Legislative Update

February 8, 2016



The budget has been the main focus this past week. House Democrats have begun to question the budget cuts and the lack of specificity in the proposal. The Governor proposes cutting most agencies 9 percent over the course of the biennium but the details of how to do this will be up to the Cabinet Secretaries.
 
The other major factor at this time is the special election on March 8 to fill four vacant House seats. The election will determine who controls the House for the rest of the session and is keeping the General Assembly from tackling many of the major issues until the results are known.
 
The P3 legislation was filed on January 27 in both the House and Senate. Senate Bill 132 and House Bill 309 will both be heard in committee this coming week. Both bills keep P3 within the framework of the model procurement code and guarantee AIA Kentucky a seat at the table during the development of the administrative regulations. AIA Kentucky supports both versions of the P3 legislation.
 
Below are the bills AIA Kentucky is currently tracking. We are currently reviewing HB 55 which concerns the powers and duties of local government and HB 319 which makes changes to the powers and duties of the Government Contract Review Committee.
 
A reminder that the AIA Kentucky legislative breakfast is February 10 from 8 to 9:30 in the Capitol Annex cafeteria. 
   
Greg Brotzge 
AIA Kentucky Lobbyist 
 
Bill Activity Report 
   
Below is the current status of bills AIA Kentucky is tracking.
Report created on February 8, 2016  
 
HB30
LICENSING FEES (MONTELL B) AN ACT relating to licensing fees and making an appropriation therefor.

Amend KRS 198B.6674, 227.050, and 318.136 to determine excess funds within the Division of Heating, Ventilation, and Air Conditioning, the Division of Plumbing, and the Electrical Division of the Department of Housing, Buildings and Construction; direct excess funds to be used to credit licensing fees; limit any transfer of funds to only excess funds in the account.
 
Current Status:   
1/5/2016 - (H) Referred to Committee House Appropriations and Revenue
 
   
HB55
CONSOLIDATED LOCAL GOVERNMENTS (WAYNE J) AN ACT relating to planning and zoning in consolidated local governments.

Amend KRS 100.137 to delete language relating to certain cities and their requirements to adopt planning and zoning requirements; amend KRS 100.201, 100.202, and 100.205 to conform.
 
Current Status:   
2/9/2016 - (H) Posted for Passage in Consent Orders of the Day; w/HCS 1
 
   
HB57
TAX INCREMENT FINANCING (KEENE D) AN ACT relating to tax increment financing.

Amend KRS 154.30-060 to expand the definition of "mixed-use" project, and to delete the upper investment limit on a project that can qualify as a mixed-use development project; provide that the provisions of the act are effective for applications received after the effective date.
 
Current Status:   
2/2/2016 - (H) recommitted to committee House Appropriations and Revenue
 
   
HB73
KENTUCKY JOBS (NELSON R) AN ACT relating to Kentucky jobs.

Create new sections of KRS Chapter 336 establish definitions and to require contractors in public works projects over $250,000 to have 51% of its employees be Kentucky residents and 15% of its employees be apprentices in an approved apprenticeship program for the entirety of the project; require, for public works projects under $250,000, contractors to have at least one apprentice in an approved apprenticeship program; require a public authority to include the employment requirements in the bid and contract for the public works project and provide written notice of the requirements; grant the Department of Workplace Standards enforcement authority over violations by public authorities or contractors; amend KRS 336.990 to provide civil penalties for violation; designate the Act as the "Kentucky Jobs Act."
 
Current Status:   
1/13/2016 - (H) posted in committee House Labor and Industry
 
   
HB80
OPEN RECORDS (HARRIS C) AN ACT relating to open records.

Amend KRS 61.870 to narrow the funding criteria that determines exemptions from the definition of "public agency"in the Kentucky Open Records Act.
 
Current Status:   
2/4/2016 - (S) Referred to Committee Senate State and Local Government
 
   
HB91
GOVERNMENT CONTRACTS (YONTS B) AN ACT relating to government contracts.

