6500 Taylor Road, Suite A, Blacklick, Ohio 43004 Phone (614) 863-0045 • Fax (614) 863-9751

www.ohiotownships.org

Statehouse Update

April 13, 2018

Monday, April 9, 2018 TESTS SHOW HIGH PHOSPHORUS LEVELS IN LAKE ERIE TRIBUTARIES Recent tests show phosphorus levels heading toward Lake Erie remain at more than twice the level desired under Ohio's reduction targets. That's according to the state's recent Western Lake Erie Tributary Water Monitoring Summary, a deep-dive look into water quality data collected by the U.S. Geological Survey, Heidelberg University, and the state's Environmental Protection Agency and Department of Natural Resources.

The monitoring effort is one tool to assist the state in assessing efforts to meet reduction targets under the Binational Water Quality Agreement, which aims to downsize phosphorus levels by 40% by 2025.

"This report, which is consistent with testing as far back as the early 2000s, confirms that we haven't moved the needle to meet our goal of reducing phosphorus by 40% by 2025 and we have more work to do," OEPA Director Craig Butler said in a statement.

"While there continues to be significant taxpayer and private dollars spent on incentives and voluntary nutrient reduction programs, it is clear the actual water quality monitoring data shows that our efforts to improve Lake Erie are not over and we must continue to identify new ways to help reduce phosphorous going to the lake," Mr. Butler continued.

The report, released earlier this month, comes as Mr. Butler and his staff continue gauging legislative support for a potential omnibus bill to expand the agency's regulatory reach to curb phosphorus runoff and tackle other environmental issues.

Reaction from some lawmakers and stakeholders has been mixed, however, rendering it uncertain when or if the legislation will ultimately be introduced. Meanwhile, lawmakers have already offered their own proposals to help improve water quality.

The most recent (HJR 14) comes from Rep. Michele Lepore-Hagan (D-Youngstown) and Rep. Kent Smith (D-Euclid) and would permit the issuance of general obligation bonds to fund sewer and water capital improvements. Their measure is companion legislation to a plan (SJR 4) from Sen. Joe Schiavoni (D-Boardman) which received its first and only hearing so far in September.

"Our failure to upgrade and modernize the systems that deliver our water and treat waste put people's lives at risk," Rep. Lepore-Hagan said. "The longer we wait, the more likely it becomes that a Flint, Michigan-like disaster will occur in our state. I am confident Ohio voters will embrace our commonsense solution to this growing and extremely dangerous dilemma."

Rep. Smith likewise called infrastructure spending for aging public water systems "woefully inadequate."

"When giving consideration to the positive ripple effect that these projects would create for Ohio's working families and public health, the time to invest is now," he said.

And Sen. Randy Gardner (R-Bowling Green) and Rep. Steven Arndt (R-Port Clinton) have announced their own upcoming legislation to create a Clean Lake Capital Fund with up to $100 million a year for five years dedicated to algae reduction efforts and agricultural best practices. CASINOS, RACINOS SEE BIG REVENUE GAINS IN MARCH March was a banner month for Ohio's casinos and racinos, with the four casinos raking in a near-record revenue and the racinos setting one of their own. The four casinos totaled $81.7 million in March, up significantly from the $67.6 million they saw in February and the $75.4 million they brought in a year earlier, according to reports from the Ohio Casino Control Commission.

Statehouse Update

Page | 2

March tends to be a good month for the casinos - the highest they've recorded was $84.3 million, in March 2013. In other years, March revenues have also been strong. March was also good for the seven racinos. They totaled a record of nearly $96.5 million in revenue from video lottery terminals, an increase of more than $17 million from February, according to reports by the Ohio Lottery Commission.

Hollywood Columbus had the highest among casinos, at $22.4 million. That was up compared to $18.6 million in February and $20.6 million the previous March. It saw $16.3 million from slot machines and $6.1 million from table games. Hollywood Toledo saw its take reach $19.7 million, up from $15.7 the month before and $18.3 a year earlier. It took in $16.4 million from slot machines and $3.4 million from table games.

JACK Cincinnati totaled $19.5 million in March, compared to $17.1 million in February and $18.5 million in March 2017. Slots accounted for $12.8 million, while table games were $6.7 million. JACK Cleveland brought in $20.16 million, rising from $16.3 million in February and $18 million in March 2017. Table games accounted for just a little bit more, at $10.1 million, than slot machines, at $10 million.

Racinos: Hard Rock Rocksino-Northfield Park logged the highest revenue, at $23.3 million, up $3.8 million compared to February. Scioto Downs brought in $16.3 million, up nearly $2.5 million from the month before, while Miami Valley Gaming totaled $15.4 million, an increase of $2.8 million.

JACK Thistledown was at $12 million, up $1.9 million, while Hollywood Mahoning Valley Race Course recorded $11.4 million, an increase of almost $1.9 million. Hollywood Gaming's Dayton Raceway totaled $10.5 million, up $1.4 million from the previous month. Belterra Park, which was closed from Feb. 19 to March 2 because of flooding, saw $7.5 million in revenue, an increase of $3.2 million compared to the month before. ATTORNEY GENERAL'S OPINION No. 2018-009. Requested by Fayette County Prosecuting Attorney Jess C. Weade. SYLLABUS: 1. A board of county commissioners providing emergency medical services throughout the county pursuant to R.C. 307.05 may not exclude a township located in the county from the provision of emergency medical services.

2. A board of county commissioners that operates an emergency medical services organization to provide emergency medical services throughout the county under R.C. 307.05 may not require a township in the county to pay for those services, unless the board of county commissioners and the board of township trustees have entered into a contract under R.C. 307.05 whereby the board of county commissioners agrees to furnish emergency medical services to the township in exchange for the payment of a fee.

3. If a county tax levy for ambulance and emergency medical services and a township tax levy for ambulance and emergency medical services are approved by the electors in the May 2018 election, both tax levies may be imposed on taxable property in the township.

4. A county tax levy for ambulance and emergency medical services may be imposed on taxable property in the township in the future even if, in the May 2018 election, a township tax levy for ambulance and emergency medical services is approved by the electors and a county tax levy for ambulance and emergency medical services is not approved.

5. The duplication of ambulance and emergency medical services and taxes for ambulance and emergency medical services may be avoided or minimized if the board of county commissioners and the board of township trustees enter into a contract for emergency medical services under R.C. 307.05, or if, pursuant to R.C. 307.052, the board of county commissioners forms a joint emergency medical services district that does not include the territory of the township.

6. The response time of a county emergency medical services organization may be evaluated by the organization's peer review and quality assurance programs or the State Board of Emergency Medical, Fire, and Transportation Services. INTRODUCED IN THE SENATE SB 288 FIREARMS (Eklund, J., Kunze, S.) To expand the definition of dangerous ordnance to include armor piercing

ammunition and expand the definition of an automatic firearm to include any device within the federal definition of machine gun; to create additional conditions under which an individual may not possess a

Statehouse Update

Page | 3

firearm or dangerous ordnance and to eliminate the process by which an individual may apply for relief from a weapons disability; to generally prohibit a person from buying, purchasing, obtaining, or furnishing a firearm on behalf of a third party; to provide for the entry of protection orders into the federal NCIC database and LEADS; and to provide for the issuance by a court of an extreme risk protection order. Am. 2151.34, 2903.213, 2903.214, 2919.26, 2923.11, 2923.13, 2923.18, 2923.20, 2923.23, 3113.31, and 3113.99, to enact sections 3113.26, 3113.27, 3113.28, 3113.29, and 3113.30, and to repeal section 2923.14

Tuesday, April 10, 2018 ROSENBERGER TO RESIGN SPEAKER'S OFFICE AFTER FBI PROBE REVEALED House Speaker Cliff Rosenberger announced Tuesday he will resign his office and leave the legislature amid FBI questions into his travel and spending habits.

His departure, scheduled for May 1, was announced shortly after the House Republican Caucus met following a lengthy day of committee meetings.

"As I have said previously, I am aware of a federal inquiry being conducted regarding things I may have been involved in. First and foremost, I believe that all of my actions as Speaker have been both ethical and lawful," Mr. Rosenberger said in a statement.

"However, I understand that the nature of this inquiry has the potential to be very demanding and intensive, and could take months or even years to resolve. Meanwhile, there are many important issues facing our state that deserve careful consideration and review, and Ohioans deserve elected leaders who are able to devote their full and undivided attention to these matters. I believe the institution of the Ohio House of Representatives is far more important than one person."

