Properties Magazine May 2017 : Page 44

LEGAL PERSPECTIVES Navigating property laws & regulations Home Rule Wins – For Now O NORA LOFTUS n January 31, 2017, a judge in the Cuyahoga County Court of Common Pleas dealt a blow to the State of Ohio’s attempt to prohibit local hiring requirements for public improvement con-tracts let by local municipalities. palities in Ohio, like Akron, have passed similar laws. Significantly, according to the Court, the Cleveland law is not technically a “residency” requirement, meaning that it does not require a contractor to have a certain number of employees that are residents of Cleveland. Instead, the law is a labor requirement, also referred to as a local-hiring requirement. This distinc-tion proved fatal to the State’s arguments in the Court. The Cuyahoga County Court ruled in favor of the City of Cleveland’s home rule powers and affirmed the City’s constitu-tional authority to create laws relating to public improvement projects funded by the City. The Court rejected the State’s attempted preemption of Cleveland’s local hiring requirements law. Cleveland’s effort to “combat poverty” In 2003, Cleveland passed a law that created a labor requirement for public improvement construction contracts funded by the City. The law – com-monly known as the Fannie Lewis Law, named in honor of the long-time Cleveland councilwoman who fought to combat poverty in the City – requires that a minimum of 20% of the total work hours in any contract be performed by Cleveland residents, with at least 4% of those hours performed by low-income individuals. Other munici-State fights back In response to these local-hiring-requirement laws in Cleveland and other municipalities, the State of Ohio passed HB 180 in May 2016, which was enacted as Ohio Revised Code 9.49, and states that a public authority cannot require a contractor to employ a certain percentage of individuals to perform work on a project that are resi-9G&#02;YQWNF&#02;DG&#02;RTQWF&#02;VQ&#02;DG&#02;RCTV&#02;QH&#02;[QWT&#02;VGCO&#02;QP&#02;[QWT&#02;PGZV&#02;EQPUVTWEVKQP&#02;RTQLGEV&#10; C ONTAINER S ERVICE , I NC . ¸;OL&#03;3LHKLY&#03;PU&#03; *VU[HPULY&#03;:LY]PJL¹ -),&#13;&#03;*:)&#03;&#0d;&#03;,+.,&#03;*,9;0-0,+ @6<9&#03;*65:;9<*;065&#03;:7,*0(30:;: .9,,5&#03;&#0d;&#03;3,,+&#03;7961,*;: &#19;&#13;&#03;&#1b;&#13;&#03;&#1d;&#13;&#03;&#1f;&#03;&#14;&#03;@(9+&#03;-965;&#03;36(+&#03;*65;(05,9: &#18;&#17;&#13;&#03;&#19;&#17;&#13;&#03;&#1a;&#17;&#13;&#03;&#1b;&#17;&#14;@(9+&#03;96336--&#03;*65;(05,9: Properties | May 2017 &#0f;&#19;&#18;&#1d;&#10; 44 &#03; &#1b;&#1b;&#18;&#14;&#1b;&#1b;&#19;&#19; >>>&#15;7,;,(5+7,;,05*&#15;*64

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