OHIOCHAMBER.COM MARCH / APRIL 2016

GET INFORMED. 1

Former Speaker of the U.S. House John Boehner to speak at Annual Meeting Highlights of Ohio’s Common Sense Initiative Ohio small businesses get help to meet clean air rules

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Medical research It’s time to fix Ohio’s broken unemployment system Employers — the Employment Law Uniformity Act needs your support True-up coming in July State commission studying Ohio tax policy with a view to 2020

STAY CONNECTED. 6 An Official Publication of The Ohio Chamber of Commerce The Ohio Chamber in action Getting it right Letter from President & CEO

FORMER SPEAKER OF THE U.S. HOUSE JOHN BOEHNER TO SPEAK AT ANNUAL MEETING

The list of distinguished speakers While working to pay his way for the Ohio Chamber’s Annual through Xavier University, he met Meeting just got longer with the Debbie, who would become his wife addition of former Speaker of the of 41 years. Upon graduation from U.S. House John Boehner. He joins Xavier in 1977, Boehner took a job a list that includes George H. W. in a small plastics and packaging Bush, Colin Powell, Rudy Giuliani, company in the Cincinnati area. He and the Workforce, he wrote then Annual Meeting. The cost Tom Brokaw, Bob Woodward, Carly excelled in business, was steadily legislation to expand school choice, is $125, with special pricing for Fiorina and Jeb Bush. This will be promoted and reached the position strengthen America’s pension local chambers. his first major speaking event since of president before resigning in 1990 system and reform the federal retiring from the House in October. when he was elected to Congress. education bureaucracy to demand “The Ohio Chamber’s Annual This year’s event is April 5, 2016, at results for students and parents. Meeting is a valuable and enjoyable the Capitol Theatre. He got involved in state and local day of networking with other politics after seeing firsthand how Elected as House majority leader companies, along with legislators,” “We have strived to make our high taxes and red tape can impact in 2006 and chosen to become says Vice President, Membership Annual Meeting the premier entrepreneurs. Boehner served House Republican leader later that Beau Euton. “This year, we are business event of the year,” says on the Union Township board of year, Boehner led the opposition especially excited to have Speaker Ohio Chamber President and CEO trustees from 1981 to 1984 and was to job-crushing proposals such as Boehner as our keynote. Many have Andrew E. Doehrel. “Each year, then elected to the Ohio House, President Barack Obama’s cap and worked with him since his days at we come up with a list of who’s where he served from 1985 to 1990. trade initiative and the Affordable the statehouse, and we look forward who when it comes to speakers the Care Act while promoting better to hearing from him. I know it’s business community would like to In 1990, the voters sent him to the solutions to the challenges facing difficult to walk away from your hear. We’ve been very fortunate to U.S. House, where he took a strong American families. On Jan. 5, business for a day, but I guarantee get these top names year after year.” stand against pork-barrel spending, 2011, Boehner took the gavel as the Ohio Chamber’s 2016 Annual and as part of the reform-minded speaker of the House following the Meeting will be worth your time.” A former businessman, Boehner Gang of Seven forced the closure of historic 2010 election in which served as speaker of the United the scandal-ridden House Bank and Congressional Republicans, under States House of Representatives House Post Office. Boehner’s leadership, picked up QUICK GLANCE for nearly five years, during which 63 seats in the U.S. House. he led the drive for a smaller, less The speaker’s reputation as a costly and more accountable federal reformer grew as he worked Armed with the Pledge to America, government. The son of a bartender alongside then-House Speaker Newt a new governing agenda reflecting Annual and second oldest of 12 brothers and Gingrich, helping craft the historic the priorities of the American sisters, he grew up mopping floors 1994 Contract with America and people, Boehner focused on Meeting at the family tavern and playing helping to lead the effort to enact removing government barriers to football at Cincinnati Moeller the first balanced federal budget in private-sector job creation and Agenda High School. a generation. Later, as chairman of economic growth, addressing the House Committee on Education the drivers of America’s debt, 1 p.m. Chamber Day at the Capitol eliminating pork-barrel earmarks, program for local chambers and reforming Congress and rebuilding their members in Studio 2 of the the bonds of trust between the Riffe Center American people and their representatives in Washington. 3:30 p.m. Ohio Chamber Annual Meeting with keynote former Boehner’s keynote address will Speaker John Boehner in the focus on his business and political Capitol Theatre of the Riffe Center experience. After he delivers his keynote address, he will take 5 p.m. Awards presentation for questions from the audience. Chamber Action Alliance

Registration information is 5:30 p.m. Legislative reception at the available at www.ohiochamber.com, Sheraton Hotel on State Street then click on Benefits & Events,

WWW.OHIOCHAMBER.COM 1 You work to develop committed employees. We all work to see better outcomes. We’ll provide the resources to get you there.

