State Representatives Nan Baker (R-Westlake) recently offered sponsor testimony in the House Ways & Means Committee in support of House Bill 18. The legislation, if enacted, would encourage Ohio businesses that are planning to increase their payroll to expand into vacant property by enacting a nonrefundable tax credit.

“House Bill 18 is designed to encourage businesses to expand into areas that have been losing companies, jobs and prosperity,” said Baker. “The mass exodus of large and small corporations from Ohio has left behind abandoned and vacant buildings dotting urban, suburban and rural landscapes. New and expanding companies could revitalize these buildings and use them when they decide to increase their workforce.”

The idea of the legislation was brought to the attention of Rep. Baker by a constituent, David Greenspan, who was recently elected to Cuyahoga County Council, representing District 1. It aims to encourage economic growth in areas that have previously lost business by giving businesses an incentive to use existing facilities rather than build new ones.

“By looking for buildings where businesses have left, companies will be entering economies full of citizens that need jobs and are ready to work,” said Baker. “Areas with high percentages of vacant properties are also areas that have high unemployment rates. Companies expanding into these areas can revitalize the communities and make the local economy more enticing for further business growth, as well.”

As the former mayor of Westerville, I have invested much of my energy into reviving the local economy and bringing jobs to our region. Now, as a newly elected representative in the People’s House, I have the great honor of working on behalf of our community to create jobs in the state as a whole.

As I’m sure you know, Ohio’s economy has fallen into a sort of doldrums, with other states racing ahead of us in the competition for economic growth and job creation. Everyone has their own ideas about why this is happening and in such a devastating way to Ohio, from high taxes to Midwestern weather. But the truth is, the most likely culprit is our state’s lackluster business climate due to high taxes and burdensome regulation—as well as the incentives that many other states are using to entice our exhausted businesses.

The concept of using incentives packages to draw businesses out of Ohio is nothing new. Dayton’s NCR was given more than $100 million in incentives to relocate to Georgia. In northwest Ohio, three plants that relocated to Indiana were offered $4 million in incentives leave the Buckeye State.

With more and more states using incentives packages to lure businesses from Ohio, it is important to consider incentives that we can offer to motivate businesses to remain in our state. Rather than looking at ways to nickel-and-dime businesses to feed state spending, what are we doing to encourage businesses to remain here—or better yet, expand and create more jobs for our communities? This is an economic development tactic that I believe is being underutilized in Ohio and should receive a closer look over the next several years.

There are currently two economic development bills making their way through the House Ways and Means Committee that, when enacted, will provide new tax incentive options to encourage businesses to expand or create jobs. One of these bills, House Bill 17, authorizes a $2,400 income tax withholding credit for an employer who hires and employs a previously unemployed individual. Introduced by Rep. Nan Baker, House Bill 17 is just one of the ways lawmakers can motivate employers to create jobs for our communities.

Also introduced by Rep. Baker, House Bill 18 will authorize a nonrefundable tax credit for businesses that increase payroll and expand into a vacant facility. The intent behind this legislation is to revitalize communities that have been hit hard by job loss and industry deterioration by replacing those lost businesses. Together, House Bills 17 and 18 will address Ohio’s economic struggle on two fronts by easing some of the financial pressures that many local businesses have experienced, while at the same time creating opportunities for Ohioans to get back to work.

As these and other economy-focused bills move through the legislative process, I will do my best to keep you informed about what is going on in the Statehouse. It is my honor and privilege to serve as your voice in the People’s House, and as we seek sustainable solutions to Ohio’s economic woes, remember that we are in this together.

The 129th Legislature is well underway, and there is certainly no shortage of challenges to address over the next two years. This General Assembly, I have been honored with the privilege of serving as the assistant majority whip of the House majority caucus, which will give me the opportunity to serve in a leadership role during one of the most crucial times in Ohio’s history.

It’s no secret that Ohio’s economy and business climate has been declining over the past few decades, a distressing trend that continues today. Before we are able to stop the steady flow of economic activity from our borders, we first need to consider which aspects of our business climate are causing Ohio to fall behind. Although we cannot entirely blame any one factor, we can certainly agree that all these factors together have made Ohio unable to keep up in the race for jobs. Now is the time to start addressing these hurdles that are blocking our economic success.

