KLC 2021 Legislative Update
The Legislative Update provides an overview of bills legislators passed in the 2021 Regular Session of the General Assembly that impact cities.
The Legislative Update provides an overview of bills legislators passed in the 2021 Regular Session of the General Assembly that impact cities.
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<strong>2021</strong><br />
KENTUCKY LEAGUE OF CITIES<br />
LEGISLATIVE<br />
UPDATE<br />
<strong>KLC</strong>.ORG
<strong>2021</strong> <strong>KLC</strong> LEGISLATIVE UPDATE<br />
TABLE OF CONTENTS<br />
Alcoholic Beverages ----------------------------------------------------------------<br />
HB 179 Alcohol Regulatory License Fees<br />
HB 249 Direct Shipper Regulatory License Fees<br />
HB 415 Direct Shipper License<br />
SB 15 Microbreweries<br />
SB 67 Alcoholic Beverages to Go<br />
Annexation ----------------------------------------------------------------------------<br />
SB 88 City Annexation Filings<br />
SB 274 Annexation into Third County<br />
Community Development --------------------------------------------------------<br />
HB 321 West End Opportunity Partnership<br />
HB 556 Funding West End Opportunity Partnership<br />
SB 105 Abandoned and Blighted Property Conservatorship<br />
COVID-Related Actions ------------------------------------------------------------<br />
HB 1<br />
Plans for Reopening Economy<br />
HJR 77 Extension of COVID-Related Emergency Actions<br />
SB 1<br />
Limitation of Emergency Orders<br />
SB 2<br />
Limitation of Emergency Regulations<br />
SB 5<br />
Liability Protections<br />
Economic Development -----------------------------------------------------------<br />
HB 249 Film Industry Tax Credit<br />
HB 249 Qualified Nonresident Employees<br />
HB 320 Broadband Deployment<br />
HB 382 Regional Development Agency Assistance Fund (TVA)<br />
SB 146 Employment Offices<br />
Section 1<br />
Section 2<br />
Section 3<br />
Section 4<br />
Section 5
Emergency Services -------------------------------------------------------------- Section 6<br />
HB 44 Mental Health Benefits for Firefighters<br />
HB 120 Consolidated Emergency Services Districts<br />
Environmental Protection ------------------------------------------------------<br />
HB 249 Registration of Petroleum Storage Tanks<br />
HB 303 Underground Facility Protection<br />
SB 86 Regulation of Open Dumps<br />
Historic Preservation and Commemoration ------------------------------<br />
HB 249 Historic Tax Credit Projects<br />
HB 556 250th Anniversary Commemoration Commissions<br />
Law Enforcement ------------------------------------------------------------------<br />
HB 105 Missing Persons<br />
SB 4 No-Knock Warrants<br />
SB 52 Sexual Offenses by Peace Officer<br />
SB 80 Peace Officer Decertification<br />
Local Government Regulation and Administration --------------------<br />
HB 190 Sale of Grocery Items by Food Service Establishments<br />
HB 210 Adoption Leave<br />
SB 8 Immunizations<br />
SB 66 Youth Camps<br />
SB 148 Operation of Family Child Care Homes<br />
SB 165 Riverport Authorities<br />
SB 171 Local Government Investments<br />
SB 171 Splash Pads<br />
Section 7<br />
Section 8<br />
Section 9<br />
Section 10<br />
Local Government Taxation ---------------------------------------------------- Section 11<br />
HB 84 Exemptions for Disaster Response Businesses<br />
HB 249 Occupational License Fees<br />
HB 249 Refund of Business Taxes<br />
HB 249 Taxation of Veteran Service Organizations<br />
HB 513 Sheriffs’ Collection Fees
<strong>2021</strong> <strong>KLC</strong> LEGISLATIVE UPDATE TABLE OF CONTENTS<br />
Open Records -------------------------------------------------------------------------<br />
HB 273 Exemptions for Certain Photographs and Videos<br />
HB 312 Access to Public Records<br />
Retirement ----------------------------------------------------------------------------<br />
HB 9 CERS Separation – Phase 2<br />
HB 69 Actuarial Reporting for State Retirement Systems<br />
HB 87 Retirement Systems Housekeeping Measures<br />
HB 261 Fraud Against Retirement Systems<br />
SB 169 Duty-Related Disability Benefits<br />
Substance Abuse --------------------------------------------------------------------<br />
HB 7<br />
Recovery Ready Communities<br />
HB 427 Opioid Abatement Advisory Commission<br />
Transportation -----------------------------------------------------------------------<br />
HB 199 Encroachment Permits<br />
HB 328 Advertising Devices<br />
SB 62 Commercial Quadricycles<br />
Utility Services ----------------------------------------------------------------------<br />
HB 207 Energy Source Availability<br />
HB 238 City Utility Commission Membership<br />
HB 272 Penalties for Nonpayment of Utility Services<br />
Section 12<br />
Section 13<br />
Section 14<br />
Section 15<br />
Section 16<br />
House Bills<br />
HB 1 Plans for Reopening Economy ···························································· Page 20<br />
HB 7 Recovery Ready Communities ···························································· Page 57<br />
HB 9 CERS Separation – Phase 2·································································· Page 51<br />
HB 44 Mental Health Benefits for Firefighters ··············································· Page 29<br />
HB 69 Actuarial Reporting for State Retirement Systems ···························· Page 52<br />
HB 84 Exemptions for Disaster Response Businesses ··································· Page 46
HB 87 Retirement Systems Housekeeping Measures ····························· Page 53<br />
HB 105 Missing Persons··············································································· Page 36<br />
HB 120 Consolidated Emergency Services Districts··································· Page 29<br />
HB 179 Alcohol Regulatory License Fees···················································· Page 8<br />
HB 190 Sale of Grocery Items by Food Establishments······························ Page 41<br />
HB 199 Encroachment Permits··································································· Page 59<br />
HB 207 Energy Source Availability······························································ Page 61<br />
HB 210 Adoption Leave··············································································· Page 41<br />
HB 238 City Utility Commission Membership············································· Page 61<br />
HB 249 Direct Shipper Regulatory License Fees········································· Page 8<br />
HB 249 Film Industry Tax Credit·································································· Page 25<br />
HB 249 Historic Tax Credit Projects····························································· Page 34<br />
HB 249 Occupational License Fees····························································· Page 47<br />
HB 249 Qualified Nonresident Employees················································· Page 25<br />
HB 249 Refund of Business Taxes································································ Page 47<br />
HB 249 Registration of Petroleum Storage Tanks······································· Page 32<br />
HB 249 Taxation of Veteran Service Organizations···································· Page 47<br />
HB 261 Fraud Against Retirement Systems················································ Page 54<br />
HB 272 Penalties for Nonpayment of Utility Services································ Page 61<br />
HB 273 Exemption of Certain Photographs and Videos····························· Page 48<br />
HB 303 Underground Facility Protection···················································· Page 32<br />
HB 312 Access to Public Records································································ Page 49<br />
HB 320 Broadband Services········································································ Page 25<br />
HB 321 West End Opportunity Partnership················································ Page 14<br />
HB 328 Advertising Devices········································································· Page 59<br />
HB 382 Regional Development Agency Assistance Fund··························· Page 27<br />
HB 415 Direct Shipper License ··································································· Page 9<br />
HB 427 Opioid Abatement Advisory Commission······································ Page 58<br />
HB 513 Sheriffs’ Collection Fees································································· Page 47<br />
HB 556 250th Anniversary Commemoration Commission························ Page 34<br />
HB 556 Funding West End Opportunity Partnership ································· Page 16<br />
HJR 77 Extension of COVID-Related Emergency Actions··························· Page 21
Senate Bills<br />
SB 1<br />
Limitation of Emergency Orders····················································· Page 21<br />
SB 2<br />
Limitation of Emergency Regulations············································ Page 22<br />
SB 4<br />
No-Knock Warrants········································································· Page 36<br />
SB 5<br />
Liability Protections········································································ Page 23<br />
SB 8<br />
Immunizations················································································· Page 42<br />
SB 15 Microbreweries················································································ Page 10<br />
SB 52 Sexual Offenses by Peace Officers ················································· Page 38<br />
SB 62 Commercial Quadricycles······························································· Page 60<br />
SB 66 Youth Camps····················································································· Page 43<br />
SB 67 Alcoholic Beverages to Go······························································ Page 11<br />
SB 80 Peace Officer Decertification·························································· Page 39<br />
SB 86 Regulation of Open Dumps····························································· Page 33<br />
SB 88 City Annexation Filings···································································· Page 12<br />
SB 105 Abandoned and Blighted Property Conservatorship···················· Page 16<br />
SB 146 Employment Offices········································································ Page 28<br />
SB 148 Operation of Family Child Care Homes·········································· Page 43<br />
SB 165 Riverport Authorities······································································ Page 44<br />
SB 169 Duty-Related Disability Benefits····················································· Page 55<br />
SB 171 Local Government Investments······················································ Page 44<br />
SB 171 Splash Pads····················································································· Page 45<br />
SB 274 Annexation into Third County························································ Page 13<br />
NOTE<br />
The effective date of all legislation enacted by the <strong>2021</strong> Regular Session of the General Assembly<br />
is June 29, <strong>2021</strong>, except for measures containing emergency or delayed effective date provisions.<br />
(OAG 21-02)<br />
If a bill reported in this update becomes effective on a date other than June 29, <strong>2021</strong>,<br />
it is noted in the summary of the bill.
A MESSAGE FROM <strong>KLC</strong><br />
Dear members and friends of <strong>KLC</strong>,<br />
The impact of the COVID public health emergency dominated much of the discussion in the <strong>2021</strong> Regular<br />
Session of the General Assembly. Legislators passed measures that address COVID-related liability issues,<br />
the financial strain the pandemic put upon municipal utilities, and the utilization of federal American Rescue<br />
Plan Act (ARPA) funds. Legislators were focused on ensuring a quick recovery from the health and financial<br />
impact of the pandemic.<br />
Cities have been at the forefront of the state’s recovery effort, and the Kentucky League of Cities proudly<br />
worked with legislators to ensure local elected officials remain engaged and involved in decisions made at<br />
the local level. House Bill 272 protects the ability of a municipal utility to maintain vital finances and ensures<br />
local utility employees are classified as essential. Senate Bill 66 will help local governments as they work to<br />
reestablish summer camps for children, and Senate Bill 171 gives cities some much needed guidance for the<br />
operation of splash pads.<br />
The measures are among the 17 <strong>KLC</strong> initiatives legislators passed in the short, 30-day session. Several top<br />
priorities for cities have already become law and many more will this summer. Just as importantly, legislators<br />
did not enact any of the many measures <strong>KLC</strong> opposed this session.<br />
Work still needs to be done, and <strong>KLC</strong> continues to discuss with legislators the pressing needs of cities.<br />
Kentucky cannot put off for another year the growing problem of infrastructure funding and the inequity<br />
of the state’s antiquated road funding formulas. Legislators must begin the process of diversifying local<br />
government revenue options to ensure economic growth. As Kentucky emerges from the COVID pandemic,<br />
the recovery begins with cities.<br />
You will find on the following pages information on the measures legislators enacted in the <strong>2021</strong> session that<br />
impact cities. If you have any questions on these bills or issues for the 2022 session, you can reach us at 800-<br />
876-4552. Thank you for entrusting us to represent you as the united voice of cities in Frankfort.<br />
Sincerely,<br />
J.D. & Bryanna<br />
J.D. CHANEY<br />
EXECUTIVE DIRECTOR/CEO<br />
BRYANNA L. CARROLL<br />
DIRECTOR OF PUBLIC AFFAIRS
1) ALCOHOLIC BEVERAGES<br />
HB 179<br />
ALCOHOL REGULATORY LICENSE FEES<br />
Sponsor: Representative Phillip Pratt (R–Georgetown)<br />
House Bill 179, a <strong>KLC</strong> initiative, amends regulatory license fee legislation passed in 2019 to clarify<br />
that cities and counties that voted to go wet with a local-option election held between July 15, 2014,<br />
and July 15, 2018, can enact a regulatory license fee. The legislation amends KRS 243.075 to: (1)<br />
expand the authorization to impose a regulatory license fee to counties that contain a city with a<br />
population larger than 20,000 that imposed a regulatory license fee prior to January 1, 2019; and (2)<br />
allow any city or county that held a local-option election pursuant to KRS 243.070 between July 15,<br />
2014, and July 15, 2018, to enact a regulatory license fee within two years of the effective date of the<br />
Act.<br />
<strong>KLC</strong> Executive Director/CEO J.D. Chaney and<br />
Representative Phillip Pratt (R-Georgetown)<br />
testify before the Senate Licensing and<br />
Occupations Committee for passage of House<br />
Bill 179.<br />
HB 249<br />
DIRECT SHIPPER REGULATORY LICENSE FEES<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 amends KRS 243.029 to require regulatory license fees imposed by a city or county<br />
upon gross receipts from the sale of alcoholic beverages by each licensed establishment also be<br />
applied to direct shippers of alcoholic beverages to consumers located within the city or county. The<br />
regulatory license fee shall be separately stated on the invoice, bill of sale, or similar document given<br />
to the consumer. KRS 243.075 is amended to require a direct shipper licensee to remit the regulatory<br />
license fee to the city or county as though it were an establishment located in the city or county<br />
licensed to sell alcoholic beverages.<br />
KRS 139.010 is amended to exempt from sales and use tax local alcohol regulatory license fees<br />
separately stated on an invoice, bill of sale, or similar document given to a purchaser of alcoholic<br />
beverages from a direct shipper of alcoholic beverages. Effective July 1, <strong>2021</strong>.<br />
8 www.<strong>KLC</strong>.org
1) ALCOHOLIC BEVERAGES<br />
HB 415<br />
DIRECT SHIPPER LICENSE<br />
Sponsor: Representative Adam Koenig (R–Erlanger)<br />
House Bill 415 is an update to House Bill 415 passed by the 2020 General Assembly to clarify<br />
requirements to hold a direct shipper license. House Bill 415 (2020) established a framework<br />
for issuance of direct shipper licenses by the Department of Alcoholic Beverage Control to a<br />
manufacturer in Kentucky or any other state for shipment of alcoholic beverages directly to legal-age<br />
consumers.<br />
KRS 243.027 is amended to permit the holder of a direct shipper license to utilize the services of a<br />
third party to fulfill shipments, subject to the following conditions: (1) no licensed entity shall serve as<br />
a third party to fulfill shipments other than the holder of a storage license or transporter’s license; (2)<br />
the third party may operate from the premises of the direct shipper licensee or from another business<br />
location; and (3) the direct shipper licensee shall be liable for any violation of KRS Chapters 242 or<br />
244 relating to shipments to dry territories that may occur by the third party.<br />
KRS 243.027 is further amended to permit a manufacturer located and licensed in Kentucky to<br />
ship samples of alcoholic beverages produced by the manufacturer by a common carrier holding<br />
a Kentucky transporter’s license in quantities not to exceed 1 liter of any particular product in one<br />
calendar year of distilled spirits or wine, or 96 ounces of any particular product in one calendar year<br />
of malt beverages, to the following: (1) marketing or media representatives 21 years of age or older;<br />
(2) distilled spirits, wine, or malt beverage contests or competitions; (3) wholesalers or distributors<br />
located outside of Kentucky; (4) federal, state, or other regulatory testing labs; and (5) third-party<br />
product formulation and development partners. The samples shall be marked by affixing across the<br />
product label a not readily removable disclaimer with the words “Sample-Not for Sale” and the name<br />
of the manufacturer.<br />
KRS 243.110 is amended to specify that a brewer, microbrewery, distilled spirits and wine supplier,<br />
and malt beverage supplier may also hold a direct shipper license.<br />
KRS 243.0305 is amended to permit a distiller ‒ in instances of retail drink and package sales that<br />
occur as souvenir package sales, retail drink sales on the distillery premises, or sales by a distiller<br />
