OHIO UPDATE AT-A-GLANCE
Here are the top three things you need to know from this past week:
· Lame Duck Watch: Although Ohio lawmakers were in session until the early hours of this morning, lame duck has still not officially ended. Legislators must return to deal with a number of substantial issues, such as the $2.1 billion capital budget, legislation delaying fees for the controversial HB 6 nuclear bailout for one year, and a bill expanding “stand your ground” locations. You can find the full list of community projects funded in the capital budget HERE and read more about these bills in the articles below. The Senate will meet again today, while the House is scheduled to return next week before Christmas. The 133rd General Assembly will officially end on December 31.
· Several amendments have been added to SB 310, the $2.1 billion capital appropriations bill. One of the amendments would appropriate all unspent federal CARES Act revenues to ensure they can later by appropriated by the Ohio Controlling Board if Congress does not extend the current December 30 deadline for spending the funds. Read more in the article below.
· Earlier this week, a bipartisan group in Congress, including Ohio Senator Rob Portman, released language for a COVID-19 relief package. The overall package is comprised of two bills totaling $908 billion, including $160 billion in federal aid for state and local governments. You can find the full update from the National League of Cities (NLC) HERE and read more in the summary below. We urge our members to contact Senators Portman and Brown and encourage them to continue the fight for more federal relief for state and local governments.
· The League has two important webinar opportunities scheduled for January. The first-ever virtual Municipal Income Tax Seminar will be held from Tuesday, January 12 through Thursday, January 14, 2021. Additionally, the League is hosting a live interactive webinar for Mayors Court Training from Thursday, January 14, 2021 to Friday, January 15, 2021. Find more information and links for registration in the article below.
$2.1 BILLION CAPITAL BILL SENT TO GOVERNOR WITH AMENDMENT ENCUMBERING UNSPENT CARES ACT FUNDS
Both chambers of the Ohio legislature have agreed to the conference committee report of SB 310, the $2.1 billion capital bill. Before its passage, several amendments were added to the bill. One of the amendments would appropriate all unspent federal CARES Act revenues to ensure they can later by appropriated by the Ohio Controlling Board if Congress does not extend the current December 30 deadline for spending the funds.
This amendment encumbers all CARES Act funds unspent by the state and local governments, meaning Ohio will not need to return those unspent funds to the federal government if the existing spending deadline is not extended.
If the spending deadline is extended by Congress, an earlier amendment to SB 310 ensures that the deadline is extended in turn for local governments.
SB 310 was reported out of conference committee yesterday and approved by the Ohio House. The Ohio Senate then also approved the report, sending the bill to Governor’s desk for his signature.
Other amendments to SB 310 include an increase in Ohio’s Medicaid appropriation by $3.52 billion for FY 2021 due to the increased federal match, an additional $700 million for hospitals, and an appropriation of $5 million fo the Department of Natural Resources for Lake Erie shoreline erosion projects.
Members can find the full list of community projects funded in the capital bill, the bill analysis and other information HERE . You can find the summary for all SB 310 amendments HERE.
LAME DUCK RECAP: BILLS OF MUNICIPAL INTEREST
The Ohio General Assembly passed a number of bills impacting municipalities during marathon lame duck sessions this week:
Bills Passed by the Senate:
• HB 308 - PTSD Coverage. Sponsored by Rep. Patton (R - Strongsville), is concerning workers' compensation 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. Earlier this week, the bill was amended to establish a fund and create a study to be complete by October 2021 that will determine who will administer the fund and where the money will come from. The Senate passed the bill unanimously and it now heads to the House for concurrence on the changes.
• HB 253 - Fireworks. Sponsored by former Rep. Don Manning and Rep. O’Brien (D - Warren), would revise the Fireworks Law. The bill was amended during its fourth hearing before the Senate Transportation, Commerce and Workforce Committee to delay the moratorium on new fireworks manufacturers and wholesale licenses until December 15, 2022. The Senate passed the bill 25-7 and it is now on its way to the House for concurrence on the changes.
• HB 674 - Revised Liquor Laws. Sponsored by Rep. Hillyer (R - Urichsville) and Rep. Becker (R - Union Township), would revise specified provisions of the liquor control law and declare an emergency. The bill was amended on the Senate floor to allow charitable and non-profit organizations and certain other entities to obtain a liquor permit. The bill was then passed by the Senate 28-1 and now heads to the House for concurrence on amendments.
Bills Passed by the House
• SB 33 - Critical Infrastructure Facilities. Sponsored by Sen. Hoagland (R - Adena), would modify certain criminal offenses with respect to critical infrastructure facilities and to impose fines and civil liability for damage to a critical infrastructure facility. The House passed the bill 55-30 and it is now on its way to the Senate for concurrence on the changes.