Even though the 129th General Assembly has only been in session for about a month now, members of the Ohio House have been working diligently to craft, introduce and fine-tune legislation to address Ohio’s economic woes. Many of these bills have the potential to motivate our citizens to remain within our borders and start a family, launch a business or retire.

One factor that has contributed to Ohio’s out-migration of hundreds of thousands of citizens is our burdensome estate tax, also known as the “death tax.” For more than 40 years, Ohio’s death tax has taken direct aim at our middle class, especially small business owners, farmers and homeowners. Today, our estate tax exemption is the lowest in the entire nation at $338,333, compared with an average exemption of about $2 million for the other 16 states that levy this tax.

To address the harmful repercussions of this tax, Rep. Jay Hottinger and I introduced House Bill 3 earlier this month to repeal Ohio’s estate tax and more closely align our tax code with those of other states. Thirty-three other states do not have an estate tax, and it is long overdue that we make an effort to revamp our tax code so we can compete nationally and globally. We cannot afford to give businesses another reason to leave our state for better tax climates, and I truly believe that repealing the estate tax is a vital first step.

I also cosponsored legislation that would ensure that Ohio’s government is operating as efficiently and cost-effectively as possible. House Bill 2, which was introduced by Reps. Todd Snitchler and Peter Stautberg, would compel the Ohio Auditor of State to conduct biennial performance audits of state agencies. These audits would identify inefficient or outdated programs while allowing the state to regularly evaluate the practicality of state-funded agencies, which I fully support as we face a difficult budget in which every dollar must be spent judiciously. I think that this is a worthwhile effort that should be taken advantage of even in a good economy, but it is a necessity during a difficult economy.

It may be easy to rely on entrenched spending habits and a long-established status quo, but it is much more rewarding to examine how our government is running and what we can do to make structural improvements. There will always be naysayers who fear the consequences of stepping outside of their comfort zones, daring to break the mold of the past. But the truth is, we live in a highly competitive—and highly mobile—national economy in which packing up and crossing over into a border state is relatively simple. And with hundreds of thousands of Ohioans speaking with their feet and fleeing our state, we need to finally do what inevitably needs to be done.

The question is, how much longer will Ohio be able to stand on its own two feet before our reliance on high taxes drive out the rest of our entrepreneurs and businesses to neighboring states? It’s important that we never discover the answer to this question.

COLUMBUS—Am. Sub. House Bill 1 today passed out of the Finance and Appropriations Committee, which marks a crucial step toward a more efficient and responsive economic development effort in Ohio. It will require the governor of Ohio to establish a nine-member, non-profit corporation called JobsOhio, envisioned to be a cutting-edge economic development entity tasked with business recruitment, job creation and job training within the state.

“During the past decade, Ohio has lost hundreds of thousands of jobs, and it’s clear that we need to explore more effective options for growing jobs in our state,” said the chairman of the House Finance and Appropriations Committee, State Rep. Ron Amstutz (R-Wooster). “We need leadership that understands how business works and knows what companies look for in a state business climate. I believe that JobsOhio will help establish a better environment for job creation.”

Am. Sub. House Bill 1 also instructs the director of the Ohio Department of Development (ODOD) to evaluate all functions and duties within the department and submit recommendations to improve the department’s functioning and efficiency to the General Assembly. It does not abolish ODOD but instead calls for six months of study, during which all interested parties can participate before further legislative action is pursued.

“Through the passage of this legislation, Ohio will be able to field a top-flight economic development team that speaks the language of business and moves at the pace of today’s global economy,” said Rep. Mike Duffey (R-Worthington), who is the sponsor of House Bill 1. “The slow, bureaucratic pace of state government is simply not able to keep up in an increasingly competitive and mobile economy. We need to make sure that the people leading our economic development efforts understand business and job creation and can help Ohio compete in the 21st century.”

Am. Sub. House Bill 1 will now move to the House floor, where it is expected receive a vote by the full chamber next week.

COLUMBUS—State Representatives Danny Bubp (R-West Union) and Terry Johnson (R-McDermott) recently introduced legislation to amend Ohio’s concealed carry laws to make them simpler and consistent with other states.

