Legislative Update - June

Ohio Senate Approaches Final Stages With Ohio’s Main Operating Budget

The budget process continues in earnest and is nearing its completion in the Senate.  This last week, the Ohio Senate Finance Committee accepted a substitute bill (HB 110 Budget - Creates appropriations for FY 2022-2023 -Oelslager) putting the Senate’s mark on the state budget.  There will be further changes ahead with amendments and an omnibus bill due.  The Senate’s goal is to have the bill voted on by the entire chamber the week of June 7th.    CEA is pleased to report that through its efforts and others problematic language which would have caused delays and jeopardized projects for contractors doing work with the State was removed.  We are also happy to report that with CEA and other industry partners work the bill does NOT contain any attacks on prevailing wage or attacks on other key issues important to contractors.  The budget must be completed by July 1st, thus CEA will continue its work on this bill as a voice for our industry.

Here are some other provisions that maybe of interest:

• Income Tax Cut - Increases the income tax cut for Ohioans from 2% to 5%. This is an across-the-board reduction, over 2 years.  It will save Ohioans an estimated $874M and will include funding to immediately adjust tax withholding rates.
• Drug Testing - Clarifies that an individual cannot bring a lawsuit if an employer terminates an employee for failing the company’s drug policy.
• Transfer of Equal Employment Opportunity Division and Contractor Compliance Program from DAS to Development - Transfer’s responsibility to administer the Contractor Compliance Program from DAS to DEV. (The program ensures state contractors adhere to state affirmative action policies.)
• Tax Savings - (Permanent CAT exemption for BWC dividends) - Authorizes a CAT exemption for Bureau of Workers' Compensation (BWC) dividends paid to employers, beginning with dividends paid in 2022.

CEA Continues Its Important Work with Cuyahoga County

The County Human Resources, Appointments, & Equity Committee passed a resolution that now goes to the full Council.   R2021-0134: A Resolution confirming the County Executive’s appointment of Glen Shumate to serve on the Cuyahoga County Citizens’ Advisory Council on Equity for an unexpired term ending 7/14/2022 was voted out of committee at its first hearing. The Advisory Council is a key resource for formulating the County’s plans regarding Equity.

Prompt Pay Bill Passes the Ohio House 86-10

The Ohio House recently passed a CEA supported measure, HB 68, requiring construction contractors to be paid within 30 days.

The bill, which is sponsored by Rep. Jon Cross (R-Kenton) and Rep. Bride Rose Sweeney (D-Cleveland), mandates those private owners of construction projects pay for contracted work 30 days after a request is made or 30 days after it is certified compliant. The measure, which passed 86-10, would apply 18% annual interest rate to payments not made on time.

In his floor speech, Rep. Cross said, “We’re trying to send a message across the country that if you're a bad developer, we don't want you to come to Ohio and stiff our contractors,” Rep. Sweeney added that contractors who testified in support of the bill said they sometimes must wait months to receive payment after completing their work.  HB 68 was referred to the Senate Workforce and Higher Education Committee on May 26th and has not yet received a hearing.

Bill To Require Political Subdivisions To Recognize State Certifications for MBE’s Passes

SB 105, sponsored by Sen. Vernon Sykes (D-Akron) and Sen. Kirk Schuring (R-Canton), passed the Senate by a vote of 33-0 on June 2nd.  The bill will require political subdivisions to recognize state certifications of minority business enterprises as well as Women and Veteran-Friendly Business enterprise programs.  The intent is to greatly simplify the local certification process, saving time, paperwork, and fees.

In her floor speech, Sen. Nickie Antonio (D-Lakewood) applauded including women-owned business in the bill given the hardships faced amid the COVID-19 pandemic.

Secretary of State Frank LaRose, supporter of SB 105, welcomed its passage in a statement.

“The guiding principle of state government should be to foster and encourage business creation, but for many minority entrepreneurs, red-tape and bureaucracy have stood in the way of their success.  SB 105 has not been referred to a House committee yet.

BWC Budget Passes the Ohio Senate As Final Deliberations Start

The Ohio Senate unanimously passed (33-0) the BWC Budget Bill on June 2nd. The BWC budget appropriates about $715 million in employer assessments to pay for operations in Fiscal Years 2022-2023.

The Senate deleted a House provision freeing up reporters' access to names of workers' compensation claimants. Some Senators were concerned that the language, if it became law, could lead to a blogger accessing names of claimants.  In addition, the public records amendment adopted also eliminates a statutory prohibition against soliciting a claimant for legal representation that was previously found unconstitutional in Bevan & Associates, LPA v. Yost.

Two other amendments successfully offered by Chairman Hackett would, he said: "clean up" a House provision to suspend the prohibition on the use of power of attorney to cash or endorse a check on behalf of a claimant; and delay until Jan. 1, 2022 an alternative employer organization from identifying itself as a professional employer organization, and eliminates the ability of an AEO to use a bond to satisfy a security requirement for registering with BWC. HB 75 now goes back to the House as the bill appears headed for a conference committee to resolve the differences between the House and Senate versions of the bill.