Legislative

2011 ELECTED STATE OFFICIALS

Governor

Lieutenant Governor
John Kasich Mary Taylor
Riffe Center, 30th Floor Riffe Center, 30th Floor
Columbus, OH 43215-6108 Columbus, OH 43215-6117
614-466-3555 / phone 614-466-3396 / phone
614-466-9354 / fax 614-466-9354 / fax
Treasurer of State Attorney General
John Mandel Mike DeWine
30 E. Broad Street, 9th Floor 30 E. Broad Street, 17th Floor
Columbus, OH 43215 Columbus, OH 43215-3428
614-466-2160 / phone 614-466-4986 / phone
800-228-1102 / toll free 800-282-0515 / toll free
constituentaffairs.tos.ohio.gov Mon. – Fri.:  8 a.m. to 7 p.m.
Secretary of State Auditor of State
Jon Husted Dave Yost
180 E. Broad Street 88 E. Broad Street, 5th Floor
Columbus, OH 43215 Columbus, OH 43215
614-466-2655 / phone 614-466-4514 / phone
877-767-6446 / toll free 800-282-0370 / toll free
OHIO HOUSE OF REPRESENTATIVES
81st District 76th District
Rex Damschroder Robert Sprague
77 S. High Street, 12th Floor 77 S. High Street, 13th Floor
Columbus, OH 43215-6111 Columbus, OH 43215-6111
614-466-1374 / phone 614-466-3819 / phone
614-719-6981 / fax 614-719-3976 / fax
district81@ohr.state.oh.us district76@ohr.state.oh.us
6th District
Randy Gardner
77 S. High Street, 13th Floor
Columbus, OH 43215-6111
614-466-8104 / phone
614-719-0006 / fax
district 06@ohr.state.oh.us
OHIO SENATE
26th District 1st District
Dave Burke Cliff Hite
1 Capitol Square, Ground Floor 1 Capitol Square, 1st Floor
Columbus, OH 43215 Columbus, OH 43215
614-466-8049 / phone 614-466-8150 / phone
SD26@senate.state.oh.us SD01@senate.state.oh.us

2nd District

Mark Wagoner
1 Capitol Square, 1st Floor
Columbus, OH 43215
614-466-8060 / phone
SD02@senate.state.oh.us
U.S. HOUSE OF REPRESENTATIVES
Jim Jordan Bob Latta
www.jordan.house.gov www.latta.house.gov
1524 Longworth House Office Bldg. 1323 Longworth House Office Bldg.
Dist. Of Columbia 20515-3504 Dist. Of Columbia 20515-3505
202-225-2676 / phone 202-225-6405 / phone
202-226-0577 / fax 202-225-1985 / fax
Mansfield Office: Norwalk Office:
24 West Third Street, Rm 314 11 E. Main Street
Mansfield, OH 44902 Norwalk, OH 44857
419-522-5757 / phone 419-668-0206 / phone

419-525-2805 / fax

800-278-8203 / fax

NORED LEGISLATIVE UPDATES: February 2, 2012

SB 216 – Renewable energy standards

SB 216 introduced by Sen. Kris Jordan (R-Powell) to eliminate the requirement that 12.5 percent of Ohio’s energy come from renewable sources by 2025 got a relatively warm reception from members of the Senate Energy & Public Utilities Committee on Wednesday, February 1.

 

Enacted as part of the Strickland Administration’s 2008 overhaul of electric utility law (SB221, 127th General Assembly), the law requires that 25% of the electricity consumed in Ohio come from advanced sources by 2025. Half of that amount is reserved for renewable energy, such as wind and solar, and the other half is dedicated to “advanced sources,” like high-tech nuclear, coal, and natural gas.

 

Sen. Jordan told the Senate Energy and Public Utilities Committee that the renewable-energy standard will increase electricity costs and cost jobs. He cited a study by the free-market research group Beacon Hill Institute that showed the state’s requirement would raise Ohioans’ electricity costs by $8.6 billion between 2016 and 2025.

 

A few Republican senators on the committee spoke approvingly of the bill.

Sen. Troy Balderson, a Zanesville Republican and committee vice chairman, said he likes the bill, but he noted that his district is in line for a large plant, Turning Point Solar, a nearly 240,000-panel solar array to be built near The Wilds nature conservancy.

 

The bill appears to be mostly backed by AEP. It remains to be seen whether the bill will receive additional consideration in committee. Energy policy issues are also anticipated to be part of Governor Kasich’s upcoming mid-biennium budget review legislation which is expected to be unveiled after the March 7 primary election.

 

Link to SB 216: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_216

 

JobsOhio implementation

Earlier this month the Kasich administration officials announced details of the agreement to transfer the state’s liquor sale operations to JobsOhio and outlined legislation to restructure what remains of the Department of Development.

