CEA Testifies Against Harmful Joint Purchasing Legislation

SB 23, a bill that CEA and our industry partners were successful in stopping last legisla-tive session, was reintroduced earlier this year. If enacted, the bill would expand political subdivision joint purchasing authority to expressly include purchases for construction services. SB 23 also bypasses the competitive processes and protections of standard construction law. Finally, the legislation would negatively impact advertising, bonding, subcontractor protections while making the award of construction contracts less trans-parent. Tim Linville, Chief Executive Officer of CEA, submitted opponent testimony to the committee. (See attached) Although SB 23 has not been heard in the committee during last couple of weeks, CEA will continue to engage with legislators expressing our opposition to the bill.

State Transportation and BWC Budgets

Governor Signs Transportation Budget

After negotiations between House and Senate legislators on House Bill 23, Ohio’s transportation budget, the bill was passed and signed by the Governor. The bill, which takes effect July 1, directs how the state will spend approximately $13.5 billion in state and federal revenue over the next two years. One of the most contentious issues that House and Senate resolved was in regard to force accounts which the thresholds have not in-creased since 2003. The House version set the force account thresholds based upon the scope of work, while the Senate version changed this to allow local governments to set their own force account limits or use an increased limit indexed to inflation. After working with interested parties, the agreement between the chambers increased the current monetary thresholds by 133% and will also increase those limits annually based on the Department of Transportation's construction cost index, with a 5% cap.

Finally, HB 23 provides nearly $7.5 billion for ODOT to use for state highway improve-ments. This includes more than $2.2 billion for pavement upgrades, $700 million for bridge improvements, $964 million for local government programs and projects, $200 million for transit, and $579 million for major projects funded by the Transportation Re-view Advisory Council.

BWC Budget

The Ohio House Insurance Committee unanimously reported the BWC budget (HB 31) out of its committee. Before voting on the bill, an amendment was accepted that eliminated the proposed name change for the agency. Under the as-introduced version of the bill, the agency was renamed from the Bureau of Workers’ Compensation to the Department of Workforce Insurance and Safety. Many legislators wanted to delete the pro-posed new name from the bill because they believed would cause confusion for Ohio employers and employees. Finally, because the bill contains appropriations, HB 31 was then re-referred to the House Finance Committee where it was also passed. HB 31 will now go to the House floor for a vote and then the Senate will begin hearings.

Cleveland City Council Passes Budget

After weeks of hearings and making changes to Mayor Bibb’s proposed budget, Cleve-land City Council approved a $1.9 billion budget. The budget includes more than $710 million in general fund daily operating expenses.

Some of the changes to the mayor’s introduced budget include but are not limited to:

· Council restoring $600,000 to the Department of Building and Housing, for six positions, including three building inspectors and staff focused on lead-safety and managing the city’s rental home registry. The goal for the Housing Department is to increase its ability to be proactive and not be as reliant on complaints to drive the department.

· The Office of Equal Opportunity gaining $200,000 which will help fund two posi-tions to aid with community benefits and compliance.

· Some $1.3 million for neighborhood infrastructure needs being added.

· Council enabling raises for community engagement staff at community develop-ment corporations.

Hearings Likely On Community Benefits Agreement Legislation

Cleveland City Council will begin hearings on two pieces of community benefits legisla-tion within the next few weeks. Ord. 297-2023-enacting Chapter 191A regarding Com-munity Benefits and Ord. 298-2023-Charter amendment Section 167 regarding public improvements. CEA has worked with the sponsor Council President Blaine Griffin and other council members during this process and will continue to do so as these ordi-nances go through the committee process. (See attached)

City Of Cleveland Permitting

With the citywide survey of properties continuing, Cleveland has as its goal competition by April. Once finalized, there could be a four-to-six-week timeframe to compile all the data and produce a final report. The city also has hired a consultant to look at all city permits and efficiencies and its working on a schedule to start the process of review. CEA continues to work with the City and the Building Department to provide further perspective of the issues that impact our industry.

CEA Continues Youth Outreach - Highlighting Construction As A Career

Cleveland City Council recently passed legislation that will provide services to address educational disparities in disproportionately impacted communities. The legislation pro-vides up to $2.1 million for the Planning and Career Exploration Program (PACE). PACE is a program that focuses on 6th - 12th grade curriculums. The program provides students with knowledge, skills and experiences for them to discover occupations or careers they may want to pursue after high school. The Construction Employers Associa-tion is happy to report that we are named as a key industry/employer partner in PACE, and we are looking forward to educating young people about the wonderful benefits working in our industry.

County Executive Chris Ronayne Continues To Fill Out Key Staff Positions

County Executive Roynane nominated Sarah A. Nemastil, J.D., to lead the County’s De-partment of Human Resources. Ms. Nemastil, who currently serves as the Administrator of Human Resources for the Sheriff’s Department, previously served the County as an Assistant Law Director within the Labor and Employment practice group, specializing in labor and employment issues. The Director of HR manages recruitment, hiring, firing, compensation and other employment related matters for the County Executive and 4,300 plus employees. The Executive also this month announced nominations for Senior Health and Human Services staff to continue to build his leadership team.