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May 10, 2019


OML UPDATE AT-A-GLANCE
 
  • The newest version of Sub. HB 166, the State Operating Budget, eliminates state income tax on income below $22,250 and reduces every other tax bracket by 6.6%. The League is disappointed that the legislature has chosen to potentially increase local tax burdens across the state by making these state tax changes rather than investing in Ohio's municipalities
 
  • The Senate officially swore in former Representative, now Sen. Tim Schaffer (R - Lancaster), as the senator for the 20th Senate District. The seat was previously vacated by former Sen. Brian Hill (R - Zanesville).
 
  • The Ohio Department of Natural Resources (ODNR) has announced the approval of over $297,000 in funding for 52 projects. The funding will come from the Volunteer Fire Assistance (VFA) grant program and will help support volunteer fire departments in rural areas in Eastern and Southern Ohio.
 
 
 
HOUSE OMNIBUS AMENDMENT TO BUDGET FAILS TO RESTORE LGF
 
This week, the House Finance Committee adopted an omnibus amendment that made many substantial changes to the State Operating Budget Bill, Sub. HB 166. The bill was then voted unanimously out of committee and sent to the House floor, where the following day it was voted out of the chamber by a vote of 85 to 9. The bill now heads to the Senate for consideration.
 
The League and many of our members had requested that the omnibus amendment contained a provision investing in Ohio's cities and villages by restoring the Local Government Fund (LGF) to pre-recession levels. Once more, the League was disappointed that the House did not increase funding for the LGF. The bill still stands at a 9.1% increase in FY 20 and a 1.8% increase in FY 21. The League thanks the House for retaining this increase, but it is not nearly enough to begin to lift many struggling municipalities out of the financial challenges cause by repeated cuts to municipal revenue streams over the past several years.
 
It is imperative that our members turn their attention to the members of the Senate, as they begin deliberations on Sub. HB 166. We urge local leaders to contact their state senator and educate them on the need to restore the LGF to ensure cities and villages can staff safety personnel such as police and fire, repair failing and dangerous infrastructure and deliver other basic services Ohio citizens deserve.
 
We also strongly encourage our members to pass resolutions urging for the restoration of the LGF. Resolutions both alert legislators to their constituents' concerns while generating a public conversation on the issue. Once your city council passes a resolution, be sure to send a copy to your state senator, followed up by a phone call to the senator's office. Please send a copy to the League as well for our records. You can find a sample resolution HERE.
 
 
LEAGUE TESTIFIES ON BUDGET ISSUES OF MUNICIPAL IMPACT

During hearings before the House Finance Committee this week, the League took the opportunity to testify on the issues in the budget bill most impactful to municipalities.
 
The League's executive director Kent Scarrett testified before the House Finance Committee. His testimony emphasized the need for the state to invest in municipalities by restoring the Local Government Fund. "To invest in Ohio, we must first invest in where the vast majority of Ohioans live and work and that is Ohio's municipalities," he said.
 
Dir. Scarrett's testimony also urged for the full restoration of funding to the Multi-Agency Radio Communications System (MARCs) to ensure smaller cities and villages can continue to protect Ohioans by staying in the program. Dir. Scarrett urged that the net profit distribution language to be removed and placed in separate legislation, and he also encouraged the committee to removed a provision repealing the state's motion picture tax credit. You can read his testimony in full HERE.
 
President of the League's Municipal Income Tax Committee and Dublin Tax Administrator Kevin Robison also testified before the committee on the issue of municipal net profit distributions in Sub. HB 166. He explained that the language as written will have a negative financial effect for hundreds of municipalities and urged that the language be removed from the bill and placed in separate legislation.
 
"More time is needed to further discuss the ramifications of this language in the budget bill, and we ask that the language be removed to allow for interested party meetings between the state tax department and municipalities for a better resolution to these issues," said Robison. You can read his testimony in full HERE.
 