Specifically, House Bill 45 will simplify the provisions related to the carrying of firearms in vehicles by eliminating the “micromanaging” provisions that dictate where a gun must be stored in a vehicle, which allows law-abiding citizens to avoid accidental violations. It retains the current procedures that are followed when a licensee is pulled over and approached by a law enforcement official.

The legislation would also permit license holders to carry in establishments that serve alcohol provided that the individual is not consuming alcohol. It does not change the current law prohibiting an individual from possessing a firearm while under the influence of drugs or alcohol. Establishments would still have the authority to prohibit concealed carry.

“In addition to simplifying existing concealed carry laws, House Bill 45 will bring Ohio’s carry regulations in line with most other states’ regulations,” said Bubp. “Of the 48 states that issue concealed carry licenses, 42 allow licensees to carry in restaurants as long as they are not drinking. I don’t think that responsible gun owners in Ohio should be penalized with stricter regulations than gun owners of any other state.”

“When it comes to fine-tuning Ohioans’ Second Amendment rights or allowing them to protect their families, I think it is very important that we make our concealed carry laws as thorough as possible,” said Johnson.

This legislation was originally introduced during the previous General Assembly as Senate Bill 239, which received the support of the National Rifle Association, the Buckeye Firearms Association and Ohioans for Concealed Carry.

House Bill 45 will now be assigned to a House committee, where it will undergo further consideration.

COLUMBUS – State Representative Ron Maag (R- Lebanon) recently introduced legislation that would address minors sending nude photographs and videos through cell phones and other mobile devices, acts that have come to be known as “sexting.”

House Bill 53 would make the creation, exchange and possession of nude materials between minors by a telecommunications device a misdemeanor of the first degree. Additionally, any minors who show themselves in a state of nudity through text message may be charged with the same penalty.

“This is a growing problem that could affect many of our teenagers’ lives,” Rep. Maag said. “The current law isn’t an adequate way of dealing with those under 18 years old who participate in the act, so the definition of sexting must be clarified in the Ohio Revised Code.”

This legislation was originally introduced in April 2009 during the previous General Assembly. Currently, teenagers who participate in sexting could face felonious charges and be defined as sexual offenders for life. The new legislation would apply only to teens under the age of 18, separate from similar adult offenses that carry felonious charges.

The issue was brought to light after the death of Jessica Logan, an 18-year-old girl from a Cincinnati-area high school. Logan committed suicide after a nude picture of her was sent via text message to her boyfriend and was later spread throughout the school. Her mother, Cynthia Logan, has taken Jessica’s story on a national campaign to alert teens of the dangers and implications of sexting.

COLUMBUS—In order to improve the efficiency and effectiveness of Ohio’s mental health services, State Representative Dave Burke (R-Marysville) intends to propose legislation that calls for a review of Ohio’s behavioral health system. The goal of this legislation will be to identify potential reforms and cost-containment opportunities within the system, which will not only improve state health services but also rein in costs.

“The current system is crumbling and fragmented,” said Burke, who serves as chairman of the Health and Human Services Subcommittee of the Finance and Appropriations Committee. “There is no transparency with regard to costs, and oftentimes there is no coordination of services. With numerous tragic events that have happened over the last few years that have involved behavioral health system issues, it is important that Ohio make a comprehensive review of the system.”

More than 340,000 Ohioans received community mental health treatment during fiscal year 2009. Starting in 2014, the Ohio Medicaid program expects that more than 550,000 new enrollees will be added to the system, about one-third of whom will require mental health treatment. However, the current system leaves significant gaps in coverage for individuals who need behavioral services, which in fiscal year 2009 left more than 22,000 mental health patients without Medicaid coverage.

According to Burke, a lack of coordination between departments often leads to inflated costs or flawed patient care, which not only strains the state budget but also puts vulnerable Ohioans at risk. Many mentally ill Ohioans end up institutionalized in prisons and nursing homes, when in reality, a number of these individuals require more intensive behavioral treatment.

“It is extremely important that we don’t let Ohioans who depend on state services fall through the cracks or be subjected to inadequate treatment,” said Burke. “We will soon have an opportunity to improve Ohio’s mental health system while at the same time reduce inefficiency. This is a standard of excellence that we owe to those who elected us to lead this state.”

