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Statehouse Update

February 8, 2019

Tuesday, January 22, 2019 HEALTH DEPARTMENT MULLS TOBACCO TAX HIKE IN BUDGET REQUEST The outgoing Kasich administration's Department of Health listed efforts to reduce tobacco use as a top priority, saying that effort could include higher taxes on cigarettes and other tobacco products.

The department's preliminary budget request also recommended that a small fraction of revenues from increased taxes on cigarettes, other tobacco products, nicotine liquids and other electronic smoking device components and accessories, be diverted to the department's tobacco prevention program.

"Increasing the price of tobacco is the single most proven strategy for decreasing youth initiation and smoking prevalence," Director Lance Himes wrote in the request, submitted in October to the Office of Budget and Management. "Decreasing tobacco use will help improve the health of Ohioans and the state will realize considerable healthcare savings."

ODH said well-funded tobacco control programs can show a $5 return on investment for every dollar spent, mostly through avoided health care costs.

Jeff Stephens, state government relations director for the American Cancer Society Cancer Action Network, said tax increases, if in the range of a dollar or more, can help encourage people to quit smoking.

"Cigarette taxes need to be increased by $1 a pack at a time in order to have a beneficial health impact," he said in an interview. "The industry can mitigate anything below that and basically distribute couponing and things that help string the nicotine addict along until they get used to the price."

Mr. Stephens said ACS CAN is focusing during this budget cycle on equalizing the taxes on other tobacco products to those of cigarettes.

"Our top priority is to equalize the tax on other tobacco products. That has not been done here in Ohio since the tax's inception 30 years ago," he said. "What we really need to do is get e-cigarettes included in the taxation of other tobacco products."

The group also suggested the state increase funding for prevention, cessation and counter marketing.

Beth Wymer, executive director of the Ohio Wholesale Marketers Association, said in an interview that increasing taxes on cigarettes or other tobacco products would cause problems for wholesalers, who are responsible for the taxes. Increased taxes lead to more bills being unpaid by retailers, more bad debt for wholesalers and increased theft, she said.

"I assume that the agency has that in their proposals every year," she said. "I'm not surprised. We just need to see what this administration is going to propose and where is that going to go with this legislature."

Wholesalers and distributors will have to increase security measures to prevent theft, and their insurance premiums will also rise, she said. The same will happen with any tax increases on other tobacco products.

"If taxes go up on (other tobacco products), we are increasing the value of the product on the street, we're increasing the account receivables on the wholesalers which goes into the bad debt," she said.

Kristin Mullins, president and CEO of the Ohio Grocers Association, said any tax increases on tobacco products will affect retailers, including the loss of other sales such as food and drink purchases when someone comes in to buy tobacco.

"As a general rule, increase in taxes on tobacco products of any kind can be harmful to my retailers, especially on border counties," she said in an interview. "We're always concerned when a tax on tobacco is something that's being considered with the budget."

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Other ODH Priorities: In addition to the tobacco tax, the department recommended lawmakers increase General Revenue Fund money for the Children with Mental Handicaps Program by $1 million per year.

The department also recommended an additional $775,000 in Fiscal Year 2020 and $800,000 in FY 2021 for increasing the frequency and quality of nursing home recertification surveys and inspections. ODH recommended restoring GRF funding for the Alcohol and Drug Testing program for work approving new breath testing instruments, training and permitting.

"This program faced a reduction in funding in the last budget," Director Himes wrote. "The proposed funding increase would allow ODH to stop subsidizing the program using Public Health Laboratory funding and operate the program at a level equivalent to that in SFY 2016-2017."

The request also included a recommendation to devote $1 million for public health technology innovation.

"This will allow the department to modernize, improve and ensure the efficiency of the technology used by programs within the department with restricted or limited funding," the director wrote. NATURAL GAS PIPELINE EXPLOSION FUELS CONCERNS OF ENVIRONMENTAL GROUPS A natural gas pipeline in eastern Ohio ruptured Monday, injuring two and damaging several homes in Noble County.

Pipeline opponents have already begun pointing to the incident as they lobby federal regulators to revise standards used to determine whether to approve new pipeline projects.

At about 10:40 a.m. Monday, a portion of the Texas Eastern pipeline in Noble County exploded, according to Enbridge, which operates the pipeline. The company reported it was continuing to assess the area Tuesday afternoon.

The company said two structures were damaged but local reports indicate at least three house fires were sparked by the explosion.

"On behalf of Enbridge, I want to express our concern for the two individuals who were injured, as well as all those affected by this incident," said Bill Yardley, Enbridge executive vice president, in a statement. "We thank the first responders for their efforts and we are working closely with them and other local officials to restore the incident site safely."

A 700-foot precautionary safety perimeter has been established near the site as of Tuesday and nearby roads remain closed.

Mr. Yardley said the company is ready to work with regulatory agencies to identify the cause, monitor remains and evaluate environmental impacts of the explosion. Agencies on site include staff of the Public Utilities Commission of Ohio in an advance of an expected Pipeline and Hazardous Materials Safety Administration investigation.

Following the explosion, field operators immediately shut down and isolated that section of pipeline, according to the company. The section is 30 inches in diameter and was constructed in 1952-1953. An in-line inspection performed in 2012 found no remediation needed, according to the company.

The Sierra Club and its allies immediately called attention to the explosion and subsequent injuries. It's just the latest explosion in the area, which houses numerous other pipelines and infrastructure, the groups argued.

"This makes five pipeline explosions in the region in two years," said Cheryl Johncox, organizer with the Sierra Club. "What do local residents have to do to feel safe? An elementary schooler was injured in this explosion and three families have lost everything.

"There is no right way to build or operate these dirty, dangerous fracked gas pipelines and we will not stop fighting them until each and every one is permanently decommissioned," she added.

The Sierra Club is among scores of environmental and conservation groups who have praised the Federal Energy Regulatory Commission for its review of pipeline certification standards. OBHOF SAYS GAS TAX INCREASE UNLIKELY While some groups are clamoring for an increase in the gas tax, Senate President Larry Obhof on Tuesday threw cold water on the idea.

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"As a starting point, I wouldn't think that any tax increase of any kind for any reason would be well received by the members of the Senate," the Medina Republican said.

"We have a pretty conservative caucus and we have made an active effort over the last seven or eight years to cut taxes where possible, but we do have a revenue problem coming in the form of the bonds essentially running out from the turnpike."

Sen. Obhof did not rule out addressing dwindling revenue for transportation infrastructure in some form.

"We're going to take a look at all possible options for increased funding so that we can continue to build on our infrastructure and make improvements as necessary," he said.

The upper chamber leader said he expects the Senate will have "substantial discussion" before arriving at any potential solution.

Local government organizations, regional planning councils and business and transportation groups recently teamed together to form Fix Our Roads Ohio to advocate for additional funding for transportation infrastructure projects. ENVIRO GROUPS APPEAL CRACKER PERMIT Environmental groups are challenging a recently awarded permit in an attempt to block the potential construction of an ethane cracker in Belmont County.

In filing its appeal before the Environmental Review Appeals Commission, the Sierra Club and its allies are attempting to contest the Ohio Environmental Protection Agency's issuance of an air permit for the project in December.

The permit was one of the final pieces needed for PTT Global and Daelim to move forward with the project, although they haven't yet made a final decision.

Other groups signing onto the appeal include Earthworks, the Center for Biological Diversity and the Freshwater Accountability project. They argue the plan would release toxic air pollution that would harm the region and its residents.

Local and state officials, however, have worked to move the project forward in recent years since it was announced at a Statehouse news conference in 2015. They argue the project would open up new industries for the state while creating new jobs and economic benefits.

The companies have yet to make a final investment decision; the expected announcement timeline has been pushed back several times in recent years. Wednesday, January 23, 2019 DEWINE: NO 'MAJOR STRUCTURAL CHANGES' PLANNED FOR STATE GOVERNMENT Gov. Mike DeWine's administration likely will not push for any mergers or other significant changes to the state government's departmental structure.

Asked Wednesday about a proposal (HB512, 132nd General Assembly) that would have combined the Department of Education, the Department of Higher Education and the Governor's Office of Workforce Transformation, the governor said he "would not rule anything out" but doubted his administration would push for such a change.

Gov. DeWine said his "inclination generally is to take government as I find it and try to figure out how to make it work."

"You should not expect out of the DeWine-Husted administration any kind of major structural changes," he said. "I may wake up some day and decide to do one, but it's just not what I'm usually focused on."

The effort in effecting such changes often could be better used elsewhere, Gov. DeWine said, adding that he did not intend his remarks as a criticism of any previous administrations.

"You can spend a lot of energy rearranging government, how it structurally functions," he said. "Sometimes you can get into that and you burn up a lot of energy and political capital in getting that done."

The measure to merge the three agencies into the Department of Learning and Achievement received five hearings last year but never earned a vote from the House Government Accountability & Oversight Committee.

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The legislation immediately drew pushback from Democratic legislators and groups including the Ohio School Boards Association, the Buckeye Association of School Administrators and the Ohio Education Association, while garnering support from other education groups and some Republican lawmakers.

Federal Shutdown: The governor has asked his cabinet members to complete reports on how the partial federal government shutdown is affecting or could affect their areas of oversight.

Gov. DeWine said he expects the reports will be delivered to him by the end of the week. He said it's not yet clear what, if any, role the shutdown will play in the state's budget planning process.

"We're assessing what holes there are," he said. "…We're looking at the issue of foodbanks and other things. We're still in the assessment (phase)."

Gov. DeWine conducted his first cabinet meeting on Tuesday after the leaders were sworn in.

One cabinet post remains empty, as Gov. DeWine has not yet named a leader for the Department of Health. He said he expects to name a director for the agency within 10 days.

