TUITION TRUST PROGRAM DEFICIT PROJECTION BALLOONS TO $321 MILLION FOR 2014; LAWMAKERS FAVOR SUSPENDING SALES

The only college savings program administered by the Ohio Tuition Trust Authority that is backed by state funds appears heading for at least a temporary moratorium. After the OTTA board accepted an actuarial valuation report that projected a $321 million deficit in the Guaranteed Savings Fund by 2014, lawmakers on the panel and trust officials said a moratorium on sales of the credits appeared likely and could be implemented as soon as next month.

The deficit quadrupled and moved up five years from last year's actuarial report, which for the first time projected a deficit - at $70 million in 2019. The latest actuarial report from Milliman USA is based on new assumptions that tuition costs will go up 16.24% in fiscal year 2004 and 10% annually thereafter, and that the fund will realize a 7% annual growth rate. The tuition increases, which soared in the past two years after caps were removed and planned funding increases for colleges and universities were cut by the Legislature, had the most impact on the new projections, accounting for $174.3 million of the estimated deficit.

Given that among the few options other than halting sales of the credits is increased funding from the General Assembly, at least a temporary moratorium appears likely when the board meets next month. Among the options under consideration according to a legislative source is a halt to new investor sales in 30 days followed by a complete halt to sales at the end of the year, but OTTA staff said Wednesday they had not finalized a recommendation.

However, OTTA Director Jacqueline Williams said of a potential halt to the program fund, which currently is valued at about $770 million, "There aren't many options left for the board to exercise."

"Clearly this has some implications on what we do with the plan. We don't like the fact that we're building a liability the state will be responsible for," Ms. Williams said, noting the board had increased the cost of the fund tuition units and had taken other steps to shore up the program. "Obviously, increasing the cost of the units is not going to buy us out of the deficit."

Senator Robert Gardner (R-Madison), an OTTA board member, sponsored an amendment to an education accountability measure (HB 5) that gave the board authority to stop the guaranteed program if necessary. "I wanted to make sure this thing didn't go belly up," he said, adding of the board's actions to salvage the program thus far: "If that doesn't work out, we're going to have to shut it down."

"I would be the first one to vote for a moratorium for six months or a year" if need be until the economy stabilizes, Senator Gardner said.

Rep. George Distel (D-Conneaut), another board member, said Wednesday the problems were no surprise given the economic climate and high tuition increases. The lawmaker said he would support a moratorium. "To protect the taxpayers of the state of Ohio we need to take this action," he said.

Rep. Scott Oelslager (R-Canton) said a halt to the program had to be considered an option, but he noted an upside for investors. "No one is going to lose any investment," he said, adding that since the deficit isn't projected for several years, the markets could rebound and the program could be salvaged in the long term.

Ms. Williams has said she would prefer that any moratorium for the guaranteed program, one of 17 college savings options administered by OTTA, should be temporary.

In other business Wednesday, OTTA approved the development of a conservative investment program by Putnam Investments, which manages all of the other college savings plans overseen by the authority.

HOUSE PANEL APPROVES CONTROVERSIAL SPECIALTY HOSPITAL BILL; FLOOR VOTE SET FOR THURSDAY

A divided House Health Committee early Thursday morning approved legislation (HB 71) that would block the construction of some specialty hospitals for a period of time while requiring doctors with a financial interest in the facilities to disclose that relationship if they refer patients to those health centers.

The 14-5 vote came after the committee adopted a substitute bill and a handful of amendments that were the subject of discussion for several hours on Wednesday and early Thursday. The panel, which convened in mid-afternoon, voted on the bill about 1:30 a.m. The proposal is scheduled for a vote on the House floor Thursday afternoon.

The measure, as amended in committee, allows existing specialty hospitals to continue operating and also allows construction of additional facilities as long as they had filed a letter of intent to build with the Ohio Department of Health by September 15. In order to ensure that parties are serious about moving forward, the bill requires filers building a new facility to obtain all necessary building permits within a year of the filing. Those seeking to convert an existing building would need to secure complete financing within 120 days of the filing.

Those who have not submitted letters would be prohibited from building such a facility for two years, during which time a study committee will review the subject and other issues in more detail.

Among the study committee's assignments is a review of whether certificate of need (CON) should be reinstated across Ohio. Just before the committee was to vote, Rep. Tyrone Yates (D-Cincinnati) offered an amendment that would have reinstated CON. A motion to table was the amendment defeated. After another short caucus break and comments suggesting that the matter should be discussed in more detail, Mr. Yates opted to withdraw the proposal.

Speaker Larry Householder (R-Glenford), who discussed the matter with Mr. Yates during the break, said after the committee that while there may have been sufficient support on the committee for the amendment, its inclusion likely would have resulted in the bill's defeat.

The study committee, which will include industry, hospital, physician, government administration and legislative representatives, is directed to issue its report six months before the conclusion of the 24 month moratorium. It will also report on:

--the effects on the state's health care system of physician ownership in for-profit special hospitals;

--the potential for requiring specialty hospitals to provide a certain amount of care to indigent persons;

--the feasibility of requiring physicians planning to establish specialty hospitals to do so in collaboration with a community hospital, and;

--the possibility of creating a fund to subsidize high-cost emergency and trauma care for the insured.

"Whether specialty hospitals are going to work in this state or not is yet to be determined, and their impact on community hospitals is yet to be determined," Mr. Householder said. "So what we really need is a window of opportunity for all of us to step back and let the system work."

The bill also prohibits community hospitals from denying admitting privileges to physicians solely because they have a financial interest in a specialty hospital. That language - termed "economic credentialing lite" by amendment sponsor Rep. Lynn Olman (R-Maumee) - more narrowly addresses the matter than a similar proposal from Rep. Michelle Schneider (R-Cincinnati) that was defeated.

It further requires the "grandfathered" physicians making self-referrals to secure from their patients a signed document in which they acknowledge they have been informed of the doctor's vested interest. The requirement applies only to patients being referred for inpatient services.

The committee also adopted language that specify that long-term acute care facilities are not considered special hospitals and exempts the Dayton Heart Hospital from the bill's requirements, largely because it also provides emergency room and obstetrics services.

Mr. Yates also offered but later withdrew an amendment that would have added a public interest representative to hospital governing bodies. Chairman Greg Jolivette (R-Hamilton) said he would work on that issue with Mr. Yates in the future.

STATE LEADERS, STAKEHOLDERS WELCOME BREAKTHROUGH ON DISCOUNT PRESCRIPTION DRUG TALKS

Democratic and Republican state leaders Wednesday welcomed a breakthrough in discussions between a labor-led ballot issue coalition and major pharmaceutical companies that is expected to result in a statewide prescription drug discount program for senior citizens and the uninsured. One legislative leader said he is committed to getting the compromise placed into law as quickly as possible.

The program will entail discounts of between 25% and 40% for qualified citizens. The Coalition for Affordable Prescription Drugs and the Pharmaceutical Research and Manufacturers of America are to release details on the plan later this week. AFL-CIO President Bill Burga said the coalition will announce the plan at a 2 p.m. Thursday news conference and a representative of Heinz Philanthropies will provide information about technical aspects of the agreement. The proposal will require legislative action, although House and Senate leaders were not sure Wednesday exactly what that might entail.

PhRMA spokeswoman Jenny Camper said a key difference in the plan compared to discount cards already offered by the individual drug makers will be eligibility. "This is probably going to be a card that widens the pool of eligibility for seniors and the uninsured," she said. "It kind of depends on the status of your insurance situation."

Both groups had been meeting over the last few months to try and reach a deal pending a statewide ballot issue that mirrored a proposal (SB 14) sponsored by Senator Robert Hagan (D-Youngstown), which would have required the state to leverage its purchasing power to negotiate lower drug prices. Legislative leaders had given the group a few weeks before moving on the Democrat's proposal or another alternative, and last week some progress in the talks had been noted.

Senate President Doug White (R-Manchester), Speaker Larry Householder (R-Glenford), Senator Hagan, Governor Bob Taft, who has been pushing for a discount "gateway" program based on the Golden Buckeye Card, and other leaders welcomed the developments. Most judgments, however, were reserved until further details become available.

Senator White pledged to give the drug proposal "expeditious" consideration in the Senate, although he pointed out that the agreement must represent the best interests of the public and be acceptable to all parties. Mr. White said he hasn't seen details of the agreement, but said once it is received it will be forwarded to the Legislative Service Commission to be put into bill form. He said that "unless something jumps out of the cake in the next few weeks," he would like to have the measure enacted into law by year's end.

Senator White said of the apparent compromise, "I'm pleased when citizens can come together and reach agreement...I'm very hopeful we can get it put into place. Both sides believe it's very beneficial to the people of Ohio." Senator White concluded that he is "committed to very expeditious action," but cautioned, "we have yet to see what crawls out of the bowl."

