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Statehouse Update

May 10, 2019 Monday, May 6, 2019 Chambers Quiet On Potential Map Redo As State Preps Redistricting Case Appeal A legislature still grappling with a federal court ruling invalidating the state's congressional district map appeared unlikely Monday to jumpstart work on redistricting ahead of a planned appeal.

Attorney General Dave Yost intends to file a notice of appeal this week with the U.S. district court that struck down the state's map as an unconstitutional gerrymander Friday, AG's spokesman Dominic Binkley said in an email.

AG Yost will ask the court to stay its decision pending appeal and will ask the U.S. Supreme Court for a stay if the lower court refuses, Mr. Binkley said.

The district court in its ruling ordered lawmakers to approve a new map by June 14. If they fail to do so, the court could step in to help draw new boundaries ahead of the 2020 election.

As of the start of the week, the Republican majority in both chambers seemed content to see how the stay request plays out before taking further action.

Senate GOP spokesman John Fortney said Monday the chamber's leadership was "still digesting the 300-plus page decision" and awaiting a decision on the potential stay, rather than starting work on a new map.

Speaker Larry Householder (R-Glenford) said in a statement, "I join with the Ohio Secretary of State and the President of the Ohio Senate in support of a motion for a stay of the court's ruling, and appealing the decision."

Sen. Jay Hottinger (R-Newark) said the Senate majority caucus's leadership had not held a meeting since the ruling came down Friday, although he expected it would be a topic of discussion at a gathering Tuesday.

He said he views the odds of the legislature approving a new congressional map before the end of June as "not high."

"We're in the throes of pretty extensive budget discussions right now," he said.

Sen. Vernon Sykes (D-Akron), who has made redistricting one of his focus areas during his tenure in the Statehouse, said the legislature "should be starting now" on crafting a new map.

"If, in fact, we have to draw the lines, it's very critical that we use every second we have to try to come up with a compromise," he said.

Among the questions facing lawmakers charged with producing the new map: which data points are now relevant given the current districts were comprised in part using election results dating to the early 2000s? And how does the legislature create a new map in a few weeks when past redistricting processes played out over months or even years of planning?

House Minority Leader Emilia Sykes (D-Akron) and Senate Minority Leader Kenny Yuko (D-Richmond Heights) wrote to AG Yost and other GOP officials last week asking them not to appeal the decision.

Ohio's ruling came after the U.S. Supreme Court heard oral arguments in March on cases regarding congressional maps lower courts overturned for Maryland and North Carolina. The high court is expected to rule on those cases before its term ends at the end of June.

It also followed a late April district court decision that ordered the state of Michigan to revise its congressional and state legislative districts. Business Groups Push Back On Income Deduction Change Another major Ohio business group lobbied Monday for House lawmakers to scrap their proposal to reduce the business income deduction.

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Chris Ferruso, legislative director for NFIB/Ohio, was among a number of parties testifying before the House Finance Committee on tax changes contained in the current version of the operating budget (HB 166), which is being eyed for an omnibus amendment Tuesday and a floor vote sometime this week.

The House-added language proposed reducing the deduction from $250,000 to $100,000 – an idea the Ohio Chamber of Commerce has pushed back against.

"We were taken aback that the Ohio House is proposing a massive tax increase on Ohio's entrepreneurs and job creators in Sub HB166," Mr. Ferruso said. "We ask you to put the brakes on this substantial change to tax policy so this body may truly understand what the impact will be to the small business community and Main Street in your communities."

Mr. Ferruso said the argument for the plan appears to be based on the idea the deduction is a "giveaway to the rich." But it's small businesses that benefit from the current setup, Mr. Ferruso said.

Rep. Bob Cupp (R-Lima) said he's heard the change would not affect 86% of current filers.

"That may be accurate. I'm not sure," Mr. Ferruso answered. "But to that I'd say how about those other 14" percent.

Greg Saul, director of tax policy for the Ohio Society of CPAs, said any changes to the deduction should be handled via the Tax Expenditure Review Committee. That group is scheduled to review that specific tax break during the 134th General Assembly, although the group has taken fire even from its own members for its lack of progress.

"OSCPA is still in the process of gathering feedback from our 26,000 members on the proposed BID changes, but we have already heard a number of concerns about the negative impacts on clients, including the retroactive effective date being applied back to taxable years beginning on or after Jan. 1, 2019," Mr. Saul said.

"Business owners have been in good faith planning and implementing changes to their business operations since January 1st based on the current laws," Mr. Saul continued. "Changing these laws several months into 2019 after business expenses have already been made, whether it be through hiring more people, purchasing equipment, goods or services, or other operational changes, is unfair to impacted Ohioans."

Mr. Saul also cautioned lawmakers against eliminating the flat 3% rate on income over $250,000 – an idea he said some in the chamber appear to be granting "serious consideration."

The society, however, supports several other tax-related changes including proposals to: reduce the number of tax brackets from seven to five; subject online sales to sales and use taxes in line with the Wayfair decision; make no substantive changes to the Commercial Activity Tax; and grant CPAs legal assurance in working with companies affiliated with the medical marijuana program.

Wendy Patton, senior project director at Policy Matters Ohio, suggested the reduction in the business income tax deduction be used to make the state earned income tax credit refundable, rather than reducing tax brackets for the lowest-earning Ohioans.

She also criticized the opportunity zone tax break, saying that money should instead be used to help connect low-income residents of those areas with good jobs.

"These tax breaks are growing fast – by 18% since 2011 – but they are not scrutinized like budget expenditures are," she said. "While it is appropriate to repeal the tax breaks the House includes in this bill, you also need to give the Tax Expenditure Review Committee the staff and resources it needs to do a thorough examination of the state's 134 tax breaks. It would make sense to appropriate $530,000 a year, as the budget bill does in 2021 for the Joint Medicaid Oversight Committee."

In other tax-related testimony, Lyft reiterated its objection to the expansion of the sales tax on transportation network companies, which it argued would "have a deleterious effect on the Lyft community."

The company's ridesharing services, it argued in written remarks, assist in the transition from personal vehicles to shared transportation and help boost economic activity by making it easier for residents and visitors to access businesses. The service and those like it have also helped lower drunk driving incidents, Lyft argued.

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"We respectfully urge the Ohio House of Representatives to remove the language contained in the Substitute version of House Bill 166 that places a sales tax on TNC rides," the company wrote to House members. "The new sales tax will have a significant and negative impact on riders and drivers who depend on Lyft as a crucial transportation service in their lives."

The American Cancer Society Cancer Action Network also expressed concern about that provision, suggesting in testimony the language could impact patients trying to reach cancer treatment.

Rep. Michael Skindell (D-Lakewood) in response expressed reluctance to base tax policy on the contributions a company might make to a non-profit entity or its beneficiaries. Funding Levels Remain A Concern For Local Government Groups Local government officials on Monday praised the biennial budget proposal for including more support for them and helping strengthen their relationship with the state.

While the two-year spending document (HB 166) shows improvement in that area, officials told the House Finance Committee there are still concerns about the state's level of financial help.

Shelby County Commissioner Julie Ehemann, president of the County Commissioners Association of Ohio, said the budget signals lawmakers' commitment to restoring a partnership between state and local governments.

She praised the House version of the budget for covering the full cost of indigent defense.

"This action builds upon the governor's initial request to significantly increase funding for indigent defense reimbursement to support counties in their performance of the state's constitutional obligation to provide for indigent defense," she said.

Sales tax changes and increased support for children services will also assist counties, she said.

"Your actions in this budget proposal lay a strong foundation for a meaningful state and county partnership that will serve Ohio well and improve the quality of life for the residents of our great state," she said.

Rep. Shane Wilkin (R-Hillsboro) asked how the loss of revenue from the state over the years has affected local budgets.

Shelby County lost $400,000 from the loss of the Medicaid managed care sales tax alone, Ms. Ehemann said. That likely affected the county's bond rating.

"Counties might be stable at the moment, but we're not awash in funds," she said.

North Royalton councilmen Dan Langshaw and Paul Marnecheck, meanwhile, bemoaned prior cuts to the Local Government Fund as a "complete betrayal" and argued the budget doesn't go far enough in making amends.

"The state's rainy day fund is now at a record high of $2.7 billion while the needs of local governments like ours keep pouring down upon us," Mr. Langshaw said. "This issue needs to be addressed now and not kicked down the road for another biennium budget to tackle."

North Royalton's increase thanks to the recently passed gas tax increase would be $730,000 (+64%) the pair said. But the councilmen said lawmakers should go further by restoring the LGF to its pre-recession levels by Fiscal Year 2021.

"We understand that this won't fully restore all the cuts the state has made since 2011 but it would be a step in the right direction to help the Ohioans we all serve," Mr. Marnecheck said.

Mr. Langshaw told Rep. Stephanie Howse (D-Cleveland) the opioid epidemic has strained services and funding in these local communities.

Mr. Marnecheck added that communities need to have reliable funding levels in order to engage in long-term planning. Tobacco 21 Proposal Still Draws Concerns From Vapor Industry Ohio's vapor industry continued to voice opposition Monday to a proposal in the biennial budget raising the minimum age to buy tobacco and vapor products to 21.

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Health advocacy groups, meanwhile, praised the House Finance Committee for retaining the language in the two-year spending document (HB 166).

James Jarvis, president of the Ohio Vapor Trade Association, told the panel his group continues to oppose raising the age limit and stressed his concern with language in the sub bill that would expand the definition of a tobacco product to include vapor.

"First and foremost, vapor does not contain tobacco," he said. "I know that may sound contrite and trivial, but it is reality. While vapor products contain nicotine, which is classified the same way caffeine is by the FDA, our products are limited to four ingredients and nothing burns or combusts. Therefore, there is no comparable justification for including vapor products in the definition of tobacco products or cigarettes."

Classifying vapor products as tobacco could deter people who are considering switching from tobacco products to vapor, he said.

"Codifying vapor products and liquid nicotine as a tobacco product will have longstanding consequences beyond the desire to raise the age of smoking and vaping to 21," he said. "If it is the goal of the state of Ohio to reduce smokers, vapor must be realized as a method of quitting traditional tobacco."

Regarding the overall proposal to raise the tobacco purchase age to 21, Mr. Jarvis said taking the option of vapor products away from adults who are 18-20 will deter them from switching from tobacco.

