OML UPDATE AT-A-GLANCE
Here are the top three things you need to know from this past week:
· Lame Duck Watch: This week, OBM Dir. Murnieks testified on the proposed $2 billion FY 21-22 Capital Bill before both the House and Senate Finance Committees. The proposal includes $280 million in appropriations for the Ohio Public Works Commission to fund grants and loans for local infrastructure projects such as roads, bridges, water supply and wastewater treatment systems. You can read the full testimony HERE and read more about the proposal in the article below. We will alert our members when official language is introduced.
· On Thursday, Governor DeWine announced that he will be extending Ohio’s daily statewide 10 p.m. to 5 a.m. curfew until January 2, 2021. The curfew exempts certain essential activities, such as work or emergencies, and allows restaurants to stay open for takeout and delivery. You can read more about the Governor’s biweekly press conferences and Ohio’s continued COVID-19 response in the article below.
· On Thursday, the Bureau of Workers’ Compensation (BWC) began issuing $5 billion in dividends to Ohio employers. The rebates are intended to help offset the impact of the ongoing COVID-19 pandemic on Ohio businesses and the state’s economy. An estimated $687 million will be sent to local governments, including municipalities, counties, townships and school districts. This year, the BWC has issued a total of $8 billion in rebates to Ohio employers.
DEWINE ADMINISTRATION UNVEILS CAPITAL BILL PROPOSAL
Earlier this week, the Ohio Office of Budget and Management (OBM) Director Kim Murnieks testified before the House and Senate Finance Committees on the forthcoming Capital Bill for FY21-22. The proposed Capital Bill would appropriate $2 billion for the renovation, reconstruction and construction of the capital assets of state agencies, colleges and universities, and school districts. Additionally, the proposal would fund a program of grants and loans to local governments for infrastructure projects throughout the state.
The $2 billion in capital appropriations in the proposal, along with the $512.5 million appropriated for the Public Works Commission and the Ohio Facilities Construction Commission in SB 4, total $2.5 billion in General Revenue Fund (GRF) bond-funded appropriations for the FY21-22 capital biennium. Most of the proposed capital spending is focused on sustaining and improving the state’s current capital assets.
According to Dir. Murnieks testimony, the proposal includes $280 million in appropriations for the Ohio Public Works Commission to fund grants and loans for local infrastructure projects such as roads, bridges, water supply and wastewater treatment systems.
The proposal would also allocate a $62.5 million boost in bonding authority for the Clean Ohio Fund, which is used for greenspace, recreation and agricultural easements. The funding would be split across three agencies: $37.5 million via the Public Works Commission's Green Space Conservation program; $12.5 million for the Ohio Department of Natural Resources (ODNR) trails program; and $12.5 million for the Ohio Department of Agriculture's (ODA) easement purchase program.
Additionally, Ohio Department of Rehab and Corrections (DRC) capital budget includes $50 million in grants for construction and renovation of local jails, with priority given to multi-county projects and projects that address the most pressing public safety needs. Local officials had originally requested a $200 million investment via the capital budget as part of an overall 10-year plan to provide $1 billion in state assistance.
The proposal also includes:
• $452 million for higher education projects
• $309.5 million for K-12 buildings through the Facilities Constriction Commission
• $280.6 million for prisons
• $253 million for Natural Resources facilities
• $95.6 million for Mental Health and Addiction Services facilities
• $51 million for the Department of Administrative Services (DAS)
Official language for the capital bill has not been introduced, and we will alert our members and make the bill language available once it is introduced.
BILL CREATING LOCAL GOVERNMENT ECONOMIC DEVELOPMENT TOOL EXPANDS TAX EXEMPTIONS
This week, a substitute bill was adopted into SB 212 that expands the ability of a municipality to grant property tax exemptions in order to encourage the construction or renovation of residential properties within local neighborhoods.
