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Legislative News Releases

Updated April 16, 2008

 

 

Some releases have related photos available. 

 


 

April 16, 2008

 

General Assembly's 2008 session adjourns

 

FRANKFORT -- State lawmakers have adjourned "sine die," bringing the Kentucky General Assembly's 2008 session to a close.

 

Over the course of this year's 60-day legislative session, lawmakers considered more than 1,000 bills. More than 150 of those bills were approved and sent to the governor, including the budget bill that will guide state spending over the next two years.

 

A sampling of some of the legislation approved during this year's session follows:

 

Adventure Tourism. Senate Bill 196 will boost the state's adventure tourism industry by allowing the state to enter into agreements with private property owners for the use of their land for recreational activities. The agreements would allow property owners to permit public use of the land without facing the liability issues they otherwise would.

 

Agriculture. SB 242 will establish a training fund to improve, promote, protect and support Kentucky's beekeeping industry. Supporters of the bill note that bee colonies play a key role in the state's agricultural industry by helping to pollinate crops.

 

Alcohol vaporizers. House Bill 202 will ban the sale, purchase or use of alcohol vaporizing devices, which can be used to inhale intoxicating fumes of alcohol.

 

Alternative teacher certification. SB 64 will create incentives to help train those with math and science degrees who want to become certified to teach, as well as help teachers in other fields become re-certified in math and science.

 

Amusement park safety. SB 203 will require more frequent inspections of amusement park rides and prevent anyone under 18 from operating the rides.

 

Animal cruelty. SB 58 will increase penalties for those who torture dogs or cats. Causing physical injury to a dog or cat as a result of torture would be a Class A misdemeanor that carries up to a year in jail, while causing serious physical injury or death would be a Class D felony punishable by 1-5 years in prison. Currently, all torture cases involving a dog or cat are Class A misdemeanors for a first offense.

 

Blood donations. HB 139 will allow 16-year-olds who weigh at least 110 pounds to donate blood with written parental or legal guardian consent. The bill was crafted to help address blood shortages.

 

Booster Seats. SB 120 will require young children who are too big for infant car seats to be placed in booster seats when riding in vehicles. The bill states that children under 7 years old and between 40-50 inches tall must use the boosters.

 

Bullying. HB 91 will require the state Department of Education to craft discipline guidelines. The bill will also require local school authorities to alert law enforcement when school harassment involves a potential felony. Yearly reports on school harassment will be made to the Department of Education and the Legislature.

 

Cancer. SB 98 will provide Medicaid coverage for breast and cervical cancer treatments for uninsured women. SB 96 will require insurers to cover colorectal cancer screenings, in accordance with guidelines of the American Cancer Society.

 

Clean waterways. HB 717 will create watershed authorities to restore and improve streams around the Commonwealth. The authorities will select cleanup projects and will help leverage more money for these efforts through various grants and programs.

 

Criminal justice. HB 683 allows the state Parole Board to review the cases of Class C felons without a hearing, allows for GPS tracking technology for home incarceration cases, and mandates DNA collection from all felons as well as violent juvenile offenders.

 

Early voting. HB 479 will give citizens greater access to the voting process by allowing them to request absentee ballot applications via email. The bill also allows members of the military to return unused absentee ballots and still be allowed to vote on Election Day.

 

Elections. HB 370 will erase the requirement that runoff elections be held in gubernatorial primary races if no candidate receives at least 40 percent of the vote.

 

Energy consumption. HB 2 creates incentives for homeowners to use solar and wind energy, and to use other energy-efficient lights, windows, and insulation. The bill also requires state government and local schools to build and lease energy-efficient buildings, and establishes a low-interest loan program to help businesses and public agencies become more energy efficient.

 

Gas theft. SB 136 will give gas station operators a way to collect payments from people who drive off without paying for fuel. The bill outlines specific civil liability and related procedures for financial recovery after fuel theft without immediately going to court.

Holocaust education. House Joint Resolution 6 will require the Department of Education to develop a curriculum guide for schools that may be used to teach about the Holocaust as example of genocide.

Kentucky products. HB 484 will promote use of locally-grown produce and other food products by public postsecondary institutions. If colleges and universities use a vendor or food service, the legislation encourages them to use food produced in Kentucky.

 

Math and science incentives. SB 2 will offer incentives to increase the number of students taking advanced math and science courses in Kentucky. Incentives would be provided from a science and mathematics advancement fund aimed at improving students' math and science knowledge from elementary school through college.

