Legislative Update

April  03, 2017

The House and Senate adjourned until January 2, 2018 last Thursday night. This brought an end to the 2017 General Assembly. The session saw a number of major pieces of legislation become law as the Republicans took full advantage of their new super majorities. Chief among these were the passage of right-to-work legislation, repeal of the prevailing wage law and enactment of charter school legislation.

With one exception, AIA Kentucky had a good session. Despite our best efforts, HB 360 dealing with agritourism passed on the final day of the session. The bill was amended in the Senate so that it doesn't apply to distilleries, wineries and breweries. This was a good change because it limits the bill's applicability.

Going forward, it is not clear how the legislation will be put into practice. 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. Our concern about this bill was that it relaxes life safety standards for buildings that are places of public assembly. However, HBC and the State Fire Marshall have both stated that these facilities must be in compliance with the building code, including fire suppression standards.

SB 214 which would have increased the cost of rooftop solar was tabled after we and several other groups voiced concerns. This issue is likely to resurface in 2018.

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.

HB 443 which among other provisions, restructures the Office of Occupations and Professions passed on March 30 and is awaiting the Governor's signature. 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 Kentucky Board of Architects but we will be watching for proposed changes down the road. There were a number of reorganization bills this session that abolished numerous small boards and reduced the number of reports that are required to be made to the legislature. Over time, these changes will have a significant impact on how state government operates.

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 April 3, 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 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:   

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:   

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:   

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:   

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:   

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:   
3/30/2017 - delivered to Governor

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:   
3/30/2017 - delivered to Governor

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:   
3/30/2017 - delivered to Governor

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:   
3/30/2017 - delivered to Governor

REORGANIZATION (MILLS R) AN ACT relating to reorganization and making an appropriation therefor.

Establish KRS Chapter 324B and create new sections thereof to grant the Department of Professional Licensing supervision over the new Real Estate Authority; define terms, including "real property board," which means the Board of Home Inspectors, Board of Real Estate Professionals, Board of Appraisers, or Board of Auctioneers; change the name of the Real Estate Commission to the Board of Real Estate Professionals; establish the department, which is managed by a commissioner, within the Public Protection Cabinet; direct the commissioner to issue written statements indicating the specific responsibilities of each real property board, board member, and board staff; deem all administrative regulations previously promulgated by the real property boards or their predecessors as retroactively promulgated by the commissioner; authorize the commissioner to promulgate future administrative regulations relating to any real property board, but only after the relevant real property board has first adopted the administrative regulation; create the Kentucky Real Estate Authority within the Department of Professional Licensing; appoint an executive director to manage the authority; establish the authority with five members, composed of the executive director and the chair of each of the four real property boards; make the executive director the chair of the authority, who may only vote in the case of a tie; set authority member reimbursement and compensation; direct the authority to oversee the real property boards; allow the authority to hear appeals of real property board disciplinary actions; consolidate the authority, boards, and their employees at one physical location; permit the boards to submit an annual budget to the authority, requiring approval by a majority vote of the authority; empower the Public Protection Cabinet secretary to appoint all personnel of the authority and the real property boards; order the authority to hire up to four administrative coordinators to carry out the administrative functions and day-to-day operations of the real property boards; establish the responsibilities of the executive director; repeal, reenact, and amend KRS 224.10-052 and 224.10-053 as new sections of KRS Chapter 324B to replace the Office of Occupations and Professions with the Department of Professional Licensing; direct the department to assume all of the responsibilities formerly held by the office; amend KRS 198B.700, 324.010, 324A.010, and 330.020 to define "authority," "commissioner," and "department"; repeal, and reenact 198B.704, 324.281, 324A.015, and 330.050 to establish the boards of home inspectors, real estate professionals, appraisers, and auctioneers, respectively; set each board at five members and list the requirements and circumstances for membership; fix the procedures for selecting members for the boards; determine board privileges and duties; forbid the commissioner from promulgating or changing an administrative regulation relating to a board unless that board has already adopted the promulgation or change; allow appeal of a board decision to the authority; prohibit any officer or employee of the cabinet, department, or authority from attempting to influence or interfere with a board's disciplinary decision or proceeding; establish details relating to board budgets and fees; retain the agency fund account and related processes for the auctioneer board; forbid the authority from imposing a fine against a licensee without previous board approval; name circumstances that could lead to removal of a board member; set reimbursement and compensation limits for board members; permit board members and staff to attend and travel to and from board-related or industry-related meetings and events with the approval of the authority; amend KRS 198B.728, 324.200, 324A.052, and 330.130 to establish appellate rights for parties aggrieved by a board decision; amend KRS 324A.150 to define "commissioner"; amend KRS 12.020, 12.252, 164.6903, 164.6905, 164.6909, 164.6911, 164.6913, 164.6915, 164.6923, 164.6929, 198A.030, 198B.706, 198B.712, 198B.714, 198B.722, 198B.724, 286.8-990, 309.131, 309.329, 309.404, 319B.020, 319B.040, 324.020, 324.040, 324.045, 324.046, 324.080, 324.085, 324.090, 324.111, 324.112, 324.115, 324.117, 324.141, 324.142, 324.150, 324.151, 324.160, 324.170, 324.220, 324.236, 324.237, 324.238, 324.2812, 324.285, 324.286, 324.287, 324.288, 324.310, 324.312, 324.330, 324.360, 324.395, 324.400, 324.410, 324.420, 324.425, 324A.020, 324A.035, 324A.040, 324A.045, 324A.047, 324A.050, 324A.065, 324A.100, 324A.152, 324A.154, 324A.156, 324A.158, 324A.160, 324A.162, 324A.163, 329A.025, 330.060, 330.070, 330.110, 330.192, 334.170, 344.385, 433.900, 433.902, and 433.906 to conform; repeal KRS 324.2811, 324.282, 324.283, 324.284, 324A.025, and 324A.060; set initial real property board terms; forbid the board member expansions from removing the three initial appointees; allow board members serving on November 30, 2016, to serve out their terms as nonvoting ex officio members of their boards with reduced compensation; transfer active personnel serving the real property boards on November 30, 2016, to the authority; confirm Executive Orders 2016-859 and 2016-881, except as expressly modified; APPROPRIATION.
Current Status:   
3/30/2017 - delivered to Governor