Governor Taft, while noting that he had not seen any document detailing the deal, said it is "very encouraging" that the sides have come to an agreement. He said he wants to do everything he can to help senior citizens and low-income Ohioans purchase their prescriptions, adding that he will be formally unveiling the Golden Buckeye Card discount program he has championed on Monday. He said the two programs can work together. "This is another step we can take to help our seniors," he said of the negotiated plan.

Senator Hagan, who has consistently pushed for legislative action regarding prescription drugs, also said he's pleased with the agreement. "The threat of a ballot issue was enough to bring them to the table," he said of the pharmaceutical manufacturers.

Speaker Householder said he wanted to see more information on the tentative agreement before endorsing it, adding he had only had a "brief briefing" on the issue. "The devil's in the details and we want to take a look at it," he said. "We're very supportive of the fact that it looks like they've come together on something."

Regardless of the agreement, the speaker said the "huge problem" of high prescription drug costs and the impact on seniors needs to be addressed soon by the General Assembly.

Senate Minority Leader Greg DiDonato (D-Dennison) called the agreement an "historic milestone that will have tremendous far-reaching positive effects for our citizens and for generations to come."

House Minority Leader Chris Redfern (D-Catawba Island) pointed to the continued efforts of the coalition and Democratic members of the House and Senate who supported the ballot issue and deemed as a "key priority" the plan to reduce drug costs. "We then followed up, pushing for serious consideration of our prescription drug plan despite substantial resistance in the General Assembly," he said.

AARP Ohio characterized the pending program announcements as a "good beginning" but not the final solution for all citizens in need of affordable prescription medications

"Many of the most vulnerable across the state will continue to be unable to afford prescription drugs," Ohio AARP State Director Kathy Tefft-Keller said in a release. "If a drug bill is $100 a month, even with the most generous of the discounts anticipated, the consumer still would have to come up with $60, and that is more than many can afford. While the discount plans are a good beginning, Ohioans living on low, moderate or fixed incomes will continue to struggle to pay for their medicine."

SENATOR TO PROPOSE RETIREMENT SYSTEM CONSOLIDATION AMONG OTHER REFORMS

The two retirement systems that serve uniformed law enforcement officials would be consolidated into a single operation under legislation the chairman of the panel that oversees the state's retirement systems is drafting. The change, which would come in a second omnibus piece of legislation, would also move the law enforcement section of another system into the combined fund.

The consolidation language being suggested by Senator Lynn Wachtmann (R-Napoleon) would combine the Ohio Police & Fire Pension Fund, the Highway Patrol Retirement System and the Law Enforcement Division of the Public Employees Retirement System. The move, the senator said, seems to be a natural fit as lawmakers seek ways to improve retirement system operations and restore or bolster confidence in their operations.

The lawmaker acknowledged that the proposal is "a huge political hot potato," but said the time is right to undertake the discussions. Democrats on the council, however, said it is too soon to look into the matter. "We are not even there yet," Senator Teresa Fedor (D-Toledo) said of the plan. "We've got to get at the waste, fraud, abuse and corruption first."

The announcement came as the ORSC continued its review of retirement board governance, driven largely by reports of excessive spending on travel and other issues at two of the five existing systems. As a result of the reports, the State Teachers Retirement System has severed ties with its former executive director and, just Tuesday, the chair of the OPF board of directors resigned.

Senator Wachtmann said the bill likely to contain consolidation language would follow the introduction of another far-reaching bill intended to restore confidence in the systems. The first bill, he said, will address board governance and membership, accountability, budgeting, oversight and travel and ethics policies, among other things. Beyond the consolidation matter, the second bill would address service credit requirements, actuarial conditions and retiree health care.

Separately Wednesday, Governor Bob Taft reiterated his support for law changes that call for independent system audits and removal of derelict board members. He said he has asked lawmakers to get him a bill regarding these matters as soon as possible.

Senator Fedor said the legislature's committees need to have an open and honest debate on all proposals, but stressed that the best way to address many of the concerns is to grant the Inspector General the ability to investigate the systems by enacting language similar to what Governor Bob Taft line-item vetoed from the budget act (HB 95). "He is the retirees' and members' best friend," she said of the IG.

Despite those comments, Rep. Michelle Schneider (R-Cincinnati) said she prefers granting investigative authority and subpoena powers to the ORSC. Senator Fedor and Rep. John Boccieri (D-New Middletown), also an ORSC member, said they oppose giving the council that authority.

Mr. Boccieri also panned the system consolidation concept, saying the issue would be incredibly difficult to work out. "There's going to be a turf ware bigger than Michigan-Ohio State," he said. "I think there will be stark opposition to that."

Senate President Doug White (R-Manchester) said he hadn't been advised of plans to discuss consolidation, but said he expects the legislature will address retirement system issues in comprehensive legislation. "We can't deal with eight different bills on this," he said. Senator White also noted that he initially considered sending retirement system legislation to the Public Utilities Committee. Now, however, he said, the bills will go to Senator Wachtmann's Health, Human Services & Aging Committee.

Speaker Larry Householder (R-Glenford) said the House is close to unveiling legislation to address mounting concerns with the operation of the pension systems. "We would like to get it passed as quickly as possible even if it takes us coming in on unscheduled sessions," he said.

"The governor I know is pushing for a large, omnibus bill to take care of it," the speaker said. "All of us feel the same way. We want to achieve accountability and responsibility on the pension plans and the board members."

ORSC Hearing: During the ORSC meeting, the chairs of four of the five systems reviewed their operations and answered committee questions.

STRS Chair Deborah Scott said her system is developing restrictions on board-related travel policies. She said plans under consideration would limit members to three education-related trips, but said that limit would not include "due diligence" trips taken generally to inspect real estate which may be the subject of a system investment. Senator Kirk Schuring (R-Canton) said the exclusion of the real estate inspection trips is a "gaping hole" that needs to be closed.

Bob Beck, who became chairman of the OPF board Tuesday when former chairman David Harker resigned, told the panel that his system's administrative committee is also working on modifying its travel policies. Mr. Beck, whose own travel record has come into question, said the costs are legitimate because continuing education is necessary to ensure proper system management. "I'm proud of what I do," he said. "If I do it, I'm going to do it right."

Mr. Beck, president of the Cleveland Police Patrolmen's Association, said he would not heed the Fraternal Order of Police's call for his resignation. "I'm not in agreement with that," he said. "I think my work history speaks for itself. At this point, there is no reason for me to even think about resigning."

Charlie Atkins, chairman of the PERS board told the panel that the system implemented many recommendations included in a fiduciary audit performed in recent years. He noted that the system spends a total of about $15,000 on annual travel for all board members, noting that many training sessions are held in Columbus. He further cautioned the council against making significant changes regarding board composition, adding that non-voting representatives of the state auditor and attorney general bring a valuable perspective. "I think the makeup is fine," he said. "I think they do a good job."

HOUSE TO BACK OFF OF INSTITUTIONAL CLOSING PROVISION TO PASS MR/DD PROTECTION BILL; SENATE BIDS HERINGTON ADIEU

The House will agree to the removal of institutional closing language that stalled the passage of legislation (SB 4) in June to increase protections for citizens with mental retardation and developmental disabilities, Speaker Larry Householder (R-Glenford) said Wednesday.

The Senate refused to concur in House amendments to the bill and the House insisted on its amendments to force a conference committee on the issue. Conferees have yet to be named to work out the differences on the bill, sponsored by Senator Robert Spada (R-N. Royalton).

The amendment at issue was added to the bill on the floor by Rep. John Willamowski (R-Lima). It constituted the continuation of a debate over the proposed closing of the Lima Correctional Institutions and other state-operated facilities sought by Governor Bob Taft to help balance the economically squeezed budget. It's addition to the long-sought MR/DD protection bill during a long session day that preceded the summer break peeved the sponsor and other supporters of the measure, which was sidetracked for several months as a result.

With the prison closing already blocked by a local judge and the case pending appeal, Mr. Householder said House members agreed to the removal of the provision.

"We've addressed that so many times. This bill dealing with the MR/DD, we want to move forward with this," Mr. Householder said. "Our members recognize it's time to move on. Now that we've got a court decision out there...that will probably end up in the Ohio Supreme Court, there's probably enough activity on that question."

In a relatively short session Wednesday, the House unanimously passed a bill (HB 200) that updates the way county child support agencies pay for enforcement activities. Under the bill, sponsored by Rep. John Willamowski (R-Lima), a county support enforcement agency may contract with a private entity to provide service or process or compensate a sheriff for the same service. The sponsor said the bill is backed by the Ohio CSEA Directors Association and the Department of Job and Family Services.

