FW: Ohio Report, Friday, January 28, 2011

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Event Planner

Monday, January 31

Deadline to renew Legislative, Executive Agency and Retirement System lobbying engagements. Signature pages and filing fees must be received by JLEC by Feb. 21, 2011.

Deadline to file 3rd Reporting Period 2010 Lobbying Activity & Expenditure Reports and Post Employment Disclosure Statements with the Joint Legislative Ethics Committee.

Tuesday, February 1

Greater Columbus Right to Life Annual Rally for Life, Statehouse West Plaza, Columbus, 12 p.m.

American Legislative Exchange Council Legislative Reception, Athletic Club, 136 E. Broad St., Columbus, 5 p.m., (Featuring Sens. Niehaus & Seitz and Reps. Batchelder & John Adams and more. Sponsorships: $5,000, $2,500 or $1,000. RSVP by Jan. 27 to stephanie.dodd@twcable.com or 614.481.5369)

Tuesday, February 8

Ohio Oil & Gas Association legislative reception, Statehouse Atrium, Columbus, 5 p.m.

Rep. Barbara Sears (R-Maumee) fundraiser, Athletic Club of Columbus, 136 E. Broad St., Columbus, 5:30 p.m., ($500 (sponsor); $300 (guest); Citizens for Sears)

Rep. Marlene Anielski (R-Walton Hills) fundraiser, Athletic Club of Columbus, 136 E. Broard St., Columbus, 5:30 p.m., ($250; Friends of Marlene B. Anielski)

Tuesday, February 15

13th Annual African American Legislator's Day Luncheon, Statehouse Atrium, Columbus, 11 a.m., (Seating begins at 11. Program begins at 11:30. Reservations for the free event must be made by February 1 at olbcrsvp@gmail.com)

Ohio Clerk of Court Association Legislative Reception, Capital Club, 41 S. High St., Columbus, 5 p.m.

Ohio Cable Legislative Reception and Technology Demo, Riffe Center, Capitol Theatre Lobby, 77 S. High St., Columbus, 5 p.m.

Rep. Ron Amstutz (R-Wooster) fundraiser, Le Bistro Rm., Capital Club, 41 S. High St., Columbus, 5:30 p.m., (Sponsor: $2,500, Host: $1,000 or Guest: $500 to Citizens for Amstutz)

Wednesday, February 16

Ohio Latino Affairs and Ohio Hispanic Chambers of Commerce - Latino Business Legislative Visit Day, 31st Fl., 77 S. High St., Columbus, 8:30 a.m., (Contact Ursula Barrera-Richards, ursula.barrerarichards@ohio.gov; 614-466-8333)

Sen. David Daniels (R-Greenfield) fundraiser, Gold Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($350 or $1,000 (sponsor) to Friends of David Daniels)

Rep. John Adams (R-Sidney) fundraiser, Tally Ho Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., (Sponsor ($500) or Guest ($350) to Committee to Elect John Adams)

Rep. Pete Beck (R-Mason) fundraiser, Tally Ho Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($350 to Friends of Pete Beck)

Tuesday, February 22

Rep. Dave Burke (R-Marysville) fundraiser, Parlors A&B, Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($350 to Team Burke)

Rep. Ross McGregor (R-Springfield) fundraiser, Tally Ho Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., (Sponsor: $500 or Guest: $300 to Citizens for McGregor)

Sen. Frank LaRose (R-Fairlawn) fundraiser, Gold Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($350 or $1,000 (sponsor) to LaRose for Senate)

Sen. Jimmy Stewart (R-Albany) fundraiser, Crystal Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($500 or $1,000 (sponsor) to Jimmy Stewart for State Senate)

Wednesday, February 23

Ohio Soft Drink Association Annual Legislative Day at the Statehouse, Statehouse, Columbus, (Contact: Karen Overturf - (614) 442-1803 or osda@rrcol.col)

Friday, February 25

Department of Taxation public on proposed Current Agricultural Use Values, 30 E. Broad Street, 23rd Floor Training Room, Columbus, 10 a.m., (Regarding CAUV rates for tax years 2011-2013 for the 41 counties that are revaluing property for real estate tax purposes for 2011)

Tuesday, March 1

Sen. Gayle Manning (R-N. Ridgeville) fundraiser, Crystal Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($350 or $1,000 (sponsor) to Committee to Elect Manning)

Wednesday, March 2

Sen. Bill Beagle (R-Tipp City) fundraiser, Gold Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($350 or $1,000 (sponsor) to Citizens for Bill Beagle)

Sen. Keith Faber (R-Celina) fundraiser, Crystal Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($500 or $1,000 (sponsor) to Friends of Faber)

Sen. Tim Schaffer (R-Lancaster) fundraiser, Tally Ho Rm., Athletic Club, 136 E. Broad St., Columbus, 5:30 p.m., ($350 or $1,000 (sponsor) to Tim Schaffer for Ohio Senate)

Tuesday, March 29

Ohio Association of Goodwill Industries Legislative Reception, Le Bistro Rm., Capital Club, 41 S. High St., Columbus, 5 p.m.

