4th Annual Safety Day Conference
Posted: Monday, January 30, 2012Blog: Home Page Section 3
2012 Legislative Update January 27, 2012
Posted: Friday, January 27, 2012Blog: Legislative Update
This week saw the end of the 17th legislative day, with 122 Senate bills and 339 House bills introduced since January 3rd.
This was a rather uneventful week in the General Assembly. There are still lots of hard feelings in both chambers in regards to the redistricting plan, HB 1, which passed on January 19th. House Minority Floor Leader Jeff Hoover (R-Jamestown) filed suit in Franklin Circuit Court claiming HB 1 is unconstitutional. Judge Phillip Shepherd will hear motions on Monday, January 30th at 10:30am in Frankfort.
Many committees in both chambers did not meet this week. One meeting that did not take place was the House Banking and Insurance Committee. This committee was to once again take up HB 202, an act relating to chiropractors. AGC opposes the bill in its current form because it would allow chiropractors to set their reimbursement fee schedule to the state Worker’s Compensation rate. This would be an added cost to every health care plan.
HB 2, the redistricting bill for the U.S. House of Representatives, is still “on hold.” The conference committee establish by both chambers has not met often or long this past week. They did agree to extend the filing deadline for these elected positions to Tuesday, February 7th.
A bill introduced this past week is one AGC has seen several times in recent years. HB 5, relating to hiring unauthorized aliens, is the House bill on immigration and E-Verify matters. Rep. Bob Damron (D-Nicholasville) is once again sponsoring this legislation. In short, any business having a contract with the state, any local government, school board, university and any publicly created board or entity of government must verify all of their employees have been approved by the Department of Homeland Security to be in this country legally. In regards to the construction industry, this applies to the general contractor, the subcontractor and sub-subcontractors, etc. Anyone found guilty of violating the provisions of this proposal shall be banned from contracting with a public agency for one (1) year and for a period of five (5) years for a second and any subsequent offense. AGC will continue to work with Rep. Damron and others to make this legislation as construction friendly as possible.
On Thursday, January 26th, eighty members and guests of the Small Business Caucus, an accumulation of business entities, met for breakfast at the Governor’s Mansion. Senator John Schickel (R - Union) and Sen. David Givens (R - Greensburg) were the featured speakers. Sen. Schickel is also the sponsor of SB 77, a business-friendly employee misclassification bill, for which AGC is advocating passage. AGC members attending were:
Steve Summers, Gray Construction and AGC President
Dan Adams, Thermal Equipment Sales
Matt Gumm, Alliance Corporation
Tim Parsons, Parsons Electric, Inc.
Judy Taylor, AGC contract lobbyist
Ron Wolf, AGC Director of External Relations
Several different Budget Review subcommittees of the House did meet this week, with many more meetings scheduled for the coming weeks. The budget is certain to receive more attention from both chambers for the remainder of the session. This is the long, sixty-day session. The General Assembly must complete their work by midnight on April 15th.
AGC is at the Capitol every day to watch for legislation impacting the commercial construction industry. If you have any questions concerning these activities, please contact Ron Wolf at .(JavaScript must be enabled to view this email address).
Bills of interest to AGC:
SB 42, SB 98, HB 251– Pain Management Clinics
SB 77 – Employee Misclassification
SB 81 – Local School District Funding
HB 58, HB 5, HB 118 – Unauthorized Aliens
HB 60 – Worker’s Compensation Issues
HB 202 – Health Insurance Mandates
HB 245, HB 246, HB 255 – Alternative Fuels and Energy Efficiency
HB 263 – HVAC Licensing
HB 270 – Worker’s Compensation
HB 277 – Local Taxation of Businesses
Legislative Update January 20, 2012
Posted: Friday, January 20, 2012Blog: Legislative Update
This week saw the end of the 12th legislative day, with over 100 Senate bills and 300 House bills introduced since January 3rd.
As predicted here last week, redistricting garnered much attention from both chambers of the Kentucky General Assembly again this week. As a refresher, every ten years, each Congressional district as well as all state Senate and state House districts must be reviewed and reapportioned due to population changes. As a generality for the 2010 census, the far eastern and far western portions of Kentucky saw population decreases, while the “golden triangle” and central Kentucky saw population increases.
Last week, the House passed HB 1, the state House redistricting plan, which was highly criticized by the House Republicans because of combining numerous Republican incumbents together in new House boundaries, thereby reducing their numbers in that chamber. Not to be outdone, this week the state Senate amended HB 1 by combining some Senate Democrats into the same district plus moving District 13 from Fayette County to a new area in northeast Kentucky, virtually eliminating Senator Kathy Stein (D-Lexington) from seeking re-election next year. HB 1 has now passed both chambers and is on its way to the governor for his signature.
HB 2 is the redistricting bill for the U.S. House of Representatives. The Senate did not agree with the House plan, so a conference committee has been established to resolve these differences. There is some urgency to come to agreement because the filing deadline to run for all offices this year is Tuesday, January 31st at 4:00pm. This conference committee will probably meet during the weekend in an attempt to reach agreement on HB 2.
This past Tuesday evening, Governor Beshear presented his budget to a joint session of the General Assembly. Generally speaking, most Cabinets saw about an 8.4% decrease in next year’s budget proposal. The House has now introduced all of the budget bills and has begun their work on these documents. This could be the most austere budget in recent history.
HB 202, an act relating to chiropractors, was discussed in the House Banking and Insurance Committee on Wednesday. This bill would allow chiropractors to set their reimbursement fee schedule to the state Worker’s Compensation rate, which is not done anywhere else in the country. After about an hour of testimony hearing from both sides of the issue, the bill’s sponsor, Rep, Kevin Sinnette (D-Ashland), asked to delay action on the bill. AGC opposes the bill in its current form.
Here are some bills that we are monitoring on a daily basis:
SB 42, SB 98, HB 251– pain management clinics
SB 77 – employee misclassification
SB 81 – local school district funding adjustments
HB 58, HB 118 – unauthorized aliens
HB 60 – worker’s compensation issues
HB 202 – health insurance mandates
HB 245, HB 246, HB 255 – alternative fuels and energy efficiency
HB 263 – HVAC licensing
HB 270 – worker’s compensation
HB 277 – local taxation of businesses
Next week, it is hoped HB 2 can be passed by both chambers so all of the redistricting work will be completed and the members can address other issues. The budget is sure to take center stage in very short order. AGC is at the Capitol every day to watch for legislation impacting the commercial construction industry. If you have any questions concerning activities at the Capitol, please contact Ron Wolf, .(JavaScript must be enabled to view this email address).
2012 Legislative Update January 13 2011
Posted: Friday, January 13, 2012Blog: Legislative Update
As predicted here last week, redistricting garnered much attention from both chambers of the Kentucky General Assembly this week, but more so in the House. As a refresher, every ten years, every Congressional district as well has state Senate and state House districts must be reviewed and reapportioned due to population changes. As a generality the far eastern and far western portions of Kentucky saw population decreases, while the “golden triangle” saw population increases.
On Tuesday, the House passed HB 2, which is their version of redistricting for the six U.S. House of Representative seats in Kentucky. This version has some 400,000 Kentuckians having a new congressman next year. The vote was 54 – 42, with only two Democrats opposing the measure. This bill now moves to the Senate where changes will undoubtedly be made.
On Wednesday, the House State Government Committee passed their version of redistricting boundaries for state House seats. This version finds the following incumbents placed within the same boundaries:
Rep. Ben Waide (R-10) and Rep. Myron Dossett (R-9)
Rep. C.B. Embry (R-17), Rep. Jim DeCesare (R-21) and Rep. Mike Meredith (R-19)
Rep. Kim King (R-55) and Rep. Mike Harmon (R-54)
Rep. Jeff Hoover (R-83) and District 53, currently vacant by the resignation of new Commissioner of Agriculture James Comer (a special election to fill this seat will be on February 7th)
Rep. Rocky Adkins (D-99) and Rep. Jill York (R-96)
The House Republicans were very upset by this move. They attempted to offer their own
plan for redistricting as a floor amendment but were defeated 36 – 58. The final vote on HB 2 was 63 – 34. HB 1 and HB 2 are now in the Senate, where action could take place as early as next week.
AGC staff spent much time talking to numerous senators about SB 77 , an employee misclassification bill which is contractor and business friendly. Employers who misclassify their employees as independent contractors avoid taxes that are paid by legitimate businesses, depriving the Commonwealth of revenue and unfairly enriching law breakers. Businesses who play by the rules are at a competitive disadvantage in pricing and bidding because of the artificially low overhead of the offenders. SB 77 establishes six criteria clarifying the differences between employees and independent contractors. AGC strongly supports SB 77.
Another bill receiving a lot of attention from AGC staff is HB 202. This bill would allow chiropractors to tie their reimbursement fee schedule to the state Worker’s Compensation rate, which is anywhere from 20-30% higher than many current health plans. In addition, if chiropractors are successful with this effort, then our concern is other health care providers (physical therapists, doctors, etc.) will want their reimbursement rates to have the same fee schedules, which would be a tremendous health care increase. AGC will continue to work with state representatives to offer compromise solutions.
On Thursday, House Majority Floor Leader Rocky Adkins introduced HB 255, a bill promoting energy efficiency. The bill will create the Kentucky Green School Authority which will promote energy efficiency in school buildings throughout the state, in both new facilities as well as retrofitting existing structures. LEED certifications will be goals for these facilities. AGC will work closely with members of the General Assembly to seek passage of this bill.
Here are some bills that are we monitoring on a daily basis:
SB 42, SB 98, HB 251– pain management clinics
SB 77 – employee misclassification
SB 81 – local school district funding adjustments
HB 58, HB 118 – unauthorized aliens
HB 60 – worker’s compensation issues
HB 202 – health insurance mandates
HB 255 – energy efficiency
The Governor will deliver his budget address on Tuesday, January 17th at 7:00pm. It will be carried live on KET. The economic forecast is extremely modest for the next biennium and with costs for Medicaid, state pensions and state employee healthcare ever increasing, that modest growth is already consumed. The Governor previously indicated the only way to balance the next two-year budget would be by reductions in spending. AGC will closely follow the budget from start to finish.
Next week, the legislature will observe Monday as Martin Luther King, Jr. holiday. Legislators will return to work in Frankfort Tuesday through Friday.
2012 Legislative Session 01/06/2012
Posted: Friday, January 06, 2012Blog: Legislative Update
The 2012 session of the Kentucky General Assembly began this past Tuesday, January 3rd. There are a number of items that will demand the attention of all 138 legislators: enactment of a 2-year budget; redistricting; expanded gaming; prescription drug abuse; raising the dropout age; tax reform; assessment method for unemployment insurance interest payments; employee misclassification; immigration/E-verify; workers compensation special fund; and centralized collection of local payroll/business taxes to name just a few. In addition, every member of the House and 19 members of the Senate will have elections this year. Already three members of the Senate and four House members have decided not to seek re-election. Redistricting could increase those numbers.
Here are some bills that are already on our radar:
BR 58, HB 118 – unauthorized aliens
SB 77 – employee misclassification
HB 60 – worker’s compensation issues
BR 188 – pain management clinics
SB 81 – local school district funding adjustments
The Governor delivered his State of the Commonwealth address on Wednesday, January 4th. He began by stating this biennial budget will not have additional revenues…balancing the budget will be done on reducing spending. His budget address will be given on Tuesday, January 17th.
