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LEGISLATION JOURNAL

Posted 08/21/08

CONTROL OF HOUSE COULD COME DOWN TO A DOZEN OR SO DISTRICTS UP FOR GRABS IN NOVEMBER


All 99 House seats are on the ballot this fall, but only a fraction of that total - about a dozen give or take - appear truly up for grabs based on political tendencies and other factors.


Given that Republicans saw Democrats shave seven seats from their lofty majority in 2006, those openings easily put the chamber, currently controlled 53-46 by the GOP, in play for the minority come Nov. 4.


The potential for a four-district swing and a concurrent power shift is not lost on Gov. Ted Strickland, who has already been a regular on the House Democratic campaign circuit some 13 weeks out from Election Day. Aside from the attention given to the presidential campaigns this year, the House is especially important to the first-term state leader given that the GOP has an apparently insurmountable majority in the Senate for the foreseeable future. (See Gongwer Ohio Report, August 8, 2008)

A quick look at districts most likely to be the targeted as competitive in the fall:


16th District: Republicans have promised an all-out assault to retake the right-leaning Cuyahoga County territory that Rep. Jennifer Brady (D-Westlake), a political novice, won in the biggest shocker of 2006. The GOP, as a result, may have the edge with Nan Baker, a small business owner and former school board member who currently serves on Westlake City Council.


18th District: All bets are off with the defection of Sen. Bob Spada (R-N. Royalton) from the race for another Cuyahoga County district that was already shaping up as a tester. With the moderate Republican eying a board or commission appointment from Gov. Strickland, the GOP last week tabbed State Board of Education member Colleen Grady of Strongsville to instead face Democrat Matt Patten, a labor management coordinator. The term-limited GOP incumbent with a similar name, Rep. Thomas Patton (R-Strongsville), is running for the Senate.


20th District: Incumbent GOP Rep. Jim McGregor, the former Gahanna mayor, barely fended off Democrat Beverly Campbell with a 368-vote margin of victory in 2006. Now comes the more well-connected Nancy Garland, in whom Democrats expect an even better showing. The minority party is banking on the Ohio Physical Therapy Association CEO to provide one of the two Franklin County district pick-ups that are key to their House takeover plans.


22nd District: The second of those districts straddles west side Columbus suburbs and features Democrat John Carney, an attorney who racked up about 47% of the vote in losing to the incumbent in 2006, versus Republican Michael Keenan, a Dublin city councilman and insurance agency president. Speaker Jon Husted (R-Kettering) is high on his candidate, but Democrats see an opening with the departure of the hard-campaigning, term-limited moderate Rep. Jim Hughes (R-Columbus).


28th District: Democrats may now be favored in the northern Hamilton County district that Republicans wrested control of in the post-reapportionment years. The county GOP selected Sharonville Mayor Virgil Lovitt as a replacement candidate for Rep. Jim Raussen (R-Cincinnati), who bolted the race for a $115,000-a-year post with Democratic Gov. Strickland's administration. Connie Pillich, a Montgomery resident and attorney with Webb & Pillich LLC, already has a decent head start on whoever local Republicans put on the ballot.


42nd District: Appointees in borderline districts invariably become targets, so expect Democrats to put some money behind Mike Moran in his effort to unseat Rep. Richard Nero (R-Hudson). The Republican, a consultant for the Oracle Corporation, was appointed to the Summit County district seat after the primary, filling an opening left by the abrupt resignation of former Rep. John Widowfield amidst a review of OSU football ticket selling. Mr. Moran, an efficiency and cost control specialist at Thomson Reuters, is a Hudson City Councilman.


50th District: In the open Stark County district that's also fairly even in terms of political indexes, Republicans will try and retain the territory with Uniontown attorney Todd Snitchler, who fended off incumbent Rep. John Hagan's (R-Alliance) daughter in the primary. Celeste DeHoff, an attorney and Tuscarawas Township trustee, emerged narrowly victorious from a five-way primary to carry the hopes of Democrats in the fall.


57th District: Another GOP candidate who is high on Speaker Husted's list, Daniel Urban, an attorney and Avon City Councilman, will try to unseat freshman Rep. Matt Lundy (D-Elyria) in a politically 50-50 Lorain County district once held by Republicans. But Mr. Lundy, a former TV reporter and assistant service director, carried 56% of the vote in knocking off incumbent GOP Rep. Earl Martin in 2006.


58th District: Republicans have a huge chance to retake the rural northern Ohio territory, as Democrats have seen a succession of implosions starting with the exit of disgraced former Rep. Matt Barrett in a nude photo flap. Rep. Thomas Heydinger (D-Norwalk), a former judge, was appointed this year only to quickly get his fill of legislative politics and bail out of the fall elections. Democrat Terry Traster, a carpenter and Amherst city councilman, stepped in to fill the void and will face Republican Terry Boose of Norwalk, a former Huron County Commissioner, on Nov. 4.


