Legislative Update

March  5, 2018



Last week was a busy week in Frankfort. The House passed its version of the budget along with a revenue bill that included a fifty cent cigarette tax increase and a tax on opioids. Rep. Rudy, Chair of House Appropriations and Revenue, also indicated he intends to craft a tax reform proposal between now and the end of the session.

In the coming week, the Senate will begin work on amending the House Budget and will finally take up Senate Bill 2, the constitutional amendment on tort reform.

The Public Protection Cabinet's overhaul of State Boards and Commissions was filed on February 26 as House Bill 465. The bill is similar to the draft that has been circulating with the changes that were discussed during the stakeholder meetings. It's not certain when the bill will be heard in committee but it could be as early as this week.

The bill leaves all current boards intact with the same membership they have now. The major changes standardize board procedures, require periodic reviews of board operations and increase the oversight authority of the Public Protection Cabinet.

AIA Kentucky remains opposed to HB 227 which would sharply curtail Kentucky's net metering program and make solar power less attractive. The bill was recommitted to the Natural Resources Committee last week, However, we expect a new committee substitute to surface this coming week. Members are urged to call their State Representative and urge them to vote no on HB 227.

As mentioned, SB 2 is on the Senate Floor and is suppose to be voted on today, March 5. The bill would allow for the creation of a uniform statute of limitations and a statute of repose. AIA Kentucky has long favored a statute of repose for design professionals as a means of creating certainty in Kentucky's tort system.

   
 
Greg Brotzge 
AIA Kentucky Lobbyist 
 
Below is the current status of bills AIA Kentucky is tracking.
Report created on  March 5, 2018
 
HB50
OCCUPATIONAL LICENSING REGULATIONS (NEMES J) AN ACT relating to occupational licensing regulations.

Create new sections of KRS Chapter 12 to define terms; set forth requirements for all occupational licensing regulations established by an agency on or after November 15, 2018; require each agency to conduct a comprehensive review of all occupational licensing regulations under its jurisdiction every five years and to prepare and submit a report of its review to the Legislative Research Commission; establish a process to petition an agency to repeal or modify an occupational licensing regulation; allow a petitioner to appeal an agency's actions or inaction to Circuit Court.
 
Current Status:   
1/19/2018 - (H) posted in committee House Licensing, Occupations, and Administrative Regulations
 
HB54
HISTORICAL PRESERVATION (MORGAN W) AN ACT relating to historical preservation.

Create new sections of KRS Chapter 11 to establish the Kentucky Memorial Preservation Act of 2018; define terms; create standards for preservation; prohibit any person from preventing maintenance of memorials under the jurisdiction of a governmental entity; establish the Committee on Kentucky Monument Protection and provide the structure, process, and membership of the committee; establish the duties of the committee; establish a petition process for a waiver if an entity wants to remove, alter, rename, relocate, or disturb certain significant properties; create certain exemptions; authorize the Attorney General to determine whether an entity responsible for the architecturally significant building, memorial building, memorial school, memorial street, or monument has complied with the provisions of this Act; require the Division of Historic Properties to promulgate administrative regulations under KRS Chapter 13A for the implementation of this Act; amend KRS 11.026 to conform.
 
Current Status:   
1/2/2018 - (H) Referred to Committee House State Government
 
HB91
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," 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:   
1/4/2018 - (H) Referred to Committee House State Government
 
HB100
BUILDING INDUSTRY LICENSURE (BECHLER L) AN ACT relating to building industry licensure.

Amend KRS 198B.650 to revise the definitions of "maintenance person or maintenance engineer," "major repair," and "routine maintenance of heating, ventilation, or air conditioning"; amend KRS 198B.658 to change the experience requirement from five years to two years for a master, and from four years to two years for a journeyman; amend KRS 198B.678 to permit a master HVAC contractor to represent more than one firm if specified criteria are met; create a new section of KRS 198B.650 to 198B.689 to require the department to grant a 180-day interim period to allow a company to use the license of a deceased master HVAC contractor; amend KRS 318.054 to require the department to grant a 180-day interim period to allow a company to use the license of a deceased master plumber; amend KRS 227.480 to require the department to grant a 180-day interim period to allow a company to use the license of a deceased electrical contractor; amend KRS 227A.140 to require the department to grant a 180-day interim period to allow a business to use the license of a deceased master electrician.
 