Gas Tax: The governor also said he expects to make an announcement Monday on a working group tasked with analyzing the state's infrastructure needs and potential ways to pay for them.

Gov. DeWine said he also has requested Department of Transportation Director Jack Marchbanks submit an assessment on the situation, which will be "coming shortly." In a preliminary budget request submitted late last year, his predecessor at ODOT said the next administration "will have to continue our work and find innovative ways to fund major new transportation construction projects."

While some groups have suggested increasing the state's gas tax as a potential solution, Gov. DeWine said he has not yet come to any decision.

"I think what's important is that the people have all the facts," he said.

The governor's comments came shortly after Senate President Larry Obhof (R-Medina) questioned the viability of a proposal to increase the gas tax in the upper chamber. Friday, January 25, 2019 NEW BWC ADMINISTRATOR WANTS TO EXPAND CUSTOMER SERVICE FOCUS The Bureau of Workers' Compensation's board of directors held its first meeting with new Administrator/CEO Stephanie McCloud Friday, but Gov. Mike DeWine's appointee said she isn't planning to make any major changes immediately.

Administrator McCloud worked for the BWC in her first job out of law school and has since held various positions in state government and the private sector dealing with workers' compensation. She said she also owned a small business and saw the system from that angle.

"I appreciate the system beginning to end," she told the board.

She praised previous administrator Sarah Morrison's work running the bureau and said her predecessor, a federal court judge nominee, will stay on for a time as a senior policy advisor.

"I'm very privileged and happy to be following Sarah Morrison as administrator," she said. "I can't tell you how nice it is to come into a job and an agency that does not need a major fix."

Administrator McCloud said she's evaluating what the bureau already has in motion and has no intention of stopping current policies or programs.

"I think people were afraid I was going to come in day one and change this, change that," she said.

One area of focus for the DeWine administration will be customer service, and Administrator McCloud said she hopes to emphasize that.

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"I think we as an agency do a good job with that and we do a fantastic job given the limited resources allocated to that," she said. "I share the commitment that we have here to be a world-class organization."

Board Chairman Nicholas Zuk praised the new administrator's experience.

"We really are blessed to have her as the new administrator," he said. "She brings to us a great wealth of experience."

The board also heard a report from Barb Ingram, the bureau's chief fiscal and planning officer, on its financial situation halfway through the fiscal year. As of Dec. 31, the bureau's net position was $9.1 billion, down from $9.5 billion a month earlier and $11.3 billion at the end of 2017.

In December, the BWC saw net investment losses of $408 million, she said.

The BWC's administrative budget was $133.2 million for the first six months of the fiscal year, down $8.3 million compared to what was budgeted, she said. That total is up about $5.4 million from the bureau's administrative cost fund expenditures through the same period in Fiscal Year 2018, largely due to an increase in money for safety programs, she said.

Asked by a board member about the prospect of using the extra money for other projects, including a proposed data analytics effort, Ms. Ingram said that's a possibility.

"My goal is always to spend as much of that budget as we possibly can on projects that are important to the agency," she said. "Typically, we lapse somewhere in the neighborhood of $7 to $10 million each year, but hopefully with some of the things we want to do we can minimize the amount of that budget lapsing." CONSUMER GROUPS BACK MODIFIED FIRSTENERGY TAX SETTLEMENT FirstEnergy, Public Utilities Commission of Ohio staff and consumer groups have struck a deal they believe will result in $125 million in benefits for consumers stemming from the 2017 federal tax law.

The stipulation, part of an ongoing tax rate case before the PUCO, was filed Friday and is supported by the Ohio Consumers' Counsel and the Northeast Ohio Public Energy Council. Those two groups previously opposed a prior proposal filed in November.

"The stipulation, as a package, enhances and improves upon the substantial benefits to customers and the public included in the original stipulation," FirstEnergy Director of Rates and Regulatory Affairs Santino Fanelli said in testimony. "The stipulation is a just and reasonable resolution to contested issues raised in underlying cases, which conserves the resources of the parties and avoids potentially costly, extended litigation."

With the support of the consumer groups, the company is now asking the PUCO to formally approve the deal, which stakeholders believe will benefit FirstEnergy's 1.9 million residential consumers with average monthly rate reductions over the next 25 years of $1.64 for Ohio Edison customers, $2.08 for Cleveland Electric Illuminating customers, and $1.90 for Toledo Edison customers.

"We are very pleased with the outcomes of our collaborative intervention into this case to significantly improve the settlement for Ohioans," NOPEC Executive Director Chuck Keiper said. "Putting millions of dollars back into the pockets of our residential customers and working to achieve future rate protections is what NOPEC's consumer watchdog and advocacy mission is all about."

NOPEC and the OCC previously opposed FirstEnergy's plan for $516 million in grid modernization charges. But in a joint statement the two groups said they will no longer oppose the provision in exchange for "improved terms for a future audit of the grid charges and more consumer benefits."

The stipulation among other items calls for PUCO staff or a consultant to perform an operational benefits assessment and review "to evaluate whether the actual functionality and performance of the project is consistent with the planned specifications."

"One of the Ohio Consumers' Counsel's key goals is to convert the utilities' federal tax savings into utility bill savings for consumers," Consumers' Counsel Bruce Weston said. "Our settlement achieves this goal by providing residential consumers with a greater bill reduction from FirstEnergy's tax savings. With the new settlement's additional tax savings for residential

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consumers and a future PUCO audit of the electric grid charges, we decided not to oppose FirstEnergy's initial charges for electric grid upgrades."

Some of the changes in the stipulation from the prior version include:

• Prohibiting the capital costs of up to $516 million for the company's proposed Grid Mod I assets to be used to fund distributed energy resources services on the customer side of the meter.

• Preventing the company from incasing the rate of return it can charge customers on grid upgrade investments above the current 10.38% for three years.

• Eliminating language from the November stipulation stating the stipulation or data within it cannot be offered or relied upon in any other proceeding or before the General Assembly.

• Ensuring the OCC and NOPEC are included as members of any collaborative group or any group formed to gather stakeholder input associated with data access systems and processes.

Following the passage of the 2017 Tax Cuts and Jobs Act, the PUCO began pressing utilities to propose how best they will can return tax savings to their customers. The law cut the corporate income tax from 35% to 21%. The PUCO argued that the dollars utilities have already collected under the prior tax rate should be returned to consumers.

FirstEnergy's November settlement – which the company argued would return $900 million in customer benefits – sparked concern from consumer groups who felt it inappropriately mixed the tax issue with the subject of grid investment. It also prompted questions from Rep. Mark Romanchuk (R-Mansfield) who said he was considering potential legislation to address that intermingling.

Ohio Partners for Affordable Energy has also newly signed onto the agreement. Parties that signed onto the November stipulation have likewise backed the latest version, including: the Ohio Energy Group, Industrial Energy Users-Ohio, Direct Energy Services, the Ohio Cable Telecommunications Association, the Environmental Defense Fund, the Ohio Hospital Association, and Interstate Gas Supply. AEP LEADER OUTLINES CONTINUED PUSH FOR SOLAR PROJECT AEP CEO Nick Akins said the company will continue its efforts to convince state regulators adequate need exists for a proposed 400-megawatt solar farm.

His comments came during the company's fourth quarter earnings call with analysts Thursday and as evidentiary hearings on the project continue at the Public Utilities Commission of Ohio.

"Hearings are continuing this week into next week regarding the question of need for these facilities," Mr. Akins said. "(They are) really focused on a strict definition based on capacity or other broader state initiatives regarding renewables, job creation, state economic development – which Gov. (Mike) DeWine is very interested in – and others."

The project has received the backing of conservation groups and other state energy stakeholders, including the Appalachian Ohio Solar Jobs Network and Ohio Partners for Affordable Energy. But some parties, including PUCO staff and the Ohio Consumers' Counsel, question whether the company has demonstrated adequate need for the project – a legal requirement for the proposal to proceed.

"It is interesting to note low-income customers support us in this case because of the accessibility of renewable resources that would not otherwise be available," Mr. Akins said of the debate. "This position goes directly to the message that utilities are inherently equipped to provide the scale to reduce cost and the ability to provide universal access to these types of resources and technologies."

Hearings began last week and are scheduled to continue as both sides debate the question of need. Proponents believe the plan would save $218 million compared to market forecasts over the project's 20-year lifespan.

"After the hearings we will continue to push this process forward to resolve this important process in Ohio," Mr. Akins said.

Asked whether solar was a risk considering the drop in prices of solar power and whether more customers are signing disadvantageous contracts to hedge against solar volatility, Mr. Akins replied it's not a risk if the company maintains its course of attempting to advance solar generation.

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"We are in discussions with many customers about what their specific resource needs are," he replied. "We're also looking at various technologies that enable that to happen. Some of these are large customers. So we really have an opportunity to engage in that discussion.

"But the other part of it, too, (is) you see solar, you see energy storage. Those types of applications continue to advance and certainly on the transportation sector you're making up whatever you're going to lose. You're going to make it up with sales channel growth, particularly associated with the advent of electric transportation," he added. "So there are real opportunities for us to engage in that, and I think AEP is in a very favorable situation of being able to focus on those type of issues." Monday, January 28, 2019 NEW DEWINE PANEL TO REVIEW INFRASTRUCTURE NEEDS, ENHANCEMENTS A panel established Monday by Gov. Mike DeWine has just a few weeks to make recommendations for ways the state's transportation infrastructure can be preserved and enhanced.

The new Governor's Advisory Committee on Transportation Infrastructure is tasked with offering suggestions on the issue by the middle of February.

"Investing in Ohio's transportation network is also an investment in the future of Ohio's high-performance economy," Mr. DeWine said in announcing the panel. "We must ensure that our transportation system is not only safe and reliable, but that it also strengthens our economy by offering accessibility for current and new businesses."