"The language for Tobacco 21 is cumbersome and redundant and it is evident that those pushing the issue do not understand the industry or the product," he said. "OHVTA is the leading advocacy organization for vapor products and retailers in Ohio and wants to work with our health partners on preventing minors from accessing vapor products."

Mr. Jarvis told Rep. Robert Cupp (R-Lima) about 18% to 22% of sales from his store are to consumers from 18 to 21.

Asked by Rep. Adam Miller (D-Columbus) what steps vapor retailers take to prevent sales to minors, Mr. Jarvis said retailers ask buyers for IDs several times.

"I have turned away many parents who are trying to buy for underage kids," he said. "That's how serious we are about this. We are trying to be a solution, not part of this problem."

The language received support from the American Cancer Society Cancer Action Network, which said it will help deter people from taking up smoking.

Jeff Stephens, state government relations director for ACS CAN, said everyone subsidizes the cost of tobacco use through Medicaid's coverage of treatment for tobacco-related diseases.

He thanked lawmakers for helping develop improved enforcement mechanisms for the proposal to raise the tobacco purchase age to 21.

"Over 95% of adult smokers start before the age of 21, so this legislation makes sense," he said. House Committee Hearings - Finance HB 166: The committee heard public budget testimony on a variety of issues, including adult protective services, school funding and tax changes. The panel is expected to return Tuesday to hear more testimony, consider amendments and vote to report the measure.

Emergency Management: Butler County EMA Director Matthew Haverkos said the legislation should create an end date for language in the transportation budget (HB 62) regarding the creation of a countywide emergency management program under a fire chief having "countywide authority" or the sheriff.

That provision is targeted specifically to Butler County and provides "unprecedented authority" to a single elected official, he said.

"A county emergency management agency should remain a neutral entity which can impartially operate during disasters to coordinate resources and funding to those most in need," he said.

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"Emergency management is made up of and truly touches the 'whole community' to promote preparedness, response, recovery, and mitigation of disasters which affect Ohio. Without an end time of this pilot legislation, there could be significant financial impacts at the local level such as grant ineligibility, which would result in a funding gap in order to provide sufficient service to our residents." Tuesday, May 7, 2019 Utility Profits Budget Amendment Draws Fire From Consumer Groups Consumer groups raised concerns Tuesday with a budget provision they said would allow an Ohio electric utility to keep significantly excessive profits rather than refunding them to consumers.

Critics told the House Finance Committee that House-added language could lead to "price gouging" in the form of higher utility bills for more than a million consumers of Ohio Edison, which is owned by FirstEnergy. A FirstEnergy spokesman, however, said the language would give the company more flexibility in allocating investments.

The change, added to the budget (HB 166) in last week's House substitute bill, would allow the Public Utilities Commission of Ohio to consider the revenue, expenses or earnings of any affiliate of an electric distribution utility when evaluating if a utility has or is likely to have significantly excessive earnings.

Jeff Jacobson, representing the Office of the Ohio Consumers' Counsel, said the proposed change to the significantly excessive earnings test – or SEET – would allow the profits of FirstEnergy affiliate Ohio Edison to be offset by two other, less profitable, subsidiaries of the company.

"Instead of the intended consumer protection under the 2008 (significantly excessive earnings) law, the bill would protect FirstEnergy from refunding significantly excessive monopoly profits to a million Ohio Edison customers," he said.

Ryan Augsburger, vice president of the Ohio Manufacturers' Association, said in written testimony that the provision is "anti-consumer."

"With this proposed change, if one distribution utility in a family of distribution utilities is over earning, it will offset an affiliated distribution utility that is not as profitable," he said in written testimony. "The amendment would allow FirstEnergy to shield a utility that is excessively earning by offsetting those excessive profits with an affiliated utility that is not as profitable, allowing the parent company to retain profits that are otherwise required to be given back to customers."

"This would eliminate a customer protection that was enacted as part of Ohio's ratemaking statutes," he added.

Because other utilities do not have affiliates operating under a common PUCO-approved rate plan, FirstEnergy would be the only entity impacted by the language.

"Because our three utilities operate under a single PUCO-approved rate plan, we believe it is appropriate to apply a single SEET to our three Ohio utility companies," FirstEnergy spokesman Mark Durbin said in response to the opposition testimony. "This change to a single, or aggregate SEET would provide FirstEnergy's Ohio utilities more flexibility to allocate investments across their entire footprint, which benefits our customers."

But Mr. Jacobson urged that the provision be removed from the budget and considered in a standalone bill.

Rep. Mark Romanchuk (R-Mansfield) asked if the provision in the budget would allow companies to earn more than 17% in profits.

The budget provision would not change bills for other FirstEnergy customers, only for 1.1 million Ohio Edison customers, Mr. Jacobson said.

The average utility profit margin nationwide was about 9.6% last year, Mr. Jacobson said. That figure has been moving downward.

Mr. Jacobson said the 2008 law change creating the standard of "significantly excessive profits" has already led to utilities increasing their profits, and a recent review by the Public Utilities Commission of Ohio denied consumers $42 million in refunds.

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"In this regard, the PUCO allowed Ohio Edison to exclude its so-called 'Distribution Modernization Rider' from the law's profits review," he said. "That ruling artificially deflated monopoly Ohio Edison's calculation of significantly excessive profits, from an outrageously high percentage. This ruling was at the expense of Ohio families and businesses whose electric bills were what should have been deflated. The questionable legality of this manipulation of FirstEnergy's monopoly profits would now be permanently solved for FirstEnergy by the budget bill."

Mr. Durbin, though, argued the commission had good reason to exclude the modernization rider from calculations under the test.

"The PUCO stated including the DMR revenue in SEET would introduce an 'unnecessary element of risk to the companies and undermine the purpose of providing credit support to the companies,'" he said. Opposition Continues Despite Changes To Priority Energy Bill Changes to a controversial House energy bill formally adopted Tuesday have done little to mute critics who continue labeling it a "bailout" of uncompetitive nuclear plants.

During its hearing on the priority legislation (HB 6), the House Energy & Natural Resources Committee adopted a substitute version which strengthens consumer cost caps and proposes a phased-in approach to the proposed "Clean Air" credit program to support carbon-free generation.

The committee then took testimony, most of which was negative as renewable energy developers and environmental advocates continue urging lawmakers to scrap provisions that render the renewable energy and energy efficiency standards optional.

The substitute bill was initially unveiled last week by the Energy Generation Subcommittee, which on May 2 in a party-line 5-3 vote reported the measure back to the full committee for continued debate and recommended the full panel adopt the sub. That followed more than 20 hours of testimony from more than 130 parties.

Rep. Dick Stein (R-Norwalk), who co-chaired the subcommittee, called it a "lively, well-vetted process" and highlighted concerns from proponents regarding the potential closure of FirstEnergy Solutions' nuclear plants.

But Co-Chair Rep. Michael O'Brien (D-Warren), who has called the plan a "bailout," said "70-75% of that testimony was in opposition to HB6."

"We acknowledge there was testimony in support of HB6," Rep. O'Brien said. "But the overwhelming testimony especially last week was profoundly in opposition to HB6."

That trend continued Tuesday as 20 witnesses testified in person or in writing. All but two were opponents who argued changes to the measure don't go far enough in quelling their concerns. Much of the opponent testimony featured remarks from groups and companies who testified previously before the subcommittee.

"The substitute version is not materially any better than the as-introduced bill," said Trish Demeter, chief of staff for the Ohio Environmental Council Action Fund. "While the substitute bill lowers the monthly fixed fees on residential and commercial customers in the first year (2020) of the new clean air program, the substitute bill would lead to rate hikes for Ohio families and businesses and not produce any benefits – benefits such as new jobs, more tax revenue for communities, cleaner air and better health – in return for these rate hikes."

Of the non-opponents testifying, both were interested parties: Public Utilities Commission of Ohio Chairman Sam Randazzo and Ohio Chamber of Commerce Director of Energy and Environmental Policy Zachary Frymier.

Mr. Randazzo, addressing the panel at the request of Chairman Rep. Nino Vitale (R-Urbana), provided an overview of the standards' history and spent about 90 minutes fielding questions.

He refrained from opining on whether he believes the bill is the correct course for Ohio. Instead, he told the panel it depends on what lawmakers are seeking to accomplish.

"If you want to reduce CO2, there's nothing in the current system that's focused on that," Mr. Randazzo said. He later remarked: "You all make the political decisions about what is right for the state."

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Replying to Rep. Brian Baldridge (R-Winchester), Mr. Randazzo said out-of-pocket consumer costs for compliance with the standards average about $51 million per year. That's compared to the $300 million expected to be charged to consumers under the bill's credit program once it's fully operational, he said.

"Let's assume half that money is devoted to nuclear production," he said of the HB6 credits. "That leaves $150 million a year (for renewables). By my math, $150 million is more than $51 million."

Rep. Jon Cross (R-Kenton) pressed Mr. Randazzo on whether the legislation would improve Ohio's marketplace.

"Do you believe consumers will appreciate the decrease in fees paid by consumers in Ohio?" Rep. Cross asked. "Do you believe HB6 will provide clean energy for Ohioans moving into the future?"

"I don't know if customers will understand that something is going away from their bill as a consequence of HB6," Mr. Randazzo answered. "With regard to the environmental part to your question...I don't think there's any question if the nuclear plants were to close our carbon footprint would increase exponentially."

Rep. David Leland (D-Columbus) pointed to projections from utility companies calculating that consumers would save billions of dollars through energy efficiency programs. "Do you believe the utilities or don't you?" he asked.

"It's not a belief system we're in here unfortunately," Mr. Randazzo replied. "It's what functionality you want. What is your objective?"

Mr. Frymier reiterated the chamber's concern over language that would require companies with multiple meters to face charges for each separate meter. Rep. Vitale said lawmakers are working on addressing that issue.

"Additionally, while we understand the intent of the language allowing programs to encourage efficiency is to return the law to its pre-Senate Bill 221 state, we encourage the committee to recognize that businesses will continue to invest in efficiency in response to market demands," Mr. Frymier said. "For this reason, we support the mercantile opt-out for the terminating energy efficiency programs and all future programs."

Among developers, First Solar's Becky Campbell urged lawmakers to instead pursue restructuring the standards to enable nuclear generation to participate. That would create a market-based mechanism to support carbon-free emissions rather than the legislation's fixed-cost approach, she said.

When several opponents argued the legislation would eliminate the energy efficiency standards, Rep. Vitale argued the legislation would instead make them optional. Rep. Stein suggested that because utilities profit from those programs they will be incentivized to continue them.