Senate session: Senators bid farewell to Senator Leigh Herington (R-Ravenna) who resigned his 28th District seat effective Sept. 17 to pursue his candidacy for a seat on the Portage County Common Pleas Court. Senator Herington was praised by his Democratic and Republican colleagues as being a fair, but aggressive advocate for his constituents during his tenure in the Senate that began with his appointment in 1995. The term-limited senator was described as the "total package" by Senator Ray Miller (D-Columbus), who said he was a "skilled representative, skilled legislator, and skilled politician." Senator Louis Blessing (R-Cincinnati) said the senator contributed in many ways to the legislative process, but seldom received the credit he was due. The remaining ten members of the Senate Democratic caucus are scheduled to vote Thursday on a screening panel's recommendation that Senator Herington be replaced by Summit County Councilwoman Kimberly Zurz. If elected, Ms. Zurz will serve the remainder of a term that ends in December 2004.

In other business, senators rejected, by a surprisingly close vote of 19-14, the House version of legislation (SB 4) that establishes new protections for Ohio's mentally retarded and developmentally disabled citizens, including creation of a statewide registry that employers can use to perform background checks on potential employees. Senator Bob Spada (R-North Royalton) said most of the House provisions aimed at preventing abuse of vulnerable citizens were acceptable, but he objected to House language expanding the purview of a facility closing oversight committee to include nearly all state facilities, including prisons. Mr. Spada said the provision was at odds with the objective of the bill. However, Senator Eric Fingerhut (D-Cleveland) urged approval of the rewritten bill, suggesting that a closer review of facility closings ordered by a governor is merited based on previous experiences with facility closings. "The House did a good job," he said in urging approval.

In a related move, the Senate delayed acting on a measure (HB 51) dealing with probate law, but which picked up additional provisions that largely mirrored the contents of SB 4. Prior to recessing in June, the Senate placed the contents of SB 4 in HB 51 to counter the House's addition of the facility closing language to the Senate bill. Senate President Doug White (R-Manchester) said the House measure will be held pending the outcome of joint conference committee work on Senator Spada's Senate bill.

The Senate approved, without debate or dissent, House amendments to a bill modifying the procedure used to increase water rates (SB 44) and another measure (SB 55) dealing with local government health insurance, bidding requirements for certain library improvements and budgets.

CITIES TELL SUPREME COURT THAT PUCO RULES ON ELECTRIC POWER AGGREGATION VIOLATE CONSTITUTIONAL HOME RULE AUTHORITY

Three northwest Ohio cities asked the Ohio Supreme Court on Wednesday to let them jointly negotiate the purchase of electricity for their residents under constitutional home rule powers, free of regulation from the Public Utilities Commission of Ohio.

The cities of Toledo, Maumee and Oregon asked justices to overturn a PUCO decision requiring them to comply with agency rules for the aggregated purchase of power under a 1999 law intended to restructure and increase competition in the electricity industry.

One part of the law allows municipalities to aggregate the buying power of their residents by negotiating with third-party suppliers and requiring local utilities to transmit the electricity purchased over their lines.

Attorney Kerry Bruce, representing Toledo, said the municipalities are challenging the authority of the PUCO to regulate their purchases. He said the General Assembly did not restrict governmental aggregation under a similar program affecting natural gas supplies, and was silent about regulation for electricity. "The commission has interpreted that silence as a prohibition. There is no authority under statutory interpretation to take the silence of the legislature and turn it into a prohibition," he said.

Mr. Bruce contended PUCO rules require a city to go through an expensive process of voter approval for such a program, to provide a costly opt-out procedure for residents, and to comply with other regulations or face penalties. He said that while some cities may pursue aggregation under the statute, others should be able to do so under the home rule authority of the Ohio Constitution. The provision grants municipalities "authority to exercise all powers of local self-government and to adopt and enforce within their limits such local...regulations as are not in conflict with general laws."

Cities contend they have had authority since 1912 to operate their own electric power plants and transmission lines, and to contract with outside suppliers for electricity that cities then may transmit to residents. The cities argue the new law extends their authority to now buy electricity for those city residents who are not connected to city-owned power lines.

The PUCO maintains the cities want to enjoy the benefits of the 1999 restructuring law without accepting conditions that the General Assembly attached. Attorney Thomas McNamee, representing the commission, said 150 other municipalities in northern Ohio are already operating under the statute without problems. "When the General Assembly restructured the electric industry in 1999 they created a new option for everyone. Everyone can choose suppliers. Everyone can get access they never had before to the utilities' wires to deliver somebody else's power to them," he said.

Mr. McNamee said cities could exercise the option through governmental aggregation, and that the Constitution is not implicated in any respect. "The General Assembly has always controlled access to utility wires, to utility pipes. It continues to do so today. It has changed the way that happens, but it has always been a matter of state control," he said.

"There is no limitation in the statute, or the commission rules that are at issue here today, that limits cities in any respect. Everything that cities could do before the electric industry was restructured in 1999 they can continue to do today. But now they have a new option, they can bring a new benefit to their residents. They can force a utility to deliver somebody else's power to their residents. It's a benefit for everyone," Mr. McNamee said.

--Justice Terrence O'Donnell: "Are you arguing that the aggregators are providing retail electric services? (Mr. Bruce) claims they're not producing it, and they're not providing it, they're merely making the arrangement for the financial compensation to be paid to the suppliers."

--Mr. McNamee: "They're arranging for the supply, your honor."

--Mr. O'Donnell: "Your view is that arranging for the supply of it or negotiating a price for the supply of it (is) sufficient...to bring them under the commission regulation?

--Mr. McNamee: "Yes, your honor. That's the structure that the General Assembly established."

Workers' Comp-Subrogation: Separately, a class action lawsuit over an Ohio Bureau of Workers' Compensation demand that an injured worker use a financial settlement from his employer to repay state disability benefits was before the court even though justices previously ruled the subrogation statute unconstitutional. At issue was whether Cuyahoga County Common Pleas Court or the Ohio Court of Claims has jurisdiction to hear such a case.

As a result of workplace injuries, Angel Santos received $120,000 in workers' compensation disability benefits. He also pursued an intentional tort lawsuit against his employer, receiving a $500,000 settlement in 1999. The bureau sought repayment of the disability benefits under the subrogation law. While the litigation was pending, the Supreme Court in a separate case struck down the subrogation statute. Mr. Santos immediately sought and was granted class certification in common pleas court.

The bureau asked the 8th Ohio District Court of Appeals to overturn the certification, contending common pleas court did not have jurisdiction to hear Mr. Santos' case because, if successful, it would require the state to pay money damages to plaintiffs. The bureau said only the Court of Claims has jurisdiction in cases seeking such damages. The appellate court agreed with the bureau.

Mr. Santos asked the Supreme Court to overturn the appeals ruling, pointing out his suit does not seek money damages from the state but equitable dollar-for-dollar reimbursement of money improperly collected from claimants or actually spent in gaining restitution.

Attorney Craig Bashein of Cleveland, representing Mr. Santos, said the issue facing justices is the continued statutory right of individual or corporate citizens to bring an equitable action in a common pleas court seeking the return of unlawfully collected or withheld funds. "The Ohio Court of Claims Act in 1988 was amended by the Ohio Legislature to specifically provide for equitable actions to be brought in a court of common pleas," Mr. Bashein said.

Attorney Elizabeth Smith, representing the bureau, said plaintiffs incorrectly assumed they were entitled to be repaid or were entitled to restitution, and that there is no constitutional right to a double recovery.

Justice Paul Pfeifer appeared rankled over the bureau's reluctance to make repayments in view of the court's previous ruling that struck down the subrogation law. Ms. Smith said there were legal issues "that have to be flushed out in the underlying damage issue" of the case.

--Justice Pfeifer: "Who says they have to be flushed out? Does your client say that, or are you saying that?"

--Ms. Smith: "I think it's part of the burden of proof on the part of the class to prove their damages."

--Justice Pfeifer: "Has your client told you to resist payment?"

--Ms. Smith: "We've never reached the merits of any of these actions."

--Justice Pfeifer: "It's a simple question. Has your client told you to resist payment?"

--Ms. Smith: "I'm afraid at this point in time we've never gotten to that."

STATE SENDS 14th AMENDMENT RATIFICATION TO NATIONAL ARCHIVES

More than 135 years after the 14th Amendment was added to the U.S. Constitution, state officials took the final steps Wednesday to officially ratify the language that guarantees all citizens equal protection under law.

The ratification, an action taken through a measure (SJR 2) the House and Senate adopted earlier this year, makes Ohio the final state to endorse the amendment or approve a statement expressing support for its intent.

"Today's action confirms and reaffirms our commitment to equal protection under the law for all citizens, guarantees due process for all our citizens and equal opportunity for every Ohioan," said Governor Bob Taft, who delivered the resolution to officials with the national archives at a Statehouse ceremony.