 

Merit scholarships. SB 75 will allow students with 2.5 GPAs who are on track to graduate from college to keep their full KEES scholarship money each semester. Currently, students with GPAs above 2.5 but below 3.0 only receive half their award.

 

Military. HB 168 will allow active duty military serving outside the state up to 90 days to renew their driver's licenses after returning to Kentucky. They could not be cited for driving without a license during that period.

 

Penal code. Senate Joint Resolution 80 calls for a legislative subcommittee to undertake a review of the state penal code. The legislation would require the Legislature's Judiciary Committee to appoint a Penal Code Study Subcommittee, upon approval of General Assembly leadership. The subcommittee would be responsible for thoroughly reviewing the state's penal code and finding ways to redraft and modernize it.

 

Sex offenders. HB 211 will broaden Kentucky's child sex abuse laws while increasing penalties for abusers and those who fail to report abuse. The bill will include older children under state laws that protect minors from first-degree sexual abuse by raising the age of children covered by the law from 12 to 16, or 16 to 18, if the perpetrator is in a position of trust or authority.

 

Trauma care. HB 371 seeks to create a statewide trauma care program in the Department of public health. The bill also establishes an advisory commission and registry of trauma incidents.

 

Water and sewer projects. HB 608 contains line-item water and sewer projects for coal and non-coal counties in Kentucky. Funding for projects in non-coal counties will come from $150 million in bonds derived from the state's master tobacco settlement dollars, while funding for coal county projects will come from $75 million in bonds paid with coal severance revenue.

 

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April 3, 2008

 

This week in Frankfort

 

FRANKFORT -- Short on days but long on hours and drama, this legislative week saw final passage late Wednesday of a two-year state budget that ameliorated some of the deepest cuts proposed by Gov. Steve Beshear, but did so without the Legislature passing either a tobacco-tax increase or approving a constitutional referendum on casino gambling in Kentucky -- two revenue-generating proposals floated this session to deal with shortfalls estimated at $900 million.

 

HB 406, which passed the House Wednesday night at 11:15 as the clock ticked toward a midnight deadline, is the budget for the biennium beginning this July 1 and running through June 30, 2010. It had passed the Senate some hours earlier. It was the product of a marathon conference committee of House and Senate members, who worked into an eighth day -- including one last 21-hour, all-night push -- to arrive at a compromise version of the budget agreeable to both chambers.

 

The two chambers came to those discussions with different revenue assumptions built into their proposals. The Senate in the version it passed last week turned down a House plan to raise the state cigarette tax from 30 cents to 55 cents a pack and to apply the state’s 6 percent sales tax to a few selected services, such as chartered air flights, security services and armored cars. That no-tax view prevailed in the conference committee.

 

Conferees were under the gun to get the bill passed ahead of the Legislature's 10-day veto recess, which is designed to give lawmakers a chance to override gubernatorial vetoes. The governor has 10 days, excluding Sundays, in which to veto a bill sent to him. That includes individual line-items in the budget bill. By passing the budget Wednesday -- before recessing until the final days of the session on April 14-15 -- lawmakers preserved their ability to override any vetoes the governor imposes.

 

At this writing Beshear has said he does not intend to veto the entire document, but was reviewing individual line-items as possible targets for his veto pen.

 

In conjunction with the budget bill, the House and Senate also approved Wednesday a separate but companion measure to provide $150 million for water and sewer projects, and small community projects in coal counties paid for with coal severance-tax receipts. As part of that agreement, some $230 million in state transportation money was freed up for road projects.

 

The budget bill itself -- which covers some $19 billion in Executive Branch spending for the coming biennium -- passed the Senate 35-3, and the House 74-21.

 

The budget lawmakers passed restores all or portions of many of the most controversial cuts Beshear had proposed, especially in education. Instead of the 12-percent cuts in higher education he envisioned, this budget imposed only a 3-percent reduction. Base funding for public schools -- including 1-percent raises for teachers and school employees in each of the next two years -- is $43.5 million more in 2008-09 and $85.6 million more in 2009-10 than the administration proposed.

 

State employees would also get 1-percent annual raises.

 

The budget also appropriates $60 million in bond funds for the Bucks for Brains program aimed at luring top researchers to state universities, and fully funds the Kentucky Education Excellence Scholarships program (KEEP) for the biennium.

 

It provides money for new infrastructure at Fort Knox, which is expecting an influx of new troops in the next few years, and for two worldwide events scheduled for Kentucky — the 2008 Ryder Cup golf tournament in Louisville and the 2010 Alltech FEI World Equestrian Games in Lexington. There is a mechanism in the budget agreement for the Louisville bridges project to proceed. Overall, most state government programs receive more funding in the final budget than in the spending proposal Beshear submitted the Legislature in January.

