Legislative News

The Ohio House is poised this week to turn its attention to a capital appropriations bill that’s expected to move quickly through the General Assembly.

Most observers expect to see the capital bill turned around in short order. The bill is slated for introduction during Tuesday’s nonvoting session in the House.

Finance & Appropriations Committee Chairman Rep. Ron Amstutz (R-Wooster) has scheduled Tuesday and Wednesday hearings, pending referral, on the measure, which will contain construction project funding priorities related to state-owned facilities, K-12 school buildings and higher education.

The capital bill is expected to include state debt-backed construction funding for community projects for the first time in six years. The Kasich administration has suggested those initiatives will benefit from a new “bottom up” planning approach.

Under that model, Gov. John Kasich reached out to eight regional economic development groups, as well as the arts community, to create a list of proposed projects to be included in the legislation.

Requests, released by the administration in late December, included: $14 million for the Ohio Veterans’ Memorial project in Columbus and $1 million for an expansion of the Cleveland Museum of Art, among other things. 

However, GOP legislative leaders also planned to put their stamp on the funding list, prompting extensive behind-the-scenes negotiations that pushed back the unveiling of the measure.  Most of those discussions have focused on the community projects, as the administration has taken the lead to enumerate agency building needs, and higher education projects that usually comprise a big chunk of the bonding authority along with K-12 buildings have been worked out.

Higher education officials under a cooperative approach announced in late January that they were seeking to incorporate around $405 million for facility projects at all 37 public institutions into the capital bill. 

The House set plans to hear the first crop of mid-biennium review legislation this week, as well as the capital appropriations budget, following last week’s broad introduction to Gov. John Kasich’s latest policy push.

Rep. Jeff McClain (R-Upper Sandusky) introduced the whole MBR package as HB472 last week, but it is expected to be parceled out by topic to about a dozen committees. Legislative leaders hope to share full details on how the proposals will be carved up on Tuesday.

House Finance and Appropriations Committee scheduled testimony from the administration at Wednesday’s hearing on two yet-to-be-introduced bills addressing MBR topics. Rep. Ron Amstutz (R-Wooster), the committee chairman, will sponsor legislation on the appropriations changes Kasich proposed. Rep. Cliff Rosenberger (R-Clarksville), chairman of the committee’s Higher Education Subcommittee, will sponsor the higher education proposals.

The long-awaited capital budget, sponsored by Amstutz, is scheduled for hearings in House Finance and Appropriations on both Tuesday and Wednesday, pending introduction and referral.

Tax reform provisions are expected to stay in House Ways and Means Committee, where Budget Director Tim Keen led off initial testimony on the MBR last week. McClain, that committee’s chairman, said last week he foresees tax changes being addressed in up to three bills, one on severance taxes, a second on other taxes, and a third on tax administration changes. McClain said he expects the HB375 (Huffman), House Republican’s previous severance tax proposals, to remain the vehicle for oil-and-gas tax measures. 

Higher taxes on tobacco, oil and gas operations and business activities would provide the revenue to offset much of a sizable personal income tax cut expected under Governor Kasich’s mid-biennium review budget bill (MBR) set for unveiling this week.  The Governor isn’t likely to include an architectural services tax similar to the one he included in his last MBR proposal, which the General Assembly rejected. 

This new MBR will be introduced into the House of Representatives and will be split into 10-20 separate bills to be studied by various legislative committees. 

As expected, the governor will bring back his plan to increase the oil and gas severance tax, which the GOP-led legislature previously rejected, to help pay for the PIT cut, according to sources briefed by the administration on the proposal. 

While the House’s own version of a severance tax rewrite would set the tax rate at 2.25%, Mr. Kasich is seeking an increase to 2.75%. 

The governor as part of the “tax reform” package may propose an increase in the Commercial Activity Tax rate from 0.26% to 0.30%. The gross receipts-based tax has been lagging against estimates for several months and has been an area of concern for the administration. 

The governor also proposes to increase taxes on tobacco and tax e-cigarettes, sources said. The plan includes two 30-cent increases over two years for cigarettes, and the “equalization” of taxes on “other tobacco products.” 

All told, the 1,000-plus page bill will have to include several hundred million in new revenue from other sources in order to pay for getting Ohio’s top PIT rate below 5%, which is the governor’s target. Sources said, however, that the administration has not yet provided specific revenue figures for the various proposals. 

Early indications are that Mr. Kasich will again face opposition with his tax proposals. 

Increasing the CAT, originally sold as a broad-based, low-rate replacement to the “Swiss cheese” corporate franchise tax, will arm critics who argued on its inception in 2005 that it could be too easily increased as a revenue generator by future administrations. 

The oil and gas severance tax has been an ongoing debate among reluctant Republicans, and the two target rates remain a bone of contention as illustrated by hearings on the House’s proposal (HB 375). 

And the tobacco tax has always stirred vigorous debate, with the industry funding success at repelling or at least muting past proposals to hike taxes as well as equalize other tobacco product levies with those of cigarettes.

HB 379, AIA Ohio’s proposal that would provide civil immunity for architects, engineers, and surveyors who provide services during a declared emergency was amended during a hearing of the House Commerce, Labor and Technology Committee to include the volunteer services provided by a contractor or tradesperson. The bill’s Sponsor, Rep. Louis Blessing III said the “wanton and willful misconduct” clause remains in the bill.