As the budget now moves to the Senate, League staff will continue to meet with Senators to impress upon them the need for greater support for Ohio municipalities and a recommitment to the partnership between the state and its municipal partners. It is crucial that our municipal leaders contact their members of the Senate and let them know of your local needs.
 
 
 
ISSUES OF MUNICIPAL IMPACT IN HOUSE OMNIBUS AMENDMENT

The omnibus amendment to HB 166, the State Operating Budget bill, was adopted and passed late Wednesday evening. League staff has parsed through the new provisions and have identified the amendments impacting municipalities. They are as follows:
New provisions supported by the League:
 
  • Hotel Intermediaries: Sales and Lodging Taxes. Requires hotel intermediaries to collect and remit local lodging taxes.
 
  • Vexatious Litigators. Requires a vexatious litigator to obtain court permission before requesting public records.
  •  
 
New provisions opposed by the League:
 
 
  • Motion Picture Tax Credit Repeal. Repeals the refundable tax credit for motion picture production expenditures, meaning no new credits would be authorized after FY 2019, but credits certified before FY 2020 could continue to be claimed. The removal of this tax credit will have a negative impact on economic development opportunities for Ohio municipalities.
 
  • Property Tax Replacement Phase-Out. Phases out the Property Tax Replacement for local governments.
 
  • August Special Elections. Prohibits local tax levies from appearing on August special election ballots. This was previously introduced as HB 187 by Rep. Merrin (R - Monclova Township).
 
  • Property Tax Complaints. Requires local government to pass individual resolutions for each property tax contest. This was previously introduced as HB 75 by Rep. Merrin (R - Monclova Township).
 
  • Residential Property Tax Abatement. Exempts unimproved land subdivided for residential development from increased property taxes for up to 5 years. This was previously introduced as HB 149 by Rep. Merrin (R - Monclova Township).
 
If you would like a list of all of the budget provisions impacting municipalities, click HERE. The League is asking our members to reach out to their members of the Senate and express their support for the provisions benefitting municipalities and opposing the provisions that would cause long-term damage to Ohio's cities and villages. We will continue to update our members on the progress of Sub. HB 166 as it moves through the legislative process.
 
 
 
 
OML'S MAYOR'S ASSOCIATION CONFERENCE ANNOUNCES LT. GOVERNOR JOHN HUSTED AS GUEST SPEAKER
 
From Wednesday, June 12 through Friday, June 14, the League is hosting its annual Mayors Association of Ohio Conference at the downtown Columbus Renaissance Hotel. Mayors will have the opportunity to network and share best practices, mingle with exhibitors, attend session and workshops on the most pressing issues facing Ohio's local leaders. The League is grateful that Lt. Governor John Husted will be joining our mayors as our guest speaker Thursday. To ensure you don't miss out on this unique opportunity, click HERE to register and find more information.
 
 
 
 
REGISTRATION OPEN FOR MUNICIPAL INCOME TAX SEMINAR
 
From Wednesday, July 10 through Friday, July 12, the League will be hosting our annual Municipal Income Tax Seminar at the Renaissance Hotel in downtown Columbus. The seminar is a unique and important experience for municipal tax administrators across the state as a chance to network, hear from state officials and attend workshops and seminars covering a wide range of topics. The League is also grateful that Ohio Tax Commissioner Jeff McClain will be our guest speaker Thursday to talk about news regarding the centralized collection of the municipal net profit taxes. To register for this important event and to see more details, click HERE. We look forward to seeing you there!
 