Current Status:   
2/28/2018 - (S) SECOND READING, to Rules
 
HB156
ENGINEERS AND LAND SURVEYORS (SIMS JR. J) AN ACT relating to the State Board of Licensure for Professional Engineers and Land Surveyors.

Amend KRS 322.230 to allow appointed board members to be removed for cause by the Governor; create a new section of KRS Chapter 322 to establish procedures for removing appointed board members.
 
Current Status:   
1/10/2018 - (H) Referred to Committee House State Government
 
HB198
GOVERNMENT CONTRACTS (NEMES J) AN ACT relating to government contracts.

Create a new section of KRS 45A.690 to 45A.725 to establish standards and rules for the Attorney General when awarding contingency fee personal service contracts for legal services; require the Attorney General to make written findings of the need for a contingency fee contract; set limits on the amount of the contingency fee; require the Finance and Administration Cabinet to post information regarding the contract on its Web site; require the contractor to maintain certain records; require the Finance and Administration Cabinet and the Attorney General to submit a report on all contingency fee contracts to the Government Contract Review Committee by September 1 of each year; amend KRS 45A.695 to require the Attorney General to participate in discussions with contingency fee offerors to determine their qualifications; amend KRS 15.100 to conform.
 
Current Status:   
2/20/2018 - (S) Referred to Committee Senate Judiciary
 
HB200
EXECUTIVE BRANCH BUDGET (RUDY S) 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: Detail Part I, Operating Budget; appropriate to General Government: 2017-2018: $7,018,500, 2018-2019: $1,704,291,300, 2019-2020: $1,655,441,200; appropriate to the Economic Development Cabinet: 2018-2019: $31,672,600, 2019-2020: $32,384,800; appropriate to the Department of Education: 2018-2019: $4,885,519,300, 2019-2020: $4,885,920,600; appropriate to the Education and Workforce Development Cabinet: 2018-2019: $630,653,700, 2019-2020: $635,306,400; appropriate to the Energy and Environment Cabinet: 2018-2019: $272,522,400, 2019-2020: $280,337,000; appropriate to the Finance and Administration Cabinet: 2018-2019: $932,955,700, 2019-2020: $962,132,700; appropriate to the Health and Family Services Cabinet: 2017-2018: $12,064,200, 2018-2019: $13,902,025,100, 2019-2020: $14,153,724,700; appropriate to the Justice and Public Safety Cabinet: 2017-2018: $22,281,300, 2018-2019: $1,279,407,200, 2019-2020: $1,315,928,100; appropriate to the Labor Cabinet: 2018-2019: $221,768,700, 2019-2020: $221,427,400; appropriate to the Personnel Cabinet: 2018-2019: $66,174,600, 2019-2020: $66,486,800; appropriate to Postsecondary Education: 2018-2019: $7,834,090,600, 2019-2020: $8,200,114,600; appropriate to the Public Protection Cabinet: 2018-2019: $123,723,400, 2019-2020: $122,273,100; appropriate to the Tourism, Arts and Heritage Cabinet: 2017-2018: $8,831,600, 2018-2019: $258,238,600, 2019-2020: $261,409,800; appropriate to the Budget Reserve Trust Fund: 2018-2019: $62,414,100, 2019-2020: $183,378,000; not included in the appropriation amounts are capital project amounts as follows: 2017-2018 $16,500,000, 2018-2019: $2,804,425,500, 2019-2020: $342,579,500; detail Part II, Capital Projects Budget; detail Part III, General Provisions; detail Part IV, State Salary/Compensation, Benefit, and Employment Policy; detail Part V, Funds Transfer; detail Part VI, General Fund Budget Reduction Plan; detail Part VII, General Fund Surplus Expenditure Plan; detail Part VIII, Road Fund Budget Reduction Plan; detail Part IX, Road Fund Surplus Expenditure Plan; detail Part X, Phase I Tobacco Settlement; and detail Part XI, Executive Branch Budget Summary.
 
