OML UPDATE AT-A-GLANCE
Here are the top three things you need to know from this past week:
· On Monday, the Treasury Department’s Office of Inspector General (OIG) put out an updated FAQ document regarding the reporting and recordkeeping of Coronavirus Relief Funds (CRF) received by municipalities through the Congressionally-passed CARES Act. The most important part of the updated FAQ for municipalities is Question 86, regarding the recoupment of funds. You can access the full document HERE and read more about the important change impacting municipalities in the article below.
· This week, the Senate Democratic Caucus re-elected Sen. Kenny Yuko (D - Richmond Heights) as minority leader for the 134th General Assembly. Sen. Cecil Thomas (D - Cincinnati) was also re-elected as assistant minority leader. Sen. Nickie Antonio (D - Lakewood) was elected as minority whip and Sen. Tina Maharath (D - Canal Winchester) was elected as assistant minority whip. Last week, the House Democratic Caucus re-elected Rep. Emilia Sykes (D-Akron) as minority leader for the 134th General Assembly. The also elected Rep. Kristin Boggs (D-Columbus) as assistant minority leader, Rep. Paula Hicks-Hudson (D-Toledo) as minority whip, Rep. Richard Brown (D-Canal Winchester) as assistant minority whip, and Rep. Phil Robinson (D-Solon) as caucus chair. The League congratulates all who were elected to minority leadership, and we look forward to working with each of them in the upcoming General Assembly.
· Lame Duck Watch: The legislature is poised to act as soon as next week on a number of bills impactful to Ohio municipalities. The legislative topics range from PTSD coverage for first responders, the legalization of firework displays, changes to “duty to retreat” statues and a forthcoming Capital bill. Read more about these bills in the article below.
· This week, Governor DeWine vetoed SB 311, which would restrict emergency orders from the Department of Health (ODH) and would allow the legislature to rescind certain ODH orders or rules. In his veto message, Gov. DeWine stated that the legislation was not “in the best interest of protecting the health and safety of all Ohioans.” You can read the full bill analysis HERE.
LAME DUCK SPOTLIGHT: BILLS OF MUNICIPAL INTEREST
As lame duck continues, legislation moves quickly and can sometimes fall under the radar. To ensure our members are up to date on legislation that impacts municipalities, we want to bring to your attention several bills moving quickly through the legislative process.
This week, HB 253, a bill regarding the legalization of fireworks was dramatically amended this week, giving local governments a limited scope in how they can regulate fireworks within their jurisdiction. The legislation, sponsored by former Rep. Don Manning and Rep. O'Brien (D - Warren), was initially drafted to bring Ohio in line with other states and repeal a ban preventing residents from using consumer fireworks on private property.
The bill was amended to instead create an opt-in system in which local governments would be required to pass local legislation in order to legalize fireworks within their jurisdiction. Additionally, local governments would only be allowed to legalize fireworks usage for July 3,4 and 5 of each year. The Senate Transportation, Commerce & Workforce Committee is expected to vote the bill out next week.
Additionally, there are three bills currently being discussed by the legislature that would provide coverage for first responders diagnosed with PTSD. HB 308, sponsored by Rep. Patton (R – Strongsville), provides coverage through the Bureau of Workers’ Compensation. HB 308 passed the House in February and had a fourth hearing in Senate committee last month.
The other two bills received first hearings in their respective committees this week, which you can read more about in the committee recap below. SB 384, sponsored by Sen. Hackett (R – London), would provide coverage through the Ohio Department of Health. HB 556, sponsored by Rep. Antani (R – Miamisburg), would provide coverage through the Department of Public Safety. The League is working with leadership to limit the duration of the coverage and to ensure state financial resources provide the seed money to expand this new coverage. We expect the legislature to take action on one of these bills before the end of lame duck.
There are two bills that would expand the locations at which a person has no duty to retreat before using force. HB 796, sponsored by Rep. Koehler (R – Springfield), was introduced on November 24 and received a first committee hearing this week. The second bill, SB 383, sponsored by Rep. Johnson (R – McDermott), was introduced on November 17 and received a second committee hearing this week. The bills would allow an individual with a concealed carry (CCW) license to use deadly force in an instance of self-defense, defense of another, or defense of an individual’s residence if the person is in a place where they are lawfully allowed to be. Both bills are on a legislative “fast track” and are expected to be passed before the end of this session.
Finally, leadership in House and Senate, as well as the Governor, have recognized the importance of a Capital bill to stimulate the economic and to address urgent infrastructure projects throughout the state. The legislature still has stated the Capital bill is a priority and we anticipate a bill will be introduced next week. We will continue to keep our members updated as the lame duck session continues.