The committee includes:

• Jim Aslanides, a former state lawmaker and president of the Ohio Oil & Gas Association;

• Matthew Blair, Partner, Blair & Latell Co., LPA;

• Nicole Busey, Tax Director Indirect Tax Compliance & Planning, Marathon Petroleum;

• Richard Dalton, Business Manager, International Union of Operating Engineers, Local 18;

• Marcus Hanna, CFO, Castellini Management;

• Ed Harmon, Chairman/President, NAI Harmon Group;

• Akron Mayor Dan Horrigan;

• Mike Jacoby, President/CEO, APEG;

• Muskingum County Sheriff Matthew Lutz;

• Caroline Ramsey, Communications & Intergovernmental Affairs, Honda;

• Dean Ringle, Executive Director of the County Engineers Association of Ohio;

• Kimberly Schwind, Senior Public Relations Manager, AAA;

• Doug Sibila, President/CEO, Peoples Services, Inc;

• Taras Szmagala, Sr. Vice President, Eaton Corporation, and;

• Maryn Weimer, Director of Mobility, Ohio Center for Automotive Research.

Curt Steiner, a spokesman for Fix Our Roads Ohio, welcomed the announcement.

"We are very concerned that Ohio's transportation needs, at the state and local levels, will not be met by the revenue streams that are currently available," he said. "We trust that the Governor's Advisory Committee will bring a focus to this issue and stimulate a productive discussion about potential solutions. A good transportation system is vital to our state's economy and the safety and well-being of its citizens."

The Buckeye Institute also said the committee is a welcome development, but urged state officials "to maintain appropriate user fees to fund infrastructure projects rather than redirecting general revenues to cover funding shortfalls. And we continue to urge policymakers to use taxpayer dollars wisely and enable more money to be spent on more projects by reforming Ohio's expensive prevailing wage law."

The announcement of the entity comes as the DeWine administration prepares to deliver its transportation budget to the General Assembly. AGENCY BRIEFS: BWC AWARDS FIREFIGHTER SAFETY GRANTS The Bureau of Workers' Compensation reported Monday that 22 Ohio fire departments will share $196,896 in grants from a program aimed at protecting firefighters from carcinogens and other harmful health hazards encountered on the job.

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The fire departments funding is provided through BWC's Firefighter Exposure to Environmental Elements Grant Program, which helps departments purchase specialized washing machines, fire station exhaust systems and other safety gear designed to minimize exposure to toxic elements.

"We know residue collected on firefighters' gear during a blaze can cause respiratory disease, cancer and other ailments, which is why BWC started this grant program in 2017," BWC Administrator/CEO Stephanie B. McCloud said in a release. "These dollars save lives and I'm proud BWC is doing its part to protect the first responders who put their lives on the line for us every day."

The grant program, announced as a component of BWC's 2017 rebate, provides a 5-to-1 match up to $15,000 for public and private employers with annual payroll of at least $500,000, the bureau reported. No match is required for employers with less than $500,000 in payroll.

The grant recipients include:

• Pierpont Volunteer Fire Dept. (Ashtabula County)

• Morgan Township (Butler County)

• Auburn Township (Geauga County)

• McGuffey Volunteer Fire Co. (Hardin County)

• Paint Creek Joint EMS/Fire District (Highland County)

• Craig Beach Volunteer Fire Department (Mahoning County)

• Tuppers Plains Fire Dept. Co. (Meigs County)

• Suffield Township (Portage County)

• Franklin Township (Ross County)

• Braceville Township (Trumbull County)

• Central Fire District (Wayne County)

Wednesday, January 30, 2019 APPEALS COURT UPHOLDS CENTRALIZED MUNI TAX COLLECTIONS FOR BUSINESSES The state's highest court could be the next stop for a legal challenge over a controversial budget provision involving city tax collections.

Ohio Municipal League Executive Director Kent Scarrett on Wednesday did not rule out asking the Ohio Supreme Court to weigh in on an appellate court decision that amounts to a setback for cities and villages in their effort to prevent the state from centralizing the collection of municipal net profit taxes.

"Obviously, our folks are disappointed," Mr. Scarrett said in an interview. "We really felt that we had a strong case on a number of different issues."

The potential action at the high court comes following the Tenth District Court of Appeals in a 2-1 ruling upholding the budget provision (HB49, 132nd General Assembly).

More than 160 cities and villages across the state challenged the opt-in centralized collection on numerous grounds, including that it amounted to a violation of the single-subject rule.

The court, however, found the language contained in the two-year spending outline to be within bounds.

"While the revenues at issue stem from municipal — not state — tax, we cannot ignore the interconnected nature of the municipal and state fiscal systems," Judge William Klatt wrote in a decision joined by Judge Lisa Sadler. "Given this connection, there is a practical, rational, and legitimate reason to include the challenged provisions in HB49."

The municipalities also challenge the budget provision on home rule grounds. The court again sided with the state, finding its constitution "endows the General Assembly with the capability to circumscribe the imposition, raising, and collection of a municipal tax."

Judge Gary Tyack, though, took issue with the majority's findings. In a dissenting opinion, he said much of the centralized collection plan makes sense. But he disagreed with a provision charging municipalities a 0.5% administrative fee and another section that penalizes those that do not submit specified information to the tax commissioner in a timely manner.

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"No matter how you spin it or attempt to gloss over it, the state of Ohio is charging municipalities a tax," he wrote. "I do not believe the state of Ohio can legally tax municipalities. Nor do I believe the state of Ohio can legally seize and keep 50% of the net-profit tax due to a municipality, whether you call it a penalty or call it something else. I note that the state of Ohio now apparently has the sole power to decide if it can keep half of the tax revenue due to a city or municipality."

He also cast doubt about the ability of the high court to adequately address the single-subject rule.

"The Supreme Court of Ohio has ignored the One-Subject Rule repeatedly, especially when laws are enacted at the end of a legislative session, commonly called a Lame Duck Session," he wrote. "The same is true when state budgets are being enacted. I doubt that the Supreme Court of Ohio will begin to enforce the One-Subject Rule any time soon, but I am willing to be proven wrong on that issue."

While the OML lamented the court's decision, the Ohio Society of CPAs called it a win for Ohio taxpayers.

"This win is important for Ohio CPAs and the broader business community," Greg Saul, the group's tax policy director, said in a statement. "As the leader of the Municipal Tax Reform Coalition, The Ohio Society of CPAs, has advocated for years to reduce municipal income tax compliance problems for individual and business taxpayers."

Tax Commissioner Jeff McClain also cheered the ruling.

"This is a major victory for Ohio business taxpayers who have been burdened for too long by a municipal tax system that lacks uniformity, simplicity and taxpayer focus," he said. "Businesses now have a choice on whether to use the one-stop state filing option or continue to file and pay tax directly with the municipalities where they earn income. It's a major improvement and it makes Ohio a better place to do business."

Mr. Scarrett said he hopes to work with lawmakers to rebuild the relationship between state and local government, including improving the centralized tax collection system if it remains in place.

"We just hope that the legislature will give credence to the concern of our municipalities when we are talking about the ability to manage our revenues," he said. AGENCY BRIEFS: MORE BWC SAFETY GRANTS ISSUED; AUDITOR Bureau of Workers' Compensation: BWC this week announced the release of $891,979 in grants to 35 employers across 28 counties.

The money comes through the Safety Intervention Grant program, which aims to reduce workplace injuries and illnesses by matching an employer's investment in safety equipment 3-to-1.

"When employers invest in safety, they have fewer workplace injuries and related expenses, saving dollars they can use to grow their businesses and help Ohio prosper," BWC Administrator/CEO Stephanie McCloud said in a release.

AOS: State Auditor Keith Faber reported that after 22 months, Mecca Township in Trumbull County has been removed from the "unauditable" list.

Mecca Township was declared unauditable on June 12, 2017 owing to incomplete financial records and bank reconciliations for the 2016 calendar year.

The township was removed from the list after an audit was completed by the independent accounting firm Perry and Associates. Thursday, January 31, 2019 LAWMAKERS CONSIDER UNEMPLOYMENT COMP SOLUTION BUT PATH FORWARD REMAINS UNCLEAR The Senate plans to make an overhaul of the state's unemployment compensation system a priority this General Assembly, but it remains to be seen if lawmakers can reach a resolution on an issue that has stagnated for several years.

Business and labor groups continue to agree that something needs to be done to shore up the system before another economic downturn hits, but they remain divided on just how to do so.

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Senate President Larry Obhof (R-Medina) said this week he is "not sure" if legislation addressing the solvency of the unemployment compensation system will be a top-10 bill for the session, but he said it will be a priority.

"Unemployment comp is something obviously that we take very seriously and that needs to get done. That is something we will be introducing at some point early in this General Assembly," he said.

One proposal was introduced to address the issue in the 132nd General Assembly – a measure proposed by now-Sen. Kirk Schuring (R-N. Canton) that didn't garner much support from either side and languished in a House committee.

Roger Geiger, executive director of NFIB-Ohio, said the state needs to do something to fix the system because other states have done so since the last economic downturn.

"I think the business community is pretty united in the fact that we need to reform our system," he said in an interview. "We have a system that is insolvent and becomes a crisis the minute we have an economic downturn."

In the last recession, Ohio was one of 49 states to borrow from the federal government, he said. Most states have undertaken efforts to prevent that from happening next time, meaning Ohio businesses would be at a disadvantage if saddled with higher rates.

Mr. Geiger said the debate hinges on four main issues: freezing benefits until solvency, reducing benefits around dependency coverage, increasing the taxable wage base and modifying the number of eligibility weeks.