Legislative work will begin in earnest this next week. Many legislative committees will meet to begin discussing legislation that has been introduced. We are expecting both the House and Senate to work on redistricting legislation for their respective chambers. This will be a very political process, in which the losers will be the minority party
AGC is a member of the Small Business Caucus, a consortium of businesses throughout the Commonwealth who work together on legislation affecting small businesses. If you are on FaceBook, be sure to become a “friend” of this site to stay current on these types of issues.
It is our intention to get these updates to you on Friday afternoons. If you have any questions about AGC’s position on issues, please contact Ron Wolf, Director of External Relations, at .(JavaScript must be enabled to view this email address).
2012 Legislative Session Begins January 03, 2012
Posted: Tuesday, January 03, 2012Blog: Legislative Update
The 2012 session of the Kentucky General Assembly began this past Tuesday, January 3rd. There are a number of items that will demand the attention of all 138 legislators: enactment of a 2-year budget; redistricting; expanded gaming; prescription drug abuse; raising the dropout age; tax reform; assessment method for unemployment insurance interest payments; employee misclassification; immigration/E-verify; workers compensation special fund; and centralized collection of local payroll/business taxes to name just a few. In addition, every member of the House and 19 members of the Senate will have elections this year. Already three members of the Senate and four House members have decided not to seek re-election. Redistricting could increase those numbers.
The Governor is scheduled to deliver his State of the Commonwealth address on Wednesday, January 4th. His budget address will be given on Wednesday, January 18th.
If you have any questions about AGC’s position on issues, please contact Ron Wolf, Director of External Relations, at .(JavaScript must be enabled to view this email address).
New Member: October/ November/ December 2011
Posted: Tuesday, November 22, 2011Blog: News
October - 2011
Stoll, Keenon, Odgen, PLLC
Spartan Contracting, LLC
Sunbelt Rentals
November - 2011
Greer Excavating Services
Midwest Metals Corporation
G & R Reclamation, Inc.
Yale Kentuckiana, Inc.
Dismore & Shohl, LLP
December - 2011
Bohnert Equipment Co., Inc.
2011 Kentucky Construction Career Days
Posted: Tuesday, September 20, 2011Blog: Competitive Edge
2011 Kentucky Construction Career Days:
The Kentucky Construction Career Choice Council is hosting a construction career fair to encourage
students into a construction career. Our industry faces a shortage of skilled workers. At this event
construction companies and representatives from across the state will have hands- on tools, trade
and heavy equipment demonstration on site. This will be a fun filled day for students to meet industry
representatives and see all the career opportunities to the construction industry.
Shelby County Fairgrounds- Shelbyville, KY
September 28 & 29, 2011
9:00 am - 1:00 pm
New Members July / August/ September 2011
Posted: Friday, July 01, 2011Blog: News
| July |
| Universal Contracting Corporation |
| West Kentucky Insulation |
| Advantage Resource, Inc. |
| Morgan Hayden, LLC |
| Equipment Service Center, LLC |
| Morgan Keegan & Company, Inc. |
| August |
| Glen Roark Construction, Inc. |
| Novus, LLC |
| September |
| Consulting Services Incorporated of Kentucky |
| JNSCRP, Inc. |
| Louisville Tree Service, Inc. |
| Chavez Construction, Inc. |
| Greenebaum, Doll, & McDonald, PLLC |
| TP Mechanical Contractors |
New Members:April/May/June 2011
Posted: Saturday, April 30, 2011Blog: News
April 2011
High Power Technical Services, Inc. |
R & J Horizontal Boring, LLC |
Sullivan & Cozart, Inc. |
Sterett Crane & Rigging |
May 2011
Capitol Tunneling, Inc.Oswald Companies |
June 2011
| Elco Steel Co., Inc. |
| Nomad Hills, Inc |
Project Document Manager
Posted: Monday, April 04, 2011Blog: Competitive Edge
Join McGraw-Hill Construction and AGC for our
FREE Lunch & Learn Demonstration
When: Friday, April 8 from 11:30 am – 1:00 pm
Where: AGC/McGraw-Hill
950 Contract Street, Suite 100
Lexington Kentucky 40505-3664
Agenda: 11:30 – Meet n’ Greet
11:45 – AGC Welcome
12:00 – PDM Demo
12:45 – Q&A
Boxed Lunches will be Provided
Please RSVP No Later than Wednesday April 6th
to Jodie Wills 812-948-0402 or .(JavaScript must be enabled to view this email address)
Learn how the McGraw-Hill Construction Network® Project Document Manager (PDM) connects all your project information and digital needs...
• Dodge Project Data
• Prequalify Subcontractors
• Coordinate the Bid Process
• Control all Versions of your Documents
• Close-Out Projects Faster
The Associated General Contractors of Kentucky is an organization of
qualified commercial construction contractors dedicated to skill, integrity, and responsibility. Operating through partnerships, the association provides a full range
of services promoting higher standards of professionalism
by enhancing the performance of our members.
New Members: January/February/March 2011
Posted: Thursday, March 31, 2011Blog: News
January 2011
Kebco, Inc.
Louisville Sealcoat Ventures, LLC.
GC Interiors, LLC.
Kintec, LLC.
Advanced Industrial Electronics, Inc.
February 2011
Precision Products
Smith Management Group
Cheyene Construction, Inc.
CTW Contracting, LLC
HDDS, Inc.
White Horse, LLC
March 2011
Diverse Erection, Inc.
G.M. Pipeline
Modern Property Management
Louisville Safety Focus, April 1, 2011
Posted: Thursday, March 17, 2011Blog: Competitive Edge
LOUISVILLE SAFETY FOCUS
Friday, April 1st @ 12:00-noon
GEM Engineering, 1762 Watterson Trail
Workers Compensation Fraud
Fraud comes in many different forms. One of the most popular types of fraud is the worker's compensation fraud that costs Americans $5 B a year. Employees and employers can commit worker's compensation fraud when they misrepresent facts to gain personal benefits that they are not legally entitled.
How Can You Prevent Worker's Compensation Fraud?
Join us for this free informative and educational Safety Focus Meeting. Our presenters will be:
The Robison Group
Pat Burke, Director of Investigations
Mr. Burke joined The Robison Group in 2010. He has investigated insurance fraud for 19 years. He was a police officer in a Chicago suburb for 6 years. He managed a regional investigation firm that specialized in workers compensation investigations for 5 years. During his career, he has testified more than fifty times in insurance related cases.
He received his Bachelor’s Degree from Western Illinois University with a major in Law Enforcement Administration. He holds the designations of Certified Fraud Examiner, Certified Insurance Fraud Investigator, Certified Vehicle Theft Investigator and Fraud Claims Law Associate. He has conducted training on insurance fraud issues at conferences including The National Insurance Crime Bureau Advanced Special Investigations Academy, The International Association of Special Investigation Units Seminar, The Property Loss Research Bureau Claims Conference and The Association of Certified Fraud Examiners Conference. He continues to present training classes to law enforcement, claims associations and claims staff on the topic of insurance fraud investigations.
Jim Goss, East Regional Manager
Mr. Goss is Manager of surveillance and field investigation cases for the Eastern Region. He joined The Robison Group as a Senior Field Investigator in June of 2007. He is licensed to perform investigations in Alabama, Indiana, Illinois, Mississippi, Missouri and Ohio. He has over 17 years experience in the investigative field including 5 years of investigative management, recorded statements, auto accidents, internal interviews and interrogations, FMLA abuse, abuse of time and fraud, surveillance and liability cases. He served 4 years as Correctional Sergeant with the Indiana Department of Corrections. Mr. Goss studied Criminal Law at Indiana State University and has completed the Wicklander-Zulawski & Associates advanced Interview and Interrogations Techniques certification. He was honorably discharged from the United States Army after serving 5 years with the 3rd Ranger Battalion 75th Ranger Regiment.
Please RSVP to Kathy Davis at (502) 671-0073 by March 30th as we will have limited space and expect a large turnout. Lunch will be provided.
2011 Legislative Session: Special Edition 03/14/11
Posted: Monday, March 14, 2011Blog: Legislative Update
2011 Legislative Session: Special Edition
The KY Senate abruptly ended the 2011 regular session of the Kentucky General Assembly on Wednesday this week when they "gaveled in" the 30th and final day of the session. In an extraordinary maneuver following an effort to reach agreement on balancing the Medicaid budget which fell short, the House adjourned late Tuesday night until March 21st while the Senate chose to convene on Wednesday. The Constitution limits odd year sessions to 30 "legislative" days irrespective of whether both chambers meet concurrently or not.
Following this action by the Senate the Governor announced that he would call the legislator's back to Frankfort for a "special session" on Monday March 14th.
A top legislative priority of the AGC of Kentucky Government Affairs Committee SB-139 (Stivers R-Manchester) the "liens" bill has been delivered to the governor for his signature. The bill would expand the class of persons who may post a bond to discharge a lien. The bill which previously passed the Senate 38-0 and last week passed the House 99-0 .
Our other AGC of KY supported bill HB-407 (Palumbo R-Lexington) which passed the House overwhelmingly has been assigned to the Senate A & R Committee despite having no funding or budgetary implications in the legislation and will likely die in committee when the General Assembly adjourns. This legislation was initially introduced during the 2010 session in a joint effort of the American Institute of Architects and the Associated General Contractors of Kentucky.
Other bills of particular interest to the construction industry trades including plumbing (HB-386), HVAC (HB-430) and electricians (HB-487) were introduced this session but will likely not pass. For more detail see the bill track list below this article. Two other bills which we paid particular attention to this session HB-3 and SB-6, both dealing with the issue of hiring illegal aliens or undocumented workers appear unlikely to pass as well.
Here is a quick rundown of other bills which passed during the session.
Justice: Control corrections costs, improve treatment options for drug offenders (HB 463)
Optometry: Allow optometrists to perform certain procedures now limited to ophthalmologists (SB 110)
Hunting, fishing: Amend constitution to protect right to hunt and fish (HB 1)
Adult abuse: Prevent people convicted of abusing adults from inheriting from their victims or managing their affairs (HB 52)
Bath salts: Ban synthetic drugs now marketed as "bath salts" (HB 121)
Guardianship: Streamline guardianship standards (HB 164)
Fireworks: Legalize fireworks that explode or shoot into the air (HB 333)
Textbooks: Establish procedures for correcting textbook errors (HB 464)
Sewers: Allow creation of regional sewer authority in Louisville area (HB 26)
Permitting: Streamline business-permitting process (SB 8)
School principals: Give superintendents more say in hiring principals (SB 12)
2011 Legislative Session: Nearly Over 03/07/11
Posted: Monday, March 07, 2011Blog: Legislative Update
2011 Legislative Session: Nearly Over
Some bills strut and fret their hour on the stage, full of sound and fury, but in the end signify little. Other come quietly as was the case with one of our two legislative priorities. A top legislative priority of the AGC of Kentucky Government Affairs Committee SB-139 (Stivers R-Manchester) the "liens" bill would expand the class of persons who may post a bond to discharge a lien. The bill which previously passed the Senate 38-0 and last week passed the House 99-0 has been delivered to the Governor for his signature.