Wednesday, May 11

2011 Governor's Awards for the Arts in Ohio and Arts Day Luncheon, Columbus Athenaeum, 32 N. 4th St., Columbus, 12 p.m., (Presented by Ohio Arts Council and Ohio Citizens for the Arts Foundation)

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Daily Activity Planner for Saturday, January 29-Monday, January 31

Previous Day | Next Day

Legislative Committees

Monday, January 31

State Controlling Board, (Chr. Secrest, 466-5721), Senate North Hearing Rm., 1:30 p.m.

Agency Calendar

Monday, January 31

Development Financing Advisory Council, 77 South High Street, 31st Floor, East B, Columbus, 10 a.m.

Tax Credit Authority, 77 South High Street, 31st Floor, West B & C, Columbus, 10 a.m.

Board of Building Appeals, Training Rm. 1, 6606 Tussing Rd., Reynoldsburg, 12:30 p.m.

Event Planner

Monday, January 31

Deadline to renew Legislative, Executive Agency and Retirement System lobbying engagements. Signature pages and filing fees must be received by JLEC by Feb. 21, 2011.

Deadline to file 3rd Reporting Period 2010 Lobbying Activity & Expenditure Reports and Post Employment Disclosure Statements with the Joint Legislative Ethics Committee.

Gongwer News Service, Inc.
17 S. High St., Suite 630
Columbus Ohio 43215
Phone: 614.221.1992  |  Fax: 614.221.7844  |  Email: gongwer@gongwer-oh.com
Alan Miller, President  |  Scott Miller, Vice President  |  Kent Cahlander, Editor  |  John Chalfant, Marcus Roth, Rachel Buccicone, Staff Writers

© 2011, Gongwer News Service, Inc. Reproduction of this publication in whole or in part without the express permission of the publisher is in violation of the federal Copyright Law (17 USC 101 et seq.) as is retransmission by facsimile or any other electronic means, including electronic mail.

www.gongwer-oh.com

Volume #80, Report #19 -- Friday, January 28, 2011

ODE To Start Disbursing $400 Million In 'Race To The Top' Money

The Department of Education announced Friday that $400 million in federal funds are officially flowing to Ohio to back the implementation of state and local Race to the Top plans.

The U.S. Department of Education electronically transferred the total grant amount to ODE, and that money that will be shared by the state agency and participating local entities over the next four years.

"This official notification will allow the Ohio Department of Education to release funds to participating districts and schools," Ms. Delisle said in a release.

"This award is a major step in moving Ohio's Race to the Top strategy forward. We are thankful for the opportunity to have Ohio schools embark on ambitious and innovative reforms that will ensure we are preparing our students to be highly successful in an interconnected global society."

Deborah Delisle

ODE said all Ohio schools will benefit from state-level RTTT work, but more than 480 districts and community schools that agreed during the application process to implement specific changes will receive money directly.

"Ohio's Race to the Top plan is centered on initiatives built into a strategy that will help improve our schools, close achievement gaps and increase our graduation rates," Deputy Superintendent Marilyn Troyer said. "The real bottom line is that these innovative reforms will accelerate academic progress for all Ohio school children and challenge our students to succeed in the classroom and the world."

ODE said work will begin immediately to ensure participating local entities have the necessary resources to successfully implement the reforms outlined in their individual scopes of work. Plans align with the U.S. Department of Education's four specific areas: standards and assessments, data systems to support instruction, great teachers and leaders, and turning around the lowest-achieving schools.

"Today Ohio received important national resources that will help accelerate essential work as we continue to focus on enhancing Ohio's education system for all students," Ms. Delisle said. "Race to the Top holds great promise for our state."

Lake Erie Shoreline Battle Washes Up At Supreme Court Tuesday

The Ohio Supreme Court wades into one of its most closely watched cases of the year Tuesday when it hears arguments in a nearly seven-year-old, convoluted legal battle over private property rights along Lake Erie's 262-mile shoreline.

Landowners in a class action lawsuit want justices to uphold lower court decisions that said they hold title to property all the way to the water's edge, a changing boundary.

The Ohio Department of Natural Resources, the National Wildlife Federation and the Ohio Environmental Council contend that private ownership extends only to the lake's ordinary high water mark, making the dry land between that point and the water's edge available for public use.

Also in dispute is the authority of an Ohio Attorney General to even participate in the case.

The Ohio Lakefront Group, an organization of property owners, filed suit in Lake County against ODNR in May 2004.

The litigation stemmed from the agency's attempt, under former Gov. Bob Taft, to require landowners to obtain leases in order to place docks and other structures along the shoreline. The boundary touches Lucas, Ottawa, Sandusky, Erie, Lorain, Cuyahoga, Lake, and Ashtabula counties.

Both the trial court and the 11^th District Court of Appeals ruled in favor of the property owners.

Gov. Ted Strickland lifted ODNR's lease rule after taking office in 2007, and ODNR withdrew from the case to which it later returned as a party. Former Attorney General Marc Dann remained as a representative of the state.

The 11^th District, however, held in August 2009 that the state no longer could take part. It said attorneys general could act only when a governor or the legislature specifically instructed them to enter a case.

The Supreme Court voted 5-2 in March 2010 to accept the case for review at ODNR's request. Justices Paul Pfeifer and Terrence O'Donnell dissented from the decision, effectively voting to let the appellate court ruling in favor of property owners stand.