Amend various sections in KRS Chapter 45A to expand and refine the list of entities included in definition of "contracting body"; allow the Goverment Contract Review Committee to determine the definition of "governmental emergency"; refine the definition of "memorandum of agreement"; correct references to universities and colleges and institutions of higher education; refine the definition of "personal service contract" to eliminate professional skill or judgment requirement and specifically include contracts for personal or professional services and group health care for public employees; allow the committee to establish reporting schedule for exempt personal service contracts and memoranda of agreement; exempt contracts between postsecondary institutions and health care providers, but require reporting of such contracts; require committee review of all personal service contracts and memoranda of agreement in excess of $1,000,000, except for contracts involving child support collections which are exempted; exempt contracts $40,000 and under from request for proposals process, but require three quotes when feasible, and determination of unfeasibility may be reviewed by the secretary of the Finance and Administration Cabinet or the committee; exempt contracts $40,000 and under not requiring professional skill or judgment from routine review process, but require filing within 30 days for informational purposes; prohibit delegation of decision-making authority by secretary of the Finance and Administration Cabinet, except with respect to institutions of higher education that have elected to implement procurement procedures in accordance with statutory authority; delete requirement for annual reports; delineate powers of the committee.
 
Current Status:   
2/1/2016 - (H) WITHDRAWN
 
   
HB113
OFFICE OF INSPECTOR GENERAL (RIGGS S) AN ACT creating the Office of Inspector General in the Department for Local Government.

Amend KRS 147A.002 to create the Office of Inspector General within the Department for Local Government; create a new section of KRS Chapter 147A to set duties and authorities of the Office of Inspector General.
 
Current Status:   
1/5/2016 - (H) Referred to Committee House Local Government
 
   
HB136
ENERGY EFFICIENCY TAX CREDIT (ROWLAND B) AN ACT relating to energy efficiency tax credits.

Amend KRS 141.435 and 141.436 to extend the energy efficiency tax credits for taxable years beginning on or after January 1, 2016, but no later than January 1, 2020, in the case of property used as on-farm poultry or livestock raising facilities.
 
Current Status:   
1/5/2016 - (H) Referred to Committee House Appropriations and Revenue
 
   
HB159
HEATING AND AIR CONDITIONING SYSTEMS (DONOHUE J) AN ACT relating to heating ventilation and air conditioning systems.

Amend various sections of KRS Chapter 198B to clarify the definitions of "apprentice heating, ventilation, and air conditioning mechanic," distinguish between "routine maintenance" and "major repairs," and establish definitions for "direct supervision" and "general supervision"; include on the Kentucky Board of Heating, Ventilation, and Air Conditioning Contractors one (1) member from the Kentucky Association of Master Contractors, instead of the Kentucky Association of Plumbing-Heating-Cooling Contractors; expand permitting requirements to include replacements, alterations, and major repairs of all HVAC systems that are subject to the Kentucky Building Code, but excluding the Kentucky Residential Code; establish a new licensing exception for the installation of range hood systems that are not connected to or incorporated with an HVAC system, provide more precise references to electrical licensing statutes, and correct the intended scope of the exceptions to exempt applicable licensing requirements; amend KRS 198B.658 to conform.
 
Current Status:   
1/25/2016 - (H) posted in committee House Licensing and Occupations
 
   
HB200
WORKERS COMPENSATION (ROWLAND B) AN ACT relating to workers' compensation subrogation.

Amend KRS 342.700 to add medical benefits to subrogation recovery and delete reference to legal fees and expense.
 
Current Status:   
1/13/2016 - (H) posted in committee House Labor and Industry
 
   
HB225
OCCUPATIONAL LICENSURE (RICHARDS J) AN ACT relating to occupational licensure for military service members and veterans.

Create a new section of KRS Chapter 12 to require administrative bodies to issue professional licenses or certificates to military service members or veterans within two years of an honorable discharge if the training received by the service member or veteran could reasonably be expected to provide the necessary experience and skills; grant the administrative body the right to deny licensure or certification if training is not equivalent; allow appeal rights; require administrative bodies to promulgate administrative regulations to carry out the provisions of the Act.
 
Current Status:   
1/27/2016 - House Veterans, Military Affairs, and Public Safety, (Bill Scheduled for Hearing)
 
   
HB227
PUBLIC PROCUREMENT (DONOHUE J) AN ACT relating to public procurement.