"To move the system, you've got to be willing to deal with those four components," he said. "Otherwise everything else is kind of window dressing and doesn't get us closer to solvency."

Ohio has gotten away with not addressing the issue in the past several years because the economy has been in good shape, Mr. Geiger said. That could change.

"The big difference this time around is that many of our competitive states have been able to find the political will to get to solvency, mostly around the same issues that we're debating here," he said.

Matt Szollosi, executive director of ACT Ohio, said improving the system would help protect Ohio's workers. The group has pushed back against benefit reductions, including cuts to the number of benefit weeks.

"The building trades have always taken the position that a financially strong trust fund benefits Ohio's workers," he said in an interview. "We certainly have not changed our position in that regard."

Mr. Szollosi said it will take more work to reach an acceptable compromise.

"Unemployment compensation is an issue that will take a great deal of effort to reach consensus. We spent a great deal of time working through the task force on that initiative and thought we had a very competitive proposal," he said. "It was not to be.

"Whether or not discussions resume on unemployment compensation in this General Assembly remains to be seen," he added.

Keith Lake, vice president of government affairs for the Ohio Chamber of Commerce, said any solution needs to be balanced, including more money being paid into the system through taxes in addition to reductions in benefits.

"It's one of our top priorities, but I'm not aware that there's a particular path at this point in time that's being set forth," he said in an interview.

While a balanced solution is needed, Mr. Lake said they aren't committed to any one particular pattern of making that work.

"There are lots and lots of different ways that you could do that and make it work," he said.

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Friday, February 1, 2019 HOUSEHOLDER TALKS POLICY AIMS, RESPECT AND LEGISLATIVE POWER Those broad objectives are in addition to a number of other priorities the new speaker outlined – goals including reshaping the school funding formula through the upcoming budget, restoring prior cuts to the Local Government Fund and exploring whether to support FirstEnergy nuclear plants.

But before the chamber tackles those policy questions, plenty of organizational work remains to be done. Rep. Householder has yet to announce committee chairs, but confirmed he's eyeing Rep. Scott Oelslager (R-N. Canton) to head the powerful Finance Committee and Rep. Bob Cupp (R-Lima) and Rep. John Patterson (D-Jefferson) to co-chair a new education subcommittee.

Leadership teams for both caucuses are expected to be elected Feb. 6 during session. Rep. Householder said he will make committee assignments next week with the expectation committee meetings will begin the week of Feb. 13.

Education Funding: Rep. Householder said he wants to bring about a more equitable and more easily understood funding formula for K-12 education that doesn't rely so heavily on property taxes.

He also expressed a desire to revisit the charter school funding mechanism, potentially making charter school operators nonprofit. "I know they technically are nonprofit," he said, "but that second tier, those management entities, I believe should be nonprofit."

Regarding the formula, he said he considers the legislative framework outlined by Reps. Cupp and Patterson on school funding to be a "very good base plan." The pair has traveled the state to gather feedback from stakeholders as they grapple with the issue. (See Gongwer Ohio Report, January 17, 2019) "(It's) something we can start from and I look forward to them…moving forward with this and I'm going to be a strong advocate for us to find a solution to our school funding dilemma in the state," the speaker said of the potential legislation.

On school safety, the speaker said he wants to empower local districts and parents to be involved in determining which programs work best for their school.

Transportation Budget: The speaker said "all options are on the table" in order to tackle a shortage of dollars to meet infrastructure needs. That includes a potential gas tax increase, which Senate President Larry Obhof (R-Media) has called "unlikely."

The priority, Rep. Householder said, is in maintaining current infrastructure. But that needs to be balanced with technological advances, transit, rail, busing and other opportunities, he added. He said he'll be looking for Gov. Mike DeWine's advisory commission on transportation infrastructure to lay out the issues facing the state, after which lawmakers can take a more targeted approach. "We do have a problem as far as transportation and transportation infrastructure in this state," he said.

Energy Policy: Rep. Householder seemingly indicated support for controversial proposals to financially support struggling FirstEnergy nuclear plants, saying that in his estimation, inaction could potentially be more costly than establishing the previously proposed zero emission nuclear credits program.

"I'm a business person," he said. "There's a huge investment that's been made on those plants. You have to look at the whole picture too. The number of jobs they provide. The fact that zero emissions allows a lot of our factories in the state to continue the way they continue today. And look at the school systems alone. If those plants close down, it affects every single school district in the state of Ohio because we're going to have to fund them."

FirstEnergy's two nuclear plants are scheduled to close beginning in 2020, giving what Rep. Householder called "a pretty narrow deadline" for legislative action. He expressed a desire to fashion a comprehensive energy policy for the state, while noting that undertaking would be a "big lift."

"I know there are a lot of people out there who have ideas in the legislature as far as green energy," he said. "Other people have ideas as far as the mandates are concerned and getting rid of the mandates. I think it's important we put people in a room and let them figure this out. I'm more than happy to be the referee."

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GOVERNOR: TRANSPORTATION INFRASTRUCTURE FUNDING ‘CLIFF’ COMING A state report set for release next week will paint "a pretty grim picture" of the status of Ohio's transportation infrastructure, Gov. Mike DeWine said Friday.

The governor's comments Friday came after he spoke at the Ohio Township Association Winter Conference where he warned that the state is heading toward a "cliff" when it comes to transportation infrastructure funding caused by the end of the revenue stream from bonding future turnpike revenues.

"We have a serious, serious problem in regard to revenue," he said. The release of the report will coincide with the first meeting of the Governor's Advisory Committee on Transportation Infrastructure, at which ODOT Director Jack Marchbanks will be the first witness to testify. The meeting will mark the beginning of a conversation about a problem of a magnitude the governor said he was not fully aware of before taking office.

Upon learning of the extent to which transportation infrastructure funding is lacking due to several factors, Gov. DeWine said he was "shocked." Nonetheless, he said he owes the people of Ohio a candid assessment of the situation.

While Turnpike revenue is one factor in the dearth of funding, so is the proliferation of alternative fuel vehicles, automobiles with greater fuel efficiency and a stagnant gas tax rate. Lawmakers' opinions on how the problem should be addressed vary widely.

Speaker Larry Householder on Friday also addressed the need for a solution during a sit down with reporters. The governor reiterated to township officials that tackling the opioid crisis will be a top priority for his administration. However, he warned that even if the state gets the opioid crisis under control, illicit drug use will always be a problem, noting that methamphetamine use is now on the rise.

But Gov. DeWine said the problem can be curtailed with age-appropriate education for children beginning early on and continuing throughout their primary and secondary educations. "The evidence shows that we've got to start in kindergarten," he said. He also plans to attack the problem by expanding multi-jurisdiction drug task forces and making treatment more readily available.

As for another major issue facing all local government entities – cuts to the Local Government Fund – the governor made no promises, saying he does not have a magic wand to restore all of the funding immediately. "We're not going to be able to solve every problem you have," he said.

Gov. DeWine also praised the township government model, saying there is no government closer to the people. "This is a state of local government," he said. "We kind of like it that way." AGENCY BRIEFS: OEPA; ODNR; ODA Ohio EPA: The agency announced $23 million in financing for central Ohio communities to improve wastewater and drinking water infrastructure.

In total, the low-interest loans are expected to save communities more than $3.6 million. Statewide, there were approximately $188 million in loans made during the fourth quarter of the year, including $10.4 million in principal forgiveness, and all Ohio communities are expected to save more than $37.1 million compared to market rate loans.

The City of Columbus received $23.3 million in loans for improvements to water main lines, sewer laterals and sewer mains, in addition to new fire hydrants and metering equipment. Franklin County also received $330,000 to convert the Century Acres wastewater treatment plant into a pump station. The funding was made available through the EPA's state revolving loan fund.

Natural Resources: The Division of Oil and Gas Resources Management reported 2,992 permits had been issued as of Jan. 26. A total of 2,517 wells have been drilled, with 2,138 wells in production.

Aging: The department announced Feb. 11 is the deadline to nominate older adults to the Ohio Senior Citizens Hall of Fame. The Hall includes more than 450 older Ohioans including business and industry leaders, advocates, community planners, educators and more. Nominees must be Ohio-born or have been residents for at least 10 years and are recognized for accomplishments begun or continued after age 60. The induction will be held in May.

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Monday, February 4, 2019 DEWINE DIRECTS MEDICAID TO BID MANAGED CARE CONTRACTS The Ohio Department of Medicaid has begun the lengthy process of putting the state's five managed care plans out for bid.

ODM started the work Friday at the behest of Gov. Mike DeWine, who a spokesman said "felt it was time to do so."

It will be the first time since 2011-2012 that the state has bid out the contracts for Medicaid managed care organizations, which oversee the administration of benefits for most enrollees. That process lasted about a year and a half, ODM spokesman Tom Betti said.

"Consistent with the governor's directive, we are immediately moving forward with the re-procurement process of our managed care plans," Mr. Betti said in a statement. "We look forward to an open discussion with many of our consumers, advocates, and partners to explore innovative ways to improve the quality of services and care to those we serve, as well as securing the best deal for Ohio taxpayers."

Dan Tierney, a spokesman for Gov. DeWine, said the decision to open a new procurement process stems from a desire to ensure the state is getting a good deal.

"The goal here is to save money, get the best deal for taxpayers," he said in an interview.

Part of the governor's reasoning, although not the whole reason, is an effort to address concerns about the role of pharmacy benefit managers in the Medicaid program, Mr. Tierney said.

ODM last year directed managed care plans to adopt a "pass-through" model for pharmacy benefits, prohibiting the so-called "spread pricing" model that drew scrutiny from lawmakers and others.

An investigation by then-State Auditor Dave Yost also called for further study of what he called the "black box" of information on pharmacy benefit costs.