U.S. TREASURY OFFICE OF INSPECTOR GENERAL RELEASES UPDATED CARES ACT FAQ
The Treasury Department’s Office of Inspector General (OIG) put out an updated FAQ document regarding the reporting and recordkeeping of Coronavirus Relief Funds (CRF) received by municipalities through the Congressionally-passed CARES Act. The National League of Cities (NLC) has summarized the information municipalities should be aware of. In the document attached in the bullet point above, all the changes from the previous version are highlighted.
The most important part of the updated FAQ is Question 86, regarding the recoupment of funds. The OIG laid out two fact patterns of how it will deal with funds that were used in violation of this section of the CARES Act.
Before December 30, 2020:
o the prime recipient would need to either recover such funds and redeploy them for COVID-19 related expenditures or demonstrate that other eligible expenses incurred during the covered period of March 1 through December 30, 2020 would qualify as allowable. The prime recipient can dispute the determination of the OIG. Once Treasury OIG makes a final determination, it will request a written response from the prime recipient to include the corrective action(s) to remedy the noncompliance.
· After December 30, 2020:
o the Treasury OIG may (1) seek recoupment of funds, or (2) allow the prime recipient to demonstrate that other eligible expenses incurred during the covered period of March 1 through December 30, 2020, would qualify as allowable.
o money that will be recouped will be done so through he the Treasury’s Bureau of Fiscal Services – Centralized Receivable Services.
o A Prime Recipient will have the opportunity to enter into a repayment agreement. The Treasury Department’s Fiscal Services will follow the normal debt collection practices.
Note: Number one says “seek recoupment of funds” then it has a comma and a disjunctive, “or”, followed by a second stipulation that includes the term “prime recipients”, a term absent from the first stipulation. What is unclear from this reading is whether or not “seek recoupment of funds” applies to non-prime recipients. We are seeking clarification from the Treasury’s OIG on this point today.
· Question 48 deals with payroll costs to individuals, and any other payments to individuals. This question answers how these payments should be categorized.
· Question 49 deals with the non-federal cost share portion of covered CRF funds be reported for monies FEMA has determined to be eligible under the Stafford Act.
o Note: In the example, it talks about prime recipients. Only 36 cities (those with more than 500,000 residents) in the U.S. were prime recipients.
NATIONAL LEAGUE OF CITIES (NLC) SURVEY HIGHLIGHTS CRITICAL NEED FOR MORE FEDERAL RELIEF FUNDS FOR LOCAL GOVERNMENTS
The National League of Cities (NLC) has released the results of a new survey of over 900 cities, towns and villages outlining the widespread effect COVID-19 on municipalities across the country.
According to the survey, 71% of municipalities believe their condition will worsen if Congress does not pass another coronavirus relief package. Roughly 70% of respondents stated that their financial health has been negatively impacted by the pandemic, with 90% of those municipalities experiencing decreased revenues and 76% dealing with increased expenses.
The survey received responses from municipalities of all sizes. 89% of large cities, 71% of mid-sized cities, and 52% of small cities stated that they will face significant challenges in providing necessary local services to their residents.
Results show that municipalities across the nation have seen revenues decline by 21% on average since the start of the pandemic, while additional expenditures such as personal protective equipment (PPE), remote work technology and overtime pay for essential employees have increased 17%. Municipalities are facing approximately a $90 billion budget gap for just 2020.
Despite the previous local aid revenues distributed by Congress, 29%, which is an estimated 6,000 municipalities across the country, did not receive any aid or funding from the CARES Act Coronavirus Relief Fund (CRF). Only 7% of municipalities that did receive CRF funds stated that the revenues adequately addressed revenue shortfalls and unforeseen expenses. 37% of municipalities indicated that they have made cuts to their municipal workforce such as hiring freezes, wage holds, layoffs and furloughs, reduced hours or forced early retirement.
You can access an infographic summarizing the survey results HERE as well as a legislative one-pager HERE.
We urge Ohio’s municipal leaders to contact their Congressional delegation and use the data gathered by the survey to demonstrate the critical importance of Congress passing another COVID-29 relief package that include substantial, flexible funds for local governments. America’s economy cannot recover unless municipal economies recover. Local leader must advocate for immediate federal funding to help ensure Ohio’s cities and villages can hep their regional economies recover from the economic fallout of this pandemic while continuing to deliver the necessary quality local services Ohioans deserve.
UPDATE ON POTENTIAL FEDERAL COVID-19 RELIEF PACKAGE
We want to once again thank Irma Esparza Diggs, Senior Executive and Director of Federal Advocacy for the National League of Cities (NLC), for providing continuing updates on the efforts of the federal government to reach an agreement on additional assistance to state and local governments. Below is a summary of NLC’s report on the latest information regarding where the negotiations stand.
