Statehouse Update
March 25, 2016
Monday, March 14, 2016
YOST: FIRST YEAR OF SUNSHINE AUDIT PROGRAM A 'SMALL BUT SIGNIFICANT SUCCESS'; DEWINE
RELEASES NEW OPEN RECORDS MANUAL
In the Sunshine Audit initiative's first year, the state auditor's office investigated 16 complaints about public entities not
releasing public records, Auditor Dave Yost announced Monday.
Launched last year during Sunshine Week, the program was designed to give citizens a way to appeal rejections of public
record requests without having to go through a long legal process.
"We didn't have a whole lot of takers," Mr. Yost said at a Statehouse news conference, calling the initiative's first year a "small
but significant success."
The office investigated 16 complaints and declined to investigate one because it was too complex, he said in presenting the
report on the program's first year. The office only audits complaints that are expected to take fewer than five work hours for
staff.
"While I don't think that there's necessarily huge noncompliance, I know that there's more than the 17 cases that we have here in
our first year," Mr. Yost said. "I would hope that folks who feel like they've been wrongly denied public records would avail
themselves of the mediation process that's in the attorney general's office and our compliance work in the Auditor's office."
For cases involving local government entities, the complainants are first required to attempt the mediation process through the
attorney general's office. For those involving state agencies, the complaints start with the auditor's office.
The program stirred some controversy when it was introduced last year. Some legislators said they didn't believe the state
auditor had the authority to look at public records compliance, and inserted language into the budget bill (HB 64) to try to stop
the program. The language was later removed.
Mr. Yost said he didn't know of any current efforts to stop the program, but he wants to make sure citizens have a venue to
appeal rejections before they reach the judicial system.
"Frankly, I'm glad to step aside if there's a proper mechanism to resolve this," he said. "The reason we did this is because right
now, if you get stonewalled as a citizen on a public records request, the only thing you can do is go get a lawyer and go to court.
If you're not independently wealthy and have plenty of time to burn, you're out of luck."
"If the legislature develops a non-litigious process that is simple and is open to the average Joe who is just trying to find out
what his government is up to, that's great," he added.
Of the 16 complaints investigated, eight were found to be compliant with the law in rejecting the requests, five were initially
noncompliant with the law but released the records properly after auditors asked about it, and three were found to be
noncompliant.
The noncompliance in these audits will show up on future financial audits, but the finding doesn't come with a lot of teeth,
Auditor Yost said. The findings can be used in court and are given a presumption of validity, but none of the cases have led to
legal action so far.
Those found noncompliant were the Department of Agriculture, which failed to respond to the auditor's request for its position
on the complaint, according to the auditor's office; the City of Beachwood, which was found noncompliant because some
redactions of the mayor's calendar were unsupported by law; and the Ohio Public Employees Retirement System, which Auditor
Yost said wrongly cited attorney-client privilege.
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Statehouse Update
Attorney-client privilege can only be cited in certain situations, not just when there's a lawyer in the room, he said. It can only
be cited when the attorney has created a work product or has given legal advice.
"One of the frustrations I've had with our first year here is that it's difficult to establish whether attorney-client privilege is valid
or not," he said.
Citizens can submit complaints and learn more about Sunshine Audits online.
New Yellow Book: Attorney General Mike DeWine also marked Sunshine Week by releasing the 2016 edition of his office's
manual regarding public records laws, commonly known as the "Yellow Book."
"A substantial number of public records disputes arise because one of the parties involved is not aware of their obligations when
a request is made," Mr. DeWine said in a statement. "The 'Yellow Book' is published to help requesters understand their rights
and for government agencies to understand their duties under Ohio's Sunshine Laws."
The AG's office also announced training sessions on public records across the state, which are also available as an online video
course.
DeWine Certifies Clean Energy Initiative; OEC Ads Target FirstEnergy; AP&G Calls For End To Daylight Saving Time...
Attorney General Mike DeWine on Monday certified the latest iteration of the Clean Energy Initiative.
Proponents submitted the petition on March 4, marking the sixth time the proposal has been attempted. Backers of the initiative
have tried for years to create a $1.3 billion bond program over 10 years to support green energy initiatives.
Mr. DeWine's certification, as with all other certifications from his office, clarified that he is forwarding the initiative to the
secretary of state "without passing upon the advisability" of the measure.
The proposal now heads to the secretary of state, who must convene the Ballot Board to determine whether the proposal is a
single or multiple issues. Following that approval, the petitioners would then be cleared to collect the required 305,951
signatures to get the proposal on the ballot.
Last year's proposal mirrored previous proposals with one exception: a new section that would have enabled supporters to
correct any legal challenges to the language by offering new language requiring only a fraction of the signatures currently
required under the ballot process.
In November, the Ballot Board voted 3-1 to divide the issue into two issues by separating that new language. The latest
proposal does not include that language.
Ad Campaign: The Ohio Environmental Council launched a digital ad campaign challenging FirstEnergy's commitment to
clean energy and the environment.
FirstEnergy in February launched a campaign to showcase "the company's commitment to a cleaner energy future." Called "The
Switch is On," the multi-state campaign is slated to continue through July.
"The difference between what FirstEnergy says and what they are doing to derail Ohio's progress towards a cleaner energy
future is night-and-day," OEC Director of Energy Trish Demeter said in a statement. "The company is grasping at the good old
days when coal was king, and customers weren't clued in enough to see this so-called 'green' initiative for what it really is - a
bait and switch."
In announcing the campaign, FirstEnergy President and CEO Chuck Jones said, "FirstEnergy has a long history of
environmental stewardship and investments in clean energy, including more than $10 billion to enhance environmental
performance of the company's generating fleet since the Clean Air Act became law in 1970."
The campaign comes as FirstEnergy awaits a ruling expected this quarter from the Public Utilities Commission of Ohio on the
company's Power Purchase Agreement, which would guarantee profits from some aging coal-powered plants.
The OEC and other opponents estimate the move would cost customers up to $130 more on their annual utility bills.
FirstEnergy, in contrast, contends the plan would save costs long term.
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Statehouse Update
FirstEnergy's settlement in the PPA case included clean energy initiatives such as setting a carbon dioxide emissions reduction
goal of 90% of 2005 levels by 2045.
DST: American Power and Gas has launched a Change.org petition calling for an end to Daylight Saving Time.
The company said such a move would reduce energy consumption, lowering both carbon emissions and energy costs for
consumers.
"We believe that Daylight Saving Time is an outdated practice that actually increases energy consumption," AP&G Vice
President of Marketing and Public Relations Andrea d'Agostini said. "By signing this petition you are helping us raise this issue
to lawmakers and ultimately save energy."
The company cites research from Indiana, which adopted DST in 2006, as showing the change increased electricity
consumption by 1% overall and by between 2-4% in the summer and fall.
PJM: The company's Chief Operations Officer, Michael Kormos, is leaving the company effective April 15.
Mr. Kormos has worked for PJM Interconnection for 27 years and as executive vice president is responsible for system
operations and planning and state and member services.
The company said in a statement that the COO position will not be filled and that instead Mr. Kormos' responsibilities "will be
transitioned to other members of the executive team."
"We have a strong management team that will carry on the day‐ to‐ day operations and execution of PJM's long‐ term strategy,"
PJM President and CEO Andrew Ott said. "PJM is in a strong position and will continue as a leader in reliable grid operations,
efficient markets and infrastructure planning."
Mr. Ott, in a statement, praised Mr. Kormos' "relentless focus on driving operational excellence."
Expansion: FirstEnergy announced it will expand a transmission substation in Leroy Center in a move the company said will
enhance reliability and support load growth in northeast Ohio.
Included in the plan is a new connection to a 345 kV transmission line already connecting the Perry Nuclear Power Plant to a
Cleveland substation. Also included is the installation of circuit breakers and two large electrical transformers, according to the
company.
"By connecting this substation to an existing transmission line, we are able to create another cost-effective option when it comes
to delivering safe and reliable power to our customers," Illuminating Company Regional President John Skory said.
"In addition, the high-tech substation devices we plan to install will give us the ability to operate the system remotely,
automatically resetting the equipment instead of having to send a line crew to investigate the cause of the problem."
The project costs an estimated $24 million, with about $14.8 million of that to be spent in 2016. The added infrastructure should
begin service June 1.
AGENCY BRIEFS: DEWINE REJECTS SUMMARY LANGUAGE FOR POT INITIATIVE, ACCEPTS ETHICS
PETITION; TAX REVENUE
Attorney General Mike DeWine announced he rejected the petition for a proposed constitutional amendment legalizing medical
marijuana, but the initiative's supporters aren't counting it as a setback.