WE’RE ALL FOR OHIO. Working with some of Ohio’s best human resources attorneys, the Ohio Chamber built the HR Academy to help our members and the larger business community stay updated on important local and national HR issues. We continue to see strong participation in the program, garnering up to 200 participants per webinar, selling hundreds of HR books and enjoying active engagement in our HR Symposium series. We are proud to offer this homegrown effort that brings together Ohio expertise and leadership.

Watch for more webinars and symposiums coming this year!

For more information, contact Michelle Donovan at [email protected] or 614-228-4201. www.hracademyohio.com #allforohio GET INFORMED.

By Mary Taylor, Lieutenant Governor By Chadwick Smith, Executive Director, Ohio Air Quality Development Authority HIGHLIGHTS OF OHIO’S OHIO SMALL COMMON SENSE INITIATIVE BUSINESSES GET

When Gov. John Kasich Strategy 3. Implement a communication created Ohio’s Common plan to promote a two-way dialogue. HELP TO MEET Sense Initiative (CSI) in Effectively communicating the resource 2011, he placed it under that CSI represents to the business my leadership, and since community and hearing the community’s CLEAN AIR RULES that time we have been feedback remains a focus for us. Over the working to make Ohio’s course of 2015, we have developed a more business regulations simpler and Ohio more formalized communication plan to increase business friendly. outreach activity to Ohio businesses through multiple channels, both directly The core principles of CSI state regulations and through business associations. We are should be fair, transparent, easily followed excited to continue moving the bar in 2016 and facilitate economic growth. With those with calculated outreach efforts. The goal principles in mind, last year we updated our is to increase awareness as well as create a strategic plan to ensure CSI is maximizing positive experience. its impact on Ohio’s regulatory business climate. We have just published CSI’s 2015 Strategy 4. Utilize the Small Business Annual Report, and in it, we describe a Advisory Council to represent the number of accomplishments. business community. We continue to identify innovative ways the Small JDM Equipment used reprocessing equipment purchased with While our overall goal remains to reduce Business Advisory Council can increase its regulatory bureaucracy, the new strategic funding from the Clean Air Resource Center on the demolition of interaction with the business community. Veterans Memorial Auditorium in Columbus. The equipment crushes plan helps focus our objectives, introduces Having meetings on the road in local large pieces of concrete into a reusable stone product. new metrics to better measure our impact communities was a successful approach. and drives enhanced efforts to communicate The council convened in Wilmington and the role of CSI. This 2015 report represents Dayton and received positive feedback from Businesses in Ohio have a resource to help them our first year operating under the new both meetings. This provided an opportunity comply with changing federal and state clean air strategic plan. for local businesses to hear directly from standards. Small businesses frequently face challenges The report highlights instances in which senior agency officials, as well as converse in navigating the rules and regulations. The Ohio CSI has been able to positively impact a directly with the council members to talk Air Quality Development Authority (OAQDA) has business, as well as explains metrics and about the regulatory issues that impact their a program designed specifically to assist small performance criteria. For example, since business operations. businesses with the requirements of the Clean Air Act 2012, CSI has reviewed more than 7,850 Amendments of 1990, which introduced air pollution Strategy 5. Assist businesses with business-impacting rules, with 59 percent regulations that, for the first time, included small regulatory issues and identify broader businesses. of those either being amended or rescinded. areas of concern. Last year, we received 84 This is clearly an example of how CSI suggestions and requests for assistance. The Clean Air Resource Center (CARC), a program is working to strike a balance between The CSI ombuds function has always been of OAQDA, was created in 1996 to provide grants and effective regulations that are not overly or measured largely through success stories lower-cost loans to small Ohio companies that need unnecessarily burdensome. Our primary that demonstrate the ability of my team to to purchase air quality equipment. CARC financing role is to make sure agency regulations are as get results for businesses facing real-world packages are structured to suit the needs of individual effective and business friendly as possible. regulatory obstacles. The stories outlined in projects and incentivized through conduit bonds The CSI Office tracks and measures both its this annual report emphasize CSI’s efforts issued by OAQDA. These bonds can be federally tax effectiveness in carrying out the strategies to assist businesses on all levels. We have exempt or taxable, and all are exempt from Ohio and the impact on accomplishing the attempted to help businesses reduce the income, real property, sales and use taxes for the term objectives. Recently, we distributed a survey impact of regulations without undermining of the financing. to see what businesses thought of Ohio’s the benefit of regulations to public health and safety. CARC offers grants equal to 30 percent of equipment regulatory climate and their awareness of costs post closing, capped at a maximum of available resources. That feedback was used My team and I remain committed to cutting $30,000. Specifically, these grants serve as a principal to help compile this annual report, which unnecessary red tape to create a business- payment on the equipment after it has been installed is organized into five strategies from the friendly climate in Ohio. We are seeing the and operational for at least six months. OAQDA strategic plan. results of these culture changes in several of also covers all reasonable closing costs and legal Strategy 1. Review business-impacting the metrics of this report and out in the field. fees. Qualifying businesses must have fewer than rules to ensure appropriate business Kasich and I have insisted regulatory reform 100 employees, emit less than 75 tons per year of all engagement, and balance the regulatory be a priority, and the leadership of our nine regulated air pollutants and emit 50 tons or less tons of purpose with economic impact. In 2015, Small Business Advisory Council members any regulated pollutant. CSI reviewed 2,316 rules, which were has helped keep the CSI Office focused on the issues that matter to the business community. Here are recent examples of projects funded through presented in 317 rule packages. Of these the CARC program. rules, 65 percent were either amended or There is much work yet to do, but it is clear rescinded. CSI is also operating at a high that significant progress has been made • Dent Magic, a Columbus area auto paint and body level of efficiency, ensuring that rules receive through the work of the Common Sense repair shop, is using $105,000 in revenue bond further work or scrutiny when needed, while Initiative, and the future of Ohio is strong financing through CARC to install a new paint rules that already meet our standards move and bright. Thank you for your help and booth to increase capacity. The new, larger paint through our review quickly. your ongoing cooperation. Together we can booth will enable Dent Magic paint teams to spray repaired vehicles and their disassembled parts Strategy 2. Develop partnerships accomplish great things for Ohio’s business community. together in one cycle, rather than in two separate with agencies and businesses to clearly cycles, thanks to the larger cabin size. The new implement CSI projects. We are seeing a booth features technology upgrades that improve continuing downward trend in the number of energy consumption and filtered air quality. recommendations and revisions to Business Impact Analyses, which means agencies • OAQDA supplied $2 million in revenue bonds are addressing and resolving more adverse to JDM Services LLC of Columbus to help the business impact issues prior to submitting company purchase equipment to remove concrete them to CSI. In 2015, the CSI Office initiated from the demolition of Veterans Memorial an additional focus to partner with agencies Auditorium in Columbus. on proactive, long-term initiatives intended to make Ohio more business friendly. Two Ohio small business owners want to comply with clean ongoing initiatives described in this report air standards and do their part to help preserve include the modernization of the Ohio Ohio’s environment. If you are interested in finding Business Gateway and the implementation out more about CARC assistance, contact OAQDA at of Ohio’s Global Reach to Engage Academic (614) 224-3383, or visit www.ohioairquality.org. Talent (GREAT).

