Table of Contents Page # Government Agenda 2 Affairs Leadership Documents Committee • Counsel’s Report 3 December 3, 2014 • OMA Amicus Brief Program 9 • Public Policy “Hot Topics” 12 • OMA Post Elections Report 15 • Leadership News Articles 20 • Legislation Tracker 31 • Legislative Alert, Steel Pipe Monitoring 41 Program • Governor Kasich Re-Election / Inaugural 42 • OMA Public Policy Framework For Action 47 • OMA Committee Feedback 56 Energy Policy Report 60 • Proposed Power Purchase Agreement Riders 63 Environment Policy Report 77 • Ohio EPA Inspector Rotation Letter 89 • OMA/NAM Ozone Regulations Study 90 • U.S. EPA Ozone Press Release 92 • OMA 111(d) Comments 94 • Ohio EPA 111(d) Comments Talking Points 96 • Ohio EPA 111(d) Executive Summary 98 Human Resources Policy Report 106 • Unemployment Trust Fund Solvency Report 119 Safety & Workers’ Compensation Report 123 Tax Policy Report 133 • HB 5 Municipal Income Tax Highlights 151 • OMA Advocacy Center HB 5 152 • OMA HB 5 Testimony 153 • 157 OMA CAT Impact 2015 Government Affairs OMA Government Affairs Committee Meeting Sponsor: Committee Calendar Meetings will begin at 9:30 a.m. Wednesday, March 11 Wednesday, June 3 Wednesday, September 2 Wednesday, December 2 Page 1 of 158 OMA Government Affairs Committee December 3, 2014 AGENDA Welcome & Self-Introductions Christopher Hess, Eaton Corp., OMA Committee Chair National Association Reports OMA Counsel’s Report Kurt Tunnell, Managing Partner, Bricker & Eckler, LLP Staff Reports Ryan Augsburger, OMA Staff Rob Brundrett, OMA Staff Committee Members Discussion / Action Items Member Discussion Encouraged Throughout Meeting Post-Election Analysis 2016 Presidential Convention(s) Current Action Alerts Committee Member Feedback Guest Presentation: Matt Carle, 2014 Kasich–Taylor for Ohio Campaign Manager / Governor’s Election Analysis and A New Day Inaugural Committee Director New Day Inauguration Guest Presentation: Larry Obhof (R – Medina) – Senate Majority Whip Senate Priorities Lunch Government Affairs Committee Meetings in 2014 begin at 9:30 a.m. and conclude by 1:00 p.m. Lunch will be served. Please RSVP to attend meetings by contacting Denise: [email protected] or (614) 224-5111 or toll free at (800) 662-4463. Indicate if you will be participating in-person or by phone. Thanks to Today’s Meeting Sponsor: Page 2 of 158 MEMORANDUM TO: Ohio Manufacturers’ Association Government Affairs Committee COLUMBUS I CLEVELAND CINCINNATI-DAYTON MARIETTA FROM: Bricker & Eckler LLP BRICKER&ECKLERLLP 100 South Third Street DATE: December 2, 2014 Columbus, OH 43215-4291 MAIN: 614.227.2300 FAX: 614.227.2390 RE: Government Affairs Committee Report www.bricker.com [email protected] I. 2014 Government Affairs Update - Overview. Please find below several political and legislative efforts we have been monitoring for the OMA. II. 2014 Elections – Governor’s Race. In a landslide year for Republicans, the GOP retained all five statewide offices and control of the Ohio General Assembly. As expected, Governor John Kasich beat challenger Ed FitzGerald 64% to 33%. Governor Kasich won in 86 of Ohio’s 88 counties (losing only Monroe and Athens), including FitzGerald’s home county of Cuyahoga. III. 2014 Elections – Judicial Races. Supreme Court of Ohio: Justice Sharon Kennedy handily defeated challenger and term-limited State Representative Tom Letson 73% to 27%. Justice Judi French also handily defeated current Cuyahoga County Court of Appeals Judge John O’Donnell (no relation to current Justice Terrence O’Donnell) by a margin of 56% to 44%. While Justice French ended the Supreme Court “name game” defeating an O’Donnell (currently, an O’Connor, O’Donnell, and O’Neill are Justices of the Ohio Supreme Court), forced age-limit retirements over the next four years for Justices Pfeifer, O’Donnell, Lanzinger, and O’Neill will create four open seats on the Court between the 2016 and 2018 election cycles. Given the nonpartisan nature of judicial elections in Ohio, the costs of statewide elections, and with three soon-to-be-open Republican seats on the Court, the OMA, business interests, generally, and others will need to expend significant resources and attention to ensure the Court maintains the conservative balance we have had now for more than 15 years thereby providing a greater opportunity for a positive business climate in Ohio. 8276455v3 Page 3 of 158 Bricker & Eckler ATTORNEYSATLAW OMA Counsel Report December 1, 2014 Page 2 10th District Court of Appeals: Incumbent Judge Betsy Luper Schuster defeated former Central Ohio Congresswoman Mary Jo Kilroy (D) – a significant win for Schuster who was appointed to the 10th District by Gov. Kasich. Another Kasich appointee, Judge Amy O’Grady lost to former Secretary of State Jennifer Brunner – many expect