A bipartisan pair of Ohio lawmakers have announced legislation establishing new oversight for JobsOhio. The proposal comes in the wake of a podcast scandal that prompted Ted Carter to step down as president of Ohio State University.
JobsOhio has admitted to providing $60,000 in sponsorship funding to “The Callout” podcast, at the center of Carter’s “inappropriate relationship” scandal. It is currently attempting to claw back that money.
JobsOhio controls the franchise for Ohio liquor sales — the profits of which help fund its economic development efforts. But because JobsOhio is structured as a private nonprofit corporation, it is not subject Ohio public records laws.
In February 2025, the Ohio Controlling Board authorized a 15-year extension of the franchise. Under that agreement, JobsOhio will control state liquor sales through 2053.
It paid nothing in the deal.
The legislation
Ohio state Reps. Tristan Rader, D-Lakewood, and Justin Pizzulli, R-Scioto County, want more oversight and accountability for JobsOhio.
Pizzulli said the communities he represents in Southern Ohio deserve “a fair shake” from economic development corporation.
“Even after a years-long relationship full of promises, communities like mine have yet to see the job creation or investment they deserve,” he said. “There must be public accountability and real transparency to deliver results for our constituents.”
Rader emphasized that JobsOhio was established to take charge of the liquor market for the benefit of Ohioans.
“Every dollar JobsOhio spends should be in the service of that goal,” Rader said, “but recent revelations have cast serious doubt on whether that is the case.”
“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,” Rader said.
“The resignation of former OSU President Ted Carter is a national embarrassment, and Ohioans deserve answers about JobsOhio’s involvement.”
Rader and Pizzulli’s proposal has yet to be given a bill number. But according to a press release, it would require JobsOhio to publicly disclose corporate sponsorships and media partnerships on an annual basis.
The corporation would also have to submit to a biannual audit from the state auditor, detailing average salaries and the number of employees earning four times Ohio’s median income.
Additionally, JobsOhio’s chief investment officer would have to testify before the Ohio House and Senate finance committees each year.
The measure also requires any future extension or restructuring of the JobsOhio contract to get approval from the full General Assembly rather than the Controlling Board.
It also requires a public hearing, and that JobsOhio pay fair market value for the franchise after an independent valuation.
Notably, Rader was one of two Democrats who objected when the Ohio Controlling Board extended the JobsOhio liquor franchise last year.
Response
In a statement, JobsOhio Press Secretary Matt Englehart said that the private nonprofit economic development corporation “does not generally comment on the details of pending legislation.”
He also said the organization has attempted to demonstrate its commitment to transparency “through our swift and transparent disclosure of JobsOhio’s interactions with entities associated with former Ohio State President Ted Carter.”
Englehart noted as well that JobsOhio has been consistently recognized for transparency and ethics by independent nonprofit watchdogs like Candid and the Standards for Excellence Institute.
“JobsOhio remains committed to sharing as much information as possible with the public and policymakers,” he said, “while maintaining Ohio’s competitive advantage when seeking to attract economic development investments to Ohio.”
Still, JobsOhio has elicited pushback since its inception, primarily because it is shielded from public records law. The corporation insists that discretion is necessary to secure agreements with the companies it’s trying to attract.
Back in 2012, then-Attorney General Mike DeWine warned that JobsOhio’s protections were so broad that state agencies could skirt public records law simply by sharing information with the nonprofit. An amendment later cleared that up.
The following year, then-Auditor Dave Yost went so far as to subpoena JobsOhio’s records to conduct an audit. The General Assembly subsequently passed legislation explicitly shielding JobsOhio from public audits.
When the Controlling Board was considering its extension of the JobsOhio liquor franchise last year, Yost raised concerns again.
In a letter to JobsOhio President and CEO J.P. Nauseef, the attorney general objected to granting JobsOhio an extension for free.
“How is it in the best interest of the people of Ohio to extend such a valuable franchise under these circumstances?” Yost asked.
Following Carter’s ouster at Ohio State, former Ohio Gov. John Kasich took to social media to express his disappointment with “mission drift” at JobsOhio.
As governor, Kasich was the driving force behind the establishment of JobsOhio, and he said the podcast sponsorship “struck me as a misguided and weak attempt to deal with workforce issues.”
“You will find the one responsible in the mirror, Governor,” Yost responded.
“As Auditor of State, I worried about just such things,” he added. “You ignored a subpoena and twisted every arm in the legislature to pass a law to stop me from auditing JobsOhio.”
Originally published by the Ohio Capital Journal. Republished here with permission.