to consumers at fairs and festivals ‒ to transfer its products from the distillery proper to the location<br />
where those sales occur without having to transfer physical possession of the distilled spirits to<br />
a licensed wholesaler and, effective January 1, 2022, report and pay all taxes required to the<br />
Department of Revenue at the time and in the manner required by the department.<br />
KRS 243.884 is amended to require all direct shipper licensees shipping alcohol to a consumer at<br />
a Kentucky address to pay a wholesale tax. On and after the effective date of the Act, the following<br />
rates shall apply for direct shipper sales: (1) for distilled spirits shipments, 11% for wholesale sales<br />
or sales at wholesale; and (2) for wine and beer shipments, 10% for wholesale sales or sales at<br />
wholesale. For direct shipper sales, if a wholesale price is not readily available, the direct shipper<br />
licensee shall calculate the wholesale price to be seventy 70% of the retail price of the alcoholic<br />
beverages. Gross receipts from sales at wholesale or wholesale sales shall not include sales made<br />
between a direct shipper licensee and a consumer located outside of Kentucky. An emergency is<br />
declared. House Bill 415 became law on March 12, <strong>2021</strong>, when signed by the governor.<br />
www.<strong>KLC</strong>.org<br />
9
1) ALCOHOLIC BEVERAGES<br />
SB 15<br />
MICROBREWERIES<br />
Sponsor: Senator Julie Raque Adams (R–Louisville)<br />
Senate Bill 15 amends KRS 243.157 to expand the authority of a microbrewery license to permit the<br />
licensee to sell and deliver up to 2,500 barrels of malt beverages annually to any retail license holder<br />
without going through a distributor, provided that: (1) the microbrewery registers with the Department<br />
of Alcoholic Beverage Control any products sold and delivered that are not otherwise registered by a<br />
licensed distributor; and (2) the microbrewer notifies the distributor of any self-distribution delivery by<br />
electronic or other means.<br />
A new section of KRS Chapter 244 is created to set forth terms of contracts between microbreweries<br />
and distributors. As of the effective date of the Act, KRS 244.602 (requiring a three-tier system for the<br />
distribution and sale of malt beverages) and KRS 244.606 (relating to the contents of agreements<br />
among brewers, importers, and distributors) shall not apply to any new distribution agreement or<br />
the renewal of an existing distribution agreement between a distributor of malt beverages and a<br />
microbrewery. Any existing distribution agreement between a distributor of malt beverages and a<br />
microbrewery shall be deemed to renew upon the earlier of January 1, 2022, or the renewal date set<br />
forth in the existing agreement.<br />
Every distribution agreement providing for and specifying the rights and duties of a microbrewer<br />
and distributor with and regarding the sale of the products of the microbrewer shall be in writing. A<br />
distribution agreement between a microbrewer and a distributor shall not: (1) require the microbrewer<br />
or distributor to agree to renew the distribution agreement at the expiration of a term; (2) permit a<br />
microbrewer or distributor to terminate a distribution agreement without first providing written notice<br />
of any alleged deficiency and giving the other party 60 days from the date a notice of an alleged<br />
deficiency is received to cure the alleged deficiency; (3) permit the assignment of the distribution<br />
agreement, in part or in whole, without first obtaining the consent of the other party, which shall not<br />
be unreasonably withheld provided the assignee possesses the financial, technical, and operational<br />
skills necessary to perform under the distribution agreement; (4) permit the microbrewer or distributor<br />
to unilaterally amend a distribution agreement; (5) require a microbrewer or distributor to mediate<br />
or arbitrate disputes which may arise between them, though nothing shall prohibit the parties from<br />
resolving a dispute by retaining an independent mediator or arbitrator while equally sharing the<br />
cost; or (6) prohibit a microbrewer or distributor from litigating in state or federal courts located in<br />
Kentucky.<br />
A microbrewer may terminate a distribution agreement according to the terms of the agreement,<br />
or in any of the following instances: (1) the assignment or attempted assignment by the distributor<br />
for the benefit of creditors, the institution of proceedings in bankruptcy by or against the distributor,<br />
the dissolution or liquidation of the distributor, the insolvency of the distributor, or the distributor’s<br />
failure to pay for malt beverages in accordance with law; (2) the felony conviction of a distributor<br />
or any of its owners who participate in the distributor’s management that in the sole judgment of<br />
the microbrewer may adversely affect the goodwill or interests of the microbrewer; (3) fraudulent or<br />
10 www.<strong>KLC</strong>.org
1) ALCOHOLIC BEVERAGES<br />
discriminatory conduct of the distributor in any of its dealings with a microbrewery or a microbrewer’s<br />
products; (4) revocation or suspension for more than 31 days of the distributor’s federal basic permit<br />
or any state or local license required of the distributor for the normal operation of its business;<br />
(5) sale of malt beverages by a distributor outside its sales territory prescribed by the distribution<br />
agreement in accordance with KRS 244.585; (6) the distributor effectuates a change of ownership or<br />
possession of ownership interests, establishes a trust or other ownership interest, enters into buy-sell<br />
agreements, or grants an option to purchase an ownership interest without a microbrewer’s consent;<br />
or (7) in the case of a microbrewer whose products represent 5% or less of a distributor’s gross<br />
annual sales, by the giving of a 45-day notice of termination to the distributor and payment by the<br />
microbrewer to the distributor of reasonable compensation to buy back its saleable products upon<br />
return by the distributor, which shall be equivalent to the fair market value of the distributor’s total<br />
investment in the microbrewer’s products being terminated. If the parties are unable to agree on the<br />
fair market valuation, the dispute shall be resolved by arbitration.<br />
SB 67<br />
ALCOHOLIC BEVERAGES TO GO<br />
Sponsor: Senator John Schickel (R–Union)<br />
Senate Bill 67 creates new sections of KRS Chapter 243 to codify guidelines put in place in 2020<br />
to assist local businesses due to the economic impact of the state of emergency in response to<br />
COVID-19. New sections of KRS Chapter 243 are created to allow current license holders with the<br />
privilege of selling alcoholic beverages by the drink at retail to sell alcoholic beverages by the drink in<br />
a sealed container and by the package in sealed original containers on a delivery, to-go, or takeout<br />
basis in conjunction with the purchase of a prepared meal in quantities that a reasonable person<br />
would purchase with a meal. Deliveries, if applicable, shall be made by a person at least 21 years of<br />
age in a vehicle operated and owned by the licensee, the licensee’s employee, or an independent<br />
contractor or agent. Vehicles used for deliveries shall be exempt from displaying the name and<br />
license number of the retail licensee selling the alcoholic beverages being delivered.<br />
All licensees and their employees and independent contractors are prohibited from: (1) selling<br />
alcohol in bulk quantities; (2) completing sales in dry territories; and (3) delivering to a minor under<br />
21 years of age or to an intoxicated person.<br />
Alcoholic beverages to go shall be placed in a bag or other container that is secured in a manner<br />
that makes it visibly apparent if the container has been subsequently opened or tampered with<br />
and transported in a locked glove compartment or the trunk or other area that is not a passenger<br />
area.<br />
The Department of Alcoholic Beverage Control may, but is not required to, promulgate an<br />
administrative regulation that sets forth the conditions under which sales may take place, the days<br />
and times that sales may take place, and the requirements for transportation of alcoholic drinks to<br />
go. An emergency is declared. Senate Bill 67 became law on March 15, <strong>2021</strong>, when signed by the<br />
governor.<br />
www.<strong>KLC</strong>.org<br />
11
2) ANNEXATION<br />
SB 88<br />
CITY ANNEXATION FILINGS<br />
Sponsor: Senator Phillip Wheeler (R–Pikeville)<br />
Senate Bill 88, a <strong>KLC</strong> initiative, modernizes how cities file annexation documents with the Secretary<br />
of State after a boundary change. KRS 81A.470 is amended to require a city within 60 days of a<br />
boundary change to file with the Secretary of State: (1) a duly certified paper or electronic copy of<br />
the final ordinance that changed the city’s boundaries; (2) a map prepared by a professional land<br />
surveyor depicting the parcel annexed or severed in paper or electronic form; and (3) an electronic<br />
file containing a closed geometric figure depicting the territory being added or removed that is<br />
referenced to a Kentucky State Plane Coordinate System zone in any one of the following formats:<br />
AutoDesk AutoCAD DWG or DXF; Bentley MicroStation DGN; or ESRI ArcGIS Shapefile. If the<br />
electronic file is attached to an email, the email and all attached files shall not cumulatively exceed<br />
15 megabytes in size.<br />
KRS 81A.475 is amended to require a city within 60 days of the enlargement or reduction of its<br />
boundaries to file with the county clerk of the county in which the city is located a duly certified paper<br />
or electronic copy of the final ordinance that changed the city’s boundaries and a map meeting the<br />
specifications for maps set for in KRS 81A.470 prepared by a professional land surveyor depicting<br />
the parcel annexed or severed in paper or electronic form.<br />
The Senate State and Local Government Committee unanimously passed Senate Bill 88 on February<br />
25 after testimony from <strong>KLC</strong> Director of Public Affairs Bryanna L. Carroll and Senator Phillip Wheeler<br />
(R-Pikeville).<br />
12 www.<strong>KLC</strong>.org
2) ANNEXATION<br />
SB 274<br />
ANNEXATION INTO A THIRD COUNTY<br />
Sponsor: Senator Robert Stivers (R–Manchester)<br />
Senate Bill 274 creates a new section of KRS Chapter 81A to establish procedures for a city whose<br />
boundaries extend into two counties to annex territory in an additional county. The legislation<br />
allows a city wholly contained within two counties to annex territory in an additional county if the<br />
territory proposed to be annexed: (1) is adjacent or contiguous to the city’s boundaries at the time<br />
an annexation proceeding is begun; (2) is urban in character or suitable for development for urban<br />
purposes without unreasonable delay; (3) is not within the boundary of another incorporated city;<br />
(4) contains infrastructure owned by the city or any agency, political subdivision, department, or<br />
instrumentality of the city, including governing bodies of municipal utilities operating under KRS<br />
Chapter 96; (5) includes no territory that does not contain infrastructure owned by the city or any<br />
agency, political subdivision, department, or instrumentality of the city; and (6) each of the owners of<br />
record of the territory proposed to be annexed gives prior consent in writing to the annexation and<br />
the annexation proceeds under the provisions of KRS 81A.412.<br />
At least 30 days prior to adoption of an annexation ordinance under KRS 81A.412, the city shall<br />
provide notice of the proposed annexation by certified mail to the fiscal court of the county containing<br />
the territory to be annexed. The failure of the city to notify the fiscal court of the proposed annexation<br />
shall serve to void the ordinance annexing the territory. The notice shall contain, at a minimum:<br />
(1) a description of the territory to be annexed; (2) the projected date for passage of an ordinance<br />
annexing the territory; and (3) certification by the mayor of the city proposing the annexation that the<br />
city shall comply with the applicable requirements of KRS Chapter 81A related to annexation.<br />
KRS 61.197 is amended to establish a base revenue for license fees for counties if a city annexes<br />
territory in a county pursuant to this Act and both the city and the county levy a license fee. The<br />
county shall receive at least the same dollar amount of revenue that was generated in the preceding<br />
tax year by the county license fee. After the tax year in which the annexation occurs, if the revenues<br />
generated by both the city and county license fees for that territory decrease below the amount of<br />
revenue generated in that preceding tax year by the county license fee, then the revenue received<br />
by the county shall be reduced proportionately. Any increase in the license fee rate by the city or the<br />
county after the date of the annexation shall be subject to the crediting provisions contained in KRS<br />
61.197.<br />
www.<strong>KLC</strong>.org<br />
13
3) COMMUNITY DEVELOPMENT<br />
HB 321<br />
WEST END OPPORTUNITY PARTNERSHIP<br />
Sponsor: Representative Brandon Reed (R–Hodgenville)<br />
House Bill 321 is a companion bill to House Bill 556 (<strong>2021</strong>). The legislation targets redevelopment<br />
of Louisville’s West End. New sections of KRS Chapter 65 are created to anticipate a tax increment<br />
financing (TIF) district in west Louisville comprised of the communities of Parkland, Shawnee, Park<br />
Duvalle, Russell, Portland, California, Chickasaw, Park Hill, Algonquin, and adjacent areas. The TIF<br />
district would last for 20 years and allow for new development in the area to be financed with future<br />
tax revenues from the increase in property values over base values and increased sales taxes.<br />
Eighty percent (80%) of new local and state tax revenues generated above a base level would be<br />
reinvested in the TIF district over time.<br />
The effort, known as the West End Opportunity Partnership, with spur reinvestment in the<br />
development area. The partnership will: (1) manage and support the revitalization of and investment<br />
in the development area with a focus on projects supported by residents and businesses within the<br />
development area; (2) encourage private investment in businesses and residential projects that<br />
will have a significant impact within the development area; (3) ensure that all projects include the<br />
employment of area residents, both in short-term construction jobs and long-term employment in<br />
businesses locating within the development area; and (4) ensure that all housing projects include<br />
affordable housing in accordance with federal guidelines for low-income families.<br />
The West End Opportunity Partnership shall be governed by a board. The board shall initially<br />
consist of the following members: (1) one member appointed by the governor; (2) one member<br />
appointed by the mayor of the consolidated local government; (3) one member of the legislative<br />
council of the consolidated local government appointed by its members; (4) a representative of the<br />
University of Louisville appointed by its board of trustees; (5) a representative of Simmons College of<br />
Kentucky appointed by its board of trustees; and (6) seven members appointed by the governor, one<br />
member each from the following organizations: (a) NAACP of Kentucky; (b) OneWest in Louisville;<br />
(c) Louisville Urban League; (d) Federal Reserve Bank in Louisville; (e) Volunteers of America in<br />
Louisville; (f) a locally based foundation with assets over $100 million; and (g) a bank with local<br />
assets greater than $1 billion.<br />
The board shall include in its bylaws a process for appointing one member from each of the nine<br />
neighborhoods comprising the development area. The head of economic development for the<br />
consolidated local government and the secretary of the Cabinet for Economic Development, or their<br />
designees, shall serve as nonvoting, ex officio members of the board. The majority of the board shall<br />
reflect the racial majority of the residents living in the development area. The board shall annually<br />
select a chair.<br />
A West End Advisory Council is additionally established as a subcommittee of the West End<br />
Opportunity Partnership. The council shall consist of one resident from each of the nine<br />
neighborhoods located within the development area to represent the communities in decisions on<br />
local projects and initiatives that will impact them directly. The council shall elect its own chairperson,<br />
14 www.<strong>KLC</strong>.org
3) COMMUNITY DEVELOPMENT<br />
adopt bylaws, and establish and evaluate goals and outcomes for economic development and<br />
housing issues in the development area. As a prerequisite to service, each member of the West<br />
End Advisory Council and each appointee to the board of the West End Opportunity Partnership<br />
shall participate in a board-sanctioned training program on the topics of community and economic<br />
development, finance, equity, community engagement, gentrification, and the implications of each<br />
concept.<br />
Pursuant to House Bill 556 (<strong>2021</strong>), prior to any development actions by the West End Opportunity<br />
Partnership, a combined total of $20 million shall be pledged by and received by the West End<br />
Opportunity Partnership from private sector investors and the Louisville Metro consolidated local<br />
government. Upon verification of receipt of the $20 million by the partnership, $10 million shall be<br />
appropriated by the Kentucky General Assembly. Beginning in the calendar year following receipt of<br />
the initial funds and continuing for 20 years, 80% of the incremental revenues in the tax increment<br />
financing district anticipated in House Bill 556 shall be pledged to the West End Opportunity<br />
Partnership by the consolidated local government and the commonwealth.<br />
A local tax increment financing participation agreement shall be executed between the West End<br />
Opportunity Partnership and the consolidated local government pledging incremental revenues<br />
to support implementation of the development plan. The governing body of the consolidated local<br />
