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No. 11 April 30, 1999 PLEASE CIRCULATE THIS BULLETIN TO YOUR COUNCIL, DEPARTMENT HEADS & STAFF Sparks Still Fly Around Electric DeReg Things heated up, even as they slowed down a bit on the issue of electric deregulation this week. The Senate Ways and Means Committee agreed to delay a possible Senate vote on the dereg issue until the week of May 10 to give PUCO Chair Alan Schriber, who is leading an administration effort to resolve dereg issues, a little more time to work out the most contentious issues with all sides of the issue. Most at stake, is the issue of "stranded costs" and how much of those costs can be recouped by the electric industry before real competition is allowed in the electric markets. The short definition of stranded costs are those capital costs invested by the investor owned utilities for facilities, such as nuclear power plants, which would be a drag on the company financially in a competitive electric market. The utilities would like to recover from consumers all the costs of those facilities. Consumer and Industrial user groups would like the companies and their shareholders to pay for those investments. Even while at least one electric company announced that it planned to launch an expensive public relations efforts on behalf of its views, the Senate Ways and Means Committee heard from a number of witnesses, including Cleveland Mayor Michael White, that stranded costs should not be recovered by the utilities. Mayor White called such recovery "repugnant" in his testimony before the committee. Enterprise Zone Extension Comes under Fire A key non-appropriation item in the Taft budget came under some fire this Thursday as the full House Finance and Appropriations Committee began molding the final form of that budget for full House consideration. Under the Taft proposal, supported by House Republicans, the Ohio Enterprise Zone program would remain intact and be extended for five years. Though seen by its proponents as a necessary incentive program for attracting and maintaining business to and in Ohio, the program also has its skeptics. That skepticism resulted in the last budget setting aside $500,000 for the study of the benefits and flaws of the program. Though preliminary results of that study were critical of the program, the study, by consultants from Cleveland State University, is not yet complete. Critics of the program, such as Representative Ed Jerse, contended in the House Committee that, without the final study, such a lengthy extension is premature. Criticism of the program, which in some cases cuts across party lines, contends that the program is overused and often pits one community against another in a bidding war over tax breaks, rather than act as a necessary catalyst for the creation or maintenance of jobs that would otherwise not come to or leave Ohio. Though this program extension may leave the House intact, there is likely to be further contention over this issue in the Senate when that body begins its consideration of the budget. OPWC Alternate Bill Heard; Y2K Program Proposed. League staff testified in favor of a number of bills this week. SB 31 (Latta), which was heard before the House Township and Local Government Committee, would allow local officials to choose alternate delegates to represent them in the District Integrating decision-making process for Issue 2 Infrastructure Bond awards. Currently, the bill mandates such alternates. In our support for the bill, we suggested that the picking of such alternates be optional for all groups which elect or appoint representatives for this program. The League also supported legislation (SB 116) which would make available up to $20 million in funds for local governments to ensure that those government have the resources to become Y2K compliant. This state assistance would come through as 0% two-year loans to local governments. Though supportive of this assistance, the League asked that the proposal be amended to make such loans more simply and more directly available to all local governments. In its current form the loans would only be available to municipalities and townships by application to the county. SB 116 is currently being considered in the Senate Economic Development, Technology and Aerospace Committee. The League also supported HB 55, which would allow municipal governments to dispose of miscellaneous property through donation to non-for-profit organizations rather than go through the expense of a public auction. This provision