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May 24, 2024

UPDATE AT A GLANCE

We honor those who have served our country and paid the ultimate sacrifice for it, and wish everyone an enjoyable Memorial Day weekend.

The Legislature will meet again next week after Gov. DeWine announced he is using his authority under the Ohio Constitution to call the General Assembly into a special session starting Tuesday to address getting President Joe Biden on the November ballot and ending foreign national contributions to issue campaigns in the state.

Here are other recent items of note:

• Last Friday, a Franklin County judge ruled that a preemption from the Legislature banning municipalities from local regulation of tobacco and alternative nicotine products is unconstitutional. The temporary restraining order (TRO) from the case remains in place statewide except for the cities that were included in the lawsuit. The state has indicated that they will appeal the judge's ruling.

• On Wednesday, the Senate amended House Bill 305 to allow state officials to immediately appeal temporary restraining orders (TROs). The amendment language can be viewed here. The House did not take up the bill. HB305 is sponsored by Rep. Brian Stewart (R-Ashville) and Rep. Richard Brown (D-Canal Winchester). More information is in the article below.

• OML provided proponent testimony this week to the House Government Oversight Committee on House Bill 499, legislation sponsored by Rep. Adam Mathews (R-Lebanon) and Rep. Dani Isaacsohn (D-Cincinnati) that would create two grant programs for municipalities and townships that adopt pro-housing policies. The testimony can be viewed here. More information on the hearing can be found in an article below. Bill Analysis

• The league has changed the date for our upcoming regional conference in Athens. The conference will now be held June 21 rather than June 7. Registration information can be viewed here.

• Registration is open for the Mayors Association of Ohio Annual Conference, taking place June 12-13 in Dublin. The conference will cover topics from the unique perspective of mayors, including economic development, infrastructure, grant funding, marijuana, and more. Registration information can be viewed here.

• Registration is open for OML's annual Municipal Income Tax Seminar that will take place July 10-12 in Dublin. The conference will cover nuts and bolts for tax administrators, the legislative landscape, collections, technology, reviewing returns, and more. Registration info can be found here.

• OML has received inquiries about the best way to handle first amendment auditors, those who film public officials or employees to hold them accountable or "test" their right to film in public spaces. A good example of how a first amendment audit situation should be handled can be viewed on YouTube here.

OML PROVIDES PROPONENT TESTIMONY FOR LATEST HOUSING INITIATIVE LEGISLATION

OML provided proponent testimony this week to the House Government Oversight Committee on House Bill 499, legislation that would create two grant programs for municipalities and townships to receive further funding to increase the housing supply. One of the grant programs provides funding after communities have adopted and implemented at least three of 12 housing policies from a menu of options. The other provides funding for development in areas within 20 miles of mega project. The bill is sponsored by Rep. Adam Mathews (R-Lebanon) and Rep. Dani Isaacsohn (D-Cincinnati).

OML's proponent testimony can be viewed here, and the analysis of the bill can be viewed here. The league testimony highlighted that the bill provides incentives for local governments to further address the state's housing supply shortage – rather than mandates -- providing for both flexibility and local decision-making.

At the bill's second committee hearing on Tuesday, legislators also received testimony from additional groups supportive of the legislation, including the Ohio Home Builders Association, Ohio Chamber of Commerce, Coalition on Homelessness and Housing in Ohio, Cincinnati Development Fund, Ohio REALTORS, LISC Greater Cincinnati, Cincinnati USA Regional Chamber, and the Ohio Mayor's Alliance.

Witnesses mentioned that the state needs to step up housing production at all levels and speed up the development process. The Ohio Chamber of Commerce said housing production remains a challenge due to land availability, zoning, density restrictions, regulations, and construction costs. The chamber recommended that the option to increase permitting by 20 percent should have a defined timeframe to achieve the 20% increase. The chamber also recommended looking at an alternative funding mechanism for the grant programs, rather than eliminating the 10% nonbusiness property credit for Class I residential properties, saying that eliminating this credit would place an additional tax burden on low-to-moderate income households.

