Legislative Update - December 2019

Representatives Look To Revisit Unemployment Compensation 

State Representatives George Lang (R-West Chester Twp.), Craig Riedel (R-Defiance) and Rep. Bill Reineke (R-Tiffin) have declared their intent to put forward another bill to reform unemployment compensation. They have looked to possibly introduce something in the first couple of months of the new year. Rep. Lang has mentioned also looking at a constitutional amendment. Some of the concerns expressed by the legislators are that Ohio’s system is not prepared for another economic recession and that current benefits are too expensive.   

The Speaker of the House has stated that the issue is a complex one and that it will not be solved in a hurry. CEA and its lobbying team are working with legislators, other construction industry groups, labor, and interested parties to find a solution that makes sense for Ohio, the construction industry and its hard working employees. 

Cuyahoga County Budget Completed

Legislation to fund the County had its second reading at full Council on November 26th.  At that hearing, a substitute bill was accepted unanimously.  Some of the topics in the sub bill included: increased funding for senior adult services, ADAMHS board, Guardian Ad Litem payments, closing the achievement gap program, staffing upgrades, and social services. The bill had a third and final reading which took place on December 10th.   Policy areas that CEA members might be interested in remained unchanged. 

Prompt Pay Bill Receives CEA’s Support

State Representatives Jon Cross and Bride Rose Sweeney’s HB 380 had a second hearing in the Ohio House Commerce and Labor Committee.  The bill requires owners of private construction projects to pay the prime contractor within thirty-five days of receiving a request for payment unless otherwise agreed to and has provisions if an owner fails to comply, that the owner shall pay the contractor the payment due and interest in the amount of eighteen percent per annum of the payment due.  CEA and other supporters of the bill gave testimony to the committee. CEA’s written testimony can be viewed here. CEA and its lobbying team continue to make members aware of how important prompt cash flow is to the construction industry. 

Permissive Prevailing Wage Bill Heard

HB 78 Prevailing Wage / Permissive (Riedel, Manchester) would allow political subdivisions, special districts, and state institutions of higher education to elect to apply the prevailing wage law to public improvement projects.  The legislation had a first hearing in the Ohio House Commerce and Labor Committee. The bill is modeled after legislation that was introduced last session except for provisions that increase the prevailing wage threshold from $250,000  (in current law) to $500,000. Sponsors told the committee prevailing wage drives up the cost of projects and there is no evidence that jobs are more efficient or safer with prevailing wage. The sponsors were heavily questioned by committee members with more than a few members questioning the need for such legislation.  CEA’s lobbying team does not see this bill moving through the process. CEA’s team was at the hearing and continues to make committee members and members of the general assembly aware of the positive impacts of prevailing wage.  

Multi Use Tax Credit Bill Revamped

Senate Bill 39 sponsored by Senator Kirk Schuring authorizes an insurance premiums tax credit for capital contributions to transformational mixed use development projects.   The bill has had five hearings in the House Economic & Workforce Development Committee. The sponsor stated it will, "foster mega-development projects that will transform Ohio's downtowns with new and robust economic development."  A substitute bill was unveiled at committee this last week. The changes to the bill can be viewed here. Some of the changes in the sub bill include:

• Limiting the DSA director to approving only four transformational mixed use developments per fiscal year with a carryover provision (in lieu of a cap).
• The total tax credit that will be awarded will be 10% of the costs of the project. However, the 10% tax credit certificate will be issued incrementally.