Bipartisan Framework Proposed
This week, a bipartisan group of senators released a $908 billion framework in hopes of jumpstarting negotiations at the leadership level regarding a next COVID-19 relief package before Congress recesses for the holidays.
The bipartisan Senate framework proposes to provide $160 billion to state, local and tribal governments. The allocation would follow the SMART Act, a proposal introduced last summer by Senators Cassidy and Bob Menendez (D-N.J.). The SMART Act had three tranches through which the money would be allocated by thirds: one-third for population, one-third for infection rate and one-third lost revenue. According to the new framework, the infection rate tranche would be removed, allocating the money through two tranches with a 50/50 split.
The senators who have introduced this framework have stated that this relief package would be a bridge to the first quarter of 2021 when the next Administration will be in place.
McConnell Proposes Alternative Plan
Senate Majority Leader Mitch McConnell (R-Ky.) has released his own proposal, which contains a provision that extends the deadline to September 30, 2021 for spending already appropriated money in the Coronavirus Relief Fund (CRF). No additional flexibility or funding would be allocated. The White House has indicated that it is willing to sign this proposal. Democratic leadership in the Senate have stated that McConnell’s proposal is a non-starter.
OHIO CORONAVIRUS RESPONSE UPDATE
· As of Thursday afternoon, Ohio is reporting 446,849 cases of coronavirus, 6,753 deaths, 28,281 hospitalizations and 4,814 ICU admissions.
o Level 4 (Purple): Medina, Portage, Richland, Stark, and Summit
o Level 3 (Red): Franklin and Morgan
o Watchlist Counties: Cuyahoga, Fairfield, and Madison
o Dropped off the Watchlist (now Red): Adams, Clermont, Hamilton, Trumbull, Warren, and Wood
· Governor DeWine announced a new program to help improve indoor air quality and reduce the transmission of COVID-19 at senior living facilities, including nursing homes, assisted living centers, and adult day centers. The $28 million program (funded through CARES Act funding) was created to address indoor air quality through HVAC inspections, portable air filtration systems, new filtration systems, maintenance on current systems, and other interventions. Eligible recipients can receive up to $15,000.
· The program was approved by the Bureau of Workers’ Compensation (BWC) Board of Directors at a special meeting Wednesday. BWC will administer the program and applications are available at bwc.ohio.gov. Additional questions about the program should be emailed to grants@bwc.state.oh.us.
· Governor DeWine announced that Ohio's Retail Compliance Unit Dashboard is now available online at coronavirus.ohio.gov. The dashboard includes information on the number of retailers visited by agents, how many customers and employees were properly wearing masks, how many establishments had proper signage, and the number of warnings issued. The dashboard will be updated each Thursday.
· Ohioans filed 27,750 initial jobless claims and 256,776 continued jobless claims last week, according to statistics the Ohio Department of Job and Family Services (ODJFS) reported to the U.S. Dept. of Labor today. In addition, 232,259 Ohioans received Pandemic Unemployment Assistance (PUA) last week.
· Over the last 37 weeks, ODJFS has distributed more than $7.4 billion in unemployment compensation payments to more than 855,000 Ohioans. Of the more than 1 million applications the agency has received, about 95% have been processed, with about 5% pending. In addition, ODJFS has issued more than $7.2 billion in PUA payments to more than 710,000 Ohioans.
OHIO EPA TO HOST WEBINAR ON COMMUNITY RECOGNITION PROGRAM
The Ohio EPA (OEPA) will be holding a webinar on Wednesday, December 9 on OEPA’s new Encouraging Environmental Excellence for Communities (E3C) Recognition Program. The program was established to recognize communities across Ohio for their efforts in becoming more sustainable stewards of the environment and their community. The webinar will be held from 10 a.m. to 11 a.m. To find out more and to register, click HERE.
OHIO HOUSE PASSES BILL IMPACTING MUNICIPALITIES
Here is the legislation based by the Ohio House this week that will have affect municipalities:
· HB 220 – Government Blockchain. Sponsored by Rep. Carfagna (R – Genoa Twp.), would allow a governmental entity to utilize distributed ledger technology, including blockchain technology. The House passed this bill by a vote of 88-2. The League is supportive of this legislation.
· HB 374 – Massage Therapy. Sponsored by Rep. Manchester (R - Lakeview), would make changes to the massage therapy licensing law. The House passed this bill by a vote of 81-4. The League is neutral on this legislation.
