Legislative Update

March  20, 2017

The veto recess began March 16. Each session, the General assembly schedules this recess to give the Governor time to veto any legislation which he must do within 10 days, excluding Sundays. The General Assembly then reconvenes to consider any vetoes. They will also consider additional legislation that has not passed. The final two days of the session are scheduled for March 29 and 30. There will be no report next week due to the recess. A final report will be issued after the General Assembly adjourns Sine Die on March 30.

AIA Kentucky remains opposed to HB 360 dealing with Agritourism. The bill was amended in committee on March 1 and has been on the fast track ever since. The bill defines an Agritourism building and exempts such buildings of a certain size, erected prior to December 31, 2016 from needing the services of an architect. We are concerned about this bill because it relaxes life safety standards for buildings that are places of public assembly. The bill is currently in the Senate Rules Committee but could still be considered when the legislature returns from the veto recess. An amendment was added in committee to remove distilleries, wineries and breweries from the bill's provisions. AIA Kentucky testified against the bill in committee on March 7.

HB 520 establishing charter schools passed the legislature on March 15. The Senate Committee Substitute made some minor changes which the House accepted. With the passage of HB 520 all the major priorities of the new Republican majority have become law.

We are reviewing HB 443 which among other provisions, restructures the Office of Occupations and Professions. The office will become the Department of Professional Licensing and be headed by a Commissioner appointed by the Governor. The bill does not appear to make any substantive changes to the Board of Architecture but we will be watching for proposed changes down the road.

Our legislative day on March 7 was a success and the timing was good given that HB 360 was heard in committee that day.
Greg Brotzge 
AIA Kentucky Lobbyist 
Below is the current status of bills AIA Kentucky is tracking.
Report created on March 17, 2017

PREVAILING WAGE (HOOVER J) AN ACT relating to prevailing wage and declaring an emergency.

Amend various KRS sections to delete prevailing wage provisions; abolish the Prevailing Wage Review Board; make conforming amendments; create new section of KRS Chapter 65 to prohibit local governments from requiring employers to pay prevailing wage to employees; repeal KRS 337.505, 337.510, 337.512, 337.520, 337.522, 337.524, 337.525, 337.530, 337.540, 337.548, and 337.550, relating to prevailing wages in public works; apply this repeal to public works projects for which bids have not yet been awarded as of the effective date of the Act; EMERGENCY.
Current Status:   

PUBLIC PROCUREMENT (DONOHUE J) AN ACT relating to public procurement.

Create new sections of KRS Chapter 45A to set forth findings of the General Assembly and establish 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; define "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; provide for a waiver of the United States preference requirement; establish 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:   
1/3/2017 - (H) Referred to Committee House State Government

PUBLIC BENEFIT CORPORATIONS (MILLER J) AN ACT relating to public benefit corporations.

Amend KRS 14A.3-010, 271B.1-400, 271B.2-020, 271B.6-260, 271B.7-400, 271B.8-300, 271B.13-020, and 271B.16-210, and create a new section of Subtitle 11 of KRS Chapter 271B to establish public benefit corporations.
Current Status:   
3/8/2017 - delivered to Governor

ADMINISTRATIVE REGULATIONS (IMES K) AN ACT relating to administrative regulations.

Amend KRS 13A.010 to amend the definition of "administrative regulation" and to define "last effective date"; amend KRS 13A.040 to require the regulations compiler to maintain a list of all administrative regulation numbers and their corresponding last effective dates; amend KRS 13A.220 and 13A.222 to make conforming changes to enable the renewal of an administrative regulation; amend KRS 13A.310 to provide that, beginning July 1, 2017, an ordinary administrative regulation shall expire 7 years after its last effective date; provide that an administrative regulation that has a last effective date prior to July 1, 2012, shall expire on July 1, 2019; establish duties of regulations compiler; and establish requirements for an administrative body that does not want an administrative regulation to expire.
Current Status:   
3/14/2017 - delivered to Governor

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 implement the section; clarify that military training and experience cannot be substituted for the acquisition of a college degree or passage of a specific examination when either is a prerequisite for licensure or certification.
Current Status:   
3/14/2017 - delivered to Governor

VETERAN OWNED BUSINESSES (JOHNSON D) AN ACT relating to service-disabled veteran-owned small businesses.