• SB 277 - Pooled Collateral. Sponsored by Sen. Schuring (R - Canton), would make changes to the Ohio Pooled Collateral Program. The House passed the bill 78-3 and it is now on its way to the Senate for concurrence on the changes.
• SB 360 - Firearms Dealers. Sponsored by Senate President Obhof (R - Medina) and Rep. 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. The House informally passed the bill.
Bills Sent to the Governor:
• SB 175 - Civil Immunity/Duty to Retreat. Sponsored by Sen. Schaffer (R - Lancaster), would grant civil immunity to nonprofit corporations and persons associated with them for certain injuries, deaths, or losses resulting from the carrying of handguns and expand the locations where a person has no duty to retreat. The bill was amended on the House floor to include language similar to SB 796 and SB 383, which states an individual has no duty to retreat before using deadly force to protect themselves, another individual or their property so long as they legally have a right to be in that location, that they are not the aggressor and that they believe they are at risk of death or immediate body harm. The House passed the bill 52-31 and the Senate concurred on the changes. The bill now heads to the Governor’s desk for his signature.
• SB 10 - Theft in Office. Sponsored by Sen. Wilson (R - Maineville), would expand the penalties for theft in office based on the amount stolen; include as restitution audit costs of the entity that suffered the loss; modify various aspects of the laws regarding criminal and delinquency record sealing and expungement; expand the list of debts toward satisfaction of which the Tax Commissioner may apply a tax refund due to a taxpayer,; expand the basis of a court's exercise of personal jurisdiction; specify a separate standard for the issuing of warrants upon presentation of a court order; and declare an emergency. The bill was amended in conference committee to clarify when county auditors held liable in certain circumstances and was then reported out of committee. Both chambers accepted the conference committee report and the bill now heads to the Governor’s desk for his signature.
• HB 321 - Intrastate Equity Crowdfunding. Sponsored by Rep. Powell (R - Laura), would permit intrastate equity crowdfunding under certain circumstances. The House concurred on the changes made by the Senate and the bill is now on its way to the Governor’s desk for his signature.
• HB 7 - Statewide Watershed Planning. Sponsored by Rep. Ghanbari (R - Perrysburg) and Rep. Patterson (D - Jefferson), would create a statewide watershed planning structure for watershed programs to be implemented by local soil and water conservation districts. The House concurred on the changes made by the Senate and the bill is now on its way to the Governor’s desk for his signature.
• 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 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 House concurred on the changes made by the Senate and the bill is now on its way to the Governor’s desk for his signature.
FEDERAL UPDATE ON COVID-19 RELIEF FUNDING
We want to thank Irma Esparza Diggs, the director of federal advocacy for the National League of Cities (NLC), for the continued updates regarding a potential federal COVID-19 relief package from Congress. The following is a summary of NLC’s update on recently-introduced legislation in Congress.
Earlier this week, a bipartisan group in Congress, including Ohio Senator Rob Portman, released legislative text for a COVID-19 relief package. The overall package is comprised of two bills totaling $908 billion.
The first bill contains items such as unemployment insurance, the Paycheck Protection Program (PPP), and food assistance. These, along with other items, are considered the less controversial proposals that could be passed immediately. This allocation in the first bill totals $748 billion.
The second bill proposed by the bipartisan group allocates $160 billion for state, local, and tribal governments. The funds would be distributed in four waves. The first would be determined by state population, while the other distributions would be proportionate to the amount of lost state revenue.
Each state would be required to distribute 40% of their allocation to local governments within 30 days. Each state could allocate the money through a formula its own determination based on local population, local revenue loss or a combination of the two. These funds would be available through September 30, 2021.
The second bill also addresses liability protection; however, $160 billion for state and local governments will be included only if an agreement can be met on liability.
The liability protection provisions included in the package would:
· Establish a nationwide gross negligence standard for COVID-19 exposure, medical malpractice, and workplace testing claims;
· Allow plaintiffs to file suit in state court;
· Give defendants the option to remove to federal court;
· Allow attorneys general to investigate and bring civil actions addressing pattern or practice of sending meritless demand letters;
· Provide that employers are not subject to liability under federal employment law in COVID-19 exposure cases or change in working condition related to COVID-19 if the employer was trying to conform to public health standards and guidance.
· Protect public accommodations that take measures to protect against COVID-19.
· Ensures that employer's decision PPE, COVID-19 policies, procedures or training workplace testing, or financial assistance to independent contractors is not create evidence of an employer-employee relationship.
