APRIL 17, 2009 ODJFS DIRECTOR TESTIFIES IN SENATE FINANCE

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1 APRIL 17, 2009 ODJFS DIRECTOR TESTIFIES IN SENATE FINANCE On Wednesday, ODJFS Director Doug Lumpkin testified in front of the Senate Finance Committee concerning the biennial budget (HB 1). While the bill has yet to come out of House Finance, the Senate wanted to get started on hearings because of the short amount of time to consider the bill. While Director Lumpkin did a great job throughout his testimony and in answering questions, he was peppered with inquiries from Senate Finance members about the $62 million TANF/Title XX Transfer loss to counties and the zeroed out Kinship Permanency Incentive Program ($10 million county loss). For this, CCAO says THANK YOU to not only all of our fantastic commissioners who have been engaged in this issue and communicating with your legislators, but also our county partners (OJFSDA, PCSAO, and OCDA and their members), as well as all of the advocate groups who have been supportive of our Restore the $62 Million message!! As soon as the House unveils their substitute bill (likely next week) and how our $62 million cut was handled, we will let you know. Also, shortly after that, we will release an updated model legislator letter and talking points for you to use to continue your phenomenal communication and lobbying work. While we work hard to lobby for issues impacting counties, no message is more effective than the one that comes directly from you to your legislators! ONE STEP CLOSER ON H.B. 694 On Tuesday, the 10 th District Court of Appeals upheld Judge John Bender s (Franklin County Common Pleas Court) decision from December, 2007, that ruled H.B. 694 unconstitutional because the bill was not enacted properly into law. Judge Bender held that, because H.B. 694 was not enacted properly, the bill was invalid and the law remains as it existed prior to H.B In Judge Bender s decision, he explained that Section 15(A), Article II, of the Ohio Constitution requires that, in order for a bill to be validly enacted, the bill must be passed by a majority of both houses of the legislature. Due to a clerical error, the bill that the Speaker of the House, President of the Senate, and Governor signed was not the bill passed by both the House and Senate. The Senate passed and the House concurred in Am. Sub. H.B But, the Speaker of the House, President of the Senate, and Governor signed Sub. H.B Judge James Brogan, writing for the 10 th District Court of Appeals, agreed with Judge Bender s decision that H.B. 694 was not enacted properly under the Ohio Constitution due to the clerical error. Judge Brogan went on to explain that no one disputes the innocence of the clerical error 1

2 that led to the present controversy; the innocence of that error, however, merely underscores the dangers we face if we open the door to a breach of the strict constitutional procedures for enacting legislation in Ohio. Less innocent circumstances are not difficult to imagine by which different statutory language, on the basis of a purported clerical error, could be offered after the fact and against the will of the members of the General Assembly who had voted for or against the bill concerned, Judge Brogan opined. You may recall that in June of last year, Judge Bender also ruled that, while H.B. 694 was amended in H.B. 119 (biennial budget bill), the amendment was not valid because its inclusion in the budget bill violates the single subject rule under the Ohio Constitution and represents a complete disunity of subject matter with the balance of the biennial appropriations bill. The 10 th District, however, did not address the alleged violation of the single subject rule holding that the issue was moot. Concurring with Judge Brogan were 10 th District Judges Judith French and Gary Tyack. While we are very close to being able to disregard all of the constraints H.B. 694 has leveraged on counties, we are not quite done. The state has 45 days to appeal the 10 th District s decision to the Ohio Supreme Court. Additionally, even if the state appeals the decision to the Supreme Court, the Court must agree to hear the case. Until then, we advise counties to keep on keeping on by following the requirements of H.B If you have any questions concerning this ruling, please contact Beth Tsvetkoff at or btsvetkoff@ccao.org. BALLOT BOARD CERTIFIES CASINO PROPOSAL Promoters of a four-casino plan for Ohio got approval yesterday to begin circulating their petition, but that victory could be overshadowed by the emergence of a big-league rival. In a 4-1 vote, the Ballot Board concluded that the gambling proposal is a single constitutional amendment, which was the last governmental hurdle proponents needed to clear before gathering signatures. The group backing casinos in Columbus, Cleveland, Cincinnati, and Toledo won permission from the Ohio Ballot Board to begin gathering signatures for a petition to put their proposal on the November ballot. Promoters will need 402,275 valid signatures of registered Ohio voters by July. The primary sponsors of the measure, dubbed the Ohio Jobs and Growth Plan, are Penn National Gaming Inc. and Cleveland Cavaliers owner Dan Gilbert. The meeting, however, may have been more significant for heralding the arrival of a major rival. MTR Gaming Group Inc. owns Scioto Downs racetrack in Columbus; Mountaineer Casino, Racetrack, and Resort in Chester, W.Va.; and Presque Isle Downs and Casino in Erie, Pa. A spokeswoman for MTR, Tamara Pettit, said by phone that the company is prepared to spend money against the Ohio Jobs and Growth Plan to oppose any issue that is not protecting the horse-racing industry.

