Senate Activity For Tuesday, February 2, 2010

COMMITTEE HEARINGS

Energy & Public Utilities

SB 223

ENERGY LOANS (Stewart, J.) To expand special improvement district energy improvement projects and to expand the municipal solar energy revolving loan program law to include alternative energy. Full Text (CONTINUED; 1st Hearing-Sponsor)

Sponsor Sen. Jimmy Stewart said the bill, which comes at the request of the Athens city council expands a program that allows municipalities to create a revolving loan fund used to finance the installation of solar panels on residential property "to include other various types of alternative energy, including wind, geothermal and weatherization projects."

"To establish an alternative energy revolving loan fund a municipality must first seek initial startup (seed) money. This funding can come from a variety of sources including federal grants, bonds or private donations," he said. "After the initial seed funding is in place, the municipality would then establish a Special Energy Improvement District, which would allow residents to repay their loan through a special assessment on their property taxes."

In response to questions from Sen. Ray Miller and Chairman Widener, the sponsor said there are limited criteria involved in the program and city councils would determine the parameters.

Noting that a third of the panel had already signed up as cosponsors, the chairman asked that any objections to the measure be voiced. "Otherwise be prepared to move that bill along," he said.

HB 113

SCHOOL ENERGY USE (Foley) To same manner as for energy conservation measures, to enter into installment contracts subject to specified terms of payment, to provide that energy conservation installment contracts are subject to those same terms, and to establish a two-tiered, three-year renewable energy schools pilot program that creates a process for schools to obtain a supply of electricity generated from wind, geothermal, or solar resources. Full Text (CONTINUED; 1st Hearing-Sponsor)

Reps. Foley and Blessing delivered sponsor testimony, with Rep. Foley saying the bill would "allow our public schools to be leaders in pushing forward a new green economy while saving costs through renewable energy implementation on campuses across the state."

"The bill does two major things. First, it would remove the barriers for installing renewable energy systems in schools by allowing school boards to implement new onsite renewable energy generating measures," Rep. Foley said. "Most important to a new green economy and our schools, however, is the creation of a two-tiered program wherein school districts with 5,000 to 10,000 students would be asked to generate 250 kilowatts of energy through a renewable energy system. Those districts with more than 10,000 students would be required to generate 500 kilowatts."

"This process begins with a request for proposals, where these 71 districts would seek plans for renewable energy generation systems that would meet the above kilowatt requirements," he added. If the districts aren't satisfied that they could gain economic benefits over a 30-year period they are not required to move forward beyond the RFP stage.

Sen. Schaffer said he is concerned about placing another mandate on schools. Reps. Foley and Blessing said the only mandate would be to complete the RFP process, the cost of which would be minimal and take little time.

Chairman Widener suggested the sponsors consider changing the program to an incentive involving the Ohio School Facilities Commission to allay any concerns among local school officials over "unfunded mandates."

Governor's Appointments: The panel voted to recommend full Senate approval of the appointments of Brian Morley, Jeffrey Jacobson and James Joyce.

State & Local Government & Veterans Affairs

HB 48

MILITARY LEAVE (Ujvagi) To provide two weeks of leave for any employee who is the spouse or parent of a member of the uniformed services who is called to active duty or is injured, wounded, or hospitalized while serving in a combat zone. Full Text (SCHEDULED BUT NOT HEARD; 1st Hearing-Sponsor)

SB 218

TOWNSHIP ZONING (Schaffer) To codify federal restrictions on local zoning of amateur station antenna structures thereby preserving amateur radio service communications as a Homeland Security resource and to place the burden of proof for compliance on the zoning authority. Full Text (CONTINUED; 1st Hearing-Sponsor)

Sen. Schaffer said his bill would protect amateur radio as a resource to Ohioans.

"In an emergency, communications can be disrupted," he said. "Phone lines can fail and cell phone communications can be damaged or flooded with calls of people who are attempting to call their loved ones to see if they are OK."

Amateur radio operators are able to coordinate emergency response efforts by using their personal time, equipment and expertise, the senator said.

The Federal Communications Commission acknowledged the importance of amateur radio when it passed a federal regulation requiring local governments to afford "reasonable accommodation" for amateur radio antennas and to impose the "minimum practicable" amount of regulation on the erection of antennas.

"Though not identical, this legislation essentially mirrors the federal law," Mr. Schaffer said. It provides guidelines for a reasonable height of 75 feet for antennas, and it requires local entities to bear the burden of providing the reasonableness of their decisions.

"This will help us streamline the process for settling disputes between radio operators and local governments," he said.

