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Email: gbrotzge@outlook.com Legislative Report March 19, 2024
Prepared by: Greg Brotzge
AIA Kentucky Legislative Report for the Week Ending March 15, 2024

The legislative calendar was adjusted last week and the General Assembly will only meet for two days this week. House and Senate leaders are currently negotiating the final version of the Executive Budget (HB 6).

HB 296 dealing with temporary structures with our suggested amendment, was received in the Senate on March 11 but has not been assigned to a committee. Its prospects are uncertain at this point.

Bills that would make the changes enacted in HB 678 to school construction permanent or at least extend the sunset are still in play. SB 232 by Sen. Westerfield was assigned to the House Education Committee last week. There is also language in both the House and Senate budgets to extend the sunset on HB 678 for two more years.

Rep. Pollock's bill on supporting the construction of stronger homes has passed the House and has been assigned to the Senate Banking and Insurance Committee.

Below are the bills AIA Kentucky is currently tracking.
Bill Information
CIVIL JUSTICE REFORM
(MCCOY, CHAD)

AN ACT relating to civil justice reform.

Create new sections of KRS Chapter 411 to lift the statute of limitations for certain lawsuits where comparative fault is an issue; extend the statute of limitations for one year for plaintiffs who submit claims regarding long-term-care facilities to an evaluation process; exempt passive investors from liability in claims against long-term-care facilities.

  CURRENT STATUS

3/19/2020 - (S) Referred to Committee Senate Judiciary (S)

VAPOR PRODUCTS
(MILLER, JERRY T.)

AN ACT relating to vapor products.

Amend KRS 138.130 to define terms; amend KRS 138.140 to impose an excise tax on vapor products; amend KRS 138.143 to impose a floor stock tax; EFFECTIVE 11:59 p.m. on June 31, 2020.

  CURRENT STATUS

4/15/2020 - Missing Action! for Wednesday, April 15, 2020:

HISTORIC PLACES
(DONOHUE, JEFFERY)

AN ACT relating to the sale or transfer of historic places.

Amend KRS 171.382 to require the Finance and Administration Cabinet to give notice to the Kentucky Heritage Council 90 days prior to the transfer or sale of a property nominated by the Kentucky Historic Preservation Review Board to be listed on the National Register of Historic Places; require the Kentucky Heritage Council to consult with the Finance and Administration Cabinet regarding the property's historic, cultural, and archeological resources; require the Kentucky Heritage Council to make a written recommendation to the Finance and Administration Cabinet on whether the property should have a preservation easement; if a preservation easement is recommended, no sale or transfer of the property shall take place until the easement is listed on the deed; amend KRS 82.660 to update council name.

  CURRENT STATUS

3/19/2020 - House Economic Development & Workforce Investment (H), (Bill Scheduled for Hearing)

TAX ON SERVICES
(BRENDA, R. TRAVIS)

AN ACT relating to the taxation of certain services.

Amend KRS 139.200 to exclude mowing, fence cleaning, and other pasture maintenance services performed on agricultural or horticultural land for a farmer or retired farmer from landscaping services; EFFECTIVE August 1, 2020.

  CURRENT STATUS

1/7/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

COST EFFECTIVE ADMINISTRATIVE REGULATIONS
(WIEDERSTEIN, ROBERT)

AN ACT relating to adopting the most cost-effective alternative in administrative regulations having a major economic impact on the Kentucky economy.

Create new sections of KRS Chapter 13A to establish requirements and procedures for an administrative regulation that constitutes a major economic action; create the Regulatory Economic Analysis Advisory Group to consult on these regulations; set the group's membership, powers, and duties; require a promulgating agency to provide listed documents to the group and the public at least 60 days before filing the regulation; direct an agency to conduct and publish a detailed analysis of any major economic action regulation, including a cost-benefit analysis; establish filing requirements for these regulations; require an agency to publicly provide a framework for assessing the regulation; designate a short title of the "Kentucky Administrative Regulation Accountability Act of 2020"; amend KRS 13A.010 to define a major economic action; amend KRS 13A.030 to add a defective major economic action to the list of reasons a subcommittee may find a regulation deficient; amend KRS 13A.3104 to establish certification letter procedures for a major economic action regulation; stagger the initial terms of the appointed members of the advisory group.

  CURRENT STATUS

1/7/2020 - (H) Referred to Committee House Licensing, Occupations, & Admin Regs (H)

OPEN GOVERNMENT DATA PORTAL
(WIEDERSTEIN, ROBERT)

AN ACT relating to government data by providing for the adoption of an open data standard to allow for centralization of government data sets at a uniquely identified uniform Web site resource locator address.

Create new sections of KRS Chapter 42 to define "agency strategic data architecture plan," "application programming interface," "data," "data portal," "data set," "machine-readable," "metadata," "open operating standard," "public data set," "state agency," "technical data standard," and "voluntary consensus standards body"; create an open operating standard for the Commonwealth of Kentucky; require public data sets available on the Internet to be accessible through a single, Web-based data portal with external search capabilities maintained by the Commonwealth Office of Technology; establish requirements for operation of the data portal; establish standards for prioritizing of data sets; to create the data working group and establish its duties and functions; require the Auditor of Public Accounts to examine and verify compliance with the provisions of the Act; establish the Kentucky Data Governance and Management Advisory Board; amend KRS 12.050 to include agency data officers; amend KRS 42.732 to provide that the Kentucky Information Technology Advisory Council shall advise the data working group on inclusion of data sets to be included in the open data portal; amend KRS 42.726 require the Commonwealth Office of Technology to develop, implement, and manage the sharing of data and data set development by all state agencies; establish a short title.

  CURRENT STATUS

1/13/2020 - (H) posted in committee House Small Business & Information Technology (H)

SCHOOL CONSTRUCTION PROJECTS
(MASSEY, C. ED)

AN ACT relating to school construction.

Amend KRS 162.065 to require the Kentucky Board of Education to include "construction management-at-risk" as a project delivery method option for school construction projects.

