Bill Analysis Legislative Service Commission |
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H.B. 495 128th General Assembly (As Introduced)
Reps. Book, Dodd BILL SUMMARY · Abolishes, retains, terminates, transfers, and modifies various agencies, in accordance with the Sunset Review Law six-year cycle for evaluation of agencies. · Reestablishes the Sunset Review Committee during calendar years 2015 and 2016 to continue agency review in the 131st General Assembly. · Repeals the Sunset Review Law on December 31, 2016. · Retains the Workers' Compensation Council but eliminates its funding and requires the General Assembly to review the Council and its funding. · Generally takes effect on the date that is three months after the date on which the bill becomes law. TABLE OF CONTENTS Abolition of specific agencies Termination or transfer of specific agencies Termination or transfer-related changes
CONTENT AND OPERATION SUNSET REVIEW LAWBackground and overviewThe Sunset Review Law, established by Sub. H.B. 548 of the 123rd General Assembly, generally provides that if the General Assembly does not renew or transfer a state "agency" (see "Definitions" below) within an established timeframe, the agency expires by operation of law and the Office of Budget and Management is prohibited from authorizing the expenditure of any money for the agency on or after the expiration date. Under the Sunset Review Law's renewal procedures, an agency may be renewed by passage of a bill that continues the statutes creating and empowering the agency, that amends or repeals those statutes, or that enacts new statutes, to improve agency usefulness, performance, or effectiveness. (R.C. 101.83(B) and (D).) The Sunset Review Law created the Sunset Review Committee (a bipartisan committee, consisting of three Senate members appointed by the President of the Senate, three House members appointed by the Speaker of the House of Representatives, and three individuals appointed by the Governor with the advice and consent of the Senate) to carry out a periodic review of those state boards, commissions, councils, committees, and other entities to which the Sunset Review Law applied and to determine whether those entities or their functions should be abolished, terminated, transferred, or continued. The Committee was to consider and evaluate state agencies and recommend, in bill form, the amendment, repeal, or continuation of the statutes creating and empowering the agency. When the Sunset Review Law first became effective, the Sunset Review Law, the Committee, and all state agencies under its review authority were scheduled to expire on December 31, 2004, unless renewed. Since its inception, the Committee has operated on a periodic cycle of scheduled agency expiration subject to review and possible renewal. Accordingly, in Am. Sub. H.B. 516, the 125th General Assembly abolished, retained, and changed the names of various agencies evaluated by the Committee during 2003 and 2004. The Sunset Review Committee was reestablished with functions identical to those it exercised under former law and its operation was postponed until the 128th General Assembly when it again was scheduled to undertake agency review. Under current law, the Committee, the Sunset Review laws, and agencies subject to review by the Committee are scheduled to expire on December 31, 2010. (R.C. 101.83(B) and (D); Section 6 of Am. Sub. H.B. 516, 125th General Assembly.) DefinitionsThe application of the Sunset Review Law is determined by the following definitions, which the bill does not change (R.C. 101.82, not in the bill): "Agency" generally means any board, commission, committee, or council, or any other similar state public body required to be established pursuant to state statutes for the exercise of any function of state government and to which members are appointed or elected. "Agency" does not include the following: (1) the General Assembly, or any commission, committee, or other body composed entirely of members of the General Assembly, (2) any court, (3) any public body created by or directly pursuant to the Ohio Constitution, (4) the board of trustees of any institution of higher education financially supported in whole or in part by the state, (5) any public body that has the authority to issue bonds or notes or that has issued bonds or notes that have not been fully repaid, (6) the Public Utilities Commission of Ohio, (7) the Consumers' Council Governing Board, (8) the Ohio Board of Regents, (9) any state board or commission that has the authority to issue any final adjudicatory order that may be appealed to the court of common pleas under the Administrative Procedure Act, (10) any board of elections, (11) the Board of Directors of the Ohio Insurance Guaranty Association and the Board of Governors of the Ohio Fair Plan Underwriting Association, (12) the Ohio Public Employees Deferred Compensation Board, (13) the Ohio Retirement Study Council, (14) the Board of Trustees of the Ohio Police and Fire Pension Fund, Public Employees Retirement Board, School Employees Retirement Board, State Highway Patrol Retirement Board, and State Teachers Retirement Board, (15) the Industrial Commission, (16) the Parole Board, (17) the Board of Tax Appeals, (18) the Controlling Board, (19) the Release Authority of the Department of Youth Services, (20) the Environmental Review Appeals Commission, (21) the Ohio Ethics Commission, (22) the Ohio Public Works Commission, (23) the Self-Insuring Employers Evaluation Board, (24) the State Board of Deposit, (25) the State Employment Relations Board, and (26) the Workers' Compensation Council. "Abolish" means