Legislative leaders have pushed for more transparency on the PBM issue. House Speaker Larry Householder (R-Glenford) told reporters Friday that managed care plans and PBMs were "something we're going to look at hard." (See Gongwer Ohio Report, February 4, 2019)

Senate President Larry Obhof (R-Medina) said Monday he plans to take a deeper look into the decision to re-bid the contracts, but Senate colleagues have suggested it is a good idea.

The five current managed care plans – Buckeye Health Plan, CareSource, Molina Healthcare, Paramount Advantage and UnitedHealthcare Community Plan – have been in place since 2013.

The state's Medicaid program has seen significant changes since the last procurement process. The Medicaid program still fell under the Department of Job and Family Services in 2012. The state has also expanded Medicaid eligibility under the federal Affordable Care Act and moved additional services, such as behavioral health, into managed care since then.

Mr. Betti said the process is still in the early stages of its development, and that it will be "transparent." ODM has the authority to terminate agreements at any time, and can renew or revise contracts every six months, he said. SENATE EXPECTED TO INTRODUCE PRIORITY LEGISLATION THIS WEEK The Senate plans to introduce its first batch of bills Wednesday, with environmental issues expected to be among the top areas of focus for majority Republicans.

Senate President Larry Obhof (R-Medina) said criminal sentencing and regulatory issues will also be among the chamber's priorities.

"You will see all of those and we will run the gamut of issues that we think are important to people in the state of Ohio, whether that's in the criminal justice area or improving the economy or protecting the environment," he told reporters Monday. "I think you'll see a broad-based group of areas and I think you'll see the Senate knock those out fairly quickly."

While he didn't say what the chamber's first bill would address, he said Lake Erie will be a major focus for the caucus.

"Protecting and preserving Lake Erie will be among our more significant goals this year," he said.

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In terms of addressing regulatory issues, one priority bill will be a re-introduction of a prior measure (SB293, 132nd General Assembly) sponsored by Sen. Bob Peterson (R-Sabina) and Sen. Rob McColley (R-Napoleon). The mandate for agencies to reduce the number of regulations passed the Senate last June but did not move out of committee in the House.

Another item expected to move quickly in the Senate next year is a proposed ban on abortions after detection of a fetal heartbeat. That measure is expected to be sponsored by Sen. Kristina Roegner (R-Hudson).

Speaker Larry Householder (R-Glenford) told reporters Friday the House will let the Senate lead the effort to pass the so-called "heartbeat bill."

Sen. Obhof said Sen. Roegner will introduce the measure "soon."

"We will let it run its course through the process and that will take however long it takes, but I expect that it will be expeditious," he said.

"We're going to do that without regard to what the House does one way or the other," he added.

As for committee assignments, Sen. Obhof said at least some announcements are expected this week, with all committees announced by the early part of next week.

"We will try to tackle committee matters and the introduction of the first set of bills at the same time," he said. Tuesday, February 5, 2019 ODOT CHIEF DETAILS TRANSPORTATION INFRASTRUCTURE REVENUE PROBLEMS The state is "looking over the edge of a fiscal cliff" when it comes to transportation infrastructure, members of a panel formed by Gov. Mike DeWine were told Tuesday.

Department of Transportation Director Jack Marchbanks informed members of the Governor's Advisory Committee on Transportation Infrastructure that a stagnant gas tax rate, greater fuel efficiency, alternative fuel vehicles, the end of revenue from turnpike bonds and previous borrowing have created "a perfect storm."

"We are facing a future where we will not be able to maintain the quality of the system we have, let alone improve on it," he said.

The state has the 4th-largest interstate system and the second-most bridges, infrastructure that the director deemed the state's "most valuable physical asset, without question."

A gas tax increase was last approved in 2003, with 2-cent per gallon increases in three consecutive years. However, due to inflation, $1 in 2003 is now worth just 58 cents, according to Mr. Marchbanks. About 44% of the department's budget comes from the gas tax.

Other states, the director said, have indexed their gas taxes to keep pace with inflation.

"If it was indexed, we would be in far better condition," Mr. Marchbanks said.

Dean Ringle, executive director of the County Engineers Association of Ohio, questioned how much revenue a 1-cent increase in the gas tax would generate.

Such an increase would bring $67 million into the state's coffers, the director responded.

Increased fuel efficiency has also taken a toll on revenues. From 2003-2013, gasoline consumption increased just .0033%, according to ODOT.

Another problem with the funding source is the proliferation of alternative fuel vehicles. Mr. Marchbanks said projections are that by 2040, one-third of all vehicles will be electric.

Nicole Busey, a tax director at Marathon Petroleum, asked if there has been any debate about increasing registration fees for alternative fuel vehicles.

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He was told the department explored a $250 fee for electric vehicles and a $75 fee for hybrids. However, that would generate just $2.5 million annually.

The state also has racked up nearly $4 billion in debt in recent years to pay for road and bridge projects, costing $390 million annually in debt service payments.

"The credit cards have been maxed out," the director said.

The $1.5 billion leveraged by bonding the turnpike also is entirely spent or already committed to projects, Mr. Marchbanks said.

Without additional revenue, maintenance projects will have to be put on hold, he said. "Delaying needed maintenance only results in more cost in the long run."

Without a solution to the revenue problem, roadways and bridges are in danger of falling into states of disrepair that could endanger motorists, Mr. Marchbanks said.

That point was reiterated by State Highway Patrol Col. Paul Pride.

"The thing that concerns me is the condition of our roadways and bridges," he said.

In written testimony provided to the panel, Chris Zeigler, executive director of the American Petroleum Institute of Ohio, took no position on a potential gas tax increase. However, he did say the organization will not support indexing the tax.

"We also do not support indexing the motor fuel tax rate to account for inflation; any future tax adjustments should be determined by the elected leaders in office at that time," he wrote.

The panel will meet again Wednesday to field testimony from the public. CANNABIS, FARM GROUPS BACK LEGAL STATUS FOR INDUSTRIAL HEMP Groups are pushing for Ohio lawmakers to create a legal framework for industrial hemp, following on the heels of federal changes in the latest Farm Bill.

The Ohio Hemp Farmers Cooperative and the Ohio Cannabis Chamber of Commerce are pushing simple legislation that would create a definition of hemp separate from that of marijuana, making it a commodity crop regulated by the Department of Agriculture.

The Ohio Farm Bureau Federation has also come out in support of the production, processing, commercialization and utilization of industrial hemp.

The legal status of hemp in Ohio has prompted some debate after the State Board of Pharmacy announced last year that hemp-derived cannabidiol is a marijuana product under state law and therefore falls under the state's medical marijuana program.

The 2018 federal Farm Bill allows for the cultivation of industrial hemp, which means cannabis plants containing no more than 0.3% THC.

Julianna Doran, with the Ohio Hemp Farmers Cooperative, said the change at the federal level eased concerns in the hemp industry nationwide, but Ohio law still prohibits the product.

"Now it's considered a commodity crop. You can get crop insurance, your banking can be open now," she said in an interview. "There's no fear in that industry anymore. Ohio has still not put together a program or legislation on it."

The legislation she is backing would simply recognize that hemp is a commodity crop separate from marijuana.

"They're both cannabis plants, but they're both not marijuana," she said.

Allowing farmers to grow hemp would support agriculture in the state and give them another way to try to make a profit.

"It would just grow the whole industry in Ohio," Ms. Doran said. "This is a total turnaround for the farmers."

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Hemp can be used to produce CBD oil along with food, fiber, paper and biofuels, among other uses, she said.

In December, the Ohio Farm Bureau Federation also created a new policy to support a legal approach for the production of industrial hemp, spokesman Joe Cornely said.

"We'd prefer it be regulated by the USDA rather than another federal agency," he said.

The American Farm Bureau Federation previously backed a legal framework for industrial hemp.

"Farmers are always looking for new opportunities. If somebody thinks this is going to become the next super cash crop in Ohio, I think they're probably stretching it a bit, but it's probably appropriate for certain farmers in some parts of the state," Mr. Cornely said. "If a farmer wants to do this, the law shouldn't get in the way." Wednesday, February 6, 2019 TRANSPORTATION PANELISTS REVIEW POTENTIAL GAS TAX INCREASE Several members of an advisory panel formed by Gov. Mike DeWine said Wednesday the state's gas tax needs to be increased.

That was one of the few points on which there was largely consensus among members of the Governor's Advisory Committee on Transportation Infrastructure.

After two days of hearings, the group's recommendations will be compiled into a report that will be released ahead of the upcoming transportation budget, according to Brenton Temple, director of intergovernmental affairs in the governor's office.

While the panel appears to largely be in consensus that a gas tax increase is needed to address a major revenue shortfall for transportation infrastructure projects, no specific recommendation on the size of the increase was made.

However, some members did offer their own thoughts, including Dean Ringle, executive director of the County Engineers Association of Ohio. He suggested the state needs to boost revenue for state projects by $1 billion and bring another $1.5 billion into the coffers of local governments, although he said that not all should come from a gas tax increase.

His suggestion came on the heels of Doug Sibila, president and CEO of Peoples Services, saying the gas tax rate should be increased by as much as 25 cents per gallon to generate $1 billion, about $550 million of which would be made available to local governments.

Mr. Sibila also said the gas tax needs to be indexed to inflation. Others, like Richard Dalton, business manager at the International Union of Operating Engineers, Local 18, agreed. But he also said the state needs to capture revenue from alternative fuel vehicles.

That suggestion, though, was met with skepticism by some members of the panel who said they fear excessive fees could discourage the purchase of such vehicles.

"I question if that's a good wisdom," said Ed Harmon, chairman and president of NAI Harmon Group, said in response to calls for fees on such vehicles.

