OHIOCHAMBER.COM NOVEMBER / DECEMBER 2019

GET INFORMED. 1 General Assembly advances pro-business bills 2019 in review Member benefits

SHARE SUCCESS. 4 TechCred program prepares workers for tech jobs Common Sense Initiative aids regulatory reform Council on State Taxation meeting Ohio Excels strengthens education Legislative appointments fill vacancies

STAY CONNECTED. 6 Business Tax Conference An Official Publication of The Ohio Chamber of Commerce 2020 seminars Ohio Chamber team members New members Education and workforce go hand in hand By Keith Lake, Vice President, Government Affairs GENERAL ASSEMBLY FINALLY BEGINNING TO ADVANCE PRO-BUSINESS BILLS

In the cover story of our July/ food or beverages; and protect real August issue of Ohio Matters, we property owners by requiring local recapped how the first six months of governmental entities to seek local the legislative session went for the board or legislative approval before business agenda. The headline of the a complaint challenging a property’s story read, “Playing Defense,” because assessed value is filed. that’s what the Ohio Chamber was primarily doing from shortly after the In addition, House Bill 352, legislation introduction of the transportation to address a longstanding Ohio budget on Feb. 12 until work was Chamber objective — to improve finished on the state’s two-year Ohio’s legal climate by restoring operating budget on July 17. balance to our employment discrimination statutes — was Following the legislature’s summer introduced on Oct. 1 and has had recess, lawmakers returned in its first hearing in the House Civil September to resume consideration Justice Committee. Ohio’s current of bills. The good news is that, since employment discrimination statutes then, we haven’t had to play nearly as are problematic for employers due to much defense. The bad news is that no their drastic difference from federal pro-business priorities sought by the During the budget debate earlier law and the laws in other states. Ohio Chamber have yet advanced to this year, the House sought to raise the governor for his signature. No pro-business taxes on small business owners by Through the Ohio Chamber’s $528 million per year by reducing the member-driven committee process, We anticipate that changing soon, amount of business income a pass- several other ideas for improving the however. Two bills backed by the priorities sought by through business can deduct, from business climate have been proposed, Ohio Chamber, in particular, are the Ohio Chamber $250,000 to $100,000, and eliminating and our advocacy team is currently nearing the finish line. The first is the flat 3 percent tax rate on any working to identify lawmakers willing House Bill 2, which establishes a new have yet advanced to remaining business income. While to take the lead on tackling these “TechCred” program that will help the Ohio Chamber led the successful issues. Another half-dozen or so bills employers bridge the workforce gap. It the governor for his charge to stop the General Assembly that we’re seeking could be ready for reimburses employers up to $2,000 for from passing this plan, a last-minute introduction before the end of 2019. workforce training programs that give signature. addition to the budget bill did exclude employees the ability to earn industry- With the holidays quickly lawyers and lobbyists from claiming recognized, technology-focused approaching, not much time remains the deduction. credentials. During the first week on the 2019 legislative calendar, so of November, the bill was favorably systems. SB 33 has passed the Senate While we appreciate the legislature so most of these pro-business bills will reported out of the Senate committee and is awaiting final committee action quickly reversing itself, the exclusion carry over into the New Year. 2020 that had been working it. in the House. for lawyers and lobbyists was repealed is an election year, however, and not because the legislature realized the legislative activity notoriously slows The second of these bills is Senate Bill In another positive development change was both harmful and unfair, during an election year. There will be 33, which would increase penalties in early November, the legislature but because there was no easy way a window of about seven weeks or so for those who physically damage or restored the ability of lawyers and for the Ohio Department of Taxation prior to the St. Patrick’s Day primary tamper with critical infrastructure lobbyists to use the business income to determine whether someone is a election for lawmakers to act, and then projects, including telecommunications deduction (BID) in the same manner lawyer or lobbyist and thus ineligible about seven more weeks following the networks, railroads, pipelines, electric as any other pass-through entity to utilize the BID. primary until they leave Columbus generating facilities and water sewer generating business income. and head back to their districts to Several other Ohio Chamber priority focus on their campaigns. bills are close to being finalized in one legislative chamber and should Most legislators running for re- soon make their way to the other election want to be able to say they chamber for further consideration. supported policies that will make Ohio These include bills to shorten the more competitive and strengthen our statute of limitations on contracts economy. To date, not many will be from eight years to six years; prohibit able to make this claim in 2020. As local governments from imposing we’ve outlined here, however, there’s a fee or tax on bags, cans, cups, or ample opportunity to remedy this other packaging used to consume, between now and next November. transport or protect merchandise,

WWW.OHIOCHAMBER.COM 1 Be small and be mighty.

Ohio Chamber Health Benefit Program: Savings up to 15%1 for small business members. As a chamber member, your small business joins with other small businesses throughout Ohio, giving you the ability to offer health plan benefits that rival those of larger companies.

Greater Savings Small business Ohio Chamber members may save up to 15% on health benefits.

Greater Access Over 73,000 Ohio-based health care providers, along with 24/7 online doctor visits.

Greater Convenience and Control Give employees access to case advocates and mobile tools to more easily make informed decisions.

For more information, visit ohiochamber.com and click on “Learn More.”

1 Savings based on Q2 2019 UnitedHealthcare analysis for average price comparison between UnitedHealthcare plans in Ohio. The Ohio Chamber of Commerce Health Benefit Program is a self-funded health benefits program. B2B 9254192 9/19 © 2019 United HealthCare Services, Inc. 19-12086 GET INFORMED. Be small and 2019, A YEAR IN REVIEW

After a busy 2018 election season, Ohio started 2019 with a new governor, lieutenant governor, secretary of state, attorney general, be mighty. treasurer and auditor. It also had new faces in the top state departments, as well as 30 new members in the Ohio Ohio Chamber of Commerce Chairman Opioid program with the U.S. Chamber of Commerce House and Senate. of the Board Jeff Walters.