Andrea Ashley, vice president of government relations for Associated General Contractors (AGC) of Ohio, offered proponent testimony for the bill and the amendment that was accepted.  Ashley said when construction is needed in emergency situations, “there should not be anything to make the construction industry hesitate to respond to help and possibly save lives.”

“Construction companies do the right thing when facing disasters and emergencies by bringing equipment, knowledge and people to the affected area,” Ashley said. “They volunteer their knowledge and resources to help people and want to be able to contribute in the same way in the future. The fear of lawsuits should not make construction contractors hesitate, or decide not to assist in times of need.”

Angela Van Fossen, director of legislative affairs for the Ohio Contractors Association (OCA), offered proponent testimony for the bill and the accepted amendment.

“It is no surprise that our contractors and their employees are often asked to provide their professional services during emergencies,” Van Fossen said. “The addition of this amendment would ensure their ability to confidently answer yes, without undue liability concerns, when requested to assist a community during an emergency.”

Chairman Young asked about the Norwalk flooding and OCA’s involvement in that cleanup process.  Van Fossen said OCA’s members participated in the cleanup on a “purely voluntary” basis, so if there was an accident they would not have been covered. 

Rep. R. Hagan asked a question about permanent structure, like a bridge, built during emergencies. He asked if years later, contractors could be held liable for faulty structures built under those circumstances.  Van Fossen said contractors normally help with cleanup, and are not building permanent structures. 

Blessing III said it would be difficult to prove that it occurred, while Young said he “could not imagine” a situation in which something permanent like a bridge would be built during an emergency without a contract.

Hagan asked for an amendment dealing with the issue, and Blessing III said he would not be opposed to including language concerning that possible situation.

John Van Doorn, an attorney with the Ohio Association for Justice (OAJ), said his office would need a day or two to come up with language addressing it. He said a clever attorney could claim a structure was “conceived” during an emergency.  “It is a stretch, but it’s possible,” Van Doorn said. 

Young said the vote would be put off until the next hearing to give time for the drafting of this amendment.

Melinda Gilpen, executive director of Professional Land Surveyors of Ohio, offered proponent testimony.

“Our position supports the efforts to protect volunteers from potential claims against them when acting in good faith and without compensation,” Gilpen said.

The Senate voted 22-10 to approve SCR25 (Uecker), which urges use of green building standards compliant with the American National Standards Institute (ASNI) process, in response to concern about recent changes in the latest USGBC Leadership in Energy and Environmental Design (LEED) standards from v3 to v4.

Sen. Joe Uecker (R-Loveland), the sponsor, said new LEED rules that urge avoidance of certain chemicals could affect such common construction materials as foam insulation and vinyl. 

Sen. Lou Gentile (D-Steubenville) said the resolution might send the wrong message that Ohio is “going backward” on green building projects, and noted that Ohio leads the nation in the number of LEED-certified school projects. 

Sen. Chris Widener, FAIA  (R-Springfield) said the resolution does not outright block the new LEED standards, but simply says they need to comply with ASNI standards first or be subject to public comment and review through the normal rule-making process.

A resolution that would discourage state agency use of the newest version of the Leadership in Energy and Environmental Design (LEED) standards drew considerable opposition testimony in a Senate Energy and Natural Resources Committee hearing Feb. 11.  SCR25 (Uecker) would urge state agencies and other government entities to only use green building rating systems, codes or standards that are consistent with American National Standards Institute (ANSI) policies.

LEED version four is not ANSI-certified for being a “consensus-based” standard, although LEED supporters say version four was subject to substantial industry and public scrutiny before being approved by 86 percent of United States Green Building Council (USGBC) members. LEED is a USGBC initiative, and over 100 Ohio school buildings have been LEED-certified since the Ohio School Facilities Commission (OSFC) required LEED use in 2007 for OSFC-funded buildings.

Tyler Steele, vice chair of the board of directors at USGBC Central Ohio, said LEED certification of schools results in “taxpayer savings through energy and water efficiency, reduced water waste, and most importantly, healthier students and teachers.” “Where we learn matters. Students perform better in schools with optimal indoor environments – clean air, access to daylight, innovative technologies, the best building materials, and more,” Steele said. “LEED has proven to be an effective program that helps to deliver these benefits to buildings, to the people inside of them and to the surrounding community.”Steele told the bill’s sponsor, Sen. Joe Uecker (R-Loveland), that while it is possible to build an energy-efficient building other ways, LEED is the “best available way” to work toward the goal of consistently building more efficient and environmentally friendly buildings. Sens. Uecker and Tim Schaffer (R-Lancaster) told witnesses Tuesday and in the previous hearing that the resolution does not discourage use of LEED overall, just the new version four.

Karen Joslin, owner of Joslin Consulting, said project teams currently seeking LEED certification have the option to register and use either LEED 2009 or version four rating systems. “However, after June of next year, just 15 months away, there will no longer be an option to choose the current 2009 systems,” Joslin said. “So please be clear that by attempting to prohibit LEED version four by state agencies and government institutions, there will no longer be any way for Ohio schools or universities to continue their LEED successes.” Uecker said project managers could continue to use the 2009 standards, saying he is “more impressed with results than a [LEED certification plaque.”