WWW.OHIOCHAMBER.COM 3 MARCH/APRIL 2016

Walter E. Horton Jr., Ph.D., Vice President for Research, Dean, College of Graduate Studies, By Samantha Cotton, Director Public Policy Communications Professor, Anatomy & Neurobiology, Northeast Ohio Medical University MEDICAL RESEARCH IT’S TIME TO FIX Ohio’s key to healthy people and a healthy economy OHIO’S BROKEN

As Ohio’s leading sector, the biomedical industries are necessarily interdependent. industry plays an important role in the state’s The diverse group of industries and the equally UNEMPLOYMENT economy, and the resources to support the diverse work in medical research that benefits research being done by colleges, universities drug development, device manufacturing, SYSTEM and industries to advance societal health must biological, behavioral and genetic science, and continue to expand. new procedures and processes for practitioners Ohio’s Unemployment Trust Fund is broke, and the often go unseen. But it is there, happening every Unemployment Compensation (UC) system is broken. From protecting us against mosquito-borne day across the state. Now is the time to solve Ohio’s systemic issues with UC. pathogens such as the Zika virus or food-borne pathogens such as E. coli O26, Salmonella and Ohio’s colleges and universities have become Ohio is one of just four states with an outstanding Listeria, we constantly need new methods increasingly collaborative with hospitals debt to the federal government. The state owes more of detection, prevention and treatment, all and industry, preparing future health care than $770 million of the billions borrowed during the of which are made possible by the research professionals as practitioners in team-based last recession. This is not just an issue of failed public conducted by dedicated biomedical scientists, care. As a result, workforce development is policy; UC directly affects the bottom line of Ohio research that costs money as it saves lives. thriving in Ohio, with health care accounting employers. Employers are shouldering this debt by for nearly 1.3 million jobs in the state — more paying a 400 percent increase in federal unemployment The past year alone saw outbreaks of the three than any other industry. As total compensation taxes. Although the debt should be paid off in 2017, Ohio major food pathogens, outbreaks that infected for these health care jobs exceeds $60 billion cannot afford to repeat this pattern. several dozen people. In a coincidence, each of annually in Ohio, many see this front facing those outbreaks had some connection to people aspect of health care and the direct benefits to The Ohio Chamber recognizes that there is no simple or places in Ohio. Ohio’s economy. This positions Ohio well to solution to this issue. However, any plan to truly address the failures of UC must take a balanced approach. Rep. Ohio is also not isolated from the national trends deliver the outcomes of medical research to the people of the state.3 Barbara Sears has introduced House Bill 394 that would of increased incidence of chronic disease, a make comprehensive changes to the system. HB 394 result of the combined effects of lifestyle and Ohio is currently among the top tier of states makes changes to the amount of taxes paid into the an aging population. Nearly 60 percent of in key measures of bioscience R&D and system, while also lowering the number of weeks an Ohioans reported having at least one of the innovation, including academic R&D, NIH individual can receive benefits. The bill is a reasonable following 10 chronic diseases or clinical risk research funding and patenting, with the state’s solution to fixing the core issues with the system by factors — arthritis, asthma, cancer, chronic research universities obtaining $1 billion in looking at both employer taxes and benefits. kidney disease, COPD, diabetes, heart disease, funding each year.2 high cholesterol, high blood pressure and stroke1. Chronic diseases shorten lives, reduce Such funding not only directly supports colleges Employers are shouldering the quality of life and result in numerous poor and universities in advancing science and health outcomes, increased health care needs educating our future health care professionals, this debt by paying a 400 and higher medical costs. scientists and scholars, it also supports the biomedical research industry, producing jobs for percent increase in federal Although great work is being conducted many within the supply chain. to detect, prevent and treat cardiovascular unemployment taxes. disease, minimize the impact of arthritis and Ohio’s current economy, its future economy find new and innovative approaches to treating and the health and wellbeing of its citizens are neurological