State Fiscal Highlights

STATE FUND	FY 2005	FY 2006			FUTURE YEARS
General Revenue Fund
Revenues	Continuation of current revenues		Continuation of current revenues	Continuation or potential decrease, depending on number of abolished entities
Expenditures	Continuation of current expenditures		Continuation of current expenditures	Continuation or potential decrease, depending on number of abolished entities
Other State Funds
Revenues	Continuation of current revenues		Continuation of current revenues	Continuation or potential decrease, depending on number of abolished entities
Expenditures	Continuation of current expenditures		Continuation of current expenditures	Continuation or potential decrease, depending on number of abolished entities

Note: The state fiscal year is July 1 through June 30. For example, FY 2005 is July 1, 2004 – June 30, 2005.

· Future year fiscal effects will depend on the decisions of the Sunset Review Committee, which is to function in 2009 and 2010. The decisions of the Committee could include renewing or abolishing various agencies. The potential fiscal effect of such decisions is uncertain. Any fiscal effects would not be created until after December 31, 2010, when the recommendations of the Sunset Review Committee, sent to the General Assembly in the form of a bill, would go into effect, if passed.

· A majority of the boards, committees, agencies, and commissions listed in H.B. 568 incur costs limited to the reimbursement of member expenses. Some of these entities, however, have salaried positions or per diem compensation.

· As the Sunset Review Committee is a legislative committee, members receive no compensation outside of reimbursement for necessary expenses.

· If the Sunset Review Committee recommends name changes for any boards or committees, there may be some minimal cost increases for the updating of stationary, business cards, or web sites.

Local Fiscal Highlights

· No direct fiscal effect on political subdivisions.

Detailed Fiscal Analysis

The bill causes any agency being reviewed to expire unless the agency is renewed by recommendation of the Sunset Review Committee. The Sunset Review Committee will function in calendar years 2009 and 2010. The members of the committee will not be compensated, but will be reimbursed for necessary expenses incurred while performing their duties. The Sunset Review Committee makes some changes to current law, outlined below, in addition to the abolition and renewal recommendations listed.

Interagency Recycling Market Development Workgroup

The bill repeals this workgroup and states that the Chief of Recycling and Litter Prevention in the Department of Natural Resources must prepare the Ohio recycling market development plan, which must be updated every two years. The Director of Natural Resources must approve this plan. The repeal of this group eliminates the potential expense of reimbursements for members.

Ohio Low-Level Radioactive Waste Facility Development Authority – Ohio Environmental Protection Agency

Under current law, the Governor appoints the Ohio member of the Midwest Interstate Low-Level Radioactive Waste Commission, an entity within the Environmental Protection Agency. This representative may not cast an affirmative vote on any matter within the Commission without prior approval of the Ohio Authority. The bill repeals the Ohio Authority, and states that the representative must not cast an affirmative vote without the approval of the Governor. The removal of this group eliminates the potential expense of reimbursements for members.

Health Care Quality Advisory Council – Bureau of Workers Compensation

The bill repeals the Council. It states that the Administrator of Workers' Compensation must develop the standards for qualification of health care plans. The Council is currently responsible for this task. Abolishing this Council eliminates potential reimbursement expenses.

Employee Ownership Assistance Program - Department of Development

The bill removes the authority of the Director of Development to establish or appoint members to a technical or advisory board that the Director deems necessary to assist in the execution of the Employee Ownership Assistance program. This program provides information to promote the establishment of the successful operation of employee-owned companies. Members of these boards are not compensated outside of necessary expenses. Removing this provision would result in a decrease in expenditures.

Minority Business Enterprises and Public Improvement Contracting Procedures – Department of Administrative Services

The bill also removes the provision that states that a minority business enterprise must first apply to the coordinator of administrative services for certification before bidding on a public improvement contract. That provision required the Director of Administrative Services to set aside a number of contracts with an aggregate value of 5% of the total estimated value of contracts to be awarded in the current fiscal year to be bid upon by minority business enterprises. The bill subjects minority business enterprises to the same bidding procedures as other contractors and has no fiscal impact, as it appears to conform the law to current public improvement and bidding procedures. In November of 1998, in the set-aside provisions were deemed unconstitutional in Associated General Contractors of Ohio, Inc. v. Drabik, and as such, the Department of Administrative Services has not implemented these provisions since that date.

Medical Liability Fund

The Medical Liability Fund, within the Department of Insurance, shall no longer consist of remaining funds from the joint underwriting association, which was dissolved under section 3929.721 of the Revised Code.

Name Changes

The bill also changes the names of several agencies at the recommendation of the Sunset Review Committee.

- The Martha Kinney Cooper Ohioana Library Association will be known as the Ohioana Library Association, Martha Kinney Cooper Memorial.

- The Ohio Arts and Sports Facilities Commission will be known as the Ohio Cultural Facilities Commission.

- The State Planning Council will be known as the Developmental Disabilities Council.

There are presumed to be negligible, if any, costs associated with these changes.

Renewed Agency Table

Table 1 lists those boards and commissions that were renewed by the Sunset Review Committee. The table contains the agency name, Revised Code section creating the entity, the cost type, and the FY 2003 expenditure information, when available. There are several cost types listed in this table. First "Expenses Only” refers to a reimbursement to members for travel, lodging and other associated costs of attending board meetings. Next "Necessary Expenses" refers to expenses that permit the board or commission to contract with field experts or others in order to discharge their duties. These costs are noted in this table, but in many cases were negligible, non existent, or not available to LSC.

Abolished Agency Table

The Abolished Agency table, Table 2, follows the same format as the Renewed Agency table. The table lists the entity name, the Revised Code section where the entity is created, the cost type, and when available, the FY 2003 expenditures for that entity.

LSC fiscal staff: Terry Steele, Budget Analyst

HB0568IN/arc

BILL:	H.B. 568		DATE:	November 16, 2004
STATUS:	As Introduced		SPONSOR:	Rep. White
LOCAL IMPACT STATEMENT REQUIRED:		No —	No local cost