Landowners told justices in filings since then that Ohio courts and the legislature had never before claimed public ownership to the ordinary high water mark of any lands adjoining Lake Erie.

"This lawsuit is the direct result of the last forty years of massive regulatory expansion of government and the government's attempts to fund that expansion," said attorney James Lang.

He said waters of Lake Erie rarely reach the ordinary high water mark, so that a strip of dry land usually exists between the natural shoreline of the lake and that high point.

"ODNR's actions resulted in this strip of dry land being claimed as public trust property for the first time in Ohio's history," Mr. Lang said in a court filing. "(Landowners) viewed this as an attack on their established and previously unchallenged property rights."

ODNR said the dispute arose because the lower courts "radically relocated the physical line used to define the lake itself," and asked justices to reverse what it said was the appellate court's mistaken ejection of the state from the case.

"Thus, this case is not about taking away anyone's land, and it is not about forcing landowners to accept campers in their backyard," special counsel Kathleen Trafford told the court.

"It is simply about accepting the traditional definition of Lake Erie to include the lakebed, as that boundary was defined at the common law, and protecting all private and public rights along the Lake Erie shore," she said.

The case has attracted the interest of several organizations and individuals on both sides of the dispute.

Filing friend of the court briefs on behalf of Ohio were the states of Michigan and Pennsylvania, the Ohio Bass Federation, and former Attorneys General Betty Montgomery, Jim Petro, and Nancy Rogers.

The former attorneys general took no position on merits of the property dispute, but on that part of the appellate decision that blocked participation of the attorney general without specific authorization.

"The Ohio Attorney General is a constitutionally created executive officer with the broad independent authority and obligation to represent the State of Ohio's legal interests in court, and conditioning that authority on the assent of the Governor or General Assembly undermines Ohio's constitutional design," they said.

Groups filing friend of the court briefs on behalf of property owners included the National Federation of Independent Business, the Ohio Farm Bureau Federation, and the 1851 Center for Constitutional Law.

"Ohio's lakefront property owners have rationally-developed settled expectations that they own to the point where their land touches the waters of Lake Erie," the 1851 Center said.

"The heightened protections of property rights articulated by the Ohio Constitution preclude the redefinition of rights that this court is called upon to execute through the codicil of the public trust doctrine. Lakefront property owners' claim to all land to the water's edge must be upheld," it told the court.

Brown Promotes Tax Credit, Questions Repeal Of All-Day K, Governor's Cabinet Choices

Sen. Sherrod Brown (D-Cleveland) said Friday that he is against a state proposal that would repeal a requirement that schools institute all-day kindergarten.

The senator made the comments after a stop in Columbus to promote the Earned Income Tax Credit, which 25% of eligible Ohioans fail to claim.

Rep. Randy Gardner's (R-Bowling Green) bill to repeal several parts of the Evidence-Based Model for school funding had its first hearing in the House this week. (See Gongwer Ohio Report, January 26, 2011)

"I think (the proposal) is about as bad for the state as I can imagine," Sen. Brown said in an interview. "We know that if you don't work with children when they're two and three and four and five years old, you've got to build more prisons. It's as simple as that."

Sen. Brown

The Democrat also criticized Gov. John Kasich's cabinet appointments so far, all of which are white. The Ohio Legislative Black Caucus on Thursday also called attention to the lack of diversity in the governor's cabinet. (See Gongwer Ohio Report, January 27, 2011)

"I don't like the way his cabinet looks," Sen. Brown said. "I'm sure they're qualified but ... we haven't seen a cabinet like this since 1962 in this state."

Asked to comment on other Kasich policies, Sen. Brown said he wanted to give the governor some more time on the job before weighing in. "I don't agree with most of what he's saying, but give him a chance," he said.

Tax Credit: Regarding the tax break, Sen. Brown said that while Ohioans saved nearly $2 billion last year through the Earned Income Tax Credit, too many fail to claim the credit because they are unaware or intimidated by the process.

The EITC was established by a bipartisan effort of Congress about 30 years ago as a way to supplement the incomes of middle-to-low class workers who do not earn a living wage. Mr. Brown said his goal is to have all eligible Ohioans apply this year.

"With tax day approaching, I want to ensure that each Ohioan receives the biggest refund possible," he said. "I want all Ohioans to know that the Earned Income Tax Credit is a way for families who are struggling right now to get some relief."

Mr. Brown spoke about the EITC at a press conference at Central Community House in Columbus, which is among the many free tax preparation sites statewide that can help workers apply for the credit.

The tax break can mean as much as $5,600 cash back for some Ohioans and is available to those with incomes as high as $48,000 for a family of five, Sen. Brown said.

Janet Jackson, president and CEO of United Way of Central Ohio, said for some people that would be the largest check they would see all year.

Sen. Brown said although state organizations try to spread the word about EITC, the federal government needs to do a better job promoting the credit, which would drive money into communities instead of leaving it to sit in Washington.

"We want everyone to know about it, we want no one to be intimidated by it," Sen. Brown said, adding that some people do not apply for fear the application process would be too cumbersome.