conditions such as Parkinson’s and increasingly dependent on medical research, The UC system is funded entirely by taxes on employers. Alzheimer’s disease, advancing science through and the threat of reduced federal funding, Neither the state nor employees pays any amount into research in these areas can be very expensive. particularly with the NIH, threatens our the fund. Opposition groups have said that the tax thriving economy. This is not only true in Ohio, increase in the bill should be higher. They claim that But disease is far more expensive, as medical but across the nation. costs associated with chronic diseases cost employers are not paying their fair share. This charge Ohioans more than $25 billion each year. LET’S TALK ABOUT IT is misleading given that the unemployment system is Medical research is the key to healthy people Join us June 6, 2016, as Research!America entirely employer funded. Employers are the only ones and a healthy economy. convenes nearly a dozen university presidents paying any share. across Ohio, C-level execs from leading biotech Concerns have also been raised that HB 394 does not A TEAM SPORT companies, research scientists, public officials, address the current debt being repaid to the federal Increasingly, medical research is a team sport experts in health care and executives from government. Although this bill does not address the succeeding through important relationships nationally ranked hospitals at a forum hosted debt, it overhauls the UC system so that the fund is between industry and academia. at Northeast Ohio Medical University. Titled solvent in the future. This bill will prevent employers “Medical Research, the Right Prescription A report prepared for the Biotechnology from facing this situation again. Industry Organization by the Battelle for Economic Growth,” the forum aims to Technology Partnership Practice, “Advancing increase advocacy for biomedical research while HB 394 is a balanced solution to a broke and broken Translational Research for Biomedical producing discourse and ideation that engages system. Now is the time to act, while employment is Innovation: Measuring Industry-Academic all for more public-private collaboration and stable and before the next economic downturn hits. To Connections,” found that one in eight industry- sourcing of funds to maximize the impact of do nothing would be irresponsible to future unemployed sponsored clinical trials has an academic medical research on Ohio’s economy and the workers and employers. institution as a cosponsor or collaborator. health of its citizens. To follow the progress of HB 394 in the Ohio General The report also noted an increase in multi- During the event, Research!America President Assembly, read our blog and social media updates, or visit institutional/multicompany collaborations.2 and CEO Mary Woolley will share and discuss www.ohiochamber.com. There are also several organizations that the results of a poll commissioned by the serve as advocates for the biomedical nonprofit organization to gain insight from research industry. Of particular note is Ohioans regarding their perceptions and Research!America (R!A). As the nation’s knowledge of impact biomedical research largest not-for-profit public education and on Ohio’s economy. A full release of the poll advocacy alliance, R!A is committed to making results will be made available the day after the research to improve health a higher national event ends. priority. R!A has more than 350 member Visit neomed.edu for more information. organizations that span the research spectrum 1. The Impact of Chronic Disease in Ohio: 2015. Chronic Disease from the lab bench to the bedside. Epidemiology and Evaluation Section, Bureau of Health Promotion, Ohio Department of Health, 2015. http://www.healthy.ohio.gov/~/ Ohio has the uniqueness of being a health media/HealthyOhio/ASSETS/Files/Chronic%20Disease%20Plan/ CD%20Burden%20Final_Webv2.pdf care epicenter that is also trending higher in 2. Advancing Translational Research for Biomedical Innovation: disease and chronic conditions, but that trend Measuring Industry-Academic Connections. Biotechnology Industry Organization, Battelle Technology Partnership Practice, 2015. https:// is reversible. The state has come into its own as www.bio.org/sites/default/files/BIOTrans_Report_6-11-15.pdf an incubator of innovation while embracing its 3. The Economic Impact of Hospitals in Ohio, April 2015. Ohio Hospital Association, 2015. http://ohiohospitals.org/OHA/media/Images/ manufacturing roots. Ohio’s biomedical sector News%20and%20Publications/Reports/Economic-Impact-Report- is thriving in basic, applied and translational Hospitals-Version-FINAL.pdf research, and the colleges, universities and

