Government Affairs Committee March 2, 2011

Table of Contents Page #

Agenda 2 OMA Hot Topics 3 Bios 6 Misc. News & Analysis 8Misc. Bill Tracker 23 Senate Directory 27 House Directory 28 Governors’ Cabinet 30 Transportation Issues 32 SB2 - Regulatory Reform 35 HB112 – Product Content Mandate 43 OMA Counsel Report – Campaign Finance 46 SB5 – Collective Bargaining 50 Civil Justice Report 55 Energy Policy Report 69 Environment Policy Report 81 Human Resources Policy Report 96 Workers’ Comp Policy Report 107 Workers’ Comp SI Fund Assessment 117 Tax & Finance Policy Report 125 JobsOhio 142 State Budget Calculator 147 ALEC Spring Task Force 148

2011 Government Affairs Committee Calendar Wednesday, March 2, 2011 Wednesday, June 8, 2011 Wednesday, September 28, 2011 Wednesday, November 30, 2011

OMA Government Affairs Committee Meeting Sponsor:

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OMA Government Affairs Committee March 2, 2011

AGENDA Welcome & Self-Introductions Caroline Ramsey

Honda of America Manufacturing Committee Chair

OMA Counsel’s Report • Campaign Finance Compliance • Civil Justice Environment

Kurtis Tunnell Bricker & Eckler LLP OMA General Counsel Miranda Motter Bricker & Eckler LLP

Policy Reports • Hot Topics • Transportation Budget / Issues • Regulatory Reform • Product Content Mandate • New Workers Comp Reserving Reqs.

Ryan Augsburger OMA Staff Kevin Schmidt OMA Staff

Special Guests

• JobsOhio & State Economic Dev.

• House Priorities • ALEC Meeting Cincinnati

Mark Kvamme, Director Ohio’s Department of Development & CEO JobsOhio Corp.

Representative John Adams (R – 78th House District), Majority Whip

New Business

SAVE THE DATE 2011 Meeting Schedule: Wednesday, June 8 Wednesday, Sept 28 Wednesday, November 30

Committee Meetings begin at 10:00 a.m. and conclude by 1:00 p.m. Lunch will be served. Please RSVP to attend meetings by contacting Judy: jthompson@ohiomfg.com or (614) 224-5111 or toll free at (800) 662-4463. Indicate if you will be participating in-person or by phone. Additional committee meetings or teleconferences, if needed, will be scheduled at the call of the Chair. Thanks to Today’s Meeting Sponsor:

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HOT TOPICS Public Policy Services

March 2, 2011

Overview Following the contentious election year, the Kasich Administration began on January 10. In the General Assembly, Tom Niehaus (Cincinnati – R) takes over as Senate President. In the House Bill Batchelder (Medina – R) with over 30 years of experience in the Ohio House finally realizes his ambition as Speaker of House. The Governor and the legislative leaders have been appointing their teams and are now busy preparing for the state budget debate. Even before the budget process which begins in mid March, the General Assembly is off and running. A flurry of bills were introduced early and are now being considered, the most controversial of which has been collective bargaining. Aside from the budget, another top priority for the first year is redistricting. State Budget The state budget will be introduced mid-March. It will eclipse all other policy activity. The 2012-2013 biennial budget will require real solutions to respond to a structural deficit of $8B, approaching 20% reduction from current budget levels. Tax hikes and / or draconian cuts to social programs, education and local government will be necessary to balance. Off ledger liabilities such as unemployment compensation, public pensions, and local government growth are also of concern and will complicate solutions to the tradition budget options. The new state leaders have not offered much specificity about dealing with the looming shortfall, but have indicated that tax hikes are off the table. Labor Agenda Both collective bargaining reform and right to work had been discussed as possible priorities in the months since the election. While Republicans controlled all branches of state government from 1994 until 2006, they did not address the issues. Early in February, the Senate introduced SB 5 (Jones) to repeal public sector union rights first enacted in 1983. This collective bargaining the bill has been met by stern opposition from labor unions in hearings over the past few weeks. Protestors have gathered by the hundreds and thousands daily since the hearings began. A vote by the Senate is expected this week. Amendments are rumored and may retain some union rights. Governor Kasich has signaled that he favors collective bargaining reform. A few legislators favor union reforms in the private sector to designate Ohio as a right-to-work state, however, leadership has been cautious. JobsOhio – Economic Development Governor Kasich’s top priority has been to restructure state economic development functions for the state. HB1 / SB1 has already been approved by the legislature and signed into law. The bill authorizes the corporation called JobsOhio to coordinate state functions, many of which are presently handled by the Ohio Department of Development. See tax section.

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Civil Justice The election outcome seems to have ameliorated the threat posed by the Cy Pres legislation last year. A new threat has emerged. Ohio Attorney General Mike DeWine has recently signaled support for a state version of the false claims act. False claims statutes increase litigation by empowering public lawsuits against government vendors. Suppliers to the Medicaid system are especially concerned. The OMA leads the Ohio Alliance for Civil Justice, a coalition of 200 business and professional groups and companies focused on tort reform. See civil justice report. Ozone Regulations US EPA’s proposal to tighten ozone limits could put nearly every county in Ohio in non-attainment resulting in significant environmental compliance costs, reduced economic activity, and significant drag on the state’s competitiveness. See environment report. Cap and Trade The change in state leadership has slowed state efforts to race through state level GHG regulations. Estate Tax Repeal A politically charged issue high on the agenda of self-described TEA party activists, the bill gained approval by the House Ways and Means Committee in mid-February. See tax policy report. Transportation The transportation budget HB 114 (McGregor - R) is pending. Again railroad lobbyists are seeking to reverse course on common sense truck efficiency law changes supported by the OMA in recent years including steel coils and international shipping containers (see attached letter to the editor). Manufacturers willing to engage should advise Ryan to add you to the ad hoc OMA Transport Group. Also pending is HB 73 (Young – R) to remove an onerous fee on the transport of radioactive materials. Significant federal and state regulations are in effect to safeguard the transport of such materials. HB 73 generally repeals a stealthy amendment inserted into the transportation bill two years ago by anti-Yucca Mountain advocates. Without passage of HB 73, the state is required to charge a $2,500 fee on any truck carrying even very low-level radioactive material. H.R. 763 (Schmidt – R) S.E.T.A. Safe and Efficient Transportation Act impacts federal truck weights. The OMA submitted comment in support of inclusion of SETA into the federal highway bill. Manufacturers may want to add this topic to talking points. OSHA Noise Regulation As written, the policy would equate to untold new expenses to retrofit existing industry. Fortunately, OSHA has delayed further consideration for the time being. See Safety and Workers’ Comp section. Workers’ Compensation Policy SI employers are subject to new reserve requirements. Changes may be significant for manufacturers with high financial credit risk levels and high claims. See safety and workers comp section.

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Product Content Mandate Legislation the OMA has previously blocked is presently pending to mandate composition of certain products. HB 112 sponsored by Republican Cheryl Grossman and Democrat Tom Letson would require certain compounds be included by the manufacturer of antifreeze and engine coolant. The bill represents an unwise precedent towards a patchwork of state laws dictating product content. Additionally the bill makes a manufacturer criminally liable for violation. The bill is motivated by poisonings. Under this logic lawmakers should also mandate guns be made to fire only non lethal bullets. Action is merited unless you want to see proliferation of state level products. Tomorrow’s product may be soft drinks or ladders or cleaning products. See attached legislation

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Mark D. KvammeDirector

Ohio Department of Development

Ohio Governor John R. Kasich appointed Mark D. Kvamme as Director of the Ohio Department of Development on January 10, 2011. Mark, a partner at Sequoia Capital in Menlo Park, California for over a decade, has decided to help his longtime friend, John Kasich implement a policy agenda to create jobs and boost the economy by reviving the state’s ailing economic development efforts to accelerate Ohio‘s economic growth and recovery by creating a jobs-friendly business climate. He will also help guide the creation of JobsOhio, a new private, non-profit corporation which will take over the state’s economic development activities.

Prior to joining Sequoia Capital in 1999, Mark was Chairman and CEO of CKS Group, an advertising agency that pioneered new advertising strategies by integrating marketing with technology. CKS helped launch Yahoo, Excite, eBay, Amazon as well as help companies like GM, MCI, Apple, McDonalds and many others. Earlier in his career Mark was a Director of International Marketing for Wyse Technology, the President and CEO of International Solutions, and was a founding member of Apple France. Mark has a BA in French Literature and Economics from the University of California at Berkeley.

77 South High Street, P.O. Box 1001Columbus, Ohio 43216-1001 U.S.A.

614 | 466 8737 F 614 | 644 0745800 | 848 1300

mark.kvamme@development.ohio.gov

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

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John Adams, Majority Whip State Representative (R)

District: 78 Term: 3rd Term Limit: Eligible to run for another two-year term Address: 77 S. High St 14th Floor Columbus, OH 43215-6111 Phone: (614) 466-1507 Fax: (614) 719-3978 Email: district78@ohr.state.oh.us

Biography

State Representative John Adams returns to the Ohio House of Representatives to serve his third term where he was elected by his fellow legislators to serve as Majority Whip. He represents the 78th House District, which is comprised of Shelby and Champaign counties, as well as part of Auglaize County.

Originally born in Urbana and raised in Celina, Representative Adams attended Celina Senior High School. Following graduation in 1978 and several years working at Bethlehem Steel, he left to join the United States Navy. He earned the exceptional honor of being selected to serve in the Navy SEALs and was assigned to a SEAL team in California. He also served overseas and assisted in training tactical units in Japan, South Korea, Malaysia, Thailand and the Philippines.

While in California, Representative Adams furthered his education by attending Mesa Community College in San Diego. Upon returning to Ohio, he attended Edison State Community College to continue his college education and began working at a local furniture business. He worked hard to build the experience and financial stability necessary to purchase his own business, and in 1997 he fulfilled his dream of having his own business by purchasing the Francis Furniture Store in his hometown of Celina. Representative Adams is a member of the National Federation of Independent Business/Ohio (NFIB) and was appointed to the NFIB/Ohio Leadership Council in Columbus. He has also been awarded both Legislator of the Year by the American Legislative Exchange Council and the Watchdog of the Treasury Award by United Conservatives of Ohio.

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OMA News & Analysis - Leadership

President Talks Business in Cleveland 02/25/2011

President Obama held a small business forum at Cleveland State University on Tuesday. Together with top cabinet members such as Treasury Secretary Timothy Geithner, the President spent 90 minutes with small business leaders discussing topics ranging from business lending to workforce development / education, export and trade policy and intellectual property. Numerous manufacturers took part in the forum including Miceli Dairy Products, Kent Displays and McGregor Metalworking Companies.

The President highlighted the continued importance of manufacturing stating the U.S. remains the world’s dominant manufacturing economy but noted how productivity enhancements have thinned employment figures in the sector. OMA past chairman Jim McGregor participated in the forum and remarked, “to have an opportunity to discuss our thoughts with the President of the United States and five members of his Cabinet was truly phenomenal. I hope we can make a difference!” Click here to learn more about the forum or to view footage.

Collective Bargaining Bill to Undergo Changes 02/24/2011

Ohio Senate President, Tom Niehaus, said this week that, after hearing more than 22 hours of testimony, the Senate plans to make changes to SB 5, a bill which would make significant modifications to Ohio’s collective bargaining rights for state employees.

Specifically, President Niehaus noted that the Senate is considering modifying the bill to allow state workers to collectively bargain regarding wages. This does not include bargaining for benefits, and all -- state and local -- public employees would be prohibited from striking. Hannah News Service reports the latest developments. OMA Weighs-In for Truck Weight 02/21/2011

Members of the U.S. Congress Transportation Committee were in town on Saturday to conduct field hearings on transportation priorities. Congressman Mica (R - Florida) chaired the meeting in the Ohio Statehouse, which was attended by Ohio congress members Jean Schmidt, Bob Gibbs, and Steve Stivers, as well as Pennsylvania Congressman Bill Schuster.

A series of witnesses testified in support of transportation policy and infrastructure investments. The OMA submitted comment calling for the inclusion of the Safe and Efficient Transportation Act into this year's Highway Reauthorization proposal.

U.S. National Security and Manufacturing 02/23/2011

According to Forbes, “The Director of National Intelligence has initiated preparation of a National Intelligence Estimate to assess the security implications of waning manufacturing activity in America. National Intelligence Estimates are the most authoritative analyses prepared by the intelligence community, definitive interagency products typically reserved for the most serious threats.”

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“China’s intensely mercantilist government is engaged in a global campaign to become the world’s dominant manufacturing nation, and no U.S. company on its own can hope to compete against state-subsidized Chinese enterprises... The new National Intelligence Estimate should be a wake-up call for U.S. politicians and policymakers, but there is as yet little evidence that they grasp the urgency of halting America’s decline in manufacturing.” Petro Selected as Next Chancellor 02/25/2011

The Columbus Dispatch reported this week that Governor Kasich has selected former Ohio attorney general Jim Petro to succeed Eric Fingerhut as chancellor of Ohio’s higher education system. As chancellor, Petro will have broad authority to oversee the strategic direction of Ohio’s higher education system. Historically the chancellor positions served at the pleasure of the board of regents which is appointed by the Governor. Under the Strickland administration the appointment authority was moved to the Governor and the position elevated to cabinet level.

MEP’S ON THE Federal Chopping Block February 18, 2011

The OMA signed onto a National Association of Manufacturing (NAM) letter urging Congress to maintain funding for the federal Manufacturing Extension Partnership. NAM is asking Congress to preserve $125 million in funding through the FY2011 Continuing Resolution.

Here Comes JobsOhio February 18, 2011 Both the House and the Senate worked with Governor Kasich to pass House Bill 1, the legislation that creates a private economic development agency in Ohio, JobsOhio. Kasich will signed the bill over the lunch hour today.

The bill passed with amendments that lawmakers said are intended to improve transparency, ethics and accountability, the items that concerned citizens about a private agency.

OMA backed the legislation and OMA’s chairman, Jeff Hollister, President Vanguard Paints & Finishes, Inc., testified in support of the measure saying it was time to try something new.

OMA Supports Lower Fees for Transportin Radioactive Materials February 18, 2011

The OMA testified in support of HB 73 (Young, R-63, Lake County) this week which removes an anti-competitive fee on the transportation of certain radioactive materials. HB 73 does nothing to lower, alter, or modify the safety inspections of such materials.

The fee was put in place two years ago by environmentalists seeking to create a difficult state-by-state patchwork system of regulations for the transportation of radioactive materials. This ill-crafted fee applied to shipments of small amounts of radioactive material used for various medical and sterilization processes.

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OMA member, STERIS Corporation, headquartered in Mentor, OH, testified in support. The PUCO testified as an interested party to the legislation and noted that the removal of this fee would not have a detrimental effect on safety.

A Gentleman, a Great Lawyer and a Better Man February 18, 2011 Longtime OMA counsel Art Vorys passed away last week. He was 87. A memorial service takes place in Columbus today.

Art served the OMA for more than 40 years. His father was counsel to the OMA before him.

Art was a World War II veteran. He served as a Marine and was wounded at the Battle of Okinawa. After the war, he attended Williams College and The Ohio State University School of Law. He was quietly and graciously active in innumerable community programs.

Art was a gentleman, a great lawyer and a better man. He left a grand legacy of service to Ohio manufacturing through the OMA.

Manufacturers Lobby for Regulatory Reform February 18, 2011

Among the top priority legislation pending in the Ohio General Assembly is Senate Bill 2, Governor Kasich's plan to improve state agencies rules and regulations on business. The bill requires disclosures and safegaurds against rule-making that adversly impact small businesses, those with 500 or fewer employees. The bill also empowers the legislative Joint Committee on Agency Rule Review to recommend invalidation of agency rules if the committee determines the rule will be too costly for small business. Alan McCoy of OMA member AK Steel appeared before the Ohio Senate Government Oversight Committee this week to offer support for the measure. McCoy told the the committee that the bill will improve agency accountability in adopting only regulations that add transparency, consistency, and balance. McCoy described how a large steel manufacturer such as AK depends on smaller suppliers and customers, which will benefit from the bill.

In written testimony, The Timken Company also offered support for the bill.

Public Sector Collective Bargaining Debate Intensifies February 18, 2011 As Senate hearings continued on legislation aiming to reform the state’s 28 year old public sector collective bargaining bill, labor union members jammed the Statehouse hallways, spilling out onto the Statehouse grounds. Senate Bill 5 would eliminate collective bargaining for state workers, including those at colleges and universities.

At the local level, the bill would allow hiring of replacement workers during strikes. It takes health care off the bargaining table, and prohibits the use of seniority in layoff decisions. For safety forces, which already are prohibited from striking, the bill eliminates binding arbitration.

Here’s some data from the OMA publication “2010 Ohio Manufacturing Counts” to consider with this issue:

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Jobs: The sector with the largest number of jobs in Ohio is government, which had 14.3% of all jobs in Ohio (Bureau of Labor Market Information, 2008). Manufacturing is second at 14.1%. Health care and social assistance is third at 13.4%.

Payroll: Manufacturing is the largest sector in annual payroll at $38 billion. Government is second at $33 billion. Health care and social assistance is third at $27 billion.

GDP: Manufacturing is the leading sector in contribution to annual state GDP at $84 billion, or about 18%. Government is second at $11.5 %, $54 billion. Real estate, rental and leasing is third with 9.9% or $46 billion.

Government is big business in Ohio.

Right-to-Work Legislation? Not this Year, or Next February 11, 2011 With the new and large Republican majorities in both the House and Senate, there has been quite a lot of conversation about the possibility of legislative action to make Ohio a right-to-work state. It is not going to happen now, according to Senate President Tom Niehaus.

Statehouse reporters quoted Senator Niehaus this week: “I do not see legislation to make Ohio a right-to-work state something that we’re going to deal with, certainly not this year and possibly not this General Assembly.”

False Claims Act Settlement --State-Level Act Pondered? February 11, 2011

On February 1, the State of Ohio reached a settlement with Dayton-based managed care organization (MCO), CareSource. The company provides contract medicaid management for the State of Ohio.

The U.S. Government and two former employees of the MCO were also parties to the suit and will split a $26 million settlement. The lawsuit alleged that CareSource falsely billed the state (and federal government) for medical services that were not delivered. CareSource denies the wrongdoing and settled to make the case end. The lawsuit was initiated in federal court by two former employees of the company who utilized the provisions of the false claims act that allows private individuals with knowledge of fraud to file suit on behalf of the United States and share in recovery. This citizen right to file suit on behalf of the U.S. Government is known as qui tam and has roots to the original False Claims Act signed into law by Abraham Lincoln.

Attorney General Mike DeWine announced the settlement hailing it a victory to Ohio taxpayers and for protecting Ohio's most vulnerable citizens. The Attorney General condemned the MCO for defrauding and failing to provide health care services. Of concern to manufacturers were other comments the Attorney General made that seem to

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favor Ohio enacting some form of its own false claims act. Twenty seven other states are believed to have state-level false claims acts. Ohio lawmakers have considered but never enacted such a provision. A change in federal law now provides a larger cut of settlements and judgments to states with their own laws on the books.

Manufacturing leaders familiar with the principle have generally opposed the enactment of state-level false claims act. "The cons are outweighed by the pros," said OMA's Ryan Augsburger who also chairs the Ohio Alliance for Civil Justice. "False claims may well become the next ATM for the plaintiff's bar," Augsburger said, noting that "I have to wonder how real the complaint was in this dispute since the state agency that manages the contract with CareSource was quoted as saying it is comfortable with the contractor and intends to continue contracting with the company."

Unions Flood Ohio Statehouse February 11, 2011 Union members showed up at the Statehouse in force this week as the Senate began hearings on Senate Bill 5, a bill that proposes dramatic changes to the state’s public employee collective bargaining law. The law has remained largely unchanged since the tenure of Governor Dick Celeste, under whose leadership the law was enacted.

The bill, sponsored by Senator Shannon Jones (R - Springboro), would eliminate collective bargaining for state employees and employees of public colleges and universities. It calls for elimination of the state employee statutory salary schedules and step increases. And, it calls for the development of a merit-based compensation system for the state.

The bill does not eliminate collective bargaining for employees of local governments. Rather, it limits the reach of bargaining to wages, hours and employment conditions, and takes health care and other subjects off the bargaining table. The bill repeals the state law’s mandatory binding arbitration provision for safety forces, allows local government employers to extend a contract for one-year in the event of a bargaining stalemate, and allows for the hiring of permanent replacement workers in the event of a strike.

OMA Signs Letter of Support for the Manufacturing Extension Partnership Program February 11, 2011

The National Association of Manufacturers (NAM) is spearheading a joint-association letter to Capitol Hill to generate support for the Manufacturing Extension Partnership Program (MEP), housed in the Department of Commerce. OMA president Eric Burkland is signing onto the letter, saying, “The MEP contributes to the creation and retention of U.S. manufacturing jobs. Each year, the program’s job creation metrics are validated by an independent third party. This year, the MEP has been attacked in many deficit reduction proposals on Capitol Hill; lawmakers need to hear that manufacturers use this program to expand jobs."

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According to NAM, the MEP performance audit validated that MEP created and retained 72,075 jobs in FY09 and more than 318,000 since the program was created in 1988.

Ohio Bill Introductions Continue February 11, 2011 Statehouse corridors were crowded this week as newly introduced legislation was considered in statehouse hearing rooms. The OMA is tracking the bills listed below that were introduced this week and will be discussing them at upcoming OMA policy committee meetings. HB 94 Small Business Rule Review Process (Roegner, R - Hudson) - to adopt a new small business rule review process. HB 95 Natural Gas Rates (Stautberg, R - Cincinnati) - to permit rate calculation adjustments for natural gas companies, and make other regulatory changes. SB 62 Compensatory Time Off (Beagle, R - Tipp City) - to give private sector employers the option to offer employees the option to accrue and use compensatory time off in lieu of monetary overtime compensation. For a complete list of state legislation the OMA is monitoring on behalf of members, organized by topic, visit the OMA Bill Tracker.

Ohio Takes it to the Super Bowl February 04, 2011

Whether you are rooting for the Packers or the Steelers on Sunday, remember that the game can’t be played without Ohio manufacturing. That’s because OMA member, Wilson Sporting Goods, Ada, Ohio, has turned out every single NFL ball since 1955.

Ohio’s Wilson factory produces 228 balls for the Super Bowl. Each team gets 108 balls and will choose half of them for game use (the other half will be used for practice). In addition, 12 "K" balls for kicking plays are sent directly to the officiating crew. Read how they tackle production of the Super Bowl balls!

Ohio Statehouse, Federal Courts Active on Health Care Law February 04, 2011

The Ohio Statehouse and federal courts were active this week on the Patient Protection and Affordable Care Act (PPACA), otherwise known as "Obamacare." At the Statehouse:

HB 11 (Sears – R, 46) which denies any Ohio department or agency from implementing or enforcing any provision of PPACA underwent sponosr testimony in committee. HB 85 (Hackett – R, 84) was introduced and prohibits requiring an individual to purchase health care.

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House Joint Resolution 2 (Maag – R, 35) was introduced and proposes a provision to the Ohio Constitution to protect Ohioan’s ability to choose their health care coverage. On the federal level, Judge Vinson of the United States District Court for the Northern District of Florida struck down the PPACA as unconstitutional.

PUCO Nominating Council Releases Names February 04, 2011

The Public Utilities Commission of Ohio (PUCO) Nominating Council released this week its list of candidates for the two spots that Governor Kasich will have the opportunity to fill this year. Former Chairman Alan Schriber’s seat is vacant, while Commissioner Valarie Lemmie’s term is up this year. The names for consideration of the Chair: Jack Michael Biddison, Rockville, MD.; Commissioner Valerie Lemmie, Dayton; Andre Porter, Gahanna; and, Representative Todd Snitchler (R-Uniontown). Once the Governor selects the Chair, Bill Newcomb of Dublin, Ohio, will be added to the list for consideration of Commissioner Lemmie’s seat. Whispers at the Statehouse point to Representative Snitchler as the pick for Chair.

Senate Legislation Introduced– Take A Look February 04, 2011 Introducing more than 60 bills and resolutions, the Ohio Senate produced its early legislative proposals before the state budget process begins in March. Hearings are already underway in the Statehouse. The Senate made Senate Bill 1, its first priority, Governor Kasich’s economic development program, known as JobsOhio. Senate President Tom Niehaus (R – New Richmond) indicated other priorities include regulatory reform, performance auditing by the state auditor, public pension reform and collective bargaining. Here's the legislation OMA members will review at upcoming OMA policy committee meetings:

SB2 Regulatory Reform (J. Hughes) - to evaluate the economic impact of agency rules and regulations on small business in Ohio.

SB5 Collective Bargaining Reform (S. Jones) - to make changes to Ohio's Collective Bargaining Law, which was first enacted in 1983.

SB6 Job Retention Tax Credit (T. Patton) - to authorize a refundable job retention tax credit.

SB7 IRS Tax Changes (L. Obhof) - to expressly incorporate changes in the Internal Revenue Code since December 15, 2010, into Ohio law, and to declare an emergency.

SB47 CAT Tax Credit Grocery Stores (E. Kearney) - to authorize a commercial activity tax credit for grocery stores in under-served communities.

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See information on these and other bills we are monitoring on the OMA Bill Tracker.

House Introduces Bill to Dial Back PUCO Truck Rules for Private Intrastate Commercial Motor Vehicles February 04, 2011 Previously, the Public Utilities Commission of Ohio (PUCO) revised rules that apply to businesses that use vehicles with a gross vehicle weight (GVW), gross vehicle weight rating (GVWR) or gross combination weight rating (GCWR) of 10,001 to 26,000 pounds to transport property on a not-for-hire basis within Ohio. The PUCO has indicated that fines will be assessed on roadside safety inspections for non-compliant vehicles and drivers beginning January 1, 2012.

In an effort to relieve the “financial strain” and “red tape” of complying with the new regulations on small businesses, the House Republicans have introduced legislation that would repeal all but the federally-mandated "hazmat" requirements of the new rules. See the GOP press release.

The PUCO is planning to hold five listening sessions around the state to take testimony and hear comments regarding recent rule changes. We will keep you informed so you can participate.

There is a summary of the current rules on the PUCO site and a recording of the new rules from an OMA-sponsored webinar learning event. If you have expertise in this area and care to comment, please contact OMA’s Ryan Augsburger.

JobsOhio Bill Clears House February 04, 2011 The Ohio House passed House Bill 1, the vehicle to implement Governor Kasich’s plan for a private sector development organization, JobsOhio. The bill passed on a party line vote of 59 – 37.

Opponents, and some proponents, continue to express concern about transparency and accountability with financing decisions of the proposed organization. In addition, some legislators have questioned the constitutionality of granting to the organization the ability to take an equity stake in deals, which the bill would allow.

The OMA delivered a letter of support for the bill. In the letter, OMA president Eric Burkland wrote: “Whether structured as a public agency or a private corporation, what’s most important is the strength of the Governor’s commitment to make economic development the top priority for our state.”

The letter also stated that “(E)conomic development must be much more than about incentives and handouts…manufacturers locate their businesses in the all-in least-cost environment.” Government effects costs in a broad range of areas, including labor, energy, workers’ compensation, logistics, civil justice, education and training, research and development, and so on.

New Restrictions on Corporate Campaign Activity Proposed January 28, 2011

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House Democrats introduced H.B. 55 this week, marking the one-year anniversary of the U.S. Supreme Court decision, "Citizens United," which loosened restrictions on campaign contributions.

The state legislation appears to codify restrictions recently adopted in rule by former Secretary of State Jennifer Brunner. Those rules require greater contribution disclosure and disclaimers than what Citizens United requires.

The House bill bans companies with “significant interest” in Ohio from making campaign contributions. “Significant interest” was defined by the sponsor in an interview this week to include business contracts, regulation, significant tax credits,and loans, among other actions.

The OMA Government Affairs Committee will review the matter in detail at its March 2 meeting so that members understand what their companies can and cannot do in the way of contributions. Email Judy Thompson to register for the meeting.

OMA Clips News for Ohio Manufacturers! January 28, 2011 Wouldn’t it be nice if someone edited the Ohio newspapers for your interests? We do!

Everyday, the OMA reviews newspapers from across Ohio and nationally and clips the articles with greatest impact and interest to Ohio manufacturers. We send you an email with just headlines and a brief blurb, and a link to the full article.

Many OMA members find OMA Daily Clips the “right” daily news digest for them. Email Judy Thompson with your name and email address; we’ll subscribe you to the free OMA Daily Clips. (Unsubscribe at any time with one click.)

President Obama Sets Plans for Clean Energy in State of the Union Address January 28, 2011 In his state of the union address this week, President Obama outlined plans to invest in clean energy and advanced manufacturing. You can find details of the clean energy initiative here and details of the advanced manufacturing initiative here.

The OMA has been active in shaping energy policy in Ohio for the benefit of manufacturing. The OMA supports the development of advanced energy technologies in a prudent manner that is responsive to manufacturing’s need for cost competitiveness. Learn more about Ohio manufacturers' aims in Ohio energy policy by reading Retooling Ohio: Electricity and Energy Efficiency. This Weeks Bill Introductions To Take A Look At January 28, 2011

Here are bill introductions from this week that OMA will be watching for manufacturing impacts:

HB48 CORPORATIONS (MECKLENBORG, R) To make changes to the law governing corporations' dissenting shareholders, the dissolution of a corporation, rights to indemnification or advancement of expenses, directors' fiduciary duties, and recording of corporate mortgages.

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HB51 MUNICIPAL UTILITIES (SNITCHLER, T) To require a municipal utility supplying surplus electricity to nonresidents to provide written notice of termination one year before terminating the service.

HB55 CAMPAIGN CONTRIBUTIONS (GOYAL, J) To regulate independent expenditures by corporations, labor organizations, and entities the primary purpose of which are to accept corporate or labor organization funds for use in making independent expenditures and to prohibit contributions made for the purpose of influencing a ballot issue from being made to or accepting by an entity that is not subject to campaign finance reporting requirements.

HB61 COMPENSATORY TIME OFF (THOMPSON, A) To give private employers the option to offer employees the option to accrue and use compensatory time off in lieu of monetary overtime compensation.

See information on these and other bills on the OMA Bill Tracker.

Ohio Senate Announces Committee Chairs January 28, 2011 Senate President Tom Niehaus announced this week the chairs for Senate committees. Additionally, President Niehaus announced a realignment of committees: a separate Financial Institutions Committee and a merger of the Agriculture Committee with the Environment and Natural Resources Committee. Click here to see a complete list of committees and chairs.

OMA Chairman Hollister Testifies for JobsOhio January 28, 2011 OMA Chairman Jeff Hollister, owner of Marietta-based Vanguard Paint and Finishes, Inc., testified this week before the House State Government and Elections Committee in favor of House Bill 1, the vehicle for privatizing functions of the Ohio Department of Development. The private sector organization proposed by the bill, JobsOhio, is the first legislative initiative of Governor Kasich.

Hollister said, “I have a quote taped on my desk. I am not certain where I first saw it, and its origin really doesn’t matter. What it says, however, I believe has application here today: ‘If we always do what we’ve always done, we’ll always get what we always got.’ Times change and we need to change with them. What worked in economic development ten years ago does not necessarily work today. It is time to try something new.”

The bill passed out of committee on a party line vote. It now goes to the House Finance and Appropriations Committee for a separate review due to a $1 million appropriation that is contained in the bill. Under House Bill 1, the development department director is to conduct a six-month study of how to improve operations supporting economic development in the state.

The Corporate Security Plan: Reducing Corporate Risks January 26, 2011

OMA Connections Partner, SACS Consulting and Investigative Service, has prepared a brief whitepaper about the importance of a corporate security plan to reduce risks associated with violence, litigation, internal theft, and high insurance costs, as well as help your organization

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comply with regulatory agencies, such as OSHA, BWC and EEOC, and improve employee morale and productivity. From OMA Connections Partner, SACS Consulting & Investigative Services, Inc.

PNC’s Senior Economist Sees Half-Speed Recovery January 21, 2011 Robert A. Dye, Senior Economist for OMA Connections Partner, PNC Bank, presented his 2011 economic outlook in an OMA webinar session this week. Dye presented a picture of overall growing national strength in manufacturing, including an up tick in auto production and hiring announcements by several major manufacturers.

To the question of how the national forecast relates to Ohio manufacturing, Dye offered this comment, “Most manufacturers in Ohio will have significant exposure to national and international economic trends. However, some are highly exposed to local economic conditions either because they serve local markets or serve other locally dominant manufacturing centers (such as the auto industry) where specific large plants have been affected. Looking at manufacturers who serve local markets, I would say that their prospects over 2011 will not be as strong as the nationally and globally integrated companies. Local conditions remain challenging in Ohio.”

Still referring to Ohio, he added, ”Employment statewide only stabilized after the 2001 recession, largely failing to recoup losses prior to the recession of 2008/09. From mid-2009 to present, total employment has stabilized and increased slightly while the unemployment rate statewide matched the U.S., as of November at 9.8 percent. House prices remain quite soft and foreclosures are elevated statewide. Based on its previous track record and the current house price situation, my expectation is that the local economic recovery for Ohio slightly lags the U.S. This is not to say that Ohio does not participate. But rather, conditions in southern, Rocky Mountain and southwestern states (with the exception of California) appear likely to improve more quickly.”

OMA/PNC Recorded Webinar: 2011 Economic Outlook for Ohio Manufacturers January 21, 2011 Click here to experience the OMA/PNC 2011 Economic Outlook for Ohio Manufacturers 01/19/2011 recorded webinar with presenter, Robert A. Dye, senior vice president and senior economist for The PNC Financial Services Group.

House Appoints Committees and Chairs January 14, 2011 Adhering to his pre-election pledge to reduce the number of standing committees, House Speaker Bill Batchelder (R – Medina) this week announced committee chairs and committee assignments.

Representative Ron Amstutz (R – Wooster) takes the helm of the finance committee that will have the first whack at the state budget. One notable new body is a sub-committee on workers’ compensation, chaired by Representative Bob Hackett (R – London), within the standing insurance committee.

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House Introduces First Bills January 14, 2011

Republicans in the Ohio House of Representatives this week introduced their first legislation. Here is a list of bills.

House Speaker Bill Batchelder explained that this first set of bills and resolutions does not necessarily reflect the caucus’ top priorities. House Bill 1 was introduced as a place-saver for language under development to transform the existing Ohio Department of Development into the public-private partnership called “JobsOhio.”

The Ohio Senate Republican caucus will introduce legislation as it fine-tunes its priorities. Also this week, House Speaker Batchelder and Senate President Niehaus published the legislative schedule for the first half of 2011.

Kasich Issues Executive Order on Regulatory Reform January 14, 2011 One of Governor Kasich’s first official acts as governor this week was to issue an executive order, 2011-01K, that is intended to remove obstacles for small businesses to operate in Ohio. The order indicates that small businesses are vital to job creation, but that they are disproportionately impacted by regulations.

Under the order, the Lieutenant Governor is authorized to develop and implement the “Common Sense Initiative” (CSI), a process for independently evaluating the economic impact of agency rules and regulations on small businesses. Lt. Gov. Mary Taylor is permitted to hire staff for this new initiative. The order also provides for a Small Business Advisory Council to be established to gather input from the small business community.

Kasich Names Ohio EPA and Ohio DNR Directors January 7, 2011

Governor-Elect Kasich named Scott Nally as Ohio EPA director and David Mustine as Ohio DNR director. Since 2005, Nally has served as assistant commissioner of Indiana’s Department of Environmental Management; before that, Nally spent 11 years serving as the regional environmental affairs manager for Perdue Farms. Mustine formerly served as a senior vice-president at AEP and had responsibilities in regulatory and issues management, business planning, financial management, business development and community services. Mustine’s most recent role was director of Terraseis, an oil and gas services business based in Dubai. In the press conference where the nominees where announced, Governor-elect Kasich noted that Ohio needs to make better use of its natural resources – a nod toward drilling for gas and oil on state and park land. Mr. Kasich noted that this would not be at the cost of environmental degradation and specified that Lake Erie is a “jewel” and deserves extremely careful attention.

Governor Elect Kasich Names Kvamme for ODOD January 07, 2011

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Governor-Elect Kasich named Mark Kvamme as the person who will head the Ohio Department of Development (ODOD) as it transitions into the nonprofit "JobsOhio." JobsOhio is Kasich’s plan to restructure ODOD into a public-private nonprofit that is focused exclusively on economic development. Kvamme is a partner at a California based venture capital fund and is expected to be in the position for a five to six month transition while the legislation enabling the restructuring of ODOD is moved through the Ohio legislature. Kasich stated that Kvamme’s experience with structuring business deals will serve him well as he rationalizes each of the current functions of ODOD, develops metrics for economic development packages, and recommends which programs will stay with JobsOhio. Click here to read an article from the Columbus Dispatch on the announcement.

