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www.ohiorestaurant.org 3 Summer 2012 Issue

Under the Dome: A Legislative Update for ORA

The 129th session of the Ohio General Assembly fnally recessed on May 24. They returned Jun. 12-13 to do some “clean-up” legislation, but it is likely they will not be back in session until after the Nov. 6 election. So, while state agencies can always propose new regulations, we are at least safe from the enactment of any new laws for the next four months.

The Ohio Restaurant Association (ORA) was involved in two major issues during the very hectic fnal two weeks of the session. First, HB 489, which passed the House 92-5, proposed numerous changes to the newly created agency charged with job development: JobsOhio. Our interest focused on a key portion of the legislation that creates a new mechanism to generate dollars for tourism promotion. The Senate passed its version of the JobsOhio 2 bill (SB 314) by a vote of 32-1.

Unfortunately, this is one of those “clean-up” issues lawmakers had to address in June. Regrettably, House and Senate leaders couldn’t agree on which bill would be the one to go to Governor John Kasich for his signature. They ultimately worked out their differences and the governor signed SB 314 on Jun. 26.

Enacting a law implementing a new, sustainable funding mechanism to promote Ohio tourism was a three-year process. Beginning in 2010, ORA President & CEO Geoff Hetrick was joined by the heads of the Hotel & Lodging Association, the Travel Association and the Convention & Visitors Bureau Association in a series of meetings with Strickland and later Kasich administration offcials. They researched best practices from the states with the most successful tourism promotion programs and, ultimately, settled on a version of the Missouri model. Rather than relying solely on the Ohio General Assembly for funding, the language in SB 314 will provide a steady and sustainable source of funds. The Division of Tourism will receive the annual increase in sales tax revenue

from businesses involved in tourism with a maximum of $10 million per year. By comparison, tourism promotion last fscal year was $5 million.

The ORA expects that a more robust level of spending to encourage out-of-state visitors to Ohio will have a direct impact on virtually every segment of the restaurant industry.

The other major bill that drew our attention was SB 315. This is the legislation that establishes new rules for “fracking” and other changes in Ohio’s energy policy. We became involved when some totally new and unexpected language appeared in a lengthy “omnibus” amendment in the Senate Energy and Public Utilities Committee.

While complicated, the amendment basically would have diverted up to $3 million from the state’s general revenue account (used primarily for schools) and given it to an association that represents Ohio’s biggest manufacturers in utility rate cases before the Public Utilities Commission of Ohio (PUCO). When we got involved, the proponents quickly offered to change the language to allow all businesses to participate in this transfer of money.

We had concerns with this concept on two levels. Philosophically, we had a problem with using school money for anything other than its intended purpose. Secondly, this concept wouldn’t help the small business community, in general, or the restaurant industry, in particular.

In order to effectively advocate for our members before the PUCO, the frst step is to “intervene.” The ORA did just that in the pending AEP case. But, to be truly effective, we would need to hire lawyers and expert consultants to argue our points of interest. We simply do not have that kind of money nor do many other trade associations whose members generally come from the small business community. It may be necessary for the ORA to ask the Ohio General Assembly to work with

us to create and fund an “offce of small business advocacy” as is done in about a dozen other states. I will be working on this issue over the summer – stay tuned.

When legislators return soon after the November election, it will be called “the veto session.” This time period is not really about vetoes. It’s about passing laws with minimal public testimony and debate; it also about taking advantage of lawmakers who, through retirement or defeat at the polls, will not return to the General Assembly the following January and who presumably are more willing to cast “controversial” votes.

Many of us who are close to the legislative process speculate that this year’s veto session could be one of the most active in memory.

On Jun. 10, the ORA Board of Directors made endorsements in the races for Ohio Supreme Court, U.S. Senate, U.S. House of Representatives, State Senate and State Representative. To see the list of candidates endorsed by ORA, visit: http://bit.ly/LUkykx.

Finally, there will be many new legislators when the 130th Ohio General Assembly convenes next January. I believe it is important that I meet with freshmen in their home districts and before they are frst sworn in. I have already met many of them and will be meeting another 15 or so this summer and fall.

If you have any questions about legislation, regulations, elections or the Ohio Restaurant PAC’s contribution policy, please do not hesitate to call me at (614) 246-0130 or e-mail at rmason@ohiorestaurant.org.

By Richard Mason,

Director of Government Affairs, Ohio Restaurant Association

The General Assembly Is in Recess We are safe until autumn