Kentucky Chamber of Commerce
In the second week of the 2020 session, gaming and health issues took center stage for the legislature as new Gov. Andy Beshear laid out his priorities in his first State of the Commonwealth address.
SPORTS WAGERING MOVES FORWARD
A measure seeking to generate tax dollars by making it legal for Kentuckians to place bets on sporting events passed through the House Licensing and Occupations Committee meeting on Wednesday by a unanimous 19-0 vote.
House Bill 137, sponsored by Rep. Adam Koenig, would give people the ability to place bets in person at Kentucky racetracks with a tax of 10.25 percent and online with a 14.25 percent tax rate.
As for how much new revenue the bill would generate, John Farris of Commonwealth Economics consulting firm told the committee his company estimates the state could bring in around $22.5 million each year if the bill is passed in its current form. See more here.
GROUPS PUSH BILLS TO IMPROVE HEALTH
The Senate Health and Welfare Committee passed a bill that would raise the age to purchase tobacco products from 18 to 21 with a unanimous vote on Wednesday.
Senate Bill 56, sponsored by Sen. Ralph Alvarado, would put Kentucky in compliance with the new federal law which also raises the legal age to buy tobacco products to 21. Read more here.
Earlier in the week, the Smoke-Free Tomorrow coalition held a press conference to announce their support for three key initiatives to reduce tobacco use in Kentucky: tobacco 21, taxing e-cigarettes and vaping products, and increasing spending on education and prevention at the state level. Get the details on these issues here.
BESHEAR DETAILS PRIORITIES IN STATE OF THE COMMONWEALTH
New Governor Andy Beshear spoke about the need for bipartisanship and putting party politics aside throughout his first State of the Commonwealth address and said the future of the state depends on state leaders working together.
He also highlighted WHERE, an acronym he has used in recent speeches, to point to his administration’s priorities of improving wages, health care, education, retirement, and setting an example as he said he is committed to changing the tone in Frankfort because “there is more that unites us than divides us.” Among other priorities he said must be tackled, Beshear stated Kentucky must invest in infrastructure, workforce training, and education. Find a full breakdown of his speech on The Bottom Line.
KEY BILLS
COMPETITIVENESS
CALL CENTERS (HB 13) Requires notice for relocation of call centers from Kentucky to a foreign country.
TAX RATES (HB 28) Increases the sales tax to 8%, some property tax to 6%, and motor vehicle usage to 8%.
PENSION INCOME (HB 35 / HB 245) Increases the pension income exclusion by $10,000
EMPLOYER MANDATES (HB 39 / HB 251 / SB 13 / HB 121 / HB 123) Establishes benefit mandates for employers.
CRITICAL INFRASTRUCTURE (HB 44) Defines critical infrastructure and establishes the offense of criminal mischief in the first degree for damage to assets.
TAX CREDITS (HB 48) Establishes a tax credit for airport noise mitigation expense.
ENFORCEMENT OF IMMIGRATION LAWS (HB 51) Prohibits sanctuary cities as they pertain to the federal immigration act and establishes hiring, enrollment, and record-keeping requirements for postsecondary educational institutions.
PROFESSIONAL EMPLOYER ORGANIZATIONS (HB 53) Establishes registration and regulation of professional employer organizations.
COST-EFFECTIVE ADMINISTRATIVE REGULATIONS (HB 68) Establishes an advisory group and new filing requirements for regulations that constitute a major economic action.
PREVAILING WAGE (HB 77) Establishes a prevailing wage law for public works projects.
OPEN GOVERNMENT DATA PORTAL (HB 88) Establishes new requirements for public data sets.
PUBLIC PROCUREMENT (HB 114) Establishes preference for Kentucky and U.S.- produced iron, steel, and manufactured goods.
ECONOMIC DEVELOPMENT INCENTIVES (HB 115) Creates a weekly minimum wage and requires employees whose jobs were created by an economic development project to be paid that wage.