Mr. DeWine said the group Ohioans for Medical Marijuana submitted 1,000 valid signatures as needed but there were at least
three problems with the summary language. One was a discrepancy between how many type 1 cultivation licenses could be
issued, another was related to when a patient could be considered impaired by marijuana, and the other involved when there
could be additional ways to obtain ID cards.
Mason Tvert, a spokesman for Marijuana Policy Project, which is backing the initiative, said in an email that these kinds of
changes by the AG's office were expected.
"We expected the AG could provide these types of edits to the initiative summary and it was factored into our overall calendar,"
Mr. Tvert said. "From the beginning we have predicted the full signature drive (in which we need to collect 305,000+
signatures) would start in early April."
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Statehouse Update
The plan is to re-submit the proposal this week.
"This is just part of Ohio's very rigorous initiative process, so it's not particularly surprising," he said. "We'll be making some
adjustments based on their notes and then moving forward as planned."
The AG did approve summary language for the so-called "Ohio Ethics First Amendment" initiative, which would require
former legislators to be out of office for two years before becoming lobbyists, would cap legislators' pay at the state's median
income, and mandate that lawmakers' records be "kept under state control."
State Budget: The state's personal income tax revenue fell below estimates in February, reports from the Office of Budget and
Management and the Legislative Service Commission confirmed. Spending is also below analysts' projections for the fiscal year
to date.
The OBM report noted that personal income tax revenues are down nearly 7% below estimates because of lower than estimated
collections in withholding, which were slightly offset by refunds coming in below estimates and quarterly payments coming in
above estimates.
After the effects of SB 208, which included reductions in PIT and commercial income tax revenues, and HB 64, which reduced
small business tax revenue, GRF income tax revenues are expected to come in about 5.8% below those in fiscal year 2015,
according to the OBM report.
The LSC report noted GRF revenues of $22.98 billion through February and expenditures of $24.49 billion. The expenditures
were $658.8 million below estimate, due mostly to Medicaid expenditures being $487.7 million below estimate.
ATTORNEY GENERAL'S OPINION
No. 2016-008. Requested by Washington County Prosecuting Attorney Kevin A. Rings. SYLLABUS:
1. For the purpose of Article II, §20 of the Ohio Constitution, the phrase "term of office" means the period for which a person is
appointed or elected to a public office.
2. A person appointed to a vacancy in a county office that has been vacated due to the death, resignation, or retirement of the
previous officeholder commences a new term of office for the purpose of Article II, § 20 of the Ohio Constitution and shall
receive the rate of compensation for that office that is in effect at the time he commences his service in office.
3. A person appointed to a vacancy in a county office whose resignation or retirement from that office created the vacancy does
not upon his appointment commence a new term of office for the purpose of Article II, § 20 of the Ohio Constitution and shall
not receive an increase in the compensation for that office that was authorized or enacted after the commencement of his
original term of office.
4. Elected county officers, including a county treasurer and county commissioners, who are elected in November 2016 to a term
of office that begins after January 1, 2017, shall receive for the time they serve a prorated portion of the annual compensation
fixed for their county's population class for calendar year 2017 by R.C. 325.03-.15, as amended by Am. Sub. H.B. 64, 131st
Gen. A. (2015) (eff., in part, July 1, 2015). The prorated portion is to be calculated by multiplying the applicable daily rate of
pay by the number of days the official actually serves in the term of office that begins in 2017.
5. A county sheriff shall receive in his furtherance of justice fund, pursuant to R.C. 325.071, an amount equal to half of the
annual salary allowed by R.C. 325.06(A), regardless of the amount of annual salary the sheriff actually receives.
Tuesday, March 15, 2016
KASICH, CLINTON TAKE OHIO; RUBIO LOSES FLORIDA TO TRUMP, SUSPENDS CAMPAIGN
Gov. John Kasich on Tuesday wrested Ohio's 66 winner-take-all delegates from frontrunner Donald Trump, prolonging his
presidential campaign and dealing a setback to Mr. Trump's march toward the nomination.
But the billionaire - who won 99 delegates from Florida and several other states - emerges from the Tuesday contests with his
sizeable delegate lead intact, giving him the best shot at this point of the three remaining candidates of seizing the required
1,237 delegates ahead of the Cleveland convention this summer.
Gov. Kasich, for his part, believes the Ohio win - along Sen. Marco Rubio's announcement he is suspending his campaign after
losing Florida - will boost the governor's national profile, giving him momentum heading into Midwestern primaries.
On the Democratic side, Hillary Clinton routed Sen. Bernie Sanders in Ohio, Florida and North Carolina - putting more distance
between herself and the senator in the delegate count. With 63% of votes tallied, she led Sen. Sanders in Illinois 51.8-47.3%.
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Statehouse Update
"We will add to our delegate lead to roughly 300 with over 2 million more votes," she told supporters in her speech in West
Palm Beach. "We are moving closer to securing the Democratic Party nomination and winning this election in November."
By 10:15 p.m., 31% of the Democratic votes in Missouri had been tallied. They showed Sen. Sanders narrowly leading Ms.
Clinton 50.2-48.4%.
Overall, it was a good night for Mr. Trump, who in addition to Florida won Illinois and North Carolina. The Missouri GOP
contest was too close to call at deadline, with Mr. Trump virtually tied with Sen. Cruz late in the evening.
Gov. Kasich's continued presence on the Republican side is bound to be an annoyance to Texas Sen. Ted Cruz, who has called
for Gov. Kasich and Sen. Rubio to drop out to allow him to challenge Mr. Trump head-to-head.
During Gov. Kasich's election night remarks - which were accompanied by confetti and a pro-Trump protestor - he thanked
Ohioans for their support. Without naming Mr. Trump, he promised, "I will not take the low road to the highest office in the
land."
For team Kasich, Tuesday's results are justification for the eight-plus month effort so far during which Gov. Kasich slowly
emerged from a field that initially included 17 candidates - including eight sitting or former governors.
Upon the suspension of former Florida Gov. Jeb Bush's campaign, Sen. Rubio became the de facto establishment candidate of
choice. But Sen. Rubio acknowledged Tuesday that his defeat in Florida was too much to overcome.
"After tonight it is clear that while we are on the right side, this year we will not be on the winning side," the Florida lawmaker
said.
Kasich for America Chief Strategist John Weaver called the election moving forward a "whole new ballgame" and said the
governor's "positive message and proven record can overcome the Donald Trump insult machine."
"With a narrowing field, Gov. Kasich is the candidate best positioned to go toe-to-toe in the remaining states," Mr. Weaver said.
"Our internal data shows that Rubio voters break to Gov. Kasich by a 3-1 margin."
Even with the Ohio win, Gov. Kasich lags far behind in the delegate count. He'll gain at least 66 delegates after the dust clears
Tuesday evening - putting him at a minimum of 129 delegates. In contrast, Mr. Trump has at least 568 including Florida's 99
delegates and Sen. Cruz had 370 delegates going into Tuesday's contests.
Gov. Kasich in recent months has emphasized a positive campaign while avoiding heated attacks between top GOP contenders.
But during a press gaggle Tuesday morning, he foreshadowed a potential shift, saying he is "very concerned" about Mr. Trump's
language concerning women.
"I will be, however, forced going forward to talk about some of the deep concerns I have about the way this campaign has been
run by some others - by one other, in particular," Gov. Kasich said. "But today's not the day to do that."
Ohio Republican Party Chairman Matt Borges congratulated Gov. Kasich in a statement.
"Ohio is always the center of the political universe," he said. "Tonight, the Buckeye State sent a message to the rest of the
country that John Kasich is the best chance our party has to defeat Hillary Clinton in November."
Following Gov. Kasich's victory, his campaign announced an expansion of its national leadership team to include: former chief
political strategist for Ronald Reagan Student Spencer; former President Reagan adviser Charlie Black; former Minnesota
Congressman Vin Weber, and former Jeb Bush campaign adviser Tom Ingram.
HOUSE RACES: REP. BURKLEY OUSTED IN PRIMARY; HOUSEHOLDER WINS; TWO GRAB VICTORIES
OVER BUTLER COUNTY GOP ENDORSEES
One incumbent state representative lost to a businessman who retired to focus on his campaign and two candidates, including an
incumbent, who openly bucked the Butler County GOP after not receiving endorsements won their primaries anyway.
Tuesday night's results also saw a primary victory by former House Speaker Larry Householder, putting him one step closer to a
return to the Statehouse.
In the 82nd House District, Rep. Tony Burkley (R-Paulding) lost to Defiance businessman Craig Riedel despite the incumbent
receiving the help of the Republican Party and many of his fellow representatives.
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Statehouse Update
Mr. Riedel, who retired last year to focus on his campaign, earned about 53% of the vote to Rep. Burkley's 47%, according to
unofficial results. No Democrats are running for the seat, so Mr. Riedel is on his way to the Statehouse.
