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2010 General Assembly - Week in Review
February 23, 2010
The legislature has completed 31 days of the 60 day legislative session. Although we are past the mid-point there is still a lot of legislative action to take place including consideration of the state budget.
The House released an outline of their budget proposal this week. The House Speaker said they would have more detail over the last weekend and plan on having a draft bill for their Budget Review Sub-Committee Chairmen to consider this week. The plan is to work through a bill the same as they would work through the Governor's budget bill.
The Speaker did release some information, stating their plan cuts most state agencies by 2% including higher education, holds the K-12 education funding harmless, no increases for teachers, no increases for state employees and some increased cost sharing for state employees and teachers in the state health plan. Their plan counts on additional stimulus funds and utilizing the enhanced Medicaid match funds. It does not include any tax increases or, as far as we know, any tax reform initiatives.
We have heard that the House has been considering repealing the pollution equipment sales tax exemption as a test on how difficult it would be to repeal some of the exemptions. The pollution equipment exemption would raise about $37 million per year, but doesn't make a lot of sense to repeal if the state's policy is to incent business to reduce pollution.
The Speaker and President have become even more emphatic about no gaming legislation, no new revenue enhancements or tax reform consideration this session. There is obvious staff support and time limitations to be able to do much more than produce a budget this session. All of their energies will be dedicated to budget consideration and will leave little time for other major issues including tax reform.
So far, the Democratic House and Republican Senate have been cooperating in developing the outline or guidelines for a budget. They appear to be united in resolving the budget problem exclusive of the Governor's help. The leadership in the House is more concerned about front loading the two year budget the first year with the hope that the economy will improve or federal stimulus money will flow from Washington D.C. The Senate has said they want government reduced and would like to produce a budget that reflects actual revenues for both years.
KAM Specific Issues:
We want your feedback!!! Please CLICK HERE to send us your thoughts on this legislation or any others that might interest you as a KAM member. Thanks for your participation.
House Bill 335 and House Bill 336, Sponsored by Rep. Jim Wayne (D - Louisville), combined would do three things: 1. Require a report to be compiled annually and filed with the General Assembly that details the state tax expenditures made on economic and tourism development incentives; 2. Create a process for the review of each tourism and economic development incentive program and agreement by the General Assembly's Program Review Committee one year prior to its expiration. 3. The bill would also require that a sunset provision be placed in all economic and tourism development agreements and projects.
KAM is very concerned about this legislation and its impact on our members. The need for oversight into economic development activities is noble, but these bills are not after oversight of the economic development programs, but rather are trying to hinder Kentucky's efforts to incent businesses to grow and keep jobs in Kentucky.
Kentucky is competing for jobs nationally and globally and these changes would put us at drastic disadvantage in attracting and keeping jobs in the Commonwealth. Job creation is at the focus of government at all levels and these bills are a step in the wrong direction. Further this legislation contradicts the good work that the Legislature did this past summer passing House Bill 3, which created the incentives for reinvestment in manufacturing, which KAM was a vocal supporter of.
Senate Bill 160, Sponsored by Sen. Harper-Angel (D - Louisville), would establish a regulatory scheme for used consumer computer equipment and televisions. The primary regulatory mechanism utilized under the bill focuses on manufacturer registration and imposition of mandatory 'take back' programs for end of life equipment. To be subject to the bill, for both computer equipment (CPUs, laptops, monitors, and printers) and televisions, a manufacturer must manufacture at least 1,000 units for sale to consumers in Kentucky.
If applicable, computer equipment manufacturers must register with the Department for Environmental Protection, pay a $1,500 annual registration fee, have a 'take back' plan in place, and report the amount of materials recycled in the previous year. For televisions, each manufacturer subject to the bill must register with the Department, pay a $1,500 annual registration fee, implement a 'take back' program that will recycle, at a minimum, the equivalent of the manufacturers market share of televisions, and report the amount of televisions recycled. The key difference between the two programs is that penalties apply if a television manufacturer does not recycle its market share of televisions; this penalty does not apply to manufacturers of computer equipment.
