Tracked Senate Bills – January 2021

Jeffry Harris
Bricker & Eckler LLP

 

 

News from the Statehouse:

Capital Bill passed during lame duck session: On December 29, Governor DeWine signed into law SB 310, which became vehicle for $2.1B in capital appropriations during the closing weeks of the 133rd General Assembly.

The capital bill included support for counties to build and renovate jails, as well as a shift of $700MM in Medicaid costs to take advantage of a temporary boost in the federal share of certain spending.  Senate Bill 310 is discussed in more detail, below.

House Bill 6 – Repeal effort to resume in 134th General Assembly: In a Franklin County civil suit by Attorney General Dave Yost, Common Pleas Court Judge Chris Brown on December 21 blocked the collection of $170MM in annual subsidies that had been scheduled to commence this month (January 2021).  Judge Brown noted an “obvious” public harm should the subsidies move forward. He further determined Attorney General Yost established by a preponderance of the evidence a likelihood of eventual success in the case on its merits, given the extent of the criminal allegations and the guilty pleas from two of the criminal defendants.

Judge Brown additionally stated, “Frankly, the work of the 133rd General Assembly is quickly coming to an end [and] as of this moment, there has been no movement of any legislation and the court feels putting the ball in the General Assembly’s court would be an abdication on my part to decide these issues.”

As an added backstop to the halting of consumer-borne subsidies from commencing in 2021, on December 28, the Ohio Supreme Court granted the Ohio Manufacturers’ Association Energy Group’s request for a stay of HB 6’s annual subsidy process.  As the stay is in place, the Supreme Court established an expedited briefing schedule and will refuse any requests for extension of time by the parties.

Efforts failed in the 133rd Ohio General Assembly to make a legislative fix of scandal-tainted HB 6, as lawmakers halted legislative work December 18 without acting on any of their pending proposals.  Among the most promising and backed by Ohio House leadership, HB 798 failed to muster the needed votes to advance.

Efforts to repeal HB 6 will continue in the 134th General Assembly, with a Democratic plan announced shortly before the Ohio House’s opening day session.  Senate President Huffman likewise voiced his desire to go line-by-line through the law to determine which provisions need to be repealed or reworked.

Federal Update:

Insurrection at the U.S. Capital: As widely reported, a mob incited by the President overran the Capital Building on January 6, with loss of life and significant damage caused to Congressional offices and the chambers. On January 13, the U.S. House of Representatives impeached Donald J. Trump on a bipartisan vote of a single-count for his role in the day’s events and his repeated false claims of election fraud.  It has been reported that President-elect Biden and Senate GOP leader Mitch McConnell (R – Kentucky) have discussed that Biden’s initial agenda will be pursued in the Senate in parallel to the impeachment trial.

COVID-19 Relief: Congress on December 21 approved H.R. 133, which includes a $900B stimulus package with direct payment support to households and businesses in response to economic harm caused by the COVID-19 pandemic.  The President signed the bill on December 27.

Included within a spending bill to fund the federal government through its current fiscal year (year-ending September 30, 2021), the Congressional aid package provides the following.  (Not included in the bill are the two policy issues that had long impaired a final deal: (1) a direct stream of funding for state and local government; and (2) a broad business liability shield.)