  CURRENT STATUS

3/17/2020 - (S) Referred to Committee Senate Education (S)

ATTORNEY'S FEES
(MASSEY, C. ED)

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

3/27/2020 - SIGNED BY GOVERNOR

MEDICINAL CANNABIS
(NEMES, JASON)

AN ACT relating to medicinal cannabis and making an appropriation therefor.

Create various new sections of KRS Chapter 218A to define terms; to exempt the medicinal marijuana program from existing provisions in Kentucky law to the contrary; to require the Department for Alcoholic Beverage and Cannabis Control to implement and regulate the medicinal marijuana program in Kentucky; to establish the Division of Medicinal Marijuana within the Department of Alcoholic Beverage and Cannabis Control; to establish restrictions on the possession of medicinal marijuana by qualifying patients, visiting patients, and designated caregivers; to establish certain protections for cardholders; to establish professional protections for practitioners; to provide for the authorizing of practitioners by state licensing boards to issue written certifications for the use medicinal marijuana; to establish professional protections for attorneys; to prohibit the possession and use of medicinal marijuana on a school bus, on the grounds of any preschool or primary or secondary school, in a correctional facility, any property of the federal government, or while operating a motor vehicle; to prohibit smoking of medicinal marijuana; to permit an employer to restrict the possession and use of medicinal marijuana by an employee; to require the department to implement and operate a registry identification card program; to establish requirements for registry identification cards; to establish registry identification card fees; to require the department to operate a provisional licensure receipt system; to establish the application requirements for a registry identification card; to establish when the department may deny an application for a registry identification card; to establish certain responsibilities for cardholders; to establish when a registry identification card may be revoked; to establish various cannabis business licensure categories; to establish tiering of cannabis business licenses; to require certain information be included in an application for a cannabis business license; to establish when the department may deny an application for a cannabis business license; to prohibit a practitioner from being a board member or principal officer of a cannabis business; to prohibit cross-ownership of certain classes of cannabis businesses; to establish rules for local sales, including establishing the process by which a local legislative body may prohibit the operation of cannabis businesses within its territory and the process for local ordinances and ballot initiatives; to establish technical requirements for cannabis businesses; to establish limits on the THC content of medicinal marijuana that can be produced or sold in the state; to establish requirements for cannabis cultivators, including cultivation square footage limits; to establish requirements for cannabis dispensaries; to establish requirements for safety compliance facilities; to establish requirements for cannabis processors; to establish procedures for the department to inspect cannabis businesses; to establish procedures for the suspension or revocation of a cannabis business license; to exempt certain records and information from the disclosure under the Kentucky Open Records Act; to require the department to develop, maintain, and operate electronic systems for monitoring the medicinal marijuana program; to require the department to promulgate administrative regulations necessary to implement the medicinal marijuana program; to establish that nothing in the bill requires government programs or private insurers to reimburse for the cost of use; to establish the medicinal marijuana trust fund; to establish the local medicinal marijuana trust fund; and to establish procedures for the distribution of local cannabis trust fund moneys; create a new section of KRS Chapter 138 to establish an excise tax of 12% for cultivators and processors for selling to dispensaries; to require that 80% of the revenue from the excise taxes be deposited into the medicinal marijuana trust fund; to require that 20% of the revenue from the excise taxes be deposited into the local medicinal marijuana trust fund; amend KRS 342.815 to establish that the Employer's Mutual Insurance Authority shall not be required to provide coverage to an employer if doing so would subject the authority to a violation of state or federal law; amend KRS 139.470 to exempt the sale of medical marijuana from the state sales tax; amend KRS 218A.010, 218A.1421, 218A.1422, 218A.1423, and 218A.500 to conform; amend KRS 12.020 to change the name of the Department of Alcoholic Beverage Control to the Department of Alcoholic Beverage and Cannabis Control and to create the Division of Medicinal Marijuana; and amend KRS 12.252, 15.300, 15.380, 15.398, 15A.340, 15.420, 61.592, 62.160, 131.1815, 211.285, 241.010, 241.015, 241.030, 243.025, 243.0307, 243.038, 243.090, 243.360, 438.310, 438.311, 438.313, 438.315, 438.317, 438,320, 438.325, 438.330, 438.337, and 438.340 to conform; EFFECTIVE January 1, 2021; APPROPRIATION.

  CURRENT STATUS

3/2/2020 - (S) Referred to Committee Senate Judiciary (S)

WAGERING
(KOENIG, ADAM)

AN ACT relating to wagering and making an appropriation therefor.

Establish KRS Chapter 239 and create new sections to define "adjusted gross revenue," "beginner," "cabinet," "confidential information," "entry fee," "fantasy contest," "fantasy contest operator," "fantasy contest participant", "highly experienced player," "immediate family," "location percentage," "person," "principal stockholder," "registered fantasy contest operator," "script," "secretary," and "wager"; establish requirements for registration as a fantasy contest operator; require the cabinet to promulgate administrative regulations for the operation of fantasy contests; establish the wagering administration fund and direct the uses of that fund; establish the Kentucky problem gambling assistance account and direct the uses of that account; require an annual audit of fantasy contest registrants; establish requirements for fantasy contest procedures; amend KRS 230.210 to define "professional sports venue" and "sports wagering"; create new sections of KRS Chapter 230 to require the racing commission to institute a system of sports wagering at tracks and other specified locations; limit the types of events upon which wagers may be placed; amend KRS 230.215 to declare the intent to allow citizens to enjoy sports wagering and allow the racing commission to promulgate administrative regulations prescribing conditions under which sports wagering is to be conducted; amend KRS 230.225, 230.240, and 230.260 to include sports wagering; create a new section of KRS Chapter 230 to establish sports wagering licensure requirements; amend KRS 230.320 to conform; amend KRS 230.361 to include sports wagering; amend KRS 230.3615 to conform; create a new section of KRS Chapter 138 to define "adjusted gross income" and impose a tax on sports wagering; amend KRS 230.362, 230.363, 230.364, 230.365, 230.366, 230.369, 230.371, 230.372, 230.373, 230.374, and 230.750 to conform; create a new section of KRS Chapter 230 to prohibit participants from wagering on events in which they participate and to prohibit tampering with the outcome of a sporting event; amend KRS 230.990 to provide penalties for participants who wager on sporting events or tamper with the outcome of a sporting event; amend KRS Chapter 154A.010 to define "net poker revenue," "online poker," and "rake; amend KRS 154A.050 and 154A.060 to include conducting online poker games; amend KRS 154A.063 to delete restriction on playing cards and where winners are based on the outcome of a sports contest; amend KRS 154A.070 to include online poker; amend 154A.110 to prohibit anyone under 18 from placing a wager through an online poker game; amend KRS 154A.120 to include online poker; amend KRS 154A.130 to exempt online poker; create new sections of KRS Chapter 154A to require licensure for online poker games; require the Lottery Corporation to promulgate requirements in conformance with federal law for providers through administrative regulations; establish licensing fees; impose a gaming fee on providers; establish the Kentucky Lottery Corporation online poker account and provide for the uses of the funds deposited therein; amend KRS 154A.600 to include online poker; amend KRS 243.500 to exempt sports wagering and online poker; amend KRS 525.090 to exempt sports wagering; amend KRS 528.010 to exempt fantasy contests, sports wagering, and online poker and the devices used in the conduct of those forms of wagering; amend KRS 528.020, 528.070, and KRS 528.080 to exempt fantasy contests, sports wagering, and online poker; create a noncodified section to assert that the provisions of the Act are severable.

