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December 16, 2022

UPDATE AT A GLANCE

Here are the top things impacting municipalities that happened at the Statehouse this week:

The House and Senate adjourned this week, after completing their final sessions of the 134th General Assembly. The legislators worked into the early morning hours -- until nearly 6 a.m. -- finalizing the legislation they wanted to have pass or trying to get the votes to have it pass before the end of the year. Issues such as a resolution to require a supermajority of the vote to pass constitutional amendments (HJR6), legislation regarding gender identity in youth sports and overhauling the state education agencies (HB151), and abortion did not ultimately pass. We expect these issues to return next year.

Any bills that have not been passed will need to be reintroduced during the 135th General Assembly. A list of bills impactful to Ohio cities and villages that were acted upon this week can be found below. Gov. DeWine will consider signing the bills that have been passed in the coming days, and those without an emergency declared will take effect after 90 days from being signed.

Next week, we will have a final legislative bulletin for the year recapping the municipal issues that were enacted into law during the 134th Ohio General Assembly.

2023 HOUSE SCHEDULE

Last week, Speaker-elect Derek Merrin announced the 2023 schedule for the Ohio House. If you would like to view the schedule, it is available here.

LAME-DUCK LEGISLATIVE SPOTLIGHT

• Municipal income tax provisions do not pass. Municipal income tax provisions related to the enforcement of non-filers and an amendment that would have changed current net profit filing requirements for businesses did not receive final legislative approval. See more below.
• Flavored tobacco preemption passes. A preemption violating Home Rule that would have stripped local regulation of flavored tobacco products was amended into House Bill 513. The legislation was passed by both chambers and has been sent to the governor for his signature. The league has sent a letter requesting that the governor veto this egregious legislation and hopes the governor will exercise his constitutional authority to do so. See more below.
• Distracted driving amended into criminal-justice bill. Distracted driving legislation that prohibits the use of a handheld phone while driving was amended into a larger criminal-justice bill and passed. See more below.
• Proposed constitutional amendment to create a supermajority for future constitutional amendments fails to cross legislative finish line. House Joint Resolution 6, which would have required constitutional amendments to receive at least 60% of the vote to pass, failed to garner enough support in the Ohio House and was ultimately not acted upon. See more below.
• Elections bill passes. Legislation making sweeping changes to current Ohio election law received enough support in the final hours for passage. The final version included OML-proposed language ensuring that municipalities will continue to have access to August elections if a fiscal emergency exists. See more below.
• State moves more COVID-relief dollars. The majority of the state's remaining COVID-relief funding was allocated for various purposes, including lead abatement, H2Ohio funding, and emergency rental assistance. See more below.
• Sovereign immunity changes advanced. This week, Gov. DeWine signed Sub. Senate Bill 56, which makes changes to Ohio's sovereign immunity law. See more below.

FIFTH ROUND OF FIRST RESPONDER WELLNESS GRANTS ANNOUNCED

Gov. DeWine announced the recipients of a total of $28 million in the latest round of the Ohio First Responder Recruitment, Retention, and Resilience Program, which is aimed at helping to support the wellness and staffing needs of first responders. Seventy-two local agencies received funding. View the List

FUNDING AWARDED FOR BODY-WORN CAMERAS

Gov. DeWine announced that nearly $4.9 million is being awarded to 112 law enforcement agencies as part of the Ohio Body-worn Camera Grant Program. This is the second round of funding; the first was in January. View the List

LAME-DUCK LEGISLATIVE SPOTLIGHT

MUNICIPAL INCOME TAX PROVISIONS FAIL TO MOVE FORWARD

House Bill 519, which relates to the administration and enforcement of municipal income taxes, was amended into Senate Bill 235 in committee this week, but the House ultimately did not act on the bill.

Senate Bill 235 would have made a variety of sales and use tax exemptions, but the municipal income tax language amended into it would have limited the enforcement for non-filers from a $150 maximum penalty down to a one-time $25 penalty. The legislation also interferes with the ability of municipalities to notify delinquent municipal filers. OML opposed House Bill 519. Bill Analysis as Reported by House Committee

An amendment that was drafted to allow businesses to file municipal net profits in their principal place of work, rather than at the locations where their remote employees are working, failed to be incorporated into legislation. That amendment can be read here.