Marcus Hanna, CFO at Castellini Management, noted that ODOT Director Jack Marchbanks said the department explored a $250 fee for electric vehicles and a $75 fee for hybrids. However, that would generate just $2.5 million annually.

He questioned how much of that revenue would be consumed by administrative costs.

Nicole Busey, a tax director at Marathon Petroleum, said any indexed gas tax increase should be subject to legislative review after a period of time. She also warned that it would be the only tax in Ohio to be indexed. To help local governments, she suggested lawmakers increase caps on permissive fees.

Jim Aslanides, a former state lawmaker and president of the Ohio Oil & Gas Association, said another potential source of revenue could come from the state leasing land it owns for oil and gas development. A similar proposal in Pennsylvania generated $420 million in its first year and $100 million annually since.

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The panel also discussed the possibility of increasing or implementing tolls on certain roads, although several criticized the idea.

Public Testimony: The recommendations came after the panel fielded two hours of public testimony and once again heard from Mr. Marchbanks.

The director, testifying for the second consecutive day, largely took questions from the panel, including on the extent of the shortfall ODOT faces.

Mr. Marchbanks said the annual shortfall is $1 billion and that it would take five to seven years to catch up on deferred maintenance if the state had all the money that it needed.

"We're looking at a generational improvement here," he said.

During public testimony, many witnesses urged the panel to recommend increasing the 28 cents-per-gallon motor vehicle fuel tax.

Director Marchbanks said Tuesday that each one-cent increase in the rate would raise about $67 million a year.

Delaware County Engineer Chris Bauserman called for the rate to be increased and indexed for inflation. He also urged the panel to think of the gas tax as akin to fees for the use of water or sewer service.

"The gas tax that we currently have is a user fee," he said. "It's unfortunate we call it a tax."

Asked specifically how he would index the tax, Mr. Bauserman said other states have used a construction price index model.

Mr. Ringle asked about the statewide perspective on the transportation infrastructure needs of counties.

Mr. Bauserman said the needs amount to about $1.12 billion annually. Yet, the gas tax revenue funneled to counties each year totals just $450 million.

Tom Balzer, president and CEO of the Ohio Trucking Association, said the average Ohioan pays just $11.41 per month in the fuel tax.

"My Netflix bill was more than that this month," he said, adding that the average gas tax rate in surrounding states is $41.48.

Jon Honeck, senior policy advisor for the County Commissioners Association of Ohio, said permissive license fees brought $103.2 million in for counties across the state, although he added that the money does not go a long way in less populous counties.

"From a county perspective, there is simply no substitute for a strong state financial partnership to address the needs of our transportation infrastructure," he said.

Christine Matacic, a trustee in Butler County's Liberty Township, proposed a transportation improvement rating exchange, which she said would capture the estimated amount of fuel tax not paid by drivers of alternative fuel vehicles.

Asked about a potential gas tax increase, she said she would prefer to go other routes to generate needed revenue.

Other witnesses spoke of the need for additional funding for mass transit, including Jason Warner, manager of government affairs at the Greater Ohio Policy Center. He said such an investment will ease pressure on state roadways.

Stu Nicholson, public affairs director at All Aboard Ohio, lamented the lack of public transit advocates on the panel.

However, Akron Mayor Dan Horrigan assured him that the views of public transit advocates are represented.

The panel also received testimony from the American Council of Engineering Companies of Ohio; the American Petroleum Institute Ohio; the Ohio Aviation Association; Gallia County Engineer Brett Boothe; the Great Lakes Construction Co.; Middletown Mayor Larry Mulligan; Lakewood Mayor Mike Summers; the Mid-Ohio Regional Planning Commission; Move

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Ohio Forward; the Ohio Association of Regional Councils; the Ohio Fire Chiefs Association; the Ohio Township Association President Connie Fink; the Ohio Municipal League; and the Cleveland NAACP.

Legislative Leaders: Both Speaker Larry Householder (R-Glenford) and Senate President Larry Obhof (R-Medina) were coy Wednesday about the possibility of a gas tax increase.

"I told the governor that we would be willing to keep our powder dry and hear them out and listen to what the facts are and make decisions," Rep. Householder said.

He said he doesn't have a date in mind by which to pass the transportation budget so the Senate can begin its review, but that he's not worried about the potentially tight timeline.

"We'll be alright," he said. "Our goal is to have it for a couple of weeks and give it to our friends in the Senate so they can chew on it and I think we'll be fine."

Sen. Obhof promised "full and fair hearings" of the issues in the upper chamber.

"As a general proposition, I would say that most people in this chamber that I have served with, we have been in favor of decreasing the tax burden," he added.

He said one or more Senate committees likely will extend invitations to testify to witnesses who appeared before the governor's advisory committee. However, he declined to paint the situation in the same stark terms as others have.

"I think there's a legislative process that we'll go through over the next two months and members of the Senate will decide for themselves what they think the facts are," he said.

"We will have a process for determining whether there's a problem and if there is what the magnitude of that is." REPORT SEEKS INCREASED STATE SPENDING ON SERVICES AS BUDGET PROCESS LOOMS A recent report on state funding priorities is the latest in a series of advocacy papers being flagged for policymakers ahead of the upcoming two-year budget deliberations in the General Assembly.

The new report from Policy Matters Ohio states among other things that the quality of public services has suffered due to lack of funding. It drew immediate pushback from the Buckeye Institute, which is preparing its own take on the direction state policymakers should take in crafting the biennial spending plan.

The left-leaning think tank argues that tax cuts meant to promote economic growth have failed to do so while contributing to wealth inequality and leaving state services underfunded.

As state legislators begin debate for the budget, Policy Matters argues that funding for education, health and human services, and local governments should be prioritized. Increased funding in those areas could be offset by ending income tax cuts that they have argued contribute to inequality.

According to Policy Matters research, Ohio's General Revenue Fund spending, adjusted for inflation, has decreased by more than 8% since 2006. The plurality of the fund goes to primary and secondary education, which they argue should see spending increases.

"For students, the outcome of overreliance on unequal local resources is, on average, unequal achievement, with implications for lifetime opportunity" wrote Wendy Patton, senior project director for Policy Matters' State Fiscal Project.

Greg Lawson, a research fellow with the free enterprise focused Buckeye Institute, argues that the problem is not the amount of overall spending but rather its allocation and regulation. The free market think tank states that in regard to K-12 "funding should follow the student," which is being hampered by caps on both charter schools and growing public schools.

Health and human services accounts for the next largest share of state GRF spending. Policy matters stated that funding should be increased because Ohio ranks 46th in the nation for health value, and because Medicaid, which covers one quarter of Ohioans, provides the most funding in the state for drug abuse treatment. Non-Medicaid human services spending has decreased by nearly 13% since 2006 when adjusted for inflation, according to the think tank.

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In Buckeye Institute's view, Mr. Lawson said, "Rather than funding these wrap-around services which Policy Matters sees as investments, the state should focus on the source by fostering job prospects and family stability."

The Policy Matters report stated that local governments have seen their share of state spending decrease and have become more reliant on federal funding, which may not be permanent following federal tax cuts passed in 2017. The group also argues that local governments have lost out on proper investment despite the state's rainy-day fund growing yearly.

Mr. Lawson, however, noted local governments can raise funds outside of the state's revenue stream. He said that the problem arises when local governments receive funding and spend it without transparency.

Policy Matters said services are underfunded in part because of tax expenditures, which outsize both Medicaid and education spending. The Buckeye Institute agrees that some of these "tax loopholes," which total over $9 billion a year in foregone revenue, should be closed. Thursday, February 7, 2019 NEW EFFORT TO REVISE CONSTITUTIONAL AMENDMENT PROCESS TAKES SHAPE A House lawmaker is prepping a new attempt to adjust requirements to propose constitutional amendments through a resolution he argues would protect the state's founding document from out of state interests.

But the same concerns citizen groups outlined last session over the legislature's prior attempt to address the issue (HJR19, 132nd General Assembly) remain.

The new effort comes from Rep. Kyle Koehler (R-Springfield), who in an interview sought to distance his plan from the version discussed last session.

"The most important thing is we're not asking for one more signature," Rep. Koehler said. "What (the resolution) does is it spreads out the number of signatures so that more Ohioans get a say in what goes into our Constitution. That's the key thing."

Rep. Koehler's upcoming joint resolution would require a minimum number of signatures from three-fifths (60) of the 99 House districts. Currently, minimum signature standards apply to 44 of Ohio's 88 counties. The proposal would also change the minimum number of signatures required from the current 5% per county to 10% per district.

The overall number of signatures required, which is equal to 10% of the votes cast in the most recent gubernatorial election – currently 442,958 – would not change, Rep. Koehler said.

Nevertheless, opponents remain skeptical of that claim and are awaiting the final language.

Last session's proposal, offered by Rep. Sarah LaTourette (R-Bainbridge Twp.) and Rep. Glenn Holmes (D-McDonald) would have revised signature requirements and deadlines and increased the threshold needed to approve an amendment to 60%.

"We're not asking currently to change anything about the number of votes when you get to the election," Rep. Koehler said of comparisons with HJR19.

Opponents of the previous legislative effort are already working to mobilize allies against Rep. Koehler's expected legislation. That includes the Fair Districts=Fair Elections Coalition, which helped lead opposition to HJR19 last year.

"In addition to increasing the geographic scope it also would become really difficult to verify that we are meeting the new standards since it is hard to track voters by district," said Jen Miller, executive director of the League of Women Voters of Ohio. "Much harder than tracking by county.

"But more importantly it is already very difficult to get a constitution amendment on the ballot and it is very rare that they pass," Ms. Miller added. "The state should not be making it harder. If he wants to protect the constitution while preserving direct democracy they should ease the initiated statue route."

