Legislative Update - March 2021

The Ohio Legislature remains very active as they debate multiple budget bills, education reform, energy reform and other important issues that impact your business. Below are current legislative issues that impact CEA members. 

Operating Budget

Multiple sub-committees have been meeting intensely hearing testimony on all aspects of the state budget. Initial amendments are due the week of March 8th which will constitute the first round of changes to the budget for the Ohio House.  CEA’s lobbying team is involved with various hearings, legislators, and industry partners as this massive bill takes shape.  In addition to the various provisions previously reported on, here are provisions of interest:

• OFCC - The Commission’s FY22-23 budget request focuses on the staff, expertise, and technology resources that will allow us to continue to deliver construction projects that result in quality facilities that are well planned, on time, and on budget.  
• WBE / Minority Owned Micro Loan - The budget contains a proposed micro-loan program for women-owned businesses. A similar program is proposed for minority-owned businesses.

CEA Highlights Importance Of Prompt Pay To Ohio House Commerce and Labor Committee 

CEA supported legislation (HB 68) requires owners of private construction projects to timely pay the prime contractor no more than 30 days after the prime contractors provide final invoices to the owners.  The committee heard testimony from supporters of the bill on March 2nd.  Tim Linville provided testimony on behalf of CEA members stating, “Contractors and their employees should not have to wait weeks or even months to be paid for installed material and labor as this can impede pursuit of new business, decrease company efficiency and place small businesses at risk of default with their suppliers and employees.”  For a review of Mr. Linville’s testimony please click here. 
 

Cuyahoga County Continues Conversation On Diversity And Equity

CEA continues to meet with the Administration and County Council members regarding these important topics.  CEA has emphasized that prompt pay, pre bid information, frequent coordination in our industry sector, and opportunities to grow small and mid sized businesses are key parts of the discussion. CEA also continues to reach out to the Internal and External Equity Committees. 
 

Transportation Budget Passes The Ohio House 

The Ohio House of Representatives passed the bill 87-8. The bill will now move to the Ohio Senate for further deliberations.  Rep. Tom Patton stated,  "You will never be asked to vote this year and this General Assembly for a bigger jobs bill than you're going to be able to vote for today. We're putting $7 billion worth of work in the roads and bridges in Ohio." The bill has $100 million for major new construction projects.

BWC Budget Hearings Continue

BWC Budget -  HB 75 makes appropriations for the BWC and provides authorization for BWC programs. The bill continues to be heard in the Ohio House Insurance Committee and provisions include:

• Creating a Center of Excellence to establish a PPE Research and Development Center, focusing on the commercialization of PPE to be manufactured in Ohio. Using Ohio-specific injury and illness data to prioritize efforts in industries with biggest needs and biggest opportunities to improve workforce health and safety. 
• Continuing Ohio’s Occupational Safety and Health Research Program to provide funding for research projects of up to $250,000 per project over a duration of 12 to 24 months with Ohio not-for-profit higher education institutions. 
• Continuing Safety Grant funding at $35 million in each year of the biennium
• Developing a Medication Therapy Management (MTM) program to deliver medication therapy management to injured workers with a goal of improving health outcomes and preventing chronic opioid use and opioid misuse. 

Efforts To Weaken Prevailing Wage Begin 

HB 146 received a first hearing, sponsor testimony, before the House Commerce and Labor Committee this week.  The bill is a similar to versions that have been introduced in previous legislative sessions.  The bill would allow political subdivisions, special districts, and state institutions of higher education to elect to apply the Prevailing Wage Law to public improvement projects. Rep. Craig Riedel, a sponsor of the legislation, called prevailing wage a "state government overreach into local government affairs" that "works opposite of free market principles." The sponsor stated the bill would double the threshold for vertical construction when Prevailing Wage is used from $250,000 to $500,000.The bill will likely have hearings in the House, but at this time the Senate seems more reserved on the legislation.  Protecting prevailing wage is paramount for the construction industry. CEA will continue to advocate to legislators of the importance of prevailing wage to Ohio consumers, Ohio workers, and to quality efficient construction projects.  CEA is working with our legislative allies and industry partners to continue to tell the facts about this important state law. 

Tax Law Reform and Tax Relief 

SB 18 recently passed the Ohio Senate and is now being heard in the Ohio House Ways & Means Committee. The bill incorporates changes made at the federal level to the IRS code. 

• Entertainment & meals business expense: for a limited time would allow deductions at 100% (was previously 50%). 
• PPP loan forgiveness: the bill states the PPP loans will not be treated as gross receipts under Ohio’s commercial activity tax (CAT) and, therefore, they will not be taxable.
• Exempts BWC dividends from CAT : The excess surplus of the state insurance fund received by taxpayers from BWC is clarified so that these monies are not subject to CAT.

COVID-19 Relief Bill Introduced

The legislature introduced legislation in both the House and Senate to spend more than $2 billion in coronavirus relief that has already been authorized. The money will be directed to schools, businesses, public health professionals, child care providers, housing-insecure persons and others with monetary assistance. Both chambers, which are in the midst of hearing the state operating budget and dozens of other pieces of pending legislation are expected to start hearings the week of March 8th. 

The companion bills contain:

• $150 million for a second round of small business grants  
• $10 million for new business grants
• $465 million in rent and utility assistance
• $683 million for public schools 
• $155 million for private schools 
• $173 million for public health
• $19 million for Educational Service Centers, Joint Vocational Schools and Ohio's County Boards of Developmental Disabilities
• $8 million for the Adjutant General's Office 
• $112 million for child care providers 
• $20 million for indoor entertainment grants
• $4.7 million for fairs to get $50,000 each
• $3 million for the state's two veterans homes 
• $100 million for bars and restaurants
• $25 million for lodging businesses