Senator Mark Mallory (D-Cincinnati), the lead sponsor of the resolution, said it is appropriate that the transmission occurred on the day when the nation's constitutional convention concluded. "It is only fitting that on this day, we in Ohio recommit ourselves to the principles of justice, fairness, and equality embodied in the 14th Amendment," he said. "Today is truly a proud moment in the history of Ohio." Senator Mallory noted that the General Assembly initially ratified the amendment in 1867, but rescinded the action the following year.

The ceremony featured presentations from Messrs. Mallory and Taft, Secretary of State Ken Blackwell, Supreme Court Chief Justice Thomas Moyer and legislative leaders.

The issue of the state's previous position on the amendment was brought to lawmakers' attention by law students at the University of Cincinnati. Those students, who were recognized for their efforts, provided testimony in favor of the resolution as it moved through the General Assembly.

MEETING NOTICES

The Ohio Criminal Sentencing Commission will meet at 9:30 a.m., Thursday, Sept. 18 in the Third Floor Lobby, Ohio Supreme Court, 30 E. Broad St., Columbus.

The Agricultural Diversification Committee of the Southern Ohio Agricultural and Community Development Foundation will meet 9 a.m. Monday, Sept. 22 at 100 S. High St., Suite 208, Hillsboro.

The State Controlling Board will meet at 1:30 p.m. Monday, Sept. 22 in the North Hearing Room of the Senate Office Building in Columbus. The agenda for this meeting is available on the Gongwer web site at: www.gongwer-oh.com/garesource.html

MEETING CANCELLATION

The meeting of the Agricultural Commodity Advisory Commission scheduled for Friday, Sept. 19 has been Canceled.

SENATE ACTIVITIES FOR WEDNESDAY, SEPTEMBER 17, 2003

SENATE CALENDAR FOR THURSDAY, SEPTEMBER 18 (Session at 11 a.m.)

HCR 6 HUMAN CLONING (Reidelbach) Asks Congress to enact the Human Cloning Prohibition Act of 2003.

HB 51 PROBATE LAW (Hughes) Relative to the election by a surviving spouse, notice of admission of a will to probate, accounts of administrators and executors, distribution of estate assets, presentation of creditors' claims to distributees, dispute resolution procedures in probate court, time for presenting claims against an estate, implements the recommendations of the MR/DD Victims of Crime Task Force, and makes related changes in the law. (Informally passed on Wednesday, September 17)

Senate Rules Committee meets at 10 a.m. Thursday, September 18 in the Majority Conference Room to consider additions to the calendar. Session at 11 a.m.

INFORMALLY PASSED IN THE SENATE

HB 51 PROBATE LAW (Hughes) Relative to the election by a surviving spouse, notice of admission of a will to probate, accounts of administrators and executors, distribution of estate assets, presentation of creditors' claims to distributees, dispute resolution procedures in probate court, time for presenting claims against an estate, implements the recommendations of the MR/DD Victims of Crime Task Force, and makes related changes in the law. (Bill retains its place on the calendar)

SENATE CONCURS IN HOUSE AMENDMENTS

SB 44 WATER UTILITY CHARGES (Robert Gardner) Authorizes, subject to Public Utilities Commission approval, cost-based rate adjustments for water supplied to a waterworks utility by another waterworks utility, rate adjustment authority for a sewage disposal utility similar to the authority of a waterworks utility, and infrastructure improvement surcharges on waterworks or sewage disposal utility rates to cover specified costs association with and a return on certain plant investment. VOTE: 33-0

SB 55 PUBLIC LIBRARIES (Randy Gardner) Makes changes to the law authorizing political subdivisions to self-insure for health care benefits; revises the bidding threshold for public improvements applicable to free public libraries; eliminates the monetary restrictions on life insurance coverage offered by free public libraries to their employees while limiting procurements to group term life insurance; allows a board of library trustees to authorize its employees to use a credit card held by the library to pay for library business expenses and allows the county budget commission to waive certain requirements relating to tax budgets or estimates of contemplated revenue and expenditures in any county in which a single library receives all of the county library and local government support fund or receives all of that portion of the fund that is distributed to libraries. VOTE: 33-0

SENATE REFUSES TO CONCUR IN HOUSE AMENDMENTS

SB 4 MR/DD CRIME VICTIMS (Spada) Implements the recommendations of the MR/DD Victims of Crime Task Force; makes related changes in the law and establishes provisions regarding the possible closing of state institutional facilities for the purpose of expenditure reductions or budget cuts. VOTE: 14-19

RESIGNATION ACCEPTED IN THE SENATE

28th District: Senator Leigh Herington, Democrat, Ravenna, effective September 17, 2003.

INTRODUCED IN THE SENATE

SB 130 LOGAN COUNTY COURT JUDGESHIP (Mumper) Am. 2151 & 2301. Creates the Domestic Relations-Juvenile-Probate Division of the Logan County Court of Common Pleas, adds one judge to the Logan County Court of Common Pleas to be elected in 2004, and declares an emergency.

