OML UPDATE AT-A-GLANCE
Here are the top things you need to know from this past week:
· The Ohio House and Senate do not have session scheduled for next week. Both legislative houses are scheduled to return the first week of March to resume committee hearings and sessions.
Tuesday
· The Ohio House Ways and Means Committee held a second hearing on HB 519, which preempts municipal income tax by prohibiting a municipal tax administrator from sending any inquiries or send notices to taxpayers with extended tax filing deadlines and eliminates the penalty for taxpayers who have a filing requirement but do not owe any tax. Read what happened in the hearing in the article below.
Wednesday:
· The Ohio House passed HB 325, which is sponsored by Rep. Wiggam (R – Wooster), and preempting the authority of local governments from blocking firearms sales or seizing weapons during an emergency, such as a riot, by establishing firearm-related firms as "essential businesses" that can remain open during such emergencies. This preemption would prevent municipal leaders’ ability serve and protect the interests of their communities. Read more in the article below.
· The Ohio Senate passed legislation that will support economic development in medium and smaller municipalities through downtown revitalization. The bill, SB 225, is sponsored by Sen. Schuring (R – Canton) and would temporarily modify the historic rehabilitation and the opportunity zone investment tax credits. The League appreciates Sen. Schuring for sponsoring legislation that will help smaller municipalities strengthen their local economies through placemaking. Read more in the article below.
· In addition to the passage of HB 325, two Ohio House committees held hearings on four municipal preemption bills: SB 156 (Knives), HB 445 (Concealed Carry), HB 563 (Airbnb) and HB 327 (CRT-Critical Race Theory). These bills would continue to dramatically grow the size and scope of state government to the detriment of the bedrock philosophy of local control and represents the continued unmitigated assault on the Ohio Constitution and the powers bestowed specifically through article XVIII, the municipal Home Rule authority. The League strongly urges our members to contact their legislative representatives and urge them to not support these dangerous proposals and to end this assault on the citizens and communities across our state. Read more in the article below.
· The Ohio Senate Transportation Committee held a first hearing on SB 277, which would strip municipalities of critically needed infrastructure funding by suspending the 2019 gas tax increase of 10.5 cents and the diesel tax increase for 19 cents for five years. The bill would also suspend the annual registration fee of $200 on electric vehicles and $100 on hybrid vehicles, also for five years. Read more in the article below.
· The Ohio Supreme Court upheld a Twelfth District Court of Appeals ruling in favor of the village of New Miami’s use of speed-enforcement cameras. In 2013, a group of drivers who had received fines through the village’s speed-enforcement camera program filed a class action lawsuit against the village, winning an injunction against the program. However, the Twelfth District Court of Appeals ruled in favor of the village and denied the drivers refunds for the fines.
Thursday:
· Governor DeWine signed HB 51, which extends the authority of local governments to hold virtual meetings until June 30, 2022. Because of the bill's emergency clause, this authorization is effective immediately. The League thanks Governor DeWine for his immediate action on this bill.
· This day was the deadline given by the Ohio Supreme Court for the Ohio Redistricting Commission to adopt new state legislative maps. However, the deadline came and went, and the Ohio Redistricting Commission adjourned without adopting new state legislative maps, violating the Ohio Supreme Court order. The court can now direct the commission to again attempt to pass new maps or could hold the parties in contempt for not complying with the court’s order. We will keep our members apprized on this process.
Member Resources:
· The League has announced the 2022 schedule for the OML Municipal Officials Training Seminars. These important seminars will equip municipal officials to best lead their communities by covering topics such as home rule and local control, city and village financing procedures, council powers and procedures, public records and liability for municipalities and municipal officers. Click HERE to register. Learn more in the article below.
· OML Regional Conferences are back! Mark your calendars for the return of our in-person regional meetings from May through August. The League will once again be holding four one-day conferences in each of the four corners of our state to bring important educational resources and networking opportunities to our members. These meetings will be in addition to our Annual Conference which is scheduled for late fall of this year. Dates and location information can be found in the article below.
BILL PREEMPTING MUNICIPAL INCOME TAX RECEIVES SECOND HEARING
On Tuesday, the Ohio House Ways and Means Committee held a second hearing on HB 519, which is sponsored by Rep. Roemer (R – Richfield) and Rep. Lanese (R – Grove City) and would modify the law regarding extensions for filing municipal income tax returns and to limit penalties for late filings. Several proponents testified in support of the bill.