• Extends the “incurred period” to December 31, 2021 for eligible CARES Act –  Coronavirus Relief Fund payment expenditures.
• Extends the Pandemic Unemployment Assistance supplemental unemployment benefit for millions of unemployed Americans at $300/week for 11 weeks (now with a requirement that recipients provide documentation in order to receive benefits; such documentation was not required under the CARES Act).
  • This includes an additional $100/week to so-called “mixed earners” — people who earn money both as employees and as freelancers or contractors.
• Another round of $600 direct payments to adults and children ($2,400 for a family of four).
• $285B to restart the Paycheck Protection Program, allowing businesses to receive a 2nd loan and expanding eligibility under PPP for nonprofit organizations, local newspapers and radio and TV broadcasters.
  • Many of the lenders that took part in PPP during spring 2020 have indicated their willingness to make more loans, including Bank of America, JPMorgan Chase, and Wells Fargo.
  • Hotels and food-service businesses would be eligible for enhanced loan amounts (up to 3.5Xs average monthly payroll; other borrowers are limited to 2.5Xs their payroll).
  • Publicly traded companies would be ineligible for new PPP loans.
  • Business owners which received PPP loans, which are tax-free, can claim deductions for expenses otherwise paid with PPP loan proceeds.
  • The bill resolves an issue for PPP recipients who also took relief from the SBA’s Economic Injury Disaster Loan system (up to $10,000 of each E.I.D.L. loan had been treated as an advance and therefore reduced the amount forgivable under a business’s PPP loan).
• $69B for distribution of coronavirus vaccines.
• $22B for states to conduct testing, tracing, and coronavirus mitigation programs.
• $13B in increased nutrition assistance.
• $7B for broadband access.
• $45B for transportation and transit agencies.
• $25B in rental assistance.
• $15B for performance venues, independent movie theaters and other cultural institutions.
• $82B in education funding, with approximately $54B to the nation’s K-12 schools and $22.7B going to colleges and universities.
• Interestingly, Congressional leaders also agreed to significant bipartisan deals to counter climate change and promote clean energy.  First, the bill requires chemical manufacturers to phase down the production and use of coolants known as hydrofluorocarbons (HFCs).  Second, Congress authorized $35B in spending on wind, solar and other clean power sources.

President-elect Joe Biden has described his $1.9T  plan of additional relief as ready for action after his inauguration on Wednesday (January 20).  Given the historically low costs of borrowing, federal policymakers are less worried about the government taking on more debt to address the COVID-caused joblessness (which currently is at levels last experienced during the Great Depression).  The incoming President has noted he will take immediate, deficit-financed action to help the economy recover; a strong labor market – similar to the 3.5% unemployment experienced in February 2020, prior to the pandemic – is the primary driver.  As the nominee for Treasury Secretary, Janet Yellen has urged a robust set of fiscal stimulus measures and that now is not the time to worry about the nation’s debt burden.

CARES Act – Coronavirus Relief Fund’s “covered period” extended: The CARES Act’s Coronavirus Relief Fund employed a three-prong test as to eligible expenditures by local governments: (a) is the expenditure necessary in response to the COVID-19 public health emergency? (b) was the expenditure already accounted for in the jurisdiction’s approved budget as of March 27, 2020? and (c) will the expenditure be incurred during the covered period March 1 to December 30, 2020?.  The Congressional COVID relief bill included a key amendment to Prong 3 of the CARES Act.  Namely, that eligible expenditures may be made through December 31, 2021.

Statehouse Bills (Changes from last month are noted in BOLD):

NOTE: The following report describes the final status of legislation during the 133rd General Assembly, which now has concluded.  Any unfinished legislation described below would need to be reintroduced during the 134th General Assembly, which officially convened on January 4, 2021.

Senate Bills:

SB 1 REGULATIONS  (McColley, R., Roegner, K.)  This bill would require each state agency to reduce the regulatory restrictions contained in its rules by 30% by 2022, according to a schedule and criteria set forth in the bill.  It also prohibits an agency from adopting new regulatory restrictions that would increase the percentage of restrictions in the agency’s rules and requires an agency that does not achieve a reduction in regulatory restrictions according to the required schedule to eliminate two restrictions before enacting a new rule containing a restriction.  It allows the Joint Committee on Agency Rule Review (JCARR) to lessen an agency’s required reduction in regulatory restrictions if the agency fails to meet a reduction goal and show cause why the agency’s required reduction should be lessened.  Effective January 1, 2023, it limits the total number of regulatory restrictions that may be in effect in Ohio. The bill passed in the Senate May 8 and has been referred to the House State and Local Government Committee, where a first hearing occurred June 12, 2019.  The bill passed the House State and Local Government Committee on May 6, 2020, but the Senate refused to concur in the House’s change to the legislation that seeks to rein in the Ohio Department of Health’s order-making authority.  The Conference Committee held its hearing on December 2 and reported the measure out; the Senate adopted the Conference Committee report on December 3 and the House informally passed the measure on December 17.  No further action occurred as the General Assembly concluded.