"Therefore, it is after much thought and contemplation that I have decided to resign as both Speaker of the Ohio House and state representative of the 91st District, effective May 1st. At that time, Speaker Pro Tempore Kirk Schuring will assume the responsibilities of the office of Speaker until a new Speaker is elected by the Ohio House," he said.

The FBI inquiry was first revealed publicly over the weekend when the Clarksville Republican told the Dayton Daily News he had hired a criminal defense attorney because the FBI had been asking questions about him. However, he also told the paper he had not been told he was under direct investigation.

His office, however, has publicly declined to comment further until the announced was released Tuesday night. Mr. Rosenberger could preside over the House session on Wednesday afternoon.

The issues reportedly piquing the FBI's interest include Mr. Rosenberger's overseas travel, his use of campaign funds and relationships with donors and lobbyists. He came under fire last year when it was revealed that he rented a luxury downtown Columbus condo owned by GOP contributor Ginni Ragan.

Last week, Attorney General Mike DeWine discussed the issue with the speaker and suggested he resign if allegations of improprieties were true.

Governor John Kasich said Mr. Rosenberger is a friend and has been a key partner in leading the state. "I am sorry to hear this news but respect him for making a decision that he believes is right for our state and the people and institutions for which he cares deeply," the governor said in a statement. "I wish him well in the days ahead."

The 102nd Speaker of the House, Mr. Rosenberger rose to take the gavel at the age of 33 after maneuvering his way past Rep. Jim Butler (R-Oakwood) and a coalition of conservative members in 2014.

Prior to his legislative career, the Air Force veteran served in President George W. Bush's administration as special assistant to U.S. Secretary of Interior Dirk Kempthorne.

Mr. Rosenberger joined the House in 2011 and faces term limits this year. He briefly flirted with a run for the GOP nomination for state auditor against Rep. Keith Faber (R-Celina) before changing his mind. Suggestions that he might instead run for county commissioner also did not pan out.

Statehouse Update

Page | 4

"Serving the people of the 91st House District has been the greatest honor of my life, and I am truly sorry that I will not be able to fulfill the remainder of my term," Mr. Rosenberger said. "I take this step with full confidence in my ultimate vindication, but also believe this decision is what is best for my family, my constituents, the residents of the state and the Ohio House of Representatives. I have every belief that the House will continue to lead on the most important issues facing our great state and that Ohio's future remains bright."

Rep. Schuring (R-Canton) said in a statement released with the speaker's comments, "It has been an honor and privilege for me to serve with Cliff Rosenberger over the past seven years in the Ohio House. Particularly in the past three years, I believe we have worked well together to take the lead on a variety of policy issues that are critical for our state's success. That is what makes tonight's announcement so emotional."

"Though it was very difficult, I know the Speaker made the decision he felt was best for the Ohio House of Representatives. Therefore, effective May 1st, I will humbly accept the responsibilities of the office of the Speaker until the next Speaker is elected by the House," he said.

"Moving forward, my goal will be to facilitate the operations of this institution as smoothly and efficiently as possible. I will continue to work closely with our members on the legislation that is important to them and the people of Ohio."

The timing of the vote to determine who will replace Mr. Schuring as speaker could play a key role in determining future leadership of the House. Rep. Ryan Smith (R-Bidwell) and Rep. Larry Householder (R-Glenford) have been pursuing the office, and one of them - or any other member of the GOP caucus - could be elected to the post yet this year.

"I believe the speaker made the right decision for the betterment of the institution and the people of Ohio and I'm sure it was a very difficult decision," Mr. Smith said.

A vote on replacing Mr. Schuring is expected after the May primary.

The House Republican Caucus will also select a successor for Mr. Rosenberger. Beth Ellis of Sabina, who is aligned with Mr. Rosenberger, and Shane Wilkin of Hillsboro have both filed as Republicans in the 91st District. HOUSE REPUBLICANS EXPRESS CONCERNS ON GUN BILL AS KASICH URGES SUPPORT Gov. John Kasich and legislative sponsors of firearm law revisions stressed Tuesday the proposals are not aimed at confiscating guns from law abiding owners.

But some aren't buying that based on questions from Republicans on the House State & Local Government Committee and scoffs from gun owners in the audience during the House bill's first hearing.

The proposal (HB 585) would in part create a process for the issuance of gun violence protection orders, ban the purchasing of firearms for third parties, expand data-sharing between law enforcement databases, and mirror federal law in several firearm-related areas.

Sen. Stephanie Kunze (R-Hilliard) and Sen. John Eklund (R-Chardon) introduced their own legislation to that effect earlier this week (SB 288). Both were modeled after recommendations issued in March by a working group convened by Gov. Kasich.

"HB585 contains sensible changes that can make people safer, from themselves and others," Rep. Henne told the House panel. "It is not the gun. It is the person. HB585 will help make it harder for people who should not possess a gun to get a gun. It does not take away the guns of the responsible gun owners."

Throughout the hearing, Republicans questioned Rep. Henne on how the legislation would work in practice. The committee chair said the bill remains a work in progress.

"After this meeting we'll have some conversations with leadership and see what the plans are," Chairwoman Rep. Marlene Anielski (R-Walton Hills) said in an interview. "But several members brought up issues today that they feel should be addressed in the bill or not addressed. So we just need to talk to members of the committee to see what their feelings are."

Rep. Bill Dean (R-Xenia) likened the proposal to a "sledge hammer and taking everyone's gun rights away."

Statehouse Update

Page | 5

"I totally reject 'taking everybody's guns away,'" Rep. Henne replied. "That is a mischaracterization."

Much of the concern centered on the extreme risk protection order language. Under the legislation, a person could petition the court for the order but must demonstrate facts showing a significant risk and the number and locations of deadly weapons along with establishing "clear and convincing evidence" that a threat exists.

Alternately, if "significant and imminent" harm is expected, an ex parte order can be sought in which law enforcement will remove the firearms and the owner will receive a hearing to respond within 72 hours. If the petition is tossed out, the firearms are to be "immediately" returned, according to the proposal.

Minutes before the committee started, sponsors of the House and Senate bills joined Gov. Kasich for a private Statehouse meeting with Fred Guttenberg, whose 14-year-old daughter, Jamie, was one of 17 people killed during a Valentine's Day shooting at Marjory Stoneman Douglas High School in Parkland, Fla.

"If somebody is emotionally unstable and poses a risk to themselves or others it only stands to reason that through an approach to a court that person would lose their guns," Gov. Kasich said. "That is not a violation of anybody's Second Amendment and not doing it would be a violation of people having clear thinking."

But Rep. John Becker (R-Union Twp.) questioned how that provision doesn't infringe on Second Amendment rights. He imagined a scenario in which a SWAT team kicks down the door, attempts to locate the weapons, and cuts the door off a gun safe. Who, he asked, would pay for that damage?

In those ex parte cases, Rep. Henne said, the firearm owners would wait a maximum of 72 hours for a hearing after which if the judge tosses out the petition the weapons would be returned "immediately." The sponsor did, however, express a willingness to revise the term immediately to be more specific and create language ensuring local department are responsible for damages.

Several lawmakers questioned language vising the definition of those who may not possess firearms to include those who have been convicted of a felony or domestic violence, violated a protective order or were dishonorable discharged from the military.

Rep. Henne expressed a willingness to work with colleagues to refine the bill. He said that recent discussions already revealed to him an oversight that could prohibit non-violent felons from owning weapons, which was not his original intent.

Committee members also questioned why it was necessary for other portions of the legislation that would mirror Ohio law to federal laws including the banning of armor piercing bullets. Several members asked why Ohio officers couldn't enforce those federal laws now.

"To enforce those federal laws they would have to bring in a federal agent," Rep. Henne told Rep. Jim Hoops (R-Napoleon).

Gun advocates attended the committee meeting to show their disapproval - among them a gentleman wearing a shirt featuring a vulgarity regarding gun-free zones. Chairwoman Anielski requested he cover it up after several committee members took offense.

Mr. Guttenberg, speaking to reporters after his meeting with the governor, applauded Gov. Kasich and sponsors for their work on the issue thus far.

"There are bad people in the world who want to do bad things and what the governor and everyone here is trying to do is to make it harder for those people to have access to weapons of war that could be truly devastating," Mr. Guttenberg said.

Sen. Eklund described what he witnessed after the 2012 shooting at Chardon High School that ultimately killed three students and injured others.

"None of you, I dare say, can imagine," Sen. Eklund said of the tragedy. "I saw what it did to that community and I'm here to tell you that reverberation continues in the hearts and minds of the people in my home town."

