OML UPDATE AT-A-GLANCE
Here are the top things you need to know from this past week:
· Yesterday, in a unanimous decision, the Ohio Supreme Court upheld a 2019 state law allowing the state to reduce a municipalities Local Government Fund (LGF) distribution equal to the amount of revenue collected through the use of red light cameras as a traffic safety resource. The court also upheld the requirement that municipalities place deposits in advance when taking civil action to enforce citations issued as result from the use of traffic cameras, with the municipal court. The supreme court rejected the ruling by the Eight District Court of Appeals which found the language on deposits and LGF deductions to be in violation of home rule, as was argued by the village of Newburg Heights and the city of East Cleveland. A copy of the ruling is HERE.
· In Wednesday’s Ohio House voting session, the lower Chamber passed HB 377, the Coronavirus Local Fiscal Impact Bill, sponsored by Reps. Hall (R- Madison Twp.) and Swearingen (R- Huron). The legislation is the vehicle for the second and final distribution of the remaining $422 million of ARPA funding to Ohio’s NEUs. The bill has been sent to the Ohio Senate for their consideration, which has already begun. Earlier this week, the Senate Finance committee held a first, informal hearing on the bill, in anticipation of the House passing the bill this week.
· HB563, legislation prohibiting the enforcement of current and future municipal regulation of short-term rental enterprises (AirBNB/Vrbo) did not appear on the Ohio House calendar for a floor vote this week.
· Although the Ohio House Insurance Committee met on Wednesday, HB 512, legislation increasing employer contribution rates for Ohio Police and Firefighter Pension Fund (OP&F) to 26.5% across the board in five years was not scheduled for a third hearing to receive opponent testimony. The leadership of OP&F provided the league with a communication to interested parties and members of the Ohio legislature emphasizing, in addition to other points, that the legislature has all the information they need to pass the bill and to “get on with it”. The fund also provided a spreadsheet detailing information related to the fund’s investment history. You can find this information HERE. The league encourages our members to continue to communicate concerns they may have with this proposal to members of the Ohio House and Senate and to share with them the impact it will have to already disrupted local budgets and existing safety forces.
· The Ohio House passed legislation, HB 422, Reps. Frazier, R-Newark and West D-Akron this week, which adds to the increasing list of legislative proposals this session preempting Ohio’s Municipal Home Rule authorities. The proposal changes a municipalities ability to recover unpaid charges for municipal utility services, sewerage services, and for unpaid charges for collection or disposal services; changes the lien process for municipalities in an effort to recover payment due to the municipality and lastly, removes the local appeals process by only providing the Environmental Review Appeals Commission (ERAC) via the OEPA in Columbus, to address municipal service billing and payment complaints and municipal services lien appeals. The bill’s analysis is HERE. The league is opposed to this bill and will report on any progress the legislation makes in the Ohio Senate. Read more about the bill below.
· This week the Senate Energy & Public Utilities Committee held a third hearing on SB 193, legislation introduced by Sen. Williams (D-Cleveland) which would prohibit municipalities from placing a tax lien with the county auditor on property with delinquent water and sewer service charges. The league along with the County Commissioners Association of Ohio (CCAO) shared with committee members our members opposition to the proposal. The league’s testimony and the bill’s analysis are HERE. We appreciate the league members who provided written opposition testimony as well. We will alert our members if the Senate acts further on this legislation.
· To address concerns that non-citizens may be granted the opportunity to participate in Ohio municipal elections under powers granted through Article XVIII of the Ohio Constitution’s Home Rule authorities, this week members of the Ohio House and Senate introduced Joint Resolutions (HJR4, Rep. Edwards R-Nelsonville; SJR6, Sen. Blessing R-Cincinnati) that would prohibit municipalities from amending their charter to allow non-citizens to qualify as municipal electorates. At the request of Sen. Blessing, the Legislative Service Commission (LSC) prepared a “white paper” explaining what they perceive as a conflict between municipal Home Rule authorities via Charters and the Ohio Constitution that states non-citizen do not qualify as an eligible electorate in Ohio. The LSC document and a copy of SJR6 is HERE.
· Governor DeWine announced on Wednesday the awarding of $3.6 million in funding to 41 local law enforcement agencies to help their drug task forces enforce the state’s drug laws and combat illegal drug activity. Grants from the 2022 Ohio Drug Law Enforcement Fund will support drug task forces that impact 67 counties on issues of drug trafficking, pharmaceutical diversion, and other organized criminal activity associated with the drug trade. The program, which is administered through the Office of Criminal Justice Services, is also intended to help local entities enhance the safety of Ohioans through multi-jurisdictional task forces. The list of communities that were awarded the funding is HERE. Read more in the article below.
· Monday afternoon U.S. Secretary of Housing and Urban Development Marcia Fudge visited Columbus to announce plans by the Biden Administration to invest $35 billion nationally through the Housing Supply Action Plan, a new federal initiative created to close the housing supply gap in five years. The plan includes $25 billion to build up to 500,000 new housing units over the next ten years and $10 billion in incentives for communities that alter their zoning codes to pave the way for more housing. You can read the full proposal, which is part of President Biden’s budget proposal to Congress, HERE.