 

Although taxes aren't raised, the budget finds additional money by replacing fewer state employees when they retire, by refinancing some state debt, by requiring the Kentucky Lottery to contribute more of its profits to the state, and through other efficiency measures.

 

With passage of the budget, most of the work of this year's session is concluded, although several bills remain in conference committee and could yet be voted on during the two veto days in April. Among those is the state-employees pension-rescue bill, which has yet to be agreed upon in final form by conferees, and would need to be voted on by both chambers. Also still in conference committee is the executive branch ethics-reform bill.

 

The General Assembly offers citizens a variety of ways to follow and participate in the legislative process.

 

The Kentucky Legislature Home Page (www.lrc.ky.gov) provides information on each of Kentucky’s senators and representatives, including their phone numbers, addresses, and legislative committee assignments. The home page also provides summaries and texts of bills, as well as information on the progress each bill has made through the legislative process.

 

By going to the LRC Public Information Office's eNews page (www.lrc.ky.gov/pubinfo/listserv.htm) citizens can subscribe to frequent e-mail dispatches on what's happening at the Capitol. The office also maintains a web log, Capitol Notes (www.lrc.ky.gov/pubinfo/capitol_notes.htm), with timely updates on legislative activity.

 

There are also several toll-free numbers for citizen use. A taped message containing information on legislative committee meetings is available by calling (800) 633-9650. To leave a message for a legislator, call the General Assembly’s toll-free Message Line at (800) 372-7181. People with hearing difficulties may leave messages for lawmakers by calling the TTY Message Line at (808) 896-0305.

 

Citizens can write any legislator by sending a letter with the lawmaker’s name to: Capitol Annex, 702 Capital Ave., Frankfort, KY 40601.

 

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April 3, 2008

                                                            Final budget passed, heads to governor
 
FRANKFORT -- Kentucky's $19 billion budget has been sent to the governor's office after final passage late Wednesday night by the General Assembly.
 
The Senate passed House Bill 406, the state's two-year spending plan, on a 35-3 vote; the House followed suit on a 74-21 vote.
 
The final report, the result of a weeklong House-Senate conference, includes no new taxes, but restores most of the funding the governor proposed cutting in higher education.
 
Base school funding for public schools is maintained, as is textbook funding for elementary and secondary education and programs like Safe Schools and Read to Achieve.
 
"The fact is, this is a very good budget considering the conditions in which we find ourselves," said Senate budget committee chair Charlie Borders, R-Russell. The legislature tapped $400 million in previously unavailable resources, from debt restructuring to savings due to a coming wave of state employee retirements. The Kentucky Lottery will also be required to increase its payments to the commonwealth by $7 million per year, 28 percent of its revenues.
 
"For the first time in memory, we will have a budget where in both years of the biennium, spending is less than in the current baseline," said Senate Minority Floor Leader Ed Worley, D-Richmond.
 
House Appropriations and Revenue Committee Vice Chair Rep. Robin Webb, D-Grayson, said the budget is a result of "fiscal crisis times."
 
"We're struggling in recession, our federal funding has been cut across the board. It's hard to maintain--even think about maintaining--continuation of services...when our moneys are being diverted billion by billion by billion, day in and day out," Webb said.
 
The bill would provide $90 million in new dollars for health and human services programs including 100 new Supports for Community Living slots that provide alternatives to institutionalization for those with developmental disabilities and additional SCL slots for those with acquired brain injuries. It would also approve construction of a new Eastern State Hospital in Lexington and new group homes at Hazelwood Center in Louisville, although House Health and Human Services budget subcommittee chairman Rep. Jimmie Lee, D-Elizabethtown, said those projects would require no General Fund dollars from the budget.
 
In the area of corrections, the state expects to save $31 million by moving non-violent offenders, generally Class D felons serving five years or less, out of prison and into community programs. The budget also provides $2 million in coal severance money for Operation UNITE, an anti-drug program focused on eastern Kentucky, and $1.8 million in coal severance money for drug courts in coal-producing counties.
 
Capital construction was largely limited to safety, health, and other emergency needs, including needs at Fort Knox, which will be greatly expanding in the near future. Money to prepare for the 2008 Ryder Cup in Louisville and the 2010 Alltech FEI World Equestrian Games in Lexington was also included, as was funding for enhanced school construction. The final debt ratio will be 6.32 percent of state spending.
 
