By: Anthony E. Core
The following is a summary of recent Ohio General Assembly activity relating to economic development matters through June 7, 2020.
LEGISLATION RECENTLY ENACTED
House Bill 2 (Passed December 12, 2019; signed by the Governor January 13, 2020; effective April 12, 2020.) This Bill creates the TechCred Program and the Individual Microcredential Assistance Program, and develops a grant program to support industry sector partnerships.
House Bill 62 (Passed February 12, 2019; signed by the Governor April 3, 2019; most provisions effective July 1, 2019.) This Bill in the biennial transportation budget bill, making appropriations for programs related to transportation and public safety for the biennium beginning July 1, 2019.
House Bill 166 (Passed July 17, 2019; signed by the Governor July 18, 2019; appropriation and tax provisions effective July 18, 2019; other provisions generally effective October 17, 2019.) This Bill is the State’s Operating Budget for fiscal years 2020-2021. The Bill includes the following provisions:
House Bill 197 (Passed March 25, 2020; signed by the Governor March 27, 2020; effective March 27, 2020.) Originally, this Bill would have enacted the “Tax Code Streamlining and Correction Act” to make technical and corrective changes to the laws governing taxation, but it was subsequently substantially amended to make significant changes regarding the COVID-19 emergency.
Senate Bill 255 (From the Prior General Assembly - Passed December 19, 2018; signed by the Governor January 4, 2019; most provisions effective April 5, 2019, but home inspector provisions effective November 1, 2019.) This Bill makes various changes regarding occupational licensing boards, establishes the Home Inspector Law and creates the Ohio Home Inspector Board.
LEGISLATION PASSED BY IN THE HOUSE
House Bill 7 (Introduced May 13, 2019; passed by House June 20, 2019; first hearing in Senate Finance Committee on October 22, 2019.) This Bill would create the H2Ohio Trust Fund for the protection and preservation of Ohio's water quality, create the H2Ohio Advisory Council to establish priorities for use of the Fund for water quality programs, and authorize the Ohio Water Development Authority to invest the money in the Fund.
House Bill 75 (Introduced February 14, 2019; passed by House on December 11, 2019; referred to Senate Local Government, Public Safety and Veterans Affairs Committee on February 12, 2020.) This Bill would require local governments that contest property values to formally pass an authorizing resolution for each contest and to notify property owners.
House Bill 76 (Introduced February 14, 2019; passed by House October 24, 2019; fourth hearing in Senate General Government and Agency Review Committee on January 22, 2020.) This Bill would enact the “Ballot Uniformity and Transparency Act” to modify the form of election notices and ballot language for property tax levies.
House Bill 264 (Introduced May 28, 2019; passed by House on December 12, 2019; second hearing in Senate Energy and Public Utilities Committee on May 27, 2020.) This Bill would allow the Ohio Water Development Authority to provide for the refinancing of loans for certain public water and waste water infrastructure projects.
LEGISLATION INTRODUCED IN THE HOUSE
House Bill 13 (Introduced May 16, 2019; sixth hearing in House Finance Committee on June 2, 2020.) This Bill would establish the residential broadband expansion program.
House Bill 34 (Introduced February 12, 2019; first hearing in House Commerce and Labor Committee on January 22, 2020. See also Senate Bill 90.) This Bill would increase the state minimum wage and allow municipalities, townships, and counties to establish higher minimum wage requirements.
House Bill 48 (Introduced February 12, 2019; referred to House Finance Committee on February 12, 2019.) This Bill would provide for a new Local Government Road Improvement Fund for local governments to fund road improvements.
House Bill 54 (Introduced February 12, 2019; referred to House Ways and Means Committee on February 12, 2019.) This Bill would increase the proportion of state tax revenue allocated to the Local Government Fund from 1.66% to 3.53% beginning July 1, 2019.
