Ohio Municipal League
175 South Third Street
Suite 510
Columbus, Ohio 43215

614-221-4349 Office
614-221-4390 Fax

email:
Legislative Inquiries
John Mahoney
General Inquiries
info@omunileague.org

For email inquiries to the OML, it would be most helpful if you would include your name, position, city or village you represent. 

Also please include a phone number and/or address for instances when we need further contact with you.

Please type “OML Inquiry” in subject line so that we can identify e-mails picked up as spam.

OML E- BULLETIN
If you would like to sign up for the E-Bulletin, send an email here: info@omunileague.org
 In the e-mail, indicate that you would like to be taken off the paper Bulletin list.

General Assembly Adjourns for the Summer.

The General Assembly is now out of session and is not scheduled to return until September 12. The only bills which are expected to receive active hearings over the summer are those that deal with conceal-and-carry for weapons.

Though we have had a lot of activity on a variety of bills so far this session, the primary focus of these first few months of this session of the General Assembly has been on the state's biennial budget. Even though that focus is usual for the start of the session, the scrutiny on the budget was more intense than usual as the General Assembly and the Governor struggled with slowing revenues stemming from the slower economy and a mandate by the Supreme Court to pass a school funding scheme that would meet the Court's view as constitutional.

Despite some activity surrounding the Governor's unusually high number of line-item vetoes in that budget, the $45 billion state biennial budget finally moved through the process and is now under review by the Supreme Court. Speculation on what the Court might decide and when that decision might be reached is all over the board at this point. Though the new state budget, according to its authors, includes a $1.4 billion increase for schools, school advocates argue that the size of the increase is inflated and, even if it weren't is an increase that is far below what the Court called for in its last decision. The Attorney General, on behalf of the Governor and the General Assembly, argue that increase, plus what the state is doing financially for new school facilities, is adequate and meets the Court's mandate.

The drive to create a school funding scheme which might satisfy the Court did not happen without a cost for all other state and local government services. Cuts or no growth for most of the state agency line items were the rule in this budget. State aid to local governments (Local Government Fund, Local Government Revenue Assistance Fund and the Local Government and Libraries Fund) were all frozen for the FY 2001 (July 1, 2001 - June 30, 2002) and FY 2002 (July 1, 2002 - June 30, 2003) at the same level of support given in FY 2000.

For cities, villages and townships, the indigent burial fund, which helped defray some of the costs for indigent burials at the local level, was eliminated. The full responsibility for such burials or cremations now reverts back to the city, village or township in which an indigent is a resident at the time of their passing.

On other fronts, there was some good news and some very bad news.

Both Houses voted for and sent to the Governor HB 3, a measure that outlines the process for deciding how $200 million will be spent on green space and brownfield projects over the next four years (beginning, we hope, early in 2002). Through that bill's use of local public works integrating committee and the Ohio Public Works Commission for much of the priority-setting, choosing of projects, and administration, we think the General Assembly and Governor have put together a program that will work well and give all of our members a fair shot at garnering some of this money for valuable local projects. That bill is now on the Governor's desk awaiting his signature.

Unfortunately, the General Assembly also passed SB 5, which will make many annexations more difficult to achieve. The League opposed the final version of the bill, primarily because of an vastly overly generous reparations schedule which is to be paid by municipalities to townships on annexations withdrawn from the township and the provision which makes everyone within one-half mile of an annexation a party to the county commission's hearing on an annexation. We have asked the Governor to veto the measure though he is expected to sign the bill just before the end of July.

Another enclosed sheet to this Bulletin lists a number of other measures which we are following. It is, as with all Sessions, a mix of bills supported by the League and bills with which we have serious differences.

One of those bills, HB 84, provides a new set of rules for elected officials seeking reelection who plan to retire prior to taking up their new term so they can collect their elected salary for their new term and their PERS pension at the same time. Under those new rules such an elected official will have to publicly declare that intention prior to the election. Voters can then take that intention into account when they go to the polls.

Also included in that bill is a provision that eliminates the inadvertent exemption from municipal income taxes for Alternative Retirement Plans (ARPS) used by some universities. As an emergency measure, HB 84 will take effect the day the Governor signs it, which should be prior to the end of July.

We've also gotten out of the House two measures which we believe are very important. The first (HB 244), reduces penalties levied against some municipalities for late reports to the Ohio Police and Fire Pension Fund. Those penalties, which in some cases amounted to tens of thousands of dollars, far outweighed the seriousness of the offenses involved. HB 244 reduces those penalties by 50% to 90% if communities catch up on their paperwork. For communities who have already paid those fines, much of those penalties will be rebated to those communities. The bill also lays out a more reasonable set of penalties for the future.

HB 245 also came out of the House with strong majority support. Under the provisions of that bill, a village may elect to create the office of an appointed village fiscal officer to take the place of an elected clerk-treasurer. This transition may only occur when there is a vacancy in the office of clerk-treasurer or when a clerk-treasurer is coming to the end of their term. The new appointed fiscal officer must become a resident of the village within six months, unless this provision is waived by council.

Obviously, there are also a number of bills we are concerned with (HB 114 Estate Tax, HB 152 Prohibits Residency Requirements, HB 191 Municipal Tax Sharing) that have not had much activity yet. However, there is still a lot of time left between now and the end of December, 2002 when this session of the General Assembly ends and we fully expect these bills will be given further consideration and need you to be ready to help us express the concerns we have about these bills.

We will keep you informed activities surrounding all of these bills and new bills as they are introduced.