Teachers and state employees will receive 1 percent raises in each year, but if state revenues outpace projections, those raises could be as much as 3 percent in the second year. If revenues exceed expectations by just 1 percent, Senate President David Williams said, the full raise would be realized and several other projects, mostly at universities, could begin. Any additional money would go toward the state's rainy day fund, currently projected at $32 million.
 
Lawmakers also approved a supplemental appropriation bill, House Bill 410. The bill, which passed 38-0 in the Senate and 83-10 in the House, includes $150 million in bond funding from coal and tobacco accounts for water and sewer projects as well as $231 million in federal GARVEE Bond funding for the Louisville bridges project. Also in that bill are line-itemed coal severance projects.
 
"I think we can get $1 billion in projects going in this state," said Williams, R-Burkesville, by leveraging funds in HB 410 with other resources.

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March 28, 2008

 

This week in Frankfort

 

FRANKFORT -- House and Senate budget negotiators spent four long days and countless sometimes-tedious hours this week, trying to reach compromise on a two-year spending plan for Kentucky following Senate passage of its version on the budget on Monday. The House had passed its version earlier, and as expected, there were significant differences between the two that required appointment of a conference committee to thrash out the necessary compromises to agree on a final unified bill.

 

Under discussion was -- and remains -- House Bill 406, the two-year, $19 billion spending blueprint for fiscal 2008-2010 that will take effect July 1. Since Tuesday, conferees from the two chambers have been working through a 122-page laundry list of differences between versions passed by the House and Senate. At this writing, that work continues.

 

One fundamental difference between the two budgets is the House version assumes a 25-cent-a-pack increase in the state cigarette tax, as well as an extension of the state sales tax to cover five specified services. That means the House budget includes about $200 million more yearly in anticipated spending, largely reflecting those additional revenues. The Senate version raises no taxes. In fact, it proposes giving active-duty military personnel a rebate of their state income taxes.

 

If the work of reconciling the two chambers' budget bills is the legislative equivalent of hard labor, the strain is compounded by the ticking clock. Friday was the 60-day session's 56th day. Leaders say agreement must almost certainly be reached by Saturday (not an official legislative day because the full chambers won't convene) if the lengthy and highly detailed budget bill is to be printed, proofread and distributed to the members for a vote by Tuesday -- the last day the calendar calls for the Legislature to meet before its 10-day veto recess.

 

The veto recess is designed to give lawmakers an opportunity to override any gubernatorial vetoes when they return for two final days, now scheduled for April 14-15. Passing the budget bill next week would allow for such an override opportunity if the governor line-item vetoes any part of the document. Although a vote on the budget bill -- or any bill, for that matter -- could be delayed until the mid-April return, the Constitutional mandate that the Legislature adjourn by April 15 means the governor could issue vetoes on such late-passing legislation without the Legislature subsequently being in session to vote on overrides. (The governor has 10 days to veto a bill -- hence the 10-day length of the veto recess.)

 

Of course, the budget bill isn't the only piece of legislation on which the chambers must meet to hammer out differences. Conference committee were appointed and met throughout the week on a number of bills -- including House Bill 600, the much-discussed overhaul of the beleaguered state-employees pension system, and House Bill 250, the executive branch ethics-reform bill. Both those bills were still under discussion at this writing. Also in conference committee is the so-called bully bill, House Bill 91, designed to address what's been called a growing problem in Kentucky schools.

 

Meanwhile, this week also saw the apparent final demise, for this session at least, of one of this year's most dramatic initiatives -- a Constitutional amendment to allow for casino gambling in Kentucky.  Beshear had campaigned on that issue, and a bill allowing Kentucky voters to decide the question in a statewide referendum actually passed out of a House committee. But backers could never muster the required 60 votes for passage in the full House, and it was never called for a vote. With time running out this week, the governor conceded the bill was dead for this year.

 

The General Assembly offers citizens a variety of ways to follow and participate in the legislative process.

 

The Kentucky Legislature Home Page (www.lrc.ky.gov) provides information on each of Kentucky’s senators and representatives, including their phone numbers, addresses, and legislative committee assignments. The home page also provides summaries and texts of bills, as well as information on the progress each bill has made through the legislative process.

 

By going to the LRC Public Information Office's eNews page (www.lrc.ky.gov/pubinfo/listserv.htm) citizens can subscribe to frequent e-mail dispatches on what's happening at the Capitol. The office also maintains a Web log, Capitol Notes (www.lrc.ky.gov/pubinfo/capitol_notes.htm), with timely updates on legislative activity.