Sen. Sawyer also testified in favor of the bill. He cited examples of times when amateur radio operators saved the day when emergency situations had destroyed traditional means of communication.

"Reports indicate that, for the period from November 2008 through October 2009, Ohio radio amateurs volunteered nearly 42,000 hours of service to training, public service and emergency operations," he said.

HB 260

ELECTION LAWS (Stewart, D.) To revise the Election Law. Full Text (CONTINUED; 1st Hearing-Sponsor)

Rep. Dan Stewart said his bill is the result of extended efforts to determine how to improve Ohio's voting procedures.

The legislation creates an opportunity for secure electronic voter registration and updates to streamline the registration process for voters who visit a National Voter Registration Act-designated agency, such as the department of health or the bureau of motor vehicles. Residents may also change the record of their address in the same manner, the senator said.

Regardless of what method Ohioans use to vote, all would be required to affirm their identity with a document that includes date of birth, a signature and either the last four digits of their social security number or their driver's license number, he said.

The bill would also standardize the absentee voting period to 28 days for both in-person absentee and traditional absentee voting. In-person absentee voting would be closed at noon the Monday prior to Election Day.

Additionally, he said the bill would: protect voting rights; cut costs and ease local burdens; and, tackle provisional ballot complications.

Rep. Stewart said he would like to have this legislation passed prior to the May primary election so some of the kinks can be worked out in time for the November general election.

Sen. Fedor asked if the there was any interest in vote centers during the planning process that led to the bill. Mr. Stewart said vote centers could be an opportunity for cost savings.

"I think that we found some level of potential compromise," he said. "We'd love to have the Cadillac system in voting but we also know that the counties are facing hard times.

"Some of these boards are only two people, and we understand that for every dollar we take away ... we take away from other county services. ... We understand the limitations that we have in dollars out there," the sponsor said. "Vote centers may be a way to save some costs to make sure that we have convenient (operations for voters)."

Sen. Miller expressed concern about voter participation.

"We make all of these positive changes and then people still don't register and vote at the level that we would like to seem them," Sen. Miller said.

Rep. Stewart said he understood the senator's concern and frustration.

"What we want to do is make voting easy on the voter without reducing security or creating a feeling in the public there's some fraud involved," the sponsor said. "When you touch state government you should be offered to register or change your address. There should be no problem with that because it is a secure way."

Sen. Turner asked about concerns related to registering high school students to vote. Mr. Stewart said some members do not think all high school students understand government well enough.

"I think it's a smart thing to do," he said. "I think that they'll feel proud that they are engaged in this system."

Chairman Hughes asked about the ability for a person to register to vote by mail with a fictitious name and vote absentee never having to provide proof of identity. Rep. Stewart said he had no specific answer on how this bill would address that. He said a voter must provide a drivers license and signature at some point in the process.

SB 191

CAMPAIGN CONTRIBUTIONS (Schuring) To require each campaign committee that receives a contribution from an individual that exceeds $100 to identify the individual's employer on the campaign committee's campaign finance statements and to require an individual who makes a contribution exceeding $100 to a campaign committee to provide the name of the individual's employer to the campaign committee at the time the contribution is made. Full Text (CONTINUED (No testimony); 3rd Hearing-All testimony)

SB 95

DOG BREEDING (Hughes, Cates) To establish licensing requirements and standards of care for certain dog breeding kennels, dog intermediaries, and animal rescues for dogs. Full Text (CONTINUED-SUBSTITUTE; 3rd Hearing-All testimony-Possible substitute)

The committee accepted a substitute bill that addressed concerns voiced by previous witnesses. Several additional witnesses testified in opposition to the bill.

Polly Britton, legislative agent for the Ohio Association of Animal Owners, said the Department of Taxation classifies dogs as agriculture in the Ohio Revised Code. She put forth the question of whether breeders of other agricultural animals would tolerate such guidelines as those presented in the bill.

Ms. Britton said she was also in attendance to convey the opposition of the Mount Hope Auction, which sponsors Mount Hope Swap days, a swap/flea market offering dogs for sale or trade.

Sen. Stewart asked if the legislature should make an effort to address bad operators. The witness said commercial dog breeders are willing to be regulated but not in the manner laid out in the bill. She suggested a "total rewrite" of the bill.

Ms. Britton said the bill should be directed at problem people instead of being all-inclusive. Hobby and show breeders should be removed from the legislation, and the bill should be focused on high-volume breeders, she said.

Chairman Hughes asked Ms. Britton if Ohio has a puppy mill problem. The senator asked the witness multiple times to provide a yes or no answer, to which she ultimately responded she could not. She said there is no such thing as a puppy mill.