House Bill 57 (Introduced February 12, 2019; first hearing in House Ways and Means Committee on February 4, 2020.) This Bill would exempt certain heating sources from sales taxation and would hold local governments and libraries harmless from the revenue effect.
House Bill 72 (Introduced February 14, 2019; referred to House Finance Committee on February 20, 2019.) This Bill would create the Supplemental State Capital Improvements Pilot Program funded by a temporary transfer from the State’s Budget Stabilization Fund.
House Bill 78 (Introduced February 14, 2019; first hearing in House Commerce and Labor Committee on December 11, 2019.) This 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.
House Bill 84 (Introduced February 19, 2019; first hearing in House State and Local Government Committee on March 27, 2019.) This Bill would expressly include, as eligible projects under the State Capital Improvements Program, water and sewer laterals located on private property.
House Bill 92 (Introduced February 21, 2019; first hearing in House State and Local Government Committee on March 13, 2019.) This Bill would require voter approval of any increase in the rate of a county sales tax.
House Bill 93 (Introduced February 21, 2019; referred to House Finance Committee on March 5, 2019.) This Bill would make appropriations related to public transportation.
House Bill 98 (Introduced February 26, 2019; second hearing in House Economic and Workforce Development Committee on May 1, 2019. See also Senate Bill 137.) This Bill would reinstate the rural industrial park loan fund.
House Bill 99 (Introduced February 26, 2019; first hearing in House Ways and Means Committee on November 5, 2019.) This Bill would raise the homestead exemption income eligibility to $60,000 and increase the tax reduction.
House Bill 149 (Introduced March 19, 2019; second hearing in House Economic and Workforce Development Committee on April 10, 2019.) This Bill would enact the “Affordable Homebuilding and Housing Act” to temporarily exempt from property tax the increased value of land subdivided for residential development.
House Bill 152 (Introduced March 20, 2019; first hearing in House State and Local Government Committee on April 10, 2019.) This Bill would require certain subdivisions to obtain the approval of the body that created the subdivision before levying a tax.
House Bill 159 (Introduced March 21, 2019; third hearing in House Civil Justice Committee on June 2, 2020.) This Bill would regulate the use of indemnity provisions in professional design contracts related to public improvements.
House Bill 163 (Introduced March 25, 2019; reported out of House Public Utilities Committee on May 13, 2020.) This Bill would create a process for withholding local government funds and state water and sewer assistance from municipal corporations that engage in certain water and sewer practices with respect to extraterritorial service.
House Bill 187 (Introduced April 4, 2019; referred to House State and Local Government Committee on April 10, 2019.) This Bill would prohibit local tax-related proposals from appearing on an August special election ballot.
House Bill 190 (Introduced April 9, 2019; referred to House Finance Committee on April 10, 2019.) This Bill would create the Ohio Broadband Development Grant Program, encourage the Department of Transportation to work with telecommunications providers to lay fiber optic cable.
House Bill 218 (Introduced April 24, 2019; third hearing in House State and Local Government Committee on May 20, 2020.) This Bill would authorize certain public entities to enter into public-private initiatives with a private party through a public-private agreement regarding public facilities.
House Bill 229 (Introduced April 30, 2019; first hearing in House Commerce and Labor Committee on May 20, 2020.) This Bill would prohibit discrimination in rental housing based on a tenant’s or prospective tenant’s lawful source of income, including housing assistance.
House Bill 252 (Introduced May 21, 2019; reported out of House Economic and Workforce Development Committee on June 26, 2019; re-referred to Committee on June 30, 2019.) This Bill would create the Land Reutilization Demolition Program.
House Bill 271 (Introduced June 4, 2019; second hearing in House Commerce and Labor Committee on February 12, 2020.) This Bill would amend the law regarding smoke detectors in residential premises.
House Bill 288 (Introduced June 18, 2019; fourth hearing in House Civil Justice Committee on October 1, 2019.) This Bill would amend the law regarding eminent domain by prohibiting the use of eminent domain for the purpose of providing a recreational trail.