In Butler County, incumbent Rep. Wes Retherford (R-Hamilton) and anti-abortion candidate Candice Keller both won hotly
contested races after being denied the endorsement of the county's Republican Party. Both said before the endorsements were
announced that they would drop out if they didn't receive it, but changed their minds and ran anyway, beating the party's
endorsed candidates.
Rep. Retherford beat former Rep. Courtney Combs, 56-44%, according to unofficial results. Mr. Combs, who previously held
the seat, alleged that Mr. Retherford partied in Columbus and had a liquor cabinet in his House office. The two campaigns often
traded barbs on Twitter.
Ms. Keller beat Middletown Vice Mayor Joe Mulligan to replace departing Rep. Tim Derickson (R-Oxford). While Ms. Keller
ran on a campaign of limiting abortion, Mr. Mulligan focused on wanting to make government run more like a business.
In other notable contested primaries:
1st House District: Wayne County Commissioner Scott Wiggam, who is backed by current seat holder Rep. Ron Amstutz (RWooster), is on his way to the Statehouse after beating former County Commissioner David Kiefer 66-34%, according to
unofficial results. The two Republicans differed on many issues.
7th House District: Sen. Tom Patton (R-Strongsville) will move to the House after easily beating opponent Jennifer Herold,
also of Strongsville. Sen. Patton faced criticism for comments he made on a radio show saying Ms. Herold, a mother of two
young children, would find it difficult to serve as a legislator while taking care of her family.
9th House District: Incumbent Rep. Janine Boyd (D-Cleveland Heights) easily defeated former school maintenance worker
Isaac Powell. Mr. Powell has made several previous unsuccessful bids for office. Rep. Boyd will continue to hold the seat
formerly held by her mother.
12th House District: Rep. John Barnes (D-Cleveland) handily defeated the second challenge from Pepper Pike Democrat Jill
Miller Zimon. Rep. Barnes has been criticized for his voting record and not caucusing with House Democrats, but continues to
win in his district.
17th House District: Adam Miller defeated Matthew Jolson 58-42% in a battle of Marble Cliff attorneys to replace outgoing
Rep. Michael Curtin (D-Marble Cliff). Mr. Jolson had the support of the retiring incumbent but Mr. Miller's campaign was
active on TV and had broader party support in the district.
18th House District: Newly appointed Rep. Kristin Boggs (D-Columbus) easily won the Democratic primary in her bid to hold
onto the seat vacated by Michael Stinziano, who was elected to the Columbus City Council. Rep. Boggs, whose father and
uncle both served in the General Assembly, bested opponents Joshua Clark and Adhanet Kifle.
20th House District: Lisa Schacht, a Canal Winchester farm owner endorsed by the Franklin County Republican Party, easily
defeated Bobby Mitchell in the Republican primary. She goes on to face incumbent Rep. Heather Bishoff (D-Blacklick) in
November.
25th House District: Former teacher and school administrator Bernadine Kent won a four-way Democratic primary to replace
Rep. Kevin Boyce (D-Columbus). With 98% of Franklin County precincts reporting, Ms. Kent won nearly 38% of the vote,
beating community engagement advocate Dontavius Jarrells, Columbus Attorney Jeffrey Mackey and minority youth advocate
Mayo Makinde.
27th House District: Rep. Tom Brinkman (R-Cincinnati) won a close race against former supporter Heidi Huber, 51-49%. Ms.
Huber said she ran because none of the candidates she's previously backed, including Rep. Brinkman, has succeeded in
repealing the Common Core education standards.
31st House District: Norwood City Councilwoman Brigid Kelly pulled away from a six-person field for a win in the
Democratic primary to replace term-limited Rep. Denise Driehaus (D-Cincinnati), earning more than 35% of the vote with all
but one precinct reporting. Ben Lindy, the founding executive director of Teach for America of Southwest Ohio, came in second
with more than 18%.
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Statehouse Update
32nd House District: Cincinnati school board member Catherine Ingram won the Democratic primary to replace Rep. Christie
Kuhns (D-Cincinnati), who opted not to run for reelection. Ms. Ingram won 51.5% of the vote against Cincinnati mayoral
liaison Shawn Butler and community organizer Leo D'Cruz.
47th House District: Realtor and former Waterville Mayor Derek Merrin, who has the backing of current Rep. Barbara Sears
(R-Sylvania) and Sen. Randy Gardner (R-Bowling Green), defeated Vicki Donovan-Lyle and Kevin Haddad. With a number of
precincts left to report in Lucas County, Mr. Merrin held a commanding lead over Ms. Donovan-Lyle, 47.5-28.8%. Mr. Haddad
had 23.7%.
49th House District: Canton City Council President Thomas West narrowly beat former business owner Joyce Healy-Abrams,
a member of a well-known political family and former congressional candidate, in the Democratic primary to replace termlimited Rep. Stephen Slesnick (D-Canton). Mr. West earned 50.8% of the vote to Ms. Healy-Abrams' 49.2%, winning by a
margin of fewer than 200 votes.
57th House District: Photographer Dick Stein of Norwalk appeared to eke out a narrow win in the in the Republican primary
for the seat being vacated by term-limited Rep. Terry Boose (R-Norwalk). Mr. Stein earned about 34% of the vote, according to
unofficial results, edging out attorney and former Rochester Mayor Kathryn Frombaugh, who earned about 30.5%, and attorney
Timothy Opsitnick of Avon, who earned about 27.4%. Locomotive electrician and veteran Lee Waldrup of Bellevue earned
about 7.4%.
62nd House District: Former Franklin City Mayor Scott Lipps won by a hair in the Republican primary to replace term-limited
Ron Maag (R-Lebanon), beating Clearcreek Township Trustee Steve Muterspaw 40.6-39.1%. Mr. Lipps is known for passing
out lip balm to constituents and had the backing of several conservative groups, while Mr. Muterspaw had the support of U.S.
Rep. Jim Jordan (R-Urbana). Ray Warrick, who led the tea party takeover of the county GOP, earned 20.3%. Mr. Lipps will
face Democrat Samuel P. Ronan in November.
63rd House District: McDonald Mayor Glenn Holmes appeared to edge out Hubbard councilman Ben Kyle and retired
Cleveland teacher Marianne James. According to unofficial results, Mr. Holmes won about 44% of the vote, with two precincts
remaining Tuesday night, while Mr. Kyle earned about 35% and Ms. James earned about 20%. Mr. Holmes won the support of
the county Democratic Party in the left-leaning Trumbull County district.
68th House District: Genoa Township Trustee Rick Carfagna led a field of four other Republicans with more than 40% of the
vote in his bid to succeed term-limited Rep. Margaret Ann Ruhl (R-Mt. Vernon). Mr. Carfagna was endorsed by the Delaware
County Republican Party. Beth Lear, a veteran who was heavily involved in the county party, was in second with more than
34%.
70th House District: The race to replace outgoing Rep. David Hall (R-Millersburg) remained a tight three-way contest with all
but three Medina County precincts reporting. Darrell Kick, a staffer for U.S. Rep. Bob Gibbs (R-Lakeview) led Lisa Woods, the
leader of a Medina tea party group, by about 200 votes, with Steven W. Johnson of Shreve trailing Mr. Kick by just over 300
votes.
72nd House District: Former House Speaker Larry Householder is a step closer to returning to the Statehouse after beating
Coshocton City Council President Cliff Biggers 63.9-36.1%. Mr. Householder had a well-funded campaign, raising more than
$100,000 to his opponent's $7,000, while Mr. Biggers earned the support of Rep. Bill Hayes (R-Harrison Twp.), who currently
holds the seat. Mr. Householder will face Democrat John Carlisle in November.
74th House District: Business owner Bill Dean won the Republican primary with 38.9% of the vote in a four-way race, and
won't have to wait long to take his seat in the House. Speaker Cliff Rosenberger (R-Clarksville) has said his caucus intends to
appoint the winner of the primary to the seat left open by newly appointed Sen. Bob Hackett (R-London). Attorney Chris
Wallace finished in second, with 30.3%, followed by financial adviser Brendan Shea and developmental disabilities advocate
Joe Russell.
83rd House District: Third time wasn't the charm for Kevin Rettig, who came up short in his third race against Rep. Robert
Sprague (R-Findlay). The incumbent won the Republican primary by a margin of 71.8-28.2%, and will face Democrat Mary
Harshfield in November.
87th House District: Wes Goodman, who works for U.S. Rep. Jim Jordan (R-Urbana), earned a win in this de facto general
election to replace term-limited Rep. Jeff McClain (R-Upper Sandusky). With four precincts left to report in Marion County,
Mr. Goodman led former Rep. Steve Reinhard 41-33%. Morrow County Commissioner Tom Whiston earned 26%.