· This week, the Ohio Senate Finance Committee amended HB 338, legislation originally addressing issues related to motorcycle safety education matters with $700 million in federal infrastructure funding. The bill was then passed out of committee and later approved by the full Senate and the concurred by the House. The bill now awaits the Governor’s signature. The funding will be directed to ODOT as part of the state’s portion of the new, federal Infrastructure Investment and Jobs Act. The bulk of the funding, $672.6 million, will be directed to the Highway Operating Fund for highway construction and public transportation funding. Read more below for more details on specific funding projects.
· The OneOhio Recovery Foundation Board of Director’s held their first meeting with the 19 regional members tasked with the responsibility to identify a disbursement timetable for OneOhio’s $444.4 million share of the $808 million settlement against opioid manufacturers and distributors Cardinal Health, McKesson and AmerisourceBergen. The foundation board consists of 29 members, 19 of whom represent regions across the state who will be working with the settlements framework which stipulates that 30% of any settlement with opioid firms would go to communities, to address the needs of residents. Another 55% would be set aside for the foundation to develop and oversee funding and planning for local community support. The final 15% would go to the state to leverage statewide buying power for prevention, treatment and recovery services. The OneOhio MOU, explaining the issues related to the creation of the opioid settlement foundation and mission is HERE.
· Many of our nation’s cities and villages have developed action plans focused on how they can decrease greenhouse gas emissions, mitigate the impacts of climate change, and address environmental justice concerns in their communities. The National League of Cities (NLC) recently examined 50 such climate action, sustainability, and resilience plans to better understand the major themes and concepts cities are including to make their communities greener. “The Top 5 Ways Cities Are Addressing Climate Change” is a good resource for local leaders working to develop new action plans or update existing ones. The report can be found HERE.
OHIO HOUSE ADVANCES LEGISLATION IMPEDING MUNICIPAL UTILITY COLLECTION EFFORTS/VIOLATING HOME RULE
On Wednesday, the Ohio House passed HB 442, legislation by Rep. Frazier (R-Newark) and West (D-Canton) which presents significant challenges to the ability of municipalities to support water infrastructure and interferes with municipal Home Rule authorities, in addition to other things. Specifically, the bill switches the responsibility away from a landowner and places it on tenants of rented property for unpaid utility bills such as water and sewer. The proposal makes other changes to a municipal corporation’s ability to recovery unpaid charges and moves the administrative appeals process for challenges to municipal billing, payment complaints and the placement of liens away from the current local process to one run by the Ohio Environmental Protection Agency’s (OEPA) Environmental Review Appeals Commission (ERAC) in Columbus, if the disputed charges exceed $300.
The legislation would also add additional challenges to the operation of municipal utility operations by:
· Mandating municipalities pay attorney fees if an appeal is unsuccessful.
· Requiring a municipal authority to provide additional verification to the county auditor and give notice to the property owner before a municipal lien may be placed on a property.
· Exempts a county that operates as a municipal services provider from the municipal services improper billing requirements, the municipal services improper billing appeals process, and the municipal lien appeals process created by the bill.
In addition to exposing municipalities to large attorney fees, the league opposes the bill for numerous reasons, including:
· The legislation on its face violates municipal Home Rule authority under Article XVIII, sections 4 & 6 of the Ohio Constitution, specifically authorizing Ohio’s municipalities to own and operate utilities.
o Municipalities have developed local processes for handling billing disputes and other issues related to tenant billing. The bill would preempt these local practices that have proven effective in collecting outstanding charges for service.
· The legislation limits the ability of municipal utilities to recover the cost of providing water and sewer services to tenant consumers and would negatively impact other rate payers with higher rates or reduced services.
· The bill would extend the resolution of billing disputes and create administrative challenges for both the utility and the Environmental Review Appeals Commission (ERAC).
o This unnecessary change in the appeals process would inundate the ERAC with municipal utility billing disputes, compromising the real work of the commission to issue environmental permits which directly impacts the development of real estate, the rights of property owners and economic development progress of the state and our communities. The Ohio legislature previously found it necessary to take legislative action to require more prompt resolution of cases before the current ERAC due to a significant backlog in case resolutions. HB 442 would only add to the existing caseload and create even further backlog.
The league urges our members to contact their state senator to urge them not to support this legislation that grows the size of state government by giving greater authority over municipal affairs to the OEPA, preempting the ability of municipalities to operate their own utility services and to ensure fairness in the collection of utility rates for all users of municipal water and sewer services.