4 SHARE SUCCESS.

By Samantha Cotton, Director Public Policy Communications By Jon Hyman, Partner, Meyers, Roman, Friedberg & Lewis EMPLOYERS — THE EMPLOYMENT LAW UNIFORMITY ACT NEEDS YOUR SUPPORT

This bill presents a tangible opportunity to fix a broken law. Ohio’s current employment discrimination statute is so different TRUE-UP COMING from both its federal counterpart and the similar laws of other states that it places Ohio at a competitive IN JULY business disadvantage. By paralleling much of the federal employment Are you prepared for the next steps in discrimination statutes, S.B. 268 restores balance and predictability the new workers’ comp billing process? Ohio’s employment discrimination for Ohio employers while, at the law is broken. It exposes employers same time, preserving the crucial Ohio private employers have adjusted well to the new way the Ohio to claims for as long as six years. It right of employees to be free from Bureau of Workers’ Compensation (BWC) charges for workers’ renders managers and supervisors discrimination in the workplace. compensation coverage. Last year’s change to prospective billing brought personally liable for discrimination. Focusing on the elimination of a much-needed move to the standard insurance industry practice of It contains no less than four paths for individual liability for discrimination charging premiums in advance of extending coverage. employees to file age discrimination claims, vocal opponents of S.B. claims, each with different remedies Employers are now enjoying a number of benefits of the new billing 268 have already mislabeled this system, including more flexible payment options, better customer service and filing deadlines. It omits any legislation as “protecting sexual filing prerequisites with the state and a $1 billion premium credit provided by BWC to avoid double-billing predators, racists and bigots” and employers during the switch. civil rights agency. as “letting sexual harassers off the The recently introduced Senate Bill hook.” Nothing could be further However, the transition process is not fully complete. The payroll true-up 268 is a business-friendly attempt from the truth. The legislation is coming in July. leaves intact all common-law at comprehensive reform of Ohio’s True-up is a new process that requires employers to report actual payroll employment discrimination statute. remedies employees have if they are subjected to predatory behavior for the previous policy year and reconcile differences in premium It requires your attention and paid. This is an important step that is necessary for BWC to accurately support. in the workplace — assault, battery, intentional infliction of emotional calculate your premium. It’s also critically important to maintaining your Among its key reforms, S.B. 268: distress and invasion of privacy — policy and participation in your current rating plan or discount programs, along with the possibility criminal as the BWC will remove employers from their current rating plan or • Creates a universal 365- sanctions for the most egregious of discount program if it does not receive a payroll true-up by the due date. day statute of limitations misconduct. In addition, any outstanding payroll true-ups will render the employer for all employment discrimination ineligible for participation in future rating plans or discount programs claims S.B. 268 merely brings Ohio in until all outstanding payroll true-ups are complete. You must complete line with federal law and the law the true-up report even if your payroll for the year matches the estimate • Eliminates individual statutory of almost every other state on this you receive from BWC. liability for managers and issue. The risk of common-law civil supervisors liability and criminal sanctions is Your policy year 2015 payroll true-up notice will be sent July 1, and your more than a sufficient deterrent report is due Aug. 15. Reports must be submitted online at bwc.ohio.gov • Caps noneconomic and punitive to limit manager and supervisor or by phone at (800) 644-6292. damages based on the size of discrimination and harassment; the employer We encourage you to create an e-account that allows you to manage your piggy-backed statutory liability adds policy, pay bills and complete the payroll true-up, as our call center may nothing to this equation. • Unifies the filing of age experience heavy call volumes during the final weeks before the Aug. discrimination claims to the same S.B. 268 also harmonizes Ohio law 15 due date, contributing to longer wait times Learn how to create an procedures and remedies as all on the issue of individual liability, as e-account on our YouTube channel and visit bwc.ohio.gov to get started. other protected classes the Ohio Supreme Court has already If you already have an e-account but don’t remember your password or eliminated individual supervisor and • Requires individuals to elect are otherwise unable to access your account, contact our call center. between filing an administrative manager liability for public officials. charge with the Ohio Civil As a matter of policy, we should not Videos, webinars and other resources about prospective billing are Rights Commission or filing a hold our private-sector managers available at bwc.ohio.gov. discrimination lawsuit in court, and supervisors to a higher standard with the filing of the former tolling of accountability than their public- QUICK GLANCE the statute of limitations for servant counterparts. the latter Now comes the hard part — passing • Prioritizes mediation and this bill. If you believe S.B. 268 Upcoming dates to remember conciliation for all charges filed presents the necessary reform of a with the OCRC, such that all but broken system, call or email your May 2016 the most difficult of cases can state senator and urge him or her to May 1 – Policy year 2016 notice of estimated annual premium mailed support this bill. Passing S.B. 268 be resolved efficiently and cost May 31 – Destination: Excellence enrollment deadline for July 1, is a battle worth fighting to bring effectively 2016, program year meaningful reform to a broken • Establishes an affirmative defense system. Indeed, as an employer, June 2016 to claims not alleging an adverse, this is a battle that you cannot afford June 1 – Policy year 2016 premium invoice mailed tangible employment action, to ignore. when 1) the employer exercised July 2016 reasonable care to prevent or Jon Hyman is a partner in the Labor July 1 – Policy year 2016 first installment due & Employment group at Meyers, promptly correct the alleged July 1 – Policy year 2015 payroll true-up notice sent unlawful discriminatory practice Roman, Friedberg & Lewis. He is also or harassing behavior, and 2) the the author of the Ohio Employer’s Law August 2016 employee failed to take advantage Blog, which the ABA Journal recently Aug. 15 – Policy year 2015 payroll true-up report due of any preventive or corrective named to its legal blog Hall of Fame. opportunities provided by the November 2016 employer or to otherwise avoid the Nov. 21 – Policy year 2017 group-enrollment deadline alleged harm.