Our other AGC of KY supported bill HB-407 (Palumbo R-Lexington) which passed the House overwhelmingly has been assigned to the Senate A & R Committee despite having no funding or budgetary implications in the legislation and will likely die in committee when the General Assembly adjourns. This legislation was initially introduced during the 2010 session in a joint effort of the American Institute of Architects and the Associated General Contractors of Kentucky.
Other bills of particular interest to the construction industry trades including plumbing (HB-386), HVAC (HB-430) and electricians (HB-487) were introduced this session but will likely not pass. For more detail see the bill track list below this article. Two other bills which we paid particular attention to this session HB-3 and SB-6, both dealing with the issue of hiring illegal aliens or undocumented workers appear unlikely to pass as well.
Also last week, another strikingly bipartisan bill that rethinks a fundamental but ever-more-costly function of state government--Corrections passed as well. House Bill 463 takes a long look at the drift toward harsh and punitive sentencing in the so-called War on Drugs, and admits the unproductive drag such sentencing of non-violent offenders has become on the state budget.
Kentucky has about 20,500 prison inmates and spends about $440 million a year on Corrections -- closing in fast on a billion dollars a biennium. As recently as 2008, the Pew Research Center reported Kentucky had the fastest growing prison population in the nation. Incarceration costs nearly $22,000 per inmate, per year -- money many have come to see as pure waste if all it accomplishes is simple punishment of low-level, non-violent drug offenders.
The reform bill is designed to keep such offenders out of prisons and in treatment, under community supervision. The goal is to return no-threat offenders to productive lives as taxpaying, contributing citizens, not wasting away behind bars, becoming hopeless, hardened criminals on the taxpayers' tab.
The legislation arose from months of work by a blue ribbon task force of prosecutors, judges, defense lawyers, police, lawmakers, corrections officials and others. The Pew Center, a national resource in helping states cope with exploding Corrections costs even as recidivism rates worsen, helped the task force in its work.
But with passage of this bill, the dollar signs will finally fly in reverse. It's estimated the bill will net $147 million in clear savings over the next decade from reduced jail and court costs, even after paying for treatment programs and probation and parole monitoring. Total savings including money plowed back into treatment, could reach $420 million. And that doesn't include the clear benefits -- financial and otherwise -- of having non-violent offenders working, producing, and paying taxes in the community.
The measure ultimately came within one vote of unanimous General Assembly approval. The final agreed-upon version passed the House with only a single dissenting vote, the Senate with none, and it was sent to the governor for his signature Monday only days after it was brought up for its first discussion.
The Corrections Reform Bill of 2011 promises to be the signature achievement of this year's session, and has been hailed by veteran legislators and others as one of the landmark legislative accomplishments of recent decades.
Meanwhile, as usually happens, the session's major budget issue has waited till the 11th hour to fully emerge. The issue is Medicaid -- fittingly, the only government expense growing faster than Corrections -- and the dispute is how to deal with an anticipated $166-million shortfall in this year's Medicaid budget.
The House earlier endorsed a plan proposed by Gov. Steve Beshear that would bring forward enough money from next year's Medicaid budget to plug this year's hole.
Under House Bill 305 as passed in that chamber, the money brought forward would be made up for next year through new 'managed care' initiatives that will save money in Medicaid, the state-federal program that provides health coverage for low-income Kentuckians.
The Senate, however, questioned that assumption, saying savings of that magnitude in such a short timeframe are highly unlikely. Instead, the Senate amended the bill to fill the budget hole next year with a share-the-pain-fairly strategy of cutting state spending across the board. The Senate plan starts with a cut of 0.525 percent in the final quarter of this fiscal year and a cut of about 2.26 percent in the 2011-12 fiscal year, which begins July 1.
Basic public-school funding (the SEEK formula) and postsecondary education would be exempt from the cuts in the last quarter of this fiscal year. year but would face reductions in the second year, including a cut of about 1.3 percent for K-12 education.
The House voted last Thursday to refuse to go along with the Senate amendments. House leaders objected particularly to the education cuts, saying they should be a last option, not a first, and that the governor's cost-containment approach deserves a chance to succeed before more cuts are imposed on state agencies and schools.
The two chambers thus go into conference committee to negotiate a final agreement far apart in their basic approach. Only three working days remain in the session, although the Legislature can delay using its last day and adjourning sine die until March 30. But however you parse it out, the session's almost over, the issues in play push a lot of buttons both govermentally and politically, and a lot of ground must be covered to close the gap in very little time.
2011 Legislative Session: Reform bills and the Constitution 02/28/11
Posted: Monday, February 28, 2011Blog: Legislative Update
2011 Legislative Session: Reform bills and the Constitution
A pension-reform bill passed the Senate earlier this month and was sent to the House, where it has remained undiscussed since its referral to the House State Government Committee on Feb. 15. Meanwhile, the theme of budget stresses and saving money continued elsewhere in the session, as a corrections reform bill some say could represent one of the most significant reforms of recent decades passed the House late last week, received Senate committee approval Thursday, and was poised to pass that chamber, perhaps as soon as today.
House Bill 463 is the product of a blue-ribbon task force study by judges, attorneys, public officials and legal experts, all focused on making the criminal justice system work more effectively and efficiently. It addresses explosive growth in one of the costliest segments of the state budget: Corrections. The main target: Non-violent drug offenders. The goal: Lower exploding Corrections costs by getting non-violent, non-dangerous offenders out of jail, into treatment, back to work, and off the taxpayers' dime.
As penalties against drug crimes -- including simple possession -- have risen in patchwork fashion in recent years, so has the state's prison population exploded. The bill codifies the types and amounts of different drugs that define serious trafficking versus simple possession, and sets out alternatives to re-incarceration for parole or probation violations.
The payoff: Experts estimate the changes proposed in the measure could save the state corrections budget as much as $422 million over the next decade.
Meanwhile this week, great attention accompanied newly elected Sen. Rand Paul's visit to the Senate, especially in light of recent events. During his day in Frankfort, he testified to a Senate committee and spoke to the full chamber on his proposal for a Constitutional convention to consider a balanced budget amendment to the U.S. Constitution.
Article 5 of that document spells out two ways the Constitution can be amended. Amendments may be proposed by either two-thirds of both house of Congress -- the way it's always been done -- or by a national convention, commonly called an 'Article 5 convention,' frequently attempted but never successfully. Such a convention requires that at least two-thirds (34) of the Legislatures of the 50 states request it.
Proposed amendments of either type -- drafted by Congress or drafted by convention --must then be finally ratified either by approval of the legislatures of three-fourths of the states or ratifying conventions held in three-fourths of the states. Congress has say over which method of ratification will be used. After his appearance, the Senate passed SCR 134 requesting an Article 5 balanced-budget convention from Congress, and forwarded it to the House, where its fate is uncertain.
While the previous week saw passage of two AGC of Kentucky supported bills by their respective chambers meaning they are effectively half-way through the often lengthy, legislative process last week saw little movement on the two bills. The first bill HB-407 (Palumbo R-Lexington) has been assigned to the Senate A & R Committee despite having no funding or budgetary implications in the legislation which passed the House 77-18. This important legislation was initially introduced during the 2010 session in a joint effort of the American Institute of Architects and the Associated General Contractors of Kentucky. To see the Roll Call vote in the House, a list of members who supported our bill or opposed, click here.
The legislation would establish an authority responsible for administering a commercial construction loan program. The authority would guarantee loans up to 25% of the project cost not to exceed $2 million, between private lenders and project developers for commercial construction projects in Kentucky.
Members please take a moment to call the toll free Legislative Message line at 1-800-372-7181 and urge your state Senator to support this important bill on behalf of the construction industry.
The other bill SB-139 (Stivers R-Manchester) has been assigned to the House Judiciary Committee and no action was taken on the bill last week. A top legislative priority of the AGC of Kentucky Government Affairs Committee the bill would expand the class of persons who may post a bond to discharge a lien. The bill previously passed the Senate 38-0
Members please take a moment to call the toll free Legislative Message line at 1-800-372-7181 and urge your state Representative to support SB-139.
February 2011 Jefferson County Public School PLA 02/24/11
Posted: Thursday, February 24, 2011Blog: Competitive Edge
JCPS/Valley High School Renovation Project
Recently, the Jefferson County Board of Education (JCPS) entertained the idea of instituting a Project Labor Agreement (PLA) on their $26M Valley High School Renovation Project. On February 24th, the Facilities Committee of JCPS did not recommend to the full board the implementation of a PLA on this project.
This is a major victory for the entire construction community, the Jefferson County Board of Education and the taxpayers who fund the project. All responsible and responsive contractors will have an opportunity to compete for the project.
This is however a temporary victory. We believe there will be additional attempts to consider PLAs for future JCPS projects and we will remain engaged. We will also make efforts to educate those who do not have a firm understanding of the issue.
We will keep the entire membership informed whenever PLA’s are being considered on public projects throughout the Commonwealth of Kentucky.
2011 Legislative Session: Two AGC Supported Bills on the Move 02/21/11
Posted: Monday, February 21, 2011Blog: Legislative Update
2011 Legislative Session: Two AGC Supported Bills on the Move
Last week saw passage of two AGC of Kentucky supported bills by their respective chambers meaning they are effectively half-way through the often lengthy, legislative process. The first is HB-407 (Palumbo R-Lexington). This important legislation was initially introduced during the 2010 session in a joint effort of the American Institute of Architects and the Associated General Contractors of Kentucky.
The bill passed the House of Representatives on Friday by a vote of 77-18. To see the Roll Call vote, a list of members who supported our bill or opposed, click here.
The legislation would establish an authority responsible for administering a commercial construction loan program. The authority would guarantee loans up to 25% of the project cost not to exceed $2 million, between private lenders and project developers for commercial construction projects in Kentucky.
Members please take a moment to call the toll free Legislative Message line at 1-800-372-7181 and thank Rep. Ruth Ann Palumbo and Rep. Tommy Thompson for sponsoring and co-sponsoring this important bill on behalf of the construction industry.
Also seeing positive action last week was SB-139 (Stivers R-Manchester). A top legislative priority of the AGC of Kentucky Government Affairs Committee the bill would expand the class of persons who may post a bond to discharge a lien. The bill passed the Senate Judiciary committee and upon receiving its third reading was placed on the consent orders. The bill passed the Senate 38-0.
Members please take a moment to call the toll free Legislative Message line at 1-800-372-7181 and thank your State Senator for supporting SB-139.
The first bill to pass both chambers finally got House approval on Friday, the 18th day of the thirty day "short session". The bill would let optometrists, perform a specific surgical laser procedure to correct problems that sometimes follow cataract surgery -- a significant expansion of their charter -- and to administer certain new medications. It would give the Kentucky Board of Optometric Examiners more authority to define the scope of optometric practice.
The Senate bill sped through its home chamber in four days last week, then got quick committee approval in the House earlier last week. It passed the full House un-amended Friday, and became not only the first two-chamber passed bill of the session, but the first sent to the governor for his signature.
But that bill is, so far, the exception this session. A number of measures that have received wide attention face what looks like tough sledding on their bumpy journey toward law, as the session runs ever shorter on days.