Create new section of KRS Chapter 45A making findings of the General Assembly and establishing policy of the Commonwealth of Kentucky to promote the Kentucky and United States economies by requiring a preference for iron, steel, and manufactured goods produced in Kentucky and the United States; create new section of KRS Chapter 45A defining "manufactured in Kentucky," "manufactured in the United States," "Kentucky," and "United States"; require preference for iron, steel, and manufactured goods made in Kentucky in construction and maintenance contracts and subcontracts; provide for a waiver of the Kentucky preference requirement; require preference for iron, steel, and manufactured goods made in the United States if the Kentucky waiver is granted; and provide for a waiver of the United States preference requirement; create a new section of KRS Chapter 45A establishing a short title of "Kentucky Buy American Act"; amend KRS 45A.343, 45A.352, 65.027, 162.070, 164A.575, 176.080, and 424.260 to require compliance with the "Kentucky Buy American Act."
 
Current Status:   
1/13/2016 - (H) Referred to Committee House State Government
 
   
HB265
POSTSECONDARY EDUCATION CAPITAL PROJECTS (CLARK L) AN ACT relating to postsecondary educational institution capital projects to be financed with university restricted funds.

Create a new section of KRS 164A.550 to 164A.630 to authorize capital projects undertaken by institutions of higher education using a combination of cash restricted funds, federal funds, and private funds even though the projects are not specifically listed in a branch budget bill; establish conditions under which projects will be authorized.
 
Current Status:   
1/29/2016 - (H) posted in committee House Appropriations and Revenue
 
   
HB272
RADON MITIGATION (THOMPSON T) AN ACT relating to radon mitigation.

Amend KRS 211.9107 to exempt a residential building contractor installing vent pipes from radon mitigation certification requirements.
 
Current Status:   
1/25/2016 - (H) posted in committee House Licensing and Occupations
 
   
HB303
EXECUTIVE BRANCH BUDGET (RAND R) AN ACT relating to appropriations and revenue measures providing financing and conditions for the operations, maintenance, support, and functioning of the government of the Commonwealth of Kentucky and its various officers, cabinets, departments, boards, commissions, institutions, subdivisions, agencies, and other state-supported activities.

The State/Executive Branch Budget: appropriate from the General Fund (Tobacco), General Fund, Restricted Funds, Federal Funds, Road Fund, Bond Funds, Agency Bonds, Capital Construction Surplus, Investment Income, Statewide Deferred Maintenance Fund, and other funds, $182,013,700 in fiscal year 2015-2016, $33,287,508,100 in fiscal year 2016-2017, and $32,051,036,100 in fiscal year 2017-2018 as follows: General Government 2015-2016 $22,370,700 2016-2017 $1,504,467,800 2017-2018 $1,538,644,000 Economic Development Cabinet 2015-2016 $975,000 2016-2017 $21,082,900 2017-2018 $22,017,500 Department of Education 2016-2017 $5,015,844,100 2017-2018 $5,006,558,900 Education and Workforce Development Cabinet 2015-2016 $900,000 2016-2017 $833,470,500 2017-2018 $847,236,600 Energy and Environment Cabinet 2016-2017 $244,344,100 2017-2018 $240,848,700 Finance and Administration Cabinet 2016-2017 $874,431,800 2017-2018 $919,630,900 Health and Family Services Cabinet 2015-2016 $111,126,200 2016-2017 $12,952,760,300 2017-2018 $13,442,186,100 Justice and Public Safety Cabinet 2015-2016 $21,157,300 2016-2017 $1,038,865,300 2017-2018 $1,041,148,500 Labor Cabinet 2016-2017 $233,085,300 2017-2018 $237,495,100 Personnel Cabinet 2016-2017 $65,055,000 2017-2018 $66,863,300 Postsecondary Education 2015-2016 $3,054,500 2016-2017 $7,630,081,700 2017-2018 $8,052,714,200 Public Protection Cabinet 2016-2017 $107,373,900 2017-2018 $108,306,900 Tourism, Arts and Heritage Cabinet 2015-2016 $15,880,000 2016-2017 $234,406,800 2017-2018 $238,146,000 Budget Reserve Trust Fund 2016-2017 $153,436,000 2017-2018 $160,960,900 Not included in the above appropriation amounts are capital project amounts as follows: Capital Projects 2015-2016 $6,550,000 2016-2017 $2,378,802,600 2017-2018 $128,278,500.
Full summary can be found in miscellaneous documents.
 