Create a new section of KRS Chapter 45A to require the Finance and Administration Cabinet to set aside a minimum of 3% of the value of all state contracts for goods and services for service-disabled veteran-owned small businesses; require that when an item has been designated as a set aside for service-disabled veteran-owned small businesses, that the invitations for bids shall be confined to those qualified small businesses; if fewer than three qualified bids are submitted for an item and if the cabinet determines that the bids received are not cost effective, then the cabinet may open bidding to other businesses.
Current Status:   
3/15/2017 - delivered to Governor

OPEN RECORDS (HARRIS C) AN ACT relating to open records.

Amend KRS 61.870 to make an exception for certain services or functions to the exemption from the definition of "public agency" that excludes services provided resulting from competitive bidding.
Current Status:   
2/9/2017 - (H) Referred to Committee House State Government

DOCTORAL PROGRAMS (CARNEY J) AN ACT relating to advanced practice doctoral programs at comprehensive universities.

Amend KRS 164.295 to remove the maximum number of advanced practice doctoral programs that may be offered by the six comprehensive universities; require the Council on Postsecondary Education to review advanced practice doctorates consistent with its review schedule for all other academic programs; prohibit a comprehensive university from offering a terminal degree in veterinary medicine, chiropractic, or optometry or a primary degree in architecture.
Current Status:   
2/9/2017 - (H) Referred to Committee House Education

AGRICULTURE BUILDINGS (DECESARE J) AN ACT relating to agriculture buildings and declaring an emergency.

Amend KRS 227.300 to prohibit the commissioner of Department of Housing, Buildings and Construction from requiring exempt buildings used for agritourism and previously used for agricultural purposes to install fire protection sprinkler system, create a new section of KRS Chapter 198B to prohibit any local government or special purpose governmental entity from modifying the state building code to require fire protection sprinkler systems in buildings used for agritourism activities and previously used for agricultural purposes; EMERGENCY.
Current Status:   
2/24/2017 - (H) WITHDRAWN

STATE GOVERNMENT (MOFFETT P) AN ACT relating to statutorily mandated boards, councils, and commissions within state government.

Repeal various sections in KRS Chapters 11, 15., 18A, 36, 64, 146, 147, 153, 158, 164, 171, 177, 198B, 205, 211, 216, 336, 342, and 403 to abolish inactive boards, commissions, committees, and councils, including the Agricultural Resource Development Authority, the Architectural Barriers Advisory Committee, the Athletic Trainers Advisory Council, the Auto and Truck Recyclers Licensing Advisory Board, the Capitol Centennial Commission, the Cardiovascular Disease Initiative, the Child Support Enforcement Commission, the Children's Health Insurance Program Advisory Council, the Diabetes Research Board, the Council on Domestic Violence and Sexual Assault, the Advisory Committee for Educational Improvement, the e-Health Network Board, the Council for Families and Children, the Family Health Care Providers Board, the Innovation Commission, the Labor-Management Advisory Council, the My Old Kentucky Home Advisory Commission, the National Guard and Reserve Employers' Council, the Natural History Museum Board of Directors, the Personnel Steering Committee, the Public Officials Compensation Commission, the Southern Growth Policies Board, the Underground Railroad Advisory Council, the War of 1812 Bicentennial Commission, the Workers' Compensation Advisory Council, the Bicentennial Commission, the Health Care Infrastructure Authority, and the Historical Events Celebration Commission; amend KRS 148.400 to direct the use of funds in the "My Old Kentucky Home Endowment Fund"; amend KRS 403.705 to decrease the responsibilities of local domestic violence coordinating councils and to direct any recommendations be transferred to the commissioner of the Department for Community Based Services; repeal, reenact and amend KRS 407.707 to create a Sexual Assault Response Team Advisory Committee attached to the Department for Community Based Services, staffed as necessary by the secretary of the Cabinet for Health and Family Services; transfer any committee recommendations to the commissioner of the Department for Community Based Services; require the secretary to make certain appointments; establish continuation of service of members of the Sexual Assault Response Team Advisory Committee; direct transfer of funds of abolished boards, commissions, committees, and councils to the appropriate cabinets and agencies; amend various KRS sections to conform.
Current Status:   
3/14/2017 - delivered to Governor