 
 
BILL IMPACTING MUNICIPALITIES PASSED BY THE SENATE
 
Here is the bill of municipal interest passed by the Senate this week:
 
  • SB 37 - MOTION PICTURE TAX CREDIT. Sponsored by Sen. Schuring (R - Canton), would extend eligibility for and make other changes to the motion picture tax credit. The bill was voted out of the Senate unanimously. The League is supportive of this legislation. You can find the bill text and other important documents here: https://bit.ly/2E1Wwb2
 
 
 
 
COMMITTEE RECAP: BILLS OF MUNICIPAL INTEREST
 
Here are the bills impacting municipalities that received committee hearings this week:
 
  • SB 52 - CYBER SECURITY. Sponsored by Sen. Gavarone (R - Bowling Green), would create the civilian cyber security reserve forces, to make the Secretary of State a member of the Homeland Security Advisory Council, to require the Secretary of State to appoint a chief information security officer, to require the boards of elections to audit election results, and to make an appropriation. During its second hearing before the House Transportation and Public Safety Committee, proponents Secretary of State Frank LaRose and Adjutant General John Harris testified, saying the bill would help cover current gaps in Ohio's cybersecurity. The League is supportive of this legislation. You can find the bill text and other important documents here: https://bit.ly/2GS59FJ
 
  • SB 8 - OPPORTUNITY ZONES. Sponsored by Sen. Schuring (R - Canton), would authorize tax credits for investments in an Ohio Opportunity Zone. During its second hearing before the House Economic and Workforce Development Committee, proponents testified in support of the bill, including the League. You can read our testimony HERE. The bill has since been amended in the Sub. HB 166, the State Operating Budget Bill. You can find the bill text and other important documents here: https://bit.ly/2GNI6fa
 
  • HB 178 - CONCEALED WEAPONS Sponsored by Rep. Hood (R - Ashville) and Rep. Brinkman (R - Cincinnati), would modify the Weapons Law by renaming a concealed handgun license as a concealed weapons license, allowing a concealed weapons licensee to carry concealed all deadly weapons not otherwise prohibited by law, repealing a notice requirement applicable to licensees stopped for a law enforcement purpose, authorizing expungement of convictions of a violation of that requirement, and allowing a person age 21 or older and not prohibited by federal law from firearm possession to carry a concealed deadly weapon without needing a license subject to the same carrying laws as a licensee. During its third hearing before the House Federalism Committee, the bill was amended to expand the local preemption on concealed handguns to include "deadly weapons", rather than just firearms. The League is opposed to this legislation. You can find the bill text and other important documents here: https://bit.ly/2DNudwX
 
  • SB 10 - THEFT IN OFFICE. Sponsored by Sen. Wilson (R - Maineville), would expand the penalties for theft in office based on the amount stolen and to include as restitution audit costs of the entity that suffered the loss. During its third hearing before the House Civil Justice Committee, the bill was reported unanimously out of committee. The League is supportive of this legislation. You can find the bill text and other important documents here: https://bit.ly/2V194W5
 
  • HB 119 - TRAFFIC VIOLATIONS. Sponsored by Rep. Stoltzfus (R - Minerva), would grant municipal and county courts original and exclusive jurisdiction over any civil action concerning a traffic law violation, modify certain requirements governing the use of traffic law photo-monitoring devices by a local authority, and make corrective changes to the distracted driving and texting-while-driving law. During its second hearing before the House Civil Justice Committee, proponents testified in support of the bill. The League is neutral on this legislation. You can find the bill text and other important documents here: https://bit.ly/2vD7Shk


COMMITTEE SCHEDULE FOR THE WEEK OF MAY 12, 2019
Tuesday, May 14, 2019
SENATE HIGHER EDUCATION
Tue., May. 14, 2019, 10:00 AM, North Hearing Room
Sen. Kunze: 614-466-5981
 
OPERATING BUDGET (OELSLAGER S) To make operating appropriations for the biennium beginning July 1, 2019, and ending June 30, 2021, and to provide authorization and conditions for the operation of state programs. 
 
Sixth Hearing, All Testimony
 
Report(s):  Bill Track, My Tracked Bills, OML Legislative Report, Thomas Leg Tracker
 
SENATE GENERAL GOVERNMENT AND AGENCY REVIEW
Tue., May. 14, 2019, 3:00 PM, North Hearing Room
Sen. Schuring: 614-466-0626
Agencies testifying: 
- Department of Public Safety
- Department of Transportation
- Public Testimony
 
OPERATING BUDGET (OELSLAGER S) To make operating appropriations for the biennium beginning July 1, 2019, and ending June 30, 2021, and to provide authorization and conditions for the operation of state programs. 
 
