Legislative Update - April

The Ohio General Assembly returned to Columbus to work on passing a number of bills, none more important than the state budget which must be enacted prior to July 1st.  Cuyahoga County officials will also be active as they focus on diversity and equity issues.  Please contact Glen Shumate or Tim Linville if you have any questions or would like more information regarding any of the topics in this article. 

Ohio To Spend Billions For Transportation Projects

Governor DeWine signed the Ohio Transportation Budget, House Bill 74 (Oelslager.) The bill was approved with bipartisan support in both the Ohio House of Representatives and Ohio Senate, investing $8.3 billion over the biennial.  

The Transportation Budget includes:

• $318 million for highway safety projects.
• $2.6 billion for other state-maintained roadway improvements.
• $2.4 billion for local roadway improvements.
• $74 million in public transit.
• $116 million for the Public Works Commission, including $14 million for emergency road-slip repair.
• $8 million for electric vehicle charging station grants through the Ohio Environmental Protection Agency.

The bill added an adjustment to force account limits that increases those limits every two years beginning on July 1, 2021 that is the lesser of either

1. 3.0%

OR

2. the percentage increase in ODOT’s construction cost index as annualized and totaled for the prior two calendar years.

This will affect the following types of projects: highway projects in unchartered municipal corporations (current force account limit of $30,000 per project); maintenance and repair of townships roads (current force account limit of $45,000 per project); construction and reconstruction of township road (current force account limit of $15,000 per mile); county highway projects (current force account limit of $30,000 per mile of construction or reconstruction); and county bridge and culvert projects in general (current force account limit of $100,000).

The bill also created a Joint Committee on Force Accounts to take testimony and discuss issues, including issues surrounding increased construction costs and the types of projects the political subdivisions are capable of completing under current limits and if the limits were increased. Requires the committee to submit a report of its findings and a summary of testimony by May 15, 2021.  

CEA and others worked to change the original Senate language that was more harmful in regard to force accounts.

Tax Legislation Signed By Governor To Ease Filing And Aid Businesses

Governor DeWine signed Senate Bill 18, sponsored by Senators Kristina Roegner and Tim Schaffer.  The bill incorporates federal Internal Revenue Service (IRS) changes into Ohio's tax code and contains these provisions:

• Incorporates into Ohio income tax law changes to federal tax law taking effect since March 27, 2020.
• Exempts “second draw” paycheck protection program (PPP) loan amounts forgiven under the Consolidated Appropriations Act, 2021 from the commercial activity tax (CAT).
• Exempts from the CAT Bureau of Workers’ Compensation (BWC) dividends paid to employers in 2020 and 2021.
• Authorizes the Tax Commissioner to temporarily abate any interest or penalties for the underpayment of state and school district income taxes due on unemployment benefits received in 2020.
• Allows individuals to elect to have state income tax withheld from their unemployment benefits.
• Sets the rate of a withholding tax paid by certain pass-through entities on a percentage of its nonresident investors’ distributive income equal to the income tax rate on taxable business income, effectively reducing those withholding rates.

Cuyahoga County Executive Introduces Equity Ordinances

Three ordinances were introduced and referred to committees where they will begin hearings. 

O2021-0006: An Ordinance enacting Section enacting Section 202.01 of the County Code to identify the responsibilities of the Department of Purchasing in accordance with Section 10.01 of the County Charter; requiring confirmation of the Director of the Department by Council; and declaring the necessity that this Ordinance become immediately effective.  

The Ordinance was referred to the Public Works, Procurement, and Contracting Committee where it will have a hearing this week.  The ordinance will identify the responsibilities of the Department of Purchasing Department of Purchasing as the duties of a Department of Purchasing have been performed by the Office of Procurement and Diversity, and the County now desires to more clearly define the responsibilities of the Department of Purchasing.

O2021-0007: An Ordinance enacting Section 202.21 of the County Code, establishing a Department of Equity and Inclusion to enhance equity both within County government and throughout the community of Cuyahoga County; amending Chapter 509 of the County Code to specify certain duties of the Department; and declaring the necessity that this Ordinance become immediately effective.

The legislation was referred to the Cuyahoga County Human Resources, Appointments & Equity Committee where it is up for a hearing this coming week.  The ordinance will create the Department of Equity and Inclusion under the supervision of the County Executive and the Fiscal Officer.  Some of the department’s duties will include:

• increasing participation of minority- and women-owned business enterprises (MWBE) in County contracting and purchasing opportunities
• working with the Office of Innovation and Performance, develop metrics and reports regarding whether County agencies meet or exceed their MWBE contracting goals
• working with the Human Resources Department, develop and implement programs, training
• serving as an ombudsman to accept and evaluate inquiries and complaints 
• the Director of Equity and Inclusion reserves the right and discretion to recommend rejecting any bid or proposal based on the evaluation of same for compliance with any MWBE program established in accordance with this Section or any equity or inclusion program otherwise provided for in the County Code.

O2021-0008: An Ordinance amending Chapters of the County Code to reflect the dissolution of the Office of Procurement and Diversity and its replacement by the Department of Purchasing and the Department of Equity and Inclusion; and declaring the necessity that this Ordinance become immediately effective.  The ordinance was referred to the Cuyahoga County Human Resources, Appointments & Equity Committee where it is up for a hearing this coming week.  The legislation will reflect the dissolution of the Office of Procurement and Diversity and its replacement by the Department of Purchasing and the Department of Equity and Inclusion in code.  The ordinance eliminates codified references to the Office of Procurement and Diversity and replaces such references with references to either the Department of Purchasing or the Department of Equity and Inclusion consistent with their respective roles and responsibilities.  

CEA has met multiple times with County officials on these provisions and will continue to do so during the committee process. 

State Budget Undergoes Changes In The Ohio House

After hundreds of amendments were submitted for HB 110 (Oelslager) - State Budget, the Ohio House accepted a substitute version of Governor DeWine’s proposal.  CEA advocacy efforts were successful, with this current version of the bill, as harmful language regarding cooperative purchasing agreements, unemployment compensation, further increasing of force accounts, weakening of licensure for construction trades, weakening of prevailing wage, and or private funding of apprenticeships DID NOT make it into the bill.   The House will now consider further amendments to the budget with the plan to vote on it during the week of April 19th. 

Some provisions added in the sub bill of interest include:

• Two percent across the board personal income tax rate cut – this will reduce taxes by approximately $380 million over the biennium. 
• COVID-19 Relief Funding - appropriates $155 million in COVID-19 relief aid to help businesses impacted by the pandemic. Grants from this funding will be available in the fiscal year beginning July 1st, including $10 million in relief for new businesses.
• Main Street Job Recovery Program – The measure provides $500,000 over the biennium to be used for grants to non-profit organizations to create business development and employment opportunities targeted to low- and moderate-income individuals as well as individuals of the re-entry population.