Legislative Update - November 2019

Ohio Legislature Takes Up Prompt Pay 

State Representatives Jon Cross and Bride Rose Sweeney have introduced HB 380.  CEA and other construction groups worked with the sponsors to craft this legislation.  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.  If the owner fails to comply, provisions in the bill state the owner shall pay the contractor the payment due and interest in the amount of eighteen percent per annum of the payment due.

The bill had a first hearing in the House Commerce and Labor Committee.  Both sponsors highlighted that currently there is no such provision to strengthen timely payments for private construction projects. They told members of the committee, “Since there is no time limit for when the general contractor gets paid, the sub-contractor is waiting to get paid and so goes the same down the line.” Testimony highlighted that, “The construction industry suffers from 51 days sales outstanding which is the longest of any industry in the US.”

CEA and its lobbying team continue to work hand in hand with the sponsors and discuss the bill with members of the House Commerce and Labor Committee.  Members have been receptive to the message of payments flowing quicker to contractors and making the process more effective and efficient.

Cuyahoga County Budget Hearings Continue

County Council has heard testimony from all County agencies on their budgets.  Council members are in the process of reviewing possible amendments and changes to the budget bill.   If past budgets are used as a guide, Council has traditionally attempted to refrain from major policy changes appearing in the budget.   The goal is to have the budget finalized in early December at this point. 

TRAC Funding Decisions

The state panel this week approved nearly $400 million over the next four years in transportation projects to help reduce congestion and improve safety.  There were 20 projects totaling almost $398 million that were finalized. (Final funding list)

State and Local Ballot Issues Analysis

Ohio voters passed more than 70% of tax issue on the general election ballot by public school districts  election day.  Voters approved 113 of 154 ballot requests – about 73% – representing a 4% increase compared with the last general election.  Renewal levy requests had a 95% approval rate on November 5th, while nearly half of new funding issues were successful.  There were 39 of 48 ballot issues in support of parks and recreation facilities that passed this cycle. Success continued down the line as library districts passed 28 of 30 funding requests.  Locally, some notes of interest include Cuyahoga Community College’s Renewal and Increase Levy which passed with 64.27% for the levy and 35.73% against the levy.  CEA was supportive of this issue.   Cleveland Heights residents have voted to elect a mayor and move away from the city manager form of government.   Brooklyn Schools won at the ballot box while Independence and Euclid Schools lost their levy issues.