Innovation Ohio, in its own analysis, opined "the proposal will absolutely make it much harder for grassroots campaigns to succeed."

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The sponsor said his concern is that under the current setup, a campaign can gather 27,000 signatures from the 43 smallest counties in the state and collect the remainder from a single large county like Cuyahoga, Franklin or Hamilton. By requiring signatures from more areas of the state, Rep. Koehler said more Ohioans could weigh in on the process.

"They're saying I'm trying to make it harder. I'm not," Rep. Koehler said of opponents. "But it is more difficult to be able to give Ohioans more say in what goes into our constitution. If it takes more effort to do something, then I don't see that as a detraction from it.

"Weren't not trying to deter people," he continued. "We're trying to allow Ohioans – more Ohioans, a diverse group – to have say in what goes into the constitution."

House Speaker Larry Householder (R-Glenford) said earlier this month he's open to the conversation but he has made no "preconceived decisions."

"Anytime you talk about making something more difficult for citizens I think you have to be very careful because you want the citizenry to have access to as open government as they possibly can," Rep. Householder said. "I'm concerned about that, but I also know there's an argument out there Ohio's sort of become the test field for a lot of ideas that Ohioans may or may not support and it's getting very expensive around here as far as these campaigns are concerned."

Senate President Larry Obhof (R-Medina) said Wednesday he intends to discuss the issue with his House counterpart to get more clarity on where Rep. Householder stands.

"I do think that one way or another something needs to be done on that front," Sen. Obhof said. "Ohio shouldn't turn into California. We don't need to have our foundational document meddled with every time somebody with a big pocketbook comes by and tries to enshrine forever whatever special interest they're involved in." Friday, February 8, 2019 SPEAKER RELEASES COMMITTEE ASSIGNMENTS; OELSLAGER TO CHAIR HOUSE FINANCE Rep. Scott Oelslager, the Canton Republican who chaired the Senate Finance Committee last session, will lead the House Finance Committee in the new General Assembly, House Speaker Larry Householder announced Friday.

The appointment of Mr. Oelslager was included in a complete committee assignment roster released by the speaker.

"Members of the Ohio House have a great wealth of knowledge and expertise," the speaker said in a release. "The work of the committees will be essential to us in the 133rd General Assembly as we begin enacting our policy agenda to improve the lives of Ohioans."

The speaker's selections for committee chairs reflect a mix of those who supported his leadership bid and backers of Rep. Ryan Smith(R-Bidwell). Also notable were the bipartisan co-chairs of a few subcommittees – an arrangement that helped bring half of the Democratic caucus to his side in the speakership vote.

House Minority Leader Emilia Sykes (D-Akron) lauded that approach in a statement.

"I'm proud of the tremendous leadership and experience our caucus brings to the table on the issues that matter most to Ohioans. I'm confident we were able to put the right people in the right places to begin addressing the challenges facing our state," she said. "Taxpayers deserve a cooperative approach to commonsense policies that let all of our children, families and residents experience the full opportunity and promise of Ohio."

The Criminal Sentencing Subcommittee will be co-chaired by Rep. Sarah LaTourette (R-Chesterland) and Rep. Tavia Galonski (D-Akron).

The Energy Generation Subcommittee will be led by Rep. Dick Stein (R-Norwalk) and Rep. Michael O'Brien (D-Warren).

Co-chairs for the Finance Subcommittee on Primary & Secondary Education are Rep. Robert Cupp (R-Lima) and Rep. John Patterson (D-Jefferson).

Chairs of the other standing committees are as follows:

• Aging & Long-Term Care: Rep. Steven Arndt (R-Port Clinton).

• Agriculture & Rural Development: Rep. Kyle Koehler (R-Springfield).

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• Armed Services & Veterans Affairs: Rep. Rick Perales (R-Beavercreek).

• Civil Justice: Rep. Steve Hambley (R-Brunswick).

• Criminal Justice: Rep. George Lang (R-West Chester Twp.).

• Commerce & Labor: Rep. Gayle Manning (R-North Ridgeville)

• Economic & Workforce Development: Rep. Paul Zeltwanger (R-Mason).

• Energy & Natural Resources: Rep. Nino Vitale (R-Urbana).

• Federalism: Rep. John Becker (R-Union Twp.).

• Finance Subcommittee On Agriculture, Development, & Natural Resources: Rep. James Hoops (R-Napoleon).

• Finance Subcommittee On Health & Human Services: Rep. Mark Romanchuk (R-Mansfield).

• Finance Subcommittee On Higher Education: Rep. Rick Carfagna (R-Westerville)

• Finance Subcommittee On Transportation: Rep. Dave Greenspan (R-Westlake).

• Financial Institutions: Rep. Kris Jordan (R-Ostrander).

• Health: Rep. Derek Merrin (R-Monclova Twp.)

• Higher Education: Rep. Candice Keller (R-Middletown).

• Insurance: Rep. Tom Brinkman (R-Cincinnati).

• Primary & Secondary Education: Rep. Louis Blessing II (R-Cincinnati)

• Public Utilities: Rep. Jamie Callender (R-Concord).

• Rules & Reference: Rep. Householder.

• State & Local Government: Rep. Scott Wiggam (R-Wooster).

• Transportation & Public Safety: Rep. Doug Green (R-Mt. Orab).

• Ways & Means: Rep. Tim Schaffer (R-Lancaster).

Many of the committees immediately scheduled organizational meetings for next week.

All of the chairmanships as well as the vice chairs and ranking minority members receive stipends for their additional duties.

The Finance Committee chair receives an additional $10,000 a year in salary, the vice chair of that panel gets $5,500, and the ranking minority member $ 6,500. Chairs of the standing subcommittees receive $6,500 and the ranking minority member $5,000.

Chairs of the other standing committees get a $6,500 boost, and the vice-chairs and ranking minority members both receive $5,000.

Members of leadership also receive additional pay, as spelled out in the Legislative Service Commission's Guide for Lawmakers. Base salary this year for legislators is $60,584. PELANDA TO LAUNCH STATEWIDE LISTENING TOUR AS NEW ODA HEAD Ohio Department of Agriculture Director Dorothy Pelanda has hit the "pause button" on the prior administration's controversial Lake Erie proposal as she prepares to launch a listening tour to gather feedback on how to proceed.

Water quality and harmful algal blooms are among the most pressing issues facing Ms. Pelanda, who last month assumed leadership of the agency charged with regulating Ohio's largest industry and helping farmers and agribusinesses flourish.

A four-term House lawmaker with three decades of experience as an attorney, Ms. Pelanda said her approach to the job in Gov. Mike DeWine's administration will be to spend as much time as possible on the front lines of the industry, gathering direct feedback from stakeholders on the health of Lake Erie and other key issues.

"I intend to be out in the field, meeting with farmers at their kitchen table," Ms. Pelanda said in an interview. "Meeting with the various stakeholders at their offices and at their homes so that the message is clear: Gov. DeWine has pushed the reset button and wants to bring everyone together."

The Kasich Administration last year attempted to boost regulations on farmers in certain watersheds contributing to algal blooms. But resistance among lawmakers on the Joint Committee of Agency Rule Review and from the agricultural industry derailed the effort.

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One of Ms. Pelanda's first acts in office was to change the rules package's status before JCARR to "to be refiled," giving her and her counterparts – Department of Natural Resources Director Mary Mertz and Environmental Protection Agency Director Laurie Stevenson – more time to evaluate the situation.

"That did not move the rules forward, it didn't stop the rules," Ms. Pelanda said. "It simply pushed the pause button. We feel that is the best thing to do as new players – explore the options, which is what we're doing right now."

The goal of her listening tour is to traverse every county within a three-month period to meet with stakeholders "to listen to their histories, their perspectives and their ideas for water quality." During that time, she said, Assistant Director Tim Derickson will handle much of the day-to-day operations at the department's 158-acre campus in Reynoldsburg.

"My job is to listen, to be an active listener fully focused with an open mind on these issues and to bring people to the table," Ms. Pelanda said. "I truly believe the people that have the best solutions are the people that are closest to the problem. I will make it clear in these meetings that I am loyal to the right solution, not to any one person or interested party."

There's no target date yet in which the administration hopes to finalize its approach to Lake Erie protections, but the director said the administration is striving toward "tangible, shovel-ready ideas within the very near future."

Discussions, meanwhile, are continuing on how best to utilize tens of millions of dollars in new funding from a recent Lake Erie-focused funding law (SB299, 132nd General Assembly). The prior administration had proposed to use those dollars to support its failed regulatory effort.

Gov. DeWine has labeled water quality issues a priority for his governorship, but it's hardly the only focal point for Ms. Pelanda. She said safety remains a priority, in areas ranging from amusement ride inspections to food processing.

In her recent updated budget memo to the Office of Budget and Management, Ms. Pelanda wrote that she shares the prior administration's concerns with funding levels for the Division of Meat Inspection and the Division of Amusement Ride Safety and Fairs. The agency has requested flat funding in those areas but federal support for the former is dropping and the implementation of potential changes in national amusement ride standards could require more resources moving forward.

Director Pelanda is also working to fulfill Gov. DeWine's direction that cabinet members pursue ideas to support programs and policies to benefit Ohio's children. In ODA's case, the director said, the department aims to put more resources behind boosting awareness and participation in the Farm to School program, a federal initiative that educates students in all grade levels about the farming industry.

"We have programs in our schools now from fourth grade on up, but there has not been a lot of focus on elementary age education about food and the food industry," Ms. Pelanda said. "We now have a new communications person who will be coming on in March whose sole focus is children's initiatives."

Ms. Pelanda grew up on a family farm in Marysville where she still resides. She said that experience gave her an up-close look at farm life and agriculture's impact on Ohio. But her appointment to the post turned some heads given what some considered her lack of on-the-ground farm experience compared to that of past directors.