RAILROADS (HB 116) Requires two-person crews on trains.
WORKERS COMPENSATION (HB 239) Removes requirement that those evaluating occupational lung diseases be ‘B’ readers that are board-certified pulmonary specialists.
SPORTS WAGERING (HB 137) Authorizes sports wagering and establishes oversight.
ACTUARIAL ANALYSIS ON RETIREMENT BILLS (HB 194) Creates additional requirements for actuarial analysis of pensions bills and requires costs to be projected over a 30 year period instead of 20 years.
TECHNICAL CORRECTIONS TO VARIOUS TAX STATUTES (HB 261) Makes several technical changes to tax laws.
SCHOOL RESTROOMS (HB 132) Dictates that schools shall require students to use restrooms and locker rooms according to gender at birth.
IMMIGRATION (SB 1) Legislation to prohibit the establishment of sanctuary cities as they pertain to the federal immigration law.
KENTUCKY TRANSPORTATIONS BOARD (SB 4) Creates a board to establish the state road plan and to hire the secretary of the transportation cabinet who would be confirmed by the Senate. The bill would also establish criteria for prioritizing road projects.
SPORTS WAGERING (SB 24) Authorizes sports wagering in Kentucky.
CAPS ON DAMAGES AMENDMENT (SB 51) Constitutional amendment to allow the General Assembly to establish non-economic caps on damages.
KENTUCKY RETIREMENT SYSTEM (SB 88) Creates the ability for state universities or community colleges that leave the retirement system to allow certain employees to remain in the system.
EDUCATION AND WORKFORCE
PRINCIPAL HIRING (SB 7) Alter the principal hiring process allowing a principal to be selected by the superintendent after consultation with school council.
FAFSA COMPLETION (HB 87) Require completion of the Free Application for Federal Student Aid form as a high school graduation requirement.
CORPORAL PUNISHMENT (HB 22) Prohibits a person employed by a school district from using corporal physical discipline.
CHARTER SCHOOLS (HB 25) Eliminates Kentucky’s public charter schools law.
ART EDUCATION (HB 37) Require schools to offer all students instruction in the visual and performing arts.
KINDERGARTEN (HB 41) Removes language in statute that allows for half-day kindergarten in Kentucky.
COMPUTER SCIENCE (HB 263) Establishes goal of increasing participation in computer science courses by underrepresented groups.
VIRTUAL PROGRAM (SB 63) Establishes virtual high school completion programs in Kentucky.
ENERGY AND ENVIRONMENT
UTILITY RATES (HB 126) Allows the Public Service Commission to consider affordability when setting utility rates, allows the commission to order periodic rate increases to avoid a single, significant increase.
PROCUREMENT (HB 247) Allows noncompetitive negotiation by local agencies for the purchase or sale of wholesale electric power or gas.
GASOLINE REQUIREMENTS ENVIRONMENTAL STUDY (HJR8) Requires a study by the state and Louisville Air Pollution Control district on the benefits, costs, and alternatives to reformulated gas requirements.
SOLID WASTE (SB 16) Requires local approval for residual landfills including private facilities that dispose of waste onsite.
SOLID WASTE (SB 22) Expands the definition of waste management facilities and allows fiscal courts to license and assess fees for facilities and landfills.
MINING PERMITS (SB 27) Establishes interagency communication regarding performance bonding and restrictions on coal mining permitting when applicants are not compliant with bonding requirements.
MOTOR FUEL (SB 94) Removes the 10 percent cap on ethanol in gasoline.
PLASTIC WASTE (SB 68) Single-use plastic and Styrofoam ban.
HEALTH AND WELLNESS
ASSISTED LIVING COMMUNITY OPERATORS (SB 20) Prohibits certification or certification renewal of an assisted-living community if it is owned, managed, or operated by any person convicted of certain crimes or listed on an abuse list.