The Coalition on Homelessness and Housing in Ohio said the bill includes provisions that would benefit lower-income tenants and could increase the overall housing supply to help mitigate the steep rent increases experienced over the past few years. About 64% of Ohioans rent their homes, including the more than 700,000 who spend over half of their household income on rent. Ohio has a shortage of 267,382 affordable rental units available for extremely low-income Ohioans.

COHHIO said strong tenant protections can reduce unnecessary evictions and help tenants get a fresh start and be contributing members of Ohio’s economy. They also said that pairing tenant protections with rental registries may give municipalities the tools that they need to understand overall community challenges so they can make informed, big-picture decisions, but also so they can hold negligent and absentee landlords accountable.

OML will keep its members informed as the bill moves through the legislative process.

SENATE AMENDS HOUSE BILL TO INTERFERE WITH ABILITY TO CHALLENGE LEGISLATION THROUGH THE COURTS

Senate Republicans this week approved House Bill 305 after including an amendment to allow state officials to immediately appeal temporary restraining orders. The language of the amendment can be viewed here.

The bill is sponsored by by Rep. Brian Stewart (R-Ashville) and Rep. Richard Brown (D-Canal Winchester).

The language on final appealable orders says that “an order that restrains or restricts enforcement of a state statute or regulation, whether in whole or in part, facially or as applied" may be reviewed. The goal is to keep a judge in one county from, in effect, putting a stay on the law as it applies to all the other counties in the state. It does not prohibit the case from continuing forward at the trial level, but it would not allow the stay to apply statewide while the case is at the trial level.

Sen. Rob McColley (R-Napoleon) said that laws passed by the General Assembly are “presumed constitutional” and usually should remain in effect while court proceedings take place.

The league has great concerns about the ability going forward to challenge constitutionally questionable laws that have a statewide impact on municipalities, if the amended legislation is enacted (as passed by the Senate). Furthermore, the language was amended into the bill late in the process, without prior vetting or legislative review by other members of the General Assembly and the public to determine if it is good state policy.

The Senate voted 24-7 to pass HB305. After the Senate passed the bill, the House did not concur on the bill.

We will alert our members if the House takes action on this bill.

COMMITTEE RECAP

BILLS OF MUNICIPAL INTEREST



Below is the list of bills that received a legislative committee hearing this week and that are impactful to Ohio municipalities:

Legislation Receiving a First Hearing

HB406 - BLOCKCHAIN BASICS ACT (Demetriou, S) 

To prohibit certain state and local government actions respecting digital asset mining, to exempt certain digital currency transactions from state and local income taxes, to prohibit local charges on digital assets, to require the state retirement systems to evaluate certain digital asset investments, and to name this act the Ohio Blockchain Basics Act. First hearing in House Financial Institutions.

Bill Analysis

HB433 - PROHIBIT CARRYING MASS CASUALTY WEAPONS (Blackshear, W) 

To prohibit carrying mass casualty weapons. First hearing in House Government Oversight.

Bill Analysis

Legislation Receiving Additional Hearings

HB93 - LIMITATIONS ON RECOVERY, LIEN IMPOSITION (Johnson, M; McClain, R) 

Regarding limitations on recovery and lien imposition by municipalities against property owners of non-owner-occupied properties for unpaid water, sewer, and disposal services rates and charges. First hearing in Senate Local Government.

Bill Analysis

HB197 - SOLAR PROGRAMS (Hoops, J; Ray, S) 

To establish the community solar pilot program and the solar development program. The bill was amended to add “commercial rooftop” to the definition of distressed sites, hold electric distribution utilities harmless with unsubscribed users, and make the distressed site bill credit the same as the non-distressed site bill credit. Amended at seventh hearing of House Public Utilities.

Bill Analysis (as introduced)

HB260 - COMPETITIVE RETAIL ELECTRIC SERVICE (Seitz, B; Robb Blasdel, M) 

Regarding public utilities and competitive retail electric service. Fifth hearing in House Public Utilities.

Bill Analysis

HB303 - EMS PERSONNEL TRAINING SUBJECTS (Hall, T; Santucci, N) 

To establish a process for the revision of training subjects for EMS personnel. Reported out at fourth hearing House Homeland Security.