  CURRENT STATUS

3/17/2020 - (H) recommitted to committee House Licensing, Occupations, & Admin Regs (H)

SCHOOL BUILDING PROJECTS
(DOSSETT, MYRON)

AN ACT relating to school building projects.

Amend KRS 162.070 to increase the minimum amount for advertising and bidding school building projects from $7,500 to $30,000.

  CURRENT STATUS

3/19/2020 - received in Senate w/ Letter, to Rules

SALES AND USE TAX EXEMPTIONS
(TIPTON, JAMES)

AN ACT relating to sales and use tax exemptions.

Amend KRS 139.480 to exempt from sales and use tax tangible personal property purchased by a person for incorporation into a structure or improvement to real property under a contract with the federal, state, or local government, or a resident, nonprofit educational, charitable, or religious institution; apply to sales made after October 1, 2020, but before October 1, 2024; require the Department of Revenue to report the claimed exemptions to the Interim Joint Committee on Appropriations and Revenue; amend KRS 131.190 to give the Department authority to provide the report to LRC.

  CURRENT STATUS

1/9/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

SALES AND USE TAXES
(RUDY, STEVEN)

AN ACT relating to sales and use taxes.

Amend KRS 139.990 for technical corrections.

  CURRENT STATUS

3/11/2020 - (H) posted in committee House Appropriations & Revenue (H)

TAXATION
(RUDY, STEVEN)

AN ACT relating to taxation.

Amend KRS 139.785 to make a technical correction.

  CURRENT STATUS

3/11/2020 - (H) posted in committee House Appropriations & Revenue (H)

CONSOLIDATED EMERGENCY SERVICES DISTRICTS
(MASSEY, C. ED)

AN ACT relating to consolidated emergency services districts and making an appropriation therefor.

Create various sections of KRS Chapter 65 to define terms; establish procedures for the creation of a consolidated emergency services district; authorize that certain local government officials shall appoint the board of trustees of the district; provide a formula for determining the number of elected members, qualifications of elected members, terms, non-partisan elections, nomination procedures, removal, and district apportionment requirements; establish officers of the district and compensation of officers; provide $100 per day to appointees, elected members compensated pursuant to KRS 64.527; establish the quorum of the board; establish an advisory committee, number, qualifications of appointees, duties of committee and compensation of members; exceed $0.30 per $100 valuation, allow for ballot question for expanded taxation for additional services to be provided, and provide that the additional tax may be either an ad valorem or occupational license tax; allow the board to levy an insurance premium tax or an occupation and license tax; declare that upon creation of a district, the board assumes all duties, responsibilities, and liabilities of former departments or districts, former jurisdictions to be special taxing districts until indebtedness is relieved and that all previously entered into interlocal agreements shall remain in force for their duration; set requirements relating to CERS; amend KRS 65.180 to define consolidated emergency services district as a "taxing districts"; amend KRS 68.180 to grant districts in counties over 300,000 the power to levy a license and occupation tax; amend KRS 68.197 to grant districts in counties over 30,000 the power to levy a license and occupation tax; amend KRS 75.020 to include creation of a district within the definition of merger; amend KRS 78.530 to allow for any districts, not all to be excluded from the provisions; amend KRS 91A.080 to include consolidated emergency services districts; amend KRS 95A.500 to allow the district to receive qualified shares of merged fire districts; amend KRS 118.305 to place elected trustees on ballot; amend KRS 118.315 to include nominating petitions for elected trustees; amend KRS 134.119 to provide that the sheriff shall be compensated for collecting taxes for consolidated emergency service districts; APPROPRIATION.

  CURRENT STATUS

1/24/2020 - (H) posted in committee House Local Government (H)

HISTORICAL PRESERVATION
(ELLIOTT, DANIEL)

AN ACT relating to historical preservation of Revolutionary War battlefields, Civil War battlefields, and Underground Railroad sites, and making an appropriation therefor.

Create a new section of KRS Chapter 171 to establish the Kentucky Civil War site preservation fund and allow the Kentucky Heritage Council to provide grants from the moneys deposited in the fund to private nonprofit organizations for the purchase of certain sites; APPROPRIATION.

  CURRENT STATUS

3/12/2020 - SIGNED BY GOVERNOR

CERTIFIED REHABILITATION TAX CREDIT
(BOWLING, ADAM)

AN ACT relating to the certified rehabilitation tax credit.