But Rob Kelter, senior attorney for the Environmental Law and Policy Center, said the group wants utilities to continue a robust offering of efficiency programs. Some are harder to run than others and are likely to be ditched if the mandates are weakened, he said.

As the committee debate continues with a hearing scheduled for Wednesday, the Ohio Consumers Power Alliance launched a new wave of anti-HB6 ads targeting GOP committee members and labeling the measure a "bailout."

And the pro-HB6 Ohio Clean Energy Jobs Alliance issued a statement in pushing back, calling the measure a plan that "promotes energy diversity and protects Ohio's largest source of carbon-free energy." Municipalities' Budget Concerns Include Net Profits Tax Provision Local governments are still hopeful lawmakers will pull out a provision in the state operating budget dealing with the centralized collection of municipal income taxes.

The House Finance Committee heard concerns about that and other tax and local government issues in the state budget bill (HB 166) Tuesday as public testimony continued.

Kevin Robison, director of taxation for the City of Dublin and chair of the Ohio Municipal League Tax Committee, said the budget bill includes language that would require municipalities to remit to the state full payment within 30 days for any negative account balance caused by the centralized collection of municipal net profit returns.

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"Tracking the tax revenues from the state centralized administration and collection of the municipal net profit tax will become even more burdensome and may create issues with outside auditors verifying the accuracy of payments made by taxpayers," he said.

He urged lawmakers to remove the language from the bill and deal with the issue in standalone legislation.

"More time is needed to further discuss the ramifications of this language in the budget bill, and we ask that the language be removed to allow for interested party meetings between the state tax department and municipalities for a better resolution to these issues," he said.

The Department of Taxation has said it believes the provision is needed to address a lack of a mechanism to deal with cases in which taxpayers overestimate how much tax they owe a municipality, and that the budget is an appropriate vehicle for it.

Rep. Jack Cera (D-Bellaire) said it does not appear that the issue regarding centralized collection has been fixed and asked how removing the language would help.

"What is the solution for the issue beyond just removing the language?" he asked.

Mr. Robison said municipalities believe the shifting of money should only be allowed when an actual return is filed or if there's an assessment.

"We only want the shifting of monies per return, and not from declarations filed by the taxpayer, which is just an estimate of what they owe," he said.

OML Executive Director Kent Scarrett said the league has had productive conversations with the administration about the issue.

"The meetings have been beneficial for both sides and if given a chance to continue, we believe compromise positions can be established to develop a set of best practices on how future distributions can be made to benefit the taxpayer and taxing entities," he said.

OML would like to see the language addressed in standalone legislation that can be vetted more thoroughly and provides a more measured approach, he added.

Mr. Scarrett also said many Ohio municipalities have struggled in the wake of cuts to the Local Government Fund. He urged lawmakers to fully restore the LGF to what it was before cuts in 2011.

"To invest in Ohio, we must first invest in where the vast majority of Ohioans live and work and that is Ohio's municipalities," he said.

Mr. Scarrett urged lawmakers to support additional money to help local governments cover the cost of the Multi-Agency Radio Communications System, or MARCS. The sub bill included $2 million to help with local costs, but the OML requested that be brought up to at least $4 million to cover costs.

He also voiced concern with language to end the state's motion picture tax credit.

"From Cleveland to Newark to Chillicothe to Cincinnati, Toledo to Athens, the motion picture industry has discovered the benefits and beauty of Ohio," he said. "We believe support for the expansion of this industry should be nurtured and not trimmed." Manufacturer On Board With Tobacco 21 Plan, But Group Warns Of Loopholes A major proponent of efforts to raise the purchase age for tobacco products told House members Tuesday that the law change proposed in the state's budget is insufficient. A fast-growing maker of vapor products, meanwhile, voiced support.

Wendy Hyde, Ohio and Michigan regional director for the Preventing Tobacco Addiction Foundation, told the House Finance Committee there are several loopholes in the proposal in the budget (HB 166) to raise the purchase age to 21.

"Simply changing '18' to '21' without changing the structure of licensure and enforcement, would be meaningless," she said. "That's the language that Big Tobacco and the industry have been promoting."

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Penalties should be placed on the retailer, not on the user or consumers, she said. Licensing should also cover all tobacco products, not just the sale of cigarettes. Compliance checks and re-inspections for violators should also be included.

"Laws that exist without enforcement simply will not work to prevent and reduce youth initiation of tobacco products," she said. "Therefore, I urge you to consideration incorporating the strongest possible language making a statement that young life and youth in Ohio are valued."

The measure picked up support in written testimony from vapor product manufacturer JUUL Labs. Ashlie Keener Kuehn, the company's senior regional manager for state government affairs, said raising the purchase age would help prevent the use of tobacco and vapor products by young people.

"We want to be part of the solution to end combustible smoking, not part of a problem to attract youth, never smokers, or former smokers to nicotine products," she wrote. "This is why we share a common goal with policymakers, regulators, parents, school officials, and community stakeholders – prevent the use of tobacco and vapor products, including JUUL, by America's youth. We are committed to stopping youth access of JUUL products."

The company was created to provide an alternative for adult smokers, and a recent action plan to address youth use of JUUL products includes changes to marketing and sales practices.

"Currently, at JUUL Labs, we are focused on creating an alternative to combustible cigarettes that provides an off ramp for adult smokers," she wrote. "We recognize that we cannot do this without also actively working to pass proven legislative measures that prevent youth from using tobacco and vapor products, including JUUL. States and local jurisdictions that have passed Tobacco 21 legislation have realized tremendous results."

The committee heard testimony Monday from Ohio vapor retailers, who voiced opposition to the proposal. Industrial Hemp Bill Garners Support, Concerns From Ag Community Representatives of the agriculture industry on Tuesday continued their push for a measure to decriminalize hemp and hemp-derived products, but also called for changes.

Tony Seegers, director of state policy for the Ohio Farm Bureau Federation, told members of the House Agriculture & Rural Development Committee that action on the federal level paved the way for the legislation (SB 57).

"With passage of the Farm Bill, hemp is now allowed to be grown and processed if done in accordance with the federal law," he said. "Federal law allows two paths in this regard; a state can establish its own program that then has to be approved by the United States Department of Agriculture before implementation, or the USDA can establish a program for a state."

While supportive of the measure, Mr. Seegers said the Farm Bureau will oppose any limitation on the number of acres on which a farmer with a cultivator's license can plant.

"We currently do not limit the number of acres for other crops and we do not want to start with hemp," he said. "Further, farmers of any size can utilize the corporate structure afforded under the laws of the state. You don't have to be a 'large' farm to be incorporated or a partnership or an LLC. Additionally, restricting the number of acres may actually impede development of a hemp market in Ohio."

Rep. Juanita Brent (D-Cleveland) raised the specter of only allowing Ohio residents to be licensed for the first five years.

Mr. Seegers, however, said he believes that would be a violation of the Commerce Clause in the U.S. Constitution.

Rep. Brent then noted that Colorado placed a similar restriction on its programs, to which Mr. Seegers replied that the likely reason that ban has been allowed to stand is because it has yet to be challenged.

Joe Logan, president of the Ohio Farmers Union, in interested party testimony, expressed support for the bill. However, he also spoke out against a statutory mandate for a hemp marketing program.

"Farmers have a wealth of experience with commodity marketing programs, as they exist for most of the commodities that farmers produce," he said. "We acknowledge that such programs can be useful in times where supplies are excessive, and research languishes. Neither of these factors is the case for hemp."

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Mr. Logan said commodity marketing programs are typically funded by average farmers while the benefits accrue more to the large corporate farms.

"It should be noted that some major commodity marketing programs have used funding derived from U.S. producers to oppose federal legislation that would benefit farmers but that was strongly opposed by the nation's largest processing corporation, even despite that the corporation was foreign owned," he added.

Rep. Brent also posed the question about restricting licenses to Ohioans for a five-year period. Mr. Logan said he would be open to that but suggested that non-resident Ohio farmers should be included as well.

Tim Johnson of the Ohio Cannabis Chamber of Commerce, also a proponent, called on the panel to strike language that would restrict participation for those who have pleaded guilty to or been convicted of a non-violent drug offense.

"We ask further review from the standpoint of the Ohio workforce pool being depleted over the last 40 plus years as a result of the War on Drugs and needless unwarranted continuance of punishment to one after they have satisfied their penalty requirements," he said. "It's time for realistic second chances and to rebuild Ohio's tax paying workforce rather than encouraging the growth of Ohio's tax-free workforce."

Beth Wymer, executive director of the Ohio Wholesale Marketers Association, said the legislation will pave the way for stores to again sell CBD oils derived from hemp.

"By doing this, Ohio's wholesalers can bring hemp derived CBD oil back into their warehouses and sell it to retailers in Ohio and other states where the products are legal," she wrote. Redistricting Ruling Stay Sought The state has asked a U.S. district court to stay its ruling declaring Ohio's congressional map invalid and ordering lawmakers to devise new lines by mid-June.

Attorney General Dave Yost has filed an emergency motion seeking a stay and asking the court to make a determination on the request by Friday.

A three-judge panel ruled last Friday the state's congressional map represents an unconstitutional gerrymander and ordered legislators to approve a new map by June 14.

AG Yost wrote that the court should grant the state's stay request in recognition of forthcoming rulings on two similar cases relating to gerrymandering currently before the U.S. Supreme Court. The high court is expected to decide cases on the validity of congressional maps in North Carolina and Maryland before the end of its term in June.

"If the Supreme Court holds that partisan gerrymandering is not unconstitutional, or that such claims are non-justiciable, then it will reverse this Court's decision," he wrote. "And even if the Court holds that the claims are justiciable, the Supreme Court will likely vacate this Court's decision for reconsideration in light of whatever test the Supreme Court settles on."

AG Yost argues that refusal to grant the stay could result in lawmakers putting resources toward an ultimately pointless endeavor.

"This Court's decision forces Ohio's General Assembly to expend valuable legislative time and effort attempting to address an issue before a court-imposed deadline, even though the issue is likely to become moot just a couple of weeks later," he wrote. "Worse, the decision forces the General Assembly to repeal and replace a duly enacted law before the Supreme Court has a chance to say whether there is any need to do so." House Committee Hearings - Transportation & Public Safety SB 52: Secretary of State Frank LaRose said the bill would improve his ability to respond to election threats.