Brunner will run for one of the open Ohio Supreme Court seats mentioned above. Incumbent Lisa Sadler ran unopposed and Franklin County Court of Common Pleas Judge Timothy Horton will join the 10th District Court after running unopposed. IV. Constitution Modernization Commission. As we have previously reported, the Ohio Constitutional Modernization Commission (“OCMC”), which was created with the passage of H.B. 188, continues its work studying the Constitution of Ohio and is considering changes to update various Constitutional sections and provisions. Among the provisions garnering debate and attention are those on the topics of school funding, term limits, and redistricting. School Funding: With respect to school funding and public education, a proposal surfaced in March to require the Ohio legislature to provide the “organization, administration and control of the public school system.” The proposal was criticized by many school groups and advocates of public education. Another proposal suggested the removal of the words “thorough and efficient” which committee members suggested has been used to remove the debate of public education from the legislature to the courtroom. This change was opposed by Ohio Supreme Court Justice Paul Pfeifer in the November meeting of the Education, Public Institutions, and Local Government Committee of the OCMC, where he stated that he would potentially campaign against a proposal that removes K-12 funding considerations from the Constitution. No timetable has yet been set for a formal proposal on education reform to the legislature, and we anticipate continuing debate on the possible changes both to Ohio system for funding education, as well as educational administration and control. Term Limits: Possible changes to Ohio’s term limits restrictions have garnered significant debate and dissention among OCMC members and outside groups supporting the current eight-year limits and those groups seeking a possible extension. The committee is currently considering whether that number might be increased to 12 years to allow legislators more time to gain experience while in office before being forced out. As with education-related reforms, Ohio’s debate on term limits in the 1990s was significant and hard fought. Any change, if any change in the years for term limits might occur, will be the 8276455v3 Page 4 of 158 Bricker & Eckler ATTORNEYSATLAW OMA Counsel Report December 1, 2014 Page 3 subject of considerable debate and consideration – and certainly an inevitably (and extremely costly) statewide ballot campaign. Other Proposals: The Judicial Branch and Administration of Justice Committee is considering a proposal from Senator Larry Obhof (R-Medina) to remove obsolete court-related provisions – including that which would create conciliatory courts. The proposal, which was before voters in 2011 and failed in part because it also included an increase from 70 to 75 years on the maximum age for judges, was framed as a way to “tighten up” the constitution and remove unnecessary provisions that go unutilized. The Revisions and Updating Committee heard a proposal to make changes to the initiated statute timeline. Proposal sponsors Don McTigue and Maurice Thompson told the Committee that, currently, a constitutional ballot issue is more appealing to petitioners than an initiated statute, and urged the OCMC to consider changes that would steer petitioners towards initiated statutes. Any recommendations made by the Committees of the Constitutional Modernization Commission must receive a two-thirds vote by the full Commission to become an official recommendation. V. Redistricting. The OCMC Legislative & Executive Branch Committee has heard presentations from legislators on plans to reform redistricting and reapportionment. S.J.R. 1, sponsored by Senators Frank LaRose (R-Copley) and Senator Tom Sawyer (D-Akron), and H.J.R. 11 and 12, both sponsored by Representative Matt Huffman (R-Lima), all envision redistricting panels, minority party buy- in, and avenues for addressing disagreement – including putting the maps before voters. All these pieces of legislation are simultaneously going through the legislative process while being considered by the OCMC. H.J.R. 11 and 12 have each received two hearings in the House Policy and Legislative Oversight Committee and H.J.R. 12, which addresses the drawing of General Assembly districts, is scheduled for 3 more hearings the week of December 1. S.J.R. 1 has had 4 hearings in the Senate State Government Oversight & Reform Committee. Like H.J.R. 12, it is scheduled for 3 additional hearings the week of December 1. The number of hearings this week suggests that both the House and Senate may be interested in passing one of these plans before the end of the year,