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Friday, Nov. 3, 2017

Bill Offers Safe Harbor to Companies that Take Steps to Protect Cybersecurity

Businesses that take certain steps to improve cybersecurity would get safe harbor against legal claims should they experience a hack that compromises consumer data under legislation that was introduced last month and was touted by Attorney General Mike DeWine and sponsor Sen. Bob Hackett (R-London) on Friday.

DeWine said SB220 (Hackett) is the first legislation addressing cybersecurity issues to come out of his office's CyberOhio Initiative. He said he introduced the initiative as a way to keep data safer, to educate businesses on how to protect themselves and consumer data and to hold cyber criminals accountable. That initiative created an advisory board of business and cybersecurity experts to help suggest steps the state should take to protect itself. Additionally, staff from the attorney general's office has conducted multiple training around the state for businesses, including small businesses said.

The bill establishes industry-recommended standards that businesses would have to meet in order to receive the safe harbor protections. DeWine and Hackett said the bill identifies eight different cybersecurity frameworks that businesses can base their programs. They noted the voluntary nature of the bill.

"We want to incentivize businesses to achieve a higher level of cybersecurity through voluntary action," Hackett said at the news conference Friday.

SB220 requires a businesses' cybersecurity program to be designed to protect the security and confidentiality of personal information; protect against any anticipated threats or hazards to the security or integrity of personal information; and protect against unauthorized access to and acquisition of personal information that is likely to result in a material risk of identity theft or other fraud to the individual to whom the information relates.

Whether the scale and scope of a program meets the bills standard will be based on the size and complexity of the business; the nature and scope of the activities of the business; the sensitivity of the personal information that needs to be protected; the cost and availability of tools to improve information security and reduce vulnerabilities; and the resources available to the covered entity.

They said the bill creates an affirmative defense that companies will still have to prove in court.

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The frameworks will continually be updated and, under the bill, companies will still be protected for a period of time if a framework is updated in order to update their cybersecurity measures to meet the new standards.

Spense Witten of Lunarline, a member of the attorney general's advisory board, said the eight frameworks that have been selected are among the most advanced available and are continually updated.

The bill will give businesses one year after an update to a framework to make the appropriate changes to still be covered under the safe harbor provision.

DeWine said the bill gives businesses a real reason to do things that will protect the public.

Backers also said the bill isn't about creating a minimum standard. Kirk Herath, the chair of the advisory board who is the vice president and chief privacy officer at Nationwide Insurance said they tried to avoid a minimum standard because those

don't evolve. He said they wanted to create a framework that is evolutionary and change with changes in technology. Hackett added that they also wanted to have the flexibility so it would not require new legislation every time.

"You know how difficult it is to change in the Legislature," he said.

They also said they were careful in crafting the bill so it will help small businesses. Hackett said that was one of his big concerns but after one advisory board meeting that focused on helping small businesses protect themselves, he came out more confident that it could be done and not be expensive for the entity.

Witten said that it is a common misconception that it will cost a lot of money to have good cybersecurity.

"Small businesses can achieve this," he said, noting there are resources to help small businesses meet the standards.

Ohio Supreme Court Rules Substitute Custodian Not Regular School Employee

A substitute custodian whose schedule is irregular with respect to days of service, hours worked, and school-building assignment is not considered a "regular nonteaching school employee" under an Ohio law that would qualify him for better wages and benefits, the Ohio Supreme Court ruled this week in State ex rel. Singer v. Fairland Local School Dist. Bd. of Edn.The Supreme Court ruled 6-1 to deny Fairland Local School District substitute custodian Kurt Singer's demand that the district where he has worked since 2006 recognize him as a regular nonteaching school employee and pay him additional back wages and benefits. Singer argued that under R.C. 3319.081 he meets the definition of that type of employee because he performed the same tasks and worked similar hours as the full-time custodians.

The majority opinion, written by Justice Judith L. French, stated that Ohio law does not define "regular nonteaching school employee," so the Court turned to the plain, ordinary meaning of the word "regular." Because Singer's schedule varied widely, year to year and pay period to pay


period, the Court found he did not meet the definition of a regular employee.

"Considering the entire arc of his employment, we cannot conclude that Singer's employment was in any meaningful way 'regular," the opinion stated.

In a dissenting opinion, Justice William M. O'Neill wrote the district shortchanged Singer by labeling him a "substitute" when he worked similar hours to the "regular" custodians. He asserted that the precedent set by the majority opinion would allow school districts to save money by changing employee work schedules and avoiding offering them contracts.

Custodian Works Without Contract

Fairland hired Singer as a substitute custodian in 2006, and he continues in that position. Fairland's attendance report lists him as "substituting" every day he worked for the district from September 2006 until June 2016. Though he has never signed a contract with the district, Singer contends he is a "regular nonteaching school employee" under R.C. 3319.081.

R.C. 3319.081 governs employment contracts for certain nonteaching employees and requires newly hired nonteaching employees, including those paid by an hourly rate or by day, to enter into a written contract for a period of no more than one year. If the district rehires the employee after the first contract, the second contract must be for two years. And if the district rehires the employee after the second contract, the district must offer the employee continuing status.

The opinion notes that "continuing" status carries benefits that include generally allowing the person's employment to be terminated only for cause, and does not permit a reduction in salary unless there is a uniform plan to reduce all nonteaching staff salaries. It also entitles employees to benefits such as vacation leave, paid holidays, sick leave, and personal leave.

Singer Seeks Contract

Singer alleged he had asked for a contract from Fairland for years and was denied. He sought a writ of mandamus from the Supreme Court to compel Fairland to recognize him as a regular nonteaching employee and provide a continuing contract. He asked for back wages and benefits dating to the 2009-2010 school year, arguing he would have received the compensation if he were correctly recognized after three years of district employment.