House Bill 305 (Introduced June 26, 2019; sixth hearing in House Finance Committee on November 20, 2019.) This Bill would create a new school financing system.
House Bill 340 (Introduced September 17, 2019; reported out of House State and Local Government Committee on May 27, 2020.) This Bill would revise Ohio’s drainage laws.
House Bill 343 (Introduced September 23, 2019; first hearing in House State and Local Government Committee on February 26, 2020.) This Bill would make an appropriation of $10 million in Fiscal Year 2020 to the Public Works Commission for grants to local subdivisions for emergency water and sewer system projects.
House Bill 382 (Introduced October 29, 2019; referred to House Ways and Means Committee on November 6, 2019.) This Bill would prohibit municipal corporations from levying an income tax on nonresidents’ compensation for personal services or on net profits from a sole proprietorship owned by a nonresident.
House Bill 391 (Introduced November 5, 2019; referred to House Commerce and Labor Committee on November 12, 2019.) This Bill would increase the state minimum wage to $10.55 per hour beginning January 1, 2021.
House Bill 401 (Introduced November 6, 2019; third hearing in House Energy and Natural Resources Committee on December 3, 2019.) This Bill would require inclusion of safety specifications in wind farm certificate applications, modify wind turbine setbacks, and permit a township referendum vote on certain wind farm certificates.
House Bill 423 (Introduced November 26, 2019; referred to House Financial Institutions Committee on December 10, 2019.) This Bill would revise the law regarding manufactured home financing.
House Bill 427 (Introduced November 26, 2019; first hearing in House Public Utilities Committee on January 29, 2020.) This Bill would alter the requirements governing secondary contaminants under the Safe Drinking Water Law.
House Bill 439 (Introduced December 9, 2019; second hearing in House Ways and Means Committee on February 11, 2020.) This Bill would adjust for inflation the $25,000 homestead exemption and the enhanced homestead exemption for disabled veterans.
House Bill 444 (Introduced December 12, 2019; second hearing in House State and Local Government Committee on May 5, 2020.) This Bill would make various changes to township law.
House Bill 449 (Introduced December 17, 2019; referred to House Ways and Means Committee on January 28, 2020.) This Bill would apply the real estate transfer tax to transfers of a controlling interest in a pass-through entity that, directly or indirectly, owns real estate.
House Bill 453 (Introduced December 17, 2019; first hearing in House Ways and Means Committee on May 28, 2020.) This Bill would enact the “Blair Deduction” to allow an individual obtaining a post-secondary degree or credential from an eligible educational institution to claim an income tax deduction for qualified higher education expenses.
House Bill 454 (Introduced December 17, 2019; first hearing in House Ways and Means Committee on February 4, 2020.) This Bill would authorize a refundable tax credit for certain expenses incurred by caregivers.
House Bill 476 (Introduced January 21, 2020; second hearing in House State and Local Government Committee on May 27, 2020.) This Bill would amend the law regarding eminent domain to provides, generally, township, village, and city legislatures authority to veto the use of eminent domain if it is intended to acquire property for use as a recreational trail.
House Bill 487 (Introduced January 30, 2020; first hearing in House State and Local Government Committee on February 26, 2020.) This Bill would increase, from one to six years, the interval within which county auditors must offer tax-forfeited land for sale and to give county auditors more discretion as to how and where such sales are conducted.
House Bill 497 (Introduced February 6, 2020; referred to House Health Committee on February 11, 2020.) This Bill would require the Director of Environmental Protection to adopt rules establishing maximum allowable contaminant levels in drinking water and water quality standards for certain contaminants.
House Bill 498 (Introduced February 10, 2020; second hearing in House Aging and Long-Term Care Committee on May 28, 2020.) This Bill would authorize a refundable income tax credit for disability-related home expenses.