government and the Department of Revenue shall release to the West End Opportunity Partnership<br />
local and state incremental tax revenues generated.<br />
The West End Opportunity Partnership shall provide a biennial report to the Interim Joint Committee<br />
on Appropriations and Revenue on or before August 1, 2023, and on or before August 1 of each<br />
odd-numbered year thereafter. The report shall include: (1) an accounting of moneys received from<br />
private sector investors, the consolidated local government, and the commonwealth, including<br />
the party that made the payment; (2) annual financial statements of the West End Opportunity<br />
Partnership, including the current balances of all funds and accounts; (3) the total amount of state tax<br />
revenues and local tax revenues received by the West End Opportunity Partnership for the preceding<br />
year categorized by each type of tax; (4) the operating expenditures incurred by the West End<br />
Opportunity Partnership, including management, investment, legal, or administrative fees incurred;<br />
(5) a list of the projects supported by investments from the West End Opportunity Partnership in<br />
the preceding year and a description of the investment amount contributed for each project; (6)<br />
the amount of bonds issued or other borrowed moneys received by the West End Opportunity<br />
Partnership; and (7) upon request from the General Assembly, copies of the bylaws and any<br />
contracts or agreements in which the West End Opportunity Partnership is a party.<br />
A new section of KRS Chapter 141 is created to establish in the development area an income<br />
tax credit available to owners of residential property in the area equal to the amount in which the<br />
property tax paid on the residential property in a taxable year exceeds the amount of property<br />
tax assessed on the residential property on January 1, <strong>2021</strong>. The credit, an effort to help avoid<br />
gentrification of the area, basically freezes a homeowner’s property taxes at the <strong>2021</strong> level. The tax<br />
credit shall remain available to an owner of residential property, and to any heirs of the owner who<br />
www.<strong>KLC</strong>.org<br />
15
3) COMMUNITY DEVELOPMENT<br />
inherit the property, for 20 years or until the residential property is sold by the owner. The West End<br />
Opportunity Partnership shall develop a program to assist homeowners residing in the development<br />
area to fill out returns or other paperwork required to claim the tax credit and, where needed, enable<br />
homeowners in the development area to timely pay property taxes by lending funds on a short-term<br />
basis until the refundable tax credit is returned to the homeowner.<br />
HB 556<br />
FUNDING WEST END OPPORTUNITY PARTNERSHIP<br />
Sponsor: Representative Danny Bentley (R–Russell)<br />
House Bill 556 is a companion bill to House Bill 321 (<strong>2021</strong>) relating to creation of the West End<br />
Opportunity Partnership targeting redevelopment of Louisville’s West End. Prior to any development<br />
actions by the partnership, a minimum investment of $20 million shall be pledged and received by<br />
the partnership from private sector investors and Louisville-Jefferson County Metro Government, with<br />
a minimum of $5 million pledged and received from Metro Government.<br />
Upon verification of receipt of $20 million by the West End Opportunity Partnership, general<br />
fund moneys in the amount of $10 million shall be appropriated by the General Assembly to the<br />
Department for Local Government for use by the West End Opportunity Partnership for revitalization<br />
of the development area. The Kentucky State Treasurer shall verify receipt by the partnership of the<br />
full $20 million prior to appropriation by the General Assembly of $10 million from the general fund.<br />
If the West End Opportunity Partnership does not receive the full $20 million prior to June 30, 2022,<br />
the General Assembly shall not appropriate $10 million from the general fund.<br />
SB 105<br />
ABANDONED AND BLIGHTED PROPERTY CONSERVATORSHIP<br />
Sponsor: Senator Robby Mills (R–Henderson)<br />
Senate Bill 105, a <strong>KLC</strong> initiative, creates new sections of KRS Chapter 99 to permit court<br />
appointment of a conservator to bring an abandoned and blighted property into compliance with<br />
applicable housing, building, and nuisance code requirements if certain conditions are met. An<br />
abandoned and blighted property is defined as a residential, commercial, or industrial building that<br />
has been continuously vacant for at least one year with significant conditions evidencing blight,<br />
including repeated housing, building, or nuisance code violations.<br />
“Conservator” means a competent entity appointed by a court to take possession of and rehabilitate<br />
an abandoned and blighted building. “Competent entity” is defined as a person or entity, including<br />
a nonprofit corporation, with experience in the rehabilitation of residential, commercial, or industrial<br />
buildings and the ability to provide or obtain the necessary financing for rehabilitation.<br />
As evidence of the blighted condition, the building must meet at least three of the following criteria:<br />
16 www.<strong>KLC</strong>.org
3) COMMUNITY DEVELOPMENT<br />
(1) the building has not been brought into compliance with the housing, building, or nuisance code<br />
requirements of the local government in which it is located within time constraints placed upon the<br />
owner by the appropriate code enforcement agency or agencies; (2) the building is unfit for human<br />
habitation, occupancy, or use; (3) the condition and vacancy of the building materially increases the<br />
risk of fire to the building and to adjacent properties; (4) the building, by reason of neglect or lack of<br />
maintenance, has become a place for the substantial accumulation of trash and debris or a haven<br />
for rodents or other vermin that create potential health and safety hazards; (5) the building is subject<br />
to unauthorized entry leading to potential health and safety hazards, and either the owner has failed<br />
to take reasonable and necessary measures to secure the building or the local government has<br />
secured the building in order to prevent such hazards after the owner has failed to do so; (6) the<br />
building is an attractive nuisance to children or for illicit purposes, including drug use and vagrancy;<br />
or (7) the building, because of its dilapidated appearance or other conditions, substantially negatively<br />
affects the economic well-being of residents or businesses in close proximity to the building.<br />
Certain properties are ineligible for conservatorship including property that has been legally occupied<br />
within the previous 12 months; property owned by the current owner for less than six months;<br />
property actively marketed within the previous 60 days; and property subject to a mortgage or<br />
pending foreclosure. If all criteria are met, a local government may file a petition with the circuit court<br />
in the county in which the building is located for appointment of a conservator to take possession of<br />
and rehabilitate the building with notice provided to all interested parties, including the owner of the<br />
building and any lienholders.<br />
Senator Robby Mills (R-Henderson)<br />
speaks on the Senate floor for passage<br />
of Senate Bill 105.<br />
www.<strong>KLC</strong>.org<br />
17
3) COMMUNITY DEVELOPMENT<br />
The petition must include the name and last known address of the owner of the vacant property;<br />
copies of all code violations with proof of service; a preliminary plan for rehabilitation to bring the<br />
building into compliance with code requirements, including the current condition of the building,<br />
photographs, and initial cost estimates; anticipated funding sources; and an estimated timeline for<br />
completion. The petition must additionally include a recommendation as to which person or entity<br />
should be appointed conservator, including the qualifications of the person or entity.<br />
After the petition is filed, the court shall hold a hearing with notice provided to all interested<br />
parties. Any party can present evidence to support or contest the petition. The court may appoint a<br />
competent entity as conservator if the property meets the required conditions and the owner of the<br />
building has not come forward to make repairs. In appointing a conservator, the court may consider<br />
recommendations contained in the petition or presented by any interested party.<br />
If the court finds after a hearing that the conditions for conservatorship have been established but the<br />
owner represents that the conditions will be abated in a reasonable period, the court may allow the<br />
owner to proceed to remedy the conditions. If the owner proceeds, the court shall require the owner<br />
to post a bond in the amount of the repair costs estimated in the petition as a condition to retaining<br />
possession of the building. The court must also enter an order providing if the conditions are not<br />
abated by the owner by a specific date, or that other specified remedial activities have not occurred<br />
by a specific date or dates, an order appointing a conservator will be entered.<br />
Following appointment, a conservator must develop a final plan for rehabilitation of the building<br />
for submission to the court and all parties that can include everything from repairs to potential<br />
demolition. Any party can comment on or request a hearing on the final plan. Thereafter, the<br />
conservator must update the court and all interested parties every six months on the status of the<br />
project.<br />
Senator David Givens (R-Greensburg),<br />
Senator Robert Stivers (R-Manchester), and<br />
Representative David Osborne (R-Prospect).<br />
Photo courtesy LRC Public Information.<br />
18 www.<strong>KLC</strong>.org
3) COMMUNITY DEVELOPMENT<br />
The conservator shall have all powers and duties necessary to bring the building into compliance<br />
with all applicable housing, building, and nuisance code requirements. The conservator can provide<br />
the necessary funds for rehabilitation of the building, borrow money, or incur indebtedness to cover<br />
the costs of rehabilitation. To facilitate the borrowing of funds for the costs of rehabilitation, the<br />
court shall grant priority status to a lien given to secure payment on a debt incurred for purposes of<br />
rehabilitation. If funds are provided by the conservator, the conservator will be reimbursed upon sale<br />
of the property.<br />
After implementation of the final plan, the conservator shall submit to the court and all parties a full<br />
accounting of all actions taken and expenditures incurred. The conservator may then petition the<br />
court for authorization to sell the property. Any sale of the property is subject to the supervision and<br />
approval of the court.<br />
The court may order sale of the property if it finds the conditions that were the grounds for the<br />
petition have been corrected by the conservator, the owner has not successfully petitioned the<br />
court for termination of the conservatorship, and notice of the proposed sale and an opportunity for<br />
a hearing has been provided to all parties. If no party objects to the proposed sale or requests a<br />
hearing, the court may proceed without a hearing.<br />
The court may authorize sale of the property free and clear of all liens, claims, and encumbrances<br />
provided the proceeds of the sale are distributed in accordance with the following priorities: (1)<br />
costs and expenses of sale; (2) state and local government tax liens, unless priority is waived by a<br />
local government; (3) principal and interest on any borrowing or incurrence of indebtedness granted<br />
priority over existing liens and security interests; (4) costs of rehabilitation; (5) properly recorded local<br />
government code enforcement liens; (6) other valid liens and security interests in accordance with<br />
their priority; and (7) the owner. If the owner cannot be located, any proceeds from the sale which<br />
belong to the owner shall be presumed to be abandoned and unclaimed and shall be subject to the<br />
custody and control of the commonwealth. The conservator may thereafter petition the court for<br />
termination of the conservatorship.<br />
Senate Bill 205 has a delayed effective date of January 1, 2022.<br />
www.<strong>KLC</strong>.org<br />
19
4) COVID-RELATED ACTIONS<br />
Note: House Bill 1, Senate Bill 1, and Senate Bill 2, enacted on February 2, <strong>2021</strong>, and House<br />
Joint Resolution 77 are subject to litigation filed in Franklin Circuit Court. The court issued a<br />
temporary injunction, and as of April 15, <strong>2021</strong>, House Bill 1, Senate Bill 1, Senate Bill 2, and<br />
House Joint Resolution 77 had no legal force pending further legal proceedings.<br />
HB 1<br />
OPERATING PLANS FOR REOPENING THE ECONOMY<br />
Sponsor: Representative Bart Rowland (R–Tompkinsville)<br />
House Bill 1 permits any business, for-profit or not-for-profit organization, local government,<br />
association, or any school or school district to remain open and operational through January 31,<br />
2022, notwithstanding any state law or executive order to the contrary, so long as it obtains and<br />
follows a comprehensive operating plan that: (1) meets or exceeds all applicable guidance issued by<br />
the Centers for Disease Control and Prevention (CDC) or the executive branch of state government,<br />
whichever is least restrictive; (2) details how the entity will foster the safety of employees, customers,<br />
attendees and patrons, including social distancing requirements; and (3) is posted in a conspicuous<br />
place on the main entrance door of the physical location of the entity as well as on its website, if a<br />
website exists.<br />
The House passed House Bill 1, sponsored by Representative Bart<br />
Rowland (R-Tompkinsville), on January 7.<br />
Photo courtesy LRC Public Information.<br />
20 www.<strong>KLC</strong>.org
4) COVID-RELATED ACTIONS<br />
The business, for-profit or not-for-profit organization, local government, association, school, or school<br />
district may prepare the plan itself or utilize a plan prepared by a local or state government, local or<br />
state chamber of commerce, trade association, or any other recognized affiliated organization. No<br />
state or local agency shall enforce restrictions that exceed current applicable guidelines issued by<br />
the CDC or the executive branch of state government, whichever is least restrictive.<br />
Interest and penalties on unpaid employer contributions pursuant to KRS 341.300 shall not accrue,<br />
shall not be charged against an employer, shall not be considered due and owing, and shall not be<br />
collected by the Labor Cabinet through December 31, <strong>2021</strong>.<br />
HJR 77<br />
EXTENSION OF COVID EMERGENCY ACTIONS<br />
Sponsor: Representative David Osbourne (R–Prospect)<br />
House Joint Resolution 77 ratifies and extends in whole or in part eight executive orders issued<br />
by the governor and many specific orders and administrative regulations that relate to the state’s<br />
response to the COVID-19 pandemic. Senate Bill 1 (<strong>2021</strong>) limits the orders to 30 days unless the<br />
General Assembly approves an extension. The resolution extends some of the emergency actions<br />
and regulations for 90 days and others for 30 days from the effective date of the Act.<br />
The Resolution has no immediate force or effect pending litigation currently pending in the Franklin<br />
Circuit Court.<br />
SB 1<br />
LIMITATION OF EMERGENCY ORDERS<br />
Sponsor: Senator Matt Castlen (R–Owensboro)<br />
Senate Bill 1 amends KRS 39A.090 to limit to 30 days executive orders, administrative regulations,<br />
or other directives issued by the governor under the provisions of KRS Chapter 39A relating to<br />
statewide emergency management programs unless the General Assembly approves an extension,<br />
modification, or termination. The measure applies to any executive order or directive that (1) places<br />
restrictions on (a) the in-person meeting or functioning of elementary, secondary, or postsecondary<br />
educational institutions; (b) private businesses or nonprofit organizations; (c) political, religious,<br />
or social gatherings; (d) places of worship; or (e) local governments; or (2) imposes mandatory<br />
quarantine or isolation requirements.<br />
Upon expiration of an executive order or other directive declaring an emergency, the governor shall<br />
not declare a new emergency or continue to implement any of the powers enumerated in KRS<br />
Chapter 39A based upon the same or substantially similar facts and circumstances as the original<br />
declaration without General Assembly approval. The General Assembly, by joint resolution, may<br />
terminate an emergency declaration at any time.<br />
www.<strong>KLC</strong>.org<br />
21
4) COVID-RELATED ACTIONS<br />
KRS 39A.100 is amended to require the governor to report to the General Assembly, if in session,<br />
or to the <strong>Legislative</strong> Research Commission if the General Assembly is not in session. The governor<br />
must include on a form provided by the Commission: (1) all expenditures relating to contracts issued<br />
during the emergency under any provision for which a state agency does not solicit bids or proposals<br />
for a contract; and (2) all revenues received from the federal government in response to the declared<br />
emergency, any expenditures or expenditure plan for the federal funds, the state agency or program<br />
that was allocated the federal funds, and any state fund expenditures required to match the federal<br />
funds. The report must be filed within 30 days of a declared emergency and every 30 days thereafter.<br />
Senator Matt Castlen (R-Owensboro) discusses<br />
Senate Bill 1 with the Senate State and Local<br />
Government Committee on January 6.<br />
Photo courtesy LRC Public Information.<br />
SB 2<br />
LIMITATION OF EMERGENCY REGULATIONS<br />
Sponsor: Senator Stephen West (R–Paris)<br />
Senate Bill 2 amends various provisions of KRS Chapter 13A to add requirements for promulgation<br />
of emergency administrative regulations. An administrative body must clearly demonstrate, through<br />
documentary evidence submitted with the filing of an emergency administrative regulation, that the<br />
regulation must be placed into effect immediately in order to: (1) meet an imminent threat to public<br />