"Earlier this year I was in Washington, D.C., for a meeting of our nation's secretaries of state. DHS provided a classified briefing detailing the challenges we face in the upcoming elections," Secretary LaRose said. "With that in mind, I believe it's essential the Secretary of State have a seat on the Homeland Security Advisory Council."

When asked by Rep. Juanita Brent (D-Cleveland) why the cyber security reserve budget was increased for FY 2020 and where the money would come from, Secretary LaRose said the FY 2019 appropriation only covered part of the year and the

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funds would come from the GRF. He added the appropriation did not include salaries for the reserve team members in the event they were activated.

In response to a question from Rep. Riordan McClain (R-Upper Sandusky) about what the bill would allow the Secretary of State to do in 2020 to protect election integrity, Mr. LaRose said it would give him the capability to respond and to conduct needed training at the local level. "We can go to the local board of elections and make sure they're prepared," he said.

When asked by Rep. Michael Sheehy (D-Oregon) if audit results would be available to the public, Secretary LaRose said, "We'll be fully transparent on that. The entirety of that is public record."

Rep. Sheehy asked if cyber security extended to fraudulent social media posts from foreign powers. Secretary LaRose said, "If criminal hacking occurred, then absolutely yes." He added that election meddling efforts usually focus on damaging trust in the process rather than changing votes.

When asked by Rep. James Hoops (R-Napoleon) what other states did for election security and if Ohio communicated with them, Secretary LaRose said "Ohio is a leader on election security in the nation" before adding that he had spoken to secretaries of state from nearby regions.

Rep. Michele Lepore-Hagan (D-Youngstown) questioned if other states had their secretaries of state on their Homeland Security Advisory Councils. Secretary LaRose responded that he did not know about other states and joining the HSAC was his idea based on his experience working with them.

Asked by Rep. Lepore-Hagan if the bill went far enough in funding cyber security personnel, Secretary LaRose said the National Guard already has cyber security specialists and the bill's proposed team would only be paid while active.

In response to a question from Rep. Don Jones (R-Freeport) about if counties could incur high costs from election audits, Secretary LaRose said audits were already being conducted and there were previous examples of the state released funding to support county election efforts. "It's not an unmanageable cost, but we'll listen to counties," he said.

Maj. Gen. John Harris, Adjutant General of Ohio, said the bill helps fill gaps in current cyber security coverage.

"While the Ohio National Guard is uniquely postured to deter these types of threats with cyber warriors who are able to leverage their military-specific training with cyber expertise they bring from their civilian jobs, Ohio's cyber experts are over missioned and understaffed," Maj. Gen. Harris said.

When asked by Rep. Tom Patton (R-Strongsville) how many members served on current national guard cyber security teams and if the new civilian team would augment them, Major General Harris said there were several teams of eight to ten people. "This gives us access to expertise from people who don't want to enlist for whatever reason," he added.

In response to a question from Rep. Hoops about the possibility of lawsuits resulting from the work of the new team, Maj. Gen. Harris said the possibility is real and all procedures must be carefully scripted. He added that the liability protections for the National Guard would extend to the civilian cyber security reserves.

Rep. Brent repeated her earlier question regarding the cause for higher FY 2020 projected costs compared to FY 2019, Maj. Gen. Harris responded that there was likely to be little time left in FY 2019 by the bill's passage and the funding was needed for training and equipment costs.

When asked by Rep. Reggie Stoltzfus (R-Minerva) if the cyber security reserves would help a small business under a cyber-attack and if the business would then need to repay them, Maj. Gen. Harris said the team would focus on protecting critical infrastructure rather than competing with private cyber security firms. He added they would not charge for response much like volunteer fire fighters.

Alice Miller, director of community affairs for the Ohio Utilities Protection Service, said the bill would help protect smaller utility providers unable to fund their own security.

"Features of the Ohio Cyber Reserve model that will benefit Ohio's smaller utility companies, municipalities, and energy cooperatives include essential training, education, and security assessments," Ms. Miller said.

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Written testimony in support of the bill was also provided by: Matthew DeTemple, executive director of the Ohio Township Association; Rob Frost, president of the Ohio Association of Election Officials; and Robert Pardee, chair of the Volunteer Cyber Response Teams Subcommittee for the Ohio Cyber Collaboration Committee. Wednesday, May 8, 2019 Budget Picks Up Numerous Policy, Tax Changes On Way To House Floor The House is poised to wrap up its work on the biennial budget Thursday after receiving unanimous support from the House Finance Committee Wednesday evening.

The two-year spending outline (HB 166) picked up a handful of new amendments, including an omnibus that featured significant tax changes among a host of tweaks.

With a 33-0 vote, the measure attracted the backing of all the panel's Democrats, although majority Republicans did reject several amendments offered by the minority party.

Before the vote, Rep. Jack Cera (D-Bellaire) said there were "things we like, and there are things we don't like," but that it includes policies to help working people, small businesses, schools and people with addiction.

"This will be the first budget that I will vote for as a member of the minority party, and I do so proudly because of the work that's been done by members of both sides of the aisle," he said.

The tax overhaul in the bill, the highlight of last week's substitute, was modified again in the omnibus.

The measure now eliminates the income tax on income below $22,250 and provides a 6.6% reduction in every other tax bracket.

That tax cut is offset primarily by further changes to the business income tax deduction. The deduction is reduced from $250,000 to $100,000, as in the sub bill. The omnibus also eliminated the 3% flat rate on business income over $250,000, meaning that income will now be taxed at the top rate of 4.667%.

Speaker Larry Householder (R-Glenford) told reporters after the meeting that the elimination of the 3% flat tax allowed lawmakers to make more significant changes to the personal income tax.

"What we're trying to do is we're trying to reduce income tax for all Ohioans. If you look at this tax plan that we've put forward, if you paid taxes last year and your income hasn't changed dramatically, you're going to get a tax cut," he said.

"We're trying to get away from special tax breaks for people and move more toward a fair playing field and an overall tax reduction across the board," he added.

As for the business income deduction, the changes in which drew complaints from business groups, the speaker said the change won't affect most people who claimed it, the majority of whom claimed less than $20,000.

"We tried to narrow it to the people we thought were taking advantage of the situation," he said. "We still recognize that small businesses are out there creating jobs. We're trying to take care of exceptions that were out there."

The omnibus also included several changes to health care price transparency provisions added to the bill in last week's substitute that drew concerns from provider groups.

Those changes stem in part from lengthy conversations with health care providers, the speaker said.

"We had agreement on some things and some things we're going to continue to work on, but I felt very good about where we were going," he said. I think everyone is trying to head in the right direction in terms of transparency and those other issues that are important. There's a little bit of work to do in some of the areas that are important. We've agreed to move forward to the Senate and work on some of the things."

Other health care changes included the removal of a provision added in the substitute that would have prevented hospitals from charging facility fees, and the removal of all provisions related to kinship care, to be explored in separate legislation. The omnibus also made changes surrounding health care certificates of need and the recoupment of claims by managed care organizations.

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Speaker Householder said an overarching theme of the health care changes is patients' rights.

"I would say this is a very historic budget in that there's a lot of patients' rights in this," he said. "Whether it's the transparency or the changes in the quality requirements for nursing home care, clear across this budget you're going to see Ohio looking into communities and trying to protect our most vulnerable citizens."

The omnibus also included a provision prohibiting court action by nature or an ecosystem – language aimed at Toledo's Lake Erie Bill of Rights.

"I don't believe we think that a body of water is a person," Speaker Householder said.

Among numerous other amendments, the omnibus:

• Adds $1.3 million per year for the FQHC Primary Care Workforce Initiative

• Requires the Department of Education to evaluate the cost of operating community schools on a per-pupil or other reasonable basis as a replacement for the discontinuation of a fixed per pupil formula amount

• Requires the Department of Agriculture to create a Propane Council

• Mandates county boards of developmental disabilities inform parents of all options regarding institutional care or home and community-based services

• Creates a program to reimburse counties for the costs of medication assisted treatment for substance use disorders in county jails

• Prohibits tax and bond issues from being levied in August special elections except for school districts trying to avoid fiscal emergency

• States a telephone number of a victim of crime, a witness to a crime or a party to a motor vehicle accident included in a law enforcement record is not a public record

• Prohibits Medicaid managed care organizations from requiring prior authorization for certain antidepressant and antipsychotic drugs under certain circumstances

The omnibus amendment also folds in language from several current or former House and Senate bills. Those include:

• Revisions to the Academic Distress Commission law (HB 154)

• Changes to how online travel companies collect and remit sales and lodging taxes (HB571, 132nd General Assembly)

• Requirements for local jurisdictions to pass resolutions and notify property owners regarding tax valuation complaints (HB 75)

• A tax exemption for developers on the "improved value" of subdivided land until lots are sold or construction begins (HB 149)

• State tax credits for investments in Opportunity Zones (SB 8)

The committee also accepted two amendments requested by the Department of Job and Family Services and described by Chairman Rep. Scott Oelslager (R-N. Canton) – one addressing concerns raised by child support enforcement agencies regarding compliance with the Temporary Assistance for Needy Families program, and one earmarking money for public children services agencies to allow for additional federal dollars.

The panel accepted one amendment offered by a Democrat. Offered by Rep. Erica Crawley (D-Columbus), it reinstates language requiring the Department of Health to establish pregnancy associated mortality review boards.

Amendments from Democrats that were rejected included proposals to provide first responders with more information about chemicals at industrial facilities in the event of fires; appropriate $2.5 million for the 2020 Census; increase funding for the Ohio College Opportunity Grant; provide $10 million more for food banks; repeal Medicaid work requirements; make changes to charter school laws and expand the homestead exemption.

As the House prepares to vote Thursday, attention will shift to the Senate, which has already begun its informal budget review. Speaker Householder said he hasn't discussed most of the changes with the other chamber.

"I've said before, I believe the House is the House and the Senate is the Senate," he said. "We've done our best to prepare a bill that we think is important moving forward for the next two years. It's a good budget. We'll see what the Senate comes up with."

Senate President Larry Obhof (R-Medina), speaking to reporters before the latest version of the House's plan was made public, largely declined to address the lower chamber's version. However, he did tout the elimination of two tax brackets.

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He did defend the Motion Picture Tax Credit axed by the House in the budget but tweaked and passed (SB 37) by the Senate Wednesday.

"I think we'll have a collaborative process on this and many other issues over the next two months," Sen. Obhof said.