The same was true at the Ohio Annual Meeting speaker Daymond John with Chamber of Commerce, as the former chair of the Ohio Chamber Board of new year brought us several new Directors Linda Hondros. staff members in our membership department and on the government affairs staff. It’s always tough to lose good people, but it shows we have a strong team. The new team members this year were Justin Giaimo, director, External Relations; Justin Zink, director, External Relations; Kevin Shimp, director, Labor & Legal Affairs; Anthony Lagunzad, director, Political Attendees at the Policy Conference at Salt Fork & Grassroots Programs; Tony Long, Cover of our Public Policy Priorities director Tax & Economic Policy; Lillian LEGISLATIVE ISSUES van Wyngaarden, communications At the start of each legislative session, Shark Tank experience. We asked our state regulations, and several others are coordinator; and Bill White, director we develop a list of Public Policy local chamber friends to nominate looking at doing the same. of External Relations. And Stephanie Priorities with input from all of companies they felt worthy of John’s Kromer, who was on the membership our committees. Our Public Policy business expertise. Three were We also added a video, “What’s a team, moved to government affairs, Priorities make it clear to members of selected to come up on stage to present Recovery-Supportive Workplace where she is director, Energy & the General Assembly what Ohio their business pitch and receive advice Anyway,” to help employers transition Environmental Policy. employers expect from their state from John. Afterward, we hosted our employees back into the workplace after a successful recovery. Thanks OHIO CHAMBER OF legislature. Every chamber member always popular Legislative Reception. and member of the General Assembly to our partnership with Working COMMERCE RESEARCH Policy Conference Partners and sponsorship with FOUNDATION receives a printed copy of our priorities, and they are listed on our website. As with every nonelection year for Anthem, we are able to provide this The Ohio Chamber of Commerce the last 30-plus years, we hosted our service at no cost to Ohio employers. Research Foundation added a new As of Oct. 29, 609 bills have been Policy Conference at Salt Fork. Ohio leader. Justin Barnes took over as introduced in the House and Senate. Of native and author of “The Bellwether: OHIO CHAMBER HEALTH the Research Foundation’s second those, we are following 168. Of those, Why Ohio Picks the President” Kyle BENEFIT PROGRAM executive director. Under his we supported 25 and opposed 29. One Kondik was the featured speaker. In September, we launched our latest leadership, the foundation continues to of the bills we supported, SB 57, which We filled the Salt Fork Lodge and member benefit, the Ohio Chamber release the quarterly Prosperity Pulse authorized the growing of hemp in our many of the cabins and enjoyed great Health Benefit Program, which gives survey, which gauges the pulse of Ohio’s state, passed. Also, we have indicated educational sessions. The 2021 Policy eligible small business owners access business leaders. Barnes also added that six of the bills we are following are Conference will be Sept. 8-10, 2021. to a portfolio of health care options. a new Lunch, Learn & Lead program Key Vote bills and will be included in The program is administered by for chamber members and members our Free Enterprise Index. HR Academy and Lunch and Learns UnitedHealthcare and offers Ohio of the Ohio General Assembly. From Our HR Academy webinars and Chamber members savings of up to Ohio Chamber Health Benefit Program: that program, the Research Foundation Every week that the legislature is lunch and learns continue to provide 15 percent on health benefits. This issued a report in June, “Addressing the in session, we publish Legislative free human resources information. program is tailored to companies 1 Benefit Cliff in Ohio.” The foundation Update to keep members apprised of So far in 2019, we have hosted six with two to 50 employees. More Savings up to 15% for small business members. is currently looking at undertaking what is happening at the Statehouse webinars and five lunch and learns, information is available at www. a study on Ohio’s Unemployment that could impact their business. If with many approved for CLE, HRCI ohiochamber.com, then click on the As a chamber member, your small business joins with other small Compensation system. you are not receiving it, please email and SHRM credits. Learn More icon on the page. [email protected]. Our It’s been a busy year at the Ohio NEW CHAIRMAN website also contains a bill tracking DOSE OF REALITY businesses throughout Ohio, giving you the ability to offer health plan Chamber of Commerce, and it’s busy TAKES THE HELM feature so members can track our OPIOID TOOLKIT because we are serving more members benefits that rival those of larger companies. At this year’s Annual Meeting, Jeff priority bills as they move through the Our Opioid Toolkit continued to get than ever. As of Nov. 4, we have added Walters, president of CBIZ Accounting legislative process. national attention as the U.S. Chamber & Tax Advisory Services in Akron, was of Commerce Foundation placed it on 484 members, and we appreciate all of elected chairman of the Ohio Chamber OHIO CHAMBER EVENTS its Sharing Solutions website. In July, our members, from the ones who have of Commerce Board of Directors. Annual Meeting & Legislative we hosted a national panel discussion just joined to those who have been with Greater Savings He has been an active member since Reception on what employers can do to help us since 1893. As we look toward 2020, Small business Ohio Chamber members may save up to 15% on health benefits. the 1980s, when he attended his first In May, we changed the format of the combat the opioid crisis. We also we will continue to be the advocate for Ohio Small Business Council (OSBC) Annual Meeting. Our speaker was partnered with eight local chambers to Ohio’s job creators at the Statehouse, meeting. He served as chair of OSBC Daymond John from TV’s Shark Tank. host informational seminars on opioids while also providing member benefits in 2000 and has been on our board of After he participated in a fireside chat in the workplace. Finally, the state that support them. Here’s to continued directors since. Walters will serve a with former Ohio Chamber Chairman chambers in Indiana and Arkansas success for all of us. Greater Access two-year term as chairman. Linda Hondros, we created our own have adopted our toolkit to meet their Over 73,000 Ohio-based health care providers, along with 24/7 online doctor visits. TAKE ADVANTAGE OF YOUR MEMBER BENEFITS Greater Convenience and Control As an Ohio Chamber member, you Committees. Members on our eight and Supreme Court and educate INFORMATION Give employees access to case advocates and mobile tools to more easily have access to a wide variety of policy committees play an active role Ohioans about business-related Staying informed is vital to your make informed decisions. member benefits. We are constantly in determining the legislation we statewide issues. business. Our diverse communication refining the benefits to align with our follow. platforms keep you up-to-date with member needs. If you have questions Access to elected officials. Our firsthand information that affects your about what is available to you as an Five subject matter specialists. office is directly across the street business in real time. Ohio Chamber member, please contact Our governmental affairs staff from the statehouse, and we build us at (614) 228-4201. members are knowledgeable in relationships that bring results. Ohio Matters. This membership For more information, visit ohiochamber.com and click on “Learn More.” specific issue areas. publication is mailed to all members LEGISLATIVE Online bill tracking. Members can every other month and contains Drawing on the vast experience of the Legislative expertise. Since 1893, follow the status of the top bills we are legislative, political and business largest business advocacy group in we have been the voice for business at following. information. the statehouse. Ohio, our multifaceted governmental We Free Enterprise Index ratings. Legislative Update. Published every affairs experts provide a direct Political and grassroots advocacy. track how legislators voted on the bills opportunity to shape policy at the Monday when the legislature is in We identify the pro-jobs candidates we are following so we know who truly session, this is emailed to all members state level. running for the Ohio House, Senate supports the free enterprise system. 1 Savings based on Q2 2019 UnitedHealthcare analysis for average price comparison between UnitedHealthcare plans in Ohio. Continued on page 4 The Ohio Chamber of Commerce Health Benefit Program is a self-funded health benefits program. B2B 9254192 9/19 © 2019 United HealthCare Services, Inc. 19-12086