Statehouse Update

Page | 6

Sen. Kunze, a former school secretary, said lawmakers also have a responsibility to keep teachers and staff safe. "The broader conversation is how do we keep our people safe?" she said.

Asked if he believes enough Republican support exists to pass the legislation, Gov. Kasich said he's "sick and tired" of gun laws being a partisan issue.

"I'm interested in people who are objective and can be rationale as they make decisions about this or any other issue," Gov. Kasich said. "Do I think there are enough people here to pass something? I do. And the legislative schedule means nothing to me. It can always come back. ... So hopefully this can move expeditiously. If it doesn't, if it takes time, fine." NEW PACKAGE OF TELEPHONE REGULATIONS ADVANCES, BUT FAILS TO BRIDGE PARTISAN DIVIDE A regulatory update sought by the telecom industry cleared a House committee Tuesday along party lines, with detractors saying the new version of the legislation doesn't go far enough to protect vulnerable consumers.

Sponsored by Rep. Brian Hill (R-Zanesville), the bill (HB 402) includes several revisions to state oversight of telephone lines, including changes to the Public Utilities Commission of Ohio's rate setting processes and authority.

Industry supporters, including the Ohio Telecom Association, argue that the updates will spur more investments and boost competitiveness among telephone service providers.

Opponents, as they have in prior hearings on the bill, say the easing of regulations will lead to price hikes and potentially the loss of service - especially in rural parts of the state. Testimony delivered to the committee before the vote Tuesday continued along those lines despite the adoption of a substitute version that industry representatives called a result of give-and-take over several months of interested party meetings.

Among other changes, the new version: Limits monthly basic local exchange service rate increases by incumbent local exchange carriers to $2

instead of 20%. Provides for full BLES pricing flexibility after four years with caveats, including demonstrating to the PUCO that

the exchange rate is competitive and the ILEC has experienced a 50% line loss in the area since 2002. Mandates that BLES rate decreases not go below an ILEC's incremental cost. Allows the PUCO to suspend, for good cause shown, the automatic approval of an application of an ILEC to

demonstrate that an exchange area is competitive. Requires the PUCO to approve or deny the application within 90 days after a suspension. Retains BLES service standards in current law. Changes state policy to ensuring the adequacy and reliability of BLES, where available, and the adequacy

and reliability of voice service. Requires the PUCO to produce and docket a report on industry impacts no later than three years after the

effective date of the bill.

Mary Ellen Nose, a paralegal with the Southeastern Ohio Legal Services' Athens Area Office, testified against the measure.

"My concern continues to be for those who are elderly, are low-income or on fixed incomes, as well as for rural Ohioans who live in areas where communications technology available elsewhere has not been made widely available," she told the House Public Utilities Committee. "The bill contains language that does not protect Ohioans in these technological dead zones."

"Until all Ohioans have other adequate, reliable service at a price comparable to what they now pay for basic telephone services, current protections for basic telephone service should be retained," she added.

Written opponent testimony was also submitted by a coalition including the Ohio Consumers' Counsel, Advocates for Basic Legal Equality, Ohio Poverty Law Center, Pro Seniors Inc and HARCATUS Tri-County CAO.

Following Ms. Nose's testimony, the committee broke for private caucus meetings before returning and reporting the substitute version on a 12-7 vote.

Statehouse Update

Page | 7

Rep. Mike Ashford (D-Toledo), the ranking minority party member of the committee, said in an interview after the hearing that his caucus was united against the bill because, despite the changes in the substitute, it would still lead to rate increases and thwart the role of the PUCO as a neutral regulatory body.

"It's an attack on our seniors and low-income people," he said. "It's just a bad bill all around."

OTA President Charles Moses said later the sub bill was the product of extensive discussions and compromise.

"We appreciate the House Public Utilities Committee passing HB402 today," he said. "We will continue to work with all the interested parties as this bill moves through the legislative process."

"Our goal continues to be to modernize the code and incent greater investment in Ohio's telecommunications networks," he added. "This is a reasonable compromise that is a result of many months of negotiations with all of those involved." OPPOSITION TO SMALL CELL WIRELESS BILL SOFTENS FOLLOWING SENATE CHANGES Wireless provider Crown Castle dropped its opposition to legislation to expand small-cell wireless deployment following Tuesday's adoption of substitute language by the Senate Public Utilities Committee.

Crown Castle last month threatened to sue to halt the implementation of the bill, which is a compromise on 5G deployment in public rights-of-way reached following months of talks between wireless providers and municipalities.

The company claimed the legislation - backed by entities including the Ohio Chamber of Commerce, the Mayor's Alliance, the Municipal League and Verizon - would violate the federal Communications Act and limit the ability of it and its competitors to expand their business in Ohio.

The sub bill (HB 478) makes three major changes that were hammered out during recent talks between senators and Crown Castle in an effort to earn support. Those changes include:

Clarifying the definition of a small cell facility operator. Requiring a city to include on the license and on an application a line for the disclosure of who will own the

facility or support structure. Ensuring an organization that does not meet the definition of an operator may still request a municipalities

consent to collocate a small cell facility or build a wireless support structure or alter an already existing one.

Chairman Sen. Bill Beagle (R-Tipp City) said the legislation could be put to a vote as early as Wednesday, teeing it up for potential consideration on the Senate floor later that day.

In an April 9 letter to Senate President Larry Obhof (R-Medina) and Sen. Beagle, Crown Castle government relations manager Paul Gilbert thanked lawmakers for considering their concerns.

"While we feel the final product leaves issues on the table for possible future discussion, the amendments agreed to by the committee and the coalition of municipalities take us farther toward addressing our immediate business concerns," Mr. Gilbert wrote.

Haran Rashes, external relations director for ExteNet Systems Inc., testified that the group's concerns are also resolved thanks to the substitute version.

"With the amendments, Ohio can benefit from infrastructure improvement which are funded and build by private entities such as ExteNet," Mr. Rashes said.

But Dave George, market director for Columbus-based CNX, voiced his continued opposition to the plan. He said the expansion of small cell technology will compromise community aesthetics, increase revenue streams for the industry at the expense of Ohio cities, and result in more abandoned wireless facilities.

He also questioned proponent claims that 5G technology will bypass Ohio for other states without the legislation.

"In their opposition testimony two weeks ago, Crown Castle stated that they had already deployed 910 sites in Ohio," Mr. George said. "Anecdotal evidence from similar providers like Crown Castle is that those companies are also investing in the deployment of small cell locations throughout Ohio. These types of deployments are occurring despite the fact that there is no small cell legislation in current effect in Ohio."

Statehouse Update

Page | 8

Lastly, the committee heard from citizen Kathy Dirr who urged lawmakers to place a moratorium on small cell antennas which she said emit radiation causing cancer and other ill effects. INTRODUCED IN THE HOUSE HB 593 DASHBOARD RECORDINGS (Ramos, D.) To provide that portions of a peace officer's dashboard camera

recordings that show an officer being killed or suffering grievous bodily harm in the line of duty are not public records and generally are confidential and may not be released. Am. 149.43 and to enact section 149.436

HB 594 LOCAL GOVERNMENT PAYMENTS (Ramos, D.) To provide for payments to municipalities or school districts for their lost income tax revenue after a business lays off 50 or more employees within their jurisdiction. Am. 131.46

HOUSE COMMITTEE HEARINGS Public Utilities HB 402 TELEPHONE REGULATION (Hill, B.) To revise state regulation of telephone companies. (REPORTED-SUBSTITUTE

(See separate story); 6th Hearing-All testimony-Possible substitute & vote) Economic Development, Commerce & Labor HB 171

EMS SHIFTS (Patmon, B.) To limit the hours worked in a work shift and to require work breaks for emergency medical service providers. (CONTINUED-SUBSTITUTE; 1st Hearing-Sponsor-Possible substitute)

Rep. Craig Riedel (R-Defiance) successfully offered a substitute version that adds the requirement of an additional driver who is CPR certified and anti-retaliatory language protecting fatigued drivers in the last hour of their shift.

Rep. Bill Patmon (D-Cleveland) said his bill provides for public safety and helps to protect paramedics and EMTs.

"Currently, there is no law in the state of Ohio that provides protections for private ambulance drivers in terms of the number of hours that they are required to work," Rep. Patmon said.

In addition, the bill requires an ambulance operated by a private company to employ and licensed EMT or paramedic and a diver who is at least CPR certified and can assist with patient movement, Rep. Patmon said. Having two individuals in the vehicle will allow them to monitor each other for signs of fatigue and will provide additional patient care.

