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Governor John Kasich, shown here in this 2013 photo with Cleveland Mayor Frank Jackson in the background, recently signed a state law banning local governments from requiring contractors on public projects to hire local residents.

(Gus Chan, The Plain Dealer)

CLEVELAND, Ohio - Ohio Gov. John Kasich last week signed a law effectively shutting down Cleveland's longstanding requirement that contractors on public construction projects include local residents in their workforce.

House Bill 180, which was one of a dozen bills that Kasich signed last Friday, bans governments from enacting local hiring laws, such as Cleveland's.

Mayor Frank Jackson, who launched an impassioned campaign to torpedo the bill before it became law, has argued in letters to Kasich that the measure hamstrings the city's economic recovery and undermines efforts to reduce poverty and unemployment. The bill also further erodes the city's home-rule authority - a constant point of contention between city leaders and state legislators.

Jackson said in a statement Friday that the city's attorneys are reviewing the options on what to do next.

Here is what you need to know about the new state law, what it means for Cleveland and the issues that remain unsettled:

What is the city's "Fannie M. Lewis Cleveland Resident Employment Law?"

Named for the longtime Cleveland councilwoman, who died at age 82 in 2008, the city ordinance was enacted 12 years ago to help combat poverty and to ensure that residents participate in the city's economic development - and share in its prosperity.

The Fannie Lewis law requires that on projects of $100,000 or more, at least 20 percent of construction hours be performed by Cleveland residents, with at least four percent of that work done by residents considered to be low-income. Failure to meet the requirements results in a fine equal to 1/8 of one percent of the total contract cost for each percentage by which the contractor misses the goal.

The city could take other legal action, as well, including canceling the contract or blackballing the contractor from working for the city in the future.

Does the Fannie Lewis law affect the competitive bidding process?

No. The local law does not impose conditions on contract awards or requirements on competing bidders. It comes into play only after a contract is awarded and does not give a competitive advantage to any bidder.

How did HB 180 arise?

Ohio Rep. Ron Maag, a Lebanon Republican, introduced HB 180 last year, and Sen. Joe Uecker, a Miami Township Republican, sponsored Senate Bill 152, a companion piece that will expire now that the House bill has been signed.

Maag and Uecker argued that local hiring rules shut out workers in their regions from getting construction work in big cities.

The Ohio Contractors Association and others who felt hiring laws should be banned also contended that such quotas often make it harder for contractors to hire the most qualified workers.

How did Cleveland respond to those claims?

In a May letter to Kasich, calling upon the governor to veto the bill, Jackson pointed out that up to 80 percent of workers on any given construction project can come from outside the city.

Jackson also said that assertions that geographic-based hiring increases project costs or forces contractors to take on untrained workers are baseless. To the contrary, Jackson said, hiring locally eliminates transportation costs. And there are plenty of jobs on any construction project for entry-level workers, who will then gain the skills they need to play bigger roles on future projects.

Put plainly, hiring locally benefits contractors and opens up career paths for the people who need them most, Jackson argued.

Why did Gov. Kasich sign the bill?

Cleveland.com is still trying to answer this question.

In 2014, Kasich came to Cleveland to announce an historic pact with the city. The governor pledged that 20 percent of the $267 million in construction contracts on the Opportunity Corridor would go to minority and disadvantaged businesses -- and at least 20 percent of the workforce on the state-funded roadway would be residents of Cleveland wards adjacent to the project.

He made the announcement during a standing-room-only event in the heart of one of the low-income neighborhoods that hopes to benefit from the construction of the road, which will connect Interstate 490 to University Circle.

City Council President Kevin Kelley said in a written statement last month that signing HB 180 would fly in the face of Kasich's pledge to support local hiring on Opportunity Corridor.

Cleveland.com reached out to the governor's office this week to ask how Kasich reconciles his signing of the bill with his position on using a local workforce to build the Cleveland roadway.

The question got routed to a press secretary for the Ohio Department of Transportation, who issued the following statement:

"ODOT is proud of the tremendous progress we've made on the Opportunity Corridor, exceeding expectations. Our commitment remains unchanged and focused on creating opportunity through the completion of this vital project. The intent is to use the Opportunity Corridor to train and develop skilled workers from the area who can continue their careers on projects all over the state. Since federally-funded projects are prohibited from having any type of residency requirement and the vast majority of ODOT projects have some federal dollars involved, HB 180 focuses mainly on projects done at the local level."