9:30 a.m. (EST) 1-866-362-9768 940-609-8246# OMA Government Affairs Committee March 2, 2016 AGENDA Welcome & Introductions Chris Hess, Manager, Government Affairs, Eaton Corporation; Committee Chair National Association Reports Stephen Norton, STERIS Committee Members OMA Counsel’s Report Kurt Tunnell, Managing Partner, Bricker & Eckler LLP, OMA General Counsel Staff Reports Ryan Augsburger, OMA Staff Rob Brundrett, OMA Staff Committee Members Discussion / Action Items Member Discussion Current OMA Action Alerts Unemployment comp HB 394 Tax relief for temps HB 343 Legal Challenge: Drug Pricing Initiated Statute Truck weight reform (SETA) Electric Power Purchase Agreements Employee engagement tools 2016 OMA Election Guide 2016 Elections Roundtable Special Presentation: Hon. JoAnn Davidson RNC Convention Opportunities Tiffany Adams, NAM Lunch – provided by OMA Our thanks to today’s meeting sponsor: 2016 Government Affairs Committee Calendar Meetings will begin at 9:30 a.m. Wednesday, March 2 Wednesday, June 15 Wednesday, August 31 Wednesday, November 30 Page 1 of 207 Jo Ann Davidson The Jo Ann Davidson Ohio Leadership Institute 37 West Broad Street, Suite 970 Columbus, Ohio 43215 Before most women even thought of running for public office, Jo Ann Davidson had already decided to serve. She first ran for Reynoldsburg City Council in 1965 before any woman had been elected to council. She did not win. Undaunted, she ran again in the next election cycle. This time she won. She went on to serve ten years as a hardworking member of city council and become chair of its powerful finance committee. Mrs. Davidson then successfully ran for a seat in the Ohio General Assembly where she served with great distinction for 20 years. She was elected by her peers to be the Speaker of the Ohio House of Representatives in January of 1995. During her historic service as the first woman Speaker from 1995 to 2000, she guided many important legislative initiatives through the Ohio General Assembly including welfare reform, electric deregulation and criminal justice reform. In addition, Mrs. Davidson has extensive experience in the private sector. Prior to 1994, Davidson worked as Vice President of Special Programs for the Ohio Chamber of Commerce. Mrs. Davidson holds honorary Doctor of Law degrees from Ohio University and Capital University, an honorary degree in Government Leadership from the University of Findlay, and an honorary Doctor of Public Administration degree from The Ohio State University. She serves on the Board of Trustees of the University of Findlay and Franklin University and is a former member of the Ohio State University Board of Trustees. She formed her own consulting firm, JAD and Associates, and is doing consulting work on a broad range of issues involving public policy development and analysis, strategic planning and political campaigns. She served as Co-Chair of the Republican National Committee from 2005 to 2009. Page 2 of 207 Tiffany Adams Vice President, Public Affairs Download Hi-Res Photo Tiffany N. Adams is vice president, public affairs for the National Association of Manufacturers (NAM) and has been with the NAM since 1992. She is the primary staff contact for the NAM's National Public Affairs Steering Committee (NPASC), a group of 150 leading corporate public affairs and government relations executives from the NAM's largest member companies who bolster the association's grassroots efforts and offer insight on NAM public policy positions and guidance on lobbying strategy. She also serves as the primary contact for the organization's Washington Representative community. Ms. Adams oversees the association's Public Affairs Department, which executes the NAM's member and employee involvement programs, coordination of fly-ins, GOTV strategies and overall grassroots efforts. She also coordinates the organization's outside-the-beltway involvement activities for all NAM members. She has oversight for all NAM local, in-district events across the country and handles the association's congressional recognition and accountability program. Ms. Adams completed her undergraduate work at Temple University in Philadelphia, Pa. - See more at: http://www.nam.org/Contact/Staff/Tiffany-Adams/#sthash.8botJJcX.dpuf Page 3 of 207 Page 4 of 207 Page 5 of 207 Page 6 of 207 Page 7 of 207 Page 8 of 207 Page 9 of 207 Page 10 of 207 Page 11 of 207 Public Policy “Hot Topics” March 2, 2016 Overview The 131st General Assembly has been in session for the past month and a half following the holiday break. Both the House and the Senate will be absent for almost the entire month of March in order to campaign for the primary elections. Governor Kasich continues to travel the country advancing his presidential campaign. General Assembly OMA