The Court noted that R.C. 3319.09(B) defines "year" for a school employee to mean at least 120 days of actual service within a school year. Singer exceeded that mark for the first seven years of his service and did meet the law's definition of "full-time." However, whether Singer met the definition of full-time or not does not entitle him to continuing status "unless he is also a regular nonteaching employee," the opinion stated.

R.C. Chapter 3310 does not define "regular nonteaching school employee," and when terms in the statute are not defined, the Court uses their plain, ordinary meaning. The Court turned to Black's Law Dictionary where "regular" is defined as "[s]teady or uniform in course, practice, or occurrence; not subject to unexplained or irrational variation," and Webster's Third New International Dictionary, which defines "regular" as "usual, customary, normal or general."

"These definitions do not describe Singer's employment, which has been irregular with respect to days of service, hours, and school-building assignments," the opinion stated.


The Court documented that Singer's days of service varied widely and used his 2006-2007 school year schedule as an example. That year Singer worked as many as 10 days in a two-week pay period, but for the majority of pay periods he

worked eight days or fewer. It noted in many pay periods he worked four days or fewer, and the following year his pay periods ranged from four days to 10 days.

Singer also had no regular location assignment, the opinion stated. He would routinely work within the district's four school buildings, sometimes in more than one building in the same day. The district's requests for Singer to work also varied, with individuals from different buildings calling him to work, and in some cases he was instructed to report to a work location on a daily basis until further notice. The opinion also noted that Singer was able, and at times, did turn down opportunities to substitute in the district.

"Fairland's records indicate that Singer was called to these multiple locations for irregular intervals and to substitute for many different employees," the Court wrote.

The Court concluded that Singer did not establish by clear and convincing evidence that he was entitled to a continuing contract, and the Court denied the writ.

Chief Justice Maureen O'Connor and Justices Terrence O'Donnell, Sharon L. Kennedy, Patrick F. Fischer, and R. Patrick DeWine joined the opinion.

Singer Mislabeled, Dissent Maintains

In his dissent, O'Neill wrote that he would award back pay and benefits to Singer because he performed the same tasks and worked similar hours to "regular" custodians for 10 school years. He maintained the substance of Singer's work was as a regular custodian, and it was clear that he had worked more days per year for the first seven years he was employed than many of the district's full-time custodians.

O'Neill stated there is no requirement in the law that the hours must be spread evenly throughout the days worked or that all the work be performed at the same facility. He stated the key fact is that all of the work was performed for the same employer.

"Moreover, the purpose of the legislation at issue is to ensure that nonteaching workers employed by a school district are treated fairly and have some degree of job security," he wrote.

If districts change nonteaching employees' work sites and hours periodically, they can deny the employees "regular" status, which would allow the schools to pay lower wages and avoid paying benefits, he stated.

"Surely that was not the intention of the state Legislature," he concluded.

Medical Marijuana Program Announces Cultivator Licenses, Opens Dispensary Applications

The Ohio Medical Marijuana Control Program Friday announced the recipients of level II cultivator provisional licenses, the first set of medical marijuana growers approved by the state.


Recipients of the licenses include: - Fire Rock Ltd. for a location in Columbus, Canton or Akron.- FN Group Holdings for a location in Ravenna.- Mother Grows Best LLC for a location in Canton.- OhiGrow LLC for a location in Toledo.- Ancient Roots LLC for a location in Wilmington.- Ohio Clean Leaf LLC for a location in Dayton or Carrol.- Ascension BioMedical LLC for a location in Oberlin.- Agri-Med Ohio LLC for a location in Langsville.- Paragon Development Group LLC for a location in Huber Heights.- Hemma LLC for a location in Monroe.- Galenas LLC for a location in Akron.

Fire Rock Ltd. and Ohio Clean Leaf LLC have 10 days to decide on one of their options for a cultivation site.

Level II cultivators are allowed to operate in an area of just 3,000 square feet, while level I cultivators can operate in up to 25,000 square feet. The state is licensing up to 12 of each type of cultivator.

"This is very exciting news. There were clearly many strong applicants, and these selections for the Level II licenses reflect the best of the best. We are looking forward to working with them, our state leadership and the hundreds of thousands of Ohioans who will be able to have safe access to the medical treatments they need," said Brian Wright, executive director of the Ohio Cannabis Association, in a statement.

The program also announced Friday that applications for potential medical marijuana retail dispensaries are now available.

The dispensary application consists of 22 equally-weighted questions relating to the applicant's business plan, operation plan and patient care plan. Applicants must also complete a trade secret form, a zoning form, a tax authorization form and a release and attestation form.

There is a $5,000 application fee and a $70,000 annual operating fee. Applications will be accepted online until Friday, Nov. 17. Up to 60 dispensary licenses will be award by the State Board of Pharmacy.

The application and an FAQ about the dispensary application process are available at https://medicalmarijuana.ohio.gov/dispensaries.

A detailed list of the approved cultivators and their applications can be found at https://medicalmarijuana.ohio.gov/cultivation.

DeWine Sues Rover Pipeline for Wetlands Contamination

Attorney General Mike DeWine's office Friday announced that it has filed a lawsuit against Rover Pipeline LLC for numerous drilling fluid spills that led to the contamination of state waters.

The lawsuit, filed on behalf of the Ohio Environmental Protection Agency (Ohio EPA), alleges


https://medicalmarijuana.ohio.gov/cultivation

https://medicalmarijuana.ohio.gov/dispensaries

that Rover has caused multiple spills across the state, including a notable spill in April, in which approximately 2 million gallons of bentonite were discharged into wetlands in Stark County. (See The Hannah Report, 4/21/17.)