Please review the bill and let KAM know of any impact this bill may have on your business.
House Bill 402, Sponsored by Rep. Linda Belcher (D - Shepherdsville), clarifies that an employer shall not prohibit an employee from voluntarily carrying pepper spray or other chemical agent. KAM is concerned about this legislation's impact on workplace safety. Also concerning is the precedent it creates regarding mandating what types of business practices manufacturers may have in place to assure workplace safety.
Senate Bill 56, Sponsored by Sen. Bob Leeper (I - Paducah), this is legislation emanating from the Energy & Environment Cabinet that requires the use of Regional Screening Level Table for US EPA Region 3 rather than Region 9. This legislation is a top priority for KAM's Chemical Industry Council. The legislation passed out of the Senate Natural Resources committee this week and appears poised to be approved by the full Senate this week.
House Bill 408, sponsored by Rep. Harry Moberly (D - Richmond), is an omnibus energy bill that mandates a renewable fuels portfolio and energy efficiency standards that will have a drastic increase on energy prices for Kentucky manufacturers. In order for Kentucky manufacturers to stay competitive we must keep overhead costs down and energy costs are a huge part of that. We must oppose this legislation as it will increase energy costs drastically.
Senate Bill 148, sponsored by Sen. Tom Jensen (R - London), the Chairman of the Senate Judiciary Committee, creates a regulatory scheme for civil litigation funding providers. The bill has garnered a lot of discussion from the business community who is trying to ascertain its impact on the civil justice system or if the rationale that if they exist, they should be regulated is appropriate. KAM will be working with the sponsor to minimize its impact on our members.
House Bill 349, sponsored by Rep. Larry Clark (D - Louisville), is awaiting action in the Senate. The bill contains the Unemployment Insurance Task Force recommendations including the following: Increased the taxable wages from $8k to $9k in 2012 with an additional $300 each year until 2022; changed the benefit rate to 1.923%; and made the waiting week compensable. KAM will continue to follow this legislation very closely as it moves through the legislative process to make sure our members' interests are protected.
House Bill 159, Sponsored by Rep. Jeff Greer (D - Brandenburg), this legislation would expand Kentucky's current health insurance coverage for the treatment of autism spectrum disorders in children. KAM is always concerned about the overhead costs of our members and one of those top cost drivers is health insurance coverage for our employees. KAM will continue to work with the sponsor to balance the cost aspects of this proposal and the benefits it could provide to Kentucky families.
House Bill 348 Sponsored by Rep. Joni Jenkins (D - Louisville), puts in place a very rigorous environmental status review process and puts it in place for local planning and zoning agencies.
We want your feedback!!! Please CLICK HERE to send us your thoughts on this legislation or any others that might interest you as a KAM member. Thanks for your participation.
Editor's Note: Legislative Update is an E-Newsletter for members and stakeholders in the Kentucky Association of Manufacturers (KAM). It is published periodically to communicate important information about how KAM is looking out for your interests in the Kentucky General Assembly, U.S. Congress, local governments, or through other groups and/or associations. Through KAM, you have the strongest, most-effective and experienced team of lobbyists in Kentucky
Senate Majority Leader Harry Reid (D-NV) recently announced that the health care bill he brings to the Senate floor will include a public option that allows states to “opt out.”
A public option in any form would disrupt and destabilize the private health care marketplace. While health care reform is essential, not just any health reform will do. Legislation that includes a public health plan that under-reimburses providers would inevitably shift costs to the private sector and fail to achieve the bipartisan goal of reducing overall health care costs. Premiums would increase because more people would be in plans that pay doctors and hospitals at lower, government rates, causing a shift in costs to private insurance payers.
It is critical that Congress enact a version of health care reform that reduces health care costs for manufacturers and does not include a public option. Contact your Senators now to express your opposition to the public option. Ninety-seven percent of NAM members already provide health benefits to their employees. A public option has the potential to seriously hurt manufacturers’ ability to continue to provide high-quality health benefit plans.
To contact your Senators, simply click here.