House Bill 507 (Introduced February 13, 2020; referred to House Ways and Means Committee on February 19, 2020.) This Bill would prohibit enforcement of delinquent property tax liens against owner-occupied homesteads and to require that any delinquent tax be paid before the title to a homestead may be transferred.
House Bill 517 (Introduced February 19, 2020; referred to House State and Local Government Committee on March 10, 2020.) This Bill would explicitly exempt building and fire codes from certain rule review requirements.
House Bill 562 (Introduced March 23, 2020; referred to House Civil Justice Committee on May 5, 2020. See also Senate Bill 297.) This Bill would prohibit foreclosure activity and the eviction of residential and commercial tenants during the state of emergency declared regarding COVID-19, and refer such proceedings caused by the state of emergency to mediation.
House Bill 564 (Introduced March 23, 2020; referred to House Public Utilities Committee on May 5, 2020.) This Bill would prevent the disruption of utility service during the state of emergency declared regarding COVID-19.
House Bill 565 (Introduced March 23, 2020; referred to House Ways and Means Committee on May 5, 2020.) This Bill would extend the filing and payment dates for state, municipal, and school district income taxes by the same period as any federal income tax extension granted in response to the COVID-19 disease outbreak.
House Bill 566 (Introduced March 23, 2020; referred to House Finance Committee on May 5, 2020.) This Bill would increase the percentage of revenue to the General Revenue Fund distributed to the Local Government Fund.
House Bill 567 (Introduced March 23, 2020; referred to House Finance Committee on May 5, 2020.) This Bill would temporarily authorize a partially refundable earned income tax credit.
House Bill 570 (Introduced March 23, 2020; referred to House State and Local Government Committee on May 5, 2020.) This Bill would allow a county to purchase public health-related items and communication equipment without competitive bidding, solicit bids electronically, and open bids during a meeting held electronically during the period of the emergency declared by Executive Order 2020-01D, issued on March 9, 2020.
House Bill 572 (Introduced March 23, 2020; referred to House State and Local Government Committee on May 5, 2020.) This Bill would allow the Ohio Public Works Commission, the Ohio Water Development Authority, the Ohio Environmental Protection Agency, county auditors, and county recorders, during the state of emergency due to COVID-19, to waive certain penalties and late fees, suspend certain reporting requirements, and waive electronic recording fees.
House Bill 576 (Introduced March 23, 2020; referred to House Ways and Means Committee on May 5, 2020.) This Bill would temporarily abate the charging of interest and penalties against tax-delinquent homesteads and suspend tax foreclosure proceedings and tax certificate sales regarding such homesteads.
House Bill 578 (Introduced March 23, 2020; referred to House Ways and Means Committee on May 5, 2020.) This Bill would make an appropriation to support homeless shelters in the state and to provide emergency rental assistance in response to the COVID-19 pandemic.
House Bill 582 (Introduced March 23, 2020; referred to House Finance Committee on May 5, 2020. See also House Bill 670, Senate Bill 310 and Senate Bill 316.) This Bill is a “placeholder” to begin the process to make certain appropriations for the biennium ending June 30, 2021, and capital reappropriations for the biennium ending June 30, 2022.
House Bill 591 (Introduced March 25, 2020; referred to House Ways and Means Committee on May 5, 2020.) This Bill would suspend some employer municipal income tax withholding requirements during the COVID-19 state of emergency.
House Bill 617 (Introduced May 6, 2020; referred to House State and Local Government Committee on May 12, 2020.) This Bill would establish certain time frames and legislative approval procedures as conditions governing the authority of the Department of Health to issue statewide shelter-in-place or stay-at-home orders for preventing the spread of contagious or infectious diseases, and invalidate existing statewide shelter-in-place or stay-at-home orders issued by the Department.
House Bill 618 (Introduced May 6, 2020; referred to House State and Local Government Committee on May 12, 2020.) This Bill would limit the authority of the Governor and the Department of Health to issue orders regarding contagious or infectious diseases, prohibit any order from affecting the conduct of an election, and designate its provisions as the “Need Ohio Working (NOW) Act”.