Sen. Brown also provided county-by-county data showing the total tax credits claimed last year.

Ohio Appeals Court Upholds $10 Limit On Skill-Game Prizes

For the second time in less than four months, owners of skill-based amusement machines such as Queen Bee and Monkey Land have lost their bid to strike down a state-imposed limit of $10 on the wholesale value of prizes players can win.

The 10^th District Court of Appeals released a 3-0 opinion rejecting an argument from Pickaway County Skilled Gaming LLC that the prize cap was unconstitutionally void due to vagueness.

"The $10 limitation on the value of prizes awarded for playing skill-based amusement machines does provide sufficient notice of its proscriptions to facilitate compliance by persons of ordinary intelligence, and is specific enough to prevent official arbitrariness or discrimination in its enforcement," Judge Lisa Sadler said in the panel's decision.

The Ohio Supreme Court last October issued a 7-0 opinion that upheld the prize limitation the General Assembly enacted in response to a proliferation of what were viewed as illegal gambling machines statewide.

Justices at that time overturned an earlier 10^th District ruling in the case that had invalidated the prize cap.

However, the Supreme Court sent the case back to the 10^th District for consideration of the vagueness question that had been rendered moot by the appellate panel's original decision.

Pickaway Skilled Gaming operates Spinners Skill Stop Games, a members-only arcade in Circleville. The arcade contains about 150 skill-based amusement machines that members may play.

Spinners was temporarily closed to avoid violating the new law, but reopened after altering operations. The arcade continues to operate, but with substantially fewer members and visits than it previously enjoyed.

Pickaway Gaming argued that the $10 limit was unconstitutionally vague because the law did not include any means by which to determine the wholesale value of a particular of merchandise.

The business also said fluctuations in wholesale value of particular items would make it impossible to determine their precise value at the time they were awarded.

In response, the state argued neither of those factors made the limit unconstitutionally void. It said value of the prize should be determined at the time the vendor bought the merchandise, not at the time it was awarded.

The 10^th District this week agreed with the state.

"There are multiple examples of statutes in which the value of an item must be determined, e.g., theft statutes in which the level of the offense depends upon the value of the property involved, and the courts have been able to determine such values by considering the relevant market," Judge Sadler said.

"The fact that there may be an issue regarding the type of proof that would be necessary to support a claim by the state that the $10 prize limitation had been exceeded does not render the statute unconstitutionally vague," she said.

Concurring in the decision were Judges Peggy Bryant and Susan Brown.

Council Of State Governments Reports On Ohio Cyber-Bullying, Higher Education Tuition, Suspension Practices

Ohio is among a fraction of states that has not addressed electronic harassment in its bullying laws, according to a recent report from the Council of State Governments.

The CSG report on cyber-bullying was among three recent studies that compare Ohio's policies with other states. The other two deal with higher education funding and school suspension.

With computers, cell phones and other electronic devices now prevalent in the lives of students, bullying has moved from the face-to-face to electronic environments. CSG's 2010 review showed about 20% of 11- to 18-year-old students were victimized and 10% reported they had been both an offender and a victim of cyber-bullying.

Although Ohio has a bullying law, it does not include cyber-bulling nor electronic harassment in its provisions, according to CSG.

Rep. Teresa Fedor (D-Toledo), while in the Senate, and Rep. Nancy Garland (D-New Albany) both introduced legislation last session (SB126 & HB520, 128^th General Assembly) that would require boards of education to institute policies that address cyber-bullying.

Ms. Fedor said she sent out a cosponsor request this week on the bill for the 129^th General Assembly. The version will reflect the one introduced in the House, which was crafted with modifications then-Sen. Fedor had planned for her version.

"We've seen many examples of cyber-bulling happening at schools," Rep. Fedor said, adding that the legislation she has been working on for three years has the support of the Department of Education.

"We have more instances where children are using electronic devices," she said. "It's part of their culture; it's a natural part of their growing up .... We need to be able to understand how it's being used or being misused."

Rep. Fedor said cyber-bullying has a detrimental effect on students' academic performance and cases of suicide around the country have resulted from such harassment.

Although the Senate bill last session was blocked in the Education Committee, the House version simply ran out of time, Rep. Garland said.

"If we'd had a lame duck (session) I think we would have been able to move it," she said.

Ms. Garland said she has spoken with teachers who have indicated cyber-bullying to be a considerable problem. "For me, I had a specific instance in one of my schools where a child had been bullied through cyber space.

"As we become more of a society that communicates through the Internet and Facebook ... this is going to increase not decrease," she said.

As of August 2010, 44 states had statutes regarding bullying and 30 of those addressed some form of electronic harassment, according to CSG.

Higher Education Funding: Separately, CSG reports that during the 2009-10 academic year, the financial outlook for higher education nationwide did not improve much and in some cases worsened.

Tuition increased by 3.5% for all types of higher education institutions in Ohio for fiscal year 2010-11. State support, however, increased 1.7% for community colleges, 0.3% for flagship universities and dropped 0.1% for regional universities, according to CSG.