Rep. Patmon told Rep. Ron Young (R-Leroy) that since 2013, there have been over 2,000 ambulance crashes in Ohio injuring some 400 people.

The bill will prohibit a paramedic for private ambulance companies from working a shift longer than 12 hours with less than a 10-hour rest period in between shifts and provides protections for individuals who are unable to safely complete a shift due to fatigue during the last hour, he told Rep. Thomas West (D-Canton).

Rep. Michele Lepore-Hagan (D-Youngstown) asked if capping the amount of hours that can be worked would require companies to hire more employees.

Rep. Patmon said it would but the requirement that an additional driver be at least CPR certified was a made in response to the concern over the cost of paying two EMTs for each emergency run. State & Local Government HB 500 TOWNSHIP LAWS (Carfagna, R.) To make various changes to township law. (CONTINUED-AMENDED; 4th

Hearing-All testimony-Possible amendments) Rep. Rick Carfagna (R-Westerville) put forth two amendments that were accepted by the committee. The first narrows the legislation to apply only to limited home rule townships - a move that applies the bill to only 32 townships rather than the prior 1,308 townships.

The second change was requested by the Ohio Fire Chiefs Association and removes language that had required townships to designate legal counsel rather than a private citizen to investigate fire chief conduct and removal proceedings.

Statehouse Update

Page | 9

"We feel there is a broader issue that perhaps could be addressed through separate legislation," Rep. Carfagna said of the latter change. "We are willing to remove this provision from the bill altogether from the bill and hopefully resume discussions about it probably not this General Assembly but maybe in the coming year."

Adam Schwiebert, policy analyst for the County Commissioners Association of Ohio, expressed mixed opinions of the legislation. He praised the amendment narrowing the scope of the proposal to limited home rule townships.

"To further strengthen the provision, additional language should be considered to require an (American Institute of Certified Planners)-certified planner to be on staff or under contract for those limited home rule townships that choose to not utilize their local zoning commission," he said. "AICP certification is the only nationwide, independent verification of planners' qualifications."

But he said his association opposes a provision relating to township road vacation and he urged counties be granted some of the same abilities the legislation currently grants to townships including: levying a countywide admissions tax and offering a single property tax for capital expenses for most public safety and infrastructure projects.

Representatives of the Milan Township, Vermillion Township and Liberty Township trustees submitted written proponent testimony. HB 530 LODGING TAX (Hambley, S., Arndt, S.) To authorize local elected officers that have levied a hotel lodging

excise tax, or a designee of such officers to simultaneously hold the position of officer or member of the board of trustees of a convention and visitors' bureau without constituting incompatible offices. (CONTINUED; 3rd Hearing-All testimony-Possible amendments)

Larry Fletcher, president of Lake Erie Shores and Islands, said questions over whether a county commissioner may serve on a county visitor bureau board of trustees results in a "disconnect" and deprives those boards of needed experience. The law currently does not expressly state those two positions are compatible, he said.

He said a commissioner has served as a voting board member of the Ottawa County Visitors Bureau since 2007, and the arrangement was "extremely positive." He said he counts only a handful of times in which those members had to recuse themselves from a vote due to their dual roles.

"House Bill 530 as submitted provides a means for those who have benefitted from commissioner involvement on their boards to continue doing so and opens the door for other counties to follow suit," he said. "And it provides for counties that choose not to entertain this option to enact a more restrictive policy."

Rep. John Becker (R-Union Twp.) questioned whether there is a reason county visitor bureaus are not held to the same standard as public entities under public records and sunshine laws. Mr. Fletcher replied that in most cases those entities are operating as non-profits.

Would the witness be amenable to expanding those laws to cover those boards? Rep. Becker asked.

"We make our financial records and our minutes (public) and anybody is welcome to come to a meeting," Mr. Fletcher replied. "I would not necessarily oppose that." HB 585 FIREARM LAWS (Henne, M.) To expand the definition of dangerous ordnance to include armor piercing

ammunition and expand the definition of an automatic firearm to include any device within the federal definition of machine gun; to create additional conditions under which an individual may not possess a firearm or dangerous ordnance and to eliminate the process by which an individual may apply for relief from a weapons disability; to generally prohibit a person from buying, purchasing, obtaining, or furnishing a firearm on behalf of a third party; to provide for the entry of protection orders into the federal NCIC database and LEADS; and to provide for the issuance by a court of an extreme risk protection order. (CONTINUED (See separate story) (Earlier referred to State & Local Government); 1st Hearing-Pending referral)

Government Accountability & Oversight HB 342 TAX LEVIES (Merrin, D.) To permit local tax-related proposals to appear only on general and primary

election ballots and not on an August special election ballot and to modify the information conveyed in election notices and ballot language for property tax levies. (CONTINUED (No testimony); 5th Hearing-All testimony-Possible amendments & vote)

Statehouse Update

Page | 10

Chairman Rep. Louis Blessing (R-Cincinnati) said he and the sponsor have had discussions with interested parties and will hold off on a vote or any amendments to the measure. The committee did not hear testimony, but school board and local school administration groups previously submitted comments saying the measure would undermine their ability to pass levies. SB 79 AGENCY REVIEWS (Jordan, K.) To require standing committees of the General Assembly to establish a

schedule for the periodic review of state departments that are currently in the Governor's cabinet, and to require that Auditor of State performance audits be scheduled to coincide with the periodic review. (CONTINUED; 1st Hearing-Sponsor)

Sponsor Sen. Kris Jordan (R-Ostrander) said in written testimony the proposal and its companion bill (HB 51) would allow the legislature to review 24 executive agencies every four years to ensure they remain confined to their intended scope and role.

It would allow lawmakers to consider if the public is being served in the most effective manner, if the agency's functions are unnecessarily redundant, and allow more questions on the necessity of occupational licensure if the agency is involved in that, he said. The proposal aligns the biennial performance audits conducted by the state auditor with the legislative review process, he said.

"It should come as a surprise to nobody that government rules and policies, even those with good intentions at their root, will more often than not grow beyond their intended scope," he said. "A bloated government does not serve as a safeguard to the public but as a barrier to innovation, economic growth, and the liberties of Ohioans." SENATE COMMITTEE HEARINGS Energy & Natural Resources HB 225 OIL GAS WELLS (Thompson, A.) To modify the law governing idle and orphaned oil and gas wells.

(SCHEDULED BUT NOT HEARD; 3rd Hearing-All testimony-Possible amendments & vote) Public Utilities HB 422 WATER SEWER ACQUISITIONS (Ginter, T., Rogers, J.) To govern acquisitions of municipal water-works and

sewage disposal system companies by certain larger nonmunicipal water-works or sewage disposal system companies. (CONTINUED; 1st Hearing-Sponsor)

Sponsors told the committee their plan presents an "out of the box" approach to address the lack of funding for municipal water infrastructure investment.

"Currently, the American Society of Civil Engineers estimates that Ohio will require more than $12 billion to be invested in water system and more than $14 billion in wastewater system infrastructure over the next 20 years and most communities struggle to fund this investment," Rep. Tim Ginter (R-Salem) said.

In response, he and Rep. John Rogers (D-Mentor-on-the-Lake) are putting forth their legislation to encourage large private sector utilities to support infrastructure replacements and improvements. The legislation in part is meant to more accurately determine property values for municipal water-works and sewage disposal systems, which sponsors said has up until this point served as a "roadblock" for such partnerships.

"Together, we see this approach as a means of providing heightened operational and financial expertise with access to capital resources while ensuring more stringent regulatory compliance," Rep. Rogers said. "The long term intent is to provide a more sustainable service with reliable plant operations, while protecting our water supplies for consumers."

Similar proposals have passed in Indiana, Pennsylvania, Illinois and several other states, the sponsors said. HB 478 WIRELESS SERVICES (Smith, R., LaTourette, S.) To modify the law regarding wireless service and the

placement of small cell wireless facilities in the public way. (SUBSTITUTE (See separate story); 4th Hearing-All testimony-Possible amendments)

Wednesday, April 11, 2018 VOTING MACHINE FUNDING ONE OF MORE THAN A DOZEN BILLS SENATE APPROVES Ohio's 88 counties on Wednesday got one step closer to receiving aid to replace their aging voting equipment ahead of the next presidential election cycle. A bill (SB 135) to appropriate $114.5 million to finance new voting machines was one of more than a dozen to clear the Senate in one of the few session days remaining before lawmakers break for the summer.

Statehouse Update

Page | 11

It was approved in a 32-1 vote, with Sen. Kris Jordan (R-Ostrander) casting the only vote in opposition.