priority legislation to reform unemployment compensation and provide tax relief to businesses employing temporary labor have continued to advance in the House. On the energy front, a couple proposals have manufacturers on the defensive. Unwise expansions of workers compensation benefits and health care coverage are being advanced by Republican lawmakers. The first half two months of 2016 have been eventful. Legislative activity is expected to slow beginning in June and unlikely to pick up again until after the November election. President Kasich? John Kasich continues his presidential campaign. He finished second in the New Hampshire primary. Ohio holds its primary election on March 15. Governor Kasich announced if he does not win the Ohio primary he will not continue with his presidential campaign. See included information on how to contribute to the Kasich campaign or New Day super PAC. Electricity Rates & Regulation Significant utility rate cases are pending at PUCO. Distribution utilities FirstEnergy and AEP have filed cases proposing affiliate power purchase agreements (PPAs) whereby the utility companies impose billions of dollars of new charges on customers to subsidize “uneconomic” generation owned by their affiliate generation company. Late last year, the proposals were modified to attract supporters including the PUCO staff. At this point the proposals became a proposed “settlement”. A new round of litigation followed. The cases are highly controversial and have been heavily reported in the press. In the official proceedings at the PUCO have concluded and a final decision by the five-member commission is expected any day. The OMA has been an active opponent to the PPA proposed settlement fielding witness testimony. Contact staff for a copy of the OMA’s testimony in the cases. In recent weeks the high-stakes utility case has spurred high dollar paid media campaigns being aired by competitive suppliers opposed to the PPAs and by utility companies supportive of the PPAs. Consumer groups including AARP are alerting members. Over 65,000 comments from concerned citizens have been filed with the PUCO. Several notable manufacturing leaders have filed their own comment. Tax Policy Hearings have continued on the 2020 Tax Policy Study Commission. The OMA has testified twice on both how Ohio’s tax structure impacts manufacturing and on the impact of tax expenditures on Ohio’s manufacturers. More hearings will continue through 2016. House Bill 343 which eliminates the sales tax on temporary employees is being prepared to be voted out of the House Economic and Workforce Development Committee. Page 12 of 207 Civil Justice Patent troll legislation continues to sit in the House Judiciary Committee. Budget amendment language to revise insurance subrogation law was enacted via Senate amendment last June. Environment Federal proposals governing clean power plants under 111(d) of the Clean Air Act and to tighten the National Ambient Air Quality Standards (NAAQS) for ground-level ozone from the current 75 parts per billion have eclipsed traditional state environmental issues. As it stands now both proposals have been approved. The OMA led campaign to fight even more stringent ozone rules was successful in keeping the new standard at a much more pragmatic 70ppb. Clean Power Plan / US EPA 111(d) As federal regulators finalized the Obama Administration new regulation on carbon dioxide emissions from power plants, advocacy action has been turning to the states to determine how individual states will comply with the standards. Ohio will be seeking an extension, and plans to hold regional meetings this year. The U.S. Supreme Court issued a stay last month in the Clean Power Plan case, which was a major victory for manufacturers. The OMA and other business allies filed an amicus brief in support of the states who are fighting the regulation in court. November General Election – Ballot Issues It’s too early to say what will be in the November ballot, however several possible issues are being circulated including medical marijuana and prescription drug pricing. See counsel’s report for more detail on possible ballot issues. The OMA filed a challenge in the initiated statute impacted drug pricing. Marijuana Legalization Following the swift defeat of the Responsible Ohio ballot issue to legalize medical and recreational marijuana, proponents of legalization continue to look for avenues. See counsel’s report for details on emerging ballot issues targeting “medical marijuana” only. OMA Board Chair Bill Sopko of William Sopko & Sons, was appointed to the House of Representatives Medical Marijuana Task Force. The Task Force has held several public meetings and faces a March 31 deadline to tender a report. The OMA will be offering testimony