SENATE REFERS TO COMMITTEES

HB 85 AMBULETTE LICENSING (Raussen) HIGHWAYS & TRANSPORTATION

HB 170 COUNTY RECORDER RECORDS (Callender) JUDICIARY ON CIVIL JUSTICE

HB 179 GASOLINE THEFT (Wolpert) JUDICIARY ON CRIMINAL JUSTICE

HB 67 LINE OF CREDIT (Faber) HEALTH, HUMAN SERVICES & AGING

HB 98 PENSION FUND OPTIONS (Willamowski) HEALTH, HUMAN SERVICES & AGING

HB 120 SELF-SERVICE STORAGE FEES (Grendell) INSURANCE, COMMERCE & LABOR

HB 130 CHILD CARE POWER OF ATTORNEY (Reidelbach) JUDICIARY ON CIVIL JUSTICE

HB 126 ABORTION DRUG (Brinkman) HEALTH, HUMAN SERVICES & AGING

HB 157 4-H LICENSE PLATE (Seaver) HIGHWAYS & TRANSPORTATION

HB 161 COURT PROCEDURES (Seitz) JUDICIARY ON CIVIL JUSTICE

HB 49 CITIZENS' REWARD/COURT COSTS (Hughes) JUDICIARY ON CRIMINAL JUSTICE

HB 133 POWER SITING BOARD (Olman) PUBLIC UTILITIES

HB 6 BIOTERRORISM (J. Stewart) FINANCE & FINANCIAL INSTITUTIONS

HB 54 STUDENT DRIVER STICKERS (Collier) HIGHWAYS & TRANSPORTATION

HB 70 PEARL HARBOR HIGHWAY (Willamowski) HIGHWAYS & TRANSPORTATION

HB 11 DAY-CARE PROVIDERS (Jerse) JUDICIARY ON CRIMINAL JUSTICE

SB 103 RECREATIONAL CONSERVANCY DISTRICTS (Austria) ENERGY, NATURAL RESOURCES & ENVIRONMENT

SB 104 RETIREMENT SYSTEMS INVESTIGATION (Fedor) HEALTH, HUMAN SERVICES & AGING

SB 105 RETIREMENT SYSTEMS DISCLOSURES (Schuring) HEALTH, HUMAN SERVICES & AGING

SB 106 REAL ESTATE AGENTS (Carey) INSURANCE, COMMERCE & LABOR

SB 107 TOBACCO TAX (Miller) FINANCE & FINANCIAL INSTITUTIONS

SB 108 RAILROAD QUIET ZONES (Spada) HIGHWAYS & TRANSPORTATION

SB 109 TEACHING PERMITS (Dann) EDUCATION

SB 110 GOVERNMENT EDUCATION (Dann) EDUCATION

SB 111 MEDICAL MALPRACTICE (Fingerhut) INSURANCE, COMMERCE & LABOR

SB 112 MEDICAL MALPRACTICE (Fingerhut) INSURANCE, COMMERCE & LABOR

SB 113 MEDICAL MALPRACTICE (Fingerhut) INSURANCE, COMMERCE & LABOR

SB 114 MEDICAL MALPRACTICE (Fingerhut) INSURANCE, COMMERCE & LABOR

SB 115 PLATTING LAW (Robert Gardner) STATE & LOCAL GOVERNMENT & VETERAN'S AFFAIRS

SB 116 JOB CREATION TAX CREDIT (Spada) WAYS & MEANS & ECONOMIC DEVELOPMENT

SB 117 ELECTION PETITION FORMS (Randy Gardner) STATE & LOCAL GOVERNMENT & VETERAN'S AFFAIRS

SB 118 ATTORNEY CERTIFICATIONS (Fingerhut) JUDICIARY ON CIVIL JUSTICE

SB 119 DEMOLITION DEBRIS DISPOSAL (Dann) ENERGY, NATURAL RESOURCES & ENVIRONMENT

SB 120 SCHOOL STUDENT TESTING (Hagan) EDUCATION

SB 121 SCHOOL SANITATION (Dann) HEALTH, HUMAN SERVICES & AGING

SB 122 SCHOOL FUNDING (Dann) FINANCE & FINANCIAL INSTITUTIONS

SB 123 DRUG ADVERTISING EXPENSES (Hagan) HEALTH, HUMAN SERVICES & AGING

SB 124 HEALTH CARE IMMUNITY (Amstutz) JUDICIARY ON CIVIL JUSTICE

SB 126 RETIREMENT SYSTEM INVESTIGATIONS (Schuring) HEALTH, HUMAN SERVICES & AGING

SB 127 ERIE COUNTY COURT (Randy Gardner) JUDICIARY ON CIVIL JUSTICE

SB 128 DOG LICENSE FEES (Fedor) STATE & LOCAL GOVERNMENT & VETERAN'S AFFAIRS

SJR 9 TAX & APPROPRIATION VOTES (Jordan) FINANCE & FINANCIAL INSTITUTIONS

SCR 14 MORTGAGE INSURANCE (Dann) WAYS & MEANS & ECONOMIC DEVELOPMENT

SENATE COMMITTEE REPORTS

JUDICIARY ON CIVIL JUSTICE

Bill Continued:

SB 127 ERIE COUNTY COURT (Randy Gardner) Am. & En. 2101 & 2301. Adds one judge to the Erie County Court of Common Pleas; reallocates jurisdictional responsibilities of current judges of the Erie County Court of Common Pleas and declares an emergency.

Sponsor Gardner presented his bill, noting that a companion measure (HB 279) was introduced in the House by Rep. Chris Redfern, whose district includes Erie County. Senator Gardner said local officials and Ohio Supreme Court representatives have reached agreement on elements of the bill, specifically the jurisdictional issues, and that the county can afford a new judgeship. He explained that judges have agreed to share staff to save money and noted that a reduced demand for visiting judges will save the county money. He added, however, that he and Mr. Redfern have agreed to carry the measure so long as interested parties remain in agreement. Senator Gardner encouraged the panel to act quickly, noting that there will be an early January filing deadline for prospective candidates due to Ohio's early primary next March. He suggested the panel could add the judgeship to another judgeship bill that is pending before the committee as a way to quickly process the proposal.

EDUCATION

Bills Continued:

SB 2 TEACHING SUCCESS (Robert Gardner) Directs that the General Assembly's ongoing efforts to improve the quality of teaching in Ohio include provisions recommended by the Governor's Commission on Teaching Success. SUBSTITUTE

The substitute bill contains what were described as technical and clarifying changes. Chair Gardner said he expects work to continue on the measure with a committee vote possible in mid-October followed by a vote by the full Senate.

SB 81 PHYSICAL EDUCATION STANDARDS (Fedor) Requires the State Board of Education to propose standards and model curricula for physical education for grades kindergarten through twelve subjection to approval by concurrent resolution by both houses of the General Assembly.

Proponent testimony, as well as a slide presentation, were offered on behalf of the Ohio Association for Health, Physical Education, Recreation & Dance.

ADOPTED IN THE SENATE

SRs 924-933. Honorary resolutions.

THE SENATE ADJOURNED UNTIL 11 A.M. THURSDAY, SEPTEMBER 18, 2003 (FULL SESSION)

HOUSE ACTIVITIES FOR WEDNESDAY, SEPTEMBER 17, 2003

HOUSE CALENDAR FOR THURSDAY, SEPTEMBER 18, 2003 (Session at 1 p.m.)

HB 71 PHYSICIAN REFERRALS (Peterson) Prohibits a physician or podiatrist from making certain referrals for inpatient hospital services and makes other revisions to the law prohibiting certain referrals for designated health services.

SB 50 DOMESTIC VIOLENCE (Schuring) Enhances the penalty for domestic violence for certain repeat offenders, expands the authority for the issuance of a criminal domestic violence temporary protection order, makes other changes regarding criminal domestic violence temporary protection orders, civil domestic violence protection orders or consent agreements, and victims' bill of rights, and enhances the penalty for violating a protection order while committing a felony offense.

PASSED IN THE HOUSE

HB 200 CHILD SUPPORT (Willamowski) Allows a child support enforcement agency to contract with a private person or entity to provide service of process or to compensate a sheriff for successful service of process. VOTE: 97-0

SPEAKER'S APPOINTMENTS

Ohio Accountability Task Force: Tori Harper, Jo Ann Thatcher, and Gene Harris (public members).

INTRODUCED & REFERRED IN THE HOUSE

HB 280 LOGAN COUNTY COURT JUDGESHIP (Core) Am. 2151 & 2301. Creates the Domestic Relations-Juvenile-Probate Division of the Logan County Court of Common Pleas, adds one judge to the Logan County Court of Common Pleas to be elected in 2004, and declares an emergency. TO JUDICIARY

INTRODUCED IN THE HOUSE

HB 281 HEALTH INSURING CORPORATIONS (Martin) Am. & En. 1739, 1751, 3901 & 3999. Changes the assets that are considered to be admitted assets for purposes of meeting the statutory minimum for health insuring corporations, provides for criminal and financial penalties for persons establishing or operating unlicensed insurers, and amends provisions governing the issuance of certificates of compliance to insurers.

OFFERED & REFERRED IN THE HOUSE

HJR 10 TERM LIMIT REPEAL (Yates) Proposes constitutional amendment to eliminate the term limits and restrictions on returning to office that apply to members of the General Assembly and to members of Congress. TO STATE GOVERNMENT

HCR 25 FUNERAL SERVICE EDUCATION (Wilson) Asks the Congress to support efforts to establish National Funeral Service Education Week. TO HUMAN SERVICES

HCR 26 TEN COMMANDMENTS (Gilb) Confirms the Ten Commandments as the moral underpinning of the state government of Ohio, the laws of Ohio, and the authority of the General Assembly as the representatives of the people of Ohio. TO STATE GOVERNMENT

HOUSE REFERS TO COMMITTEES

HB 275 VETERANS' SCHOLARSHIPS (Key) FINANCE & APPROPRIATIONS

HB 276 LAKE ERIE COAST (Niehaus) ENERGY & ENVIRONMENT

HB 277 RELIGIOUS SYMBOLS (Beatty) CRIMINAL JUSTICE

HB 278 OIL & GAS DRILLING REGULATION (Niehaus) ENERGY & ENVIRONMENT

HB 279 ERIE COUNTY COURT JUDGESHIP (Redfern) JUDICIARY

HOUSE COMMITTEE REPORTS

ENERGY & ENVIRONMENT

Bill Continued:

HB 218 LAKE ERIE COAST (Grendell) Eliminates the law governing Lake Erie coastal erosion areas and makes other changes to the law governing coastal management and the control of shore erosion along Lake Erie.

The committee heard testimony from several witnesses who outlined the benefits and problems they said the bill would bring.

Opposing the bill were Jack Shaner of the Ohio Environmental Council and Larry Mitchell, president of the League of Ohio Sportsmen. Mr. Mitchell told the panel the bill would essentially eliminate the state's ability to manage and regulate use of the Lake Erie shoreline, putting control of the resource at the mercy of anyone "to destroy it or develop it." He said current state management practices are reasonable.

Mr. Shaner called the measure "a radical and all-out assault" on government's ability to protect shore. He told the panel the bill represents an attempted "land grab" of public property and infringes on property owners' rights by opening the shore to development with little or no oversight.

Rep. Tim Grendell (R-Chesterland) said the bill is designed to give landowners more control over the land on which they pay taxes. He further said lakeshore construction would be limited because owners would still be required to comply with local zoning regulations.

David Carek, president of the 2,200-member Ohio Lakefront Group, testified in support of the bill, saying it would restore the rights of lakefront property owners. He said his group's members - many of whom attended the meeting wearing shirts emblazoned with the phrase: "ODNR Get Off My Land" - want to ensure that the shoreline is protected, but also want to be able to use their land as they see fit. He said maintaining a coastal management program is important to the lake's health, but said such policies need to be administered by "reasonable minds." Mr. Carek added that his group's efforts to negotiate with ODNR officials "have fallen on deaf ears," noting that changes the agency made do not address all the significant problems. Mr. Carek, whose testimony was followed by other members of the organization, said enacting the bill would not negatively impact the public's access to the lake.

CIVIL & COMMERCIAL LAW

Bills Continued:

HB 212 PREJUDGMENT INTEREST (Seitz) Changes the rate of interest on money due under certain contracts and on judgments and makes other changes. No testimony

Sponsor Seitz said additional work is being performed, including language specifying that the tax commissioner will set the interest rate, transmit the rate to the county auditor who will then forward the information to the clerk of courts.

