Legislative Update - Week 8, 2023

First and foremost, as a former U.S. Army member, I offer my sincere condolences to the families, friends, and brothers and sisters in arms of the nine Ft. Campbell service members who perished during a military training exercise this week. These brave service members and all impacted by this tragedy are in my prayers. That includes all the Kentucky military personnel who share this incredible loss's grief.

First, after years of the piecemeal approach to repairing a historically poor taxing structure, the Bourbon Barrel Task Force addressed the distilled spirits ad valorem tax. During the 2023 Interim, we heard from stakeholders on both sides of the issue. The resulting legislation, House Bill 5, identified a compromise to phasing out the bourbon barrel tax while also addressing some of the concerns of local governments and school districts.

Beginning in 2026, the bourbon barrel tax will begin to phase out and will reach zero in 2043. Kentucky distillers will pay any decrease in funding realized by school districts and fire departments caused by a decrease in distilled spirits tax assessments.

House Bill 5 also includes incentives for the bourbon industry to continue investing in Kentucky, particularly in regions of the state needing economic development and job creation. It is not a perfect compromise, but I do believe it is a good one.

Lawmakers returned to Frankfort on Wednesday following the 10-day veto period, in which Governor Andy Beshear was allowed time to consider all legislation that had reached his desk. The Governor vetoed 15 bills in total but, likely given it is an election year, allowed several to go into law without his support (signature).

Several bills filed with the Kentucky Secretary of State's office were measures the Governor had previously expressed criticism of publicly, or his past actions indicate his philosophical disapproval of, such as:

·         Senate Bill 48 adopts the 2022 Cabinet for Health and Family Services Organizational Structure, Operations and Administration Task Force recommendations, which is a comprehensive measure correcting some of the current mismanagement within the state's largest executive branch.

 ·         House Bill 264 is an economic development measure designed to attract new and maintain existing innovative companies. The bill removes burdens and red tape from companies. It allows them to develop innovative products and processes in Kentucky and test those products for a year from overly restrictive laws and regulations. The companies will be supervised during this developmental period by the Kentucky Office of Regulatory Relief created within the Office of the Attorney General.

The Governor exercised his constitutional authority to veto the following bills, which were added to the list of over 70 bills and resolutions he has vetoed but have been soundly overridden by the state House and Senate chambers since his inauguration.

Senate Bill 7 ensures public sector dollars are not being politically weaponized against many of the taxpayers it exists to serve by engaging in funding political action committees through automatic deductions taken directly from public employees' paychecks.

Senate Bill 107—ironically and contrary to the Governor's rationale in his veto message saying the bill "politicizes the process" of hiring the commissioner of education—mitigates the Governor's own inappropriate political influence.

Only hours after Governor Beshear was inaugurated on December 10, 2019, he dramatically politicized the Kentucky Department of Education (KDE) by completely dissolving the Kentucky Board of Education, appointing Democrats to all eleven voting-member positions, and thereby immediately paving the way for removing the state's education chief with no just cause, then hiring current KDE Commissioner Jason Glass.

Rather than creating "an unnecessary bureaucratic obstacle," as asserted by Governor Beshear, Senate Bill 107 creates a necessary check and balance for what has sadly become nothing more than a political bureaucrat.

Senate Bill 126 was referred to in the Governor's veto message as an 'unconstitutional power grab.' The bill is a clean-up to 2021's House Bill 3 and sets the automated process and procedure in ensuring Kentucky residents have logistical recourse in redress of their grievances against state law, executive order, or administrative regulation by allowing for a change of venue to a court closer to where they live.

The Governor's veto of Senate Bill 150 came as no surprise as he put his party's politics over the people of Kentucky. It serves to strike a balance between the desires of families with children who are following a conventional path of human sexuality while making reasonable accommodations for those who have a different path. It allows medical practitioners to make decisions for children with anomalous physical conditions while also ensuring that those struggling with gender identity can access counseling services.

Under the bill, sex education is allowed once children reach sixth grade but require parental notification. Also, sexual and mental health services can be provided in schools, but parents have to be informed about them and be informed if their children use them. However, that information can be withheld if the school has a reason to think that the information would result in the child's abuse or neglect. Further, students can request how they would like to be addressed, but it is up to the adults to address them.

SB 150 is not a license to demean, harass, or impugn another person's dignity. On either side of the issue, it does not give people the right to harm another person or their property. Elected leaders are called upon to react to societal problems and strike a balance for all residents. That involves protecting the rights of the minority as well as the majority. Senate Bill 150 strikes that balance.

Additional bill vetoes overridden include House Bills 4, 329, 395, 519, 568 and House Joint Resolution 60.

Several additional House and Senate bills were delivered to the Governor in the final two days of session. Unlike the bills above, the following will not qualify for a veto override. If vetoed, they will not become state law until at least after the 2024 Legislative Session.

• Senate Bill 129 was amended to include provisions of another bill relating to autonomous vehicles.

• Senate Bill 247 would create conditions for the continuity of education services and instruction for low-income, transient students, allowing students in grades 1, 2, or 3—on free or reduced lunch—to remain in the same school when changing residence within the same school district. The bill would require the school district to provide transportation to the school from the student's new residence but authorize the superintendent to deny the transportation request if deemed impracticable.

• House Bill 64 will extend the period of time that a peace officer, who was employed as a peace officer since December 1, 1998, may be separated from service before losing his or her certification status from 100 days to 365 days.

• House Bill 83 will require judgment lien notices to contain the date of final judgment and will establish expiration dates for judgment liens. Additionally, HB 83 will allow a judgment lien expiration to be postponed under certain circumstances.

• House Bill 207 will allow law enforcement agencies to create their own wellness programs. Additionally, HB 207 establishes that all proceedings, opinions, and records of a wellness program are privileged and not subject to subpoena, including records confidentiality maintained in accordance with a wellness program to the list of records not subject to an open records request.

• House Bill 288 will prohibit a public school district or public charter school from entering a non-disclosure agreement relating to misconduct involving a minor or student. It will also require school districts to conduct reference checks of new applicants. Applicants must disclose if they are subject to allegations or investigations in the previous 12 months and consent to a reference check. Additionally, the bill will require all individuals employed by the school district to receive a state criminal background check every five years.

• House Bill 338 would allow prospective jurors to be dismissed from jury duty upon their request if the individual is 70 years or older.

• House Bill 373 would remove the court security officers from the list of officers required to be certified by the Kentucky Law Enforcement Council and allow the council to certify local alcoholic beverage control investigators appointed before April 2019.

• House Bill 553, which the Senate Appropriations and Revenue Committee approved on the final day of session, addresses additional current-year SEEK funds for about 43 growth districts.

• House Bill 401 reorganization for the State Police that created the Division of Records management shall have a director appointed by the State Police Commissioner. It must report to the executive director of the Office of Technical Services.

• House Bill 551 legalizes sports betting in the state, with certain exceptions, and provides funds for our state's public pension systems.

The 2023 session was a 30-day, non-budget session. Some bills were heard in legislative committees but ultimately did not make it over the finish line. Although some measures were not enacted, it is not to say they nor their advocate's efforts are in vain. Beginning in June, we will enter the 2023 Interim period, where more in-depth policy discussions will continue in anticipation of next year's 60-day legislative session. 

I encourage you to stay engaged in the legislative process. You can find a listing of all enacted bills and those pending with the Governor by visiting legislature.ky.gov. You can find archived legislative coverage at KET.org/legislature/archives.