January 21, 2020
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Up and Running

The second week of the 2020 session of the Kentucky General Assembly came to an end on Friday closing out the ninth legislative day of this long, sixty day budget session. The tempo of legislative activity picked up with the first committee hearings, passage of bills on the floor of the Chambers and, of course, continued bill filings. By week’s end, nearly three hundred House bills had been introduced and nearly one hundred Senate bills had been dropped in the hopper. 

Significant legislation getting an early start included Rep. Adam Koenig’s HB 137 to legalize, regulate and tax wagering on sporting events. The sports wagering bill could be voted in the House as soon as this week. The only Senate priority bill seeing action was SB 3 proposing change in election of state officers (Sen. McDaniel), was also heard in committee and by week’s end had passed the Senate and has been received in the House.

The Chambers continued their filing of priority legislation for the session. New Senate filings designated as priority bills of interest included:

SB 6 - Sen. D. Thayer - Prohibits non-legislative compensation in other state employment from being used to calculate benefits in the legislators’ retirement plans - is in State & Local Government.

SB 7 - Sen. J. Schickel - Would alter the structure and powers of the school-based decision making counsels, giving superintendents ultimate authority to hire principals - is in Senate State & Local Gov.

SB 8 - Sen. M. Wise - Is legislation following the 2019 SB 1 on school safety. Notably, it would require an armed school resource officer in certain school facilities - is in Senate Education. 

In the House, majority party leaders say their priorities will include public assistance reform and preventing human trafficking, though neither of these bills have been filed to date. One House priority bill has been filed:

HB 5 - Rep. D. Meade -- Would adopt the SOLEMN COVENANT OF THE STATES TO AWARD PRIZES FOR CURING DISEASES INTERSTATE CONPACT.
State of the Commonwealth Address

On Tuesday night, Gov. Andy Beshear, delivered his State of the Commonwealth Address. In speaking before the Republican Supermajorities in each Chamber, the Governor asked for a focus on the needs of Kentuckians, rather than partisan politics. He declared priorities of this administration to be education funding, including his campaign promise of a $2,000 raise for teachers and ending cuts to higher education, protection of health care, and criminal justice reform. The Governor’s speech was short on details on these priorities and also failed to specify how he would fund them. He will be faced with filling in these devilish details when he makes his budget address to another joint session of the General Assembly on January 28. 
Special Election

Also on Tuesday, a special election was held in Bullitt and southwest Jefferson County to fill the Senate seat left vacant by the retirement of Dan Seum. Republican Mike Nemes defeated a Democrat challenger in the election, holding the seat for the Republican Senate Majority. Nemes, previously served in the House from 2011 to 2013 and also held a position in the Labor Cabinet in the Bevin administration. The election of Mike Nemes is historical in that he joins his son, Rep. Jason Nemes, as a member of the General Assembly. While there have been several instances of parent-child serving in the General Assembly at different times, this may well be the first time that they have served simultaneously. 
House Majority Floor Leader

The House Majority Caucus this week announced that Rep. Steven Rudy will serve temporarily in the capacity of Majority Floor Leader. Rudy will be filling in for Majority Leader Bam Carney who remains hospitalized and seriously ill. House Pro Tem David Meade temporarily acted as Floor Leader during the first two weeks of the session, but will now return to his constitutional duties. Rudy will continue to serve as the Chair of the House Appropriations and Revenue Committee. 
Big I Legislative Update

Neither the House nor Senate Banking & Insurance Committee met last week and we do not expect either to meet in the week ahead. There were no significant filings of legislation to note. However a quick update on a few issues of interest:

  • PEO Bill - One bill did prompt interest among agents and the Big I national. Rep. Prunty’s, HB 53, relating to professional employment organizations, was heard and reported by the House Small Business and Technology Committee. However, a number of questions concerning how the bill may affect workers’ compensation and other lines of insurance were raised and we expect the bill will receive further scrutiny in the days to come. We will be providing direct amendment requests to make the bill more in line with the NCOIL model and other states that have passed a bill similar to this, which the Big I supports. 

  • PIP/MedPay - After several hours of bill draft review and discussion on Friday, the PIP/MedPay proposal was pronounced dead for the 2020 Session. The insurance industry consensus was it could not agree to an unfettered bad faith cause of action under the new proposed MedPay system which the plaintiffs' bar felt it had to have. We don’t expect the PIP Reform conversations are over for good, but it is unlikely anything will be resolved this session.

  • KEHP/School Board Bill - Rep. Riley filed HB 272 to give school boards the authority to manage their own cafeteria plans, except for group health and group life which they are required to participate in by other statutes. This is aimed at the KY Employee Health Plans offering vision and dental plans. We expect the bill will go through the Education Committee. We would welcome your feedback on the bill.

  • Renewal With Altered Terms - SB 84 provides that an alteration of terms shall not be considered a refusal to renew under certain circumstances. We have spoken with the bill sponsor and the proponents, as have several of our members, and conversations about the issue and the bill are ongoing. In addition, the DOI is currently reviewing and we are awaiting their opinion on the bill. For now the sponsor is not looking to move the bill until these conversations have taken place. 

  • Uninsured Motorist Coverage – HB 173 would add property damage coverage required to recover damages from owners or operators of uninsured motor vehicles. We are currently watching this bill to see if it has legs - will keep you posted. 

A complete bill tracking list is can be found here. As always, please let us know if a bill of interest has been omitted or if you have any questions.
If you have any questions on legislation, please contact Big I Ky’s President & CEO, Tara Purvis, at tpurvis@iiak.org .