"I strongly disagree with you," Mr. Hughes said. He also received confirmation from Ms. Britton that dogs should and do have minimum standards provided in the ORC, and he followed up by asking why, therefore, does the state have a bad breeder problem.

The witness said the state has a problem with untrained humane agents, a matter that would be addressed in other pending legislation (HB 175), on which Ms. Britton also has testified.

Ms. Britton referred to the bill as "an agenda-driven bill" and concluded her testimony by saying "Senate Bill 95 couldn't be any more of an animal rights bill if it had HSUS (Humane Society of the United States) stamped all over it."

Chairman Hughes asked the witness to elaborate on her statement certain parties would profit from the bill. After Ms. Britton provided examples, some of which she called "rumors" and none of which she said she said she has verified, the chairman thanked her for what he called "testimony based on assumptions."

Harold Neuhart testified on behalf of the Ohio Professional Dog Breeders Association. He said he supports reasonable legislation to regulate dog breeders, but the bill is not reasonable legislation.

Mr. Neuhart provided examples of the cost a breeder would incur to establish the space and exercise requirements the bill calls for along with the cost of fees for application, registration and veterinary care.

"This bill will put most of our breeders, including myself, out of business.

American Canine Association president Bob Yarnall said the bill "would give lifetime criminal charges for any paperwork errors." He also said the bill should look more like Issue 2, which set livestock care regulations. Additionally, Mr. Yarnall said he thinks rescue dogs should be included in the legislation.

"Everyone should be proud to be inspected and know what the regulations are," he said.

The witness said because animal shelters and humane societies are not included in the legislation, the bill would allow dogs to be seized from a breeder that does not meet the requirements and be taken to a shelter that also does not meet the requirements.

Norma Bennett Woolfe, on behalf of the Ohio Valley Dog Owners Inc., said the bill has a major impact on hobby and performance dog breeders.

"Current Language in Section 955.02 allows hobby and performance dog breeders to produce occasional litters without buying a kennel license," she said. The bill changes the language to cover anyone who keeps adult dogs "for the purpose of breeding."

Because many owners keep adult dogs intact for various reasons, and because it is difficult to prove an intact dog is not being kept for the purpose of breeding, the bill would require anyone with one intact dog to buy a kennel license, Ms. Woolfe said. That license is five times the cost of an individual dog license.

The witness also offered United States Department of Agriculture standards as examples regulations that work.

Proponents of McKenzie's Law, which addresses puppy mills, urged the committee to consider replacing the current bill with this one named for a former puppy mill dog.

Committee members asked all witnesses to submit suggestions for improving the bill in writing.

Insurance, Commerce & Labor

SB 98

PHYSICIAN DESIGNATIONS (Patton) To establish standards for physician designations by health care insurers. Full Text (CONTINUED; 2nd Hearing-Proponent)

Jeff Smith, government relations director for the Ohio State Medical Association, spoke in support of the measure, saying it stems from a New York legal settlement with insurers that requires them to "fully disclose to consumers and physicians all aspects of their ranking systems. The standards were developed in consultation with the OSMA's state counterpart, the Medical Society of the State of New York and the OSMA's national affiliate, the American Medical Association."

Among other things, Mr. Smith said, the New York settlement requires insurers to: ensure rankings are not based solely on cost; use national standards to measure quality and cost efficiency; disclose how program is designed and doctors are ranked; and nominate and pay for independent ratings examiners.

Along with supporting the legislation, Mr. Smith said his group believes the Department of Insurance and Attorney General's office could also administratively pursue rules on doctor rankings.

Thus far, only Colorado has followed New York's lead and codified regulations related to the 2007 settlement, Mr. Smith said.

Dr. John Bastulli also relayed support for the bill in written testimony. "This legislation would prevent health insurance companies from ranking physicians based solely on specific criteria to persuade a consumer to choose one physician over another," he said. "Under this designation, the designations would be made based on cost efficiency, quality of care or clinical experience and it would establish standards for the physician designations. If passed, Ohio will be on the forefront of implementing important new policy that promotes accurate, safe and effective health care transparency for everyone."

HB 300

INSURANCE AGENTS (Dyer, Hottinger) To make changes to the law governing the licensure and regulation of insurance agents and certain insurance-related taxes. Full Text (CONTINUED; 3rd Hearing-All testimony)

Doug Anderson, chief policy officer of the Department of Insurance, explained an amendment sought by the administration to extend coverage for laid-off workers under the STATE'S Mini-COBRA program, under which the continuation insurance coverage was already lengthened from six to 12 months during this legislative session.