3 The company's attorney, Anne Marie Sferra, unsuccessfully tried to persuade the Ballot Board to break up the casino proposal into five separate ballot issues, which would have hobbled its chances. Among other things, Sferra argued that authorizing four casinos should be one ballot measure, and distributing the taxable revenue should be another. Sferra also contended that voters should be able to decide separately on a provision that would allow the Ohio casinos to have the same types of gambling as their counterparts in Michigan, West Virginia, Pennsylvania, and Indiana. Ohio Secretary of State Jennifer Brunner, who chairs the Ballot Board, agreed with Sferra. Brunner was the only member of the five-member panel to vote against putting the four-casino plan on the ballot as a single constitutional amendment. HOUSE WILL DIVERT CRIMINAL SENTENCING PROPOSALS TO STUDY COUNCIL Governor Ted Strickland's proposed "common sense sentencing reform" provisions likely will be stripped from the biennial budget proposal for further study, according to a lawmaker involved in revising the measure. Rep. John Carney (D-Columbus), Vice Chairman of the House Finance & Appropriations Transportation and Justice Subcommittee, said lawmakers have serious reservations about the proposals designed to reduce the escalating prison population. In response to the steadily increasing cost of maintaining the prison system, Governor Strickland and Department of Rehabilitation and Corrections Director Terry Collins proposed a variety of measures designed to lessen penalties on non-violent offenders and divert some prisoners less costly community corrections options. A proposal to expand greatly the Earned Credit program, which grants prisoners early release time in return for completing education and addiction programs, has generated considerable opposition among legislators and law enforcement officials. The issue became even more complicated once the Ohio Prosecuting Attorneys Association suggested repealing mandatory drug sentences and other changes instead of expanding the earned credit program, he said. A separate Senate measure sponsored by Sen. Bill Seitz (R-Cincinnati), which almost is identical to the criminal sentencing portions of the biennial budget (HB 1), could ultimately serve as a vehicle for enacting the Administration's plan. Sen. Seitz said he was working on several amendments to his measure (SB 22) that were designed to minimize opposition to expanding the earned credit program. One revision would narrow the range of eligible offenders, he said. The original version of the bill would have included too many first and second-degree felons. Another idea is to require offenders getting released early through the program submit to electronic monitoring, he said. PUCO ADOPTS RULES FOR ALTERNATIVE ENERGY PORTFOLIO STANDARD The Public Utilities Commission of Ohio (PUCO) adopted rules this week that implement the alternative energy portfolio standard created by Senate Bill 221, Ohio s electricity law. The rules also incorporate new requirements for energy efficiency, long-term forecast and greenhouse gas reporting, and carbon dioxide control planning. Ohio s alternative energy portfolio standard requires that by 2025, at least 25 percent of electricity sold in the state by electric distribution utilities and electric services companies must be generated from alternative energy resources. At least half of this energy must come from 3

4 renewable energy resources, including wind, biomass, hydro, and fuel cell, and a minimum of one-half percent must come directly from solar resources. One half of these renewable energy facilities must be located in Ohio. The rules the Commission adopted today put into practice annual benchmarks, or incremental percentage requirements, that electric utilities and service companies must meet to fulfill the renewable portion of the portfolio standard. These benchmarks are abridged in the chart below. By end of year Renewable Energy Resources Solar Energy Resources % 0.004% % 0.12% % 0.30% % 0.50% Electric