OH SB376

Townships or municipal corporations may file declaratory judgment actions against municipalities that charge extraterritorial customers higher water/sewer rates than in-city customers of the same class, unless rates follow industry methodology or don't exceed 125% of in-city rates for existing service

Municipalities declared "noncompliant" lose all local government fund payments and state water/sewer financial assistance (loans, grants from Ohio EPA, Public Works Commission, Water Development Authority, Development Department), except federally required awards

Withheld local government funds are redistributed to "affected subdivisions" (townships or municipalities harmed by the noncompliant practices) in proportion to their populations

Noncompliant municipalities can petition the court for declaratory judgment that they no longer engage in prohibited practices to restore funding eligibility within 180 days of a favorable ruling

Existing contracts for water/sewer rates or direct payments in effect on the bill's effective date are exempt from these provisions