WWW.OHIOCHAMBER.COM 3 NOVEMBER/DECEMBER 2019

TAKE ADVANTAGE OF YOUR MEMBER BENEFITS Continued from page 3 OHIO’S TECHCRED PROGRAM and members of the Ohio House and HELPS PREPARE WORKERS Senate. We constantly look Chamber Update. This monthly FOR TECHNOLOGY JOBS email lets our members know what for new ways to is happening at the Ohio Chamber of help our members In Ohio, it’s predicted that the Commerce. mismatch between jobs and talent will be up to 650,000 open positions All for Ohio blog. As news is save money. happening at the statehouse, our team by 2028. This means more people members are writing about it and need to be trained with in-demand training provider, employers can apply posting it on our www.allforohio.com skills in some of the fastest-growing on topics such as energy, taxes, online at TechCred.Ohio.gov. The state blog. occupations. health care, etc. will reimburse up to $2,000 of training In September, Ohio Lt. Gov. Jon HR Academy. We partner with the EXCLUSIVES upon completion of a credential. top human resources attorneys from Husted launched TechCred, a One of the most common issues Businesses must identify employees, across the state to bring our members program that connects businesses we hear from our members is credentialing programs and training free human resources information in with the talent they need and gives shrinking profit margins. We providers who offer the desired the way of webinars, lunch and learns employees the ability to earn industry- constantly look for new ways to programs before submitting an and Ohio Matters articles. recognized, technology-focused help our members save money. credentials, preparing them for a job in application. Ohio companies Social media. The Ohio Chamber Workers’ compensation group today’s advanced, technology-infused interested in investing in their of Commerce has a social media rating. Savings through our economy. TechCred is a win-win current or prospective employees by presence on Facebook, Twitter, member CareWorks for Ohio — businesses get the talent connecting them with technology- Instagram and LinkedIn, so follow us. they need, and Ohioans get the skills focused credentials can apply. Cost-saving medical benefits. needed to gain better opportunities. EVENTS Including health, dental, vision and An initial list of eligible credentials is Our events keep you informed and group life There are hundreds of thousands of provided, but employers can request connected, giving you the opportunity technology-related jobs, but fewer than that a credential be added to the list to meet and network with fellow SPONSORSHIPS half are in the technology industry. by submitting an application for members, elected officials and Membership grants you the oppor- The remainder of technology-related TechCred. To qualify for TechCred, other members of Ohio’s business tunity for visibility by presenting jobs are in industries including credentials must be industry community. featured content directly to fellow construction, manufacturing and recognized, technology focused and member businesses on our diverse agriculture. TechCred helps workers short term. Annual Meeting. Held every spring, channels. in any industry retrain to meet the TechCred was developed in a this event features a well-known changing demands of technology. speaker addressing business or • Branding options partnership among the Governor’s political topics. This is followed by our • Articles in Ohio Matters IBM recently released a study Office of Workforce Transformation, Legislative Reception honoring the that found that 120 million people the Development Services Agency members of Ohio’s General Assembly. • Blogs on All for Ohio worldwide will need to retrain in the and the Ohio Department of Higher • Educational webinars next three years in order to be ready to Education. It fulfills a commitment Policy Conference at Salt Fork. work with automation. TechCred does made by Gov. Mike DeWine and • Lunch and learns Held every other year, this event just that by upskilling and retraining Husted to fund the completion of brings together governmental affairs • Event sponsorships those who are currently employed, or 10,000 micro-degrees each year in professionals and members of the We are constantly adding new who will be employed, and helps them order to help close the skills gap for Ohio Legislature to discuss issues learn in-demand technology skills. growing technology jobs. impacting our state. services and improving existing services for the benefit of our Through TechCred, businesses can The first application period for Educational seminars. In members. When new programs are identify the specific qualifications TechCred closed on Oct. 31. To learn partnership with the Manufacturers’ added, we promote them in Ohio they need and employees they want about upcoming application periods Education Council, educational Matters, on our website, in social to upskill toward a more advanced and how to apply, visit TechCred. seminars are held throughout the year media and Chamber Update. position. In partnership with a Ohio.gov.