 

There are also several toll-free numbers for citizen use. A taped message containing information on legislative committee meetings is available by calling (800) 633-9650. To leave a message for a legislator, call the General Assembly’s toll-free Message Line at (800) 372-7181. People with hearing difficulties may leave messages for lawmakers by calling the TTY Message Line at (808) 896-0305.

 

Citizens can write any legislator by sending a letter with the lawmaker’s name to: Capitol Annex, 702 Capital Ave., Frankfort, KY 40601.

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March 28, 2008

 

Motor fuel drive-off bill clears House

 

FRANKFORT -- A bill that lawmakers hope would prevent fuel pump drive-offs by giving retailers a way to collect payment and fines for stolen fuel without going directly to court passed the Kentucky House 90-7 today.

 

House Majority Whip Rep. Rob Wilkey, who presented Senate Bill 136 on the House floor for sponsor Sen. Jack Westwood, R-Crescent Springs, said the bill will give retailers who would not ordinarily take a drive-off case to court an incentive to recoup unpaid fuel costs on their own.

 

SB 136 now returns to the Senate for consideration of House changes to the bill.

 

"From a practical standpoint, most retailers are not going to take the time and energy to go to court to collect $30, $40 or $50. That's the problem," said Wilkey. "This will give them some incentive to get people to pay for the fuel that they're stealing."

 

Under the bill, retailers would record the license number of the drive-off vehicle, send the vehicle owner a certified letter with photographic evidence of the drive-off and ask the person to pay the cost of the fuel and a $30 penalty, said Wilkey. If the person does not pay the price of the fuel and the $30 penalty within 30 days, then the case would go to court where the person would be liable for the price of the fuel and $30 penalty as well as a civil penalty in the amount of either the price of the fuel or $100, he said.

 

The requirement for photographic evidence--including but not limited to video surveillance--along with the certified letter was part of a floor amendment added to the bill on a 74-15 vote. Some House members were concerned that retailers would not have a legal remedy against drive-offs under the amendment unless they had surveillance equipment.

 

"It appears that if surveillance video is not used, that you cannot bring that charge," said Rep. Danny Ford, R-Mt. Vernon.

 

But Wilkey said the amendment would only affect civil, not criminal, liability brought in such cases.

 

"Before you can impose that civil penalty on someone you have to have some pretty hard evidence," said Wilkey.  

 

Those caught driving off without paying for motor fuel for the second time are subject to license suspension under current Kentucky law, although Wilkey said the law has not been very effective. Legislation similar to SB 136 has been 70 percent effective in Minnesota, he said.

 

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March 24, 2008

 

Budget bill approved by Senate

 

FRANKFORT — A budget plan tighter than the House version passed the Senate on a 36-2 vote today, paving the way for a conference committee to work out a compromise measure.

 

The Senate version of House Bill 406 included none of the revenue measures included in House Bill 262. "The budget we're proposing raises no taxes," said Senate Appropriations and Revenue Committee Chair Charlie Borders. "I think that's extremely important."

 

While the Senate would augment state coffers based on increased lottery revenue, savings from state worker retirements, and other efficiency measures, there are still several areas where the Senate cut spending from the House plan. Among the savings would be a $500 million bond issue to pay for roads included by the House plan but eliminated by the Senate.

 

As a result of the spending cuts, the Senate plan would result in the state's debt capacity being 6.27 percent of the budget. "In recent years, I don't ever remember the ratio being that small," said Borders, R-Russell. The governor's budget would have given a debt ratio of 6.34 percent, while the House plan included debt of 6.56 percent, Borders said.

 

While the governor's budget called for 12 percent cuts to higher education, the Senate was able to restore three-fourths of that funding, resulting in 3 percent reductions. At the same time, the Senate plan would call for full funding for KEES scholarships to make in-state colleges more affordable. Senators also approved $60 million in Bucks for Brains dollars for state universities, the same as the governor's plan but less than the House's $115 million plan.

 

State community and technical colleges would see $15 million to maintain and operate new facilities.

 

Teachers and other state employees would see 1 percent raises each year of the biennium. Any surpluses that arise from an improved economy however, would first go toward doubling those raises each year.

 

The Senate plan includes $2 million annually for Operation UNITE, an anti-drug program in eastern Kentucky, while $24 million in savings was projected by removing non-violent state inmates from county jails and finding other means of punishment. In part because of those efforts, Senate Majority Floor Leader Dan Kelly said, the House's $40 million plan to expand the Little Sandy Correctional Center was taken out.