"These numbers are a reflection of a bipartisan effort to protect higher education during a very challenging state budget," Ohio Board of Regents spokesman Rob Evans said. "The ability to continue to move up the rankings in (tuition) affordability in the middle of a challenging budget time is a great accomplishment."

The 3.5% increase was part of a cap of the maximum tuition jump schools could implement last year. That cap expires at the end of the fiscal year, Mr. Evans said.

Zero Tolerance: Schools using zero-tolerance policies to mandate automatic punishments for certain offenses regardless of the circumstances have sparked national interest because a high proportion of minority and disabled students are suspended, according to another CSG report.

Students are suspended from school most commonly for fights, but the majority of infractions are nonviolent - such as abusive language, attendance issues, disobedience, etc. CSG reports that research is beginning to show there might be disparities in how zero-tolerance policies are applied.

In Ohio, black students make up 9% of the male population and 8% of the female, yet those student groups account for 25% and 15% of suspensions, respectively, which reflects the national trend.

White male students make up 41% of the student population in Ohio schools and account for 41% of suspensions. White females, which represent 38% of the student body, are responsible for 17% of suspensions. Data for white students also aligns with nationwide figures.

In Ohio, zero-tolerance policies are instituted at the local level, ODE spokesman Patrick Gallaway said. The department also does not have evidence to suggest such practices are applied unfairly.

Former U.S. Speaker Backs Plan To Grow Ethanol Production

Ohio agribusiness got an assist from a former Republican U.S. House speaker Friday in pitching a proposal to overhaul federal incentives for ethanol production.

Newt Gingrich joined the Ohio Corn & Wheat Growers Association and the Ohio Ethanol Producers Association during a "roundtable" event at the Verne Riffe Center in Columbus to plug the industry's "Fueling Freedom" plan.

The former speaker and presidential candidate said he believed the proposal would eventually help wean the industry away from federal subsidies.

"I think we're very close to the breaking point where if you have a big enough market, and if you have the access at the pump, that in fact ethanol will be very, very competitive without any particular tax break," he said.

"My sense is we are very close to the point where the real goal has to be to have every car capable of burning ethanol and have every gas station capable of offering you the choice," Mr. Gingrich said.

The "Fueling Freedom" plan, as proposed by national ethanol coalition Growth Energy, calls for the federal government to offer tax credits for petroleum retailers to install 200,000 blender pumps. It would also require all vehicles sold in the U.S. be "flex-fuel" capable.

Jeff Broin, CEO of POET Ethanol, the state's largest producer, said support for blender pumps, which allow consumers to choose the level of ethanol in their fuel, was critical for the industry to thrive.

"We're willing to use some of our incentives to fuel those blender pumps," he said. "We need market access."

In addition, ethanol producers want a federal loan guarantee for construction of a proposed $3 billion ethanol pipeline, he said.

Mr. Broin said the U.S. Environmental Protection Agency's recent decision to allow fuel retailers to sell gasoline containing 15% ethanol was "the first crack in the blend wall." For many years retail fuel could contain no more than 10%.

OCWGA Executive Director Dwayne Siekman said the operation of in-state ethanol processing plants in 2007 and 2008 had "changed the landscape of agriculture in Ohio."

Before the plants went online, Ohio growers exported the vast majority of grain to other states that converted it into a higher value commodity, such as ethanol, he said. Now a significant portion of the product is being sold and processed in state.

Mr. Gingrich said he believed continued government support for ethanol would eventually enable the U.S. to produce most of its own fuel supply.

"You have to recognize that we have a biological revolution underway, in health, in food, in energy and in the materials technology. We're going to get better and better at using biology, rather than chemistry to create enormous opportunities," he told reporters after the event.

"Ethanol is better for the environment and it is a key building block for a healthy American economy and for American energy independence from foreign dictators."

Many environmental groups question whether corn-based ethanol is a positive for the environment, citing high energy inputs necessary to produce the fuel and increased farm run-off that feeds algae blooms in Lake Erie and the Gulf of Mexico.

Other opponents of ethanol subsidies say the diversion of grains for fuel production drives up the cost of food, a point that Mr. Broin dismissed as a "smear campaign against our industry."

Asked why the country should continue to subsidize both ethanol and petroleum production, Mr. Gingrich said, "It's very complicated and I think the fact is that historically we have emphasized encouraging productivity. And it's worked for us."

In that same vein, the Republican said he believed the federal government should subsidize companies' new equipment purchases to compete with foreign countries. "I favor 100% write-off every year of new equipment. You can say that's a subsidy, but I would argue that that maximizes American jobs."

Gingrich Says Kasich Could Run For President 'Some Day'

Former Republican speaker of the U.S. House Newt Gingrich said Friday that his friend Gov. John Kasich had the makings of a presidential contender.

Mr. Gingrich, who is considering another run for president in 2012, stopped in Columbus during a national tour to promote his recent film documentary about Pope John Paul II and discuss his support for ethanol subsidies. (See separate story)

"John is enormously capable. I would not be at all surprised some day to see him on a national ticket," he told reporters when asked if he had discussed the possibility of Mr. Kasich running as a vice presidential candidate.

"I'm not sure it would necessarily be on the number two slot. He has the ability to run for president at some point," he said.