WWW.OHIOCHAMBER.COM 5 MARCH/APRIL 2016

By Dan Navin, Vice President, Tax & Economic Policy STATE COMMISSION STUDYING OHIO TAX POLICY WITH A VIEW TO 2020

Establishing a state’s tax structure several major changes to the based on either Ohio-apportioned happens over a fairly long period of corporation franchise tax, including sales, property and payroll or on time. The state’s economic strengths an alternative net income base and Ohio gross receipts, and, creating a and weaknesses, trends in population the repeal of the intangible personal uniform tax base for business net gains and losses, and the demands property tax. By the end of the next profits and a uniform withholding of its citizens for the state to provide two legislative sessions, some of base under the municipal income various services are among the key the key franchise tax reforms had tax. In 2005, the General Assembly factors in deciding the tax system’s passed and become law. passed, and Gov. Bob Taft signed, underlying foundation. Over time, House Bill 66, a comprehensive tax these factors or criteria change, In December 1982, the Joint reform that did repeal the TPP tax yielding different data points as to Committee to Study State Taxes over five years, while phasing in a where Ohio stands vis-à-vis the other made 38 recommended changes to new commercial activity tax (CAT) 49 states and other countries. Thus Ohio’s then-existing state and local on businesses based on Ohio gross a state’s tax system, to say nothing tax structure and budget allocations. receipts. In addition, the General of its tax rates, is in an almost A state’s tax system, to By 1985, Ohio was on track for a 10- Assembly and Gov. John Kasich year phase-down of the assessment made good on the municipal tax constant state of flux, study/analysis say nothing of its tax and revision. percentage of the business tangible recommendations by passing rates, is in an almost personal property (TPP) tax on in 2014 House Bill 5, legislation Therefore, it is no surprise that machinery and equipment, furniture for which the Ohio Chamber Ohio has established the 2020 constant state of flux, and fixtures, and inventory to 25 strongly advocated. Tax Policy Study Commission, percent of true value (from 35 composed of the Office of Budget study/analysis and percent), and the intangible personal As you can see, at least in the & Management Director Tim Keen revision. property tax was finally repealed. area of state and local tax policy, and six legislators, co-chairs Sen. creation of a so-called blue ribbon Bob Peterson and Rep. Jeff McClain, In December 1994, the Commission study commission is not without Sens. Scott Oelslager and Charleta One of the most likely reactions to to Study the Ohio Economy and Tax implications and potential Tavares and Reps. Kirk Schuring and the creation of this commission Structure urged elimination of the consequences for Ohio’s business Jack Cera. The commission has one could be, “Oh boy, another do- net worth base of the corporation community. The 2020 Tax Policy general duty — to recommend how to nothing commission to study Ohio’s franchise tax and requiring Study Commission, like its prior maximize Ohio’s competitiveness by tax structure.” While that reaction combined reporting for the net four counterparts, will not be a place 2020 — and four more specific ones. might be natural, it would be unfairly income base, recommending the where credible ideas for reforming dismissive of the productive work of two reforms be adopted together, Ohio’s tax system go to die or gather 1. Recommend how to transition past tax study commissions and the and eliminating the TPP tax over a dust. The 2020 Commission’s Ohio’s personal income tax to a 3.5 General Assemblies and governors number of years and the inventory hearings and deliberations percent or 3.75 percent flat tax who have acted to pass legislation component immediately. By 1996, a will generate much debate and $150,000 tax cap was imposed on all discussion as to Ohio’s tax structure 2. Recommend how to make the implementing many of their corporations paying the franchise for the foreseeable future, so there historic rehabilitation tax credit important recommendations. tax based on net worth, a reform the is a great deal at stake for Ohio more efficient and effective In the past 50 years, four tax Ohio Chamber was instrumental businesses and their owners 3. Recommend how to reform study commissions have issued in achieving. and employees. Ohio’s severance tax to maximize reports on Ohio’s tax system, and competitiveness and enhance the General Assembly has not Finally, in March 2003, the Please send any comments, Ohio’s general welfare allowed those reports to simply Committee to Study State and suggestions, ideas and/or gather dust. In November 1968, Local Taxes issued a report calling recommendations on this topic to 4. Review and evaluate all tax credits the Bipartisan Select Committee for eliminating the TPP tax, with a me at [email protected]. authorized by the state on Tax Revision recommended “replacement tax” on all businesses

