Here's a breakdown of recent small business victories.
The 133rd Ohio General Assembly is technically one quarter over. With several budgets and other bills, it was certainly a busy six months. Small business owners in Ohio had the following victories:
STATE AGENCY REGULATORY REDUCTIONS – Senate Bill 1 and House Bill 115 – Sponsored by Senators Rob McColley (R – Napoleon) and Kristina Roegner (R – Hudson) and Representatives Craig Riedel (R – Defiance) and Bill Roemer (R-Richfield).
The bills require state agencies to hit percentage benchmarks for regulatory restricting rule reductions in Ohio Administrative Code seeking a 30% target by 2023. The bill further indicates any agency that does not meet the 30% will have to jettison two restrictive regulatory rules for every one proposed. The bill requires cataloging of all rules by state agencies and sets that as a baseline going forward, restricting the state from having more than 70% of that baseline number of rules in effect.
The bill also adds the requirement for a state agency to evaluate whether a rule requires a regulatory restriction that should be amended or rescinded prior to submission for 5-year rule review. The bill creates a database to assist JCARR in aggregating rule data. NFIB supports the approach this bill takes to require state agencies to find obsolete or unnecessary rules or those that cause an undue burden and eliminate them from the OAC. Portions of SB 1 were included in the operating budget, including removing two current regulations for every one new proposed regulation.
WORKERS’ COMP BUDGET – House Bill 80 – Sponsored by Representative Scott Oelslager (R – Canton)
The bill is the biennial budget for the BWC, separate from the state operating budget. The $645 million budget is an 11% increase from the previous biennium. The bill accounts for a 27th pay period and increases in pay due to the collective bargaining agreement. There is additional monies appropriated for Substance Use Recovery and Workplace Safety Program ($15 million) and statewide safety awareness and education campaign ($3 million), a new Safety and Health Center of Excellence to allow the bureau to test and deploy advances to prevent workplace accidents, injuries and illnesses ($2 million) and for safety grants, including those for schools, firefighters and law enforcement ($40 million).
Several detrimental amendments including PTSD for first responders were added in the Ohio House of Representatives to a simple, appropriations bill. The Ohio senate removed all of the public policy from the bill. The Conference Committee reported an appropriations only bill, the policy included by the Ohio House of Representatives would possibly be introduced in other pieces of legislation in the future.
Passed the Ohio Senate on a vote of 22-9 and Ohio House on a vote of 78-13, on July 17, 2019. Signed by Governor DeWine.
“NFIB supported removing the major policy proposals and passing a clean funding bill for the BWC operating budget. Small business owners rely on the BWC’s ability to help injured workers receive timely care while considering the costs for Ohio employers,” said Roger Geiger, Vice President and Executive Director for NFIB in Ohio.
“We thank the Ohio Senate for their work on the BWC budget removing numerous policy initiatives from this appropriations bill. By passing this budget bill today, the legislature demonstrated their commitment to injured workers and Ohio’s business community,” Geiger continued.
STATE OPERATING BUDGET – House Bill 166– Sponsored by Representative Scott Oelslager (R – Canton)
The as-introduced bill contained no major tax policy, breaking from most recent previous budgets. As-introduced did contain a provision that mandates coverage for telemedicine services that are covered through in-person visits on the fully-insured health insurance markets. The bill that passed the Ohio House contained a substantial reduction in the business investor deduction (BID) that allows pass-through entities to deduct up to the first $250,000 of business income and pay a flat 3 percent rate on business income above that. The House proposal dropped the amount to $100,000 and eliminated the flat-rate. This is a $528 million annual tax shift on small businesses to fund an across the board 6.6 percent personal income tax cut. The House did remove the telemedicine provision from the budget. The Conference Committee report reinstated the BID completely except for lawyers and lobbyists. The telemedicine mandate remains, but charging of facility fees is prohibited. Unemployment compensation language meaning the taxable wage base will revert to $9,000 from $9,500 at the end of 2019.
“NFIB appreciates the commitment shown to Ohio’s small business community by preserving the business investor deduction (BID) in the final version of Ohio’s operating budget. Our members were galvanized in support and came to Columbus, contacted their legislators, met with them personally to share how they are using these dollars to reinvest in their businesses, and thus Ohio. The legislature and administration heard loud and clear from the job creators in this state,” said Roger Geiger, Vice President and Executive Director for NFIB in Ohio.
“NFIB members’ optimism is at near-record levels, unemployment is low, and job openings are posted all across Ohio. By allowing the BID to continue, it will allow Ohio’s small businesses to invest in their companies, hire additional workers, and support the communities that are so important to them. The Ohio Senate’s belief in small business and Governor DeWine’s desire to not raise taxes on entrepreneurs is truly appreciated,” Geiger concluded.
HEMP DECRIMINALIZATION – Senate Bill 57 – Sponsored by Senators Brian Hill (R – Zanesville) and Stephen Huffman (R – Tipp City)
The bill decriminalizes hemp and hemp products following 40 other states that did so following the US Farm Bill of 2018 removing hemp from the Controlled Substances Act. This will allow farmers to grow, manufacturers to produce products and retailers to sell these products. It provides a benefit to all three industries.
Testifying before the committee, “When SB 57 becomes law, Ohio farmers will be able to legally plant another cash crop that can enhance their operations and allow them to sell what so many of their colleagues in other states already do. The bill establishes a regulatory framework to monitor and regulate hemp cultivation,” said Chris Ferruso, Legislative Director for NFIB in Ohio.
“We urge this committee for an expeditious, favorable recommendation of Senate Bill 57. Ohio is doing a disservice to multiple industries by not decriminalizing hemp and hemp products,” he concluded.
Passed the Ohio House on a vote of 89-3 on July 17, 2019. Senate concurrence on a vote of 31-0 on July 17, 2019. Signed by Governor DeWine.
Additionally, in the area of the Bureau of Workers’ Compensation:
The Ohio Bureau of Workers’ Compensation (BWC) Board of Directors in February approved a 20 percent reduction in the average premium rate it collects from private employers. The reduction is BWC’s largest in nearly 60 years. Overall, the average rate levels for the 242,000 Ohio employers in the BWC system are at their lowest in at least 40 years.
The Board of Directors for the Ohio Bureau of Workers’ Compensation (BWC) also approved a proposal in June from Ohio Governor Mike DeWine to send $1.5 billion of the agency’s revenues to Ohio employers covered by the BWC system. The $1.5 billion equals 88 percent of the premiums employers paid for the policy year that ended June 30, 2018.
“The $1.5 billion in rebates announced by the Ohio Bureau of Workers’ Compensation (BWC) demonstrates the sound fiscal responsibility being carried forward under the DeWine Administration. The business community appreciates the BWC’s investment policies and management of employer dollars,” said Roger Geiger, Vice President and Executive Director for NFIB in Ohio.
“Small business owners, who make up the majority of state fund employers, appreciate the earlier announced base rate deduction and now the proposed rebate. On behalf of our 22,000 members, NFIB applauds the BWC’s efforts to continue to return more of Ohio employers’ hard-earned dollars back to them. These latest proposed rebates will allow entrepreneurs to further reinvest back into their businesses to expand, hire, and enhance their workplace safety programs,” Geiger concluded.