COLUMBUS—State Representatives Todd Snitchler (R-Uniontown) and Peter Stautberg (R-Anderson Twp) today offered sponsor testimony before the House State Government and Elections Committee regarding legislation to reduce government waste and make state spending more effective. Auditor of State Dave Yost appeared in committee and testified today in support of the bill.

Snitchler and Stautberg are the primary sponsors of House Bill 2, which would require the Ohio Auditor of State to conduct a performance audit of state agencies on a biennial basis. The purpose of these audits is to regularly evaluate the efficiency and practicality of certain state-funded agencies, eliminate wasteful spending and implement best practices, which would save tax dollars and provide more cost-effective services to vulnerable Ohioans.

“The goal of House Bill 2 is to improve state operations by making our government more efficient, and save the taxpayers’ money,” said Snitchler. “As we face a looming budget deficit of $8 billion, it is important to make sure that we are not wasting tax dollars. This bill is a medium and long-term solution to fixing Ohio’s spending problems. This is a vital step toward ensuring that we are not suffocating families and businesses with unnecessarily high tax rates and a disorganized government.”

“By reviewing the operation of state agencies and their delivery of services, we will help ensure the Ohio taxpayers get the best return on their investment,” said Stautberg.

The legislation, which was originally introduced in March 2009 of the previous General Assembly, was crafted in concert with former Auditor Mary Taylor and current Auditor Dave Yost.

“House Bill 2 is an important cornerstone to getting the spending and actions of our various state agencies under control,” said Rep. Bob Mecklenborg (R-Cincinnati), who serves as chairman of the State Government and Elections Committee. “I am pleased that this bill will be working its way through the House State Government Committee, and I look forward to shepherding the bill through the process.”

Wednesday’s sponsor testimony constitutes the first hearing of House Bill 2 in committee.

COLUMBUS—State Rep. Terry Johnson (R-McDermott) was appointed by Ohio House Speaker William G. Batchelder (R-Medina) to serve as one of two Ohio House members on the Ohio School Facilities Commission (OSFC). The OSFC administers the state’s comprehensive Kindergarten through 12th Grade public school construction program. The agency helps school districts to fund, plan, design, and build or renovate schools.

“Representative Johnson will make a noted addition to the Ohio School Facilities Commission panel,” Speaker Batchelder said. “He has a firm grasp of the issues facing school construction in our state, and I am confident that he will utilize the appointment to improve the overall program.”

Rep. Johnson said that he looked forward to working with his fellow legislative members and the other members of the commission, which include Tim Keen, Director of the Office of Budget and Management; Robert Blair, Director of the Ohio Department of Administrative Services; and Deborah Delisle, Ohio’s Superintendent of Public Instruction.

“I am excited about this appointment since the 89th House District has three current OSFC projects in various stages of development,” Rep. Johnson said. “We cannot overemphasize the importance of these projects to our community, from the jobs they provide during construction and operation, through the final product where our kids will learn in a safe, state-of-the-art environment. I truly look forward to serving on this commission and serving the citizens of the state of Ohio.”

Rep. Johnson is serving his first term in the Ohio House of Representatives. The 89th House District includes all of Scioto County and parts of Adams and Lawrence counties.

COLUMBUS—State Representative Ross McGregor (R-Springfield) today was appointed by Speaker William G. Batchelder (R-Medina) to serve as chairman of the Joint Committee on Agency Rule Review (JCARR). The committee—which consists of five representatives and five senators—is led by a member of the Ohio House every odd-numbered year.

“It is an honor to be chosen to serve as Chairman of JCARR during the 129th General Assembly and to have an active role in working on some of the most pressing issues facing our state today,” Rep. McGregor said. “Governor Kasich has made it quite clear that he intends to work to revise the rule-making process in Ohio and reduce burdens on businesses in our state, and that process will undoubtedly go through JCARR.”

The purpose of JCARR is to review all proposed new, amended and rescinded rules by the state agencies creating them in order to implement the laws which are enacted by the Legislature. The committee is tasked with ensuring the rules do not exceed the scope of the agency’s authority, do not conflict with another rule by that agency or another agency and do not conflict with the intent of the Legislature. It must also ensure that the rule-making agency has prepared an accurate rule summary and fiscal analysis of the rule.

Rep. McGregor is currently serving his fourth term as state representative of the 72nd Ohio House District, having first been appointed to the House in 2005. He works as a manager of business projects for Pentaflex, Inc., a manufacturer specializing in stamping and deep drawing of medium to heavy gage metal components.