Mr. Gingrich said he didn't think the governor had any immediate plans to seek national office and was currently immersed in trying to improve the economy in Ohio.

"My hunch is that he's going to want to focus in the near future on jobs for Ohio and on creating team Ohio to campaign on, but he is one of the most talented, persistent, and energetic people I have ever met and brings a level of creativity that is remarkable," he said.

"He's going to be good for Ohio, and ultimately a national leader," he predicted.

During his stint in Congress, Mr. Kasich chaired the U.S. House Budget Committee in the late 1990s under former Speaker Gingrich.

Mr. Gingrich said he was "very seriously" considering a run for president and would make a final decision in about a month and announce his intentions in early March.

The Republican said he was in Iowa earlier this week, attending a similar ethanol event in that heavily agricultural state. The Iowa caucus is typically the nation's first contest during the presidential primary elections.

Next week Mr. Gingrich said he has events planned in California, Illinois, Georgia, and New York. New Hampshire, which also has one of the earliest presidential primaries, is another destination in a few weeks.

Ohio Business: River Downs, Scotts, Cell Targeting, R.G. Barry, P&G

Las Vegas-based Pinnacle Entertainment, Inc. said Friday it has closed on its previously announced acquisition of River Downs Racetrack in southeast Cincinnati, funding the $45 million purchase with cash on hand.

"We are excited to officially welcome River Downs into Pinnacle's family of properties," said Anthony Sanfilippo, president and chief executive officer.

"Our intent remains to quickly move to revitalize River Downs as a new gaming, racing and entertainment destination if video lottery terminals become operational in Ohio. Its location is expected to complement our existing Belterra Casino Resort, less than one hour away," he said.

River Downs recently celebrated its 85th anniversary of thoroughbred racing. The track is on a 160-acre site, 40 of which are currently undeveloped, and offers live thoroughbred racing from mid-April through Labor Day.

It also offers simulcast wagering throughout the year broadcast on more than 500 monitors throughout the facility.

Scotts Quarter: The Scotts Miracle-Gro Company said Friday its first quarter results were in line with its expectations and supported by an 11% increase in consumer purchases of branded products at its largest retail outlets in the U.S.

For the three months ended Jan. 1, the Marysville company recorded net sales from continuing operations were $230.2 million, and an adjusted loss of $65.6 million.

Those results exclude the performance of the Scotts global professional business, which is presented as a discontinued operation in anticipation of sale of the business in the second quarter.

The results also exclude costs related to product registration and recall matters. Given the seasonal nature of the lawn and garden category, ScottsMiracle-Gro has historically reported a net loss in its fiscal first quarter.

Acquisition: A California company said Friday it acquired substantially all the assets of Cleveland-based Cell Targeting, Inc., a biotechnology firm that conducts research into regenerative medicine.

BioTime, Inc. of Alameda, California said the technology acquired from the Ohio company uses peptides selected for their ability to adhere to diseased tissues.

By coating or "painting" these peptides onto the surfaces of therapeutic cells using techniques that do not modify the cell physiology, CTI has produced tissue-specific and disease-specific cell modification agents with potential to take cell therapy products to a new level of performance.

BioTime issued 261,959 common shares and paid $250,000 in cash to acquire the CTI assets.

Barry Buy: Accessory footwear and slipper marketer R.G. Barry Corporation said Friday it completed the purchase of substantially all of the assets of Foot Petals, LLC, a California-based developer and marketer of premium insoles and products.

Pickerington-based R.G. Barry will operate Foot Petals as a subsidiary. It bought the company for $14 million in cash.

"As the innovator and leader of premium insoles, Foot Petals is an excellent addition to our brand portfolio," said Greg Tunney, president and CEO of the Barry Corporation.

"It is a growing business that generates very healthy returns. Its management team, led by Tina Aldatz, is young, aggressive and has done an amazing job building a successful, category-leading business in less than a decade," he said.

P&G: The Procter & Gamble Company said it recorded second quarter diluted net earnings from continuing operations of $1.11 per share, an increase of 10 percent.

Net sales increased two percent to $21.3 billion driven by six percent volume growth, which was partially offset by unfavorable foreign exchange and mix impacts. Organic sales grew three percent.

The Cincinnati company said volume was up six percent behind growth in all major geographic regions, 16 of 17 top countries, five of six business segments and 19 of 23 billion-dollar brands.

Market share was up in all geographic regions and the majority of key countries and brands. Businesses representing about 60% of net sales maintained or grew market share.

"We are expanding market shares by touching and improving the lives of more consumers in more parts of the world, more completely through our innovation and expansion plans," Bob McDonald, president and chairman of the board.

"This is driving strong volume and sales growth ahead of market levels. Core EPS is ahead of year-ago levels, and we are on track to deliver seven to nine percent growth for the year," he said.

Agency Briefs: AG Urges Protection Of Personal Info Online; DOD; RDC; OCAN; DVS; EMA; EPA

Attorney General Mike DeWine on Friday encouraged consumers to guard their personal information online.

"Protecting personal information is an important part of keeping Ohio families safe from financial fraud," Mr. DeWine said in a release. "As consumers share more data online, taking the time to consider using strong privacy and security settings can help Ohioans better protect their most personal information."