Asked about that reaction, she points to the photo hanging in her office of her great-great-great uncle, Gideon Liggett, who served on the Board of Agriculture, the ODA's predecessor.

"We have a long history of farming in our family," she said. "To those that have that question they simply don't know my background in those areas. Now that being said, I'm not going home today and getting on my tractor to plow the back 40. But I do have an understanding of the issues because I live them daily on that farm."

She said her time as an attorney and lawmaker helped her hone her ability to negotiate and compromise. Her relationships with lawmakers and insight into the budget-writing process also will be key assets, she said.

As director, Ms. Pelanda leads a staff of 460 employees and earns a salary of $140,005.

"I'm excited about the challenges that lie ahead," Ms. Pelanda said. "We've got a great team with Gov. DeWine and in the cabinet, who are energized and moving forward, and we can't move fast enough on some of these issues."

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PARTIES BEING PROCESSING NEW TELECOM REGULATORY LAW Staff of the Public Utilities Commission of Ohio this week gathered early feedback on how to go about implementing a telecom deregulation bill signed into law last year.

The conversation centers on legislation (HB402, 132nd General Assembly) that was a priority for the Ohio Telecom Association during the last session. Advocates argued the law modernizes regulations that hadn't been updated in a decade.

The law enables incumbent local exchange carriers to increase rates for basic service by up to $2 per year and permits carriers to apply to the PUCO for an exemption from rate regulation in an exchange area no earlier than four years after the bill's effective date.

It further requires PUCO staff to issue a report no later than three years after the bill's effective date outlining the number of basic local exchange lines in service in Ohio and both the aggregate amount of line loss and the change in price for basic local exchange service rates since the law went into effect. The PUCO must submit a report to the House and Senate no earlier than four years after the measure's effective date assessing the staff report.

PUCO attorney examiner Jay Agranoff said staff has identified six rules it believes need updated to comply with the law. Because the commission has yet to issue its proposed rule changes, stakeholders can't formally submit comments. Thursday's workshop instead enabled to them lay out their preliminary thoughts on the path forward.

Jon Kelly, general attorney for AT&T, said the company has also identified six rules for proposed amendments. But he said some of those rules differ from the list outlined by PUCO staff.

One of Mr. Kelly's suggestions is for the PUCO to require access line counts to be filed as part of telephone companies' annual reports. He said such information used to be a requirement, which would help regulators track changes among access lines by exchange.

"That's certainly one of the options," Mr. Kelly said. "I think the statutory language contemplates exchange-based relief so if a company for example just wants the relief in half of its exchanges, you're going to need that information on an exchange specifically at some point."

Attorney Gretchen Petrucci said the Ohio Cable Telecommunications Association has also identified several proposed changes for rules, including one pertaining to the exemption applications.

"We'd again suggest for those exemption applications there be minimum content required that if it includes a price decrease the application info would include a demonstration the decrease does not fall below incremental cost," Ms. Petrucci said. "Then also we also think there's an important piece to this that a customer notice be included with the exemption application."

The OCTA is also recommending the commission establish a new case code to more easily identify applications from other rate adjustment cases, she said.

The OTA for its part is still considering how to weigh in, counsel Scott Elisar told the staff panel.

"OTA will be gathering shortly to participate in the comment process, however, at this time we have not yet had the opportunity to meet to make formal comments in this process," he said. ENVIRONMENTAL GROUPS SUE ON LAKE ERIE PHOSPHORUS, BALLOT ACCESS Environmental advocates are again suing the federal government, alleging inadequate oversight of Ohio's approach to whether to declare Lake Erie's waters as "impaired."

Meanwhile, a number of environmental activists are suing Secretary of State Frank LaRose and several boards of elections after their anti-oil and gas ballot efforts were blocked from the ballot.

Both complaints were filed in the U.S. District Court for the Northern District of Ohio.

In the former case, the Environmental Law and Policy Center and Advocates for a Clean Lake Erie are suing the U.S. Environmental Protection Agency and its administrator, Andrew Wheeler, along with acting Regional Administrator Cathy Stepp.

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They're asking the court to review the U.S. EPA's approval of an Ohio EPA 2018 report, which they deem legally inadequate because it provides no plan for reducing phosphorus in western Lake Erie. Plaintiffs are requesting a specific timetable for the cleanup of that phosphorus, which contributes to harmful algal blooms.

"The Clean Water Act provides a specific legal pathway to reduce phosphorus pollution causing harmful algae blooms in western Lake Erie, but U.S. EPA and Ohio EPA refuse to follow the law," ELPC Executive Director Howard Learner said in a statement. "The court should require EPA to do its job well by promptly adopting and implementing an effective Clean Water Act plan to limit manure and fertilizer runoff that causes harmful algal blooms."

A similar lawsuit from the same groups was dismissed last year by Judge James Carr, but not before the judge castigated Ohio leaders for "persistent failures" and for "playing a game of administrative pushball." (See Gongwer Ohio Report, October 9, 2018)

Officials under the new administration of Gov. Mike DeWine have labeled the protection of Lake Erie a priority and the new directors of the OEPA and the departments of Agriculture and Natural Resources have said they are working to develop "shovel ready ideas" to tackle the issue.

Election Lawsuit: Plaintiffs in the ballot access case come from seven counties – Athens, Franklin, Lucas, Mahoning, Medina, Meigs and Portage – and allege that their ballot issues seeking to ward off oil and gas development should have been allowed to proceed before voters in those counties.

The ballot issues in question are all some form of the so-called "Community Bill of Rights" proposals, which are backed by the Community Environmental Legal Defense Fund and aimed at curbing oil and gas development.

"For several years, Ohio election statutes have unconstitutionally restricted plaintiffs' rights to place proposed measures on the ballot by allowing defendants to engage in content based, preenactment review of proposed ballot measures," the complaint reads. "Further, throughout the past several years, plaintiffs have been subject to unconstitutional application of Ohio's election laws by their respective defendant election officials."

CELDF-backed groups won victories last year in securing access to the ballot in some areas, but even in those cases voters have been reluctant to embrace the proposals at the bolls.

Their latest lawsuit also continues to criticize prior legislative action (HB463, 131st General Assembly) adopted in direct response to CELDF's efforts. That law in part granted local boards the authority to reject ballot issues contradiction the constitution or law. AGENCY BRIEFS: AUDITOR; EMA; ODNR State Auditor Keith Faber released a report this week ordering Christy Ahrens, fiscal officer of Beavercreek Township in Greene County to repay $2,015 for late fees and interest because of untimely payments.

Auditors found the township paid $2,312 in late fees and interest from June 2016 to September 2018 to vendors including Lowe's, the Department of Job and Family Services, Spectrum Business and PNC Bank. The township has been able to recover $297 of previously charged late fees.

"I commend our staff for identifying these issues," Auditor Faber said in a statement. "I encourage the township to put strong controls in place to avoid similar issues in the future"

Emergency Management Agency: The agency reported a rebate is now available for the construction or installation of tornado safe rooms.

Residents selected for the program could be eligible for a rebate of up to 75% of the cost to install or construct a safe room, up to $4,875. Applications are open through April 1.

"The entire state of Ohio is at risk of an EF5 tornado, which produces 250 mile per hour winds capable of destroying most structures," said Steve Ferryman, Ohio EMA mitigation branch chief. "A safe room is built to withstand these winds and resulting airborne debris and provides near absolute protection for occupants."

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Natural Resources: The department announced the expansion of the Division of Forestry's Forest Fire Protection Area for the first time since the 1970s. Forest cover has increased since then, meaning more areas needed to be protected from wildfires.

The area now includes all of the following counties: Adams, Ashland, Ashtabula, Athens, Belmont, Brown, Carroll, Clermont, Columbiana, Coshocton, Fairfield, Fulton, Gallia, Geauga, Guernsey, Harrison, Henry, Highland, Hocking, Holmes, Jackson, Jefferson, Lawrence, Licking, Lucas, Knox, Meigs, Mahoning, Monroe, Morgan, Muskingum, Noble, Perry, Pike, Portage, Richland, Ross, Scioto, Stark, Trumbull, Tuscarawas, Vinton and Washington.

"The expanded wildfire protection area contains approximately 580 fire departments, a significant increase from approximately 325 fire departments contained in the protection area prior to the expansion," said Greg Guess, deputy chief and wildfire program coordinator for the ODNR Division of Forestry. "The ODNR Division of Forestry is looking forward to partnering with more rural fire departments to increase wildfire protection efforts in their communities."

The Division of Wildlife reported Ohio hunters checked 172,040 white-tailed deer during the 2018-2019 deer season, down compared to 186,247 checked the previous year.

The Division of Oil and Gas Resources Management reported a total of 2,993 permits had been issued for drilling in the Utica shale as of Feb. 2, with 2,524 wells drilled and 2,141 wells in production. CAPITOL SCENE: OTA HIRES ANNOUNCED The Ohio Township Association has announced the hiring of Marisa Myers as director of governmental affairs and Sarah Crock as public relations coordinator. Both new hires previously worked at the Ohio House.

Ms. Myers, who holds degrees from Wittenberg University and James Madison University in Florence, Italy, worked for six years in the House, most recently serving as deputy policy director for the majority caucus.

Ms. Crock, a graduate of Asbury University in Wilmore, KY, was a Legislative Service Commission fellow and worked as a Communications Assistant in House.

"The OTA was very fortunate to be able to add such talented professionals as Marisa Myers and Sarah Crock to our team," OTA Executive Director Matthew DeTemple said in a statement. "Working with policy makers and conveying our message are two important functions of the OTA. Marisa and Sarah will do a great job at these key functions."

Reprinted with permission of Gongwer News Service, Inc.