"...Rover illegally discharged millions of gallons of drilling fluids to Ohio's waters, causing pollution and degrading water quality on numerous occasions and in various counties across the state. Additionally, Rover's activities harmed pristine wetlands in Stark County that require the highest level of protection," the lawsuit states.

Ohio EPA has filed 13 notices of violation against Rover during the construction of the company's 713-mile long interstate pipeline. Rover owes the Ohio EPA $2.3 million in fines.

In July, Rover was also cited by Federal Energy Regulatory Commission's (FERC) Office of Enforcement for destroying the historic Stonemason House in Carrol County. (See The Hannah Report, 7/20/17.)

The state's lawsuit asks a court to order Rover, among other actions, to apply for state permits, comply with environmental plans approved and ordered by the Ohio EPA and pay civil penalties of $10,000 per day per violation.

"I'm thankful that Attorney General Mike DeWine has announced his office's commitment to fight on behalf of Ohioans to ensure Rover Pipeline, LLC is held responsible for their spills and other failures during the construction of the Rover Pipeline," said Trent Dougherty, general counsel for the Ohio Environmental Council, in a statement.

"Ohio needs to send a message to those outside the state that we value our environment, and will ensure that all companies operating within Ohio are bound to follow our laws and pay the appropriate penalties if those laws are broken."

In a statement, Rep. Thomas West (D-Canton) said that the lawsuit is justified but said it should have come sooner. He referenced an Ohio Ethics Commission complaint filed by former U.S. Rep. Betty Sutton, a Democratic challenger in the Ohio governor's race, alleging that DeWine's previous investment in Rover parent company Energy Transfer Partners posed a conflict of interest.

"It seems that with the outside threat of an Ohio [Ethics] Commission investigation looming, Attorney General DeWine finally decided to take action to protect taxpayers from an out-of-state corporation's reckless disregard for our safety," said West. "This is welcomed news, but the timing of the lawsuit makes people wonder if the state could have done more, sooner. This was referred to Attorney General DeWine at the beginning of July. Meanwhile, local taxpayers have been forced to bear the brunt of toxic spills in our community and close to our drinking water supply."

A copy of the lawsuit can be found on the Hannah News homepage at http://www.hannah.com/>Important New Documents>Library.

O'Neill Recuses from Future Cases

Less than a week after officially joining the crowded field of Democrats running for governor, Justice Bill O'Neill informed his colleagues on the Ohio Supreme Court he won't sit on future


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cases that come before him.

The move follows calls for him to resign his post given his candidacy announcement, and a cautionary statement from Chief Justice Maureen O'Connor about his professional and ethical obligations.

"I encourage Justice O'Neill to consider his future course of conduct in light of his oath of judicial office and the ethical obligations imposed upon all judges of this state, which are designed to protect the interests of litigants, the public's trust and confidence in the fair administration of justice, and the institution of the judiciary as a separate branch of government," O'Connor said in a statement recently. (See The Hannah Report, 10/30/17.)

O'Neill has said he plans to resign his seat once he's certified as a candidate for the primary in February, citing Rule 4.5 of the Ohio Code of Judicial Conduct, which states that upon becoming a candidate in a primary or general election for a non-judicial office, "a judge shall resign from judicial office."

Auditor Dave Yost, a Republican candidate for attorney general, said earlier this week that O'Neill should resign now under Rule 4.5, saying the justice had laid out campaign promises that are improper for a judge.

Because of the recusal, O'Connor will need to appoint judges from Ohio's appellate districts to sit in O'Neill's place on upcoming cases.

O'Neill is the fifth announced Democratic candidate for governor, along with former Rep. Connie Pillich, Sen. Joe Schiavoni (D-Boardman), former U.S. Rep. Betty Sutton and Dayton Mayor Nan Whaley.

Week in Review

ADDICTION/SUBSTANCE ABUSE

Attorney General Mike DeWine set an ultimatum for drug companies Monday: come to the table with "serious" settlement offers to help curb the opioid addiction epidemic, or else he will "escalate until we get their attention." Additionally, DeWine outlined how the state should use that settlement money. At a press conference Monday, he revealed his proposed 12-step plan for addressing the opioid epidemic through a variety of legislative and executive actions, called the "Recovery Ohio" plan.

Ohio joined 44 states and the District of Columbia Tuesday in asking a federal judge for permission to increase the number of drug-manufacturer defendants from six to 18 in an ongoing lawsuit accusing several generic drug makers of conspiring to reduce competition and inflate prices for certain pharmaceuticals. The attorneys general also seek to increase the number of drugs at issue from two to 15.

Pharmacists, doctors and patients are the targets of a new pain medication safety initiative developed by the Governor's Cabinet Opiate Action Team (GCOAT). The "Take Charge Ohio" public awareness campaign will provide prescribers with brochures and posters about drug safety, Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Medical Director Mark Hurst said during a press conference at the ADAMH Board of Franklin County


Thursday. The initiative, paid for with a $925,000 grant from the U.S. Centers for Disease Control and Prevention (CDC), will also run ads on TV, radio, print and digital platforms. In addition to this state initiative, the President's Commission on Combating Drug Addiction and the Opioid Crisis, chaired by New Jersey Gov. Chris Christie, recently released its recommendations. The commission offered 56 recommendations in its report.

ATTORNEY GENERAL

Ohio is joining 44 other states and the District of Columbia in a $220 million settlement with Deutsche Bank for fraudulent and anticompetitive conduct involving the manipulation of the London interbank offered rate, or Libor, a benchmark interest rate that has a widespread impact on global markets and consumers, Ohio Attorney General Mike DeWine announced. Of the settlement, about $213 million will be used to reimburse government and nonprofit organizations that had Libor-linked swaps and other investment contracts with Deutsche and that were harmed by the activity.