Amend KRS 171.396 to expand the certified rehabilitation tax credit cap to $30 million annually instead of the current tax credit cap of $5 million annually; define a rural county; amend KRS 171.397 to allow a 30% credit for qualified expenses for property located within a rural county; change the maximum credit that can be claimed for all other property that is not owner-occupied residential to $5 million annually instead of the current cap of $400,000 annually; and reserve 40% of the certified rehabilitation credit cap for property located in a rural county.

  CURRENT STATUS

1/28/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

SALES AND USE TAXES
(HART, MARK)

AN ACT relating to sales and use taxes.

Amend KRS 139.010 to define "affiliate"; amend KRS 139.480 to exempt certain tangible personal property from sales and use tax if purchased by providers of communications services, multichannel video programming services, internet access, or any combination, thereof, and require yearly report of the exemption to the Legislative Research Commission; amend KRS 131.190 to authorize the report from the Department of Revenue, and reorder the; EFFECTIVE August 1, 2020.

  CURRENT STATUS

2/26/2020 - (H) WITHDRAWN

SALES AND USE TAXES
(GRAVISS, JOE)

AN ACT relating to sales and use taxes.

Amend KRS 139.200 to exempt small animal veterinary services after October 1, 2020; amend KRS 139.470 to exempt pet adoption fees and to require reporting of the exemption; amend KRS 131.190 to authorize the Department of Revenue to share information pertaining to adoption fees with the Legislative Research Commission; EFFECTIVE August 1, 2020.

  CURRENT STATUS

2/6/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

CLASSIFICATION OF WORKERS IN THE CONSTRUCTION INDUSTRY
(NEMES, JASON)

"AN ACT creating the Classification of Workers in the Construction Industry Task Force.

Create new sections of KRS Chapter 337 to provide definitions; set forth determination of misclassified workers; set forth investigation process and violations; establish court remedies; require notice by an employer; grant the commissioner of the Department of Workplace Standards authority to promulgate administrative regulations; require agencies to share the information of a misclassifying employer to other interested state agencies; amend KRS 337.990 to establish penalties for violations; amend KRS 45A.145 to prohibit contractors with multiple violations from contracting with the state for five years; amend KRS 131.190 to require the Department of Revenue to provide copies of orders to three other state agencies; create a new section of KRS Chapter 341 to require the Office of Unemployment Insurance to provide copies of orders to three other state agencies; create a new section of KRS Chapter 342 to require the commissioner of the Department of Workers' Claims to provide copies to three other state agencies; state that certain sections of the bill may be cited as the Kentucky Workers Fairness Act; Sections 1 to 13, 15, and 16 EFFECTIVE January 1, 2021.

  CURRENT STATUS

3/26/2020 - (S) Referred to Committee Senate Economic Development, Tourism, and Labor (S)

TAX EXPENDITURES
(TIPTON, JAMES)

AN ACT relating to tax expenditures.

Create a new section of KRS Chapter 7A to establish the Tax Expenditure Oversight Board; amend KRS 11.068 to require the annual production of a detailed estimate of the revenue loss resulting from each tax expenditure from the general fund and road fund; amend KRS 131.020 to require the Department of Revenue to collect, report, and provide data to the Tax Expenditure Oversight Board; amend KRS 131.190 to exempt the data provided by the Department of Revenue from the confidentiality standards for tax return data.

  CURRENT STATUS

2/12/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

TAXATION
(WILLNER, LISA)

AN ACT relating to taxation.

Amend KRS 132.020 to freeze the state property tax rate and eliminate the tax rate reduction for qualified heavy equipment; amend KRS 138.130 to define vapor products and include vapor products in the definition of tobacco products; amend KRS 138.140 to increase the tax on cigarettes, snuff, chewing tobacco, and tobacco products; and to remove the discount for modified risk tobacco products; amend KRS 138.143 to require a floor stock tax; amend KRS 138.510 to impose specific surtax amounts on horse racing wagers and to require the revenue generated from the surtaxes to be deposited into the general fund; amend KRS 139.010 to remove boat ramp fees from the list of fees not considered to be taxable admissions; amend KRS 139.200 to remove the tax on small animal veterinary services and to make other various services taxable; amend KRS 139.470 remove the exemption of gross receipts from the sale of semi-trailers and trailers and to include the new taxable services in the de minimis rule; amend KRS 139.480 to remove the exemption for various types of properties; amend KRS 140.130 to impose an estate tax; amend KRS 141.010 to define married and unmarried individuals and allow a single column return and a single calculation of adjusted gross income with differing thresholds for married and unmarried individuals; amend KRS 141.019 to require a dollar-for-dollar reduction to the retirement income exclusion and to limit the itemized deduction amount for all itemized deductions except for the charitable contribution deduction; amend KRS 141.020 to establish graduated tax rate brackets and a phase out based on income level; amend KRS 141.081 to increase the standard deduction; amend KRS 141.066 to expand the family size tax credit; amend KRS 141.040 to increase the tax rate to 7%; amend KRS 141.0401 to lower the threshold amounts for determining the tax amount owed; amend KRS 141.120 to reinstate the three-factor apportionment formula and include a throw-back rule; amend KRS 141.039 to eliminate the deferred tax deduction; amend KRS 141.201 to sunset the election for consolidated reporting; amend KRS 141.202 to alter the filing requirement basis from waters-edge to world-wide; amend KRS 141.383 to reduce the annual cap; amend KRS 141.433 to sunset the new markets tax credit; amend KRS 142.303 to eliminate the cap on calculation of gross receipts; make conforming changes.

  CURRENT STATUS

2/14/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

PUBLIC RECORDS
(PETRIE, JASON)

AN ACT relating to public records.

Amend KRS 61.878, regarding public records to exclude from the Open Records Act client and case files maintained by the Department of Public Advocacy and the department's contractors.

  CURRENT STATUS

2/25/2020 - (H) posted in committee House State Government (H)

CONSTRUCTION OF EDUCATIONAL FACILITIES
(SANTORO, SAL)

AN ACT relating to the construction of educational facilities.

Amend KRS 198B.060 to allow local plan review of educational facilities.

