From the Statehouse 2007 No. 29
by Jennifer Garrison
Dec. 7, 2007
From The Statehouse
The most contentious bill we in the Ohio House of Representatives had to consider this week at the Statehouse was legislation dealing with how to invest money from the Bureau of Workers’ Compensation (BWC). Sub House Bill 79, in its current form, requires the administrator of the BWC to conduct criminal background checks on employees of investment consultants who invest BWC funds. I support this particular aspect of the bill.
However, the bill also restructures how the BWC invests public money in a way that undermines reforms passed earlier this year by the General Assembly and ties the hands of experts brought together to oversee those investments. It provides a list of acceptable investments, including tangible personal property. At the same time, however, the bill deletes current law that specifically prohibits investing BWC funds in rare coins, stamps, memorabilia and similar tangible personal property. Those are the same investments championed by Tom Noe, who steered public money into such items and was convicted for stealing nearly $14 million from a rare coin fund he managed for the state.
Earlier this year, the governor signed House Bill 100, which overwhelmingly passed both the House and the Senate. This bill overhauled the BWC Board of Directors and created three very specific committees: audit, actuarial and investment. This bill also required the Board of Directors to have very specific skills, and it was a positive step toward preventing scandals like the Noe rare coin incident from happening again. I supported this legislation.
If House Bill 79 is allowed to become law as it currently stands the very investments that got Ohio in trouble may again be fair game for public money. Setting limits for investments, then striking the list of prohibited items that dug Ohio into a massive financial hole in the first place is counter-productive.
Additionally, limiting the investment options as proposed in H.B. 79 could possibly limit investment returns. That could ultimately result in higher premiums for Ohio businesses. We need serious protections for injured workers and their families, businesses and taxpayers so we do not repeat a dark part of Ohio history. I do not believe this bill is the vehicle for that kind of change.
H.B. 79 passed Tuesday by a 56-39 margin, and I voted against it. This legislation will now go to the Senate. I believe efforts in the House to illuminate the shortcomings of this legislation will provide the groundwork for needed changes in the Senate. I am hopeful my colleagues in the Senate will vastly improve this legislation before they consider it for passage.
You can reach Jennifer Garrison at her Columbus office at (614) 644-8728 or in the district at 373-2414 or by e-mail at jennifer@jennifergarrison.com. Her Web site is Riffe Center | 77 South High Street | Columbus Ohio 43215-6111 | (800) 282-0253 | District93@ohr.state.oh.us
Web Site Design | FireBox Studios