BALLOT ISSUES

The Ohio Elections Commission on Thursday denied motions to dismiss an elections complaint which charges that opponents of Issue 2, the Drug Price Relief Act, did not form their political action committee (PAC) in a timely fashion.

ECONOMIC DEVELOPMENT

Gov. John Kasich and JobsOhio executives provided an update Friday on the state's economic development numbers in 2017: 20,000-plus "direct" jobs created by JobsOhio projects, 100,000 retained jobs and $6 billion in private investment. Kasich said his administration's performance over the last seven years tells an even bigger story, during which Ohio job growth jumped from 48th to 24th in the nation. The governor gathered with JobsOhio CEO John Minor and board Chairman James Boland for a press conference in Columbus following a meeting with economic development leaders.

Cuyahoga County dominates the latest round of state Job Creation Tax Credits, with four companies landing more than $23 million in economic development awards. Gov. John Kasich announced publicly funded support for a total of 10 private firms expected to create 2,828 new jobs and retain 10,291 positions at project sites recommended by JobsOhio and approved by the Ohio Tax Credit Authority. Projects are slated for more than $131 million in new payroll and over $122 million in new investments.

EDUCATION

The U.S. Department of Education (USDOE) announced it is withdrawing nearly 600 outdated guidance documents as part of the Trump administration's efforts "to reduce the regulatory burden on Americans." All of the "subregulatory" guidance documents have either been superseded by current law or are no longer in effect, according to USDOE, which announced the withdrawals Friday.

Electronic Classroom of Tomorrow (ECOT) took another of its trial court loses to appeal this week, while Democrats in the House and Senate urged Ohio Supreme Court justices to rule against the online charter school.


The Broadcast Educational Media Commission voted Thursday to approve project funding requests for the upcoming capital budget, including spending on transmission equipment that will help educational TV stations adapt to the new, narrower broadcast spectrum available after a federal auction.

ELECTIONS

People shouldn't only rely on the eye test when judging whether or not an electoral district is fairly drawn, according to new research from Professor Dustin Mixon, a mathematician at Ohio State University (OSU). He is one of two mathematicians who recently wrote a theorem to test whether the shape of a district is a good indicator of whether it's been gerrymandered to favor votes for a particular political party.

ELECTIONS 2017

Secretary of State Jon Husted said Tuesday that an estimated 338,021 absentee ballots have been requested statewide, including 1,064 requests from military and overseas voters whose absentee ballots started going out on Saturday, Sept. 23. Ballots for other voters started going out on Wednesday, Oct. 11.

ELECTIONS 2018

Four Democratic candidates for governor found little disagreement during two separate debates on Sunday as they discussed tax cuts, the opioid crisis and sexual harassment in the Statehouse. The newest candidate for governor -- Justice William O'Neill -- was not present, making his announcement in a speech in Northeast Ohio. Dayton Mayor Nan Whaley, Sen. Joe Schiavoni (D-Austintown), former U.S. Rep. Betty Sutton and former Ohio Rep. Connie Pillich appeared together for a sit-down debate on WBNS' "Face the State" on Sunday morning, and again for the Democratic State Dinner in Columbus that evening.

Ohio Supreme Court Justice Bill O'Neill announced Sunday he would enter the gubernatorial race as the fifth Democratic candidate, saying in a press release that he supports "the legalization of recreational marijuana, a higher minimum wage, a decrease in in-state tuition, and the funding of mental health institutions across the state." Chief Justice Maureen O'Connor said Sunday that O'Neill intends to remain on the court "for the foreseeable future." O'Connor said she could not comment on his decision relative to the Rules for the Governance of the Judiciary and the Code of Judicial Conduct and that there is no mechanism for forced recusal on pending cases.

The following endorsements were made over the week:- Sen. Gayle Manning (R-North Ridgeville) endorsed Jon Husted for governor.

FEDERAL

Sen. Jay Hottinger (R-Newark) announced Tuesday that he will not be seeking the congressional seat currently held by U.S. Rep. Pat Tiberi (R-Columbus) after Tiberi steps down next year.

U.S. Sen. Rob Portman (R-OH) said Tuesday in his regular call with reporters that he believes the basic framework of the tax reform plans under consideration in Congress will make the changes "deficit neutral," if not have a positive effect on deficits.


GENERAL ASSEMBLY/STATEHOUSE

A woman working for the Legislative Service Commission (LSC) told an investigator ex-Sen. Cliff Hite (R-Findlay) repeatedly asked her for sex and made other advances, persisting over months despite her repeated refusals. A memo to LSC Director Mark Flanders, written by a staff attorney he asked to conduct a sexual harassment investigation, details events from August into early October. She reported Hite's conduct to LSC's personnel officer as well as the Ohio Legislative Inspector General's (OLIG) office on Oct. 11. Hite abruptly resigned on Oct. 16, the same day Flanders contacted Hite's office to notify him of the investigation. Two days later Hite released a statement saying he'd hugged the LSC employee and "talked with her in a way that was not appropriate for a married man, father and grandfather like myself."

Four complaints alleging harassment were filed against three members of the Ohio House and a legislative staffer, according to documents released by House Speaker Cliff Rosenberger's office in response to a public records request by Ohio media. They include Rep. Mike Henne (R-Clayton) who went to sensitivity training after a female House employee complained about a remark he made to a group in April 2015; a female Democratic member of the House [identified by the Plain Dealer as Rep. Stephanie Howse (D-Cleveland)] was accused in June 2016 of an action that violated the House's anti-harassment and discrimination policy; Rep. Bernadine Kent (D-Columbus), accused of inappropriate actions to fire a staffer, received remedial training; and Mark Homyak, a legislative aide to former Rep. Nan Baker (R-Westlake), was fired for violating the House's anti-harassment policy.