HB 519 would prohibit a municipal tax administrator from sending any inquiries or send notices to taxpayers whose tax filing deadline has been extended. The municipalities could send no such inquiry or notice about a taxpayer’s return until after either the taxpayer files the return or the extended due date passes.
If a tax administrator sends a prohibited inquiry or notice, the municipality must reimburse the taxpayer for any “reasonable costs” incurred in responding to it. This “reasonable cost” language is nebulous and not defined within the bill, and could result in unknown increased cost to municipalities, as well as frivolous litigation that would cost further taxpayer dollars. Municipalities do not always know when a taxpayer has received an extension, especially those with populations of less than 250,000 that do not have access to IRS records and therefore cannot know if a federal extension has been filed.
The bill also limits the cap on the penalties a municipality can impose for the failure to timely file a municipal income tax return to 50% of the unpaid tax, if that amount is less than $150. This would eliminate the penalty for taxpayers who have a filing requirement but do not owe any tax. Without a penalty, mandatory filing is no longer mandatory, but merely a suggestion. Municipalities spend considerable time and resources into compliance, and those costs should be reimbursed.
Late fees can be valuables tool to bring taxpayers into compliance, especially when they are delinquent for multiple years. Many municipalities will waive the late fees when asked, especially if the taxpayer is not a habitual late filer. This is one of the biggest values of local tax offices, as municipalities will work with taxpayers to resolve issues like this.
The League is opposed to this legislation and we strongly encourage our municipal leaders to reach out to their members of the Ohio House and Senate and tell them to support municipalities and their ability to enforce their local tax system. We will alert our members when the committee holds a third hearing for opponent testimony.
OHIO HOUSE PASSES BILL PREEMPTING MUNICIPAL AUTHORITY ON FIREARMS
On Wednesday, the Ohio House passed HB 325, which is sponsored by Rep. Wiggam (R – Wooster) and prohibit local governments from blocking firearms sales or seizing weapons during an emergency, such as a riot, by establishing firearm-related firms as "essential businesses" that can remain open during such emergencies. The bill passed by a vote of 62 to 35.
In an earlier committee hearing, the League reminded legislators in testimony that “the Ohio Constitution grants Home Rule authority to municipalities in recognition that a government closest to the people governs best, and that each city and village should be equipped to serve and protect the interests of their communities.” You can read the testimony in full HERE
There is another bill virtually identical to HB 325, also called “companion legislation.” That bill is SB 185, which is sponsored by Sen. Schaffer (R – Lancaster) and is currently still pending in the House Government Oversight Committee.
This legislation prevents local leaders from acting on behalf of the residents in their individual communities. No municipality is alike, which is why it is critical that each city and village maintain local control We urge our members to contact their state legislators and oppose this bill as state government overreach against Constitutionally granted municipal Home Rule authority.
OHIO HOUSE COMMITTEES HOLD HEARINGS ON FOUR BILLS PREEMPTING LOCAL CONTROL
This week, the House State and Local Government Committee and the Ohio House Government and Oversight Committee heard four bills that would preempt municipal Home Rule authority
Short-Term Rental Property
The House State and Local Government Committee held a first hearing on HB 563, which is sponsored by Rep. Fowler Arthur (R – Rock Creek) and Rep. Ferguson (R – Wintersville) and would limit local regulation of short-term rental property.
This legislation would preempt local governments from regulating or prohibiting the use of short-term rental properties. The bill limits the authority of local government to regulate these properties except in the areas of public health and safety, preventing public nuisances and ensuring fire and building standard compliance. You can read the bill in full HERE.
HB 563 is a clear violation of Home Rule authority and prohibits municipalities from creating necessary regulations that protect the best interest of the residents in each individual community. We urge our members to contact their representatives and express their opposition to this legislation.
Critical Race Theory
The House State and Local Government Committee also held a fifth hearing on HB 327, which is sponsored by Rep. Grendell (R – Chesterland) and Rep. Fowler (R – Rock Creek), would prohibit school districts, community schools, STEM schools, and state agencies from teaching, advocating, or promoting “divisive concepts”, such as critical race theory. During the bill’s fifth hearing, another substitute bill was adopted into the legislation.