HB 103 MOTORCYCLE SEIZURES (Wilson) Modifies the guidelines governing seizure of a motorcycle by a law enforcement officer.

Opponent testimony was again offered by John Gilchrist on behalf of the Ohio Association of Chiefs of Police who said the substitute bill stills does not address the "core issues" that give rise to his association's opposition. He pointed to the issue of liability, explaining that the bill continues to put the burden of proof on law enforcement officers to determine the rightful owner of a motorcycle while also imposing other burdens. Mr. Gilchrist again noted that the bill's provisions may conflict with federal law, specifically a law requiring an owner to produce a valid vehicle identification number (VIN). The committee also received written opponent testimony from the Ohio State Highway Patrol and the Ohio Insurance Institute.

HB 182 PHYSICIAN LIABILITY (Flowers) Extends immunity from liability for services provided by volunteer health care professionals and workers to more health care facilities and to nonprofit referring organizations and increases the maximum allowable income of individuals who may be served by volunteers having immunity from liability.

Proponent testimony was offered by Philip Cass, CEO of the Columbus Medical Association, and Dr. Patrick Ecklar, president of the Columbus Medical Association. Mr. Cass noted that the bill, which is similar to SB 86 passed earlier by the Senate, does not change the Good Samaritan law, but is intended to apply the current law and standards to clinics and facilities where free medical care is provided, including a physician's office. In response to questions, he said one intended effect is to relieve patient flow into emergency rooms - where considerable non-emergency care is provided - by giving the uninsured, including the lower-income working uninsured - access to routine health care and post-hospital follow-up services. Dr. Ecklar said the Columbus Medical Association has provided free clinic services that are supported by the association's foundation, but that with enactment of the bill, more physicians would likely participate because they could remain in their offices while delivering care. He noted that the Ohio State Medical Association supports the bill. Rep. Jean Beatty (D-Columbus) expressed reservations, explaining that the bill could have the effect of adding to the "imbalance" of care provided to insured and uninsured persons. She also closely questioned the witnesses on the issue of liability and wondered what would happen if a patient was the object of a possible malpractice. Mr. Cass acknowledged the issue, but pointed out that malpractice does not appear to have become a problem in cities where such a program is operating. He added that in the ten years the Columbus Medical Association has sponsored a free clinic, about 40,000 patients have been treated and there have been no malpractice actions.

Bill Scheduled But Not Heard:

HB 38 DECEPTIVE TRADE PRACTICES (Willamowski) Makes the performance of a service for compensation without a required license, certificate, permit, or registration a deceptive trade practice. (At sponsor's request)

OHIO RETIREMENT STUDY COUNCIL

See separate story.

EDUCATION

Bill Continued:

HB 217 SCHOOL FACILITIES COMMISSION (Williams) Prohibits the Ohio School Facilities Commission from prohibiting a school district undertaking a state-assisted classroom facilities project from renovating an existing facility rather than acquiring a comparable facility by new construction as long as certain conditions are satisfied.

Matt Hammond, aide to Rep. Bryan Williams (R-Akron), presented sponsor testimony on the lawmaker's behalf. The measure, he said, would allow the Ohio School Facilities Commission to recommend complete reconstruction of a school building only if building renovation costs would exceed 100% of the cost of a new building. He said districts should be encouraged to renovate - rather than replace - schools that have historical value. Mr. Hammond said the bill would help stretch tax dollars while creating new jobs. Additionally, he said the measure would give districts more discretion in how they address facility needs and relive burdens on Ohio's construction debris landfills.

Rep. Bill Hartnett (D-Mansfield), a nonvoting OSFC member, said he's not certain that the change would be best for the commission. Mr. Hammond noted that the measure has been submitted to the commission for its review.

Bill Referred to Rules & Reference

HB 106 JUVENILE DELINQUENT RECORDS (Williams) Requires that upon a child's discharge or release from the custody of the Department of Youth Services certain records pertaining to that child be released to the superintendent of the school district in which the child is entitled to attend school and makes other changes. (No testimony)

The measure was referred to Rules & Reference, which later in the day sent it to the Juvenile & Family Law Committee. Education Chair Arlene Setzer (R-Vandalia) said the move was being made to put the bill in a more appropriate venue.

COUNTY & TOWNSHIP GOVERNMENT

Bills Continued:

HB 246 CIVIL SERVICE EXAMS (T. Patton) Modifies the percentage of additional credit that may be awarded to qualifying veterans in classified civil service examinations.

Sponsor Patton said the bill, a late add-on to the meeting agenda, would redefine what constitutes a "veteran" and sets a minimum credit of 10% that can be awarded to qualified veterans in a civil service examination. The bill would change the current Ohio Revised Code definition of a veteran to read: "any person who has completed service in the uniformed services, who has been honorably discharged from the uniform services or transferred to the reserve with evidence of satisfactory service." Mr. Patton said the definition is derived from the Uniformed Services Employment and Reemployment Act of 1994. The minimum credit provision, he added, stems from discussions surrounding a now-stalled package of civil service reforms (HB 94) that attracted supporting testimony that cast doubts on the need for veteran credits for civil service exams. In response to a question from Chairman Wolpert, Mr. Patton said the veterans groups he has discussed the bill with have been supportive.

HB 148 TOWNSHIP CLERKS (Grendell) Requires that the township clerk personally attend meetings of the board of township trustees, sets a minimum amount for the township clerk's bond, and requires that township records be kept at the township hall or the board's meeting place. SUBSTITUTE

The substitute changed the exceptions to the requirement that clerks attend all trustee meetings by using the language "unless prevented by an occurrence of an emergency" as opposed to prior approval by the trustees. Mr. Grendell's aide Beth Vandeikoii said the change was made because clerks are on equal authoritative footing with trustees. Other changes include different bonding amounts that better follow existing pay scales that vary based on township population, and other "cleanup language.

Michael Cochran, executive director of the Ohio Township Association, said his group's board has yet to review the specific language of the substitute bill, but has in the past supported the concept of higher bonds for clerks and he expects that will translate to support of the bill. "Whatever they were trying to accomplish at $5,000 (bond level) they do not accomplish today" given that some townships have budgets in the $10 million range, Mr. Cochran said.

After Mr. Cochran told Rep. John Domenick (D-Smithfield) that the bill would not prevent the circumstance in Chester Township, where a clerk is alleged to have stolen $4 million over several years, from happening, Rep. Larry Price (D-Columbus said, "It causes me some concerns that we have legislation that doesn't address the problem."

Mr. Cochran said the bill would at least allow trustees to attempt to recoup some losses in such circumstances. Chairman Wolpert called the bill a step in the right direction and noted there will always be a small minority of clerks who will try and game the system regardless of state laws.

HB 194 TRANSPORTATION IMPROVEMENT DISTRICTS (Schneider) Permits a board of county commissioners to enter into an agreement with a transportation improvement district for the county to exercise any power, or perform or render any function or service, for the district. (No Testimony)

HB 204 COUNTY ELECTRONIC RECORDS (Wolpert) Provides for the use of electronic records and signatures by county offices if specified security procedures are adopted and makes other changes.

Amy Hoh, purchasing director of Hamilton County, spoke in support of the bill and provided some examples of how the changes could save local officials time and money in the processing of bid proposals and public records requests. Noting the vendor participation rate in the county has increased by 16% since bids have been advertised on the Internet, Ms. Hoh said, "Hamilton County's vendor community is very pleased with our electronic distribution of bids and would be equally as happy to be able to submit proposals in electronic format." She added that the county could eliminate some charges for public records requests, along with lowering the time required to process them, if the bill was enacted.

HEALTH

Bills Reported:

HB 71 PHYSICIAN REFERRALS (Peterson) Prohibits a physician or podiatrist from making certain referrals for inpatient hospital services and makes other revisions to the law prohibiting certain referrals for designated health services. AMENDED SUBSTITUTE (See separate story)

HB 189 HOSPITAL ADMISSIONS (Blasdel) Allows podiatrists to make independent hospital admissions. (No testimony)

Bills Continued:

SB 35 PHYSICAL THERAPY (Nein) Permits, under certain circumstances, the practice of physical therapy other than pursuant to the prescription or referral of a physician, dentist, podiatrist or chiropractor. AMENDED

The committee adopted without objection an amendment from Rep. Merle Kearns (R-Springfield) that adds advanced practice nurses to the list of practitioners who may make physical therapy referrals in Ohio. Aside from that action, the panel continued to hear testimony from a series of proponents and opponents.