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Statehouse Update
94th House District: Businesswoman Sarah Grace, who was backed by the House Democratic Caucus and incumbent Rep.
Debbie Phillips (R-Athens) beat out Ohio University graduate student Eddie Smith, who said he wanted a ban on fracking. Ms.
Grace won 59.75-40.25%, according to unofficial results, and will face Republican Jay Edwards in November.
96th House District: Incumbent Rep. Jack Cera (D-Bellaire) will return to Columbus after besting former Mingo Junction
councilman Patrick Murphy about 78-22%, according to unofficial results. No Republican made a bid for the seat.
Senate Races: Dolan, Huffman, Kunze, O'Brien Win In Open Districts; All Incumbents Hold Sway
Former Rep. Matt Dolan took one of the more highly contested Ohio Senate primaries Tuesday, emerging as the clear choice
over two sitting House members in the race for the GOP nomination in the 24th Senate District.
The Cuyahoga County seat came open with term limits forcing Sen. Tom Patton (R-Strongsville) into a run for the House, and
he was successful in the primary for Rep. Mike Dovilla's (R-Berea) 7th House District.
Rep. Dovilla had Sen. Patton's backing in the Republican primary for his Senate seat but came up short, as did Rep. Nan Baker
(R-Lakewood), who trailed in the fundraising race throughout but had the support of a new super PAC.
Mr. Dolan won with about 44% of the vote, according to unofficial totals reported by the Cuyahoga County Board of Elections.
Reps. Baker and Dovilla roughly split the difference.
In other Senate races - only the even-numbered districts were up for grabs this cycle - the early favorites were victorious in open
seats and incumbents easily fought off challengers.
4th Senate District: Sen. Bill Coley (R-Liberty Twp.) held sway in a yawner against three challengers in the right-leaning
district covering most of Butler County, garnering some 55% of the vote compared to about 19% for his closest competitor,
according to unofficial totals. The also-rans, in order of finish, were Joseph Ebbing, a Fairfield Township real estate broker;
Eric Gurr, a Liberty Township business owner; and Jeremiah York, a tea party activist from West Chester. Mr. Coley faces
Democrat John Kinne in November.
6th Senate District: Sen. Peggy Lehner (R-Kettering) won in a runaway against Barbara Temple, a former Dayton police major
who stumped against Common Core. Sen. Lehner took about 72% of the vote and will be favored this fall for reelection in the
Montgomery County district against former Huber Heights Councilwoman Lu Dale.
10th Senate District: Sen. Bob Hackett (R-London), a former state representative and county commissioner, parlayed his recent
appointment to the Senate into a strong victory against Brian Walton, a business owner who tried to run to the right of the
lawmaker. Mr. Hackett won by about a 58-42% margin. He will vie in the general election against Matthew Kirk, a stay-athome dad from Yellow Springs who defeated Springfield writer Michael Sergio Gilbert in the Democratic primary for the
district covering Clark, Greene and Madison counties.
12th Senate District: Matt Huffman handily bested his fellow former state representative John Adams for the chance to succeed
term-limited Senate President Keith Faber (R-Celina), who is running for the House. The former House GOP campaign leader,
who was winning the primary by a 64-36% margin with nearly all precincts reporting, has no Democratic opposition in the
general election for the western Ohio seat.
16th Senate District: Rep. Stephanie Kunze (R-Hilliard) rode the financial backing of the Republican Senate Campaign
Committee to a resounding win over the vocal but fundraising-challenged Aaron Neumann in the GOP contest for the western
Franklin County seat. She will be expected to repeat that win against Larry L. Malone Jr. in the fall election for the seat left
open by the term-limited Sen. Jim Hughes (R-Columbus), who is also running for the House.
22nd Senate District: Sen. Larry Obhof (R-Medina), the Senate president pro tempore and favorite to become the chamber
leader next year, easily held off a spirited challenge from Janet Folger Porter, a key proponent of the so-called 'heartbeat' antiabortion measure. Not taking any chances in the race, the Senate GOP caucus fund poured significant resources toward Sen.
Obhof's bid, and he took the race by about a 65-35% margin. The incumbent faces Democrat Christopher S. King of Sullivan in
the general election for the seat covering Ashland, Medina and Richland counties and part of Holmes County.
32nd Senate District: Rep. Sean O'Brien (D-Brookfield) held a commanding 63-37% lead against fellow Democrat Kristen
Rock, a political newcomer, with most precincts reporting late Tuesday. The left-leaning district covering all of Ashtabula and
Trumbull counties and part of Geauga County came open with the pending departure of term-limited Sen. Capri Cafaro (DHubbard).
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Statehouse Update
OUTSIDER WINS RACE TO FILL BOEHNER'S SEAT; CONGRESSIONAL INCUMBENTS CRUISE TO WINS;
PORTMAN AND STRICKLAND TO SQUARE OFF IN FALL
Two state lawmakers were defeated in their bids to move from the Statehouse to the U.S. House of Representatives.
Outsider Warren Davidson emerged from a crowded field to fill the unexpired term of former Speaker John Boehner, in the
process defeating Sen. Bill Beagle (R-Tipp City) and term-limited Rep. Tim Derickson (R-Oxford) in the race for the 8th U.S.
House District.
Mr. Davidson bested 14 other Republicans with 32.6% of the vote, according to unofficial results.
"This was a hard fought election and I am deeply grateful for the tremendous support I received from families, small business
owners and community leaders across the 8th Congressional District," Sen. Beagle, who came in third in the race, said in a
statement. "I congratulate Warren Davidson on his victory tonight."
A former Army Ranger, Mr. Davidson had the backing of Rep. Jim Jordan (R-Urbana), the Club for Growth, FreedomWorks
and Citizens for Community Values.
In a Tweet, Mr. Boehner congratulated Mr. Davidson on his victory, saying the people of the district have chosen "someone
who can be counted on to continue the fight for smaller, less costly" government.
Mr. Davidson also won a bid to run for a full, two-year term in November in a race in which he will face Democrat Corey
Foister and Green Party candidate James J. Condit Jr. in the deeply conservative district.
Incumbent members of Congress ran the table in other races across the state, according to unofficial results.
Incumbent Rep. Dave Joyce (R-Russell Twp.) defeated former state lawmaker Matt Lynch in the 14th Congressional District.
Mr. Joyce was holding a 64-36% lead with most precincts reporting.
"This was a victory for common sense," he said. "My constituents spoke loud and clear that they want their voice in Congress to
be a responsible conservative, willing to make the tough choices necessary to govern and move our country forward."
With most precincts reporting, Rep. Brad Wenstrup (R-Cincinnati) held a commanding 85-15% lead over challenger Jim Lewis
in the 2nd Congressional District with most precincts reporting.
Rep. Bob Gibbs (R-Lakeview) was leading challenger Terry Robertson 75-25% in the 7th Congressional District with most
precincts reporting.
Rep. Tim Ryan (D-Niles) was besting challenger John Stephen Luchansky 89-11% in the 13th Congressional District.
U.S. Senate: Former Gov. Ted Strickland cruised to victory in the Democratic primary, leading Cincinnati City Councilman
P.G. Sittenfeld 65-22% with more than 90% of precincts reporting, according to unofficial results. Challenger Kelli Prather
received 12.6% of the vote.
The victory sets up a general election matchup with incumbent Sen. Rob Portman (R-Terrace Park), who was handily defeating
challenger Don Elijah Eckhart 82-18% with more than 90% of precincts reporting, according to unofficial results.
In his concession speech, Mr. Sittenfeld called for party unity and said he would do everything he can to help defeat Mr.
Portman in November.
"After all, I am a Democrat - and the differences I have with Ted pale alongside the differences we both have with Sen.
Portman," he said.
The campaign of Mr. Portman downplayed the victory and said Mr. Strickland is "hobbling" into the general election.
"Ted Strickland's primary has exposed Ted as the worst Senate candidate in America. Ted is hobbling out of his primary with
no money, a splintered Ohio Democratic Party, and a string of headlines describing his low-energy campaign as 'invisible,'
'ghost,' and 'stealth.' The truth is that Ted Strickland has been hiding from his awful record when Ohio lost over 350,000 jobs
and ranked 48th in job creation," campaign manager Corry Bliss said in a statement.
"As we enter the general election, the days of Ted being able to hide are over," he continued. "When looking at Ted's dismal
record, it is easy to understand why many prominent Democrats across Ohio refused to support him. At the end of the day, this
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Statehouse Update
race is very simple: when Ohio voters realize that the Ted Strickland running for Senate is the same Ted Strickland that was
fired from the Governor's Office, he cannot and will not win this race."
In a statement, Mr. Strickland said he was honored to win the nomination and looked ahead to the general election battle.