Current Status:   
3/2/2018 - received in Senate
 
HB216
PROCUREMENT (PETRIE J) AN ACT relating to procurement.

Amend KRS 61.810 to include selection committees established under KRS Chapters 45A and 56 as exceptions to the open meeting requirements; amend KRS 61.878 to include information identifying members of selection committees and records of the procurement processes established under KRS Chapters 45A and 56 as exceptions to the open record requirements; amend KRS 56.8169 to clarify that KRS 61.810 and 61.878 apply to the selection process for built-to-suit contracts.
 
Current Status:   
3/5/2018 - (H) Posted for Passage in Regular Orders of the Day; w/HCS 1
 
HB217
HOME INSPECTIONS (BRATCHER K) AN ACT relating to home inspections.

Create a new section of KRS Chapter 367 to require home inspectors to be granted access to all areas of a home when conducting an inspection; provide appeal to the Board of Home Inspectors'; require the inspector to notify all realtors involved in the transaction if access is denied; impose a fine not to exceed $500; stipulate that denial of reasonable access to a home inspector is grounds for termination of an offer to buy without recourse against the offeror.
 
Current Status:   
1/22/2018 - (H) Referred to Committee House Licensing, Occupations, and Administrative Regulations
 
HB232
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:   
1/25/2018 - (H) Referred to Committee House State Government
 
HB296
HVAC LICENSURE (BECHLER L) AN ACT relating to the licensure of heating, ventilation, and air conditioning professionals.

Amend KRS 198B.656 to delete reference to apprentice HVAC mechanic; amend KRS 198B.658 to delete the requirement for the department to issue an apprentice HVAC certificate; amend KRS 198B.674 to remove the reference to apprentice HVAC mechanics; amend KRS 198B.676 to eliminate examination fees for apprentice HVAC mechanics; amend KRS 198B.702 to delete reference to apprentice HVAC mechanics.
 
Current Status:   
2/23/2018 - (H) posted in committee House Licensing, Occupations, and Administrative Regulations
 
HB302
REORGANIZATION (BENTLEY D) AN ACT relating to reorganization.

Amend KRS 12.020 and 12.252 to create the Professional Licensing Legal Division within the Public Protection Cabinet; create the Office of Administrative Hearings within the Public Protection Cabinet; confirm Executive Order 2017-325.
 
Current Status:   
2/27/2018 - (S) Referred to Committee Senate Licensing, Occupations, and Administrative Regulations
 
HB312
TAX CREDITS (FLEMING K) AN ACT relating to tax credits and declaring an emergency.

Amend KRS 141.068 to sunset the tax credit and require reporting by the Department of Revenue; amend KRS 141.396 to sunset the tax credit and require reporting by the Department of Revenue; amend KRS 154.20-232 to require reporting by the Cabinet for Economic Development; amend KRS 154.20-234 to sunset the tax credit provisions and to outline the types of investment that may be accepted to qualify for the tax credit; amend KRS 154.20-236 to expand the amount of tax credits awarded to all investors to $5 million, to remove the overall tax combined credit cap of $40 million, to lower the percentage amount awarded to an investor if the qualified investment is outside an enhanced incentive county, and to sunset the tax credit; amend KRS 154.20-238 to allow the qualified investor to make the qualified investment and provide proof of the qualified investment within 80 days following the date of credit approval, including weekend and holidays; amend KRS 154.20-250 to require a report by the Cabinet for Economic Development; amend KRS 154.20-255 to require that the total tax credits for all investors not exceed $3 million in any calendar year, to remove the overall combined credit cap of $40 million, and to sunset the tax credit; amend KRS 154.20-258 to lower the percentage amount awarded to an investor if the qualified investment is outside an enhanced incentive county and increase the percentage amount awarded to an investor if the qualified investment is inside an enhanced incentive county; amend various sections of KRS Chapter 131 and 141 to conform; EMERGENCY.
 