  CURRENT STATUS

3/19/2020 - (S) Referred to Committee Senate State & Local Government (S)

RESOURCES FOR LOCAL DEVELOPMENT
(ROTHENBURGER, ROB)

AN ACT relating to resources for local development.

Create a new section of KRS Chapter 65 to define "base restaurant tax receipts," "merged governments" and " nonhighway transportation infrastructure"; grant any city, county, or merged government the right to levy a restaurant tax, subject to certain limitations; allow cities, counties, and merged governments levying a restaurant tax after the effective date to distribute at least 25 percent of revenues generated to the tourist and convention commission; specify uses; allow a consolidated local government levying the tax the option of distributing revenues to the tourist and convention commission; specify uses; make provisions for cities within a county containing a consolidated local government that has not formed its own tourist and convention commission; make provisions for cities that levied the restaurant tax prior to the effective date to distribute restaurant tax revenues; establish uses for revenue distributed to tourist and convention commissions; establish protocols for crediting when cities and counties, in counties with merged governments and without, both charge a restaurant tax; exempt restaurants subject to the tax from certain local occupational license taxes; mandate that any new tax or rate take effect at the beginning of any calendar month; amend KRS 153.460 to remove the ability of a fiscal court in counties containing cities of the first class or consolidated local government from levying a gross receipts tax on restaurants in the county; amend KRS 67.938 and 91A.390 to conform; repeal KRS 91A.400.

  CURRENT STATUS

2/24/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

AUTHORITY OVER LOCAL REVENUE OPTIONS
(MEREDITH, MICHAEL)

AN ACT proposing an amendment to Section 181 of the Constitution of Kentucky relating to the General Assembly's authority over local revenue options.

Propose to amend Section 181 of the Constitution of Kentucky to permit the General Assembly to authorize a county, city, town, or municipal corporation to assess and collect local taxes and fees that are not otherwise in conflict with the Constitution; provide ballot question with proposed amendment; submit to voters for ratification or rejection.

  CURRENT STATUS

3/17/2020 - (H) recommitted to committee House Appropriations & Revenue (H)

SCHOOL TAXES
(DUPLESSIS, JIM)

AN ACT relating to school taxes.

Amend KRS 157.621 to delete the requirement for the commissioner of education to approve equalization for a school district that levied an equivalent tax rate as of April 24, 2008, of at least 10 cents and did not receive equalized growth funding.

  CURRENT STATUS

2/24/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

COMMUNITY INVESTMENT TAX CREDIT
(HART, MARK)

AN ACT relating to the community investment tax credit.

For taxable years beginning on or after January 1, 2021, but before January 1, 2025, create a new section in KRS Chapter 141 to establish the community investment credit for financial institutions making loans to a community development financial institution; establish the annual credit cap at $20 million; require the Department of Revenue to report tax credit data to the Interim Joint Committee on Appropriations and Revenue; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Legislative Research Commission to receive confidential data about the new tax credit from the Department of Revenue.

  CURRENT STATUS

2/27/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

BOARDS OF PROFESSIONAL LICENSURE
(KOENIG, ADAM)

AN ACT relating to boards of professional licensure.

Amend KRS 309.318, relating the the Kentucky Board of Interpreters for the Deaf and Hard of Hearing, to allow appeals to the Circuit Court where the aggrieved party resides; amend KRS 323.160, relating to the Kentucky Board of Architects, to apply gender neutral language.

  CURRENT STATUS

3/4/2020 - (H) Referred to Committee House Licensing, Occupations, & Admin Regs (H)

TRANSPORTATION
(SANTORO, SAL)

AN ACT relating to transportation, making an appropriation therefor, and declaring an emergency.

Amend KRS 138.220 to set a single excise tax on gasoline and special fuels; set initial base rate at 34.4 cents per gallon (cpg); subject tax to annual adjustment; eliminate references to taxation on the average wholesale price of gasoline and the supplemental tax on gasoline and special fuels; require annual notification to motor fuel dealers of the adjusted rate of the excise tax on gasoline and special fuels for each upcoming fiscal year and annual notification to county clerks of the adjusted rate of highway user fees for electric vehicles; amend KRS 138.660 to set the initial base rate for the heavy equipment motor carrier surtax at 4.3 cpg for gasoline and 7.2 cpg for special fuels; subject the surtax to annual adjustment; create a new section of KRS Chapter 138 to define "taxes"; provide a mechanism for annual adjustment of the excise tax on gasoline and special fuels and the heavy equipment motor carrier surtax based on changes in the National Highway Construction Cost Index 2.0; allow these taxes to increase or decrease no more than 10 percent from one year to the next, subject to the statutory minimums; create a new section of KRS Chapter 186 to establish a base highway user fee for nonhybrid electric vehicles of $200; require the fee to be adjusted with any increase or decrease in the gasoline tax under Section 3 of the Act; establish an annual highway preservation fee of $5-$40 on all noncommercial vehicles based on the EPA mileage rating of the make model and year of the vehicle; require collection of both fees at the time of registration; require that both fees be transferred to the road fund; amend KRS 186.010 to define "nonhybrid electric vehicle"; amend KRS 186.018 to increase the fee for a driving history record from $3 to $6; amend KRS 186.020 to eliminate the requirement to present a vehicle's registration receipt when renewing the vehicle registration and allow mail or online registration renewal with no additional fee; amend KRS 186.040 to eliminate the $30 county clerk fee for motor carrier registrations on vehicles in excess of 44,000 pounds; increase the county clerk fee for motor vehicle registrations from $6 to $8; amend KRS 186.050 to increase to state fee for motor vehicle registrations from $11.50 to $22; require payment of the highway user fees for electric vehicles and the highway preservation fees at the time of registration or renewal; provide for a $10 late charge for vehicle registrations not renewed within 30 days of expiration; make technical correction; amend KRS 186.162, 186.180, and 186.240 to conform; amend KRS 186.440, 186.442, 186.450, and 186.531 to consolidate fees for driver license reinstatement, set reinstatement fee at $100, provide for distribution of funds, and provide for exceptions; amend KRS 281A.150 to increase reinstatement fees for suspended CDLs from $50 to $100; amend KRS 186A.130 and 186A.245 to set the fee for an initial title at $25, the fee for a duplicate or replacement title at $10, and the fee for a speed title at $40, and adjust the distribution of fees between the Cabinet and the county clerk; amend KRS 189.574 to increase to fee for state traffic school from $15 to $50; amend KRS 189.270 to increase fees for various overweight and overdimensional permits; create a new section of KRS Chapter 174 to create the multimodal transportation fund, specify allowable uses for moneys in the fund, and appropriate funds for those purposes; amend KRS 177.320 and 177.365, regarding allocation of a portion of fuel tax revenue to county road aid funds and municipal road aid funds, to change the revenue-sharing formula on the portion of fuel tax revenue available for revenue sharing which exceeds $825 million in any year from 18.3% to counties and 7.7% to cities to 13% for each fund; amend KRS 138.4603, regarding the determination of total consideration for the purpose of calculating retail price for motor vehicle use tax, to limit the trade in allowance on the purchase of new motor vehicles to $15,000; amend KRS 176.210 to prohibit the Department of Highways from revealing the identitites of eligible bidders on a project until the project bid letting; amend KRS 138.210 to delete the definitions for "average wholesale price" and "average wholesale floor price"; amend KRS 138.695, 138.270, 138.450, 42.409, 234.320, and 234.380 to conform; Repeal KRS 138.228, regarding the calculation of average wholesale price of gasoline, KRS 138.4602, regarding determination of total consideration on vehicles purchased between 2009 and 2014; and KRS 175.505 regarding the debt payment acceleration fund for turnpike authority debt; EMERGENCY Sections 1 to 3 and 22 to 25 are EFFECTIVE July 1, 2020; Sections 4, 5, and 7 to 12 of the Act are EFFECTIVE January 1, 2021; APPROPRIATION.

