04/02/2021

ACEC Ohio Legislative Update-April 2, 2021

Bills signed into law this week:

SB 18: Tax Changes Incorporate changes in the Internal Revenue Code since March 27, 2020, into Ohio law which includes PPP loan tax deductibility at state level.  The bill was signed into law on March 31, 2021 with an emergency clause which means the bill is effective immediately upon the Governor's signature.

HB 74 Transportation Budget:  The transportation budget was signed into law on March 31, 2021 effective immediately.  There was no conference committee.  The biggest issue of contention was force account limits being raised. The Senate removed the increases in the force account limits and replaced it with a prospective 3% biennial inflater on the threshold amount for in-house work by local government and creates a joint committee on force accounts to study the issue further and the Ohio House concurred. Public Transit funding was increased by the Senate over the House levels by $13.85 m in GRF. Click here for Senate changes to bill.

HB 128 Repeal Nuclear Payments: The law will eliminate up to $150 million a year in payment to Energy Harbor's two nuclear plants and revokes two rate changes adopted in 2019. The law goes into effect in 90 days.

SB 49: Payment Assurance The payment assurance bill for design professionals had opponent testimony in the Senate Judiciary Committee this week, there were no opponents. ACEC Ohio testified in support, click here for testimony

HB 110 GRF Budget: The bill continues to have hearings in the House Finance Subcommittees.

PPP Loan--FAR/Overhead Issue:  ACEC met with FHWA this week to gain a better understanding of the agency’s intent and next steps to apply their new guidance on the FAR provision to firms with PPP loans. A legislative fix is still being pursued.  Information from Steve Hall:

" It’s clear that FHWA is trying to do this the right way and limit the impact to firms as much as possible. FHWA confirmed that the guidance would only apply the FAR credits clause to contracts that include federal funds – which has logic as there is a clear nexus between the PPP assistance and federal dollars in contract payments.  FHWA indicated that they will be developing a Q&A document to provide more detailed guidance on implementation, and invited ACEC to organize a working group of CPAs and selected State DOT representatives to help with drafting the guidance."

"The leaders of the House Transportation & Infrastructure Committee continue to be engaged on our behalf.  Committee counsels for both Chairman DeFazio and Ranking Republican Sam Graves (R-MO) are also meeting with FHWA this week to discuss implementation and next steps, and we’ve shared the insights above with them in advance of those meetings.  Matt and I will be meeting with committee staff next week to recap and discuss next steps."

ACEC Ohio hosted an information session this week with ODOT's auditor Scot Gormley and Somerset CPA's Jason Bainter on ODOT's PPP/FAR Guidance, if you are interested in the recorded copy of this meeting, please contact the office.

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