Ohio Municipal League Legislative Bulletin

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December 1, 2017

OML UPDATE AT-A-GLANCE

Here are the top three things you need to know from this past week:

The State and Local Tax deduction (S.A.L.T.), which is under threat of elimination within the federal tax reform bill, is claimed by roughly 44 million Americans a year, who save a collective $60 billion. To read more about the devastating effects the SALT elimination would have, click HERE.
The Capital Budget bill for FY 17 -19 included $2.62 billion in appropriations. $160 million of that was slated for community projects. For more information on the upcoming Capital Budget bill, check out our article below.
Infrastructure: Roughly 86 percent of the U.S. population relies on public-supply water, according to a 2010 survey which can be found HERE. About 240,000 water main breaks occur every year.

CAPITAL BUDGET BILL PROVIDES OPPORTUNITY FOR MUNICIPAL INFRASTRUCTURE INVESTMENT

As we've discussed in previous bulletins, the Capital Budget bill for fiscal years 2019 and 2020 will be making its way through the legislative process in early 2018. It is an opportunity for municipalities to request support with infrastructure projects. Every biennium, the state legislature passes a Capital Budget bill that earmarks funds for specific eligible community projects brought before individual state legislators by the communities they represent. The criteria that will be used to examine each application for eligibility include:

Project name and a brief description of the scope of the project
Specific description of what the state capital dollars would be used for
Physical location of the project
Estimated total project cost
Entity or organization sponsoring the project
Identification of the facility/asset owner during construction and after work completed
Total project cost
Amount of state funding requested for the FY 2019-20 capital biennium
Amount and source of non-state funding
Amount of state funding the project has received in the past. (Clarify if the entity has received funding in the past but for a different project)
Any additional information that would be of assistance in evaluating the project's eligibility to receive state capital funding

Additionally, there is a list of examples of both eligible and ineligible projects for reference. You can find that HERE. It is important each applicant understand the guidelines and to ensure every application meets the requirements. Otherwise it is highly likely that incorrect applications, even though potentially eligible for funding, will not be considered.

The deadline for members of the legislature to submit their Capital Budget requests is Friday, January 19 ^th. If you have a project you would like to submit for funding and have not done so already, contact your state legislator immediately to begin working on your application. Each application will be submitted through the office of your state legislator. If you haven't begun, get started today!

THIS WEEK IN COMMITTEE HEARINGS

The following bills of municipal interest had hearings in committee this week:

HB 3 - DATAOHIO. Sponsored by Rep. Duffey (R - Worthington), the bill creates the DataOhio Board, specifies requirements for posting public records online, requires the Auditor of State to adopt rules regarding a uniform accounting system for public offices, establishes an online catalog of public data at data.Ohio.gov, and establishes the Local Government Information Exchange Grant Program. During its second hearing in the House Finance Committee, an amendment was adopted that removed the $10 million appropriation, as Rep. Duffey explained he believed it was holding up the passage of the bill. He said the appropriation was intended as a "carrot" encouraging local governments to adopt the system, but he believes they will be incentivized without the funds, particularly as local governments seek financing through the bond market. The League supports the permissiveness of the bill language, but not the removal of the grant program.

HB 281 - BROADBAND EXPANSION. Sponsored by Rep. Carfagna (R - Genoa Township), the bill establishes the residential broadband expansion program within the Development Services Agency (DSA) to award matching grants for last mile broadband expansion in municipal corporations and townships while making an appropriation. During its second hearing in the House Finance Committee, a representative from Connection Ohio gave proponent testimony and cited the importance of the legislation in keeping and attracting millennial workers. The League supports this legislation and will be providing testimony at an upcoming hearing.

HB 378 - BROADBAND GRANTS. Sponsored by Rep. Smith (R - Bidwell) and Rep. Cera (D - Bellaire), the bill creates the Ohio Broadband Development Grant Program and makes an appropriation of $50 million each fiscal year. During its first hearing in the House Finance Committee, both Representatives provided sponsor testimony for the bill. They noted that since the Development Services Agency (DSA) oversees the appropriations for both this bill and HB 281, there could be some overlay and the bills could potentially complement one another. The League is a proponent of the bill.