SB 4 SCHOOL FACILITIES (Rulli, M., Kunze, S.) This bill’s original contents had already been made law under the budget bill (HB 166), but during June 2020, state lawmakers sought to use this capital appropriation bill to fold in the provisions of HB 670 and authorize up to $555 million in one-year bonding authority for school construction ($300 million) and new public works projects ($255 million, of which $175 million is for the State Capital Improvement Program, known as Issue 2, for roads, bridges, water, wastewater, storm water and other projects; and $37.5 million for the Clean Ohio Program). Several amendments also were inserted into the bill related to (1) allowing municipalities and townships to borrow from TIF Funds; (2) allowing charter counties to side-step competitive bidding for their purchase of PPE; and (3) applying Prevailing Wage requirements to Transportation Improvement Districts. (This trio of amendments first appeared in SB 310, but they were not included in the final, as-passed version of that bill.)  This measure was signed into law by Governor DeWine. Bricker published a bulletin on the changes to TIF law, which can be accessed at this link: http://www.developohio.com/post/detail/little-noticed-change-to-tif-law-allows-municipalities-and-townships-to-redirect-up-to-25-percent-of-their-tif-funds-to-public-safety-road-and-bridge-maintenance-during-fy-2020-2021-234876

SB 8 OPPORTUNITY ZONES  (Schuring, K.)  This bill would authorize tax credits for investments in an Ohio Opportunity Zone.  As introduced, to qualify for the tax credit, investors must invest at least $250,000 during the taxable year, and the amount of the credit allowed shall be equal to one percent of the amount invested.  At a fourth hearing in the Senate Ways & Means Committee, a substitute bill was introduced March 12 which establishes an Opportunity Zone Investment Tax Credit program and a new opportunity zone fund that must be used exclusively for projects in opportunity zones. The new program creates a non-refundable 10% tax credit that that would be capped at $50 million over the course of a biennium. The revisions would prohibit a single entity from utilizing both the proposed program and the Invest Ohio program credit. The bill was passed by the Senate April 3 and referred to the House Economic and Workforce Development Committee, where a first hearing occurred May 8. The main provisions of this bill were included in the final Budget Bill (HB 166).

SB 37 TAX CREDIT  (Schuring, K.)  This bill would extend eligibility for and make other changes to the motion picture tax credit.  Among other changes, “Broadway theatrical productions” would become eligible for the credit, the types of expenses upon which the credit is based would be broadened to include post-production, advertising, and promotional expenditures, and the Director of Ohio Development Services Agency would begin awarding motion picture and Broadway theatrical production tax credit certificates in two competitive rounds each fiscal year. The first round of applications would be approved by July 31, and the second round would be approved by January 31.  The bill passed in the Senate May 8, 2019 and was referred in the House to the Finance Committee.  The main provisions of this bill were included in the Budget Bill.

SB 39 INSURANCE TAX  (Schuring, K.)  This measure would authorize an insurance premiums tax credit for capital contributions to transformational mixed use development projects.  To qualify, projects must:

(a)        have a transformational economic impact within the project area approved by the director of the development services agency;

(b)        be a mixed use development that integrates some combination of retail, office, residential, recreation, structured parking, and other similar uses; and

(c)        include at least one building that is fifteen or more stories in height or has a floor area of at least three hundred fifty thousand square feet.

The bill was assigned to the Senate Finance Committee, and the Senate passed a Substitute Bill June 26, 2019:

• allowing projects involving two or more connected buildings to qualify for the credit as long as they collectively meet the program’s square-footage requirements, and
• establishing public reporting requirements regarding projects supported by the program.

The bill passed in the Senate June 26 and was referred to the House Economic & Workforce Development Committee, where a fourth hearing occurred November 6.  A substitute bill was introduced December 11 which would:

• Limit the DSA director to approving only four TMUDs per fiscal year with a carryover provision (in lieu of a cap).
• Require ranking of applications by their economic value and transformational impact. Specific consideration will be given to the new state and local taxes generated from the project and its surrounding area. The project that has the most significant transformational impact and has a pro forma that shows the most expeditious schedule for the new state and local taxes to exceed the amount of the tax credit, will be the one that is approved.
• Require a project to go into construction no later than one year after the TMUD credit is approved by the DSA Director; and
• Increase the historic tax credit percentage from 25% to 35% for rural areas.