utilities and service companies may use renewable energy credits (REC) to satisfy all or part of the renewable energy benchmarks. One REC represents the environmental attributes associated with the generation of one megawatt hour of electricity from an eligible renewable energy facility. Alternative energy advocates have questioned how a cost cap excusing utilities from the renewable energy requirements would be put into place. The cap was put into the landmark legislation to protect consumers from large price spikes. The commission approved rules Wednesday that partially would excuse utilities from the requirement when the overall cost of providing electricity, including renewable energy, amounted to three percent more than the cost of providing electricity without including alternative sources. Companies would still have to provide the greatest amount of renewable energy up to the three percent cap. Utilities had wanted to be able to compare the individual cost of producing electricity with traditional sources, such as coal, directly with renewable sources. Currently, burning coal is the cheapest way to produce power and the industry proposal would make it easier to trigger the cap. BILL INTRODUCTIONS SB 111 TAX PAYMENTS (Stewart) To make permanent the temporary reimbursements for local government and school district tangible personal property tax losses. SB 109 PROPERTY TAXES (Gibbs) To exempt from real property taxation the value of single-family residential property owned by a developer or builder until the developer or builder transfers possession or title. En SB 110 HOUSEHOLD SEWAGE (Niehaus) To revise the Household Sewage and Small Flow On-Site Sewage Treatment Systems Law, and to declare an emergency. Am , , , , , , , , and HB 134 CANCER SCREENINGS (DeBose) To require certain health care insurers and plans, including the state's Medicaid program, to offer to provide benefits for prostate, colorectal, cervical, and ovarian cancer screening examinations. Am , , and HB 135 CANCER SCREENINGS (DeBose) To require certain health care insurers and plans, including the state's Medicaid program, to offer to provide benefits for prostate cancer screening examinations. Am , , and

5 HB 136 CANCER SCREENINGS (DeBose, Fende) To require certain health care insurers and plans, including the state's Medicaid program, to offer to provide benefits for ovarian cancer screening examinations. Am , , and HB 131 TURNPIKE MAINTENANCE (Wagner) To make the Ohio Turnpike Commission responsible for major maintenance and repair and replacement of grade separations at intersections of any turnpike project with county and township roads. En HCR 15 LIVESTOCK EMISSIONS (Martin) To memorialize the administrator of the U.S. EPA to refrain from adopting any new regulations governing greenhouse gas emissions from livestock that would impose permit fees on livestock producers, and to memorialize the Congress of the United States to enact legislation introduced by United States Senators John Thune and Charles Schumer that proposes to amend Title V of the Clean Air Act to establish appropriate exceptions for livestock producers. COMMITTEE SCHEDULES: Tuesday, April 21 House Finance & Appropriations, (Chr. Sykes, ), Rm. 313, 1:30 pm state programs. --3rd Hearing House Session, (Chr. Budish, ), House Chamber, 11:00 am --Canceled Senate Session, (Chr. Harris, ), Senate Chamber, 1:30 pm House Finance & Appropriations, (Chr. Sykes, ), Rm. 313, 1:30 pm state programs. --Acceptance of substitute bill; Public testimony related to Transportation & Justice and Agriculture & Development Wednesday, April 22 Senate Finance & Financial Institutions, (Chr. Carey, ), Finance Hearing Rm., 9:30 am Budget testimony from Department of Development and Department of Commerce state programs. --4th Hearing House Finance & Appropriations, (Chr. Sykes, ), Rm. 313, 9:30 am state programs. --Public testimony related to Human Services and Higher Education House Housing & Urban Revitalization, (Chr. Foley, ), Rm. 116, 11:00 am HB 3 HOME FORECLOSURES (Foley) To declare a six-month