· Protections apply to claims arising from injuries that occur from December 2019 through one year after enactment or the end of the COVID-19 public health emergency.
Other provisions in the relief package include:
· $25 billion in rental assistance to states, local governments and tribes through the Coronavirus Relief Fund (CRF);
· $12 billion for Community Development Financial Institutions and Minority Depository Institutions;
· $10 billion for broadband and digital inclusion, divided into $6.25 billion for state grants that may be used for infrastructure or digital inclusion, and another $3.75 billion for digital inclusion;
· $45 billion in total for transportation support, including $17 billion for airlines, $4 billion for airports, $15 billion for transit agencies, $8 billion private bus companies and ferries, and $1 billion for Amtrak;
· $13 billion in emergency food assistance, including increases to the Supplemental Nutrition Assistance Program (SNAP) and funding for food banks;
· $5 billion for mental health services and substance abuse prevention and treatment;
· After-school funding flexibility;
· An extension of all unemployment insurance assistance for an additional 16 weeks, through April 19, 2021, with a supplemental $300 per week;
· $16 billion for testing, tracing and vaccine development and distribution, with $3.42 billion for grants to state and local governments for vaccine distribution;
· $300 billion to the Small Business Administration to allow the hardest-hit small businesses to receive a second forgivable Paycheck Protection Program (PPP) loan;
Provisions that are not included in the package are:
· An extension for the use of remaining CARES Act Coronavirus Relief Funds (CRF) monies. Thus, at this moment, unused funds will have to returned to Treasury at the end of the month;
· Funding specifically for water utilities, even though the financial impact of COVID-19 on water and wastewater utilities combined is estimated to exceed $30 billion in lost revenues;
· Funding for skills training or putting workers back to work.
· An extension of the Families First Coronavirus Response Act Employer Paid Leave requirements;
· FEMA Assistance Relief Act language that would adjust the FEMA cost share for all Emergencies and Major Disasters declared in calendar year 2020 to not less than 90% federal and 10% non-federal.
Additionally, the NLC is urging that Congress include funding for the Federal Emergency Management Agency to give to states and cities in emergencies.
Local governments are required to meet to meet the 25% cost share for FEMA’s Public Assistance Grant Program. However, the long-term economic devastation caused by COVID-19 has made it almost impossible for local governments – especially small cities, towns, and villages with populations below 50,000 – to meet the 25% cost share required by FEMA. Those municipalities that are not able to cover the 25% match may be at risk of losing all FEMA Public Assistance to cover essential expenditures like personal protective equipment (PPE) for their first responders and other government employees.
To help local governments offset the costs associated with emergency response to the coronavirus pandemic, the NLC is urging Congress to adjust the FEMA cost-share for all COVID-19 related Emergency and Major Disaster declarations to 100% federal to ensure local governments that are eligible to receive federal disaster aid get full reimbursement for their expenses associated with the pandemic.
NLC is also asking that Congress clarify that qualified assistance under the Stafford Act for purposes of COVID-19 related disasters include costs associated with procuring PPE and supplies for local government personnel who work in public schools, public transit, sanitation, public utilities, courthouses, and other government buildings and services.
The NLC is urging Congress to include this provision in the a federal aid package, arguing tat it is critical for helping out cities, towns and villages, especially smaller communities, across the nation that are struggling to meet this cost-share requirement to keep their residents safe and provide essential services during the coronavirus pandemic.
We urge our members to contact their Congressional delegation and urge them to pass the full federal aid package. We also ask that our members impress upon them the urgency of passing the $160 billion in aid to state and local governments and the importance of adjusting the FEMA cost-share for COVID-19-related disasters. We also thank Sen. Portman for his continued support for local governments and his advocacy to ensure Ohio’s cities and villages get the financial aid they need to continue to deliver the critical quality local services Ohioans deserve.
OHIO CORONAVIRUS RESPONSE UPDATE
· As of Friday afternoon, Ohio is reporting 605,862 cases of coronavirus, 7,967 deaths, 34,143 hospitalizations and 5,429 ICU admissions.
· Updated Ohio Public Health Advisory System map:
o Purple Level 4: in Richland County.
o Red Level 3: Medina, Portage, Stark, and Summit
· The Centers for Disease Control and Prevention has invited Ohio to participate in an early scaled launch of vaccinations in nursing homes. Ohio will begin providing vaccinations in five to ten nursing homes starting this Friday, December 18. Ohio had previously been scheduled to start its nursing home vaccination program in partnership with pharmacy providers on Monday, December 21.
· Ohio will launch a new COVID-19 Vaccination Dashboard in the coming days at coronavirus.ohio.gov. The dashboard will list the number of people vaccinated in Ohio and will be sortable by demographic and by county.