Speaker Householder said that might not be an issue where the chambers see eye to eye. "We may have a disagreement on this one," he said. FirstEnergy Solutions: Updated Energy Bill 'Provides More Savings' A FirstEnergy Solutions official lobbied in favor of a controversial energy bill Wednesday but told Democrats he was unable to respond to opponent claims that rendering energy efficiency standards optional would result in a net bill increase for consumers.

Dave Griffing, vice president of government affairs for FES, praised the substitute version of the priority House measure (HB 6) for expanding eligibility for the proposed "Clean Air Program" to include small wind facilities under five megawatts and removing restrictions based on the location of a facility's meter and other criteria.

His remarks came during the measure's third hearing before the House Energy & Natural Resources and followed weeks of additional hearings before the committee's Energy Generation Subcommittee.

"Substitute HB6 also provides more savings to customers," Mr. Griffing said. "The revised bill phases in the full cost of the program, thereby lowering costs in the first year, and reduces the price of clean air credits to $9.00 (from $9.25). It is worth pointing out that the substitute bill, like the original bill, saves Ohio consumers millions of dollars annually while also promoting clean energy."

Mr. Griffing was one of two proponents testifying Wednesday in person or writing, the other being wind developer One Energy. As in prior hearings, the majority of witnesses – 49 – were opponents.

Rep. David Leland (D-Columbus) highlighted prior filings from utilities suggesting consumers have saved $5.1 billion as of 2017 thanks to energy efficiency programs under the standards.

"Do you disagree with those facts and the filings made by your parent company and other utilities in the state of Ohio?" Rep. Leland asked. "And if you agree with those facts how can you say we're going to save money?"

"From my perspective, I don't have a lot of experience on the energy efficiency side of the business," Mr. Griffing replied.

"But you just testified this would save ratepayers money," Rep. Leland said. "But now you're saying you don't understand whether energy efficiency happens in Ohio so how can you say it's going to save money?"

"I can't comment on the actual savings, the $5.1 billion that's been claimed," Mr. Griffing said.

Rep. Sedrick Denson (D-Cincinnati) questioned how long the FES nuclear plants would stay open if they receive credits under the proposal. Mr. Griffing said the future is unclear given the ongoing Chapter 11 process but it's "our ownership's intention to continue operating those plants."

Rep. Casey Weinstein (D-Hudson) highlighted the legislation's provisions permitting the Ohio Air Quality Development Authority to create a program to subsidized "reduced emissions resources" – an aspect that hasn't received much attention in hearings.

"This isn't just a nuclear subsidy bill," Rep. Weinstein said. "This is a nuclear, coal and gas subsidy bill."

Other Testimony: Proponent Jereme Kent, CEO of Findlay-based wind developer One Energy Enterprises, said he believes there is a compelling state interest to ensure the presence of Ohio-based generation, reduce fuel price risk long term and encourage investment in carbon-free resources.

"I think it is important to know that for every dollar of incentive our projects would receive under this bill, we will be investing $4-5," he said. "So if nothing else, as an economic development bill alone this bill has merit."

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Rep. Jon Cross (R-Kenton) questioned why other wind developers who have testified have voiced opposition. Mr. Kent attributed that to his belief the wind industry has an "attitude problem."

"The wind industry has not done a good job communicating, adapting. It hasn't thought about what really is the next best thing for us," Mr. Kent said. "It likes the same thing. It doesn't like change."

The dozens of opponents testifying included environmental groups, wind and solar developers and consumer advocate groups.

"We can chase a lot of rabbits down a lot of different holes, but these energy efficiency programs are saving us significant amounts of money," said Dan Sawmiller, Ohio energy policy director for the Natural Resources Defense Council. "Set any bias aside and really focus on the benefit of these programs."

Rep. Brett Hillyer (R-Uhrichsville) asked why the state should maintain what he considers a "$5.1 billion boondoggle."

"It's anything but," Mr. Sawmiller replied. "We have been able to exceed the annual standards every year with energy efficiency which I think refutes the argument the low-hanging fruit is gone."

John Finnigan, lead counsel for the Environmental Defense Fund, said consumers should be able to continue benefiting from the "benefits from renewable energy that the energy standards provide." Ohio policymakers should instead be pursing an "all-of-the-above" approach, he said.

Rep. Cross repeatedly questioned Mr. Finnigan on why the group supported market restructuring laws in Illinois, Connecticut, New York and New Jersey. Given the higher rates experienced by those states, Rep. Cross asked, do you support rate increases?

Mr. Finnigan replied that those proposals were much different than HB6.

"We supported those packages because even though they provided aid to the money-losing nuclear plants they strengthened the renewable portfolio standards that bring the benefit of that lower form of energy to the citizens," Mr. Finnigan said. "We would do the same thing if we adopt an all-of-the-above energy policy in Ohio."

David Rinebolt, acting executive director for the Ohio Partners for Affordable Energy, said he's "very concerned" that adopting an opt-in for the energy efficiency standards would result in: the end of programs providing between $15-20 million in services a year, 10,000 fewer homes being weatherized a year, and the elimination of 500 jobs at agencies and contracting companies.

If lawmakers don't leave the standards in place, then perhaps the legislation could designate a low-income energy efficiency program as a "clean air resource" to fund those efforts, Mr. Rinebolt said. The group's proposed amendment would phase in that approach over two years.

Some of the opponent concerns centered on what they viewed as vague language that leaves stakeholders unsure of how the program would be implemented – with opponent Ned Ford calling the process "hasty" and the legislation "confusing."

Among interested party testimony, Joseph Oliker, associate general counsel for IGS Energy, shared concern about a substitute provision that could allow utilities to provide behind the meter generation products to customers through a schedule or reasonable arrangement.

"While the bill suggests that the Public Utilities Commission of Ohio may impose conditions to ensure that participating customers are solely responsible for the associated risks and costs, this provision is concerning because the affiliates of the utilities can, and do, already provide renewable products and services to customers at no cost or risk to ratepayers."

Enel X, meanwhile, urged lawmakers to amend a section of the measure requiring the Public Utilities Commission of Ohio to file a report with the legislation regarding the PJM capacity market. It's a worthwhile provision, the company argued, but it should be amended to require the report to consider demand response.

The Buckeye Institute, which previously testified as an interested party, on Wednesday released a policy brief examining what it called the "unnecessary and harmful" renewable standards.

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House Dems Push For Start Of Redistricting Work House Democratic leaders Wednesday called on their Republican colleagues to join with them to begin work on the process of drawing new congressional districts in response to a recent federal court ruling.

House Minority Leader Emilia Sykes (D-Akron) sent a letter to Senate President Larry Obhof (R-Medina) proposing a meeting of the Legislative Task Force on Redistricting, Reapportionment, and Demographic Research for 9 a.m. Monday. Rep. Sykes serves as co-chair of the panel.

"I do not believe it is prudent upon us as legislators to sit on our hands and not to act," she said at a news conference.

The request follows last week's decision by a U.S. district court to strike down the state's current congressional map as an unconstitutional gerrymander and order lawmakers to approve new district lines by June 14. If they fail to do so, the court could step in to assist in creating a new map.

Sen. Obhof was noncommittal Wednesday, saying options are still being considered while the state seeks a stay of the decision. But he did not rule out the task force or the Government Oversight Committee taking up the issue.

Asked if the General Assembly could meet the court-imposed deadline he said, "We'll see."

"Obviously we're very busy over the next few weeks with the state budget and with some major energy policies," he said, before adding: "We can tackle a lot of different issues at the same time if necessary."

Rep. Sykes added that she was "deeply disappointed" by the decision of Republican officials to move forward with an appeal instead of launching the redistricting process.

"We have resources to the tune of $5 million in which we can hire lawyers and consultants and map drawers so we can start this process," she said. "We have been put on notice."

As to whether that amount would be enough to draw new lines this year and after the upcoming census, Rep. Sykes said, "I have no idea."

"That's why we need to get together and start talking about it," she said.

Rep. Sykes said acting quickly would respect the will of residents, who voted last May to approve an amendment overhauling the state's redistricting process. She said it would be "totally disrespectful" to voters not to consider using that new process to fulfill the court's order.

"We have been given a charge by the voters to be more fair, and we have a framework and guidelines to do it," she said. "While we don't have to follow those rules until 2021, we should be looking at those as a guideline."

Rep. Sykes said the Republican position amounts to "let's hurry up and wait."

"I think that is an awful position to be in," she said. "We often hear complaints about activist judges changing public policy. Here is a way to make sure that does not happen. We should not cede our power to the judicial branch if we don't have to."

If a stay is not granted by the lower court, the state plans to ask the U.S. Supreme Court to put the ruling on hold. The nation's highest court currently has two partisan gerrymandering cases before it: a Republican map in North Carolina and a Democratic map in Maryland.

"I think that those cases could potentially have a significant impact," Sen. Obhof said. "They're addressing some core issues that relate to the justiciability of the question that was raised by the plaintiffs.

"But there was also a case last year that the Supreme Court decided involving Wisconsin related to whether the plaintiffs very similar to the plaintiffs we have in this case had standing or not and the U.S. Supreme Court said they did not. So, there are a lot of potential legal questions out there.”

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Senate Committee Hearings - Transportation, Commerce & Workforce SB 72: Trying yet again to address what he referred to as "the big lie" regarding fireworks sales in the state – the sale is allowed but not the use – Sen. Dave Burke (R-Marysville) presented the latest version of his legalization proposal for consumer grade, 1.4G fireworks.

"As states across the country have loosened their firework laws, we have found that an increase in use of fireworks across the country in recent decades has not correlated to a statistically significant increase in firework related injuries," he said.

"Statistics show that firework consumption in the United States has risen from 29 million pounds in 1976 to 254.4 million pounds in 2017, a 777 percent increase. According to the U.S. Consumer Product Safety Commission's 2017 Fireworks Annual Report, during that period of time the estimated number of firework related injuries per year has mildly fluctuated, with an average of approximately 9,900 incidents per year."

One section of the bill establishes the Ohio Fire Code Rule Recommendation Committee, he said. The panel would be made up of the State Fire Marshal, local fire chiefs, a local police chief, members of the Ohio State Pyrotechnics Association, a member of Prevent Blindness Ohio, a member of the Ohio Optometric Association, a member of the Ohio Pyrotechnic Arts Guild, and a representative of the Ohio Chapter of the American Academy of Pediatrics.