Sponsoring Sen. Frank LaRose (R-Hudson), a candidate to replace Secretary of State Jon Husted, said some counties are using voting machines that are up to 15 years old. "They have outlived their useful lives," he said.

During his travels around the state, he has witnessed elections officials resort to "creative solutions" to make the aging equipment work, Sen. LaRose said. "They are on their last legs."

Mr. Husted in a statement applauded the passage of the bill, calling Ohio "a national leader in elections administration because we focus on making our state a place where it's easy to vote and hard to cheat."

"To maintain that status, we must continue to modernize by investing in innovation and that means replacing our voting machines," he added. "Today's overwhelming bipartisan vote in the Ohio Senate moves us closer to that goal."

The County Commissioners Association of Ohio and the Ohio Association of Election officials also welcomed the bill's passage.

"Ohio's 88 counties serve as agents of the state and administering elections in our 88 boards of elections offices is a crucial part of that role," Lake County Commissioner Daniel Troy said. "The Senate's decision to address this election administration infrastructure issue is in the best interest of our democracy, and I hope it is the beginning to a stronger partnership between state and county governments."

A measure (HB 478) to expand small-cell wireless deployment received the most opposition of the more than a dozen bills on the floor. Still, it was approved in a 26-7 vote.

Sen. Bill Beagle (R-Tipp City) said it is essential to help expand the deployment of 5G technology across Ohio. "Our job creators want 5G, so this is about economic development," he said.

The small-cell wireless measure was reported from the Senate Public Utilities Committee earlier in the day with no discussion. Sen. Williams cast the sole dissenting vote.

In unanimous votes member also approved a bill (SB 239) to modify laws related to regional councils of government - or COGs - in the areas of transparency, conflicts of interest and reporting to the auditor of state. INDUSTRY VOICES SUPPORT FOR MANUFACTURING, PACKAGING TAX BREAKS Manufacturing and business groups spoke up in defense of tax breaks on items used to manufacture and package tangible personal property during a Tax Expenditure Review Committee meeting Wednesday.

It was the group's second meeting as members begin a deeper dive into the $9 billion-plus a year in tax credits and exemptions currently residing in Ohio Revised Code. The hearing followed a broad overview provided by Tax Commissioner Joe Testa during the group's inaugural meeting in October.

Five specific tax breaks were up for discussion at the meeting, but testimony was only submitted to exemptions for primarily in the manufacturing of tangible personal property and for packaging tangible personal property.

The Ohio Manufacturers' Association, the Manufacturers Policy Alliance and the Ohio Chamber of Commerce argued that repeal of those provisions would render Ohio unable to compete with other states and drive up the cost of goods.

"The manufacturing exemption is founded on sound tax and economic policy," said Rob Brundrett, the OMA's director of public policy services. "Applying the taxes to transactions involving the investment in manufacturing machinery and equipment increases the costs of the goods that are produced, negatively impacts economic decisions, and may place Ohio at a disadvantage when it comes to economic development. This isn't good policy."

The manufacturing exemption is the largest tax break in the administration's Tax Expenditure Report and led to estimated deferred revenue from the General Revenue Fund totaling $2.210 billion and $2.299 billion respectively in FY 2018 and FY 2019, according to an analysis compiled by the Legislative Service Commission for the committee.

Statehouse Update

Page | 12

The packaging exemption, meanwhile, led to GRF losses of $255 million and $264 million during those respective fiscal years. Both exemptions led to additional losses for counties and transit authorities.

Other tax breaks on the committee's agenda received no testimony and no discussion, including exemptions on: Sales to churches and certain other nonprofits, which is expected to lead to GRF losses of $614 million and

county and transit authority losses of $150 million in FY 2019. Sales to the state and any of its political subdivisions (with losses of $122 million and $30 million respectively). Sales by churches and certain non-profits (losses of $47 million and $11 million respectively).

Regarding the manufacturing and packaging credits, Thomas Zaino, representing the alliance, predicted "devastatingly negative" effects if the exemptions to be scrapped. He said the exemptions "go a long way" to helping curb double taxation and are successful in fostering competitiveness.

"If Ohio were to 'disarm' and eliminate or narrow these two exemptions, it would place Ohio at a competitive disadvantage to most states and further deteriorate our competitiveness with other parts of the world," he said.

He also suggested the committee recommend the Department of Taxation conduct a broader dialogue with stakeholders to potentially streamline the 35-page rule - an idea Commissioner Testa seconded.

"I do appreciate your suggestion a deeper dive be taken," Mr. Testa told Mr. Zaino, a former Ohio tax commissioner. "If we could make it more manageable for business and government it would be a significant achievement."

Rep. Tim Schaffer (R-Lancaster) questioned Mr. Brundrett on the effect the tax has in states without the exemption.

Mr. Brundrett replied there are a handful of states in which those exemptions do not exist - including Hawaii, New Mexico, Nevada and South Dakota - but they are low manufacturing states. The Ohio Council of Retail Merchants submitted written testimony urging the packaging exemption be maintained.

In general testimony delivered at the meeting, Policy Matters Ohio Senior Project Director Wendy Patton urged members to seek more information from ODT on the number of entities taking advantage of these and other tax breaks. And should lawmakers desire to expand existing exemptions, she said, they should proceed with caution.

"Beyond a review of specific tax expenditures, the tax expenditure review committee should look to cut back on tax breaks," she said.

The group will listen with an "open mind" to any requests to expand breaks, she said, but "we suggest that before making such recommendations, you weigh carefully if this is the best purpose that Ohio's tax dollars can be put toward given the challenges that the state faces."

The Buckeye Institute, meanwhile, this week identified $1.8 billion in tax breaks it argues should be eliminated. Specifically, the institute singled out 20 tax breaks for consideration, including credits for motion pictures, political campaign contributions, job retention and creation, and purchases of corporate jet shares.

"Ohio has made progress in recent years to improve the state's tax system. Yet, more can be done to build on that success and to further strengthen Ohio's job creation climate," said Greg Lawson, research fellow for the institute.

"That is why the work of the Tax Expenditure Review Committee is so important," he continued. "By closing the loopholes we have identified, policymakers will be able use those savings to lower tax rates to keep Ohio's economy growing."

The committee has already announced two more meetings, the next of which will take place April 25. INSURANCE INDUSTRY WANTS VOICE IN DISCUSSION OF AUTONOMOUS CARS A group of officials representing insurance companies and industry trade groups asked the legislature Wednesday for a seat at the table as the state plans for the proliferation of autonomous cars and related technology.

The requests came as the House Transportation and Public Safety Committee continued hearings on the technological developments and featured witnesses from Nationwide, State Farm and multiple trade groups to discuss the future of self-driving cars and driver-assistance systems in the state.

Statehouse Update

Page | 13

Rep. Doug Green (R-Mt. Orab), the committee's chairman, said he hopes the discussion helps encourage conversations between the insurance industry and automobile manufactures ahead of any possible legislation.

David Braun, a vice president at Nationwide, asked for officials from his industry to be included in any statewide decision-making process regarding autonomous vehicles.

"Should Ohio move forward with the introduction of any legislation or the creation of a task force, we ask for representation of the insurance industry to help gather information and provide policy recommendations," he said.

Ryan Gammelgard, counsel for State Farm, said his firm also wants a seat at the table for discussions of autonomous vehicles. He said State Farm officials see the availability of information from self-driving cars to insurance companies as a concern that may need to be addressed by future legislation.

"Data access helps determine liability. Who is actually at fault?" he said. "We're now removing key witnesses from this equation."

Robert Passmore, assistant vice president of the Property Casualty Insurers Association of America, said he does not think developments regarding autonomous cars, automated brakes and related technology will require the state to create an entirely new regulatory framework.

"While there are challenges in adapting to the increasing automation of the driving function for policy makers and auto insurers, we believe that our insurance and legal systems can adapt to ensure that potential benefits are realized and maintaining existing state primacy over insurance and liability determination if there is reasonable access for insurers to vehicle data and information," he said.

Mr. Green asked the panel how the state could make sure insurance companies and law-enforcement agencies get needed data from crashes involving vehicles with automated components.

"(That's) definitely something that needs to be addressed at the federal level," Mr. Gammelgard said.

Rep. Thomas West (D-Canton) asked what might become of the state's point system for driving infractions if autonomous vehicles become more common.

Mr. Passmore said questions remain about whether an automated system can be considered a driver under the law.

Mr. Braun said liability potentially could shift to vehicle owners, be it an individual or a company, if poor maintenance plays a role in a crash involving a driverless vehicle.