TAX INCREMENT FINANCING (OSBORNE D) AN ACT relating to tax increment financing and declaring an emergency.

Amend KRS 65.490 to allow an extension of time for certain tax increment financing pilot programs; EMERGENCY.
Current Status:   
3/14/2017 - (S) Reported Favorably to Rules, w/SCS 1

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 Easements (PACE) Corporation board in the evaluation of credit applications; amend various statutes to allow the Department of Revenue to report credit information to the Legislative Research Commission.
Current Status:   
2/15/2017 - (H) Referred to Committee House Appropriations & Revenue

AGRITOURISM (MILES S) AN ACT relating to agritourism.

Amend KRS 100.111 to expand the definition of "agricultural use" to include at least five acres devoted to agritourism; redefine "agritourism activity" and define "inherent risks of agritourism activity"; amend KRS 219.081 to make a technical correction.
Current Status:   
3/7/2017 - (S) SECOND READING to Rules, w/SCA 1

TAX INCREMENT FINANCING (HEATH R) AN ACT relating to tax increment financing and declaring an emergency.

Amend KRS 65.7045 to define "technology park"; amend KRS 65.7043 and 65.7049 to expand mixed-use development projects to include a mixed-use development with a technology park; 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; amend KRS 65.7053 to conform; provide that the provisions of the Act are effective for applications for which a Tax Incentive Agreement has not been approved prior to the effective date of this Act; EMERGENCY.
Current Status:   
3/15/2017 - (S) SECOND READING, to Rules

BUILDING TRADE REORGANIZATION (WELLS W) AN ACT relating to reorganization of the building trades.

Create a new section of KRS Chapter 198B to create and establish the Housing, Buildings and Construction Advisory Committee; constitute membership of the committee and fix compensation; require the committee to provide ongoing advice to the department; prohibit the committee from becoming directly involved in licensing and regulation of housing, building and construction matters regulated by the department; provide that the department shall give the committee 30 days to review and comment on a proposed regulation before the regulation is promulgated, amended, or repealed; amend various sections in KRS Chapter 198B to abolish the Kentucky Board of Housing, Buildings and Construction, the Board of Heating, Ventilation and Air Conditioning Contractors, the Kentucky Single Family Dwellings Advisory Committee and the Elevator Advisory Committee; amend various sections in KRS Chapter 227 to abolish the Electrical Advisory Committee and the Manufactured Home Certification and Licensure Board; amend various sections in KRS Chapter 236 to abolish the Board of Pressure Vessel Rules; amend various sections in KRS Chapter 318 to abolish the State Plumbing Code Committee; transfer all authority, duties, functions, rights, responsibilities, obligations, records, equipment, staff and supporting budgets of the abolished boards and committees to the department; amend various sections of KRS Chapters 198B, 227, 227A, 236, and 318 to conform; confirm Executive Order 2016-849.
Current Status:   
3/14/2017 - (S) SECOND READING, to Rules

CONSTRUCTION PERFORMANCE BONDING (MORGAN W) AN ACT relating construction performance bonding.

Amend KRS 198B.040 to require the establishment of a performance bond program for contractors and subcontractors; determine who is subject to the requirement; require that performance bonds be posted for all contracts $5,000 or greater; authorize the Board Housing, Buildings and Construction to promulgate administrative regulations necessary to implement a performance bond program.
Current Status:   
2/21/2017 - (H) Referred to Committee House Licensing, Occupations & Administrative Regulations

KENTUCKY BUSINESS INVESTMENT PROGRAM (DECESARE J) AN ACT relating to tax incentives offered through the Kentucky Business Investment Program.