One issue that emerged dramatically and with powerful support among legislative leaders and law enforcement would require a doctor's prescription for certain cold medicines that contain pseudoephedrine, a precursor ingredient used to cook methamphetamine. 'Meth' is a growing problem in rural Kentucky, a powerful drug of abuse with devastating personal and social consequences.
But Senate Bill 46 ran into a buzzsaw of equally powerful and well-heeled opposition from business groups, who questioned why law-abiding Kentucky families should pay in added medical expense and inconvenience to combat meth abuse. They pointed out that the current electronic tracking system for monitoring and regulating over-the-counter decongestant sales would be lost.
The bill was passed by a Senate committee, but has not been called from the board for a vote in the full chamber. Presumably, a whip-count shows not yet enough votes to pass it. So that bill's fate remains up in the air in its chamber of origin, even as time is running short to get it through the House and on to the Governor before the session concludes.
2011 Legislative Session Continues 02/14/11
Posted: Monday, February 14, 2011Blog: Legislative Update
2011 Legislative Session
A number of high-profile issues are dominating the 2011 session of the Kentucky General Assembly. This week, several bills moved a step closer to becoming law. In the House, a proposal to raise the high school dropout age from 16 to 18 and a budget amendment to address the Medicaid shortfall for FY 2011 passed. Both are considered top priorities of the Beshear administration. Also the Senate passed a major reform of Kentucky's public pension systems that is estimated to save taxpayers $7.5 billion over the next 25 years and local governments more than $1 billion over the next 10 years. Each of these bills will need to clear the other chamber in order to become law.
Last week saw the introduction of two AGC of Kentucky supported bills. The first is HB-407 (Palumbo R-Lexington). This important legislation was initially introduced during the 2010 session in a joint effort of the American Institute of Architects and the Associated General Contractors of Kentucky. Once again, Paul Mattingly of BosseMattingly Constructors along with Alvin Cox testified in support of the Construction Loan Guarantee bill. The legislation would establish an authority responsible for administering a commercial construction loan program. The authority would guarantee loans up to 25% of the project cost not to exceed $2 million, between private lenders and project developers for commercial construction projects in Kentucky.
Members please take a moment to call the toll free Legislative Message line at 1-800-372-7181 and thank Rep. Ruth Ann Palumbo and Rep. Tommy Thompson for sponsoring and co-sponsoring this important bill on behalf of the construction industry.
Also being introduced last week was SB-139 (Stivers R-Manchester). A top legislative priority of the AGC of Kentucky Government Affairs Committee the bill would expand the class of persons who may post a bond to discharge a lien.
Additionally, AGC of Kentucky staff presented a resolution to the House Minority caucus in support of HB-204 legislation to prohibit the use of project labor agreements in construction bid specifications. The resolution adopted by the AGC of Kentucky Board of Director's read in part, "...the AGC of Kentucky, Inc. greatly appreciates the efforts of the House Minority Caucus to elevate the importance of this construction-related issue on behalf of the taxpayers and employers of the Commonwealth of Kentucky".
Finally, AGC offered a number of suggested improvements to HB-3 (An Act related to hiring of unauthorized aliens) including clarifying that the provisions of the bill would apply to all contracts, modifying the penalty provision so a "first offense" would not result in an automatic 5 year prohibition from state contracts and moving the start date of the program, should the legislation pass, to January 2012. We appreciate the sponsor Rep. Cherry (D-Princeton) along with Rep. Damron (D-Nicholasville) for their willingess to improve the legislation and offer our changes in a House Committee substitute. The bill passed the House of Representatives by a vote of 90-6 and has moved to the Senate for consideration.
2011 Legislative Session Resumes 02/07/11
Posted: Monday, February 07, 2011Blog: Legislative Update
2011 Legislative Session Resumes
Thirty-day short sessions tend toward two tracks: Dealing under pressure with problems like state budgets in freefall crisis or just taking up issues and problems that can finally have their day in the sun or those which have emerged in the year between 60-day sessions where everything's on the table.
With the budget and state revenues in good order this year -- the governor had expressed hope for a limited agenda, and his State of the Commonwealth speech last week underscored that limited ambition. His top proposal was to raise the state's dropout age to 18.
The hope some have for a limited session may still come true. In fact, this week the leader of the Senate Senator David Williams (R-Burkesville) told the Speaker of the House that he believed six days could be shaved off the legislative schedule, saving taxpayers nearly $400,000 in session expenses.
Kentucky got an inkling that this session might go a different way, early on when -- instead of spending the session's opening week last month solely on routine organizational matters -- the Senate passed and sent a dozen pieces of legislation to the House, including several of major statewide import.
The Senate bills read like a laundry list of today's red-flag issues, from cracking down on illegal immigration to reform of our patchwork tax policy, from a 'neighborhood schools' bill that keeps kids closer to home and allows for charter schools, to reaffirming key Constitutional protections within a state Bill of Rights.
As might be expected, the House put the brakes on that quick start so it could give the Senate package its own proper study, and some of those dozen bills have already run aground or are running aground in that chamber. The House, of course, has its own priorities.
A proposal to require a doctor's prescription for over-the-counter cold and allergy medicines that contain pseudoephedrine -- the main ingredient used to cook methamphetamine, or 'meth.' Similar bills toward that end have been filed in both the House and Senate, though the Senate version was the focus of the initial committee discussion last week.
2011 Legislative Session Begins 01/31/11
Posted: Monday, January 31, 2011Blog: Legislative Update
2011 Legislative Session Begins
The 2011 Session of the General Assembly got underway last week with a flurry of activity including: leadership elections, swearing in of new members, and hundreds of bill introductions.
This is the short session, lasting 30 legislative days, and Tuesday began the four-day organizational session, which wrapped up on Friday January 7th. Legislators have taken the last few days to organize, which means they have elected leadership, appointed committee chairmen and committee members. Following the organizational session, the General Assembly will recess until February 1st for the business portion of the session. They will utilize their remaining 26 legislative days and are currently scheduled to adjourn their business on March 22nd.
Leadership Elections
The General Assembly has completed its elections for legislative leadership. Below are the 2011-2012 leaders with changes underlined:
House Democrats
Speaker of the House Greg Stumbo
Speaker Pro-Tem Larry Clark
Majority Floor Leader Rocky Adkins
Majority Whip Tommy Thompson
Majority Caucus Chairman Bob Damron
House Republicans
Minority Floor Leader Jeff Hoover
Minority Whip Danny Ford
Minority Caucus Chairman Bob DeWeese
Senate Republicans
President of the Senate David Williams
President Pro-Tem Katie Stine
Majority Floor Leader Robert Stivers
Majority Whip Carroll Gibson
Majority Caucus Chairman Dan Seum
Senate Democrats
Minority Floor Leader RJ Palmer
Minority Whip Jerry Rhodes
Minority Caucus Chairman Johnny Ray Turner
New Members: October/November/December 2010
Posted: Thursday, December 09, 2010Blog: News
October 2010
Tomrook Steel, LLC
The Robison Group
November 2010
The Joseph Group, LLC
Rigging Institute, LLC
December 2010
Ramey Contracting, LLC
Fox Painting & Decorating, Inc.
McGraw Hill
Posted: Thursday, August 26, 2010Blog: AGCKY Pages
New Members: July/ August/ Septmeber 2010
Posted: Monday, August 02, 2010Blog: News
July 2010
Eco Services, LLC
August 2010
JMK Electric Co., LLC
Turn- Key Tunneling, Inc.
Graves & Graves, LLC
R & L Paving, Inc.
September 2010
Lawton Insurance
Board of Directors
Posted: Monday, July 12, 2010Blog: AGCKY Pages
New Members: April / May / June 2010
Posted: Wednesday, June 30, 2010Blog: News
| Apr-10 |
| Hall's Communications, Inc. |
| A & A Mechancial Service, Inc. |
| Perkins Construction |
| May-10 |
| Bachman Auto Group |
| Set Industrial Services, Inc. |
| Liberty Holding Group |
| P & P Company |
| Integrated Facility Systems |
| Five D Enterprises |
| Walker Mechanical Contractors, Inc. |
| Brinley Masonry, LLC |
| Marine Solutions, Inc |
| Turner Construction |
| Jun-10 |
| American Roofing & Metal Co., Inc. |
| Baldwin CPA's, PLLC |
2010 Extraordinary Session Ends
Posted: Tuesday, June 01, 2010Blog: Legislative Update
During the 2010 "special session" last week your AGC of Kentucky Government Affairs Team was successful in lobbying for nearly $500 million in new bonding for among other items state funded construction projects including Category 5 schools along with an acceleration of the Job Creation Tax credit.
Funding for the state's schools most in need of replacement (Category 5) was solved after considerable discussion and negotiations thus clearing the way for passage of the state budget. Under the final plan, the state will match funding for local school districts that levy a "second nickel," or 5 cents per $100 in property value.
The accelerated tax credit will enable small business employers to use 2009 as the base year of employment for applying for tax credits for the 2010 Tax year. Eligible AGC of Kentucky members with 50 or fewer employees can receive the tax credit of up to $25,000 for hiring one new employee in 2010 along with a capital investment of at least $5,000.
The Tax credit acceleration along with passage of House Bill 5, Unemployment Insurance legislation saving Kentucky employers nearly $700 million were the top legislative priorities of the AGC of Kentucky and our allies in the KY Small Business Caucus during the "special session".
A very special thank you to Senate Appropriations & Revenue Committee Chair Bob Leeper, I-Paducah who met with a delegation of Small Business Caucus members including a representative from AGC of Kentucky and agreed to sponsor an amendment to the budget bill. Rep. Tanya Pullin D-South Shore efforts in the House were also instrumental in our success. Thanks also to all the legislators who voted for HB-5, sponsored by House Speaker Pro Tempore Larry Clark, D-Okolona.
The two-year, $17.1 billion spending plan House Bill 1 reached the governor's desk following final legislative passage at the conclusion of day five of the "special session", staving off a threatened government shutdown on July 1.
The plan includes no new taxes and includes new general fund bonding of $437 million.
Also headed to the governor is House Bill 2, the revenue package needed to pay for the two-year budget. Among the provisions added to by the Senate were tax incentives aimed at benefiting rural and low-income communities through business investment and philanthropy.
Another amendment to HB 2 directs coal severance money into a scholarship program aimed at drawing pharmacy students into coal counties. The program is similar to those aimed at bringing badly needed doctors into the rural Kentucky, with each year of service offsetting a year of school loans. Students who decide not to fulfill their end of the contract would be required to pay back the loans. Students from coal counties would be given preference for the scholarships.
The session continued into the Memorial Day weekend with legislators meeting on Saturday May 30th to finalize the state "road plan". Soon after the final passage of the road plan, a press release was issued touting among other projects the inclusion of $62.5 million for Kentucky’s share of a new bridge across the Ohio River between Milton, Ky., and Madison, Ind.
The new bridge was one of dozens of projects in the $4.45 billion road project legislation which the General Assembly ultimately passed during the 6 day "special session".
The Transportation Cabinet’s operations budget of about $5 billion and the two-year road plan were the last two major pieces of legislation still in play that the legislature hoped to approve on Saturday.