Current Status:   
1/28/2016 - (H) Referred to Committee House Appropriations and Revenue
 
   
HB319
GOVERNMENT CONTRACTS (YONTS B) AN ACT relating to government contracts.

Amend various sections in KRS Chapter 45A to expand and refine the list of entities included and excluded in definition of "contracting body"; allow the Government Contract Review Committee to determine the definition of "governmental emergency"; refine the definition of "memorandum of agreement"; correct references to universities and colleges and institutions of higher education; refine the definition of "personal service contract" to eliminate the professional skill or judgment requirement and specifically include contracts for personal or professional services and group health care for public employees and exempt certain health care and hospital contracts from postsecondary research institutions; allow the committee to establish a reporting schedule for exempt personal service contracts and memoranda of agreement; exempt contracts between postsecondary research institutions relating to hospital or health care services provided by the institution, but require reporting of such contracts; require committee review of all personal service contracts and memoranda of agreement in excess of $1,000,000, except for select contracts that are exempted; exempt contracts for $40,000 and under from the request for proposals process, but require three quotes when feasible, and state that determination of feasibility may be reviewed by the secretary of the Finance and Administration Cabinet or the committee; exempt contracts for $40,000 and under not requiring professional skill or judgment from routine review process, but require filing within 30 days for informational purposes; prohibit delegation of decision-making authority by secretary of the Finance and Administration Cabinet, except with respect to institutions of higher education that have elected to implement procurement procedures in accordance with statutory authority; delete the requirement for annual reports; delineate the powers of the committee.
 
Current Status:   
2/4/2016 - (H) posted in committee House State Government
 
   
HB350
LAND CONSERVATION TAX CREDIT (KAY II J) AN ACT relating to income tax credits promoting land conservation.

Create a new section of KRS Chapter 141 to establish a qualified conservation contribution income tax credit; require annual report; amend KRS 141.0205 to provide for the ordering of the credit; amend KRS 146.560 to include the Kentucky Heritage Land Conservation Fund Board in the evaluation of credit applications; amend KRS 262.908 to include the Purchase of Agricultural Conservation Easement (PACE) Corporation Board in the evaluation of credit applications.
 
Current Status:   
2/5/2016 - Introduced
 
   
SB9
PREVAILING WAGE (SCHRODER W) AN ACT relating to prevailing wage.

Amend KRS 337.010 to exclude the construction of educational buildings and facilities from the definition of "public works" and from meeting the requirements of the prevailing wage law.
 
Current Status:   
2/4/2016 - House Labor and Industry, (Bill Scheduled for Hearing)
 
   
SB93
LICENSING FEES (HORNBACK P) AN ACT relating to licensing fees and making an appropriation therefore.

Amend KRS 198B.6674, 227A.050, and 318.136 to determine excess funds within the Division of Heating, Ventilation, and Air Conditioning, the Division of Plumbing, and the Electrical Division of the Department of Housing, Buildings and Construction; direct excess funds to be used to credit licensing fees; limit any transfer of funds to only excess funds in the account.
 
Current Status:   
1/19/2016 - (S) Referred to Committee Senate Appropriations and Revenue
 
   
SB94
PREVAILING WAGE (MCDANIEL C) AN ACT relating to prevailing wage.

Create a new section of KRS 337.505 to 337.550 to allow local governments and special purpose governmental entities to opt out of prevailing wage requirements for public works.
 
Current Status:   
1/19/2016 - (S) Referred to Committee Senate State and Local Government
 
   
SB105
ELEVATOR MECHANIC LICENSURE (SCHRODER W) AN ACT relating to temporary elevator mechanic licensure.

Amend KRS 198B.4021 to require persons confirmed by a licensed elevator contractor to have a minimum of 24 months of work experience in the elevator industry in construction, maintenance, service, or repair; require persons confirmed by a licensed elevator contractor to have a minimum of two years of education in an apprenticeship program for elevator mechanics or nationally recognized training program in the elevator industry; describe the tasks that may be performed by one who holds a temporary elevator mechanic license; provide that a temporary elevator mechanic license is valid for one year, remains in effect if the temporary licensee stays in an approved training program, and may be renewed once; establish the conditions upon which a temporary elevator mechanic license will expire; authorize the Kentucky Department of Housing, Buildings and Construction to establish a fee for temporary licensure through administrative regulations; require fees payable to the department to be paid in the State Treasury and credited to the elevator safety program trust fund.
 