Under the first substitute bill adopted in June 2021, the bill’s prohibitions extend to local governments regarding the teaching, instruction or training on “divisive concepts” to any employees, contractors and staff members, and prohibits requiring the adoption or belief in those concepts. The substitute bill adopted by the committee on Wednesday still contains this preemption on local control.
This provision regarding political subdivisions is an unfunded mandate directing local government to take measures to ensure compliance, including ensuring that grant funds will not be used to promote “divisive concepts”, reviewing employee training programs relating to diversity or inclusion, and ensuring that employees and contractors are continually in compliance with the legislation. You can read the bill analysis in full HERE.
We strongly encourage our members to contact their representatives and urge them to oppose HB 327 as a preemption of local control and an unfunded mandate. Local leaders must impress upon legislators that the issue of critical race theory is a school issue and does not pertain in any way to the operation of local government. HB 327 would interfere with municipal leaders’ ability to ensure good governance by burdening local governments with needless ongoing work to prove they are in compliance with the unfunded mandates of this bill.
Local Knife Regulations
This week, the Ohio House Government and Oversight Committee held a first hearing on
SB 156, which is sponsored by Sen. Roegner (R – Hudson) and would prohibit any ordinance from inhibiting a person’s ability to own, possess, purchase, acquire, transport, store, carry, sell, transfer, manufacture or keep any knife. The legislation also adds knives to the list of arms Ohioans have a right to keep and carry under the Ohio Revised Code. The bill would also allow individuals, groups or entities to file a civil action suit against a local government if they feel the local government has violated the provisions of this legislation.
This bill not only preempts Home Rule authority, but it would make municipalities vulnerable to the expense frivolous lawsuits, the cost of which would be borne by the taxpayer. Last year, the League submitted testimony opposing the House companion bill to SB 156, which you can read HERE.
Concealed Carry Licenses
The Ohio House Government and Oversight Committee also held a second hearing on HB 445, which is sponsored by Rep. Stoltzfus (R – Paris Twp.) and would provide an opportunity for a concealed handgun licensee or qualified military member to avoid charges for carrying a deadly weapon into a prohibited place if the person leaves upon request and would penalize failure to leave upon request or returning with a firearm. This legislation would preempt municipal authority to prohibit individuals from carrying deadly weapons into public facilities.
These bills continue the steady erosion of local control for communities across the state by preempting local authority granted to municipalities by the Ohio Constitution. The League strongly encourages our members to call their state representatives and tell them to protect the will of the people in their communities by not supporting these bills which violate the principles of local control.
OHIO SENATE PASSES BILL ENABLING ECONOMIC DEVELOPMENT THROUGH DOWNTOWN REVITALIZATIONS
On Wednesday, the Ohio Senate unanimously passed SB 225, which is sponsored by Sen. Schuring (R – Canton) and would enable economic development efforts especially in medium and small municipalities by temporarily modifying the historic rehabilitation and the opportunity zone investment tax credits.
The bill increases the Historic Preservation Tax Credit (HPTC) cap for rehabilitation tax credits $60 million per year to $120 million annually for FY22 and FY23. The bill also increases the maximum annual credit that can be claimed for one project from $5 million to $10 million and increase the amount of funds available for the Ohio Opportunity Zone Tax Credit from $50 million to $100 million dollars.
Critically, SB 225 increases the tax credit for smaller municipalities with populations under 71,000 from 25% to 35% to ensure that smaller communities get their fair share of projects. The bill also maintains the current provision in the HPTC law that requires the project to generate a net revenue gain in state and local taxes. You can find the bill analysis HERE and a summary of all the bill’s amendments HERE.
According to sponsor Sen. Schuring, the HTCP has resulted in $7 billion in investments since the program was created in 2007. The bill is intended to help stimulate Ohio’s economy over the next two years in the post COVID-19 shut down. We appreciate Sen. Schuring’s dedication to ensuring cities and villages across Ohio have access to economic development opportunities that will strengthen not only local and regional economies, but Ohio’s economy statewide.
BILL TEMPORARILY SUSPENDING NEW GAS TAX INCREASE RECEIVES FIRST HEARING
On Wednesday, the Senate Transportation Committee hearing held a first hearing on a bill
SB 277 is sponsored by Sen. Huffman (R - Tips City) and would temporarily reduce motor fuel excise tax rates and suspend collection of the additional motor vehicle registration taxes on electric and hybrid vehicles for five years.