SB 212, sponsored by Sen. Schuring (R - Canton), would authorize townships and municipal corporations to designate a Neighborhood Development Area (NDA) within their jurisdiction. Within the NDA, new homes and certain improvements to existing homes would be wholly or partially exempted from property taxation. The substitute bill, in addition to other changes, extends the tax exemptions to new or remodeled single or multi-family dwellings. Additionally, the threshold for qualifying renovation projects has been reduced from $10,000 to $5,000.
The League thanks Sen. Schuring for recognizing the need for more permissive tools that give municipalities increased opportunities to foster economic development within their local communities. SB 212 will enable municipalities to increase the amount of affordable housing within their neighborhoods and invest in “placemaking”, attracting both a workforce and businesses to their city or village. The committee is expected to vote on the full bill next week.
OHIO COVID-19 RESPONSE UPDATE
· As of Thursday afternoon, Ohio is reporting 531,850 cases of coronavirus, 7,298 deaths, 31,142 hospitalizations and 5,090 ICU admissions.
o Level 4 (Purple): Medina, Portage, Richland, Stark, and Summit
o Level 3 (Red): Franklin, Morgan Noble, Harrison, and Washington
o Watchlist Counties: Cuyahoga, Fairfield, Madison, Ashland, and Guernsey
· Governor DeWine announced that the Ohio Department of Health (ODH) will be extending the 10 p.m. to 5 a.m. statewide curfew until January 2, 2021.
· The curfew does not apply to those going to and from work, those who have an emergency, or those who need medical care. The curfew is not intended to stop anyone from getting groceries or going to the pharmacy. Picking up carry-out or a drive-thru meal and ordering for delivery will be permitted, but serving food and drink within an establishment must cease at 10 p.m. The extended order can be found at coronavirus.ohio.gov.
· The Ohio Department of Health will issue a variance to the curfew for specific sporting events in Ohio. The start times of these games are dictated by national television contracts, and as a result, the games would not be finished until after the 10 p.m. curfew.
· Governor DeWine has urged Congress to pass another COVID-19 relief package before leaving Washington for the holiday recess. You can view his entire statement HERE.
· The Ohio Department of Education continues to report limited spread of COVID-19 in a classroom setting, but an increase of community spread from informal gatherings outside of school. The department also tracks how many districts are hosting in-person, hybrid, or remote learning.
Business and Jobs Update:
· Lt. Governor Husted announced the launch of the DataOhio Portal, which delivers datasets and interactive visualizations to Ohioans. This portal delivers unprecedented access through an innovative, data-sharing platform for state agencies and their partners.
· Governor DeWine and Lt. Governor Husted announced the approval of assistance for 16 projects set to create 4,183 new jobs and retain 1,051 jobs statewide. Collectively, the projects are expected to result in more than $240 million in new payroll and spur more than $864 million in investments across Ohio.
· According to the Ohio Department of Job and Family Services (ODJFS), Ohioans filed 36,327 initial claims for unemployment benefits last week, up from 27,750 the week before.
· Over the last 38 weeks, ODJFS reported distributing more than $7.4 billion in unemployment compensation payments to more than 859,000 Ohioans. Of the more than 1 million applications the agency has received, about 95% have been processed, the agency said. The state has issued more than $7.2 billion in Pandemic Unemployment Assistance (PUA) payments to more than 727,000 Ohioans.
REGISTRATION OPEN FOR FIRST-EVER VIRUTAL TAX SEMINAR IN 2021
The League is excited to announce that we will be hosting our first-ever virtual Municipal Income Tax Seminar from Tuesday, January 12 through Thursday, January 14, 2021.
Our virtual seminar will provide municipal tax administrators across the state the opportunity to attend webinars covering timely topics. Webinars will cover issues related to the COVID-19 pandemic, including the impact HB 197 has on withholding and refunds and how a municipality can handle the issue of projecting revenue. The seminar will also feature presentations from the Attorney General’s office on collections, as well as other practical topics, such as how to find taxpayers that have moved.