129th General Assembly Begins Work January 07, 2011

On Monday both the Ohio Senate and the Ohio House of Representatives officially commenced the 129th two-year session or "general assembly." Republicans once again control the Ohio House with a 59-40 margin. The House chose Bill Batchelder (R - Medina) as its leader, or Speaker of the House. Click for a list of other House leaders. The Senate increased its Republican margin of control to 23-10 and elected Tom Niehaus as Senate President (R - New Richmond). Click for a list of other Senate leaders. In the coming weeks lawmakers will select committee chairs and introduce priority legislation.

Statewide Officeholders Take Oaths January 07, 2011

Candidates elected to lead Ohio's government in November will be administred the Oath of Office over the next few days. Supreme Court Justices Maureen O'Connor and Judith Ann Lanzinger will be officially inaugurated today and tomorrow while Jon Husted and Mike DeWine will officially take their oaths for Secretary of State and Attorney General on Sunday afternoon. David Yost will be sworn in as State Auditor on Monday morning, with Josh Mandel taking office late Monday afternoon. John Kasich will be inaugurated Ohio Governor mid-day Monday with a gala event to follow that evening. Contact the OMA's Ryan Augsburger with questions about accessing these events. OMA members and their guests who may be in Columbus for inaugural events on Monday, January 10, are welcome to use the OMA office as their ‘home base’ between events. OMA has member work and meeting space, wifi, and will have complimentary light refreshments available from 8:30 a.m. through 5:00 p.m.

For those who haven’t visited our offices, please know that OMA shares office space with the Central Ohio Transit Authority (COTA). Enter the OMA offices through the revolving COTA door at 33 N. High Street, check in at the security desk, and you will be given access to the OMA offices, which are on the 6th floor. Unfortunately, OMA does not have guest parking space so your parking options are the local commercial lots. We hope to see you!

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Recorded OMA/PUCO Webinar: Operate Your Own Fleet? PUCO has New Motor Carrier Safety Rules - 12/08/2010 January 04, 2011

Hear the Recorded OMA/PUCO Webinar: Operate Your Own Fleet? PUCO has New Motor Carrier Safety Rules - 12/08/2010

Kasich Inauguration Details Now Available December 17, 2010

John Kasich will be inaugurated as Ohio’s 69th Governor at noon on Monday, January 10. A series of events have been scheduled preceding and following the noon ceremony.

An inaugural committee has been formed to manage the inaugural activities. Manufacturing leaders may support the events financially. Unlike political campaign contributions which must be personal funds and not business funds, contributions to an inaugural committee may be corporate funds. Leadership level support at the $10,000 level will provide access to a series of inaugural events.

Use the contribution form and W-9 to process contributions. Feel free to contact the OMA staff if you have questions or would like personal assistance.

Strickland Appoints Supreme Court Justice December 10, 2010

Earlier today Governor Ted Strickland appointed his campaign running mate, Yvette McGee Brown, to fill the vacancy on the Supreme Court created by Maureen O’Connor’s elevation to Chief Justice. McGee Brown formerly served as common pleas judge in Franklin County and had been widely speculated for the appointment. Thank You for Helping Celebrate OMA’s 100th Birthday December 10, 2010

OMA staff is so grateful to the OMA members who sponsored and attended its 100 Year Celebration of Manufacturing Excellence at the Statehouse Atrium on Tuesday, December 7.

We are honored to have had several of the state’s most distinguished citizens as speakers, including Governor Ted Strickland, Senate President Bill Harris, and personal video messages from Senator Sherrod Brown and Senator George V. Voinovich.

OMA founder, Colonel John Gordon Battelle, said in 1910: “There is important work for this organization to do in the immediate future.” OMA Chairman, Jeff Hollister, Vanguard Paints & Finishes, Inc., Marietta, concluded the celebration with these same words which are just as true today.

Wainscott Calls For a U.S. Industrial Renaissance December 10, 2010

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In a powerful keynote speech at the OMA’s 100 Year Celebration of Manufacturing Excellence this week, James L. Wainscott, Chairman, President & CEO of AK Steel laid out a challenge to the country: grow manufacturing’s share of GDP from 12% to 20% by 2020.

“Manufacturing is the engine of our economy. It’s where real wealth is created and sustained. Yet, manufacturing only represents about 12% of GDP,” Wainscott said. “I say we target 20% of GDP by the year…2020. 20% by 2020. Not only does it have a nice ring to it, but it would do wonders for our jobs, for Ohio and our country. It would be our industrial renaissance.”

“But, it won’t be easy…because it’s tough – and getting even tougher – to make things in America. We’ve got to reverse that trend, and we’ve got to do it now and it can start right here in the Ohio Statehouse,” he said. “On our side we have the history of innovation represented in this room and by thousands of others who made Ohio the manufacturing center of the United States – even the world. But we face an unlevel playing field in our quest to make sure that Ohio regains its stature as a fertile, low-cost home for world-wide manufacturers.”

Wainscott’s Action Plan December 10, 2010

In his keynote address at the OMA 100 year anniversary, AK Steel’s Jim Wainscott laid out a six-point plan for protecting and growing American manufacturing:

• “First, we need a reasonable regulatory approach, not one that strangles our global competitiveness.

• Second, we need to enforce our existing trade laws. • Third, once and for all, we need a comprehensive energy policy. • Fourth, we need to repair our roads and bridges. • Fifth, we need a modern day tax policy. • And the sixth and final element of my “platform” is a broad catch-all: let’s develop a pro-

manufacturing agenda.”

And, Wainscott on Trade

“Right here in America, we have the greatest workforce and the greatest innovators in the world. We can compete with anybody, anywhere, anytime, including foreign competitors. But, we cannot and should not have to compete with foreign governments, which is what we are doing today,” said Wainscott as he addressed an anniversary audience of 350 manufacturers and public officials. “So, to the governments of our global competitors, our government has to have the courage to say:

• Stop manipulating your currency. • Drop your import barriers. • Eliminate your export subsidies, and • Keep your unemployment on your shores, not ours.”

OMA Government Affairs Committee Meeting Materials - 12/08/2010 December 08, 2010

Click here to view OMA Government Affairs Committee meeting materials for December 8, 2010

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Miscellaneous Legislation of Interest to Manufacturers Prepared by: The Ohio Manufacturers' Association

Report created on February 25, 2011

HB1 JOBSOHIO (DUFFEY, M) To authorize the Governor to create JobsOhio, a nonprofit economic development corporation.

All Bill Status: 2/18/2011 - SIGNED BY GOVERNOR 2/17/2011 - Sent to Governor for Signature 2/16/2011 - Consideration of Senate Amendments; CONCURRED 60-35 2/16/2011 - PASSED BY SENATE; Vote 31-2 2/16/2011 - Bills for Third Consideration 2/16/2011 - REPORTED OUT AS AMENDED, Senate Finance, (Fourth Hearing) 2/15/2011 - Senate Finance, (Third Hearing) 2/9/2011 - Senate Finance, (Second Hearing) 2/8/2011 - Referred to Committee Senate Finance 2/8/2011 - Senate Finance, (First Hearing) 2/1/2011 - PASSED BY HOUSE; Vote 59-37 2/1/2011 - Bills for Third Consideration 1/27/2011 - REPORTED OUT AS AMENDED, House Finance and Appropriations, (First Hearing) 1/26/2011 - Re-Referred to Committee 1/26/2011 - REPORTED OUT AS AMENDED, House State Government and Elections, (Second Hearing) 1/25/2011 - SUBSTITUTE BILL ACCEPTED, House State Government and Elections, (First Hearing) 1/11/2011 - Referred to Committee House State Government and Elections 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_1 HB2 PERFORMANCE AUDITING (SNITCHLER, T) To require performance auditing of most state

agencies.

All Bill Status: 2/23/2011 - PASSED BY HOUSE; Vote 97-0 2/23/2011 - Bills for Third Consideration 2/15/2011 - REPORTED OUT AS AMENDED, House Finance and Appropriations, (Second Hearing) 2/9/2011 - House Finance and Appropriations, (First Hearing) 2/8/2011 - Re-Referred to Committee 2/8/2011 - REPORTED OUT AS AMENDED, House State Government and Elections, (Fifth Hearing) 2/1/2011 - House State Government and Elections, (Fourth Hearing) 1/27/2011 - House Finance and Appropriations, (First Hearing) 1/26/2011 - SUBSTITUTE BILL ACCEPTED, House State Government and Elections, (Third Hearing) 1/25/2011 - House State Government and Elections, (Second Hearing)1/19/2011 - House State Government and Elections, (First Hearing) 1/11/2011 - Referred to Committee House State Government and Elections 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_2 HB9 UNIFORM COMMERCIAL CODE (COLEY II, W) To adopt revisions to the general provisions and

documents of title portions of the Uniform Commercial Code that were recommended by the National Conference of Commissioners on Uniform State Laws.

All Bill Status: 3/2/2011 - Senate Judiciary - Civil Justice, (Second Hearing) 2/23/2011 - Senate Judiciary - Civil Justice, (First Hearing) 2/16/2011 - Referred to Committee Senate Judiciary - Civil Justice 2/8/2011 - PASSED BY HOUSE; Vote 98-0

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2/8/2011 - Bills for Third Consideration 2/1/2011 - REPORTED OUT AS AMENDED, House Judiciary and Ethics, (Second Hearing) 1/25/2011 - House Judiciary and Ethics, (First Hearing) 1/11/2011 - Referred to Committee House Judiciary and Ethics 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_9 HB48 CORPORATIONS (MECKLENBORG, R) To make changes to the law governing corporations

dissenting shareholders, the dissolution of a corporation, rights to indemnification or advancement of expenses, directors' fiduciary duties, and recording of corporate mortgages.

All Bill Status: 3/3/2011 - House Financial Institutions, Housing and Urban Development, (Fourth Hearing) 2/24/2011 - House Financial Institutions, Housing and Urban Development, (Third Hearing) 2/17/2011 - House Financial Institutions, Housing and Urban Development, (Second Hearing) 2/10/2011 - House Financial Institutions, Housing and Urban Development, (First Hearing) 2/1/2011 - Referred to Committee House Financial Institutions, Housing and Urban Development 1/26/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_48 HB55 CAMPAIGN CONTRIBUTIONS (GOYAL, J) To regulate independent expenditures by corporations,

labor organizations, and entities the primary purpose of which are to accept corporate or labor organization funds for use in making independent expenditures and to prohibit contributions made for the purpose of influencing a ballot issue from being made to or accepting by an entity that is not subject to campaign finance reporting requirements.

All Bill Status: 2/1/2011 - Referred to Committee House State Government and

Elections 1/26/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_55 HB82 PUCO-MOTOR VEHICLE REGULATIONS (GROSSMAN, C) To prescribe the applicability of federal

regulations adopted by the Public Utilities Commission of Ohio to certain motor vehicles.

All Bill Status: 2/16/2011 - House Public Utilities, (First Hearing)

2/2/2011 - Referred to Committee House Public Utilities 2/2/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_82 HB94 SMALL BUSINESS RULE REVIEW PROCESS (ROEGNER, K) To adopt a new small business rule

review process.

All Bill Status: 2/24/2011 - House Economic and Small Business Development, (Second Hearing) 2/17/2011 - House Economic and Small Business Development, (First Hearing) 2/8/2011 - Referred to Committee House Economic and Small Business Development 2/8/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_94 HB102 LABOR REQUIREMENTS (YOUNG, R) To prohibit state agencies from requiring or prohibiting

certain labor requirements as a condition of performing public works and to prohibit the appropriation of state funds for public works when political subdivisions require or prohibit certain labor requirements.

All Bill Status: 3/2/2011 - House Commerce & Labor, (Second Hearing)

2/23/2011 - House Commerce & Labor, (First Hearing) 2/16/2011 - Referred to Committee House Commerce & Labor

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2/15/2011 - Introduced More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_102 HB112 ENGINE COOLANT/ANTIFREEZE (GROSSMAN, C) To require the inclusion of a bittering agent in

engine coolant and antifreeze.

All Bill Status: 3/2/2011 - House Transportation, Public Safety and Homeland Security, (First Hearing) 2/22/2011 - Referred to Committee House Transportation, Public Safety and Homeland Security 2/22/2011 - Introduced

More Information: No link available HB114 TRANSPORTATION BUDGET (MCGREGOR, R) To make appropriations for programs related to

transportation and public safety for the biennium beginning July 1, 2011, and ending June 30, 2013, and to provide authorization and conditions for the operation of those programs.

All Bill Status: 3/2/2011 - House Finance and Appropriations, (Second Hearing) 3/1/2011 - House Transportation Subcommittee, (Fourth Hearing) 2/28/2011 - House Transportation Subcommittee, (Third Hearing) 2/24/2011 - House Transportation Subcommittee, (Second Hearing) 2/23/2011 - House Finance and Appropriations, (First Hearing) 2/22/2011 - Referred to Committee House Finance and Appropriations 2/22/2011 - Introduced

More Information: No link available HB123 WORKERS' COMPENSATION BUDGET (HOTTINGER, J) To allow the administrator of Workers'

Compensation to waive criteria certain public employers must satisfy to become self-insuring employers; to require bills for medical and vocational rehabilitation services in claims that are ultimately denied to be paid from the Surplus Fund Account under specified circumstances; to make appropriations for the Bureau of Workers' Compensation and for the Workers' Compensation Council for the biennium beginning July 1, 2011, and ending June 30, 2013; and to provide authorization and conditions for the operation of the Bureau's and the Council's programs.

All Bill Status: 3/1/2011 - House Insurance, (First Hearing) 2/24/2011 - Introduced

More Information: No link available HB124 INDUSTRIAL COMMISSION BUDGET (HOTTINGER, J) To set appropriations for the Industrial

Commission for the biennium beginning July 1, 2011, and ending June 30, 2013, and to provide authorization and conditions for the operation of Commission programs.

All Bill Status: 3/1/2011 - House Insurance, (First Hearing) 2/24/2011 - Introduced

More Information: No link available SB2 REGULATORY REFORM (HUGHES, J) To evaluate the economic impact of agency rules and

regulations on small business in Ohio.

All Bill Status: 3/1/2011 - House Economic and Small Business Development, (First Hearing) 2/23/2011 - PASSED BY SENATE; Vote 32-1 2/23/2011 - Bills for Third Consideration 2/22/2011 - SUBSTITUTE BILL ACCEPTED & REPORTED OUT AS AMENDED, Senate Government Oversight & Reform, (Third Hearing) 2/17/2011 - Senate Government Oversight & Reform, (Second Hearing)2/8/2011 - Senate Government Oversight & Reform, (First Hearing) 2/2/2011 - Referred to Committee Senate Government Oversight & Reform 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_2 SB11 GOVERNMENT REGULATION PROCESS (CAFARO, C) To enact the Common Sense Regulation

Act to improve state agency regulatory processes, especially as they relate to small businesses, to

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require state departments to develop customer service training programs, and to require the Director of Environmental Protection to provide environmental regulatory compliance assistance to small businesses.

All Bill Status: 2/2/2011 - Referred to Committee Senate Government Oversight &

Reform 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_11 SB12 SMALL BUSINESS SET ASIDE (KEARNEY, E) To generally require that state agencies set aside a

certain amount of purchases for which only small business enterprises may compete.

All Bill Status: 2/2/2011 - Referred to Committee Senate State & Local Government &

Veterans Affairs 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_12 SB73 NONBEVERAGE FOOD MANUFACTURERS (MANNING, G) To allow manufacturers of

nonbeverage food products to purchase at wholesale beer and intoxicating liquor from A and B liquor permit holders.

All Bill Status: 3/3/2011 - Senate Ways & Means & Economic Development, (Third Hearing) 2/22/2011 - Senate Ways & Means & Economic Development, (Second Hearing) 2/17/2011 - Senate Ways & Means & Economic Development, (First Hearing) 2/16/2011 - Referred to Committee Senate Ways & Means & Economic Development 2/15/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_73 SB89 LABOR REQUIREMENTS (JORDAN, K) To prohibit state agencies from requiring or prohibiting

certain labor requirements as a condition of performing public works and prohibit the appropriations of state funds for public works when political subdivisions require or prohibit certain labor.

All Bill Status: 2/23/2011 - Introduced More Information: No link available SB98 FEDERAL IMMIGRATION LAWS (STEWART, J) To direct the Attorney General to pursue a

memorandum of agreement that permits the enforcement of federal immigration laws in this state by law enforcement officers.

All Bill Status: 2/23/2011 - Introduced More Information: No link available

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Ohio Senate Directory For 2011-2012

Statehouse, Columbus, OH 43215 23 Republicans, 10 Democrats Clerk: Vincent Keeran 466-4900 http://www.senate.state.oh.us/

Senate Leadership

President: Tom Niehaus President Pro Tempore: Keith Faber Majority Floor Leader: Jimmy Stewart Majority Whip: Shannon Jones Minority Leader: Capri Cafaro Assistant Minority Leader: Shirley Smith Minority Whip: Edna Brown Assistant Minority Whip: Jason Wilson

Dist. Name Office Phone Elected Terms

3 Bacon, Kevin (R-Columbus) Rm. 035 466-8064 1 5 Beagle, Bill (R-Tipp City) Rm. 132 466-6247 1

11 Brown, Edna (D-Toledo) Rm. 228 466-5204 1 32 Cafaro, Capri (D-Hubbard) Rm. 303 466-7182 1

4 Cates, Gary (R-West Chester) Rm. 222 466-8072 2 17 Daniels, David (R-Greenfield) Rm. 041 466-8156 1 12 Faber, Keith (R-Celina) Rm. 138 466-7584 2 26 Gillmor, Karen (R-Tiffin) Rm. 039 466-8049 1 18 Grendell, Timothy (R-Chesterland) Rm. 042 644-7718 2

1 Hite, Clifford (R-Findlay) Rm. 134 466-8150 0 16 Hughes, Jim (R-Columbus) Rm. 125 466-5981 1

7 Jones, Shannon (R-Springboro) Rm. 220 466-9737 1 19 Jordan, Kris (R-Powell) Rm. 040 466-8086 1

9 Kearney, Eric (D-Cincinnati) Rm. 051 466-5980 2 27 LaRose, Frank (R-Fairlawn) Rm. 221 466-4823 1

6 Lehner, Peggy (R-Kettering) Rm. 034 466-4538 0 13 Manning, Gayle (R-North Ridgeville) Rm. 038 644-7613 1 14 Niehaus, Tom (R-New Richmond) Rm. 201 466-8082 2 22 Obhof, Larry (R-Montville Twp.) Rm. 125 466-7505 0 29 Oelslager, Scott (R-Canton) Rm. 226 466-0626 1 24 Patton, Thomas (R-Strongsville) Rm. 140 466-8056 1 28 Sawyer, Tom (D-Akron) Rm. 049 466-7041 2 31 Schaffer, Tim (R-Lancaster) Rm. 142 466-5838 2 33 Schiavoni, Joe (D-Canfield) Rm. 052 466-8285 1

8 Seitz, Bill (R-Cincinnati) Rm. 143 466-8068 1 23 Skindell, Michael (D-Lakewood) Rm. 056 466-5123 1 21 Smith, Shirley (D-Cleveland) Rm. 223 466-4857 2 20 Stewart, Jimmy (R-Albany) Rm. 129 466-8076 1 15 Tavares, Charleta (D-Columbus) Rm. 057 466-5131 1 25 Turner, Nina (D-Cleveland) Rm. 048 466-4583 1

2 Wagoner, Mark (R-Toledo) Rm. 137 466-8060 1 10 Widener, Chris (R-Springfield) Rm. 127 466-3780 1 30 Wilson, Jason (D-Columbiana) Rm. 050 466-6508 1

Ohio House Directory For 2011-2012 77 S. High St., Columbus, OH 43215 59 Republicans, 40 Democrats Clerk: Laura Clemens 466-3357 http://www.house.state.oh.us/

House Leadership

Speaker: Bill Batchelder Assistant Minority Leader: Matt Szollosi Minority Whip: Tracy Heard Assistant Minority Whip: Debbie Phillips Minority Leader: Armond Budish Speaker Pro Tempore: Louis Blessing Majority Floor Leader: Matt Huffman Assistant Majority Floor Leader: Barbara Sears Majority Whip: John Adams Assistant Majority Whip: Cheryl Grossman

Dist. Name Office Phone Elected Terms

78 Adams, John (R-Sidney) 14th Fl. 466-1507 3 79 Adams, Richard (R-Troy) 13th Fl. 466-8114 2

3 Amstutz, Ron (R-Wooster) 13th Fl. 466-1474 2 17 Anielski, Marlene (R-Walton Hills) 12th Fl. 644-6041 1 13 Antonio, Nickie (D-Lakewood) 11th Fl. 466-5921 1 48 Ashford, Mike (D-Toledo) 11th Fl. 466-1401 1 16 Baker, Nan (R-Westlake) 12th Fl. 466-0961 2 94 Balderson, Troy (R-Zanesville) 11th Fl. 644-6014 2 12 Barnes, John Jr. (D-Cleveland) 10th Fl. 466-1408 1 69 Batchelder, Bill (R-Medina) 14th Fl. 466-8140 3 67 Beck, Peter (R-Mason) 11th Fl. 644-6027 1 38 Blair, Terrence (R-Washington Township) 13th Fl. 466-6504 2 29 Blessing, Louis (R-Cincinnati) 14th Fl. 466-9091 4 58 Boose, Terry (R-Norwalk) 12th Fl. 466-9628 2

9 Boyd, Barbara (D-Cleveland Hts.) 10th Fl. 644-5079 3 2 Brenner, Andy (R-Powell) 12th Fl. 644-6711 1

88 Bubp, Danny (R-West Union) 13th Fl. 644-6034 4 77 Buchy, Jim (R-Greenville) 13th Fl. 466-6344 0

8 Budish, Armond (D-Beachwood) 14th Fl. 466-5441 3 83 Burke, David (R-Marysville) 12th Fl. 466-8147 2 37 Butler, Jim (R-Oakwood) 11th Fl. 644-6008 0 87 Carey, John (R-Wellston) 14th Fl. 466-1366 1 22 Carney, John (D-Columbus) 10th Fl. 466-2473 2 24 Celeste, Ted (D-Grandview Heights) 10th Fl. 644-6005 3 68 Clyde, Kathleen (D-Kent) 11th Fl. 466-2004 1 55 Coley, Bill (R-West Chester) 11th Fl. 466-8550 4 54 Combs, Courtney (R-Hamilton) 13th Fl. 644-6721 1 81 Damschroder, Rex (R-Fremont) 11th Fl. 466-1374 1 15 DeGeeter, Timothy (D-Parma) 10th Fl. 466-3485 4 53 Derickson, Tim (R-Oxford) 11th Fl. 644-5094 2 18 Dovilla, Mike (R-Berea) 12th Fl. 466-4895 1 31 Driehaus, Denise (D-Cincinnati) 10th Fl. 466-5786 2 21 Duffey, Mike (R-Worthington) 13th Fl. 644-6030 1 47 Fedor, Teresa (D-Toledo) 10th Fl. 644-6017 1 62 Fende, Lorraine (D-Willowick) 10th Fl. 467-7251 4 14 Foley, Mike (D-Cleveland) 10th Fl. 466-3350 4

6 Gardner, Randy (R-Bowling Green) 12th Fl. 466-8104 2 20 Garland, Nancy (D-New Albany) 10th Fl. 644-6002 2 95 Gentile, Lou (D-Steubenville) 11th Fl. 466-3735 1 59 Gerberry, Ronald (D-Austintown Twp.) 10th Fl. 466-6107 3 19 Gonzales, Anne (R-Westerville) 13th Fl. 466-4847 1 74 Goodwin, Bruce (R-Defiance) 13th Fl. 644-5091 3 73 Goyal, Jay (D-Mansfield) 10th Fl. 466-5802 3 23 Grossman, Cheryl (R-Grove City) 14th Fl. 466-9690 2 84 Hackett, Bob (R-London) 11th Fl. 466-1470 2 60 Hagan, Robert (D-Youngstown) 10th Fl. 466-9435 3 97 Hall, David (R-Killbuck) 11th Fl. 466-2994 2 91 Hayes, Bill (R-Harrison Township) 11th Fl. 466-2500 1 26 Heard, Tracy (D-Columbus) 14th Fl. 466-8010 3 36 Henne, Michael (R-Clayton) 13th Fl. 644-8051 1

98 Hollington, Richard (R-Chagrin Falls) 10th Fl. 644-5088 0 71 Hottinger, Jay (R-Newark) 12th Fl. 466-1482 3

4 Huffman, Matt (R-Lima) 14th Fl. 466-9624 3 89 Johnson, Terry (R-McDermott) 13th Fl. 466-2124 1 99 Kozlowski, Casey (R-Pierpont) 13th Fl. 466-1405 1 96 Landis, Al (R-Dover) 11th Fl. 466-8035 1 64 Letson, Tom (D-Warren) 11th Fl. 466-5358 3 39 Luckie, Clayton (D-Dayton) 10th Fl. 466-1607 3 57 Lundy, Matt (D-Elyria ) 10th Fl. 644-5076 3 35 Maag, Ron (R-Lebanon) 13th Fl. 644-6023 2 32 Mallory, Dale (D-Cincinnati) 10th Fl. 466-1645 3 70 Martin, Jarrod (R-Beavercreek) 13th Fl. 644-6020 2 82 McClain, Jeff (R-Upper Sandusky) 11th Fl. 644-6265 2 72 McGregor, Ross (R-Springfield) 11th Fl. 466-2038 3 43 McKenney, Todd (R-New Franklin) 11th Fl. 466-1790 1 30 Mecklenborg, Robert (R-Cincinnati) 11th Fl. 466-8258 2 45 Milkovich, Zack (D-Akron) 11th Fl. 644-6037 1 80 Murray, Dennis (D-Sandusky) 10th Fl. 644-6011 2

1 Newbold, Craig (R-Columbiana) 13th Fl. 466-8022 1 65 O'Brien, Sean (D-Brookfield) 11th Fl. 466-3488 1 61 Okey, Mark (D-Carrollton) 10th Fl. 466-1464 3 10 Patmon, Bill (D-Cleveland) 11th Fl. 466-7954 1 85 Peterson, Bob (R-Sabina) 13th Fl. 644-7928 1 92 Phillips, Debbie (D-Athens) 14th Fl. 466-2158 2 28 Pillich, Connie (D-Montgomery) 10th Fl. 466-8120 2 56 Ramos, Dan (D-Lorain) 10th Fl. 466-5141 1 33 Reece, Alicia (D-Cincinnati) 10th Fl. 466-1308 1 42 Roegner, Kristina (R-Hudson) 11th Fl. 466-1177 1 86 Rosenberger, Cliff (R-Clarksville) 13th Fl. 466-3506 1 90 Ruhl, Margaret Ann (R-Mt. Vernon) 11th Fl. 466-1431 2 51 Schuring, Kirk (R-Canton) 11th Fl. 752-2438 1 46 Sears, Barbara (R-Sylvania) 14th Fl. 466-1731 4 41 Slaby, Lynn (R-Copley Twp.) 11th Fl. 644-5085 1 52 Slesnick, Stephen (D-Canton) 10th Fl. 466-8030 2 50 Snitchler, Todd (R-Uniontown) 13th Fl. 466-9078 2 76 Sprague, Robert (R-Findlay) 13th Fl. 466-3819 0 34 Stautberg, Peter (R-Cincinnati) 11th Fl. 644-6886 2

5 Stebelton, Gerald (R-Lancaster) 13th Fl. 466-8100 3 25 Stinziano, Michael (D-Columbus) 11th Fl. 466-1896 1 44 Sykes, Vernon (D-Akron) 10th Fl. 466-3100 1 49 Szollosi, Matt (D-Oregon) 14th Fl. 466-1418 3 93 Thompson, Andy (R-Marietta) 11th Fl. 644-8728 1 66 Uecker, Joseph (R-Loveland) 12th Fl. 466-8134 4 75 Wachtmann, Lynn (R-Napoleon) 13th Fl. 466-3760 3 27 Weddington, W. Carlton (D-Columbus) 10th Fl. 466-5343 2 11 Williams, Sandra (D-Cleveland) 10th Fl. 466-1414 3 40 Winburn, Roland (D-Dayton) 10th Fl. 466-2960 2 63 Young, Ron (R-Leroy) 11th Fl. 644-6074 1

7 Yuko, Kenny (D-Richmond Heights) 10th Fl. 466-8012 4

Governor Kasich's Cabinet

• Mark Kvamme will be interim director of development. The independently wealthy Silicon Valley venture capitalist worked with Kasich at Lehman Brothers, a Wall Street-based brokerage firm. He is a partner at Sequoia Capital in Menlo Park, Calif., and board member of the LinkedIn social networking site. • Gary Mohr, named Ohio's top prison leader comes from Corrections Corporation of America, which operates a once-troubled privately managed federal prison in Youngstown. He previously served as state prison warden in his hometown of Chillicothe and as deputy director of the Ohio Department of Rehabilitation and Correction Services. His 23 years in state government spanned the administrations of Republican Govs. Jim Rhodes, George Voinovich and Bob Taft as well as Democrats Richard Celeste and John J. Gilligan. • Jerry Wray, 65, director of transportation, is a Voinovich rehire from the 1990s when ODOT and the Department of Public Safety's new Hilltop headquarters were constructed. Before his retirement in 2008, Wray was marketing engineer for U.S. Bridge and a lobbyist for the trade association for asphalt producers and highway contractors. • Timothy Keen, Director of Office of Budget and Management is a highly-respected numbers expert - some call him a wonk - who worked for former Ohio House Speaker Jo Ann Davidson of Reynoldsburg before she became deputy chairwoman of the Republican National Committee. Keen also served as deputy state budget director during Taft's administration, and more recently in Auditor Mary Taylor's office. • Thomas P. Charles, 68, will direct the Ohio Department of Public Safety, which includes the Ohio Highway Patrol and Bureau of Motor Vehicles. Charles served as Ohio Inspector General for Voinovich, Taft and Gov. Ted Strickland. Charles has investigated ODOT employees who worked for Wray. His work as the state's first legislative inspector general resulted in convictions of a deputy Insurance Department director and a Statehouse lobbyist. Charles' office also was instrumental in the conviction of coin dealer Tom Noe. In year-end interviews, Strickland said he would not have reappointed Charles, who led a probe of tobacco smuggling by prison work crews at the Governor's Mansion last year, including a review of Strickland's personal cellphone records. He previously served 31 years with the Ohio Highway Patrol, • David Mustine, 53, will direct the Ohio Department of Natural Resources. He recently served as director of Terraseis, a Middle Eastern oil and gas services business in Dubai. He's former senior vice president for Columbus-based American Electric Power. Kasich said he would like to expand drilling for oil and gas in Ohio while preserving the state's parkland and lakes. • Scott Nally, 46, will direct the Ohio Environmental Protection Agency. He comes from the Indiana Department of Environmental Management and Perdue Foods prior to that. Kasich said he would like Ohio to be more business-friendly, including toward its huge poultry farms. • Tracy J. Plouck, will direct the Department of Mental Health. She most recently served as Strickland's Medicaid Director. She also worked in the budget office and former Human Services department during the Taft and Voinovich administrations. • John L. Martin, a Strickland holdover, remains director of the Department of Developmental Disabilities. • Orman Hall will direct the Ohio Department of Alcohol and Drug Addition Services. He is executive director of Fairfield County's alcohol, drug addiction and mental health board.

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• Joseph Testa, director of Taxation. Former Franklin County auditor. • Col. Deborah A. Ashenhurst, as Ohio's first female Adjutant General and first female general with the Ohio National Guard, where she has served 32 years. • State Rep. Jim Zehringer, director of Agriculture. A farmer from Mercer County, whom Kasich hopes will help bolster research at Ohio universities.

State Sen. Stephen Buehrer, administrator and CEO of Bureau of Workers’ Compensation. A lawyer from Fulton County, Steve Buehrer once worked at the BWC and been the principal legislator responsible for BWC oversight in recent recents.

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Columbus DISPATCH

Bigger, heavier trucks wrecking our roads, not paying fair share

Saturday, February 26, 2011

The Feb. 15 editorial “Road work ahead” rightly endorses public officials taking a serious look at the conditions and needs of our state’s transportation infrastructure. Deteriorating roads and bridges have been cosmetically addressed by the veneer of fresh asphalt, applied courtesy of the federal stimulus funding, but that makeup won’t last long. Already, the blacktop that looked so smooth last fall has started to show signs of decay. Add these repairs to the long list of needs described in the editorial.

Rutted, congested roads are frustrating and require expensive, frequent repairs. They’re not only hard on our vehicles, they’re dangerous. Why are our roads so rutted? Why do newly paved highways almost immediately begin to crumble? Is it because the highway-construction companies are suddenly not up to the task? I don’t think so. Much of the cause may be invisible to most Ohioans. It’s the bigger and heavier commercial trucks, many of them approaching weights of 100,000 pounds or more. They are wearing out our highway system.

In recent years, Ohio’s government leaders of both parties have supported the increased weight limits for big trucks. Since 1996, Ohio state legislators and governors have increased the load limits for big trucks six times and always with the promise that there will be fewer trucks using the roads. We all know there are not fewer large tractor-trailers on Ohio’s roads. And they are weighing more, doing more and more damage.

One five-axle, 80,000-pound truck does the same amount of damage to the pavement as your car — if you made the same trip 10,000 times. The big semis and overweight trucks make up a fairly small percentage of the total vehicles on the road, but they consume the road faster than the family car because of their extreme weight and the physical forces they impose. These trucks are especially hard on bridges. No number of axles can reduce the enormous stress they impose on bridges, the most

expensive and most at-risk elements of our state’s highway system.

The Ohio Department of Transportation released a study in January 2009 that described the estimated costs of trucks that obtained a special, inexpensive state permit to operate at weights usually in excess of 110,000 pounds. After calculating the damage these vehicles imposed on roads and bridges and then comparing that damage to the total taxes, fees, licensing and registration costs paid by these trucks, ODOT found that Ohioans are subsidizing these overweight trucks to the tune of $45 million every year. ODOT’s study called this a conservative estimate. That is a lot of money — an amount that is almost equal to a penny of state gasoline-tax revenues. It’s a subsidy that Ohioans cannot afford today, given the needs of our highway infrastructure.

The U.S. Department of Transportation reports that trucks weighing more than 100,000 pounds pay for only 40 percent of the damage they cause to our roads. Who is paying the other 60 percent? You and me. This is a massive, unrecognized public subsidy of a handful of trucking companies and shippers. Ohio can’t hope to maintain its highway system as long as the vehicles that are doing the most damage to the roads aren’t at least paying enough to cover that damage.

Trucks in Ohio are getting bigger and growing in number with the support of elected officials. Cars are getting smaller. That’s a dangerous combination, and safety groups have recognized that Ohioans are facing some challenges on our roadways.

One way to assist with this problem, and others already mentioned, is for Ohio’s elected officials to turn back the clock on these big trucks. If not, get used to more bumpy drives and more orange barrels. They’re going to be permanent fixtures.

ARTHUR J. ARNOLD Executive director Ohio Railroad Association

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The Safe and Efficient Transportation Act (SETA, H.R. 763): Modernizing Truck Shipments in Ohio & Across the U.S.