FLAVORED TOBACCO PREEMPTION PASSES

On Tuesday, the Senate Ways & Means Committee added an amendment to House Bill 513 that preempts local governments' ability to regulate the use of flavored tobacco products. The bill, as originally introduced, allows wholesalers or distributors to obtain a refund of excise taxes on cigarettes. OML joined with anti-tobacco organizations in a letter communicating our opposition to the amendment. Unfortunately, the amended bill was approved by the Ohio Senate and agreed to by the House. The bill will now go to Gov. DeWine, and we understand he is considering vetoing the legislation. OML has sent the governor a letter urging him to veto this legislation that violates Ohio's municipal Home Rule authority. Preemption Amendment | Bill Analysis as Reported by Senate Committee

DISTRACTED DRIVING LEGISLATION ADDED TO BILL ON CRIMINAL JUSTICE

Senate Bill 288, which makes a large variety of criminal law changes, received nearly two dozen amendments while in the House Criminal Justice Committee this week. Among other bills incorporated into SB288 as amendments is HB283, legislation making distracted driving a primary offense that had previously passed the Ohio House. The distracted driving language prohibits the use of a handheld phone while driving. There were some exceptions included in the final version of the bill, such as using the phone at a stoplight or holding the phone to the ear. SB288 was passed by the House, and the Senate agreed to the House changes. It will now be sent to the governor for his signature. Bill Analysis as Reported by House Committee (Distracted driving provisions on pg. 76)

PROPOSAL TO REQUIRE SUPERMAJORITY FOR FUTURE CONSTITUTIONAL AMENDMENTS FAILS TO ADVANCE

House Joint Resolution 6 was a proposed constitutional amendment that would have required a 60-percent supermajority vote for any future constitutional amendments to pass. The resolution was introduced in late November and was adopted by the House Government Oversight Committee this week.

The resolution failed to garner enough support and thus did not receive a vote on the House floor before the end of the lame-duck session. We expect this issue to be re-addressed in the 135th General Assembly. Analysis as Reported by House Committee

ELECTIONS BILL INCLUDES PROVISION FOR MUNICIPALITIES UNDER FISCAL EMERGENCY

During the lame-duck session, the General Assembly worked on two significant elections-related proposals. The first proposal, House Bill 294, was a comprehensive election-reform package. The second bill, House Bill 458, is legislation that eliminates August special elections except for when there is a special congressional election. OML supported the amendment incorporated into HB458 allowing municipalities under a fiscal emergency to have access to August elections. Items that gained approval from the larger reform legislation were amended into the smaller HB458, which was the legislation ultimately passed. Other issues included in the adopted legislation include:

• Requiring voters to present a photo ID when voting and making Ohioans 17 and older eligible for a free state ID card
• Moving up when voters must submit an absentee ballot application
• Limiting drop boxes to one per county at the board of elections office
• Prohibiting curbside voting except for those with disabilities
• Eliminating in-person voting on the Monday before Election Day and redistributing those hours to other days

Bill Analysis as Reported by Senate Committee

FEDERAL COVID-RELIEF MONEY AMENDED INTO LEGISLATION

Nearly $6 billion in federal COVID-relief funding was added to House Bill 45, a state tax amnesty bill, during a Senate Finance Committee hearing Tuesday evening. The funding was part of an omnibus amendment, along with two separate amendments. The funding included:

• $100 million for rural hospitals
• $25 million for foodbanks
• $740 million for the state's rainy day fund
• $250 million for water quality programs
• $161 million emergency rental assistance
• $150 million for lead abatement
• $90 million for crisis care facilities
• $85 million for more mental health workers
• $75 million for infrastructure related to the recently announced Honda plant

The bill was sent to the Senate floor the next day, where it was passed and agreed to by the House. It will now be sent to the governor for his signature. Omnibus Amendment | Bill Analysis as Reported by Senate Committee 

Additionally, the Senate Ways and Means Committee added an omnibus amendment with federal funding to House Bill 66, a bill focused on property tax exemptions. The bill also includes language that codifies the recent Ohio Supreme Court decision preventing local governments from collecting franchise fees from streaming services such as Netflix and Hulu.