health, safety, welfare, or the environment; (2) prevent an imminent loss of federal or state funds; (3)<br />
meet an imminent deadline for the promulgation of an administrative regulation that is established by<br />
state statute or federal law; or (4) to comply with an executive order issued under KRS Chapter 39A.<br />
An emergency administrative regulation is temporary in nature and will expire or be replaced by an<br />
ordinary administrative regulation.<br />
22 www.<strong>KLC</strong>.org
4) COVID-RELATED ACTIONS<br />
Senate Bill 2 amends KRS 214.020, relating to administrative regulations promulgated by the<br />
Cabinet for Health and Family Services necessary to prevent the introduction or spread of infectious<br />
or contagious disease or diseases. Any administrative regulation promulgated under KRS 214.020<br />
could be in effect no longer than 30 days if the administrative regulation places restrictions on<br />
the in-person meeting or functioning of: (1) elementary, secondary, or postsecondary educational<br />
institutions; (2) private businesses or nonprofit organizations; (3) political, religious, or social<br />
gatherings; or (4) places of worship, or if the administrative regulation imposes mandatory quarantine<br />
or isolation requirements. The administrative regulation must include the penalty and appeal and due<br />
process rights for violation of the regulation.<br />
The bill also includes a <strong>KLC</strong> initiative stating that the Administrative Regulation Review<br />
Subcommittee may determine that an administrative regulation is deficient if the agency enacting or<br />
requesting the regulation did not property notify impacted parties.<br />
Senator Steve West (R-Paris) testifies for Senate Bill 2 in the<br />
January 6 Senate State and Local Government Committee.<br />
Photo courtesy LRC Public Information.<br />
SB 5<br />
LIABILITY PROTECTIONS<br />
Sponsor: Senator Robert Stivers (R–Manchester)<br />
Senate Bill 5 creates a new section of KRS Chapter 39A to provide liability protections for owners<br />
of businesses and providers of essential services against any COVID-related claim for an act or<br />
omission arising from COVID-19 that accrued on or after an emergency was declared on March<br />
6, 2020, and until the emergency declaration is withdrawn, is revoked, or lapses. “Arising from<br />
COVID-19” is defined to mean an injury or harm caused by or resulting from the actual, alleged, or<br />
possible exposure to, transmission of, or contraction of COVID-19, or services, treatment, or other<br />
action performed to limit or prevent the spread of COVID-19.<br />
www.<strong>KLC</strong>.org<br />
23
4) COVID-RELATED ACTIONS<br />
Any essential service provider during the declared emergency of the COVID-19 pandemic shall not<br />
be liable for any COVID-19 claim. However, nothing limits any liability of an essential service provider<br />
for gross negligence or wanton, willful, malicious, or intentional conduct. Essential service providers<br />
shall be considered an agent of the commonwealth for the limited purpose of providing essential<br />
services arising from COVID-19. Essential service providers include local government agencies<br />
and political subdivisions; organizations that provide charitable and social services; health care<br />
providers; elementary and secondary schools, whether public or private; child care service providers;<br />
home-based care and services; individuals and businesses that produce, supply, prepare, and sell<br />
food; individuals and businesses needed for transportation; financial institutions; mail and shipping<br />
services; as well as other entities.<br />
Portions of the Act pertaining to liability protection are retroactive to the declaration of an emergency<br />
on March 6, 2020, and they shall be repealed effective December 31, 2023. Any COVID-19 claim for<br />
personal injury against an essential service provider shall be brought within the time set out in KRS<br />
413.149. If any part of the Act is held unconstitutional, the remaining parts shall remain in force.<br />
An emergency is declared. Senate Bill 5 became law on April 11, <strong>2021</strong>.<br />
Senator Robert Stivers (R-Manchester)<br />
speaks on the floor.<br />
Photo courtesy LRC Public Information.<br />
24 www.<strong>KLC</strong>.org
5) ECONOMIC DEVELOPMENT<br />
HB 249<br />
FILM INDUSTRY TAX CREDIT<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 amends KRS 141.383 to reinstate the film industry tax credit for film and television<br />
production in Kentucky with a $75 million annual cap for calendar year 2022 and each year<br />
thereafter. Beginning January 1, 2022, to qualify for the refundable credit, all applicants must begin<br />
production within six months of filing an application and complete production within two years of<br />
their production start date. A new subchapter 61 of KRS Chapter 154 moves the application and<br />
approval process related to the film industry tax credit to the Economic Development Cabinet from<br />
the Tourism, Arts, and Heritage Cabinet effective January 1, 2022.<br />
HB 249<br />
QUALIFIED NONRESIDENT EMPLOYEES<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 creates a new section of KRS 154, subchapter 20 to give the secretary of the Cabinet<br />
for Economic Development the authority to consider for review applications to the Cabinet for tax<br />
incentives under subchapters 12, 22, 23, 24, 25, 26, 27, 28, 32, or 34 of KRS Chapter 154 a resident<br />
of one of Kentucky’s seven bordering states as a qualified employee for a new full-time position<br />
essential to an approved economic development project in Kentucky no more than 25 miles from the<br />
boundary line of the bordering state.<br />
HB 320<br />
BROADBAND DEPLOYMENT<br />
Sponsor: Representative Brandon Reed (R–Hodgenville)<br />
House Bill 320 as amended by House Bill 382 (<strong>2021</strong>) creates a new section of KRS Chapter 278<br />
to allow rural electric cooperatives regulated by the Public Service Commission to qualify for funds<br />
through Kentucky’s Broadband Deployment Fund for deployment of broadband service through an<br />
affiliate to unserved and underserved households and businesses. The measure builds on legislation<br />
the General Assembly passed in 2020 that established the Broadband Deployment Fund in the State<br />
Treasury. The Kentucky Infrastructure Authority administers the fund to provide grants to government<br />
agencies and private sector entities to construct infrastructure for the deployment of broadband<br />
service to unserved and underserved areas. Rural electric cooperatives may access and leverage<br />
federal funding to extend and enhance the availability of broadband service in Kentucky to residents<br />
who are currently unserved or underserved.<br />
“Unserved area” is defined by the legislation to mean any project area where fixed, terrestrial<br />
broadband service with a minimum of 10 megabits per second downstream and one megabit per<br />
second upstream is not available. “Underserved area” means any project area where fixed, terrestrial<br />
www.<strong>KLC</strong>.org<br />
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5) ECONOMIC DEVELOPMENT<br />
broadband service with a minimum of 25 megabits per second downstream and three megabits per<br />
second upstream is not available.<br />
“Affiliate” is defined by KRS 278.010 to mean a person who controls or is controlled by, or is under<br />
common control with, a utility. “Person” includes natural persons, partnerships, corporations, and two<br />
or more persons having a joint or common interest.<br />
A rural electric cooperative, known as a distribution cooperative under KRS Chapter 279, may<br />
facilitate the operation of an affiliate engaged exclusively in the provision of broadband service to<br />
unserved or underserved households and businesses by: (1) leasing excess capacity on any fiber<br />
optic cable used to support the distribution cooperative’s distribution system; (2) issuing securities or<br />
evidences of indebtedness in an amount not to exceed 25% of the net book value of its assets, the<br />
proceeds of which shall be used for the exclusive purpose of capitalizing the affiliate; or (3) pledging<br />
up to 25% of the net book value of its assets as collateral for a loan entered into by the affiliate for<br />
the purpose of providing broadband services. The Public Service Commission is required to approve<br />
the leasing of excess capacity, the issuing of securities or evidences of indebtedness, or the pledging<br />
of assets upon a finding the proposal is in the public interest. The commission is additionally required<br />
by the legislation to promulgate administrative regulations prior to December 31, <strong>2021</strong>, regarding<br />
attachments to poles under its jurisdiction, including those necessary for the provision of broadband<br />
service.<br />
The legislation appropriates $250 million in federal funds in Fiscal Year <strong>2021</strong>-2022 to the Broadband<br />
Deployment Fund to provide grants to government agencies and private entities to deploy broadband<br />
service in unserved and underserved areas. No more than $50 million can be awarded before April<br />
1, 2022. Funding for projects shall be awarded based on the following criteria in the order listed: (1)<br />
projects in underserved areas or unserved areas where local, state, or federal broadband funds are<br />
not currently designated; (2) projects within underserved areas or unserved areas where local, state,<br />
or federal broadband funds are inadequate; and (3) projects that reach the customers that are the<br />
least economical to serve.<br />
The legislation additionally appropriates federal funds from the State Fiscal Recovery Fund of<br />
the American Rescue Plan Act in the amount of $50 million in Fiscal Year 2020-<strong>2021</strong> to be used<br />
for projects that provide broadband service in furtherance of securing economic development<br />
opportunities for commercial and industrial customers.<br />
All funded projects will require a match of not less than 50% of the total project cost, which can be<br />
private funds or from a city, county, urban county government, or consolidated local government. A<br />
request for proposals shall be issued for projects.<br />
The agency administering the broadband deployment fund shall promulgate administrative<br />
regulations to develop a process for receiving and recording complaints relating to insufficient<br />
broadband service; reporting information collected; and referring complaints to the Office of the<br />
Attorney General, Federal Communications Commission, or Federal Trade Commission, as<br />
appropriate.<br />
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5) ECONOMIC DEVELOPMENT<br />
The agency shall additionally report to the <strong>Legislative</strong> Research Commission on a quarterly basis,<br />
beginning October 1, <strong>2021</strong>, and the first day of each quarter thereafter, the following information: the<br />
location, by county, for each consumer complaint related to insufficient broadband service, including<br />
a brief description of the complaint; the broadband provider; the response of the broadband provider;<br />
whether the complaint was resolved to the satisfaction of the consumer; and whether a referral was<br />
made to the Office of the Attorney General, Federal Communications Commission, or Federal Trade<br />
Commission.<br />
An emergency is declared. House Bill 320 as amended by House Bill 382 became law on March 30,<br />
<strong>2021</strong>, when delivered to the secretary of state.<br />
Representative Brandon Reed<br />
(R-Hodgenville) in committee.<br />
Photo courtesy LRC Public Information.<br />
HB 382<br />
REGIONAL DEVELOPMENT AGENCY ASSISTANCE FUND<br />
Sponsor: Representative Richard Heath (R–Mayfield)<br />
House Bill 382 amends KRS 96.895 and 96.905 to revise the distribution formula and permitted use<br />
of funds in the Regional Agency Assistance Fund. The fund currently receives $6 million per year<br />
from the Tennessee Valley Authority (TVA) by way of the General Fund for use by cities, counties,<br />
and school districts within fund-eligible Kentucky counties in the TVA service area. The payment is<br />
made to the eligible counties by TVA in-lieu of payment of property taxes. KRS 96.895 is amended to<br />
require the funds to be distributed equally among the approximately 14 fund-eligible counties.<br />
KRS 96.905 is amended to prohibit the use of funds distributed by the Regional Development<br />
Agency Assistance Program for operational expenses and to require applications for grants from<br />
the Regional Development Agency Assistance Fund as administered by the Department for Local<br />
Government to be made by the legislative bodies of one or more counties entitled to receive money.<br />
Applications must include any recipient agency as a co-applicant and a concurrence letter from each<br />
legislative body entitled to receive money.<br />
www.<strong>KLC</strong>.org<br />
27
5) ECONOMIC DEVELOPMENT<br />
Senator Mike Nemes (R-Shepherdsville)<br />
speaks on the Senate floor.<br />
Photo courtesy LRC Public Information.<br />
SB 146<br />
EMPLOYMENT OFFICES<br />
Sponsor: Senator Mike Nemes (R–Shepherdsville)<br />
Senate Bill 146 repeals KRS 151B.285 and reenacts it as a new section of KRS Chapter 336<br />
to transfer administration and supervision of state employment offices from the Education and<br />
Workforce Development Cabinet to the Labor Cabinet and requiring the creation of regional<br />
employment offices. Twelve regional full-time, free public employment offices shall be open, fully<br />
operational, and staffed by properly trained unemployment insurance specialists on or before<br />
April 15, <strong>2021</strong>, in each of the regions where the secretary has determined there is an average<br />
unemployment rate above 5% for the preceding six-month period ending either on June 30 or<br />
December 31. The Labor Cabinet may, at its discretion, open and operate additional free public<br />
employment satellite offices on a full or partial schedule.<br />
An emergency is declared. Senate Bill 146 became law on April 5, <strong>2021</strong>, when signed by the<br />
governor.<br />
28 www.<strong>KLC</strong>.org
6) EMERGENCY SERVICES<br />
HB 44<br />
MENTAL HEALTH SERVICES FOR FIREFIGHTERS<br />
Sponsor: Representative Kim Banta (R‒Fort Mitchell)<br />
House Bill 44 amends KRS 210.365 to make firefighters eligible for crisis intervention team training<br />
(CIT) along with law enforcement officers currently eligible for CIT training. “Crisis intervention team<br />
training” means a 40-hour training curriculum based on best practices for intervention with persons<br />
who may have a mental illness, substance use disorder, an intellectual disability, developmental<br />
disability, or dual diagnosis that meets requirements approved by the Kentucky Fire Commission and<br />
the Kentucky Law Enforcement Council.<br />
KRS 95A.220 is amended to designate funds within the Firefighters Foundation Program Fund<br />
administered by the Fire Commission for reimbursement of costs incurred by a firefighter for<br />
treatment of a post-traumatic stress injury or post-traumatic stress disorder diagnosed by a<br />
psychiatrist, psychologist, or certified professional counselor caused by an event, or an accumulation<br />
of events, that occurred in the course and scope of his or her employment as a full-time career or<br />
volunteer firefighter, regardless of whether or not there is an initial physical injury. Post-traumatic<br />
stress injury and post-traumatic stress disorder shall be defined as set out by the American<br />
Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders. A post-traumatic<br />
stress injury that arises solely from a legitimate personnel action such as transfer, promotion,<br />
demotion, or termination shall not be considered a compensable injury.<br />
Following diagnosis, if a firefighter seeks mental health treatment, he or she may submit to the Fire<br />
Commission corresponding receipts for reimbursement of medical bills paid by the firefighter after<br />
use of in-network health insurance. Receipts may be submitted for a period of 12 months from the<br />
time a firefighter seeks mental health treatment. Reimbursement shall be made from moneys in the<br />
Firefighters Foundation Program Fund allocated for firefighter mental health treatment.<br />
HB 120<br />
CONSOLIDATED EMERGENCY SERVICES DISTRICTS<br />
Sponsor: Representative Ed Massey (R–Hebron)<br />
House Bill 120 creates new sections of KRS Chapter 75A to establish processes for forming a<br />
consolidated emergency services district. A new consolidated emergency services district may be<br />
formed by one of the following:<br />
(1) The boards of any two or more fire protection districts established under KRS Chapters<br />
75 or 273, any special district whose services are subject to the licensure provisions of KRS Chapter<br />
311A, or any rescue squads established under KRS Chapter 39F adopting a resolution agreeing to<br />
and requesting the creation of a consolidated emergency services district; or<br />
(2) The boards of any fire protection districts established under KRS Chapters 75 or 273, any<br />
special district whose services are subject to the licensure provisions of KRS Chapter 311A, or any<br />
rescue squads established under KRS Chapter 39F that have merged within the five years prior to<br />
the effective date of this Act that would have been eligible to consolidate under the provisions of this<br />
www.<strong>KLC</strong>.org<br />
29
6) EMERGENCY SERVICES<br />
Act adopting a resolution agreeing to the formation of a consolidated emergency services district and<br />
requesting the creation of a consolidated emergency services district.<br />
Upon adoption of resolutions, the governing bodies shall notify the county fiscal court or consolidated<br />
local government with jurisdiction over the proposed district and request the formation of a<br />
consolidated emergency services district. Any county fiscal court or consolidated local government<br />
on receipt of a request from two or more fire protection districts, special districts whose services<br />
are subject to the licensure provisions of KRS Chapter 311A, or rescue squads established under<br />
KRS Chapter 39F may create a consolidated emergency services district in their jurisdiction by<br />
adopting an ordinance approving the establishment of a consolidated emergency services district<br />