HR ACADEMY: CINCINNATI LABOR & EMPLOYMENT LAW UPDATE APRIL 21, 2016 - 8 A.M. TO NOON QUEEN CITY CLUB, 331 E. FOURTH ST., CINCINNATI

Join us for a half-day program co-sponsored by Vorys, Sater, Seymour and Pease and the Ohio Chamber of Commerce. The event will feature discussions on a variety of timely topics, including I-9s, wellness programs, NLRB update, employee reviews on Glassdoor.com, federal case law update concerning discrimination, gender issues, workers’ comp, and a wage and hour update.

This program is pending three (general) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. It is also pending approval in Ohio and Kentucky for three total CLE hours instruction.

To register, go to http://www.vorys.com/newsevents-events.html

6 STAY CONNECTED.

THE OHIO CHAMBER IN ACTION

The first quarter of the year has been very busy for our members and staff as we have testified on many bills, held several committee meetings, attended educational seminars and spoke at industry events. Here are some pictures from a recent Tax Committee meeting, the MEC Energy Management Conference and the Chamber of Commerce Executives of Ohio Winter Conference.

GETTING IT RIGHT How one serial entrepreneur turned hiring hassles into staffing success

While running several companies was in Columbus, we were in Southeast Ohio, Larry Kidd shipping multiple trucks a day. frequently needed to hire temporary Transportation became costly.” workers. However, he was often “You have more unsatisfied with the quality of the Columbus was 75 miles away, so clout as an individual help he received. Kidd convinced the warehousing company, American Warehousing business owner with As a serial entrepreneur, Kidd and Logistics, to build a facility viewed the challenge as an in Jackson. He invested in the the chamber. They’re opportunity. His workforce hassles company, left Luigino’s in 2003 such great advocates.” served as the motivation behind and later bought a manufacturing the founding of Reliable Staffing operation northeast of Columbus. – Larry Kidd, Services of Jackson, Ohio, and That’s when Kidd’s frustration with Reliable Staffing Services eventually to his deep involvement temporary workers began. with the Ohio Chamber of Commerce. “We learned how just getting a warm body wasn’t enough,” he says. FINDING A NICHE He assumed other business owners SOMEONE STEPS IN Kidd says that there’s nothing like Kidd’s career took him away from were experiencing similar pains, Kidd got involved with the Ohio going eye to eye with lawmakers Jackson, where he’d grown up, to so in 2006, the serial entrepreneur Chamber of Commerce as a result to let them know the real-world Southern California, Florida started yet another business — of a workers’ compensation consequences of their actions. and beyond. Reliable Staffing Services, a general claim filed against one of his “That’s what the chamber lets its staffing agency that provides businesses. That claim boosted its “Each time I got promoted, I got members do,” he says. “The ability temporary, temporary-to-hire and premiums into the stratosphere, transferred,” he says. to explain your position from direct hire services throughout and he thought someone had to do your perspective makes all the Southeast Ohio. something about this issue. It was While that was exciting early in difference. You have more clout his career, by the time he married former state legislator and current “What we do differently is that as an individual business owner Cindy and they had two small Ohio Chancellor John Carey who we get to know our people,” he with the chamber. They’re such children, he decided it was time to convinced him that he might be says. “We do more screening — great advocates. We have a voice settle down. So he sent out resumes that someone. background checks and drug tests and can make a difference because, and found employment as director and skills testing — to give us “You need to get involved in the as a group, we truly understand of purchasing at Luigino’s (now greater confidence in the people we Ohio Chamber,” Kidd says Carey business and the impact political Bellisio Foods), the frozen food are placing in positions.” told him. decisions can have on it.” giant located in his hometown. There, he found that warehousing It’s working. For two years running Soon he was testifying in Columbus Kidd also maintains his dedication was a constant challenge. (2012 and 2013), his company and Washington, D.C., about high to business and his community as received recognition from Staffing workers’ compensation costs and a member of the JobsOhio board “We’d receive a production order Industry Analysts as being among other employment issues. of directors since 2011 and as that required two truckloads the fastest-growing companies in chairman and trustee of Rio Grande of tomatoes,” he says. “Since the business. Community College. the public warehouse we used

