June 22, 2018

OML UPDATE AT-A-GLANCE

 

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

 

OHIO SUPREME COURT OVERTURNS RULING ON TRAFFIC CAMERA CASE

This week, the Ohio Supreme Court has overturned a ruling regarding a law allowing the state to deduct Local Government Funds from any municipalities that collect fines from tickets issues by traffic cameras.

In 2014, the legislature passed SB 342, which included provisions severely restricting municipal use of traffic cameras. The City of Toledo challenged these restrictions in the Lucas County Common Pleas Court. The court found those provisions to be unconstitutional and thus prevented the law from being enforced. The state appealed this decision, and during this appeal the legislature passed a new law, the biennial budget bill HB 64. In this new law were included provisions stating that any municipality who does not comply with the previous provisions will have their Local Government Funds deducted in the amount of the fees they collect via traffic cameras. The courts found the state in contempt of their previous ruling and blocked the implementation of this new law.

 The Ohio Supreme Court decision was on the ruling that blocked the implementation of the provisions in HB 64 deducting LGF monies from non-compliant municipalities. Though the courts had ruled portions of SB 342 unconstitutional, it had failed to establish the relevant portions of HB 64 as unconstitutional as well. Now the city of Toledo must now challenge the constitutionality of the provisions in HB 64 going forward. The League will continue to monitor and report on this case as it moves through the legal process.

 

BILL CREATING FAIR PLAYING FIELD FOR LOCAL LODGING TAX GETS SECOND HEARING

This week, both opponents and proponents, including the League's Executive Director Kent Scarrett, came before the House Ways and Means Committee to testify on HB 571. The legislation, sponsored by Rep. Greenspan (R - Westlake), would specify that, for the purposes of the sales and use tax and local lodging taxes, the "price" on the basis of which a hotel intermediary must collect and remit the tax is the total amount paid by the customer for the hotel lodging, as advertised by the hotel intermediary.

Additional proponents of this bill include the Ohio Hotel and Lodging Association, the Ohio Association of Convention and Visitor Bureaus, the Ohio Township Association, the County Commissioner Association of Ohio. You can read Director Scarrett's testimony HERE, in addition to a joint written statement of support from both the League and the Ohio Township Association HERE.

The bill's supporters explained that the bill closes a loophole allowing Online Travel Agencies (OTA) to collect local lodging taxes but not remit them to the requisite local government entities. Because these companies are already collecting these taxes, the bill is simply mandating that OTAs remit the taxes they already currently collect within the price they currently charge for the rooms they sell. This means there will be no increase in price on the consumer level. The buyer will still pay the same rates for rooms booked on OTAs, and local governments have the potential to receive millions of dollars in local lodging tax that they are currently being denied.

The League will continue to monitor and report on the status of this bill as it moves through the legislative process. In the meantime, the League is asking our members to contact their state representative and express their support for this bill.    

 

BILL ALLOCATES MORE MONEY FOR MUNICIPALITIES HOSTING MAJOR SPORTS EVENTS

This week, the House passed a bill that would remove the cap on the amount of grant monies the state can allocate to a municipality for hosting a major sporting event. HB 531, sponsored by Rep. Schuring (R - Canton) and Rep. Greenspan (R - Westlake), removes limitations on the amount of sports events grants that may be awarded in a fiscal year or for a specific grant, would modify eligibility requirements for such grants, and would fund the grant program from state sales tax receipts.

Almost ten years ago, the state started a grant program that allocates grants up to $500,000 to local organizing committees, counties or municipalities who are hosting a major sporting event. In addition to removing the $500,000 cap, the bill mandates that the grant program be funded via sales taxes in a fund administered by the Ohio Department of Development Services.

A municipality hosting a major sporting event would be eligible for grant monies from this fund provided the event will generate over $250,000 in economic growth. During prior committee hearings, proponents of the bill gave examples of just how much economic activity these kinds of events can create. The Greater Columbus Sports Commission claimed that since 2000, the events they've sponsored in Columbus and Cleveland have generated over $570 million. A representative for the CEO of the Cincinnati Reds said the 2015 Major League Baseball All-Star Game created $70 million in economic impact.

This bill will help empower municipalities to bid for the opportunity to hosts these kinds of events, knowing these grant funds will help offset the cost while generating revenue for the local community. The League is supportive of this bill, and we will continue to track and report on this legislation as it heads to the Senate to begin the hearing process. 

 

FLOOR ACTION: BILLS OF MUNICIPAL INTEREST

Here are the bills of municipal interest that were passed by the House of Representatives this week:

 

 

HOUSE WORKS TO CLEAR BACKLOG OF BILLS

This week, with Rep. Ryan Smith (R - Bidwell) elected as the new Speaker of the House, representatives got to work voting on a lengthy backlog of bills that have been stalled on the House floor during the speaker's election process. Here is a list of all the bills that the House voted out of the chamber this week:

 

COMMITTEE RECAP: BILLS OF MUNICIPAL INTEREST

Here are the bills of municipal interest that received hearings in committee this past week.   

 

 

 

 

 

 

 

 

 

 

OHIO MUNICIPAL LEAGUE HOLDS SMALL CELL INFRASTRUCTURE WEBINAR

This week the League held a successful webinar on the implementation of HB 478, the bill regarding the deployment of micro wireless facilities within the municipal right-of-way. On Thursday, the League and the Ohio Municipal Attorneys Association hosted a webinar titled "Small Cell Wireless Service & placement of Facilities in the Public Way." Hundreds of participants from over 37 municipalities received crucial information regarding the contents of the new law and the implications for municipalities. We want to thank speakers Gregory J. Dunn, Christopher Miller, and Lindsay Miller of Ice Miller LLP in Columbus for an excellent presentation and for answering many important questions from webinar participants. For those who were unable to attend, the recording and the power point slides from the presentation are available for purchase. If you are interested in purchasing this presentation, you can find the order form HERE.

In addition to the webinar, the League was involved in a second educational opportunity regarding small cell infrastructure. On Monday, the City of Dublin hosted the Municipal Design Guidelines Workshop to help foster productive discussions surrounding best practices. Over the course of the entire day, including a working lunch sponsored by the League, participants heard from Christopher Miller and Lindsey Miller of Ice Miller LLP on the bill's content, examined the City of Dublin's design guidelines and directed pertinent questions to a panel of telecommunication industry representatives. We would like to thank the City of Dublin for hosting this important educational event.

 

BOWLING GREEN AND BOWLING GREEN STATE UNIVERSITY TO HOST TOWN AND GOWN SUMMIT