This bill would suspend for five years the gas tax increase that was passed in the 2019 transportation budget bill, HB 62. The legislature approved a 10.5-cent increase per gallon on gas and a 19-cent increase per gallon for diesel. The bill also enacted an annual registration fee of $200 on electric vehicles and $100 on hybrid vehicles.
During his sponsor testimony, Sen. Huffman said he is working on an amendment that would keep local governments whole but said a process for how this would work has not yet been determined. The League thanks Sen. Huffman for recognizing the importance of these revenues to local governments and for the working on a solution that would keep cities and villages whole.
During the legislative process for HB 62 (133rd GA), the League was staunchly supportive of the gas tax increase and were members of the FOROhio coalition of interested parties that lobbied in support of the increase. Municipalities maintain over 70,000 lane miles and 2,500 bridges and have an annual count of over 100 million vehicle miles traveled, and funding for local road and bridges is dependent on the gas tax. Thanks to the 2019 increase, ODOT did not have to cut essential services when gas tax collections decreased sharply during the COVID-19 pandemic. This decrease in revenue, however, has resulted in much-needed infrastructure projects being delayed.
As Ohio continues to see a workforce shifting to permanent work-from-home policies, increased numbers of telecommuting employees will likely mean a continuation of depressed gas tax revenue collection. Additionally, federal funding through the American Rescue Plan Act (ARPA) and the Bipartisan Infrastructure Law (BIL) are one-time infusions of monies that are tightly regulated, restricting how municipalities can actually spend those funds. Suspending the gas tax increase will result in decreased funding for both much-needed infrastructure improvements as well as new roads and bridges.
The League will be closely tracking this legislation and will let our members know when there is an opportunity to testify against this bill.
LEAGUE ANNOUNCES DATES AND LOCATIONS FOR 2022 REGIONAL CONFERENCES
From May through August, the League will be holding four Regional Conferences throughout the state to bring important elements of our Annual Conference right to the doorstep of the local leaders who serve Ohio's cities and villages.
Our Regional Conferences are an invaluable opportunity for municipal officials across the state to attend presentations on the many critical issues facing Ohio’s cities and villages while connecting and networking with other local leaders in their area.
Mark your calendars for the following dates:
· Southeast: Friday, May 20 – Ohio University Conference Center in Athens
· Northeast: Friday, June 10 – Hilton Garden Inn in Akron
· Southwest: Friday, June 24 – Marriott NE Mason
· Northwest: Friday, August 5 – Hancock Hotel in Findlay
We will have the agenda and registration information available in the next few weeks. We look forward to seeing you there!
2022 SCHEDULE ANNOUNCED FOR OML MUNICIPAL OFFICIALS TRAINING SEMINARS
The League is excited to announce the 2022 schedule for our Municipal Officials Training Seminars. These seminars are designed to prepare our local leaders for the issues and responsibilities they manage as municipal officials and assist in navigating the successful management of their communities.
The presentations will cover topics such as what is Home Rule and what authorities are granted to municipalities through local control, new changes to city and village financing procedures, council procedures and authorities, management responsibilities related to public records and liability issues for municipalities.
The following are the dates and locations for this year’s Municipal Officials Training Seminars:
· Saturday, March 5 – Cincinnati Marriott Northeast
· Saturday, March 12 – Doubletree Columbus/Worthington
· Saturday, March 26 – Embassy Suites Rockside, Independence
These seminars are a great opportunity for both local leaders starting their first terms in office and current municipal leaders. To find out more information and register, click HERE
UPCOMING FEBRUARY, MARCH AND APRIL OML/OMAA WEBINARS
On Wednesday, February 23 from 11 a.m. to 12 p.m., the League and the OMAA will be hosting a webinar called “Labor and Employment Issues – Basics of Discipline.” Public employees have constitutional procedural rights which are strictly enforced by courts, arbitrators, and in civil service appeals. This webinar will examine which employees are subject to the standards, the multiple standards, and provide the legal basis for each including the Loudermill and Garrity standards. Investigation techniques and potential conflict between administrative and criminal investigations and discipline in union and civil service environments will be addressed. Practical applications will be presented, and sample forms and outlines will be provided. Learn more and register HERE.
