Gov. John Kasich signed House Bill 64, the biennial budget, on June 30. In addition to making $71 billion in appropriations, the bill modifies existing ethics and campaign finance laws. The bill authorizes the creation of a “Teacher of the Year” designation and allows a recipient of the award to receive gifts or privileges as part of the recognition program. In addition, the bill allows a person or entity to make contributions to the program without violating ethics laws.

House Bill 64 also permits nonprofit corporations designated as tax-exempt business organizations (i.e., 501(c)(6) organizations) to transfer portions of dues payments from its unincorporated member businesses to the organization’s political action committee (PAC). Prior to House Bill 64, campaign finance law banned a corporation from using its own funds, even those raised by dues, to aid any PAC, including its own.

On Wednesday, April 9, the Ohio House of Representatives passed a large piece of Gov. Kasich’s mid-biennium budget proposal. Prior to passage, House Republicans added numerous amendments to House Bill 483; it is now more than 800 pages long.

One amendment voids administrative rule 111-3-05 and changes state campaign finance law by lifting the disclosure requirement for corporations and labor organizations making independent expenditures. It also allows foreign-owned corporations and corporations with state contracts to spend money promoting or opposing state candidates.

Former Secretary of State Jennifer Brunner issued the rule in 2011 and fears its repeal will make it easier for national political interests to operate state-based Super PACs.

The bill passed the House by a primarily partisan vote of 57-33 and will now be sent to the Senate for consideration.

Photo of the Ohio State Capitol by Alexander Smith on Wikimedia Commons.

Lobbying

“The Scent Industry Expands Lobbying Efforts” by JM Rieger in Roll Call.

Campaign Finance

“3 easy steps to avoid the threat of FEC penalties” by Emily Tadlock in Campaigns & Elections.

Ethics

Arkansas: “Special prosecutor sought in senator’s ethics case” by the Arkansas News Bureau.

Connecticut: “Mayor to toughen ethics code” by Brian Lockhart in the Connecticut Post.

Ohio: “Ohio Dem leader: Kasich ethics question unresolved” by Julie Carr Smyth (Associated Press) on Cincinnati.com.

Virginia: “Prosecuting Bob McDonnell no slam dunk” by James Hohmann and Elizabeth Titus in Politico.

From the State Legislatures

Pennsylvania: “Another Push Begins to Shrink Pennsylvania Legislature” by Karen Langley in the Pittsburgh Post-Gazette.

Redistricting

Kentucky: “Kentucky House panel to take up redistricting bill” by The Associated Press in WPSD News.

Lobbying and consulting services could soon be subject to sales tax under Governor John Kasich’s budget proposal. House Bill 59, the governor’s expansive budget bill, proposes to decrease the state sales tax rate, but makes up for lost revenue by increasing the services subject to sales tax. All service transactions would be subject to the tax unless specifically exempted in the bill, including legal and accounting services.

You can view a list of the services that will be covered by the sales tax here.

While Governor Kasich predicts lobbyists will attempt to remove the tax on their industry from the budget bill, a Florida Institute of CPAs lobbyist claims it’s not just self-interest–determining who is taxed and who pays can be tricky when lobbying firms hire both accountants and lawyers to assist with projects.

If passed, the sales tax will apply to all non-exempt services rendered on or after September 1, 2013.