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Relief for Ohio Under the Federal American Rescue Plan Act

Client Alert

On March 11, 2021, President Biden signed the American Rescue Plan Act (the “Act”) — a $1.9 trillion COVID-19 relief package — a significant portion of which will be directed to the State of Ohio to support economic recovery, as outlined below.

Generally, the Act seeks to provide state and local governments with the resources needed to stabilize their economies following the shutdowns and COVID-19-related deficits incurred in 2020. As such, the Act directs these authorities to fund businesses, programs, and support infrastructure projects and related economic development.

Specifically, a total of $11.2 billion has been allocated to Ohio from the Act, half of which will go directly to the state government with the balance to be divided among Ohio’s municipalities.

The five (5) largest benefactors of the funds include the following counties:

  • Franklin County: $255,380,000
  • Cuyahoga County: $239,530,000
  • Hamilton County: $158,540,000
  • Summit County: $104,930,000
  • Montgomery County: $103,120,000

The stimuli do not, however, come without caveats as to collection requirements and spending boundaries.

Each state or territory intending to collect their share of the funds is required to certify to the U.S. Treasury that it will use any payment in compliance with the use of fund restrictions, discussed below, before any distribution is made. Once the U.S. Treasury receives this certification, the department must make payment to the certifying entity within 60 days.

Counties, metropolitan cities and states as agents for non-entitlement units of local government will not, however, be required to complete certifications, and will instead receive funds in tranches, with the first tranche to be paid within 60 days of the American Rescue Plan becoming law, and the second tranche to be paid at least 12 months after the date on which the county, metropolitan city or state as an agent for non-entitlement unit of local government received its first payment.

The Act leaves broad authority to the state and local governments as to how the money may be directed with the main caveat requiring the ultimate support of COVID-19 economic recovery (e.g., vaccine distribution and other public health efforts, support for low-income citizens, small business relief, and aid to public education). Notably, there is a deadline to use the funds by each applicable jurisdiction — December 31, 2024.

For any questions on the American Rescue Plan Act, or for more information on allocations across the State of Ohio, please contact BMD Government Affairs Law Member Victoria Ferrise at 330.374.5184 or vlferrise@bmdllc.com.


Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”

2022 Healthcare Recap and 2023 Healthcare Check-Up

As the country begins to return to a new “normal” following the COVID-19 pandemic, there are many healthcare rules changing on both the federal and state levels as a result. Thus, it is important for healthcare providers and their employers to be aware of these changing rules, and any implications they may have on their practice. Look back on healthcare in 2022 and find a checklist for 2023.

Direct Support Professional Retention Payments

On December 15, the Ohio Senate and House passed House Bill 45, which authorizes the Department of Developmental Disabilities (DODD), in conjunction with the county boards of developmental disabilities, to launch their initiative to issue retention payments to Direct Support Professionals (DSPs). These retention payments will be distributed quarterly to participating home and community-based waiver providers to address the workforce crisis in the direct provider sector. Governor DeWine needs to sign the Bill to begin the payments, but he is expected to do so by the end of 2022.

Real Estate Investors Position for 2023 Opportunities

Real estate investors weathered another year in a post-pandemic world, with the year closing with yet another interest rate increase coupled with both uncertainty and heightened interest carrying into 2023. Just last Wednesday, the Federal Reserve raised its benchmark interest rate 0.50 percentage points, shifting the target range to 4.25% to 4.50%. The new level is the highest the fed funds rate has been since December 2007 and marks the seventh rate hike this year. So what does this mean to investors, brokers, lenders, and others in the real estate world? Read a few perspectives below from stakeholders familiar with our BMD clients and the markets in which they do business.