The seminar will also feature two Q&A panels, giving participants the opportunity to submit questions ahead of the seminar to be answered by expert panelists. Attendees can submit questions for two Thursday webinars. The first is entitled “Net Operating Loss, Form 4797 and Other Questions from Tax Administrators”, and the second is a presentation on municipal net profit collections and the Ohio Business Gateway by the Ohio Department of Taxation. Please submit your questions to Director of Communications Ashley Ringle at aringle@omlohio.org by Tuesday, January 5, 2021.
To access the agenda and to register for this important event, click HERE. We hope you will join us!
REGISTRATION OPEN FOR MAYORS COURT TRAINING
The League will be hosting a live interactive webinar for Mayors Court Training from Thursday, January 14, 2021 to Friday, January 15, 2021. To find more information and to register, click HERE.
OHIO EPA TO HOST WEBINAR ON LEAD SERVICE LINE REPLACEMENT FUNDING
The Ohio EPA will be hosting a webinar on Lead Service Line Replacement (LSL) Funding. This webinar provides a brief overview of a water system’s guide to principal forgiveness funding. Lead Service Line replacement projects are now eligible for $1 million in principal forgiveness funding, but only until June 2022. According to a 2016 study from American Water Works Association, approximately 6.1 million homes across the country receive drinking water through lead pipes, known as lead service lines.
The webinar will be held on December 15 from 2:00 p.m. to 3:00 p.m. To learn more and to register, click HERE.
BILLS OF MUNICIPAL INTEREST PASSED BY THE LEGISLATURE
Here are the bills impacting municipalities that were passed by the Ohio House and Senate this week:
· SB 39 – Mixed-Use Development Projects. Sponsored by Sen. Schuring (R – Canton), would authorize an insurance premiums tax credit for capital contributions to transformational mixed-use development projects and to modify the law governing commercial real estate broker liens. The bill was amended on the floor to reinstate a nonrefundable income tax credit for contributions to statewide political campaigns, along with an emergency clause to allow the reinstatement to apply to tax years beginning in 2020. The bill was then voted out of the full House 82-1. The League is very supportive of this bill and thanks the Ohio House for passing legislation that will provide municipalities a permissive tool for economic development. The bill now heads back to the Senate for concurrence on the changes.
· 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. The Senate passed the bill unanimously and now heads back to the House for concurrence on previous changes made in committee.
- HB 312 – Crowdfunding (Powell (R – Laura), would permit intrastate equity crowdfunding under certain circumstances. The bill had previously been amended in committee to change appropriation authority for three projects before an upcoming Controlling Board meeting, and was amended again on the Senate floor to appropriate $10 million in revolving loan funds for an Ohio-based malt beverage producer. The bill then passed unanimously and the bill now heads back to the House for concurrence on the changes.
- HB 7 – Water Fund. Sponsored by Rep. Ghanbari (R – Perrysburg) and Rep. Patterson, (D - Jefferson), would create the H2Ohio Trust Fund for the protection and preservation of Ohio's water quality, create the H2Ohio Advisory Council to disburse money from the Fund for water quality programs, and create the H2Ohio Endowment Board to make recommendations to the Treasurer of State regarding the issuance of securities to pay for costs related to the purposes of the Fund. The bill had previously been amended in committee to include language from SB 2 on data collection and changes to an advisory committee and to change regulations regarding the use of anerobic digesters for managing farm waste. The Senate passed the bill unanimously and it now heads to the House for concurrence on the changes.
COMMITTEE RECAP: BILLS OF MUNICIPAL INTEREST
Here are the bills impacting municipalities that received committee hearings this week:
· HB 317 – Firearm Sales. Sponsored by Rep. Miller (D – Columbus), would enact the Protect Law Enforcement Act to require a firearm transfer to be made through a dealer, through a law enforcement agency, or pursuant to a specified exception, and require a background check when a firearm is transferred. During its first hearing before the House State and Local Government Committee, the bill’s sponsor explained that the legislation is intended to hold unlicensed gun sellers in Ohio to the state standards as federally-license dealers while also requiring a background check. The League is still looking into this legislation.