Congress has an opportunity this year to modernize U.S. truck shipments, while making them safer, greener and more competitive with our major trading partners. The Ohio Manufacturers’ Association encourages you to include Safe and Efficient Transportation Act (SETA, H.R. 763) in this year’s Highway Reauthorization proposal. SETA will give Ohio a much-needed opportunity to improve the safety and efficiency of truck shipments. SETA gives each state the option to set interstate weight limits of up to 97,000 pounds, but only for trucks equipped with six axles instead of the typical five. The additional axle maintains braking and weight-per-tire specifications so trucks can safely ship more freight. SETA: Making Truck Weight Regulation Safer, Greener & More Efficient The goal of SETA is to make U.S. truck transportation safer and more sustainable. The U.S. federal weight limit has been set at 80,000 pounds since 1982. Many truck shipments now hit this limit with significant space left in the trailer – forcing shippers to use more trucks and fuel than necessary. The 30-year-old federal weight limit affects several companies with operations in Ohio and across the country. By minimizing the number of trucks, vehicle miles and fuel needed meet demand, SETA will benefit highway safety and the environment, and help U.S. manufacturers become more globally competitive. Empirical evidence and academic studies demonstrate that trucks equipped with six axles can safely transport 97,000 pounds – the new weight limit SETA proposes. Studies by the U.S. DOT and Transportation Research Board have both determined that six-axle trucks traveling at 97,000 pounds do not lose stopping or handling capability, nor do they adversely affect our nation’s roads. In fact, the higher weight limit would cut the number of trucks needed for shipments—saving $2.4 billion in pavement restoration costs over 20 years, according to a U.S. DOT study. By safely increasing the amount of freight each vehicle may carry, companies can dramatically reduce the truckloads, vehicle miles and fuel they need to ship each ton of freight. SETA would also have a direct impact on highway safety. The biggest single factor in the number of truck accidents is vehicle miles traveled. And by minimizing the vehicle miles any one company must travel, the legislation would make highways safer. SETA: Improving Manufacturers’ Global Competitiveness Canada and many European nations already have higher truck weight limits and have experienced what we would like to replicate in the U.S. Since the United Kingdom raised its gross vehicle weight limit to 97,000 pounds for six-axle vehicles in 2001, fatal truck-related

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accident rates have declined by 35 percent. More freight has been shipped, while the vehicle miles traveled to deliver a ton of freight has declined. SETA: Improving Transportation Network – Without Affecting Rail The purpose of SETA is to minimize the number of truck trips needed to ship each ton of freight so we can make our transportation network safer, more environmentally friendly and productive. SETA is not anti-rail. Rail is, and will remain, the first choice for most shippers. SETA will keep America competitive and protect jobs – without affecting railroads. SETA (H.R. 763) is a wise proposal that gives Ohio and other states the option to make truck shipments more efficient and sustainable. It would lead to positive changes for the business community, highway safety, infrastructure and the environment. We hope you will support its enactment. Respectfully submitted, Ryan Augsburger Managing Director of Public Policy Services The Ohio Manufacturers' Association 614-224-5111 raugsburger@ohiomfg.com

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Bill Analysis

Legislative Service Commission

Sub. S.B. 2* 129th General Assembly

(As Reported by S. Government Oversight & Reform)

Sen. Hughes

BILL SUMMARY

Establishment of new business rule review process Overview • Eliminates the existing small business rule review process and establishes a new 

business  rule  review  process  to  determine  whether  administrative  rules proposed by state agencies have an adverse  impact on businesses and,  if so,  to reduce or eliminate that adverse impact (R.C. 121.24‐‐repealed by the bill; Section 3 of the bill). 

• Defines  ʺadverse  impact  on  businesses,ʺ  the  analytical  standard  of  the  new business  rule  review process, as a provision of a draft  rule  that has any of  the following effects: 

‐‐Requires a license, permit, or any other prior authorization to engage in or operate a line of business; 

‐‐Imposes a criminal penalty, a civil penalty, or another sanction, or creates a cause of action, for failure to comply with its terms; or 

‐‐Requires  the  report  of  information  as  a  condition  of  compliance.  (R.C. 107.52.) 

• Defines  a  ʺdraft  ruleʺ  as  any  newly  proposed  rule  and  any  proposed amendment,  adoption,  or  rescission  of  a  rule  that  has  not  yet  been  filed  for legislative review, and includes a proposed amendment, adoption, or rescission 

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of a rule in both its original and any revised form. 

• Specifies that ʺdraft ruleʺ does not include an emergency rule, but specifies that ʺdraft  ruleʺ  does  include  a  nonemergency  rule  that  is  proposed  to  replace  an expiring or expired emergency rule.  (R.C. 107.51 and 121.81(B).) 

• Defines  an  ʺagencyʺ  as  a  state  agency  that  is  required  to  file  draft  rules  for legislative  review,  and  specifies  that  ʺagencyʺ  does  not  include  the  offices  of Governor,  Lieutenant  Governor,  Auditor,  Secretary  of  State,  Treasurer,  or Attorney General (R.C. 121.81(A)). 

Common Sense Initiative Office • Creates  the  Common  Sense  Initiative Office  (CSIO) within  the Office  of  the 

Governor. 

• Requires the Governor to organize, and as it becomes necessary or advisable to reorganize, the office.  The Governor is required to set up the office and have it in operation as soon as practicable after  the effective date of  the bill but not  later than August 15, 2011.  The electronic rule‐filing system also is to be modified to connect the CSIO into the system as soon as practicable after the effective date of the bill but not later than August 15, 2011. 

• Requires the Governor to appoint professional, technical, and clerical personnel who  are  necessary  for  the work  of  the  office  to  be  carried  out  efficiently  and successfully. 

• Specifies that the employees serve at the pleasure of the Governor, and are in the unclassified service. 

• Requires  the  Governor  to  provide  the  office  with  office  space,  and  with furnishings, equipment, and resources, as are necessary for its work to be carried out efficiently and successfully. 

• Authorizes the Governor to delegate any or all of the Governorʹs responsibilities regarding the CSIO, as the Governor deems appropriate. 

• Requires  the  office  to  develop  performance measures  according  to which  its discharge of its duties can be evaluated for efficiency and effectiveness. 

• Requires the office to evaluate its work against the performance measures on a continuing basis, and  to prepare an annual  summary of  the work of  the office evaluated against the performance measures.  (R.C. 107.55 and 107.61; Sections 7 

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and 8 of the bill.) 

Business Impact Analysis Instrument • Requires  the  CSIO  to  develop,  and  as  it  becomes  necessary  or  desirable  to 

improve, a ʺBusiness Impact Analysis Instrument,ʺ the analytical tool of the new business rule review process, that includes: 

‐‐Standards  encouraging  agencies  to  propose  draft  rules  in  such  a manner that the rules will be as easy to understand as their subject matter permits; 

‐‐Performance measures  that can be applied  to evaluate  the  likely efficiency and effectiveness of a draft rule in achieving its regulatory objectives; 

‐‐Standards for evaluating alternative means of regulation that might reduce or  eliminate  the adverse  impact a draft  rule might have on businesses  (see below); 

‐‐Standards  that will promote  transparency, predictability,  consistency,  and flexibility in the implementation and operation of a draft rule; 

‐‐Standards  that will  promote  an  overall  favorable  balance  in  a  draft  rule between  its  regulatory objectives and  the costs of compliance  it  imposes on regulated persons; 

‐‐Standards  that  require  an  agency  to  encourage  businesses  that might  be adversely impacted by a draft rule to participate in the rule‐making process; 

‐‐Standards  that  will  encourage  businesses  that  are  or  may  be  adversely impacted by a draft rule to offer advice and assistance to the agency when the draft rule has been adopted and is being implemented and administered; and

‐‐Any other standards or measures, or any other criteria, that will reduce or eliminate adverse impacts on businesses and foster improved regulation and economic development in the state. 

• Specifies that alternative means of regulation include, and are not limited to, less stringent  compliance  or  reporting  requirements,  less  stringent  schedules  or deadlines,  consolidation  or  simplification  of  requirements,  establishment  of performance  standards  to  replace  operational  standards,  and  exemption  of businesses. 

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• Specifies that the instrument does not need to be adopted as a rule. 

• Requires the current instrument to be published in the Register of Ohio.  The first edition  of  the  instrument  is  to  be  so  published  as  soon  as  possible  after  the effective date of the bill but not later than October 3, 2011.  (R.C. 107.53; Section 6 of the bill.) 

Evaluation of draft rules for adverse impacts on businesses • Requires, in the course of developing a draft rule that an agency intends to file 

for legislative review, all of the following steps to be completed before the draft rule is so filed: 

‐‐(1)  The  agency  is  to  evaluate  the  draft  rule  against  the  Business  Impact Analysis Instrument.  If, based on that evaluation, the draft rule will not have an adverse impact on businesses, the agency may proceed with the rule‐filing process. 

‐‐(2)  If  the  evaluation  determines  that  the  draft  rule will  have  an  adverse impact on businesses, the agency must incorporate features into the draft rule that will  eliminate  or  adequately  reduce  any  adverse  impact  the draft  rule might have on businesses. 

‐‐(3)  The agency is to prepare a ʺBusiness Impact Analysisʺ that describes the evaluation,  identifies any  features  that were  incorporated  into  the draft rule as  a  result  of  the  evaluation,  and  explains  how  those  features  (if  any) eliminate or adequately  reduce any adverse  impact on businesses  the draft rule might have. 

‐‐(4)  The  agency  is  to  transmit  a  copy  of  the  draft  rule  and  the  Business Impact Analysis electronically to the CSIO, which information must be made available on the CSIOʹs web site. 

--(5)  Requires  the CSIO, when  it  receives  a draft  rule  and Business  Impact Analysis  from an agency,  to evaluate  the draft rule and analysis against  the Business Impact Analysis Instrument and any other relevant criteria. 

‐‐(6)  Permits  the  CSIO  to  prepare  and  transmit  recommendations  to  the agency  on  how  the draft  rule might  be  revised  to  eliminate  or  reduce  any adverse impact on businesses and requires any such recommendations to be transmitted electronically to the agency.  (R.C. 107.54.) 

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‐‐(7)  The agency is to consider any recommendations made by the CSIO with regard to the draft rule, and either incorporate features the recommendations suggest  will  eliminate  or  reduce  the  adverse  impact  on  businesses  or document,  in  writing,  the  reasons  those  recommendations  are  not  being incorporated. 

‐‐(8)  The  agency  is  to  prepare  a  memorandum  of  response  identifying features  suggested  by  the  CSIO  recommendations  that  were  or  were  not incorporated in the draft rule and explaining why the features that were not incorporated into the draft were not so incorporated.  (R.C. 121.82.) 

• Prohibits  an  agency  from  filing  a proposed  rule  for  legislative  review  earlier than  the  16th  business  day  after  transmitting  the  proposed  rule  and  Business Impact Analysis to the CSIO (R.C. 121.82). 

• Requires an agency, when it files a proposed rule for legislative review, also to file a copy of the Business Impact Analysis, any recommendations received from the CSIO,  and  the  agencyʹs memorandum  of  response,  if  any  (R.C.  111.15(D), 119.03(H), and 121.83(A)). 

• Requires  the  Joint  Committee  on  Agency  Rule  Review  (JCARR)  to  reject  a proposed  rule  if  it  is  not  accompanied  by  a  Business  Impact  Analysis  or  is accompanied  by  an  inadequately  prepared  Business  Impact  Analysis  (R.C. 121.83(B)). 

• Specifies  that  JCARRʹs  rejection  of  a  rule does  not preclude  the  agency  from refiling the rule after complying with the new business rule review process. 

• Authorizes  JCARR  to recommend  legislative  invalidation of a proposed rule  if the agency has not demonstrated,  through  the Business  Impact Analysis, CSIO recommendations, and Memorandum of Response, that the regulatory  intent of the proposed rule justifies its adverse impact on businesses (R.C. 119.03(I)(1)(f)). 

• Requires  rules  subject  to  existing  lawʹs  five‐year  rule  review  process  to  be evaluated  for  their  adverse  impact  on  businesses,  and  authorizes  JCARR  to invalidate  those rules  if  the adverse  impact  is not reduced or eliminated,  in  the same manner as for new rules (R.C. 119.032). 

Public comment on rules • Requires the CSIO to create a system through which any person can comment to 

the CSIO about (1) the adverse impact on businesses a draft rule might have, (2) 

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the adverse  impact on businesses a  rule currently  in effect  is having, or  (3)  the adverse  impact  on  businesses  the  implementation  or  administration  of  a  rule currently in effect is having. 

• Requires  the CSIO  to prepare a plan  for  the comment system, and  to revise or replace the plan to improve the comment system in light of learning, experience, or technological development. 

• Requires  the plan, at a minimum,  to provide  for accepting comments  that are delivered  to  the CSIO, and  to provide  for establishing  telephonic and  Internet‐based means whereby comments can be made, and also requires the CSIOʹs web site also to provide notification to the public of any draft rule that may have an adverse impact on businesses and to include copies of the rule and the Business Impact Analysis. 

• Requires the CSIO to forward comments to the state agency having jurisdiction over  the rule, and specifies  that  the CSIO has no other duty with regard  to  the comments.  (R.C. 108.22.) 

Transition to new business rule review process • Provides  for  transition  to  the new business  rule  review process  (Sections 5, 6, 

and 7 of the bill). 

• Specifies  that  the existing small business rule review process  is superseded by the new business rule review process on January 1, 2012. 

• Specifies  that  the new business rule review process applies  to  the original and any revised version of a proposed rule that is filed on or after January 1, 2012. 

• Specifies  that  the  existing  small  business  rule  review  process  applies  to  the original version of a proposed rule that  is filed before January 1, 2012, and that the  new  business  rule  review  process  applies  to  any  revised  version  of  the proposed rule that is filed on or after that date. 

• Makes conforming amendments to adjust or remove statutory  language that  is affected  by  the  repeal  of  the  existing  small  business  rule  review  process (R.C. 103.0511, 111.15(D),  (E), and  (F), 117.20(A)(2), 119.03(B),  (H), and  (I)(1)(d), 121.39(D)(4), 122.08, 122.081, 122.94(B), and 1710.02(B); Section 4 of the bill). 

• Requires, not later than 180 days after the JobsOhio bill (H.B. 1) takes effect, the Governor,  in  consultation  with  the  Director  of  Development,  to  determine 

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whether  the  Office  of  Small  Business  should  be  transferred  to  the  CSIO  or alternatively  the  best  way  to  avoid  duplication  of  services  by  those  offices (Section 9). 

Small Business Advisory Council • Establishes  the  Small  Business Advisory Council  in  the Governorʹs Office  to 

advice the Governor, Lieutenant Governor, and the CSIO on the adverse impact proposed rules might have on small businesses. 

• Specifies that the Council consists of nine members, five of whom are appointed by the Governor, two of whom are appointed by the President of the Senate, and two of whom are appointed by the Speaker of the House of Representatives. 

• Requires the appointing authorities to consult with one another to appoint only individuals who are  representatives of small businesses,  in such a manner  that the  Council  is  composed  of  representatives  of  small  businesses  that  are  of different  sizes,  engaged  in  different  lines  of  business,  and  located  in  different parts of the state. 

• Requires the Council to meet at least quarterly. 

• Defines a  ʺsmall businessʺ as an  independently owned and operated business entity,  including affiliates, that has fewer than 500 full‐time employees or gross annual sales of less than $6 million, and that has operations in Ohio (R.C. 107.63).

Customer service performance standards for state agencies • Requires each state agency to develop customer service performance standards 

for  each  employee  of  the  agency whose  duties  include  a  significant  level  of contact with the public. 

• Specifies  that  the  standards  must  be  based  on  the  job  descriptions  of  the positions employees hold in the agency. 

• Specifies that the standards do not need to be adopted by rule.  But requires the standards to be reduced to writing, and requires the standards to be incorporated into  employee  policy  manuals, job  descriptions,  and  employee  performance 

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evaluations. 

• Requires  a  state  agency,  and  its  officers  and  employees,  to  comply with  the customer service performance standards. 

• Provides for evaluation of a state agencyʹs compliance with the standards by the Director  of  Budget  and Management  and  the  committees  of  the  Senate  and House of Representatives having jurisdiction over the state operating budget, as part of the consideration of the state agencyʹs biennial budget. 

• Specifies  that  if  the  evaluation  is  of  the Office  of  Budget  and Management, evaluation by the legislative committees is sufficient. 

• Requires an employeeʹs compliance with the standards to be evaluated as part of the employeeʹs periodic performance reviews. 

• Adds that a state agencyʹs and employeesʹ compliance with the standards may be evaluated as part of any performance audit of the state agency.  (R.C. 121.91.) 

HISTORY

ACTION DATE Introduced 02-01-11 Reported, S. Government Oversight & Reform –-

  S0002‐RS‐129.docx/jc 

* This  analysis was  prepared  before  the  report  of  the  Senate Government Oversight  and  Reform Committee  appeared  in  the  Senate  Journal.  Note  that  the  list  of  co‐sponsors  and  the  legislative history may be incomplete. 

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As Introduced

129th General Assembly Regular Session

2011-2012

H. B. No. 112

Representatives Grossman, Letson Cosponsors: Representatives Murray, Stinziano, Beck, Garland, Ruhl,

Fedor, Antonio, Carey, Combs, Newbold, Stebelton, Fende

A BILL

To enact section 2927.28 of the Revised Code to 1 require the inclusion of a bittering agent in 2 engine coolant and antifreeze. 3

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 2927.28 of the Revised Code be 4enacted to read as follows: 5

Sec. 2927.28. (A) Except as provided in division (E) of this 6section, engine coolant or antifreeze that is manufactured after 7January 1, 2012, and subsequently sold in this state that contains 8more than ten per cent ethylene glycol shall include a bittering 9agent to render the engine coolant or antifreeze unpalatable. The 10bittering agent shall consist of denatonium benzoate in a 11concentration of not less than thirty parts per million and not 12more than fifty parts per million. 13

This section applies to manufacturers, packagers, processors, 14distributors, recyclers, and sellers of engine coolant or 15antifreeze. 16

(B) A manufacturer or packager of engine coolant or 17antifreeze that is subject to division (A) of this section shall 18

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maintain a record of the trade name, scientific name, and active 19ingredients of the bittering agent included in the engine coolant 20or antifreeze and, upon request, shall furnish a member of the 21public with the information contained in the record. 22

(C)(1) No manufacturer, packager, processor, distributor, 23recycler, or seller of engine coolant or antifreeze shall fail to 24comply with division (A) of this section by offering or 25distributing for sale in this state engine coolant or antifreeze 26that does not include denatonium benzoate as required by this 27section. 28

(2) No manufacturer or packager shall fail to comply with 29division (B) of this section. 30

(D) A manufacturer, packager, processor, distributor, 31recycler, or seller that is subject to division (A) of this 32section is not liable for any personal injury, death, damage to 33property or the environment, including natural resources, or 34economic loss that results from the inclusion of denatonium 35benzoate in engine coolant or antifreeze in the concentration 36required by this section. This immunity does not apply if the 37cause of liability is unrelated to the inclusion of denatonium 38benzoate in any engine coolant or antifreeze. 39

(E) This section does not apply to either of the following: 40

(1) The sale of a motor vehicle that contains engine coolant 41or antifreeze; 42

(2) A wholesale container of engine coolant or antifreeze 43containing fifty-five or more gallons of antifreeze. 44

(F) Whoever violates this section is guilty of a misdemeanor 45and shall be fined not more than one thousand dollars. 46

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Bricker & Eckler A T T O R N E Y S A T L A W

OMA Government Affairs Committee March 2, 2011 Page 1 of 4

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MEMORANDUM To: OMA Government Affairs Committee From: Miranda C. Motter Date: March 2, 2011 Re: New Independent Expenditure Campaign Finance Rule This memorandum provides a very brief overview of a new campaign finance rule that describes the process by which corporations or labor organizations can use their funds or property to advocate the election or defeat of an identified candidate or candidates. Ohio Administrative Code 111-3-05 implements new disclaimer and disclosure requirements, and prohibits certain corporations from using corporate funds to advocate the election or defeat of identified candidates. The new rule, which was proposed by former Democratic Secretary of State Brunner, became effective on January 7, 2011. Unless otherwise noted, OAC 111-3-05 applies to corporations, both for profit and not-for profit, and labor organizations. It is important to note that there are a number of ambiguities in the rule, and as a result, there are efforts underway to attempt to clarify, and perhaps amend OAC 111-3-05. Below is a brief summary of OAC 111-3-05. I. Independent Expenditures -- Permissible Use of Corporate Funds. The new rule makes it clear that corporations and labor organizations may use their funds or property to advocate the election or defeat of an identified candidate or candidates, as long as the use is not made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate, campaign committee, legislative campaign fund, or political party. II. Disclaimer Requirements.

A. Independent Expenditure Disclaimer. Corporations and labor organizations must include an “independent expenditure disclaimer” when they use their funds or property to finance communications that advocate the election or defeat of an identified candidate or

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candidates. In a clear and conspicuous manner, the political communication must: (1) clearly indicate that the communication or public political advertising is not authorized by the candidate or candidates, and (2) clearly identify the corporation or labor organization that paid for the communication. The delivery method a corporation or labor organization uses to communicate its message will dictate the type of information that the corporation or labor organization must use to identify itself. 1. Public Political Advertising. When a corporation or labor organization issues a political publication or when they use their funds or property to finance political communications through public political advertising, the advertising must include the name and address (residence or business) of the chairperson, the chief executive officer, treasurer, or secretary of the corporation or labor organization and the internet address of the corporation or labor organization. The term “public political advertising,” is a defined term under Ohio Revised Code Section 3517.20 and refers to advertising that is made to the “general public.” 2. Radio and Television Communications. When a corporation or labor organizations broadcasts – over radio or television – any communication that is designed to advocate the election or defeat of an identified candidate or candidates, the speaker must identify the speaker with the speakers’ name and residence address or identify the chairperson, chief executive officer, treasurer, or secretary of the corporation or labor organization responsible for the communication with the name and address (residence or business) of that particular officer and internet address of the corporation or labor organization.1 3. Telephone Banks. If a corporation or labor organization conducts a telephone bank2 that is designed to advocate the election or defeat of an identified candidate or candidates, the call must include a disclaimer that identifies the name of the corporation or labor organization, the name of the chairperson, chief executive officer, treasurer or secretary of the corporation or labor organization paying for the bank. III. Reporting Requirements. Corporations and labor organizations that use their funds or property to advocate the election or defeat of an identified candidate or candidates must report the use of those funds or

1 Radio advertisements do not need to include the address (residence or business) of the officer, but radio stations must keep the officer’s address on file for a period of six months and disclose the information to any person upon request. See OAC 111-3-05(E). 2 Telephone bank means more than five hundred telephone calls of an identical or substantially similar nature within any thirty-day period, whether those telephone calls are made by individual callers or by recording. See ORC § 3517.20(A).

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property to either the Ohio Secretary of State or the county board of elections. The report must be filed no later than 4:00 p.m. on the fifth day after the use of the property or funds, and include the following: (1) The name of the candidate; (2) The office sought by the candidate; (3) Whether the funds or property were used to advocate the nomination, election, or defeat of the candidate; (4) The full name and address of the individual or entity to whom funds or property were paid or given to advocate the election or defeat of an identified candidate or candidates; (5) The amount of funds paid or given to advocate the election or defeat of an identified candidate or candidates; and (6) The date the funds or property were paid or given to advocate the election or defeat of an identified candidate or candidates. IV. Prohibitions.

A. Twenty-Percent Ownership Ban. Corporations owned twenty percent or more by persons or entities whose domicile, in the case of a corporation, or citizenship in the case of an individual, unincorporated association or entity, is outside the U.S. are prohibited from using their funds or property to advocate the election or defeat of an identified candidate or candidates.

B. State/Federal Funds Ban. Corporations that receive state or federal funds that are

issued by Ohio are prohibited from using their funds or property to advocate the election or defeat of an identified candidate or candidates – beginning on the date the state funds or federal funds issued by Ohio are awarded and extending for one year following the award of those funds. “State funds” are defined as any payment or other thing of value received from any agency and department of Ohio. “Federal funds issued by the State of Ohio” are defined as any payment or other thing of value received from any agency or department of the government of the U.S. at the direction of any agency or department of Ohio. V, Conclusion This memorandum provides a very brief overview of a new campaign finance rule that describes the process by which corporations or labor organizations can use their funds or property to advocate the election or defeat of an identified candidate or candidates. Please do not hesitate to call if you have questions regarding whether specific corporate activities fall under the

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purview of the new rule’s disclaimer and disclosure requirements. I can be reached at 614-227-4810.

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111-3-05 Use of the funds or property of a corporation, nonprofit corporation, or labor organization to advocate the election or defeat of a candidate.

(A) Notwithstanding the provisions of section 3599.03 of the Revised Code, a corporation, a nonprofit corporation, or a labor organization may use its funds or property to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election, provided that the use of funds or property is not made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate or candidates, the campaign committee or agent of the candidate or candidates, or any legislative campaign fund or political party or agent of a legislative campaign fund or political party.

(1) “Identified candidate” means that the name of the candidate appears, a photograph or drawing of the candidate appears, or the identity of the candidate is otherwise apparent by unambiguous reference in the communication advocating the election or defeat of an identified candidate or candidates to be nominated or elected at any election.

(2) “Made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate or candidates, the campaign committee or agent of the candidate or candidates, or any legislative campaign fund or political party or agent of a legislative campaign fund or political party” means made pursuant to any arrangement, coordination, or direction by the candidate, the candidate’s campaign committee, a legislative campaign fund or a political party, or agent of a candidate, candidate’s campaign committee, legislative campaign fund, or political party prior to the publication, distribution, display, or broadcast of the communication. The use of funds or property is presumed to be so made when it is any of the following:

(a) Based on information about the candidate’s plans, projects, or needs provided to the person making the expenditure by the candidate, by the candidate’s campaign committee, a legislative campaign fund, or a political party, or an agent of the candidate, campaign committee, legislative campaign fund, or political party with a view toward having an expenditure made;

(b) Made by or through any person who is, or has been, authorized to raise or expend funds, who is, or has been, an officer of the candidate’s campaign committee, a legislative campaign fund, or a political party or who is, or has been, receiving any form of compensation or reimbursement from the candidate or the candidate’s campaign committee, a legislative campaign fund or a political party or any of their agents;

(c) “Agent” means any person who has actual oral or written authority, either express or implied, to make or to authorize the making of expenditures on behalf of a candidate, candidate’s campaign committee, legislative campaign fund, or political party or means any person who has been placed in a position with the candidate’s campaign committee or organization, or a legislative campaign fund or political party such that it would reasonably appear that in the ordinary course of campaign-related activities the person may authorize expenditures.

(B) Whenever a corporation, nonprofit corporation, or labor organization uses its funds or property for the purpose of financing communications to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election, a

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statement shall appear or be presented in a clear and conspicuous manner in the advertising that does both of the following:

(1) Clearly indicates that the communication or public political advertising is not authorized by the candidate or candidates;

(2) Clearly identifies the corporation, nonprofit corporation, or labor organization that has paid for the communication or public political advertising in accordance with paragraphs (D) to (F) of this rule.

(C) Whenever any corporation, nonprofit corporation, or labor organization uses its funds or property to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election, the corporation, nonprofit corporation, or labor organization shall report this use of funds or property on a form prescribed by the secretary of state. Reports of the use of funds or property to advocate the election or defeat of a statewide candidate, as defined in section 3517.10 of the Revised Code, shall be filed with the secretary of state. Reports of the use of funds or property to advocate the election or defeat of a candidate for county office, as defined in section 3517.10 of the Revised Code, shall be filed with the board of elections of the county in which the individual is a candidate. The report shall be made not later than four p.m. on the fifth day after the use of the funds or property. The report shall include the following information:

(1) The name of the candidate whose nomination, election, or defeat was advocated;

(2) The office sought by the candidate whose nomination, election, or defeat was advocated;

(3) Whether the funds or property were used to advocate the nomination, election, or defeat of the candidate;

(4) The full name and address of each individual or entity to whom funds or property were paid or given to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election;

(5) The amount of funds or property to paid or given to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election;

(6) The date that funds or property were paid or given to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election.

(D) No corporation, nonprofit corporation, or labor organization shall issue a form of political publication that is designed to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election, or shall use its funds or property for the purpose of financing political communications that are designed to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election through public political advertising, unless the name and residence or business address of the chairperson, chief executive officer, treasurer, or secretary of the corporation, nonprofit corporation, or labor organization and internet address of the website, if any, of the corporation, nonprofit corporation, or labor organization appears in a conspicuous place on that political publication or is contained within that political communication.

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(E) No corporation, nonprofit corporation, or labor organization shall utter or cause to be uttered, over the broadcasting facilities of any radio or television station within this state, any communication that is designed to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election, unless the speaker identifies the speaker with the speaker’s name and residence address or unless the communication identifies the chairperson, chief executive officer, treasurer, or secretary of the corporation, nonprofit corporation, or labor organization responsible for the communication with the name and residence or business address of that officer and internet address of the website, if any, of the corporation, nonprofit corporation, or labor organization, except that communications by radio need not broadcast the residence or business address of the officer. However, a radio station, for a period of at least six months, shall keep the residence or business address on file and divulge it to any person upon request. No person operating a broadcast station or a print media outlet shall broadcast or print a paid political communication that does not contain the identification required by this paragraph. This paragraph does not apply to any communications made on behalf of a radio or television station or network by any employee of such radio or television station or network while acting in the course of the employee’s employment.

(F) No corporation, nonprofit corporation, or labor organization shall conduct a telephone bank, as defined in division (A) of section 3517.20 of the Revised Code, that is designed to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election, unless the call includes a disclaimer that identifies the name of the corporation, nonprofit corporation, or labor organization, and the name of the chairperson, chief executive officer, treasurer, or secretary of the corporation, nonprofit corporation, or labor organization paying for the telephone bank.

(G) Notwithstanding paragraph (A) of this rule, no corporation or nonprofit corporation owned twenty percent or more by persons or entities whose domicile, in the case of a corporation or nonprofit corporation, or citizenship, in the case of an individual or unincorporated association or entity, is outside the United States of America may use its funds or property to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election.

(H) Notwithstanding paragraph (A) of this rule, beginning on the date that state funds or federal funds issued by the state of Ohio are awarded and extending until one year following the award of those funds, no corporation or nonprofit corporation that receives state or federal funds may use its funds or property to advocate the election or defeat of an identified candidate or candidates to be nominated or elected at any election.

(1) For purposes of this paragraph, “state funds” means any payment or other thing of value received from any agency or department of this state.

(2) For purposes of this paragraph, “federal funds issued by the State of Ohio” means any payment or other thing of value received from any agency or department of the government of the United States at the direction of any agency or department of this state.

Effective: 01/07/2011

R.C. 119.032 review dates: 07/15/2015

Promulgated Under: 119.03

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Statutory Authority: 3517.23

Rule Amplifies: 3599.03

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Ohio Campaign Contribution LimitsEffective 25 FEB 2011 through 24 FEB 2013

From

To - INDIVIDUAL

(Must be 7 years of

age or older)

PACs

PCEs

COUNTY

PARTY

State Candidate Fund

COUNTY

PARTY

Other Account 8

STATE

PARTY

State Candidate Fund

LEGISLATIVE

CAMPAIGN

FUND

CAMPAIGN

COMMITTEE(includes local)

STATEWIDE $11,543.70 $11,543.70 $288,592.56 12

$2,848.89 9

$651,064.81 7 PROHIBITED $11,543.70

SENATE $11,543.70 $11,543.70

$11,543.70 1

$129,866.65 2

$2,848.89 9

$129,866.65 7

$64,644.73 6

$129,866.65 6

$11,543.70

HOUSE $11,543.70 $11,543.70

$11,543.70 1

$64,644.73 2

$2,848.89 9

$64,644.73 7

$33,484.31 6

$64,644.73 6

$11,543.70

STATE

PARTY

State Candidate Fund

$34,631.11 3

$34,631.11 3 No Limit PROHIBITED No Limit No Limit $34,631.11

5

LEGISLATIVE

CAMPAIGN

FUND$17,315.55

3$17,315.55

3 No Limit PROHIBITED No Limit PROHIBITED $17,315.55 5

This chart is intended to be a general guide and does not include every statutory provision relating to contribution limits.

Per Election Period

unless otherwise footnoted

14 JAN 2011 Please consult section 3517.102 of the Ohio Revised Code. JCM

COUNTY

PARTY

State Candidate Fund

$11,543.70 10 PROHIBITED PROHIBITED PROHIBITED No Limit No Limit $11,543.70

4

PACs

PCEs$11,543.70

3$11,543.70

13$11,543.70

11$11,543.70

11$11,543.70

11 PROHIBITED $11,543.70 3

1. These limits apply to contributions given to a campaign committee which is not a 'designated state campaign committee'.

2. These limits apply to cash or cash equivalents, not in-kind. The campaign committee of a House or a Senate candidate which is a 'designated state campaign

committee' may accept, in aggregate, from any one or a combination of state candidate funds of county political parties $57,718.51 and $115,477.54, respectively, in

an election period.

3. These limits are per calendar year.

4. This limit is per calendar year and may only be made if the campaign committee's candidate will appear on a ballot in that county or is an officeholder representing

any part of that county.

5. These limits are per calendar year and do not apply to contributions given by a 'designated state campaign committee'.

6. These limits apply to cash or cash equivalents, not in-kind. The smaller limit is for the Primary election period and the larger limit is for the General election period.

7. These limits apply to cash or cash equivalents, not in-kind.

8. These limits apply to political parties in counties having a population of less than 150,000 which do not establish a State Candidate Fund. 'Other Account' does

not include an account that contains moneys received from the Ohio Political Party Fund (Restricted Fund).

9. Recipients of county party non-State Candidate Fund contributions must be campaign committees for statewide candidates or a 'designated state campaign

committee'.

10. This limit is per calendar year. Contributions to a County Party SCF are restricted to individuals residing in the county or 'designated state campaign committees'

of the County Party SCF.

11. These limits are per calendar year and apply to the aggregate of contributions given by the National, State and County level of a political party.

12. A campaign committee for a statewide candidate may accept not more than this amount, in aggregate, from any one or a combination of state candidate funds of

county political parties in an election period.

13. This limit is per calendar year and does not apply to contributions made to or received by one or more PACs that are affiliated.

Per Election Period

unless otherwise footnoted

14 JAN 2011 Please consult section 3517.102 of the Ohio Revised Code. JCM

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Civil Justice Report Highlights

1. False Claims Act – Attorney General is building inertia for expansion of state law to create new forms of lawsuits. OACJ will probably want to quell. Many R lawmakers supportive. Dispatch editorial this last week. I have asked Miranda to set meetings for OACJ Officers with DeWine and with Senate Counsel John Barron

2. SB 52 Civil Procedure (Kearney) has had 2 hearings. OACJ opposed last session due to bad amendments. Summary from Miranda requested. We need to pursue options to slow or defeat.

Details

Attorney General Appears to Favor Adoption of False Claims Act On February 1, 2011, the State of Ohio reached a settlement with a Dayton-based managed care organization (MCO), Care Source. The company provides contract Medicaid management for the state of Ohio. The U.S. Government and two former employees of the MCO also were parties to the suit and will split a $26 million settlement. The lawsuit alleged that CareSource falsely billed the state (and federal government) for medical services that were not delivered. CareSource denies the wrongdoing and settled to make the case end. The lawsuit was initiated in federal court by two former employees of the company who utilized the provisions of the false claims act that allows private individuals with knowledge of fraud to file suit on behalf of the United States and share in recovery. Of concern were other comments the Attorney General made that seem to favor Ohio enacting some form of its own false claims act. Twenty seven other states are believed to have state-level false claims acts. Ohio lawmakers have considered but never enacted such a provision (Senate Bill 39 and House Bill 355). Business leaders familiar with the principle have generally opposed the enactment of state-level false claims act. "False claims may well become the next ATM for the plaintiff's bar," said Ryan Augsburger with the Ohio Manufacturers’ Association who also chairs the Ohio Alliance for Civil Justice. For additional information, please contact Ryan Augsburger of the Ohio Manufacturers Association at raugsburger@ohiomfg.com.

Editorial: Friday, February 25, 2011 02:48 AM

The Columbus Dispatch

OHIO LAWMAKERS should heed the advice of Attorney General Mike DeWine and enact a strong false-claims act.

At least 27 states have such a provision, which encourages whistleblowers to report waste and fraud; that's always a good thing, and so is extra cash.

A false-claims act also would allow Ohio to collect a bigger share of federal settlements with companies that do business here. This cropped up again with a recent federal settlement with CareSource, a Dayton-based managed-care company that serves Medicaid recipients.

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It agreed to pay $26 million in a federal whistle-blower lawsuit, which claimed the company submitted claims for care not provided. Ohio got $10 million of the settlement, but would have picked up another 10 percent if it had a false-claims act in place.

A recent change in the federal law gives a larger cut to states with laws similar to the Federal False Claims Act.

Buckeye state lawmakers have stumbled on previous efforts to rectify the lapse. The federal act, however, dates to the Civil War when suppliers were spiking Union gunpowder with sawdust. So Ohio has had enough time to think it over.

AT A time when money is tight, Ohio University has done an exceptional job of finding ways to fund additional research and hire faculty members.

The university stands to gain at least $27 million by selling royalty rights for a drug invented by researchers there, it announced this month.

Making money off inventions or discoveries isn't new for OU - it gained $41 million from one sale last year. But this time the royalties won't dribble in year after year; the university will get a lump sum.

And that money will grow more money. OU plans to invest the royalties to accelerate other research in new technologies such as alternative energy and pharmaceutical products, allowing them to more quickly bring this research to the marketplace.

All together, the deal announced last week is worth at least $39 million; but the two inventers of Somavert, a drug approved in 2003 to treat a form of gigantism, will collect about a third of the money.

OU is not only showing smarts in finding ways to support and grow its research, it is demonstrating the value of university research in improving and saving lives.

SB 52 – Civil Procedure (Eric Kearney-D) was referred to the Senate Committee on Judiciary and Civil Justice on February 2, 2011. The bill is a request to the Supreme Court to amend Rule 68 of the Ohio Rules of Civil Procedure regarding offers of judgment. The bill proposes that a defendant may make an offer to allow judgment on specified terms more than ten days before the trial begins. If, within 10 days after being served, the opposing party serves written notice accepting the offer, then either party may file the offer and acceptance with the court. An unaccepted offer is considered withdrawn, but it does not preclude a later offer, and is not admissible except in a proceeding to determine costs. If there is an unaccepted offer, and the judgment that the offeree finally obtains is not more favorable than the unaccepted offer, the offeree must pay the costs incurred after the offer was made.