63rd District: Rep. Carol-Ann Schindel (R-Leroy) has a target on her back by virtue of her 52-48% win in 2006 that was aided by incumbent Rep. Timothy Cassell's embarrassing DUI accident. Democrats like their chances to retake the borderline Lake County turf with Mark Schneider of Mentor, an assistant prosecutor for Cuyahoga County.


85th District: Incumbent Rep. John Schlichter (R-Washington C.H.) found himself in a surprisingly close race in 2006, when he edged Democrat Raymond Pryor by less than 2%. Mr. Pryor, a former Ohio Bureau of Employment Services employee who lives in Chillicothe, returns for a rematch in the south-central Ohio district.


92nd District: Incumbent Rep. Jimmy Stewart (R-Albany), who vacates the seat for a shot at the Senate, was given all he could handle two years ago by Democrat Debbie Phillips, an Athens city councilwoman and executive director of the Ohio Fair Schools Campaign. Ms. Phillips is back for a second try at the seat against Republican Jill Thompson, the Athens County auditor.


94th District: The east-central Ohio seat being left open by Rep. Jim Aslanides (R-Coshocton) has trended Republican in the past, but the minority House party saw Democratic Congressman Zack Space's 2006 victory as a good sign for the region. State Board of Education Vice President Jennifer Stewart carries the Democratic banner this fall against a fellow Zanesville resident, auto dealer Troy Balderson.

Other districts said to be targeted to one degree or another:

Posted 01/18/08

HB 422 Info and Analysis

HB 422Right-click here to download pictures. To help protect your privacy, Outlook prevented automatic download of this picture from the Internet. * WATER RESOURCES  (Setzer)  To create the Water Resources and Economic Development Study Committee.   Full Text   (1st Hearing-Sponsor)
 

The proposed study committee would evaluate Ohio's water resources and recommend ways to use water "as a mechanism for economic development," Rep. Setzer said in sponsor testimony.
 

The measure was inspired by the situation in Farmersville, where residents "had the foresight to consider selling water for economic and employment growth," she said. The village sits atop an aquifer that could generate 100-500 gallons a minute.

"If this small village has such vision, I believe that water resources for economic development throughout our state should be studied independently from our other natural resources," she said.
 

Rep. Chandler asked whether the study committee would also consider the environmental impact of transferring water out of the area. The focus on economic development "may be neglecting the idea that we have a precious resource that maybe should be protected as well."
 

Rep. Setzer said the composition of the committee would be broad enough to consider all aspects of the issue and could recommend protections for water resources.
 

Referring to a past incident in his dry district where a private company purchased land to export water to neighboring areas, Chairman Collier said the committee would have to analyze all aspects of the issue. "I would think they would have far more to study than just economic development, and who's economic development."

 

Steve Dimon
Capitol Insights, LLC 
 www.capitolinsights.net

 

Just Introduced...
 HB 436      WATER TANKS (Stewart, J.)
To authorize municipal and other political subdivision contracts for maintenance and repair of a water storage tank to be awarded without competitive bidding under specified conditions.

Am. & En. 307.86, 6101.16, 6103.10, 6115.20, 6119.10 and 735.054

Posted 01/14/08

Testimony on HB 103 - Click Here for PDF

BILL WOULD SHIFT RESPONSIBILITY FOR TENANTS' UNPAID WATER BILLS FROM LANDLORDS TO WATER COMPANIES - Gongwer News Service

Grappling with the question of who should cover unpaid water bills left behind by tenants, a House panel adopted a new version of legislation Thursday that would limit landlords' liability for the delinquent accounts.
 

The House Local & Municipal Government & Urban Revitalization Committee adopted a substitute version of legislation (HB 103Right-click here to download pictures. To help protect your privacy, Outlook prevented automatic download of this picture from the Internet. *) that would leave landlords liable for up to $200 worth of their tenants' outstanding accounts. However, water companies and local governments oppose the measure, saying it would drive up consumer rates.
 

Chairman Larry Wolpert (R-Hilliard) said the measure was designed to spur public water companies to pursue outstanding debts themselves. Currently, the utilities can forward unpaid water bills to their county auditor who will put a lien on the property, regardless of whether or not the debtor was a tenant, he explained in an interview.
 

"Currently, the water companies have no incentive to go after the tenant," he said, adding the measure would make the utilities responsible for collecting the money they're owed.
 

The substitute version, which would allow water providers to certify between $20 and $200 of tenants' unpaid charges of to the county auditor, avoids constitutional issues of home rule, he said. The measure applies to those properties where tenants pay their own water bills.
 