Following it's passage the House and Senate adjourned "sine die" at approximately 11 pm Saturday evening and sent the legislation on to the Governor for his signature.
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AGC of Kentucky
Posted: Monday, May 24, 2010Blog: Home Page Section 2
AGC of KY Top Legislative Issue Passes as 2010 Regular Session of the Kentucky General Assembly End
Posted: Friday, March 19, 2010Blog: Legislative Update
"Mr. Speaker, I would move you sir that ...we adjourn sine die, until the first Tuesday following the first Monday of the Year of Our Lord 2011, unless called into extraordinary session by the Governor of the Commonwealth."--Speaker of the House, Greg Stumbo.
Sine die is latin it means 'without a day.' In the parlance of government, it means literally the end, no more it's ovah.
That quaint parliamentary motion is always much anticipated by lawmakers, legislative staff, reporters, lobbyists, and others who've worked a winter session's long cold hours. And when the motion came in both chambers late Thursday April 15th, the 2010 General Assembly officially ended and entered the history books.
Fortunately, though no budget was passed by the legislature AGC of Kentucky's top legislative priority--mirror bid preference for state contractors did pass and has gone to the Governor for his signature.
The session went down to its last hours with its major challenge hanging unresolved--the passage of a state budget. And in those final hours, the venerable adjournment motion from a past era hinted at a likely future -- being called back into special session.
The state budget has been this session's Holy Grail and the search for it has provided most of its narrative. And fittingly, nearing its final page, the session took a pythonesque plot twist--A House proposal to pass a one-year 'continuation budget' to keep government operating at current funding levels until a formal budget could be agreed to, either in special session or in regular session next year.
The outcome though not ideal was a possibility until the very end but by mid-afternoon on the session's 60th and last day -- the Senate announced it was adjourning without taking up the proposal and the suspense ended. It was a rather undramatic ending to the session.
Lawmakers convened on Jan. 5 to face a staggering projected revenue shortfall. Some said it was $1.5 billion. Almost everyone agreed it was at least a billion. Kentucky has suffered through repeated shortfalls in recent years, hundreds of millions of dollars worth in fact and projection, but this was by far the biggest challenge the state has every faced. By nearly any measure, this was a deficit unlike any we've seen in the state's history.
Gov. Steve Beshear was first to offer a plan to deal with it, when he delivered his Budget Address to a joint session in the House Chamber in early January. It featured spending cuts, savings and economies across state government, some borrowing, and some plain optimism. But its $17.5 billion in spending also counted upon $780 million in projected new revenues from legalizing electronic slot machines at state racetracks.
By the time the chamber lights dimmed that night, it was clear from leaders' reactions that slots were politically impossible in this Legislature. And so was the governor's budget. By sundown the next day, lawmakers had set about writing their own spending plan from scratch.
As the Constitution requires, the House went first. Its budget contained no slots revenues. But it did include some short-term tweaks in the business-tax code that would raise between $200 million and $300 million (estimates varied widely) in the two-year budget cycle. It also made some headlines by cutting two instructional days from the school calendar, although it preserved basic SEEK funding for schools. It cut agency spending pretty much across the board, counted on yet-undeclared federal stimulus money for Medicaid, and called for cuts in state political and contract hiring.
It also specified something that would set the stage for future impasse - a billion dollars in bonded debt to build new schools to replace aging ones, plus water and sewer projects statewide.
The Senate, in its turn, cut government spending more deeply than the House, dumped the business-tax changes as unacceptable tax increases -- and said no to House bonding for projects. Senate leaders said piling on more debt with state finances stretched water-thin and the economy in grim recession would cause a 'death spiral of debt' in coming years.
And so, in late March, began the semi-annual conference-committee dance between the two chambers -- give some, take some, as conferees tried to find a common-ground compromise budget all could live with.
First indications about the negotiations were optimistic. Specific spending details seem to have been resolved, or were at least resolvable. But finally, negotiations derailed on a point of basic principle: Would taking on significant new bonded debt for badly needed school and water-and-sewer construction projects be an economic boost, essentially a 'jobs bill' to put Kentuckians back to work in our important construction industry and speed the road to economic recovery or an irresponsible deepening of public debt by a state already in perpetual financial uncertainty because of a chronic structural imbalance in its budget?
House leaders argued for bonding. There was $1 billion of it in their original proposal, although the total came down dramatically as various compromises were floated. Most of the money would go to replace dilapidated schools. House leaders said their original package would stimulate the state's recession-ravaged economy and create 25,000 jobs for out-of-work Kentuckians. State unemployment has risen past 10 percent, and is certainly more if you count the thousands of 'discouraged' job seekers who've just quit looking.
Senate leaders pointed to that same recession and countered that piling on $1 billion in new debt would send the state into a 'debt death spiral.' They said the time has come to seriously belt-tighten government, share in the recessionary pain business and families feel, and address the chronic structural imbalance that has plagued Kentucky's budget too long. To do otherwise would just perpetuate and worsen the underlying problem, they said.
Despite various good-faith efforts by both sides to reach compromise over the veto recess and as the inexorable session clocked ticked down, the chambers finally threw in the towel on the session's penultimate scheduled day. By that point, just as a practical procedural matter, a new bill could not be printed and prepared for a vote before the mandated April 15 adjournment. The House's 11th hour proposal for a continuation budget never flew in the Senate
The governor will have to bring lawmakers back to Frankfort for a special session - what the sine die motion calls an 'extraordinary session' -- before July 1 to pass a budget for the coming fiscal year.
It should be noted this is potentially 'new' history being written. While a couple of times in recent years a budget wasn't in place when the new fiscal year began, in those cases governors kept government going by executive order.
But recent court rulings have limited the governor's authority to keep a budgetless government operating to certain essential functions, like corrections. 'Non-essential' services like parks would have to shut down. Basically, people will notice, unlike in past years. It would be uncharted waters.
So one hundred and seven days after the 2010 General Assembly convened Jan. 5 in great uncertainty, the session is over for now. But great uncertainty remains as the Governor's office issued a statement to the press asserting his intention to call the members of the General Assembly back to Frankfort in May.
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AGC President Mattingly Testifies on HB-553
Posted: Tuesday, February 23, 2010Blog: Competitive Edge
House Bill 553 sponsored by House Economic Development Committee Chair Rep. Palumbo of Lexington would establish a revolving construction loan fund for commercial building construction projects guaranteeing up to 25% of the cost of the project not to exceed $2 million on any single project.
In their testimony before the committee both AGC of Kentucky President Paul Mattingly and AIA Kentucky President Alvin Cox described the great difficulties facing the construction industry today and the importance of working together on behalf of our members.
President Mattingly noted, "During 2009 Kentucky's construction industry experienced a job loss (seasonally adjusted) of over 13,000 workers. In January of 2010 nearly 75,000 construction workers nationally lost their jobs according to federal unemployment figures as the construction unemployment rate jumped to 24.7%."
President Cox testified "This situation not only affects our members but the state as a whole. AIA Kentucky is very concerned about this issue and after discussing the matter with our friends at AGC we began looking for solutions."
While House Bill 553 will not solve the whole problem it will send a powerful signal that Kentucky plans to be aggressive in fighting it's way back to economic health.
The legislation passed the committee unanimously.
Please take a moment and call the message line at 1-800-372-7181 and thank Rep. Palumbo for her support of AGC and Kentucky's construction industry.
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Draft Budget Bill Expected, Retainage Bill HB-317 Withdrawn
Posted: Tuesday, February 23, 2010Blog: Competitive Edge
As the clock continues to tick-tock on a session still without a formal budget proposal, the General Assembly this week stared down the barrel of what one leader called its 'defining moment,' moving ahead with what another leader called its greatest challenge since at least 1990.
That challenge: Going it alone and writing a balanced budget from scratch, without broad tax increases or Draconian program cuts -- and without working from the governor's own proposed budget, with its $780 million from presumed racetrack slots revenues to help plug a budget gap of a billion dollars or more. Lawmakers from both chambers have rejected the slots idea as unpassable this session.
The budget bill will originate in the House. But leaders from both chambers have been cooperating in 'big picture' discussions about the overall parameters of a budget approach the Senate and House could agree to. This as data was being gathered across the whole spectrum of state government, so the House budget committee could produce a specific working document to start the actual legislation moving.
At week's end, a model bill draft had been prepared, ready for the last of that information to be plugged in, in hopes it could be completed and sent to the House budget committee next week. It's still planned that the House finish work on its budget bill in time to send it to the Senate by early March.
Senate President David Williams and House Speaker Greg Stumbo have agreed the budget will not be based on new revenue but, it may anticipate an extension of federal Medicaid funding. Despite yet another call from Governor last week to consider gaming as a source of revenue, legislators from both sides of the aisle have dismissed this idea as a method to shore up the state's budget in the current session of the General Assembly.
In other activity after further consideration Representative Kent Stevens (D-Lawrenceburg) agreed to withdraw HB-317 legislation which appeared to undermine or possibly undo many of the compromises sought by AGC of Kentucky in the passage of HB-490 the landmark 2007 legislation "The Kentucky Construction Fairness Act". AGC of Kentucky would like to thank Rep. Stevens for his willigness to reconsider alternative solutions and appreciates the efforts of Rep. Yonts (D-Greenville) the original sponsor of HB-490 for his continued support of the construction industry.
The AGC of Kentucky Government Affairs Committee met on Friday Feb. 12th to review a number of legislative issues and highlights from the meeting included discussion of and support for SB-45 (Tapp) Resident Bidder Legislation and HB-349 (Clark) the Unemployment Insurance bill which contains recommendations of the Governor's Task Force on Unemployment Insurance. The committee also discussed a number of bills currently being drafted including Rep. Pasley's Clean Diesel in Construction Tax Credit and Rep. Palumbo's Construction Loan Guarantee Program which will be introduced later this session.
AGC of Kentucky Supports the Bluegrass Green Entrepreneur Program
Posted: Monday, February 15, 2010Blog: Competitive Edge
The Bluegrass Green Entrepreneur Program is a program by the Bluegrass Area Development District and the Kentucky Student Ventures Corporation to provide entrepreneurial training, work experience and assistance to economically disadvantaged participants, ages 18-24. All AGC of Kentucky members in the Lexington-Fayette Urban County area are encouraged to participate.
Employer FAQ's
How long is my commitment?
Participants will work and learn at your business for 6 hours a day, 3 days per week for six weeks.
Do I pay the participants?
No. The participants will be paid $7.25 per hour for 30 hours per week and are employees of Bluegrass Area Development District and they are covered by BGADD Liability Insurance and Workers Comp. There is no cost to the employer. We do ask that you keep track of their time as if they were your employees.
What are the participants supposed to learn from my business?
We are asking employers to provide participants with varying experiences druing their six week placement in order to help them understand the breadth of running a business - and to introduce participants to human resources, accounting, sales and marketing, production and more.
What is the KSVC?
The Kentucky Student Ventures Corporation, is a non-profit organization, offering opportunities for participants to learn how to start and run a low-cost, low-risk small business, and to develop a business plan for a "green" business or a business that utilizes sustainable "green" business practices. KSVC educates, trains and mentors high school and college-age students in order to encourage entrepreneurial skills necessary to create and operate successful student-run small businesses.