On Thursday, March 10 from 11 a.m. to 12 p.m., the League and the OMAA are hosting a webinar entitled “Update on Public Records Act and Open Meetings Act.” Public bodies are forced to handle a world where opinions and emotions run strong. This webinar will discuss what a municipality can and cannot do under the Public Records Act and the Open Meetings Act to deal with such hostilities—what public records must be released and what can be withheld, how to run a meeting, what is allowed and not allowed during public participation, and how to handle a meeting when tensions may escalate. Learn more and register HERE.
On Thursday, March 24 from 11 a.m. to 12 p.m., the League and the OMAA are hosting a webinar entitled “’How Can I Help?’ And Other Tips for Complying with the ADA.” Disability discrimination claims continue to be a tricky and expensive litigated issue for many employers. This webinar will discuss disability discrimination laws to gain deeper understanding of the requirements and best practices when dealing with employee disability accommodation requests. The presentation review what municipal employers need to know through the use of scenarios that will include a discussion on what is and is not a disability, what is a reasonable accommodation and what members must do in order to have a legally-compliant interactive process in place. Learn more and register HERE.
Finally, on Thursday, April 28 from 11 a.m. to 12 p.m., the League and the OMAA are hosting a webinar entitled “Nuisance Abatement.” Ohio’s nuisance abatement law empowers municipalities to address properties with chronic code violations, as well as properties with chronic criminal activity. This webinar will provide a general overview of Ohio nuisance abatement law and a framework for its practical application in municipalities of any size. Learn more and register HERE.
BILLS OF MUNICIPAL INTEREST PASSED BY THE OHIO LEGISLATURE
· HB 109 – Criminal Penalties (Abrams, C., Carruthers, S.), would increase penalties for certain assault, vandalism, and riot offenses, to allow peace officers to bring civil suits against persons participating in a riot, and to prohibit bias motivated intimidation of first responders. The Ohio House passed the bill by a vote of 59 to 35. The League is currently neutral on this legislation.
· HB 184 – OPF Disability. Sponsored by Rep. Carfagna (R – Genoa Twp.), would revise Ohio Police and Fire Pension Fund disability determination procedures. The Ohio Senate passed the bill unanimously. The League is neutral on this legislation.
COMMITTEE RECAP: BILLS OF MUNICIPAL INTEREST
· HB 478 – Radio Communication Equipment. Sponsored by Rep. Stein (R – Norwalk) and Rep. Ray (R – Wadsworth), would provide funding for the acquisition of Multi-Agency Radio Communication System (MARCS) equipment. During its first hearing before the House Finance Committee, the bill’s sponsor said that the bill allocates $1 million in FY22 to allow the Department of Administrative Services (DAS)to purchase equipment to allow public safety agencies to communicate with various radio systems. The League is supportive of this legislation.
· HB 123 – Community Reinvestment Areas. Sponsored by Rep. Fraizer (R – Newark) and Rep. Cross (R – Kenton), would modify the law governing community reinvestment areas and the terms under which property may be exempted in such areas. During its third hearing before the Senate Ways and Means Committee, opponents including the Ohio School Boards Association testified against the bill. The County Commissioners Association of Ohio testified as interested party. The League supports this bill.
· HB 422 – Municipal Utilities. Sponsored by Rep. Fraizer (R – Newark) and Rep. West (D – Canton), would limit the amount municipal corporations can recover from property owners of non-owner-occupied properties for unpaid municipal utility and other service rates and charges and create an appeals process for improper billing of municipal services. During the bill’s third hearing before the House State and Local Government Committee, the bill’s sponsor introduced a substitute bill due to the fact that the bill sough to address a problem that is already not allowed in current law. The substitute bill changes the legislation so that now it requires local legislative authorities to provide county auditors with additional information for a service lien and creates an appeal process through the Environmental Review Appeals Commission. You can read the substitute bill HERE. The League is still looking into 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 third hearing before the House State and Local Government Elections Committee, the bill was amended to include city auditors. The League supports this legislation.
· SB 215 – Concealed Handguns. Sponsored by Sen. Johnson (R – McDermott), is regarding a concealed handgun licensee's duty to carry the license and notify a law enforcement officer if the licensee is carrying a concealed handgun, a right of a person age twenty-one or older and not legally prohibited from firearm possession to carry a concealed handgun in the same manner as if the person was a licensee, and a pretrial immunity hearing. During its third hearing before the House Government Oversight Committee, opponents including the Ohio Fraternal Order of Police and the Ohio Mayors alliance testified against the bill. The League is neutral on this legislation.