Brad Cole, senior policy analyst for the County Commissioners Association of Ohio, spoke in opposition to the proposal, saying the limit on placing liens would effectively block public utilities from collecting delinquent bills.

"Clearly there would be a loss of revenue, which is a concern," he said.

Because county water providers operate as an enterprise fund, and receive no taxpayer subsidy, they will have to raise rates for all their customers.

Moreover, water providers often don't know which properties are rental units, he said.
 

Gregory Merrill, director of Montgomery County Sanitary Engineering, also testified in opposition to the proposed limits.
 

Had the bill been in effect during the past three years it would have cost his county about $200,000 in lost revenue, he said. That would require a 1% rate increase for all customers, rather than focusing the burden on landlords, who are profiting from renting their properties.


Committee members appeared skeptical of opponents' arguments, questioning why they have a legal recourse to collect debts that other public utilities don't have.


Rep. Tom Brinkman (R-Cincinnati) asked why public water providers shouldn't behave more like private businesses and collect their own debts, rather than "putting the burden on someone else."


Mr. Cole said the utilities could implement more aggressive collection tactics, such as shifting from quarterly to monthly billing. "But that would add administrative costs."


As a public service, water companies try to keep their costs and rates low, he said. "We don't have the same motivation as the private sector."


In response to a question from Rep. Kathleen Chandler (D-Kent), Mr. Merrill said it shouldn't be the public's responsibility to subsidize the profits that landlords make for using their property as a business. "They're taking a risk and they're really the ones responsible for determining whether the tenant is responsible or not."


Noting some providers are reluctant to shut off water to customers unable to pay their bills, Rep. Jim McGregor (R-Gahanna) suggested the current law creates a "perverse incentive to be charitable out of someone else's pocket."


Representing the Ohio Real Estate Investors Association, Matthew Whitehead, of the Governmental Policy Group, testified in support of the legislation, saying landlords are willing to take on a significant amount of liability for their tenants. "Landlords are providing charity through accepting liability for the first $200."


Ohio Real Estate Investors Association Executive Director Jerry Conley said he's heard many complaints from his members about issues related to tenants' delinquent water bills.


In one instance, a water department is refusing to provide water to new rental units for a landlord whose previous tenants left several unpaid water bills, he said.


Chairman Wolpert said he planned to have several more hearings before holding a vote on the measure, which could see additional changes. "We're going to cook this bill some more."

 

 

Posted 01/03/08
 

Proposed re-write of HB103 available
Click Here for Memo to Interested Parties
Click Here for Sub. H.B. No. 1

 

 

posted 07/30/07

HB 289  To amend sections 931.02, 931.03, 931.04, 931.99, and 5709.28 of the Revised Code to make changes to the law governing agricultural security areas.

 

posted 07/06/07

HB 103 - 2007-2008 WATER FEES (Blessing) To modify the circumstances under which a lien may be created to collect unpaid water rates and charges owed local authorities and to specify certain requirements prior to creation of the lien.

 

HB 227 - 2007-2008 WATER DISTRICTS (Evans) To authorize regional water and sewer districts to establish police departments.

 

HB 62 - 2007-2008 WATER RATES (Ujvagi) To authorize a board of county commissioners or a board of trustees of a regional water and sewer district to offer discounts on water and sewer rates to persons sixty-five years of age or older.

 

 

 

posted 03/09/07

HB 227Right-click here to download pictures. To help protect your privacy, Outlook prevented automatic download of this picture from the Internet. *  WATER DISTRICTS  (Evans)  To authorize regional water and sewer districts to establish police departments. Am. & En. 109.71, 109.73, 109.77, 6119.60, 6119.61, 6119.62, 6119.63, and 6119.64   Full Text

 

 

 

NEW LEGISLATION AND ANALYSIS

posted 03/09/07


HB 62 - WATER RATES   (Ujvagi)   To authorize a board of county commissioners or a board of trustees of a regional water and sewer district to offer discounts on water and sewer rates to persons sixty-five years of age or older.   Full Text
 

Rep. Ujvagi outlined the bill that he said was requested by Lucas County officials who want to offer discounted water and sewer rates to low-income seniors who live in the county, but outside of the city of Toledo.

He said the permissive measure offers the opportunity to counties to make the service available to qualifying participants who meet income requirements that match Ohio Housing Finance Agency standards. He said the change is particularly important given the increased costs that are likely to be associated with a settlement that calls for a half-billion dollars of water system repairs.

Rep. Wagner raised concerns about lowering rates for certain seniors, suggesting that the rate cuts would require others - possibly young families struggling to make ends meet - to subsidize their bills. Mr. Ujvagi responded that those families are also relying on seniors to contribute to their kids' schools.