HB 343 - PROPERTY VALUES. Sponsored by Rep. Merrin (R - Monclova Township), the bill requires local governments that contest property values to formally pass an authorizing resolution for each contest and to notify property owners. During its third hearing in the House Ways and Means Committee, in which opponents expressed concerns that the bill would unnecessarily burden school boards and legislative bodies within political subdivisions with an extra, unnecessary step, delaying the process and making it more difficult to actually determine a property's true value. There were further concerns expressed about the bill politicizing property value challenges in allowing board members to pick and choose which challenges to allow. The League is opposed to the current version of this bill.

HB 371 - PROPERTY TAX. Also sponsored by Rep. Merrin (R - Monclova Township), the bill exempts from property taxation the increased value of land subdivided for residential development until construction commences or the land is sold. During its third hearing in the House Ways and Means Committee, opponents expressed concerns on the impact the bill would have on current property value appraisal methods, in addition to the estimated millions of dollars in lost revenue per county. The League has participated in interested party meetings with the bill's sponsor and other affected organizations, during which we were made to understand amendments to the bill maybe coming. However, we are opposed to the bill in its current form.

HB 263 - OUTDOOR DINING-DOGS. Sponsored by Rep. Lanese (R - Grove City), the bill would generally allow an owner, keeper, or harborer of a dog to take the dog in an outdoor dining area of a retail food establishment or food service operation. During its fifth hearing in the House Economic Development, Commerce and Labor Committee, a sub bill was adopted that requires the directors of Agriculture and Health to adopt rules regarding dogs on dining patios, including how employees interact with the dogs and how waste will be disposed of. It also makes the dog owner liable for any damages incurred by the animal. The League is neutral on this bill.

HB 69 - TIF DISCTRICTS. Sponsored by Rep. Cupp (R - Lima), the bill would require reimbursement of certain township fire and emergency medical service levy revenue forgone because of the creation of a municipal tax increment financing district. No testimony was heard during the bill's sixth hearing in the Senate Ways and Means Committee. Several amendments to are being prepared, some of which may have an impact on municipalities. We will keep our members posted as we learn more. The League is neutral on this bill but does not support further challenges to the intent of the TIF program.

HB 133 - DISASTER REFLIEF. Sponsored by Rep. Ryan (R - Granville), the bill creates the Disaster Relief Act to exempt out-of-state disaster businesses and qualifying out-of-state employees from certain taxes and laws with respect to disaster work on critical infrastructure performed in the state during a declared disaster. During its first hearing in the Senate Ways and Means Committee, Rep. Ryan fielded questions from Senators who wanted to know what problem was being fixed and expressed concerns that Ohio businesses would be out-bid by out-of-state businesses. The League opposes this bill due to the unknown impact to local revenue generation.

SB 181 - UNPAID MUNICIPAL GARBAGE FEES. Sponsored by Sen. O'Brien (D - Bazetta) and Sen. Yuko (D - Richmond Heights), the bill would authorize all municipal corporations that charge a garbage collection fee to certify unpaid amounts to the county auditor, who must enter the fees on the property tax list to be collected in the same manner as real property taxes. No testimony was heard during its third hearing in the Senate Ways and Means Committee. The League supports this bill and, as you may recall from previous bulletins, has testified before committee as a proponent.

HB 226 - FIREWORKS. Sponsored by Rep. Seitz (R - Cincinnati) and Rep. Sweeney (D - Cleveland), the bill allows Ohioans to buy and discharge consumer fireworks and creates a study group. During the bill's first hearing in the Senate Government and Oversight Committee, Rep. Seitz said the bill was intended to "promote safety, preserve local control, and promote regulated competition." The League does not oppose the bill in its current form and will continue to monitor it throughout the legislative process.

AM HB 291 - GOVERNMENT INSURANCE. Sponsored by Rep. Wiggam (R - Wooster), the bill would authorize counties, townships, and municipal corporations to purchase an employee dishonesty and faithful performance of duty insurance policy, instead of a bond, for protection from loss due to the fraudulent or dishonest actions of, and the failure to perform a duty prescribed by law by, an officer, official, employee, or appointee for which a bond is required by law. During its fourth hearing in the House State and Local Government Committee, the bill was voted unanimously out of committee. The League supports this legislation and has offered written proponent testimony in previous hearings

HB 323 - UNPAID MUNICIPAL GARBAGE FEES. Sponsored by Rep. Patterson (D - Jefferson), this bill also authorizes all municipal corporations that charge a garbage collection fee to certify unpaid amounts to the county auditor, who must enter the fees on the property tax list to be collected in the same manner as real property taxes. As with the bill's companion in the Senate, proponent testimony was given during the bill's second hearing in the House State and Local Government Committee by League Director of Communications Ashley Brewster, You can read her testimony HERE.