Current Status:   
2/8/2018 - (H) Referred to Committee House Appropriations and Revenue
 
HB319
UNITED STATES MILITARY AND VETERANS OCCUPATIONAL LICENSE (MOORE T) AN ACT relating to occupational licenses for United States military and veterans.

Create a new section of KRS Chapter 12 to require each administrative body that issues a license, permit, certificate, or other document required to operate within a business, profession, or other occupation in the Commonwealth to issue within 30 days a license, permit, certificate, or other document to a United States military service member or veteran who is seeking a license, permit, certificate, or other document and currently holds or recently held a valid equivalent license, permit, certificate, or other document issued by another state, the District of Columbia, or any possession or territory of the United States.
 
Current Status:   
3/2/2018 - (H) THIRD READING, passed 82-0 with Committee Substitute and committee amendment (1-title)
 
HB338
STATE CONTRACT PENSION SURCHARGE (KAY II J) AN ACT relating to a pension surcharge on state contracts to be applied to the Kentucky Retirement Systems unfunded liability, making an appropriation therefor, and declaring an emergency.

Create a new section of KRS 61.510 to 61.705 to create a five percent surcharge on state contracts for personnel hired in lieu of hiring a state employee; require the surcharge to be paid to the unfunded liability trust fund created under KRS 61.706 to be applied to the Kentucky Employees Retirement System nonhazardous pension fund; apply to all participating employers and for all memoranda of agreement and personnel service contracts, as defined in KRS 45A.690 of the Model Procurement Code.
 
Current Status:   
2/12/2018 - (H) Referred to Committee House Appropriations and Revenue
 
HB385
DESIGN BUILD PROJECTS (UPCHURCH K) AN ACT relating to design/build projects.

Amend KRS 176.431 to, in each fiscal year, allow 5 major design/build road and bridge projects at a total cumulative cost no greater than $300,000,000 and 10 projects not to exceed a total cumulative cost of $75,000,000.
 
Current Status:   
3/2/2018 - (H) posted in committee House Transportation
 
HB465
REORGANIZATION (KOENIG A) AN ACT relating to reorganization.

Establish and create various sections of KRS Chapter 308, relating to Public Protection Cabinet oversight of state occupational boards; define terms; declare policy regarding occupational licensing; list boards that are regulated under KRS Chapter 308; require the Department of Professional Licensing to provide administrative services, technical assistance, personnel staffing, and meeting space to the boards; organize the boards under seven authorities within the department; manage each authority with an executive director; establish a process for the department to review and evaluate each of its boards once every five years; set standards regarding board members, including appointments by the Governor, three year terms, quorum via majority, and voting eligibility; institute board per diem and travel expense rules; direct board officer elections, board member disqualification standards, and semiannual meeting requirements; establish general board powers; require executive director approval before a board may promulgate an administrative regulation; instruct boards to keep a register of licensees and make an annual report to the Governor and the Legislative Research Commission; fix a set timeline for processing license applications; mandate that any license issued by a board be valid for at least two years; require boards to establish disciplinary review committees to process complaints against licensees; designate the process and limitations for the Governor's appointments to boards based on recommendations from nominating groups; make license applicant criminal background checks consistent with state and federal standards; require a licensee to report criminal convictions to the licensee's board; establish continuing education requirements and exemptions; immunize board members, staff, legal counsel, and other persons from civil liability for conduct that is taken in good faith and is within the scope and arising out of the performance of their duties; direct the boards to send licensees a thirty-day notice of expiration both before and after the expiration occurs; prohibit a board from issuing an advisory opinion unless authorized by the board's enabling act; establish the Prescribing Boards Advisory Council within the department, composed of seven ex officio members with expertise in combatting prescription drug abuse; amend KRS 12.020 to add the new authorities and the Office of Inspector General to the cabinet; amend KRS 12.252 to describe the powers and duties of the cabinet's Office of Inspector General; amend various sections of KRS Chapters 198B, 216A, 309, 310, 311, 311B, 312, 313, 314, 314A, 315, 316, 317, 317A, 317B, 319, 319A, 319B, 319C, 320, 322, 322A, 323, 323A, 324, 324A, 325, 326, 327, 329A, 330, 334, 334A, and 335 to conform; amend KRS 325.230 to place the State Board of Accountancy within the Department of Financial Institutions; amend KRS 48.315 to conform, repeal KRS 216A.050, 310.080, 311.540, 311.882, 311B.060, 312.045, 312.055, 312.065, 315.171, 319A.030, 319A.040, 319A.050, 322.260, 322.270, 323.160, 323.180, 323.190, 323.200, 323A.150, 323A.180, 323A.190, 323A.200, 324.2811, 324.284, 324A.025, 324B.010, 324B.020, 324B.030, 324B.040, 324B.050, 324B.060, 334.170, 334A.100, 334A.110, 335.060, and 335.307.
 