The substitute bill was amended by the Committee February 5 to:

• Provide that the Ohio Tax Credit Authority would administer the program instead of the director of the Development Services Agency;
• Sunset the law on June 30, 2022;
• Give lien rights to commercial real estate brokers;
• Remove references to the Historic Preservation Tax Credit;
• Amend the rural area provisions to annually make $20 million of the proposed annual $100 million credits available to rural sites not located within 10 miles of a major city and specify that projects in those areas need only include buildings at least four stories in height with a total square footage of 75,000, and
• Provide for a $40 million tax credit per-project cap.

On February 12, 2020, the substitute bill was further amended to:

• Amend the rural area provisions to make projects eligible that are only two stories high;
• Extend eligibility for the credit to June 30, 2023, and
• Enlarge eligibility to include development sites located within ten miles of a major city if they will provide at least $4 million in annual payroll even if the building is not 15 stories in height or 350,000 square feet.

The bill received its eighth hearing in the House Economic and Workforce Development Committee on November 18.  On December 8, the House voted 82-1 to approve the measure, with an amendment offered by Rep. Tom Brinkman (R-Cincinnati): to reinstate the nonrefundable income tax credit for contributions made to a political campaign for statewide office. That credit, capped at $50 for individuals and $100 for couples filing jointly, was eliminated in the operating budget (HB 166).

In its House-amended form, the bill returned to the Senate for the latter’s approval by a vote of 28-2.  On December 29, Governor DeWine this measure into law.  Bricker has published a DevelopOhio article on this tax credit, available at the following link: https://www.bricker.com/industries-practices/economic-development/insights-resources/publications/new-%E2%80%9Ctransformational-mixed-use-development%E2%80%9D-state-tax-credits

SB 89   CAREER-TECH EDUCATION AND ENTERPRISE ZONE TAX ABATEMENTS (Huffman, M.) This bill, introduced March 6, would make changes to Ohio’s career-tech education programs, make changes regarding STEM school report cards, prohibit the use of value-added data for evaluations of career-technical educators, revise the law on community school fiscal officer liability, make changes regarding school financing studies by the Department of Education, revise the eligibility and operation of the Educational Choice Scholarship program, rename the income-based expansion of the Educational Choice Scholarship program as the Buckeye Opportunity Scholarship program and modify the Ohio Revised Code sections relating to enterprise zone tax exemptions to require that if an agreement is negotiated between the legislative authority and the school district in which the project is located to compensate the district for all or part of the taxes exempted, the legislative authority must also compensate the joint vocational school district within which the property is located at the same rate and under the same terms received by the school district.

The bill passed in the Senate October 23, 2019, and was assigned to the House Primary & Secondary Education Committee. The House chose the bill to be the vehicle to address concerns with the state’s EdChoice program, in which eligibility requirements had been loosened last fall due to changes made in HB 166 (the state budget bill).  The EdChoice program provides vouchers and thus helps fund private school tuition for students at public schools that fail to meet state performance guidelines.

On February 5, the Committee accepted an amendment that would change eligibility for vouchers to be based on family income, versus being based on whether schools meet state performance guidelines, and then the bill was passed in a House Session that same day.  Other changes made by the amendment would, among other things, repeal a process established in the budget allowing residents within a township split between two or more school districts to petition to transfer territory to a new school district, and permit career centers to earn STEM and STEAM school designations.

The Senate did concur with the amended bill, rather moving to make the EdChoice changes through House Bill 9.

A conference committee was named to reconcile the matters.  Numerous hearings of the committee occurred, and witnesses included private school students, parents and officials who continue to push for no change in the state’s voucher programs, while public school representatives continue to ask for tighter voucher eligibility requirements.

In September, Senator Matt Huffman, the bill’s sponsor, sought to strike the school voucher language in conference committee. He noted his desire to revert to the noncontroversial version of SB 89 to focus on changes to career-technical education regulations (which had cleared the Senate in a unanimous vote in October 2019).

The measure was reported out by the Conference Committee on November 18, and thereafter adopted by the Senate and the House.  The measure was signed into law on November 27 by Governor DeWine.