COMMON SENSE INITIATIVE LOOKS TOWARD NEW TECHNOLOGY TO AID IN REGULATORY REFORM When agency regulation is seen as an With the help of the CSI, changes in “You can’t keep saying we want fewer obstacle to a student’s innovation and Ohio laws were made regarding new regulations and then keep passing drive, it’s time for a change, according technology and prosthetic devices. laws that require more regulations,” to the Common Sense Initiative (CSI), Westbrook’s story acts as motivation says Husted. “We’re hoping through an effort led by Lt. Gov. Jon Husted for the CSI as it continues its the work we’re doing we can help aimed toward propelling economic mission to give businesses a voice in rationalize the process.” growth in Ohio through regulatory the world of regulation. To minimize the number of reform. The CSI reviews rules and erroneous or repetitive rules going When Aaron Westbrook, a then- regulations to help businesses through review, the CSI is looking to organization this time last year. student at New Albany High School, navigate regulatory obstacles, implement a machine-learning tool, This proactive attitude comes after needed a prosthetic arm and hand, he putting responsibility on state or AI (artificial intelligence) tool, an overwhelming backlog left by created one himself using a 3D printer agencies to create reasonable that will help go through the revised the previous administration. When and administrative code and identify at his school. It quickly snowballed and rational rules that encourage Husted took over earlier this year, the unnecessary regulations. These into the nonprofit Form5 Prosthetics, economic growth in the state. CSI had a backlog of over 1,200 rules; regulations could then be brought to an organization that creates eco- Since its beginning in 2011 under within the first 100 days, the log had the legislature for review. friendly prosthetics for individuals former Gov. John Kasich, the CSI been cleared. with congenital and other limb has reviewed about 15,000 state “We want to be able to use it to put differences using 3D printing. “We hired some good people, and we together a priority list that we can agency regulations, and about 9,000 went to work,” says Husted. “We were take to the legislature and say, ‘These of those were identified as potential However, Ohio is one of about 15 committed. We cleared the backlog regulations are duplicative, they’re obstacles to Ohio businesses. states that requires a license to and now we’re playing offense to unnecessary and, if you’re really The regulations identified have practice prosthetics, and when these fulfill the promise that the business interested in regulatory reform, let’s since been amended or rescinded. regulations posed an obstacle to the community wants from government — get rid of them,’” says Husted. nonprofit, the CSI stepped in. This is why the Ohio Chamber fewer regulations.” of Commerce has supported CSI The tool is not currently in place and “He was doing something that was legislation since it was introduced, However, the strong voice in the is relatively new among other states. helping people,” says Husted. “These as too many regulations were business community and legislature While a few government offices at the regulations were made before 3D stifling business growth. calling for fewer regulations, state and federal level have explored printing existed. Technology is juxtaposed with the continued passing similar technology, the CSI hopes changing the way people live and do The CSI has reviewed 2,269 rules of bills giving agencies delegation over to be a leader in it and is looking things, and regulations need to change this year alone, almost doubling regulation, led to inconsistent trends toward the coming year to finalize its along with it.” the number reviewed by the for the CSI when reviewing rules. acquisition.

4 SHARE SUCCESS.

By Tony Long, Director, Tax & Economic Policy COST ANNUAL MEETING: CONNECTION TO STATE CHAMBERS

I was fortunate to attend pie under uniform rules, begin to apply and participate in the their specific rules to divide the pie in a 50th annual meeting of manner that is most advantageous for the Council on State their state. Taxation (COST). This organization was created In the end, your company may now be required to get a bigger pie tin to out of concerns about unfair state help the business community. This individuals and the determination enlarge the pie, or more simply, bake taxation burdens raised by businesses council eventually spun out of the of the corporate and pass-through a second pie to fulfill the requests of through individual state chambers of chamber and is now known as COST. business state income tax burdens the various states. Remember that the commerce to the Council of State to find the effective tax rates, to states, in theory, agreed that the total Chambers of Commerce. More on this In the beginning, the primary focus name a few. This year, the COST tax burden was the original pie cooling in a bit. First an illustration of the state was fighting the unfair tax burdens scorecard on Real Property Valuation on that factory table. tax concerns raised by businesses. assessed against multistate businesses Administration gave Ohio a grade of in the halls of various state legislatures D+. This scorecard is a great tool as the For this article, let us assume you In tax speak, what has happened is a and in the court rooms, both state and Ohio Chamber advocates for changes run a baking supply and baked goods mismatch of income apportionment federal. It has been a long and arduous to the real property statutes to improve company. This company, through rules that may include: fight, and it continues to this day. the Ohio score that, in turn, creates a several subsidiary companies, has • The use of a rule that forced the better business climate for Ohio. a presence in several states. These combination of subsidiaries Since its humble beginnings, COST has expanded its scope of subsidiaries conduct manufacturing • A rule requirement that the In conclusion, I personally look services. COST has grown into a activities in two states, use distribution companies file standalone returns forward to the Thursday legislative facilities in those same states plus great resource for the entire state update calls, the opportunity to present • Requirements to use different two others and the company has retail and local tax community. It now Ohio legislative activities at regional operations in those four plus four apportionment factors (single sales provides educational opportunities COST meetings held at member others. Finally, the company employs factor, double or triple weighted for tax practitioners, continues its company sites and networking with an outside sales force in two additional sales factor, elimination of or use legislative advocacy, adds its voice in other state chambers at the annual states, bringing the company’s total of special weighting for payroll and the court rooms with amicus briefs COST conference. Meeting with presence to 10 states. property apportionment factors) and publishes general research tools colleagues across the country is an • The application of special rules that for use by its members. If any reader excellent way to stay up to date on Through the magic of Excel allow the use of a secret alternative would like to attend the basic or news, trends and court decisions. spreadsheets and the hard work of apportionment method advance SALT (state and local tax) the accounting and tax departments, school, please let me know. In the end, COST is a great partner the company is able to determine that As businesses faced this cacophony of and ally of the Ohio Chamber as the total state and local tax burden is rules and regulations, both during tax The publications from COST help we champion free enterprise and equal to, for illustrative purposes, a return audits and then at appeal levels answer questions that arise during economic competitiveness and standard sized pie that is cooling on including court filings, they turned to legislative debates, such as the advocate for a state tax burden that a table at the factory. So far, so good. their chambers of commerce for help. impact of taxing business inputs, the does not grow beyond the pie cooling The trouble begins when each of the 10 The Council of State Chambers decided calculation of the percentage of state on that factory table. states, not required to fairly divide the to create a council of state taxation to taxes raised from business versus