  CURRENT STATUS

3/4/2020 - (H) Referred to Committee House Appropriations & Revenue (H)

SCHOOL FACILITIES
(HUFF, REGINA)

AN ACT relating to school facilities.

Amend KRS 162.062 to delete requirements for the number of school water filling stations and water fountains; amend KRS 158.162 to allow a district to update its district facilities plan to meet school building safety requirements without convening the local planning committee; amend KRS 157.455 to remove the Kentucky efficient school design trust fund and the efficient school design reporting requirement; repeal KRS 157.450.

  CURRENT STATUS

3/4/2020 - (H) Referred to Committee House Education (H)

SCHOOL SAFETY
(REED, BRANDON)

AN ACT relating to school safety.

Create a new section of KRS Chapter 158 to require that an individual on school district property provide government-issued photo identification if requested by a school employee, school resource officer, or law enforcement officer; provide that the individual may be required to leave the property if they refuse or are unable to comply; amend KRS 511.070, relating to criminal trespass in the second degree, to make trespassing in a school building or upon school premises to which notice against trespass is given a Class A misdemeanor; amend KRS 511.080, relating to criminal trespass in the third degree, to make trespassing upon school premises a Class B misdemeanor; amend KRS 511.090 to conform.

  CURRENT STATUS

3/12/2020 - posting withdrawn

SCHOOL SAFETY
(WISE, MAX)

AN ACT relating to school safety and declaring an emergency.

amend KRS 158.441 to clarify the definition of "school resource officer"; amend KRS 158.4412 to allow the superintendent to specify any individual to serve as the district's school safety coordinator; amend KRS 158.4414 to clarify which facilities are required to have school resource officers and to require that school resource officers are armed with a firearm; amend KRS 158.4416 to specify that the goal is to have at least one school counselor per public school and to have at least one school counselor or school-based mental health services provider for every 250 students; amend KRS 61.902 to specify that the commission of a special law enforcement officer employed as a school resource officer shall be for four years; amend KRS 156.095 to specify that the Kentucky Department of Criminal Justice Training is to prepare an active shooter training video in consultation with the Department of Education; amend KRS 158.162 to include exceptions to locked classroom doors; amend KRS 508.078 to clarify when a person is guilty of terroristic threatening; amend KRS 16.128, 1.315, 70.062, and 95.970 to conform.

  CURRENT STATUS

2/21/2020 - SIGNED BY GOVERNOR

POWERS OF THE GENERAL ASSEMBLY
(ALVARADO, RALPH)

AN ACT proposing an amendment to Section 54 of the Constitution of Kentucky.

Propose an amendment to Section 54 of the Constitution of Kentucky to allow the General Assembly the power to limit noneconomic damages for injuries resulting in death or for injuries to persons or property, and the power to provide statutes of limitation; provide for submission to the voters.

  CURRENT STATUS

1/8/2020 - (S) Referred to Committee Senate State & Local Government (S)

PUBLIC SCHOOL BUILDING RENOVATIONS
(CARROLL, DANNY)

AN ACT relating to public school building renovations and declaring an emergency.

Amend KRS 162.062 to remove the applicability to plans for the renovation of existing public school buildings.

  CURRENT STATUS

3/17/2020 - SIGNED BY GOVERNOR

SCHOOL SAFETY
(ADAMS, JULIE RAQUE)

AN ACT relating to school background checks.

Amend KRS 160.380, relating to the employment of school personnel, to define "administrative findings of child abuse or neglect" to mean a substantiated finding of child abuse or neglect that is upheld on appeal or not appealed; amend the definition of "clear CA/N check" to include administrative findings instead of substantiated findings; remove the requirement that an existing school district employee self-report a substantiated finding of child abuse or neglect to the superintendent.

  CURRENT STATUS

3/24/2020 - SIGNED BY GOVERNOR

SALES AND TAXES
(MCDANIEL, CHRISTIAN)

AN ACT relating to sales and use tax exemptions.

Amend KRS 139.480 to exempt from sales and use tax tangible personal property purchased by a person for incorporation into a structure or improvement to real property under a contract with the federal, state, or local government, or a resident, nonprofit educational, charitable, or religious institution; apply to sales made after October 1, 2020, but before October 1, 2024; require the Department of Revenue to report the claimed exemptions to the Interim Joint Committee on Appropriations and Revenue; amend KRS 131.190 to give the department authority to provide the report to the Legislative Research Commission.