to repeal the statutes creating and empowering an agency, remove its personnel, and transfer its records to the Department of Administrative Services pursuant to the State Records Program Law. "Terminate" means to amend or repeal the statutes creating and empowering an agency, remove its personnel, and reassign its functions and records to another agency or officer designated by the General Assembly. "Transfer" means to amend the statutes creating and empowering an agency so that its functions, records, and personnel are conveyed to another agency or officer. "Renew" means to continue an agency, and may include amendment of the statutes creating and empowering the agency, or recommendations for changes in agency operation or personnel. To summarize, when an agency is abolished, the agency and its functions are eliminated and its personnel are removed; when an agency is terminated, its functions are reassigned, but the agency and its personnel are removed; and, when an agency is transferred, its functions and personnel are conveyed to another entity. Sunset Review Law renewalIn accordance with the general pattern established for renewal of the Sunset Review laws and the Sunset Review Committee, the bill, in addition to abolishing, retaining, and changing the names of various agencies, continues the six-year cycle for evaluation of agencies. Without substantive amendment, the bill does all of the following: · Reestablishes the Sunset Review Committee with functions identical to those it exercises under current law, while postponing its operation until the 131st General Assembly, during calendar years 2015 and 2016 (R.C. 101.84); · Repeals the Sunset Review Law on December 31, 2016--i.e. following the reestablished Committee's conclusion of its functions (Section 6 of Am. Sub. H.B. 516 of the 125th General Assembly (repealed); Sections 4 and 6 of the bill); · Revises the scheduled agency expiration dates by specifying that an agency in existence on January 1, 2011, expires on December 31, 2016, unless it is renewed in accordance with the Sunset Review Law procedures (R.C. 101.83(A)). Accordingly (1) the members of the Sunset Review Committee must be appointed within 15 days after the commencement of the first regular session of the 131st General Assembly, and the Committee must meet not later than 30 days after the first day of the first regular session of the 131st General Assembly and throughout that General Assembly to perform its statutorily specified organizational and operational functions, (2) the Committee is required to schedule for review each agency in existence on January 1, 2015, not later than 60 days after its first meeting in that year, (3) the Committee must send its schedules for review for calendar years 2015 and 2016 to affected agencies and the Legislative Service Commission Director, who is required to publish each annual schedule of review in the Ohio Administrative Code and in the Register of Ohio, and (4) not later than six months prior to the date on which an agency in existence on January 1, 2015 is scheduled to expire, the Committee must hold hearings to evaluate agency effectiveness. (R.C. 101.84(A), 101.85(A) and (B), and 101.86(A).) The bill also continues (without substantive amendment) other provisions of the Sunset Review Law dealing with the Committee's organization (its officers, quorum, etc.), with the Committee's preparation of a report of its findings and recommendations for an agency's (or its functions) abolition, termination, transfer, or continuation (including its presentation to the General Assembly of implementing recommendations "in bill form"), and with agency responsibilities in connection with their reviews (R.C. 101.84, 101.85, and 101.86; R.C. 101.87--not in the bill). Abolition of specific agenciesAgencies falling under the review jurisdiction of the Sunset Review Committee were to expire if not renewed by December 31, 2010, or otherwise within the statutorily prescribed period. The bill abolishes the agencies listed below:[1]
Termination or transfer of specific agenciesWhen an agency falling under the review jurisdiction of the Sunset Review Committee is to be terminated or transferred, the functions of the agency generally continue but are assigned to another agency. According to the controlling definitions, the difference between an agency being terminated and being transferred is a matter of whether agency personnel are retained or removed. The bill terminates or transfers the following agencies and reassigns the functions as listed below:
Termination or transfer-related changesIn connection with the termination or transfer of the agencies listed above, the bill makes the changes described below to facilitate the functioning of the following agencies: Financial Consumer Council. The bill creates the 12-member Financial Consumer Council in the Division of Financial Institutions; the Council supersedes the Banking Commission, Savings and Loan Associations and Savings Banks Board, and the Credit Union Council. The Deputy Superintendent for Banks, the Deputy Superintendent for Savings and Loan Associations and Savings Banks, and the Deputy Superintendent for Credit Unions serve on the Council ex officio and the Governor, with the advice and consent of the Senate, appoints the remaining nine members, who must be representative of the banking industry as a whole, including savings and loan associations, savings banks, credit unions, and representatives of financial institutions of various asset sizes. The bill generally retains the tasks of each agency existing under current law, including making recommendations