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2020 Commission Takes More Testimony on Historic Tax Credit

The 2020 Tax Study Commission took more testimony June 20 on the benefits resulting from Ohio's Historic Preservation Tax Credit.  Deputy Tax Commissioner Marjorie Kruse and Deputy State Historic Preservation Officer Amanda Terrell spoke on the historic preservation tax credit, with Kruse summarizing the department’s role in processing, verifying, tracking, and refunding the credit. Terrell said the effectiveness of the program is seen in the number of reapplications for the credit – up to three and four times.

“What that says to us is that many of these owners need the credit in order to make the financing work -- otherwise, would they really sit on a property for months or years longer than necessary?” she said.

Arguing for the success of the program, Terrell said Ohio ranked third nationally in FFY15 for the number of certified historic buildings seeking the federal credit; no. 2 for the number of completed projects reviewed and forwarded to the National Park Service; and no. 1 for the number of applications for buildings preparing to begin rehabilitation and construction.

After the hearing, Sen. Bob Peterson (R-Sabina), chairman of the commission, said the next meeting would be held in the last week of July.

Governor Signs Redevelopment Legislation

Governor John Kasich has signed HB 233 which authorizes municipal corporations to create downtown redevelopment districts and innovation districts for the purposes of promoting the rehabilitation of historic buildings, creating jobs, encouraging economic development in commercial and mixed-use areas, and supporting grants and loans to technology-oriented and other businesses.

Senate Blocks Addition of PLA Agreements to SB 152

An attempt to ban the use of project labor agreements in certain construction projects hit a wall in the Senate May 4, when members overwhelmingly rejected House language that would have put the new limits in place.

Senators voted 25-8 to reject the House amendments to legislation (SB 152) that also blocks public authorities from requiring a certain percentage of architects and workers from the geographic area of the project.

The Senate's concurrence vote came shortly after the House voted 51-42 to advance the controversial plan following extensive debate.

The bill could now head to a conference committee. What appears more likely, however, is that members will opt to address the residency issue - sans PLA language - through companion legislation (HB 180) advanced by the Senate Government Oversight & Reform committee.

The General Assembly will likely act on residency requirements before summer break.

Capital Construction Bill Awaits Kasich's Signature

The state's Capital Construction Bill, SB 310, passed the House May 4 (89-1) and now goes to the Governor's desk for his expected signature.  CLICK HERE for a summary of included projects.

PLA Ban added to Bill Outlawing Local Architect & Contractor Hiring Quotas

 A bill that would ban local hiring quotas became "Senate Bill 5 light," opponents said, after lawmakers added a provision Tuesday targeting cities' use of project labor agreements.

Democrats warned Senate Bill 152 could trigger a court battle and a worker-led referendum akin to the 2011 fight over Senate Bill 5, which would have curtailed collective bargaining for public employees.

The bill wouldn't outright ban project labor agreements, which are collective bargaining agreements negotiated between cities, unions, and contractors before the project begins. But it bans cities from requiring or prohibiting use of the agreements as a condition for bidding on a project using state funding.

Supporters say the provision levels the playing field between union and non-union contractors. Opponents say the language is yet another way lawmakers are hurting cities' ability to do what's best for their residents and would likely be found unconstitutional.

The Ohio House and Senate have passed companion bills designed to wipe out rules in Cleveland, Akron and elsewhere requiring that a certain amount of local workers be hired for large, publicly funded construction projects.

Supporters say

Local hiring: Senate Bill 152 would ban local laws requiring a portion of construction workers be hired locally.

The bill's supporters, including the Ohio Contractors Association, say the quotes make it harder for contractors to hire the best workers and disadvantage Ohio companies. Out-of-state companies don't have to meet residency quotas, which has become an issue in Southwest Ohio where companies can hire workers from Kentucky.

Project labor agreements: Project labor agreements are pre-hire agreements that set the terms for hiring, time line for completion, method for resolving disputes, and other factors that might delay or damage a project for all contractors on the project.

Project labor agreements are optional, but language added to the bill Tuesday would prevent cities from requiring them for state-funded projects. Rep. Ron Hood, the Ashville Republican who sponsored the amendment, said the change will ensure projects go to the lowest, most responsible bid.

Opponents say

Local hiring: Cleveland, Akron, and other cities already opposed the bill. Cleveland's "Fannie Lewis" law, named after the late Cleveland city councilwoman, requires local residents perform 20 percent of work on all city construction projects that cost $100,000 or more. Akron requires contractors bidding on its $1.4 billion sewer project to hire half of their workers locally by 2018.

Cleveland officials have said the quotas ensure there is work for people in job training or apprenticeship programs.

Project labor agreements: Rep. Nick Celebrezze, a Parma Democrat, said the agreements protect skilled workers and ensure projects are completed on time. Celebrezze said Goodyear, Honda, and other companies use private sector project labor agreements because they are beneficial to the developer.

"We hear from the majority all the time that government should be run more like a business," Celebrezze said. "Well, here's our chance."

The Ohio Supreme Court in 2002 struck down a law banning project labor agreements. House Minority Leader Fred Strahorn, a Dayton Democrat, said Senate Bill 152 would likely be unconstitutional and violate cities' home rule authority.

Strahorn said cities should be allowed to factor in other attributes while bidding out projects and might not always want to go with the "lowest common denominator."

"We are doing thing after thing in Columbus to make it harder for cities and make it harder for people to get ahead and now we want to interfere with local folks handling their own local issue that we've exacerbated," Strahorn said.

Next steps

Senate Bill 152 cleared a House committee Tuesday and could receive a full House vote as early as Wednesday. If passed by the House, the Senate will need to agree to the changes before it can go to Gov. John Kasich.

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  • Latest AIA News & Information
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  • Legislative Issues

    AIA Ohio’s Legislative affairs program provides information and leadership through advocacy and monitoring of legislation and regulations at the state level.  By collaborating with allied professionals, industry representatives, code officials, and state and local representatives, AIA Ohio strives to build strategic alliances to address issues of public health, safety and welfate, design excellence and in advancing the quality of life through the built environment.

    As advocates of innovative approaches to legislation, AIA Ohio advances state regulations that benefit the practice of architecture and promotes good design that positively affects the quality of life of for all citizens of Ohio. Through our efforts, AIA Ohio works to educate the public and legislators on a wide facet of issues relating to architecture including:

    • Qualification Based Selection
    • Historic Preservation
    • Sustainable Design
    • Building Code development and regulation
    • Statute of repose

    Working through our highly qualified staff and experienced membership, AIA Ohio proposes regulations, positions architects as leaders, and tracks and responds to legislation that benefits both architects and users of the built environment alike. Additionally, through our Political Action Committee, we strive to support legislation, and allies in the legislature, that advances the needs of our members.

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