Current Status:   
1/19/2016 - (S) Referred to Committee Senate Licensing, Occupations, and Administrative Regulations
 
   
SB135
OFFENDER REENTRY (WESTERFIELD W) AN ACT relating to offender reentry.

Amend various sections of KRS Chapter 335B to modify the process of notifying a person seeking a license of a potential disqualification based on prior convictions and to recognize that some licensure categories may have disqualifications that operate by virtue of federal law; repeal KRS 335B.040.
 
Current Status:   
2/1/2016 - (S) Referred to Committee Senate Licensing, Occupations, and Administrative Regulations
 
   
SB151
TOTAL DISABILITY BENEFITS (WEST S) AN ACT relating to the off-setting of total disability benefits for light duty work.

Amend KRS 342.730 to allow payments of temporary total disability benefits to be offset by wages paid to an employee by an employer for light duty or alternative duty work performed during a period of temporary total disability.
 
Current Status:   
2/5/2016 - (S) Referred to Committee Senate Economic Development, Tourism, and Labor
 
   
 
Week in Review - 2/5/2016
 
No-Jail Jailers Bill Passes Kentucky Senate
Kentucky jailers who don't have a jail to run would have to file quarterly progress reports with their county fiscal courts under a bill that passed the state Senate on Tuesday.

Treasurer Allison Ball says her office could halt payment on checks that don't pass legal scrutiny
With less than a full month in office, Treasurer Allison Ball is gearing up to keep her promises of fiscal responsibility and oversight of the commonwealth's finances - even if that means going to court or halting payment on a state check.

Bill that puts Planned Parenthood last in line for funding headed to Ky. House
A bill is now headed to the Kentucky House that would put Planned Parenthood last in line to get state funding.

Bevin signs informed consent abortion bill
Several state senators on Tuesday walked a controversial anti-abortion bill from the Senate chamber on the third floor of the Capitol to the first-floor office of Gov. Matt Bevin, who quickly signed the measure into law.

Hardin County's right-to-work ordinance invalidated in federal court ruling
A federal judge struck down Hardin County's right-to-work ordinance in an order Wednesday, ruling that states, not counties, can exempt themselves from portions of the National Labor Relations Act.

House Panel Kills Kentucky Prevailing Wage Repeal
A bill that would eliminate the prevailing wage on public school projects on Thursday failed to pass a House committee.

Bill enacting harsher penalties for synthetic drug crimes clears judiciary panel
Trafficking in synthetic drugs like flakka would be guilty of a class D felony under legislation that unanimously passed the House Judiciary Committee on Wednesday.

Lawmakers on House budget review panel want info on CHFS cuts, talk loss of kynect
Members of a House budget subcommittee continued to press officials in Gov. Matt Bevin's administration for details on proposed cuts totaling 4.5 percent in the current fiscal year and 9 percent in the upcoming biennium during a meeting Wednesday.
 
Louisville Ultra-Fast Internet Moves A Step Further
The Louisville Metro Council will soon consider measures to streamline the process for bringing ultra-fast Internet access, including a plan to condense the franchise-granting authority of Jefferson County's suburban cities for communication services into one entity.

Grand jury subpoenas records from Alison Lundergan Grimes' campaigns
Records from Democrat Alison Lundergan Grimes' campaigns for U.S. Senate and Kentucky secretary of state have been subpoenaed by a federal grand jury in Lexington, as were records from her father, Jerry Lundergan.

Summary
Questions or comments may be directed to Legislative Chair Eric Steva, AIA, Lobbyist Greg Brotzge or Executive Vice President Janet Pike
 
Janet D. Pike, Hon. AIA
Executive Vice President
AIA Kentucky
(859) 223-8201
jpike@aiaky.org
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AIA KY LEGISLATIVE DAY
February 10, 2016

HIGHLIGHTS
2015 Legislative Day