Ohio bill would revise Small Loan Act, bar certain short and very small licensed loans

Senator Lang introduced Senate Bill 269, a proposal to amend the Small Loan Act in the Ohio Revised Code, that would revise who is covered by the law, clarify enforcement and examination authority for the Division of Financial Institutions, and bar licensed lenders from making certain very small or short-term loans.

The bill, presented to the 136th General Assembly for the 2025–2026 regular session, would amend sections 1321.02, 1321.07, and 1321.141 of the Revised Code and repeal the existing versions of those sections. According to the text, the changes would apply to loans “in amounts of five thousand dollars or less” and make other edits to the act’s scope and enforcement provisions.

Under the proposed Section 1321.02, the bill restates the licensing requirement for persons making loans of $5,000 or less and lists a number of existing exemptions, including banks, credit unions, mortgage lenders, and entities licensed under other specified chapters. The text preserves and clarifies that persons who advertise, solicit, or hold themselves out to arrange such loans are presumed to be engaged in the business requiring licensure.

Section 1321.07 in the bill directs the Division of Financial Institutions to examine licensees at least once a year and authorizes the division to investigate and subpoena witnesses and records for enforcement purposes. The bill includes procedures for subpoenas, witness fees tied to section 119.094 of the Revised Code, and court enforcement if a person fails to comply with subpoenas or orders from the division.

The proposal’s Section 1321.141 would add a new substantive restriction on licensed lenders: a licensee would be prohibited from making a loan if either the amount is one thousand dollars or less or the loan’s duration is one year or less. The text also bars acts intended to evade that restriction and states that licensees must comply with the section.

Section 2 of the bill would repeal the existing sections 1321.02, 1321.07, and 1321.141. Section 3 states that the version of section 1321.02 in this bill is presented as a composite of prior amendments from H.B. 199 and S.B. 24 of the 132nd General Assembly, and that the General Assembly finds that composite to be the resulting version of the section prior to the effective date of the new version in this act.

The transcript provides the bill text and sponsor identification only; it contains no recorded floor debate, committee discussion, fiscal analysis, or vote tallies. No formal legislative action or adoption is recorded in the provided document.

If enacted, the statutory edits would change license coverage language, enforcement authority language, and impose the explicit prohibitions on loans at or below $1,000 and loans with terms of one year or less for licensees. The bill text does not provide a fiscal note, effective date, or legislative history beyond the single act of introduction in the 136th General Assembly.

The bill is now a proposal before the General Assembly; any further procedural steps (committee referrals, hearings, amendments, or votes) are not contained in the provided text.