SB 95 BUSINESS INVESTMENTS  (Peterson, B., Kunze, S.) Introduced as SB 309 in the last General Assembly, this bill would lengthen the maximum term of the job creation tax credit available under ORC 121.171 from 15 to 30 years for businesses making substantial fixed asset and employment investments (and meeting the definition of “megaprojects” as set forth in the bill) and for their suppliers,  and authorize local governments to grant longer Enterprise Zone and Community Reinvestment Area tax abatement terms (up to 30 years) for such businesses or suppliers.  To qualify as a “megaproject”, projects must involve unique sites, extremely robust utility service, and a technically skilled workforce; the project must compensate employees at an average hourly wage of at least 300% of the federal minimum wage (exclusive of employee benefits); and the project must either: (i) involve at least $1B in fixed-asset investments, or (ii) create at least $75M in Ohio employee payroll.  The bill passed unanimously in the Senate June 12, 2019 and was referred to the House Ways and Means Committee where the measure has languished.

During the lame duck session, this “megaproject” legislation became the landing spot for various provisions from a host of other bills in the House Ways & Means Committee.  During its fourth hearing on December 3, the bill gained several changes via a Substitute bill: (a) reinstating sales and use tax exemptions for sales of metal bullion and investment coins; (b) indexing for inflation the megaproject thresholds required under the bill; (c) exempting the seasonal storage or use of certain watercraft; (d) requiring a school district or political subdivision to notify the property owner prior to filing a property tax valuation complaint; (e) modifying requirements for publishing delinquent tax lists and tax foreclosure notices to allow online publishing; (f) modifying the service of process via newspaper in administrative and judicial tax foreclosure proceedings; and (g) setting forth changes to TIF law under R.C 5709.91 whereby an agreement requiring a TIF’ed property owner to make annual service payments in lieu of taxes (i.e., PILOTs) becomes a covenant running with the land against the owner and its successors and assigns once such a PILOT agreement is recorded with the county recorder (under uncodified Section 4 of Sub. SB 95, this provision applies prospectively to PILOT agreements with an effective date after the legislation’s enactment).

This bill was not completed during the lame duck session, as it informally passed the House on December 17 but went no further in its enactment.

SB 109  TAX CREDITS  (Schuring, K.)  Introduced on March 13, this bill would establish a Workforce Scholarship Program and authorize the Chancellor of Higher Education to designate five public or private institutions to participate in the program.  It also authorizes the granting of scholarships and tax credits to students who pursue and complete the training programs for in-demand jobs at these designated institutions.  The bill was referred to the Finance Committee, where a second hearing occurred October 8, 2019.

SB 132 GAS TAX ALLOCATIONS  (Williams, S.)  This bill would modify the amount of revenue derived from any increase in the motor fuel tax rate that is allocated to local governments and to change the manner in which that revenue is divided between municipal corporations, counties, and townships. It was referred to the Senate Transportation, Commerce & Workforce Committee on May 1, 2019.

SB 153 TAX CREDITS (Dolan, M.)  Introduced May 21, this bill focused on assisting manufacturers and entities with significant corporate administrative functions in Ohio by amending the state’s Job Retention Tax Credit program under ORC 122.171 to expand eligibility based on new capital investment rather than payroll or employee count.  Manufacturers that invest the lesser of either $50 million or 5% of the book value of their tangible personal property used at the project site over a 3 year consecutive period would be eligible.  If such manufacturers receive the credit, they must commit to maintain an agreed-upon number of full-time equivalent employees during the term of the credit.  Entities with significant corporate administrative functions are eligible if: 1. They are either located in a foreign trade zone, employ at least five hundred full-time equivalent employees, or have an annual Ohio employee payroll of at least thirty-five million dollars; and 2. They make a capital investment of at least $20 million at the project site over 3 consecutive calendar years. Such entities must commit either: 1. To retain at least 500 FTEs at the project site during the term of the credit, or 2. Maintain an annual Ohio employee payroll of at least $35 million for the term of the credit or remain in a foreign trade zone for the entire term of the credit. The bill’s provisions were included in the budget bill (HB 166).

SB 180 DEVELOPMENT BONDS (Schaffer, T.)  Introduced August 5, 2019, this bill would authorize the issuance of industrial development bonds by a township and would authorize counties, townships, and municipal corporations to issue industrial development bonds without requiring the county, township, or municipal corporation to designate a community improvement corporation as its agency for industrial, commercial, distribution, and research development.  On September 10, 2019, the bill was referred to the Senate Finance Committee where a first hearing occurred October 1, 2019.