Deborah Heiss, an assistant professor in the physical therapy division at The Ohio State University, said that of the seven states in which she has worked only Ohio does not currently allow direct patient access to physical therapy services. Ms. Heiss said she was surprised that orthotists and prosthetists had raised questions about the training and expertise of physical therapists. "If orthotics and prosthetics would be removed from our scope of practice it would mean physical therapists could no longer perform prosthetics and orthotics services, with or without a prescription from a physician," she said. Ms. Heiss said those services had always been part of the scope of practice for physical therapists.

John Williams of Westerville, who teaches physical therapy and treats patients at Ohio State, said the U.S. Army and military healthcare system has utilized physical therapists as direct entry practitioners since 1971. Mr. Williams is a Lieutenant Colonel in the Army Medical Specialists Corps. "I find it ironic that the same education and credentials accepted as being sufficient for me to evaluate and treat the very military members and veterans who protect our freedoms and laws, and allow direct access in so many states, are so deficient for the population of my home state," Mr. Williams said.

Tom Caldwell, a practicing physical therapist in Ohio for 15 years, said direct access would encourage preventive care, make physical therapy services more accessible to more people, allow for an earlier return to work, and reduce the need for long-term care by providing early intervention. "In the 47 states that have direct access, individual practice act language ranges from restrictions that allow evaluation only to unrestricted direct access to physical therapy evaluation and treatment," Mr. Caldwell said. "Senate Bill 35 contains language that is similar to or more restrictive than 24 other states. Patient safety will not be compromised by this legislation."

Nancy Garland, executive director of the Ohio Physical Therapy Association, wrapped up proponent testimony. She said Ohio is one of three states that does not have some form of direct access. The other two are Indiana and Alabama. Ms. Garland said the proposed legislation is not as liberal as in many states, and not as restrictive as in some others. "Ohio's bill is very similar to other bills that have passed in the last year including Pennsylvania, New Jersey and Louisiana," she said.

Dr. Steven Brezny, a family practice physician in Powell, testified in opposition to the bill, citing as the greatest concern for physicians the delivery of treatment without a diagnosis. "Claims have been made in the past that patients currently see physical therapists without a diagnosis and are given a prescription for 'evaluate and treat.' However, before a patient is sent to a physical therapist, a diagnosis has been made by a physician," he said. Dr. Brezny also questioned the need for the bill, pointing out it would only cover self-paying or cash patients which proponents have portrayed as a very small part of the total population. "No evidence has been presented which shows that patients in Ohio are experiencing a problem accessing needed physical therapy services," he said.

Ted Ryder, vice president of the Ohio Orthotic and Prosthetic Association, voiced strong opposition to language in the bill that would allow physical therapists to fabricate and fit orthotic and prosthetic devices without a physician diagnosis. "The 'direct patient access' described in Senate Bill 35 is actually the right of self prescription for physical therapy services within the therapists scope of practice," Mr. Ryder said. He maintained a prescription from a physician helps to insure a comprehensive plan of care, medical necessity and patient safety.

Rob Sherman, general counsel for the Ohio State Chiropractic Association, said in opposition testimony that patients need a differential medical diagnosis before any form of therapy is started. Mr. Sherman proposed a compromise involving establishment of "collaboration of care" agreements. Physicians and physical therapists would develop written protocols concerning the access and treatment of patients between the two parties. Mr. Sherman said a similar concept already is in placed between physicians and advanced practice nurses and physicians and pharmacists.

HB 146 DIABETES INSURANCE (Schneider) Requires certain health care policies, contracts, agreements, and plans to provide benefits for equipment, supplies, and medication for the diagnosis, treatment, and management of diabetes and for diabetes self-management education.

Stewart Perry, chairman of the American Diabetes Association Advocacy Committee, sought in proponent testimony to counter claims about the potential adverse economic impact of the bill on small business. Mr. Perry said he owns an insurance agency in Kentucky where similar legislation has been in place for five years. "I have heard arguments from my colleagues, from business groups that I belong to, from the insurance community and from some Ohio legislators that this legislation is going to cost money, open floodgates for insurance mandates and drive small business owners like myself out of business," Mr. Perry said. "I am here today to tell you that information is flat out wrong." He said 46 states that have passed similar laws have not experienced "any of the unfounded claims of the opposition."

Nicole Johnson, who was Miss America in 1999, told the committee of her experiences in dealing with diabetes. She said insurance did not cover the costs of her testing equipment for the last decade until her recent marriage, and estimated her out-of-pocket expenses for monitoring devices and test strips at $20,000. Ms. Johnson also relies on a $6,000 insulin pump. Despite those expenses, she said the costs of treating complications from diabetes are far higher. "We have to get people the access they need so they can take care of themselves," she said.

Jane Turner, a volunteer with the American Diabetes Association, said she was "confused and dismayed" that Ohio legislators had failed to approve such legislation in the past while 46 other states had done so. "Diabetes is killing Ohio residents at the rate of over 11,000 people each year," Ms. Turner said. "Yet the legislature appears to remain complacent on the issue of helping to ensure that insurance purchasers in Ohio are guaranteed coverage for the diabetes items they need to survive."

Committee members engaged in extensive questioning that pointed out pros and cons of the proposal. Rep. Charles Blasdel (R-E. Liverpool) said he believed the bill would have a greater financial impact on small employers, and estimated that 90% of the health policies in Ohio already offer some kind of diabetes coverage. Proponents said an estimated 100,000 Ohioans with diabetes would be covered under the bill. Rep. Earl Martin (R-Avon Lake) disagreed with characterizations of the proposal as the Diabetes Cost Reduction Act. "I don't see this as a cost reduction bill but as a cost shifting bill. It doesn't seem to be a cost savings plan," Rep. Martin said. "Everybody's premiums go up to pay for the care that is mandated." However, Rep. Joyce Beatty (D-Columbus) said the small businesses that she and her husband operate experienced a cost reduction through providing such coverage because of a corresponding reduction in work time lost to illness. "When you look at the research in all the other states that have done this, small businesses have been able to manage," Rep. Beatty said.

NURSING FACILITY REIMBURSEMENT STUDY COUNCIL

David Miller, representing Ohio Long Term Care Brokers, told the panel that long term care (LTC) insurance is designed to assist and better help Ohioans with asset management and protection and to allow them to remain independent as they age. He said that with nursing homes providing less than 20% of the long term care spectrum, long term care becomes a "huge" family issue with one of every two individuals in need of care with the average caregiving time of 4.5 years while nursing home care has an average stay of 2.4 years.

In his presentation to "better educate" panel members on LTC insurance, Mr. Miller noted a General Accounting Office report that indicated long term care costs are expected to triple in 20 years based on an annual growth rate of 5.8%. He cited long term care costs in Wayne County average $30,000 per year for assisted living, $47,000 for home health care and over $55,000 for nursing home care. He added demand for the coverage is escalating due to an aging population, shorter hospital stays and changes in the family structure. Long term care, usually not skilled care, is typically not covered by traditional sources such a Medicare, Medicaid and conventional health insurance, he noted.

Features of a good LTC policy, Mr. Miller explained, match benefits to the client's individual needs, such as age, asset base and benefit expectations. Added to this is an appropriate inflation benefit, a certainty that enough assets exist to justify LTC insurance and the matching of dollar amount of coverage, waiting period and benefit period with the expectation and financial need of the insured.

Mr. Miller told the committee the 2003 hottest topic involving long term insurance is rate stabilization. He said the National Association of Insurance Commissioners is extremely concerned about the possibility of an older person losing coverage just when it's needed due to unaffordable rate increases. He noted that although some insurance commissioners have pushed for mandatory nonforfeiture, it appears the insurance industry has negotiated a compromise or a "contingent" nonforfeiture meaning that if rates go up a specified amount in the lifetime of the contract based on the issue age of the policyholder, the insurance company will automatically do two things. They would offer the policyholder a reduced benefit to eliminate the necessity of another rate increase and make available a nonforfeiture benefit which the policyholder could accept in place of the rate increase. The nonforfeiture benefit made available, according to the NAIC model, would be a paid up policy with the insurance company being responsible to pay future benefits equal to the amount of premiums paid.

The long term care insurance expert added that insurance companies don't want mandatory nonforfeiture so the contingent nonforfeiture method should have the effect of encouraging companies to do everything possible in the beginning to avoid unreasonable rate increases as the rates would push regulators to impose a mandatory nonforfeiture benefit.

JUVENILE & FAMILY LAW

Bills Continued:

HB 106 JUVENILE DELINQUENT RECORDS (Williams) Requires that upon a child's discharge or release from the custody of the Department of Youth Services certain records pertaining to that child be released to the superintendent of the school district in which the child is entitled to attend and makes other changes.

Referred from the House Education Committee after three hearings, Rep. Williams presented the measure to the Juvenile & Family Law Committee saying that the bill requires valuable information to follow a the child from DYS to a receiving school district. Mr. Williams said the bill is designed to prevent avoidable school violence like what happened in Akron last year when a 17-year-old DYS parolee transferred directly from DYS to his local high school, who later stabbed an elderly couple after fleeing police following a school altercation.