 

The complex franchise transfer agreement with the Department of Commerce ensures that JobsOhio will receive all revenue from the state’s liquor operation during the next 25 years to help fund job creation efforts in Ohio. Lawmakers originally authorized the liquor operation transfer in the biennial budget legislation (HB 153) which was enacted last summer.

 

The transfer is likely to generate $100 million a year for the new economic development entity to retain and attract employers to Ohio. In exchange for receiving the liquor enterprise franchise, JobsOhio will pay the state $1.4 billion by issuing long-term bonds backed by future liquor profit revenue.

 

JobsOhio will be charged with paying all expenses for the Division of Liquor Control to distribute and merchandise liquor, and to repay the new bonds that the entity issues to finance the cost of the franchise.

 

The following is a link to a fact sheet describing the yet to be introduced legislation:

http://governor.ohio.gov/Portals/0/pdf/Part%20IV%20-%20DSA%20Bill%20Fact%20Sheet_FINAL.pdf

 

The administration said they are working with Rep. Christina Hagan (R-Uniontown) and Rep. Mike Dovilla (R-Berea) on legislation to restructure the agency after JobsOhio assumes control of job creation efforts. The legislation is expected to be introduced in mid-February.

 

In addition to changing the agency’s name to the Ohio Development Services Agency (OSDA), the legislation primarily makes technical changes to eliminate unnecessary operations and inefficiencies. The legislation will also attempt to simplify the tax credit approval process by making the incentives effective upon a recommendation by both the JobsOhio chief investment officer and the ODSA director with final sign-off authority falling to the Tax Credit Authority.

 

The contract will also authorize JobsOhio to commit up to $43 million a year to continue Clean Ohio brownfield revitalization programs, which lost their funding stream when the liquor revenues were diverted to the private entity.

 

JobsOhio has identified several business sectors that it says are critical to the state’s economic success. Among the sectors are energy, automotive, aerospace, finance, information technology and biotechnology.

 

At a public meeting on Wednesday, JobsOhio board members heard status reports on each industry, what the agency can do to develop it, and potential issues that the state could face in the process.

 

SB 271 – Telecommunications investments

The Senate Energy & Public Utilities Committee has been considering SB 271 introduced by Sen. Frank LaRose (R-Akron) which would update telecommunications regulations to reflect the changing consumer demands for alternative technologies.

 

The bill is primarily backed by AT&T and other telephone service providers and would eliminate what are described as outdated regulations that divert investment away from improving the telecommunications infrastructure.

 

Recently the committee heard from representatives of AT&T, CenturyLink, and the Ohio Telecommunications Association in support of the bill.

 

AT&T Ohio President Tom Pelto told members that the current “carrier of last resort” (COLR) requirement was a vestige of the monopoly era, when getting an exclusive franchise carried the obligation to serve all customers within a service area.

 

“In today’s fully competitive telecommunications marketplace, the COLR obligation has become an exclusive license to lose money,” he said, noting the regulation forces telephone companies to spend money to deliver landline service where there might be no demand for it.

 

Those expenditures reduce the amount of money AT&T can spend on advanced wireline services, such as DSL, and mobile broadband networks, Mr. Pelto said. “It remains our ambition to maximize mobile broadband and COLR is a curse of this quest.”

 

The Ohio Telephone Association testified that the telecommunications industry has evolved very rapidly in recent years. The number of wireless subscribers now outpaces landline customers by 3.5 to 1 and broadband availability has expanded to 99% for Ohioans.

 

The telecom industry spends more than $1 billion a year on maintaining the network. Proponents of SB 271 argued that it is necessary for the regulatory rules to reflect the marketplace in Ohio in order for telecommunications companies to continue this type of investment.

 

In addition, the legislation is being touted as a benefit to telecommunications carriers that serve rural territory in response to pending changes at the federal level. The Federal Communications Commission plans to eliminate the federal Universal Service Fund for traditional voice services and transfer the money into a fund that will support broadband deployment in un-served areas.

 

Transportation funding

On Tuesday, January 31, 2012 the Transportation Review Advisory Council (TRAC) voted to accept the draft list of the Ohio Department of Transportation’s (ODOT) major new transportation projects throughout the state. The TRAC vote launches a 45-day written public comment period as the state looks to adopt what ODOT Director and TRAC Chairman Jerry Wray describes as an “honest and fiscally responsible list of current and new construction projects.”

 

“What we are doing right now is trying to provide communities with a realistic and honest look at the amount of money ODOT anticipates having in future years and balancing that with major new and important transportation construction projects throughout Ohio,” Wray said. “The result is that many projects are pushed back years and, in some cases, decades.”

 

For the next 45-days, written public comments may be sent to the following addresses: trac@dot.state.oh.us, or to the Ohio Department of Transportation, C/O Jim Gates, 1980 West Broad Street, Columbus, Ohio 43223.