OHIO EXCELS WORKS TO STRENGTHEN EDUCATION AND CREATE NEW WAYS FOR BUSINESSES TO GET INVOLVED

Many Ohio businesses large and small year and find new ways to bring the The new requirements also emphasize postsecondary degree, certificate or can take justifiable pride in their education and business community career preparation. some other postsecondary credential long-time advocacy for the quality together to help prepare students for of value in the workforce. Ohio’s of education in Ohio. The business success. There are two areas where “Approximately 30 percent of high attainment rate is much too low, leaving community’s support for education this work can start right away — high school graduates go on to complete too many job openings unfilled and Ohio excellence took a major step forward school graduation requirements and college, so it is critical for students at a competitive disadvantage compared in October 2018 with the creation of postsecondary attainment. and Ohio’s economy that students are to other states. Left unaddressed, this Ohio Excels, a statewide, education- prepared to be successful in an in- skills gap will only widen. focused consortium of business NEW HIGH SCHOOL demand job,” says Lisa Gray, president leaders. Ohio Excels seeks to bring GRADUATION REQUIREMENTS of Ohio Excels. Ohio Excels is leading a coalition the unique voice of the business Passage and implementation of the of nearly 40 state and regional new graduation requirements meet The new requirements allow organizations to focus on one goal — community to state education policy students to use options like industry discussions affecting students of a long-sought goal of Ohio education, increasing the number of Ohioans civic and business leaders — everyone credentials, apprenticeships, earning a postsecondary degree all ages, including students in early internships and technical assessments childhood, K-12 and higher education. with a stake in quality education and or credential. In the coming year, the preparation of young Ohioans to show they are ready to graduate. this coalition will hold regional The past year has been a busy and for higher education and careers. These options give more students conversations on what skills employers exciting time for Ohio Excels. Graduating seniors in the class of greater flexibility. However, students need and how businesses can • Ohio Excels partnered with the 2023 (this fall’s ninth graders) will will need the business community to get collaborate with educators to help Governor’s Office of Workforce be the first to be fully affected by the involved even more for the graduation close the skills gap. Keep an eye out this Transformation to host the new requirements, while students requirements to be successful. spring and summer for nearby events. in the classes of 2021 and 2022 will Aim Hire Conference to start The debut year of Ohio Excels has seen conversations about bridging the have additional graduation options as “If your business wants to help schools make the transition. prepare local students and develop a impressive progress toward meeting gap between Ohio’s education and our commitment to improve education workforce systems. talent pipeline, now is the right time These new requirements will allow to engage your local school district in Ohio. • Ohio Excels led a coalition of a high school student to earn an to see how you can work together to “The goal for Ohio Excels’ second year business and education partners to Ohio diploma by completing their increase student success,” says Kevin develop and successfully advocate required coursework, demonstrating is to get even more business leaders Duff, director of Policy and Research connected to educators at the state and for new, long-term high school competency in mathematics and at Ohio Excels. graduation requirements. English language arts and preparing local level so we can prepare students for college or a career. This plan calls EDUCATIONAL ATTAINMENT to meet the demands of our evolving • Ohio Excels took charge of a economy,” says Gray. statewide effort to close the skills for additional supports for students, TO PROVIDE A WELL- gap and increase the educational reduces the amount of state testing, PREPARED WORKFORCE For more information about Ohio attainment of Ohio’s students and adds non test-based avenues to earn a Ohio’s gap between job requirements Excels or how to get involved, visit www. workforce. diploma and ensures that graduating and jobseeker qualifications has OhioExcels.org, call (614) 897-0431 or students are better prepared to created an urgent need to increase email [email protected]. Ohio Excels is looking to build on succeed after high school. Ohio’s attainment — the number and these achievements in its second percentage of Ohioans who have a