SB 212 NEIGHBORHOOD DEVELOPMENT AREAS (Schuring, K.)  Introduced October 7, 2019, this bill would authorize townships and municipal corporations to designate areas as “Neighborhood Development Areas” (NDAs) within which new homes and improvements to existing homes are wholly or partially exempted from property taxation.  The designation would be done by a resolution or ordinance that includes the following:

(a)        A description of the boundaries of the neighborhood development area;

(b)        Identification of the municipal or township officer or employee who will accept applications;

(c)        Findings to demonstrate that the designation of the area will encourage the construction of new single-family dwellings, or the improvement of existing single-family dwellings, that in either case would be unlikely to occur in the absence of such a designation;

(d)        The number of years during which the area will be designated as a neighborhood development area or that the area will be designated as such for a continuing period of time;

(e)        A description of how the designation of the neighborhood development area would (i) improve the overall quality of life in the township or municipal corporation and (ii) cause additional property tax revenue to be generated once exemptions    no longer apply than if the area had not been designated;

(f)        The percentage of value that will be exempt from taxation which shall be seventy per cent of assessed value or, if the approval of the board of education of each school district within which parcels in the area are located is obtained,  one hundred per cent.

The legislative authority or board may not include in the designated areas any parcel that is already subject to an exemption authorized under a community reinvestment area (CRA) or tax increment financing (TIF).

If the intended exemption if 100%, written notice must be provided to the board of education of the affected school district, which may approve or disapprove the designation of the neighborhood development area not later than 14 days prior to the date intended for the proposed municipal or township action.  If the board of education fails to timely certify a resolution to the board of township trustees or the legislative authority of the municipal corporation, the board of education shall be considered to have approved of the designation of the neighborhood development area.  If all boards of education that receive notice approve the designation of the neighborhood development area, the board of township trustees or legislative authority of the municipal corporation may adopt a resolution or ordinance prescribing a percentage of value under division (B)(1)(f) of this section of one hundred per cent.

The bill was assigned to the Senate Ways & Means Committee, where a Substitute Bill was approved February 4, 2020.  The changes made would require that before approving an area as an NDA, there must be showing that the community lacks housing and that development would not occur without an NDA.  Also, projections must be presented showing how an NDA would generate funds.  Finally, the amendment clarified the process to be followed in negotiating an agreement with the applicable school district if the NDA will offer a 100% tax exemption.  At a hearing February 11 for interested parties testimony, a representative from the Greater Ohio Policy Center suggested that it may make more sense to amend the existing CRA statutes rather than enact a new NDA program. On February 25, the bill was further amended to add to the process of creating the NDAs by requiring at least three hearings on such proposals by cities or townships, and requiring notifications to any impacted taxing entities. It amendment also added the word “affordable” to the definition of public purpose in the bill.  The bill passed in the Senate March 4 and moved to the House; the House Ways & Means Committee reported out the measure on December 16.

SB 219 APPRENTICE PROGRAM (Williams, S.)  Introduced October 15, this bill would empower the Ohio Departments of Education and Higher Education to establish a career pathways apprentice program for high school grades 9-12.   The purposes of the program would be to establish partnerships between schools, businesses, communities, local government entities, and nonprofit organizations to create career pathways for apprenticeships in the following professions: (a) Manufacturing; (b) Information technology; (c) Financial services; (d) Business operation (e) Healthcare, and (f) Education. The program would also be charged with providing information and technical assistance to high school students who enroll in the program and reducing obstacles to and ensure compatibility with division (J)(3) of section 3313.603 of the Revised Code. The program may incorporate or work in conjunction with other apprentice and pre-apprentice programs already in operation under the Revised Code.  The bill was referred to the Senate Education Committee where a first hearing occurred February 11, 2020.  Sponsor Sandra Williams said that the program is similar to one in Colorado called “CareerWise Colorado” and that the goal of the measure is to help students obtain free college credit, receive industry certifications and earn wages while gaining relevant work experience.