Joslin said people should think of the LEED certification plaque like a college diploma. “Someone has looked over what you did, and validated it. It’s the single biggest aspect of LEED,” Joslin said. “Designers have been saying for years they build ‘green.’ But they are not sustainable.”

Sens. Kris Jordan, (R-Powell), Bob Peterson (R-Sabina), Uecker and Schaffer questioned witnesses regarding certain materials being discouraged by LEED version four, which they said could negatively affect Ohio jobs. Nadja Turek, director of sustainable design services at Woolpert, Inc., said LEED version four incentivizes, but does not require, transparency of product ingredients.“Disclosure, transparency, and choice are hallmarks of the 21^st century marketplace, and that’s what the LEED version four materials credits incentivize,” Turek said. “But those credits are options on the ‘menu,’ and if I am working with a building owner that wishes to use a particular material, furnishing or finish they may certainly do so and still achieve LEED certification…. As engineers, we can use any and all materials that lead to a life-cycle cost-effective building, period.”

Justin Koscher, vice president of public policy at the Center for Environmental Innovation in Roofing, was the only proponent at the hearing. He said LEED should be commended for their success, but that the process in developing version four “eschewed the input of building experts and favored special interests over consensus.” He said his group and others who sent critical comments to USGBC regarding the product disclosure credits were not seriously considered in the decision making process. He said their lengthy comments were responded with a “generalized and ambiguous reply” thanking them for their comments.  “The lack of a true consensus-based process surrounding the development of LEED version four has not only violated the trust between USGBC and many stakeholders in the green building community, but it also has produced a rating system that will have severe consequences for Ohio businesses and jeopardizes the public’s ability to evaluate the energy and environmental performance of buildings constructed under current Ohio policy,” Koscher said.  Other testifying in opposition were Michael Berning, senior principal at Heapy Engineering; Tyrone Hissong, a farmer in Troy; Allison McKenzie, architect from Cincinnati; Jim Volkert, sale director for Go West 765; and Daniel Roberts, former superintendent of Miami Trace Local School District.

The Ohio House of Representatives Commerce, Labor and Technology Committee took testimony January 29 regarding the AIA Ohio-endorsed “Good Samaritan” bill, HB 379, which would provide civil immunity for architects, engineers, and surveyors who provide services during a declared emergency.

Rep. Blessing and Rep. Landis said in sponsor testimony the measure was brought to them by AIA Ohio.  Currently, there are no protections against civil suits for those working in an official capacity during an emergency, such as a tornado, Rep. Landis said, but often, “qualified engineers, surveyors and architects are the only people that can effectively assess the situation for search and rescue teams.”

The sponsors explained that registered engineers and surveyors as well as certified architects are eligible for the immunity as long as a state or federal emergency is declared and their services are requested by an official body such as the governor or local law enforcement.

A provision was added at the request of the Ohio Association for Justice to ensure that no immunity is give in the case of wanton, willful or intentional misconduct, Rep. Blessing said.

In response to a question from Rep. Barborak, Rep. Blessing said the immunity only applies for the time of the declared emergency and issues with permanent structures after that date are open to civil litigation.

Rep. Barborak questioned the legislation’s intent, asking if such measures that create immunity are simply saying that a standard of care is only necessary to live up to when a professional is being paid for his or her work.

Rep. Landis said the bill was proposed to encourage volunteerism from those workers who are already skilled and take great care and pride in their business or profession.

HCR25, which would ban the use of LEED v4 in Ohio was heard January 28 by the Senate Energy and Natural Resources Committee.

Sen. Uecker gave sponsor testimony and told the committee that the resolution “urges state agencies to use only green building rating systems, codes and standards developed by the American National Standards Institute (ANSI) when implementing state energy efficiency and environmental performance objectives.”

He also explained that the resolution is in response to the U.S. Green Building Council’s (USGBC) fourth version of Leadership in Energy and Environmental Design (LEED) standards, LEED v4, which “eliminates the use of a number of safe and effective building materials, impacting numerous industries in Ohio.”

There were no questions for the sponsor as he said there were several proponents who could speak to the specifics and details of the resolution better than he.

Josh Young of the American Chemical Council was the first of the proponents to testify. He said his organization and its members are supporters of energy efficiency, and that until LEED v4 came out, their products have been the building materials for all LEED-certified buildings.

He called the new LEED standards “ironic,” and said LEED v4 stepped into “chemical regulation” and created credits for “chemicals of avoidance” that target products made in Ohio, and therefore threatens jobs in the very industry LEED was created to support.

Regarding the process USGBC uses to produce LEED standards, Young said it is not an open one and allows “six or eight folks in Washington, D.C.” to tell Ohio how to build its public schools and to “cherry-picking” what materials make or don’t make their list.

He told Sen. Kearney that once the standards are put into place, schools in Ohio must conform to become LEED- certified, and the standards encourage builders to “de-select” proven, safe products.

Young also made the point that Ohio should have more than just one “eco-labling” system, and others like Green Globe and Energy Star are other “tools” used to measure efficiency standards.

“We have a one-pony situation here in Ohio,” he said.

