OML UPDATE AT-A-GLANCE
Here are the top eight things you need to know from this past week:
· Due to the legislature breaking for the Thanksgiving holiday, we will not be sending a legislative bulletin next week. All of us at the League wish you and yours a Happy Thanksgiving!
· On Monday, President Biden signed the “Infrastructure Investment and Jobs Act” (IIJA), a $1.2 trillion package that includes $550 billion over 5 years in new federal investments for infrastructure nationwide. The bill will also add an estimated two million jobs per year to the national economy. You can find a section-by-section summary made available by the National League of Cities (NLC) HERE and a fact sheet from the White House on Ohio’s distribution HERE. Read more in the article below.
· The Ohio General Assembly has released its tentative legislative schedule for 2022. The opening of the second year of the 134th General Assembly is scheduled for January 19. All scheduled floor sessions are set for Wednesdays at 1:30 p.m. You can find the full schedule HERE.
· This week, the Ohio legislature passed SB 258, the redistricting legislation establishing Ohio’s Congressional districts. You can see the proposed map HERE. The new map accounts for the district Ohio lost after the 2020 census and could favor Republicans in 13 of the 15 districts. Because no Democrats voted in favor of the new maps, according to the Ohio constitution, the maps will only last for four years rather than ten. It is likely that the maps will be challenged in the Ohio Supreme Court. We will continue to keep our members up to date on this issue.
· JobsOhio has created an American Rescue Plan Act (ARPA) Guidebook as a resource for local leaders looking to maximize impact of ARP funds and become better informed about ARPA funds and potential investments. The Guidebook is the result of JobsOhio’s work with more than 20 major partner organizations and over 200 local leaders and elected officials in order to understand their priorities and needs as well as what opportunities exist for collaboration and co-investment with ARPA funds. Learn more and download the Guidebook HERE.
· Last week on Wednesday, November 10, the Ohio Ethics Commission issued a formal Advisory Opinion which addresses the question of whether a member of a legislative body of a local governmental entity can vote to elect himself or herself to serve as presiding officer of the public entity, such as a city council. The Commission determined that such a member is not prohibited from voting to elect himself or herself to serve as a presiding officer, provided that the amount of any additional payment for this service is set prior to the vote. Read more about the Advisory Opinion HERE.
· The Ohio Department of Natural Resources (ODNR) announced the approval of over $5.2 million through the NatureWorks grant program to improve recreation opportunities across the state. The funds will be allocated to 115 projects in 79 counties. Projects include acquisition of new park lands and development of playgrounds, trails, restrooms, baseball fields, basketball courts, tennis and pickleball courts, swimming pools, kayak launches, disc golf courses, and more. Learn more HERE.
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On Tuesday, December 7, The Ohio Office of Budget and Management (OBM) is virtually hosting the second Ohio Grants Summit. The first summit was held in September of 2020. The Ohio Grants Summit is a unique event offering the opportunity to connect local government leaders and financial managers to resources and education to support their management of federal grant funds. Don’t miss out on this important and informative event! To learn more and to register, click HERE. Read more in the article below.
OHIO HOUSE PASSES VACCINE MANDATE EXEMPTION BILL
This week, the Ohio House passed HB 218, which was amended to include language limiting vaccine mandates and passports.
HB 218, which is sponsored by Rep. Cutrona (R – Canfield) and was originally drafted to extend bar hours of operations, now contains language similar to HB 435, which was originally sponsored by Rep. Carfagna (R – Genoa Twp.) and Rep. Seitz (R – Green Township).
The bill now prohibits employers, schools and institutions of higher education from requiring vaccines that has not been fully approved by the FDA and provide exemptions to such vaccine mandates medical reasons, natural immunity demonstrated by COVID-19 antibodies and religious beliefs. These provisions would sunset in 2025. The bill also states that an injury from a mandated COVID-19 vaccine is eligible for workers' compensation barring certain exceptions and it allows emergency medical technicians with proper training to conduct COVID-19 tests. You can read the bill analysis HERE and the comparison document HERE.
The bill includes an infringement on local control by prohibiting facilities owned by a political subdivision from requiring proof of vaccination. The League stands opposed to preemptions on local control.
Another provision impacting municipalities is language extending qualified immunity for institutions including local governments. This provision was initially in HB 606 during the 133rd General Assembly. The qualified immunity would be extended through June 30, 2023. You can read the HB 606 analysis HERE.