SB 234 WIND REGULATIONS (McColley, R.)  This bill, introduced November 6, 2019, is a companion bill to HB 401 and its provisions are identical. A first hearing occurred December 10 in the Energy and Public Utilities Committee.  At a second hearing January 28, numerous proponents in favor of stronger local controls submitted testimony in favor of the bill. A third hearing February 11, 2020, caused numerous opponents to turn out, many of whom testified that providing a referendum process to local townships after a wind project has been approved by the Ohio Power Siting Board would deter future wind development.

SB 257 ELECTRIC VEHICLES (O’Brien, S., Rulli, M.)  Introduced December 23, this bill would authorize tax incentives for the purchase of plug-in electric motor vehicles and charging stations.  It has been referred to the Ways and Means Committee where a first hearing occurred February 11.  Thereafter, the Committee held its third hearing on June 9, 2020.

SB 259 TIF PAYMENTS (Sykes, V.)  This bill would authorize the conveyance of state-owned real property and to specify that tax increment financing minimum service payment obligation agreements are enforceable against subsequent property owners.  This bill passed the Senate by unanimous vote in May 2020, and was passed overwhelmingly in the House (82-2) on December 17.  The substitute version of the bill passed by the House had removed SB 95’s PILOT Agreement recordation language, but did allow for the creation of airport development districts.  On December 22, the Senate unanimously concurred with the House amendments.  On January 9, Governor DeWine this measure into law.  Bricker has written a DevelopOhio article on this legislation, to be published at the following link: https://www.bricker.com/industries-practices/economic-development/insights-resources

SB 310 FEDERAL FUNDS (DOLAN, M.) This bill was introduced May 5 to provide for the distribution of federal coronavirus relief funding from the CARES Act to local subdivisions.   The CARES Act provisions of this bill were amended into HB 481, which was signed into law by Governor DeWine.

During lame duck, this bill became the vehicle in conference committee for the State Capital Budget. 

On December 8, SB 310 was stripped of its earlier language and $2.1B in capital appropriations were inserted as follows:

• $452M for higher education projects;
• $309.5M for K-12 buildings; and
• $280M for the Public Works Commission to help finance local infrastructure projects; and,
• $62.5M to the Clean Ohio Fund’s greenspace, recreation and agricultural provisions (brownfields funding has historically been included in such appropriations but not in this bill).

Conference committee hearings during the week of December 14 resulted in several amendments of interest to economic developers:

• Language that takes advantage of the temporary boost in federal share of Medicaid by shifting some $700M in costs out of the state General Revenue Fund to help Ohio balance its books in the current fiscal year.
• Direct $3 million in lottery funds to pay for school funding studies.
• Allow Cuyahoga County lodging tax money to be redirected for promotion and support of tourism or tourism-related programs.
• Appropriate all unspent federal CARES funds to ensure they may be approved for use by the Controlling Board if the current Dec. 30 deadline for spending is not extended by Congress.
• Earmark $5 million for the Department of Natural Resources to issue emergency grants for erosion projects along the Lake Erie shoreline.

The bill passed the Senate and House on December 17 and Governor DeWine signed it into law on December 29.

SB 316 CAPITAL APPROPRIATIONS (DOLAN, M.)  This bill was introduced May 26 and would make $1.28 billion in capital appropriations. The provisions of this bill were amended into HB 481.

SB 335 PROPERTY TAXES (Craig, H.) This bill seeks to reduce property taxes on owner-occupied homes to the extent that property taxes increase by more than 3% from the previous year.  The measure was referred to the Senate Ways & Means Committee in late July.

SB 346 ENERGY REPEAL (O’BRIEN, S., KUNZE, S.)  One of three HB 6-repeal measures (as of this writing), this bill is a straight repeal measure.  The Senate Energy & Public Utilities Committee held two hearings on this bill in September 2020, with a third hearing scheduled for Tuesday, November 10.  On December 1, the committee held its fifth hearing on this bipartisan plan.

SB 352 MUNICIPAL TAXES (Roegner, K.) This bill, introduced at the end of July, would modify municipal income tax employer withholding rules for COVID-19-related work-from-home employees by repealing Section 29 of HB 197.  The Senate Local Government, Public Safety & Veterans Affairs Committee held its first hearing on this measure on September 22.

