Government Affairs Committee Meeting Sponsor: Committee Calendar Meetings Will Begin at 9:30 A.M

Table of Contents Page # Government Agenda 2 Affairs Public Policy “Hot Topics” 3 Leadership News Articles 5 Committee Legislation Tracker 12 November 13, 2013 Counsel’s Report 20 Energy Policy Report 30 • SB 58 PowerPoint 40 • SB 58 Fact Sheet 68 • SB 58 Talking Points 71 • Akron Beacon Journal Editorial 72 • MGP Letter 74 Environment Policy Report 75 • Bell Case 82 • OMA Beneficial Use Comments 83 Human Resources Policy Report 87 Safety & Workers’ Compensation Report 98 • Silica Information 108 Tax Policy Report 112 • OMA Tax Reform Documents 126 • House Bill 5 Features 134 • OMA Advocacy Letters 137 2014 Government Affairs OMA Government Affairs Committee Meeting Sponsor: Committee Calendar Meetings will begin at 9:30 a.m. Wednesday, Feb. 26, 2014 Wednesday, May 28, 2014 Wednesday, Aug. 20, 2014 Wednesday, Dec. 3, 2014 Page 1 of 142 OMA Government Affairs Committee November 13, 2013 AGENDA Welcome & Self-Introductions Jeff Fritz of DuPont, OMA Committee Chair Federal Minute: Amber Best of NewPage Corp., Regional Vice Chair NAM Ohio Brief Report on National Issues Region by National Partners OMA Counsel’s Report Kurtis Tunnell, Managing Partner, Bricker & Eckler, LLP Staff Reports Ryan Augsburger, OMA Staff Rob Brundrett, OMA Staff Committee Members Special Guest: State Representative Matt Huffman, House Speaker Pro-Tem Discussion / Action Agenda Member Discussion Encouraged Throughout Meeting Government Affairs Committee Meetings in 2013 begin at 9:30 a.m. and conclude by 1:00 p.m. Lunch will be served. Please RSVP to attend meetings by contacting Denise: [email protected] or (614) 224-5111 or toll free at (800) 662-4463. Indicate if you will be participating in-person or by phone. Thanks to Today’s Meeting Sponsor: Page 2 of 142 Public Policy “Hot Topics” November 13, 2013 Overview Since returning to Columbus after Labor Day, lawmakers have been in session and holding committee hearings. Medicaid expansion, election reforms, municipal income tax uniformity and a revision to Ohio alternative energy standards have topped the agenda. Soon the holiday recess will arrive and the focus will shift to mid-biennium reviews (MBRs) and a capital budget bill to follow in early 2014. The OMA staff focus has been directed on energy and tax policy. SB 58 Alternative Energy Standards In late September, Senator Bill Seitz unveiled a substitute version of his bill to revise existing Ohio alternative energy standards. The standards apply to utility companies and require they achieve a specified amount of electricity from: 1) renewable sources; 2) customer energy efficiency, and 3) advanced energy. Following review and analysis of the bill for impact on the manufacturing sector, the OMA has been communicating strong opposition to the bill. The bill benefits utilities and denies customers of short-term and long-term term benefits of energy efficiency. Senator Seitz intends to move his bill before the end of the year. See OMA toolkit to learn more and take action. Manufactured Gas Plants (MGP) Remediation Even as state leaders have stepped Ohio away from rates set via regulation, a law change was included in the budget that would have added costs to manufacturers’ energy bills (gas and electric). The budget language was line-item vetoed by Governor Kasich due to a drafting error, signaling a willingness to expand the parameters of some cost-recovery for obsolete utility assets. A work group of the OMA government affairs committee convened over five times since August 22 to study the proposal, and advocate against any incursion against a utility law that has protected consumers from being subjected to such charges in utility bills. Medicaid Expansion In the state budget bill, HB 59, Governor Kasich proposed to expand Medicaid coverage using federal funds. His proposal was rejected by the General Assembly. In October, the Governor won approval of an administrative proposal to authorize expansion. Self-described “TEA party” Republicans were outspoken critics, calling the move an end-around. Workers’ Comp & Industrial Commission The BWC is moving to prospective premium billing. The first 6 months of the new billing period will be paid by the BWC using surplus funds. Employers who get coverage from the state fund will soon begin seeing the billing statements. This follows dividends paid to employers over the summer. Tax Policy House Bill 5, the municipal income tax uniformity bill appears ready for a House floor vote. In October a substitute version of the bill was accepted by the House Ways and Means Committee. The substitute bill was a product of intense negotiations between lawmakers, the business community and local governments. While cities still oppose the bill, mainly due to its Net Operating Loss provisions, passage from the House appears likely. A slew of CAT attack bills have been introduced since the beginning of the year. These include CAT credits and deductions for a variety of things including food donations, hiring new