"The purpose of this committee is to advise the State Fire Marshal regarding rulemaking, including those surrounding firework usage, sale, manufacturing licensing, and wholesaler licensing," Sen. Burke said.

The measure also entails a 4% Firework Safety Fee on the gross sale of all fireworks in the State "to provide adequate resources to the State Fire Marshal to design firework safety material, increase enforcement and regulation on the firework industry, and help supplement the cost of firefighter training classes for local fire departments." The Fire Marshal's office would be required to design a Firework Safety Pamphlet to be distributed by retailers to the consumers at the point of sale to educate the consumer on proper safety precautions to take when using the fireworks, he added.

The bill will also now require all firework retailers to have safety glasses available for purchase at the point of sale, the sponsor said. "This will place a gentle reminder to consumers on the importance of wearing safety glasses when using fireworks and will hopefully decrease the number of firework related eye injuries."

"While the intent is to allow for consumer purchase and use of these consumer grade fireworks, this bill respects the right of local municipalities to restrict and/or ban the use of fireworks in their communities. Special attention was also placed on violations of the fireworks law, whereby an individual can be convicted for use of fireworks while in possession of, or under the influence of, alcohol or controlled substances, disturbance of the peace, or use of fireworks on unauthorized property," he said.

Sen. Burke said the bill would also addresses several issues that have arisen as a result of interested party input. That includes a new section of code regarding "fountain devices," requires that the 4% firework safety fee also applies to fountain devices, adjusts some of the dates in the bill, and adds a member of the Ohio Council of Retail Merchants to the Ohio Fire Code Rule Recommendation Committee.

Responding to questions from Sen. Nickie Antonio (D-Lakewood), the sponsor said he was able to make adjustments to last session's similar legislation that got every interested party except Prevent Blindness Ohio to be at least neutral on the measure. He noted that current state law allows for the sale of extremely hot sparklers often used by children.

Sen. Kristina Roegner (R-Hudson) applauded the legalization component, saying of current law, "I've always thought it was kind of ridiculous."

But as a "free market" supporter she questioned the extension of the moratorium on fireworks retailers and wholesalers.

After commenting that he suspected current sellers enjoy the monopoly they've had for decades, Sen. Burke said the delay was built into the bill to give the fire marshal time to develop rules before opening up the marketplace. House Committee Hearings - Economic & Workforce Development SB 8: Alesha Washington, vice president of government advocacy for the Greater Cleveland Partnership, and several others relayed support for the bill.

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"We actively engage in economic development and revitalization projects in our region; notably through Cleveland Development Advisors, a well-known and respected real estate and business finance organization that is a part of GCP. CDA has a 30-year track record of leveraging the New Markets Tax Credit program and private financing to invest in targeted, catalytic economic development projects that create jobs and improve neighborhoods throughout Greater Cleveland," she said.

"It this through this lens that we offer support for Senate Bill 8. We also want to recommend an addition to the legislation that will encourage impact investments and equalize the playing field for development in higher distressed communities."

"A state incentive to support the federal program allows Ohio to be well positioned to attract investment and engage investors who are already here. We know that many of our major business districts and strong neighborhoods – like Tremont in Cleveland or Over the Rhine in Cincinnati – will quickly benefit from this new tool because of the exciting development efforts already underway," Ms. Washington said. "Our collective efforts in the public, private and civic sectors must be focused on equalizing the playing field for developments in rural Ohio and less developed neighborhoods that are designated as Opportunity Zones, to ensure they can benefit from this new tool."

GCP proposed the following changes:

A 5% tax credit to an eligible investor if they invest their assets in an Opportunity Zone Fund. This follows the current framework laid out in Senate Bill 8 but reduces the incentive from 10% to 5%. And a 10% tax credit to an eligible investor if they invest their assets in an Opportunity Zone Fund and, at the time of application, the fund demonstrates how it will invest in projects that: --Create affordable, multi-family housing. --Address health issues such as access to fresh foods (grocery stores) or greenspace (parks). --Address mobility access by creating jobs closer to where residents live. --Support small business development and entrepreneurship. --Address broadband and connectivity for residents and businesses. --Include a community benefits agreement with the local municipality or township.

"The investor or fund manager could also provide a resolution from the Mayor or County Executive of the municipality or township in which the project is located to demonstrate local support," Ms. Washington said.

The witness said her group's proposed changes are based on recent legislation passed in Maryland, work with the Urban Institute, and ongoing conversations with key stakeholders "on how to best leverage a state incentive for Opportunity Zone investments in a way that is still a streamlined and accessible tool for potential investors but helps to maximize local community and economic development goals."

"GCP does believe that the Opportunity Zone program, when coupled with proven development tools like the New Markets Tax Credit, has the potential to bolster transformational investment and development in low-income communities," Ms. Washington said. "Senate Bill 8 provides an incentive to ensure we can capture and draw critical investments to our state; this is why we are supportive of the legislation. With a tiered approach to the tax incentive, we believe we can help create greater opportunity for our most distressed communities."

The witness told Rep. Bill Reineke (R-Tiffin) that the six criteria for doubling the percentage of the incentive under GCP's proposed amendment was developed through working with the Urban Institute and other entities and that while based on Cleveland research are "universal ideas" to apply statewide.

Asked about Maryland's legislation by Rep. Beth Liston (D-Dublin), she said Maryland's legislation probably is "way more robust" than what her group suggested to the committee. She added to the lawmaker that it was still very early in the program to gauge related success stories.

Rep. Catherine Ingram (D-Cincinnati) questioned the opportunity zones' impact on demographics, particularly as it relates to minority populations. Ms. Washington said the proposed amendment seeks to incentivize developments that benefit a range of demographics.

Gregg Cramer, vice president of economic development at the Greater Akron Chamber of Commerce, said in support of the bill that in Summit County alone there are 16 opportunity zones that encompass most of downtown Akron, and part of Barberton and Cuyahoga Falls.

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"The opportunity zones in Summit County present investors the prospect of investing in a metropolitan area at a comparatively low-cost, which would become even more attractive with an additional state incentive," he said. "Through providing a state supplement to the existing federal incentives, Ohio is more likely to be successful in attracting investments, both from inside and outside Ohio."

Mr. Cramer urged quick passage of the measure.

"Time is of the essence. With respect to the current federal regulations and timeline, investors are 'on the clock' and must invest in an Opportunity Zone Fund by the end of 2019 to utilize the full benefit of the federal opportunity zone program," he said. "Because other markets already have state-incentives in place and the federal timeline incentivizes investors to act in very near future, it is imperative that we accomplish the goals of Senate Bill 8 in an expedient manner."

The witness told Rep. Michael Skindell (D-Lakewood) that Arkansas and Maryland have already enacted similar laws, though he was unsure how much they are tied to the creation of affordable housing, transit and jobs for low-income individuals.

Mr. Cramer told Rep. Ingram he would provide more information on ongoing improvements in Akron and that tax increment financing would likely continue to be used.

Mike Sikora, an attorney, title agent, and business owner with offices in Cleveland and Columbus, spoke in support of the measure on behalf of NAIOP, the Commercial Real Estate Development Association.

"Passage of this Bill would be beneficial for Ohio's commercial real estate industry because the 10% income tax credit would make more projects economically feasible for developers. Moreover, this Bill would attract developers and investors to areas that have historically not seen much commercial real estate development," he said.

"This Bill would essentially accelerate growth and prosperity in markets that many developers had not previously considered, encouraging more development within our State. The available 10% tax credit would encourage economic development and make businesses more comfortable moving into these Opportunity Zones. That should bring more jobs, promote entrepreneurship in those areas, and enable Ohio families in those areas improve their quality of life."

Ohio Municipal League Executive Director Kent Scarrett said in prepared testimony said the bill is beneficial given many of Ohio legacy cities and small rural villages are "struggling to pay for the basic services Ohioans expect and deserve and financially-challenged municipalities across the state "are unable to properly maintain safe infrastructure or fully staff their police and fire departments."

"When a municipality cannot finance the delivery of these basic services, businesses are disincentivized from staying in or moving to those communities. Jobs dry up and the local economy suffers, while the younger incoming workforce leaves the community for an education or a career and never returns," he said.

"Sen. Schuring has recognized the need to incentivize investment in these struggling communities. SB8 builds upon the foundation laid by the federal Tax Cuts and Jobs Act of 2017, creating an opportunity for investors to receive a 1% tax credit on project investments that exceed $250,000."

"The League and its members appreciate Sen. Schuring's recognition of the need to invest in Ohio's distressed local governments. SB8 can serve Ohio's municipalities as well by creating jobs, growing the local economy and generating much-needed additional local tax revenues," Mr. Scarrett said.

Written proponent testimony was provided by: Aaron Clapper, project manager of the Greater Ohio Policy Center; Carrie Arblaster and Beth Wanless, of Ohio Realtors; and Mark Wagenbrenner, president of Wagenbrenner Development in Columbus. Thursday, May 9, 2019 House Passes Budget With Tax Changes, Targeted Spending The state operating budget cleared its first major hurdle Thursday, advancing through the House with overwhelming support from both parties.

The two-year spending outline (HB 166) totaling $68.8 billion in General Revenue Fund allocations, passed the chamber 85-9, with more members of the majority Republican caucus voting in opposition than Democrats.

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Gov. Mike DeWine's executive budget proposals focused on support for families, and Speaker Larry Householder (R-Glenford) told reporters after the vote that the House's version builds on that vision with tax changes aimed at helping workers and more money to support those affected by the opioid crisis.

"We've done a lot over the years to continue to fight addiction in our communities," he said. "This budget now is reaching back into those communities to help those people who have been impacted by addiction other than the addict. That is the children of our community, the families in our community. It's really about rebuilding our communities in our state."

Pointing to the vote totals, the speaker said he expected the bipartisan support would help the chamber in negotiating with the Senate, which will now kick into high gear in its budget work.

"You're looking at a bill that only had nine 'no' votes leaving this chamber. I think anybody would recognize this is overwhelming support," he said.

"They're going to want changes, there's no doubt about that," he added. "We'll see how it goes."

Before the House voted on the measure Thursday, it picked up one more change: An amendment removing language regarding the controversial "Healthy Ohio" Medicaid waiver.

The House's process on the spending bill was stalled by a handful of factors, including the six-week delay in the bill's introduction due to the governor's inauguration and the longer-than-usual process in finalizing the transportation budget (HB 62).