House Bill 631 (Introduced May 13, 2020; referred to House Economic and Workforce Development Committee on May 19, 2020.) This Bill would authorize municipal corporations to establish regional economic development alliances for the sharing of services or resources among alliance members.
House Bill 639 (Introduced May 19, 2020; referred to House Public Utilities Committee on May 27, 2020.) This Bill would regulate water utility providers’ ability to curtail, disrupt, or disconnect water service to customers.
House Bill 670 (Introduced May 20, 2020; third hearing in House Finance Committee on June 3, 2020. See also House Bill 582, Senate Bill 310 and Senate Bill 316.) This Bill would make capital reappropriations for certain agencies for the biennium ending June 30, 2022.
House Bill 671 (Introduced May 26, 2020; third hearing in House State and Local Government Committee on June 3, 2020.) This Bill would establish limits on certain public health orders issued by boards of health and the Department of Health, and prohibit a licensing authority from taking disciplinary action against a licensee for engaging in permitted activities during a pandemic.
House Joint Resolution 2 (Introduced October 25, 2019; first hearing in House Energy and Natural Resources Committee on October 30, 2019.) This Joint Resolution would propose a ballot issue to enact Section 12 of Article XV of the Constitution of the State of Ohio to provide Ohio critical infrastructure protection.
LEGISLATION PASSED BY THE SENATE
Senate Bill 1 (Introduced February 12, 2019; passed by Senate May 8, 2019; passed by House May 6, 2020, adding provisions which, among other things, would restrict the Executive branch’s ability to impose and enforce public health orders; Senate refused to agree to House amendments, sending the Bill to conference committee.) This Bill would require certain agencies to reduce the number of regulatory restrictions.
Senate Bill 2 (Introduced February 12, 2019; passed by Senate June 12, 2019; fifth hearing in House Energy and Natural Resources Committee on February 19, 2020.) This Bill would create a statewide watershed planning structure for watershed programs to be implemented by local soil and water conservation districts.
Senate Bill 8 (Introduced February 12, 2019; passed by Senate April 3, 2019; second hearing in House Economic and Workforce Development Committee on May 8, 2019. See also House Bill 166.) This Bill would authorize tax credits for investments in an Ohio Opportunity Zone.
Senate Bill 39 (Introduced February 12, 2019; passed by Senate June 26, 2019; seventh hearing in House Economic and Workforce Development Committee on February 12, 2020.) This Bill would authorize an insurance premiums tax credit for capital contributions to transformational mixed use development projects.
Senate Bill 95 (Introduced March 7, 2019; passed by Senate June 12, 2019; third hearing in House Ways and Means Committee on May 19, 2020.) This Bill would enhance state and local tax inducements for businesses making substantial fixed asset and employment investments and their suppliers.
Senate Bill 181 (Introduced August 9, 2019; passed by Senate November 6, 2019; second hearing in House Higher Education Committee on May 26, 2020.) This Bill would require the Chancellor of Higher Education to create a template for workforce-education partnership programs.
Senate Bill 204 (Introduced September 30, 2019; passed by Senate June 3, 2020; not yet referred to House Committee.) This Bill would authorize the creation of an airport development district for the purpose of funding public infrastructure improvements and attracting airlines and additional flights to a qualifying airport.
Senate Bill 212 (Introduced October 7, 2019; passed by Senate March 4, 2020; first hearing in House Ways and Means Committee on May 19, 2020.) This Bill would authorize townships and municipal corporations to designate areas within which new homes and improvements to existing homes are wholly or partially exempted from property taxation.