Consumers can protect their personal information by knowing their privacy settings, configuring wireless routers to encrypt data and by not assuming public "hot spots" are secure, according to the AG.

Development: The Ohio Third Frontier Commission recommended more than $14 million in funding through the Photovoltaics Program, Fuel Cell Program, and Advanced Energy Program.

The three programs work to accelerate the development and growth of green technologies. The grants and loan will provide direct financial support to organizations seeking to investigate near-term specific commercial objectives; commercialize new products; address technical and commercialization barriers; or demonstrate market readiness.

Additionally, the Third Frontier Commission recommended more than $25 million in funding through the Pre-Seed Fund Capitalization Program and Entrepreneurial Signature Program Continuity Initiative.

The Pre-Seed Fund Capitalization Program creates a risk capital climate that supports the development, retention, and attraction of investable technology companies in Ohio, and attracts the resources of venture capital firms both within and outside Ohio.

The Entrepreneurial Signature Program Continuity Initiative creates an entrepreneurial assistance climate that supports the creation, retention, and attraction of investable technology companies in Ohio; attracts the resources of venture capital firms both within and outside of Ohio; and builds a network of universal support and access to all forms of capital for technology companies within their geographic region.

Separately, the Minority Business Bonding Program approved a $200,000 bonding line for a northeast Ohio minority-owned business. Bonding lines enable companies to participate in bid opportunities up to the amount of the respective bonding line, making it easier for them to expand their businesses, according to DOD.

MyCity Transportation in Shaker Heights (Cuyahoga County) works with the Cleveland Regional Transit Authority (RTA), local nursing homes, area ambulance companies, Medicaid, and private individuals in transporting medically challenged people, senior citizens, and extremely frail individuals.

The bonding award is subject to State Controlling Board approval.

Rail Development Commission: Commissioners have approved rail spur projects at three industrial development sites.

An $85,000 grant and $85,000 loan for a rail spur project will allow the Cleveland Commercial Railroad to serve a new steel trans-loading facility, according to RDC. The rail project opens up new markets for steel processors by providing another shipping option.

RDC will serve as a project sponsor so the Zanesville-Muskingum County Port Authority may access $475,000 in federal rail line relocation funds for a project to improve grade crossing safety and further develop rail service into the industrial park.

In Van Wert County, a grant of up to $500,000 was approved for the rehabilitation of a portion of rail line into a 1,600-acre Job Ready Mega Site that could generate up to 2,500 jobs and improve service and business for two existing companies, according to RDC.

Commissioners approved a $235,000 grant for track rehabilitation and repairs to four bridges on an unused portion of the Greenville-owned rail line. The grant will leverage up to $58,000 from the city for the project, which is needed for the reopening of Johnson Controls' Greenfield plant, creating 130 new jobs and another 80 jobs on a planned second production line, the commission reported.

College Access Network: Request for Proposals are being accepted for the Great Lakes Higher Education Guaranty Corporation's second annual College Access Investment Grant program. Through OCAN re-grants, Great Lakes will invest $350,000 in direct service aiming to increase Ohio's college attainment.

Grants will be awarded up to $25,000 per program for a 12-month period covering the 2011-12 school year; a limited portion of the funds will be reserved for programs submitting requests in partnership with non-OCAN members.

Veteran Services: A new 22-bed hospice unit that opened this week at the Ohio Veterans Home in Georgetown will give more veterans access to quality, end-of-life care. The Georgetown home is the first Veterans Home in the country offering hospice services in a designated, in-house unit.

This new program is a public-private partnership between the Department of Veterans Services and Stein Hospice. Additional state tax dollars will not be necessary to operate the hospice unit, according to the agency.

Separately, the Ohio Veterans Homes in Sandusky and Georgetown rated above average in overall family member satisfaction in a Department of Aging Survey released this week.

The survey gave the Veterans Home in Sandusky a score of 90, while the Georgetown Veterans Home scored 93.5 overall. The average score statewide was 87.9.

Meanwhile, for the third consecutive year the Ohio Veterans Home-Georgetown has achieved an excellent score on its annual VA inspection.

Inspectors from the Cincinnati VAMC and Ascellon Corporation of Landover, Md., which conducts the surveys for the VA, spent three days at the facility in early December examining 158 medical and other patient care standards to which state veterans homes must comply.

Emergency Management Agency: The Hazard Mitigation Plan is now open for a public comment period that will close Feb. 28.

The State of Ohio Standard Hazard Mitigation Plan was first approved by FEMA in 2005. The 2011 plan revision details Ohio's highest priority hazards: river/stream flooding; tornadoes; winter storms; landslides; dam/levee failure; wildfire; coastal flooding; earthquakes; coastal erosion, drought; severe summer storms; invasive species and land subsidence hazards.

The 2011 Ohio mitigation plan also integrates and introduces the State Hazard Analysis, Resource and Planning Portal, a web-based system that captures and disseminates state and local hazard mitigation planning and project information.

Environmental Protection Agency: Ohio EPA has proposed rules to update beneficial use designations for selected water bodies throughout the state. Changes are proposed for 140 water bodies in seven drainage basins, while verifications of existing uses are proposed for 176 water bodies in eight drainage basins.