concerning amendments to laws or rules governing the respective institutions. (R.C. 1121.12, 1121.18, 1121.29, 1123.01, 1123.02, 1123.03, 1123.04, 1155.13, 1163.16, 1181.11, 1181.16, 1181.17, 1315.122, 1733.32, 1733.329, and 1733.3210; Section 11 of the bill.) Medical Loan Repayment Advisory Board. In combining the Physician Loan Repayment Advisory Board and the Dentist Loan Repayment Advisory Board into the Medical Loan Repayment Advisory Board, the governing board has a total of 14 members; as under current law for the respective boards, the Governor appoints five members representing various medical fields and the Board of Regents, and four members representing the dental profession. The bill specifies the timeframe within which the Governor must make appointments to the reconstituted board. (R.C. 3702.79, 3702.80, 3702.81, 3702.85, 3702.86, 3702.92, 3702.93, and 3702.94; Sections 10 and 10.01 of the bill.) Third Frontier Biomedical and Bioproducts Advisory Board. In combining the Third Frontier Biomedical Advisory Board and the Third Frontier Bioproducts Advisory Board, the bill generally retains the tasks and governing structure of each board, but establishes a nine-member board (rather than seven). (R.C. 184.21, 184.23, and 184.231; Section 16 of the bill.) Board of Governors of the Medical Liability Underwriting Association. In replacing the Directors of the Medical Liability Underwriting Association Stabilization Reserve Fund (13 members) with the Board of Governors of the Medical Liability Underwriting Association (9 members), the bill adds two more physicians and one more representative from an instate hospital to the Board, bringing the total membership of the Board to 12. (R.C. 3929.631, 3929.64, and 3929.68; Section 15 of the bill.) Ohio Commercial Insurance Joint Underwriting Association Board of Governors. In replacing the Ohio Commercial Market Assistance Plan Executive Committee with the Ohio Commercial Insurance Joint Underwriting Association Board of Governors, the bill expands the Board of Governors to include 13 (rather than 11) members appointed by the Superintendent of Insurance. Seven (rather than eight) of the members must be selected from the members of the Joint Underwriting Association, four (rather than five) must be selected from commercial insurers domiciled in this state, three members must continue to be selected from commercial insurers domiciled outside this state, four (rather than one) must be insurance agents (two of whom must be representatives from excess surplus lines brokers and one of whom must be licensed and writing commercial insurance in this state), and two members must continue to be commercial insurance policyholders with no relationship to an insurance company or agent except as purchasers of commercial insurance. (R.C. 3930.02 and 3930.03; Section 17 of the bill.) Renewal of specific agenciesAgencies falling under the review jurisdiction of the Sunset Review Committee were to expire if not renewed by December 31, 2010, or otherwise within the statutorily prescribed period. The bill renews the agencies listed below and specifies that they will expire on December 31, 2016, unless they are again renewed by legislation (Section 3 of the bill):
Renewal-related changesIn connection with the renewal of the agencies listed above, the bill makes changes to current law to facilitate the functioning of the following agencies: Early Childhood Advisory Council. This agency is created by the Governor under current law and generally serves functions as described in federal law. The bill imposes an additional duty, requiring the agency to develop recommendations that explore the implementation of a single financing system for early care and education programs that includes aligned payment mechanisms and consistent eligibility and copayment policies. The Council must submit its recommendations to the Governor. (R.C. 3301.90.) Ohio Advisory Council for the Aging. The bill revises the transition between members of the governing board, compensation, and conflict of interest. Under current law any member may continue in office subsequent to the expiration date of the member's term until a successor takes office and is compensated for the period served between the expiration of the member's term and the beginning of the successor's term; under the bill, no member continues in office subsequent to the expiration date of the member's term unless reappointed and no member may serve more than three consecutive terms on the Council. Under current law, Council members are compensated at the rate of $50 for each day actually employed in the discharge of official duties, up to $2,000 per year, and in addition are allowed actual and necessary expenses. The bill eliminates the payments of $50 per day, up to $2,000 per year, and allows the Director of Aging to reimburse a member for actual and necessary traveling and other expenses incurred in the discharge of official duties, but the reimbursement must be made in the manner, and at rates that do not exceed those, prescribed by the Director of Budget and Management for any officer, member, or employee of, or consultant to, any state agency. Current law prohibits Council members from having any direct or indirect interest in any contract awarded by the Department of Aging. The bill allows the Department to award grants to or enter into contracts with a Council member if either (1) the Department determines that the Council member is capable of providing the goods or services specified under the terms of the grant or contract or (2) the Council member has not taken part in any discussion or vote of