  CURRENT STATUS

1/17/2020 - (S) Referred to Committee Senate Appropriations & Revenue (S)

MEDICINAL MARIJUANA
(WEST, STEPHEN)

AN ACT relating to medicinal marijuana and making an appropriation therefor.

Create various new sections of KRS Chapter 218A to define terms; to exempt the medicinal marijuana program from existing provisions in Kentucky law to the contrary; to require the Department for Alcoholic Beverage and Cannabis Control to implement and regulate the medicinal marijuana program in Kentucky; to establish the Division of Medicinal Marijuana within the Department of Alcoholic Beverage and Cannabis Control; to establish restrictions on the possession of medicinal marijuana by qualifying patients, visiting patients, and designated caregivers; to establish certain protections for cardholders; to establish professional protections for practitioners; to provide for the authorizing of practitioners by state licensing boards to issue written certifications for the use medicinal marijuana; to establish professional protections for attorneys; to prohibit the possession and use of medicinal marijuana on a school bus, on the grounds of any preschool or primary or secondary school, in a correctional facility, any property of the federal government, or while operating a motor vehicle; to prohibit smoking of medicinal marijuana; to permit an employer to restrict the possession and use of medicinal marijuana by an employee; to require the department to implement and operate a registry identification card program; to establish requirements for registry identification cards; to establish registry identification card fees; to require the department to operate a provisional licensure receipt system; to establish the application requirements for a registry identification card; to establish when the department may deny an application for a registry identification card; to establish certain responsibilities for cardholders; to establish when a registry identification card may be revoked; to establish various cannabis business licensure categories; to establish tiering of cannabis business licenses; to require certain information be included in an application for a cannabis business license; to establish when the department may deny an application for a cannabis business license; to prohibit a practitioner from being a board member or principal officer of a cannabis business; to prohibit cross-ownership of certain classes of cannabis businesses; to establish rules for local sales, including establishing the process by which a local legislative body may prohibit the operation of cannabis businesses within its territory and the process for local ordinances and ballot initiatives; to establish technical requirements for cannabis businesses; to establish limits on the THC content of medicinal marijuana that can be produced or sold in the state; to establish requirements for cannabis cultivators, including cultivation square footage limits; to establish requirements for cannabis dispensaries; to establish requirements for safety compliance facilities; to establish requirements for cannabis processors; to establish procedures for the department to inspect cannabis businesses; to establish procedures for the suspension or revocation of a cannabis business license; to exempt certain records and information from the disclosure under the Kentucky Open Records Act; to require the department to develop, maintain, and operate electronic systems for monitoring the medicinal marijuana program; to require the department to promulgate administrative regulations necessary to implement the medicinal marijuana program; to establish that nothing in the bill requires government programs or private insurers to reimburse for the cost of use; to establish the medicinal marijuana trust fund; to establish the local medicinal marijuana trust fund; and to establish procedures for the distribution of local cannabis trust fund moneys; create a new section of KRS Chapter 138 to establish an excise tax of 12% for cultivators and processors for selling to dispensaries; to require that 80% of the revenue from the excise taxes be deposited into the medicinal marijuana trust fund; to require that 20% of the revenue from the excise taxes be deposited into the local medicinal marijuana trust fund; amend KRS 342.815 to establish that the Employer’s Mutual Insurance Authority shall not be required to provide coverage to an employer if doing so would subject the authority to a violation of state or federal law; amend KRS 139.470 to exempt the sale of medical marijuana from the state sales tax; amend KRS 218A.010, 218A.1421, 218A.1422, 218A.1423, and 218A.500 to conform; amend KRS 12.020 to change the name of the Department of Alcoholic Beverage Control to the Department of Alcoholic Beverage and Cannabis Control and to create the Division of Medicinal Marijuana; and amend KRS 12.252, 15.300, 15.380, 15.398, 15A.340, 15.420, 61.592, 62.160, 131.1815, 211.285, 241.010, 241.015, 241.030, 243.025, 243.0307, 243.038, 243.090, 243.360, 438.310, 438.311, 438.313, 438.315, 438.317, 438,320, 438.325, 438.330, 438.337, and 438.340 to conform; EFFECTIVE January 1, 2021; APPROPRIATION.

  CURRENT STATUS

1/29/2020 - (S) Referred to Committee Senate Judiciary (S)

AMENDMENT TO SECTION 226 OF KENTUCKY CONSTITUTION
(MCGARVEY, MORGAN)

AN ACT proposing an amendment to Section 226 of the Constitution of Kentucky relating to gaming.

Propose to amend Section 226 of the Constitution of Kentucky to authorize the General Assembly to define, permit, oversee, and regulate all forms of otherwise-permissible gaming; provide for the oversight and control of gaming by an administrative body funded by license fees and taxes levied on gaming; prior to July 2040, require 100% of gaming proceeds, in excess of the amount used to pay for an oversight administrative body of gaming, to go to the retirement systems; provide ballot language; submit to voters for ratification or rejection.

  CURRENT STATUS

2/7/2020 - (S) Referred to Committee Senate State & Local Government (S)

REGISTRATION OF FARMERS
(GIVENS, DAVID P.)

AN ACT relating to the registration of farmers for sales and use tax exemption purposes.

Create a new section of KRS Chapter 139 to require persons engaged in farming to obtain an agriculture exemption number to claim an exemption from sales and use tax; require the Department of Revenue to develop a searchable database for sellers and retailers to verify the agriculture exemption number if the purchaser cannot produce documentation of the agriculture exemption number at the time of sale; Effective January 1, 2021.

  CURRENT STATUS

3/27/2020 - SIGNED BY GOVERNOR

GOVERNMENTAL ETHICS
(SCHRODER, WIL)

AN ACT relating to governmental ethics.