 

The Senate also concurred in a House plan for a new Eastern State Hospital facility in Lexington.

 

Military service members would get a refund of their state income tax under the Senate plan.

 

Senators also approved House Bills 407 and 408, the legislative and judicial branch budgets, respectively. Each passed by a 37-0 vote. While the judicial budget was approved with minor changes, the Senate-approved legislative branch budget was identical to the House plan and is now ready for the governor's signature.

 

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March 21, 2008

 

This week in Frankfort

 

FRANKFORT --  The disparate strands and storylines of the 2008 session of the Kentucky General Assembly began coming together this week, as the session's major initiatives moved ever closer to their day of reckoning -- when conference committees of the House and Senate sit down to resolve differences in bills passed by each chamber.

 

Pending in that manner, or likely soon to be, are such headline-grabbing bills as the state budget, the state-employee pension-rescue bill, and executive branch ethics legislation.

 

Not yet even close to that point -- and with an uncertain future -- is the proposed constitutional amendment allowing a referendum on casino gambling in Kentucky. The measure to allow a limited number fo casinos in Kentucky has been pushed by Gov. Steve Beshear as a way to generate significant new revenue for state government. But it remains in limbo in the House, as supporters try to find the 60 votes necessary to pass such a constitutional initiative.

 

The Senate is expected to pass its version of the two-year state budget early next week, in a form that will likely differ in several ways from the earlier version passed by the House -- most notably, without the 25-cent-a-pack hike in the state cigarette tax the House based its revenue projections on. Pension reform has already been passed by both chambers, again with differences in the two versions, and likely awaits conference committee action. And this week, ethics reform joined that triumvirate of major bills moving toward resolution, when the Senate passed its version of House Bill 250, in a form that adds certain new legislative ethics requirements to the original House emphasis on the executive branch.

 

Among other provisions, the ethics bill prohibits lobbyists from buying a public official anything other than food or drink. Any such gifts would be noted on a monthly report lobbyists would then have to file. This puts executive branch restrictions more in line with existing legislative ones.

 

The bill also changes the makeup of the Executive Branch Ethics Commission. Currently, all members of the commission are appointed by the governor -- an arrangement some see as creating a conflict of interest. Under HB 250, the Attorney General, Secretary of State, and Auditor would each nominate a group of potential appointees on a rotating basis when a commission vacancy arises. The governor would select from that group, with every fourth pick being the governor's own.

 

The Senate changes include a ban on campaign contributions to candidates for statewide office by lobbyists or contractors who hold or seek state contracts. This would represent a major reform, since lobbyists and contractors have in the past been prime contributors in statewide races, especially the governor's race.

 

The Senate version also imposes a new requirement on legislators themselves: That it be a felony for any lawmaker to help his or her employer develop proposed legislation, or to debate or vote on an issue that relates to that specific employer. This would be added to the existing prohibition -- contained in the legislative ethics code -- against voting on matters that directly benefit themselves, their families or their business associates. Violations could be punished by up to five years in prison.

 

Another Senate amendment would require dismissal of any complaint to either the executive-branch or legislative ethics commission if the person filing the complaint discusses it publicly before the commission has a chance to conduct its preliminary investigation. This provision is aimed at frivolous or unfounded complaints filed for purely political reason.

 

The Senate changes in the bill mean it too is almost certainly heading for conference committee resolution.

 

Meanwhile, the House last week passed a measure that would see Kentucky join the nationwide trend toward early voting. HB 138 would allow registered voters to cast their ballot at least 12 days before Election Day, without having to say why. The process -- usually called early voting, but also no-excuse absentee voting -- would be less restrictive than the current system of absentee voting in Kentucky, where only voters who will be out of town or meet certain medical criteria can cast early ballots. As this year's presidential campaign has shown, early voting is a growing trend nationwide, and some say it's been a factor in the large turnouts seen in states that allow it.

 

The General Assembly offers citizens a variety of ways to follow and participate in the legislative process.

 

The Kentucky Legislature Home Page (www.lrc.ky.gov) provides information on each of Kentucky’s senators and representatives, including their phone numbers, addresses, and legislative committee assignments. The home page also provides summaries and texts of bills, as well as information on the progress each bill has made through the legislative process.

 

By going to the LRC Public Information Office's eNews page (www.lrc.ky.gov/pubinfo/listserv.htm) citizens can subscribe to frequent e-mail dispatches on what's happening at the Capitol. The office also maintains a web log, Capitol Notes (www.lrc.ky.gov/pubinfo/capitol_notes.htm), with timely updates on legislative activity.