moratorium on mortgage foreclosures, to provide courts additional authority to modify mortgage payments and continued tenancy, to require registration of residential mortgage servicers, to regulate residential mortgage servicers, to adopt procedures and requirements related to residential foreclosure actions, to adopt civil and criminal penalties for violations of the bill's provisions, to terminate provisions of this act six months after its effective date by repealing section of the Revised Code on that date, to terminate certain provisions of this act three years after its effective date by repealing section of the Revised Code on that date, and to declare an emergency. --7th Hearing-All testimony 5

6 Senate Env. & Nat. Resources, (Chr. Schaffer, ), North Hearing Rm., 11:15 am SB 73 COAL MINING (Niehaus, Wilson) To revise the laws governing coal mining with regard to the imposition of a portion of the severance tax on coal and performance security and reclamation, and to declare an emergency. --3rd Hearing-All testimony-possible vote SCR 8 LIVESTOCK EMISSIONS (Grendell) To memorialize the administrator of the U.S. EPA to refrain from adopting any new regulations governing greenhouse gas emissions from livestock that would impose permit fees on livestock producers, and to enact legislation introduced by U.S. Senators John Thune and Charles Schumer that proposes to amend Title V of the Clean Air Act to establish appropriate exemptions for livestock producers. --3rd Hearing-All testimony-possible vote Senate Session, (Chr. Harris, ), Senate Chamber, 1:30 pm House Session, (Chr. Budish, ), House Chamber, 1:30 pm Senate Judiciary-Civil Justice,(Chr.Seitz, ) North Hearing Rm, 2:30pm or after session SB 80 TESTIMONIAL PRIVILEGE (Seitz) To create an accountant-client testimonial privilege. --2nd Hearing-Proponent SB 77 DNA TESTING (Goodman) Relative to the expansion of DNA testing for certain convicted felons, the elimination of the DNA testing mechanism for felons who pleaded guilty or no contest to the offense, the collection of DNA specimens from all persons eighteen years of age or older who are arrested for a felony offense, the preservation and accessibility of biological evidence in a criminal or delinquency investigation or proceeding, the improvement of eyewitness identification procedures, and the electronic or audio recording of custodial investigations. --3rd Hearing-All testimony House Ways & Means, (Chr. Letson, ), Rm. 114, 3:00 pm HB 61 ESTATE TAXES (Hottinger, Grossman) To reduce the estate tax by increasing the credit amount, to authorize townships and municipal corporations, or electors thereof by initiative, to exempt from the estate tax and any estate property located in the township or municipal corporation, and to distribute all estate tax revenue originating in a township or municipal corporation that does not exempt property from the tax to the township or municipal corporation. -- 1st Hearing-Sponsor Thursday, April 23 Senate Finance & Financial Institutions, (Chr. Carey, ), Fin. Hearing Rm., 9:30 am Budget testimony from House of Representatives, Senate, Joint Committee on Agency Rule Review, Joint Legislative Ethics Committee, Ohio Expositions Commission and Ohio Historical Society state programs. --5th Hearing House Public Safety & Homeland Security, (Chr. Miller, ), Rm. 115, 9:30 am HB 39 ICE REMOVAL (Fende) To require the removal of snow or ice from special parking locations designated for persons with disabilities within 24 hours after the weather condition causing the snow or ice ceases. --2nd Hearing-Proponent House Judiciary, (Chr. Harwood, ), Rm. 115, 10:00 am Presentations from Ohio Assn of Civil Trial Attorneys and Ohio Association for Justice HB 103 JUDICIAL ATTACKS (Fende, Harwood) To increase the penalties for certain offenses when a judge or magistrate is the victim, to prohibit a person from threatening a judge or magistrate, and to make the killing of a judge or magistrate an aggravating circumstance for the imposition of the death penalty for aggravated murder. --1st Hearing-Sponsor 6