employees and contributing to an economic development project. While some of these ideas Page 3 of 142 may have good intentions driving them, the concern is that any deduction or credit puts strain on the low rate. Increased pressure on the rate may entice legislators to raise that rate. AirBag Fraud The OMA joined with auto sector leaders in expressing support for legislation to stiffen the penalties on airbag fraud. The legislation stems from repeat safety problems resulting from unlicensed, counterfeit airbag products and technology, most often aftermarket- installed. Passage is expected in the Senate before the end of the year. Civil Justice HB 238 (Rep. Jim Butler, R-Dayton) was introduced this summer to require public disclosure of most large contingency-fee contracts between government and personal injury attorneys. Known as the Transparency in Private Attorney Contracting (TiPAC) legislation is intended to address concerns about the propriety of contingency-fee arrangements for the prosecution of public claims. The OMA strongly supports the concept and will be advocating passage. Elections The 2013 general election was clear of ballot issues but the 2014 election may be crowded and extra politically charged due to the statewide executive elections. Governor Kasich will face a challenge by Ed Fitzgerald, Cuyahoga County Executive. Other incumbent Republican statewide officeholders will face challengers. 2014 also marks term limits for House Speaker William G. Batchelder. In the contest to succeed him, veteran Representative Ron Amstutz appears to face challenge from Representative Cliff Rosenberger. OMA election services will compile and election guide and track campaigns in 2014. Environment The House Bill 592 solid waste rewrite appears to have stalled in phase two. Ohio EPA was hoping to have introduced legislation by now, but the agency has moved back its timetable on legislative introduction. Ohio EPA’s push for a comprehensive beneficial use program has also gone quiet. The agency promised draft permits by August or September and interested parties are still waiting to see what those permits might look like. The Director initially wanted to see rules ready by the end of the year but that timeframe no longer seems feasible. Page 4 of 142 Leadership NAM Offers 2013 Trade Toolkit (video) sufficiently similar to permit this under Ohio Evidence Rule 804(B). To help manufacturers communicate to employees, suppliers and within their communities about the The OMA filed an amicus brief in support of H.J. importance of global trade to U.S. manufacturing Heinz Co. because manufacturers are regularly prosperity, the National Association of Manufacturers forced to defend against testimony developed in a NAM) has developed an extensive tool kit. prior proceeding when neither they, nor their predecessors in interest, were parties in that proceeding. Elements available include a new 2-minute video and an online Trade Toolkit with sample letter to the editor, sample company newsletter, printable poster, This is unfair and is precisely the kind of hearsay and more. evidence that is precluded by the Ohio Rules of Evidence. And NAM urges all of us to use these advocacy resources to communicate with our Ohio Anne Marie Sferra, OMA counsel from Bricker & congressional delegation over the summer Eckler LLP, summarizes the case. 8/15/2013 recess. 8/15/2013 Ohio Steel Council Announces Officers OMA Asks Ohio Supreme Court to Hear Chiquita’s Appeal The Ohio Steel Council this week announced its officers who will serve a 2-year term. Chiquita Brands International, Inc. is in a heated dispute with its commercial general liability insurance Brenda R. Schulz, Controller at Nucor Steel Marion, carrier over the carrier’s refusal to pay defense costs Inc. will serve as Chair and President; Emily B. and denial of coverage for tort claims. The carrier Petrovich, Government Relations Manager at United denied that it has a duty to defend Chiquita because States Steel Corporation, will serve as Secretary; and the tort claimants alleged that Chiquita engaged in Ed D. Forshey, Director of Energy & Asset intentional conduct. Management, at AMG Vanadium Inc., will serve as Treasurer. In a broad-sweeping decision, the First District Court of Appeals effectively re-wrote the parties’ insurance Ohio Steel Council, an organization comprised of contract creating a new rule of law that is contrary to steel producers, processors and suppliers, works to well-established Ohio Supreme Court precedent promote the benefits of a healthy steel sector through regarding an insurer’s duty to defend its insured. the education of key constituents about the industry’s overall importance and significant economic The OMA joined several companies in urging the impact. 8/16/2013 Court to reconsider its decision and accept this discretionary appeal to bring clarity to the confusion McGladrey Reports on Pulse of OMA, Ohio & U.S. caused by the Court of Appeals on this issue that is Manufacturing important to all commercial general liability policyholders.

Load more