 

There are also several toll-free numbers for citizen use: A taped message containing information on legislative committee meetings is available by calling (800) 633-9650. To leave a message for a legislator, call the General Assembly’s toll-free Message Line at (800) 372-7181. People with hearing difficulties may leave messages for lawmakers by calling the TTY Message Line at (808) 896-0305. Citizens can write any legislator by sending a letter with the lawmaker’s name to: Capitol Anex, 702 Capital Avenue, Frankfort KY 40601.

 

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March 14, 2008

 

 

This week in Frankfort

 

FRANKFORT -- -- The budgetary ball is now in the Kentucky Senate's court, following House passage this week of its version of a two-year, $19 billion state spending plan that includes a 25-cent increase in the cigarette tax to help stave off spending cuts proposed by Gov. Steve Beshear earlier this year.

 

House Bill 262 -- the revenue measure tied to the budget bill -- would increase the state's current 30-cent tax on a pack of cigarettes to 55 cents. The quarter-a-pack increase was far less than the 70-cent-a-pack hike proposed by Beshear last week, in a move that surprised many. The bill also raises the tax on other tobacco products such as snuff and cigars, and extends the state's 6 percent sales tax to five specified services: armored cars, security, commercial linen, janitorial services, and air charters.

 

All told, the revenue package is expected to generate nearly $300 million in revenue over the next two years, with about $230 million of that coming from higher tobacco taxes alone. Combined with nearly $500 million created by debt restructuring, state workforce retirement attrition, and efficiency moves, House budget writers project the state will have nearly $800 million in restored revenue over the next biennium to avoid many of the cuts proposed by Beshear in the budget he presented earlier this session.

 

Among other things, it restores $253.4 million to state universities, felt by many to be hardest hit in the Beshear budget. Rather than inflict the 12 percent budget cuts over the next biennium the governor proposed, the House budget allocates $126 million more in each of the next two years for the universities' base operating budgets. It also allocates another $115 million for the Bucks for Brains research program -- about $55 million more than was proposed by the administration.

 

Public schools would also see some relief. The House budget provides an additional $42 million in base per pupil SEEK funding for schools and restore $33.1 million in funding for merit-based KEES scholarships. Salary increases for teachers of 1 percent in 2008-09 and 3 percent in 2009-10 would also be provided. Under the governor's original proposed budget, teachers got no raises.

 

Including those raises, the House budget pumps more than $330 million of additional funding into public schools. It also restores $130 million in funding to social services agencies, who also faced cuts.

 

The budget bill now goes to the Senate, where changes are virtually certain. The final budget plan will likely then be hammered out in a conference committee with members from both chambers, who must reach compromise on differences between the House and Senate versions.

 

Meanwhile, the Senate itself passed a major piece of legislation last week, its version of the state-employee pension reform bill that had earlier passed the House.

 

As in the House plan, the Senate version requires new hires to work longer in most cases to receive their full benefits, and requires that 1 percent of their salary to be contributed toward retiree health benefits. However, the Senate plan requires employees to work to age 57, with combined age and years of service totaling 87. The House version included a minimum retirement age of 55 and an age/service total of 85. Under the current system, workers can retire at any age as long as they have at least 27 years of service.

 

The Senate version also creates a new and separate annuity savings plan for employee retirement. Rather than paying 5 percent of their salary into the regular pension system, new hires would pay 4 percent into that system, leaving 1 percent to invest in a mandatory separate annuity account. After five years, the state would kick in a 2-1 match, which would gradually increase the longer the employee works, growing over time to $2.50 for every dollar a worker pays in. While participation in the annuity plan is mandatory, employees leaving state government could take their savings with them.

 

Another significant change deals with the money the state pays into the pension plan each year. One reason the system faces an unfunded liability of $26 billion is that previous budgets haven't contributed as much into the system as actuarially recommended. That problem compounds over time, because the vast majority of pension payments come not from employee or employer contributions, but from investment earnings on those contributions. The Senate plan would mandate lawmakers pay a steadily larger share of the recommended amount until 2020, at which time the shortfall would be nearly erased.

 

While few changes can be made involving current employees -- they are guaranteed the benefit plan that existed when they started work -- the pension-reform bill does address the controversial issue of "double dipping." Currently, public employees can retire, collect their pension, and then return to work in six months, continue collecting their pension, and contribute toward a second pension. Under the Senate-approved plan, workers would have to wait a year to return to work. The Senate plan, like the House plan, also would not allow a retired public employee returning to a state job to begin a second pension.