· Facilities in Ohio will be among the first in the nation to receive vaccines through Walgreen’s, CVS, PharmScript, and Absolute Pharmacy. Ohio was invited by the CDC to participate in the scaling up of the federal program.
Business and Employment Updates:
· Ohioans filed 38,327 initial and 274,658 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, 262,514 Ohioans received Pandemic Unemployment Assistance (PUA) last week.
· Over the last 39 weeks, ODJFS has distributed more than $7.5 billion in unemployment compensation payments to more than 868,000 Ohioans. In addition, ODJFS has issued more than $7.4 billion in PUA payments to more than 756,000 Ohioans.
OHIO TREASURER ANNOUNCES LOWER INTEREST COSTS FOR $1 BILLION IN LOCAL GOVERNMENT NOTES
Ohio Treasurer Robert Sprague has announced that the Ohio Market Access Program (OMAP) has now enhanced and lowered interest costs for $1 billion in local government notes.
“During this year of market volatility and tightening budgets across the state, OMAP was more valuable than ever in helping Ohio’s communities stretch their dollars and complete important infrastructure projects,” said Treasurer Sprague. “We look forward to partnering with more local governments in the new year and helping them finance the work that improves the lives of Ohioans.”
In 2020, the Treasurer’s office completed 38 OMAP deals, compared to 37 in 2019. However, the total estimated savings the program provided to local governments more than doubled in 2020 ($920,000 in 2020 compared to $437,000 in 2019).
OMAP is a credit enhancement program that leverages the state’s excess liquidity and high short-term credit rating to help improve market access and lower borrowing rates for local governments. Since its 2014 launch, OMAP has supported more than 190 deals, ranging from $390,000 to over $100 million. There have been no defaults, and to date, OMAP has generated more than $3.8 million in estimated savings for local governments.
Any government subdivision in good fiscal standing, including cities, villages, school districts, counties, townships, and special districts, issuing short-term debt is eligible to participate. For more information, visit https://omap.ohio.gov/.
REGISTRATION OPEN FOR FIRST-EVER VIRTUAL 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 in this survey HERE, or to Director of Communications Ashley Ringle at aringle@omlohio.org by Tuesday, December 29.
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. The training will feature presentations on topics such as reporting requirements, rules of evidence, court procedures and general legal procedures. To find more information and to register, click HERE.
OHIO EPA TO HOST WEBINAR ON RECYCLING AND LITTER PREVENTION GRANTS
On January 7, 2021, from 10 a.m. to 11:30 a.m., the Ohio EPA will host a webinar highlighting the 2021 Recycling and Litter Prevention Grant application process for local governments and other entities. The grants are allocated to help establish and implement recycling and litter prevention programs, expand recycling equipment and processing facilities and other related measures. To learn more and to register, click HERE .
COMMITTEE RECAP: BILLS OF MUNICIPAL INTEREST
Here are the bills impacting municipalities that received committee hearings this week:
· 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 HB 6 of the 133rd General Assembly, amend Power Siting Board law and other electric utility law, prohibit certain restrictions on solar energy systems, and declare an emergency. The bill was amended to remove the declaration of emergency, and to retroactively refund ratepayers most of the nuclear subsidies that are collected before the passage of the legislation. The bill is currently pending in Senate Energy and Public Utilities Committee. The League is neutral on this legislation.
· 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 sixth hearing before the House Ways and Means Committee, the bill was amended to limit the period to tax exemptions to 10 years. The bill was then voted out of committee. The League is supportive of the 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 its third hearing before the House Civil Justice Committee, opponents testified against the bill. The League is neutral on this legislation.
· HB 444 - Township Law. Sponsored by Rep. Abrams (R - Harrison) and Rep. Baldridge (R - Winchester), would make various changes to township law. During its third hearing before the Senate Local Government, Public Safety and Veterans Affairs Committee, the bill was amended to, among other changes ensure that if a township buys something that appears to be tax-free, they cannot be taxed on that property or item down the road. The bill was then reported out of committee. The League is neutral on this legislation.
· 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 third hearing before the Senate Government Oversight and Reform Committee, the bill was amended with language from Senate-passed SB 317, which clarifies that local school boards can enact policies that allow armed staff. The bill was then voted out of committee. The League is neutral on this legislation.
· HB 264 - Infrastructure Loans. Sponsored by Rep. Wilkin (R - Hillsboro) and Rep. O’Brien (D - Warren), would allow the Ohio Water Development Authority to provide for the refinancing of loans for certain public water and waste water infrastructure projects. The bill is currently pending in conference committee. The League is supportive of this legislation.