Rich Walker of the American Architectural Manufacturers Association (AAMA), who said his organization’s certification labels ensure consumers of rigorous performance and safety standards of windows, doors, lights, skylights, etc., agreed with Young’s point about having manufacturing stakeholders at the USGBC table when it decides on LEED-approved materials.

Walker agreed with Sen. Ecklund’s point that if the state of Ohio dictates the standard to which a public building must be built, as it has for LEED-certified school buildings, then the state should retain the responsibility to watch that standard.

Also testifying was Allen Blakely of The Vinyl Institute, who buttressed the testimony of the others and said, “Unfortunately, we have seen discriminatory and disparaging treatment of vinyl in LEED credits, even after the (USGBC) conducted its own study showing vinyl’s health and environmental impacts were in line with the impacts of competing materials, and could be lower than alternatives.”

There were no questions for Blakely, and Chairman Balderson noted written proponent testimony also was submitted by the Ohio Chemistry Technology Council and the Ohio Coal Association. 

Schools in nearly every county of the state have applied for and been granted school security upgrade funds totaling $6.5 million, the Ohio School Facilities Commission reported Thursday.

To date about 2,500 applications for grants have been submitted to the commission and nearly all approved. The grants impact 426 districts in 84 counties and 874,500 students, OSFC Chief of Facility and Program Services Jeff Westhoven said.

The commission opened applications for the $12 million in grants in October. Two types of grants are available to cover the costs of installing a first-responder communications system – up to $2,000 – or door security upgrades – up to $5,000.

Applications continue to be nearly evenly divided between the door security and radio system requests, with 47% of requests being for the former and 53% for the latter, Mr. Westhoven said.

Grant money is distributed on a reimbursement basis once districts expend the money. So far, of the $6.5 million in grants approved by the OSFC, $1.07 million has been reimbursed, he said. The average processing time is eight days and average reimbursement time is five days.

OSFC also surveyed districts that had moved all the way through the grant process and found 22 of the 28 respondents said they “strongly agreed” that they were pleased with the overall experience of applying for the grants, Mr. Westhoven said.

The round one application deadline is March 15, at which point OSFC will assess how much has been spent. If funding is available, it may open round two on June 15, he said.

OFCC: Ohio Facilities Construction Commission members heard an overview of the capital bill submission from the entity.

David Chovan, OSFC chief operating officer, said the proposal includes funding for four programs over the next three biennia. The first priority is $700 million in fiscal years 2015-16 for the K-12, OSFC construction program.

The first half of the state’s more than 600 districts have had their construction projects funded, but another quarter of districts have deferred or lapsed because of an inability to secure local funding, and the final quarter have not yet come up on the priority list, he said.

The financial request would allow the commission to fund about 25 districts per year and keep with the current plan to complete all schools in 12 years, Mr. Chovan said.

OFCC’s second priority is $3.6 million over the next two biennia to conduct facility assessments in all of the state’s 5,400 buildings and structures totaling in more than 44 million square feet, he said.

“This will result in scope and cost data to better determine the needs and best uses of the state’s capital dollars,” he said.

Next, the commission requested $3.2 million per biennia to provide capital grant funding annually to state agencies for energy-related projects that would create energy efficiencies and reduce costs, Mr. Chovan said.

Lastly, OFCC requested $800,000 over the next three biennia to improve the reporting capabilities of the OAKS capital improvement application and provide access to the application from multiple browsers and mobile devices, he said.

Project Funding: Commission members approved the distributing of construction dollars to two district projects that are able to be funded because previously approved projects for fiscal year 2014 were unsuccessful in obtaining their local share of funding.

Norton City School District in Summit County, which was “lapsed” on its project by a couple years, was successful in securing its local bond levy in the November 2013 election, OSFC Chief of Planning Bill Ramsey said.

The funding covers Segment 1 of the project, which is funded at $16.34 million, with 51% of that being paid by the state, he said.

Also approved for funding was a Federal Hocking Local School District project in Athens County, which is approved at a cost of $567,154, 67% of which is funded by the state. It would pay for a roof replacement at the high school and other work in the district, Mr. Ramsay said.

The district had its full, $9.8 million project approved by the Department of Education in 1995 for work at two elementary schools and a high school, he said.

Commissioners asked if districts that are able to pass bond levies to pay for school construction then struggle to pass operating levies to open and run those buildings. OSFC Director Richard Hickman said the operating levies are typically given priority over construction funding.

“It’s a district’s approach to take care of the operating levy on a primary basis because that lets their educational programs continue, and that’s a primary concern for them,” he said. “What we see is most districts are reluctant to go forward with a capital building levy and at the same time go forward with an operating levy.

“With the economic situation that not only Ohio but other states across the nation have faced with unemployment and a very difficult labor situation within our districts…that has taken a toll on our program.”

Project Amendments: The commission also approved changes to the Cincinnati Public Schools master plan. It would move the demolition of a high school from the current segment under construction to be part of the final segment, Mr. Ramsey said.

In doing so, the cost of Segment 2b is reduced by $1.5 million, which is transferred to Segment 3b, he said. The latter portion of work also increased another $800,000 because the district opted to add two additional demolition projects for buildings it had previously thought it would use.

Both the OSFC and the OFCC re-elected Office of Budget and Management Director Tim Keen as chairman and Department of Administrative Services Director Robert Blair as vice chairman.