Amend KRS 154.32-010 to define terms; amend KRS 154.32-020 to allow an approved company engaged in the development of infrastructure, including the erection of buildings, necessary to facilitate the location of manufacturing, agribusiness, nonretail service and technology, or national or regional headquarters operation in this state to qualify for tax credits against KRS 141.020, 141.040, and 141.0401; sunset tax credit program; amend KRS 154.32-070 to outline credit provisions; amend KRS 154.32-100 to require reporting to the Legislative Research Commission; create a new section of KRS Chapter 141 to provide credit for infrastructure activity; amend KRS 141.0205 to provide order in which credits may be taken; amend KRS 131.190 to allow Department of Revenue to report data; amend various statutes to conform.
Current Status:   
2/21/2017 - (H) Referred to Committee House Appropriations & Revenue

TAXATION (KEENE D) AN ACT relating taxation.

Create a new section of KRS Chapter 141 to provide the state abandoned building income tax credit and require reporting by the Department of Revenue to the Legislative Research Commission; amend KRS 141.0205 to order the credit; amend various sections of KRS Chapters 131 and 141 to conform with the reporting requirements and make technical corrections; amend KRS 154.32-080 to allow a preliminarily approved company also qualifying for the abandoned building tax credit, with an investment of $1 million or more, to also request an advance disbursement.
Current Status:   
2/21/2017 - (H) Referred to Committee House Appropriations & Revenue

CHARTER SCHOOLS (CARNEY J) AN ACT relating to charter schools and making an appropriation therefor.

Create new sections of KRS Chapter 160 to describe the intent of the General Assembly and the purposes of authorizing public charter schools; establish a public charter school project and identify public charter school authorizers; define terms; describe the characteristics and the requirements of a public charter school; identify the requirements and the components of a public charter school application; describe the responsibilities of public charter school authorizers; describe public charter school renewal and revocation processes; identify the components of a public charter school annual report; identify the requirements for student enrollment; create a new section of KRS Chapter 157 to identify funding practices for public charter schools; allow public charter schools to accept gifts and donations; create a new section of KRS Chapter 161 to identify employment conditions for public charter school staff; amend KRS 161.220 to include a qualified teacher employed by the board of directors of public charter schools in the state-sponsored retirement system; amend KRS 78.510 to include public charter schools in the definition of "county" so as to include noncertified employees of public charter schools in the state-sponsored retirement system; APPROPRIATION.
Current Status:   
3/15/2017 - delivered to Governor

GUBERNATORIAL APPOINTMENTS (STIVERS R) AN ACT relating to gubernatorial appointments and declaring an emergency.

Amend KRS 63.080 to permit the Governor or other appointing authority to remove and replace certain board or council appointments to comply with statutory proportional representation requirements for the board or council and to permit the Governor to remove and replace appointments if a board or council is unable to perform its statutory duties; amend KRS 156.029, 164.011, 164.131, 164.180, 164.321, 164.350, 164.821, and 164.830 to conform; EMERGENCY.
Current Status:   
3/15/2017 - delivered to Governor

ELECTRIC METERING (SEUM D) AN ACT relating to metering of electric service.

Create new sections of KRS Chapters 96 and 278 to define "smart meter" and to require utilities seeking to install smart meters to give notice to affected customers and the right to opt out of having a smart meter installed on the customer's premises; specify that customers are not required to pay for any electricity necessary to power the smart meter.
Current Status:   
2/8/2017 - (S) Referred to Committee Senate Natural Resources and Energy

ROOFING CONTRACTORS (HORNBACK P) AN ACT relating to roofing contractors.

