Reps. Rader, Pizzulli Introduce JobsOhio Transparency Act in Aftermath of Resignation of Ohio State University President

COLUMBUS – State Reps. Tristan W. Rader (D–Lakewood) and Justin Pizzulli (R–Scioto County) today introduced the JobsOhio Transparency Act, bipartisan legislation to improve oversight and create transparency with JobsOhio, the state-created entity that oversees Ohio’s liquor profits to finance economic development projects.

“The state created JobsOhio to create jobs in Ohio using liquor revenues that belong to Ohioans. Every dollar JobsOhio spends should be in the service of that goal, but recent revelations have cast serious doubt on whether that is the case,” said Rep. Rader. “The state’s multi-billion-dollar liquor franchise should be creating good-paying jobs for everyday Ohioans, not catering to the whims of the wealthy and well-connected. The resignation of former OSU President Ted Carter is a national embarrassment, and Ohioans deserve answers about JobsOhio’s involvement.” 

JobsOhio paid $60,000 dollars to sponsor a single podcast episode with only 137 views prior to former President Carter’s resignation. Early last year, the state Controlling Board voted along party lines to grant a 15-year extension to JobsOhio for a contract that did not expire until 2038, requiring JobsOhio to pay nothing for over $10 billion in additional future liquor profits. JobsOhio had previously paid $1.5 billion in 2013 for a 25-year lease on Ohio’s liquor franchise.  Despite its ballooning budget, research shows only 25% of the incentives offered by JobsOhio spurred economic development that would have not otherwise happened.

“The people of Southern Ohio deserve a fair shake from JobsOhio, and even after a years-long relationship full of promises, communities like mine have yet to see the job creation or investment they deserve,” said Rep. Pizzulli. “There must be public accountability and real transparency to deliver results for our constituents.”

This bill would take the following steps:

1. Declare that it is the intent of the General Assembly to ensure that JobsOhio as a state-created entity utilizes the state liquor profits that belong to Ohioans in a manner that is responsible and prudent as well as free from waste, fraud, or abuse.
2. Requires JobsOhio and its affiliates to publicly disclose every corporate sponsorship or media partnership that it engages in. Disclosure should occur annually and include the recipient, dollar amount, approving individual, conflict of interest check, and whether any public employee or official was involved in the arrangement.
3. Requires the Auditor of State to audit JobsOhio every two years and submit that audit to the Governor, Speaker, Senate President, and Minority Leaders. The audit shall include the average salary of JobsOhio employees, the total number of employees, and the number of employees that make at least four times the median Ohio income.
4. Requires the Chief Investment Officer of JobsOhio to testify annually before the Ohio House and Senate Finance Committees to explain how funding has been distributed to projects in counties across the State of Ohio.
5. Requires any future extension or restructuring of the liquor profit/franchise arrangement to receive approval by the General Assembly, not the Controlling Board, and only after an independent valuation and at least one public hearing. Any future extension must be granted at fair market value, not for free.

JobsOhio is not legally required to hold open meetings or provide records on how it spends its money. According to 2021 data from LSC, less than 60% of JobsOhio’s liquor profits actually go to economic development incentives.