court may order that the real property be sold free	349
and clear of all liens other than the lien of the treasurer of the	350
county in which the real property is located for real estate taxes	351
and assessments.	352

(b) In the event of a sale free and clear of liens, upon the	353
recording of the deed from the receiver to the purchaser, those	354
liens shall be canceled as to the real property and shall be	355
transferred to the proceeds of the sale in the hands of the	356
receiver with the same priority as those liens previously attached	357
to the real property sold.	358

(4) The sale of real property under division (D)(2) of this	359
section is in lieu of a sale pursuant to Chapter 2329. of the	360
Revised Code, and except as provided in division (D)(2)(b) of this	361
section with respect to the applicability of section 2329.191 of	362
the Revised Code and as provided in division (D)(9) of this	363
section with respect to the applicability of section 2329.37 of	364
the Revised Code, the provisions of Chapter 2329. of the Revised	365
Code do not apply to a sale of real property under division (D)(2)	366
of this section.	367

(5) If the contemplated sale of real property is under	368
division (D)(2)(a)(ii) of this section, the court may finally	369
approve the sale, and no separate confirmation order is required.	370

(6) If the contemplated sale of real property is under	371
division (D)(2)(a)(i) of this section, following the sale or	372
auction process described in the application, the receiver or	373
first mortgage holder shall seek an order confirming the sale	374
process and approving the proposed sale.	375

(7) The court's order approving the application by a receiver	376
or first mortgage holder for authority to sell real property under	377
division (D)(2)(a) of this section shall establish a reasonable	378
time, but not less than three days, after the date of the order	379
approving the specific sale or the sale process for the owner and	380
all other parties possessing an equity of redemption in the real	381
property to exercise their equity of redemption in the real	382
property or to have that equity of redemption forever barred.	383
Section 2329.33 of the Revised Code does not apply to a sale by a	384
receiver under this section.	385

(8)(a) Until the date the court sets for the termination of	386
the fee owner's time to redeem the real property, any fee owner of	387
the real property proposed to be sold may redeem the real property	388
from the sale by paying to the receiver by cashier's check or	389
other form of immediately available funds an amount equal to the	390
greater of the following:	391

(i) The sale price at which the real property was sold;

392

(ii) An amount equal to the total of all liens upon the real	393
property that were to be canceled as liens upon the real property	394
by virtue of the sale, including all principal, interest, costs,	395
and other amounts secured by those liens through the date of	396
payment to the receiver.	397

(b) The amount determined under division (D)(8)(a)(i) or (ii)	398
of this section may include interest on the amount of the sale	399
price at a rate that may be fixed by the court, from the date of	400
the sale to the date of the payment of the full amount to the	401
receiver.	402

(c) Upon receipt of the amount determined under divisions	403
(D)(8)(a) and (b) of this section, the receiver shall advise the	404
court and all of the parties and persons to whom notice was given	405
pursuant to division (D)(2)(b) of this section of the receipt of	406
that amount and shall set aside the sale. The fee title to the	407
real property shall remain in the name of the owner of the real	408
property, and the liens upon the real property, except as provided	409
in division (D)(3) of this section, shall be transferred in the	410
same order of priority to the proceeds received by the receiver	411
from the owner of the real property.	412

(9) If the sale of the real property by the receiver under	413
division (D)(2) of this section is conducted in accordance with	414
the terms of the order of the court authorizing the sale, upon	415
closing of the sale the receiver shall execute and deliver a	416
receiver's deed for the real property sold to the purchaser. The	417
receiver's deed has the effect provided for in section 2329.37 of	418
the Revised Code.	419

(10) If the contemplated sale of the real property is under	420
division (D)(2)(a)(ii) of this section, as soon as is reasonably	421
possible following the delivery of the deed to the purchaser under	422
division (D)(9) of this section, the receiver shall file with the	423
court and serve upon all of the parties and persons to whom the	424
notice of the application for the authority to sell the real	425
property was given under division (D)(2)(b) of this section a	426
certificate and report of sale in which the receiver certifies all	427
of the following:	428

(a) That the sale was conducted in accordance with the order	429
authorizing the sale;	430

(b) The date of the sale;

431

(c) The name of the purchaser;

432

(d) The purchase price;

433

(e) The amount of the net proceeds of the sale after payment	434
of all expenses associated with the sale;	435

(f) A copy of the closing statement, if a closing statement	436
was prepared;	437

(g) Any other information that the court may require.