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Status February 25 -- Last week Sen. Eric Kearney (D-Cincinnati) offered sponsor testimony in Senate Judiciary-Civil Law Committee on SB 52, which is legislation that requests the Supreme Court to amend Rule 68 of the Ohio Rules of Civil Procedure regarding offers of judgment. Kearney told the committee “this bill is an outgrowth of my law practice and experience as an attorney. Federal Rule of Civil Procedure 68 provides a valuable tool for the attorney to settle cases. I noticed it was prudently used in Federal cases, but unavailable in state cases. This bill is modeled after Fed. R, Civ. Pro. 68.” SB 52 as introduced is the same language from last General Assembly’s SB 36 as reported by Senate Judiciary-Civil Law Committee. SB 36 as introduced was taken directly from federal Rules of Civil Procedures, but before the bill was reported the committee accepted an amendment that took the measure beyond the Federal Rule. The amendment said “if a demand is made to settle the case more than ten days before the trial, the demand is not accepted by the defending party, and the verdict is as favorable or more favorable than the demand, then the defending party shall pay the costs incurred after the demand was made under the same terms and requirements that are applicable to a party making an offer of judgment." As a result of this amendment, many business groups withdrew their support and became opposed to the SB 36. The bill died in the Senate Rules Committee. SB 52 is scheduled for a 2nd hearing this week on Wednesday at 3:30 pm. They will be hearing all testimony.

2011 Action Plan Core Ongoing Functions:

• Case Monitoring Activities by Counsel • Amicus Briefing Activity by Counsel • Legislative Support Activity • Grassroots Campaign Activity (focus to be defined in communications

plan) • Member Communications • Member Meetings – hold at least one annual meeting • Provide Spokespersons on Civil Justice Issues

2011 Priorities Agenda (OFFENSE)

1. Defense in Courts (court monitoring / amicus activity) 2. Advance contingency fee lawyer contracting disclosures in accordance

with ALEC model legislation. Known as PARSA / TIPAC

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3. Coalition lit piece / legislative briefings / awards program for champions & leaders

4. Advance legislation to limit business contracts statute of limitation to 6-year (down from 15 years).

2011 Stand-By Agenda (DEFENSE)

1. Be prepared to help defend against cy pres if re-emerges 2. Be prepared to held defend against collateral source if re-emerge

2011 Monitoring Agenda Monitor reforms advanced by volunteer leaders.

1. Advance legislative proposal to institute a right to cure under CSPA 2. Promote legislation on implied right of action SB 309 (Seitz) from 127th

G.A. to prospectively create a private right of action to contain express language providing for that right.

3. Promote employment law / discrimination reforms 4. Promote legislation (reintroduction of SB 86) to grant civil immunity to

specified emergency medical practitioner who provides first-aid treatment 5. Promote “Loss of Chance” legislative repose to a court ruling to expand

the loss of chance doctrine 6. Promote legislation to clarify Intentional Tort (only if Cuyahoga Court ruling

is upheld) 7. Promote 6-month statute of limitations on single subject issue (more of a

statutory construction issue but important to all legislative subjects) 8. HB 367 (Blessing) Enacted 127th G.A. 3rd party financing of litigation

“lawsuit lending” 9. Trespasser Responsibility Act 10. Insurance Subrogation 11. Clarify and improve standard of evidence for expert testimony in Ohio civil

cases in accordance with best of daubert standards. 12. Enactment of federal rule 10 with regard to who pays attorney’s fees (as

intro’s SB 36 128th G.A.)

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Bill Analysis

Legislative Service Commission

Sub S.B. 5 (LSC 129 0241-5)

129th General Assembly (As Pending in S. Insurance, Commerce, and Labor)

BILL SUMMARY

The Public Employee Collective Bargaining Law 

State employees and employees of state institutions of higher education

• Abolishes  the collective bargaining  rights of employees of  the  state, of any agency,  authority,  commission,  or  board  of  the  state,  and  of  any  state institution of higher education. 

• Prohibits  the  state,  agencies,  authorities,  commissions,  and  boards  of  the state, and a state institution of higher education from collectively bargaining with its employees. 

• Abolishes the Office of Collective Bargaining. 

Police and fire department supervisors 

• Removes  a  limitation  on  the  definition  of  ʺsupervisorʺ  with  respect  to members  of  police  and  fire  departments,  potentially making more  people supervisors and ineligible to collectively bargain. 

Contract employees and employees of regional councils of government 

• Excludes persons working pursuant to a contract between a public employer and private employer and over whom the National Labor Relations Board has declined jurisdiction from those persons eligible for collective bargaining. 

• Excludes employees of a regional council of government from those persons eligible for collective bargaining. 

Rights of public employees 

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• Removes  continuation,  modification,  or  deletion  of  an  existing  collective bargaining agreement from the subject of collective bargaining. 

• Removes a provision granting specific authority to public school employees to collectively bargain for health care benefits.   

• Authorizes public  employees  to  refuse  any  representation  by  an  exclusive representative or an employee organization. 

Open shops 

• Makes  any  agreement  that  purports  to  require  that  employees  join  any exclusive representation void and unenforceable. 

Subjects for collective bargaining 

• Makes  the  following  inappropriate  subjects  for  collective  bargaining:  (1) employer‐paid  contributions  to  any  of  the  five public  employee  retirement systems and (2) health care benefits for which the employer is required to pay more than 80% of the cost. 

• Permits  public  employers  to  not  bargain  on  any  subject  reserved  to  the management  and  direction  of  the  governmental  unit,  even  if  the  subject affects wages, hours, and terms and conditions of employment. 

Collective bargaining agreement provisions and approval 

• Prohibits  a  collective  bargaining  agreement  from  prohibiting  a  public employer that is in a state of fiscal emergency from serving a written notice to terminate, modify, or negotiate the agreement. 

• Prohibits  a  public  employer  from  agreeing  to  a  provision  in  a  collective bargaining agreement that requires the public employer, when a reduction in force is necessary, to use employee length of service as the only factor when making layoffs. 

• Prohibits  a  public  employer  from  agreeing  to  a  provision  in  a  collective bargaining agreement that requires the employer to pay more than 80% of the cost paid for benefits. 

Conflicting provisions of agreements 

• Makes  laws  pertaining  to  the  provision  of  health  care  benefits  to  public 

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employees prevail over conflicting collective bargaining agreements. 

School districts, educational service centers, community schools, and STEM schools 

• Prohibits  a  public  employer  that  is  a  school  district,  educational  service center,  community  school,  or  STEM  school  from  entering  into  a  collective bargaining  agreement  that  does  specified  things,  such  as  establishing  a maximum  number  of  students  who  may  be  assigned  to  a  classroom  or teacher. 

• Requires  collective  bargaining  agreements  between  such  an  education‐related public employer and public employees to comply with all applicable state  or  local  laws  or  ordinances  regarding wages,  hours,  and  terms  and conditions  of  employment,  unless  the  conflicting  provision  establishes benefits that are less than provided in the law or ordinance. 

• Requires  the parties  to consider, during negotiations,  the  financial status of the  public  employer  at  the  time  period  surrounding  the  negotiations  for purposes of determining  the  ability of  the  employer  to pay  for  any  agreed terms. 

• Prohibits the parties from basing the ability of the employer to pay for terms of the agreement on potential future increases in the employerʹs income that would only be possible by  the employer obtaining  funding  from an outside source, including the passage of a levy or a bond issue. 

Dispute resolution procedures, strikes, and unfair labor practices 

• Revises collective bargaining dispute resolution procedures. 

• Requires the employer and the State Employment Relations Board to post in a  conspicuous  location  on  the web  site maintained  by  the  board  and  the employer the terms of the last collective bargaining agreements offered by the employer and the exclusive representative at specific times. 

• Revises the factors that a person or group administering an alternate dispute resolution procedure must take into account. 

• If  either  party  rejects  a  fact  finding  panelʹs  recommendations,  permits  the public  employer  to  implement,  in  whole  or  in  part,  any  of  those recommendations  that  have  been  approved  by  the  appropriate  legislative 

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authority. 

• Removes  the  mandatory  final offer  settlement  conciliation  procedure  for public employees who do not have the right to strike. 

• Requires  a  public  employer  to  report  certain  information  about compensation  paid  to  public  employees  under  a  collective  bargaining agreement.   

• Specifies  that expressions of views, opinions, and arguments are not unfair labor practices, and cannot be used as evidence of such, without a threat. 

• Repeals  the provision  requiring  the Public Employee Collective Bargaining Law to be liberally construed. 

• Allows public employers to set aside any provision  in an existing collective bargaining agreement in the event of a fiscal emergency. 

Public employee pay 

• Requires merit‐based pay for most public employees, including teachers and nonteaching  school  employees  and  board  and  commission  members,  and makes other, related changes. 

• Generally eliminates statutory salary schedules and steps. 

Public employee benefits 

• Abolishes  the School Employees Health Care Board,  the School Employees Health Care Fund, and the Public Schools Health Care Advisory Committee, and allows the board of education of any school district to govern employee health  care benefits  in  the  same way  as  the governing board of  any public institution of higher education. 

• Limits public employer contributions  toward health  insurance premiums  to 80%. 

• Requires boards of education to adopt policies to provide leave with pay for school  employees  and  abolishes  statutorily  provided  leave  for  those employees. 

• Abolishes  continuing  contracts  for  teachers,  except  for  those  continuing 

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contracts in existence prior to the effective date of the bill. 

• Prohibits a public employer  from paying employee contributions  to certain retirement systems. 

Reduction in the public sector work force 

• Removes consideration of seniority and of  length of service, by  itself,  from decisions regarding a reduction in work force of certain public employees. 

• Makes changes  to retention point provisions,  including changes concerning the calculation of retention points and  the  layoff procedures when retention points for two employees are the same. 

Senate Bill 5: It's about budgets, jobs, ideology Sunday, February 27, 2011 03:00 AM

By Jim Siegel and Darrel Rowl

THE COLUMBUS DISPATCH

DispatchPolitics

As hundreds of union supporters protested outside yesterday, Senate President Tom Niehaus met in his Statehouse office with Senate GOP leadership preparing changes to a collective-bargaining overhaul bill he hopes to pass this week.

The next committee hearing on Senate Bill 5 is scheduled for Tuesday. Niehaus, R-New Richmond, said he is reviewing dozens of amendments, none of which was submitted by Democrats, who say the bill is too extreme to fix.

Niehaus said they "abandoned the legislative process on this bill."

A look at some of the lingering questions surrounding Senate Bill 5:

Gov. John Kasich and Republican lawmakers have said that their key focus this year is on jobs and

economic development. How does collective bargaining relate to this?

"If I can give people in communities a better ability to manage their costs and if I can keep costs down and taxes down, I've got a much better shot at creating jobs or having an environment where jobs are created than if I keep doing the same old thing," Kasich said yesterday.

Unions see it as economically damaging.

"Senate Bill 5 does nothing to create jobs," said Joseph Rugola, executive director of the Ohio Association of Public Service Employees. "In fact, what it will do is eliminate jobs and, more importantly, will drive down the wages and benefits of many public workers on whom local economies depend for their own welfare."

Ohio is facing an $8 billion budget shortfall in the next two years. Will this help fix it?

Even the bill's sponsor, Sen. Shannon Jones, R-Springboro, has admitted that the bill is unlikely to have any significant effect, and when she introduced it could not cite figures on savings. However, she also has said, "I do think it will make a significant

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difference in future budgets, which is an absolute necessity."

A Kasich administration study last week showed that state and local governments would have saved more than $1.3 billion if Senate Bill 5 had been in effect last year. But most of that - $1.1billion - comes at the local level, meaning only $200million would be trimmed from the state shortfall.

Considering the timing of the push, workers say they are being used as scapegoats for a state revenue shortfall caused by the worst national economic downturn since the Great Depression, combined with state income-tax cuts that are costing the state billions in lost revenue.

Who is affected?

All unionized state government workers, including State Highway Patrol troopers and those at public universities. On the local level, the list includes teachers, bus drivers, some librarians, a variety of municipal and county employees, law-enforcement officers and firefighters, and about 2,500 nurses who work in public facilities. In all, it directly affects more than 350,000 Ohio workers.

What leverage would public-employee unions still have?

The bill, as it stands now, prohibits strikes by public employees, takes away binding arbitration from safety forces (who already are barred from striking), and gives legislative bodies wider authority to approve terms that unions might dislike.

Sen. Timothy J. Grendell, a Chesterland Republican who is pushing changes to the bill, said: "If you can't strike and the city council or the legislative authority gets to impose the ultimate terms, you don't have collective bargaining. From my perspective, you might as well forget going through the motions of a negotiations."

Becky Williams, district president of the Service Employees International Union 1199, agreed. "If you want to talk to a public employer about wages but you have no ability to persuade them to do the right thing ... how can you talk about wages in a real way?"

Niehaus said changes to the bill will contain a conflict-resolution method as an alternative to binding arbitration, but he did not specify how it would work.

He also said there is talk of extending that option to workers beyond police officers and firefighters.

What would be left for unions to bargain for?

State employees could bargain for wages only. Other public employees could go a bit beyond that, but the bill does not permit them to bargain for so-called management rights. For teachers, that would include building assignments, layoff procedures and class sizes.

Law-enforcement officers and firefighters would be allowed to bargain for wages and safety issues, such as equipment.

Republicans controlled all of state government from 1995 to 2006 but made no substantive changes to collective bargaining. Why is this now a major issue?

"Business interests and conservative think tanks have been trying to move this agenda along for many years," said John Russo, co-director of Youngstown State University's Center for Working Class Studies. He said it is an effort to break unions, and that Kasich is more ideological than Ohio's most-recent GOP governors.

Other factors are at play, including a state budget shortfall that will affect local governments. Ohio also has a high local tax burden compared with other states.

"The idea is to give state and local government, including school boards, the flexibility to control their costs," Niehaus said. "This is about creating additional tools so local governments can manage the dollars they get."

Is there any truth to the rhetoric that Kasich and Republicans simply are out to destroy unions, especially in the public sector?

The governor and GOP lawmakers insist that's not the case. However, during a speech before Ashtabula County Republicans in March 2009, Kasich did stress the need to "break the back of organized labor in the schools," and he has harshly criticized teachers unions that have "smeared my record and distorted it."

Critics say it's difficult to watch what's going on in Ohio, Wisconsin, Indiana, New Jersey, Michigan and elsewhere and not wonder whether there is a coordinated effort to target public unions, which heavily support Democrats.

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Kasich opposes paying prevailing (union) wages on state-funded construction projects; his appointees ended a lucrative pro-union stance of the Ohio Facilities Commission last week; and GOP lawmakers are considering a bill that would allow small employers to give their workers comp time instead of overtime, with the employees' permission.

Weren't the current public union contracts approved by state and local government leaders?

Yes, except in the tiny number of negotiations decided by binding arbitration. Local officials say the scales over time have tipped in favor of unions, but there also is an element of "save us from ourselves."

Are public workers overpaid?

Conservative groups use data that indicate public workers make more than those in the private sector, while pro-labor organizations say the opposite, in part because many government jobs require higher education levels.

Complaints raised by local government leaders have focused less on salaries and more on the other public worker benefits - paying less than 10 percent of their health insurance premiums, automatic pay increases for longevity, hefty unused sick-day payments upon retirement, and lucrative pension plans.

Government workers also are drawing greater scrutiny from taxpayers who have seen their own paychecks take a beating.

Russo called it the "politics of resentment." "Some say there is a hopelessness in the country, and there is not much people can do about it. They don't see a chance of things getting much better, and they don't want to be the lowest on the totem poll."

Have unions already made concessions?

Many have. State workers generally have seen little or no raises for years, and now must take 10 unpaid "furlough" days annually. Union leaders can point to dozens of examples across the state where employees have worked with government officials to freeze pay or reduce raises and benefits.

Does this legislation also affect government workers' pensions?

Governments no longer could pay the employee's share of the amount set aside from each paycheck for retirement. An estimated 2,500 local governments cover at least a portion of an employee's pension share.

A separate legislative proposal would, over time, trim $16 billion in retirement benefits from public workers to restore their pension plans to fiscal health. Those changes range from higher retirement ages to lower cost-of-living increases in retirement pay, to an additional 3 percent taken from the paychecks of teachers and another 2.25percent from police and firefighters for their pensions.

Does Senate Bill 5 have the votes to pass?

Niehaus said he is confident it does. House Speaker William G. Batchelder, R-Medina, has said he wants to see it pass his chamber by mid-March.

Then get ready for a union-led referendum effort and a bitter statewide campaign.

jsiegel@dispatch.com

drowland@dispatch.com

Kasich: 'I'm not anti-union'

No GOP effort to weaken unions, governor says Sunday, February 27, 2011 03:00 AM

By Joe Hallett

THE COLUMBUS DISPATCH

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Shari Lewis | DISPATCH Peter Cochrane, 9, and his sister Anna, 6, on her dad, Tom's, shoulders, participate in the ongoing protests against Senate Bill 5 at the Statehouse yesterday. Protesters weren't flattered by Gov. John Kasich calling them "very nice people." | "I don't want to hurt people," Kasich said, adding he understands their concerns.

Saying he is at war with joblessness, not unions, Gov. John Kasich denied yesterday that there is any coordinated effort by Republican governors to stifle the power of public-employee unions.

Kasich told The Dispatch the attempt by him and Republicans controlling the Ohio legislature to revamp collective bargaining is necessary to help elected officials get control of spending and to align public-employee compensation with the resources available.

"I'm not anti-union," Kasich said. "I think unions are an important part of the American fabric, but what we're doing here is basically to start sticking up for taxpayers and private-sector workers who have made enormous sacrifices over the last decade."

Kasich said that the collective-bargaining overhaul "is one piece of an overall reform agenda" to be largely revealed in his two-year state budget on March 15. The budget is designed "to stabilize the state so that we can have economic growth, job creation and entrepreneurship," he said.

As the governor worked on his budget yesterday on the 30th floor of the Riffe Center, hundreds of protesters gathered across the street outside the Statehouse to continue the almost-daily rallies against Senate Bill 5, which would significantly curtail collective-bargaining rights for more than 350,000 state and local public workers.

Kasich is among Republican governors in Wisconsin, Indiana, New Jersey, Michigan and other states spearheading efforts to restrict collective bargaining. Labor and Democratic leaders have assailed the moves as part of a national effort by Republicans to weaken unions.

While he occasionally talks with his GOP counterparts, Kasich said "there is no coordinated effort here" to kill public-employee unions, which provide political and financial support overwhelmingly to Democrats.

Kasich said he frequently talks with Wisconsin Gov. Scott Walker and called him last week after Walker was duped by a blogger into believing he was talking by phone with billionaire David H. Koch, who, along with his brother, Charles, are benefactors to GOP campaigns and causes.

"I just called him and said, 'Hey Scott, don't let it get you down, just do what you want to do,'" Kasich said, adding that he has never talked to either of the Koch brothers about collective-bargaining reform.

Decades of continual growth in state spending, services and the bureaucracy is not sustainable in an era of dwindling tax revenue, Kasich said, adding that public-employee compensation has grown more generous than in the private sector.

"It is very reasonable to have the same kind of provisions that private workers get," the governor said. "I said during the campaign that what I was interested in was creating equity between public and private employees and that is exactly what this bill represents."

Kasich called the Senate Bill 5 protesters "very nice people," and said he understands their concerns. By giving elected officials more control over employee contracts and costs, Kasich said, government entities will be financially strengthened, ultimately providing more job and pension security for public employees.

"Some of (the protesters) are very misinformed about what we're doing," Kasich said. "But I'm not angry at the rank-and-file teacher or policeman or fireman or public employee. It's not that at all. I think things will come out fine for them. ... I don't want to hurt people."

Senate Bill 5 protesters at yesterday's Statehouse rally bristled when told about Kasich's comments.

"I don't care whether or not he thinks we're nice people," said Yvonne Vadeboncoeur, a biological-science professor at Wright State University in Dayton. "That is not the issue. He is trying to kill collective bargaining, and collective bargaining is democracy in the workplace."

Anita Barton, a high-school guidance counselor from St. Mary's, said Kasich is making public employees scapegoats for the state's financial crisis.

"Why is he so afraid of collective bargaining?" Barton asked. "Why is he so afraid that we have

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representation? If you don't have representation as a whole, as an individual you don't have a voice."

Dick Gregory, a dentist from Aurora, said he is not a union member but drove to Columbus from northeastern Ohio to show his support for public employees.

"We need a strong middle class," Gregory said. "Workers have to make a decent wage so they can pay their dentist."

Several protests have been staged around the state in recent days, from Cleveland and Lorain to Lancaster. Another round is likely Tuesday when a Senate committee again considers, and possibly votes on, the proposal. Already booked are The Street Dogs, a Boston band that performed for demonstrators in Madison, Wis.

jhallett@dispatch.com

Thomas Suddes commentary: Lawmakers have to make it easier for politicians to say no Sunday, February 27, 2011 03:00 AM

By Thomas Suddes

The Columbus Dispatch

No suspense in this movie: Ohio's GOP-run Senate will, likely this week, pass a bill to crimp the power of unions that represent Ohio public employees, including teachers and cops.

True, Republicans will let state and state university employees keep bargaining collectively, something the GOP originally planned to ban. Meanwhile, though, a Republican maverick, Sen. Timothy J. Grendell of suburban Cleveland, charges that the bill threatens everyone's liberty - something he says conservative Ohioans need to know. One "for instance":

"The precedent that the Legislature can reach in and terminate, interfere with, or negate [labor contract] terms because of economic exigencies opens a Pandora's Box that could [let] ... a future liberal [state] administration ... extend this power to other private contractual business relationships. ... Tea Party and Liberty Council members should be very careful on this issue."

Still, the House, also Republican-led, will also pass the Senate bill, sponsored by Sen. Shannon Jones, R-Springboro. That would send the Jones bill to Republican Gov. John Kasich. He'll sign it. That's not in question. But these points are:

• Did ambitions among Senate Republicans force the Jones bill's timing on Kasich, or did Kasich force his timing on senators? Best bet: Jones and her allies set the clock.

• Will the bill give Jones a statewide boost if she seeks higher office? That's a given.

• Will unions sue, trying to void the Jones bill - meanwhile collecting petition signatures to force a statewide referendum on the measure? Bet on that. That's why Republicans are in a hurry. Unless the bill becomes law by early April, any referendum would be in 2012, a presidential year. That might energize Democrats. A 2011 referendum might not, but it would offer a sweet, off-year, full-employment plan for Columbus consultants, flacks and pollsters.

• Will the final bill offer a "carve-out" for police and fire unions so, as now, when contract talks deadlock, an arbitrator can force a settlement? At the moment, Jones' bill bans that. (Grendell, in contrast, backs binding arbitration for cops and firefighters.) Making a carve-out unlikely: One carve-out would invite more.

• Will the bill's flat ban on strikes stay in it? Count on that: That's a Kasich must.

• Would Republicans be riled about public-employee unions if unions funded GOP campaigns the way they fund Democratic campaigns? No. But there's a reason besides donations why Democrats (and a few local-government Republicans) think public-employee unions are dandy: They give officeholders cover:

"Hey! An arbitrator forced that on us!" Or, "Hey, if we (city hall, the school board) hadn't paid up, (a) your garbage would pile up or, (b) your kids' school would close - you'd have had to stay home with them."

That is, what's in play isn't just payback. Add this: As with taxes, visibility is everything. A visible tax draws fire (example: residents hate property taxes, but shrug over collected-at-the-register sales taxes). In a decent

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economy, Ohio's 1983 bargaining law kept public-employee pension and benefit costs less visible than otherwise. But now, the tab for 28 years of labor peace has arrived. And it'll snowball unless Ohio makes it easier for elected officials to say no. That's not a politician's first inclination. With Jones' bill, it might be.

The 1983 law suited the great Ohio public, which talks "cheap" but demands "convenient" and thinks "patience = weakness." Voters wanted and got it both

ways - telling other Ohioans to diet while they themselves zoomed to the Statehouse drive-up. Many places, that's called hypocrisy. In Ohio, it's called politics.

Thomas Suddes is a former legislative reporter with The Plain Dealer in Cleveland and writes from Ohio University.

tsuddes@gmail.com

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To: OMA Government Affairs Committee From: Kevin Schmidt, OMA Staff Re: OMA Energy Committee PPS Report Date: 3/2/2011 Ohio’s Renewable Energy Mandates There have been discussions that several individual general assembly members may be interested in revisiting Ohio’s renewable energy mandate. While budget discussions will continue to dominate the Statehouse through the first half of 2011, a revisiting of Ohio’s advanced energy portfolio standard may be in play for the second half of the year. The issue driving most of legislative members is the continued high cost of renewable energy. Already it is being reported that utility scale solar projects, with all government incentives factored in, are costing upwards of $.30 a kWh. As renewable energy grows as a share of Ohio’s IOU’s overall portfolio, these costs will be more difficult to mask in rates. Any proposal on how to solve this cost problem has not been forthcoming. Nor has any argument on why the 3% cost-cap language included in SB 221 will be insufficient. The OMA remains vigilant on the development of this new industry and the interplay between new jobs in Ohio and costs on Ohio’s existing manufacturing base. Significantly Excessive Earnings Test SB 221 defined a system whereby an electric utility could get the benefit of guaranteed revenue streams for their investments if they regulatory test to ensure that their rates were not significant higher than similar companies. The first implementation of this test allowed AEP’s Columbus Southern Power Company’s ROE to be as high as 17.6%, or 60% higher than their comparable peers. Most regulated utilities have ROEs in the 11% range. The OMA considers this outcome a disappointment. While the PUCO did order AEP to credit any earnings over 17.6% back to CSP customers, the fact remains that 17.6% is a disappointingly high threshold and most utilities will have no problem meeting it in the future. Without a meaningful threshold the consumer protection provisions are less effective. Future earnings test proceedings will result in different levels, but the fact remains that the PUCO order is precedent setting and 17.6% will be the guidepost for what is reasonable in Ohio. OMA Energy Group In response to the disappointing regulatory outcomes at the PUCO the OMA board of directors supported the creation of the OMA Energy Group. The OMA Energy Group will be a new place for manufacturers to combine resources and provide a voice in litigation and policy development at the PUCO. The current framework does not promote long-term business planning at the PUCO and parties are generally focused on the short term outcomes of individual rate cases. This short term focus has resulted in 10 years worth of deferred utility costs and unnecessarily high earnings thresholds. The effect being Ohio customers will be facing proposals for steep price increases in the foreseeable future. The first being AEP with 10% + increases proposed for many industrial customers.

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OMA News & Analysis - Energy

PUCO Upholds OMA Complaints in Duke Energy Rate Case 02/24/2011 On November 15, 2010, Duke Energy-Ohio (Duke) filed an application for approval of a market rate offer (MRO) pursuant to Ohio Revised Code. Based on a variety of filing provisions that would prove uncompetitive for manufacturers in Duke territory, and potentially precedent setting for other utilities, the OMA filed a motion to intervene in this proceeding. Yesterday, the PUCO issued a detailed 77-page Opinion and Order rejecting Duke’s MRO Application (the Order). A memorandum prepared by OMA energy counsel, Matt Warnock, Bricker & Eckler LLP, summarizes the Order. The PUCO adopted many of the OMA’s arguments. The OMA argued that Duke should not be allowed to recover any costs associated with its unilateral business decision to move from transmission provider MISO to PJM as part of this proceeding or any other proceeding. OMA argued this is a business decision on the part of Duke for which customers should not bear the cost.

OMA successfully argued against a number of proposed riders that would have negatively impacted Ohio manufacturers. In particular, OMA argued for rider bypassibility, which protects shopping customers from paying riders thus preserving the presumed benefits of shopping. The PUCO agreed, noting that if Duke could recover the “costs included in Rider SCR from shopping customers, under any circumstances, we believe it would create an anticompetitive subsidy.”

Duke was ordered by PUCO to address the possibility of providing dynamic pricing options which reflect the time varying wholesale cost of electric service for large commercial and industrial customers with advanced or interval meters. Also, the PUCO concluded that Duke’s proposed rate design (based on kWh usage and not demand) did not adequately account for customers traditionally served on a demand rate schedule.

Duke will have the opportunity to file an application for rehearing relating to the Order, and/or re-file an amended MRO application based on the guidance provided in the PUCO’s Order.

Contact OMA’s Kevin Schmidt to seek more information and to learn how you can ensure your company is protected in PUCO cases through the OMA Energy Group.

Excessive Earnings Appeals FiledFebruary 18, 2011 A number of parties filed applications for rehearing this week in AEP-Ohio’s excessive earning case. OMA energy counsel, Bricker & Eckler LLP, prepared this brief memorandum outlining the applications for rehearing in this matter. Residential Subsidy Bill ReintroducedFebruary 18, 2011 Introduced this week, SB 75 would require that electric subsidies for all-electric homeowners be continued in perpetuity in FirstEnergy territory. At the PUCO, the Ohio Consumers’ Counsel,

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Ohio’s residential advocate, is seeking to force manufacturing and other ratepayers to continue paying for this subsidy. It amounts to just under a penny per kilowatt hour. The OMA’s position on this issue has been consistent – the historic subsidy FirstEnergy provided to its all-electric customers is a matter between residential customers and their utility. The OMA communicated in a letter to the editor last year that manufacturers cannot afford this burden while competing against China and other low-cost countries. Natural Gas Regulatory Legislation Introduced February 18, 2011 Representative Stautberg (R, 34 – Hamilton County) introduced HB 95 which would make several modifications to Ohio law regarding natural gas regulations. Under Ohio law, natural gas companies have a highly prescriptive process to follow when filing for rate increases. HB 95 aims to streamline the regulatory process. OMA energy counsel, Bricker & Eckler LLP, drafted this brief memorandum on the legislation. AEP Customer? Use a Lot of Electricity? February 18, 2011 If you are an AEP customer and you use approximately 700,000 kWh of electricity or more annually, your rates are at risk of significant increases. AEP has filed its rate case that will be litigated this year and that affects rates beginning January 2012 and the subsequent 29 months. Further, there are multiple energy policy issues that will be determined in the course of this case that will affect the energy landscape in Ohio for years to come. We have built a calculator that indicates how much of an increase in the cost of electricity you might pay if AEP’s filing holds up. Contact OMA’s Kevin Schmidt at (800) 662-4463 or kschmidt@ohiomfg.com to have him run your numbers. OMA will be intervening on behalf of manufacturers to contain costs to the degree possible; however, your involvement in the OMA Energy Group strengthens OMA’s position and gives you a hands-on position in the case.

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Procedural Schedule Set for Major AEP Rate CaseFebruary 11, 2011 The PUCO set the procedural schedule for AEP-Ohio’s rate case this week; the case will set rates for 2012 and beyond. A technical conference will be held on March 8th in which AEP will present its plan in detail to interested parties. Those wishing to intervene in the case must file a motion by March 14th. OMA plans to intervene on behalf of members. The AEP case is critical to manufacturers as it will deal with multiple energy policies that will affect rates for years to come, including how to finance the maintenance of existing, and replace the aging, generation fleet. AEP will seek non-bypassable surcharges on customer bills for the capital investments needed. Contact Kevin Schmidt at the OMA to learn more about AEP’s plans and how you can become engaged to affect energy policy and protect your rates. Snitchler named PUCO Chairman February 11, 2011 Governor Kasich appointed Ohio Representative Todd Snitchler to fill the vacant seat left by the retired former PUCO Chairman Alan Schriber this week. Chairman Snitchler was formerly chairman of the Ohio House Public Utilities Committee and represented the 50th House district. The OMA supports the appointment of Chairman Snitchler and looks forward to working with him to craft policies aimed at providing Ohio manufacturers long term access to affordable, reliable energy in Ohio. Click here to read what the Canton Repository reported.

Latest Auction Results in Marginally Higher Prices January 28, 2011 The results of FirstEnergy’s wholesale electricity auction resulted in prices that are marginally higher than the last auction. FirstEnergy conducted this auction pursuant to its rate plan whereby it must periodically conduct auctions for its electric load to set its base rate for electricity. Earlier auctions have resulted in lower prices for customers in FirstEnergy territories.

While this auction leaves prices nearly the same, the marginal upward trend may portend more increases in the future. OMA counsel at Bricker and Eckler has prepared this short memo detailing the auction results.

AEP Files Its Rate Plan for 2011 January 28, 2011 AEP filed its plan this week to set rates for the three-year period beginning 2012. While AEP’s plan contains provisions intended to provide manufacturers with some longer-term price certainty, it is unclear what the rate impact may be for manufacturers electing this option.

The plan contains provisions to merge AEP's Ohio operating companies' (Ohio Power and Columbus Southern Power) tariffs into one rate structure, recoup deferred costs the company

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has incurred, and provide the company with long-term certainty on investments in its generating fleet.

The OMA will review the filing in detail and will communicate impacts to members next week. If you haven't already, let the OMA know which utilities provide your facilities with electricity, so we can keep you informed. Here is the quick survey.

The newly formed OMA Energy Group is the OMA place where manufacturers work together to improve rates and service. Click here to learn more about the OMA Energy Group and here to view the investment schedule. Call Kevin Schmidt at the OMA at 614-629-6816 to learn more.

OMA Opposes Duke Electric Plan January 28, 2011

The OMA filed a brief this week in Duke Energy Ohio’s Market Rate Offer (MRO) opposing provisions that would be harmful to manufacturers. The OMA challenged Duke’s plan to transition to full market rates over two years. Senate Bill 221 specified that a utility's transition to market, or “blending period,” must be at least five years, and as long as ten, to protect customers from price spikes.

Additionally, the OMA opposed Duke’s request to charge customers the costs the company faces as it switches transmission authorities. These costs are undetermined at this time but can easily run more than $100,000,000. Duke’s decision to switch transmission authorities is its own business decision and should not be at the expense of customers. Further, Duke agreed to pay these costs without recouping them from customers when it made the same decision in Kentucky.

Tell Us Who Your Electric Utility Is, So We Can Get You Information You Need January 21, 2011 There are a number of critical utility rate cases coming before the Public Utilities Commission of Ohio this year. The OMA will represent manufacturing's interest in the cases. Let us know which utility provides your electricity, so that we can keep you apprised of the issues, cost impacts and actions you can take.

PUCO Issues Disappointing Decision on Excessive Earnings January 14, 2011 The Public Utilities Commission of Ohio (PUCO) issued an order this week ruling AEP’s Columbus Southern Power (CSP) company’s return on earnings of more than 17.6% were "significantly excessive." This ruling is the first under Senate Bill 221's consumer-protecting "signficantly excessive earnings test" (SEET).

OMA President Eric Burkland called the ruling "a disappointment." Chief among the OMA concerns is that CSP was permitted a return on equity for 2009 of 17.6%, a return that is well above its peers in other states where ROEs average 10-12%. Thus, the first execution of the SEET allowed an electricity utility to earn as much as 60% more than comparable utilities.

Read more in this Energy Alert from OMA's Kevin Schmidt sent yesterday to the OMA energy management community. To receive these alerts, and other energy news, join the OMA energy

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community at MyOMA. Lesser Named as New PUCO Chairman January 07, 2011

Commissioner Steven Lesser was named last week by Governor Strickland as the new chairman of the Public Utilities Commission of Ohio (PUCO). A long-term employee of the PUCO, Lesser has served as attorney examiner, chief of staff, and was appointed in 2010 as commissioner. In his capacity as chief of staff, Lesser was instrumental in the drafting of SB 221, Ohio’s major electricity restructuring legislation that protected Ohioans from rate shock and helped diversify Ohio’s generation portfolio. OMA’s Retooling Ohio details the provisions of SB 221 and sets forth manufacturers' aims in Ohio energy policy.

Duke Energy Says Some Motor Rebates Expire End of First Quarter 2011 December 17, 2010

Attention manufacturers in Duke Energy territory! Motor incentives for some motors are being removed from the Duke Energy Smart $aver® Prescriptive Incentive Program effective March 31, 2011. This is in response to government regulation which makes what were previously considered high efficiency motors the new standard. Duke Energy will honor its motor incentive program through March 2011, at which point it is estimated that manufacturer and supplier inventories of less efficient motors will be depleted.

The efficiency standards for general purpose 200 horsepower motors are regulated under the Energy Independence and Security Act of 2007, which takes effect this month. These motors must now be manufactured to meet NEMA Premium Efficiency Standards, which is the current high efficiency level that the Duke Energy Smart Saver Prescriptive incentives were built upon.

Specific types of motors may still be eligible for Duke Energy incentives under its Smart $aver® Custom Program, including 1-200 HP general purpose motors exceeding NEMA Premium Efficiency Standards as well as ECM (Electronically Commutated Motor) Case, cooler and freezer motors. Here are the details about qualifying motors and how to claim your incentives. PUCO Moves to Project Rate Shopping in AEP’s Territories December 10, 2010 The PUCO issued an entry this week that protects the ability of customers to shop for their electricity supplier. Earlier this year AEP had filed an application with the Federal Energy Regulatory Commission (FERC) to dramatically increase capacity costs that, in most shopping customers’ contracts, are pass-throughs to the customers.