 

HB 103 WATER FEES  (Blessing)  To modify the circumstances under which a lien may be created to collect unpaid water rates and charges owed local authorities and to specify certain requirements prior to creation of the lien. Am. 735.29, 743.04, 5321.03, 6103.02, and 6119.06   Full Text

 

 


posted 03/08/07

 

HB 62 Analysis

 

SB 83  SEWAGE RULES  
(Grendell)  To require the Public Health Council to rescind rules related to household sewage treatment systems and reinstate the rules related to those systems that were in effect prior to January 1, 2007, to require the Council subsequently to adopt statutorily required rules related to those systems, and to declare an emergency.   Full Text

HB 304

What follows is a letter from Lewis Blessing regarding House Bill 304.  Any questions or comments may be directed to ORWA@Ohiowater.org.

 

February 9, 2007
 

With the start of the new General Assembly underway and legislative action still a couple of weeks off, I am getting a head start on my legislative agenda.

 

You will recall that my bill, House Bill 304, received a number of hearings in the 126th General Assembly and had a substitute bill accepted in the House Civil and Commercial Law Committee prior to the end of the session.  The substitute bill incorporated a number of suggested language revisions from various stakeholders among the revisions were:

 

·         Defining “inordinately high”.  

·         Added “historical usage” at the property as a benchmark for cost and usage.

·         Specifies that a written notice will be sent via ordinary mail promptly.

·         Clarifying that the bill applies to single-family, single metered situations.

·         Support effort to remove language regarding electronic metering and monitoring.

·         Continuing our responsibility for providing written proof that the property owner was not in occupancy in any or all of the property.

·         Ensuring that stormwater and sewer are not included in the bill.

 

As there was no testimony in opposition presented in committee and no response sent back to my office on the last version of the bill that was drafted and accepted, I am again sending to you a copy of the bill and ask for you or your client to provide comments by no later than February 22, 2007.  If I do not receive any specific comments by that point I will assume that your previous issues have been resolved.  Please accompany any comments that are submitted with possible language suggestions to address your concerns.

 

If you have any questions, please feel free to contact my staff.

 

Sincerely,

 

 

 

Louis Blessing

 

HOUSE PANEL COMPLETES WORK ON GREAT LAKES COMPACT BILL SLATED FOR GENERAL ASSEMBLY APPROVAL IN LAME DUCK
 


  Ohio is poised to become the first state in the Great Lakes basin to
ratify a multi-state, international compact designed to protect the
valuable water resources from diversions.
 
  Addressing business community concerns while not attempting to alter
the compact itself, the House Economic Development and Environment
Committee unanimously reported Wednesday an amended version of legislation
(HB 574) that sets parameters for Ohio's involvement and spells out the
legislature's intent on related issues.
 
  The amendment crafted by sponsor Rep. Matthew Dolan (R-Novelty) in
conjunction with the committee chairman, speaker's office staff and
interested parties, addresses several concerns voiced by the state's
business community, which initially wanted to amend the compact itself over
worries about abdicating state authority and unduly infringing on
economic development efforts.
 
  The amendment clarifies that the governor, in representing the state
on finalization of the Great Lakes-St. Lawrence River Basin Water
Resources Compact, may not cast a vote on the final plan without the General
Assembly's approval. Similarly, the language requires legislative
approval before the governor and oversight state agency - the Department of
Natural Resources - proceed with implementing regulations.
 
  Further, the amendment clarifies legislative intent with regard to
consumptive use, diversion and grandfathering issues as well as the
voluntary nature of the conservation programs. It also creates a legislative
advisory council.
 
  Mr. Dolan said in an interview that it is important for the state to
take the first step toward finalizing the compact. "Ohio is really
exercising leadership here," he said. "Protecting the Great Lakes is
essential for our future."
 
  Jerry Tinianow, executive director of Audubon Ohio, agreed. He noted
in proponent testimony in the House that the compact was in part a
guard against Great Lakes water diversion to other non-basin states with
increasing congressional clout.
 
  "Ohio has the most to lose," he added, since Lake Erie is the most
shallow of the five Great Lakes.
 
  Mr. Tinianow joined other witnesses in lauding the sponsor and
parties for working out differences while preserving the compact itself - the
altering of which would cause problems with the participating states
and Canadian provinces. "This is the way environmental legislation is
supposed to work," he said.
 
  Linda Woggon, vice president of Government Affairs for the Ohio
Chamber of Commerce and a representative of the Coalition for Sustainable
Water Management, said the legislative intent language "addresses every
single one of the issues we brought forward" several months ago.
 
  The coalition initially wanted to alter the compact itself, she
noted. "We support the concept of the compact. We don't want to put it in
jeopardy."
 