This bill was passed by the Legislature and will be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

GOVERNOR SIGNS SOVEREIGN IMMUNITY BILL

On Tuesday, Gov. DeWine signed into law Senate Bill 56, legislation that regulates the use of indemnity provisions in professional design contracts related to public improvements, in addition to other immunity and liability issues related to matters related to hospital police officers.

As we previously reported, an amendment was added during conference committee proceedings that removed previously inserted House language regarding political subdivision sovereign immunity. The removed language had altered the definition of an emergency call and provided that any compensatory damages recoverable against a political subdivision must be reduced by a certain percentage. The removal of that amendment effectively reverted sovereign immunity law back to current statute. Additionally, the new language added a provision making changes to the uninsured/underinsured motorist coverage.

SB56 will be effective 90 days after the governor's signature. Bill Analysis as Reported by House Committee

FLOOR PASSAGE

BILLS OF MUNICIPAL INTEREST



Below is the list of bills impactful to Ohio municipalities that have been passed by the Ohio General Assembly and sent to the governor for his signature.

HB23 – REQUIRE EMS / PEACE OFFICERS TO UNDERGO DEMENTIA-RELATED TRAINING 

Sponsored by Rep. Phil Plummer (R-Dayton) and Rep. Thomas West (D-Canton) 

To require emergency medical service personnel and peace officers to undergo dementia-related training. The House concurred with the Senate-passed version of the bill by a vote of 89-1. The bill will now go to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB35 – PERMIT MAYORS TO SOLEMNIZE MARRIAGES IN OHIO 

Sponsored by Rep. Jeff LaRe (R-Violet Twp.)

To permit mayors to solemnize marriages anywhere within Ohio. Passed by Senate 30-0. The bill will now go to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB45 – TAX AMNESTY PROGRAM 

Sponsored by Rep. Bill Roemer (R-Richfield) and Rep. Thomas West (D-Canton) 

To require the tax commissioner to administer a temporary amnesty program from July 1, 2022, to August 31, 2022, with respect to certain delinquent taxes and fees, to repeal Section 1 of this act on September 1, 2022, and to declare an emergency. Amended and passed by Senate 29-0, with House concurring 71-10. The bill will now be sent to the governor for his signature. Omnibus Amendment | Bill Analysis as Reported by Senate Committee 

HB66 – REVIEW PROPERTY TAX EXEMPTIONS 

Sponsored by Rep. Jim Hoops (R-Napoleon)

To amend Section 130.12 of H.B. 110 of the 134th General Assembly and Section 8 of S.B. 18 of the 134th General Assembly as subsequently amended to revise the tax laws and to make certain operating appropriations for the biennium ending June 30, 2023, and capital appropriations for the biennium ending June 30, 2024. After being amended and reported out by Senate Ways and Means, amended and passed by Senate 29-0, with House concurring 66-13. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB178 – LIMIT WATER PRESSURE AT SWIMMING POOLS 

Sponsored by Rep. Jean Schmidt (R-Loveland) and Rep. Adam Miller (D-Columbus)

To limit the water pressure of water features at swimming pools and to name this act Makenna's Law. Passed by Senate 31-0. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB364 – WATERWORKS INFRASTRUCTURE APPLICATION 

Sponsored by Rep. Tom Patton (R-Strongsville) 

To make changes to the application process for the waterworks infrastructure improvement surcharge. Passed by Senate 23-8, with House concurring 56-30. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB458 – VOTER ID, ELECTION LAWS 

Sponsored by Rep. Thomas Hall (R-Madison Twp.) 

To modify the law governing voter identification and absent voting and other aspects of the election law and to make changes regarding driver's licenses and state identification cards. Following the sixth committee hearing, passed by Senate 24-7, with House concurring 55-32. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB462 – PROHIBITION ON SWATTING 

Sponsored by Rep. Kevin Miller (R-Newark) 

To prohibit swatting and to add swatting to the definition of an offense of violence. Amended and passed by Senate 30-0, with House concurring 75-5. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB501 – TOWNSHIP LAWS, SOLAR REGULATION

Sponsored by Rep. Thomas Hall (R-Madison Twp.) 