COLUMBUS—State Representative Nan Baker (R-Westlake) Tuesday introduced legislation that, when enacted, will help unemployed Ohioans find gainful employment and revitalize Ohio’s economy.

House Bill 17 authorizes a $2,400 income tax withholding credit for an employer who hires and employs a previously unemployed individual. Originally proposed by Rep. Todd Snitchler (R-Uniontown) during the 128th General Assembly, this bill is a component of the “Future of Ohio” Economic and Small Business Development Initiative.

“This legislation will help our state combat our current economic problems on two fronts,” said Rep. Baker. “In addition to easing some of the financial pressures that have hit local businesses, House Bill 17 will also give unemployed Ohioans the opportunity to get back to work. I believe that this initiative will have a multiplier effect on our immediate and long-term economy.”

Rep. Baker also reintroduced a bill to enact a nonrefundable tax credit for businesses that increase payroll and expand into vacant facilities. House Bill 18 will encourage both existing and prospective companies to house their businesses within a vacant facility rather than building a new structure on a piece of property. Rep. Baker first introduced this legislation in February 2010 during the previous legislative session.

“Through House Bill 18, communities that have been hit by job loss and industry deterioration will be revitalized with new jobs and economic growth,” said Rep. Baker. “I hope that these bills move quickly through the Legislature as we strive to bring jobs back to our communities. As I continue to say, ‘It’s All About Jobs!’”

House Bills 17 and 18 have been assigned to the House Ways and Means Committee, where they will undergo further consideration and debate.

COLUMBUS—Assistant House Majority Whip Cheryl Grossman (R-Grove City) and State Representative Jay Hottinger (R-Newark) today jointly introduced legislation to eliminate the Ohio estate tax, also known as the “death tax.” House Bill 3 will allow small business owners, farmers and homeowners to rightfully pass on their assets to their heirs without fear of being taxed twice on their life’s savings, which will make Ohio more competitive for entrepreneurial growth and investment.

“House Bill 3 is just one of the many ways we will be working to aggressively improve the way the state of Ohio does business,” said Rep. Grossman. “When you hear of the 400,000 jobs that have left the state of Ohio, 90 percent of those have gone to other states—not overseas. We need to be more business-friendly, and I think that this legislation is a huge step in the right direction for the people of Ohio and for the generations to follow.”

“We are beginning the process of ending a fundamentally unfair and egregious tax, a tax that is often the case of double taxation,” said Rep. Hottinger. “This bill is about restoring fairness to Ohio’s hardworking citizens, our families, small business owners, as well as our state’s farmers. Ending this tax will have a tremendous effect on job creation in the state of Ohio.”

Ohio currently has the lowest estate tax exemption in the United States. Only $338,333 of the taxable estate is exempt from the estate tax, compared to an average exemption amount of approximately $1.7 million for other states that have an estate tax. For this reason, supporters of the elimination of the estate tax believe that it takes direct aim at Ohio’s middle class, undermines job creation, and discourages saving and investing in the state.

“The estate tax represents essentially a 7 percent incentive for capital to not come to Ohio or to leave Ohio,” said Jack Boyle, executive director of the Ohio Prosperity Initiative. “[House Bill 3] is the beginning of Ohio making its step back to competitiveness. We’ve had a 30-year slide of our state’s economic fortunes, and this is the day that we start changing that.”

“The Ohio Farm Bureau has long stood as an opponent of the estate tax,” said Beth Vanderkooi, director of state policy for the Ohio Farm Bureau Federation. “We’re very excited that Representatives Grossman and Hottinger are going to try to [enact this bill] in Ohio this year, and we’re strongly behind that.”

House Bill 3 was assigned to the House Ways and Means Committee, where it will undergo further consideration.

COLUMBUS – Speaker William G. Batchelder (R-Medina) today announced the appointment of three new members of the Ohio House of Representatives, each of whom were sworn in during Tuesday’s House session. The House Republican Caucus members have unanimously approved of the three appointments.

“While it is ultimately the responsibility of the House of Representatives under the Ohio Constitution to make an appointment in these instances, we rely heavily on the input of the constituents and local leaders of the individual House Districts,” Speaker Batchelder said. “Thanks in no small part to the efforts put forth by the constituency in each of these districts, we are privileged to welcome three excellent new members to our caucus.”