The Ohio House is poised this week to turn its attention to a capital appropriations bill that’s expected to move quickly through the General Assembly.

Most observers expect to see the capital bill turned around in short order. The bill is slated for introduction during Tuesday’s nonvoting session in the House.

Finance & Appropriations Committee Chairman Rep. Ron Amstutz (R-Wooster) has scheduled Tuesday and Wednesday hearings, pending referral, on the measure, which will contain construction project funding priorities related to state-owned facilities, K-12 school buildings and higher education.

The capital bill is expected to include state debt-backed construction funding for community projects for the first time in six years. The Kasich administration has suggested those initiatives will benefit from a new “bottom up” planning approach.

Under that model, Gov. John Kasich reached out to eight regional economic development groups, as well as the arts community, to create a list of proposed projects to be included in the legislation.

Requests, released by the administration in late December, included: $14 million for the Ohio Veterans’ Memorial project in Columbus and $1 million for an expansion of the Cleveland Museum of Art, among other things. 

However, GOP legislative leaders also planned to put their stamp on the funding list, prompting extensive behind-the-scenes negotiations that pushed back the unveiling of the measure.  Most of those discussions have focused on the community projects, as the administration has taken the lead to enumerate agency building needs, and higher education projects that usually comprise a big chunk of the bonding authority along with K-12 buildings have been worked out.

Higher education officials under a cooperative approach announced in late January that they were seeking to incorporate around $405 million for facility projects at all 37 public institutions into the capital bill. 

The House set plans to hear the first crop of mid-biennium review legislation this week, as well as the capital appropriations budget, following last week’s broad introduction to Gov. John Kasich’s latest policy push.

Rep. Jeff McClain (R-Upper Sandusky) introduced the whole MBR package as HB472 last week, but it is expected to be parceled out by topic to about a dozen committees. Legislative leaders hope to share full details on how the proposals will be carved up on Tuesday.

House Finance and Appropriations Committee scheduled testimony from the administration at Wednesday’s hearing on two yet-to-be-introduced bills addressing MBR topics. Rep. Ron Amstutz (R-Wooster), the committee chairman, will sponsor legislation on the appropriations changes Kasich proposed. Rep. Cliff Rosenberger (R-Clarksville), chairman of the committee’s Higher Education Subcommittee, will sponsor the higher education proposals.

The long-awaited capital budget, sponsored by Amstutz, is scheduled for hearings in House Finance and Appropriations on both Tuesday and Wednesday, pending introduction and referral.

Tax reform provisions are expected to stay in House Ways and Means Committee, where Budget Director Tim Keen led off initial testimony on the MBR last week. McClain, that committee’s chairman, said last week he foresees tax changes being addressed in up to three bills, one on severance taxes, a second on other taxes, and a third on tax administration changes. McClain said he expects the HB375 (Huffman), House Republican’s previous severance tax proposals, to remain the vehicle for oil-and-gas tax measures. 

Higher taxes on tobacco, oil and gas operations and business activities would provide the revenue to offset much of a sizable personal income tax cut expected under Governor Kasich’s mid-biennium review budget bill (MBR) set for unveiling this week.  The Governor isn’t likely to include an architectural services tax similar to the one he included in his last MBR proposal, which the General Assembly rejected. 

This new MBR will be introduced into the House of Representatives and will be split into 10-20 separate bills to be studied by various legislative committees. 

As expected, the governor will bring back his plan to increase the oil and gas severance tax, which the GOP-led legislature previously rejected, to help pay for the PIT cut, according to sources briefed by the administration on the proposal. 

While the House’s own version of a severance tax rewrite would set the tax rate at 2.25%, Mr. Kasich is seeking an increase to 2.75%. 

The governor as part of the “tax reform” package may propose an increase in the Commercial Activity Tax rate from 0.26% to 0.30%. The gross receipts-based tax has been lagging against estimates for several months and has been an area of concern for the administration. 

The governor also proposes to increase taxes on tobacco and tax e-cigarettes, sources said. The plan includes two 30-cent increases over two years for cigarettes, and the “equalization” of taxes on “other tobacco products.” 

All told, the 1,000-plus page bill will have to include several hundred million in new revenue from other sources in order to pay for getting Ohio’s top PIT rate below 5%, which is the governor’s target. Sources said, however, that the administration has not yet provided specific revenue figures for the various proposals. 

Early indications are that Mr. Kasich will again face opposition with his tax proposals. 

Increasing the CAT, originally sold as a broad-based, low-rate replacement to the “Swiss cheese” corporate franchise tax, will arm critics who argued on its inception in 2005 that it could be too easily increased as a revenue generator by future administrations. 

The oil and gas severance tax has been an ongoing debate among reluctant Republicans, and the two target rates remain a bone of contention as illustrated by hearings on the House’s proposal (HB 375). 

And the tobacco tax has always stirred vigorous debate, with the industry funding success at repelling or at least muting past proposals to hike taxes as well as equalize other tobacco product levies with those of cigarettes.

HB 379, AIA Ohio’s proposal that would provide civil immunity for architects, engineers, and surveyors who provide services during a declared emergency was amended during a hearing of the House Commerce, Labor and Technology Committee to include the volunteer services provided by a contractor or tradesperson. The bill’s Sponsor, Rep. Louis Blessing III said the “wanton and willful misconduct” clause remains in the bill.