DEPARTMENT OF COMMERCE ANNOUNCES CULTIVATOR LICENSE RECIPIENTS FOR MEDICAL MARIJUANA

This week, the Ohio Department of Commerce (DOC) announced the recipients of both Level 1 and Level 2 cultivator provisional licenses. Two types of licenses were awarded: Level 1 and Level 2. Level I licensees are permitted to operate a 15,000-square footage marijuana cultivation area, while Level II licensees are permitted to operate a 1,600-square footage marijuana cultivation area.

The Level 1 recipients are:

Level 2 recipients are:

All recipients have 10 days to choose a cultivation location in compliance with local zoning requirements. If you have any questions or want more information about medical marijuana rules in Ohio, please visit the Ohio Pharmacy Board's website HERE.

CENSUS IMPACTS ON OHIO COMMUNITIES; LUCA TRAINING

The Children's defense Fund has released a multi-page series of charts detailing just how participation in the 2020 Census will impact Ohio's local communities. By noting the rates of participation in the 2010 Census and breaking down how deferral assistance was distributed based on the data collected, the info graphics show how a lack of participation can affect some of Ohio's most vulnerable citizens - particularly children and at-risk youth. The information also includes a timeline of when local governments need to sign up to participate through Census Day. To access this helpful information, please click HERE.

Need help finding more information about how your community can effectively participate in the 2020 Census? The Local Update of Census Addresses (LUCA) Operation has you covered. LUCA has made a timeline available of how the 2020 Census will progress, available HERE as well as a schedule of local training session across Ohio, which you can find HERE. The operation is working to ensure local communities across the nation feel equipped to accurately and confidently report their community in the 2020 Census.

COMMITTEE SCHEDULE FOR THE WEEK OF DECEMBER 3, 2017

Tuesday, December 5, 2017
	HOUSE STATE AND LOCAL GOVERNMENT
	Tue., Dec. 5, 2017, 2:30 PM, Hearing Room 017
	Rep. Anielski: 614-644-6041
OR AFTER SESSION

HB323**	GARBAGE COLLECTION FEES (PATTERSON J) To authorize all municipal corporations that charge a garbage collection fee to certify unpaid amounts to the county auditor, who must enter the fees on the property tax list to be collected in the same manner as real property taxes.
	Third Hearing, All Testimony, POSSIBLE VOTE
	Report(s): My Tracked Bills, OML Legislative Report
HB415**	LOCAL GOV ROAD IMPROVEMENT (GREENSPAN D, RYAN S) To allocate one-half of any surplus revenue to a new Local Government Road Improvement Fund, from which money will be distributed directly to local governments to fund road improvements.
	First Hearing, Sponsor Testimony
	Report(s): My Tracked Bills, OML Legislative Report
Wednesday, December 6, 2017
	HOUSE CIVIL JUSTICE
	Wed., Dec. 6, 2017, 11:00 AM, Hearing Room 122
	Rep. Butler, Jr.: 614-644-6008

HB419**	EMERGENCY VEHICLE LIGHTS AND SIRENS (HENNE M) To modify the defense to the liability of a member of a police or fire department or emergency medical service of a political subdivision for the negligent operation of a motor vehicle in response to an emergency by requiring that the vehicle has its lights and sirens simultaneously activated.
	First Hearing, Sponsor Testimony
	Report(s): My Tracked Bills, OML Legislative Report

PLEASE CHECK OUR WEBSITE MONDAY FOR ANY CHANGES TO THE COMMITTEE SCHEDULE

Ohio Municipal League

Legislative Inquires:
Kent Scarrett, Executive Director
Edward Albright, Deputy Director
Ashley Brewster, Director of Communications

Website/Bulletin Issues:
Zoë Wade, Office Manager