would only apply to miscellaneous property, not to property (e.g. firearms, contraband, vehicles) for which other statutes provide a specific method of disposal. COMMITTEE MEETING SCHEDULE FOR WEEK OF MAY 3, 1999 TUESDAY, MAY 4 SENATE ECONOMIC DEVELOPMENT, TECHNOLOGY & AEROSPACE, 10:30 a.m., South Hearing Rm. SB 116 Y2K FUNDS (Armbruster) Creates a $20 million state grant program that will provide funding to local governments to cope with Year 2000 computer problems and makes an appropriation. (3rd Hearing) SENATE WAYS & MEANS, After Session, South Hearing Rm. SB 108 ESTATE TAX (Latta) Reduces the estate tax by 36% over five years and phases out the share of the estate tax paid to the state. (2nd Hearing) WEDNESDAY, MAY 5 SENATE JUDICIARY, 9 a.m., North Hearing Rm. SB 78 PUBLIC RECORDS (Oelslager) Generally grants members of the public the option of choosing the medium in which they will receive copies of public records and requires a public office to transmit copies of a public record through the United States mail if so requested. (3rd Hearing - Possible vote) HB 205 TORT IMMUNITY (Corbin) Amends the definition of "governmental function" in the political subdivision tort immunity law to include the operation of all types of aquatic facilities. (2nd Hearing) HOUSE HEALTH, RETIREMENT & AGING, 9:30 a.m., Rm. 017 HB 199 ALTERNATIVE PUBLIC PENSION (Cates) Creates an alternative retirement program for public employees covered by Ohio's state retirement systems. (6th Hearing) HOUSE CIVIL & COMMERCIAL LAW, 10:30 a.m., Rm. 121 HB 295 Y2K LIABILITY IMMUNITY(Terwilleger) Provides immunity from liability to the state and to political subdivisions from harm relating to the Year 2000 computer problem. (2nd Hearing) SENATE HIGHWAYS & TRANSPORTATION, After Session, North Hearing Rm. SB 137 PORT AUTHORITIES (Oelslager) Comprehensively revises the powers and duties of port authorities, enhances the ability of port authorities and other political subdivisions to cooperate in the accomplishment of mutual objectives, establishes more consistency between the statutes governing port authorities established on or before July 9, 1982, and those established after that date, and makes other changes in the laws governing port authorities. (1st Hearing -Pending referral) HOUSE LOCAL GOVERNMENT & TOWNSHIPS, 4 p.m., Rm. 121 HB 267 FARMLAND PRESERVATION (Krebs) Requires the Director of Agriculture to be notified when land in an agricultural security area is to be appropriated by eminent domain and makes other changes. (3rd Hearing) HB 298 SMOKING RULES (Schuler) Requires that any orders or rules enacted by a board of health related to smoking be adopted by the legislative authority of a municipal corporation or township before those orders or rules are effective within the boundaries of that political subdivision. (1st Hearing) HB 303 UNFUNDED MANDATES (Buchy) Creates the Local Government Mandates Commission and makes other changes. (1st Hearing) SB 31 PUBLIC WORKS COMMITTEES (Latta) Requires the appointing authorities that appoint members of district public works integrating committees to appoint alternates for those members to act in their absence. (4th Hearing-Possible vote) SENATE STATE & LOCAL GOVT. & VETERAN'S AFFAIRS, 5 p.m., South Hearing Rm., HB 55 UNCLAIMED PROPERTY (Schuler) Permits municipal police departments of dispose of certain unclaimed property by donating it to public agencies or nonprofit organizations. (3rd Hearing - Possible vote) HB 187 TOWNSHIP GOVERNMENT (Olman) Refers to townships that have adopted the limited self-government form of township government as "limited home rule government" townships and makes other changes. (2nd Hearing) THURSDAY, MAY 6 HOUSE ENERGY & ENVIRONMENT, 9 a.m., Rm. 114 HB 197 SLUDGE DISPOSAL (Krebs) Authorizes the Director of Environmental Protection to issue permits for the use, storage, treatment, or disposal of sludge and sludge materials, imposes an annual sludge fee, and otherwise regulates sludge and sludge materials. (5th Hearing- Possible vote) HOUSE WAYS & MEANS, 10 a.m., Rm. 121 HB 72 ESTATE TAX (Coughlin) Repeals the estate tax for the estates of decedents dying on or after July 1, 2000 and makes other changes. (2nd Hearing) HB 260 SPONGE TAX (Tiberi) Adopts a sponge tax as the estate tax. (2nd Hearing) HB 269 APPOINTED COURT CLERKS (Coughlin) Requires that the salary of the appointed clerk of a county court or certain municipal courts be set by the court's presiding judge instead of by a legislative authority and makes other changes. (2nd Hearing) |