Current Status:   
3/2/2018 - (H) posted in committee House Licensing, Occupations, and Administrative Regulations
 
HB471
PUBLIC WORKS PROJECTS (DECESARE J) AN ACT relating to contracting of public works projects and declaring an emergency.

Create new sections of KRS Chapter 45A to set guidelines for awarding contracts for public works projects; set forth that public agencies awarding contracts can't require or prohibit bidders to adhere to agreements with a labor organization relating to a public works project; set restrictions on a public agency in awarding a grant, tax abatement, or tax credit in situations contrary to the provisions of the Act.
 
Current Status:   
2/28/2018 - (H) Referred to Committee House Economic Development and Workforce Investment
 
HB478
PUBLIC NOTICE (DECESARE J) AN ACT relating to public notice.

Amend KRS 64.810, 65.530, 65.686, 65A.050, 67.090, 67.855, 67A.070, 67A.160, 67A.847, 68.245, 74.361, 76.278, 77.265, 91A.565, 91.756, 94.835, 96.5395, 96A.340, 103.210, 107.360,157.160, 158.6453, 160.210, 160.463, 160.470, 160.603, 160,614, and 178.330 to delete the requirement that a local government, special district, or school board give public notice through newspaper advertisement and replace the notice requirement with publication on the government's or district's Web site; amend KRS 424.130, 424.150, 424.170, 424.220, 424.240, 424.250, 424.260,424.270, 424.280, and 424.330 to add publishing on a Web site as a method of advertisement; amend KRS 91A.040, 324A.163, 393,110, and 424.215 to conform; repeal KRS 424.190.
 
Current Status:   
2/28/2018 - (H) Referred to Committee House Local Government
 
HCR115
COAL FIRED ELECTRIC PLANTS (BLANTON J) Urge Congress to establish a moratorium on closing coal-fired electric plants and to eliminate subsidies for renewable energy sources.

Urge Congress to establish a moratorium on closing coal-fired electric plants and to eliminate subsidies for renewable energy sources.
 
Current Status:   
3/2/2018 - (H) SECOND READING, to Rules
 
SB2
CONSTITUTIONAL AMENDMENT (ALVARADO R) AN ACT proposing an amendment to section 54 of the Constitution of Kentucky.

Propose amendment to Section 54 of the Constitution of Kentucky to allow the General Assembly the power to limit damages for injuries resulting in death or for injuries to persons or property, and to provide a uniform statute of limitations; provide for submission to the voters.
 
Current Status:   
3/2/2018 - (S) Passed Over and retained in the Orders of the Day
 
SB83
FINANCIAL MISMANAGEMENT INVESTIGATIONS (CARROLL D) AN ACT relating to investigations of financial mismanagement.