WWW.OHIOCHAMBER.COM 7 OHIO CHAMBER PREPARES FOR SIGNATURE EVENT

Each year, the Ohio Chamber’s • Attendees have the opportunity Also, for our local chambers of Annual Meeting & Legislative to network with other business commerce, we are putting together Reception brings together members leaders. the agenda for our Chamber Day of the Ohio General Assembly and at the Capitol, which will be held many of our most active business • The Capitol Theatre is inside the immediately before the Annual leaders in downtown Columbus. Vern Riffe Building – the building Meeting from 1 p.m. to 3 p.m. in This year’s event is the perfect that houses all of the offices for Studio 2 in the Riffe Center. This combination of business and politics the members of the House, the event is specifically designed for as we welcome former business lieutenant governor, governor and local chambers and their members. leader and former Speaker of the other important state officials, so We will have guest speakers and a U.S. House of Representatives John you can easily access their offices. legislative update by members of the Boehner. A full story on Boehner is • Members of the Ohio Chamber Ohio Chamber staff. on the front page of this publication. staff will be there to meet and More information about the Because this is the chamber’s talk with you about issues you Annual Meeting can be found on our signature event of the year, I care about. website at www.ohiochamber.com, encourage each of you to attend and • Local chambers can bring their then click on Benefits & Events, then be part of a powerful message to our members to show them the Annual Meeting. elected officials that businesspeople importance of advocating for Now in its 123rd year, the Ohio care and are paying attention to what Ohio businesses. is going on in Columbus and discuss Chamber’s Annual Meeting and first hand how their decisions • Ohio’s elected officials will be Legislative Reception is the business impact your bottom line. in attendance at the Legislative event of the year. It will provide all Reception. attendees with information sharing If that reason isn’t good enough, I’ve and networking opportunities not come up with a few more. • Come show your support for a found anywhere else. I hope to see pro-business agenda in the you there. • This is Boehner’s first official capital city. keynote address since retiring from the U.S. House of Those coming to Columbus for the Representatives. Annual Meeting can also tour the statehouse in the morning, meet one • Chamber Action Alliance on one with members of the House members will be recognized for and Senate or even attend a General their advocacy efforts. Assembly committee meeting.

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 Ohio 230 East Town Street Ohio Matters is published by position of the Ohio Chamber of Commerce. The Chamber’s position on Matters, Attn: Database Manager, Ohio Columbus, Ohio 43215-0159 Convero (formerly SBN Interactive) key issues will be clearly stated. The Ohio Chamber of Commerce does Chamber of Commerce, P.O. Box 15159, 614.228.4201 • 800.622.1893 835 Sharon Drive, Suite 200 not necessarily endorse the products and services advertised in Ohio Columbus, Ohio 43215-0159. Fax 614.228.6403 Cleveland, OH 44145 Matters. Articles can be reproduced, but only with permission from, and [email protected] 844-428-8844 • www.converoinc.com attribution given to, the Ohio Chamber of Commerce. For authorization, FOR MORE INFORMATION CONTACT www.ohiochamber.com Laura Green, Managing Editor please contact Ohio Chamber Vice President of Communications Julie Julie Wagner Feasel www.ohiobusinessvotes.org Erin Walker, Account Manager Wagner Feasel at 614.228.4201. The Chamber reserves the right to Vice President of Communications Lori Smith, Art Director reject advertising based on content and does not accept advertising [email protected] that is in conflict with a position of the Chamber. Kristy Amy, Advertising Sales 440.250.7011 • [email protected] Ohio Matters is a bimonthly publication for members of the Ohio Chamber of Commerce. Subscription cost is included with annual dues.

OHIO CHAMBER OF COMMERCE ANNUAL MEETING & LEGISLATIVE RECEPTION APRIL 5, 2016 #ALLFOROHIO FEATURING FORMER SPEAKER OF THE HOUSE JOHN BOEHNER

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