The House held a predictably long floor debate over abortion bill HB214 (LaTourette-Merrin) Wednesday, when a dozen lawmakers weighed in from both sides of the aisle on efforts to protect the lives of unborn children with Down syndrome. The bill passed 64-31 along party lines. Legislation to prevent fraudulent use of Supplemental Nutrition Assistance Program (SNAP) benefits also drew extensive comments and a similar vote tally. A second bill aimed at SNAP fraud, HB119 (Henne-McColley), drew somewhat less opposition, passing 74-14.

Other legislation to pass the House Wednesday by unanimous or near-unanimous votes included the mandatory reporting of child abuse by peace officers in HB137 (Kent); the addition of two domestic relations judges in Franklin County in HB174 (Hughes-Lanese); changes in the state of residence test for income tax purposes in HB292 (Scherer); and business income status for wages paid by a professional employer organization (PEO) to the owner of a pass-through entity in HB334 (Scherer).

The Capitol Square Review and Advisory Board (CSRAB) announced that the Statehouse Museum Shop will host "Taste of Ohio," a book signing and food tasting, Wednesday, Nov. 15 in the Map Room of the Ohio Statehouse. The book signings and tasting will begin at 11 a.m. and run through 2 p.m. According to CSRAB, Ohio-made products will be available from Giorgio Cookie Co., Bellisari's, Nature's Honey Tree, Silver Bridge Coffee Co. and De Massimo's Authentic Sauces. In addition, the Statehouse Museum Shop will host three book signings with five Ohio authors whose works focus on Ohio's natural and political environment.

The Ohio Senate announced this week the appointments to various other committees in and around the Statehouse prompted by the resignation of Cliff Hite from the 1st Senate District seat.

In other action, the House Financial Institutions, Housing and Urban Development Committee reported out SB163 (Wilson) which deals with the qualifications regarding notes eligible for


investment of county inactive moneys; the House Aging and Long Term Care Committee reported out HB362 (Carfagna-Ramos) which revises the law governing the State Highway Patrol Retirement System; the House Community and Family Advancement Committee reported out SB70 (Coley) which revises the state's child support laws; the House Government Accountability and Oversight Committee reported out HCR10 (Thompson-Greenspan) which condemns the Boycott, Divestment and Sanctions movement and increasing incidents of anti-Semitism; the House Health Committee reported out HB335 (Lepore-Hagan-Howse) which designates April as "Sarcoidosis Awareness Month"; and the House State and Local Government Committee reported out SB86 (Hackett) which designates May 25 as "Ohio National Missing Children's Day."

GOVERNOR

Gov. John Kasich joined the head of Japan's economic development federation Monday in offering an advance look at the future of Japanese investment in Ohio. Kasich and JobsOhio hosted the delegation of 40 companies and representatives of Keidanren, the Japan Federation of Economic Organizations, which called Ohio one of the top states for Japanese business activity in the U.S. Kasich and Keidanren Chairman Sadayuki Sakakibara gave remarks at a Statehouse Atrium luncheon, followed later Monday by a question-and-answer session with Sakakibara.

The subject of "right to work" almost never comes up when meeting with business leaders across Ohio and the U.S., Gov. John Kasich said Wednesday. Answering an attendee question on the issue at the Ohio Manufacturers' Association (OMA) Workforce Summit at the Greater Columbus Convention Center, Kasich applauded the recent work of unions in helping to convince PTT Global Chemical to create a cracker plant for shale natural gas in Belmont County.

Appointments made during the week include the following:- Daniel J. Massey of Columbus (Franklin County) reappointed to the Industrial Commission Nominating Council for a term beginning Oct. 27, 2017, and ending Oct. 20, 2019. - Eric L. Burkland of Columbus (Franklin County), Phillip J. Fulton of Columbus (Franklin County), Frank L. Gallucci, III of Cleveland (Cuyahoga County) and Roger R. Geiger of Columbus (Franklin County) reappointed to the Industrial Commission Nominating Council for terms beginning Oct. 27, 2017, and ending Oct. 20, 2021.- Dr. Joanne Phillips Estes of Cincinnati (Hamilton Co.) to the Ohio Occupational Therapy, Physical Therapy and Athletic Trainers Board for a term beginning Oct. 30, 2017, and ending Aug. 27, 2019, and Melissa Van Allen of Columbus (Franklin Co.) and Dr. Trevor M. Bates of Sylvania (Lucas Co.) for terms beginning Oct. 30, 2017, and ending Aug. 27, 2020.- Paul W. Imhoff of Upper Arlington (Franklin County) and Susmita Sadana, Ph.D. of Dublin (Franklin County) reappointed to the Ohio Humanities Council for terms beginning Nov. 1, 2017, and ending Oct. 30, 2020.

HIGHER EDUCATION

Youngstown State University (YSU) and the YSU Foundation launched the public phase of their $100 million "We See Tomorrow" fundraising campaign, the largest in the university's history. They have already raised $51.7 million, according to the university.


Ohio University (OU) Prof. Jacqueline Yahn was recently honored by the National Rural Education Association (NREA) with the Edward W. Chance Memorial Rural Education Dissertation Award for her work on rural education and issues of current concern.

Ohio State University (OSU) said it is planning a new optometry clinic and health sciences faculty offices located at 11th and Neil avenues. The university said the project will be the first step in a potential broader interdisciplinary health sciences center that is aligned with its strategic plan and identified in the university's long-term planning vision.