Bill Analysis

HB315 - TOWNSHIP LAW CHANGES (Hall, T; Seitz, B) 

To make various township law changes and to make an appropriation. An amendment removed language enabling urban townships to serve as the organizational board of commissioners for a new community district, while another authorizes townships to impose a fee of up to $1 on admissions to event venues with at least 2,000 capacity and that are exempt from property taxation to be put toward township police, fire and emergency medical services. Reported out as amended at fifth hearing of House State and Local Government.

Amendment I | Amendment II | Bill Analysis (as introduced)

HB327 - REQUIRE CERTAIN CONTRACTORS TO USE E-VERIFY (Wiggam, S; Swearingen, D) 

To require government contractors, private nonresidential contractors, and certain employers to use E-verify. Substitute bill accepted and reported out at fifth hearing of House Commerce and Labor.

Substitute Bill | Bill Analysis (as introduced)

HB349 - NATURAL GAS PIPELINES (Barhorst, T; Jones, D) 

To authorize the creation of areas within which incentives are available to encourage the development of natural gas pipelines and other infrastructure and to make an appropriation. Fourth hearing of House Economic and Workforce Development.

Bill Analysis

HB499 - HOUSING GRANTS; REVISE PROPERTY LAW (Mathews, A; Isaacsohn, D) 

To create grant programs for housing developments near megaprojects and for townships and municipalities that adopt pro-housing policies, to modify the community reinvestment area law relating to residential property, and to limit the 10% nonbusiness property tax credit. Second hearing of House Government Oversight, (Second Hearing).

Bill Analysis

SB226 - EXTENDING PROPERTY PROTECTION LAWS (Johnson, T) 

To extend the law that prohibits certain governments, businesses, and individuals from acquiring agricultural land to certain other property and to name this act the Ohio Property Protection Act. Fourth hearing in Senate Veterans and Public Safety.

Bill Analysis

SB245 - REVISE ORC HOUSING LAWS (Reynolds, M; Craig, H) 

To revise the law governing eviction, real estate representation agreements, residential building code enforcement, and real property transfers, and to amend the version of section 3781.10 of the Revised Code that is scheduled to take effect January 1, 2025, to continue the changes after that date. Second hearing in Senate Select Committee on Housing.

Bill Analysis

SB250 - WAYSIDE DETECTOR RAILROAD REQUIREMENTS (Reineke, W) 

To create separate requirements for the installation of wayside detector systems for certain railroad companies. Amended in second hearing of Senate Transportation.

Amendment | Bill Analysis

FLOOR PASSAGE

BILLS OF MUNICIPAL INTEREST



Below is the list of bills impactful to Ohio municipalities that have been passed by either the House of Senate. 

HB30 - INMATES' ACCESS TO FEMININE HYGIENE PRODUCTS (Humphrey, L) 

Regarding inmates' access to feminine hygiene products and showers by municipal and county correctional facilities and state correctional institutions. Passed by House 92-0 and will now move to the Senate.

Bill Analysis

HB37 - OVI PENALTIES (Johnson, M; Miller, K) 

To modify the law related to OVI-related offenses. Passed by House 92-0 and will now move to the Senate.

Bill Analysis

HB305 - CAMPAIGN FINANCE, COURT MATTERS (Stewart B; Brown, R) 

To address the laws governing financial and administrative matters of the courts, judgeships and court jurisdiction in Conneaut and Ashtabula County, appeals related to enforcement of state law, conciliation in family law proceedings, the use of financial assistance by legal aid societies, allocation of funds to the Indigent Support Defense Fund, political subdivision soldiers' memorials, maintenance of a mausoleum or columbarium, third-party administration of driving tests, motor vehicle documentary service charges, and public depositories; to establish a standing juvenile committee of the Criminal Sentencing Commission; to prohibit chartered counties and municipal corporations from using public funds for certain purposes; to modify the Campaign Finance Law; and to reiterate the effective date of judicial release and transitional control provisions enacted in S.B. 288 of the 134th General Assembly. Passed by the Senate 24-7 and will move to the House for a vote of concurrence.

Bill Analysis

COMMITTEE SCHEDULE

There are currently no hearings scheduled with bills of municipal impact.