The PUCO’s entry this week clarifies the state’s position on capacity costs in a way that protects customers from price increases. An analysis of the entry prepared by OMA's counsel, Bricker & Eckler LLP, can be found here.

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PUCO Chairman Alan Schriber to Retire December 03, 2010 Public Utilities Commission of Ohio (PUCO) Chairman Alan Schriber announced that he will step down from the Commission effective December 31st of this year. Chairman Schriber provided excellent leadership at the PUCO for the past 12 years. He guided Ohio through the deregulation of electricity markets, the 2004 rate stabilization plans that protected Ohio from rate spikes, and SB 221 which provided a long-term framework for stable electricity prices in Ohio. Since Commissioner Lemmie’s term ends next year, Governor-elect Kasich will have two appointments to make to the Commission in the near future. Co-Generation Decision: Power Siting Board to Regulate Manufacturers? December 03, 2010

On December 1, the Ohio Supreme Court issued a 5-1 decision reversing and remanding an Ohio Power Siting Board (OPSB) decision that granted the Middletown Coke Company a certificate to construct a cogeneration facility. The facility would produce both purified coal (coke) and more than 50MW of electricity.

According to the opinion, the OPSB now has jurisdiction over manufacturing facilities that co-generate more that 50MW.

“As manufacturers are increasingly looking to use waste heat and steam to generate power, an additional layer of state regulation by the power siting board is unwelcome,” said the OMA’s Ryan Augsburger in commenting on the ramifications of the decision. OMA’s law firm has prepared a summary of the court action. The matter will be discussed by the OMA Energy Committee. House Committee Approves $600 Per Year Rider on Manufacturers’ Electricity Bills December 03, 2010

The House Alternative Energy Committee passed HB 301 this week which will extend a $.09 monthly rider on residential bills - $50 a month for manufacturers - for the Advanced Energy Fund through 2013. The Advanced Energy Fund has been used over the past 10 years to stimulate the market for renewable energy products. The OMA communicated to the bill sponsor as long ago as last December that Ohio’s renewable portfolio standard, which creates state mandated demand for these products, already meets the policy goal behind the fund, and that the rider should sunset. The OMA will continue to communicate on this issue to the full House and the Ohio Senate throughout the lame duck session. OMA Achieves Benefits for Manufacturers in AEP Case at PUCO December 03, 2010

The OMA signed onto a settlement agreement with AEP this week. The settlement included the unresolved 2009 rate issues. The settlement contains provisions that require AEP to invest at

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least $43 million dollars in projects that will directly benefit AEP’s Ohio customers. With that figure as a floor, it is likely that customers will realize in excess of $73 million.

Parties in the case had pegged AEP’s liability anywhere between $23 and $156 million, a wide discrepancy with PUCO staff favoring the lower ranges. In recent weeks it has become clear that the PUCO desires to resolve this case quickly. Moreover, PUCO staff had refrained from declaring whether direct refunds were due to customers at all, adding to the significant uncertainty over possible direct refunds to customers.

With these considerations in mind, the OMA achieved a settlement that benefits manufacturers, rather than spending unnecessary money, time and resources on attorneys’ litigation theories. Importantly, the settlement does not limit the OMA from challenging AEP’s earnings for 2010 or 2011, nor does the settlement set precedent for other utilities who might be exposed to the test.

A full summary of the settlement can be found here. Coverage of the settlement in the Columbus Dispatch can be found here.

Electricity intensive OMA members are encouraged to participate in subsequent proceedings by joining the OMA Energy Group. Click here for information on an upcoming webinar discussing the OMA Energy Group. Or, call me to set up a time to talk about how your company can protect your energy management needs via the OMA Energy Group.

To Diversity or Not, and At What Cost? November 24, 2010

Political transition periods sometimes expose themes that foreshadow future public policy. Some in Columbus hope to revisit and revise the state’s electricity policy which was supported by the OMA and enacted in 2008.

“Senate Bill 221 has largely been successful in protecting against price spikes while giving a foothold to more diverse energy sources, including renewable energy,” said the OMA’s Ryan Augsburger. This week a Cincinnati Enquirer op-ed called for a repeal of the state's renewable energy portfolio standards.

In an effort to comply with the requirements, utilities have already begun to diversify generation. Just this week, AEP announced it would buy 99 megawatts from a planned wind farm in Paulding County. AEP has previously announced plans to purchase wind power from Indiana and solar power from a planned SE Ohio solar project. Meanwhile, FirstEnergy last week dropped plans to convert an aging coal plant to biomass (wood) stating that it would purchase renewable energy credits instead.

Manufacturers are increasingly eager to supply products needed in new generating capacity whether wind, solar, nuclear, biomass, clean coal, fuel cell, etc. The balancing factor is price. Clearly energy is a top public policy issue for manufacturers. Join the conversation in the OMA energy community.

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FirstEnergy Not Burning Wood November 19, 2011

FirstEnergy recently announced it is discontinuing plans to retrofit its Burger Plant in Shadyside, Ohio, to burn biomass. According to FirstEnergy, the retrofit no longer makes sense due to its costs and the current marketplace for electricity.

The original decision to burn biomass was in response to a federal regulations , and to Ohio’s renewable energy mandate.

While this decision will have negative effects on the Belmont County economy, it will be welcomed by Ohio’s paper and wood products industry, which has been concerned about new costly competition for raw materials.

Click here to read an article from the Hannah Report on the issue.

Duke Energy Files Its Next Rate Case November 19, 2010

This week, Duke Energy Ohio filed its Market Rate Offer case (MRO) with the Public Utilities Commission of Ohio (PUCO) which will set electricity rates for 2012 and beyond.

According to the filing, rates would be set through a federally-regulated auction process. This process has been considered favorable to electric generators.

Other parts of the MRO include new charges on customer bills to recover costs associated with compliance with Ohio’s renewable energy mandates and with charges Duke incurred when it switched from MISO to PJM (entities that dispatch energy and manage the flow of electricity regionally).

Contact Kevin Schmidt at the OMA to find out how you can influence the direction of Duke’s plans to control your costs. Supply Opportunities for Solar Project November 05, 2010 At the OMA Energy Committee this week OMA members met the developers of a major, recently-announced solar project and began discussions about the supply chain needs of the project. In addition to the developers, representatives of the OEMs that will build the solar panels (Isofoton) and tracking system (Prius) were on hand to discuss their supply needs.

These manufacturers, which are locating their North American manufacturing and headquarters in Ohio, noted that the Ohio project is just one they are planning to supply. They foresee continued demand for their product in North America.

The OMA will be working with these firms to disseminate information to interested members regarding part needs and specifications. Contact Kevin Schmidt if you would like to learn more. Meeting materials can be found here

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OMA Energy Committee Materials November 03, 2010

Agenda items:

• 10:00 AM - David Wilhelm and Glen Davis, the partners behind the joint venture Turning Point Solar, will be on hand to discuss the supply chain needs of the recently announced 50MW solar field, consisting of over 230,000 solar panels, in southern Ohio. David is the founder of Adena Ventures and Glen is the CEO of Agile Energy. The solar field is exptected to be operational in late 2012 so opportunities in the supply chain are imminent.

• 11:00 AM - John Cuttica of the Department of Energy and Dick Munson, of Recycled Energy Development will talk about the benefits of co-generation at manufacturing facilities and ways to improve the regulatory environment in Ohio for such technology.

Click here for Energy Committee meeting materials.

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Energy Legislation Prepared by: The Ohio Manufacturers' Association

Report created on February 25, 2011

HB51 MUNICIPAL UTILITIES (SNITCHLER, T) To require a municipal utility supplying surplus electricity to nonresidents to provide written notice of termination one year before terminating the service.

All Bill Status: 2/1/2011 - Referred to Committee House Public Utilities 1/26/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_51 HB73 TRANSPORTATION OF NUCLEAR MATERIALS (YOUNG, R) To require payment of only the cost

of police escort services for the highway transportation of limited amounts of certain nuclear materials.

All Bill Status: 3/2/2011 - House Transportation, Public Safety and Homeland Security, (Third Hearing) 2/16/2011 - House Transportation, Public Safety and Homeland Security, (Second Hearing) 2/9/2011 - SUBSTITUTE BILL ACCEPTED, House Transportation, Public Safety and Homeland Security, (First Hearing) 2/1/2011 - Referred to Committee House Transportation, Public Safety and Homeland Security 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_73 HB95 NATURAL GAS RATES (STAUTBERG, P) To permit certain rate-calculation adjustments for natural

gas companies, eliminate public notice requirements for rate cases, and for natural gas companies, to make other regulatory changes concerning audits, alternative rate plans, and forecast reports, and allowing applications for natural gas company capital expenditure programs.

All Bill Status: 2/23/2011 - House Public Utilities, (Second Hearing) 2/16/2011 - House Public Utilities, (First Hearing) 2/15/2011 - Referred to Committee House Public Utilities 2/10/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_95 HCR4 URANIUM ENRICHMENT (ROSENBERGER, C) To urge the President of the United States to direct

the United States Department of Energy to ensure the continuation of the uranium enrichment work being developed by USEC, Inc. at its Piketon, Ohio plant by granting USEC's application for a federal loan guarantee and to direct the Secretary of Energy to strongly consider providing federal funding assistance for the Clean Energy Park Demonstration Project.

All Bill Status: 2/15/2011 - Referred to Committee House Public Utilities 2/15/2011 - Introduced

More Information: http://www.legislature.state.oh.us/res.cfm?ID=129_HCR_4 SB75 ELECTRICITY CUSTOMER DISCOUNTS (PATTON, T) To restore discounts for customers using

electricity to heat their homes and for electric, load-management programs, to specify that those discounts run with the land and may be transferred, to provide for refunds to customers whose rate discounts were modified or discounted, and to declare an emergency.

All Bill Status: 2/16/2011 - Referred to Committee Senate Energy & Public Utilities 2/15/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_75 SB78 NATURAL GAS LAKE ERIE (SKINDELL, M) To ban the taking or removal of oil or natural gas from

and under the bed of Lake Erie.

All Bill Status: 2/23/2011 - Referred to Committee Senate Agriculture, Environment &

Natural Resources 2/16/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_78 SCR4 URANIUM ENRICHMENT (DANIELS, D) To urge the President of the United States to direct the

United States Department of Energy to ensure the continuation of the uranium enrichment work being

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developed by USEC, Inc. at its Piketon, Ohio plant by granting USEC's application for a federal loan guarantee and to direct the Secretary of Energy to strongly consider providing federal funding assistance for the Clean Energy Park Demonstration Project.

All Bill Status: 2/16/2011 - Referred to Committee Senate State & Local Government &

Veterans Affairs 2/15/2011 - Introduced

More Information: http://www.legislature.state.oh.us/res.cfm?ID=129_SCR_4

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To: OMA Government Affairs Committee From: Kevin Schmidt, OMA Staff Re: Environment Update Date: 3/2/2011

1. Ozone National Ambient Air Quality Standard (NAAQS) It was expected that the new ozone NAAQS would be released very soon. However, in the wake of hundreds of letters being sent to Congress (see the OMA’s letter in “Additional Documents” section) US EPA has announced that it will delay releasing the new ozone NAAQS and review the new comments. The Clean Air Scientific Advisory Committee (CASAC) Panel is meeting now to review the technical comments and provide a recommendation to the agency. An economic impact analysis was done by the National Association of Manufacturers and can be found in the supplemental materials section of your packet. The proposed standard, between 60 and 70 ppb, would put virtually every county in Ohio out of attainment for ozone. It has been noted that if the Obama administration uses the upper threshold as the new standard it will be incredibly difficult for Ohio to meet, while if the lower bounds of the proposal are implemented, it will be nearly impossible for Ohio to meet.

2. State Level GHG Implementation In December Governor Ted Strickland issued emergency rules via an executive order that implemented the federal “tailoring rule” regarding GHG regulations on industrial sources. The emergency rule contains language that should keep Ohio from having any type of GHG regulations on the state level should GHG regulations disappear on the federal level. The OMA watched this development closely and did not intervene to stop the implementation once US EPA made it clear that states may only take advantage of the higher thresholds contained in the tailoring rule if the state’s adopted its language. Without implementation Ohio EPA would be required to issue permits containing GHG regulations in permits as low as 250 tons of CO2e. While the emergency rule was not final, it winding its way through the regulatory process and is likely to become part of Ohio law.

3. State Operating Budget Generally, the state operating budget is not a large vehicle for environmental related legislative reform. One issue that does percolate up every two-years related to environmental issues is that of E-Check. E-Check is Ohio’s mobile emissions testing program and has historically played an important role in the state’s SIP for ozone. The Senator from Geauga County has

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inserted in (at least) the last three biannual budgets provisions related to the ongoing operation of E-Check. E-Check and mobile emissions testing programs are important to manufacturing as they help relieve pressure on industrial sources of emissions. With the ever-tightening federal standards it will be imperative that manufacturers support all reasonable means of attainment.

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OMA News & Analysis - Environment

Boiler MACT Rule Dialed Back - Should Save Manufacturers Compliance Costs 02/25/2011

The United States Environmental Protection Agency (EPA) has released its much anticipated Boiler Maximum Achievable Control Technology (MACT) rule for boilers, process heaters and industrial solid-waste incinerators. The rule was finalized on February 21, 2011, pursuant to a court order.

Implementation costs associated with the new rule are approximately 50 percent less than those estimated in an earlier proposal issued last year.

Major changes include the addition of “work practice standards" (e.g. regular maintenance tune-ups) instead of numeric-emission standards for small new boilers, limited-use boilers, and for periods of startup and shutdown.

The EPA did not have sufficient time to entertain public comments on the revised rule due to the court-imposed deadline. As a result, the EPA also simultaneously issued a Notice of Reconsideration of the final Boiler MACT rule, which will allow the public to comment on certain aspects of the final rule.

A good bulletin on the rule has been prepared by OMA environment counsel, Bricker & Eckler LLP. The U.S. EPA has also prepared two fact sheets, one for "major" sources and one for "area" sources.

Senator Brown in Columbus to Raise Awareness of “Rare Earth” Problems 02/24/2011

OMA staff participated in a discussion this week with Senator Sherrod Brown regarding the so-called “rare earth” situation and its effect on U.S manufacturing. “Rare earth” refers to 17 natural elements that are critical to high-tech applications including electronics, high-efficiency lighting, and defense applications.

China controls more than 95% of the world production of rare earth elements and has instituted a policy whereby it will restrict the export of the raw elements and encourage manufacturers needing them to locate there. The National Association of Manufacturers has issued this Key Vote letter on related legislation. And, the U.S. Department of Energy has prepared a Critical Materials Report that outlines specific rare earth elements and strategies to address the highly concerning issue.

Tell U.S. EPA to Halt Unnecessary Ozone Regulations February 04, 2011

U.S. EPA is considering a proposal to tighten the current ozone standard from 75 parts per billion (ppb) to 60 ppb or 70 ppb. This revision would occur before a plan to implement the 75ppb standard is fully in place and the effects measured. The OMA communicated to Congress and U.S. EPA last year that the proposed standard is unnecessary, would hurt Ohio jobs, and may not be possible for Ohio to meet.

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The National Association of Manufacturers (NAM) will be submitting a letter to the EPA’s Clean Air Scientific Advisory Committee (CASAC) Panel which will be meeting twice in the next few weeks to discuss its technical recommendations to the agency on the proposal. Click here to sign the NAM’s letter asking CASAC to recommend that the current standard be left in place. New Ohio EPA Director at the OMA January 28, 2011

Scott Nally, Ohio EPA’s new director, will attend the OMA’s Environment Committee on February 16th. Director Nally will discuss his plans and priorities for the agency in 2011 and beyond. The committee will also hear reports on U.S. EPA’s climate change regulatory agenda and how parts of it have been implemented in Ohio. Email Judy Thompson at the OMA to register.

Federal Court Grants One Month Extension on Boiler MACT Rule January 21, 2011

The U.S. District Court in the District of Columbia ordered yesterday that the January 21 deadline for a final Boiler Maximum Achievable Control Technology (MACT) rule be extended by thirty days, rather than a longer delay requested by U.S. EPA.

U.S. EPA is under court order to promulgate a new boiler MACT rule due to litigation brought by the Sierra Club. The initial boiler MACT rule, promulgated in response to the litigation, came under harsh criticism from industry, which showed the economically devastating effect the rule have on many industrial facilities.

The effective industry response caused U.S. EPA to request a 15 month extension arguing it would be impossible to complete the rule by the January 21 deadline. The District Court did not agree.

In response to the order, U.S. EPA issued a press release, stating that a rule will become final by the new deadline and that it will be “significantly different” than the original proposal.

U.S. EPA to Delay GHG Regs for Biomass January 18, 2011

U.S. EPA announced yesterday that operations that use biomass or other biogenic sources will not be required to comply with greenhouse gas (GHG) regulations for three years. U.S. EPA took this position in order to encourage use of biomass as a renewable resource. In the interim, U.S. EPA plans to issue guidance to state and local permitting agencies about handling these sources.

Ohio EPA Issues Report Citing Mobile Sources as Problem January 07, 2011

Ohio EPA released this week a report that compiles data collected over the past nine years regarding “air toxics,” certain volatile organic compounds and heavy metals. The report shows that in all but a handful of isolated cases elevated levels of air toxics are from mobile sources such as cars and buses. This tracks with data the OMA cites in Retooling Ohio, which shows the progress manufacturing has made in environmental stewardship.

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"As the state plans to comply with ever tightening and burdensome federal environmental requirements, a broad approach that takes into account sources outside of the manufacturing sector will be essential," said OMA director, public policy, Kevin Schmidt. 01/07/2011

Ohio Adopts U.S. EPA Tailoring Rule January 07, 2011

Governor Strickland issued emergency rules last week that adopted U.S. EPA “tailoring rule.” The tailoring rule limits greenhouse gas (GHG) regulations to only those sources emitting more than 75,000 tons or 100,000 tons of carbon dioxide or carbon dioxide equivalents.

While this is the first time GHG’s are mentioned as a regulated compound in Ohio’s rules, the emergency rule was necessary because U.S. EPA put states on notice that failure to adopt the rule would result in emission sources as small as 250 tons being regulated. Regulation at this level would have brought in office buildings, dry cleaners, and other non-traditional sources. Ohio’s rule was crafted in a way to enable Ohio EPA to roll back regulations should the federal requirements regarding GHG’s cease.

Click here to read more regarding the tailoring rule’s application from OMA Connections Partner and law firm, Bricker & Eckler.

U.S. EPA Delays Portions of Mandatory GHG Reporting Rules January 07, 2011

U.S. EPA moved late last year to delay certain reporting obligations under the Greenhouse Gas (GHG) Reporting Rule related to confidential business information (CBI). The original proposal included all data elements in emission equations as non-confidential “emission data.” Traditionally, CBI determinations have been made on a case-by-case basis. Industry groups and the Federal Trade Commission commented that the release of such information could result in competitive disadvantages for some facilities and potentially lead to price collusion among others. Click here to read more from OMA Connections Partner, Squire Sanders.

Ohio “Unclassifiable” for NO2 December 17, 2010

Ohio EPA is seeking “unclassifiable” as the status for Ohio related to tighter standards on nitrogen dioxide (NO2). Ohio’s existing network of monitors for NO2 is small but has historically registered levels well within limits.

The new standard will require additional monitors and lower levels of NO2. Until the monitors can be placed and data collected, Ohio’s request will keep the state in compliance with regulations. U.S. EPA may reject Ohio’s request and require modeling for NO2 which could lead to increased regulations.

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The OMA supports environmental regulations based on sound science and sufficient data. As such, the OMA will be submitting comments at the December 27th hearing supporting Ohio EPA’s request. Contact Kevin Schmidt at the OMA if you have questions or would like to learn more about this issue.

OMA Requests Extension on Proposed Storm Water Permits December 10, 2010

The OMA, along with a number of other industrial groups, is issuing a letter this week on Ohio EPA’s proposal to replace the existing 36 page general permit for storm water discharges with a 171 page replacement. The replacement includes no less than 30 “sector specific requirements,” enhanced monitoring requirements and a raft of other regulatory obligations. The OMA’s letter asks for a 90-day extension of the comment period, which currently expires on December 16, so that manufacturers and other affected industries can evaluate the massive new permit. A fact sheet on the proposal prepared by Ohio EPA can be found here.

Contact Kevin Schmidt at the OMA at 614-629-6816 if you have questions or would like to learn how to submit comments on the proposal.

U.S. EPA Asks for Delay on Boiler MACT December 10, 2010

U.S. EPA petitioned the federal courts this week for an extension on proposed regulations regarding industrial boilers, process heaters and solid waste incinerators. The so called “Boiler MACT” proposal had been vigorously challenged by industry (see the OMA’s November 5 story) as unworkable and unattainable. Also, a group of senators recently sent a letter to the U.S. Department of Commerce requesting a study on the economic impact of the rule.

U.S. EPA’s recent extension request, if granted, will give the agency an additional 16 months to refine its proposal in response to industry’s concerns.

U.S. EPA Asks for More Time on Ozone Standards December 10, 2010

U.S. EPA petitioned the courts this week for more time to review, develop and implement stricter ozone standards. U.S. EPA is considering a new ozone standard between a range of 60 to 70 parts per billion (ppb), which was to be adopted this year.

As the OMA had previously reported and communicated to U.S. EPA, the proposed range would lead to punitive regulations in Ohio and is premature, as the current standard of 75 ppb has not been fully implemented, nor the results studied. Ohio's ground-level ozone concentrations have dropped nearly 40% since 1981 and continue to decline.

Read the OMA's Environmental Retooling Ohio to learn more about manufacturings' leadership on environmental improvement.

Ohio EPA Industrial Storm Water Permit Draft Open for Comment December 03, 2010

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Ohio EPA recently released its proposed general storm water permit for industrial activity. The current general permit, which expires on May 31, 2011, consists of 36 pages and contains broad, non-industry-specific permit requirements. The new proposal consists of 171 pages and is industry-specific adding both monitoring and effluent limitations. Compliance with the new permit requirements will add costs to industry and increase exposure to enforcement at a time when many Ohio manufacturers are still struggling. Ohio EPA is accepting comments on the draft proposal until December 23, 2010, and a public hearing on the proposal has been scheduled for December 16, 2010. OMA will be submitting comments on this proposal and its impact on manufacturers. Contact Kevin Schmidt to provide your insight and input.

This Week’s OMA Environment Committee Materials Available Online November 12, 2010

Meeting materials from this week's OMA Environment Committee are available. The group heard from John Hendricks of AEP Environmental Services regarding environmental issues common among manufacturing and utilities. Additionally, the committee discussed the recently released Best Available Control Technology guidance on greenhouse gas permitting. To engage on these issues, contact Kevin Schmidt at the OMA.

U.S. EPA Releases Vague Guidance on Greenhouse Gas Permitting November 12, 2010

U.S. EPA this week released guidance for the states in implementing new regulations on Greenhouse Gas (GHG) emissions in Prevention of Significant Deterioration (PSD) and Title V permits.

The guidance doesn’t offer much certainty for business, at all. It simply lays out a general process for permitting actions: 1) look at the technically feasible options, 2) evaluate cost, and 3) pick the option that achieves the best reductions within affordable limits. This process is open to widely varying interpretations of specific situations, causing productivity-draining litigation.

U.S. EPA did note in its guidance that energy efficiency is a viable option for reducing GHGs, as are carbon capture and sequestration. The OMA is working with the Ohio EPA on this particular matter.

Contact Kevin Schmidt at the OMA if you would like to learn more about this issue.

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Environment Legislation Prepared by: The Ohio Manufacturers' Association

Report created on February 25, 2011

HB10 REMEDIATION OF CONTAMINATED SITE (SEARS, B) To authorize refundable tax credits for the completion of a voluntary action to remediate a contaminated site and for the return of such sites to productive use, and to exempt persons through 2017 who have issued covenants not to sue under the Voluntary Action Program from certain fees and penalties for one year after the issuance of such a covenant.

All Bill Status: 3/2/2011 - House Ways and Means, (Fifth Hearing) 2/23/2011 - House Ways and Means, (Fourth Hearing) 2/16/2011 - House Ways and Means, (Third Hearing) 2/9/2011 - House Ways and Means, (Third Hearing) 2/2/2011 - House Ways and Means, (Second Hearing) 1/26/2011 - House Ways and Means, (First Hearing) 1/11/2011 - Referred to Committee House Ways and Means 1/11/2011 - Introduced

Comments: None More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_10 SB22 NPDES PERMITS SEWAGE SYSTEMS (SCHAFFER, T) To require the Director of Environmental

Protection to consider, to the extent allowable under the Federal Water Pollution Control Act, specified factors before issuing NPDES permits for sewerage systems, requiring and approving long-term control plans for wet weather discharges from sewerage systems, and enforcing provisions of that Act as applied to sewerage systems.

All Bill Status: 3/1/2011 - Senate Agriculture, Environment & Natural Resources, (Third Hearing) 2/22/2011 - Senate Agriculture, Environment & Natural Resources, (Second Hearing) 2/15/2011 - Senate Agriculture, Environment & Natural Resources, (First Hearing) 2/2/2011 - Referred to Committee Senate Agriculture, Environment & Natural Resources 2/1/2011 - Introduced

Comments: None More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_22

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COLUMBUS I CLEVELAND CINCINNATI-DAYTON

BRICKER & ECKLER LLP 100 South Third Street Columbus, Ohio 43215-4291 MAIN: 614.227.2300 FAX: 614.227.2390

www.bricker.com info@bricker.com

Frank L. Merrill 614.227.8871 fmerrill@bricker.com

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COUNSEL’S REPORT

Frank L. Merrill, Bricker & Eckler LLP, Counsel to the OMA

February 16, 2011

LEGISLATIVE A. Federal Legislators Move to Delay or Prohibit US EPA’s Regulation of Greenhouse Gas Emissions Three Republican lawmakers in the U.S. Congress have unveiled draft legislation to try to strip US EPA of its power to regulate greenhouse gases under the Clean Air Act. The proposed bill is being promoted by Rep. Fred Upton (R-Mich.), chairman of the House Energy and Commerce Committee, Sen. James M. Inhofe (R-Okla.), ranking Republican on the Senate Committee on Environment and Public Works, and Rep. Ed Whitfield (R-Ky.), chairman of the House Energy Subcommittee on Energy and Power. Their bill joins several other efforts in Congress to curtail or delay the agency’s plans to issue greenhouse gas regulations, rules that these opponents believe will raise energy costs, drive manufacturers offshore and strangle the economic recovery. The draft measure reverses the EPA’s landmark 2009 finding that greenhouse gases pose a threat to human health and the environment, and thus undercuts the rationale for any regulation of these substances. A different bill, proposed by Sen. John D. Rockefeller IV (D-W.V.) would force a two-year delay in any US EPA climate change regulation. The White House, however, has said that President Obama will veto any efforts to slow the agency’s plans for regulating greenhouse gases. ADMINISTRATIVE A. President Obama’s Executive Order for Regulatory Review On January 18, 2011, President Obama issued Executive Order 13563, “ Improving Regulation and Regulatory Review”, which requires federal agencies to review their rules to determine any ways to make the regulatory programs more effective or less burdensome in achieving the regulatory objectives. Most commentators have noted that the President’s attempt to take a more “cost-benefit” approach to regulations has been used by most past presidents with little success. A copy of the Executive Order can be found at 76 Fed. Reg. 3821 (Jan. 18, 2011).

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B. US EPA Activities of Note

1. PSD GHG Tailoring Rule As noted in previous Counsel’s Reports, US EPA issued its final rule bringing greenhouse gas emissions from stationary sources under the permitting programs of the Clean Air Act in May 2010. The 515-page final rule specifically “tailors” the requirements of the Clean Air Act to attempt to limit the number of facilities requiring permits under the New Source Review Prevention of Significant Deterioration (PSD) Title V programs. The rule officially went into effect on January 2, 2011. As indicated in the legislative update above, however, the long-term viability of the new rule remains in question because of growing congressional opposition to US EPA’s regulatory efforts in this area. To comply with the tailoring rule, Ohio EPA is proposing new Ohio Administrative Code (OAC) rules 3745-31-34 and 3745-77-11 to the Joint Committee on Agency Rule Review (JCARR). The new rules are intended to adopt standards for the state of Ohio that are the same as the federal tailoring rule and limit authority to permit greenhouse gases to levels established in the federally approved State Implementation Plan. As expected, following extended discussions between OMA and other business trade groups and members of the former administration, the rules include an automatic sunset provision if the federal rule is stayed or invalidated through legislative or legal action. The rules were adopted as emergency rules via Executive Order 2010-15S on December 30, 2010, to assure that Ohio would have rules on January 2, 2011, to match the federal requirements. The rule language, as proposed to the JCARR, will permanently adopt the emergency language with some minor changes for clarity. Ohio EPA held a public hearing on the new rules on February 11. More information on Ohio’s efforts to comply with the federal tailoring rule is available here: http://epa.ohio.gov/portals/47/nr/2011/january/TailoringHearing.pdf.

C. Ohio EPA Activities of Note 1. New Director at Ohio EPA Signals Different Approach to Regulation

In early January, new Ohio Governor John Kasich appointed Scott Nally, a former assistant commissioner in the Indiana Department of Environmental Management, to be the new director of Ohio EPA. Within days of the appointment, Kasich and Nally met with many of Ohio EPA’s 1,200 employees in Columbus to encourage them to make quick, “common sense” decisions on permitting issues. Gov. Kasich, Director Nally, and the new legal director of Ohio EPA Brian Cook have made clear that they want to speed up the permitting process when appropriate and increase transparency at the agency. On January 10, 2011, the Governor issued Executive Order 2011-01K, establishing the Common Sense Initiative, to attract and retain

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businesses and jobs and to reduce the regulatory burdens impacting same. (See copy attached or http://governor.ohio.gov/ExecutiveOrders.)

2. Nitrogen Dioxide NAAQS In late December 2010, OMA submitted written comments in support of Ohio EPA’s Draft 2010 Nitrogen Dioxide Standard Recommended Designations (“Draft NO2 Recommendations”). In his comments, Kevin Schmidt said OMA appreciates Ohio EPA’s efforts in addressing the new National Ambient Air Quality Standard (“NAAQS”) for NO2, and fully supports Ohio EPA’s recommendation that Ohio be designated “unclassifiable” until the appropriate NO2 monitoring data is available from a new and expanded network of NO2 monitors. The State of Ohio currently has three NO2 monitors located in Athens, Cuyahoga and Hamilton Counties. Although each of the three monitors meet the 2010 daily 1-hour primary NO2 standard of 53 parts per billion (“ppb”), US EPA’s final NO2 rule requires the installation of new NO2 monitors near major roads and population centers in urban areas. By January 2012, US EPA has directed all states to submit recommendations that designate these monitoring areas as either “attainment,” “nonattainment” or “unclassifiable.” The unclassifiable designation is anticipated for areas of the country with insufficient data available to determine compliance with the new NO2 standard. Because the new monitoring network in Ohio will not be able to provide sufficient NO2 monitoring data until 2016, the Draft NO2 Recommendations seek the “unclassifiable” designation for all counties in Ohio. OMA supports Ohio EPA’s recommendation, and believes that such an approach ensures that Ohio’s implementation of the new NO2 standard is based on sound science and detailed monitoring data. Doing so not only ensures Ohio’s compliance with US EPA’s new NO2 standard, but does so in a manner that prevents onerous regulation of the manufacturing industry, while ensuring the protection of human health and the environment. More information on the recommended designations is available here: http://www.epa.state.oh.us/dapc/SIP/NO2.aspx.

3. First Air Toxics Summary Report

On January 5, 2011, Ohio EPA issued the first Ohio statewide air toxics monitoring study. According to Ohio EPA, the report is designed to provide information to citizens regarding the measured levels of toxic pollutants in their area, as well as a basic assessment of risk from potential airborne exposure to those pollutants. The report includes ambient air toxics monitoring data results for VOCs and heavy metal compounds and covers a span of approximately nine years. For the report, Ohio EPA evaluated ambient (outdoor) air monitoring data from 34 air toxics monitoring sites located in 16 Ohio counties. The sites were chosen by Ohio EPA for various reasons, including as a result of citizen requests and Ohio EPA air toxic investigations.

In its press release, Ohio EPA indicated that 9 out of the 16 counties are within a risk range deemed acceptable (i.e., fewer than 1 in 10,000 additional cancers associated with

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constantly breathing an air pollutant), but the following 7 counties have a slightly greater than 1 in 10,000 risk for additional cancers: Columbiana, Hamilton, Jefferson, Marion, Montgomery, Scioto and Washington.

A copy of the report can be downloaded from Ohio EPA’s website.

4. Draft Industrial Storm Water Permit Available for Public Comment Ohio EPA provided public notice of a draft renewal National Pollutant Discharge Elimination System (NPDES) general permit relating to storm water discharges associated with industrial activities. This permit is a renewal of the Industrial Storm Water general permit issued in 2006, but closely mirrors U.S. EPA’s Multi-Sector General Permit (MSGP). The proposed new permit is much more extensive (171 pages) and requires monitoring and establishes limits for certain pollutants. The draft has not been well received by industry. Among other changes, the draft permit adds effluent limits for six industrial sectors, requires covered facilities to issue an annual report, adds quarterly benchmark monitoring requirements for nineteen industrial sectors during the first year of the general permit, and requires continued monitoring and control-measure modifications for facilities not meeting the industry-specific pollutant level until the benchmark is met. For impacted industrial sectors and facilities, Ohio EPA’s proposal will increase compliance costs and increase exposure to enforcement for noncompliance. Comments on the draft permit are due by February 28, 2011. More information on the draft permit is available here: http://epa.ohio.gov/dsw/permits/IndustrialStormWater_draft_GP_oct10.aspx.

5. Draft Surface Water Quality Rules Available for Public Comment Four interrelated water quality rule packages—covering water quality standards, antidegradation, Section 401 water quality certifications and stream mitigation—are out for interested party review. Following this initial public review and comment period, which ends on March 8, 2011, Ohio EPA expects to craft and move forward on smaller rule packages composed of selected rules and topics. Ohio EPA says that the revisions in the four rule packages are intended to accomplish a number of objectives, including improving clarity and understanding of the regulations, updating surface water standards to reflect the most recent US EPA guidance, updating the antidegradation rule to better protect high-quality waters, and reduce the time and work needed to issue permits, especially Section 401 water-quality certifications. More information on the rule packages is available here: http://epa.ohio.gov/Default.aspx?alias=epa.ohio.gov/dsw.

6. Great Lakes Compact The panel charged with devising a plan to implement the Great Lakes Compact finalized its report in mid-December 2010, but left key details about who should be subject to controversial permitting regulations up to the General Assembly. The 28-member panel, which included representatives of industry and environmental groups, could not agree on specifics as to who would need permits, but did agree that the water withdrawal permitting program should be

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limited to Ohio’s Lake Erie Basin (approximately 34 counties) rather than the entire state. Environmental groups pushed for thresholds of 1000 gallons daily in more environmentally sensitive stream watersheds to 2.5 million gallons for direct lake withdrawals. Industry recommended about 300,000 gallons a day up to 5.0 million gallons. The General Assembly will have to pass legislation to adopt implementation details. If the legislature does not act, the multi-state compact includes a provision that will impose a much lower regulatory threshold on Ohio on December 8, 2013.

JUDICIAL A. Federal Cases

1. American Electric Power Co. v. Connecticut (U.S. Supreme Court) The U.S. Supreme Court granted a petition in December 2010 to hear this case, which presents the question of whether federal law allows states and private parties to sue utilities for contributing to global warming. The issues in the case include: (1) Whether states and private parties may seek emissions caps on utilities for their alleged contribution to global climate change; and (2) whether a cause of action to cap carbon dioxide emissions can be implied under federal common law. Oral argument in the case is set for April 19. Justice Sonia Sotomayor, who considered the case as an appeals court judge prior to being elevated to the Supreme Court, has recused herself from the case.

2. Sierra Club v. Jackson, No. 01-1537 (D.D.C. Jan. 20, 2011) The U.S. District Court for the District of Columbia ordered US EPA to promulgate emission standards for area source boilers, major source boilers, and commercial and institutional solid waste incineration units by February 21, 2011. In March 2006, the court ordered EPA to fulfill its statutory duties regarding the promulgation of certain emission standards by June 15, 2009. Since then, the court has granted a number of EPA’s motions to extend the deadlines, the most recent deadline being January 21, 2011. US EPA issued its proposed maximum achievable control technology (MACT) rule last April, but in light of the comments it received, the Agency wanted to extend the deadline until April 13, 2012, so it could re-propose the rules. The court denied its request. It held that EPA failed to demonstrate that it would be impossible to promulgate “substantively adequate regulations” by the January 21, 2011, deadline. The court reasoned that although much of the time-consuming rulemaking process for the three air rules may have been appropriate under normal circumstances, EPA engaged in discretionary delay in the face of a congressional directive. It also noted that the policy arguments EPA raised have no place in a case where Congress has mandated expedition, and its statutorily mandated deadlines have long since passed. Accordingly, the court ordered EPA to issue the rules by February 21, 2011.