The operating budget process accelerated after lawmakers returned from spring break, with the House Finance Committee accepting a substitute bill last week that included a reduction in the business income deduction, the elimination of the bottom two income tax brackets and cuts in the next two brackets.

On Wednesday, the committee accepted an omnibus amendment making further tax cuts to all brackets before voting unanimously to report the measure.

Those tax cuts were largely offset by changes to the business income deduction and the elimination of what the speaker referred to as "special" tax breaks, including one for motion picture productions.

"We said, you know, it's special enough to be a citizen in the state of Ohio," the speaker said. "I care more about Bob Buckeye in Beverly, Ohio, than Bobby DeNiro in Beverly Hills."'

The budget drew support from Minority Leader Emilia Sykes (D-Akron), who called it "absolutely and unequivocally an investment in Ohio's future and an opportunity renew Ohio's promise."

The chamber's top Democrat praised the process and the inclusion of the minority party, even if she voiced doubts the measure would see as much support in the Senate.

"This was a long process and an interesting process, but I'm glad that we got through it together and we will get through it even though we have to send it across the hall and they're likely going to mess it up," she said.

She pointed to pay increases for direct support professionals in the Medicaid program as a way to help people who do vitally important jobs.

"We have a serious problem here in Ohio where we have people who have jobs and those jobs do not pay them enough money to live in a way that they deserve," she said. "Investing in those people, investing in their families allows them to take care of our families."

House Finance Committee Chairman Rep. Scott Oelslager (R-N. Canton) said the measure is structurally balanced, sustainable and provides "meaningful personal income tax relief," especially for hard working individuals in the bottom tax brackets

"By eliminating these brackets, we are recognizing them and saying, 'Thank you for your personal initiative,'" he said.

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The tax cuts, along with changes to the business income deduction, will "bring more fairness back to our tax structure."

"The governor's budget had a lot of good things in it and I think we improved on it," he said. "I think most of what we've added has added to the effectiveness and to the quality of the product."

Rep. Jack Cera (D-Bellaire), who said it was his 11th budget as a legislator and who is term-limited after this General Assembly, urged his colleagues to continue to address issues in Appalachian Ohio.

"Our area continues to have a lot of great needs, and I think there's good things in this budget to help Appalachian Ohio," he said. "I encourage all of you to remember us. We have a lot of problems that have been going on for a long time."

The $68.8 billion in GRF spending is part of a total of $141.5 billion in appropriations across all funds included in the bill. All-funds spending in the House version is $663.7 million more than the version introduced by the governor, while GRF spending in the House version is down $181 million compared to the executive version.

An amendment offered by Rep. Ryan Smith (R-Bidwell) dealing with out-of-state students receiving State Share of Instruction support for community colleges was tabled by a 68-26 vote.

Rep. Smith said the proposed change was designed to address a loophole caused by Eastern Gateway Community College's growth in online education.

Rep. Jay Edwards (R-Nelsonville) said the language could have unintended consequences for other border community colleges and urged more consideration. Court Denies State's Stay Request In Redistricting Case The same judicial panel that declared Ohio's congressional map unconstitutional has declined to stay its ruling pending the result of an appeal to the U.S. Supreme Court.

The U.S. district court order leaves in place a mid-June deadline for the legislature to approve new congressional district lines.

The state's stay request mirrored arguments it laid out in a previously rejected motion to stay the trial, according to the order issued by U.S. Circuit Court Judge Karen Nelson Moore, U.S. District Court Judge Timothy Black and U.S. District Court Judge Michael Watson.

"Moreover, Defendants and Intervenors attempt to relitigate the merits of the case in these motions and avoid the Court's finding and conclusion that the current map is unconstitutional and has thus harmed voters," the decision states.

Attorney General Dave Yost said in a statement the state will continue to fight the decision.

"This was expected," he said. "The State is entitled to appellate review of the invented legal standard in the trial court's decision, and will ask the Supreme Court to stay the decision pending its ruling on similar cases already before it."

The state intends to file its request with the high court either late Thursday or Friday, according to the AG's office.

In a memorandum in opposition to the state's move to seek a stay from the district court, the ACLU of Ohio, the Ohio A. Philip Randolph Institute and other plaintiffs in the case accused the state of undertaking "a continuing effort to run out the clock."

The state announced its intention to appeal and file for a stay last week shortly after the district court ruled the state's congressional map represents an unconstitutional gerrymander and ordered lawmakers to develop new lines by June 14. If they fail to meet that deadline, the court would step in to assist in the process.

AG Yost has argued the stay should be granted because the U.S. Supreme Court is expected to rule on similar cases out of Maryland and North Carolina before the end of June. Those rulings could lead to the district court's judgment being reversed or vacated for reconsideration under newly established precedent.

"This Court's decision forces Ohio's General Assembly to expend valuable legislative time and effort attempting to address an issue before a court-imposed deadline, even though the issue is likely to become moot just a couple of weeks later," he wrote.

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"Worse, the decision forces the General Assembly to repeal and replace a duly enacted law before the Supreme Court has a chance to say whether there is any need to do so."

The plaintiffs noted in their filing that the state made similar arguments in a request to stay the trial, which the district court denied in February.

"Defendants and Intervenors once again assume that the Supreme Court will resolve certain legal issues presented by this case in their favor. However, as this Court noted in its February Order, that is only one of a slew of possible outcomes," the memo in opposition states.

The plaintiffs also argued against the state's claim that the court's mandate to approve a new map by mid-June represents a burden worthy of a stay. They noted the court has agreed to step in if the lawmakers miss the deadline.

"If the process of enacting a new districting plan would itself be injurious, or the Legislature simply has other priorities, the Legislature can avoid the task altogether," the memo states.

Amid the legal battle, House Democrats have called for the Legislative Task Force on Redistricting, Reapportionment, and Demographic Research to begin meeting again. Groups Reviewing Budget Language Targeting Lake Erie Bill Of Rights Parties on both sides of an ongoing legal fight over a Toledo charter amendment granting Lake Erie legal rights say they're still digesting a House-added budget provision that seeks to trump that charter language.

Included in the House-passed budget (HB 166) is language stating that neither nature or any ecosystem has standing to participate in or bring a court action. It also would ban any person from bringing an action on behalf of nature.

That provision was added Wednesday via the omnibus amendment to the bill, which passed the chamber Thursday and now heads to the Senate.

That budget component is a direct shot at the Lake Erie Bill of Rights, which Toledo voters approved Feb. 26. The language grants the lake the rights to exist, flourish and naturally evolve – a move that empowers Toledo residents to file lawsuits on behalf of the lake over any action they deem to have impeded those rights.

Crystal Jankowski, an organizer for Toledoans for Safe Water, which championed the ballot proposal, said the group's attorneys are still reviewing the added language.

"It came out of absolutely nowhere," she said. "It was definitely shocking to wake up to it this morning and how they kind of snuck it in was more concerning. We're really making people nervous. We're changing the status quo. They've gotten to the point they know they can't fight us fairly."

The passage of the ballot measure prompted an immediate lawsuit from Wood County farmer Mark Drewes, who is being backed by the Ohio Farm Bureau. OFB spokesman Joe Logan said the bureau is still reviewing the budget provision.

"Our focus is on the final result," Mr. Logan said. "That is putting resources in the hands of farmers to help clean up the lake. Clearly from the discussion at the Statehouse both the governor and lawmakers think there are a variety of ways to get there and so we're hoping the focus stays on that end result. We do like the idea of a level of certainty."

As the budget heads to the Senate, the court case continues. U.S. District Judge Jack Zouhary on Wednesday denied a motion from Toledoans for Safe Water and the "Lake Erie Ecosystem" to intervene in the Drewes lawsuit.

In doing so, the judge ruled the Toledo group's arguments were unconvincing and that the request for the ecosystem to join the lawsuit was "unusual" and "meritless."

"The only source of domestic law cited in the motion supporting the ecosystem's capacity to intervene is the amendment itself," the judge wrote. "The amendment, however, does not purport to allow intervention by the ecosystem in federal district courts."

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The city of Toledo has taken point in defending the language against legal opposition. Attorney General Dave Yost is also seeking to intervene in the case and has argued it is the state and not the city that should enforce environmental protection regulations. Voters Approve Majority Of School, Other Levies Residents passed more than three-quarters of the ballot issues school districts placed before them on Tuesday.

Voters gave their OK to 79 of 104 issues – an approval rate of 76% – according to the Ohio School Boards Association. That marks an increase from last May's primary election, when voters approved 63 of 92 issues, or about 68%.

The approval rate for renewal levies was even higher Tuesday, with 50 of 52 issues backed by residents. As for new requests, 31 of 52 resulted in success.

Jennifer Hogue, OSBA's director of legislative services, said in a statement the election "showed just how important citizens think their public schools are."

"But, most of the issues voters approved were renewals; the passage rate for new funding requests was dramatically lower," she added. "That means those districts will face increasing challenges in meeting their students' academic needs and replacing aging and outdated buildings."

Seven of 11 issues supporting parks and recreation services, including a $100 million bond issue in Columbus, earned approval from voters.

"It is well understood that parks and recreation is a key to quality of life in a given community," Woody Woodward, executive director of the Ohio Parks and Recreation Association, said in a statement. "Over the past decade, voters have approved more than 80% of parks and recreation levies around the state. They clearly get it."

All five ballot issues supporting libraries throughout the state were backed by residents.

"Ohioans continue to express their strong support for public libraries at the polls," Douglas Evans, executive director of the Ohio Library Council, said in a statement. "Yesterday's election results once again prove that the majority of voters consider public libraries a priority and are willing to provide them with the financial resources necessary to serve their communities."

Both children services levies on Tuesday's ballot – a five-year 0.5-mill renewal levy in Ashtabula County and a five-year, 1.15-mill replacement levy with a 1-mill increase in Logan County – passed easily.

Two of three behavioral health levies earned voters' approval, with residents of Stark and Sandusky counties supporting requests. An additional two-year, 0.3-mill levy proposal failed in Champaign and Logan counties.

A five-year, 2.5-mill renewal levy to support disability services cruised to victory in Hancock County. An additional 10-year, 1.7 mill levy in Marion County appeared to fall about two-dozen votes shy of passing. Friday, May 10, 2019 Potential Vote On House Energy Bill Looms A controversial House measure to subsidize carbon-free generation and render the state's energy standards voluntary could be brought to a vote next week, according to Speaker Larry Householder.