"I am running to fight for Ohio's working people because that's where I came from, that's who I care about and that's who I will
stand up for in the U.S. Senate. Hardworking Ohioans are getting a raw deal: wages are staying flat while costs are rising, unfair
trade deals are shipping our jobs to places like China, higher education is increasingly out of reach, and too many worry that
retirement is a luxury they'll never be able to afford," he said.
"My agenda is to confront these challenges and fight for economic fairness," he continued. "But Senator Portman has a different
set of priorities: at every turn he is pushing the interests of the wealthy Washington power brokers and the well-connected
special interests he serves at our expense. This campaign will offer Ohioans a simple choice: Rob Portman is looking out for
what's best for Washington, while I will stand up for the working people of Ohio."
Ohio Democratic Party Chairman David Pepper said the "stakes in this election could not be higher."
"The contrast could not be clearer between Ted Strickland and Rob Portman. The Ohio Democratic Party, our supporters and
volunteers across the state will work tirelessly to build on Ted's momentum and help carry it to victory in November."
Wednesday, March 16, 2016
SIX STATE LAWMAKERS SET FOR LOCAL OFFICE BIDS IN FALL
Six legislators seeking local office all cleared their primaries Tuesday, setting the stage for them to keep their political careers
going beyond the Statehouse.
Reps. Kevin Boyce (D-Columbus), Denise Driehaus (D-Cincinnati), Bill Hayes (Harrison Twp.) and Stephen Slesnick (DCanton) each won primary contests and will move on to general election battles.
Rep. Terry Boose (R-Norwalk) was unopposed for the GOP nomination for Huron County Commissioner, a post he previously
held.
Sen. Shannon Jones (R-Springboro) was unopposed in her bid to fill a seat on the Warren County Board of Commissioners and
also has no opposition in the general election. She will forego the remaining two years on her term and set the stage for Senate
Republicans to appoint her successor in the right-leaning 7th Senate District.
The other five departing lawmakers will likely be favored to win their elections in the fall.
In one of the most hotly-contested races in central Ohio, Rep. Boyce ousted incumbent Franklin County Commissioner Paula
Brooks 58-42%, according to unofficial results.
Each candidate ran negative ads against the other in the days leading up to the contest.
Rep. Boyce was part of a Franklin County Democratic Party "Unity Ticket" that also included retired Columbus Police Lt.
Dallas Baldwin, attorney Danny O'Connor and incumbent Treasurer Ed Leonard.
Mr. Leonard narrowly lost his race to Cheryl Brooks Sullivan, but the rest of the "Unity Ticket" was successful in besting a
handful of Democrats who opposed Columbus Mayor Andy Ginther in his bid to replace Mike Coleman.
Mr. Baldwin defeated incumbent Sheriff Zach Scott, who ran against Mr. Ginther in last year's mayoral primary, while Mr.
O'Connor defeated Recorder Terry Brown. Ms. Brooks was also a supporter of Mr. Scott's mayoral campaign.
In the GOP primary race to lead the Licking County Prosecutor's Office, Rep. Hayes defeated assistant prosecuting attorney
Chris Reamer 55-45%, according to unofficial results.
Rep. Hayes moves on to the general election to face Democrat Christopher Shook.
Rep. Driehaus was unopposed in her primary bid to fill a seat on the Hamilton County Board of Commissioners. She will face
newly appointed Republican Commissioner Dennis Deters in the general election.
Rep. Slesnick won the Democratic primary for a seat on the Stark County Board of Commissioners against former
Commissioner Peter Ferguson, Canton Councilman Kevin Fisher and Katherine Baylock.
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Statehouse Update
The Democrat will face Republican Bill Smith, a Canton Township trustee, in the fall election.
Rep. Boose will be heavily favored to beat Democrat Howard Smith in the Huron commissioner's race in November. Mr. Smith
received about a third as many votes in his unopposed primary as Rep. Boose.
LATE PROVISIONAL, ABSENTEE BALLOTS COULD AFFECT CLOSE HOUSE RACES
Although Election Day has come and gone, more than 100,000 votes in Ohio's primary election have yet to be counted,
according to Secretary of State Jon Husted's office.
County board of elections reported 41,908 outstanding absentee ballots, which will be received until March 25 and are valid if
they were postmarked March 14 or earlier. There were also 68,225 provisional ballots cast, which cannot be opened or counted
until March 26.
The number of outstanding ballots could play a role in some close legislative races in which only a few hundred votes separated
candidates.
Unofficial results after election night showed incumbent Rep. Tom Brinkman (R-Cincinnati) with a lead of less than 400 votes
over Republican primary challenger Heidi Huber. That district is in Hamilton County, which has nearly 9,000 absentee and
provisional ballots outstanding.
In the Republican primary to replace Rep. David Hall (R-Millersburg), all three candidates finished within a few hundred votes
of each other in unofficial results. Darrell Kick, a staffer for U.S. Rep. Bob Gibbs (R-Lakeview), held a 120-vote lead over tea
party group leader Lisa Woods. Steven W. Johnson was in third place, fewer than 150 votes behind Ms. Woods. The district is
split across three counties, Ashland, Holmes and Medina, with more than 1,500 outstanding ballots between them.
On the Democratic side, unofficial results showed Canton City Council President Thomas West with a lead of about 120 votes
over opponent Joyce Healy-Abrams in the battle to replace Rep. Stephen Slesnick (D-Canton). That district is in Stark County,
which reported more than 1,700 outstanding ballots countywide.
VOTERS GIVE NOD TO MAJORITY OF SOCIAL SERVICES, LIBRARY, SCHOOL FUNDING REQUESTS
A majority of school, library and social service issues on Tuesday's ballot won the support of voters.
Levies benefiting senior citizen services made a sweep, with all six issues passing, according to unofficial results. The sole
mental health levy in the state was also strongly supported by Butler County voters.
A 4.8-mill health and human services levy in Cuyahoga County that encompasses children, senior, and mental health services
got the thumbs-up as well.
"We appreciate the voters who support these initiatives and thank the many men and women who care for, serve and provide
opportunities for our elders with the resources these levies harness," Ohio Department of Aging spokesman John Ratliff said.
All but one developmental disabilities levy was successful. Marion County's ask for an additional 1.75 mills for five years fell
short with just about 41% of the vote in favor, according to the unofficial tally.
"By and large, Ohio voters are strong supporters of county boards of developmental disabilities levies because they value the
services that boards provide and they trust that boards are reliable stewards of public funds," said Bridget Gargan, executive
director of the Ohio Association of County Boards of Developmental Disabilities.
Libraries also continued to receive wide support from voters on Tuesday. All but two of the 15 issues were approved.
"Voters continue to recognize the importance of the services provided by their public libraries," said Douglas Evans, executive
director of the Ohio Library Council. "Yesterday's election results once again prove that the majority of voters are willing to
provide libraries the financial resources necessary to serve their communities."
The pair of failing levies were the only ones seeking new money in the bunch. Among the losers was Louisville Public Library
in Stark County, which was making a second consecutive attempt at a new 0.9-mill levy to expand its operations.
A 1.8-mill, 34-year bond issue for the Wright Memorial Public Library in Montgomery County also failed. According to
unofficial results, it was defeated by a 34-vote margin.
With significantly more issues on the ballot than other entities, school districts asking for levy or bond renewals saw a smaller although still high - rate of success. Of the 68 issues on the ballot, 52 passed.
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Statehouse Update
Damon Asbury, legislative director for the Ohio School Boards Association, said five of 40 renewals failed, which is slightly
higher than in year's past.
Voters were split on issues requesting new money with 11 failing and 12 passing, he said.
Friday, March 18, 2016
EMPLOYERS CONCERNED ABOUT EFFECT OF MEDICAL MARIJUANA ON WORKPLACE
As the House Medicinal Marijuana Task Force looks at the issue of legalizing pot for medical purposes, employers have
repeatedly expressed concerns that it could affect their ability to maintain a safe, drug-free workplace.
Charles Conner, the CEO of Alcon Tool Company in Akron, said federal laws and the limitations of testing for impairment
would make it difficult for companies to allow employees who use marijuana medically.
"Due to the fact that my company is not able to determine whether someone is impaired or not, and that marijuana use is a
federal crime, I am left with the only option being zero tolerance when it comes to marijuana," he said. "I don't know where to
stand right now."
Thomas Secor, president of Durable Corporation in Norwalk, told the task force Thursday that he wasn't opposed to medical
marijuana because it could help people who are not in the workforce due to serious health conditions. Nevertheless he expressed
concerns about patients who use marijuana being in the workplace.
"The workforce can still be protected by simply providing in the legislation a notification to the employer of any person
receiving a medical marijuana waiver," he said.