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B. State Cases

1. State ex rel. Cordray v. The Shelly Holding Co. et al., 10th Dist. (Franklin County)

Shelly Material, Inc., Allied Corporation, Inc., and Stoneco, Inc. (“Shelly”) have businesses throughout Ohio, and their operations include limestone, concrete production, rail and water sites, as well as 44 facilities for hot mix asphalt, which is used in paving. Ohio EPA, through the Ohio Attorney General (“the State”), filed a 20 count civil complaint against Shelly alleging violation of air pollution control law and hazardous waste law relating to 27 asphalt plants, 30 portable generators, and one liquid asphalt terminal, all of which Shelly owned, operated, or both. The case was tried in Franklin County before Judge Charles A. Schneider. Shelly conceded liability on some of the claims in the complaint, but the remaining claims were resolved by the court in a lengthy trial. The court found Shelly liable on 12 of the 20 counts in the complaint, and assessed a civil penalty of $350,123.52 against Shelly. The State appealed the trial court’s decision to the 10th District Court of Appeals. The State raised four issues on appeal, but the most significant involved calculation of civil penalties. Specifically, the State alleged that Shelly exceeded air pollution emission limitations as set forth in the PTIs at its hot mix asphalt plants. During the trial, the State introduced evidence that Shelly had failed multiple stack tests. Based on this evidence, the trial court only determined that Shelly exceeded the PTI limits on the days the stack tests were conducted. On appeal, the State argued that Shelly should be liable for civil penalties both on the days the stack tests were conducted, and the days in between each of the stack tests. The appellate court agreed with the State, and found that civil penalties should be assessed for each day in between the stack tests because “to hold otherwise would allow a violator to continue the harmful conduct at least until the next stack test, knowing no penalty will be imposed for the interim violations.” The appellate court also largely agreed with the State on the other three issues on appeal, holding that a source’s potential to emit must be based on maximum design capacity in accord with Ohio Adm. Code 3745-31-01(VVVV), Shelly was required to have a PTI at one of its plants for modifications because it was originally constructed after 1974 and thus not exempt under the grandfather rules, and Shelly violated PTI rules because it was an “operator” of the fugitive emissions sources at a limestone quarry which it did not own, but applied for a PTI at as an operator and/or owner. The appellate court remanded the case to the trial court to re-address certain violations and re-calculate the civil penalty.

2. Village of Harbor View v. Jones, 10th Dist. (Franklin County)

This recent decision involves the FDS Coke Plant and its continuing saga to build a coke plant in Oregon, Ohio. In 2004 the Director issued FDS a PTI for the coke plant, which was appealed to ERAC by both Sierra Club and Harbor View. While the appeal was pending, the Director modified the PTI, as allowed under Am. Sub. H.B. 119 (eff. 9/29/07). Appellants argued that the PTI expired before the modification because FDS had not “entered into a binding

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contractual obligation to undertake and complete within a reasonable time a continuing program of installation”, as required by former OAC 3745-31-06(A). ERAC granted FDS’ motion for summary judgment on the issue finding that a binding contract had been entered into prior to the termination of the PTI. At the ERAC level, the dispute centered around the discovery of the contracts at issue and affidavits in support of same. Numerous motions to compel and motions for summary judgment were filed, and re-dacted portions of the contracts were finally provided to Appellants under a protective order, and complete copies were provided to ERAC for an in camera review. On appeal, Appellants argued that they were deprived of due process of law because they were never provided with the entire contracts that ERAC found to be “binding contractual obligations”. The Court of Appeals held that ERAC did not err in finding that FDS had entered into “binding contractual obligations”. The court, however, sustained Appellants’ claim that FDS did not show that FDS contracted to “undertake and complete within a reasonable time” the required program of installation. The court remanded the matter to ERAC for a determination and finding on the “reasonable time” issue. This decision includes some great analysis of what constitutes a “binding contractual obligation” to satisfy the PTI requirements to avoid termination. The decision also involves an intriguing twist on the invalidation of a crucial affidavit to support FDS’ motion for summary judgment. FDS relied upon two contracts to demonstrate that it had entered into “binding contractual obligations”. The contract with FDS’ construction manager was deemed not be in evidence by the court because the supporting affidavits were invalid. The affiant noted that she was in Illinois when she made the sworn statement or affidavit, but an Indiana notary public took and certified her affidavit. The court noted that under Indiana law the jurisdiction of notary publics qualified in Indiana extends only to that state’s borders.

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To: OMA Government Affairs Committee From: Kevin Schmidt, OMA Staff Re: OMA Healthcare and HR PPS Report Date: 3/2/2011 A number of pieces of legislation have been introduced that may affect health care plans and general human resource policies. You will find a summary of the issues below. Abortion The newly elected conservative nature of the Ohio General Assembly has seen a number of abortion related bills introduced. HB 7 – reinstates with modification provisions regulating post-viability abortions; HB 63 – Regards what a court must look at when granting consent for a minor to have an abortion; HB 78 – Prohibits post-viability abortions and places conditions on the defense of protecting the mother’s health; and HB 79 – Prohibits qualified health plans for providing coverage for certain abortions. National Health Care Law A number of bills and resolutions have been introduced that would serve to undermine the individual mandate provision of the Nationwide Patient Care and Protection Act. While these bills have had some hearings, it is unclear the General Assembly will pass them at this time. Compensatory Time Off HB 61 and SB 62 have been introduced and would grant private employers the ability to provide for comp time instead of overtime pay. The bill has been crafted to allow employers to offer it, but only allow employees the right to exercise it. Comp time is awarded at 1.5 hours off per hour of overtime worked. Unions and other employee representatives will likely oppose the bill and view it as a vehicle to undermine overtime pay.

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OMA News & Analysis – Human Resources

Facebook Firing Settled February 15, 2011

In November 2010 we reported the decision of the National Labor Relations Board (NLRB) to prosecute American Medical Response (AMR) for allegedly terminating an employee who posted negative remarks about her supervisor on her personal Facebook page from her home computer on her personal time. Because the employee’s comments drew supportive postings from co-workers, the NLRB asserted that the employee had engaged in concerted protected activity and had been unlawfully terminated in violation of the National Labor Relations Act. The NLRB also contended that AMR’s blogging and internet policy was unlawfully overbroad. Read more. From OMA Connections Partner, Bricker & Eckler LLP

DE-unionization Continues

The Bureau of Labor Statistics of the U.S. labor department released statistics showing a continued de-unionization of the U.S. and Ohio workforce.

Of the 4.8 million wage and salary workers in Ohio, 13.7% were union members in 2010. That’s a decrease from 14.2% in 2009.

In 2000, 17.4% of the state’s then 5 million employees were union members; in 1990, 20% of Ohio’s workforce was unionized.

Ohio’s workforce is more heavily unionized than is the nation’s. In 2010, 11.9% of the country’s 124 million workers were union members, a decrease from 12.3% in 2009.

Nationally, union membership in the public sector was 36.2%, much higher than the 6.9% rate for the U.S. private sector workforce. Employees in education, training, and library occupations had the highest rate at 37.1%.

North Carolina had the country’s lowest rate of union membership at 3.2%, followed by Arkansas and Georgia at 4%, Louisiana at 4.3% and Mississippi at 4.5%. New York had the highest rate of unionization at 24.2%, followed by Alaska at 22.9%, Hawaii at 21.8%, Washington at 19.4%, and California at 17.5%.

NLRB and OSHA are in Activist Mode January 28, 2011

OMA members that participated in a OMA webinar this week about the focus of the National Labor Relations Board (NLRB) and the Occupational Safety & Health Administration (OSHA), learned that it is “virtually certain” that employers will need to post a new poster that advises employees of their rights to organize.

The webinar was presented by attorneys from OMA Connections Partner, Jackson Lewis. According to Jackson Lewis attorney, Vince Tersigni, “The NLRB is accepting public comment on the new poster requirement through mid-February and the rule could become final this coming summer.”

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Also, Jackson Lewis attorney, Pedro Forment, updated members about two OSHA emphasis programs, record keeping and annual verification of lockout-tag out procedures. Forment cited two record keeping violation cases that resulted in million dollar-plus fines to dispel the notion that record keeping violations are considered by OSHA to be minor infractions.

The employment law attorneys from OMA Connections Partner, Jackson Lewis LLP, have compiled the latest information about the plans being made by the National Labor Relations Board (NLRB) and the Occupational Safety and Health Administration (OSHA). The focus of these federal regulatory bodies has an important impact on manufacturers. One-hour recorded webinar.

e convenience of OMA members, OMA creates a library of commonly used human resources forms, including an employment application, vacation schedule, health questionnaire and more. The forms are reviewed annually by the OMA’s law firm, Bricker & Eckler LLP, so members can use them with confidence.

The forms are free and always available on the OMA’s web site. Members are urged to carefully read all the special instructions for use in order to comply with applicable laws.

Ohio Minimus Changes Effective January 1, 2011 January 07, 2011

Legislation provides for annual increases to state minimum wage rates based on increases in the U.S. Consumer Price Index and inflation. As a result, the Ohio regular minimum wage increased from $7.30 to $7.40 an hour, and the minimum wage for tipped employees increased from $3.65 to $3.70 an hour as of January 1, 2011.

The OMA signed onto a settlement agreement with AEP this week. The settlement included the unresolved 2009 rate issues. The settlement contains provisions that require AEP to invest at least $43 million dollars in projects that will directly benefit AEP’s Ohio customers. With that figure as a floor, it is likely that customers will realize in excess of $73 million.

Parties in the case had pegged AEP’s liability anywhere between $23 and $156 million, a wide discrepancy with PUCO staff favoring the lower ranges. In recent weeks it has become clear that the PUCO desires to resolve this case quickly. Moreover, PUCO staff had refrained from declaring whether direct refunds were due to customers at all, adding to the significant uncertainty over possible direct refunds to customers.

With these considerations in mind, the OMA achieved a settlement that benefits manufacturers, rather than spending unnecessary money, time and resources on attorneys’ litigation theories. Importantly, the settlement does not limit the OMA from challenging AEP’s earnings for 2010 or 2011, nor does the settlement set precedent for other utilities who might be exposed to the test.

A full summary of the settlement can be found here. Coverage of the settlement in the Columbus Dispatch can be found here.

Electricity intensive OMA members are encouraged to participate in subsequent proceedings by joining the OMA Energy Group. Click here for information on an upcoming webinar discussing

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the OMA Energy Group. Or, call me to set up a time to talk about how your company can protect your energy management needs via the OMA Energy Group.

Advancing Union Friendly Measures January 07, 2011

OMA Connections Partner and law firm, Bricker & Eckler LLP, reports that the Office of General Counsel of the NLRB recently issued two memoranda to NLRB Regional Directors committing to "make the principle of employee free choice meaningful” during union organizing campaigns. The NLRB proposes more stringent "remedies” be made available to employees and unions in response to employer unfair labor practices committed during organizing campaigns.

To keep members informed about potential new compliance requirements and best labor management practices, OMA has arranged several webinar learning events: NLRB and OSHA Update: What are these federal regulatory bodies focused on? on January 25, and Strike Planning– Create or Strengthen Your Plan on February 16.

NLRB Advancing Union Friendly Measures January 07, 2011

OMA Connections Partner and law firm, Bricker & Eckler LLP, reports that the Office of General Counsel of the NLRB recently issued two memoranda to NLRB Regional Directors committing to "make the principle of employee free choice meaningful” during union organizing campaigns. The NLRB proposes more stringent "remedies” be made available to employees and unions in response to employer unfair labor practices committed during organizing campaigns.

To keep members informed about potential new compliance requirements and best labor management practices, OMA has arranged several webinar learning events: NLRB and OSHA Update: What are these federal regulatory bodies focused on? on January 25, and Strike Planning– Create or Strengthen Your Plan on February 16.

NLRB Proposes Rule Requiring Posting of NLRA Rights January 03, 2011 The National Labor Relations Board has submitted a Notice of Proposed Rulemaking to require employers to notify employees of their rights under the National Labor Relations Act. Private sector employers would be required to post the notice of employee rights where other workplace notices are typically posted, and if the employer primarily communicates with employees via e-mail or other electronic means, the notice would be required to be posted electronically, too. Read more about this proposed rule in the latest Bricker & Eckler Human Resources Bulletin. From OMA Connections Partner, Bricker & Eckler LLP

Gun B ill Stalls Out December 17, 2010

While the Ohio Senate may still meet next week to act upon appointments made by outgoing Governor Ted Strickland, the Ohio General Assembly has all but completed work for the year. Among the 11th hour legislative issues rumored for passage was a bill to relax restrictions on carrying firearms.

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The OMA reported on December 3 of the possibility that the bill could be amended to limit employers' ability to regulate guns on work place premises. The amendment and the bill were not acted upon.

“Looking forward to the next legislative session, it’s important for manufacturers to bear in mind that lawmakers are generally supportive of expanding gun rights. Employers that choose to regulate firearms at the work place are advised to highlight the issue with your state representative and state senator,” advises the OMA’s Ryan Augsburger.

Employee or Contractor? Know the Difference and Be Prepared December 17, 2010

This bill failed, but watch for it coming back next session:

One of the last bills considered by the Ohio House of Representatives before completing legislative business was HB 523, which would have altered state employment law and redefined “employee,” which would have had ramifications in pay and benefits, as well as workers' compensation, unemployment insurance, and tax reporting.

It’s easy to make mistakes when it comes to wage and hour law and enforcement. OMA’s Connection Partner, Jackson Lewis, will be presenting a webinar on this topic for OMA members in the first quarter of 2011.

To be sure you receive the promotion, go to My OMA and enroll in the Human Resources Management Community. There is no extra charge and you’ll be sure to receive all OMA communications for human resources managers.

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Human Resources, Health Care & Employment Law Legislation Prepared by: The Ohio Manufacturers' Association

Report created on February 25, 2011

HB7 POST-VIABILITY ABORTIONS (FENDE, L) To revise the criminal laws governing post-viability abortions.

All Bill Status: 2/2/2011 - House Health and Aging, (First Hearing)

1/11/2011 - Referred to Committee House Health and Aging 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_7 HB11 PATIENT PROTECTION AND AFFORDABLE CARE ACT (SEARS, B) To prohibit state departments

and agencies from implementing or enforcing a provision of the federal Patient Protection and Affordable Care Act without meeting certain conditions.

All Bill Status: 2/23/2011 - House Health and Aging, (Second Hearing) 2/2/2011 - House Health and Aging, (First Hearing) 1/11/2011 - Referred to Committee House Health and Aging 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_11 HB61 COMPENSATORY TIME OFF (THOMPSON, A) To give private employers the option to offer and

employees the option to accrue and use compensatory time off in lieu of monetary overtime compensation.

All Bill Status: 2/24/2011 - SUBSTITUTE BILL ACCEPTED & REPORTED OUT, House Economic and Small Business Development, (Fourth Hearing) 2/17/2011 - House Economic and Small Business Development, (Third Hearing) 2/10/2011 - House Economic and Small Business Development, (Second Hearing) 2/3/2011 - House Economic and Small Business Development, (First Hearing) 2/1/2011 - Referred to Committee House Economic and Small Business Development 1/26/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_61 HB63 ABORTION - PREGNANT MINOR (YOUNG, R) To revise the procedures governing a hearing by

which a court may permit a pregnant minor to have an abortion and to require a court to make its findings with respect to such a hearing by clear and convincing evidence.

All Bill Status: 3/2/2011 - House Health and Aging, (Third Hearing) 2/23/2011 - House Health and Aging, (Second Hearing) 2/9/2011 - House Health and Aging, (First Hearing) 2/1/2011 - Referred to Committee House Health and Aging 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_63 HB78 POST VIABILITY ABORTIONS (UECKER, J) To review the criminal laws governing post-viability

abortions.

All Bill Status: 3/2/2011 - House Health and Aging, (Third Hearing) 2/23/2011 - House Health and Aging, (Second Hearing) 2/16/2011 - House Health and Aging, (First Hearing) 2/2/2011 - Referred to Committee House Health and Aging 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_78 HB79 INSURANCE COVERAGE - ABORTIONS (BUBP, D) To prohibit qualified health plans for providing

coverage for certain abortions. All Bill Status: 3/2/2011 - House Health and Aging, (Third Hearing)

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2/23/2011 - House Health and Aging, (Second Hearing) 2/16/2011 - House Health and Aging, (First Hearing) 2/2/2011 - Referred to Committee House Health and Aging 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_79 HB85 HEALTH INSURANCE (HACKETT, R) To prohibit requiring an individual to obtain or maintain health

insurance.

All Bill Status: 2/23/2011 - House Health and Aging, (Second Hearing) 2/16/2011 - House Health and Aging, (First Hearing) 2/2/2011 - Referred to Committee House Health and Aging 2/2/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_85 HB125 ABORTION (WACHTMANN, L) To generally prohibit an abortion of an unborn human individual with

a detectable fetal heartbeat.

All Bill Status: 3/2/2011 - House Health and Aging, (First Hearing) 2/24/2011 - Introduced

More Information: No link available HCR3 HEALTH COVERAGE TAX CREDIT (O'BRIEN, S) To request the members of the United States

Congress to reauthorize and continue the Health Coverage Tax Credit (HCTC) enhancements including provisions related to the monthly reimbursement program, the qualified family members program, and Voluntary Employee Beneficiary Associations (VEBAs).

All Bill Status: 2/10/2011 - Referred to Committee House Finance and Appropriations 2/10/2011 - Introduced

More Information: http://www.legislature.state.oh.us/res.cfm?ID=129_HCR_3 HJR2 HEALTH CARE COVERAGE (MAAG, R) To preserve the freedom of Ohioans to choose their health

care and health care coverage.

All Bill Status: 2/23/2011 - House Health and Aging, (Second Hearing) 2/9/2011 - House Health and Aging, (First Hearing) 2/2/2011 - Referred to Committee House Health and Aging 2/2/2011 - Introduced

More Information: http://www.legislature.state.oh.us/res.cfm?ID=129_HJR_2 SB30 EMPLOYMENT DISCRIMINATION CREDIT HISTORY (TAVARES, C) To specify that discrimination

by an employer against any person because of the person's credit history is an unlawful discriminatory practice under the Ohio Civil Rights Law.

All Bill Status: 3/2/2011 - Senate Judiciary - Civil Justice, (First Hearing) 2/23/2011 - Senate Judiciary - Civil Justice, (First Hearing) 2/2/2011 - Referred to Committee Senate Judiciary - Civil Justice 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_30 SB35 MOBILE DEVICE OPERATION MOTOR VEHICLE (TAVARES, C) To prohibit driving a vehicle while

using a handheld or manually operated mobile communication device and to establish the violation as a secondary traffic offense.

All Bill Status: 2/2/2011 - Referred to Committee Senate Highways & Transportation 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_35 SB55 HEALTH INSURANCE PAYMENTS (TAVARES, C) To prohibit health insurers from denying payment

for a service during or after the performance of the service if the insurer provided prior written authorization for the service.

All Bill Status: 2/2/2011 - Referred to Committee Senate Insurance, Commerce &

Labor 2/1/2011 - Introduced

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More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_55 SB62 COMPENSATORY TIME OFF (BEAGLE, B) To give private sector employers the option to offer and

employees the option to accrue and use compensatory time off in lieu of monetary overtime compensation.

All Bill Status: 2/16/2011 - Referred to Committee Senate Insurance, Commerce &

Labor 2/8/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_62 SJR1 HEALTH CARE COVERAGE (GRENDELL, T) To preserve the freedom of Ohioans to choose their

health care and health care coverage.

All Bill Status: 2/2/2011 - Referred to Committee Senate Insurance, Commerce &

Labor 2/2/2011 - Introduced

More Information: http://www.legislature.state.oh.us/res.cfm?ID=129_SJR_1

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MEMORANDUM To: Ryan Augsburger Managing Director of Public Policy Services The Ohio Manufacturer’s Association From: Betsy A. Swift, Esq. Elizabeth C. Stock, Esq. Bricker & Eckler LLP Date: February 16, 2011 Re: Analysis of House Bill 61

Introduction

What follows is a brief overview of HB 61, introduced in the Ohio House on January 26, 2011. In sum, the bill permits certain smaller1 private employers to award compensatory time off in lieu of the otherwise required monetary overtime compensation for time worked in excess of 40 hours per work week. Currently, compensatory time is only available to public employers. This proposed option for private employers, however, is subject to various conditions, including that, where no applicable collective bargaining agreement exists, the employee must initiate the request to receive compensatory time in lieu of overtime and affirm his/her election in writing. Generally, we view HB 61 as favorable to those smaller Ohio manufacturers and other businesses covered by the bill, in that it offers them added flexibility for compensating employees who work overtime. In the event this legislation were to pass, however, we would recommend that covered employers exercise caution in allowing employees to accrue compensatory time in lieu of overtime so as not to run afoul of the various restrictions and prohibitions associated therewith.

Bill Summary

Presently, both the federal Fair Labor Standards Act (FLSA) and Ohio law require that all covered private employers pay their employees overtime compensation at a rate of 1.5 times the employee’s regular rate of pay for hours worked in excess of 40 in one work week. House Bill 61 gives employees of some private employers the option of electing to receive up to 240 hours of compensatory time off (at a rate of 1.5 hours for each hour worked in excess of 40 in a work week) in lieu of overtime compensation.

1 As discussed below, the bill would apply to employers who have between $150,000 and $500,000 annual gross volume of sales made or business done.

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In order for it not to conflict with the FLSA, HB 61 would appear to apply only to private employers who are subject to Ohio law but not subject to the FLSA, meaning employers whose annual gross volume of sales made or business done is at least $150,000, but less then $500,000.2 For those employers for whom compensatory time would be an available option under HB 61, the following restrictions and requirements would also apply:

1. CBA Terms Control: If employees are covered by a collective bargaining agreement, the agreement’s terms control.

2. If No CBA, Employee Must Initiate Request: For employees not covered by a

collective bargaining agreement, the employee must initiate a request to receive compensatory time prior to performing the work, the employee must affirm in writing that he/she initiated the request, and the employer must keep a record of that written request.

3. Use Within Reasonable Period: Employers must permit an employee to use

accrued compensatory time within a reasonable period (undefined) after the employee requests such use, provided the requested use does not unduly disrupt the operations of the employer.

4. Annual Pay Out for Unused Time: On an annual basis, employers must pay out

any unused compensatory time that the employee accrued during the preceding year (employers can elect to pay out unused compensatory time in excess of 80 hours on a more frequent basis, provided they provide at least 30 days notice to the employee).

5. Notice to Employee of Discontinuation of Comp. Time: The employer must

provide at least 30 days advance notice of its intent to discontinue providing compensatory time in lieu of overtime.

6. Employee Option to Demand Overtime Payment: At any time, an employee may

withdraw an agreement to accrue compensatory time and request payment for unused compensatory time, and the employer must pay out the unused compensatory time within 30 days.

7. Pay Out at Termination: The employer must pay an employee for accrued but

unused compensatory time upon voluntary or involuntary termination.3 2 HB 61 applies only to private, not public, employers. The FLSA, however, provides a similar compensatory time alternative to certain public employers. Individuals employed by a contractor or subcontractor to perform labor or provide services to construct, alter, erect, improve, repair, demolish, remove, dig, or drill any part of a structure or improvement are also excluded from coverage under HB 61. 3 All payouts for accrued, but unused compensatory time, whether on termination, at year-end, or otherwise, are at the regular rate of pay received by the employee when the compensatory time was earned.

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8. Non-Interference Provision: Employers, who provide compensatory time off to employees, would be prohibited from, directly or indirectly, intimidating, threatening, or coercing, or attempting to intimidate, threaten, or coerce, or terminating or attempting to terminate an employee for the purposes of interfering with the employee’s rights to request or not request compensatory time off in lieu of overtime compensation or requiring the employee to use compensatory time off.

9. Penalties for Interference With Employee Rights: In addition to other civil and

criminal penalties that may be imposed for failure to pay overtime wages, an employer who violates the non-interference provision is guilty of a third degree misdemeanor and is liable for the sum of the following amounts: (1) the employee’s regular rate of pay at the time the compensatory time was earned multiplied by the number of unused hours of compensatory time involved in the violation, (2) the employee’s regular rate of pay at the time the compensatory time was earned multiplied by the total hours of compensatory time involved in the violation, and (3) costs and reasonable attorney’s fees.

Pros and Cons

The legislation proposed by HB 61 is generally positive for Ohio manufacturers and other businesses and, in fact, is supported by the Ohio Chamber of Commerce. Significantly, the bill creates an overtime compensation option (but not a requirement) for covered Ohio businesses, which is presently unavailable. Opposition to the bill is likely to come from pro-employee organizations, who argue that the bill somehow allows employers to avoid paying overtime to employees. Such arguments, however, are largely unfounded, given the bill’s requirement that compensatory time is only an option if requested by the employee as well as its broad non-interference provision. Indeed, the exposure to potential interference claims by employees and harsh penalties associated therewith are aspects of the bill that manufacturers may want to seek to change; for, if the bill were to pass as is, the risks associated with this new potential claim by disgruntled employees may, for some, outweigh the benefits associated with the compensatory time off option. Similarly, in order for manufacturers to have a more meaningful alternative to overtime compensation, they may look to change the provision of the bill that only allows employers to exercise the compensatory time option upon the employee’s request. Please let us know if you have any questions or would like to discuss the matter further.

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PUBLIC POLICY REPORT – SAFETY & WORKERS’ COMP

TO: OMA Government Affairs Committee FROM: Ryan AugsburgerDATE: March 2, 2011 SUBJ: Safety & Workers’ Compensation Update

Overview Following his inauguration, Governor Kasich appointed former state senator Steve Buehrer as administrator of the Ohio Bureau of Workers’ Compensation (BWC). At the Industrial Commission (IC), the agency charged with adjudicating workers’ compensation claim disputes, Commission member Jodie Taylor was designated Commission chair, replacing Gary DiCeglio, who remains the labor representative on the Commission. Senior staff changes followed. Workers’ Compensation is always a hot political issue and so was campaign rhetoric of last year. It’s too early to say whether to expect far-reaching changes to the BWC and IC systems. The BWC and IC have free-standing budget legislation that is expected to be introduced this week. Usually this legislation is fast-tracked. The budget can be a vehicle for larger policy priorities.

Bureau of Workers’ Compensation Under the Strickland Administration, the BWC had been largely focused on implementation of actuarial studies to improve programs and policies that impact both state fund and self-insured employers. BWC policy changes implemented for 2009/2010 and 2010/2011 are being carried over for 2011/2012. The drug-free safety and deductible programs, group rating reforms, etc., are all staying intact for the 2011/12 plan year. The rate-making revisions were controversial even though the reforms were actuarially justified. A big question now is: will the corrected rate structure remain or will it be reversed or otherwise modified? Group-rated employers who saw their rates increase together with third party administrators and their group rating sponsors generally opposed the reforms.

Four new members were just appointed the BWC Board of Directors by Governor Kasich. They will help decide if rates should be mathematically correlated with risk. Rate reforms contributed to base rates at their lowest level in decades, enhancing competitiveness. The BWC Board acted last year to maintain the maximum group rating discount of 65%, with a graduated scheduled of break-even factors to further true up the discount levels; the effective top discount is 51%. Self-Insurance (SI) Reserving Revised Work was completed late last year on a policy shift to improve the soundness of the Self Insured Employers Guaranty Fund (SIEGF). The fund pays for residual claims coming from bankrupt firms. It has been a ‘pay as you go’ system and according to the Deloitte study, the SIEGF is exposed to greater risk than prudent.

Member representatives from the OMA, OSIAA and Ohio Chamber of Commerce formed a stakeholder group of self-insured company risk managers over a year ago. That group advised the BWC on alternative solutions for improving the financial issues and has supported reserving and security changes that are now being implemented. The work group is seeking a more formal structure for SI oversight, including adding an SI committee to the Board.

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Legislative Developments / Outlook Aside from the BWC and IC budget legislation, only a couple bills are being talked about. They have not yet been introduced.

Privatization / Competition: A legislative proposal to allow insurance companies to provide workers’ compensation coverage was introduced last session. Representative Todd Snitchler has re-drafted a version of his bill from last session. He was recently appointed to the Governor’s Cabinet to lead the Public Utilities Commission and will be leaving the House.

Representatives Peterson and Sears are expected to take over the bill. Large out-of-state insurers are driving the bill. The powerful domestic (meaning intra-Ohio) insurance community is vigilantly watching. While some Ohio insurers could easily compete in the WC market, they are more likely concerned about losing market share to large insurers from out of state.

The business community has been slow to embrace the change, potentially because there is no good data available to model the effects.

A coalition financed by the out-of-state insurers has cloaked itself as a good government reform entity. It was actively approaching employers to join its cause during late 2010. A solicitation for money might follow. Don’t be fooled. Continue to engage with the OMA Safety and Workers’ Compensation Committee to follow and drive BWC system changes. The OMA has produced a RetoolingOhio on workers’ compensation for members to use to understand the current environment and to use to advocate for meaningful cost-cutting reforms to drive down premium. Loss of Use Benefit Payment: Representative Anne Gonzales (R – Westerville) will soon introduce legislation to reverse a rule changed by the BWC in 2010 to require lump sum payments for loss of use injuries.

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PUBLIC POLICY REPORT – SAFETY & WORKERS’ COMP

TO: OMA Government Affairs Committee FROM: OMA Staff DATE: March 2, 2011 SUBJ: Safety & Workers’ Compensation Update

Overview Following his inauguration, Governor Kasich appointed former state senator Steve Buehrer as administrator of the Ohio Bureau of Workers’ Compensation (BWC). At the Industrial Commission (IC), the agency charged with adjudicating workers’ compensation claim disputes, Commission member Jodie Taylor was designated Commission chair, replacing Gary DiCeglio, who remains the labor representative on the Commission. Senior staff changes followed. Workers’ Compensation is always a hot political issue and so was campaign rhetoric of last year. It’s too early to say whether to expect far-reaching changes to the BWC and IC systems. The BWC and IC have free-standing budget legislation that is expected to be introduced this week. Usually this legislation is fast-tracked. The budget can be a vehicle for larger policy priorities.

Bureau of Workers’ Compensation Under the Strickland Administration, the BWC had been largely focused on implementation of actuarial studies to improve programs and policies that impact both state fund and self-insured employers. BWC policy changes implemented for 2009/2010 and 2010/2011 are being carried over for 2011/2012. The drug-free safety and deductible programs, group rating reforms, etc., are all staying intact for the 2011/12 plan year. The rate-making revisions were controversial even though the reforms were actuarially justified. A big question now is: will the corrected rate structure remain or will it be reversed or otherwise modified? Group-rated employers who saw their rates increase together with third party administrators and their group rating sponsors generally opposed the reforms.

Four new members were just appointed the BWC Board of Directors by Governor Kasich. They will help decide if rates should be mathematically correlated with risk. Rate reforms contributed to base rates at their lowest level in decades, enhancing competitiveness. The BWC Board acted last year to maintain the maximum group rating discount of 65%, with a graduated scheduled of break-even factors to further true up the discount levels; the effective top discount is 51%. Self-Insurance (SI) Reserving Revised Work was completed late last year on a policy shift to improve the soundness of the Self Insured Employers Guaranty Fund (SIEGF). The fund pays for residual claims coming from bankrupt firms. It has been a ‘pay as you go’ system and according to the Deloitte study, the SIEGF is exposed to greater risk than prudent.

Member representatives from the OMA, OSIAA and Ohio Chamber of Commerce formed a stakeholder group of self-insured company risk managers over a year ago. That group advised the BWC on alternative solutions for improving the financial issues and has supported reserving and security changes that are now being implemented. The work group is seeking a more formal structure for SI oversight, including adding an SI committee to the Board.

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Legislative Developments / Outlook Aside from the BWC and IC budget legislation, only a couple bills are being talked about. They have not yet been introduced.

Privatization / Competition: A legislative proposal to allow insurance companies to provide workers’ compensation coverage was introduced last session. Representative Todd Snitchler has re-drafted a version of his bill from last session. He was recently appointed to the Governor’s Cabinet to lead the Public Utilities Commission and will be leaving the House.

Representatives Peterson and Sears are expected to take over the bill. Large out-of-state insurers are driving the bill. The powerful domestic (meaning intra-Ohio) insurance community is vigilantly watching. While some Ohio insurers could easily compete in the WC market, they are more likely concerned about losing market share to large insurers from out of state.

The business community has been slow to embrace the change, potentially because there is no good data available to model the effects.

A coalition financed by the out-of-state insurers has cloaked itself as a good government reform entity. It was actively approaching employers to join its cause during late 2010. A solicitation for money might follow. Don’t be fooled. Continue to engage with the OMA Safety and Workers’ Compensation Committee to follow and drive BWC system changes. The OMA has produced a RetoolingOhio on workers’ compensation for members to use to understand the current environment and to use to advocate for meaningful cost-cutting reforms to drive down premium. Loss of Use Benefit Payment: Representative Anne Gonzales (R – Westerville) will soon introduce legislation to reverse a rule changed by the BWC in 2010 to require lump sum payments for loss of use injuries.

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OMA News & Anaysis – Safety & Workers’ Comp

Heard this Week at the BWC Board Meeting 02/24/2011

OMA staff auditing the public Bureau of Workers’ Compensation board of directors meeting and actuarial committee meeting this week noted:

• Liz Bravender of the BWC actuarial section gave a presentation that shows rising claim cost and decreasing premium trends for the BWC base and country-wide, as reported by the National Council on Compensation Insurance (NCCI). The average indemnity cost of a lost-time claim in the BWC system is $54K, and the average medical costs per lost-time claim are $42K.

• The BWC is considering the potential formation of a new NCCI manual classification for Potato Chip/Popcorn/Snack Chip manufacturers; this is an NCCI classification used in other states. OMA does not object to this potential development as new workers’ compensation classifications start out with the rates of the class where such employers were formerly reported, and then each class develops its own rate over time based on the class employers’ collective payroll and claims experience.

• While used by very few employers at this time, the BWC large deductible program with stop loss option may be modified to better match employer premium savings with risk brought to the system. Today the program can potentially give an employer too large a discount for the risk it brings to the system.

• BWC consultant, Deloitte, presented, but no action was taken on, a potential modification to modifying base rates. Currently the BWC only has a cap on rate increases; increases are are capped at +30%. The cap on rate decreases was eliminated two years ago. Deloitte feels there should be a +/-25% cap since a plus/minus cap is used in most other states and limits the amount that might be subsidized by other classifications.

• The Medical Committee of the Board reported that 25 out of the top 28 prescribed drugs paid for by the BWC are not in a generic form, and that the prescribed drugs that drive the largest costs to the system are the pain relievers, Oxycontin (oxycodone) and Percocet.

• Tracy Valentino, BWC chief fiscal & planning officer, gave the BWC’s Enterprise report, noting the BWC has just over $5 billion in net assets. An in-depth discussion ensued about the appropriate level of agency funding; the Audit Committee will entertain an in-depth review of net assets, funding and Board-set financial ratio targets next month.

OSHA Issues Enforcement Guidance On Personal Protective Equipment February 18, 2011

This week the Occupational Safety and Health Administration (OSHA) issued the Enforcement Guidance for Personal Protective Equipment in General Industry, a directive that provides enforcement personnel with instructions for determining whether employers have complied with OSHA personal protective equipment (PPE) standards. The directive was effective February 10.

Changes in this directive include clarifying what type of PPE employers must provide at no cost to workers and when employers are and are not required to pay for PPE.

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Under these standards, employers are required to provide – at no cost to workers – protective equipment, such as goggles and face shields that fit properly without restricting vision; earplugs and earmuffs when they will reduce noise to acceptable levels and are less costly than administrative and engineering controls; and respirators to protect workers from exposure to air contaminants. Additionally, the directive lists PPE and other items exempted from the employer payment requirements and includes questions and answers useful in clarifying PPE payment concerns. Visit OSHA's Safety and Health Topics page on Personal Protective Equipment for more information.

OMA has a webinar planned for May 26 that will help members understand the steps of conducting a PPE assessment and how to review their programs for compliance with the OSHA standard.

BWC Releases Annual Report February 11, 2011

The Ohio Bureau of Workers’ Compensation (BWC) is the largest state fund insurance system in the nation. The BWC has been serving injured workers and employers in Ohio for 100 years. It has just published its annual report for fiscal year ending June 30, 2010. For a good overview of recent system improvements, read the Administrator’s letter (page 5) and the Industrial Commission Chairman’s letter (page 99).