  Rep. Kathleen Chandler (D-Kent) raised concerns about amendment
language regarding the legislature's intent to set the baseline capacity for
commercial water use at the larger of physical capacity or permitted
amount on the date the compact is completely ratified - which could take
several years.
 
  Mr. Dolan replied that he didn't foresee a business constructing an
overly-large water storage facility to unduly take advantage of the
provision, underscoring that the language itself does not alter the
compact.
 
  Molly Flanagan, testifying on behalf of the National Wildlife
Federation, also expressed some concerns but did not oppose the bill, saying
her group is keeping its "eyes on the bigger picture."
 
  "We are not satisfied with the amendment," she said, while the
state's business community did. "We gave a lot and where we asked for
concessions, we didn't get much in return."
 
  NWF had proposed further changes to the bill that did not get
incorporated prior to the committee vote. Chairman Rep. Thom Collier (R-Mt.
Vernon) said he would continue to work with the group toward its goals.
 
  ODNR Senate Presentation: Since Ohio was a leading force in the
lengthy multi-state negotiations over the Great Lakes Compact, Department of
Natural Resources Director Sam Speck urged the Senate Environment &
Natural Resources Committee to support the initiative.
 
  While he believes most of the business coalition's proposed
amendments to the "auxiliary legislation" are unnecessary, they are
"acceptable," he said. However, he vehemently opposes amending the language of the
compact itself.
 
  "Our concern is that once we open up the compact for amendments, we
would see amendments from other states that we would rather not have,"
he said. "We have built a very delicate house of cards."
 
  Other states and the Canadian provinces had very different priorities
and concerns, he said. The entities worked hard to strike a compromise
on several contentious points, including whether to permit diversions
for communities and counties that straddle the basin and whether to
allow businesses to ship bottled water out of the basin.
 
  "We reached an acceptable way of dealing with these issues," he said.
 
  Noting that several states haven't even introduced compact
legislation, Sen. Tim Grendell (R-Chesterland) asked why hurry the measure.
 
  "If Ohio drifts, I think it raises questions about Ohio's leadership"
in the process, Mr. Speck answered. Gov. Bob Taft, who has named the
Great Lakes Compact as one of his legislative priorities, co-chaired the
Council of Great Lakes Governors that hammered out the agreement.
 
  In addition, he said states' failure to make progress on the
agreement could to Congress acting to take over state control of water
diversions in the region.
 

 

WASTEWATER FACILITY OPERATOR RULES CLEAR JCARR; PREDATORY LENDING PACKAGE FILED

Lawmakers allowed rules affecting drinking water and sewer facility operators to stand Monday after hearing determined opposition from officials representing several of Ohio's major cities.
 

Opponents accused the Ohio Environmental Protection Agency of trying to "micromanage" their operations by imposing rules that would increase training, staffing, and reporting requirements for facility operators.


Robert Campbell, of the Metropolitan Sewer District of Greater Cincinnati, complained operators would have to spend four times as much time performing certain duties to obtain credit towards a promotion.


The cost of hiring additional staff could run as high as $500,000 a year, he said. "It seems out of whack to us."


Claiming OEPA minimized the financial impact of the rules, Columbus Assistant City Attorney Susan Ashbrook asked the panel to invalidate the rules based on an incomplete fiscal analysis. "We're not talking about environmental regulation here," she said, arguing the city would have additional costs that have no benefit to the environment.


In addition, the proposed rules that make the operator, rather than the facility's owner, responsible for record keeping requirements exceed the agency's statutory authority, she said.


The additional staffing requirements would make cities raise their rates beyond the increases required to improve sewer overflows during wet weather, said Michael McGlinchy, of the Association of Ohio Metropolitan Wastewater Agencies.


Despite numerous stakeholder meetings and subsequent revisions to the rule package over the last two years, there remains a "philosophical difference" between the agency and facility operators, OEPA Director Joe Koncelik told the committee.


The agency created several different classifications of operators with different training and staffing requirements to reflect the vast difference in types of facilities, he explained.


"If something goes wrong in one of these huge systems, like Cincinnati, it shouldn't be someone there who's only had experience in a mobile home park facility," he said, arguing the rules reflect differences in "orders of magnitude."


"A 1% failure at a massive wastewater treatment plant is a lot different than a 1% failure at a mobile home park facility."


Rather than trying to increase compliance with environmental regulations, the rules were designed as a "preventative measure," he said, in response to a question from Rep. Fred Strahorn (D-Dayton).


Opponents' claims about the rules' financial impacts were based on a lot of "hypothetical scenarios," he said, warning that failure to impose minimum staffing requirements could jeopardize as much as $5 million in federal funding to improve wastewater infrastructure in Ohio cities.