Mark Swepston, who owns Atlas Butler Heating and Cooling in Columbus, was concerned with what could happen if someone
who uses medical marijuana is involved in an accident on the job. As it stands now, the first time an incident happens and an
employee tests positive, he or she gets a suspension and counseling and must pass another drug test before returning to work. If
it happens a second time, he or she is dismissed.
Legalizing medicinal marijuana could change that, he told the task force.
"If somebody says you can now work under the influence of something that impairs you then what do we do?" he asked.
Given how recent the trend of legalizing medical marijuana is, there isn't a lot of case law regarding how employers can treat
patients with medical marijuana. But Ted Bibart, a legislative analyst with Benesch Law in Columbus, told the task force that
the court rulings that have been made are "entirely one-sided" in favor of employers.
Accommodations specifying if employers can or can't terminate or otherwise penalize employees who use medical marijuana
can be written into the state's law, Mr. Bibart said, but courts have tended to side with employers when those provisions haven't
been specified.
James Thorburn, a Colorado attorney, said the legalization of medical marijuana didn't affect employers' rights to hire and fire
employees. He cited a Colorado Supreme Court case, Coats v. Dish Network, which held that the company could fire an
employee even though the drug - illegal under federal law - was technically legal under state law.
"Likewise in Ohio, depending on how you structure your legislation, it could be the same thing," he said. "There's not going to
be some fantastic right that just because we have medical marijuana that we are protected under laws regarding hiring and
firing."
Ohio, like Colorado, is an "at-will" state, giving employers more freedom over hiring and firing, he said.
"Couldn't an employer largely fire anyone as long as they don't violate certain discrimination classes in this country?" Rep. Dan
Ramos asked Mr. Thorburn.
"At-will means at-will," Mr. Thorburn said. "That's really where the Colorado Supreme Court came down in the Coats v. Dish
Network case."
Task force member Matt Szollosi, a former state representative and now executive director of Affiliated Construction Trades,
asked if the Legislative Service Commission could investigate further how other states and courts have dealt with employee
disciplinary action for medical marijuana. He said he particularly wondered if any cases involved states that required medical
marijuana patients to notify their employers upon receiving a medical marijuana card.
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Statehouse Update
Task force chairman Rep. Kirk Schuring (R-Canton) said he would suggest both the LSC and Mr. Bibart look into the
implications of a disclosure requirement.
Other workplace concerns include the effect on workers' compensation and unemployment insurance. In testimony to the task
force last week, the Ohio Manufacturers' Association posed many questions regarding the effect of medical marijuana on
employers. Among those was how a legal status for the drug would affect their insurance and worker's compensation costs. It
could also affect bargaining with unions, the association said, over whether exceptions for medical marijuana use would be
carved out in contracts.
The OMA also raised the question of what would happen to unemployment insurance for those who lose their jobs after failing
a drug test because of medical marijuana.
Mr. Bibart said Thursday that states have gone in different directions regarding unemployment coverage.
"Colorado said there is no unemployment access for those terminated for marijuana-related offenses," he said. "Michigan went
the other way."
The task force's next meeting is Thursday, March 31, at 3 p.m.
OHIO UNEMPLOYMENT STEADY AT 4.9%, STATE REPORTS
The state unemployment rate in February was unchanged from the prior month at 4.9%, which was also the U.S. rate, the
Department of Job and Family Services reported Friday.
Ohio's nonagricultural wage and salary employment rose 12,400 from revised figures to 5,477,700, the agency reported.
However, the state saw an increase of 6,000 in the number of unemployed workers compared to January, bringing that total to
285,000.
Over the last 12 months, the total number of unemployed has dropped by 6,000 and the unemployment rate decreased from
5.1% in February 2015.
Ohio saw its biggest private sector job gains last month in trade, transportation, and utilities (+5,800), educational and health
services (+4,300), and financial activities (+3,900), the state reported. Job losses occurred in manufacturing (-2,300), leisure and
hospitality (-2,200), other services (-1,200), and information (-1,000).
Government employment, at 770,300, increased 3,400 and was buoyed by gains in local (+5,400) and federal (+800)
government, ODJFS said. State government shed 2,800 jobs.
Since February 2015, total employment in the state grew by 78,700, with the largest gains coming in educational and health
services (+21,800), leisure and hospitality (+17,600), trade, transportation, and utilities (+16,100), goods-producing industries
(+12,800) and construction (+10,900).
Jobs decreased in durable goods manufacturing, and mining and logging, which both lost 3,200 in the last 12 months, ODJFS
reported. Professional and business services lost 1,700 positions since February 2015.
Fridays job report got mixed reviews from outside analysts.
Buckeye Institute Executive Vice President Rea Hederman said the key takeaway from the latest numbers is the state's strong
workforce participation rate, which now ties the national rate.
Policy Matters Ohio, meanwhile, said in a release that the jobs data reflected "hollow gains" for the state.
The Buckeye Institute noted that overall about 5.75 million workers - or 62.9% of Ohioans - were participating in the labor
force in February, which was up from 5.72 million (62.5%) in January and 5.7 million (62.6%) one year ago. February's
numbers bring the state in line with the national labor force participation rate of 62.9%.
"There are now more Ohioans looking for jobs or working than there has been in over two years," Mr. Hederman said in an
interview. "That's great news. This is a great jobs report because a lot of Ohioans entered the labor force and actually found
jobs."
He said February's increase in unemployed workers compared to January - despite a 6,000 drop in unemployment since
February 2015 - bodes well for the state.
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Statehouse Update
"That's indicative to me of how strong the labor market is," he said. "The labor force increased by 34,000 - 28,000 people found
jobs and only 6,000 didn't. So the rate of people being able to find jobs to those who aren't is very healthy."
He said an uptick in real estate jobs shows growth in the housing market. But the mining industry continues to steadily lose jobs
and manufacturing numbers were weaker than expected, he said.
February's good news, Mr. Hederman said, comes with a caveat. Because of the nature of the statistical analysis, he said he
wouldn't be surprised if workforce participation rates tick down for March. But he said he's "cautiously optimistic" moving
forward.
"The fact that Ohio is now matching or even exceeding the national average on labor participation rate is a very positive sign,"
Mr. Hederman said. "Lawmakers need to continue to enact policies to continue job creation through helping small businesses
and manufacturers."
Policy Matters said the suggestion of a "banner month" was "largely due to a large downward revision of January's job total."
"What appears to be a big gain is actually pretty hollow," the group's researcher Hannah Halbert said.
"Taken together, January and February did little to move Ohio ahead. We still trail the national average in terms of job growth
and we've barely recovered the number of jobs we had in December 2007, when the recession began."
Ohio, she said, remains an "underperformer" compared to other states as the 1.5% growth rate over the past 12 months trails the
nation's total of 1.9%.
Ohio's growth also lags the nation's since the start of the recession (1.1% compared to 3.7%) and since the 2005 tax
restructuring aimed at improving the state's competitiveness (1.2% to 7.2%), she said. Since the more recent tax cuts enacted in
June 2013, Ohio's job expansion (4%) still lags the nation's as a whole (5.4%).
"Ohio is sharing in the national economic expansion, but the state tax and budget policies that promised to increase job growth
have not changed the fact that we continue to underperform," Ms. Halbert said.
"Ohio's job market has improved since the recession ended, but our gains are below average. If we want to drive growth, we
should invest in working people," she added.
Monday, March 21, 2016
ENERGY COMPANIES REMAIN HOPEFUL FOR MARCH RULING ON PPAS
For more than a year and a half, AEP and FirstEnergy have waited for the Public Utilities Commission's orders on their
controversial Power Purchase Agreements - decisions that have been expected to be made in the first quarter of 2016.
But with just one more meeting of the PUCO scheduled for this month, it's possible the wait for one or both decisions could
stretch into the second quarter.
The PUCO is scheduled to meet just once more this month - a March 30 meeting for which the agenda has not yet been
finalized. The commission will not meet March 23.
Whether the agenda will include one or both cases hasn't yet been determined, but PUCO spokesman Matt Schilling said any
belief the ruling will come in the first quarter has been conjecture.
"For what it's worth the commission's never indicated when a decision may be," Mr. Schilling said. "There is lots of speculation
out there, but we don't know."
The companies involved and their opponents have been anticipating first quarter orders. Should a decision not come in two
weeks' time, the cases a year and a half or more in the making would be poised to continue.
The utilities are hopeful a decision arrives sooner, rather than later. In FirstEnergy's case, for example, the company has two
energy auctions scheduled in April under the Electric Security Plan scheduled to begin June 1.
"So we're very hopeful we can get an order in this case so we can proceed with these auctions," spokesman Doug Colafella said.
"Because as of June 1, we don't have power supply purchased for our customers.