and authorizing any relevant fire protection district to join if its governing authority has approved it<br />
to join the consolidated district. The ordinance shall describe the boundaries by metes and bounds<br />
and name the consolidated district. No consolidated emergency services district shall take effect less<br />
than 60 days from completing the required elements for establishing the district.<br />
The county fiscal court or consolidated local government shall notify all planning commissions, cities,<br />
and area development districts within whose jurisdiction the approved service area is located and<br />
any state agencies required by law to be notified of the proposal for the creation of the taxing district<br />
within 30 days from adopting the ordinance authorizing creation of the district. The creation of a<br />
consolidated emergency services taxing district shall be of legal effect only after a certified copy of<br />
the ordinance creating the taxing district is filed with the county clerk.<br />
Upon passage of an ordinance by the county fiscal court or consolidated local government creating<br />
the district, the affairs of the district shall be conducted by a board of trustees consisting of seven<br />
members, four to be elected by the members of the district and three to be appointed by the county<br />
judge/executive or chief executive officer of the county. Two members of the board shall be elected<br />
by the firefighters from the departments within the district who shall be active firefighters within<br />
the district. Two members shall be property owners of real or personal property subject to the fire<br />
protection tax pursuant to KRS 75.040 who shall be elected by the property owners of the district,<br />
reside in the district, and not be active firefighters. The county judge/executive of the county in which<br />
the district is located shall, with the approval of the fiscal court, appoint three members of the board.<br />
Appointment and election of trustees to a newly created district shall be completed within 60 days of<br />
the passage of the ordinance creating the district.<br />
The board shall meet at least once a month at a time and place designated by the board and all<br />
meetings shall be open to the public. The chief of the consolidated emergency services district shall<br />
be appointed by the board to manage the affairs of the district, subject to directives and guidance<br />
from the board. He or she shall attend all sessions of the board and execute all orders of the board.<br />
Upon the creation of a district, the trustees of a district are authorized to provide fire services,<br />
emergency medical services subject to KRS Chapter 311A, or rescue services pursuant to KRS<br />
Chapter 39F and to levy a tax upon the property in the district. The property taxed shall be subject<br />
to county tax, and the tax levied by the board upon creation of the district shall be approved by the<br />
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6) EMERGENCY SERVICES<br />
county fiscal court or consolidated local government having jurisdiction over the district at the time of<br />
passage of the ordinance creating the district. The tax shall not exceed $0.10 per $100 of assessed<br />
valuation as assessed for county taxes for the purpose of defraying the expenses for the provision of<br />
fire services or rescue services.<br />
The district that establishes and operates an emergency ambulance service and is the primary<br />
service provider in the district may levy a tax upon the property in the district. The tax to be levied<br />
shall be proposed by the board and approved by the county fiscal court or consolidated local<br />
government having jurisdiction over the district. The tax shall not exceed $0.20 per $100 of valuation<br />
as assessed for county taxes for the purpose of defraying the expenses of the provision of fire<br />
services, emergency medical services, or rescue services.<br />
The board of trustees, upon assumption of office, shall assume all the duties, responsibilities, and<br />
liabilities of all previous entities that have been merged into the district. The territories of former<br />
districts and unincorporated territory shall become special taxing districts until their indebtedness has<br />
been relieved. Any agreements established by former entities now merged into the district for the<br />
provision of services outside the district as established shall remain in effect for terms of service and<br />
duration as the agreement created has specified.<br />
If a majority of the entities that entered into a consolidated emergency services district were<br />
participating employers in the County Employees Retirement System (CERS) prior to entering into<br />
the district, the district shall apply to become a participating member in CERS in accordance with<br />
KRS 78.530. If the district is not required to apply to participate in CERS or does not voluntarily<br />
apply to participate in CERS, any employee who was participating in CERS through an entity that<br />
is entering into or petitioning to join in a consolidated emergency services district shall remain a<br />
participating employee in CERS in the existing retirement tier and hazardous duty classification for<br />
the remainder of his or her employment with the district.<br />
Representative Jason Petrie (R-Elkton) speaks with<br />
Representative C. Ed Massey (R-Hebron) in the House.<br />
Photo courtesy LRC Public Information.<br />
www.<strong>KLC</strong>.org<br />
31
7) ENVIRONMENTAL PROTECTION<br />
HB 249<br />
PETROLEUM STORAGE TANKS<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 amends KRS 224.60-142 to extend the registration of petroleum storage tanks<br />
through July 15, 2025.<br />
HB 303<br />
UNDERGROUND FACILITY PROTECTION<br />
Sponsor: Representative Sal Santoro (R–Florence)<br />
House Bill 303 amends several provisions of KRS 367.4901 to 367.4917 relating to underground<br />
facility protection and operation of the Kentucky Contact Center. Most municipal utilities maintain<br />
their own notification centers for locate requests and are not operator members of the Kentucky<br />
Contact Center. House Bill 303 does not mandate membership by municipal utilities, but provisions<br />
in House Bill 303 relating to the operation of protection notification centers apply to municipal utilities<br />
that maintain a notification center. “Protection notification center” is defined to mean an operatorprovided<br />
notification center through which an excavator can contact the operator to enable the<br />
operator to provide the excavator with the approximate location of underground facilities.<br />
KRS 367.4909 is amended to expand the two-day permissible time in which to provide a positive<br />
response to a facility locate request to include any time prior to the scheduled excavation start date<br />
if agreed upon by an operator and an excavator, excluding large project requests, design information<br />
requests, emergency locate requests, and unmapped facilities. “Positive response” is defined as<br />
an automated or written communication system provided by each protection notification center<br />
for all locate requests the center receives that allows excavators, locators, operators, and other<br />
interested parties to determine the status of locating an underground facility and requires response<br />
and verification by operators and excavators to comply with their respective requirements under the<br />
Underground Facility Damage Prevention Act of 1994.<br />
KRS 367.4911 is amended to define procedure if an operator fails to give a positive response to a<br />
locate request within the time provided. The excavator must submit a second notice to the protection<br />
notification center. If an operator fails to give a positive response to a second request within one<br />
working day of receipt, an excavator that has fully complied shall not be deemed liable for any<br />
damages to an underground facility that would have been located if the operator had complied with<br />
its duties under the Act, except for damages to a person or an underground facility due to negligence<br />
or intentional misconduct of an excavator. This provision shall not apply to any underground facility<br />
used to transport gas or hazardous liquid subject to federal pipeline safety laws.<br />
KRS 367.4913 is amended to require protection notification centers to maintain locate request<br />
information for five years and provide, in addition to current requirements: (1) an emergency<br />
contact number for incidents occurring outside the working day; (2) a positive response system for<br />
excavators, locators, operators, and other interested parties to determine the status of locating an<br />
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7) ENVIRONMENTAL PROTECTION<br />
underground facility; (3) an identification number for each location request and the names of the<br />
facility owners or operators to be notified; (4) contact information for the protection notification center<br />
on its website; and (5) public awareness education and damage prevention programs in the manner<br />
and amount determined by each protection notification center.<br />
House Bill 303 has a delayed effective date of January 1, 2022.<br />
SB 86<br />
REGULATION OF OPEN DUMPS<br />
Sponsor: Senator Phillip Wheeler (R–Pikeville)<br />
Senate Bill 86 amends KRS 224.40-100 and KRS 30A.190 to provide options for cleanup of open<br />
dumps by local governments. A local government that has not established a code enforcement board<br />
may adopt an ordinance to prohibit open dumping and impose a civil fine of not less than $250 and<br />
not more than $500 on any person who transports or disposes of waste at any site or facility that<br />
does not have a waste disposal permit issued by the Energy and Environment Cabinet. Penalties<br />
shall be imposed by the district court in the county where the offense occurred, collected by the<br />
circuit court clerk, and transferred in their entirety to the treasurer of the county in which the offense<br />
occurred to be used for the abatement, cleanup, and restoration of the open dump site. The owner,<br />
occupant, or person having control or management over the property shall not be penalized if he<br />
or she did not generate the waste or knowingly allow the disposal of solid waste on the property<br />
and has made reasonable efforts to prevent the disposal of solid waste by other persons onto the<br />
property.<br />
KRS 65.8808 is amended to expressly include littering and open dumping of solid waste as offenses<br />
subject to enforcement by a local government code enforcement board.<br />
KRS 224.99.010 is amended to require fines imposed and collected under the environmental<br />
protection statutes for depositing leaves, clippings, prunings, garden refuse, or household waste<br />
materials in any litter receptacle to be transferred to the county treasurer where the offense occurred<br />
and placed in a fund for solid waste cleanup.<br />
KRS 431.100 is amended to require 60% of fines collected for violation of KRS 512.070 (criminal<br />
littering), 433.753 (criminal littering on public highways), and 433.757 (criminal littering on public<br />
waters) to be transferred by the circuit clerk to the treasurer of the county in which the offense<br />
occurred for the cleanup and abatement of litter and open dumps, and 40% to the agency that issued<br />
the citation.<br />
Nothing in Senate Bill 86 shall limit the authority of the Energy and Environment Cabinet to regulate<br />
the transport, permitting, or disposal of solid waste.<br />
www.<strong>KLC</strong>.org<br />
33
8) HISTORIC PRESERVATION & COMMEMORATION<br />
HB 249<br />
HISTORIC TAX CREDIT PROJECTS<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 as amended by House Bill 321 (<strong>2021</strong>) creates a new section of KRS Chapter 171 to<br />
authorize the Kentucky Heritage Council to award one application prior to December 31, <strong>2021</strong>, for<br />
preliminary approval of a major certified rehabilitation for a tax credit against the individual income,<br />
corporate income, or limited liability entity taxes imposed pursuant to KRS 141.020, 141.040, or<br />
141.0401. “Certified rehabilitation” means a completed substantial rehabilitation of a certified historic<br />
structure that meets the United States Secretary of the Interior’s Standards for Rehabilitation.<br />
The major certified rehabilitation must contain the following characteristics: (1) historic structure<br />
listed on the National Register of Historic Places on or before December 31, 1981; (2) size exceeds<br />
300,000 square feet; and (3) total project costs exceed $50 million. Substantial rehabilitation of the<br />
structure must begin prior to December 31, <strong>2021</strong>. The application for preliminary approval must<br />
reflect that following substantial rehabilitation, the certified historic structure will be used as a hotel,<br />
tourism destination, or other use supporting or relating to the promotion of tourism to and within the<br />
commonwealth. The proposed project is reported to be the Seelbach Hotel in Louisville.<br />
The tax credit is limited to the first $30 million of qualified rehabilitation expenses as defined in KRS<br />
171.397.House Bill 249 additionally amends KRS 171.396 to increase the annual tax credit cap for<br />
rehabilitation of a historic structure from $5 million to $100 million for applications received on or<br />
after April 30, 2022, with 25% of the credit cap to be awarded to owner-occupied residential property<br />
and 75% to property other than owner-occupied residential property, including a major certified<br />
rehabilitation project. The major certified rehabilitation shall be considered in determining whether the<br />
certified rehabilitation credit cap has been met.<br />
HB 556<br />
250th ANNIVERSARY COMMEMORATION COMMISSIONS<br />
Sponsor: Representative Danny Bentley (R–Russell)<br />
House Bill 556 creates new sections of KRS Chapter 448 to establish three historic commemoration<br />
commissions to recognize historic events in Kentucky’s early history: the Harrodsburg<br />
Sestercentennial Commission, Kentucky State Parks Centennial Commission, and the Kentucky<br />
Sestercentennial Commission.<br />
Harrodsburg Sestercentennial Commission<br />
The Harrodsburg Sestercentennial Commission is established to plan, develop, and coordinate<br />
events and other activities related to the 250th anniversary in 2024 of the founding of Harrodsburg.<br />
The commission shall be attached to the Kentucky Historical Society for administrative purposes.<br />
To accomplish its charge, the commission shall: (1) plan and implement events for a yearlong<br />
sestercentennial commemoration in the year 2024; (2) assist local governments and their<br />
representatives with planning, preparation, and grant applications for sestercentennial events and<br />
projects; (3) seek funding sources; (4) coordinate federal, state, local, and nonprofit organizations’<br />
sestercentennial activities occurring in Kentucky; (5) create press, print, and electronic contacts to<br />
generate related stories on a continual basis; (6) create a call for papers on how the history of the<br />
settlement impacted American history; (7) evaluate the existing infrastructure of Old Fort Harrod<br />
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8) HISTORIC PRESERVATION & COMMEMORATION<br />
State Park and provide recommendations for what infrastructure should be in place for the successful<br />
undertaking of appropriate events and activities; (8) ensure adequate wayfinding signage and<br />
mapping to mark and identify Old Fort Harrod State Park; and (9) perform other duties necessary to<br />
highlight the sestercentennial commemoration.<br />
The commission shall consist of the secretary of the Education and Workforce Development Cabinet;<br />
secretary of the Transportation Cabinet; two members from the Tourism, Arts and Heritage Cabinet;<br />
one member each from the Kentucky Heritage Council, Kentucky Humanities Council, Harrodsburg<br />
250th, Inc., and Friends of Fort Harrod; and three citizen members appointed by the governor, one of<br />
whom shall be designated as chair.<br />
Kentucky State Parks Centennial Commission<br />
The Kentucky State Parks Centennial Commission is established to plan and implement events<br />
to celebrate the 100th anniversary of the state parks system in 2024. To accomplish its charge,<br />
the commission shall assist local governments and organizations with planning, preparation, and<br />
grant applications for centennial events and projects; seek funding sources; coordinate events and<br />
activities; establish press, print, and electronic contacts to continually generate related stories; and<br />
perform other duties necessary to highlight Kentucky’s parks system during its 100th year. The<br />
commission shall be attached to the Tourism, Arts, and Heritage Cabinet for administrative purposes.<br />
The commission shall consist of the secretary and one additional member from the Tourism, Arts,<br />
and Heritage Cabinet; one member each from the Kentucky Historical Society and Kentucky Heritage<br />
Council; three members selected by the secretary of the Tourism, Arts, and Heritage Cabinet who<br />
work in onsite park leadership; and two citizen members appointed by the governor, one of whom<br />
shall be designated as chair.<br />
Kentucky Sestercentennial Commission<br />
The Kentucky Sestercentennial Commission is established to plan and implement events to celebrate<br />
the 250th anniversary of the founding of Old Fort Harrod in 1774 to the Declaration of Independence<br />
in 1776. Celebrations include the founding of Harrodsburg in 1774, the opening of Boone Trace in<br />
1775, the genesis of the westward movement, and events tied to the nation’s founding in 1776. The<br />
commission shall be attached to the Kentucky Historical Society for administrative purposes.<br />
The commission shall coordinate events for a three-year commemoration in the years 2024 to 2026<br />
that emphasize Kentucky’s role in the events occurring 1774 to 1776 and the impact of Kentucky and<br />
its citizens on the nation’s history. The commission shall additionally assist local governments with<br />
planning, preparation, and grant applications for sestercentennial events and activities; seek funding<br />
sources; establish press, print, and electronic contacts to continually generate related stories; and<br />