SB 354 BROWNFIELD SITES (Williams, S.) This bill requires the Ohio Environmental Protection Agency to conduct a study to determine where brownfield sites are located throughout Ohio and makes an appropriation.  The measure was referred to the Senate Finance Committee on September 1.

SB 355 CLEAN OHIO GRANTS (Williams, S.) This measure makes an appropriation to the Development Services Agency to award Clean Ohio Revitalization Grants.  The measure was referred to the Senate Finance Committee on September 1.

SB 356 TAX FORECLOSURES (Dolan, M.)  This bill seeks to make large-scale changes to county land banking law (R.C. Chapter 5722) and the law relating to tax foreclosures (R.C. Chapter 323).  This measure was written in coordination with the Cuyahoga County Land Bank and other land bank leaders in Ohio.  The House corollary measure is HB 755.  This bill was referred to the Senate Local Government, Public Safety and Veterans Affairs Committee, which held hearings in November and early December; the matter received its last hearing on December 8.

SB 357 CORONAVIRUS FUNDS (Dolan, M.) This bill is the fourth means of distributing federal Coronavirus Relief Fund payments to local subdivisions in Ohio; this measure builds on previous distributions of federal CARES Act dollars to counties, townships and municipalities (e.g., HB 481 (appropriated $350 million) and a Controlling Board approval in late August (another $175 million)).  The funds provided in this measure are to those units of local government which did not receive direct payments from the U.S. Treasury (i.e., large units of local governments with populations exceeding 500,000 in 2019).  The use of Coronavirus Relief Funds still must adhere to the CARES Act’s three-part test: namely, funds can be used to cover local governments’ expenses (1) that were incurred due to the COVID-19 emergency, (2) were not previously budgeted for, and (3) were incurred between March and the end of 2020 (i.e., the so-called covered period).

On September 2, less than a week after it was introduced, SB 357 passed the Senate by unanimous vote.  The passage included the following amendments: (1) change the process by which unspent money is redistributed to other entities within a given county by moving the deadline from October 15 to November 20 for political subdivisions within a county to spend funds; (2) allowing a county to keep 50% if less than a quarter of its subdivisions are eligible for receiving more funding (current law, under HB 481,   allows a county to keep up to 25% of the unspent money to redistribute); and (3) changes the date when all unspent money must be returned to the state from Dec. 28 to Dec. 30, and clarifies units of local government have until February 1, 2021 to complete the necessary accounting. Further, the Senate-passed measure clarifies that local entities that passed a resolution in order to accept the previous CARES Act money need not pass another one.  The provisions of this bill were amended into HB 614 and signed into law on October 1.

SB 358 EDUCATION LAWS (Fedor, T., Manning, N.) This bill seeks to make changes to education law for the 2020-2021 school year in response to implications from COVID-19.  This measure had its first Senate Education Committee meeting on November 17, and which reported out a substitute version of the bill on December 1.

SB 362 TAX CREDITS (Peterson, B.) This bill was introduced on September 2 and would increase the total amount of tax credits that may be awarded to insurance companies that invest in rural business growth funds.  The measure was referred to the Senate’s Insurance & Financial Institutions Committee, which held its second hearing for proponent testimony on December 1, during which representatives of Enhanced Capital and Advantage Capital testified in support of additional investment through the Ohio Rural Business Growth Fund program.  The measure had another hearing on December 9, at which time the total amount of tax credits to be awarded to insurance companies was doubled to $90M; as amended, the bill was approved by the Senate.

COVID-19 RELATED BILLS –

For brevity’s sake, measures are included here only if they moved beyond introduction and saw activity in the Ohio House or Senate during late fall 2020:

Senate Bills:

SB 301 PRICE GOUGING (Manning, N., Wilson, S.) This bill would make changes to the Ohio Consumer Sales Practices Act.  The measure had its third hearing before the Senate Judiciary Committee on November 18.

SB 308 CIVIL IMMUNITY (HUFFMAN, M.) This bill would revise the law governing immunity from civil liability and professional discipline for health care providers during disasters or emergencies and provide qualified civil immunity to service providers providing services during and after a government-declared disaster.  The bill passed the Senate in June 2020 and has been referred to the House Civil Justice Committee.  The elements of this Senate vehicle were reconciled by conference committee under the companion HB 606, the latter of which was sent to Governor DeWine for his signature on September 2.