Senate Bill 310 (Introduced May 5, 2020; passed by Senate May 6, 2020; passed by House June 4, 2020; currently awaiting Senate consideration of House amendments. See also House Bill 582, House Bill 670 and Senate Bill 316.) This Bill would provide for the distribution of some federal coronavirus relief funding to local subdivisions and businesses, exclude loan amounts forgiven under the federal CARES Act from the commercial activity tax, apply the Prevailing Wage Law to transportation improvement district projects under certain circumstances, allow certain state employees’ salaries and pay supplements to be frozen during the pay period that includes July 1, 2020, through the pay period that includes June 30, 2021, and make capital reappropriations for the biennium ending June 30, 2022, and make other appropriations and further changes in response to COVID-19.
LEGISLATION INTRODUCED IN THE SENATE
Senate Bill 36 (Introduced February 12, 2019; third hearing in Senate Ways and Means Committee on April 2, 2019.) This Bill would prescribe how federally subsidized residential rental property must be valued for property tax purposes.
Senate Bill 38 (Introduced February 12, 2019; first hearing in Senate Local Government, Public Safety and Veterans Affairs Committee on December 17, 2019.) This Bill would revise the law governing municipal corporation use of water and sewer funds to allow municipal corporations to use up to 5% of sewer and water funds to extend the municipal corporation’s sewer or water system if it is being extended for economic development purposes.
Senate Bill 90 (Introduced March 6, 2019; first hearing in Senate Government Oversight and Reform Committee on September 25, 2019. See also House Bill 34.) This Bill would increase the state minimum wage and to allow municipalities, townships, and counties to establish higher minimum wage requirements.
Senate Bill 137 (Introduced April 25, 2019; referred to Senate Finance Committee on May 1, 2019. See also House Bill 98.) This Bill would reinstate the rural industrial park loan fund.
Senate Bill 153 (Introduced May 21, 2019; first hearing in Senate Ways and Means Committee on June 4, 2019.) This Bill would permit manufacturers to meet alternative minimum employment and investment requirements to qualify for the Job Retention Tax Credit.
Senate Bill 176 (Introduced July 16, 2019; first hearing in Senate Transportation, Commerce and Workforce Committee on October 2, 2019.) This Bill would license residential-only construction contractors and make changes to the law regulating specialty construction contractors.
Senate Bill 177 (Introduced July 16, 2019; referred to Senate Transportation, Commerce and Workforce Committee on September 11, 2019.) This Bill would regulate and require the registration of roofing contractors.
Senate Bill 180 (Introduced August 5, 2019; first hearing in Senate Finance Committee on October 1, 2019.) This Bill would authorize the issuance of industrial development bonds by a township and authorize counties, townships, and municipal corporations to issue industrial development bonds without requiring the county, township, or municipal corporation to designate a community improvement corporation as its agency for industrial, commercial, distribution, and research development.
Senate Bill 206 (Introduced September 30, 2019; second hearing in Senate Ways and Means Committee on November 19, 2019.) This Bill would require municipal corporations with more than $100 million in annual income tax collections to provide a tax credit to nonresident taxpayers.
Senate Bill 216 (Introduced October 10, 2019; referred to Senate Finance Committee on October 23, 2019.) This Bill would allow school districts to exempt recipients of the existing homestead exemption from additional school district taxes.
Senate Bill 273 (Introduced February 6, 2020; first hearing in Senate Ways and Means Committee on March 3, 2020.) This Bill would reduce property taxes on owner-occupied homes to the extent the taxes increase by more than 10% per year and prohibit political subdivisions from placing a lien on property for unpaid water charges.
Senate Bill 297 (Introduced March 25, 2020; referred to Senate General Government and Agency Review Committee on May 6, 2020. See also House Bill 562.) This Bill would prohibit foreclosure activity and the eviction of residential and commercial tenants during the state of emergency declared regarding COVID-19, and refer such proceedings caused by the state of emergency to mediation.
Senate Bill 316 (Introduced May 26, 2020; reported out of House Finance Committee on June 3, 2020. See also House Bill 582, House Bill 670 and Senate Bill 310.) This Bill would make capital reappropriations for the biennium ending June 30, 2022.
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