WWW.OHIOCHAMBER.COM 5 NOVEMBER/DECEMBER 2019

By Anthony Lagunzad, Director, Political & Grassroots Program LEGISLATIVE APPOINTMENTS RING IN THE NEW YEAR WITH FILL HOUSE AND SENATE THE NATION’S LARGEST VACANCIES BUSINESS TAX CONFERENCE In between elections, especially at House District 63 — THIS JANUARY the state and local level, there isn’t a Rep. Gil Blair — D (Trumbull) lot of attention on seat vacancies and Another lawyer, Rep. Blair filled the appointments that occur outside of 63rd seat when former Rep. Glenn election season. When election season Holmes took an appointment in Gov. and the attention that comes with it Mike DeWine’s administration. Blair arrives, constituents sometimes find formerly was a municipal court judge themselves choosing whether or not to and assistant county prosecutor in re-elect an incumbent representative Trumbull County. whose name they haven’t seen on the ballot before. Here’s a list of the House District 76 — Ohio Legislature seats that have been Rep. Diane Grendell — R vacated and the new individuals (Geauga, Portage) holding those seats. Rep. Grendell replaced former Rep. Sarah LaTourette, who left office for House District 97 — a private sector job early this past Rep. Adam Holmes — R summer. Grendell previously served (Muskingum, Guernsey) in the Ohio House from 1992 to 2000, Rep. Holmes filled the vacancy as well as an Ohio Appeals Court judge The nation’s largest business tax conference is back to ring in the new left by former Rep. Brian Hill, who for 18 years. year. The Manufacturers’ Education Council’s 29th Annual Business Tax originally left his House seat for a Conference is Tuesday and Wednesday, Jan. 28-29, 2020. Attended by more Senate seat vacated by former Sen. House District 93 — than 15,000 corporate tax directors, CFOs and tax professionals over the years, Troy Balderson, who now represents Rep. Jason Stephens — R it offers an invaluable opportunity to speak with and learn from top leaders in the 12th Congressional District (Lawrence, Gallia, Jackson, the tax industry and gain insights on issues impacting the world of tax today. in Congress. Hill vacated the 20th Vinton) Rep. Stephens took the 93rd House Senate District seat earlier this year Tax experts from Ohio, Michigan, Kentucky, Indiana and Pennsylvania will for a private sector job. After his seat appointment after former Rep. Ryan Smith left to take on the role of serve as key leaders by offering information on major business tax issues. appointment, Holmes has remained The Ohio Department of Taxation’s new leadership team will serve as some as CEO of Frueh Enterprises, a president of Rio Grande University. Stephens was serving as Lawrence of the lineup speakers, including Tax Commissioner Jeff McClain, Deputy mechanical and industrial contracting Tax Commissioner and Chief Legal Counsel Sarah O’Leary, as well as leaders company based in Zanesville. He is County auditor when he was tapped to fill the seat, and he is a licensed from neighboring states, including Commissioner Daniel Bork at Kentucky’s also a veteran and graduate of the U.S. Department of Revenue and Commissioner Adam J. Krupp from the Indiana Naval Academy. insurance agent who owns his own agency. Department of Revenue. Business leaders from Ohio and nearby states will House District 3 — also serve as expert voices and featured presenters at the conference. Rep. Haraz Ghanbari — R (Wood) House District 29 — The conference will shed light on topics including the massive impact of Rep. Ghanbari filled this open seat Rep. Cindy Abrams — R technology on the tax field. Workshops discussing best practices for how to when former Rep. Theresa Gavarone (Hamilton) took the appointment to the 2nd Rep. Abrams took the 29th House seat successfully implement technology tools and solutions for businesses and how Senate District seat earlier this year. when Rep. Bill Blessing was appointed to use cloud-based services and handle electronic information will discuss Ghanbari served in the U.S. military in to the 8th Senate District seat this past how to stay competitive in today’s technology-driven world. both the Navy and Army over 17 years fall. Abrams is a former police officer and was serving on the Harrison Other key tax topics include major national issues in business taxation, such and continues to serve in the Navy as the taxation developments in California, New York, New Jersey and Oregon, Reserve. City Council when she received the appointment. as well as how states’ marketplaces are continuing to respond 18 months after House District 77 — the U.S. Supreme Court’s landmark ruling in South Dakota v. Wayfair. Topics Rep. Jeff LaRe — R (Fairfield) Senate District 20 — also include audit insights and best practices for compliance in sales tax, Rep. LaRe filled out the 77th House Sen. Tim Schaffer — R (Fairfield, taxation issues impacting manufacturers, construction contractors, nonprofit seat after former Rep. Tim Schaffer Pickaway, Hocking, Athens, organizations and health care and information on employment taxation and took the appointment to the 20th Morgan, Muskingum, Guernsey) taxation of pass-through entities. There will be sessions geared toward both Senate seat. LaRe came to the House Sen. Schaffer was appointed to the experienced and beginner professionals, so there is something for everyone. from the private sector, where he Senate from the House to fill out the runs a private security firm out of remaining term for former Sens. Troy Following last year, the conference will again feature two optional ethics Pickerington. Balderson and Brian Hill. and professionalism workshops for CPE and CLE credits for state tax professionals. The first session, “Ethics & Professionalism for Tax House District 89 — Senate District 14 — Professionals – Ethical Challenges in the Era of Stretching the Truth,” is 7 to Rep. DJ Swearingen — R Sen. Terry Johnson — R 8 a.m. Wednesday, Jan. 29. The second session, “The Art of the Deal … How to (Clermont, Brown, Adams, Scioto) (Erie, Ottawa) Negotiate Rulings & Agreements Ethically,” is the same day, 3:15 to 4:15 p.m. Rep. Swearingen was appointed to the Sen. Johnson is a retired veteran and 89th House Seat when former Rep. practicing medical doctor from Scioto Established in the early 1990s by the Ohio Chamber of Commerce and the Steve Arndt retired this past summer. County who replaced former Sen. Ohio Department of Taxation, the Business Tax Conference continues to serve Swearingen is a lawyer at Wickens, Joe Uecker, who stepped down for a as a must-attend event for those in the taxation world, giving industry leaders Herzer, Panza out of Sandusky. His DeWine administration role. Johnson and professionals valuable insights on tax developments at the federal, state firm primarily provides legal counsel previously served in the Ohio House and local levels while also providing the ability to earn educational credits. to family and privately owned for eight years. businesses. For more information and to register for this event, go to www.mecseminars.com and click Senate District 8 — on the ‘Taxation & Business’ tab at the top of the page. Sen. Louis “Bill” Blessing — R (Hamilton) Sen. Blessing was appointed to the 8th Senate seat from the House after Sen. Lou Terhar retired from the legislature this past fall. Blessing is an electrical engineer. 2020 SEMINARS Presented by the Manufacturers’ Education Council and the Ohio Chamber of Commerce

29th Annual Ohio Tax Conference 29th Annual Sustainability Tuesday, Jan. 28 & EHS Symposium Wednesday, Jan. 29 Tuesday, March 24 Held at the Hyatt Regency in downtown Wednesday, March 25 Columbus Held at the Sharonville Convention Center in Cincinnati 24th Annual Ohio Energy Management Conference For more information on these highly Tuesday, Feb. 18 regarded seminars, including agendas Wednesday, Feb. 19 and registration information, please go to www.mecseminars.com. Held at the Columbus Renaissance Hotel in downtown Columbus