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:   

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:   

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:   

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:   

Week In Review 
   March 31, 2017     
The General Assembly wrapped up its work with little time to spare Thursday, adjourning sine die minutes before midnight following a legislative blitz that included a last-minute pitch from Gov. Matt Bevin's administration for a $15 million bond authorization to help coax an undisclosed economic development opportunity to eastern Kentucky.

In a last-minute surprise, lawmakers were asked by the Bevin administration Thursday night to approve up to $15 million for a "mystery" economic development project somewhere in Eastern Kentucky.

A controversial measure to strip power from the state Attorney General's office died in the final minutes of the 2017 legislative session Thursday when the House failed to take it up before the session expired at midnight.

The General Assembly passed legislation that would extend the life of a tax increment financing project for the KFC Yum! Center Thursday, sending the bill to Gov. Matt Bevin for his signature or veto.

The sponsor of a concurrent resolution establishing a task force to recommend changes to the state's adoption system withdrew the item Thursday after the Senate removed the task force requirement and instead lumped adoption among more than a dozen issues to study during the legislative interim.

The General Assembly on Wednesday overturned Gov. Matt Bevin's veto of a mental health law known as Tim's Law and also overrode Bevin vetoes of three other measures including a bill to regulate drones and a resolution to name highways.

The Kentucky General Assembly sent a drug bill to Gov. Matt Bevin on the final day of the legislative session that limits some narcotics prescriptions to three-day supplies and increases trafficking penalties for fentanyl and heroin.

Lawmakers send Bevin major bills on education, criminal justice
The Kentucky General Assembly sent Gov. Matt Bevin several bills to consider Wednesday, including one that would make significant changes in public education and another that would make it easier for felons to get work experience while incarcerated.

The General Assembly voted overwhelmingly to reverse Gov. Matt Bevin's vetoes Wednesday, drawing cheers from mental health advocates in the galleries of the Senate and House of Representatives.

Kentucky lawmakers completed quick work Thursday evening on a proposal championed by the Senate's top leader to reduce the beleaguered coal industry's costs to cover claims by workers suffering from black lung disease.
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