A public hearing on the proposed rules is scheduled for Feb. 10 at the Ohio EPA Conference Center in Columbus.

Changes proposed for water bodies include updating use designations for specific water bodies; adding bodies that are currently undesignated in rule; verifying existing use designations; and identifying locations of public water supply intakes.

Historical Society: A construction project to improve the main lower-level entrance of the Ohio Historical Center will begin Feb. 3. Changes to the museum over the next five months also will include a complete makeover of several exhibit galleries and spaces as part of a larger project to showcase collections, according to the agency.

During the renovation, the lower-level entrance will be temporarily closed and visitors will be directed to the upper plaza-level entrance.

Renovations include enlarging the lobby, relocating and updating the Ohio History Store, creating a reception area and providing direct access to the exhibit floor. The remodeled lower-level entrance and Ohio History Store is expected to be open by the end of May. Total cost for the project is estimated at $257,000 in state capital funds.

Capitol Square Review and Advisory Board: In celebration of the Ohio Statehouse's 150th anniversary, CSRAB is partnering with the Ohio Channel in launching "Capitol Ohio," a series of free iPod self-guided video and audio tours of the Capitol Square complex.

The video and audio tours lead visitors throughout the historic Statehouse and Capitol Square complex, highlighting the architectural features and rooms, artwork and history of the building.

With plans to develop more tours, the first 23 podcasts are available for free download on iTunes by searching "Capitol Ohio." The podcasts are also available to be viewed online.

Natural Resources: The new Lake Erie Cleanup small grants program is accepting applications through Feb. 21. Grants will provide funding for community-based cleanup activities on public land and waterways along Ohio's 312-mile coast.

A total of $19,700 is available for projects this spring or fall, with a maximum funding of $5,000 per project. Groups eligible to apply include Ohio counties, cities, townships, villages, solid waste management districts/authorities, soil and water conservation districts, non-profit organizations and state agencies.

These grants require a 50% match, which can include cash or in-kind contributions. Clean-up activities must take place between April 1 and June 30 or between July 1 and Oct. 31.

Separately, Ohio's 21 state forests are now certified as a Well-Managed Forest and meet the standards of the national Forest Stewardship Council, according to the Division of Forestry.

This is in addition to certification obtained in December 2010 from the Sustainable Forestry Initiative program. FSC and SFI certification means that Ohio's state forests have met stringent environmental and social standards.

Workers' Compensation: A Fairfield (Hamilton County) chiropractor has been indicted on workers' compensation fraud and theft charges, as the result of a years-long investigation by the Special Investigations Department.

Bruce Holaday, owner of the Back and Spine Center, was indicted by a Franklin County grand jury on one count each of workers' compensation fraud and theft, felonies of the third degree; 32 counts of forgery, each fifth-degree felonies; and engaging in a pattern of corrupt activity, a first-degree felony.

Mr. Holaday was unlawfully using the names and provider identification numbers of the chiropractors with whom he practiced after being permanently decertified as a BWC health care provider, prohibiting him from seeking and receiving reimbursement from BWC, according to the agency.

AG DeWine's office assisted in the investigation, which included undercover operations and has already resulted in the indictment of Dr. Gary Berner on felony counts of workers' compensation fraud, theft and forgery. Mr. Berner is awaiting trial. Three additional clinic employees have also been convicted of workers' compensation fraud as part of the investigation.

Commerce: The Division of State Fire Marshal, along with the Portsmouth Fire and Police departments, released new information about the March 7, 2008, arson fire in Portsmouth. The blaze took the lives of four adults and three children.

Investigators confirmed that the fire was drug-related; however, they stress that the seven victims of the fire were in no way related to the criminal activity, according to the agency.

The Portsmouth Fire Department released surveillance video showing two people near the address at, or around, the time of the fire. Investigators are asking anyone who recognizes the individuals or anyone who can confirm their identity to come forward and provide that information.

Highway Patrol: Troopers charged an Ohio man with felony drug charges after seizing 4 kilos of cocaine, valued at $400,000, during a traffic stop in Erie County.

Errick Phillips, 40, of Lyndhurst, was charged with possession of cocaine and trafficking in cociane, both first-degree felonies. If convicted, he could face up to 20 years in prison and a $40,000 fine.

Supplemental Agency Calendar

Tuesday, February 1

Supreme Court oral arguments, Ohio Judicial Center, 65 So. Front St., Columbus, 9 a.m. (Cases involve medical malpractice immunity, rights of property owners along Lake Erie shore)

Wednesday, February 2

Supreme Court oral arguments, Ohio Judicial Center, 65 So. Front St., Columbus, 9 a.m. (Cases include challenges to PUCO orders granting, denying changes in AEP electric rates)

Thursday, February 3

PUCO Nominating Council, Hearing Rm. 11-B, 180 E. Broad St, Columbus, 8:30 a.m.

Supplemental Event Planner

Tuesday, February 15

13th Annual African American Legislator's Day Luncheon, Statehouse Atrium, Columbus, 11 a.m., (Seating begins at 11. Program begins at 11:30. Reservations for the free event must be made by February 1 at olbcrsvp@gmail.com)