The appointments are as follows:

HOUSE DISTRICT 37: JAMES BUTLER, JR.
Rep. Peggy Lehner (R-Kettering) was recently appointed to fill the remaining two years of former state senator Jon Husted’s term due to his election as Ohio’s Secretary of State. The Montgomery County Republican Party unanimously recommended local attorney Jim Butler (R-Oakwood) to fill the remainder of Rep. Lehner’s term.

“Jim’s record of service to Montgomery County and our nation is outstanding,” Speaker Batchelder said. “His service and intellect will be a tremendous addition to our caucus.”

Rep. Butler is a graduate of the United States Naval Academy with a bachelor’s degree in history and a graduate of the University of Maryland with a master’s degree in history. He graduated from the United States Naval Academy in the top 10 percent of his class and then entered flight training at the Naval Academy where he graduated first in his class. He is a 2005 graduate of the University of Cincinnati College of Law and is currently an associate at Thompson Hine, LLP in Dayton.

The 37th House District, located in Montgomery County, includes the cities of Kettering, Miamisburg, Oakwood, West Carrollton, and several townships.

HOUSE DISTRICT 77: JIM BUCHY
Recently, Governor John Kasich announced that Representative Jim Zehringer (R-Fort Recovery) would lead the Ohio Department of Agriculture, creating a vacancy in the 77th House District. Former State Representative Jim Buchy (R-Greenville) has been selected to fill the remainder of Rep. Zehringer’s term.

“Jim is a wonderful man with an exemplary record of service in the legislature and in the private sector,” Speaker Batchelder said. “Having the support of all three county Republican parties, Rep. Zehringer, Senator Faber, Congressman Jordan and the constituents of the district made this an easy choice for our caucus and I look forward to working with Jim again.”

Rep. Buchy served in the Ohio House of Representatives from 1983 to 2000 and served as the assistant director for the Ohio Department of Agriculture from 2001 to 2004. He is the President of Buchy Food Service in Greenville, Ohio and serves on the NFIB-Ohio statewide leadership council.

The 77th House District includes all of Mercer and Preble Counties and the western portion of Darke County.

HOUSE DISTRICT 98: RICHARD HOLLINGTON
Rep. Dick Hollington (R-Hunting Valley) has been re-appointed to the 98th House District seat after a unanimous recommendation by a legislative screening panel.

“After interviewing a dozen well-qualified, thoughtful applicants for this vacancy, we believe Representative Hollington’s previous service in the legislature coupled with his private sector work experience will be best suited to work with our caucus during these challenging economic times,” said Rep. Lou Blessing, who chaired the legislative screening panel in December.

Rep. Hollington served in the Ohio House of Representatives from 1967 to 1970 and recently served the 98th House District during the 2010 legislative session after being appointed following the resignation of former Representative Matt Dolan. He is a senior partner in the Cleveland Law Firm of Baker Hostetler LLP and finance director for the Village of Hunting Valley. He is a graduate of Harvard Law School.

The 98th House District encompasses all of Geauga County and portions of Cuyahoga County.

COLUMBUS – State Representative Louis Blessing, Jr. (R-Cincinnati), chairman of the screening panel for applicants applying for the vacant 98th House District seat, announced that the five-person panel has unanimously recommended former State Representative Richard Hollington to be re-appointed to the seat for the 129th General Assembly.

“We had the privilege of interviewing a dozen well-qualified, thoughtful applicants for this appointment,” Rep. Blessing said. “In the end, we believe Representative Hollington’s previous service in the legislature coupled with his private sector work experience will be best suited to work with our caucus during these challenging economic times.”

Representative Hollington served in the Ohio House of Representatives from 1967 to 1970 and recently served the 98th House District during the 2010 legislative session after being appointed following the resignation of former Representative Matt Dolan. Hollington is a senior partner in the Cleveland Law Firm of Baker Hostetler LLP and finance director for the Village of Hunting Valley. He is a graduate of Harvard Law School.

The House Republican Caucus will vote on the appointment during the next legislative session, scheduled for Tuesday, January 11. The 98th House District encompasses all of Geauga County and portions of Cuyahoga County.