Despite several lawmakers' concerns, the panel apparently decided the rules didn't meet JCARR's limited criteria for invalidation.


Late December Meeting: Chairman Jay Hottinger (R-Newark) said the committee would probably have another hearing on Dec. 28.


The additional hearing is necessary because a number of rules filed during the first part of November may face a "dead period" in the legislative review process, JCARR Executive Director Bill Hills said in an interview.


The problem arises due to the relatively short period of time JCARR has to hear a rule, which can occur no sooner than 41 days after filing, he said. However, JCARR jurisdiction lasts only 65 days, after which an agency can then make a final filing and the rule could go into effect following a 10-day waiting period. Therefore, rules filed between Nov. 1 and Nov. 17 cannot be heard in meetings already scheduled for Dec. 11 and Jan. 22.

 

Opposition to HB 304 from County Commissioners  posted 10/20/06
Letter sent

September 22, 2006

 

Honorable Lou Blessing

Ohio House of Representatives

77 South High Street

Columbus, Ohio 43215

 

Dear Representative Blessing:

 

The purpose of this letter is to comment on the provisions of Substitute HB 304 (LSC 1260346-3) which your office shared with me and CCAO earlier this year.

 

I have reviewed Substitute HB 304 and discussed its provisions with some of our members. CCAO is opposed to Substitute HB 304.

 

The substitute bill eliminates sanitary sewer, drainage and solid waste systems from its application so that it applies exclusively to water systems. The substitute bill also permits certification of liens for delinquencies of no more than 90 days in the case of certain rental customers if certain conditions are met. Notwithstanding these changes, we believe that this bill, if enacted, would make it significantly more difficult to collect on delinquent water bills and would increase county water district costs. Because virtually all county water supply systems operate as enterprise funds without subsidy from the general tax payer, the increased costs resulting from this legislation will be passed on to other water supply customers in the form of higher rates.

 

Many county water supply systems collect water supply rates and charges on a quarterly basis. In most instances the customers pay in arrears and thus owe their bill on the previous quarter’s service. The legislation requires a notice of delinquency to be mailed within thirty days of the charges becoming due. The bill also requires the county to terminate the water service within 90 days after the rates or charges become due. If the county can only certify delinquencies of no more than 90 days and it takes anywhere from 45 to 90 days to provide the delinquent customer with proper notice and a meaningful process to obtain payment prior to termination of service, it is easy to see how the county water district could be left with significant unpaid accounts. These costs will ultimately be borne by other rate payers.

 

There is no question that termination of service provides a customer with an incentive to pay the bill. However, if the customer in question happens to be a rental customer who has abandoned the property and moved to a new location, the water district will be unable to certify the delinquency, and the bill will become uncollectible. Again, uncollectible bills will simply drive up the cost to other users of the system.

 

In addition to sending a written notice of a delinquency to the property owner and terminating service within 90 days, there is a third condition that would have to be met before a county water district could certify a delinquency to the county auditor for collection on the tax bill. The third condition is if the service is monitored and metered electronically, the county water district would have to send written notice to the property owner whenever the district detects “inordinately high” water usage. CCAO does not believe it should be the responsibility of the county to monitor a property owner’s or landlord’s property to determine when a tenant is engaging in acts of vandalism against the property owner or there is simply a substantive change in water usage. It is the responsibility of the property owner, not a water utility to monitor and otherwise manage the business relationship that a landlord has with their tenants. It is also unclear how “inordinately high” will be defined. Will the county need to notify a property owner when water usage increases by 20%, 30%, 50% or some other spike in usage? There are counties with thousands and in some cases tens of thousands of customers. This proposed provision would result, once again, in cost increases that would be passed on to customers of the system.

 

It is worth pointing out that current law permits county commissioners to establish a security deposit to protect the county from the effects of delinquent rate payers. However, the authority to establish security deposits and terminate water service was provided by the passage of HB 549, effective 3-12-01. Therefore, even if a county has adopted rules within the past five years requiring security deposits, if you have 20,000 customers it is obvious that the security deposit would only be required of new customers or when accounts change hands. It would take many years to gradually implement such a policy and managing security deposits (tracking and safekeeping funds, providing refunds, ect.) would entail significant costs to the county water district and its customers.

 

For all of these reasons, CCAO opposes Substitute HB 304. We would have no objection to a statutory change that would require the county water district to send a notice to the property owner whenever rates and charges are delinquent. We would be happy to discuss this alternative approach.