perform other duties necessary to highlight the sestercentennial.<br />
The commission shall consist of the secretary of the Education and Workforce Development Cabinet;<br />
commissioner of the Department of Parks; president of Friends of Boone Trace; president of Fort<br />
Boonesborough Foundation; one member each from the Kentucky Heritage Council, Kentucky<br />
Humanities Council, Kentucky Historical Society, Friends of Fort Harrod, Kentucky Native American<br />
Heritage Commission, and Kentucky African American Heritage Commission; and three citizen<br />
members appointed by the governor, one of whom shall be designated as chair.<br />
www.<strong>KLC</strong>.org<br />
35
9) LAW ENFORCEMENT<br />
HB 105<br />
MISSING PERSONS<br />
Sponsor: Representative Deanna Frazier (R‒Richmond)<br />
House Bill 105 amends KRS 39F.180 to require any search for a missing person initiated by<br />
any agency ‒ including but not limited to local law enforcement, the Kentucky State Police, fire<br />
departments, rescue squads, and emergency management ‒ that is not considered a Golden<br />
Alert (impaired person) or Green Alert (veteran at risk) to be reported to the Division of Emergency<br />
Management by telephone or radio within four hours of initiation. The local search and rescue<br />
coordinator, emergency management director, or a designee must make the notification.<br />
Any agency searching for a lost or missing person shall utilize existing resources, including but<br />
not limited to electronic highway signs; the Amber Alert System; law enforcement communications<br />
systems; electronic media; local, regional, and statewide media providers; and the Integrated Public<br />
Alert and Warning System, if authorized and under conditions permitted by the federal government.<br />
The duty officer of the Division of Emergency Management shall contact the Transportation Cabinet if<br />
the local search coordinator determines the use of electronic highway signs will aid in the search and<br />
is in the best interest of the missing person.<br />
The Transportation Cabinet shall promulgate administrative regulations to develop a written standard<br />
operating procedure for handling and reporting requests made by the duty officer of the Division<br />
of Emergency Management to initiate the use of electronic highway signs as part of a search for a<br />
missing, lost, or overdue person. The standard operating procedure shall be a public record.<br />
SB 4<br />
NO-KNOCK WARRANTS<br />
Sponsor: Senator Robert Stivers (R–Manchester)<br />
Senate Bill 4 creates new sections of KRS Chapter 455 governing warrants authorizing entry without<br />
notice to establish procedures and requirements for issuance of both search warrants and arrest<br />
warrants authorizing entry without notice. The legislation prohibits issuance of an arrest warrant<br />
or search warrant authorizing entry without notice unless the court finds by clear and convincing<br />
evidence that:<br />
1. The crime alleged is a crime that would qualify a person, if convicted, as a violent offender<br />
under KRS 439.3401 in relation to eligibility for parole; the crime alleged is a crime<br />
designated in KRS 525.045, 527.200, 527.205, or 527.210 related to terrorism or the use<br />
of a weapon of mass destruction; or the evidence sought may give rise to the charge of a<br />
crime that would qualify a person, if convicted, as a violent offender under KRS 439.3401<br />
or may give rise to a charge of a crime designated in KRS 525.045, 527.200, 527.205, or<br />
527.210 related to terrorism or use of a weapon of mass destruction;<br />
2. The giving of notice prior to entry will endanger the life or safety of any person or result in<br />
the loss or destruction of evidence sought that may give rise to a charge of a crime that<br />
36 www.<strong>KLC</strong>.org
9) LAW ENFORCEMENT<br />
would qualify a person, if convicted, as a violent offender under KRS 439.3401 or may give<br />
rise to a charge of a crime designated in KRS 525.045, 527.200, 527.205, or 527.210;<br />
3. The law enforcement officer seeking the warrant has obtained the approval of his or her<br />
supervising officer, or has the approval of the highest-ranking officer in his or her law<br />
enforcement agency;<br />
4. The law enforcement officer seeking the warrant has consulted with the commonwealth’s<br />
attorney, county attorney, assistant commonwealth’s attorney, or assistant county attorney<br />
for the jurisdiction for which the warrant is sought;<br />
5. The law enforcement officer seeking the warrant discloses to the judge, as part of the<br />
application, any other attempt to obtain a warrant authorizing entry without notice for the<br />
same premises, or for the arrest of the same individual; and<br />
6. The warrant authorizes that the entry without notice can occur only between the hours of<br />
6:00 a.m. and 10:00 p.m., except in exigent circumstances where the court makes findings<br />
in relation to the crimes alleged. The court may further find by clear and convincing<br />
evidence that there are substantial and imminent risks to the health and safety of the<br />
persons executing the warrant, the occupants of the premises, or the public, justifying entry<br />
without notice during other hours designated by the court.<br />
If the warrant is not issued electronically pursuant to KRS 455.170, the warrant must include the<br />
legibly printed name and signature of the judge.<br />
Senate President Robert Stivers (R-Manchester) argues on<br />
the Senate floor for passage of Senate Bill 4. Photo courtesy<br />
LRC Public Information.<br />
www.<strong>KLC</strong>.org<br />
37
9) LAW ENFORCEMENT<br />
Execution of Warrant<br />
A new section of KRS Chapter 455 is created to require any warrant issued pursuant to the<br />
Act to be executed by law enforcement officers with a certified or licensed paramedic or emergency<br />
medical technician in proximity and available to provide medical assistance, if needed. The law<br />
enforcement officers shall be:<br />
• Members of a special weapons and tactics team or special response team trained and tasked<br />
with resolving high-risk situations and incidents who have received appropriate training in the<br />
execution of arrest and search warrants authorizing entry without notice. If members of a special<br />
weapons and tactics team or special response team are not available to execute the warrant in<br />
a timely manner in counties having a population of less than 90,000 and the court finds by clear<br />
and convincing evidence that the risks to the health and safety of the persons executing the<br />
warrant, the occupants of the premises, or the public are greater if the warrant is not executed<br />
in a timely manner, the court may approve the execution of the warrant without members of a<br />
special weapons and tactics team or special response team;<br />
• Equipped with body-worn cameras, or in counties having a population of less than 90,000,<br />
equipped with other audio-visual or audio recording devices for required recording of the entirety<br />
of the execution of the warrant; and<br />
• Equipped with clearly visible insignia on any protective equipment or clothing that clearly<br />
identifies the name of the agency that employs the members of the special weapons and tactics<br />
team or special response team.<br />
SB 52<br />
SEXUAL OFFENSES BY PEACE OFFICERS<br />
Sponsor: Senator Denise Harper Angel (D–Louisville)<br />
The legislation amends three sexual offense statutes to include offenses by peace officers while<br />
serving in their official capacity. KRS 510.120, sexual abuse in the second degree, is amended to<br />
include a peace officer who subjects a person whom the officer has arrested, held in custody, or<br />
investigated for commission of a traffic or criminal offense, or knew or should have known was under<br />
arrest, held in custody, or being investigated for commission of a traffic or criminal offense, to sexual<br />
contact. Sexual abuse in the second degree is a Class A misdemeanor.<br />
KRS 510.090, sodomy in the third degree, is amended to include a peace officer who subjects<br />
a person whom the officer has arrested, held in custody, or investigated for committing a traffic<br />
or criminal offense, or knew or should have known was under arrest, held in custody, or being<br />
investigated for committing a traffic or criminal offense, to deviant sexual intercourse. Sodomy in the<br />
third degree is a Class D felony.<br />
KRS 510.060, rape in the third degree, is amended to include a peace officer who subjects<br />
a person whom the officer has arrested, held in custody, or investigated for committing a<br />
38 www.<strong>KLC</strong>.org
9) LAW ENFORCEMENT<br />
traffic or criminal offense, or knew or should have known was under arrest, held in custody,<br />
or being investigated for committing a traffic or criminal offense, to sexual intercourse. Rape<br />
in the third degree is a Class D felony.<br />
SB 80<br />
PEACE OFFICER DECERTIFICATION<br />
Sponsor: Senator Danny Carroll (R–Paducah)<br />
Senate Bill 80, a <strong>KLC</strong> initiative, amends several provisions of KRS Chapter 15 to strengthen<br />
Kentucky’s police decertification laws.<br />
KRS 15.391 is amended to expand the definitions of “professional malfeasance” and “professional<br />
nonfeasance” as follows:<br />
• “Professional malfeasance” is defined to mean engaging in an act in one’s professional capacity<br />
as a peace officer that violates a federal, state, or local law or regulation, or any act that involves:<br />
(1) the unjustified use of excessive or deadly force, as determined by an investigating agency;<br />
(2) any intentional action by a peace officer that interferes with or alters the fair administration<br />
of justice, including but not limited to tampering with evidence, giving false testimony, or the<br />
intentional disclosure of confidential information in a manner that compromises the integrity of an<br />
official investigation; or (3) engaging in a sexual relationship with an individual the peace officer<br />
knows or should have known is a victim, witness, defendant, or informant in an ongoing criminal<br />
investigation in which the peace officer is directly involved.<br />
•<br />
•<br />
•<br />
•<br />
•<br />
•<br />
Senator Danny Carroll (R-Paducah) speaks on the Senate floor<br />
shortly before the Senate passed Senate Bill 80 by a 28-0 vote.<br />
Photo courtesy LRC Public Information.<br />
•<br />
•<br />
•<br />
www.<strong>KLC</strong>.org<br />
39
9) LAW ENFORCEMENT<br />
• “Professional nonfeasance” is defined to mean a failure to perform one’s professional duty as a<br />
peace officer through omission or inaction that violates a federal, state, or local law or regulation,<br />
or any failure to act that involves: (1) the failure to intervene when it is safe and practical to do<br />
so in any circumstance where it is clear and apparent to the peace officer that another peace<br />
officer is engaged in the use of unlawful and unjustified excessive or deadly force; or (2) the<br />
intentional failure to disclose exculpatory or impeachment evidence that the peace officer knew<br />
or should have known to be materially favorable to an accused for the purpose of altering the fair<br />
administration of justice.<br />
KRS 15.391 is further amended to expand grounds for revocation of peace officer certification by the<br />
Kentucky Law Enforcement Council (KLEC). In addition to current grounds for revocation, including<br />
for professional malfeasance or professional nonfeasance, the certification of a peace officer may<br />
be revoked for: (1) a plea of guilty to, conviction of, or entering of an Alford plea to any misdemeanor<br />
offense in this state or out of it that involves dishonesty, fraud, deceit, misrepresentation, physical<br />
violence, sexual abuse, crimes against a minor or a family or household member; or (2) receipt of an<br />
other than honorable discharge from any branch of the U.S. Armed Forces.<br />
In addition to current grounds for automatic revocation by KLEC, the certification of a peace officer<br />
shall be automatically revoked for: (1) a plea of guilty to, conviction of, or entering an Alford plea to<br />
any state or federal felony or any criminal offense committed in another state that would constitute<br />
a felony if committed in Kentucky; or (2) willful falsification of information to obtain or maintain<br />
certification.<br />
The council may impose any reasonable condition upon the reinstatement of certification it<br />
may deem warranted under the facts of the case. A final order issued by the council denying<br />
reinstatement of certification may be appealed pursuant to KRS 13B.140.<br />
A new section of KRS 15.380 to 15.510 is created to allow any law enforcement agency or other<br />
unit of government that employs a certified peace officer to make a conditional offer of employment<br />
to a candidate pending receipt and evaluation of information requested from KLEC regarding the<br />
certification status of the candidate or from any agency that previously employed the candidate.<br />
Any agency that receives an inquiry from another agency regarding a candidate for a peace officer<br />
position who was formerly employed by the agency shall provide the following documentation within<br />
14 days following receipt of the request: (1) a complete copy of the peace officer’s personnel file;<br />
(2) any documentation related to the arrest or prosecution of the peace officer that the agency<br />
maintained; (3) any documentation related to a completed internal administrative investigation<br />
of the peace officer; and (4) any documentation related to an incomplete internal administrative<br />
investigation of the peace officer that was not completed because of the officer’s resignation or<br />
retirement while the investigation was pending. The agency that elects to make a conditional offer of<br />
employment subject to receipt and evaluation of information shall require the candidate to complete<br />
a waiver and release of liability authorizing the hiring agency to request the information from all prior<br />
agencies, which may include employing agencies outside of Kentucky.<br />
40 www.<strong>KLC</strong>.org
10) LOCAL GOVERNMENT REGULATION/ADMINISTRATION<br />
HB 190<br />
SALE OF GROCERY ITEMS BY FOOD SERVICE ESTABLISHMENTS<br />
Sponsor: Representative John Blanton (R–Salyersville)<br />
House Bill 190 creates a new section of KRS 217.280 to 217.390 to exempt legally permitted food<br />
service establishments from any state or local laws and administrative regulations that prohibit the<br />
sale of grocery items such as bread, milk, and other grocery staples to any customer. Sales shall be<br />
limited to no more than 25% of the food service establishment’s gross annual sales for the federal tax<br />
year.<br />
No additional permit or permit fee shall be required for the sale of grocery items by legally permitted<br />
food service establishments in accordance with this Act.<br />
An emergency is declared. House Bill 190 became law on March 18, <strong>2021</strong>, when signed by the<br />
governor.<br />
HB 210<br />
ADOPTION LEAVE<br />
Sponsor: Representative Samara Heavrin (R–Leitchfield)<br />
House Bill 210 amends KRS 337.015 to expand adoption leave from the current maximum of six<br />
weeks upon receipt by an employer of a written request. The bill requires employers to provide the<br />
same leave policies to adoptive parents as they do to birth parents if the employer has established<br />
a policy providing time off for birth parents that is greater than six weeks. The policy must include<br />
the same type, amount, and duration of paid leave and other benefits. House Bill 210 additionally<br />
increases the applicable age of an adoptive child from 7 to 10 years.<br />
Leave policies shall not apply to an adoption by fictive kin; stepparent; stepsibling; blood relative,<br />
including a first cousin, aunt, uncle, nephew, or niece; a person of a preceding generation as denoted<br />
by prefixes of grand, great, or great-great; or a foster parent who adopts a foster child who is already<br />
in their care.<br />
www.<strong>KLC</strong>.org<br />
41
10) LOCAL GOVERNMENT REGULATION/ADMINISTRATION<br />
SB 8<br />
IMMUNIZATIONS<br />
Sponsor: Senator Mike Wilson (R–Bowling Green)<br />
Senate Bill 8 amends KRS 214.036 to expand exceptions to mandatory immunization against<br />
disease to include, in addition to a child, any emancipated minor or adult opposed to medical<br />
immunization against disease who, personally or by a parent or guardian, submits a written sworn<br />
statement objecting to immunization based on religious grounds.<br />
In the event of an epidemic in a given area, Senate Bill 8 prohibits any administrative order issued<br />
by the Cabinet for Health and Family Services, any administrative regulation promulgated pursuant<br />
to KRS Chapter 13A, or any emergency executive order issued pursuant to KRS Chapter 39A<br />
to require: (1) the immunization of any child or adult for whom, in the written opinion of his or her<br />
attending health care provider, the immunization would be injurious to his or her health; or (2) the<br />
immunization of any child, emancipated minor or adult opposed to medical immunization against<br />
disease who, personally or by a parent or guardian, submits a written sworn statement objecting to<br />
the immunization based on religious grounds or conscientiously held beliefs.<br />
The Cabinet for Health and Family Services shall develop and make available on its website a<br />
standardized form relating to exemptions from immunization requirements and accept a completed<br />
standardized form when submitted.<br />
An emergency is declared. Senate Bill 8 became law on March 28, <strong>2021</strong>, without the governor’s<br />
signature.<br />
Senator Mike Wilson (R-Bowling Green) calls for<br />
passage of Senate Bill 8 on February 4.<br />
Photo courtesy LRC Public Information.<br />
42 www.<strong>KLC</strong>.org
10) LOCAL GOVERNMENT REGULATION/ADMINISTRATION<br />
SB 66<br />
YOUTH CAMPS<br />
Sponsor: Senator John Schickel (R‒Union)<br />
Senate Bill 66, a <strong>KLC</strong> initiative, creates a new section of KRS Chapter 194A to exempt local<br />
government youth day camps from licensure or permitting requirements. “Local government youth<br />
day camp” means a camp operated by a local government for all or part of a day, whether free or<br />