Amend 11A.201 to define "financial impact" and refine the definitions of "executive agency decision" and "substantial issue"; amend KRS 11A.211 to include real parties in interest as part of the engagement of the executive agency lobbyist in the requirement to report compensation paid or received; amend KRS 11A.010 and 11A.233 to conform.

  CURRENT STATUS

4/24/2020 - SIGNED BY GOVERNOR

UNDERGROUND FACILITY PROTECTION
(MILLER, JERRY T.)

AN ACT related to underground facility protection.

Amend KRS 367.4903 to define "positive response," "unique identification number", and "locator"; amend KRS 367.4909 to require operators to update the positive response system documenting the status of marking the approximate location of its underground facilities and to require excavators to give additional time to operators of underground facilities transporting gas or hazardous liquids or transmitting electricity; amend KRS 367.4911 to require excavators that find evidence of an unmarked underground facility to notify the protection notification centers and give the operators 6 hours to identify the facility; provide that if an operator of underground facilities other than one transporting gas or hazardous liquids or transmitting electricity fails to respond to locate requests and to update the positive response system the excavator shall not be liable for damages resulting from the operator's failure to comply with the duties provided in the Underground Facility Damage Prevention Act of 1994; amend KRS 367.4913 to clarify the duties of the protection notification centers and to require the centers to maintain certain information for 5 years and file an annual report with the Governor and the Legislative Research Commission.

  CURRENT STATUS

3/19/2020 - (S) recommitted to committee Senate Economic Development, Tourism, and Labor (S)

ABANDONED AND BLIGHTED PROPERTY
(MILLS, ROBBY)

AN ACT related to abandoned and blighted property

Create new sections of KRS Chapter 99 to define "abandoned and blighted property," "actively marketed," "building," "competent entity," "conservator," "conservator's fee," "costs of rehabilitation," "historic structure," "immediate family," "local government," "owner," "party in interest," "rehabilitation," and "vacant"; establish the guidelines for filing and serving a petition for the appointment of a conservator to take possession of and undertake the rehabilitation of an abandoned or blighted property and the procedure for hearing the petition; establish the powers and duties of the conservator; provide for the submission of a plan by the conservator to rehabilitate, demolish, or sell the abandoned and blighted property; establish standards for termination of the conservatorship; establish the short title of "Abandoned and Blighted Property Conservatorship Act"; EFFECTIVE January 1, 2021.

  CURRENT STATUS

4/15/2020 - (S) recommitted to committee Senate Economic Development, Tourism, and Labor (S)

PROTECTION FOR ENTREPRENEURS AND WORKERS
(WHEELER, PHILLIP)

AN ACT related to protection for entrepreneurs and workers

Amend KRS 336.010 to add definitions of "contractor," "person," "prime contractor," and "subcontractor"; amend KRS 336.040 to give authority to the Labor Cabinet for purposes of determining if a person is an employee or an independent contractor; provide the procedure for the determination; create a new section of KRS Chapter 336 to provide the elements for determining if someone is an independent contractor; limit prime contractor liability and eliminate employee benefits and wages for independent contractors; require the cabinet to notify certain governmental agencies that employee misclassification has occurred; amend KRS 336.050 to require the secretary of the Labor Cabinet to develop a training program to educate entrepreneurs and the public about classification of employees to begin no later than July 1, 2021; amend KRS 336.990 to add penalties for the misclassification of employees; Sections 1, 3 and 5 EFFECTIVE January 1, 2022.

  CURRENT STATUS

3/5/2020 - (S) Referred to Committee Senate Economic Development, Tourism, and Labor (S)

GOVERNMENT PROCUREMENT
(GIRDLER, RICK)

AN ACT relating to government procurement

Amend KRS 45A.180 to require that any governmental body that accepts a proposal be limited to increasing the project price with the winning bidder by no more than ten percent or a new request for proposals shall be initiated.

  CURRENT STATUS

3/5/2020 - (S) Referred to Committee Senate State & Local Government (S)

EXECUTIVE BRANCH ETHICS
(STIVERS, ROBERT)

AN ACT relating to executive branch ethics.

Amend KRS 11A.206 to prohibit executive agency lobbyists from contributing to the campaigns of candidates for Governor, Lieutenant Governor, Treasurer, Secretary of State, Attorney General, Auditor, and Commissioner of Agriculture.

  CURRENT STATUS

3/6/2020 - (S) Referred to Committee Senate State & Local Government (S)

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Kentucky Lantern
House bill would make it a crime to disrupt activity of Kentucky legislature
A year after protests against a controversial anti-trans bill disrupted the Kentucky House of Representatives, lawmakers are advancing a bill that would criminalize “interference” with a legislative proceeding.
Lexington Herald-Leader
Mentally ill teens have struggled in KY juvenile jails. A senator has a solution
Kentucky would build a $22 million, 16-bed mental health facility to treat youths held by the state Department of Juvenile Justice under a proposal unveiled Tuesday by a key senator.
Lexington Herald-Leader
Kentucky legislature discussing bill to aid childcare programs
Officials say childcare providers in Kentucky could be looking at a financial crisis later this year. Legislation is working through the Kentucky General Assembly to keep this from happening.
WEKU
KY ‘school choice’ amendment advances, would allow tax dollars for private, charter schools
Majority Caucus Chair Suzanne Miles, R-Owensboro, sponsored House Bill 2, which would give voters the choice of amending the state constitution to allow taxpayer dollars to go to non-public schools. It was approved Tuesday by an 11-4 vote in the House Committee on Elections, Constitutional Amendments and Intergovernmental Affairs.
Lexington Herald-Leader
Ky. senator wants to build Louisville mental health detention center for kids in state custody
A Kentucky lawmaker is working with state agencies to reform how they manage children in their custody, especially those who need psychiatric services.
WFPL
Senator unveils $165M upgrade of juvenile detention system, including Louisville expansion
After an audit released in late January offered a closer look at issues plaguing Kentucky's Department of Juvenile Justice, state Sen. Danny Carroll told the chamber to expect a bill soon aimed at addressing those problems.
Louisville Courier-Journal