Mr. West asked the panel whether driver-assistance systems and autonomous cars could reduce insurance rates for drivers by reducing the number of crashes.

Kelsey Brunette, an ideation analyst with Munich Reinsurance America, said there is not enough data to accurately predict the effect the proliferation of such vehicle will have on premiums.

"We will look at the performance of the technology and price accordingly," she said. PASSED IN THE HOUSE HB 378 BROADBAND GRANTS (Smith, R., Cera, J.) To create the Ohio Broadband Development Grant Program, to

encourage the Department of Transportation to work with telecommunications providers to lay fiber optic cable, and to make an appropriation. 85-11

HOUSE CONCURS IN SENATE AMENDMENTS HB 478 WIRELESS SERVICES (Smith, R., LaTourette, S.) To modify the law regarding wireless service and the

placement of small cell wireless facilities in the public way. 68-15

RESIGNATION ACCEPTED Rep. Cliff Rosenberger, Republican, Clarksville, from the 91st District effective 11:59 pm on April 30, 2018 HOUSE COMMITTEE HEARINGS Insurance

Statehouse Update

Page | 14

HB 459 WORKERS' COMPENSATION (Henne, M.) To allow groups of employers to be granted status as a self-insuring employer for purposes of the Workers' Compensation Law. (CONTINUED; 2nd Hearing-Proponent)

Tim Linville, CEO of the Construction Employers Association of Cleveland, spoke in support on behalf of the group's 130 contractor members, which he said employ 8,000 personnel in northeast Ohio.

"Larger employers have enjoyed the advantages of self-insurance for almost as long as workers' compensation has existed in Ohio," he said. As a result, self-insurance is a "significant advantage" for those employers for reasons that include: cost stabilization; claims control; improved services to injured workers; industry-specific loss control; cash conservation; and the ability to limit cash flow by accepting predictable loss.

"Ohio is clearly in the overwhelming minority as 40 states recognize some form of group self-insurance for workers' compensation," Mr. Linville said. "The experience of 40 other states has shown that by allowing employers to group together, groups can achieve the same characteristics and successes realized by larger self-insured employers."

Responding to questions from the sponsor, Mr. Linville said the inability to self-insure puts smaller companies at a competitive disadvantage to out-of-state and larger operations due to lower costs and other factors. He said the bill allows the BWC administrator to structure the system to mitigate risks.

Some Democrats on the panel expressed skepticism with the proposal.

"I'm trying to wrap my arms around this legislation and why it's necessary," said Rep. John Boccieri (D-Alliance), who added that the BWC insurance fund is "very solvent."

Mr. Linville said the disadvantages faced by smaller companies that can't currently self-insure extends beyond general costs to employers. One claim can impact a company's experience and result in higher rates, whereas group self-insurance allows for plans to be structured so rates aren't impacted as much by small claims.

Regarding the BWC's currently strong fund position, he added that it isn't always the case that there are significant reserves that lead to "give-backs" to employers.

Mr. Linville characterized the proposal as "a tool that would allow us to be more effective for our clients."

Rep. George Lang (R-West Chester Twp.) suggested that the real savings under the bill would be administrative, which make up a relatively small amount of workers' compensation coverage costs. The witness said the proposal would also provide more certainty in planning for group members, adding that companies cannot count on "give-backs" by the BWC.

Answering Rep. Glenn Holmes' (D-McDonald) question about employee impacts, Mr. Linville said the group self-insuring concept would be most beneficial to fairly finite groups of employees and employers such as the construction industry, because employees not likely to "leave that universe." Civil Justice HB 419 EMERGENCY LIABILITY (Henne, M.) To modify the defense to the liability of a member of a police or fire

department or emergency medical service of a political subdivision for the negligent operation of a motor vehicle in response to an emergency by requiring that the vehicle has its lights and sirens simultaneously activated. (CONTINUED (No testimony); 3rd Hearing-All testimony-Possible amendments & vote)

PASSED IN THE SENATE HB 122 ECONOMIC DEVELOPMENT (Hambley, S., Rogers, J.) To establish a Regional Economic Development

Alliance Study Committee to study the benefits and challenges involved in creating regional economic development alliances. 32-0 (LaRose recused; Earlier REPORTED-AMENDED)

HB 251 SUBDIVISION INVESTMENTS (Greenspan, D.) To increase from five to ten years the maturity period of other political subdivision's bonds and obligations eligible for investment of a subdivision's interim moneys, a county's inactive moneys, and money in the county public library fund. 33-0

HB 478 WIRELESS SERVICES (Smith, R., LaTourette, S.) To modify the law regarding wireless service and the placement of small cell wireless facilities in the public way. 26-7 (Earlier REPORTED (No testimony)

SENATE COMMITTEE HEARINGS

Statehouse Update

Page | 15

Public Utilities HB 478 WIRELESS SERVICES (Smith, R., LaTourette, S.) To modify the law regarding wireless service and the

placement of small cell wireless facilities in the public way. (REPORTED (No testimony) (See separate story); 5th Hearing-All testimony-Possible amendments & vote)

Government Oversight & Reform HB 122 ECONOMIC DEVELOPMENT (Hambley, S., Rogers, J.) To establish a Regional Economic Development

Alliance Study Committee to study the benefits and challenges involved in creating regional economic development alliances. (32-0 (LaRose recused; Earlier REPORTED-AMENDED); 4th Hearing-All testimony-Possible amendments & vote)

Before hearing testimony, several amendments offered by Sen. Joe Uecker (R-Loveland) were accepted, including one to add five non-voting members to the commission, he said.

Former Hudson Mayor Bill Currin said collaboration among metropolitan areas has shown to be beneficial.

The bill creates no obligations for local governments, he said. "Action taken past the study would require different legislation."

In written proponent testimony, Jennifer Price, executive director of the Ohio Economic Development Association, said the formation of the Regional Economic Development Study Committee "will bring together the legislature, the governor's office, academia, and leaders in the economic development industry to investigate the benefits of creating metropolitan economic development alliances."

"OEDA is uniquely situated to support the work of the Regional Economic Development Alliance Study Committee based on OEDA's members' broad geographic reach," she wrote. "OEDA members are on the front lines of economic development. OEDA looks forward to participating on the Study Committee as an ex officio member to provide the benefit of its members' experience in this industry." SB 239 REGIONAL GOVERNMENT COUNCILS (Dolan, M.) To modify the law concerning regional councils of

governments. (REPORTED (No testimony); 6th Hearing-All testimony-Possible amendments & vote) SB 268 THEFT IN OFFICE (Wilson, S.) To expand the increased penalties for theft in office based on the amount of

property or services stolen and to include as restitution certain audit costs of the entity that suffered the loss involved in the offense. (CONTINUED; 1st Hearing-Sponsor)

Sen. Steve Wilson (R-Maineville) said the disparity between penalties for theft and theft in office "fails to hold corrupt public officials who steal from taxpayers to the highest degree of accountability and must be addressed."

"Since 2010, roughly 135 former public officials have been convicted for stealing taxpayer money. The most common charge these individuals face is theft in office," he said. "Currently, theft in office penalties are capped at a third-degree felony for all amounts of loss greater than $7,500. Therefore under current law, cases of theft in office over $1 million are only able to be prosecuted as an F-3 whereas a theft offense could be prosecuted as an F-2 or an F-1."

In response to a question from Sen. Edna Brown (D-Toledo) about how Ohio compares with other states in this regard, Sen. Wilson said the state is an outlier when it comes to theft in office. Thursday, April 12, 2018 ROSENBERGER ACCELERATES RESIGNATION, LEAVING POST IMMEDIATELY Facing calls to leave office immediately rather than wait until May 1, Cliff Rosenberger officially resigned his seat and exited the General Assembly on Thursday.

The former House speaker, who appears to be a target in an inquiry by the FBI, initially said he would resign his 91st District seat effective May 1.

But many officials - Democrats and Republicans alike - said he should leave office immediately.

Rep. Kirk Schuring (R-Canton), who will oversee the House as Speaker Pro Tem, felt the immediate resignation was in the chamber's best interest, House GOP spokesman Brad Miller said.

"Rep. Schuring's top priority is to ensure a smooth transition and to finish off the first half of the session calendar with a focus on passing important, meaningful legislation to help the people of Ohio," he added. "That process began with Rep. Schuring presiding over yesterday's busy voting session."