Amend KRS 45.131 to require the Finance and Administration Cabinet, the Chief Justice, and the Legislative Research Commission to investigate any alleged mismanagement of any of the affairs of the state by any current or former officer, employee, or governing body responsible for carrying out any state function or the management of state funds; amend KRS 45.142 to add KRS Chapter 45A, the Model Procurement Code, to those chapters for which the secretary of the Finance and Administration Cabinet, the Chief Justice, and the Legislative Research Commission, on behalf of their respective departments, shall have certain investigative powers to enforce.
 
Current Status:   
2/14/2018 - Senate State and Local Government, (Bill Scheduled for Hearing)
 
SB86
CAPITAL PROJECTS (HUMPHRIES S) AN ACT relating to capital projects.

Amend KRS 45.750 to increase the dollar minimum from $600,000 to $1,000,000 for the definition of "capital projects" for entities other than institutions of higher education.
 
Current Status:   
2/8/2018 - (H) posted in committee House Appropriations and Revenue
 
SB203
PUBLIC-PRIVATE PARTNERSHIP PROJECTS (WISE G) AN ACT relating to public-private partnership projects.

Amend KRS 45A.077 to suspend the requirement for General Assembly approval for public-private partnership projects contracted for projects publicized prior to July 1, 2020; allow discussion of the project after public notice has been given of the proposal; remove requirement for approval of the Government Contract Review Committee of the public-private partnership contract.
 
Current Status:   
2/27/2018 - (S) Referred to Committee Senate Economic Development, Tourism, and Labor
 
SB207
BUILDING CODE VIOLATIONS (MEREDITH S) AN ACT relating to causes of actions for building code violations.

Amend KRS 198B.130 to allow a court award under KRS Chapter 198B or the Uniform Building Code to include attorney's fees if a certificate of occupancy has not been issued.
 
Current Status:   
2/27/2018 - (S) Referred to Committee Senate Licensing, Occupations, and Administrative Regulations
 
SB233
BOARDS AND COMMISSIONS (STIVERS R) AN ACT relating to boards and commissions.

Amend KRS 12.070 to provide the Governor authority to appoint members to boards and commissions when entities charged with submitting a list of names fail to submit the list.
 
Current Status:   
3/1/2018 - Introduced
 

Week In Review 
   March 2, 2018     
      
Adults, students and community connectedness are the keys to keeping a safe school environment, according to a national expert on the subject.

Republican candidate Robert Goforth, R- has won the special election to replace Rep. Marie Rader in the 89th Dist. special election.

The Republican Kentucky House opted on Thursday to pass a package of tax increases rather than a budget with deep cuts to public schools.

A bill to make 18 the legal age for marriage in Kentucky has stalled in a Senate committee amid concerns about the rights of parents to allow children to wed at a younger age, according to several lawmakers.

House Republican surprised many Wednesday when they released a budget that called for tax increases to help fund education, but tax increases alone were not enough to balance their proposed two-year budget.

A Senate resolution which would encourage local school districts to arm school personnel with firearms was passed by the Senate Standing Committee on Veterans, Military Affairs, and Public Protection on Thursday.

AG Beshear says pension bill violates inviolable contract for current and future retirees
Attorney General Andy Beshear, D-Kentucky, has sent a six page letter to lawmakers in the General Assembly, informing them that the proposed pension reform bill violates the inviolable contract for current and future retirees.

Bill Allowing Kentucky Craft Breweries To Sell More Beer Advances
A bill raising the cap on how much packaged beer can be bought from Kentucky microbreweries is nearing final passage from the state legislature.

A House concurrent resolution to urge Congress to amend the federal Controlled Substance Act to remove hemp from the definition of marijuana was unanimously passed by the Senate Standing Committee on Agriculture on Tuesday.

Kentucky's Republican governor cannot force a law firm to give back $4 million it got for negotiating a settlement on behalf of the state with the maker of OxyContin, a judge ruled Monday.

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
In This Issue
 

 

 

 

 


HIGHLIGHTS 
2018 Legislative Day