the Council related to whether the Council should recommend that the Department award the grant to or enter into the contract with the Council member. Additionally, the bill specifies that a Council member who receives an approved grant or contract award is not in violation of the Ethics Law (Chapter 102.) or of the law that prohibits having an unlawful interest in a public contract. (R.C. 173.03.) Ohio Historic Site Preservation Advisory Board. The bill renews the Ohio Historic Site Preservation Advisory Board, but transfers from it to the Ohio Historical Society the function, pursuant to the application of a person owning or in possession of a homestead or tract of land that has been in the person's family for 100 years or more, of authenticating and recording the homestead or tract of land in a register maintained by the Society. (R.C. 149.301.) OTHER MATTERSWorkers' Compensation CouncilThe Workers' Compensation Council was created in 2007 by Am. Sub. H.B. 100 of the 127th General Assembly for the purpose of reviewing the soundness of the workers' compensation system and legislation involving or affecting the workers' compensation system. The bill generally retains the Workers' Compensation Council but eliminates its funding and requires the General Assembly to review the Council and its funding. (Sections 3 and 5.01 of the bill.) The bill removes a requirement of current law for the administrative costs of the Council to be borne by the public and private employers subject to the Worker's Compensation Law and for the costs to be allocated among those entities that are assessed (R.C. 4123.341, 4123.342, and 4123.35). The bill also makes corresponding changes, eliminating references to the Director of the Workers' Compensation Council preparing and submitting a budget and also eliminating the Director's authority to enter into a contract with an actuary (R.C. 4121.03, 4121.121, 4121.77, and 4121.79; Sections 5.01 and 5.02 of the bill; Section 512.45 of Am. Sub. H.B. 100 of the 127th General Assembly, as amended by Am. Sub. H.B. 15 of the 128th General Assembly). The bill eliminates two funds, the Workers' Compensation Council Fund (consisting of all money transferred into it by the Administrator of Workers’ Compensation from employer assessments and used to pay the expenses of the Council) and the Workers' Compensation Remuneration Fund (R.C. 127.14 and 4121.79). As soon as possible after the Workers' Compensation Council Fund has been abolished, the bill requires the Administrator of Workers' Compensation to refund to employers unexpended, unencumbered amounts that were originally collected as an assessment for costs attributable to the activities of the Workers' Compensation Council (Section 5.01 of the bill). Rail compact representativesAs part of its existing membership in the Interstate High Speed Intercity Rail Passenger Network Compact, Ohio is required to appoint two representatives to serve on the Interstate Rail Passenger Advisory Council. The bill requires the Governor to appoint (1) one representative who must be a member of the private sector and must hold a Bachelor of Science degree in either engineering or transportation science and (2) one representative who must be either the Director of Transportation or the chairperson of the Ohio Rail Development Commission. Under current law, Ohio also is a member of the Midwest Interstate Passenger Rail Compact and is required to appoint four members of the governing commission; the Governor appoints two members and the Speaker of the House of Representatives and the President of the Senate each make one appointment. The bill requires the Governor's appointments to the Commission to be the same persons as the Governor appoints to the Interstate Rail Passenger Advisory Council and further specifies that the appointments fulfill the Midwest Interstate Passenger Rail Compact requirements for an Ohio representative who is a member of the private sector and an Ohio representative who is the Governor's designee. (R.C. 4981.361.) Corrective changesThe bill removes references to the Partnership for Continued Learning, which was abolished by Am. Sub. H.B. 1, 128th General Assembly (R.C. 3313.6013 and 3345.062; Section 3 of Am. Sub. S.B. 311 of the 126th General Assembly). The bill removes references to a Council to advise the Director of Health on the establishment and implementation of the birth defects information system; the Council was abolished by Sub. H.B. 534 of the 123rd General Assembly (R.C. 3705.35 and 3705.36). EFFECTIVE DATEThe bill generally takes effect on the date that is three months after the date on which the bill becomes law (Section 19 of the bill). HISTORY
H0495-I-128.docx/jc [1] Outright repeals of Revised Code sections and outright repeals of uncodified law sections are listed in Sections 2, 7, and 7.01 of the bill. [2] Although the Early Childhood Financing Workgroup is listed in Section 7 as being abolished, Section 14 of the bill states that the Early Childhood Advisory Council (R.C. 3301.90) supersedes the Early Childhood Financing Workgroup and succeeds to all the duties, powers, and obligations of the Early Childhood Financing Workgroup. [3] In addition, Section 14 of the bill states that the Early Childhood Advisory Council (R.C. 3301.90) supersedes the Early Childhood Financing Workgroup and succeeds to all the duties, powers, and obligations of the Early Childhood Financing Workgroup. [4] The bill lists the Workers' Compensation Council as a retained agency; however, under the controlling definitions, the Council is not an agency for purposes of the Sunset Review Law under R.C. 101.82. |