Leadership . Page 03 Energy . Page 29 OMA Government Affairs Committee Environment . .Page 39 September 22, 2010 Tax . .Page 51 Safety & Workers’ Compensation . Page 62 AGENDA Welcome & Self-Introductions Caroline Ramsey Honda of America Manufacturing Committee Chair Ohio Senate Races Republican Campaign: • Matt Schuler • Vaughn Flasher Democrat Campaign: • Amanda Hoyt • Sara Kaminski Ohio House Races Republican Campaign: • Michael Dittoe Democrat Campaign: • Keary McCarthy Ohio Statewide Voter Trends Dr. Eric Rademacher http://www.pollster.com/polls/oh/10-oh-gov-ge-kvs.php Director, Ohio Poll, Department of Political Science, University of Cincinnati OMA Counsel’s Report (Time Permitting) Kurtis Tunnell Bricker & Eckler LLP OMA General Counsel Federal Update (Time Permitting) Public Policy Report (Time Permitting) Ryan Augsburger and Kevin Schmidt, OMA Staff 2010 Committee Schedule Wednesday, November 3 (Post-Election Conference Call 3:00 p.m.) Wednesday, December 8 Committee Meetings begin at 10:00 a.m. and conclude by 1:00 p.m. Lunch will be served. Please RSVP to attend meetings by contacting Judy: [email protected] or (614) 224-5111 or toll free at (800) 662-4463. Indicate if you will be participating in-person or by phone. Additional committee meetings or teleconferences, if needed, will be scheduled at the call of the Chair. Thanks to Today’s Meeting Sponsors: 2 of 64 Calendar of Events • BWC Division of Safety & Hygiene Courses - Training Center quarterly flyer - July - September 2010 • DTMA Advanced Manufacturing & Technology Show: The Future of Manufacturing Takes Shape Here - FREE - Dayton, OH - 09/20/2010 • The Ohio Partnership for Excellence presents “Aligning Forces for Excellence” - Newark, OH - 9/20- 9/21/2010 • Fundamentals of Compressed Air Systems - Industrial training workshop - Dayton, OH - 09/21/2010 • Working Partners FREE Webinar Events: Lean About The New DFSP - 09/21/2010 • Roetzel & Andress, LPA Seminars: Employment Law and Workers' Compensation - Legal Update 2010 - 09/22/2010, 09/29/2010, 10/14/2010 • OU/OMA Workshop: The New Energy Climate for Ohio Manufacturers Series - Workshop 3 - Columbus, OH - 10/20/2010 • Safex Training: Incident Investigation Workshop - 09/22/2010 • IMAC Seminar: The Wisdom to Plan, The Strength to Prevail - Columbus, OH - 09/22/2010 • The Schneider Downs Women in Business Industry Group: We've Got the Scoop: The Flavors of Leadership with Velvet Ice Cream - Columbus, OH - 09/23/2010 • Plante & Moran, PLLC Webinar: Get the Latest Updates on Health Care Reform Requirements and Implications for Employers - 09/22/2010 • OMA Government Affairs Committee Meeting - 2:00 p.m. - 09/22/2010 • MAGNET/PNC/Skoda Minotti & Growth Capital Workshop: Financial Information & Resources for Smaller Manufacturers - Free - Cleveland - 09/22/2010 • Bricker & Eckler LLP presents FREE Human Resources Seminar: Second Annual Hot Topics in HR - 09/28/2010 • GE Aviation 2010 Toledo, OH Small Business Supplier Symposium - 09/28/2010 • GACCoM's Annual Renewable and Energy Efficiency Roadshow - Columbus, OH - 09/29/2010 • BWC Safety & Hygiene Training Courses -10/2010 to 12/2010 • Bricker & Eckler: 2010 Renewable Energy Finance Updates - Independence, OH - 10/07/2010 • Safex Open Enrollment OSHA 8-Hour Hazwoper Refersher Schedule - 10/08/2010 • Safex Training: Respirator Program Writing Workshop -10/12/2010 • Safex Training: How to Handle an OSHA Inspection - 10/14/2010 • Ohio State University Institute of Ergonomics: Putting Ergonomics Into Practice - 10/19-10/22/2010 • OMA/Ohio University: The New Energy Climate for Ohio Manufacturers Series - Workshop 3 - Columbus - 10/20/2010 • Taft Stettinius & Hollister LLP Save the Date: Taft's 2010 Government Contracts Seminar - 10/20 & 10/27/2010 & 11/3 & 11/10/2010 • PNC/Smart Business Webinar: Myths about Lean Manufacturing and the Impact to Your Bottom Line - 10/21/2010 • OMA Energy Committee Meeting - 11/03/2010 • Jackson Lewis Employment Law Conference - 11/03/2010 • The Success Group: Impact Ohio 2010 Post Election Conference - Columbus, OH - 11/04/2010 • OMA Tax Committee Meeting - 11/10/2010 • OMA Environmental Committee Meeting - 11/11/2010 • The Northwest Ohio Manufacturing Forum & Expo - Financing & New Business Opportunities - Bowling Green State University - 11/12/2010 • PNC/Smart Business Webinar: Exploring New Territories: Why Diversification is More Important than Ever for US Manufacturers - 11/17/2010 • OMA Safety & Workers Comp Committee Meeting - 11/18/2010 • OMA Government Affairs Committee Meeting - 12/08/2010 • Safex Training Assessments Workshop: Who has to do what training when? - 12/14/2010 3 of 64 Hot Topics September 2010 Overview The General Assembly has been in recess since early June. They will not return until