Positive, Transformational Changes Dominate Agenda (June 2011)
Whether advocating for pro-business legislation, working to eliminate costly and unnecessary regulations or cutting through government bureaucracy, the Ohio Chamber's Governmental Affairs team is at the Statehouse fighting for your business. To keep up with Ohio Chamber activities at the Statehouse, visit this website regularly.
Here's a recap of our recent activities (January 2011 to June 2011) and links to previous overviews.
State Budget
The Jobs Budget, HB 153, will go down in history as game-changing legislation that improves the operations of state and local governments and sets Ohio on a path for economic growth and job creation. It includes significant reforms that have been talked about for years with little action.
To advocate for the major changes included in the budget bill, the Ohio Chamber organized Ohio’s Campaign for Jobs. By joining other business and community groups in a grassroots coalition, we successfully pressed for reforms that make government operate more like a business.
The Jobs Budget makes government accountable to the taxpayers by closing a multi-billion dollar funding gap without increasing taxes. It puts our state’s well-being ahead of special interests and lets the world know we are serious about doing what’s best for Ohio and our jobs climate.
Economic Development
The centerpiece of Gov. Kasich’s plan to revive Ohio’s economy is the creation of a private, non-profit job creating entity called JobsOhio. Strongly supported by the Ohio Chamber, HB 1 unites the strengths of each of our regional economies and taps the knowledge and experience of the private sector in business recruitment and retention. JobsOhio establishes a public/private partnership for operating Ohio’s economic development and job creation efforts and represents the best chance to build a more favorable business climate.
Energy and Environment
Ohio businesses rely on reliable, affordable energy to be successful and policy makers have taken steps to utilize our state’s abundant natural resources to help meet our energy needs. The Ohio Chamber supported legislation, HB 133, creating a regulatory framework for oil and gas drilling on state lands. Efforts to increase Ohio production not only help reduce overhead costs for businesses, but also create jobs. This proposal ensures the safe, responsible and environmentally-friendly development of domestic energy resources on state lands.
The Ohio Chamber scored a major victory with the passage of HB 231, a bill that implements a common sense regulatory program as required by the Great Lakes Compact (Compact). The Compact prohibits water diversions from the Great Lakes and requires that states create an in-basin water withdrawal regulatory program. The Ohio Chamber led the charge to ensure this implementing legislation complies with the Compact and balances the sustainability of the Lake Erie Watershed with economic development and job growth.
Health Care
One of the largest causes of Ohio’s budgetary struggles is the ever-increasing amount of dollars spent on health care. The realization that Ohio’s health care delivery system focuses on procedures performed, rather than patient outcomes, required major structural change. Gov. Kasich created the Office of Health Transformation (OHT) to streamline the health and human services organizational structure and reign in Medicaid spending. OHT developed Medicaid reforms that improve care coordination, rebalance long-term care and modernize provider reimbursement. These reforms are expected to produce cost savings to taxpayers of $1.4 billion and were strongly supported by the Ohio Chamber.
Human Resources and Benefits
The Ohio Chamber worked diligently to secure relief for seasonal employers from overly burdensome unemployment compensation costs. Currently, employees who work for two or more seasonal employers or a seasonal employer and a non-seasonal employer can collect unemployment compensation between the seasons. Under the new system, those same employees whose base period consists of at least 40 percent of seasonal employment, and who have received reasonable assurance for employment during the next season from a seasonal employer, will not be able to collect unemployment benefits between the successive seasons.
Public employee collective bargaining reform legislation, SB 5, was signed into law by Gov. Kasich on March 31. The bill was designed to provide local officials with tools to provide more flexibility in controlling costs. The legislation preserves the right of public employees to collectively bargain on wages, hours and terms and conditions of their employment. It does not reduce the pay of public employees nor does it apply to existing collective bargaining agreements. Provided enough valid signatures were gathered to place the issue before voters, this November, Ohioans will be asked if they want to repeal SB 5. Repeal will return Ohio to the status quo of inflated local government budgets and antiquated, inefficient bureaucratic management systems.. Less efficient and most costly government will negatively affect Ohio’s ability to compete.
Legal and Business Regulation
Before beginning their summer recess, lawmakers passed a bill that updates Ohio’s Uniform Commercial Code (UCC). HB 9 revises Ohio law to incorporate UCC updates recommended by the National Conference of Commissioners on Uniform State Law. The changes accommodate evolving business practices to facilitate commerce and promote uniformity. They also make it clear that electronic documents can be used in commerce in Ohio, eliminating any legal uncertainty regarding how they will be treated.
Public Affairs
Another bill supported by the Ohio Chamber overhauls Ohio’s criminal justice system and has the potential to save taxpayers millions of dollars. Enactment of HB 86 will help ease prison overcrowding and lower recidivism rates by removing. low-level, non-violent offenders from costly adult prisons and placing them in more effective community correction programs. .
Legislators also passed another Ohio Chamber supported initiative, HB 188, creating an Ohio Constitutional Modernization Commission. It responds to a provision in the Ohio Constitution that requires voters to decide every 20 years whether to hold a convention to consider revisions, alterations or amendments to the Constitution. Ohio voters will make this decision in the November 2012 election. The commission will gather input from Ohioans and recommend how to alter or amend the Constitution to the Ohio Legislature. Each recommendation will require a two-thirds vote of the commission and, if approved by the legislature, will be put before Ohio voters.
Regulatory Reform
Improving Ohio’s regulatory structure is crucial to attracting new businesses and creating and retaining jobs. That is why the Ohio Chamber endorsed legislation that streamlined the state’s regulatory process. SB 2 created the Common Sense Initiative (CSI) office to serve as a clearinghouse for businesses that may be adversely impacted by redundant and confusing regulations. Proposed regulations must now undergo a cost benefit analysis through the CSI office. Additionally, the new law allows the joint House-Senate committee that reviews agency rules to invalidate proposed rules if they are unduly burdensome to businesses.
Increasing the efficiency of state and local government is the focal point of SB 4, legislation that requires the state auditor to conduct performance audits of at least four state agencies per biennium. The Ohio Chamber supported the bill because it establishes the performance audit as a valuable tool to improve service, increase productivity and obtain more value for taxpayer dollars.
Small Business
The repeal of Ohio’s estate tax, or so-called “death tax,” is the culmination of a decade-long advocacy effort by the Ohio Chamber’s Small Business Council (OSBC). Two OSBC board members testified in the House and Senate, arguing that eliminating the estate tax will save Ohio jobs by keeping more family-owned businesses in the state. Repeal of the estate tax takes effect January 2013 and its elimination will enhance the growth and prosperity of Ohio’s small businesses.
Taxation
The Ohio Chamber was a key advocate of an amnesty plan that allows businesses to avoid the payment of interest and penalties on their use tax liability until May 2013. The amnesty authorizes the Ohio Department of Taxation to only “look back” on three years of purchases rather than the current seven years, and the amnesty option must be offered to companies currently under a use tax audit.
Workers’ Compensation
In May, the Ohio Bureau of Workers’ Compensation (BWC) reduced workers’ compensation rates for employers effective July 1, 2011. The rate reduction was supported by the Ohio Chamber and will yield an average collectible base rate of $1.43 per $100 of payroll, down from the previous $1.49. Unlike prior years, this reduction will also apply to employers in the group-rating program. Depending on their industry classification and claims history, some may see more savings than others. For example, average rates for employers in the Manufacturing Industry Group will fall seven percent and the Commercial Industry Group, which includes various retail and wholesale establishments, will fall five percent.