Democrats, meanwhile, are fashioning their own proposal to make the bill more palatable – with ideas ranging from support for low-income weatherization programs to more specific requirements as to how coal and gas plants can qualify for subsidies by demonstrating reduced emissions.

With the operating budget now in the hands of the Senate, the House will turn full attention to the fast-tracked energy bill (HB 6), which has drawn days of testimony from more than 100 opponents who take issue with the plan to create a credit program to support nuclear and renewable resources.

The key sticking point is the measure's move to render the renewable energy and energy efficiency standards optional, which opponents argue would scrap a successful program in favor of an unproven approach aimed at "bailing out" troubled nuclear plants.

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Asked about the potential for a floor vote on HB6 next week, Speaker Householder (R-Glenford) said Thursday, "That's our goal. We've got a little bit more work to do but we'll see how it goes."

Rep. Nino Vitale (R-Urbana), who chairs the House Energy & Natural Resources Committee that is reviewing the measure, was less committal.

"We're still vetting the bill," Rep. Vitale said. "I think we need to hear from people and what they think. We'll see where we go. This is the committee process we have to go through."

GOP amendments were due Thursday and are expected to in part enable developers to pursue larger renewable projects for commercial entities and address language that would see customers with multiple meters being charged for each separate meter under the proposed credit program.

Democrats, meanwhile, continue discussing the best way to pursue their "Clean Energy Jobs Plan," which they're hoping to have included in HB6. Several Democrats said in interviews it's unclear whether they will propose an omnibus or separate amendments.

Their plan would create Advanced Energy Credits to maintain 15% baseline nuclear generation. Other components include loosening wind turbine setback restrictions, strengthening the renewable energy standard to 50% by 2050, and requiring a 50% in-state preference for new wind and solar projects.

Rep. Sedrick Denson (D-Cincinnati), the committee's ranking minority member, said he's focused on protecting low-income weatherization efforts that opponents fear could be slashed under an opt-in approach to the energy efficiency standards.

Other proposed Democratic changes would focus on language in the bill permitting the Ohio Air Quality Development Authority to create a program to subsidize "reduced emissions resources." Opponents have argued the language is vague and ill defines under what circumstances a carbon-emitting resource could receive support.

"It deals with some potential for coal and gas to get some sophisticated type of mechanism that will lead to less emissions," said Rep. Michael O'Brien (D-Warren) who co-chaired the subcommittee that reviewed HB6. "Whether (the majority will) agree with all these terms or not is anybody's guess."

Of the more than 100 parties providing testimony, less than a dozen have testified in support of the measure, including FirstEnergy Solutions.

"Has anybody testified in favor of the bill?" joked Rep. David Leland (D-Columbus), calling opposition "overwhelming."

"We've heard from businesses, from manufacturing, energy people, regular constituents," Rep. Leland said. "Everybody's got a huge problem with the bill so we're going to try to fix it."

Speaker Householder said he gives little credence to arguments in favor of maintaining the energy efficiency standards.

"How many more lightbulbs can we change?" the speaker asked. "We're sort of running out of rope here on energy efficiencies. I understand that it lowers our carbon emissions in the state, but we've sort of changed all the lightbulbs we can change and a lot of refrigerators have been taken out, but I think we've kind of run our cycle on this."

Some GOP committee members have highlighted that some opponents testifying don't reside in Ohio – a point the speaker emphasized.

"This is not about renewables versus nuclear energy," Rep. Householder said. "It's inside Ohio versus outside Ohio. The people who want to generate outside Ohio and sell electricity into Ohio versus folks that are already generating inside Ohio and want to expand."

Chair Vitale said he's still working through claims from proponents and opponents on the effectiveness of the standards.

"There's conflicting testimony here going on on a lot of different things," Rep. Vitale said. "There's an old adage, a biblical line from scripture I remember: 'What is truth?' I'm trying to do my best to drive at what that must be."

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Committee members in both parties who sat through days of subcommittee testimony agree recent committee hearings haven't revealed any new arguments.

"We've had a lot of the same people that testified in our hearings testifying here," said Rep. Dick Stein (R-Norwalk), co-chair of the subcommittee. "Their comments are the same. Their arguments are the same. I'm willing to listen to their arguments but there's but nothing really new added I believe."

Rep. Denson agreed, adding, "It's a lot of the same stuff."

Rep. Stein said he hopes the upcoming substitute version "will hopefully bring more people into the fold."

"Everybody's kind of got their camp and they're all advocating for their corner," Rep. Stein said. "All we're trying to do is mitigate that in a way where more people will come together." Agriculture, Enviro Groups Partner On Water Quality Effort Stakeholder groups are joining forces to launch a statewide farmer certification program to support best practices aimed at boosting water quality.

The formation of the Agriculture Conservation Working Group marks what participants are calling an "unprecedented partnership" with the goal of introducing a framework for the certification program by the end of 2019.

It's a far cry from nearly one year ago when ag and enviro groups were at odds over then-Gov. John Kasich's regulatory plan to tackle harmful algal blooms in Lake Erie – an approach that was never enacted following opposition from lawmakers and the ag industry.

"A group with a farm-level focus and representation from across the environmental, academic and agricultural communities has never come together before with a commitment to the shared objective of improved water quality," said Scott Higgins, CEO of the Ohio Dairy Producers Association.

"Agriculture has an important role in implementing continuous improvement efforts to reduce nutrient runoff, and this initiative will work toward broad-scale adoption of best management practices by Ohio's farmers," Mr. Higgins added.

Other industry groups participating in the effort include the AgriBusiness Association, the Cattlemen's Association, the Corn and Wheat Growers Association, the Farm Bureau Federation, the Pork Council, the Poultry Association, the Sheep Improvement Association, and the Soybean Council.

Environmental groups at the table include the Environmental Council, the Federation of Soil and Water Conservation Districts, and the Nature Conservancy. The National Center for Water Quality Research at Heidelberg University has also signed on.

"Bringing these diverse interests to the same table is a significant accomplishment, and we all share a common goal of clean water for all Ohioans," said Heather Taylor-Miesle, executive director of the Environmental Council. "There is a shared sense of urgency towards finding solutions to our state's water quality issue, and this all-inclusive approach to inventory farm practices and build a farmer certification program is a positive step in the process."

The working group recently held a two-day retreat in Ostrander where members began discussing best management practices, education development, public outreach and other approaches in what members called a "robust dialogue."

The certification program will pursue a "4R" approach to nutrient management, which refers to using the "right source of nutrients at the right rate and right time in the right place." The group plans to launch a website and other stakeholder resources in the near future.

The discussion comes as lawmakers continue hammering out details of Gov. Mike DeWine's budget plan for an H2Ohio fund to support water quality efforts in Lake Erie and beyond.

Bond Issue: Among other water quality efforts, Sen. Theresa Gavarone (R-Bowling Green) and Sen. Sean O'Brien (D-Bazetta) announced they will introduce legislation to create a 10-year bond issue to fund water quality improvements.

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The forthcoming resolution would permit the state to issue bonds to finance clean water enhancements with a maximum annual issue of $100 million. If it passed the General Assembly, the measure would require voter approval.

"This resolution is another step in the legislature's ongoing effort to protect one of Ohio's greatest natural resources," Sen. Gavarone said in a statement.

Added Sen. O'Brien: "As an avid outdoorsman with many miles of Lake Erie shoreline in my own district, it has long been a priority of mine to ensure the health and wellbeing, not only of the Lake, but all of Ohio's waterways."

Several similar resolutions have been offered in prior years including one (SJR6, 132nd General Assembly) last year from Sen. O'Brien and former Sen. Randy Gardner, Sen. Gavarone's predecessor. State Requests Stay Of Redistricting Decision From U.S. Supreme Court Attorney General Dave Yost has asked the nation's highest court to temporarily block a ruling that invalidated the state's congressional map.

The state on Friday filed an emergency application for a stay of a U.S. district court decision that determined the state's congressional districts represent an unconstitutional gerrymander.

The federal court set a deadline of June 14 for lawmakers to approve a new congressional map. If they fail to act by that date, the court offered to assist in redrawing the boundaries.

AG Yost has asked for the court's directive to be delayed as the Supreme Court prepares to rule on similar cases involving gerrymandering claims out of Maryland and North Carolina. The high court is expected to decide those cases before its term ends in June.

"Instead of forcing the General Assembly to risk wasting its time, this Court should stay the District Court's decision pending appeal," the application states.

The attorney general also argues forcing lawmakers to approve a new district lines ahead of the Supreme Court's decisions would "freeze campaigns, disrupt fundraising, and confuse voters."

"Some candidates who would otherwise run for Congress may opt out because of the confusion. Voters may ultimately fail to participate not understanding which plan is in place," the application states. "If this final judgment is ultimately vacated (as every other similar judgment in cases like this one has been in the past several years), then the damage cannot be undone."

On Thursday, the district court that issued the ruling declined to grant a stay of its decision pending the result of the state's appeal to the high court.

The state's stay request mirrored arguments it laid out in a previously rejected motion to stay the trial, according to the order issued by U.S. Circuit Court Judge Karen Nelson Moore, U.S. District Court Judge Timothy Black and U.S. District Court Judge Michael Watson.

"Moreover, Defendants and Intervenors attempt to relitigate the merits of the case in these motions and avoid the Court's finding and conclusion that the current map is unconstitutional and has thus harmed voters," the decision states.

The ACLU of Ohio, the Ohio A. Philip Randolph Institute and other plaintiffs in the case accused the state of undertaking "a continuing effort to run out the clock" in a memorandum in opposition to the stay request filed with the district court.

"Defendants and Intervenors once again assume that the Supreme Court will resolve certain legal issues presented by this case in their favor. However, as this Court noted in its February Order, that is only one of a slew of possible outcomes," the memo in opposition states.

In the wake of the district court's ruling, House Democrats have called for the Legislative Task Force on Redistricting, Reapportionment, and Demographic Research to begin meeting again. Cincinnati, County Strike Water Deal Water Deal: An agreement struck between Hamilton County and the city of Cincinnati may have staved off the need for legislation.

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The two entities reached a deal that will keep water rates the steady for township residents. Last year the city passed an ordinance to raise water rates 18% in those areas, leading to a lawsuit.

The agreement lasts for 50 years, WKRC reported.

The proposed rate increase led Rep. Tom Brinkman (R-Cincinnati) to introduce a measure (HB 163) to put a stop to what he deemed to be municipal water works "rate gouging."

Reprinted with permission of Gongwer News Service, Inc.