The administration, he said, expects the federal COBRA program benefits to be extended again by Congress. Under the amendment, which would apply prospectively on or after the effective date of the bill and includes an emergency clause, Ohio's Mini-Cobra benefits would be extended from 12 to 18 months.

Chairman Buehrer and Sen. Faber expressed concerns about the proposal's impacts on employer costs and administrative burdens. The chairman questioned why the state would extend continuation coverage to 18 months when the federal government only plans an extension from 12 to 15 months.

While acknowledging the agency had heard similar concerns from employer groups, Mr. Anderson said, "We do think it's a good idea that workers have continuation coverage for 18 months" but are willing to discuss variations to move the process forward.

Sen. Faber told Mr. Anderson that ODI should try and work out a compromise with employer stakeholder groups.

Faber urged the agency to work with stakeholders and try and reach a compromise regarding the length of the continuation coverage and its permanent nature in state law.

The Ohio Bail Agents Association submitted written testimony in support of the bill, which the group's president Charles "Eddie" Miller said "makes significant changes that will strengthen the professionalism of the bail industry and streamline the judicial process."

SB 133

CANCER MEDICATIONS (Gillmor) Regarding health insurance coverage for orally administered cancer medications and the procedures insured persons are required or permitted to use in acquiring certain non-self-injectable and compounded medications. Full Text (CONTINUED; 1st Hearing-Sponsor)

Sen. Gillmor said her bill is "aimed at ensuring cancer patients receive the best quality care without deterrents. The bill addresses two separate issues that more and more cancer patients are facing every day."

"First, this legislation will address an out-of-pocket disparity between chemotherapy that is administered intravenously and chemotherapy that comes in the form of a pill," she said. While IV drugs are generally included in a medical visit billing, the newer pill alternatives tend to fall under pharmacy benefits that have higher co-pays or co-insurance costs.

The bill, she said, "would ensure that oral chemotherapy is not treated on a less favorable basis than infused chemotherapy agents that are administered in a physician's office or a hospital."

Additionally, Sen. Gillmor said her bill "addresses a patient safety issue relating to the transportation of oncologic and biologic drugs." She described a practice called "brown-bagging," in which patients are required to have those fragile drugs shipped to pharmacies or their homes.

"My bill would prohibit insurance companies from requiring a patient to directly receive or obtain their dangerous, non-self-administrable chemotherapy and biologic drugs from a retail pharmacy or mail-order pharmacy," she said. "I want to ensure that thes fragile and complex drugs are properly stored and transported by professionals to reduce the risk that a patient will receive a treatment that has lost some of its effectiveness or has become potentially harmful."

Chairman Buehrer said Sen. Ray Miller has similar legislation pending, but was not prepared to testify on his bill as of Tuesday.

HB 185

HEALTH CARE CONTRACTS (DeGeeter, Book) To specify that a material amendment to a health care contract does not become part of the contract unless agreed upon by both parties. Full Text (CONTINUED; 2nd Hearing-Proponent)

Tim Maglione, OSMA senior director of government relations, said the bill would "make it clear that proposed contract amendments between health care providers and contracting entities do not become effective unless there is mutual assent to the proposed changes." The measure, a follow-up to legislation passed last session (HB125, 127^th General Assembly), comes in response attempts by insurers to use "crafty legal arguments in their health care contracts to force physicians to continue to accept material amendments of adhesion - take-it-or-leave-it contract amendments," he said.

Chairman Buehrer, saying he expected insurers to argue that their contracts were within the scope of the new law, asked if OSMA had considered going to court over the matter. Mr. Maglione said his group preferred a quick legislative fix over costly litigation.

Sen. Faber said he recalled floor speeches on the prior bill that stressed its intention was to put a halt to unilaterally forced contract changes.

SCR 23

AUTO RETIREES (Cafaro) To urge the President of the United States, the Secretary of the Treasury, the head of the President's Auto Task Force, and the members of the United States Congress to treat all of the General Motors-Delphi retirees fairly and equitably and provide for the full earned pensions and other post employment benefits in the same manner for all groups regardless of their representation. Full Text (CONTINUED; 2nd Hearing-All testimony)

Bruce Gump, representing the Delphi Salaried Retirees Association, spoke in support of the resolution and explained the circumstanced behind what he described as salaried employees of bankrupt Delphi being "discarded like yesterday's trash" compared to members of the United Auto Workers after the collapse of the auto industry and subsequent federal bailout.

"Members of the UAW were fully protected in a mediated settlement between the Auto Task Force, GM, Delphi and the UAW. Their pension plan remained with GM and it was brought up to full funding, or "topped up," using capital provided by the U.S. Treasury even though in Chapter 11 bankruptcy, those contracts would have been made voice," he said. "The issue is that in this situation, various worker groups have been treated differently by the U.S. government."