Statehouse Update

Page | 16

"After now having time to fully assess the responsibilities of the office of Speaker, address the operational aspects of the Ohio House, and resolve questions regarding who has the appropriate decision-making authority, Rep. Schuring felt it was in the best interest of the institution that Cliff Rosenberger resign effective immediately," Mr. Miller added.

Mr. Rosenberger's earlier-than-expected resignation could also set the stage for the House Republican Caucus to select a successor to Mr. Rosenberger, perhaps as soon as next week.

Ohio Democratic Party Chairman David Pepper said Mr. Rosenberger should have left office right away. "It was obvious that this should've happened at the beginning of the week, when Rosenberger announced he was planning to hang on for a few more weeks, and it's incredible that it took this long - and that the Republican caucus considered pushing through legislation related to the very industry at the heart of the scandal.

Reports have indicated that discussions on legislation regarding the short-term loan industry could have played a part in Mr. Rosenberger's resignation. SPONSOR, ADVOCATES CONTINUE PRESSING FOR WIND SETBACK CHANGE Wind energy advocates and their allies in the legislature are renewing calls for lawmakers to pass legislation that would rework the state's turbine setbacks.

Their urging comes as Senate Republicans continue discussions over a potential substitute bill that might add a wind setback revision to existing legislation that would water down the states' renewable and energy efficiency requirements (HB 114).

Sen. Matt Dolan and Rep. Bill Reineke appeared at a Statehouse press conference Wednesday to highlight the senator's legislation (SB 238) to walk back restrictions added at the last minute to an omnibus bill in 2014. Critics say that move crippled wind development in the state.

The press event showcased a new report from the Wind Energy Foundation and A Renewable America that contrasts counties with and without wind development. The report estimates existing wind projects will deliver $54 million in payments to Ohio's rural communities by year's end through payments in lieu of taxes and land lease payments.

Representatives from Seneca and Sandusky counties, who say they're unable to move forward with wind projects under the current setback, voiced their envy of their counterparts in Paulding County who have existing wind farms. They described it as a tale of "haves" and the "have nots" and said those dollars can fund public services and school programming.

Sen. Dolan (R-Chagrin Falls) said the legislation would help not only wind-rich counties, but also other regions that could benefit from conducting maintenance, delivery, installation and other work on the turbines.

"In Ohio we enjoy 61 different companies throughout the state that are involved in the wind industry," Sen. Dolan said. "So this is in fact an Ohio bill. This is in fact improving Ohio's economy."

Rep. Reineke (R-Tiffin) said he looks forward to shepherding the legislation once it reaches the House.

"The people of Seneca and Sandusky counties - and potentially other Ohio counties in the future - stand to miss out on significant benefits unless we adopt a commonsense measure to fix our state's current property setback law for wind development," he said.

The Senate plan has received one hearing before the Senate Energy & Natural Resources Committee, although a nearly identical bill (SB 188) received several prior hearings last year before being scrapped following the abrupt resignation of chief sponsor and former Sen. Cliff Hite.

The Dolan bill, though, hasn't been heard since January as Sen. Troy Balderson (R-Zanesville) and Sen. Bill Beagle (R-Tipp City) - chairmen of the Senate energy and public utilities committees - continue efforts to hammer out a substitute version of the controversial HB114.

In addition to the standards language, that substitute bill is expected to roll in wind setback provisions in some form. The pair made their presentation to the caucus on the direction they'd like to take late last month but no consensus has been reached.

Statehouse Update

Page | 17

Sens. Balderson and Beagle said in interviews this week they had made no progress on the matter during the recent two-week legislative break but Senate President Larry Obhof on Wednesday predicted a sub bill would be ready "in the next few weeks."

Sen. Dolan said he expects that if wind setback language ends up in HB114 it will be substantively similar to his proposal. Meanwhile, he said he's confident the setback proposal will pass in some form, especially since the Senate already voted to support such language during the last budget (HB 64).

In that case, the House objected and the language was removed during conference committee with House leaders saying the budget wasn't the appropriate place to have the discussion.

"I'm confident we're going to move wind," Sen. Dolan said in an interview. "We already voted for it. Now it's a question of what vehicle is going to come back (to the House)."

Rep. Reineke said he's working on educating and assuaging potential concerns among his House colleagues. Some House Republicans have questioned whether loosening the setbacks might negatively impact property owners and have even floated the idea of increasing the setbacks.

"We're working very hard on that," Rep. Reineke said. "In my district we have wind as a resource and some districts don't so we're trying to sell that issue that we have that resource and we should be able to use that as we see fit in that district." JUDGE BLASTS OEPA, U.S. EPA FOR HANDLING OF LAKE ERIE IMPAIRMENT STATUS A federal judge is accusing the Ohio Environmental Protection Agency of ignoring its duties under the Clean Water Act in recent years by declining to declare Lake Erie's waters impaired.

U.S. District Judge James Carr's order also gives the U.S. Environmental Protection Agency 30 days to reconsider its acceptance of the OEPA's 2016 report determining Lake Erie was not impaired under the federal law.

The ruling, issued late Wednesday in the U.S. District Court's Northern District of Ohio, is tied to an ongoing lawsuit filed by environmental advocates, the Environmental Law and Policy Center and Advocates for a Clean Lake Erie, against the U.S. EPA.

Although the OEPA isn't a defendant in the case, Judge Carr's order included plenty of scathing commentary on the agency's handling of the situation over recent years.

He accused the state agency of "playing a game of administrative pushball" and generally sided with environmental advocates who sued in 2017 alleging the state and federal governments failed to adequately assess the extent of phosphorus in the lake's western basin.

"Ohio EPA has routinely failed to assess Lake Erie's open waters - those 'beyond the shoreline and drinking water intake' areas and site of the recurring toxic algae bloom," the judge wrote.

"Ohio's persistent failures came to a head in 2016," he continued. "That year, in its report to the U.S. EPA, the Ohio EPA explicitly refused to 'assemble and evaluate all existing and readily available water quality-related data and information' concerning Lake Erie's open waters."

OEPA spokesman James Lee said the agency is still reviewing the court's decision. He also referred to the OEPA's 2018 draft report released in March in which the agency announced it will for the first time declare the lake's western basin impaired.

OEPA Director Craig Butler said at the time the agency "remains committed to our obligations under the Clean Water Act and to examine emerging science and practices that we can put in place to help improve it."

But Judge Carr agreed with environmental groups that the OEPA should have done more to assess the lake instead of "compounding inaction with inaction."

Regarding the federal EPA, the judge accused federal regulators of failing to hold the state accountable when it repeatedly failed to redo its 2012 and 2014 reports so they fully complied with the Clean Water Act.

Statehouse Update

Page | 18

"Doing so, the U.S. EPA also gave the Ohio EPA both the opportunity and a mandate to cure those deficiencies and otherwise fulfill its CWA obligations," Judge Carr wrote. "Yet in the years that followed, Ohio ignored that opportunity and its duties."

He also blasted the U.S. EPA for withdrawing its prior approval of the state's 2016 report during the course of litigation - a legal maneuver that the judge said prevents him from issuing a final ruling on the case due to a lack of a final appealable order.

"As the (U.S. EPA) well knew, by withdrawing its approval, there is no final agency action subject to judicial review under the APA, which prevents me from adjudicating the merits of the plaintiffs' motion for summary judgment," the judge wrote.

Instead, he remanded the issue to the U.S. EPA and gave the agency a 30 day deadline to approve or disapprove the state's 2016 impaired waters list.

Lastly, the judge faulted the U.S. EPA for failing to adequately notify the court or plaintiffs that it was withdrawing approval of the 2016 plan - a failure that "amplifies the whiff of bad faith arising from the timing of its inexplicably delayed notice to plaintiffs' counsel," he wrote.

Howard Learner, executive director of plaintiff ELPC, applauded the ruling.

"The court agreed with our legal position that U.S. EPA and Ohio EPA have improperly dragged their feet for years instead of stepping up to take prompt and necessary actions to protect Lake Erie from toxic algae blooms," Mr. Learner said. "The judge's decision requires the U.S. EPA and Ohio EPA to issue strong standards to prevent pollution from agricultural runoff in order to avoid toxic algae blooms and protects safe clean drinking water in Lake Erie for people in the Toledo area." AGENCY BRIEFS: NALOXONE REBATE EXTENDED; BWC AWARDS GRANTS A state rebate agreement that has saved state and local agencies more than $730,000 on the cost of naloxone has been extended another year, Attorney General Mike DeWine announced Thursday.

The agreement with Amphastar Pharmaceuticals, Inc., will let non-federal public entities in the state receive a $6 rebate for each naloxone syringe purchased through March 2019.