SENATE TRANSPORTATION COMMITTEE AMENDS BILL WITH $700 MILLION IN FEDERAL INFRASTRUCTURE FUINDING
Chairman McColley and members of the Senate Transportation Committee amended HB338 (Hoops, R-Napoleon) this week with a number of transportation related provisions including the infusion of $690 million in federal infrastructure funding made available to the state via the recently passed federal Bipartisan Infrastructure Bill. The funding will be directed for roads and bridge projects in the state, as well as other state related projects. The bulk of the funding, $672.6 million, will be directed to the Highway Operating Fund for highway construction and public transportation funding.
When the Senate received the bill from the House, HB 338 only addressed motorcycle safety laws and changes to the licensing of motorcycle riders.
In addition to the infusion of federal highway funds, the bill also included a number of other state funding issues that needed to be reappropriated enabling funding to continue through next year. Those items include:
· $1 million to provide grants to Jewish community organizations for emergency security upgrades
· $750,000 for grants to the Veterans of Foreign Wars Emergency Repair Program
· $500,000 for the Ohio Commission for the U.S. Semiquincentennial, which is making plans to recognize the 250th anniversary of U.S. independence in 2026.
· $350,000 to support the Bradfield Community Center in Lima
· $15,000 to support the Lorain Pier Planning Project
The final action taken by the Senate committee through the omnibus amendment also included language addressing other state transportation related matters which include:
· Enabling Regional Transit Authorities (RTA) to issue revenue bonds supported by sales tax proceeds and expanding the scope of activities available to RTAs with territories including a county with a population of at least 1.3 million. The Central Ohio Transit Authority is the only authority that meets that definition.
· Authorizing the governor or his or her designee in consultation with the Department of Public Safety (DPS) director to enter into reciprocal agreements with other states regarding informant of toll violations.
· Clarifying the Registrar of Motor Vehicles "convenience fee" for electronic resources is separate from all other authorized taxes and fees but prohibits its application if a similar fee is already imposed.
· Requiring the registrar to adopt rules authorizing a waiver of the commercial driver's license test for military members.
· Authorizing the DPS director to adopt rules establishing reasonable fees for third party driver's license skills tests
The bill now awaits the Governor’s signature to become effective and will be enacted in 90 days from the date of his signature.
GOVERNOR DEWINE ANNOUNCES $3.6 MILLION TO LAW ENFORCEMENT TO COMBAT ILLEGAL DRUG ACTIVITY
Governor Mike DeWine today announced over $3.6 million in funding for 41 local law enforcement agencies to help their drug task forces enforce the state’s drug laws and combat illegal drug activity.
Grants from the 2022 Ohio Drug Law Enforcement Fund will support drug task forces that impact 67 counties on issues of drug trafficking, pharmaceutical diversion, and other organized criminal activity associated with the drug trade. The program, which is administered through the Office of Criminal Justice Services, is also intended to help local entities enhance the safety of Ohioans through multi-jurisdictional task forces.
“Ohio’s drug task forces play an absolutely critical role in removing drugs from the streets and holding drug traffickers accountable,” said Governor DeWine. “These grants are flexible so drug task force commanders can tailor their plans to the greatest benefit for their local communities.”
Funds can be used by agencies to investigate drug trafficking organizations and disrupt the drug supply through intelligence gathering, information sharing, and multi-agency coordination. Grants can also be used to support local work to help drug overdose victims and their families through education, support, and treatment options.
The Ohio Drug Law Enforcement Fund is part of the Drug Interdiction, Disruption, and Reduction Plan that is funded through Ohio's operating budget.
Today's grants are in addition to several other initiatives developed under Governor DeWine to address the issues of drug trafficking and substance use disorder.
COMMITTEE RECAP
BILLS OF MUNICIPAL INTEREST
HB 377- Local Fiscal Recovery. Sponsored by Reps. Hall (R-Middletown) and Swearingen (R-Huron) enabling the second distribution of ARPA funds to Ohio’s local governments, was voted out of the House by a vote of 79-11 on Wednesday. The bill will now head to the Senate to go through the committee process. The bill was also heard informally from the sponsor in Senate Finance Committee on Tuesday. The League is in support of this legislation. https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA134-HB-377
SB 193- Utilities. Sponsored by Sen. Williams (D-Cleveland) would prohibit political subdivisions from placing a lien on property for unpaid water charges. During its third hearing in the Senate Energy & Public Utilities Committee, opponent and interested party testimony was given. The League testified against the bill, citing the removal of municipal authority to issue liens on properties with delinquent properties is a home rule violation and negatively impacts municipal finances. The League is opposed to this legislation. https://www.legislature.ohio.gov/legislation/legislation-documents?id=GA134-SB-193
HB 472- Elimination of Political Subdivision Liability. Sponsored by Rep. Ingram (D- Cincinnati) would eliminate certain defenses to political subdivision liability for an employee's negligent operation of a motor vehicle and to reduce damages recoverable against a political subdivision in such actions by the contributory fault of the plaintiff or other parties. During its second hearing in House Civil Justice Committee, the bill heard proponent testimony. The League is opposed to this legislation. https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA134-HB-472
NEW INTRODUCTIONS