HB 218 now heads to the Ohio Senate to begin the committee hearing process We will continue to keep our members apprised of this legislation.
SOVEREIGN IMMUNITY CHANGES PASSED OUT OF OHIO HOUSE COMMITTEE
This week, the House Civil Justice Committee passed SB 56, which contains an amendment impacting municipal sovereign immunity. The amendment was adopted into SB 56 last week and is similar to language that the League helped craft during the last General Assembly. The bill is sponsored by Sen. Blessing (R – Colerain Twp.) and was written to regulate the use of indemnity provisions in professional design contracts related to public improvements.
The amendment modifies the definition of "emergency call" and removes the reference to "a call to duty" in the existing definition of "emergency call”. It also requires the reduction of compensatory damages recoverable against a municipality by the percentage of contributory fault that can be attributed to the plaintiff or any other party. The League is neutral on this amendment, which you can read in full HERE.
Another amendment was adopted into SB 56 this week to extend similar immunity to hospital police. The bill will now head to the House floor for a vote by the full House. We will continue to keep our members apprised on this legislation
LEGISLATION FUNDING STATEWIDE STUDY OF BROWNFIELD SITE LOCATIONS AMENDED TO REDIRECT FUNDING TO ASSESSMENTS
This week, a substitute bill redirecting funding for brownfield revitalization was adopted into SB 83. The bill, which is sponsored by Sen. Williams (D – Cleveland) and Sen. Rulli (R – Salem), was originally drafted to require the Ohio Environmental Protection Agency to conduct a study to determine where brownfield sites are located in this state and make an appropriation.
During its fourth hearing before the House Agriculture and Conservation Committee, the bill was amended to direct the $150,000 appropriation in the original bill to a voluntary program for Phase 1 property assessments for contamination at no cost to communities. You can read the substitute bill HERE.
The deputy government affairs director at Ohio EPA testified before the committee that a lawsuit approximately 20 years ago determined that Ohio EPA had no authority to keep a “master sites list” of brownfields across the state. The lawsuit was filed due to complains that the site had a negative effect on property values.
There had also been concerns that it would not be possible to complete the study mandated in the original version of SB 83 due to the expense of testing site samples.
According to Ohio EPA’s testimony, the assessments that would be funded by the new version of SB 83 can open the door for brownfield redevelopment and determine that a site is eligible for inclusion in the agency’s Voluntary Action Program (VAP), which allows private sector cleanup of a brownfield site under certain Ohio EPA standards. You can read more about the VAP HERE. The assessments can also give prospective site buyers legal protection.
We will continue to keep our members apprised on this legislation.
IRS RELEASES UPDATED GUIDANCE FOR LOCAL GOVERNMENTS OF TAXABILITY AND REPORTING OF PAYMENTS FROM APRA FUNDS
The IRS has released a new FAQ for states and local governments on taxability and reporting of payments from Coronavirus State and Local Fiscal Recovery Funds (SLFR) established under the American Rescue Plan Act (ARPA). The updated guidance is regarding payments to individuals. Key information to note includes the following:
· Premium pay amounts paid to employees are considered wages. Employers generally must withhold federal income tax as well as social security tax and Medicare tax from employees' wages. (Employers also may have to pay federal unemployment tax on the wages.)
· Any payment from SLFRF that is in the nature of compensation for services, even a one-time payment (such as a hiring "bonus"), is considered wages.
· Payments to individuals from SLFRF for utilities (or arrearages of utilities) is NOT considered income and therefore a Form 1099-MISC is not required.
· Other cash transfers to individuals is not income, and therefore no Form 1099-MISC or other information return is required to be filed with the IRS or furnished to the recipient.
You can fund the full updated FAQ HERE.
PRESIDENT SIGNS INFRASTRUCTURE BILL WITH BILLIONS IN FUNDING FOR OHIO
On Monday, President Biden signed the “Infrastructure Investment and Jobs Act” (IIJA), a $1.2 trillion package that includes $550 billion over 5 years in new federal investments for infrastructure nationwide. The bill will also add an estimated two million jobs per year to the national economy. You can find a section-by-section summary made available by the National League of Cities (NLC) HERE.