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Statehouse Update
"I think everyone is hopeful a decision may come as of next meeting. But obviously it's up to commission to put it on the
agenda."
AEP spokeswoman Tammy Ridout said the company is "hopeful the commission will issue an order quickly."
"They have all the evidence in hand and we think they should approve the settlement agreement we've proposed," she said. "It's
been a long process and we're ready for it to move forward,"
Potentially complicating matters is the ongoing complaints against both PPAs before the Federal Energy Regulatory
Commission. The Ohio Consumers' Counsel in February urged the PUCO to delay ruling until the FERC cases are settled.
In their latest filing, the Electric Power Supply Association argued that the companies have failed to rebut the concerns raised in
the complaints and FERC "should issue an order as soon as possible granting the complaints."
The group cites opposition from PJM, the Pennsylvania Public Utility Commission, the Northwest Ohio Aggregation Council
and others as showing the merits of its case.
"It is rare to see these parties and suppliers in complete agreement on wholesale market issues, and that they are should be a
clear sign that, to paraphrase Shakespeare, something is rotten in the state of Ohio," the group wrote.
In their testimony, AEP and FirstEnergy both argue FERC has no jurisdiction in the matter and that the complaints are baseless
because the allegations of consumer harm are "misplaced."
Wednesday, March 23, 2016
BALLOT BOARD MAINTAINS CLEAN ENERGY INITIATIVE AS SINGLE ISSUE, BREAKS ETHICS PROPOSAL
INTO THREE PARTS
The Ohio Clean Energy Initiative survived its latest run-in with the Ballot Board in one piece, but its future in the face of last
year's monopoly-restricting Issue 2 could be dim.
This is the sixth time the measure - which would create a $13 billion bond issue for green energy projects over a decade - has
been proposed. The board in November carved a similar proposal into two separate issues, essentially killing it.
But the latest iteration does not contain the problematic language of that former proposal, which would have permitted backers
to address any portions deemed invalid by obtaining just a fraction of the signatures currently required.
Instead it was a new Section J that dominated board discussion Wednesday as members sought to determine whether the new
language was a calculated effort to circumvent Issue 2, which was designed to make it more difficult to establish monopolies in
the state constitution.
Following more than a half hour of contentious back and forth with an attorney representing petitioners, board members
unanimously voted to allow the measure to proceed as a single issue.
Still, Republican members made clear their opinion that the language could establish a monopoly - a view that sets up a
potential clash down the line between petitioners and board members if the required 305,591 signatures can be gathered.
The section in question states the amendment would "permit similarly situated persons or nonpublic entities similar benefits
believe granted or believed created, as identified by the Ohio Ballot Board, in this section."
Derek Clinger, associate attorney for McTigue & Colombo, said the language was meant to clarify that the amendment would
not create a monopoly. But he was unable, when repeatedly pressed by Secretary of State Jon Husted and Sen. Bill Coley (RLiberty Township), to name any such "similarly situated" entities.
"There's not a real life example," Mr. Clinger said. "This has never happened before."
"So there isn't one?" Mr. Husted asked.
"There could be," Mr. Clinger replied.
"You're trying to write some language on there that's essentially going to get around the Issue 2 language that was passed last
fall," Mr. Husted said. "By doing so, you're writing language that says, 'It's not a monopoly because any similarly situation
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Statehouse Update
entity to the one we have here would qualify.' That's great in theory, but if you can't explain to me what a similar situated entity
is, then it doesn't mean anything."
Mr. Clinger said whether the issue constitutes a monopoly is beyond the scope of the initial hearing before the board. That's to
be determined at a later point by the board, he said, adding that even if Section J was removed, the petitioners don't believe the
amendment establishes a monopoly.
If the signatures were gathered and the board determined the measure to create a monopoly, the proposal could advance to the
ballot as two questions: one asking voters if they approve of the creation of a monopoly, and a second asking if voters approve
the ballot language.
Sen. Coley called the language of Section J "unintelligible." He said the language is written such that if the first question on
creating a monopoly failed to pass but the second question passed then a monopoly might still be created by Section J.
"I believe the witness was quite clear this is actually two issues," Sen. Coley said. "It's the issue relative to the clean energy, but
it's also the issue that rewrites Issue 2 from last year. ...Even if the voters were to reject the constitutional monopoly in this area,
his testimony was this amendment would supersede that and that would all become effective even if voters rejected it."
Former Sen. Nina Turner agreed the language is confusing, but said she didn't think the monopoly question requires the board's
attention until the amendment returns to the ballot board after the collection of signatures. Secretary Husted agreed,
recommending the proposal remain a single issue.
After a five minute recess, during which Republicans and Ms. Turner met with their respective legal counsel, Sen. Coley
withdrew his motion to separate the issue. The board then unanimously voted the measure forward as a single issue.
Ethics Petition: The board also broke up the Ethics First proposal into three separate issues. That amendment in part would:
limit state lawmaker pay to no more than Ohio's median household income, require former legislators to have a two year
cooling off period before lobbying, and mandating legislative records be kept under state government control.
After a recess to meet with legal counsel, Sen. Coley moved the language be divided into three areas with Sections A, B, E, and
F being separated into language pertaining to ethics. That includes language to: apply all laws applied to citizens to members
and employees of the General Assembly, establish limitations on lobbying, enable taxpayers to file lawsuits to compel
compliance with the amendment, and permit the language to supersede all conflicting laws.
The other two issues are Section C, which pertains to lawmaker compensation, and Section D, which deals with state legislative
records.
Complicating the discussion was the fact that no one from the group proposing the issue - called Ethics First - You Decide Ohio
- attended the hearing to testify or field questions.
"So we're amending the Constitution and nobody's here to even offer a comment," Mr. Husted said. "Well, that's a first."
Ms. Turner was the only board member to vote against the motion. She argued for maintaining the language as a single issue in
order to give the public time to weigh in on the issue. She also questioned the two recesses - in which Republicans and their
counsel met separately from that of Ms. Turner and the Senate Democratic legal counsel.
"It would have been nice to have our legal counsel have the same conversation," Ms. Turner said. "That's my concern here."
Thursday, March 24, 2016
HIGH COURT: PROSPECTIVE CASINO OPERATOR, BUT NOT GENERAL PUBLIC, HAS STANDING TO
CHALLENGE CONSTITUTIONALITY OF GAMBLING AMENDMENT
The Ohio Supreme Court ruled Thursday that a Columbiana County man who claims to have the means to open a casino has
standing to challenge the constitutionality of the 2009 voter-approved amendment to the Ohio Constitution that expanded
gambling in the state.
The split decision authored by Justice Judith French reverses trial court and appellate court rulings that dismissed the case based
on standing, the court reported.
While clearing the way for Frederick Kinsey's challenge, a majority agreed with lower court rulings that found members of the
general public did not have standing based on issues such as school funding and problem gambling.
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Statehouse Update
Mr. Kinsey claimed the constitutional amendment and the laws governing the gambling operations violate the Equal Protection
Clause of the U.S. Constitution by granting the ability to operate casinos to only a handful of companies.
"While a declaration that those provisions violate the Fourteenth Amendment to the United States Constitution would not grant
the general public permission to conduct casino gambling in Ohio, it would eliminate the current inequality in the opportunity to
obtain that benefit," Justice French wrote. "Accordingly, we conclude that Kinsey's allegation is sufficient to meet the
redressability element of standing."
The court, however, found others, including those citing the negative effects of gambling, parents and teachers along with
contributors to the commercial activity tax, do not have standing to challenge the constitutional amendment or the laws
governing gambling operations, which upheld a portion of the Tenth District Court of Appeals decision.
Justice French was joined by Justices Sharon Kennedy Paul Pfeifer and Bill O'Neill in siding with Mr. Kinsey on the standing
issue.
Justices Pfeifer and O'Neill dissented with the majority of the court in dismissing the standing of others.
"This case is of great interest to the public. It involves a 2009 constitutional amendment on which over 3,000,000 Ohioans cast
a vote," Justice Paul Pfeifer wrote in a partially concurring opinion. "Whether the arguments are good enough to carry the day is
unknown, but the litigants deserve the right to be heard concerning a significant constitutional amendment that as recently as six
years ago engaged the attention of over 3,000,000 Ohioans."
Justice Judith Lanzinger was joined by Chief Justice Maureen O'Connor and Seventh District Court of Appeals Judge Mary
DeGenero, who sat in on the case for recused Justice Terrance O'Donnell, in a dissent. They agreed with the appeals court
finding that none of the parties had standing.
"The constitutional amendment that authorizes casino gambling was a policy choice instituted by initiative and voted on by the
public. The direct consequence of the relief Kinsey seeks - declaring the Ohio Constitutional provision on casino gaming
unconstitutional under the Fourteenth Amendment to the United States Constitution - would do through the court what
opponents to gambling were unable to do at the ballot box," Justice Lanzinger wrote.