Amend KRS 367.628 to prohibit causing damage to a roof to increase the scope of repair or replacement in order to secure a contract for repair or replacement from an insurance policy; create a new section of KRS 367.620 to 367.628 to allow any person to maintain an action to enjoin work in violation of KRS 367.620 to 367.628 and to entitle the plaintiff to recover twice the amount of economic damages plus reasonable attorney's fees.
Current Status:   
3/8/2017 - delivered to Governor

GOVERNMENT PROCUREMENT (SCHRODER W) AN ACT relating to government procurement.

Amend KRS 45A.380 to allow a local public agency to contract through noncompetitive negotiation when a contract is with a private real estate development and the contract requires the developer to increase the collection capacity of the sanitary sewer or storm water pipe serving the development, with the local public agency only paying for the increase in the collection capacity.
Current Status:   
3/15/2017 - delivered to Governor

PUBLIC PRIVATE PARTNERSHIPS (WISE G) AN ACT relating to public private partnerships.

Amend KRS 45A.077 to exempt capital projects utilizing the public-private partnership delivery method with a value over twenty-five million dollars from authorization by the General Assembly; extend notice periods for capital project submissions; amend KRS 65.028 to allow some members of the Kentucky Local Government Public-Private Partnership Board to send designees instead of appearing in person; exempt agreements with a value less than thirty percent of the local government general fund revenues from being submitted to the Kentucky Local Government Public-Private Partnership Board; amend KRS 175B.015 to remove the requirement for quarterly meetings of the state authority if a bi-state or project authority exists; amend KRS 175B.020 to remove the commitment to pay costs incurred in evaluation of unsolicited proposal and implement a standardized fee set by administrative regulation; require costs paid by an unsolicited proposer to be negotiated in an agreement between the state authority and the proposer; amend various statutes to prohibit proposals that seek or purport to bind any future General Assembly to appropriate any moneys.
Current Status:   
3/15/2017 - (S) recommitted to committee Senate Veterans, Military Affairs, and Public Protection

NET METERING (CARPENTER J) AN ACT relating to net metering.

Amend the definitions in KRS 278.465 to require that net metering customers use a single meter on their premises, that the customers use the electricity generated for all or part of their electricity requirements, and to increase the allowable size of eligible electric generating facilities from 30 kilowatts to 1000 kilowatts; amend KRS 278.466 to only apply to eligible customer-generators taking net metering service on July 15, 2017, to allow retail electric suppliers to recover all costs necessary to serve all eligible customer-generators taking service after July 15, 2017, and to provide that excess electricity credits are not transferable between meters.
Current Status:   
3/1/2017 - Senate Natural Resources and Energy, (Bill Scheduled for Hearing)

Week In Review 
   March 17, 2017     
Kentucky is on the verge of joining 43 other states that have charter schools.

Legislation that would move the state to a performance-based funding model for the state's public colleges and universities is heading to Gov. Matt Bevin's desk after passing the House on a 65-29 vote Tuesday.

The House voted 94-0 to approve a wide-ranging education reform bill Wednesday that has been two years in the making.
Parents seeking babysitters, school systems hiring staff and operators of summer youth camps soon will be able to learn whether someone has a history of child abuse or neglect under a far-reaching law passed Wednesday by the General Assembly.
House passes trio of Senate's priority bills as veto break looms
The House of Representatives has passed legislation that would give governors broader authority in removing trustees from university boards on a 60-33 vote Wednesday.
A bill to limit appeals of zoning decisions passed the Senate Tuesday - twice - and must go back to the House for approval of a change made in the Senate to exempt landfills.

A bill designed to break the revolving cycle of hospitals, jails and homelessness won final passage in the House Tuesday on a unanimous vote of 95-0.
A controversial bill that would require school districts to allow students to enroll in the school closest to their home appears dead this legislative session.

A bill to remake how solid waste and recycling is handled in Louisville has cleared the legislature and was sent to Gov. Matt Bevin for his signature.

A House bill that would require police to get a warrant before engaging in drone surveillance in most situations cleared the Senate Committee on Judiciary on Tuesday.
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
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2017 Legislative Day