Youngstown Daily Legal News

Proposed legislation would rename, restructure state Department of Development

TIFFANY L. PARKS
Special to the Legal News
Published: June 22, 2012

A bill that would further revamp the Ohio Department of Development is on its way to the governor.

Senate Bill 314, jointly sponsored by Sens. Mark Wagoner, R-Ottawa Hills, and Capri Cafaro, D-Warren, would restructure the development department as the Ohio Development Services Agency, create the TourismOhio initiative within the agency and modify the operation of JobsOhio relative to contracts with the new agency, the use of public money, public records and ethical conduct.

The measure also would increase the amount of financing available to be loaned to minority-owned businesses and authorize the development services agency to enter into cooperative or contractual agreements with any individual, organization or business with regard to tourism-related promotional programs.

SB 314 is an extension of House Bill 1, legislation that established JobsOhio.

“HB 1 set forth guidelines for the formation of JobsOhio. Among these guidelines, the director of the Ohio Department of Development was required to evaluate all of the powers, functions and duties of the department and recommend statutory changes necessary to improve the functions and efficiency of the Department of Development and its relationship with JobsOhio,” Wagoner said, noting that SB 314 is largely based on those recommendations.

In proponent testimony for the bill last week before the House Economic and Small Business Development committee, ODOD Director Christiane Schmenk said the department has been busy since the enactment of HB 1 and credited the effort with modernizing the state’s economic development landscape.

“The changes in this bill ... build on this work by streamlining development and further clarifying our relationship with JobsOhio,” she said.

An analysis of SB 314 states that the Development Department would not be renamed universally throughout the Ohio Revised Code but only through specific sections.

“The bill states that, in making this change, the General Assembly does not intend to make any substantive changes in statutory law,” the analysis reads. “Additionally, the change is not to cause unnecessary expense. The letterhead, forms, printed materials and signage displaying the former name of the department may be used until they are replaced.”

Wagoner said the bulk of the ODSA’s job creation efforts would be done in conjunction with JobsOhio. The new agency also would retain the Development Department’s involvement in community services.

In carving out TourismOhio, SB 314 would launch a dedicated funding source for tourism marketing. The venture would be charged with promoting Ohio as a travel destination.

Wagoner said the bill calls for the establishment of a five-year funding pilot program linking funding for TourismOhio to the growth in the sales tax revenues of tourism-related industries.

The joint sponsors of a companion proposal to SB 314, House Bill 489, issued a statement applauding the Senate measure’s movement through the legislature.

Rep. Mike Dovilla, R-Berea, said the bill would revitalize Ohio’s job creation efforts by providing essential services to JobsOhio, including the administration and oversight of loans and tax credits that would create and expand Ohio businesses.

“This legislation reaffirms our commitment to making Ohio a state that welcomes businesses, tourists, and above all, jobs,” he said. “Creating an environment which encourages businesses to expand in our state and supports minority-owned business is critical as we seek to restore the promise of opportunity for all Ohioans to prosper.”

Rep. Christina Hagan, R-Alliance, pointed to the merits of establishing TourismOhio.

“Tourism accounts for 439,000 jobs in our state and is clearly a sector that deserves more attention,” she said. “By passing this bill and showing our commitment to a more effective government structure, we are creating an environment where jobs and the tourism related industry flourish.”

Like Dovilla and Hagan, Cafaro said SB 314 was crafted to help innovate the state’s economic development strategies.

“I am proud to be a sponsor of this bipartisan legislation that will make Ohio’s development efforts more efficient and effective,” she said. “This bill would have a tremendous effect on Ohio’s tourism, particularly in areas such as Ashtabula County along Lake Erie in my district. It would also increase support for minority and family-owned businesses throughout the state.”

If the proposal is signed into law, Schmenk said, the Development Department has braced itself to tackle its provisions.

“The new Ohio Development Services Agency stands ready to provide world-class service through the programs we administer and provide strong oversight of any state resources that JobsOhio negotiates,” she said.

“Whether we are working to administer economic development incentives, supporting community development programs or providing support to Ohioans in need, the agency will continue to place a high value on customer service and being responsive to the needs of the citizens of Ohio.”

SB 314 was passed by the Ohio House last week. It awaits the governor’s consideration.

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