MEDICAID PAYMENTS (SB 29) Requires managed care organizations (MCO’s) to report payment schedules utilized to reimburse health care providers to the Medicaid Oversight and Advisory Committee.
MANAGED CARE CONTRACTS (SB 30) Limits the number of MCO contracts to operate the Medicaid program to three.
HEALTH CARE SERVICES (SB 33) requires health insurance policies to apply the fair market value of covered health care services at a no-cost or reduced-cost health facility to any deductible or out-of-pocket maximum owed by the covered person under the policy.
MEDICAL ASSISTANCE COPAYMENTS (SB 34) prohibits MCO’s contracted to provide services from instituting copayments to be paid by medical assistance recipients.
COST SHARING UNDER HEALTH-BENEFIT PLAN (SB 39) Requires payments made by or on behalf of an insured for health care services to apply toward any cost-sharing requirements under a health benefit plan.
TOBACCO PURCHASING AGE (SB 56) Broadens the definition of e-cigarettes so it would cover heat-not-burn and other such products, and removes all penalties for anyone under age 21 for purchase, use and possession of tobacco products.
HEALTH CARE SERVICES CONTRACTS (SB 70) Prohibits certain practices by insurers in the negotiation and offer of contracts for the provision of health care services.
PRESCRIPTION DRUG TRANSPARENCY (SJR 5) Directs the Cabinet for Health and Family Services to create a task force to study prescription drug transparency and affordability.
CURING DISEASES INTERSTATE COMPACT (HB 5) Enters Kentucky into the Solemn Covenant of the States to Award Prizes for Curing Diseases Interstate Compact with all other jurisdictions that legally join in the compact.
VOLUNTARY NON-OPIOID DIRECTIVES (HB 11) Establishes a voluntary non-opioid directive form to inform practitioners that an opioid drug shall not be prescribed, ordered, or administered to a patient who has filed the form with the Cabinet for Health and Family Services.
PRESCRIPTION INSULIN (HB 12) Caps the cost sharing requirements for prescription insulin at $100 per 30-day supply.
TOBACCO TAX (HB 32) Imposes an excise tax on vapor products and imposes a floor stock tax.
VAPOR PRODUCTS (HB 69) Defines “vapor product enhanced cartridge” and requires a retailer or manufacturer of a vapor product enhanced cartridge to register and pay a $700 annual fee.
CONTROLLED SUBSTANCES (HB 71) Requires a practitioner to offer a prescription for naloxone hydrochloride or another drug approved by the FDA for the complete or partial reversal of opioid depression when prescribing an opioid drug.
COMMUNITY HEALTHCARE FOUNDATIONS (HB 75) Provides definitions concerning nonprofit healthcare conversion transactions and requires the Attorney General to notify a nonprofit healthcare entity regarding the status of a decision.
HEALTHCARE ALL-PAYER CLAIMS DATABASE (HB 82) Requires the commissioner of the Department of Insurance to establish an advisory committee to make recommendations regarding the creation of a Kentucky all-payer claims database.
ELIMINATION OF CERTIFICATE OF NEED (HB 83) Deletes requirements for certificate of need.
MEDICAID COVERAGE OF SERVICES (HB 117) Requires that dental and optometric services provided to eligible recipients ages 21 and over be the same as those provided to eligible children ages 21 and under.
MEDICAL MARIJUANA (HB 136) Requires the Department for Alcoholic Beverage and Cannabis Control to implement and regulate the medicinal marijuana program in Kentucky.
PRESCRIPTION PILL COUNTS (HB 202) Requires pain management facilities to require patients prescribed controlled substances to report for pill counts every 3 months.
STAFFING REQUIREMENTS FOR LONG-TERM CARE FACILITIES (HB 215) Requires staff-to-resident ratios in long-term care facilities as a condition of licensure or re-licensure.
PRESCRIPTION DRUGS (HB 248) Prohibits manufacturers and wholesalers of off-patent or generic prescription drugs from engaging in unrestricted price increases.