Andrea Ashley, vice president of government relations for Associated General Contractors (AGC) of Ohio, offered proponent testimony for the bill and the amendment that was accepted.  Ashley said when construction is needed in emergency situations, “there should not be anything to make the construction industry hesitate to respond to help and possibly save lives.”

“Construction companies do the right thing when facing disasters and emergencies by bringing equipment, knowledge and people to the affected area,” Ashley said. “They volunteer their knowledge and resources to help people and want to be able to contribute in the same way in the future. The fear of lawsuits should not make construction contractors hesitate, or decide not to assist in times of need.”

Angela Van Fossen, director of legislative affairs for the Ohio Contractors Association (OCA), offered proponent testimony for the bill and the accepted amendment.

“It is no surprise that our contractors and their employees are often asked to provide their professional services during emergencies,” Van Fossen said. “The addition of this amendment would ensure their ability to confidently answer yes, without undue liability concerns, when requested to assist a community during an emergency.”

Chairman Young asked about the Norwalk flooding and OCA’s involvement in that cleanup process.  Van Fossen said OCA’s members participated in the cleanup on a “purely voluntary” basis, so if there was an accident they would not have been covered. 

Rep. R. Hagan asked a question about permanent structure, like a bridge, built during emergencies. He asked if years later, contractors could be held liable for faulty structures built under those circumstances.  Van Fossen said contractors normally help with cleanup, and are not building permanent structures. 

Blessing III said it would be difficult to prove that it occurred, while Young said he “could not imagine” a situation in which something permanent like a bridge would be built during an emergency without a contract.

Hagan asked for an amendment dealing with the issue, and Blessing III said he would not be opposed to including language concerning that possible situation.

John Van Doorn, an attorney with the Ohio Association for Justice (OAJ), said his office would need a day or two to come up with language addressing it. He said a clever attorney could claim a structure was “conceived” during an emergency.  “It is a stretch, but it’s possible,” Van Doorn said. 

Young said the vote would be put off until the next hearing to give time for the drafting of this amendment.

Melinda Gilpen, executive director of Professional Land Surveyors of Ohio, offered proponent testimony.

“Our position supports the efforts to protect volunteers from potential claims against them when acting in good faith and without compensation,” Gilpen said.

The Senate voted 22-10 to approve SCR25 (Uecker), which urges use of green building standards compliant with the American National Standards Institute (ASNI) process, in response to concern about recent changes in the latest USGBC Leadership in Energy and Environmental Design (LEED) standards from v3 to v4.

Sen. Joe Uecker (R-Loveland), the sponsor, said new LEED rules that urge avoidance of certain chemicals could affect such common construction materials as foam insulation and vinyl. 

Sen. Lou Gentile (D-Steubenville) said the resolution might send the wrong message that Ohio is “going backward” on green building projects, and noted that Ohio leads the nation in the number of LEED-certified school projects. 

Sen. Chris Widener, FAIA  (R-Springfield) said the resolution does not outright block the new LEED standards, but simply says they need to comply with ASNI standards first or be subject to public comment and review through the normal rule-making process.

A resolution that would discourage state agency use of the newest version of the Leadership in Energy and Environmental Design (LEED) standards drew considerable opposition testimony in a Senate Energy and Natural Resources Committee hearing Feb. 11.  SCR25 (Uecker) would urge state agencies and other government entities to only use green building rating systems, codes or standards that are consistent with American National Standards Institute (ANSI) policies.

LEED version four is not ANSI-certified for being a “consensus-based” standard, although LEED supporters say version four was subject to substantial industry and public scrutiny before being approved by 86 percent of United States Green Building Council (USGBC) members. LEED is a USGBC initiative, and over 100 Ohio school buildings have been LEED-certified since the Ohio School Facilities Commission (OSFC) required LEED use in 2007 for OSFC-funded buildings.

Tyler Steele, vice chair of the board of directors at USGBC Central Ohio, said LEED certification of schools results in “taxpayer savings through energy and water efficiency, reduced water waste, and most importantly, healthier students and teachers.” “Where we learn matters. Students perform better in schools with optimal indoor environments – clean air, access to daylight, innovative technologies, the best building materials, and more,” Steele said. “LEED has proven to be an effective program that helps to deliver these benefits to buildings, to the people inside of them and to the surrounding community.”Steele told the bill’s sponsor, Sen. Joe Uecker (R-Loveland), that while it is possible to build an energy-efficient building other ways, LEED is the “best available way” to work toward the goal of consistently building more efficient and environmentally friendly buildings. Sens. Uecker and Tim Schaffer (R-Lancaster) told witnesses Tuesday and in the previous hearing that the resolution does not discourage use of LEED overall, just the new version four.

Karen Joslin, owner of Joslin Consulting, said project teams currently seeking LEED certification have the option to register and use either LEED 2009 or version four rating systems. “However, after June of next year, just 15 months away, there will no longer be an option to choose the current 2009 systems,” Joslin said. “So please be clear that by attempting to prohibit LEED version four by state agencies and government institutions, there will no longer be any way for Ohio schools or universities to continue their LEED successes.” Uecker said project managers could continue to use the 2009 standards, saying he is “more impressed with results than a [LEED certification plaque.”