"All we ask for is fair and equitable treatment for all worker groups in the auto industry rescue," Mr. Gump said.

In response to a question from the chair, the witness said the "equity" would cost the federal government $600-700 million.

Milan Dragojevic, a Delphi hourly retiree, said three worker groups that have been impacted by the bankruptcy have all been affected in different ways. "Our UAW counterparts have fared much better, not seeing a reduction in pensions, they will not experience the drastic reduction in health care either. So as you can see all parties were not treated the same even though we had all worked for the same employer, in many cases we did like work, and were given the same promises.

Governor's Appointments: The panel recommended full Senate confirmation on the appointments of Edward Aube, William Briggs, Cary Cain and Lori Kiko.

Education

SB 192

SCHOOL TRANSPORTATION EMPLOYEES (Cates, Seitz) To permit non-Civil Service school district boards to terminate positions of district transportation employees for reasons of economy and efficiency and to contract with independent agents to provide transportation services as long as certain conditions are satisfied. Full Text (CONTINUED; 2nd Hearing-All testimony)

Mike Ruth, a vice president for FirstGroup America, spoke in favor of the bill. He said his company, headquartered in Cincinnati, is the parent company of First Student, which serves numerous Ohio school districts.

"We firmly believe that every effort should be made to help school districts maximize resources in the classroom and that removing the choice of outsourcing to a licensed, qualified contractor would severely limit the options of Ohio's school districts," he said.

The witness said by allowing districts to contract transportation, they can increase safety and decrease costs. The resulting savings allow districts to use that money elsewhere in the school.

Mr. Ruth said the bill addresses language in the budget corrections bill (HB 1), which eliminated the opportunity for local and exempted village school districts to contract bus service, while allowing city school districts to do so.

"Senate Bill 192 is crucial for both the continued development and growth of Ohio schools and the ability for all school districts to adapt to changing conditions and circumstances," he said. "Taking away the district's right to choose where and how to allocate their resources for transportation services is not only a short-sighted decision, but also one that is detrimental to the future of Ohio's educational system."

Sen. Sawyer asked if there might be an economic advantage in having a critical mass that would be large enough to use an organization such as First Student. Mr. Ruth said the savings hold consistent for districts regardless of their size. He added, sometimes multiple districts will go in together on a transportation contract.

Sen. Morano asked what First Student's policies and procedures in protecting the students are. The witness said there are federal mandates for criminal background checks and also state guidelines.

"In most cases our requirements are over and above those requirements," he said.

Sen. Niehaus asked how background checks compare to those done for school district transportation employees. Mr. Ruth said at the very minimum they are the same requirements of districts.

Chairman Cates asked, if the current predicament caused by the budget bill is not reversed, what impact that would have on First Student as far as choosing to maintain its location in Ohio. Mr. Ruth said that question would be better suited to his CEO, but offered an opinion.

"We are firmly committed to Ohio and the Ohio marketplace," he said. "We would have to look at that long-term decision" if this legislation is not passed.

Governor's Appointments: The committee recommended Senate confirmation of the appointments of Jerome Brockway and Charles Kramer.

Finance & Financial Institutions

SB 197

FORECLOSURE MEDIATION (Jones) To require courts to establish and operate programs of mandatory foreclosure mediation in non-tax foreclosure actions on occupied residential properties and to establish procedures for the operation of those foreclosure mediation programs. Full Text (CONTINUED (See separate story); 4th Hearing-All testimony)

SB 214

MEDICAL SERVICES (Carey, Miller, D.) To revise the waiting list provisions of the PASSPORT and Assisted Living programs, to require the Director of Budget and Management to make certain cash transfers and expenditure authorizations regarding long-term care budget services, to revise the law governing the collection of long-term care facilities' Medicaid debts, and to revise the law governing the reasons for denying a Certificate of Need application. Full Text (CONTINUED-SUBSTITUTE-AMENDED; 4th Hearing-No testimony-Possible amendments, substitute & vote)

The committee adopted a substitute bill that Chairman Carey said would allow, rather than require, OBM to transfer funds necessary to implement the measure. However, the revised version includes intent language that would require the funds transfer starting in fiscal years 2012 and 2013, he added.

The substitute bill also includes the PACE program in the legislation, he said.

The panel also adopted an amendment from Sen. Widener, who said it would allow a non-profit hospital in Madison County to sell their beds to a facility in an adjacent county. The language would be limited to the particular situation, he explained.