after the election. Gridlock has prevented much legislation of consequence from moving this year. The post-election or “lame duck” session always hold some threats and opportunities. The election outcome will determine the likelihood of legislation passing. The OMA is already on guard against possible threats such as mandatory cy pres and health care mandates. With the gubernatorial race and apportionment board (which draws the boundaries) up for grabs in this election year, the environment is politically charged. Competition by candidates to be more “business friendly” is fierce. Over the quarter the OMA-PAC has evaluated legislative candidates and made two rounds of endorsements. Additionally public policy position papers “Retooling Ohio” developed earlier in the year have been a useful tool for meetings with legislative candidates. Over 25 such in-the- district meetings are in the works. State Budget and Revenue Over this General Assembly session lawmakers have found plenty to quarrel over while ignoring the obvious train wreck facing the state. As we approach the 2012-2013 biennial budget real solutions will be needed to respond to a projected structural deficit of as much as $8 billion, approaching 20% reduction from current budget levels. Tax hikes and / or draconian cuts to social programs, education and local government will be necessary to balance. Liabilities such as unemployment compensation and public pensions are also of concern and could complicate solutions to the traditional budget options. Incumbent state leaders nor their challengers have offered much specificity about dealing with the looming shortfall. So far for the current biennium, state revenue collection is tracking with estimates. Administration officials consider the variance to be manageable without legislating revisions to tax and service levels in the immediate timeframe. Other states are in similar straights. Card Check and Congressional Agenda Movement on EFCA stalled out early this year after intense opposition, a development that occurred in part due to OMA leadership in our state. There are rumors that Congress will pass the legislation later this year to engender voter support from labor groups, however, even absent the legislation, the National Labor Relations Board is already acting to administratively enact card-check. The NLRB has proposed allowing electronic voting on union organizing which effectively accomplishing card check. NAM staff is speculating the NLRB may next broaden the definition of union eligible employees to include supervisors – effectively accomplishing the so-called RESPECT Act which is also stalled in Congress. On the energy and environment front, the news is similar. Congressional leaders appear to have lost their appetite to advance some form of cap and trade this year and into the future. A package of scaled down energy bills with targeted tax hikes on business or a national renewable standard seem more likely. In the meantime, the U.S. EPA has proposed rule after 4 of 64 rule that would have a potentially devastating effect on Ohio industry. Tighter ozone standards, carbon and other GHG standards, and new standards on boilers are among greatest threats. State groups like the OMA are playing a part in grassroots opposition. See GHG below. Civil Justice Threatened – Plaintiffs Lawyers Use Charities The state House of Representatives failed to vote the Cy Pres legislation before leaving town for the summer – a clear victory. The legislation is being advanced by a Lake County trial lawyer who has attracted support of dozens of charitable organizations because the law change promises to redistribute unpaid lawsuit settlement dollars to charities. Unfortunately, many charities have only half the story and may not be considering the harmful effects the bill imposes on Ohio's economic well-being. Two identical bills are pending, one in the House and one in the Senate that would have a major impact on your company’s ability to settle class action lawsuits. These bills will give plaintiffs the upper hand in negotiating settlements and place the very same Ohio businesses, which already contribute millions of dollars to charities on a voluntary basis, at a greater risk of lawsuit abuse. These bills will increase the cost of class action lawsuits for defendants and could actually hurt the charities they purport to help. The OMA has made this a top priority and met with several Lake County and NE Cuyahoga county manufacturers to educate and encourage engagement. The OMA leads the Ohio Alliance for Civil Justice, a coalition of 200 business and professional groups and companies focused on tort reform which is opposed to mandatory cy pres. Workers’ Compensation Policy A whole lot of noise is being made on campaign