Joslin said people should think of the LEED certification plaque like a college diploma. “Someone has looked over what you did, and validated it. It’s the single biggest aspect of LEED,” Joslin said. “Designers have been saying for years they build ‘green.’ But they are not sustainable.”

Sens. Kris Jordan, (R-Powell), Bob Peterson (R-Sabina), Uecker and Schaffer questioned witnesses regarding certain materials being discouraged by LEED version four, which they said could negatively affect Ohio jobs. Nadja Turek, director of sustainable design services at Woolpert, Inc., said LEED version four incentivizes, but does not require, transparency of product ingredients.“Disclosure, transparency, and choice are hallmarks of the 21^st century marketplace, and that’s what the LEED version four materials credits incentivize,” Turek said. “But those credits are options on the ‘menu,’ and if I am working with a building owner that wishes to use a particular material, furnishing or finish they may certainly do so and still achieve LEED certification…. As engineers, we can use any and all materials that lead to a life-cycle cost-effective building, period.”

Justin Koscher, vice president of public policy at the Center for Environmental Innovation in Roofing, was the only proponent at the hearing. He said LEED should be commended for their success, but that the process in developing version four “eschewed the input of building experts and favored special interests over consensus.” He said his group and others who sent critical comments to USGBC regarding the product disclosure credits were not seriously considered in the decision making process. He said their lengthy comments were responded with a “generalized and ambiguous reply” thanking them for their comments.  “The lack of a true consensus-based process surrounding the development of LEED version four has not only violated the trust between USGBC and many stakeholders in the green building community, but it also has produced a rating system that will have severe consequences for Ohio businesses and jeopardizes the public’s ability to evaluate the energy and environmental performance of buildings constructed under current Ohio policy,” Koscher said.  Other testifying in opposition were Michael Berning, senior principal at Heapy Engineering; Tyrone Hissong, a farmer in Troy; Allison McKenzie, architect from Cincinnati; Jim Volkert, sale director for Go West 765; and Daniel Roberts, former superintendent of Miami Trace Local School District.

The Ohio House of Representatives Commerce, Labor and Technology Committee took testimony January 29 regarding the AIA Ohio-endorsed “Good Samaritan” bill, HB 379, which would provide civil immunity for architects, engineers, and surveyors who provide services during a declared emergency.

Rep. Blessing and Rep. Landis said in sponsor testimony the measure was brought to them by AIA Ohio.  Currently, there are no protections against civil suits for those working in an official capacity during an emergency, such as a tornado, Rep. Landis said, but often, “qualified engineers, surveyors and architects are the only people that can effectively assess the situation for search and rescue teams.”

The sponsors explained that registered engineers and surveyors as well as certified architects are eligible for the immunity as long as a state or federal emergency is declared and their services are requested by an official body such as the governor or local law enforcement.

A provision was added at the request of the Ohio Association for Justice to ensure that no immunity is give in the case of wanton, willful or intentional misconduct, Rep. Blessing said.

In response to a question from Rep. Barborak, Rep. Blessing said the immunity only applies for the time of the declared emergency and issues with permanent structures after that date are open to civil litigation.

Rep. Barborak questioned the legislation’s intent, asking if such measures that create immunity are simply saying that a standard of care is only necessary to live up to when a professional is being paid for his or her work.

Rep. Landis said the bill was proposed to encourage volunteerism from those workers who are already skilled and take great care and pride in their business or profession.

HCR25, which would ban the use of LEED v4 in Ohio was heard January 28 by the Senate Energy and Natural Resources Committee.

Sen. Uecker gave sponsor testimony and told the committee that the resolution “urges state agencies to use only green building rating systems, codes and standards developed by the American National Standards Institute (ANSI) when implementing state energy efficiency and environmental performance objectives.”

He also explained that the resolution is in response to the U.S. Green Building Council’s (USGBC) fourth version of Leadership in Energy and Environmental Design (LEED) standards, LEED v4, which “eliminates the use of a number of safe and effective building materials, impacting numerous industries in Ohio.”

There were no questions for the sponsor as he said there were several proponents who could speak to the specifics and details of the resolution better than he.

Josh Young of the American Chemical Council was the first of the proponents to testify. He said his organization and its members are supporters of energy efficiency, and that until LEED v4 came out, their products have been the building materials for all LEED-certified buildings.

He called the new LEED standards “ironic,” and said LEED v4 stepped into “chemical regulation” and created credits for “chemicals of avoidance” that target products made in Ohio, and therefore threatens jobs in the very industry LEED was created to support.

Regarding the process USGBC uses to produce LEED standards, Young said it is not an open one and allows “six or eight folks in Washington, D.C.” to tell Ohio how to build its public schools and to “cherry-picking” what materials make or don’t make their list.

He told Sen. Kearney that once the standards are put into place, schools in Ohio must conform to become LEED- certified, and the standards encourage builders to “de-select” proven, safe products.

Young also made the point that Ohio should have more than just one “eco-labling” system, and others like Green Globe and Energy Star are other “tools” used to measure efficiency standards.

“We have a one-pony situation here in Ohio,” he said.