The rebate saved 127 agencies a total of $732,384 on naloxone purchases from March 2015 to December 2017, according to the AG's office.

"This rebate has had a major impact on the cost associated with using naloxone to save lives," Attorney General DeWine said in a statement. "Those battling addiction deserve the chance to recover, and by securing this rebate for Ohio, agencies have saved hundreds of thousands of dollars off of the normal price for this drug."

The AG's office said the rebate amount will increase if the company raises the wholesale price of naloxone during the terms of the agreement.

Eligible agencies include state agencies, law enforcement, fire departments, emergency medical services, county health departments, Project DAWN programs and other county or local government entities.

Workers' Compensation: The BWC announced two sets of grants this week, one totaling more than $1.5 million for 73 employers in 40 counties, and another for nearly $370,000 for 37 fire departments.

The first set of grants are designed to help employers buy equipment designed to reduce or eliminate workplace injuries and illness. The recipients will receive funding to match their investment three-to-one, up to $40,000, per the BWC.

"Workers are employers' most important asset, and preventing accidents can keep them healthy and productive," Administrator/CEO Sarah Morrison said in a statement. "Employers investing in safety should consider applying for a safety grant and making use of the many BWC services that can help reduce claims and lower costs."

Statehouse Update

Page | 19

The grants for fire departments are intended to help the agencies buy safety gear, exhaust systems and specialized washing machines as part of an effort to reduce residue that can cause respiratory disease, cancer and other conditions.

The program was originally funded at $2 million per year, but the BWC announced last month it would more than double the funding due to increased demand.

"The fire community's tremendous response to this program shows they understand the importance of equipping every firefighter with the appropriate protective gear," Administrator Morrison said. "BWC is pleased to be part of the effort to increase awareness while funding equipment that can limit serious health consequences down the road." Friday, April 13, 2018 SMITH 'CONFIDENT' HE HAS SUPPORT TO WIN SPEAKERSHIP, BUT NO VOTE SCHEDULED YET; OHROC CONTROL SHIFTS It remained unclear Friday when House Republicans will choose a new speaker, but one hopeful for the office is confident he'll win the chair when the vote happens.

Rep. Ryan Smith (R-Bidwell), the chairman of the House Finance Committee who had been campaigning to win the position next session, said in an interview he has the support of a majority of the caucus.

"I'm confident I have the votes when the vote gets called," he said Friday.

Cliff Rosenberger's resignation as speaker this week amid an FBI probe accelerated what had been a heated bid to succeed him between Rep. Smith and former speaker Rep. Larry Householder (R-Glenford).

Mr. Householder could not be reached for comment before deadline Friday, while other lawmakers are also expected to make a play to serve as speaker for the remainder of the year.

Rep. Kirk Schuring (R-Canton), the term-limited speaker pro tem, assumed the speaker's duties after Mr. Rosenberger announced Tuesday night he would resign. Originally expected to resign May 1, Mr. Rosenberger announced late Thursday he was departing immediately at the urging of members of both parties.

Rep. Smith said he didn't know when the caucus would vote on a new speaker, referring questions to Rep. Schuring, who is the dean of the caucus and who would therefore call the election.

There have been suggestions that the leadership vote could come as early as next week, but Brad Miller, spokesman for the Ohio House Republican Caucus, squashed those rumors.

"There has been no indication or no plan of holding a speaker's vote next week at all," Mr. Miller said. "At this point, Rep. Schuring is still kind of assessing the new duties he has now."

Rep. Schuring on Wednesday said the caucus would come up with a game plan after Mr. Rosenberger's resignation was official May 1. But Mr. Miller said it's too soon to determine how Mr. Rosenberger accelerating his departure will affect the timeline for a vote.

"Rep. Schuring definitely wants to engage the caucus on this, and I think he's in the process of doing that and obviously members can reach out to him," Mr. Miller said. "But I think it's too early to tell definitely at this point when that would happen."

Maneuvering to win the chair next session started last year, with the two hopefuls lining up candidates in primary races around the state to secure a majority of the Republican caucus.

Rep. Brigid Kelly (D-Cincinnati), a leader in the minority caucus, said Friday that the former speaker's accelerated resignation arises more questions.

"We are hopeful his expedited resignation helps us all get back to work on behalf of the taxpayers sooner, but the truth is, it also creates new questions about how the outside influence of political party pressure during an election year may be dictating the terms, conditions and deadlines of the people's work in the legislature," she said in a statement.

Statehouse Update

Page | 20

"The former speaker was right - allegations of public corruption and breach of the public's trust is bigger than one person," she continued. "That is why, even though one person has resigned, we are concerned that the impact and scope of this investigation remains unclear." MEDICAID, PROPERTY TAX REIMBURSEMENT DRIVE MARCH UNDERSPENDING State expenditures continued to come in below what analysts expected in March, led by continued underspending in Medicaid and a significant monthly variance in property tax reimbursement.

March outlays totaled $2.3 billion, coming in under estimates by $89.3 million, or 3.7%, according to the Office of Budget and Management's Monthly Financial Report.

For the fiscal year so far, total disbursements from the General Revenue Fund are under estimates by $426.8 million, or 1.7%, per OBM.

A major driver of the March underage was in the property tax reimbursement category, where outlays came in under estimates by $101.5 million, or 54.9%. The variance is due to reimbursement requests from counties coming in later than anticipated, OBM said.

It was partly offset by primary and secondary education, which came in above projections by $50.6 million, or 8.6%. OBM attributed most of that to increased payments for cost adjustments that will be offset in the coming months.

Medicaid spending across all funds was $48.3 million, or 2.2%, below estimates for March, adding to an underage that now totals nearly $327.4 million for the fiscal year to date, according to the Legislative Service Commission's Budget Footnotes.

Most of the year-to-date underspending in Medicaid comes through the Department of Medicaid, which is under estimate by $250.5 million, or 1.4%, for the year, per LSC. Another significant driver is the Department of Developmental Disabilities, where Medicaid expenditures for the fiscal year so far is $58.5 million, or 2.8%, below estimates.

ODM attributed the underspending in March to fee-for-service programs, largely through DODD. The department said variance in DODD services is partly due to timing issues.

The state's share of GRF outlays through the main Medicaid line item is only $20.9 million, or 0.7%, under estimates for the fiscal year-to-date, and the department said it has been closer to estimates because the underspending has gone through programs largely funded with federal money, including the Medicaid School Program.

For March, Medicaid's overall caseload was below estimates by 132,702, or 4.3%, with the budget effects of a 5.6% underage in covered families and children partly offset by an overage of 4.9% in the higher-cost aged, blind and disabled category.

ODM said it would assess in May whether a rate reduction for hospitals set for July 1 will be necessary to eliminate a budget shortfall. LEGISLATIVE COMMITTEE SCHEDULES BEGINNING 4/16/2018 Tuesday, April 17 Senate Insurance & Financial Institutions (Chr. Hottinger, J., 466-5838), Finance Hearing Rm., 9:30 a.m. SB 118 WORKERS COMPENSATION (LaRose, F., Brown, E.) To make peace officers, firefighters, and emergency

medical workers diagnosed with post-traumatic stress disorder arising from employment without an accompanying physical injury eligible for compensation and benefits under Ohio's Workers' Compensation Law for up to one year and to prohibit such a person from receiving a disability benefit from a state retirement system for post-traumatic stress disorder arising from employment without an accompanying physical injury during the time period the person receives compensation and benefits under the Workers' Compensation Law for the disorder. (2nd Hearing-Proponent)

Senate Local Government, Public Safety & Veterans Affairs (Chr. Uecker, J., 466-8082), South Hearing Rm., 9:45 a.m. HB 291 GOVERNMENT INSURANCE (Wiggam, S.) To authorize counties, townships, and municipal corporations to

purchase an employee dishonesty and faithful performance of duty insurance policy, instead of a bond,

Statehouse Update

Page | 21

for protection from loss due to the fraudulent or dishonest actions of, and the failure to perform a duty prescribed by law by, an officer, official, employee, or appointee for which a bond is required by law. (1st Hearing-Sponsor)

Wednesday, April 18 Senate Government Oversight & Reform (Chr. Coley, B., 466-8072), Finance Hearing Rm., 9:45 a.m. SB 268 THEFT IN OFFICE (Wilson, S.) To expand the increased penalties for theft in office based on the amount of

property or services stolen and to include as restitution certain audit costs of the entity that suffered the loss involved in the offense. (2nd Hearing-Proponent)

Reprinted with permission of Gongwer News Service, Inc.