Justice Lanzinger also argued that Mr. Kinsey had not demonstrated his ability to own and operate his own gambling
establishment.
"Under the majority's logic, every person in the world has standing to state a claim identical to Kinsey's, as long as the
complaint contains the simple statement that he or she would engage in casino gaming in Ohio but for the current state of the
law," she wrote. "Such an expansive interpretation of pleading effectively eliminates the need for and purpose of Ohio's
standing doctrine."
The American Policy Roundtable, which was denied standing in the same case, called the ruling "a tortured, divided and deeply
confusing opinion."
"Even the most casual observer can tell that something is wrong here," the group said. "A first year law student understands that
Constitutional law cannot be rewritten by a Governor and Legislature. That is the issue the Ohio Courts refuse to address.
Today's divided opinion does leave several legal options open which we are now taking under consideration."
OPPONENTS TO AEP AGREEMENT URGE PUCO TO DELAY RULING PENDING FERC DECISION;
COMPANY ARGUES MOVE WOULD BE HARMFUL
Members of the Public Utilities Commission of Ohio have had long enough to consider AEP's proposed Power Purchase
Agreement, according to the company.
That's the crux of the company's argument in a filing Thursday that urges the PUCO to not delay in issuing a decision until after
the resolution of a related case before the Federal Energy Regulatory Commission.
On Monday, the Ohio Consumers' Counsel, the Appalachian Peace and Justice Network, and the Ohio Manufacturers'
Association Energy Group filed a formal request for the commission to stay a ruling until the FERC case has been determined.
They made the same request of the PUCO in February in a case centered on a similar proposal from FirstEnergy.
In the filing, the groups say the delay is needed to prevent a repeat of a 2014 case in which AEP was permitted to keep $463
million in customer dollars after the court overturned a PUCO decision "approving an unlawful charge that was collected from
customers during the pendency of the appeal."
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Statehouse Update
"In order to prevent a potential, similar, unjust windfall to AEP Ohio, the PUCO should stay a ruling on AEP Ohio's request to
collect millions of dollars from customers through the PPA Rider during the pendency of the FERC proceeding," the groups
wrote.
American Electric Power on Thursday responded to opponents of the PPA, which would guarantee profits at the company's
aging coal plants. The opponents have long argued the plan will drive up prices for consumers, while the company said it will
actually save long term costs.
In its rebuttal, the company argues that it's been 17 months since its first application before the PUCO and 10 months since the
amended application was filed.
"Since that time, this commission has held 22 days of hearings, with 43 witnesses, 231 admitted exhibits and over 5,600 pages
of hearing transcripts," AEP wrote. "The parties have filed over 870 pages of post-hearing briefs, the last of which was filed
over six weeks ago."
The company accused opponents of seeking to use stall tactics and said the requested stay wouldn't pass the four-part test the
PUCO traditionally uses for staying orders. It also argued a stay would harm the company by potentially reducing rate-payer
benefits and hampering long-term strategic decisions.
"The Commission's treatment of this case is not dependent on FERC's resolution of the pending complaint, and there is no
reason for the Commission to wait for FERC," AEP argued. "To the contrary, there are many reasons for the Commission to
rule first."
Both AEP and FirstEnergy have argued that the PUCO, and not FERC, has jurisdiction in the two cases.
Opponents, meanwhile, argue that by issuing a stay the PUCO would be protecting consumer interests. They estimate the plan
would cost consumers at least $1.9 billion over eight years, resulting in an "unjust and unreasonable outcome for consumers."
"Waiting for a decision at FERC does not disadvantage AEP Ohio," the group wrote. "Because the PPA Rider is revenue neutral
to AEP Ohio, staying these proceedings would not cause harm to AEP Ohio."
AEP and FirstEnergy are hoping for a March ruling on the case, which would likely take place at the PUCO's final meeting this
month on March 30.
A ruling has been expected in the first quarter of this year, although PUCO spokesman Matt Schilling said last week that the
commission has never indicated when an order would be issued and that any suggestion otherwise is "speculation."
DP&L: A third PPA case - this one from Dayton Power & Light Company - meanwhile continues before the PUCO. The OCC
this week joined opponents in filing their intentions to intervene in the case, which was filed in February.
In its initial application, DP&L argued the plan would keep power plants operational while protecting customers from price
volatility and diversifying fuel.
But, as with similar plans from AEP and FirstEnergy, the OCC accused the company of using the plan as a way to walk back on
industry deregulation.
"This unlawful subsidy is the latest in a series of Ohio utility re-regulatory proposals to use their customers' money to fund what
are supposed to be power plants operating in the competitive market," the OCC wrote in testimony filed Monday.
Other groups filing intents to intervene in recent weeks include: IGS Energy, OMAEG, Kroger Co., Dynegy Inc., Industrial
Energy Users-Ohio, Energy Professionals of Ohio, the Ohio Energy Group, the Independent Market Monitor for PJM,
Monitoring Analytics LLC, and the Environmental Law and Policy Center.
Friday, March 25, 2016
AG DEWINE CERTIFIES MEDICAL POT AMENDMENT FOR PETITION CIRCULATION
Attorney General Mike DeWine on Friday certified petition language for a proposed medical marijuana ballot issue, an action
that followed several rejections of similar plans based on what he declared as flaws with summary verbiage.
The proposal from Ohioans for Medical Marijuana was submitted with the required 1,000 valid signatures from registered Ohio
voters and Mr. DeWine said he deemed the summary language to be a "fair and truthful" synopsis of the proposed amendment.
It was the group's second submission to the AG.
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Statehouse Update
Backers of the constitutional amendment, following a meeting of the Ballot Board to determine if it constitutes a single issue,
can start collecting signatures to place the plan before voters.
If endorsed by voters the amendment calls for the state to specify a list of medical conditions for which doctors could
recommend patients be eligible for a registry identification card. Those patients or their caregivers could grow up to six
marijuana plants for their own use and buy marijuana from a retail dispensary.
The proposal would create a Medical Marijuana Control Division, and the state would have until July 1, 2017 to develop
regulations.
"We're pleased with the attorney general's determination and appreciate his guidance during this process," Mason Tvert,
communications director for the group backing the initiative, the Marijuana Policy Project, said in a statement.
"Ohio is one step closer to adopting a sensible medical marijuana law that ensures seriously ill people have safe and legal access
to their medicine. We're looking forward to hearing back from the secretary of state and getting our petition drive started as
soon as possible."
AGENCY BRIEFS: STATE RELEASES EMPLOYEE, PAYROLL DATA
The number of state employees and overall pay remained fairly steady in 2015, according to an annual data and salary report
released Friday by the Department of Administrative Services.
Last year the state employed 51,806, which was up slightly from 51,792 in 2015, according to state data. The prior three years
saw a steady decline from 55,442 in 2011, to 53,571 in 2012 and 52,618 in 2013.
Payroll during the last calendar year increased 1.76% to just over $3 billion, DAS reported. Last year's pay included a 2.5%
raise that most employees received starting July 1, 2015.
State pay totals for the prior four years are: $2,963,502,797.23 in 2014; $2,960,297,521.97 in 2013; $2,991,905,592.70 in 2012;
and $3,131,865,584.08 in 2011.
Overtime pay last year totaled about $112.36 million, according to the state. Prior year totals were: $113,498,761.85 in 2014;
$111,161,156.17 in 2013; $105,210,141.01 in 2012; and $108,005,116.65 in 2011.
DAS also reported on the state's top earner and overtime earner.
"Psychiatrist Zinovi Goubar with the Department of Mental Health & Addiction Services grossed $456,242.53 in 2015, of
which $268,612.50 was for overtime. Dr. Goubar earned a significant amount of "On Duty" pay under Section 44.03 of the
collective bargaining agreement with SEIU/1199, making Dr. Goubar the highest earner," DAS stated.
"Nurse Theresa S. Udeani with the Department of Rehabilitation and Correction. grossed $184,733.53 in 2015, of which
$105,642.40 was for overtime. Ms. Udeani was the highest overtime earner of the employees not eligible for "On Duty" or "OnCall" pay. In 2014, Juvenile Correction Officer Arthur C. Bryant with the Department of Youth Services was the highest
overtime earner of the employees not eligible for "On Duty" or "On-Call" pay with gross earnings of $120,425.18."
Last year 77 employees earned a gross income of $190,000.00 or more, and 92 employees were paid between $150,000.00 and
$190,000.00, according to the state.
The average gross wage for state employees was $51,270 in 2015 compared to $49,890 in 2014 and $50,509 in 2013, DAS said.
Reprinted with permission of Gongwer News Service, Inc.
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