Rich Walker of the American Architectural Manufacturers Association (AAMA), who said his organization’s certification labels ensure consumers of rigorous performance and safety standards of windows, doors, lights, skylights, etc., agreed with Young’s point about having manufacturing stakeholders at the USGBC table when it decides on LEED-approved materials.

Walker agreed with Sen. Ecklund’s point that if the state of Ohio dictates the standard to which a public building must be built, as it has for LEED-certified school buildings, then the state should retain the responsibility to watch that standard.

Also testifying was Allen Blakely of The Vinyl Institute, who buttressed the testimony of the others and said, “Unfortunately, we have seen discriminatory and disparaging treatment of vinyl in LEED credits, even after the (USGBC) conducted its own study showing vinyl’s health and environmental impacts were in line with the impacts of competing materials, and could be lower than alternatives.”

There were no questions for Blakely, and Chairman Balderson noted written proponent testimony also was submitted by the Ohio Chemistry Technology Council and the Ohio Coal Association. 

Schools in nearly every county of the state have applied for and been granted school security upgrade funds totaling $6.5 million, the Ohio School Facilities Commission reported Thursday.

To date about 2,500 applications for grants have been submitted to the commission and nearly all approved. The grants impact 426 districts in 84 counties and 874,500 students, OSFC Chief of Facility and Program Services Jeff Westhoven said.

The commission opened applications for the $12 million in grants in October. Two types of grants are available to cover the costs of installing a first-responder communications system – up to $2,000 – or door security upgrades – up to $5,000.

Applications continue to be nearly evenly divided between the door security and radio system requests, with 47% of requests being for the former and 53% for the latter, Mr. Westhoven said.

Grant money is distributed on a reimbursement basis once districts expend the money. So far, of the $6.5 million in grants approved by the OSFC, $1.07 million has been reimbursed, he said. The average processing time is eight days and average reimbursement time is five days.

OSFC also surveyed districts that had moved all the way through the grant process and found 22 of the 28 respondents said they “strongly agreed” that they were pleased with the overall experience of applying for the grants, Mr. Westhoven said.

The round one application deadline is March 15, at which point OSFC will assess how much has been spent. If funding is available, it may open round two on June 15, he said.

OFCC: Ohio Facilities Construction Commission members heard an overview of the capital bill submission from the entity.

David Chovan, OSFC chief operating officer, said the proposal includes funding for four programs over the next three biennia. The first priority is $700 million in fiscal years 2015-16 for the K-12, OSFC construction program.

The first half of the state’s more than 600 districts have had their construction projects funded, but another quarter of districts have deferred or lapsed because of an inability to secure local funding, and the final quarter have not yet come up on the priority list, he said.

The financial request would allow the commission to fund about 25 districts per year and keep with the current plan to complete all schools in 12 years, Mr. Chovan said.

OFCC’s second priority is $3.6 million over the next two biennia to conduct facility assessments in all of the state’s 5,400 buildings and structures totaling in more than 44 million square feet, he said.

“This will result in scope and cost data to better determine the needs and best uses of the state’s capital dollars,” he said.

Next, the commission requested $3.2 million per biennia to provide capital grant funding annually to state agencies for energy-related projects that would create energy efficiencies and reduce costs, Mr. Chovan said.

Lastly, OFCC requested $800,000 over the next three biennia to improve the reporting capabilities of the OAKS capital improvement application and provide access to the application from multiple browsers and mobile devices, he said.

Project Funding: Commission members approved the distributing of construction dollars to two district projects that are able to be funded because previously approved projects for fiscal year 2014 were unsuccessful in obtaining their local share of funding.

Norton City School District in Summit County, which was “lapsed” on its project by a couple years, was successful in securing its local bond levy in the November 2013 election, OSFC Chief of Planning Bill Ramsey said.

The funding covers Segment 1 of the project, which is funded at $16.34 million, with 51% of that being paid by the state, he said.

Also approved for funding was a Federal Hocking Local School District project in Athens County, which is approved at a cost of $567,154, 67% of which is funded by the state. It would pay for a roof replacement at the high school and other work in the district, Mr. Ramsay said.

The district had its full, $9.8 million project approved by the Department of Education in 1995 for work at two elementary schools and a high school, he said.

Commissioners asked if districts that are able to pass bond levies to pay for school construction then struggle to pass operating levies to open and run those buildings. OSFC Director Richard Hickman said the operating levies are typically given priority over construction funding.

“It’s a district’s approach to take care of the operating levy on a primary basis because that lets their educational programs continue, and that’s a primary concern for them,” he said. “What we see is most districts are reluctant to go forward with a capital building levy and at the same time go forward with an operating levy.

“With the economic situation that not only Ohio but other states across the nation have faced with unemployment and a very difficult labor situation within our districts…that has taken a toll on our program.”

Project Amendments: The commission also approved changes to the Cincinnati Public Schools master plan. It would move the demolition of a high school from the current segment under construction to be part of the final segment, Mr. Ramsey said.

In doing so, the cost of Segment 2b is reduced by $1.5 million, which is transferred to Segment 3b, he said. The latter portion of work also increased another $800,000 because the district opted to add two additional demolition projects for buildings it had previously thought it would use.

Both the OSFC and the OFCC re-elected Office of Budget and Management Director Tim Keen as chairman and Department of Administrative Services Director Robert Blair as vice chairman.