6 STAY CONNECTED.

By Jim Yates and Sarah Pawlicki, attorneys Eastman & Smith Ltd. PREPARING FOR THE DOL’S OHIO CHAMBER OF COMMERCE WHITE-COLLAR EXEMPTION TEAM MEMBERS Our team members are here to serve you! Give us a call at (614) 228-4201, SALARY LEVEL INCREASES or email us, as we are here to help. The Department of Labor’s regulations Furthermore, employers may increasing salary levels for employees count nondiscretionary bonuses EXECUTIVE exempt from the Fair Labor Standards and incentive payments (including Andrew E. Doehrel, Kevin Shimp, Act’s overtime provisions are effective commissions) toward the salary level — President & CEO Director, Labor & Jan. 1, 2020. The salary level will but only up to 10 percent, or $3,556.80. adoehrel@ Legal Affairs increase to $684 per week (equating to If an employee does not earn enough in ohiochamber.com an annual salary of $35,568) from the a nondiscretionary bonus or incentive kshimp@ currently enforced salary level of $455 payments (to be paid on an annual or ohiochamber.com per week ($23,660 annually). more frequent basis), the new rule Ashley Brown, Tony Long, Director, permits an employer to make a catch- Tax & Economic The increase is significantly less up payment to satisfy the salary level Executive Assistant than the Department of Labor’s 2016 abrown@ Policy for the preceding year. tlong@ attempt to increase the salary level ohiochamber.com ohiochamber.com to $913 per week ($47,476 annually). For most employers, the current rule That rule was invalidated by a federal will be significantly less impactful Anthony Lagunzad, court and prompted the current than the invalidated 2016 rule, as far Jennifer Osburn, Director, Political & administration to revise the rule. fewer employees currently classified Vice President, Grassroots Programs The Department of Labor’s new rule as exempt will fall under the new Administration alagunzad@ formally rescinds the 2016 rule. $35,568 salary threshold, compared josburn@ ohiochamber.com to the $47,476 salary level contained ohiochamber.com To qualify for an exemption to the in the 2016 rule. However, employers Stephanie Kromer, Fair Labor Standards Act’s overtime still need to review salary levels Michelle Anderson, Director, Energy & requirements, in addition to meeting for all exempt employees to ensure Information Environmental Policy the increased salary level, an employee compliance with the new salary level. Specialist skromer@ must be paid on a salary basis — a manderson@ ohiochamber.com predetermined and fixed amount For employees with salaries lower than ohiochamber.com not subject to reductions based on the new requirement, employers need Sherry Heffner, the quality or quantity of the work to implement strategies to maintain COMMUNICATIONS Government Affairs Assistant performed — and the employee the exemptions or reclassify employees Julie Wagner Feasel, sheffner@ must satisfy the duties tests for as nonexempt and consider workplace Vice President, ohiochamber.com the administrative, executive or ramifications of those decisions, such Communications professional exemption, referred to as the impact on employee morale. jfeasel@ as white-collar exemptions. Paying an Options include reclassifying those ohiochamber.com MEMBERSHIP employee on a salary basis in excess of employees as nonexempt, converting Andrew the new salary level does not establish their salaries to hourly wages and paying Lillian van Piccolantonio, Vice an exemption without the employer overtime, maintaining the exemption Wyngaarden, President, demonstrating that the employee by increasing the salaries of the affected Communications Membership meets all of the required duties tests of employees and establishing a bonus Coordinator apiccolantonio@ lvanwyngaarden@ the specific exemption claimed. or incentive program in compliance ohiochamber.com ohiochamber.com with the new rules that would likely Scott Colby, The only exception to meeting all increase the salary of currently exempt Executive Director, of the duties tests is that a highly FOUNDATION employees above the new salary level. Ohio Chamber Health compensated employee (HCE) need Justin Barnes, All options have both advantages and Benefit Program only meet one of the duties tests of any Executive Director, disadvantages and may lead to additional scolby@ of the white-collar exemptions to be Ohio Research changes related to compensation and ohiochamber.com classified as an exempt employee. As pay-related policies and procedures. Foundation jbarnes@ of Jan. 1, 2020, an HCE is an employee Finally, employers should review all Justin Giaimo, ohiochamber.com who is paid a salary of at least current exemptions and update related Director, $107,432. (The currently enforced documents, including job descriptions, External Relations HCE salary level is $100,000.) relevant handbook provisions, GOVERNMENT AFFAIRS jgiaimo@ organizational charts, payroll, and time Keith Lake, Vice ohiochamber.com The final rule does not change the tracking policies and plans. President, duties tests or the salary basis test Government Affairs Justin Zink, and does not address compensable For more information regarding the klake@ Director, after-hours compensation. The rule implementation of strategies to comply with ohiochamber.com External Relations also does not provide for automatic the new rule, tune in to the Ohio Chamber’s jzink@ increases to the salary level which, webinar on this topic, presented by Eastman Kevin Boehner, ohiochamber.com along with more than doubling the & Smith Ltd., on Tuesday, Dec. 10, 2019. Director, Small Bill White, salary level, formed the basis of many Business & Director, External employer objections to the 2016 rule. Jim Yates and Sarah Pawlicki are Workforce Policy Relations Instead, the Department of Labor Members of Eastman & Smith Ltd.’s kboehner@ bwhite@ committed to updating the salary level Labor and Employment practice group ohiochamber.com and SHRM Certified Senior Professionals ohiochamber.com “more regularly in the future.” (The last who represent employers in labor and update was 2004.) employment matters.

We welcome the following new members to the Ohio Chamber of Commerce. These companies joined the Ohio Chamber NEW MEMBERS between Sept. 20 to Nov. 4, 2019. We look forward to working with all of these companies as they are #allforohio.