COMMITTEE RECAP: BILLS OF MUNICIPAL INTEREST
Here are the bills impacting municipalities that received committee hearings this week:
· HB 190 – Broadband Program. Sponsored by former Rep. Ryan Smith, would create the Ohio Broadband Development Grant Program, to encourage the Department of Transportation to work with telecommunications providers to lay fiber optic cable, and make an appropriation. During its first hearing before the House Finance Committee, sponsor testimony given by Rep, Stephens (R – Kitts Hill) stated that the program is necessary because the present circumstances mean that access to technology is needed more than ever before. The League is neutral on this legislation.
· HB 13 – Broadband Expansion. Sponsored by Rep. Carfagna (R – Genoa Twp.) and Rep. O'Brien (D - Warren), is regarding broadband expansion, including access to electric cooperative easements and facilities and railroad rights of way, and make an appropriation. During its third hearing before the Senate Energy and Public Utilities Committee, opponents such as Empowering Youth, Exploring Justice testified in opposition to the bill. The League is supportive of this legislation.
· HB 556 – PTSD Coverage. Sponsored by Rep. Antani (R – Miamisburg), is concerning compensation, medical benefits, and disability retirement for peace officers, firefighters, and emergency medical workers diagnosed with post-traumatic stress disorder arising from employment without an accompanying physical injury. During its first hearing before the House Insurance Committee, the bill’s sponsors stated that the legislation would provide coverage of PTSD outside of the Bureau of Workers’ Compensation and instead through the Department of Public Safety. The League is still looking into this legislation.
· HB 421 – Local Government Immunity. Sponsored by Rep. Smith (R -Germantown) and Rep. Blair (D - Weathersfield), would provide a municipal corporation or county immunity from civil and criminal liability in any action that arises from a hospital police officer acting directly in the discharge of the person's duties as a police officer and that occurs on the premises of the hospital or its affiliates or subsidiaries or elsewhere in the municipal corporation or county. During its second hearing before the Senate Local Government, Public Safety and Veterans Affairs Committee, a proponent from the UC Health public safety division director testified in support of the bill. The League is neutral on this legislation.
· HB 450 – Fiscal Officers. Sponsored by Rep. Stephens (R – Kitts Hill), would require fiscal officers of certain political subdivisions to provide certificates of transition to their successors when leaving office and to modify language regarding the duty of a treasurer of a board of education to deliver to the treasurer's successor all papers related to the affairs of the district. During its third hearing before the Senate Local Government, Public Safety and Veterans Affairs Committee, the bill was amended to enable certain audits to be provided at a lower cost. The League is neutral on this legislation.
· HB 312 – Crowdfunding. Sponsored by Rep. Powell (R - Laura), would permit intrastate equity crowdfunding under certain circumstances. During its fourth hearing before the Senate Finance Committee, no testimony was given on the bill. The League is supportive of this legislation.
· SB 384 – PTSD Coverage. Sponsored by Sen. Hackett (R – London), is concerning compensation, medical benefits, and disability retirement for peace officers, firefighters, and emergency medical workers diagnosed with post-traumatic stress disorder arising from employment without an accompanying physical injury. During its informal hearing before the Senate General Government and Agency Review Committee, the bill’s sponsor explained that the bill would give first responders PTSD coverage through the Ohio Department of Health. The League is still looking into this legislation.
· HB 319 – Firearms Conduct. Sponsored by Rep. West (D – Canton) and Rep. Miller (D – Columbus), would restore local authority to generally regulate firearms related conduct. During its first hearing before the House State and Local Government Committee, the bills sponsors explained that the intent of the bill is to allow local control over certain gun-related measures as rural and urban areas face different concerns and challenges with regard to firearms. The League is supportive of this legislation.
· SB 359 – Assault. Sponsored by Sen. Schaffer (R – Lancaster), is regarding a civil action for a law enforcement officer based on a civil rights abridgement or false complaint, and modifications to "assault," "felonious assault," and "intimidation" regarding conduct committed because a person is or is perceived to be an emergency service responder, public servant, family member, or co-worker. During its second hearing before the Senate Judiciary Committee, a substitute bill was adopted that, among other changes, criminalizes blocking a roadway and destroying government property as well as harassing someone at a public accommodation. The League is looking into the substitute bill.
· SB 212 – Property Taxation. Sponsored by Sen. Schuring (R – Canton), would authorize townships and municipal corporations to designate areas within which new homes and improvements to existing homes are wholly or partially exempted from property taxation. During its fourth hearing before the House Ways and Means Committee, a substitute bill was offered, but not adopted. Changes in the substitute bill include allow property tax exemptions within an Neighborhood Development Area (NDA) for remodels of existing homes that cost $5,000 rather than $10,000 and requires any overlapping school districts to approve a tax exemption percentage that exceeds 75%. The League is supportive of this legislation.