Ohio State University announced that it is establishing the Drug Enforcement and Policy Center (DEPC) within the Moritz College of Law that will examine the impact of modern drug laws, policies and enforcement on personal freedoms.

Following approval by the state Controlling Board, the Ohio Department of Higher Education (ODHE) will transfer $2,922,258 in capital funds to provide three regional awards for workforce development projects relating to the department's Regionally Aligned Priorities in Delivering Skills (RAPIDS) program. The funds are going to projects in Western and Central Ohio, and Northern Appalachia.

HOUSING/HOMELESSNESS

Ohio Housing Finance Agency (OHFA) Executive Director Sean Thomas defended the agency's use of federal Hardest Hit Funds (HHF) following the publication of a critical report from the federal Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). In its quarterly report to Congress, SIGTARP said OHFA "appears to be heavily focused on blight demolitions and less focused on helping homeowners with HHF." According to the report, Ohio has demolished 5,246 abandoned houses using $72 million since August 2013. "This is the second highest number of demolitions in the HHF program." Thomas told the House Financial Institutions, Housing and Urban Development Committee that OHFA developed its program with the U.S. Treasury, and received approval from the federal agency.

INSURANCE

With November Ohio's leading month for deer-vehicle crashes, Ohio Department of Insurance Director Jillian Froment and Ohio State Highway Patrol Superintendent Col. Paul Pride are encouraging Ohioans to complete an insurance review and to drive with extra caution. "Ohioans can protect themselves by committing to attentive driving and having the appropriate insurance in place," Froment said.

JUDICIAL

The Ohio Supreme Court Friday released the results of the July 2017 Ohio Bar Examination, which was administered in Columbus on July 25-27. Of the 936 applicants who sat for the exam, 664 -- or 70.9 percent -- received passing scores. Among the 793 first-time applicants, 77 percent received passing scores.

Ohio pulls a "C" in a new report on pre-trial justice in the U.S. but qualifies as a "State to Watch" due to its growing move away from bail requirements, says the Pretrial Justice Institute (PJI). Headquartered near Washington D.C., the institute gives the nation a "D" for criminal justice practices leading to the trial phase, including jail populations and risk assessment. A third of all states failed outright.


LOCAL GOVERNMENT

At Wednesday's meeting of the House State and Local Government Committee, members questioned the provisions of an amended version HB121 (Edwards), which would prohibit local governments and municipalities from barring the use of certain piping materials in local water and sewer infrastructure projects.

The state of Ohio and the city of Toledo are accusing each other of a constitutional "end-run" in a traffic camera dispute that has saddled the General Assembly with contempt of court findings and the 6th District Court of Appeals with alleged violations of the separation of powers doctrine. The Ohio Supreme Court will decide whether lower courts can effectively order the Legislature to spend money, thereby negating 131-HB64's (R. Smith) set off of local government funding to jurisdictions with traffic cameras.

MEDICAID/MEDICAID REFORM

The Ohio Department of Medicaid's (ODM) $264 million funding request passed the Controlling Board without objection on Monday. ODM Director Barbara Sears and Ohio Office of Budget and Management (OBM) Director Tim Keen were on hand to answer questions from lawmakers, who included language in budget bill HB49 (R. Smith) requiring the administration to seek Controlling Board approval of Medicaid funds in FY18 and FY19. Sears told Sen. Jay Hottinger (R-Newark) that without the requested appropriation, the administration would be forced to either cut funding to all health care providers by 16 percent or withhold payment when funding runs out, which would likely occur in late May or early June 2018.

MILITARY AFFAIRS

Another Ohio National Guard company deployed to Puerto Rico to help with storm clean up and reconstruction -- this one a transportation company, which will stage for logistical support to the Hurricane Maria response in Puerto Rico. A total of 86 soldiers from the 1483rd Transportation Company, based out of Walbridge, OH, are assisting in transporting food, water, equipment and fuel.

NATURAL RESOURCES

Interested stakeholders have until Monday, Nov. 6, to submit comments related to forest management activities associated with the Mohican native hardwoods restoration initiative for Mohican-Memorial State Forest. All comments will be considered as the plans are finalized, according to the Ohio Department of Natural Resources (ODNR). Comments regarding the proposed addendum can be sent or emailed to Mohican-Memorial State Forest, 945 ODNR Mohican Rd. 60, Perrysville, OH 44864; 419-938-6222; or to [email protected].

Jack and Janel Sweigart and Mark Hoenigman and the National Wild Turkey Federation were recently honored with a tree planting ceremony at the ODNR Division of Forestry's Forest of Honor ceremony at Zaleski State Forest near McArthur, according to the Ohio Department of Natural Resources (ODNR).

High school students, college students, teachers and members of the general public can now apply for 2018 classes at Ohio State University's (OSU) Stone Laboratory. Students can earn two college credits in one week or four credits in five weeks during summer science classes on


subjects such as aquatic biology, behavioral ecology and field zoology. Credits are transferable to most U.S. colleges.

The Ohio Department of Natural Resources (ODNR) will host open houses the week of Monday, Nov. 6, to discuss proposed abandoned mine land projects in 18 Ohio counties. At the meetings, staff from the ODNR Division of Mineral Resources Management will be available to discuss environmental and public health and safety issues associated with Ohio's abandoned mines.

The Ohio Department of Natural Resources (ODNR) presented its "Cardinal Award" to Ducks Unlimited, an organization dedicated to wetlands and waterfowl conservation. This award honors individuals and organizations demonstrating "exceptional awareness and concern for ideals reflected in the department's mission statement," ODNR said.