 

We appreciate having had the opportunity to review Substitute HB 304. If you have any questions about our position on this legislation, I may be reached by calling (614) 221-5627 or you may email me at bcole@ccao.org

 

Sincerely,

 

 

Brad Cole

Senior Policy Analyst     

 

 

JCARR CLEARANCE OF HOUSEHOLD SEWAGE RULES SETS UP ANOTHER LEGISLATIVE SHOWDOWN     (posted 10/11/06)

Controversial regulation changes affecting household sewage treatment systems were again the topic of extensive debate Tuesday before clearing the Joint Committee on Agency Rule Review.
 

And again, some legislators clearly were opposed to the direction of the Department of Health package but nevertheless unable to justify an invalidation of the proposals based on a violation of JCARR "prong," such as a rule's misalignment with legislative intent.
 

"Unfortunately, the rules do meet the four prongs of the JCARR test," Chairman Sen. Jay Hottinger (R-Newark) said.
 

The final disposition of the rules package, however, seems likely to be the subject of further legislation given the apparently deep levels of dissatisfaction emanating from the General Assembly.
 

Sen. Hottinger said he was disappointed ODH wasn't able to address lawmakers' concerns over the package, which applies to such issues as permits, soil absorption, leaching trench requirements and variances, and that he looked forward to being involved in a legislative solution in the coming weeks.
 

The legislature - members from both parties have concerns over the new rules - is likely to take up the issue in the two-month lame duck session following the Nov. 7 elections.
 

Lawmakers, in fact, previously tried to put the skids on the rules (HB231, 125th General Assembly) only to see Governor Bob Taft veto budget correction measure (HB 530Right-click here to download pictures. To help protect your privacy, Outlook prevented automatic download of this picture from the Internet. *) language that would have delayed their implementation by a year. The governor said at the time that the state couldn't afford further delays in addressing Ohio's "legacy of poorly operating sewage systems." (See Gongwer Ohio Report, March 30, 2006)

Not withstanding the governor's position, opponents to the ODH rules package swamped JCARR a month later with a litany of complaints, many of which earned a sympathetic ear from lawmakers who had already fielded concerns including the impact on home prices and the cost homeowners would have to bear in updating their current systems.

Nevertheless, JCARR was forced to side with supporters of the plan based in part on the statutory requirement to file the permanent rules package by early May. (See Gongwer Ohio Report, April 24, 2006)
 

Under an agreement with ODH, department officials were to work with concerned constituencies on various outstanding issues in the hopes that compromise could be reached before the regulations' final implementation date of Jan. 1. ODH's proposed amendments to the plan were the subject of JCARR's hearing Tuesday.
 

"We made a good faith effort through the summer to work on issues," Sen. Tom Niehaus (R-New Richmond), the sponsor of the implementing legislation as a former House member, said before the hearing.

Opponents broke off further talks when it became apparent that ODH's amendments would not address their concerns, Sen. Niehaus said. "The Health Department, in my opinion, addressed those 10" issues, he said.

ODH Director Dr. J. Nick Baird said in testimony that the amendments would, among other things, expand the number of lots eligible for the pre-approval process and "significantly expand" the grace period through 2010 to a larger number of pre-approved systems installed under the former rules. "This allows lot owners with existing and future lots additional time and options to install their systems with a subsequent cost savings as well," he said.
 

Opponents who provided testimony Tuesday included the Ohio Township Association, the Ohio Manufactured Homes Association and septic system manufacturer Ring Industrial, LP.
 

OMHA argued that the rules should be invalidated because they violate legislative intent and were not submitted by ODH with an accurate summary and fiscal analysis.
 

Attorney Christopher Schraff, testifying on behalf of Ring Industrial, said the amendments make the rules worse. "The proposed rule revisions before you today not only continue - and worsen - the anticompetitive and discriminatory effect of the new Ohio Sanitary Code, but also discourage, and in many cases, effectively block the use of new, innovative treatment systems in Ohio for many years to come."
 

Sen. Niehaus said after the hearing that the amendments would provide more options to the concerned constituents. "I believe these rules will provide more options for homeowners, builders and local health departments," he said. "They will also ensure there will be more competitive products."
 

Also on Tuesday, stakeholders who came prepared to testify against a three-rule package of child care rules proposed by the Department of Job and Family Services were able to keep their powder dry after the agency withdrew two of the more controversial proposals.

ODJFS will resubmit the rules at a later date.

 

Legislation Under Consideration
posted 10/09/06

HB 123 - 2005-2006 TAX LAWS (Skindell) To revise the corporation franchise tax law by lowering tax rates, adding alternative minimum tax bases, expanding add-backs for expenses paid to related companies, adding a sales factor "throwback," eliminating future net operating loss deductions, requiring "water's edge" combined tax reporting, eliminating the implied deduction for taxes paid to other jurisdictions, increasing the maximum tax computed on a net worth basis, expressly narrowing the net worth exclusion for financial institutions relative to appreciation, clarifying the pass-through entity withholding tax base, requiring corporate taxpayers to disclose certain tax-related information, and eliminating several credits and to eliminate corresponding personal income tax credits for business owners.

