On December 2, 2011, Common Pleas Judge Laurel Beatty dismissed the court case filed by State Senator Michael Skindell (D–Lakewood), State Representative Dennis Murray (D–Sandusky), and ProgressOhio.org. The case challenged the constitutionality of the JobsOhio legislation, House Bill 1 (H.B. 1). enacted earlier this year by the Ohio General Assembly (previously discussed on a September 1 DevelopOhio post). According to The Columbus Dispatch, the dismissal was granted by Judge Beatty on technical grounds, not on the merits of the constitutional claims, declaring that the filing parties did not have the legal standing to file the lawsuit because the legislation creating JobsOhio requires any challenge to be filed within 90 days of its creation.
ProgressOhio.org, Sen. Skindell, and Rep. Murray initially filed the suit in the Ohio Supreme Court, challenging several portions of H.B. 1; however, on August 19, the Ohio Supreme Court dismissed the case on jurisdictional grounds, and ruled that it must be filed in a lower court. Therefore, the Petitioners re-filed their compliant. They claim that the legislation creating JobsOhio is unconstitutional because it confers corporate powers and allows Ohio to take an equity stake in a private corporation, both of which they argue are explicitly prohibited by Ohio's constitution.
Mark Kvamme, president and interim chief investment officer for JobsOhio, said in a statement, “We are very pleased with the judge's decision. Now we can focus 100 percent of our energy on job No. 1: creating jobs in Ohio.”
ProgressOhio.org’s Brian Rothenberg said, “He would consult with his co-plaintiffs, before deciding whether to appeal.” Rothenberg also said, “The good thing for citizens out of this process is that out of seven issues that we alleged were unconstitutional, six have been reversed by the Supreme Court or the administration itself has changed.”
The Columbus Dispatch notes that the remaining issue involves whether state funding of JobsOhio — Gov. Kasich’s privatized economic development agency — is allowed by the state constitution. It also notes that the legality of restricting lawsuits to the 90-day period has also been questioned as a result of the ruling.