Fifth Hearing, All Testimony
 
Report(s):  Bill Track, My Tracked Bills, OML Legislative Report, Thomas Leg Tracker
 
SENATE TRANSPORTATION, COMMERCE AND WORKFORCE
Tue., May. 14, 2019, 4:30 PM, Senate Finance Hearing Room
Sen. McColley: 614-466-8150
 
FIREWORKS LAW (BURKE D) To revise the Fireworks Law. 
 
Second Hearing, Proponent Testimony, AMENDMENTS
 
Report(s):  My Tracked Bills, OML Legislative Report, Thomas Leg Tracker
Wednesday, May 15, 2019
SENATE HIGHER EDUCATION
Wed., May. 15, 2019, 10:00 AM, South Hearing Room
Sen. Kunze: 614-466-5981
 
OPERATING BUDGET (OELSLAGER S) To make operating appropriations for the biennium beginning July 1, 2019, and ending June 30, 2021, and to provide authorization and conditions for the operation of state programs. 
 
Seventh Hearing, All Testimony
 
Report(s):  Bill Track, My Tracked Bills, OML Legislative Report, Thomas Leg Tracker
 
HOUSE ARMED SERVICES AND VETERANS AFFAIRS
Wed., May. 15, 2019, 11:00 AM, Hearing Room 122
Rep. Perales: 614-644-6020
 
WAR RELIC PROTECTION (SCHAFFER T, ROGERS J) To prohibit a war relic located on public property or cemetery association property from being sold, disturbed, or otherwise disposed of, except under certain circumstances, and to designate this act as the "Ohio Veterans' Heritage Protection Act." 
 
Second Hearing, Proponent Testimony
 
Report(s):  My Tracked Bills, OML Legislative Report
 
SENATE GENERAL GOVERNMENT AND AGENCY REVIEW
Wed., May. 15, 2019, 3:00 PM, North Hearing Room
Sen. Schuring: 614-466-0626
Agencies testifying: 
- Department of Administrative Services
- Department of Taxation
- Public Testimony
 
OPERATING BUDGET (OELSLAGER S) To make operating appropriations for the biennium beginning July 1, 2019, and ending June 30, 2021, and to provide authorization and conditions for the operation of state programs. 
 
Sixth Hearing, All Testimony
 
Report(s):  Bill Track, My Tracked Bills, OML Legislative Report, Thomas Leg Tracker
Thursday, May 16, 2019
SENATE GENERAL GOVERNMENT AND AGENCY REVIEW
Thu., May. 16, 2019, 8:00 AM, TBA
Sen. Schuring: 614-466-0626
This "if needed" meeting is at the call of the chair. Time, place and agenda to be announced.
 
OPERATING BUDGET (OELSLAGER S) To make operating appropriations for the biennium beginning July 1, 2019, and ending June 30, 2021, and to provide authorization and conditions for the operation of state programs. 
 
Seventh Hearing, Invited Testimony
 
Report(s):  Bill Track, My Tracked Bills, OML Legislative Report, Thomas Leg Tracker
 
PLEASE CHECK OUR WEBSITE ON MONDAY FOR ANY CHANGES TO THE COMMITTEE SCHEDULE

Ohio Municipal League Meetings & Trainings

OML/OMAA Webinars:
Downtown Redevelopment 
May 15, 2019

Mayor's Courts-Where are we now & where do we go?
May 23, 2019 



MAO Annual Conference 
June 12th ~ 14th, 2019
OML Income Tax Seminar
July 10 ~ 12, 2019
Mayors Court Refresher Trainings
August 16 ~ Attorneys & Magistrates Only
October 25 & November 15


Ohio Municipal League

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

Website/Bulletin Issues:
Zoƫ Wade, Office Manager