438

Sec. 2735.07.  (A) As used in this section, "assurance of	439
payment" means one or more of the following:	440

(1) A cash deposit;

441

(2) A letter of credit;

442

(3) A certificate of deposit;

443

(4) A surety bond;

444

(5) A prepayment of utility consumption;

445

(6) Another form of security that is mutually agreed on	446
between the public utility and the receiver, which may include a	447
provision for services provided by the public utility prior to the	448
date of the appointment of the receiver.	449

(B) The electric distribution utility may alter, refuse, or	450
discontinue service if the receiver, within five days after the	451
date of the appointment of the receiver, does not furnish adequate	452
assurance of payment for service after that date in an amount that	453
is agreeable to the electric distribution utility.	454

Sec. 2735.08. (A) As used in this section, "administrative	455
expenses" includes, but is not limited to, all of the following:	456

(1) The receiver's fees and expenses;

457

(2) Payment of receiver certificates;

458

(3) Expenses incurred by the receiver in operating the entity	459
or property over which the receiver was appointed, including but	460
not limited to, charges by a public utility for service after the	461
date of the appointment of a receiver.	462

(B) The receiver shall make distributions from the	463
receivership in the following order of priority:	464

(1) First, to holders of actual, necessary administrative	465
expenses of the receivership, which shall be paid in full in the	466
ordinary course of business unless otherwise agreed to by the	467
receiver and the provider of the necessary expenses;	468

(2) Second, to secured creditors that hold liens on the	469
property subject to the receivership, in the order of their	470
priority;	471

(3) Third, pro rata, to each public utility for services	472
provided to the property subject to the receivership prior to the	473
date of the appointment of the receiver;	474

(4) Fourth, unsecured claims arising against the owner of the	475
property subject to the receivership prior to the date of the	476
appointment of the receiver that are recognized under the law of	477
this state or of the United States as having priority over other	478
unsecured creditors.	479

(5) Fifth, pro rata, to all other unsecured creditors for	480
claims arising against the owner of the property subject to the	481
receivership prior to the date of the appointment of the receiver;	482

(6) Sixth, if all amounts payable under divisions (B)(1) to	483
(5) of this section have been paid in full by the receiver, any	484
remaining property that is subject to the receivership shall be	485
returned to the person or entity that owned the property subject	486
to the receivership.	487

Sec. 4928.80.  (A) An electric distribution utility to which	488
a customer owes unpaid charges for retail electric service	489
provided prior to the date of the appointment of the receiver	490
shall continue to provide noncompetitive retail electric service	491
to the customer if both of the following apply:	492

(1) The customer or the property being serviced by the	493
electric distribution utility is under the control of a receiver	494
appointed under section 2333.22, 2715.20, or 2735.01 of the	495
Revised Code.	496

(2) The receiver described in division (A)(1) of this section	497
obtains competitive retail electric service from another provider	498
or providers of competitive retail electric service.	499

(B) The public utilities commission shall adopt rules	500
necessary to implement the provisions of this section and sections	501
2735.07 and 2735.08 of the Revised Code not later than ninety days	502
after the effective date of this section. The rules adopted under	503
this section shall not prohibit the denial or disconnection of	504
nonresidential service for reasons other than nonpayment for	505
services provided prior to the date of the appointment of the	506
receiver.	507

Sec. 5301.09. AllIn recognition that such leases and	508
licenses create an interest in real estate, all leases, licenses,	509
and assignments thereof, or of any interest therein, given or made	510
concerning lands or tenements in this state, by which any right is	511
granted to operate or to sink or drill wells thereon for natural	512
gas and petroleum or either, or pertaining thereto, shall be filed	513
for record and recorded in such lease record without delay, and	514
shall not be removed until recorded. No such lease or assignment	515
thereof shall be accepted for record after September 24, 1963,	516
unless it contains the mailing address of both the lessor and	517
lessee or assignee. If the county in which the land subject to any	518
such lease is located maintains permanent parcel numbers or	519
sectional indexes pursuant to section 317.20 of the Revised Code,	520
no such lease shall be accepted for record after December 31,	521
1984, unless it contains the applicable permanent parcel number	522
and the information required by section 317.20 of the Revised Code	523
to index such lease in the sectional indexes; and, in the event	524
any such lease recorded after December 31, 1984, is subsequently	525
assigned in whole or in part, and the county in which the land	526
subject thereto is located maintains records by microfilm or other	527
microphotographic process, the assignment shall contain the same	528
descriptive information required to be included in the original	529
lease by this sentence, but the omission of the information	530
required by this section does not affect the validity of any	531
lease. Whenever any such lease is forfeited for failure of the	532
lessee, histhe lessee's successors or assigns to abide by	533
specifically described covenants provided for in the lease, or	534
because the term of the lease has expired, the lessee, histhe	535
lessee's successors or assigns, shall have such lease released of	536
record in the county where such land is situated without cost to	537
the owner thereof.	538

No such lease or license is valid until it is filed for	539
record, except as between the parties thereto, unless the person	540
claiming thereunder is in actual and open possession.	541

Section 2. That existing sections 317.08, 2333.22, 2715.21,	542
2735.01, 2735.02, 2735.04, and 5301.09 of the Revised Code are	543
hereby repealed.	544