JCAR refers Department of Aging rule on AAA commercial relationships to business-review office

The Joint Committee on Agency Rule Review on Nov. 17 voted to send a Department of Aging rule that governs how area agencies on aging (AAAs) form commercial relationships with private entities to the Common Sense Initiative (CSI) office for a business‑impact review.

Representative Stephanie Matthews moved the referral after testimony from the Ohio Association of Area Agencies on Aging (O4A) and the Council on Aging of Southwestern Ohio, and the motion passed by roll call (10 yes). The rule under review is OAC 173‑2‑08, which specifies how AAAs must document and seek approval for commercial partnerships.

Supporters of the referral said the rule would expand administrative burden and risk chilling partnerships that extend services to older Ohioans. "As written, the rule would expand bureaucracy, delay partnerships, and discourage innovation that helps older Ohioans access critical services," said Kelsey Bergfeld, chief policy officer for the Ohio Association of Area Agencies on Aging. Bergfeld told the committee that the rule’s application form could force AAAs’ private partners to disclose confidential or proprietary information and that limiting redactions to "trade secrets" is too narrow to protect businesses’ commercially sensitive data.

Nan Cahall, director of government relations for the Council on Aging of Southwestern Ohio, said her council serves a region with roughly 365,000 people age 60 and older and that it issued 713 contracts in fiscal year 2025, many to small businesses. "Without a business impact analysis, it is difficult to determine how negatively businesses in Ohio will be impacted," Cahall said, urging referral to CSI and asking that the rule be refiled so stakeholders can work with the agency on less burdensome alternatives.

Department of Aging staff told the committee that federal changes required a state policy and that the department is operating under a corrective action plan with the U.S. Department of Health and Human Services. Tom Simmons, rules and policy administrator, said federal Older Americans Act guidance has long required prior state approval for certain commercial relationships and that the department removed an earlier provision that would have required submission of unredacted contracts. Alex Lapsow, the department's chief legislative officer, added that the administration for community living provided an implementation window after March 2024 guidance and that Ohio’s corrective action plan set a January 1 implementation date to preserve federal funding and status as the state unit on aging.

Committee members pressed the department on whether AAAs are ‘‘instrumentalities of the state’’ (and therefore not treated as businesses for CSI purposes) and whether the agency could identify downstream businesses to contact for a business impact analysis. Department staff said the rule regulates AAAs rather than the private companies that might partner with them and that CSI had previously declined to review when consulted informally.

The motion to refer OAC 173‑2‑08 to CSI passed on a roll call vote. The referral means the Common Sense Initiative office will evaluate whether the rule creates an adverse business impact and whether a formal business‑impact analysis is required. The department and stakeholders said they are willing to continue collaboration on a risk‑based, ACL‑consistent approach.

Next steps: the rule is now before the Common Sense Initiative office for review; JCAR will receive any subsequent filings and reports as the rulemaking proceeds.