· SB 360 – Firearms Dealers. Sponsored by Senate President Obhof (R – Medina) and Sen. Manning (R – N. Ridgeville), would generally bar public officials from prohibiting all federally licensed firearms dealers in the state or a specified geographic area from the commercial sale or transfer of firearms or their components or ammunition. During its second hearing before the House State & Local Government Committee, proponents including the Buckeye Firearms Association and the NRA testified in support of the bill. The League is still looking into this legislation.
· HB 253 – Fireworks. Sponsored by former Rep. Don Manning and Rep. O'Brien (D – Warren), would revise the Fireworks Law. During its fourth hearing before the Senate Transportation, Commerce & Workforce Committee, no testimony was held on the bill. The League is still looking into this legislation.
· HB 444 – Township Laws. Sponsored by Abrams (R – Harrison) and Rep. Baldridge (R – Winchester), would make various changes to township law. During its second hearing before the Senate Local Government, Public Safety & Veterans Affairs Committee, a number of proponents, including the Ohio Township Association, submitted written testimony in support of the bill. The League is neutral on 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 third hearing before the Senate Local Government, Public Safety & Veterans Affairs Committee, a substitute bill was adopted that clarified provisions regarding municipal immunity. The League is neutral on 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 second Senate General Government & Agency Review Committee, proponents including the Ohio Chamber of Commerce, the Ohio Manufacturers’ Association and NFIB testified in support of the bill. The League is still looking into this legislation.
· HB 796 – Duty to Retreat. Sponsored by Rep. Koehler (R – Springfield), would expand the locations at which a person has no duty to retreat before using force under both civil and criminal law. During it second hearing before its first hearing before the House Civil Justice Committee, opponents including the Moms Demand Action and the Ohio Coalition Against Gun Violence testified against the bill. The League is neutral on this legislation.
· HB 798 – Nuclear Subsidies. Sponsored by Rep. Hoops (R - Napoleon), would delay for one year the charges and payments for nuclear resource and renewable energy credits, and revise certain other laws, enacted by H.B. 6 of the 133rd General Assembly, amend Power Siting Board law and other electric utility law, to prohibit certain restrictions on solar energy systems, and declare an emergency. During its first informal hearing before the Senate Energy and Public Utilities Committee, the bill’s sponsor testified in support of the bill. The League is neutral on this legislation.
· HB 772 – Energy Laws. Sponsored by Rep. Romanchuk (R – Mansfield), would make changes regarding electric utility service law, to repeal certain provisions of H.B. 6 of the 133rd General Assembly, and declare an emergency. During its first informal hearing before the Senate Energy & Public Utilities Committee, the bill’s sponsor testified in support of the bill. The League is neutral on this legislation.
· HB 674 – Liquor Laws. Sponsored by Rep. Hillyer (R – Urichsville), would revise specified provisions of the liquor control law and declare an emergency. During its fourth hearing before the Senate Agriculture & Natural Resources Committee, a substitute bill was adopted that removes much of the bill’s original langue, leaving provisions that made the General Assembly the sole regulator of alcohol in the state and allowing the Division of Liquor Control to adopt rules though JCARR permitting alcohol delivery. The League is still looking into this substitute bill.
· HB 425 – Concealed Weapons. Sponsored by Rep. Wiggam (R - Wooster), would modify the requirement that a concealed handgun licensee must notify a law enforcement officer that the licensee is authorized to carry a concealed handgun and is carrying a concealed handgun when stopped. During its second hearing before the Senate Government Oversight & Reform Committee, proponents including the NRA’s Institute for Legislative Action and the Buckeye Firearms Association testified in support of the bill. The League is neutral on this legislation.
· SB 383 – Firearm Laws. Sponsored by Sen. Johnson (R - McDermott), would enact the Ohio Duty to Retreat Act providing an expansion of the locations at which a person has no duty to retreat before using force under both civil and criminal law. During its second hearing before the Senate Government Oversight & Reform Committee, the bill was voted out of the committee and will head to the Senate floor for a future vote before the full Senate. The League is neutral on this legislation.