To make various township law changes and to subject small solar facilities to local regulation. Passed by Senate 30-1, with House concurring 83-3. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB507 – AGRICULTURE LAW, ENERGY CREDITS 

Sponsored by Rep. Kyle Koehler (R-Springfield) 

To revise specified provisions of agriculture law, to define green energy, to exclude natural gas from receiving renewable energy credits, to revise the law governing environmental health specialists and environmental health specialists in training, and to allow conservancy district police departments to take specified actions regarding the towing and storage of motor vehicles. The House concurred with the Senate-passed version of the bill by a vote of 59-33. It includes the preemption that prohibits political subdivisions from regulating or banning the packaging, registration, labeling, sale, storage, distribution, use, or application of a pesticide registered with the Department of Agriculture on private property, including private property that is open to the public. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by Senate Committee

HB513 – BAD DEBTS - CIGARETTE, VAPOR PRODUCT TAXES 

Sponsored by Rep. Jon Cross (R-Kenton) and Rep. Bill Roemer (R-Richfield)

Regarding the deduction and recovery of bad debts for cigarette and tobacco and vapor products taxes, the taxation of certain vapor product manufacturers and importers, and local regulation of tobacco products and alternative nicotine products. Following fourth hearing and amendments in Senate Ways and Means, passed by Senate 23-8, with House concurring 50-35. The bill will now be sent to the governor for his signature. Preemption Amendment | Bill Analysis as Reported by Senate Committee

SB16 – EMS RESPONDERS-CIVIL ACTION 

Sponsored by Rep. Tim Schaffer (R-Lancaster)

Regarding assault or menacing committed or directed against, and targeting, an emergency service responder, family member, or co-worker, the offense of unlawfully impeding public passage of an emergency service responder, and the inclusion of Casino Control Commission gaming agents as peace officers under the standard definition of that term. After being amended at the seventh House Criminal Justice hearing, amended on floor and passed by House 57-19, with Senate concurring 29-0. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by House Committee

SB288 – CRIMINAL LAW CHANGES 

Sponsored by Rep. Nathan Manning (R-North Ridgeville) 

To modify various aspects of the law regarding crimes and corrections, trial procedures, correctional officers and employees, coroner records, inmate internet access, civil protection orders, delinquent child adjudications and case transfers, youthful offender parole review, OVI and other traffic offenses, certificates of qualification for employment, licensing collateral sanctions, criminal record sealing and expungement, State Criminal Sentencing Commission duties, and certain assisted reproduction matters. After being amended at fifth House Criminal Justice hearing, amended on floor and passed by House 79-7, with Senate concurring 28-1. The bill will now be sent to the governor for his signature. Bill Analysis as Reported by House Committee

COMMITEE RECAP

BILLS OF MUNICIPAL INTEREST

Below is the list of bills that received a legislative committee hearing this week and that are impactful to Ohio municipalities:

Legislation Receiving Additional Hearings

NOTE: Without the advancement of these bills, they are "dead" and will need to be reintroduced in the next General Assembly.

HB116 – OHIO COMPUTER CRIMES ACT 

Sponsored by Rep. Brian Baldridge (R-Winchester)

To enact the Ohio Computer Crimes Act and to amend the version of section 109.572 of the Revised Code that is scheduled to take effect October 9, 2021, to continue the provisions of this act on and after that date. Reported out as amended in Senate Judiciary (Fourth Hearing). Bill Analysis as Reported by Senate Committee

HB294 – OHIO ELECTION SECURITY, MODERNIZATION ACT 

Sponsored by Rep. Bill Seitz (R-Cincinnati) and Rep. Sharon Ray (R-Wadsworth)

To modify the law governing absent voting, to make other changes to the election law, and to make an appropriation. Reported out as amended in House Government Oversight, (Sixth Hearing). Bill Analysis as Reported by House Committee

HB494 – SCHOOL ADJACENT SPEED ZONES 

Sponsored by Rep. Rodney Creech (R-West Alexandria)

To authorize a municipal corporation, county, and township to establish a school adjacent speed zone on any street or highway within a half mile of certain schools. House Transportation and Public Safety, (Fourth Hearing). Bill Analysis as Introduced

SB112 – TAX FORECLOSURES, LAND REUTILIZATION 

Sponsored by Sen. Matt Dolan (R-Chagrin Falls)

To make changes to the law relating to tax foreclosures and county land reutilization corporations. House Ways and Means, (Third and Fourth Hearings). Bill Analysis as Passed by Senate

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