BWC Administrator Steve Buehrer takes over an agency with good improvement momentum. Administrator Buehrer is confirmed to speak at the March 3 OMA Safety & Workers’ Compensation Committee meeting; he’ll be sharing his priorities and plans.

BWC Offers Easy Ways to Pay your Workers’ Compensation Premium Due February 28 February 11, 2011

State fund employers have until midnight February 28, 2011 to file payroll reports and pay workers’ compensation premiums for the period covering July 1 through December 31, 2010.

BWC offers a number of options for reporting and paying. You can pay online at ohiobwc.com, in person at any BWC location or by calling 1-800-OHIOBWC. Online payment allows you to future date your payments.

BWC also has a paperless payroll option that sends e-mail alerts with a secure link that allows you to complete your payroll reports and make payments online. Click here to enroll.

OSHA Backs Off a Proposed MSD Record keeping Requirement January 28, 2011

OSHA Backs Off a Proposed MSD Record keeping Requirement The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) announced this week that it has temporarily withdrawn from review by the Office of Management and Budget its proposal to restore a column for work-related musculoskeletal disorders (MSDs) on employer injury and illness logs. The agency has taken this action to seek greater input from small businesses on the impact of the proposal.

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According to OSHA’s press release, the proposed rule would not change existing requirements about when and under what circumstances employers must record MSDs on their injury and illness logs. While many employers are currently required to keep a record of work-related MSDs on the OSHA Form 300 (Log of Work-Related Injuries and Illnesses), the vast majority of small businesses are not required to keep such records.

The National Association of Manufacturers submitted extensive comments on the burdensome affect of this proposed record keeping rule last year.

Employers New to BWC Drug Free Safety Program Have Compliance Deadline Next Week January 28, 2011

Employers that enrolled in the January 1, 2011, Bureau of Workers’ Compensation (BWC) Drug-Free Safety Program (DFSP) need to fulfill requirements by the end of January. OMA Connections Partner, Working Partners®, has found that employers new to the program are not aware of the requirements.

Working Partners is offering a free webinar next week to catch employers up on the BWC DFSP program features and requirements. Click or call (866) 354-3397 to register or for more information.

Drug Free Workplace Program - Like Wearing Your Seat Belt January 28, 2011

OMA Connections Partner, Working Partners®, helps employers implement and maintain drug free workplace programs. A brief prepared by Working Partners explains that employers should look beyond immediate payback on their investment in a drug free workplace program to the preventative benefits.

OMA members can get free analyses of how the Bureau of Workers’ Compensation Drug Free Safety Program (DFSP) options will impact their workers’ compensation premiums. Contact OMA’s Greg Vergamini or Sam Heydinger to find out how. The next deadline for enrollment in the BWC DFSP is April 30; this is a good time to evaluate the benefits.

OSHA Withdraws proposed Interpretation on Occupational Noise January 21, 2011

On January 19, the Occupational Safety & Health Administration (OSHA) announced it will withdraw its proposed "Interpretation of OSHA's Provisions for Feasible Administrative or Engineering Controls of Occupational Noise." The reinterpretation would have required significant new, costly engineering controls to abate noise.

In OSHA’s release, assistant secretary of labor for occupational safety and health, Dr. David Michaels, said, "Hearing loss caused by excessive noise levels remains a serious occupational health problem in this country. However, it is clear from the concerns raised about this proposal that addressing this problem requires much more public outreach and many more resources than we had originally anticipated. We are sensitive to the possible costs associated with

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improving worker protection and have decided to suspend work on this proposed modification while we study other approaches to abating workplace noise hazards."

OMA acknowledges the work of the National Association of Manufacturers for amplifying manufacturing’s voice on this issue.

Ohio employers can access consulting on noise mitigation at no charge through the Bureau of Workers’ Compensation (BWC) Division of Safety & Hygiene; contact your nearest BWC office and request to work with an industrial hygienist.

January Meeting of BWC Board of Directors Cancelled January 18, 2011 The Bureau of Workers’ Compensation (BWC) announced today that its January meeting of the Board of Directors has been cancelled. It is expected the BWC Board of Directors Nominating Committee will meet in the coming weeks to provide candidate recommendations to Governor John Kasich, who will then appoint four people to seats that are currently vacant.

According to the release, BWC Administrator Steve Buehrer said, “I’m confident there is a strong pool of candidates who will represent the interests of Ohio’s workers’ compensation community. I look forward to working side-by-side with the BWC Board of Directors in changing the course of the state’s economic climate through effective decisions that will positively impact the care of injured workers and the business success of Ohio employers.”

The BWC Board of Directors was created by the 127th Ohio General Assembly in House Bill 100 and supported by the OMA. The Board is comprised members representing employees (one member), employee organizations (two members), employers (three members), and the public (one member). The Board also includes two members who are professionals with expertise in investments and securities, a certified public accountant and an actuary. There are a total of 11 board members.

The board directs a nominating committee to submit four applicants to the Governor for each vacant seat. The four current vacant seats include representatives of self-insured employers and employee organizations, as well as an actuary and an investment and securities expert. The Governor will also appoint a Board chairman. The next meeting of the BWC Board of Directors is scheduled for February 24, 2011.

NAM Seeks Your OSHA Noise Proposal Input December 17, 2010

The National Association of Manufacturers (NAM) is leading the charge with a coalition of more than 100 trade associations to fight OSHA’s costly proposal to mitigate noise exposures. As previously reported here, OSHA has announced plans to require extensive “engineering and administrative” controls to protect employees from workplace noise instead of using primarily personal protective equipment. All but companies that “would be put out of business” would be required to make changes, regardless of cost.

Earlier this month, OSHA granted NAM’s request for a 90-day extension for comments, which are now due March 21, 2011. The proposal may go into effect as soon as the end of the comment period; OSHA has not indicated an implementation date, adding further uncertainly.

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To accurately assess the harm to your company, NAM has created an online survey to collect data. The safety compliance staff at your company is urged to submit information. The data will be used anonymously unless you specify otherwise. If you have time to do more, contact your Congressional representatives. And consider financially supporting this initiative; NAM has retained outside counsel to effectively file regulatory comment on this costly proposal.

BWC Writes New Contract with MCOs that Ups Performance Focus December 17, 2010

The Bureau of Workers’ Compensation (BWC) contracts with the state’s workers’ compensation managed care organizations (MCOs) to medically manage workplace illnesses and injuries. BWC has finalized a new two-year performance-based contract that goes into effect January 1, 2011.

“I think the most significant improvement in this contract is that the BWC will base almost half of the MCOs’ compensation on their effectiveness in returning injured workers safely to work,” said OMA’s president, Eric Burkland. “The vision for the MCO model was always quality of care and demonstrated performance. We want to best medical management for Ohio’s injured workers”

The MCOs will be measured on a new metric, measurement of disability (MoD), which the BWC says will do a better job of measuring return-to-work effectiveness than the old degree of disability management measure. One difference is that the new measure looks at actual return-to-work dates and not release-to-work dates.

“Employers choose their MCOs in the biannual open enrollment periods held by the BWC; this new metric should help employers discern the best MCO for their workers,” said Burkland.

Ohio Workers’ Compensation Rate Reductions Documented December 17, 2010

The Oregon Premium Ranking Study, a well-known workers' compensation industry resource, recently reported that Ohio’s workers’ compensation base rates rank 17th highest in the country as of July 2009. This is down from third highest in the country over a two-year period.

A recent study by BWC’s Actuarial Division shows Ohio’s 2010 average base rates to be at $1.95 per $100 of employer payroll, putting Ohio in the mid-range of the nation for workers’ compensation costs.

Next BWC Chief Says He Will Focus on Rates, Benefits and Private Options December 17, 2011

The Gongwer News Service reported last week that Senator Steve Buehrer (R-Delta), the next head the Bureau of Workers’ Compensation (BWC) selected by Governor-elect John Kasich, comes to the position with specific areas of interest.

According to Gongwer, Buehrer wants to examine: partially privatizing the system to allow private insurers to compete with the BWC to write policies; assessing current rate policies to see how to reduce and stabilize rates; and studying the benefits injured workers receive to determine if they are too generous.

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He also plans to review the rate reforms that ended subsidies of group rated employers’ premiums by non group rated employers’ premiums. He also plans to study the appropriateness of the system’s level of reserves.

Ohio’s Intentional Tort Law Challenged December 10, 2011

Employer liability for work place safety will be considered by a state appeals court. Earlier this decade the OMA supported a law change that clarified that employers could only be sued for damages by injured workers under a limited set of circumstances.

The injured worker is entitled to workers' compensation benefits regardless of fault; however the “intentional tort” concept allows for the employer to be sued for damages on top of workers’ compensation.

A Cleveland trial court seems to believe the state law was unclear. There are significant ramifications on employers' liability and insurance premiums if the state law is not upheld upon appeal. The OMA will follow the case and file an amicus brief if further appeals occur.

Some Employers Seeing Group Retrospective Rating Plan Offers – Should You Bite? December 10, 2011

This is the time of year when employers are soliciting and receiving proposals for workers’ compensation group rating plans.

Some employers - that due to worse-than-average-claims experience or large payroll size - are receiving proposals for group retrospective rating programs from various workers compensation third party administrators (TPAs).

Unlike the BWC group rating program which offers a premium discount, the Bureau of Workers’ Compensation (BWC) group retrospective rating program comes with a specific set of financial risks for employers. The OMA has prepared a white paper about the potential pros and cons of the BWC group retrospective rating program.

Workers’ compensation group rating continues to be the best premium saving program for many, but not all, Ohio employers. That’s why the OMA has created a suite of management reports that help state fund employers make the best program and product decisions for their companies. OMA members who buy their workers compensation services through the OMA should go to www.ohiomfg.com and click on My OMA to access their custom reports. All other employers should submit a BWC AC3 form to OMA to get their own set of custom reports at no charge.

Take Action Against OSHA Noise Regulations December 10, 2011

The OMA has been advising members about potentially costly new OSHA regulations on noise standards. Compliance with the new regulations will impose significant costs on manufacturers.

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OMA member American Trim, Lima, has developed a model letter for manufacturers to use in communicating concerns to OSHA. Be sure to copy your member of Congress and U.S. Senator. Forward a copy to the OMA, as well.

BWC to Hold Webinar on New Securitization Model for Self Insured Employers December 3, 2011

The Bureau of Workers’ Compensation (BWC) Finance and Reserve Working Group has developed a new securitization methodology and process for self-insured Ohio employers. The aim of the working group was to better match risk exposures of self-insured employers to collateral held by the BWC, thereby protecting the guaranty fund.

The working group invites the state’s self-insured community to a webinar presentation of the group’s findings and the rollout plan for the new securitization model and process.

The free one-hour webinar will be held on Thursday, December 9 at 3:00 p.m.

BWC Changes Salary Continuation Rules January 2011 November 24, 2011

For years, Salary Continuation has been one tool Ohio state fund employers have used to keep workers’ compensation indemnity and claim reserve costs out of their workers’ compensation claims experience in order to control premiums.

Beginning January 1, 2011, the BWC will begin applying the costs of claim reserves to claims in which Salary Continuation is used, affecting claims with a date of injury on or after January 1, 2011.

There are pros and cons. Read the briefing prepared by OMA workers’ compensation account manager, Jay Kemo.

Changes to Self-Insurance Highlighted to Manufacturers November 19, 2011

The OMA Safety and Workers' Compensation Committee this week heard a detailed presentation about the Bureau of Workers' Compensation (BWC) plan for self-insured (SI) guaranty fund security.

BWC Executive Tom Prunte described a new system for evaluating the financial health of existing and new SIs. The change, which will go into effect in January, will establish financial and risk criteria that will govern financial security requirements for the state's SI employers.

OMA members have been working with BWC management and other stakeholders for more than a year to develop the improvements. A brief fact-page has been developed for your usage.

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OMA Workers Compensation Committee Meeting Materials – 11/18/2011 November 18, 2011

The OMA Safety and Workers' Compensation Committee this week heard a detailed presentation about the Bureau of Workers' Compensation (BWC) plan for self-insured (SI) guaranty fund security.

BWC Executive Tom Prunte described a new system for evaluating the financial health of existing and new SIs. The change, which will go into effect in January, will establish financial and risk criteria that will govern financial security requirements for the state's SI employers.

OMA members have been working with BWC management and other stakeholders for more than a year to develop the improvements. A brief fact-page has been developed for your usage.

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Workers' Compensation Legislation Prepared by: The Ohio Manufacturers' Association

Report created on February 25, 2011

HB123 WORKERS' COMPENSATION BUDGET (HOTTINGER, J) To allow the administrator of Workers' Compensation to waive criteria certain public employers must satisfy to become self-insuring employers; to require bills for medical and vocational rehabilitation services in claims that are ultimately denied to be paid from the Surplus Fund Account under specified circumstances; to make appropriations for the Bureau of Workers' Compensation and for the Workers' Compensation Council for the biennium beginning July 1, 2011, and ending June 30, 2013; and to provide authorization and conditions for the operation of the Bureau's and the Council's programs.

All Bill Status: 3/1/2011 - House Insurance, (First Hearing) 2/24/2011 - Introduced

More Information: No link available HB124 INDUSTRIAL COMMISSION BUDGET (HOTTINGER, J) To set appropriations for the Industrial

Commission for the biennium beginning July 1, 2011, and ending June 30, 2013, and to provide authorization and conditions for the operation of Commission programs.

All Bill Status: 3/1/2011 - House Insurance, (First Hearing) 2/24/2011 - Introduced

More Information: No link available

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TO: Ohio's Self-Insuring Employers

The Bureau of Workers’ Compensation (BWC) has been working with the self- insured community over the last year to design changes for determining amounts required to secure the obligations of the Self-Insuring Employers’ Guaranty Fund (SIEGF). It is anticipated that these changes will affect some employers’ security requirements beginning early in the Spring of 2011. This memorandum provides a general overview of the changes. BWC will participate in self-insured association meetings around the state to present the changes in more detail and to answer questions that employers might have. However, and as you will see, the basic structure for securing the obligations of SIEGF will not be changed. SI Employer Contributions

BWC regulations require that SIEGF be funded at a level of at least 125 percent of the amount paid from the fund in defaulted claims during the immediately preceding year. The funding is exclusively from assessments paid by all self-insuring employers including additional assessments paid by high-risk employers. The new method for securing the obligations of SIEGF will not change the amount of the balance that is required to be maintained in the fund nor will it change the method of maintaining that balance through employer assessments. High-Risk Assessment

Employers who are designated as high-risk employers are currently assessed a six percent penalty. While the financial tool or method used to identify those high-risk employers may change, the six percent assessment for such high-risk employers will not change. Protests and Adjudication

Employers who are dissatisfied with a decision or order of the Self-Insured Department with regard to security requirements, SI renewals, the granting of applications for self-insurance, or like issues, may appeal the determination of the Department to the Self-Insured Review Panel (SIRP). Appeals from the decisions of SIRP may be taken to the administrator's designee The new method of securing the Fund will not change the right to challenge such administrative determinations nor will it change the method of appeal. Identification of Employers Who Present a Risk of Default

Self-insuring employers who present a risk of default are required to provide letters of credit. The Altman Z-Score has been the principal financial tool used to predict the risk of an employer defaulting on its obligations. The Altman Z-Score has proven to not be as reliable a predictor as other methods. BWC will be using financial analytics tools from Moody’s that will be used to identify employers who present a risk of default. There will be no essential change in concept: BWC will identify those employers who present a risk of default and will require those employers to provide security to protect SIEGF. BWC will simply use a more effective financial tool to identify those employers. Security

Employers who have been asked to provide letters of credit as security have provided such letters of credit in accordance with a formula using a multiple of the prior year's payments of compensation and benefits as reported on the SI-40. That formula provided that the amount of the letter of credit would be the sum of: four times permanent total and death benefits paid; two times all other forms of compensation paid; and one and one-half times medical benefits paid. BWC believes that the amount reached using that formula may not accurately reflect the overall liability that an employer would present to SIEGF in the event of a default. The newly adopted method will still require letters of credit from those employers who are identified as presenting a risk of default. However, the amount of the letter of credit required will be based on the amount of the employer's self-reported reserves (subject to review by the BWC) and not on the amount of compensation and benefits paid over the last year. The amount of the letter of credit will vary with the degree of credit risk as determined using the Moody's Analytics tool and the degree of claims risk based on the size of employer’s reserves. (See profile matrix below)

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New Applications/Renewal Procedures Employers will be notified in early January of their obligation to complete the SI-40 no later than February 28, 2011 on the BWC website. If your renewal date falls in the January and February timeframes, BWC will be providing temporary certificates to avoid any disruption to your self-insured status while we review your updated financials, paid compensation, and reserves as contained in the newly filed SI-40. Beginning in March 2011, and throughout the year, BWC will be applying the new methodology as renewals and new applications occur and working with self-insured entities to ensure a smooth transition to the new process.

SI Risk Profile MatrixEffective January 2011

Risk profile of individual employers based on:

• Claims Risk – Based on Reported Reserves (Trust and Verify)

• Credit Risk – Based on Moody’s Expected Default Frequency (EDF)

Highlighted areas represent profiles that exceed risk tolerance of SI Stakeholders

Minimum LOC $50,000 below that SIEGF assumes risk

CREDIT RISK

C

L

A

I

M

S

R

I

S

K

10

Size Bucket Reserve Minimum

Moody's EDF Rating / LOC Rating Factor

LOC Size Factor

A3 or Higher Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 or Lower

0% 0% 0% 25% 50% 75% 100% 100%

10 $ 12,000,000 100% LOC % of Reserve 0% 0% 0% 25% 50% 75% 100% 100%

9 $ 7,300,000 90% LOC % of Reserve 0% 0% 0% 23% 45% 68% 100% 100%

8 $ 4,500,000 80% LOC % of Reserve 0% 0% 0% 20% 40% 60% 100% 100%

7 $ 3,000,000 70% LOC % of Reserve 0% 0% 0% 18% 35% 53% 100% 100%

6 $ 1,920,000 60% LOC % of Reserve 0% 0% 0% 15% 30% 45% 100% 100%

5 $ 930,000 50% LOC % of Reserve 0% 0% 0% 13% 25% 38% 100% 100%

4 $ 398,000 40% LOC % of Reserve 0% 0% 0% 10% 20% 30% 100% 100%

3 $ 160,000 30% LOC % of Reserve 0% 0% 0% 0% 0% 23% 100% 100%

2 $ 44,000 0% LOC % of Reserve 0% 0% 0% 0% 0% 0% 0% 0%

1 $ - 0% LOC % of Reserve 0% 0% 0% 0% 0% 0% 0% 0%

Example 1 Reserves are $1,000,000 and I have a Moody’ rating of Baa2 (bucket 5). No LOC would be required. Example 2 Reserves are $400,000 and I have a Moody’s rating of Baa3 (bucket 4). My LOC requirement is $40,000 (400,000 x 10%) which is below $50,000 minimum. No LOC would be required.

Example 3 Reserves are $2,000,000 and I have a Moody’s rating of Ba2 (bucket 6). My LOC requirement is $900,000 (2,000,000 x 45%).

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Recent OSHA and NIOSH Activities 3/3/2011

OSHA Withdraws Proposed Interpretation on Occupational Noise OSHA announced that it is withdrawing its proposed interpretation titled "Interpretation of OSHA's Provisions for Feasible Administrative or Engineering Controls of Occupational Noise." The interpretation would have clarified the term "feasible administrative or engineering controls" as used in OSHA's noise standard. The proposed interpretation was published in the Federal Register on Oct. 19, 2010. "Hearing loss caused by excessive noise levels remains a serious occupational health problem in this country," said Dr. David Michaels, assistant secretary of labor for occupational safety and health. "However, it is clear from the concerns raised about this proposal that addressing this problem requires much more public outreach and many more resources than we had originally anticipated. We are sensitive to the possible costs associated with improving worker protection and have decided to suspend work on this proposed modification while we study other approaches to abating workplace noise hazards." NIOSH Releases Beryllium Alert NIOSH recently published an alert with recommendations for workers exposed to particles, fumes, mists or solutions from beryllium-containing materials. In “Preventing Sensitization and Disease from Beryllium Exposure,” NIOSH presents case studies, resources and suggestions for both employers and employees who work with beryllium-containing materials. The NIOSH recommendations provide guidance on how workers can avoid beryllium sensitization, chronic beryllium disease and lung cancer through different training methods, cleaning procedures and medical surveillance. The alert also describes actions necessary to identify workers exposed to beryllium who may not be aware that they have been exposed, improve protective measures for exposed workers, reduce and minimize general exposures and the number of exposed workers when possible, educate workers on the dangers of working with beryllium, ascertain the characteristics of exposures, and identify industrial and occupational sectors that use beryllium and target them for prevention efforts. ChemSW's White Paper on Best Practices for Managing Laboratory Chemical Inventory Companies that utilize chemicals in their labs and their manufacturing processes must manage those chemicals in a safe environment in accordance with government regulations. At a minimum, to ensure that this is accomplished, a system for managing information about the chemical safety and quality data should be established and maintained.

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Best practices take this minimum and leverage the management of the chemical inventory by leveraging the abilities of the people, processes, and technology involved to best effect. The white paper details how best practices chemical inventory solutions can optimize a high-performance, relational database system for tracking chemicals and other laboratory supplies. Further, a best practices chemical inventory system that works with other IT solutions enables labs to keep track of where chemicals are and how much are available, as well as generate reports and quickly access hazard information. Numerous illustrations supplement the text, as well as a self-diagnostic test that helps companies to determine the effectiveness of the current chemical inventory system. Below is a link to request the free white paper. http://www.chemsw.com/aih1102bpa.htm OSHA temporarily withdraws proposed column for work-related musculoskeletal disorders. OSHA announced that it has temporarily withdrawn from review by the Office of Management and Budget its proposal to restore a column for work-related musculoskeletal disorders on employer injury and illness logs. The agency has taken this action to seek greater input from small businesses on the impact of the proposal and will do so through outreach in partnership with the U.S. Small Business Administration's Office of Advocacy. "Work-related musculoskeletal disorders remain the leading cause of workplace injury and illness in this country, and this proposal is an effort to assist employers and OSHA in better identifying problems in workplaces," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "However, it is clear that the proposal has raised concern among small businesses, so OSHA is facilitating an active dialogue between the agency and the small business community." NEP (National Emphasis Program)

1. Microwave Popcorn Processing Plants

OSHA issues enforcement guidance on personal protective equipment to protect general industry workers' safety, health OSHA issued the Enforcement Guidance for Personal Protective Equipment in General Industry*, a directive that provides enforcement personnel with instructions for determining whether employers have complied with OSHA personal protective equipment (PPE) standards. The directive was effective Feb. 10. OSHA issued a final rule on Employer Payment for Personal Protective Equipment in November 2007. The rule required employers in general industry, shipyard employment, longshoring, marine terminals and construction to provide most types of required PPE at no cost to the worker. The agency also issued a final rule in September 2009 updating its PPE standards so that they are more consistent with current consensus standards.

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This directive replaces Inspection Guidelines for 29 CFR 1910 Subpart I, the revised Personal Protective Equipment Standards for General Industry issued in June 1995. Changes in this directive include clarifying what type of PPE employers must provide at no cost to workers and when employers are required and not required to pay for PPE. The directive also provides guidance that allows employers to use PPE that complies with current consensus standards and updates PPE enforcement policies based on court and review commission decisions. These personal protective equipment standards require employers to provide – at no cost to workers – protective equipment, such as goggles and face shields that fit properly without restricting vision; earplugs and earmuffs when they will reduce noise to acceptable levels and are less costly than administrative and engineering controls; and respirators to protect workers from exposure to air contaminants. Additionally, the directive lists PPE and other items exempted from the employer payment requirements and includes questions and answers useful in clarifying PPE payment concerns. Visit OSHA's Safety and Health Topics page on Personal Protective Equipment for more information.

Contributed by OMA Connections Partner:

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PUBLIC POLICY REPORT – Tax Policy

TO: OMA Government Affairs Committee FROM: Ryan Augsburger, OMA Staff DATE: March 2, 2011 SUBJECT: TAX POLICY HIGHLIGHTS Overview In the weeks since the new regimes have assumed control of the legislature and executive branch, tax policy has emerged as an early priority during this 129th General Assembly. Soon the state budget will eclipse all other activity in Columbus. Numerous bills dealing with tax repeals or tax exemptions have been introduced and are moving. While the introduction of such legislation is not unusual, the movement of the legislation raises questions about reconciliation with state finances which are $8B plus in the hole. Foregoing revenue even under more healthy economic conditions is generally resisted. Following highly partisan elections, the tax bills are mostly intended to spur economic growth. Some of the bills are motivated by campaign promises and postures and others represent the best thinking of our elected leaders. Most bills do little to advance statewide business tax competitiveness. State Leadership With the inauguration of John Kasich as Governor on January 10, a new chapter begins on state tax policy and government finance. Playing a staring role together with Governor Kasich are the members of his cabinet. Joe Testa was appointed tax commissioner and will lead the Ohio Department of Taxation. Mr. Testa retired in 2009 as Franklin County Auditor, a post he held for several terms. Leading the economic development functions is Mark Kvamme, a self-described successful venture capitalist from California who will be paid only $1 dollar for the six months of retooling the state’s economic development functions. States Financial Condition Office of Budget and Management reports show continued economic recovery and forecasts gross state product growth around 3% for months ahead. The state’s fiscal year begins on July 1. Since August, tax and other revenue collection has tracked above estimates. As of Feb 10, state revenue was $440 million ahead of estimates. This trend will ease, somewhat, the structural deficit that must be balanced in the state budget, due to be formally proposed on March 15. State Budget Spending authority for state operations must be approved by the Ohio House and Senate and signed by the Governor on a biennial basis. Unlike the federal government, Ohio’s constitution requires that the state’s expenditures are balanced with revenues.

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The state is prohibited from borrowing to finance operations. Try your hand at balancing the budget: http://www.dispatch.com/live/content/insight/budget/index.html The budget is the only piece of legislation that the General Assembly must approve in the course of their two-year session. Budget is policy and these voluminous bills include significant changes in state operations. Tax hikes, reductions, exemptions and credits are frequently adopted within budget legislation. In Ohio the main budget is referred to as the operating budget. It is required to be introduced by March 15, 2011. Already pending is the transportation budget which funds ODOT and state public safety functions. Workers Compensation and the Industrial Commission are also dealt with in a separate budget bill. All of these budget bills can alter revenue requirements on businesses and need to be monitored. Additionally, budget bills frequently carry hundreds of law changes that might otherwise be dealt with in free-standing legislation. The OMA will maintain a spreadsheet of various revenue and non-revenue (permanent law) changes of interest to manufacturers. Balancing the state budget is expected to be both difficult and controversial. With the nation at the depths of the great recession two-years ago, state governments were thrown a lifeline by the federal government in the forms of grants and loans so that state governments could balance their budgets and stabilize programs to prevent worsening the overall economy. Many of the federal benefits came with strings attached and in some cases actually required state governments to grow in order to qualify for the funding. Two years later the economy is in slow recovery and revenues are returning, but not at a rate that allows for continued operations without another round of “stimulus.” Therefore a day of reckoning appears near. Government finance experts believe the current state budget utilizes over $8B in one-time funds, mostly from the federal stimulus grants. This figure approached 20% of government funding in our state. Largest outlays go to K-12 education, Medicaid, higher-education, and prisons. Fundamental changes in the state’s role in these areas will need to be addressed. Medicaid is particularly challenging for state leaders to pair because of the eligibility requirements for matching federal funds. Social services advocates are already geared for a battle and have urged policy makers to hike taxes and fees, even on business. Governor Kasich and many Republican leaders in the Ohio House and Senate took a pledge against raising or creating new taxes. They have generally maintained that position in public statements so the unveil of the budget will be interesting. State spending impacts so many people and groups. Draconian cuts are always met with demonstrations designed to soften lawmakers resolve. The OMA has built tools for OMA members and staff to use in talking with policymakers about tax and budget priorities. Tax Increase / Tax Decrease? With state revenue collection exceeding projections so far, the threat of tax increases in the short term has lessened, but is still very possible. Don’t forget the budget was already corrected once, temporarily freezing the personal income tax rates. Will leaders allow the final reduction to take effect as it is scheduled to do this year.

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Working with manufacturing leaders to review and analyze tax policy changes, the OMA will continue to oppose tax hikes that deter manufacturing competitiveness. Concerned members should make sure they are subscribed to OMA leadership briefing for weekly updates. Estate Tax Repeal In mid-February, the House Ways and Means Committee voted to approve a HB 3 (Grossman, Hottinger, Peterson) to repeal Ohio’s estate tax. The bill in various forms has been introduced in previous sessions but never was approved. The OMA testified in support of the bill. Local governments have been opposing the bill in droves. If enacted, the bill will result hundreds of millions of dollars of foregone revenue for the state and local governments. The state receives 20% while the local government of the decedent derives 80%. It is not clear whether the bill will gain legislative approval since it will complicate balancing the budget. Interestingly, “TEA-party” supporters of the bill are well on their way to collecting necessary signatures to place the matter before Ohio voters, however that will be a slow process. Tax Credits State legislators are considering a number of bills to create new tax credits. OMA staff has been busy working with the sponsors and others behind the scenes to protect the integrity of the pro-manufacturing tax reforms. Priority credits listed below. Others introduced.

• HB 10 (Sears) Provides refundable tax credit for brownfield remediation. Funding sources are CAT and PIT. Scored at $32M - $72M

• HB 17 (Baker) Provides tax credit for business that hires someone who has been unemployed. Funding source is state income tax withholding.

• HB 18 (Baker) Provides tax credit for business that locates in a vacant building. Funding source was PIT and CAT. In response to OMA advocacy, funding source amended to state income tax withholding.

• SB 6 (Patton) Provides very targeted eligibility expansion for existing job retention tax credit (probably for a particular company).

Attacks on Tax Reform The OMA has been a steadfast opponent of any legislation or other action that would undermine the broad-base, low-rate principles of the CAT which allowed for the elimination of tangible personal property tax, corporate franchise tax, reduction of personal income tax, and reduced state revenue collection. Rumors abound about likely amendments to the budget bills. Manufacturers are encouraged to talk up the attributes of Ohio’s tax reforms frequently. Unemployment Compensation Like many states, Ohio’s fund to pay unemployment compensation claims was depleted in early 2010. The state has borrowed federal funds ($2 billion plus) that will need to be paid back. States are required to begin paying interest by September 2011 (nearly $300 in interest alone in the 2012/13 biennial budget). The Obama administration is rumored

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to be considering a delay which might alleviate the repayment in the upcoming budget. But eventually Ohio employers are likely to see a premium increase to repay the federal loans and restore the state fund. A rumored state compromise would increase the taxable wage base and freeze benefits. JobsOhio and Third Frontier House Bill 1 / Senate Bill 1 sped through the Ohio House and Senate and signed into law by Governor Kasich on February 18. The bill creates a non profit corporation called JobsOhio to coordinate state economic development activity. The corporation will be headed by a board of directors and chaired by the Governor. Legislation is anticipated later in the year to formally transfer or revise operations presently housed under the Ohio Department of Development and other state agencies JobsOhio is expected to seek modification of provisions of the Third Frontier program. Third Frontier is a targeted economic development program financed with state debt. $750M was approved by voters in 2010. Manufacturing has been among sectors targeted for investment. Government Efficiency Election year rhetoric and budget realities have catapulted consideration of government efficiency enhancements that have been talked about for many years but not acted upon. These issues directly impact the cost and quality of public services. OMA volunteer leadership will need to consider and guide the proper level of engagement on the below legislation and themes:

• HB2 (Snitchler) / SB4 (Schafer) Performance Auditing – OMA supports legislation giving state auditor authority to audit public entities on performance according to best standards. Data available.

• SB 5 (Jones) Labor Union Reform / Repeal – Data was referenced by the Senate in late February that suggests cost-savings can be obtained by repealing collective bargaining for public sector employees. The bill has been highly controversial. Governor Kasich has stated collective bargaining reform is part of his agenda and will be included in his budget proposal if not completed sufficiently by the General Assembly.

• SB 2 (Hughes) / HB 94 (Roegner) Regulatory Reform to adopt a new common sense standard for agencies when revising administrative rules and to make it easier for the legislature to reject an agencies rule changes if found to be too costly or burdensome on regulated businesses.

• Local Government Funding Defense – In anticipation of draconian budget cuts, the powerful local government lobbies are working the General Assembly. They will not accept cuts without a fight and counter proposals with the steep number of mandates imposed on their services by the state. The House invited them to present on their priorities. Working as a coalition they boasted about advances in shared services and told lawmakers that they had been promised to be made whole (in perpetuity) during the HB 66 tax reforms of 2005.

• SB 10 (Seitz) Prison / Sentencing Reform. The proposal is based in part of studies done by Council of State Government and by Pew. Departure from “tough-on-crime-do-the-crime-serve-the-time” policies cost real money and dangerously crowd the penal system.

• Health Care Transformation is the description Governor Kasich uses in talking about the need to reform Medicaid expenditures and prepare for coming federal

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health care mandates. Governor Kasich has appointed a team to help manage the changes and to better coordinate state functions.

• State Government Consolidation of agencies has been a perennial favorite of some state leaders. It is again being discussed most recently by Speaker Batchelder.

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OMA News & Analysis - Tax & Finance

ODOD Director Kvamme Issues 11 “Clawback” Notices 02/24/2011 Ohio Department of Development (ODOD) Director Mark Kvamme issued 11 “clawback” notices to companies that had received state aid but had not lived up to job creation projections. Director Kvamme was quoted in the Columbus Dispatch as stating, "If you don't do what you say you're going to do, it's not right. Now, if you're on the edge, and you said you were going to create 30 jobs and you create 28, we're going to work with you.”

Estate Tax Repeal Clears House Panel 02/18/2011 The House Ways and Means Committee voted mostly along partisan lines on Wednesday night to favorably report House Bill 3, which would repeal Ohio's estate tax.

Representative Ron Amstutz (R - Wooster) was the lone dissenting Republican. Amstutz, who chairs the House Finance Committee which is responsible for adopting a balanced budget, said that he "cannot in good conscience recommend passage of this bill until we have developed a fiscally responsible budget plan that works out the trouble we're in."

Speaker Batchelder signaled a slower approach would be more prudent, leaving some to believe that the full House might not act any time soon. Prior to the committee vote, legislators heard from local governments, including the city of Kettering and the village of Sugarcreek ,urging rejection of the bill. Representative Mike Foley (D - Cleveland) unsuccessfuly offered an amendment to retain the estate tax and add an even higher 10% bracket for millionaires.

Earlier in the day of the vote, the OMA joined with members of the Ohio Farm Bureau in a rally in support of the repeal of the estate tax. OMA board member David Johnson of Summittville Tiles provided proponent testimony on behalf of the OMA last week.

Members are encouraged to contact state representatives to urge prompt action on H.B. 3.

OMA Member Testifies to Repeal Estate Tax 02/11/2011 Former OMA Board Chairman, David W. Johnson, President and CEO of Summitville Tiles, Inc., Columbiana County, this week told members of the House Ways and Means Committee that the estate tax has an unfair negative impact on the thousands of small- and medium-sized family businesses. He characterized the estate tax as "a disincentive to invest in existing businesses and as an impediment to the very capital formation which is so vital to Ohio's economy." Other proponents that testified included the Ohio Society of CPAs and Americans for Prosperity. Opponents to the bill that shared thoughts this week, mainly local government, included: Summit County Council, cities of Oakwood, Oberlin, Norwalk, Bay Village, Lancaster, Loveland, Macedonia, Oxford, and Cincinnati, and the Cuyahoga County Mayors Association, plus the Townships of Delhi, Springfield and Green.

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House Bill 3 was amended to delay its effect until January 1, 2013. Last week House Speaker Bill Batchelder indicated passage of the estate tax repeal, as well as other tax credit legislation, may not be possible until the state budget is considered.

IRS "Conformity" Legislation Approved 02/11/2011 Technical changes to Ohio's tax code were unanimously accepted by a House panel this week. House Bill 58 (Rep. Beck (R) - Cincinnati) incorporates federal tax law changes into Ohio's tax code.

The law change is needed to prevent taxpayer confusion about the definition of "federal adjusted gross income." The full House is expected to approve the measure next week so that the commonsense change can be promptly implemented.

Cuyahoga County Manufacturers Have Access to Multiple Financing Options through Port 02/01/2011

The Cleveland-Cuyahoga Port Authority offers financing programs that are responsive to Cuyahoga County manufacturers that are undertaking new construction, facility expansion or equipment purchasing. Learn more about the options in this brochure.

And the Cleveland-Cuyahoga Port Authority will pair up with the Summit County Port Authority on March 4 in Independence to give an in-person presentation of financing options for manufacturers available through these important economic development entities. Email Garth Woodson, Vice President, Development Finance or call (216) 377-1351.