PAYDAY LENDING

Ohioans from across the state rallied Wednesday on the Statehouse steps to urge passage of legislation to reform payday lending. Ohio has the distinction of having the highest-cost payday loans in the nation, with typical annual percentage rates on these small loans approaching 600 percent, the group said. Rep. Kyle Koehler (R-Springfield) and Rep. Mike Ashford (D-Toledo) introduced HB123 earlier this year to reform payday loans.

PENSIONS

The Ohio Police & Fire (OP&F) Pension fund announced its Board of Trustees recently reduced the retirement system's assumed average rate of investment return from 8.25 percent to 8 percent, following the recommendation of outside actuaries as part of a routine five-year review of assumptions.

PEOPLE

Vorys, Sater, Seymour and Pease LLP announced the firm's new managing partner Monday. Michael D. Martz will take over Jan. 1, 2018 after Russell Gertmenian, Vorys' current managing partner, retires at year's end. Martz joined the firm in 1991 after earning his law degree from the University of Wisconsin.

The Coalition on Homelessness and Housing in Ohio (COHHIO) announced Thursday that it has hired Gina Wilt to lead the nonprofit organization's advocacy program. Wilt joins COHHIO after managing lobbying efforts with CRN Consulting Ltd. for the Home Matters to Ohio campaign to expand the Ohio Housing Trust Fund in the state budget. Previously Wilt served nearly 12 years as senior legislative aide to Senate Finance Chairman Scott Oelslager (R-North Canton). She also has experience working as a real estate agent.

REDISTRICTING/REAPPORTIONMENT

Members of the Congressional Redistricting Working Group received further public encouragement to scrap Ohio's current system of drawing congressional district lines during its second and final public hearing on Wednesday. Approximately 20 witnesses showed up to testify at the evening hearing at the Statehouse, with many more providing written testimony. Chairman Rep. Kirk Schuring (R-Canton), Rep. Jack Cera (D-Bellaire) and Sen. Vernon Sykes (D-Akron) were all present, while Sen. Bob Peterson (R-Sabina) filled in for Sen. Matt Huffman


(R-Lima). Schuring told reporters after the hearing that the working group could begin crafting a proposal as soon as next week, saying it is achievable for the panel to have an agreement worked out by the end of the year.

STATE GOVERNMENT

The Office of Criminal Justice Services (OCJS) has been awarded $208,080 for FY17 by the U.S. Department of Health and Human Services' Look Beneath the Surface Regional Anti-Trafficking Program grant to build capacity of Ohio's communities to identify and respond to human trafficking.

TAXATION

Sen. Kevin Bacon (R-Columbus) said this week that he once again introduced legislation to make Ohio's sales tax holiday permanent after the General Assembly had previously decided to make it temporary. The new bill is SB226.

Business and housing organizations urged the House Ways and Means Committee on Tuesday to approve Rep. Derek Merrin's (R-Monclova) HB343 which requires elected local government bodies to explicitly authorize each property tax valuation challenge filed on their behalf. The groups said the move would help address situations in some jurisdictions where attorneys persistently and broadly file county Board of Revision complaints, leaving tax rates unpredictable and requiring owners to spend time and money fighting the cases.

TRANSPORTATION

Automakers Honda, General Motors and Tesla predicted near- and medium-term rollout of fully autonomous vehicles Wednesday at the Statehouse, but urged lawmakers to take action to enable the technology's deployment in Ohio.

Each of the Ohio Department of Transportation's (ODOT) 1,629 trucks is receiving a 150-point check as part of the department's annual county-by-county readiness inspections made ahead of the winter snow removal season. "This allows ODOT's 262 mechanics to ensure snow-fighting equipment is in top shape before the snow begins to fall," the department explained.

UNEMPLOYMENT COMPENSATION

Illegal aliens who are unable to obtain workers' compensation benefits could still sue employers under certain circumstances if they are injured on the job, sponsors of legislation that would end benefits for those who could not prove their legal status said Wednesday. Reps. Bill Seitz (R-Cincinnati) and Larry Householder (R-Glenville) gave sponsor testimony before the House Insurance Committee on HB380, which Seitz said would require injured workers show that they are authorized to work in the U.S.

UTILITIES

Public Utilities Commission of Ohio (PUCO) Chairman Asim Haque acknowledged the controversy Tuesday over the commission's method of devising so-called electric security plans (ESP) in lieu of market-driven pricing, and the utility sector's preference for a semi-regulated approach to ratemaking that allows it to secure predictable profits from various customer billing riders. In fact, the subject of ESPs versus market rate offers (MRO) was not part of Haque's


prepared remarks to the House Public Utilities Committee, eliciting surprise from Rep. Bill Seitz (R-Cincinnati).

The regional transmission organization (RTO) that oversees the wholesale electric markets of Ohio and 12 other states, PJM Interconnection, has charged U.S. Energy Secretary Rick Perry with a "transparent attack" on RTOs generally and PJM specifically, saying his recent rulemaking directive to the Federal Energy Regulatory Commission (FERC) supporting subsidies for coal and nuclear generation undercuts competitive markets developed by state and federal officials over the last two decades. Perry's Sept. 29 letter to the commission maintained that the system of wholesale markets regulated by FERC undervalues the reliability and resiliency characteristics of nuclear and coal-fired facilities over and against gas-fired and renewable generation -- an argument made by supporters of cost-recovery legislation currently before the Ohio General Assembly.