for a fee, for five or more children under 18 years of age outside the presence of their parent or<br />
guardian. The camp may be for recreational or educational purposes for four or more consecutive<br />
hours per day during school vacation periods, school breaks, or school cancellations. A local<br />
government youth day camp shall not be required to obtain a permit under KRS 211.180 or be<br />
licensed as a child care center as defined in KRS 199.894 or KRS 211.180.<br />
KRS 194A.382 and KRS 194A.383 are amended to ensure background checks for all staff members<br />
at youth camps, including volunteers. KRS 194A.380 is amended to define “staff member” to<br />
include: (1) an individual who is employed by a youth camp or a local government youth day camp<br />
for compensation; (2) a contract employee or a self-employed individual whose employment directly<br />
involves the care or supervision of children or unsupervised access to children placed with a youth<br />
camp or a local government youth day camp; or (3) a volunteer or intern whose activities on behalf<br />
of a youth camp or a local government youth day camp directly involve the care or supervision of<br />
children or unsupervised access to children placed with a youth camp or a local government youth<br />
day camp.<br />
The Senate passed Senate Bill 66 by a 91-0 vote after Senator<br />
John Schickel (R-Union) explained the provisions of the bill.<br />
SB 148<br />
OPERATION OF FAMILY CHILD CARE HOMES<br />
Sponsor: Senator Danny Carroll (R‒Paducah)<br />
Senate Bill 148 amends KRS 199.8982 to prohibit a local government from adopting or enforcing any<br />
licensure, certification, or training requirements specifically applicable to family child care homes.<br />
The prohibition does not exempt family child care homes from compliance with local government<br />
ordinances and regulations that apply generally within the jurisdiction.<br />
“Certified family child care home” means a private home certified by the Cabinet for Health and<br />
www.<strong>KLC</strong>.org<br />
43
10) LOCAL GOVERNMENT REGULATION/ADMINISTRATION<br />
Family Services pursuant to KRS 199.8982 that is the primary residence of an individual who<br />
provides full-time or part-time care day or night for six or fewer children who are not the children,<br />
siblings, stepchildren, grandchildren, nieces, nephews, or children in legal custody of the provider.<br />
KRS 199.8982 is additionally amended to require a local government that has adopted land use<br />
regulations pursuant to KRS Chapter 100 to specifically include, by January 1, 2022, family child<br />
care homes in the text of its zoning regulations to authorize the board of adjustments to separately<br />
consider the applications of proposed family child care homes for conditional use permits within<br />
the residential zones of the planning unit where they are not a fully permitted use pursuant to KRS<br />
100.237.<br />
An emergency is declared. Senate Bill 148 became law on March 30, <strong>2021</strong>, when delivered to the<br />
secretary of state.<br />
SB 165<br />
RIVERPORT AUTHORITIES<br />
Sponsor: Senator Whitney Westerfield (R–Crofton)<br />
Senate Bill 165 amends KRS 65.530 relating to the powers of riverport authorities to make the<br />
imposition of rates, charges, and fees for use of the riverport facilities permissive rather than<br />
mandatory. Publication of rates, charges, and fees, if any, for use of the riverport facilities shall be<br />
presented in a manner available to the public in the county in which the riverport is located, which<br />
may or may not be by newspaper publication.<br />
SB 171<br />
LOCAL GOVERNMENT INVESTMENTS<br />
Sponsor: Senator Wil Schroder (R‒Wilder)<br />
Senate Bill 171 amends KRS 66.480 to increase options for investment of money by local<br />
governments. KRS 66.480 currently limits money invested at any one time by a local government in<br />
mutual funds, exchange traded funds, individual equity securities, or individual corporate bonds to a<br />
maximum of 40% of the total money invested. The legislation exempts from the investment maximum<br />
of 40% a mutual fund consisting solely of investments in obligations of the United States government,<br />
obligations backed by the full faith and credit of the United States, bonds of this state, securities<br />
issued by a state or local government, or any combination thereof.<br />
44 www.<strong>KLC</strong>.org
10) LOCAL GOVERNMENT REGULATION/ADMINISTRATION<br />
SB 171<br />
SPLASH PADS<br />
Sponsor: Senator Wil Schroder (R‒Wilder)<br />
Senate Bill 171, a <strong>KLC</strong> initiative, addresses an issue experienced by some cities related to the<br />
operation of splash pads. “Splash pad” is defined as an artificially constructed recreation area for<br />
water play over which water is sprayed but is not allowed to pool. Splash pads have previously been<br />
regulated as swimming pools.<br />
Senate Bill 171 creates a new section of KRS Chapter 211 directing the Cabinet for Health and<br />
Family Services to promulgate administrative regulations to establish standards for the operation<br />
and maintenance of splash pads to ensure they are maintained in a safe, sanitary manner and to<br />
distinguish the operation and maintenance of splash pads from the operation and maintenance of<br />
swimming pools. The administrative regulations shall include a requirement that water in splash<br />
pads, if recirculated, be chemically treated, properly filtered, and monitored. The regulations shall not<br />
require ring buoys, life poles, shepherd’s crooks, backboards, telephones, bathhouses, restrooms,<br />
drinking fountains, first-aid kits, lifeguards, on-site attendants, or fences. The regulations shall also<br />
not require flow meters if the water in a splash pad is not recirculated.<br />
Senator Wil Schroder (R-Wilder) and <strong>KLC</strong> Director of Public Affairs Bryanna L. Carroll testify to the<br />
Senate State and Local Government Committee on February 24.<br />
www.<strong>KLC</strong>.org<br />
45
11) LOCAL GOVERNMENT TAXATION<br />
HB 84<br />
EXEMPTIONS FOR DISASTER RESPONSE BUSINESSES<br />
Sponsor: Representative Myron Dossett (R–Pembroke)<br />
House Bill 84 addresses the applicability of Kentucky income tax and licensing statutes to<br />
nonresident disaster response businesses and employees who come into the state pursuant to<br />
a request by a registered business or by a state or local government for purposes of performing<br />
disaster or emergency-related work during a disaster response period. “Disaster or emergencyrelated<br />
work” is defined to mean repairing, renovating, installing, building, or rendering services<br />
that are essential to the restoration of critical infrastructure that has been damaged, impaired, or<br />
destroyed by a declared state disaster or emergency.<br />
“Disaster response business” is defined to mean any entity: (1) that has no presence in the state<br />
and conducts no business in the state, except for disaster or emergency-related work during a<br />
disaster response period; (2) whose services are requested by a registered business or by a state<br />
or local government for purposes of performing disaster or emergency-related work in the state<br />
during a disaster response period; and (3) that has no registrations, tax filings, or nexus in this state<br />
other than disaster or emergency-related work during the calendar year immediately preceding the<br />
declared state disaster or emergency. “Disaster response employee” means an employee who does<br />
not work or reside in the state, except for disaster or emergency-related work during the disaster<br />
response period.<br />
“Disaster response period” means a period that begins 10 days prior to the first day of the governor’s<br />
declaration under KRS 39A.100, or the president’s declaration of a federal major disaster or<br />
emergency, whichever occurs first, and that extends 30 days after the declared state disaster or<br />
emergency.<br />
KRS 141.020 is amended to exempt disaster response employees and disaster response businesses<br />
from income tax beginning on or after January 1, <strong>2021</strong>, and before January 1, 2025. KRS 141.040 is<br />
amended to exempt disaster response businesses from payment of corporate income tax beginning<br />
on or after January 1, <strong>2021</strong>, and before January 1, 2025.<br />
KRS 68.180, 68.197, 91.200, and 92.300 are amended to exclude the income of a disaster response<br />
employee and a disaster response business from payment of local occupational license taxes. No<br />
license tax shall be imposed upon the profits earned or income received for work performed during a<br />
disaster response period by a disaster response business or a disaster response employee.<br />
KRS 227.480 is amended to exclude a disaster response business from any requirement to obtain<br />
a permit before commencing construction, alteration, or repairs of any electrical system. KRS<br />
227A.030 is amended to exclude disaster response employees licensed as an electrician or master<br />
electrician in another state or disaster response businesses licensed as electrical contractors in<br />
another state from any requirement to apply for a Kentucky electrician’s license.<br />
46 www.<strong>KLC</strong>.org
11) LOCAL GOVERNMENT TAXATION<br />
HB 249<br />
OCCUPATIONAL LICENSE FEES<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 amends KRS 68.197 to permit counties authorized to collect an occupational license<br />
fee to increase or decrease the license fee with the approval of the fiscal court through the passage<br />
of an ordinance, rather than by approval of voters at a public referendum. The percentage rate on<br />
which the fee is based shall not exceed one percent. The maximum salary limit for collection of the<br />
fee shall not exceed an amount equal to the maximum Social Security contribution and benefit base<br />
established pursuant to 42 U.S.C. § 430. Notwithstanding KRS 68.197(7), there shall be no credit of<br />
any license fee increased or decreased pursuant to the amendment except by agreement between<br />
the county and the city in accordance with KRS 68.197(6). Effective July 1, <strong>2021</strong>.<br />
HB 249<br />
REFUND OF BUSINESS TAXES<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 creates a new section of KRS Chapter 67 to permit a local government taxing district<br />
to share a refund application and any related information that is submitted to it by an employee<br />
seeking a refund of any amount of net profits, gross receipts, or occupational license taxes withheld<br />
and paid by his or her employer to the tax district pursuant to KRS 67.750 to 67.795 with any other<br />
tax district that is referenced in the refund application or in related information.<br />
HB 249<br />
TAXATION OF VETERAN SERVICE ORGANIZATIONS<br />
Sponsor: Representative Jason Petrie (R–Elkton)<br />
House Bill 249 creates a new section of KRS Chapter 132 to permit a veteran service organization<br />
to qualify as an institution of purely public charity as described in Section 170 of the Kentucky<br />
Constitution related to property exempt from taxation if over 50% of its annual net income is<br />
expended on behalf of military veterans and other charitable causes. If a veteran service organization<br />
qualifies as an institution of purely public charity, its property assessed on January 1, 2022, shall not<br />
be subject to ad valorem taxation from the state, county, city, school, or other taxing district in which<br />
it has a taxable situs. The exemption does not apply to real property, if any, owned by the veteran<br />
service organization and occupied by another entity or person for compensation. Effective January 1,<br />
2022.<br />
HB 513<br />
SHERIFFS’ COLLECTION FEES<br />
Sponsor: Representative Michael Meredith (R–Oakland)<br />
House Bill 513 creates a new section of KRS Chapter 70 to require the sheriff to negotiate a<br />
collection fee with the governing body of any local government that levies or imposes a special tax,<br />
license, fee, or other charge to be collected by the sheriff as part of a property tax bill. The local<br />
government shall then set the negotiated collection fee, and the sheriff shall retain an amount not to<br />
exceed 4.25% of the special tax, license, fee, or other charge collected, if no other compensation is<br />
otherwise authorized.<br />
www.<strong>KLC</strong>.org<br />
47
12) OPEN RECORDS<br />
HB 273<br />
EXEMPTIONS FOR CERTAIN PHOTOGRAPHS AND VIDEOS<br />
Sponsor: Representative Chris Freeland (R–Benton)<br />
House Bill 273 amends KRS 61.878 to exclude from the Open Records Act photographs or videos<br />
that depict the death, killing, rape, or sexual assault of a person, except at the request of: (1) any<br />
victim depicted in the photographs or videos, his or her immediate family, or legal representative; (2)<br />
any involved insurance company or its representative; (3) the legal representative of any involved<br />
party; or (4) any state agency or political subdivision investigating official misconduct.<br />
Such photographs or videos shall be made available by the public agency to the requesting party for<br />
viewing on the premises of the public agency or at a mutually agreed upon location.<br />
An emergency is declared. House Bill 273 became law on March 23, <strong>2021</strong>, when signed by the<br />
governor.<br />
Representative Chris Freeland (R-Benton) presents House Bill 273<br />
on the House floor. Photo courtesy LRC Public Information.<br />
48 www.<strong>KLC</strong>.org
12) OPEN RECORDS<br />
HB 312<br />
ACCESS TO PUBLIC RECORDS<br />
Sponsor: Representative Bart Rowland (R–Tompkinsville)<br />
House Bill 312, a <strong>KLC</strong> initiative, amends several provisions in Kentucky’s Open Records Act relating<br />
to access to public records. KRS 61.872 is amended to permit access to inspection of public records<br />
under the Open Records Act to any resident of the commonwealth. KRS 61.870 is amended to<br />
define “resident of the commonwealth” to mean: (1) an individual residing in the commonwealth; (2) a<br />
domestic business entity with a location in the commonwealth; (3) a foreign business entity registered<br />
with the secretary of state; (4) an individual that is employed and works at a location or locations<br />
within the commonwealth; (5) an individual or business entity that owns real property within the<br />
commonwealth; (6) any individual or business entity that has been authorized to act on behalf of an<br />
individual or business entity qualifying as a resident of the commonwealth; or (7) a “news-gathering<br />
organization” as defined in KRS 189.635.<br />
KRS 61.872 is additionally amended to expand methods for residents of the commonwealth to<br />
submit written applications for inspection of public records to include via email to the public agency’s<br />
official custodian of public records at the email address designated in the public agency’s rules and<br />
regulations as required pursuant to KRS 61.876. The official custodian may require the applicant<br />
to provide a statement in the written application about how the applicant is a resident of the<br />
commonwealth.<br />
KRS 61.876 is amended to require the attorney general to promulgate by administrative regulation<br />
a standardized form that may be used to request public records from a public agency. The form<br />
shall request the following: (1) name of the requesting party; (2) mailing or email address of the<br />
requesting party; (3) whether the request is for a commercial purpose; (4) a description of the<br />
documents requested; (5) a statement about how the person making the request is a resident of the<br />
commonwealth; and (6) the signature of the requesting party. The attorney general shall make the<br />
form readily available to the public, including on the attorney general’s website.<br />
KRS 61.876 is further amended to require each public agency to display in a prominent location<br />
accessible to the public, including on its website: (1) a copy of its rules and regulations pertaining to<br />
public records; (2) the mailing address, email address, and phone number of the official custodian<br />
of the records to which all requests for public records shall be made; and (3) the form developed by<br />
the attorney general that may be used to request public records. A public agency shall not require<br />
the use of any particular form for the submission of an open records request but shall accept for any<br />
request the standardized form developed by the attorney general.<br />
KRS 61.880 is amended to require each public agency, upon any request for records, to determine<br />
within five days after receiving the request excepting Saturdays, Sundays, and legal holidays (rather<br />
than three days as currently required) whether to comply with the request and to notify in writing the<br />
person making the request of its decision. If a requester is not notified within five days whether or not<br />
the request will be complied with, he or she may complain in writing to the attorney general.<br />
KRS 7.119 is amended regarding records in the custody of the <strong>Legislative</strong> Research Commission or<br />
www.<strong>KLC</strong>.org<br />
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12) OPEN RECORDS<br />
the General Assembly. Requests for records in the custody of the <strong>Legislative</strong> Research Commission<br />
or the General Assembly shall be directed to the director of the <strong>Legislative</strong> Research Commission<br />
who shall determine within five days after receipt of the request, excepting Saturdays, Sundays, and<br />
legal holidays, whether to comply with the request. The director shall notify the person making the<br />
request in writing of his or her decision. A request for review of a determination by the director shall<br />
be made to the <strong>Legislative</strong> Research Commission which shall issue its decision within 30 days of the<br />
first scheduled meeting held following receipt of the request for review. If the <strong>Legislative</strong> Research<br />
Commission does not issue its decision on a review of the director’s determination within 30 days<br />
of the first scheduled meeting held following receipt of the request for review, the review shall be<br />
considered denied and unappealable.<br />
<strong>KLC</strong> Executive Director/CEO J.D. Chaney, Representative Jason Petrie (R-Elkton), and<br />
Representative Bart Rowland (R-Tompkinsville) testify to the Senate State and Local Government<br />