OMA Supports Performance Audit Expansion 01/28/2011

House Bill 2, a priority of the Kasich administration and of new Ohio Auditor, David Yost, would direct, and fund, the auditor to undertake performance audits of at least four state agencies this coming biennium. The bill specifically requires audits the Ohio Department of Education and the Ohio Department of Jobs and Family Services. Other agencies are authorized to request audits.

The OMA supports House Bill 2. In a letter to House State Government and Elections Committee, the OMA president Eric Burkland wrote: “Ohio manufacturers employ a wide variety of management technologies to drive performance improvement, including forms of performance audits that are the subject of House Bill 2. Manufacturers know from extensive experience that performance audits are a useful tool to identify opportunities for improvements. Wider use of performance audits by state government will improve the effectiveness of operations, save taxpayer dollars, improve customer service and generally make better use of public resources.”

Hearings on the bill continued this week within the House State Government Committee. A committee vote on the measure is expected next week.

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Libraries Tell Legislators Repeal of Tangible Personal Property Tax Harmful 01/28/2011

Speaking on behalf of a coalition of local government entities, the executive director of the Ohio Library Council gave a presentation to the House Ways and Means Committee about the revenue shortage facing libraries, parks and recreation, townships, cities and other entities that comprise the Coalition of Local Governments and Services. Their solution: appropriate more state revenue to offset the local revenue “lost” when the legislature repealed tax on machinery and equipment, inventories, and furniture and fixtures in 2005.

The 2005 reforms, vigorously pursued by OMA, were intended to improve Ohio’s business competitiveness by replacing investment with consumption as the business tax base. There was never a promise to fund local governments at the same level in perpetuity.

The OMA’s RetoolingOhio: A Competitive Ohio Tax System tells the story of the reforms and how Ohio now has one of the lowest effective tax rates on new capital investment. Next time you see your state representative and state senator, make sure they understand the importance of the reforms and use the referenced document to help educate them on the threats to tax competitiveness.

Good Update from NTMA on Small Business Loan Bill 01/28/2011

Here is a good update from the National Tooling and Machining Association (NTMA) on the recently created small business lending fund and the state small business credit initiative. OMA worked with NTMA and the Precision Metalforming Association (PMA) and Senators Voinovich and Brown on this one late last year.

Governor Outlines JobsOhio Plan for Economic Development 01/21/2011

Making good on his campaign promise to recast the state’s economic development department into an entity governed with private sector leadership and financing, Governor John Kasich on Thursday held a press conference with Mark Kvamme, his top deputy for economic development, to announce progress on state legislation to revamp the program. House Bill 1 will be formally considered next week.

The legislative proposal is described as creating, authorizing and funding JobsOhio as the new lead agency to coordinate economic development activity, while giving Kvamme six months to develop recommendations on how to best transfer department functions to JobsOhio and to other appropriate agencies. Additional legislation will be required to enact the recommendations. Gongwer News Service reported that Kvamme also spoke of the need to refocus Third Frontier, saying that it (Third Frontier) “is too focused on research as opposed to development.”

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The OMA supports strengthening efforts to increase Ohio's responsiveness to business needs. The issue will be discussed at upcoming meetings of the OMA Tax Policy Committee and Government Affairs Committee.

Ohio House Bill Introductions – Focus on Tax Credits 01/21/2011

Members of the Ohio House of Representatives continued to introduce new bills this week. OMA categorizes and tracks legislation of interest to manufacturers. OMA members can view the OMA bill tracker anytime. Two bills introduced last week gained attention this week as Speaker Bill Batchelder (R-Medina) announced intentions to fast-track H.B. 18, legislation which would authorize a tax credit against the personal income tax and the commercial activity tax (CAT) to businesses that expand into vacant buildings. The bill sponsor, Representative Nan Baker (R – Westlake), has also introduced H.B. 17 to provide a tax credit for businesses hiring individuals who were previously unemployed.

The OMA has a long-standing position of opposing exemptions, credits, and exclusions from the CAT. Tax carve-outs erode tax bases, creating pressure to increase tax rates on remaining taxpayers.

Try Your Hand at Balancing State Budget 01/21/2011

The Columbus Dispatch recently produced an online state budget simulator challenging you to balance the budget. Take a few minutes to enter your budget balancing solutions. Use it and let us know if you figured it out.

Ohio School Salary Data Online 01/21/2011

Continuing with its work to make public employee compensation accessible, the Buckeye Institute, a Columbus-based conservative think tank, added a new tool to search educator compensation level. The institute reports that more than 1,800 Ohio school employees in Ohio earned more than $100,000 in 2010.

House Targets Repeal of Estate Tax 01/14/2011

Among much fanfare, House Assistant Majority Whip Cheryl Grossman (R – Grove City) and Representative Jay Hottinger (R – Newark) this week held a press conference announcing the introduction of House Bill 3 to repeal Ohio’s estate tax.

The OMA has a long-standing position in support of repeal and notes that Ohio’s threshold is lower than most states, kicking in at an estate value of just $338,333. The tax undermines small businesses during generational changes.

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Local governments oppose repeal; about 80% of estate tax revenue goes to local governments. Twenty seven Republicans co-sponsored the bill, and were joined by one Democrat, Representative Mark Okey (D – Carrollton).

Attorney General Finds Some Employers Not in Compliance with Economic Development Incentives 01/07/2011 Among his concluding acts as Attorney General, Richard Cordray yesterday released a report on employers' compliance with economic development contracts. The first annual report highlights incentives granted to companies by the Ohio Department of Development (Department) between 2004 and 2009 and finds that just over 9% of recipient businesses failed to create or retain the jobs required by their award contracts. OMA member companies that received economic development awards in the reporting period were among the Ohio employers surveyed/audited in the year and whose data are complied in this report. The report and the Attorney General's authority to audit such incentive packages were mandated by the General Assembly in late 2008. Incoming Governor John Kasich will grapple with the issue as he pursues his "JobsOhio" plan to revamp the state's economic development efforts. The OMA Tax Policy Committee will assess the issue at its March 17 meeting.

State Budget Commission Ends Work Without Agreement 12/16/2010

The Budget Planning and Management Commission that got off to a rocky partisan start this summer ended the same way. Republicans and Democrats filed separate reports this week in what is a foreshadowing of next year’s budget debate.

Republicans call for a 2012/13 budget built within “available resources” and without any tax increases or reliance on one-time resources. They propose, among other things, a review of “tax expenditures,” privatization of services, collective bargaining reform, and an examination of “securitization of assets/lease back arrangements.”

Democrats disagree with the Republican approach generally. There appears to be some modest agreement, however, on a few Medicaid issues, procurement reforms, prison sentencing reforms, and information technology sharing.

Tax Relief Act Summarized 12/17/2010

OMA Connections Partner, GBQ, has prepared a bullet point summary of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 about to be signed into law, probably today.

No Surprise, Unemployment Costs to Employers Growing 12/17/2010

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In an email from Douglas J. Holmes, President, UWC – Strategic Services on Unemployment & Workers’ Compensation, Washington, D.C., we learned this: According to estimates from the U..S Department of Labor for 2010 as compared to 2009 actual contribution rates, the average increase in state Unemployment Insurance (UI) rates is estimated at 34% as a percent of total wages.

The average percent jumped from 0.62% of total wages to 0.83% of total wages, beginning to show the significant increases in rates due to high claims loads and long claims durations in 2008 and 2009. Tax rate increases for individual employers may be significantly higher. This increase is the beginning of a trend that will push state UI contribution rates even higher in 2011 and 2012.

The majority of states showed increases as estimated for 2010 over 2009; here is the actual data by state.

Complicating the math is the fact that states like Ohio are required to begin repaying the federal government starting in September, 2011. Ohio is expected to owe more than $250 million in 2011 and 2012 in interest alone. Employers beware! The OMA Tax Policy Committee will assess the situation at the March 17 meeting.

Governor-elect Kasich Picks Testa as Tax Commissioner 12/10/2010

Governor-elect Kasich announced this week that Joe Testa will serve as Tax Commissioner in his administration. Mr. Testa previously served 17 years as Franklin County auditor.

Governor-elect Kasich and Mr. Testa have reaffirmed their commitment no tax increases.

Outgoing Tax Commissioner Lambasts Tax Foundation Analysis 12/10/2010

As Governor-elect Kasich announced the appointment of Joe Testa to lead the Department of Taxation, the outgoing tax commissioner lashed out at a D.C.-based organization for mischaracterizing Ohio’s tax environment. Commissioner Richard Levin's op ed was published in Business First. Levin said “junk science” was too generous a term for the foundation’s study.

Also this week on the tax front, Governor-elect Kasich was quoted by Gongwer News Service as considering changes to the Commercial Activity Tax. And, the leader of the group pushing for a ballot repeal of the Ohio estate tax was quoted as saying the it would not happen in 2011.

Federal Tax Extenders Saddled to Unemployment Extension 12/03/2010

Extended unemployment benefits began to expire this week for Ohioans who had been out of work for 99 weeks. The state pegs the unemployment rate at 9.9% down from 10% in September and reports 282,936 active unemployment claims as of November 29. Meanwhile in Congress another extension has been proposed. There is growing talk of a deal to combine the unemployment extension with several tax breaks.

Employers note -- off ledger from traditional state budget planning is the repayment the state might owe the federal government for borrowing to cover the unemployment compensation trust

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fund. Estimates for the interest alone equate to $100 million in 2011, and $183 million in 2012 ($36 billion nationally). Those are dollars that historically are repaid soley by employers. Several manufacturing leaders are part of a coalition urging the federal government to waive or postpone repayment requirements.

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Taxation Legislation Prepared by: The Ohio Manufacturers' Association

Report created on February 25, 2011

HB1 JOBSOHIO (DUFFEY, M) To authorize the Governor to create JobsOhio, a nonprofit economic development corporation.

All Bill Status: 2/18/2011 - SIGNED BY GOVERNOR 2/17/2011 - Sent to Governor for Signature 2/16/2011 - Consideration of Senate Amendments; CONCURRED 60-35 2/16/2011 - PASSED BY SENATE; Vote 31-2 2/16/2011 - Bills for Third Consideration 2/16/2011 - REPORTED OUT AS AMENDED, Senate Finance, (Fourth Hearing) 2/15/2011 - Senate Finance, (Third Hearing) 2/9/2011 - Senate Finance, (Second Hearing) 2/8/2011 - Referred to Committee Senate Finance 2/8/2011 - Senate Finance, (First Hearing) 2/1/2011 - PASSED BY HOUSE; Vote 59-37 2/1/2011 - Bills for Third Consideration 1/27/2011 - REPORTED OUT AS AMENDED, House Finance and Appropriations, (First Hearing) 1/26/2011 - Re-Referred to Committee 1/26/2011 - REPORTED OUT AS AMENDED, House State Government and Elections, (Second Hearing) 1/25/2011 - SUBSTITUTE BILL ACCEPTED, House State Government and Elections, (First Hearing) 1/11/2011 - Referred to Committee House State Government and Elections 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_1 HB3 REPEAL ESTATE TAX (GROSSMAN, C) To repeal the estate tax for the estates of individuals dying

on or after January 1, 2011.

All Bill Status: 2/16/2011 - REPORTED OUT, House Ways and Means, (Fourth Hearing) 2/9/2011 - SUBSTITUTE BILL ACCEPTED, House Ways and Means, (Third Hearing) 2/2/2011 - House Ways and Means, (Second Hearing) 1/26/2011 - House Ways and Means, (First Hearing) 1/11/2011 - Referred to Committee House Ways and Means 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_3 HB8 TAX PROMPT REMITTANCE DISCOUNT (BLAIR, T) To increase the sales and use tax prompt

remittance discount and to authorize a discount for prompt remittance of income tax withholding.

All Bill Status: 1/11/2011 - Referred to Committee House Ways and Means 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_8 HB10 REMEDIATION OF CONTAMINATED SITE (SEARS, B) To authorize refundable tax credits for the

completion of a voluntary action to remediate a contaminated site and for the return of such sites to productive use, and to exempt persons through 2017 who have issued covenants not to sue under the Voluntary Action Program from certain fees and penalties for one year after the issuance of such a covenant.

All Bill Status: 3/2/2011 - House Ways and Means, (Fifth Hearing) 2/23/2011 - House Ways and Means, (Fourth Hearing) 2/16/2011 - House Ways and Means, (Third Hearing) 2/9/2011 - House Ways and Means, (Third Hearing) 2/2/2011 - House Ways and Means, (Second Hearing)

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1/26/2011 - House Ways and Means, (First Hearing) 1/11/2011 - Referred to Committee House Ways and Means 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_10 HB17 TAX CREDIT FOR HIRING UNEMPLOYED (BAKER, N) To authorize a $2,400 income tax

withholding credit for an employer that hires and employs a previously unemployed individual.

All Bill Status: 1/11/2011 - Referred to Committee House Ways and Means 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_17 HB18 TAX CREDIT - EXPANDING BUSINESSES (BAKER, N) To authorize a nonrefundable tax credit for

a business that increases payroll and expands into a vacant facility.

All Bill Status: 3/2/2011 - House Ways and Means, (Sixth Hearing) 2/23/2011 - House Ways and Means, (Fifth Hearing) 2/16/2011 - House Ways and Means, (Fourth Hearing) 2/9/2011 - House Ways and Means, (Third Hearing) 2/2/2011 - House Ways and Means, (Second Hearing) 1/26/2011 - House Ways and Means, (First Hearing) 1/11/2011 - Referred to Committee House Ways and Means 1/11/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_18 HB43 OHIO VENTURE CAPITAL AUTHORITY (GOYAL, J) To increase the annual and aggregate limit on

the amount of tax credits the Ohio Venture Capital Authority may authorize.

All Bill Status: 1/26/2011 - Referred to Committee House Economic and Small

Business Development 1/20/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_43 HB44 SMALL BUSINESS WORKING CAPITAL LOAN PROGRAM (GOYAL, J) To create the Small

Business Working Capitol Loan Program.

All Bill Status: 1/26/2011 - Referred to Committee House Economic and Small

Business Development 1/20/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_44 HB58 INTERNAL REVENUE CODE (BECK, P) To expressly incorporate changes in the Internal Revenue

Code since December 15, 2010, into Ohio law.

All Bill Status: 2/23/2011 - PASSED BY SENATE; Emergency 31-1 Passed as emergency 32-0 2/23/2011 - Bills for Third Consideration 2/22/2011 - HB58 now includes SB6 2/22/2011 - REPORTED OUT AS AMENDED, Senate Ways & Means & Economic Development, (First Hearing) 2/16/2011 - Referred to Committee Senate Ways & Means & Economic Development 2/15/2011 - PASSED BY HOUSE; Passed 89-7 Emergency 88-8 2/15/2011 - Bills for Third Consideration; Pending Committee Report 2/9/2011 - REPORTED OUT AS AMENDED, House Ways and Means, (First Hearing) 2/1/2011 - Referred to Committee House Ways and Means 1/26/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_58 HB81 PERFORMANCE BUDGETING (SNITCHLER, T) To require performance budgeting by most state

agencies. All Bill Status: 2/22/2011 - House State Government and Elections, (Second Hearing)

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2/15/2011 - House State Government and Elections, (First Hearing) 2/2/2011 - Referred to Committee House State Government and Elections 2/2/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_81 HB98 INCOME TAX RATE FOR 70 1/2 YEARS OR OLDER (HOLLINGTON, R) To reduce the maximum

effective income tax rate applicable to unearned income of persons age 70 1/2 years or older to 1% beginning in 2013.

All Bill Status: 3/2/2011 - House Ways and Means, (First Hearing) 2/10/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_98 HB101 JOB CREATION/RETENTION CREDITS (WILLIAMS, S) To provide for a six-year trial period in

which taxpayers may include a limited number of the taxpayer's employees who work from home and whose rate of pay is at least three times the federal minimum wage as employees employed in the project for purposes of the job creation and retention credits if the recipient of the credit provides a specified level of capital investment, and to require the Director of Development to issue a report at the end if the six-year period.

All Bill Status: 2/16/2011 - Referred to Committee House Ways and Means 2/15/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_101 HB111 TAX DEDUCTION-SMALL BUSINESS (WILLIAMS, S) To authorize an income tax deduction for

small business owners' reinvestment of undistributed profits in business property, employee training, or research and development.

All Bill Status: 2/22/2011 - Referred to Committee House Ways and Means 2/22/2011 - Introduced

More Information: No link available SB1 JOBSOHIO (WAGONER, M) To authorize the creation of JobsOhio, the non-profit economic

development corporation.

All Bill Status: 2/2/2011 - Referred to Committee Senate Finance 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_1 SB4 PERFORMANCE AUDITS OF STATE AGENCIES (SCHAFFER, T) To require the Auditor of State to

conduct performance audits of certain state agencies.

All Bill Status: 3/1/2011 - House State Government and Elections, (First Hearing) 2/23/2011 - PASSED BY SENATE; Vote 33-0 2/23/2011 - Bills for Third Consideration 2/23/2011 - REPORTED OUT, Senate State & Local Government & Veterans Affairs, (Third Hearing) 2/16/2011 - BILL AMENDED, Senate State & Local Government & Veterans Affairs, (Second Hearing) 2/9/2011 - Senate State & Local Government & Veterans Affairs, (First Hearing) 2/2/2011 - Referred to Committee Senate State & Local Government & Veterans Affairs 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_4 SB5 COLLECTIVE BARGAINING REFORM (JONES, S) To make changes to Ohio's Collective

Bargaining Law, which was first enacted in 1983.

All Bill Status: 2/22/2011 - Senate Insurance, Commerce & Labor, (Fourth Hearing) 2/17/2011 - BILL AMENDED, Senate Insurance, Commerce & Labor, (Third Hearing) 2/15/2011 - Senate Insurance, Commerce & Labor, (Second Hearing)

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2/9/2011 - SUBSTITUTE BILL ACCEPTED, Senate Insurance, Commerce & Labor, (First Hearing) 2/2/2011 - Referred to Committee Senate Insurance, Commerce & Labor 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_5 SB6 JOB RETENTION TAX CREDIT (PATTON, T) To authorize a refundable job retention tax credit.

All Bill Status: 2/22/2011 - SB6 became part of HB58 2/22/2011 - Senate Ways & Means & Economic Development, (Third Hearing) 2/17/2011 - Senate Ways & Means & Economic Development, (Second Hearing) 2/10/2011 - Senate Ways & Means & Economic Development, (First Hearing) 2/2/2011 - Referred to Committee Senate Ways & Means & Economic Development 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_6 SB7 IRS TAX CHANGES (OBHOF, L) To expressly incorporate changes in the Internal Revenue Code

since December 15, 2010, into Ohio law, and to declare an emergency.

All Bill Status: 2/17/2011 - Senate Ways & Means & Economic Development, (Second Hearing) 2/10/2011 - Senate Ways & Means & Economic Development, (First Hearing) 2/2/2011 - Referred to Committee Senate Ways & Means & Economic Development 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_7 SB12 SMALL BUSINESS SET ASIDE (KEARNEY, E) To generally require that state agencies set aside a

certain amount of purchases for which only small business enterprises may compete.

All Bill Status: 2/2/2011 - Referred to Committee Senate State & Local Government &

Veterans Affairs 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_12 SB13 UNEMPLOYMENT MODERNIZATION TASK FORCE (SCHIAVONI, J) To allow an individual to

receive unemployment compensation benefits for unemployment related to domestic abuse or compelling family circumstances, to allow an individual to receive unemployment training extension benefits under specified conditions, and to create the Unemployment Modernization Review Task Force.

All Bill Status: 2/2/2011 - Referred to Committee Senate Insurance, Commerce &

Labor 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_13 SB47 CAT TAX CREDIT GROCERY STORES (KEARNEY, E) To authorize a commercial activity tax credit

for underserved community grocery stores.

All Bill Status: 2/17/2011 - Senate Ways & Means & Economic Development, (First Hearing) 2/2/2011 - Referred to Committee Senate Ways & Means & Economic Development 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_47 SB58 TAX CREDIT EMPLOYMENT CONVICTED FELONS (TAVARES, C) To create a tax credit for the

employment of individuals who have been convicted of felonies.

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All Bill Status: 2/10/2011 - Senate Ways & Means & Economic Development, (First Hearing) 2/2/2011 - Referred to Committee Senate Ways & Means & Economic Development 2/1/2011 - Introduced

More Information: http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_58

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February 18, 2011 Rob Nichols, (330) 760-7582, rob.nichols@governor.ohio.gov

KASICH SIGNS HISTORIC JOBSOHIO LEGISLATION

COLUMBUS – Ohio’s job-creation efforts took a major step forward today when Gov. John R. Kasich signed his first bill into law—legislation that replaces Ohio’s current government-driven job-creation efforts with a new private sector approach driven by JobsOhio, a private, non-profit corporation that will more effectively help Ohio’s job-creators, businesses and entrepreneurs thrive and grow.

JobsOhio is created by Am. Sub. House Bill 1 (Duffey) which was passed by the General Assembly Wednesday with bipartisan support, including support from eight of the Senate’s 10 Democrats.

Joining Kasich at the Statehouse bill-signing ceremony were Lt. Gov. Mary Taylor, Senate President Tom Niehaus (R-New Richmond), Speaker William Batchelder (R-Medina), bill sponsor Rep. Mike Duffey (R-Worthington), Sen. Chris Widener (R-Springfield), Sen. Keith Faber (R-Celina), Department of Development Director Mark Kvamme, and business leaders from across the state.

―I think people will look back on this day, with the creation of JobsOhio, and see it as the vehicle for the transformation of our economy. It is important that we move at the speed of business for one reason - people need jobs and with jobs comes hope,‖ said Kasich. ―This is about restoring the ability of our entrepreneurs, our business people and our job creators to weigh in with both feet, both arms and with their great brains to be able to help the people in the state of Ohio to compete once more.‖

Highlights of House Bill 1 include:

A Private Sector Approach: The governor is required to establish a non-profit corporation named ―JobsOhio‖ with the purpose of promoting economic development, business

recruitment, job creation, job retention and job training; Business-Savvy Leadership: JobsOhio will be led by a board of directors consisting of the

governor and eight directors appointed by the governor. Directors will represent target growth industries and have extensive business and economic development experience;

Transparency: JobsOhio will comply with strict accountability and transparency measures, including yearly financial audits, a conflict of interest policy, financial disclosure requirements for board members, and open forums for in-person meetings;

Accountability: JobsOhio will prepare and submit an annual report of its activities for the preceding year.

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HOUSE BILL 1: Creating JobsOhio and Taking the First Steps to Ohio’s Economic Revival

Ohio’s Economic Development Efforts Need a Revival: Though once cutting edge and a model for the nation, Ohio’s state economic development programs have become bogged down by bureaucracy and are no longer as effective as they need to be in order to revive the economy and create jobs. Companies complain that the Ohio Department of Development is not as responsive as its counterparts in other states, and the department has become burdened by countless programs unrelated to economic growth. Only 60 of the agency’s 400 employees are engaged in job retention and creation.

Ohio’s Economy and National Standing Have Suffered: Ohio has developed a reputation as being hostile to job creation and business. It’s essential that we turn this around if we want to get Ohio’s economy back on track. • CEO’s say Ohio is one of the worst states for business. In 2010 Ohio was 44th (this is down 10 spots from

2008). Chief Executive Magazine 2010 • Ohio is 48th in its prospects for growth in areas like job creation, income growth, business openings and

venture capital investments. Forbes Magazine Best States for Business 2009 • Ohio is 47th in its ability to compete economically with other states. Beacon Hill State Competitiveness

Report 2009 • Ohio Ranks 47th in its business tax climate. Tax Foundation 2010 State Business Tax Climate

JobsOhio Will Inject New, Needed Life Into Ohio’s Economic Development Efforts: Replacing Ohio’s government-based economic development efforts with a new approach rooted in the ways and understanding of the businesses that create jobs will allow Ohio to become more competitive through: • Freedom from bureaucratic delays and restrictions that are more common for government agencies. • JobsOhio’s ability to respond quickly to companies’ needs and to be more nimble when opportunities arise

to either attract or keep jobs in Ohio.

JobsOhio Will Be Structured and Operate Like the Businesses It Seeks to Grow and Recruit:

• Governance: JobsOhio will be run by a 9-member board that includes the governor, who will be the chair. Board members will be appointed by the governor and serve four year terms without compensation.

• Leadership: JobsOhio will be run by a chief investment officer nominated by the board and approved by the governor. The CIO will execute contracts, spend corporate funds and hire employees on behalf of JobsOhio.

• Funding: HB 1 provides an initial $1 million appropriation for its initial start-up. JobsOhio can also receive additional public and private funds.

• Accountability: JobsOhio will be overseen by both its board, the Department of Development, the Office of the Governor and the General Assembly. The board will establish an audit committee that will engage an independent certified public accountant to perform an annual financial audit. It will annually issue a report on its activities that will include: o An analysis of the state’s economy; o An overview of JobsOhio’s structure, strategies and major initiatives and financial condition; o The names and salaries of all employees of JobsOhio; o A copy of the most recent audit.

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• Within six months of the passage of the bill, the director of the Department of Department will review all

current programs and statutes and report back to the General Assembly on recommendations for changes.

The Department of Development Will Continue as a Liaison to JobsOhio, for the Time Being

• Contracting Agency: The department will contract with JobsOhio on behalf of the state and administer development programs in accordance with the work done by JobsOhio.

• Oversight Role: The department will enforce the reporting requirements of JobsOhio, including its annual report and financial audit.

• Staff Needs: The contracting out of some functions to JobsOhio will likely result in a reduction of the workforce at the department. Current employees with economic development expertise will be encouraged to apply for similar jobs at the new corporation.

• End Game: The final disposition of the department will be decided in future legislation.

The Director of the Department of Development Will Review All Programs to Decide Their Future Status

• Functions not focused on economic development could be transferred to other state agencies or eliminated.

###

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http://www.dispatch.com/live/content/insight/budget/index.html

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ALEC Spring Task Force Cincinnati

April 29 - 30

Sponsorship Opportunities Numerous leading state legislators including Senate President Niehaus and Speaker Batchelder will be taking part in this ALEC meeting. Sponsors will be recognized and are invited to participate. While this is national meeting and lawmakers from across the country will take part, given the location of this meeting, Great Lakes delegations are expected to be especially well represented. Chairman $20,000 Four complimentary registrations Recognition in the program and signage Invitation to VIP event and ALEC Board Dinner. Vice-Chairman $10,000 Two complimentary registrations Recognition in the program and signage Invitation to VIP event Director $5,000 One complimentary registration Recognition in the Program and on signage Invitation to VIP event Contact: Kara Joseph Sr. Legislative Aide Office of Rep. John Adams House Majority Whip Ohio House of Representatives Phone: (614) 466-1507

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1101 Vermont Ave, NW 11th FloorWashington, D.C. 20005

Phone: 202-466-3800 Fax: 202-466-3801www.alec.org

A D

YNA

MIC

PA

RTN

ERSH

IPO

ne o

f ALE

C’s

grea

test

stre

ngth

s is t

he p

ublic

-priv

ate

part

ners

hip.

ALE

C p

rovi

des t

he p

rivat

e se

ctor

with

an

unpa

ralle

led

oppo

rtun

ity to

hav

e its

voi

ce h

eard

, and

its

pers

pect

ive

appr

ecia

ted,

by

the

legi

slativ

e m

embe

rs.

ALE

C m

embe

rs b

enefi

t fro

m th

is pa

rtne

rshi

p of

bus

ines

s le

ader

s, po

licy

expe

rts,

and

legi

slato

rs th

roug

h ne

twor

king

, co

nfer

ence

s, Ta

sk F

orce

mee

tings

, and

Issu

e Br

iefin

gs.

This

part

ners

hip

iden

tifies

issu

es a

nd th

en re

spon

ds w

ith

com

mon

-sen

se, r

esul

t-or

ient

ed p

olic

ies.

The

two

grou

ps

wor

k in

uni

son

to so

lve

the

chal

leng

es fa

cing

the

natio

n. Th

e re

sults

are

pol

icie

s tha

t will

defi

ne th

e A

mer

ican

pol

itica

l la

ndsc

ape

in th

e 21

st ce

ntur

y.

ALE

C is

a n

onpr

ofit 5

01(c

)(3)

org

aniz

atio

n. A

ll co

ntrib

utio

ns a

re fu

lly ta

x de

duct

ible

to th

e ex

tent

allo

wed

by

law.

ALE

C’s

tax

ID n

umbe

r is 5

2-01

4097

9.

WH

AT IS

ALE

C?

With

nea

rly 2

,000

mem

bers

, ALE

C is

the

natio

n’s la

rges

t no

npar

tisan

, ind

ivid

ual m

embe

rshi

p as

soci

atio

n of

stat

e le

gisla

tors

. Wel

l ove

r 100

ALE

C m

embe

rs h

old

seni

or

lead

ersh

ip p

ositi

ons i

n th

eir s

tate

legi

slatu

res.

ALE

C’s

alum

ni

incl

ude

alm

ost 8

0 cu

rren

t mem

bers

of C

ongr

ess a

nd si

tting

or

form

er g

over

nors

.

ALE

C’s

goal

is to

ens

ure

that

eac

h of

its l

egisl

ativ

e m

embe

rs

is fu

lly a

rmed

with

the

info

rmat

ion,

rese

arch

, and

idea

s the

y ne

ed to

be

an a

lly o

f the

free

-mar

ket s

yste

m.

Priv

ate

Sect

or M

embe

rshi

p

149 of 150

MEM

bERS

HIP

LEv

ELS

& b

ENEf

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ntac

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LEC

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licat

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pol

icy

pape

rs

m

ailin

g lis

tv

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ess t

o M

embe

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nly

sect

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of th

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eb si

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b

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000

v 5

cont

acts

on

ALE

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atio

ns a

nd p

olic

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pers

mai

ling

list

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cces

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Mem

bers

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y se

ctio

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Web

site

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ual M

eetin

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gist

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nv

One

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tes &

Nat

ion

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tatio

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inne

r at t

he A

nnua

l

Mee

ting

v D

iscou

nt a

dver

tisin

g ra

tes i

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LEC

pub

licat

ions

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ERso

N C

lub

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5,00

0v

5 co

ntac

ts o

n A

LEC

pub

licat

ions

and

pol

icy

pape

rs

m

ailin

g lis

tv

Acc

ess t

o M

embe

rs O

nly

sect

ion

of th

e W

eb si

te

(

ww

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nnua

l Mee

ting

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stra

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v O

ne S

tate

s & N

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licy

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mit

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stra

tion

v In

vita

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to a

ll A

LEC

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eve

nts

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tabl

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atin

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r the

Ope

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cheo

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ALE

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eetin

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tatio

n to

Boa

rd R

ecep

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and

Boar

d D

inne

r at t

he

A

nnua

l Mee

ting

v D

iscou

nt a

dver

tisin

g ra

tes i

n A

LEC

pub

licat

ions

No

tE:

A

ll m

embe

rshi

p pa

ckag

es in

clud

e th

e fo

llow

ing

bene

fits:

v O

ppor

tuni

ty to

join

any

num

ber o

f Tas

k Fo

rces

v N

etw

orki

ng o

ppor

tuni

ties a

t the

stat

e an

d na

tiona

l lev

els

a

t all

mee

tings

v In

vita

tions

to S

peci

al E

vent

sv

Disc

ount

ed re

gist

ratio

n fo

r all

com

pany

repr

esen

tativ

es

t

o A

LEC

eve

nts

v D

iscou

nted

exh

ibit

boot

h ra

tes a

t ALE

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eetin

gs

ALE

C N

ATI

ON

AL

TASK

fO

RCES

ALE

C’s

natio

nal T

ask

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es se

rve

as p

ublic

-pol

icy

labo

rato

ries w

here

legi

slato

rs d

evel

op m

odel

pol

icie

s to

use

acro

ss th

e co

untr

y. Th

e ni

ne T

ask

Forc

es co

mm

issio

n re

sear

ch, p

ublis

h iss

ue p

aper

s, co

nven

e w

orks

hops

, dist

ribut

e iss

ue a

lert

s, an

d se

rve

as cl

earin

ghou

ses o

f inf

orm

atio

n on

fr

ee-m

arke

t pol

icie

s in

the

stat

es.

The

cent

erpi

ece

of th

e Ta

sk F

orce

s is A

LEC

’s m

odel

le

gisla

tion.

To

date

, ALE

C h

as co

nsid

ered

, writ

ten,

and

ap

prov

ed h

undr

eds o

f mod

el b

ills,

reso

lutio

ns, a

nd p

olic

y st

atem

ents

. Hist

oric

ally,

dur

ing

each

legi

slativ

e cy

cle,

ALE

C

legi

slato

rs in

trod

uce

mor

e th

an 1

,000

pie

ces o

f leg

islat

ion

base

d on

thes

e m

odel

s, ap

prox

imat

ely

17 p

erce

nt o

f whi

ch

are

enac

ted.

AlE

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sk F

oR

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bER

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il Ju

stic

e

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00C

omm

erce

, Ins

uran

ce

$2

,500

&

Eco

nom

ic D

evel

opm

ent

Ed

ucat

ion

$2

,500

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lth &

Hum

an S

ervi

ces

$3

,000

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rnat

iona

l Rel

atio

ns

$1

0,00

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atur

al R

esou

rces

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blic

Saf

ety

& E

lect

ions

$2,5

00Ta

x &

Fisc

al P

olic

y

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00Te

leco

mm

unic

atio

ns

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,000

&

Info

rmat

ion

Tech

nolo

gy

vALU

E O

f M

EMbE

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IPTh

roug

h A

LEC

’s Re

sour

ce C

ente

r, th

e A

LEC

staff

pro

vide

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sear

ch, p

olic

y an

alys

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chol

arly

art

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fere

nce m

ater

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d ex

pert

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ide

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trum

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tiN

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orce

sum

mit

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n in

tens

ive

mee

ting

of A

LEC

’s Ta

sk F

orce

mem

bers

, the

Sum

mit

is de

signe

d to

kee

p m

embe

rs

ab

reas

t of n

ew d

evel

opm

ents

in th

e sta

tes w

ith T

ask

Forc

e

mee

tings

, and

hea

rings

on

pres

sing

issue

s. v

Ann

ual

Mee

ting

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oxim

atel

y 2,

000

legi

slato

rs, b

usin

ess e

xecu

tives

, and

pu

blic

-pol

icy

expe

rts g

athe

r for

four

day

s to

disc

uss

iss

ues a

nd d

evel

op p

olic

y. Ea

ch m

eetin

g fe

atur

es 3

5 to

40

wor

ksho

ps, p

lena

ry se

ssio

ns, a

nd T

ask

Forc

e m

eetin

gs,

as

wel

l as n

umer

ous n

etw

orki

ng o

ppor

tuni

ties a

t soc

ial

ev

ents

. v

sta

tes

and

Nat

ion

Poli

cy s

umm

it

The

Sum

mit

intr

oduc

es th

e A

LEC

age

nda

to n

ewly

el

ecte

d an

d fr

eshm

an st

ate

legi

slato

rs fo

r a th

ree-

day

co

nfer

ence

of i

nten

sive

educ

atio

nal s

essio

ns a

ddre

ssin

g

issue

s tha

t will

be

at th

e to

p of

age

ndas

the

follo

win

g ye

ar.

Poli

Cy

Pu

bliC

Atio

Ns

ALE

C p

rodu

ces n

umer

ous p

ublic

atio

ns o

n cu

rren

t pol

icy

topi

cs su

ch a

s: v

AlE

C s

tate

Fac

tor

A

per

iodi

c pub

licat

ion

on th

e iss

ues f

acin

g st

ate

le

gisla

tors

v R

epor

t C

ards

and

spe

cial

stu

dies

St

ate-

by-s

tate

ana

lyse

s of c

ritic

al is

sues

such

as e

duca

tion,

natu

ral r

esou

rces

, hea

lth, a

nd ta

x an

d fis

cal p

olic

y v

AlE

C A

cade

my

and

stat

e is

sue

sem

inar

s

Thro

ugho

ut th

e ye

ar A

LEC

hol

ds is

sue-

spec

ific s

emin

ars

in

20

to 3

0 st

ate

capi

tols.

The

ALE

C A

cade

my

is a

spec

ial

tw

o-da

y in

tens

ive

prog

ram

on

a sp

ecifi

c iss

ue, f

eatu

ring

natio

nal e

xper

ts a

s fac

ulty

v in

side

AlE

C

Tim

ely

curr

ent-

even

t and

pol

icy

artic

les f

or A

LEC

mem

bers

are

pub

lishe

d 10

tim

es a

yea

r v

AlE

C W

eb s

ite

A

LEC

’s W

eb si

te (w

ww.

alec

.org

) fea

ture

s new

s, le

ctur

es,

pu

blic

atio

ns, T

ask

Forc

e up

date

s, th

e A

LEC

cal

enda

r, an

d

mor

e th

an 7

00 p

iece

s of m

odel

legi

slatio

n th

at c

an b

e

ea

sily

dow

nloa

ded

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