UI Bill Would Harm Contractors: CEA Legislative Update - Winter 2016

This year in advocacy will be busy, and informing decision makers about the priorities of quality contractors is paramount.

There will be many opportunities to support elected officials that support our priorities. For instance, the entire ninety-nine members of the Ohio House of Representatives and approximately half of the Ohio Senate will be up for reelection. Five Cuyahoga County Council seats will also be up this election cycle. 

Here are some of the issues CEA has been working on:

Ohio Statehouse Update

Unemployment Compensation Legislation Would Harm Contractors and Construction Workers

HB 394 Unemployment Compensation (Sears, B.) would hurt contractors and construction workers by severely limiting unemployment compensation in Ohio. The bill, among other things, would:

• reduce the number of weeks for which an individual may receive unemployment compensation from 26 to 12 weeks under current job-market conditions;
• eliminate additional compensation workers with families have been receiving;
• require that a worker be unemployed a full week EACH TIME she is unemployed before receiving compensation (currently, there is no such requirement);
• temporarily freeze automatic increases for weekly unemployment compensation benefit amounts; and
• abolish the Unemployment Compensation Advisory Council. 

The bill has received five hearings before the House Insurance Committee. CEA, along with other construction associations and the Building Trades, has testified against the Bill given its detrimental impact upon an Ohio construction workers' ability to treat construction as a viable career choice. (Read testimony.) At the most recent hearing on January 19th, the committee voted to accept a substitute bill which was an attempt to relieve some of opponents' concerns, but these changes did not address CEA's concerns. Thus, CEA will continue to oppose this bill. To add your voice to this opposition, please contact us.

Private Right to Work Bill Receives Hearing

HB 377 Union Dues (Brinkman, T.) would prohibit any requirement that employees of private employers join or pay union dues. The bill is being heard before the House Commerce and Labor Committee and has received one hearing to date. CEA lobbyists attended the hearing where there was significant union presence at the Statehouse. The overflow of those to see the testimony was placed into three different committee rooms. Rep. Brinkman, the sponsor, continually framed the issue as one of freedom, liberty, and making unions better as they now will truly compete for union members. Chairman Ron Young indicated there will likely be two other hearings at the very least. CEA will continue to oppose Right to Work efforts that seek to de-fund and undermine our labor partners' ability to enforce employees' collectively bargained working agreements. Quality union staff is necessary in order to ensure construction collective bargaining agreements are evenly and fairly enforced.

Anti-Residency Bills Remain In State Legislative Committees

Companion bills in the Ohio House and Senate prohibit a public authority from requiring contractors to employ local residents on public construction projects. HB 180 (Maag) passed the House on 6/30/2015 by a 61-31 margin. SB 152 (Uecker) passed the Senate on 6/25/2015 by a 21-11 margin. HB 180 is now being heard in Senate Government Oversight and Reform committee and received its first and only hearing on October 21, 2015. SB 152 is before the House State Government Committee. One of the bills will now have to make it through the other chamber to become law. CEA continues to oppose these bills or seek alternative solutions.

BWC Subrogation Bill Passes House

HB 207 Workers Compensation (Henne, M., McColley, R.) allows a state fund employer to have a workers' compensation claim that is likely to be subrogated by a third party paid from the surplus fund account in the state insurance fund rather than charged to the employer's experience. HB 207 passed the House on December 1, 2015 by a vote of 94-0. The bill now goes to the Senate for committee hearings. To be involved in the program, first, the claim must be based on an automobile accident involving a third party. Second, the third party is issued a citation for violation of any law or ordinance regulating the motor vehicle's operation arising from the accident on which the claim is based. Finally, the claim is chargeable to the Surplus Fund Account if either of the following circumstances apply: (1) any form of insurance maintained by the third party covers the claim, or (2) uninsured or underinsured motorist coverage covers the claim. 

State Capital Reappropriations Bill Introduced

SB 260 CAPITAL REAPPROPRIATIONS (Coley, B.) To make capital reappropriations - is now working its way through the General Assembly. State appropriations by law cannot last for a period of more than two years.  Thus, this bill occurs each off year to keep previously approved capital projects progressing on schedule.  SB 260 contains about $1.48 billion in estimated reappropriations.  The plan is to vote the measure out of the Senate Finance Committee next week.  To meet the statutory deadline for continued project funding, the bill must be signed into law by April 1.  Some of the appropriations within the bill include a shifting of funding such as $3,500,000 to be used for the public square redevelopment project in Cleveland.

Engagement with Cuyahoga County

CEA continued its legislative outreach at the local level as CEA had opportunity to meet with all members of the Public Works Committee.  One of the topics discussed with committee members was how best to provide meanfingul opportunities to small MBE and FBE contractors through community benefit agreements, as well as bonding, prompt pay and retainage practices that fit the industry and the County's goals. On the agency side, Public Works Chief Engineer Tom Sotak and County Executive Armond Budish both spoke at fall CEA meetings. 

County Budget

Provisions of interest:

• Workforce programs: The Executive requested $3 million for each of the next two years to bring down local and state workforce monies to help residents out of poverty by helping them get their first job. 
• Blighted properties: $26 million ($8M/yr for 3 years), along with $1 million each year for two years from the Cuyahoga County Prosecutor's Office, to demolish abandoned and blighted buildings.
• Job growth and opportunity: The Executive originally planned for a job-creation fund which would include $15 million from casino tax receipts over two years. In a comprimise with County Council, the fund will be allocated $3.8 million in 2016 and $4 million in 2017.

Thank you again for your help in supporting Construction Industry legislative efforts.

For questions and input on CEA Legislative efforts, contact Tim Linville ([email protected]) or Glen Shumate ([email protected]).