----- Original Message ----- 
From: "Christine Matacic" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Tuesday, July 14, 2009 2:05 PM
Subject: [Fwd: Legislative Alert - Budget Passed]


> ---------------------------- Original Message ----------------------------
> Subject: Legislative Alert - Budget Passed
> From:    "Heidi Fought" <[log in to unmask]>
> Date:    Tue, July 14, 2009 11:34 am
> To:
> Cc:      "Michael Cochran" <[log in to unmask]>
>         [log in to unmask]
>         "Matt Whitehead" <[log in to unmask]>
>         [log in to unmask]
>         "Marie Kappes GPG" <[log in to unmask]>
> --------------------------------------------------------------------------
>
> Dear Township Officials:
>
> Last evening the House and Senate finally agreed to a budget and sent it
> to Governor Strickland for his signature.  Prior to adopting the budget
> (HB 1) both houses also passed an additional temporary budget giving all
> parties a few more days to reach an agreement and now it gives the
> Governor a few days to sign the budget bill.
>
> Please find below a list of items included in the budget. You may view a
> comparison document of the executive, House passed, Senate passed and
> conference committee versions of the budget at this link.
> http://www.lbo.state.oh.us/fiscal/budget/CompareDoc128/AsReportedbyCC/De
> fault.cfm  You may view the bill in its entirety at
> www.legislature.satte.oh.us.  The effective date for the financial
> provisions of the bill will likely be the date the Governor signs the
> bill and all other provisions will be effective 90 days after he signs.
>
> Tangible Personal Property (TPP) Tax Reimbursements (RC 5751.20 -
> 5751.23)
> The conference committee retained the language as passed by the Senate
> which would provide for permanent replacement of lost revenue from the
> elimination of the TPP Tax. As you all know, a few years ago the General
> Assembly enacted a comprehensive tax reform package that eliminated the
> TPP tax and in return provided for 100% reimbursement of lost revenue to
> schools and local governments over a period of time (2006-2010) and then
> provided for a phase-down of funding until the schools and local
> governments received no reimbursement (2011-2017).
> With the enactment of the language in HB 1, there will no longer be a
> phase-out of funds and schools and local governments will receive 100%
> reimbursement indefinitely. The OTA strongly encourages you to extend
> your thanks to your legislators, as this provision will cost the state
> more money each year especially since the phase-down was scheduled to
> begin next fiscal year (start date July 1, 2010). Given the financial
> hardships everyone is facing, the OTA is very grateful to the members of
> the House and Senate and the Governor for recognizing the impact that
> the elimination of the TPP had on schools and local governments.
>
> Additional Authority to Abate a Nuisance (RC 3767.41)
> Townships have the ability to deal with nuisances pursuant to ORC
> Section 505.87. The budget bill provides townships with the authority to
> initiate a civil action to abate a public nuisance according to RC
> Chapter 3767. This is not a new law, as municipalities currently have
> the ability to utilize this Chapter of the Code. The changes pursuant to
> the budget bill simply give townships the same authority as
> municipalities. The OTA would like to thank Senator Mark Wagoner for
> including this language in the budget on behalf of his townships.
>
> Cafeteria Plans for Insurance Coverage (RC 4113.11)
> As was included in the House passed version of the budget, the
> conference committee included language requiring any employer, including
> townships, with ten or more employees to offer a cafeteria plan
> permitted under Section 125 of the internal revenue code.  The OTA and
> the Ohio Municipal League worked with representatives of the Ohio
> Department of Insurance on an amendment that would make this requirement
> more acceptable to our members. The language in the final budget states
> that an employer with ten or more employees shall adopt and maintain a
> cafeteria plan but does not have to do this if the employer, through
> other means, offers health insurance coverage, reimburses for health
> insurance coverage or provides employees with opportunities to pay for
> health insurance through other salary reduction arrangements.
> The OTA would like to thank the Department of Insurance and members of
> the House and Senate for working with us to incorporate our changes.
>
> Household Sewage Treatment Systems (RC 711.001, 711.05, 711.10, 711.131,
> 4736.01), 6111.04 & 6111.44 and Sections 640.20-604.24)
> Due to the fact that the moratorium on HB 231 taking effect expired June
> 30, 2009, the General Assembly extended the moratorium an additional six
> months from July 1, 2009 to January 1, 2010.  Therefore, all laws and
> rules in effect prior to the enactment of HB 231 (125th General
> Assembly) are still in effect until January 1, 2010 or until new
> language is enacted.
> The OTA will continue to work with members of the House and Senate, as
> well as interested parties, on this matter to reach a compromise and
> enact legislation that addresses HSTS issues.
>
> Grade Separations of Ohio Turnpike & County/Township Roads (RC 5537.051)
> The OTA was made aware of a serious issue up along the Ohio Turnpike in
> Sandusky County with embankment failures along Turnpike overpasses.
> Basically the grade separations were falling and the safety of those
> county and townships roads were in jeopardy.  Last general assembly a
> bill was introduced to make the Ohio Turnpike responsible for those
> embankment failures (HB 168 - 127th General Assembly) but unfortunately
> the bill did not pass. The bill was reintroduced this year as HB 131.
> The language included in HB 1 makes the Ohio Turnpike Commission
> responsible for major maintenance, repair and replacement of grade
> separations at intersections of any turnpike project with county and
> township roads if, as of January 1, 2009, at least one road has been
> closed in a county as a result of a grade separation failure at an
> intersection of a turnpike project and county/township road.  The local
> government with jurisdiction over the road would be responsible for
> routine maintenance of the repaired or replaced grade separations.
> The OTA would like to thank Rep. Jeff Wagner and Senator Karen Gillmor
> for their help in addressing this issue.
>
> Reverse Auctions (RC 9.314 & 9.317)
> Prohibits the state and political subdivisions from using Internet
> reverse auctions to buy supplies or services if the contract concerns
> the design, construction, alteration, repair, reconstruction or
> demolition of a building, highway, road, street, alley, drainage system,
> water system, waterworks, ditch, sewer, sewage-disposal plant, or any
> other structure or works of any kind.
>
> Hotel Lodging Tax (RC 5739.09)
> The budget bill alters the definition of "hotel" for which a lodging tax
> enacted by a township would be collected upon.  If your township
> currently has a lodging tax, please speak with your prosecutor or
> counsel to see how these changes may or may not impact you.
>
> Ohio Commission on Local Government Reform & Collaboration (Section
> 701.20)
> The final version of the budget includes language that expands the
> issues to seven that the Commission must consider when making
> recommendations to include: (1) making annual financial reporting across
> local governments consistent for ease of comparison; and (2) aligning
> regional planning units across state agencies.
>
> Collective Bargaining
> No language was included in the budget on this matter.
>
> Force Account Increase
> The conference committee removed all language pertaining to force
> account limit increases at the request of interested parties due to the
> lack of consensus on the proposed changes.
>
> The OTA will inform you when the bill is signed and give you effect
> dates of these sections.  Should you have questions about any of the
> provisions listed, the OTA encourages you to review the bill language
> with your legal counsel.  Finally, if you like any of the provisions
> listed in this alert, the OTA strongly encourages you to send a note of
> thanks to your House and Senate members.
>
> Sincerely,
>
> Heidi M. Fought
> Director of Governmental Affairs
> Ohio Township Association
> 6500 Taylor Road, Suite A
> Blacklick, OH 43004
> (614) 863-0045
> (614) 863-9751 Fax
>
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