How does my business become a part of the Bluegrass Green Entrepreneur Program?
To sign up your business or for information about the Bluegrass Green Entrepreneur Program, contact: AGC of Kentucky Assistant Executive Director, John Brazel at .(JavaScript must be enabled to view this email address) or Bobby Clark, Kentucky Student Ventures Corporation, (859)-233-0236 .(JavaScript must be enabled to view this email address) or www.kystudentventures.org.
Legislation to Watch
Posted: Monday, February 15, 2010Blog: Competitive Edge
SB 45 (Tapp) AGC supported legislation to give bid preference to Kentucky contractors on state projects and promote "best value" bidding.
AN ACT relating to state contracting practices.
Create a new section of KRS Chapter 45A to give preference to Kentucky resident bidders in state construction contracts; require this preference to apply against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state; specify that this preference is equal to the preference given or required by the state of the non resident bidder; "best value" to include the requirement to communicate the preference in the invitation for bids; amend KRS 45A.085, 45A.090, 45A.180, and 45A.182 to conform; amend KRS 162.070 to include the preference for a resident bidder in accepting bids for secondary school construction contracts; amend KRS 164A.575 to add that "best value" shall be determined in accordance with KRS 45A.070 for postsecondary school capital construction contracts.
Passed the Senate 38-0 with our floor amendment attached. AGC members are encouraged to call the toll free Legislative message line at 1-800-372-7181 and urge your state Representative to support SB-45, the Kentucky Contractors Resident Bidder Preference Bill.
HB-302 (Pasley) AGC of Kentucky supported bill which passed the House last week 93-2. The legislation would appropriate debt service and authorize agency bonds for the Department of Military Affairs to construct a hangar at
Bluegrass Station.
HB 42 (Damron) AGC supported legislation that would allow Kentucky's public universities to issue bonds for revenue generating projects.
AN ACT relating to postsecondary institution debt.
Create new sections of KRS Chapters 48 and 164A to provide a process for postsecondary institutions to issue agency bonds upon authorization by the General Assembly; amend KRS 48.180 to conform.
HB-275 (Moore) AGC of Kentucky supported legislation that would provide a job stimulus tax credit for Kentucky employers.
AN ACT relating to employer tax credits.
Create a new section of KRS Chapter 141 to allow a job stimulus tax credit equal to the amount of tax deducted and withheld from wages paid by an employer to a qualifying employee; amend KRS 141.0205 to place the tax credit within the applicable order.
SB 40 (Thayer) and HB 128 (DeCesare) AGC supported transparency legislation which requires state agencies to maintain web sites that details the expenditures of state funds.
AN ACT relating to public records.
Create a new section of KRS Chapter 7 to require the Legislative Research Commission to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 26A to require the Chief Justice to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require the Finance and Administration Cabinet to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require all executive branch agencies to make financial data available to the Finance and Administration Cabinet, and to require the cabinet to give the Legislative Research Commission and the Court of Justice control over their expenditure data by January 1, 2011; amend KRS 164A.565 to require the governing boards of each postsecondary educational institution to make financial data available to the Finance and Administration Cabinet; and provide that the Act shall be known as the "Taxpayer Transparency Act of 2010".
HR24 (Marzian) AGC supported resolution to endorse the creation of a General Assembly Green Schools Caucus in support of efforts to build more energy-efficient, water-efficient, and environmentally sustainable K-12 schools. AGC of Kentucky would like to thank Rep. Jim Decesare (R-Rockfield) for his co-sponsorship of this important resolution.
The AGC of Kentucky supported resolution passed the House 97-0 on January 26th.
HB 38 (Yonts) AGC does not support this bill that would adopt the fifth edition, and as a result of a committee substitute portions of the 2nd edition, rather than the more current 6th edition of the AMA "Guides to the Evaluation of Permanent Impairment" used in disability determinations. The AMA Guides to the Evaluation of Permanent Impairment is the most widely used basis for determining impairment. They are used in state workers' compensation systems, federal systems, automobile casualty and personal injury. Ten states use the more current Sixth Edition which was released at the end of 2007: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, Oklahoma, Pennsylvania, Tennessee and Wyoming.
HB-200 (Nelson) AN ACT relating to electricians.
Amend KRS 227A.100 to require biennial rather than annual renewal of electrician and electrical contractor licenses; establish biennial license renewal on or before the last day of the licensee's birth month in each odd-numbered year; increase level of continuing education from 6 to 12 hours to reflect change to biennial renewal; make effective January 1, 2011.
SB-55 (Tori) AN ACT relating to administrative regulations and declaring an emergency.
Amend KRS 13A.338 to declare any administrative regulation found deficient since March 27, 2009, to be null, void, and unenforceable; prohibit the administrative agencies from promulgating administrative regulations identical to or substantially the same as that administrative regulation for a specified period of time.
SB-77 (Buford) The AGC-SIF staff and AGC Lobbying team are currently reviewing this bill at this time we do not have a position on this legislation.
AN ACT relating to self-insurance groups.
Amend KRS 304.33-020 to clarify that liability self-insurance groups are subject to the insurance code rehabilitation and liquidation statutes, rather than bankruptcy proceedings; amend KRS 304.48-090 to specify the authorized investments for liability self-insurance groups; amend KRS 304.48-140 to require a liability self-insurance group board of trustees to establish a formal conflict-of-interest or code-of-conduct policy applicable to the board of trustees; amend KRS 304.48-170 to require liability self-insurance groups to file quarterly financial statements with the executive director of the Office of Insurance and require a self insured group to make the statement of financial condition available to a group member upon request; amend KRS 304.50-155 to clarify that workers' compensation self-insured groups are subject to the unfair trade practice provisions contained in Subtitle 12 of KRS Chapter 304.
HB-317 (Stevens) AN ACT relating to the retainage in construction contracts.
Amend KRS 371.410 to decrease the percentage of retainage held from ten percent to five percent; require retainage to be held in escrow; require a 30-day time period for release after final completion; clarify required documentation; amend KRS 371.415 to create a rebuttable presumption of bad faith for failure to timely pay owed retainage.
HB-321 (Damron) AN ACT relating to hiring unauthorized aliens.
Create a new section of KRS Chapter 337 to create define terms relating to bill; create a new section of KRS Chapter 337 relating to public agencies to require use of federal employment verification programs and prohibit hiring unauthorized aliens; create a new section of KRS Chapter 337 to require all contractors and subcontractors with public agencies to use federal employment verification programs, not hire unauthorized aliens, and provide sworn affidavits of compliance; create a new section of KRS Chapter 337 to provide for civil enforcement and canceling of contracts; permit courts to enjoin violations; require suspension from further public agency contracts for 5 years if employer is found to have hired unauthorized aliens.
Bid Preference Bill Advances this Week
Posted: Monday, January 25, 2010Blog: Competitive Edge
An AGC of Kentucky supported bill SB-45 (Tapp R-Shelbyville) to give reciprocal bid preferences to Kentucky contractors on state projects when bidding against contractors from states with similar bid preferences and to promote "best value" bidding passed the State Senate Local Government Committee as a committee substitute this week 12-0. AGC of Kentucky would like to thank Senator Gary Tapp for sponsoring the legislation and thank each of the committee members who voted Yes to support the proposal. Following passage of the committee substitute a technical error in the definition of a "resident bidder" was discovered and a floor amendment is currently being drafted by AGC of Kentucky at the request of the sponsor in order to improve the legislation. The bill has received two succesfull readings and will likely be voted upon by the full Senate next week with our proposed floor amendment attached.
Action Alert:
AGC members are encouraged to call the toll free Legislative message line at 1-800-372-7181 and urge your state Senator to support SB-45, the Kentucky Contractors Resident Bidder Preference Bill with Floor Amendment next week. Nuclear power proposal gets Senate approval A statewide moratorium on nuclear energy plant construction would end under legislation passed the Senate 27-10 earlier this week. Senate Bill 26, sponsored by Sen. Bob Leeper, I-Paducah, would allow new nuclear power plants in Kentucky to be constructed if the facility's plan for storing the high-level waste conformed to federal guidelines. Current law mandates a plan for waste disposal, in effect a ban because no disposal site has yet been approved anywhere in the United States.
Our Clean Diesel in Kentucky Construction Tax Credit Legislation Coming Soon
AGC of Kentucky is working with Rep. Don Pasley (D-Winchester) to potentially sponsor and draft legislation providing a tax credit for construction companies who repower or retrofit off road diesel engines. We have also had initial meetings this week with representatives from the Kentuckians For The Commonwealth and the Kentucky Conservation Committee.
Diesel emission reductions represent one of the most important opportunities to achieve rapid and cost-effective health and environmental benefits. In 2009 AGC of Kentucky received a $2 million grant to fund voluntary diesel emission reductions for the Clean Diesel in Kentucky Construction Program. We were the only statewide AGC Chapter to successfully compete for the grant monies in a very competitive process which saw more than 100 organizations apply for the grant through the South East Diesel Collaborative in EPA Region 4.
This legislative initiative, which will likely be introduced next week will benefit current and future AGC of Kentucky members who are participating in the grant program as well as, incent other Kentucky construction companies to voluntarily reduce diesel engine emissions with the goal to improving the health and air quality for all Kentuckians. Our legislative proposal is modeled after an Oregon statute which passed successfully in 2007.
During the 2010 session your AGC of Kentucky Government Affairs Team will track nearly 1,000 bills, resolutions and amendments which may impact our members interests and we will continue to provide the best legislative representation for the commercial construction industry in the Commonwealth. To view the most important bills we are lobbying see below.
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Budget Address this Week
Posted: Tuesday, January 19, 2010Blog: Competitive Edge
When a major bill makes its way to either chamber's floor for a vote in the session's early days, it's a sure sign the bill has uncommonly deep support in that chamber. House Bill 176 became the first piece of legislation to reach the governor's desk this year, as the Senate and House cooperated and fast-tracked the bill. Time was of the essence: A Jan. 19 deadline loomed for state education officials to apply for federal Race to the Top funds, up to $200 million or more that can be used toward improving state middle and high schools. HB 176 also qualifies Kentucky for $45 million in other federal funds to turn around low-performing schools. This money is sorely needed, as will be demonstrated when the Governor deliver's his budget address on Tuesday when the General Assembly returns from the Martin Luther King holiday. The administration has said very little about their budget proposal other than it will contain significant cuts to major programs in order to deal with a projected $1.4 billion deficit over the biennium in the General Fund. Governor Beshear has said he will try to protect the main source of funds for elementary and secondary education, the SEEK formula, and try to limit cuts to key human services. Any cuts in state programs, will be in addition to multiple rounds of cuts in the base funding for most programs that have been made the last year and a half. While some believe government can stand a little more belt-tightening, we think these cuts will begin to be more noticeable to the average Kentuckian. These cuts seem almost a certainty without some new source of state revenue or tax increases. Speaker Stumbo announced this week that he would like to see the General Assembly explore a more consumption based tax system, meaning more reliance on a sales tax. He is advocating looking at the current sales tax exemptions and the possibility of taxing services which are currently excluded from the sales tax. He has also mentioned a possible repeal of the corporate income tax. President Williams has indicated he would favor a more consumption based system as well, but will be very cautious to avoid raising taxes. Governor Beshear has said tax reform of any kind usually translates into tax increases and he doesn't favor any "look" at changing the tax system in the middle of a recession. During the 2010 session AGC of Kentucky will track nearly 1,000 bills and resolutions which may impact our members interests and we will continue to provide the best legislative representation for the commercial construction industry in the Commonwealth. To view the bills we are tracking see below.