2X Transportation LLC, Wintersville Cincinnati Kitchens Inc., Maineville Marsh & McLennan Agency, Dayton Sheakley UniService, Cincinnati ABP Insurance Agency, Dublin Cleveland Ballet, Bedford Heights Miami Woodworking Inc., Maineville SK Truck Service LLC, Sidney Advantage Flooring Services Ltd., Columbus Columbus Asphalt Paving, Gahanna New Millennium Painting, Westerville Steam Brite LLC, Fairborn Ashbaugh Maintenance and Remodeling, Computers Universal Inc., Fairborn Northpointe Cabinetry LLC, Zanesville Strategic Business Services Agency, Granville Crawford Mechanical Services, Columbus Oswald Companies, Cleveland Worthington AssuredPartners of Ohio, Richfield CT5 Logistics, Hamilton Preferred Benefits Planning Inc., Westerville The Ashley Group, Sandusky Beery Insurance Services LLC, Lima Digestive Endoscopy Center LLC, Kettering RL Engle Agency, Washington Court House The Cincinnati Air Conditioning Co., Cincinnati Benefit Administrators, Powell Donald Didion II, Bellevue Robert L Fry & Associates Inc., West Jefferson The Fedeli Group, Independence Benefit Mall, Worthington Facebook, Menlo Park, California Roche Diabetes Care Inc., South San Francisco, Todd Associates Inc., Beachwood Bj&D LLC, Fairborn Falcon Enterprises Inc., Dublin California U.S. Employee Benefits Services Group, Dayton Broadcast Sports International LLC, Hanover H.W. Martin & Son Co., Hebron Roth Construction Columbus, Hilliard Wally’s Landscape, Streetsboro Brown & Brown of Ohio LLC, Perrysburg Haughn & Associates, Dublin Savage & Associates, Maumee Waypoint Benefit Solutions, Dublin Busha-Okeson Insurance, Beachwood Hummel Group Inc., Orrville Schweller Electric LLC, Paulding WM. Brockman & Sons Inc., Dayton Business Benefits Insurance Solutions, Ft. Infinite Vapor USA LLC, Toledo Scott Wesney Construction LLC, Gahanna Mitchell, Kentucky Zito Insurance Agency, Mentor Irvin-Alan Excavating Inc., Maineville SECORE International, Hilliard Capital City Group, Columbus JD Weaver, LLC dba Zoup!, Westerville Sense Diagnostics Inc., Cincinnati

WWW.OHIOCHAMBER.COM 7 EDUCATION AND WORKFORCE GO HAND IN HAND

When you think of education policy, the Governor’s Office of Workforce get involved in your own communities you might think, “What does that have Transformation to act as a liaison by becoming active on your local school to do with my business and my day-to- between the business community and district’s Business Advisory Council. day struggles to make a profit?” the Ohio Department of Education (ODE) or Chancellor of Higher We supported the establishment of Well, it has a lot to do with business Education (ODHE) with regard to these councils in the last biennial success, as education is directly industry-recognized credentials or budget, as they foster cooperation tied to our workforce. We have two certificate programs. Although this is among schools, businesses and the committees that continue to follow already going on between businesses communities they serve. Business education legislation — the Education and ODE or ODHE, we believe that Advisory Councils are made up of & Workforce Development Committee codifying this process will be helpful. regional business leaders who are and the Ohio Small Business Council. familiar with business and industry And this fall, there has been movement We also support Senate Bill 181, another needs. The members partner with on several education/workforce bills workforce and education bill. This bill school district leaders to plan and that we support. requires ODHE to create a template carry out the council’s work. Business for workforce-education partnership leaders interested in serving on their House Bill 2 creates Ohio’s TechCred programs between an institution of local school district’s business council Program and is one of our Key Votes higher education and an employer. It should contact their local school this legislative session. The votes for has the potential to assist employers district or career technical center. the bill will be included in our Free with filling those workforce shortages Enterprise Index. The legislation has in a potentially creative manner. There We know the quality of our labor bipartisan support. is also the potential to drive down pool is a high priority for Ohio’s job TechCred assists employers with the burden that student loans put on creators, which is why we place filling existing workforce vacancies individuals pursuing higher education such an emphasis on it. If you would within their companies and allows — a win-win for all involved. like additional information on the employers to “upskill” their current education and workforce legislation employees. The program reimburses During the last legislative session, that we are following, please contact employers for costs associated with we supported Ohio’s new graduation Director of Small Business & current or prospective employees requirements, OhioMeansJobs Workforce Policy Kevin Boehner at earning microcredentials. Even though Readiness Seal for high school graduates [email protected], or (614) the newly created program is up and and a financial literacy class as a high 629-0924. running, HB 2 codifies the process and school graduation requirement. provides more guidelines as to how the Ohio employers depend upon a well- program will be administered. educated, prepared workforce, which We also support House Bill 4, an is why we support legislation that Industry Credentials bill. HB 4 requires strengthens the talent pipeline. You can

EDITORIAL POLICY POSTMASTER OHIO CHAMBER OF COMMERCE DESIGN AND PRODUCTION Articles written by guest columnists do not necessarily reflect the Please send address changes to 34 S. Third Street, Suite 100 Ohio Matters is published by position of the Ohio Chamber of Commerce. The Chamber’s position on Ohio Matters, Columbus, OH 43215 Convero key issues will be clearly stated. The Ohio Chamber of Commerce does Attn: Database Manager, 614.228.4201 • 800.622.1893 835 Sharon Drive, Suite 200 not necessarily endorse the products and services advertised in Ohio Ohio Chamber of Commerce, Fax 614.228.6403 Cleveland, OH 44145 Matters. Articles can be reproduced, but only with permission from, and 34 S. Third St., Suite 100 [email protected] 844-428-8844 • www.converoinc.com attribution given to, the Ohio Chamber of Commerce. For authorization, Columbus, Ohio 43215 www.ohiochamber.com Sue Ostrowski, Managing Editor please contact Ohio Chamber Vice President of Communications Julie www.ohiobusinessvotes.com Amanda Horvath, Art Director Wagner Feasel at 614.228.4201. The Chamber reserves the right to FOR MORE INFORMATION CONTACT reject advertising based on content and does not accept advertising Julie Wagner Feasel Katie Janoch, Advertising Sales that is in conflict with a position of the Chamber. Vice President of Communications 440.250.7073 • [email protected] [email protected] Ohio Matters is a bimonthly publication for members of the Ohio Chamber of Commerce. Subscription cost is included with annual dues.

A Dose of Reality for Employers:

A FREE online toolkit to help mitigate the risks associated with Ohio’s opioid crisis. This toolkit is available to all companies in Ohio. We encourage everyone to use and share the information.

www.ohiochamber.com/opioid-toolkit

For more information, contact Julie Wagner

Feasel at the Ohio Chamber of Commerce at #ALLFOROHIO [email protected] or 614-228-4201.

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