HB 147 - 2005-2006 PARK FEES (Fessler) To prohibit the Division of Parks and Recreation in the Department of Natural Resources from adopting rules establishing a fee for parking a motor vehicle in a state park or for admission to a state park, to allow the Director of Natural Resources to transfer up to four million dollars from the Waterways Safety Fund to the State Park Fund, and to declare an emergency

HB 215 - 2005-2006 WATER & SEWER RATE DISCOUNTS (Ujvagi) To authorize a board of county commissioners or a board of trustees of a regional water and sewer district to offer discounts on water and sewer rates to persons sixty-five years of age or older.

HB 277 - 2005-2006 WATER/SEWER DISTRICT POLICE (Trakas) To authorize regional water and sewer districts to establish police departments.

HB 304 - 2005-2006 SERVICE LIENS (Blessing) To modify the circumstances under which a lien may be created an action at law commenced to collect unpaid water, sewage, and other service rates and charges owed local authorities.

SB 306 - 2005-2006 LITTER PENALTIES (Zurz) To establish penalties for depositing potentially dangerous litter on public or private property or in or on the waters of the state; to increase the penalty for littering from a motor vehicle or watercraft and to make littering penalties consistent.

SB 319 - 2005-2006 WATER RESROUCES COMPACT (Spada) To ratify the Great Lakes-St. Lawrence River Basin Water Resources Compact and to establish related requirements.

HB 387 - 2005-2006 COASTAL MANAGEMENT OFFICE (McGregor, J.) To abolish the Office of Coastal Management created by the Department of Natural Resources and to transfer its duties to the Division of Soil and Water Conservation within the Department.

HB 569 - 2005-2006 SEWAGE DISCHARGE NOTIFICATION (Oelslager) To establish notification requirements for the discharge of untreated or partially treated sewage onto land or into the waters of the state.

HB 574 - 2005-2006 WATER RESOURCES COMPACT (Dolan) To ratify the Great Lakes-St. Lawrence River Basin Water Resources Compact and to establish related requirements.

 

The Washington Report (posted 10/03/06)
Rural Water Grassroots Campaign Succeeds in Making New Chemical Security Legislation Better for Water Supplies  (PDF doc)

(Sept. 29, 2006) Just this week - in the closing days of this Congress, some U.S. House and Senate lawmakers proposed an amendment to the Department of Homeland Security (DHS) spending bill that would give the Department authority to issue new chemical security regulations. The regulatory proposal would have covered water and wastewater supplies – and included new civil penalties for violations of the proposed regulations. As the Congress was deciding on the final legislation, state rural water associations urged Congress to treat small communities differently than the chemical industry.
 

"Small communities' water and wastewater utilities routinely use chemicals to

treat/disinfect drinking water and wastewater to promote public health and protect the environment. However, small and rural community water supplies are self-governing, non-profit organizations, they are not businesses, and have no incentive not to take all security actions possible. They are fundamentally different from chemical businesses. A list of over 50,000 small communities (many governed by local volunteers, teachers, mayors, doctors, retired citizens, farmers, etc.) that would be open to new regulations and new civil penalties under these legislative proposals is available at:

www.ruralwater.org/seclist.txt.
 

Advancing security in small communities is more of a RESOURCE problem than a REGULATORY problem. Every small community faces unlimited challenges and needs – with limited financial, administrative, and technical resources -- and they need to ensure these resources are most effectively allocated. Please consider an approach to enhance security by prioritizing funding, technical assistance, education, and federal resources - the most effective methods for the federal government to protect small wastewater systems without overburdening the capabilities and resources of small local government."  
[Cite: www.ruralwater.org/seccollins2.pdf ]

 

On September 25, 2006, we were successful – thanks to our grassroots effort to persuade Congress to stand up for small and rural communities. Congress exempted water and wastewater supplies from the new chemical facilities regulation. Congratulations to all the rural water members who urged their Congressmen and Senators to "stand up for rural water." Many of the biggest industry and environmental community lobbyists, who were closely watching the legislation, were impressed

with rural water’s ability to persuade key decision makers on Capitol Hill of our position in the final days of this process.
 

The President has signed this bill into law. For the text of the legislation (House Report No. 109– 699, Conference Report on H.R. 5441) and more information on this and other topics, please see http://www.ruralwater.org.

 

Sub House Bill 304: (posted 9/20/06)
     Click Here for Intro Memo (Word DOC) to Sub HB 304
     Click Here for PDF of Sub HB 304


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