BILLS OF THE 124^th GENERAL ASSEMBLY

SENATE BILLS

SB 5 ANNEXATION (Wachtmann) Am., En. & Rep. 505, 709, 929 & 5705. Revises the laws governing municipal annexations. The bill is awaiting the Governor's signature.

SB 106 SOVEREIGN IMMUNITY (Hottinger) To amend sections 723.01, 2744.01, 2744.02, 2744.03, 2744.04, 2744.05, 2744.06, 4582.27, 5591.36, and 5591.37 of the Revised Code to include as a governmental function under the Political Subdivision Sovereign Immunity Law the design, construction, reconstruction, renovation, repair, maintenance, and operation of any school athletic facility, school auditorium, or gymnasium; to re-enact changes made by Am. Sub. H.B. 350 of the 121st General Assembly to the Political Subdivision Sovereign Immunity Law; and to amend sections 2744.01 and 2744.03 of the Revised Code as scheduled to take effect on January 1, 2002, to continue the amendments of this act on and after that date. The bill has been referred to the Senate State, Local Government & Veteran's Affairs Committee.

SB 108 TORT LAW (Jacobson) Am. & Rep. 109, 163, 1343, 1701, 1707, 1775, 1901, 2101, 2117, 2125, 2305, 2307, 2313, 2315, 2501, 2743, 2744, 3123, 3701, 3722, 4112, 4113, 4171, 4399, 4507, 4513, 4582, 4909, 5111, 5591. Revises tort law and declares an emergency. The bill became effective July 6, 2001.

SB 114 PREVAILING WAGE LAW (Wachtmann) Am., En. & Rep. 122, 164, 165, 166, 175, 176, 307, 351, 1551, 1710, 1728, 3383, 3706, 4115, 4116, 4582, 4981, 5122, 5123, 5540, 6117 & 6121. Modifies the Prevailing Wage Law to apply only to public improvements owned by the state and establishes a two-year statute of limitations for actions alleging violations of that law. The bill has been referred to the Senate Insurance, Commerce & Labor Committee.

SB 134 OPF RETIREMENT (Blessing) Am. & En. 742. Provides for the establishment of the Ohio Police and Fire Pension Fund deferred retirement option plan. The bill has been referred to the Senate Ways & Means Committee.

HOUSE BILLS

HB 3 ENVIRONMENTAL BONDS (Blasdel) En. 1559. Declares it to be the public policy of the state to establish the Clean Ohio Fund for the purpose of achieving certain goals related to the protection of the environment and preservation of the state's natural resources. The bill is awaiting the Governor's signature.

HB 84 RETIREMENT RESTRICTION (Schmidt) Am. 145. Prohibits an elected official from receiving a Public Employees Retirement System pension while earning a salary for the same public office and declares an emergency. The bill is awaiting the Governor's signature.

HB 114 ESTATE TAXATION (Latta) Am., En. & Rep. 5709 & 5731. Phases out the basic estate tax by 2006 and thereafter retaining only the tax that picks up the maximum federal credit for state estate taxes. The bill has been referred to House Ways & Means Committee.

HB 152 RESIDENCY REQUIREMENT (Ford) Am. & En. 733 & 737. Prohibits a municipal corporation from requiring any police or fire officer or employee to reside within the municipal corporation. The bill has been referred to the House Local Government and Townships Committee.

HB 157 PENSION BENEFITS (Schuring) Am. 145, 742, 3307, 3309 & 5505. Provides that the annual cost of living increase paid to retired members and beneficiaries of Ohio's state retirement systems will be three per cent. The bill passed the House (82-4) and has been referred to Senate Ways & Means Committee.

HB 158 PERS LAW ENFORCEMENT BENEFIT (Schuring) Am. 145 & 3309. Permits Public Employees Retirement System members with at least 25 years of law enforcement service credit to retire with full benefits at age 48, includes transit and highway patrol police officers as law enforcement officers for PERS purposes, and increases the employee contribution rate for law enforcement service credit. The bill has passed the House (99-0) and has been referred to Senate Ways & Means Committee.

HB 167 TELECOMMUNICATIONS FACILITIES (Coates) Am. 303, 519 & 5501. Requires any telecommunications facilities for which the Department of Transportation provides a lease, easement or license to comply with local zoning regulations. The bill has been referred to the House Local Government and Townships Committee.

HB 191 MUNICIPAL TAXES (Schaffer) En. 718. Requires municipal corporations with more than $100 million in annual income tax collections to pay a portion of a nonresident individual's municipal income tax liability to the township or municipal corporation where the individual resides. The bill has been referred to House Ways & Means Committee.

HB 240 MUNICIPAL TAX DEDUCTIONS (Cirelli) To amend sections 718.01 and 5747.01 of the Revised Code to allow a municipal income tax deduction for amounts paid by individuals in federal and state income taxes and a state income tax deduction for amounts paid by individuals in federal income taxes, and to amend the version of section 718.01 of the Revised Code that is scheduled to take effect on January 1, 2002, to continue the provisions of this act on and after that effective date. The bill has been referred to House Ways & Means Committee.

HB 244 OPFP REPORTS (Niehaus) Am. & En. 742. Modifies the penalties assessed against employers who fail to submit certain reports and information to the Ohio Police and Fire Pension Fund and reduces the amount of certain penalties currently owed by employers. The bill has passed the House (99-0) and has been referred to the Senate Ways & Means Committee.

HB 245 VILLAGE OFFICES (Evans) En. 733. Permits the offices of village clerk and treasurer to be combined into an appointed office of village fiscal officer and permits the appointed office to be subsequently abolished and replaced by the elected office of village clerk-treasurer. The bill has passed the House (93-4) and has yet to be referred to Senate Committee.