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Legislation to Watch
Posted: Tuesday, January 19, 2010Blog: Competitive Edge
SB 45 (Tapp) AGC supported legislation to give bid preference to Kentucky contractors on state projects and promote "best value" bidding.
AN ACT relating to state contracting practices.
Create a new section of KRS Chapter 45A to give preference to Kentucky resident bidders in state construction contracts; require this preference to apply against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state; specify that this preference is equal to the preference given or required by the state of the non resident bidder; include determination of the amount of the preference; define "resident bidder"; require the Finance and Administration Cabinet to promulgate administrative regulations on the process for establishing residency and listing states with a bid preference in place, including the amount of that preference; amend KRS 45A.070 to redefine "best value" to include the requirement to communicate the preference in the invitation for bids; amend KRS 45A.085, 45A.090, 45A.180, and 45A.182 to conform; amend KRS 162.070 to include the preference for a resident bidder in accepting bids for secondary school construction contracts; amend KRS 164A.575 to add that "best value" shall be determined in accordance with KRS 45A.070 for postsecondary school capital construction contracts.
HB 42 (Damron) AGC supported legislation that would allow Kentucky's public universities to issue bonds for revenue generating projects.
AN ACT relating to postsecondary institution debt.
Create new sections of KRS Chapters 48 and 164A to provide a process for postsecondary institutions to issue agency bonds upon authorization by the General Assembly; amend KRS 48.180 to conform.
SB 40 (Thayer) and HB 128 (DeCesare) AGC supported transparency legislation which requires state agencies to maintain web sites that details the expenditures of state funds.
AN ACT relating to public records.
Create a new section of KRS Chapter 7 to require the Legislative Research Commission to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 26A to require the Chief Justice to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require the Finance and Administration Cabinet to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require all executive branch agencies to make financial data available to the Finance and Administration Cabinet, and to require the cabinet to give the Legislative Research Commission and the Court of Justice control over their expenditure data by January 1, 2011; amend KRS 164A.565 to require the governing boards of each postsecondary educational institution to make financial data available to the Finance and Administration Cabinet; and provide that the Act shall be known as the "Taxpayer Transparency Act of 2010".
HR24 (Marzian) AGC supported resolution to endorse the creation of a General Assembly Green Schools Caucus in support of efforts to build more energy-efficient, water-efficient, and environmentally sustainable K-12 schools. The resolution passed the House Education Committee on Jan. 12th and is expected to pass.
HB 38 (Yonts) AGC does not support this bill that would adopt the fifth edition, rather than the more current 6th edition, of the AMA "Guides to the Evaluation of Permanent Impairment" used in disability determinations. The AMA Guides to the Evaluation of Permanent Impairment is the most widely used basis for determining impairment. They are used in state workers' compensation systems, federal systems, automobile casualty and personal injury. Ten states use the more current Sixth Edition which was released at the end of 2007: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, Oklahoma, Pennsylvania, Tennessee and Wyoming. AGC of Kentucky is currently reviewing a committee substitute the sponsor has proposed in an effort to gain support for the proposal.
HB-200 (Nelson) AN ACT relating to electricians.
Amend KRS 227A.100 to require biennial rather than annual renewal of electrician and electrical contractor licenses; establish biennial license renewal on or before the last day of the licensee's birth month in each odd-numbered year; increase level of continuing education from 6 to 12 hours to reflect change to biennial renewal; make effective January 1, 2011.
SB-55 (Tori) AN ACT relating to administrative regulations and declaring an emergency.
Amend KRS 13A.338 to declare any administrative regulation found deficient since March 27, 2009, to be null, void, and unenforceable; prohibit the administrative agencies from promulgating administrative regulations identical to or substantially the same as that administrative regulation for a specified period of time.
SB-77 (Buford) The AGC-SIF staff and AGC Lobbying team are currently reviewing this bill at this time we do not have a position on this legislation.
AN ACT relating to self-insurance groups.
Amend KRS 304.33-020 to clarify that liability self-insurance groups are subject to the insurance code rehabilitation and liquidation statutes, rather than bankruptcy proceedings; amend KRS 304.48-090 to specify the authorized investments for liability self-insurance groups; amend KRS 304.48-140 to require a liability self-insurance group board of trustees to establish a formal conflict-of-interest or code-of-conduct policy applicable to the board of trustees; amend KRS 304.48-170 to require liability self-insurance groups to file quarterly financial statements with the executive director of the Office of Insurance and require a self insured group to make the statement of financial condition available to a group member upon request; amend KRS 304.50-155 to clarify that workers' compensation self-insured groups are subject to the unfair trade practice provisions contained in Subtitle 12 of KRS Chapter 304.
Other Legislation of Note
Posted: Tuesday, January 19, 2010Blog: Competitive Edge
To view the entire text of any of these bills visit the LRC website at www.lrc.ky.gov
SB 13 (Jones) and HB 159 (Greer) mandates coverage for the treatment of autism spectrum disorders by health insurance providers.
SB 26 (Leeper) eliminates the current prohibition on nuclear facilities.
SB 28 (Westwood) provides for a career-based program of study for high school students.
SB 44 (Shaughnessy) requires public universities to create a plan to increase four-year graduation rates.
SB 67 (Winters) would promote early graduation for high school students who fulfill rigorous academic requirements.
SB 69 (Winters) provides for incentive pay and an accelerated certification program for teachers of chemistry, physics or math.
HB 13 (Wayne) establishes a state earned income tax credit and extends the state sales tax to a select number of services.
HB 21 (Rep. Stan Lee) and HB 63 (Montell) authorize public charter schools and public school academies.
HB 74 (Tilley) establishes a wellness project tax credit for qualified employers who offer wellness programs to employees.
HB 117 (Marzian) adds definitions of "sexual orientation" and "gender identity" to discrimination statutes.
HB 133 (Riner) prohibits wage discrimination against a person of the opposite sex who is paid less for doing a job of "comparable worth."
HB 144 (Yonts) and HB 160 (Rollins) would smooth transfer procedures for college credits and align lower division coursework across postsecondary education institutions.
HB 165 (Damron) would remove the potential liability for employers offering smoking cessation incentives to employees as part of a wellness program.
HB 213 (Adkins) would permit the state to use the Eminent Domain process to acquire land necessary for carbon sequestration and management.
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Legislature Returns to Capitol
Posted: Tuesday, January 12, 2010Blog: Competitive Edge
The Kentucky General Assembly returned to Frankfort last week amidst a continued backdrop of budgetary shortfalls which vary in estimate of $900 million according to Senate leadershp or as much as $1.5 billion according to the Governor's office. Discussions among legislative and executive branch officials regarding the state of the economy as well as the weakened budget outlook for the foreseeable future will likely overshadow much of the legislative process.
How the Legislature deals with this financial challenge in the face of a slowly recovering national economy may largely define this session's tone along with the state budget, which is often viewed as an expression of political policy and priorities.
During the first week of the session, Governor Beshear delivered his annual State of the Commonwealth address outlining a number of accomplishments during his tenure and measures he supports, but he did not provide many details of his proposed budget. Beshear will unveil details of his budget during his address to a joint session of the General Assembly on January 19th.
One of the first orders of business of the 2010 session has been welcoming new members to each legislative chamber. The Senate welcomed two new members: Sen. Robin Webb and Sen. Jimmy Higdon. Webb, D-Grayson, was elected in August 2009, to serve Kentucky's 18th Senate District, and Higdon, R-Lebanon, was elected last month to serve the state's 14th Senate District. Both previously served in the House. The House welcomed Rep. Jill York, R-Grayson, who was elected last month to represent Kentucky's 96th House District. The seat was previously held by Webb until she joined the Senate.
Another new House member is expected next month as Gov. Beshear has called a Feb. 2 election to fill the open seat in the state's 24th House District, which was vacated when Higdon was elected to the Senate.
While little legislation will typically move earlier in a session, HB-1 (Stumbo), known as "Amanda's Bill," which would allow Kentucky courts to use GPS monitoring in dangerous domestic violence order situations, cleared the House Judiciary Committee earlier and is being fast-tracked for a House Floor vote later this week.
During the 2010 session, AGC of Kentucky will track nearly 1,000 bills and resolutions which may impact our members' interests, and we will continue to provide the best legislative representation for the commercial construction industry in the Commonwealth. To view the bills we are tracking, see below.
Legislation to Watch
Posted: Tuesday, January 12, 2010Blog: Competitive Edge
SB 45 (Tapp) AGC supported legislation to give bid preference to Kentucky contractors on state projects and promote "best value" bidding.
AN ACT relating to state contracting practices.
Create a new section of KRS Chapter 45A to give preference to Kentucky resident bidders in state construction contracts; require this preference to apply against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state; specify that this preference is equal to the preference given or required by the state of the nonresident bidder; include determination of the amount of the preference; define "resident bidder"; require the Finance and Administration Cabinet to promulgate administrative regulations on the process for establishing residency and listing states with a bid preference in place, including the amount of that preference; amend KRS 45A.070 to redefine "best value" to include the requirement to communicate the preference in the invitation for bids; amend KRS 45A.085, 45A.090, 45A.180, and 45A.182 to conform; amend KRS 162.070 to include the preference for a resident bidder in accepting bids for secondary school construction contracts; amend KRS 164A.575 to add that "best value" shall be determined in accordance with KRS 45A.070 for postsecondary school capital construction contracts.
HB 42 (Damron) AGC supported legislation that would allow Kentucky's public universities to issue bonds for revenue-generating projects.
AN ACT relating to postsecondary institution debt.
Create new sections of KRS Chapters 48 and 164A to provide a process for postsecondary institutions to issue agency bonds upon authorization by the General Assembly; amend KRS 48.180 to conform.
SB 40 (Thayer) and HB 128 (DeCesare) AGC supported transparency legislation which requires state agencies to maintain Web sites that detail the expenditures of state funds.
AN ACT relating to public records.
Create a new section of KRS Chapter 7 to require the Legislative Research Commission to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 26A to require the Chief Justice to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require the Finance and Administration Cabinet to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require all executive branch agencies to make financial data available to the Finance and Administration Cabinet, and to require the cabinet to give the Legislative Research Commission and the Court of Justice control over their expenditure data by January 1, 2011; amend KRS 164A.565 to require the governing boards of each postsecondary educational institution to make financial data available to the Finance and Administration Cabinet; and provide that the Act shall be known as the "Taxpayer Transparency Act of 2010".
HR24 (Marzian) AGC supported resolution to endorse the creation of a General Assembly Green Schools Caucus in support of efforts to build more energy-efficient, water-efficient, and environmentally sustainable K-12 schools.
HB 38 (Yonts) AGC does not support this bill that would adopt the fifth edition, rather than the more current Sixth Edition, of the AMA "Guides to the Evaluation of Permanent Impairment" used in disability determinations. The AMA "Guides to the Evaluation of Permanent Impairment" is the most widely used basis for determining impairment. They are used in state workers' compensation systems, federal systems, automobile casualty and personal injury. Ten states use the more current Sixth Edition, which was released at the end of 2007: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, Oklahoma, Pennsylvania, Tennessee and Wyoming.