 

Additionally, the Senate plan would eliminate the cost-of-living adjustment for those who retire after 2018. That change would be applied to new hires as well. The House has proposed freezing the COLA -- which is currently based on inflation as measured by the Consumer Price Index-- at 1.5 percent.

 

The General Assembly has a number of ways for citizens to stay informed about legislative activities during the session. They can visit the Legislative Research Commission website at www.lrc.ky.gov or call several toll-free numbers:

 

·         The Bill Status Line: 866-840-2835.

 

·         The Calendar Line (for meeting schedules): 800-633-9650.

 

·         The Message Line (to leave a message for an individual legislator): 800-372-7181.

 

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March 13, 2008

 

State budget bill, revenue package pass House

 

FRANKFORT -- A nearly $19 billion Executive Branch budget bill and $300 million revenue bill that would help to cover costs for education, health services and other areas over the next two years passed the Kentucky House yesterday.

 

Funding from the revenue bill, or House Bill 262, would be combined with approximately $500 million created by the budget bill, or HB 406, to provide nearly $800 million in new revenue over the biennium. Tax changes--including a 25 cent increase in the cigarette tax, an increase in the state tax on other tobacco products and applying the state sales tax to select services like air charters and armored cars--would create new funding under HB 262 while debt restructuring and state workforce attrition through the budget would provide the remaining new dollars.

 

House Bill 262, sponsored by Rep. Jim Wayne, D-Louisville, passed 50-45 followed by an 84-14 vote on HB 406, sponsored by Rep. Harry Moberly, D-Richmond. Both measures now go to the Senate for its consideration.

 

Not all House members were pleased with the tax plan, including increases in the cigarette tax and changes that would tax moist tobacco, or snuff, at an ad valorem rate rather than on a unit basis.

 

"At a time we are searching for revenue, I believe this could have unintended consequences: Hurting our revenue goals, and creating an unfair (type) of taxation," Rep. John Tilley, D-Hopkinsville, said of the snuff tax changes. According to Rep. James Comer, R-Tompkinsville, the state has other ways of taking care of its revenue needs.

 

"We can lower the cost of school projects by 20 percent by relaxing the prevailing wage law in Kentucky," said Comer. "I believe we're sending the wrong message by continually increasing taxes."

 

But Wayne defended the tax package in his presentation before the House.

 

"This bill helps prevent serious acts of neglect. It will also help with the education system, our justice system and hundreds of needed water and sewer projects we have throughout this Commonwealth," said Wayne.

 

Moberly has said the budget as written would not be possible without HB 262.

 

"We tried to construct a reasonable revenue measure," he told the House.

 

Several agencies would benefit from new revenue created by the enhanced budget proposal including state universities, which faced 12 percent budget cuts in the next biennium under Gov. Steve Beshear's proposed budget. Approximately $126 million in each year of the biennium would go to universities to restore their base operating budgets, said Moberly.

 

Also restored would be $303 million in university projects and $100 million in General Fund projects vetoed by the last administration, while $115 million would be provided for the Bucks for Brains research program--about $55 million more than was proposed in the governor's budget.

 

Public schools would also see some relief under HB 406, which would provide an additional $42 million in base per pupil "SEEK" funding for school operations and restore $33.1 million in funding for merit-based "KEES" scholarships, among other enhancements. The bill would also provide salary increases for teachers of 1 percent in 2008-2009 and three percent in 2009-2010, giving them the same two-year increase as state employees who will receive two-percent increases each year of the biennium.

 

A total of $130 million in additional funding is set aside under HB 406 for health and human services in Kentucky, an area that also faces severe cuts under the governor's budget proposal. That money will be used to reverse cuts proposed for mental health/mental retardation programs, community based services and health departments, among other needs.

 

County infrastructure needs were also addressed in the budget bill, which would authorize $50 million in tobacco settlement dollars to fund water and sewer projects in tobacco counties and $50 million in coal severance dollars for water and sewer projects in coal counties. It would also restore $1.9 million in base funding to local jails, which have struggled with rising operational costs in recent years.

 

Additionally, the bill would authorize the state to freeze the automatic 1.5 cent-per-gallon increase in the gasoline tax scheduled to take effect in July in order to bond $500 million in road projects over the next two years. Moberly said the bonds would allow the state to move forward this biennium with projects in the current six-year state road plan. 

 

Economic development bonds for the state's Base Realignment and Closure (BRAC) efforts at