Final Committee Agenda

Tuesday, November 7, 2017

OHIO AEROSPACE AND AVIATION TECHNOLOGY COMMITTEETue., Nov. 7, 2017, 10:00 AM, Hearing Room 017On the agenda: report of Tiger Team; breakdown and discussion of workgroups.ORSC PERS FIDUCIARY AUDIT SUBCOMMITTEETue., Nov. 7, 2017, 10:15 AM, Statehouse Room 216On the agenda: discussion/scoring of proposals and recommendation.SENATE FINANCE Sen. Oelslager: 614-466-0626Tue., Nov. 7, 2017, 2:30 PM, Senate Finance Hearing RoomGovernor's appointments:- Mike Brooks and Daniel Fischer to the Hocking Technical College Board of Trustees- Corrine Burger and Richard Joseph to the Columbus State Community College Board of Trustees- Aravind Immaneni to the Third Frontier Commission- Leonard Komoroski to the Cleveland State University Board of Trustees- Phillip Trueblood to the Northeast Ohio Medical University Board of Trustees- Michael Young to the Zane State Community College Board of Trustees- Amy Barker and Richard Sadlier to the Sinclair Community College Board of Trustees- Robert Montagnese to the Central Ohio Technical College Board of TrusteesHB158

UNEMPLOYMENT COMPENSATION-MILITARY TRANSFERS (PERALES R, CRAIG H) To permit persons who quit work to accompany the person's spouse on a military transfer to be eligible for unemployment compensation benefits.First Hearing, Sponsor Testimony

SB187

DELINQUENT MUNICIPAL INCOME TAXES (EKLUND J, WILSON S) To allow municipal corporations to charge delinquent taxpayers the costs of collecting municipal income taxes regardless of whether the costs are incurred before or after a judgment is entered against the taxpayer.First Hearing, Sponsor Testimony

Wednesday, November 8, 2017


HOUSE TRANSPORTATION AND PUBLIC SAFETY Rep. Green: 614-644-6034

Wed., Nov. 8, 2017, 9:00 AM, Hearing Room 017

SB77 LICENSE PLATES-KYLERSTONG (COLEY W) To create the "KylerStrong Foundation" license plate.Second Hearing, All Testimony, AMENDMENTS/POSSIBLE VOTE

HB219

SPEED LIMIT SIGN DISTANCES (BOCCIERI J) To specify that a speed limit becomes effective at a reasonable distance from the appropriate sign giving notice of the speed limit.Third Hearing, Opponent/Interested Party Testimony, POSSIBLE VOTE

HB250

ELECTRIC BIKE REQUIREMENTS (BRINKMAN T) To establish requirements for the use of electric bicycles.Third Hearing, Opponent/Interested Party Testimony

HB260

LIMITED DRIVING ON SUSPENDED LICENSE (BUTLER, JR. J, SYKES E) To require a court to grant limited driving privileges to a person in relation to a driver's license suspension under certain circumstances.Second Hearing, Proponent Testimony

HB280

MOTORCYCLE EARPLUGS (GOODMAN W) To permit a person to wear earplugs for hearing protection while operating a motorcycle.Second Hearing, Proponent Testimony

HB297

TITLE TRANSFER UPON DEATH (HAGAN C) To allow owners of a motor vehicle, watercraft, or outboard motor who have joint ownership with right of survivorship to transfer title through a transfer-on-death designation.Second Hearing, Proponent Testimony

SENATE WAYS AND MEANS Sen. Eklund: 614-644-7718Wed., Nov. 8, 2017, 9:00 AM, South Hearing Room

SB209

PROPERTY TAX EXEMPTIONS-TIF (COLEY W, EKLUND J) To modify the conditions that determine the relative priority of property tax exemptions when a parcel subject to a tax increment financing arrangement concurrently qualifies for another exemption.First Hearing, Sponsor Testimony

SB181

UNPAID MUNICIPAL GARBAGE FEES (O'BRIEN S, YUKO K) To authorize all municipal corporations that charge a garbage collection fee to certify unpaid amounts to the county auditor, who must enter the fees on the property tax list to be collected in the same manner as real property taxes.Second Hearing, Proponent Testimony

SENATE RULES AND REFERENCE COMMITTEE Sen. Obhof: 614-466-7505

Wed., Nov. 8, 2017, 11:00 AM, Senate Majority Conference RoomCANCELLEDOHIO SENATEWed., Nov. 8, 2017, 1:30 PM, Senate ChambersCANCELLEDSENATE EDUCATION Sen. Lehner: 614-466-4538Wed., Nov. 8, 2017, 1:30 PM, South Hearing RoomSB105

MONTH DESIGNATION-OHIO PRINCIPALS (TAVARES C) To designate the month of October as "Ohio Principals Month."Third Hearing, All Testimony, POSSIBLE VOTE


HB170

COMPUTER SCIENCE EDUCATION (CARFAGNA R, DUFFEY M) With regard to academic content standards and curriculum requirements for computer science; to revise educator qualifications regarding computer science; to create a competitive technology grant program for the 2018-2019 school year; and to make an appropriation.Fifth Hearing, All Testimony, AMENDMENTS/POSSIBLE VOTE

SB34 SCHOOL YEARS (MANNING G) To generally require public and chartered nonpublic schools to open for instruction after Labor Day.Fourth Hearing, All Testimony

SB216

PUBLIC SCHOOL DEREGULATION ACT (HUFFMAN M) To enact the "Ohio Public School Deregulation Act" regarding the administration of preschool and primary and secondary education programs.Second Hearing, Proponent Testimony

Thursday, November 9, 2017

HOUSE TASK FORCE ON EDUCATION AND POVERTYThu., Nov. 9, 2017, 10:00 AM, Riffe CenterHearing is in Room 1960 of Riffe Center. On the agenda: presentation by Teresa Lampl of the Ohio Council of Behavioral Health and Family Service Providers and Joe Shorokey of Alta Behavioral Healthcare; presentation by former Cincinnati Public Schools Superintendent Mary Ronan.OHIO RETIREMENT STUDY COUNCILThu., Nov. 9, 2017, 10:00 AM, Hearing Room 121Agenda TBA.

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