The documents include a statement of violations and the degree of the violations, the warrant to convey the child to DYS, a copy of the juvenile court's journal entry ordering the commitment of the child to the legal custody of DYS, a copy of the arrest record pertaining to the act for which the child was adjudicated a delinquent child, the standard predisposition investigation report submitted to DYS by the juvenile court, the child's disciplinary records for the period of confinement, records of any mental, emotional or psychological examination contained in DYS files, school transcripts and a summary of the institutional record of the child.

Specifically, the records are intended to be used by the school district superintendent in deciding the appropriate assignment of the child to the school district upon the child's discharge or release. The records must be kept confidential and the superintendent may release them only as provided in state and federal law regarding the privacy of a student's educational records.

In addition, the bill prescribes that within 14 days after discharge or release, the DYS must provide to the superintendent amended versions of the child's school transcript and institutional summary to completely reflect the child's education while in the custody of DYS.

The provision providing for the establishment of alternative schools is unchanged under the bill but adds to the list of students who may be assigned to an alternative school those who have been discharged or released from the custody of DYS. The alternative school provision applies to the big eight districts - Akron, Canton, Cincinnati, Columbus, Cleveland, Dayton, Toledo & Youngstown - and other districts with a "significantly substandard graduation rate."

HB 267 CRIMINAL SENTENCING (Hughes) Enhances the penalty imposed upon an offender or a delinquent child who commits aggravated burglary or burglary between sunset and sunrise.

Stating that the number of night-time burglaries is on the rise, Rep. Hughes said this is an alarming problem as families are more likely to be home during those hours, thereby increasing the chances of confrontation. He said the added possibility of home invasion is more terrifying and dangerous when the victims are home. Mr. Hughes said that by adding a three-year specification to a burglary sentence for crimes committed under the cloak of darkness, a strong message is sent to those who might consider taking advantage of unaware and innocent citizens in all neighborhoods.

HB 265 SCHOOL CIVIL LIABILITY (Faber) Confers immunity from civil liability upon school districts, community schools, nonpublic schools, and school employees for an alleged injury to a student caused by school discipline, provided that such discipline does not result in child endangerment.

In sponsor testimony, Rep. Faber said schools and school officials are held accountable for educational performance and in order to run schools effectively, students who do not "get on board" and take education seriously must be brought into the fold. "Only through effective and meaningful disciplinary policies can we work with these kids," he said adding that educators and schools need to have confidence and more control in the classrooms while teaching the leaders of tomorrow. He explained the bill simply allows employees of a school district, whether it is a teacher, principal, cafeteria worker or bus driver to discipline students, as long as it does not result in child endangerment, without worry of litigation.

HB 232 CHILD CUSTODY ORDERS (Young) Ensures that court orders and decrees that allocate parental rights and responsibilities with respect to the care of and access to children provide for substantial equity between the parents except where clear and convincing evidence shows that substantial equality would be harmful to the children and provides for better enforcement of shared parenting orders and decrees.

Rep. Young, presenting the bill to the committee, said the bill creates a presumption that equal shared parenting is in the best interest of children when both the mother and father are deemed to be fit parents. He said current law requires courts to determine a child's best interest and to make custody decisions accordingly while giving no guidance as to how courts are to determine what custodial arrangements are in the child's best interest. Mr. Young said the presumption that equal shared parenting is in the best interest of the child would encourage and empower divorcing parents to produce a joint plan for raising their children. In cases where parents are unable to resolve their differences, each parent is empowered to submit a separate plan from which the court will choose the plan that is deemed to be in best interest of the child.

TRANSPORTATION & PUBLIC SAFETY

Bills Continued:

HB 30 HANDICAPPED PARKING FINES (Williams) Permits a local authority to consider for purposes of the Local Noncriminal Parking Law a fine of up to $500 for a violation of an ordinance, resolution, or regulation that regulates the standing or parking of a vehicle in a disability parking space.

Lucille Walls, executive director of the Governor's Council on People with Disabilities, said 20% of the state's population has some sort of disability with half of the total having mobility problems. She said the council gets 6 to 8 calls per week involving others parking in handicapped-designated spaces but she noted that to untrained persons, certain disabilities may not be apparent. Bruce Roth, a Columbus attorney and also a member of the Governor's Council, appeared in favor of additional enforcement of disabled parking regulations. He said being confined to wheelchair has provided him with many personal experiences that the improper use of handicapper parking spaces is being greatly abused. He said anything the legislature could do to empower police and local courts is needed.

Also appearing in support of the bill was Jim Laria, clerk of the Akron Municipal Court and trustee of the Ohio Association of Municipal Court Clerks. He said the legislation will provide a mechanism for the courts that use the Drivers with Excessive Parking Tickets Excluded from Registration (DETER) Program to collect handicap parking tickets in a more effective and timely manner. He noted that under the current DETER program, three infractions are required before the court can put a registration on hold through the Bureau of Motor Vehicles while the bill would allow the hold process to go into effect immediately for a single infraction involving a handicapper space violation if the fine is $100 or more. Mr. Laria said the bill will provide a same year remedy for those who fail to take care of their obligations.

HB 230 PUBLIC SAFETY DEPARTMENT (Reinhard) Revises and clarifies laws governing the Department of Public Safety, including the Bureau of Motor Vehicles and State Highway Patrol and makes changes and corrections to the motor vehicle certificate of title law.

Chairman Reinhard presented the Ohio Public Safety Omnibus Bill that he said is the result of months of work by the Ohio Department of Public Safety including the Bureau of Motor Vehicles and the State Highway Patrol. He said the bill implements recommended administrative and procedural changes and additions to the departmental governing statutes. Major changes included in the bill, as cited by Mr. Reinhard, include law enforcement agency serving the ODPS Investigative Unit and State Highway officers being required to re-qualify for in-service firearms certification annually, the creation of a Performance Registration and Information Systems Management Program (PRISM) to coordinate motor vehicle information between federal and state agencies, providing anonymity for physicians who notify the BMV that a patient should possibly be retested for driving privileges, and providing authority to the Registrar of motor vehicles to permit electronic signature authorization for registration and licensing purposes, including commercial drivers' licenses and ID card applications.

HB 210 MOBILE TELEPHONE USAGE (Barrett) Prohibits any person from operating certain vehicles while engaged in any activity that impairs the ability of the person to control fully the vehicle.

Rep. Barrett said that because cell phones are conveniently mobile, they can and are used everywhere yet the most dangerous place where a cell phone is used is when a person is engaged in driving. She added that as the automobile industry continues to develop vehicles with high-tech gadgets, the National Highway Traffic Safety Administration is becoming concerned about the number of increasing distractions that affect motorists, however regulation remains with state and local governments.

Rep. Barrett said a driver's primary obligation is to operate his or her vehicle safely and the legislation being presented to the committee seeks to assure that obligation by prohibiting any person from operating a moving vehicle and simultaneously using a mobile telephone that is not capable of being operated in a hands-free manner other than to report an emergency. She said the bill is not about the complete abolition of the use of cell phones while driving, but to have drivers responsible by using hands-free devices, readily supplied by the wireless industry. She noted the bill calls for a three-year phase-in period to allow consumers time to cycle out of their current contracts and then upgrade handsets to ensure hands-free capability.

The Cleveland legislator noted she would like to take the legislation even further to prohibit "inattentive" driving as a secondary enforcement provision. Inattentive driving would mean operating a motor vehicle while a driver's duties are divided from safe operation by the use of a cell phone, computer, fax machine, personal hygiene, eating or drinking, physically attending to a passenger or watching a television.

HB 31 VEHICLE LICENSE PLATES (Williams) Requires that motor vehicles carry only one license plate to be displayed on the rear of the vehicle.

Noting that Ohio is the only state in the region to require motor vehicles to display both a rear and front license plate, Rep. Williams said cars are not designed with a front-end mounting device, therefore placing that responsibility on the consumer. Mr. Williams said Ohio could realize possible savings of over $2 million annually from the production, storage and shipping of plates and stickers providing relief to local government budgets via the Auto Registration Distribution Fund. Mr. Williams said currently 20 states, including all of Ohio's neighbors, have single license plate laws in effect with no evidence of a decline in public safety. He said arguments will be made that the single place decreases public safety and urged committee members to ask specific questions as to exactly how.

ADOPTED IN THE HOUSE

HRs 104-107; 110-115; 120-123; 126-128. Honorary resolutions.

HCR 21 & 23. Honorary resolutions.

THE HOUSE ADJOURNED UNTIL 1 P.M. THURSDAY, SEPTEMBER 18, 2003 (FULL SESSION)

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