 

Once the written public comment period concludes, the TRAC will decide if additional public hearings are needed, then proceed with a vote later this year to accept a final TRAC list.

 

Last year, the TRAC received 72 applications for transportation projects totaling nearly $10 billion. Planning, design and construction of various phases of additional projects totaling $2 billion is already underway. However, ODOT estimates roughly $100 million per year to spend on new construction.

 

ODOT is funded completely with state and federal motor fuel tax. As inflation drives up the cost of construction materials, vehicles become more fuel efficient and fuel consumption decreases, TRAC revenue has shrunk over the past several years.

 

The nine-member TRAC was established by the Ohio Revised Code in 1997 and provides guidance for developing a project selection process for ODOT’s largest investments of more than $12 million.

 

The following is a link to the 2013-2016 draft TRAC Preliminary Major New Program List: http://www.dot.state.oh.us/trac/TRAC%20List/DRAFT_Major_New_Program_List-1-31-12.pdf

 

Workforce development recommendations

The Ohio House Workforce Development Study Committee was created last year as a bipartisan ad hoc committee that traveled the state to solicit feedback from the front-line providers of services, the businesses who need skilled workers and a responsive workforce system, and the workers looking to improve their skills to keep their jobs and move on to better opportunities.

 

The committee held hearings throughout the state. Committee members listened to expert testimony from groups and individuals with practical knowledge in their respective programs. Meetings were held at Miami University-Middletown, Ohio University, Bowling Green State University, and

Lorain County Community College.

 

The committee recently released the following recommendations:

 

  • Introduce and pass a resolution urging Congress to modernize the Workforce Investment Act. It is vital that Congress give the States the flexibility and authority needed to administer programs that are responsive to industry demand and that bridge short term skill gaps among workers to align job seekers with available jobs.

 

  • The Workforce Development system needs to create and collect strategic performance metrics and outcome data and share the information across all agencies. In addition to outcomes like placements, the system needs to develop measures like wage level, advancement potential and job retention rates. Efforts should also be made to develop measures considering the value that employers place on the workforce system which will encourage providers to consider the business demand for their services.

 

  • The University System of Ohio and the Board of Regents should require that an Internship or Co-op program be included as part of the curriculum required for a degree. The Ohio House should hold committee hearings on this issue and work with Chancellor Petro and the Kasich Administration on expanding opportunities for experiential learning. Given its complexity, this issue requires further debate and discussion from interested parties.

 

  • The Ohio Department of Jobs and Family Services should study the GeorgiaWork$ training model that allows the unemployed to get valuable on the job training experience and implement the successful aspects of that model.

 

  • The Ohio House should introduce and pass legislation that would allow eligible unemployment claimants to simultaneously receive on-site workplace training and regular UI benefits.

 

  • Ohio needs to “re-brand” the One Stop Shops so they all operate with one common and identifiable name. Such an effort at re-branding would assist in the marketing efforts of services provided to both employers and employees. The new brand should also be reflected in searchable databases and websites that promote the sharing of information between employers and employees. The Administration should partner with JobsOhio and other existing marketing efforts such as the partnership with Monster.com that led to the development of the www.OhioMeansJobs.com website to unify workforce development and economic development efforts.

 

  • The Ohio House should draft legislation and work with the Administration to develop a unified brand approach to marketing the workforce development system. The committee encourages the utilization of existing resources such as community colleges and career tech schools to build upon successful partnerships.

 

  • Ohio needs to promote an industry-led workforce development system that includes business leadership to develop a shared agenda that will foster collaboration and allow for the application of proven strategies, processes, and techniques. The Workforce Development System in Ohio should align itself with all of Ohio’s efforts to recruit and serve businesses. Effective regional service structures need to provide oversight, collaboration, and possible consolidation with “like” agencies.

 

  • The Ohio House should introduce and pass legislation to align existing Workforce Investment regions with the six JobsOhio regions.

 

Please contact me if you would like a complete copy of this committee’s report and recommendations.

 

New Legislation – SiteOhio (HB 436)

Rep. Cheryl Grossman (R-Grove City) recently introduced HB 436 to create the SiteOhio certification program within the Department of Development and to certify and market eligible commercial, industrial, and manufacturing sites and facilities.

 

An eligible applicant would apply to the director of development on forms prescribed by the director for the director to certify an eligible project. In addition to the application, the applicant would be required to submit any additional materials required by the director.

 

The director would establish scoring criteria, scoring instruments, and materials for use by the department of development in reviewing applications under the SiteOhio certification program.

 

After the director of development certifies an eligible project, the project would be listed on the department’s web site and the director would market certified eligible projects to interested persons.

 

This legislation has not yet been assigned to a committee. The following is a link to HB 436 as introduced: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_436

 

Please do not hesitate to contact me if you have any questions or need additional information on any item in this update.

 

Dean Fadel ~NORED Lobbyist

Phone: 614.224.1040