Ohio will receive the following infrastructure investments:
· $9.2 billion for Ohio’s roads and highways
· Approximately $500 million to assist with bridge repairs and $12.5 billion available in competitive grants
· At least $100 million to expand broadband to unreached areas of the state
· $1.4 billion for water infrastructure
· $1.2 billion for public mass transportation
· $253 million for airport improvements
· $140 million for the construction electric vehicle charging network in the state
· $1 billion for the Great Lakes Restoration Initiative to decrease pollution, prevent invasive species, and mitigate erosion and rising lake levels
You can find a fact sheet from the White House on Ohio’s distribution HERE.
The IIJA includes the following nationwide infrastructure investments:
· $110 billion for roads, bridges and other major infrastructure projects
· $40 billion for bridge repair, replacement and rehabilitation
· $66 billion for passenger and freight rail
· $39.2 billion for public transit
· $65 billion for broadband
· $55 billion for upgrading water systems, including replacing lead pipes
· $47.2 billion for cybersecurity
· $16.6 billion for port infrastructure
· $25 billion for airports
· $21 billion for brownfield remediation
· $50 billion for communities to deal with natural disasters like fires, floods, storms and droughts
· $11 billion for transportation safety, including a funding program to help states and local governments to reduce crashes and fatalities
· $7.5 billion for zero- and low-emission buses and ferries
· $7.5 billion for the construction of a nationwide network of electric vehicle chargers
· $65 billion to rebuild the electric grid nationwide
· $1 billion for reconnecting communities by removing barriers to opportunity caused by legacy infrastructure
· $8.3 billion for the Bureau of Reclamation western water infrastructure
· $16 billion for major projects that are too large or complex for traditional funding programs
We will alert our members when there is more information regarding when the funds will be distributed and how Ohio cities and villages will be able to access revenues available to local governments. We will also keep members apprised of further breakdowns and summaries regarding the funding as that information becomes available.
OHIO OFFICE OF BUDGET AND MANAGEMENT (OBM) TO HOLD SECOND OHIO GRANTS SUMMIT
On Tuesday, December 7, The Ohio Office of Budget and Management is virtually hosting the second Ohio Grants Summit. The first summit was held in September of 2020.
The Ohio Grants Summit is a unique event offering the opportunity to connect local government leaders and financial managers to resources and education to support their management of federal grant funds. This year, the Summit sessions include the following topics:
o Ohio Broadband;
o Emerging Issues in Federal Funds;
o Allowable Uses of Fiscal Recovery Funds on Water and Wastewater Infrastructure;
o Preparing for a Single Audit and Accounting for COVID Funds;
o Federal Procurement; and
o Compliance and Legal Considerations with Fiscal Recovery Funds
o This free event is specifically for local governments and non-profits that apply for and receive grant funding from the State of Ohio.
Don’t miss out on this important and informative event! To learn more and to register, click HERE.
PEP MEMBERS ELIGIBLE FOR REIMBURSEMENTS ON QUALIFIED EXPENSES
PEP members are eligible to receive up to $1,000 in reimbursements for qualified expenses on a first-come, first-served basis. Qualified expenses include safety items wherein the primary purpose of the item is the prevention or reduction of liability claims or property losses, as well as risk control training.
In order for 2021 expenses to be considered for reimbursement, municipalities’ PEP+ Grant application must be submitted by December 31, 2021. Learn more and apply for the grant HERE.
APPLICATIONS OPEN FOR ELECTRIC VEHICLE CHARGING STATIONS GRANT
The Ohio EPA is inviting applications for grants under its Diesel Mitigation Trust Fund (DMTF) program to help fund the installation of publicly available DC Fast Charging (DCFC) Electric Vehicle (EV) charging stations in 26 Ohio priority counties. This program is supported with funds from Ohio’s allocation under the Volkswagen Mitigation Trust Fund.
For chargers located on Government Owned property, Ohio EPA will provide up to 100% of eligible project costs. For chargers located on Non-Government Owned property, Ohio EPA will provide up to 80% of eligible project costs.
INVITATION TO JOIN MUNICIPAL ENGINEERS ASSOCIATION OF OHIO (MEAO)
The League is inviting your municipal engineer to become an inaugural member of the Municipal Engineers Association of Ohio. As an inaugural member, your municipality will help us shape the mission, goals, and priorities of this important organization. Membership will allow you to engage your fellow municipal engineers, understand and impact state legislation, programs and policies, receive professional development. Learn more about MEAO membership HERE.
