Login | July 07, 2024
Bill would provide grants to offset commuter costs
KEITH ARNOLD
Special to the Legal News
Published: July 3, 2024
A Republican duo in the Ohio House of Representatives has proposed legislation to create an employee mobility grant program for large employers relying on a workforce from outside the immediate location of the business.
Reps. Bob Peterson and Dave Dobos have introduced House Bill 340 to meet the needs of enterprises such as the LG Energy Solutions-Honda EV battery plant in rural Fayette County–– which is in Peterson’s district.
The Sabina lawmaker said the joint venture is expected to create 2,200 jobs in the short term with more in the future.
“Workers will likely come from Dayton, Cincinnati, Columbus, Fayette and surrounding counties,” Peterson said. “If this grant program were to be in place, it would create more opportunities for individuals from those city centers, from the surrounding counties, to become employed at this plant and have less difficulties in getting to work.”
HB 340 would create the grant program available to employers in counties with populations of less than 50,000 that wish to provide charter commuter transportation to employees who reside outside of the immediate area of the workplace, testimony provided.
“This bill … would enable an employer to offset the cost of charting commuter vehicles for their employees,” Peterson continued. “These grants can be up to $15,000 per employer, per year.”
“If you own a business or manage employees, you know that part of the challenges we are facing with securing and maintaining our workforce is transportation,” the lawmaker said. “This bill is one small way we can start to fight our employment issues within the state. Sites like the one in Jeffersonville, that are further away from our main city centers, now have a way to encourage and cater to larger pockets of the population for jobs.”
According to Ohio Legislative Service Commission analysis of the bill, employers may use the grant funds to pay the eligible transportation expenses of its employees, up to $2,500 per employee annually.
Dobos said an employer, first, must apply to the state Department of Development and agree to pay for at least 50 percent of employees’ eligible transportation expenses.
“They also must require their employees to complete quarterly surveys regarding the grant-funded transportation and agree to file quarterly reports that include: the total mileage paid to the commuter service, the number of employees that used the provided commuter service and the number of miles by which the grant-funded transportation reduced employee travel,” the Columbus lawmaker told members of the Economic and Workforce Development Committee during a recent hearing.
He added that the quarterly surveys and reports are to ensure the adequacy of the commuter vehicle service from the perspectives of both the employer and the employee, allowing Department of Development officials to confirm the grant money is being spent as intended.
“The encouragement of employer-provided commuter vehicles will result in easier commutes for many employees, allowing them to spend less time and energy on getting to and from work, and more on the job itself and their home lives,” Dobos said. “It also will be especially beneficial for workers who need access to such transportation, opening opportunities for folks who otherwise might have to exclude themselves, thus increasing the available pool of quality labor.”
The Ohio Chamber of Commerce has endorsed the bill, noting that employers that contract with transportation providers can increase the value of jobs, improve workforce access, help reduce roadway costs and provide increased buying power for their employees.
“Transportation is a key issue for many business owners and for many workers,” said Chamber Director of Travel and Tourism Policy Matt MacLaren. “HB 340 will help solve the worker transportation issue in Ohio. It will help plants in rural areas draw workers from larger cities. It will help workers get to job sites that are across county lines and that might be farther away than a normal commute. It will help increase economic development.”
The sponsors seek an appropriation of $4 million from the General Revenue Fund to back the grants in Fiscal Years 2024 and 2025.
The bill awaits further consideration by the committee.
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