HB-200 (Nelson) AN ACT relating to electricians.
Amend KRS 227A.100 to require biennial rather than annual renewal of electrician and electrical contractor licenses; establish biennial license renewal on or before the last day of the licensee's birth month in each odd-numbered year; increase level of continuing education from 6 to 12 hours to reflect change to biennial renewal; make effective January 1, 2011.
SB-55 (Tori) AN ACT relating to administrative regulations and declaring an emergency.
Amend KRS 13A.338 to declare any administrative regulation found deficient since March 27, 2009, to be null, void, and unenforceable; prohibit the administrative agencies from promulgating administrative regulations identical to or substantially the same as that administrative regulation for a specified period of time.
SB-77 (Buford) The AGC-SIF staff and AGC Lobbying team are currently reviewing this bill at this time we do not have a position on this legislation.
AN ACT relating to self-insurance groups.
Amend KRS 304.33-020 to clarify that liability self-insurance groups are subject to the insurance code rehabilitation and liquidation statutes, rather than bankruptcy proceedings; amend KRS 304.48-090 to specify the authorized investments for liability self-insurance groups; amend KRS 304.48-140 to require a liability self-insurance group board of trustees to establish a formal conflict-of-interest or code-of-conduct policy applicable to the board of trustees; amend KRS 304.48-170 to require liability self-insurance groups to file quarterly financial statements with the executive director of the Office of Insurance and require a self-insured group to make the statement of financial condition available to a group member upon request; amend KRS 304.50-155 to clarify that workers' compensation self-insured groups are subject to the unfair trade practice provisions contained in Subtitle 12 of KRS Chapter 304.
Other Legislation of Note
Posted: Tuesday, January 12, 2010Blog: Competitive Edge
To view the entire text of any of these bills visit, the LRC website at www.lrc.ky.gov.
SB 13 (Jones) and HB 159 (Greer) mandate coverage for the treatment of autism spectrum disorders by health insurance providers.
SB 26 (Leeper) eliminates the current prohibition on nuclear facilities.
SB 28 (Westwood) provides for a career-based program of study for high school students.
SB 44 (Shaughnessy) requires public universities to create a plan to increase four-year graduation rates.
SB 67 (Winters) would promote early graduation for high school students who fulfill rigorous academic requirements.
SB 69 (Winters) provides for incentive pay and an accelerated certification program for teachers of chemistry, physics or math.
HB 13 (Wayne) establishes a state earned income tax credit and extends the state sales tax to a select number of services.
HB 21 (Rep. Stan Lee) and HB 63 (Montell) authorize public charter schools and public school academies.
HB 74 (Tilley) establishes a wellness project tax credit for qualified employers who offer wellness programs to employees.
HB 117 (Marzian) adds definitions of "sexual orientation" and "gender identity" to discrimination statutes.
HB 133 (Riner) prohibits wage discrimination against a person of the opposite sex who is paid less for doing a job of "comparable worth."
HB 144 (Yonts) and HB 160 (Rollins) would smooth transfer procedures for college credits and align lower division coursework across postsecondary education institutions.
HB 165 (Damron) would remove the potential liability for employers offering smoking cessation incentives to employees as part of a wellness program.
HB 213 (Adkins) would permit the state to use the Eminent Domain process to acquire land necessary for carbon sequestration and management.
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Testing2
Posted: Wednesday, November 11, 2009Blog: Why Join Pages
AGC/SIF WORKER’S COMPENSATION
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K4C Kentucky Construction Career Days
Posted: Wednesday, October 28, 2009Blog: Competitive Edge
Construction Career Days
The long line of yellow school buses and thousands of students donning construction hard hats and safety goggle marked the return of autumn last week as more than 2,000 students from across Kentucky attended the 2009 K4C Kentucky Construction Career Days event at the Shelbyville Fairgrounds in Shelbyville, Kentucky.
"What a wonderful turnout this year," said Richard Vincent, the association's chief executive officer. "Its really encouraging to see how many Kentucky students are interested in the construction professions and after all they are the future workforce for our industry."
The K4C is an annual event where AGC of Kentucky member companies and others provide interactive displays to encourage Kentucky school kids to consider a career in the construction profession. A very special thanks to all the volunteers and the more than fifty exhibitors and sponsors who participated this year including AGC members Messer Construction, Gray Construction, Irving Materials Inc, Parsons Electric, Thompson Electric, United Rentals, and others.
For more information about the Kentucky Construction Career Choice Council call John Brazel, AGC of Kentucky Assistant Executive Director at 502.223.8845 or email .(JavaScript must be enabled to view this email address)
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AGC Member Receives Safety Award
Posted: Wednesday, October 28, 2009Blog: Competitive Edge
The Architectural Woodwork Institute (AWI) and its insurance safety partner, CNA, have announced the 25 AWI Manufacturing Members being honored with a "Safety Improvement Certificate of Recognition" in the 2009 safety awards program for reductions in their Incident Rate from the previous year. The 2009 honorees include: Leininger Cabinet Woodworking Inc., Lexington, Kentucky.
A total of 66 Safety Awards were awarded to AWI Manufacturing Members in the three awards categories during the annual program on October 8th.
Congratulations to Leininger Cabinet Woodworking, Inc.
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Special Session
Posted: Thursday, June 25, 2009Blog: Legislative Update
Legislative Special Session - No Racinos but small business gets a break, finally!
Richard Vincent & John Brazel, AGC of Kentucky
As Senate leaders had warned, the Beshear-proposed and House-passed racetrack slots bill was defeated in the upper chamber this week, failing to get out of the Senate A&R committee, but the other three items on the governor's call were agreed upon and passed in good order as the 2009 special session wrapped up work in eight legislative days.
Passed: An economic incentive-package probably best known for seeking to lure a major NASCAR event to Northern Kentucky, along with an AGC of Kentucky and Small Business Caucus supported tax credit for small businesses who hire one additional employee and invest $5,000 in equipment or technology. The $25,000 tax credit is targeted at existing small businesses in Kentucky and has been on our legislative agenda for the three previous sessions but failed to pass in the 2009, 2008 & 2007 regular sessions.
We greatly appreciate the efforts of Rep. Tanya Pullin (D-South Shore) and Sen. Gary Tapp (R-Shelbyville) whose leadership and perseverance on this important issue has led to its final successful passage.
Also passing was the so-called 'Bridges Bill' to create a finance-and-control authority for massive transportation megaprojects like the $4.1 billion Ohio River twin-bridges project in Louisville, and a rebalanced state budget to fix what Gov. Steve Beshear and some predictors called a near-$1 billion shortfall in the coming fiscal year.
The economic-incentive measures lawmakers agreed to include $75 million to boost existing incentives that encourage the expansion of businesses already operating in Kentucky. Plus, in addition to tax credits to help Kentucky Speedway in Gallatin County land a NASCAR Sprint Cup race, it also includes tax incentives to attract the Breeders' Cup horse racing championships to Louisville, and creates a tax credit for small businesses (see above) and for film and TV productions shooting in the Commonwealth. It also exempts active-duty military from state income taxes.
The initial reason Beshear called the special session for June 15 was to revise the state budget. His proposal called for using $741 million in federal stimulus funds to fill most of the projected shortfall. He also proposed across-the-board spending cuts for most state agencies — but sparing education — of 2.6 percent. Those steps lawmakers approved.
But in the agreement reached between House and Senate negotiators late Tuesday, the governor's proposal to suspend three paid holidays for state workers making less than $50,000 a year and five holidays for those making $50,000 or more was deleted from the final bill.
Overall, observers hailed the session as highly productive, given quick and relatively painless agreement on three major issues. But the biggest newsmaker in the room — video lottery terminals, or video slots — came up short when it landed in the Senate.
The governor had added VLTs to the session call to help save the state's troubled Thoroughbred industry, by drawing more patrons to tracks and injecting new money into race purses. The hope was to keep racetracks open, and horses and horsemen in the state.
The VLT idea has been bubbling under the legislative surface for a decade or more, but no full chamber has ever actually voted on it — until the House voted 52-45 last week to approve the measure. But House leaders added a sweetener this year: a sudden proposal to tie most slots revenues to debt service on bonds for more than $1 billion in school-building construction, both at state colleges and in school districts statewide where crumbling elementary and secondary buildings need replacement.
However, Senate leaders felt relying on slot-machine revenue was bad public policy, and had their own proposal to help the horse industry without expanded gambling: Taxing state lottery sales and adding a surcharge for simulcasting signals from Kentucky horse racing tracks.
In the end, neither chamber could agree to the other's proposal and the session concluded yesterday sine die.
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AGC of Kentucky Testifies in Opposition to Proposed Debarment Regulations
Posted: Thursday, June 25, 2009Blog: Legislative Update
Richard Vincent & John Brazel, AGC of Kentucky
On Monday of this week, AGC of Kentucky Executive Vice President Richard Vincent provided testimony in opposition to 200 KAR 5:315 at a public hearing before Finance & Administration Cabinet officials. The proposed regulation increases the types of violations which would incur a debarment from 9 to 14 and increases the length of the debarment from 2 years to 60 months.
Here is an excerpt of our testimony:
The Associated General Contractors of Kentucky, representing more than 700 general contractors, subcontractors and associate member companies across the state, opposes the proposed changes to 200 KAR 5:315. We recognize the Kentucky Model Procurement Code authorizes the Finance and Administration Cabinet (“Cabinet”) to promulgate regulations under the Code. The proposed regulation authorizes the Cabinet to debar contractors for various criminal offenses, violations of statutory procurement requirements, and breaches of previous or existing state contracts.
While criminal, and perhaps legislative, violations may be just grounds for debarment, debarment for contractual infractions is unduly harsh and unfair to contractors. Moreover, the proposed regulation does not provide the requisite due process protections that should accompany a punishment as draconian as debarment.
The Associated General Contractors of Kentucky questions the need for the proposed changes to the current regulation. We believe that the significant and serious changes proposed by the Finance & Administration Cabinet are fraught with potential unintended consequences which could have calamitous and unwarranted negative effects upon the construction industry and the economy of the Commonwealth of Kentucky.
We anticipate receiving a response to our comments from the Finance & Adminstration Cabinet next month. We look forward to working with the administration and other parties of interest including the West Kentucky Contractors Association and the Kentucky Highway Contractors Association, who similarly oppose the regulatory change, to ensure our members' interests are not harmed by these overreaching regulations. We are also working with the Senate Licensing & Occupations Committee in an effort to add this issue to their agenda for the August 14th regular monthly meeting.
New Members: May 2009
Posted: Sunday, May 31, 2009Blog: News
PPG Industries
Gratela’s Commercial Cleaning
B P Pipeline, LLC
Specialized Landscape Company, LLC
Junior Wilson Contracting
Whayne Supply Co.
Kentuckiana Restoration Services, Inc.
T & M Construction Inc.
A-1 Portable Buildings, Inc.
New Members: April 2009
Posted: Thursday, April 30, 2009Blog: News
Vulcan Materials Company