BILLS OF MUNICIPAL INTEREST PASSED BY THE OHIO HOUSE
· SB 115 – Pooled Collateral. Sponsored by Sen. Schuring, (R – Canton), would make changes to the Ohio Pooled Collateral Program. The bill was passed unanimously by the House and now heads to the Governor’s desk for his signature.
· HB 227 – Concealed Weapons. Sponsored by Rep. Brinkman (R – Cincinnati) and Rep. Jordan (R – Ostrander), would rename a concealed handgun license as a concealed weapons license, allow a concealed weapons licensee to carry concealed all deadly weapons not otherwise prohibited by law, expand state preemption of firearms regulation to include all deadly weapons, repeal a notice requirement for licensees stopped for law enforcement purposes, authorize expungement of related convictions, and allow a person age 21 or older to carry a concealed deadly weapon without a license. The bill was passed 60-32 and now proceeds to the Senate to begin the committee hearing process.
COMMITTEE RECAP: BILLS OF MUNICIPAL INTEREST
· HB 445 – 9-1-1. Sponsored by Rep. Carfagna (R – Genoa Twp.) and Rep. Smith (D – Euclid), would make changes to the law governing 9-1-1 service and to repeal program requirements for emergency-service-telecommunicator training. During its second hearing before the House Transportation and Public Safety Committee, proponents including the League submitted testimony in support of this legislation. You can read the League’s testimony HERE.
· HB 458 – Special Elections. Sponsored by Rep. Hall (R - Middletown), would eliminate August special elections except when held to nominate or elect candidates for the United States House of Representatives. During its second hearing before the House Ways and Means Committee, proponents testified in support of the bill. The bill’s sponsor stated that an amendment is being drafted to allow local governments to place tax issues on August special election allows if they are going into fiscal emergency; this provision is currently not in the bill. The League has concerns with this legislation as currently drafted.
· HB 126 – Property Values. Sponsored by Rep. Merrin (R – Monclova Twp.), would require local governments that contest property values to formally pass an authorizing resolution for each contest and notify property owners. During its fourth hearing before the Senate Ways and Means Committee, an amendment was discussed that would completely ban local governments from challenging property tax values, to which the League is opposed. Both opponents and proponents testified on the bill. Pending the possible adoption of the discussed amendment, the League is neutral on this legislation.
· HB 470 – Multi-Family Residential Housing. Sponsored by Rep. Hillyer (R – Urichsville), would authorize the Ohio community investor credit for qualifying developers of multi-family residential housing projects. During its first hearing before the House Ways and Means Committee, the bill’s sponsor explained that the legislation would “authorize developers of multi-family residential housing developments in Ohio that derive at least 1% of their funding from non-accredited Ohio investors to qualify for a nonrefundable income tax credit equal to a portion of project development costs.” The League is still looking into this legislation.
· SB 105 – Minority Businesses. Sponsored by Sen. Sykes (D – Akron) and Sen. Schuring (R – Canton), would require political subdivisions to recognize state certifications of minority business enterprises. During its third hearing before the House Economic and Workforce Development Committee, the bill was amended to reflect language passed in HB 110, the state operating budget bill, that transferred authority over minority-, women- and veteran-owned business programs to the Department of Development (DOD). The League is neutral on this legislation.
· HB 88 – Roofing Contractors. Sponsored by Rep. Patton (R – Strongsville), would require commercial roofing contractors to have a license. During its second hearing before the House Commerce and Labor Committee, proponents including the Ohio Association of Professional Fire Fighters, the Ohio Roofing Contractors Association and the Northern Ohio Fire Fighters Association testified in support of this legislation. The League is neutral on this legislation.
· SB 15 – Fiscal Officers. Sen. Wilson (R - Maineville), would change the circumstances in which certain fiscal officers may be held liable for a loss of public funds. During its first hearing before the House State and Local Government Elections Committee, the bill’s sponsor explained that the bill would only make fiscal officers liable for funds lost due to “negligence or a wrongful act”. The League is supportive of this legislation.
· HB 328 – Office of Drug Policy. Sponsored by Rep. Brown (D – Canal Winchester), would establish the Governor's Office of Drug Policy. During its third hearing before the House Behavioral Health and Recovery Supports Committee, no testimony was given on the bill. The League is supportive of this legislation.