Committee for passage of House Bill 312.<br />
50 www.<strong>KLC</strong>.org
13) RETIREMENT<br />
HB 9 CERS SEPARATION - PHASE 2<br />
Sponsor: Representative Russell Webber (R–Shepherdsville)<br />
House Bill 9, a <strong>KLC</strong> initiative, amends various statutes in KRS Chapters 16, 61, and 78 to finalize<br />
creation of a separate statutory structure for the County Employees Retirement System (CERS),<br />
apart from the Kentucky Retirement Systems (KRS) as provided in House Bill 484 passed by the<br />
2020 General Assembly. House Bill 484 created an independent CERS Board of Trustees within the<br />
administrative structure of the newly created Kentucky Public Pensions Authority (KPPA) effective<br />
April 1, 2020.<br />
<strong>KLC</strong> Director of Public Affairs Bryanna L. Carroll<br />
testifies for passage of House Bill 9.<br />
• House Bill 9 makes the following changes to the language in House Bill 484 (2020):<br />
• Allows the CERS and KRS boards to hire a general counsel;<br />
• Requires the governor to make an appointment or reappointment to the CERS and KRS boards<br />
at least 30 days prior to a current member’s term expiring;<br />
• Allows the KPPA to hire a chief investment officer and deputy chief investment officer outside the<br />
KRS Chapter 18 personnel requirements;<br />
• Requires KPPA to submit a single biennial budget for legislative approval that lists separate<br />
CERS and KRS expenses after submission of requests by each board;<br />
• Gives KPPA the authority to promulgate administrative regulations and carry out all administrative<br />
actions needed for KRS and CERS;<br />
www.<strong>KLC</strong>.org<br />
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13) RETIREMENT<br />
• Permits the chief executive officer of the KRS board and the chief executive officer of the CERS<br />
board, rather than the executive director of KPPA, to call a special meeting of their respective<br />
boards;<br />
• Establishes that the CERS and KRS boards may have a joint Disability Appeals Committee;<br />
• Separates CERS from KRS retiree health benefit provisions; and<br />
• Allows the current KRS Executive Director to serve as the KPPA Executive Director until a<br />
permanent replacement is determined by July 1, <strong>2021</strong>.<br />
House Bill 9 does not increase or decrease benefits, limit the General Assembly’s authority to change<br />
benefits, or change employer contribution rates.<br />
An emergency is declared. House Bill 9 became law on March 24, <strong>2021</strong>, when signed by the<br />
governor.<br />
Representative Jerry Miller (R-Louisville) in committee.<br />
Photo courtesy LRC Public Information.<br />
HB 69<br />
ACTUARIAL REPORTING FOR STATE RETIREMENT SYSTEMS<br />
Sponsor: Representative Jerry Miller (R–Louisville)<br />
House Bill 69 amends KRS 6.350 to establish additional standards and requirements for completion<br />
of the actuarial analysis required for bills filed in the General Assembly pertaining to the stateadministered<br />
retirement systems.<br />
The legislation requires the actuarial analysis to be provided in a uniform format established by the<br />
<strong>Legislative</strong> Research Commission and include on the front page a summary of relevant data from<br />
the analysis, including but not limited to: (1) the total projected nominal dollar savings or costs over<br />
a period of 30 years rather than 20 years; (2) the net present value of savings or costs over the 30<br />
52 www.<strong>KLC</strong>.org
13) RETIREMENT<br />
years; and (3) the estimated change in the normal cost, if applicable.<br />
KRS 21.440, 61.670, and 161.400 are amended to require the state-administered retirement systems<br />
to provide a projection/analysis over 30 years rather than 20 years.<br />
HB 87<br />
RETIREMENT SYSTEMS HOUSEKEEPING MEASURES<br />
Sponsor: Representative Jennifer Decker (R–Waddy)<br />
House Bill 87 amends various provisions in KRS Chapters 16 and 61 relating to Kentucky’s<br />
retirement systems.<br />
• KRS 161.520 is amended to permit a widow or widower receiving survivor’s benefits to continue<br />
to receive benefits upon remarriage.<br />
• KRS 61.542 is amended to allow a retiree to change his or her actual monthly payment option<br />
upon marriage or remarriage if the retiree files a beneficiary change form within 120 days of<br />
marriage or remarriage designating the new spouse as a beneficiary and selecting a survivorship<br />
payment option. The resulting payments would be actuarially equivalent to the retirement<br />
allowance provided at the date of the original retirement.<br />
• KRS 61.542 is additionally amended to allow a retiree to elect to change his or her beneficiary<br />
at any time if the retiree has selected upon retirement a basic monthly annuity, a period certain<br />
payment option, or the Social Security adjustment option without survivorship rights as provided<br />
in KRS 61.542 and 61.635.<br />
• KRS 16.578 and 61.640 are amended to apply the alternate death benefit calculation options<br />
as written prior to 2009 legislation for deaths occurring prior to retirement. The amendments are<br />
retroactive to June 25, 2009.<br />
• KRS 61.545 is amended to provide that if a member is working in a regular full-time hazardous<br />
duty position that participates in the Kentucky Employees Retirement System (KERS) or<br />
the County Employees Retirement System (CERS) and is simultaneously employed in a<br />
nonhazardous position that is not considered regular full-time with a different participating<br />
employer, the member may elect within 30 days of taking employment to not participate in the<br />
system for his or her employment in the nonhazardous position. The amendment shall apply only<br />
to prospective nonhazardous employment occurring on or after the effective date of the Act.<br />
• KRS 61.598 is amended to provide the 10% cap on creditable compensation growth during a<br />
member’s five years of employment shall not apply to situations where the growth in excess of<br />
10% during the five-year period results in a benefit change of less than $25 per month.<br />
•<br />
www.<strong>KLC</strong>.org<br />
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13) RETIREMENT<br />
• Members who retired prior to the effective date of the Act, who were married or remarried prior to<br />
the effective date of the Act and remain married or remarried to the same spouse, may exercise a<br />
onetime election to select a survivorship payment option for the new spouse by filing a beneficiary<br />
change form with the retirement office on or before January 1, 2022.<br />
Representative Jennifer Decker (R-Waddy) congratulates<br />
Representative David Osborne (R-Prospect) after being<br />
reelected as speaker of the House. Photo courtesy LRC<br />
Public Information.<br />
HB 261<br />
FRAUD AGAINST RETIREMENT SYSTEMS<br />
Sponsor: Representative Jerry Miller (R–Louisville)<br />
House Bill 261 amends KRS 61.685 to make a person liable for civil penalties if he or she knowingly<br />
submits false or fraudulent claims or fails to report or remit required money, records, or property to<br />
the Kentucky Public Pensions Authority (KPPA) in order to obtain retirement benefits from any of<br />
the retirement systems administered by the KPPA. “Person” is defined to mean a natural person,<br />
individual, county, city, agency, board or commission, sole proprietorship, partnership, corporation,<br />
limited liability company, organization, association, business, trust, or other legal entity.<br />
A person shall be liable if he or she knowingly: (1) submits or causes to be submitted a false<br />
or fraudulent claim for the payment or receipt of any benefit provided from any of the Kentucky<br />
retirement systems; (2) makes, uses, or causes to be made or used a false record or statement<br />
material to a false or fraudulent claim to obtain benefits provided from any of the Kentucky retirement<br />
systems; or (3) possesses or otherwise has custody or control of money, records, or property used<br />
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13) RETIREMENT<br />
or to be used by the KPPA or the systems it administers and fails to deliver or delivers less than all<br />
of the money, records, or property to which the authority or the retirement systems it administers<br />
are entitled, including but not limited to member agencies failing to report and remit employer and<br />
employee contributions and employment records to the authority.<br />
A person found to have committed one or more of the actions by a preponderance of the evidence in<br />
an administrative process before the authority or in an action before the Franklin Circuit Court shall<br />
be liable for: (1) restitution of any payments received for which the person was not entitled to receive<br />
and interest at the maximum legal rate; (2) civil payment in an amount up to three times the amount<br />
of the excess payments; (3) civil payment of $500 for each false or fraudulent claim submitted for the<br />
payment of retirement benefits; and (4) legal fees and costs of investigation and enforcement of civil<br />
remedies, including all attorneys’ fees and costs of litigation.<br />
Upon the written request of KPPA, the attorney general shall investigate and file the necessary<br />
actions to enforce civil penalties for violations and, if funds are recovered by or on behalf of the<br />
authority in any legal action, may recover reasonable costs of litigation as determined by the court.<br />
SB 169<br />
DUTY-RELATED DISABILITY BENEFITS<br />
Sponsor: Senator Christian McDaniel (R–Taylor Mill)<br />
Senate Bill 169 amends KRS 16.582 and 61.621 to increase line-of-duty or duty-related disability<br />
benefits payable to a member of any of the systems administered by the Kentucky Public Pensions<br />
Authority (KPPA) from 25% of the member’s final rate of pay to not less than 75% of the member’s<br />
monthly average pay. Additionally, a monthly payment equal to 10% of the disabled member’s<br />
monthly average pay is payable to each dependent child of the member on his disability retirement<br />
date. The payments shall be divided equally among all dependent children payable to each<br />
dependent child, to a legally appointed guardian, or as directed by the system. Total maximum<br />
dependent children’s benefits shall not exceed 25% of the member’s monthly average pay while the<br />
member is living and 40% of the member’s monthly average pay after the member’s death. “Monthly<br />
average pay” is defined as the higher of the member’s monthly final rate of pay or the average<br />
monthly creditable compensation earned by the disabled member during his or her last 12 months of<br />
employment prior to the date the line-of-duty or duty-related injury occurred.<br />
KRS 61.702 is amended to ensure full hospital and medical insurance benefits for the member,<br />
spouse, and dependents of a member who is totally and permanently disabled as a direct result<br />
of an act in the line of duty or disabled because of a duty-related injury for so long as the member,<br />
beneficiary, or dependent child individually remain eligible for benefits.<br />
The increase in line-of-duty or duty-related disability benefits is limited to members in a hazardousduty<br />
position or members in a nonhazardous position that could be certified as a hazardous-duty<br />
position under KRS 61.592.<br />
www.<strong>KLC</strong>.org<br />
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13) RETIREMENT<br />
Related Amendments<br />
KRS 61.607 is amended to require members receiving line-of-duty or duty-related disability benefits<br />
to annually file with KPPA information regarding receipt of workers’ compensation or Social Security<br />
disability benefits for the purpose of computation of any adjustments.<br />
KRS 61.610 is amended to require disability medical reviews for members receiving line-of-duty or<br />
duty-related disability benefits to occur once every three years, rather than once each year following<br />
retirement. KRS 61.610 is additionally amended to require KPPA to hire or contract for the services<br />
of an investigator to investigate potential fraud involving disability benefits. The investigator shall<br />
evaluate potential cases of disability fraud and conduct spot audits for potential fraud as determined<br />
by KPPA in cases involving members who become totally and permanently disabled as a direct result<br />
of an act in the line of duty or a duty-related injury.<br />
KRS 7A.255 is amended to require KPPA to report line-of-duty and duty-related disability benefits to<br />
the Kentucky Public Pension Oversight Board on or before November 15 following the close of each<br />
fiscal year, broken down by system and whether the member is drawing a benefit as a hazardous<br />
member or a nonhazardous member who worked in a position that could be certified as a hazardous<br />
position.<br />
In the month following the effective date of the Act, any member, spouse of a disabled or deceased<br />
member, and any dependent child of a disabled or deceased member who is receiving a monthly<br />
benefit shall have his or her monthly benefit increased and be eligible for the health insurance<br />
benefits specified in the Act.<br />
The provisions of Senate Bill 169 apply to the Kentucky Employees Retirement System (KERS), the<br />
County Employees Retirement System (CERS), and the State Police Retirement System (SPRS).<br />
Senator Christian McDaniel (R-Taylor Mill)<br />
speaks on the floor.<br />
Photo courtesy LRC Public Information.<br />
56 www.<strong>KLC</strong>.org
14) SUBSTANCE ABUSE<br />
HB 7<br />
RECOVERY READY COMMUNITIES<br />
Sponsor: Representative Adam Bowling (R–Middlesboro)<br />
House Bill 7, a <strong>KLC</strong> initiative, creates a new section of KRS Chapter 222 relating to alcohol and drug<br />
abuse prevention, intervention, and treatment that establishes the Advisory Council for Recovery<br />
Ready Communities. The council will work with city leaders and community members to help bring<br />
consistency to local substance abuse prevention, treatment, and recovery efforts across the state.<br />
The Council shall be attached to the Office of Drug Control Policy within the Justice and Public Safety<br />
Cabinet for administrative purposes.<br />
The Advisory Council for Recovery Ready Communities shall consist of:<br />
1. One member appointed by the governor from each of the following entities: Kentucky League<br />
of Cities, Kentucky Association of Counties, Kentucky Chamber of Commerce, Recovery<br />
Consortium of Kentucky, Kentucky School Boards Association, Kentucky Pharmacists<br />
Association, and Kentucky Association of Regional Programs;<br />
2. The following government officials or their designees: president of the Senate; speaker<br />
of the House; attorney general; chief justice of the Supreme Court; the public advocate;<br />
commissioner of the Department for Public Health; commissioner of the Department<br />
for Behavioral Health, Development, and Intellectual Disabilities; commissioner of the<br />
Department of Corrections; and commissioner of the Department of Workforce Investment;<br />
and<br />
3. Other professional and community members appointed by the governor as follows:<br />
one person representing the leadership of active law enforcement officers in Kentucky;<br />
one physician representing the medical profession; one person from a family advocate<br />
organization; one person from a faith community organization with experience in substance<br />
use recovery disorders; and two persons in recovery from a substance use disorder, one who<br />
has served time in jail or prison due to a substance use disorder.<br />
The Advisory Council for Recovery Ready Communities shall: (1) establish a Kentucky Recovery<br />
Ready Community Certification Program for cities and counties to provide a quality measure of a<br />
city’s or county’s substance use disorder recovery programs; (2) establish guidelines, protocols,<br />
standards, and an application and approval process for cities and counties related to the Kentucky<br />
Recovery Ready Community Certification Program; (3) ensure that the certification process evaluates<br />
a city’s or county’s availability of high-quality substance use treatment programs in their communities<br />
for persons in active, post, and recovered addiction status; (4) request and utilize federal, state,<br />
and private funds, including funds from philanthropic sources; (5) improve procedures for ensuring<br />
www.<strong>KLC</strong>.org<br />
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14) SUBSTANCE ABUSE<br />
accountability and measuring success of recovery programs that receive state, federal, and<br />
philanthropic funds; and (6) perform other duties and responsibilities as designated by the governor.<br />
The Justice and Public Safety Cabinet may contract with any public or private agency or any<br />
individual for research, the gathering of information, the printing and publication of reports,<br />
consulting, or for any other purpose necessary to discharge the duties of the advisory council.<br />
<strong>KLC</strong> Executive Director/CEO J.D.<br />
Chaney testifies for passage of House<br />
Bill 7 at the February 3 House Local<br />
Government Committee.<br />
HB 427<br />
OPIOID ABATEMENT ADVISORY COMMISSION<br />
Sponsor: Representative Danny Bentley (R‒Russell)<br />
House Bill 427 creates new sections of KRS Chapter 15 to establish a general structure for receipt<br />
and disbursement of funds from various lawsuits against opioid manufacturers, producers, and<br />
distributors, including disbursement of funds to local governments. The legislation creates the<br />
Kentucky Opioid Abatement Advisory Commission for receipt and award of moneys from the various<br />
lawsuits for reimbursement of prior expenses or to fund projects according to specified criteria.<br />
58 www.<strong>KLC</strong>.org
15) TRANSPORTATION<br />
HB 199<br />
ENCROACHMENT PERMITS<br />
Sponsor: Representative Brandon Reed (R‒Hodgenville)<br />
House Bill 199, a <strong>KLC</strong> initiative, amends KRS 177.106 to clarify requirements for an encroachment<br />
permit. “Encroachment” is defined to mean any improvement to land, including but not limited to<br />
buildings, fences, ditches, embankments, driveways, signs, or any change from the original contour<br />
of the land, that: (1) is constructed, created, or implemented under, on, or over the right-of-way of<br />
a state-maintained road; and (2) may hinder or prevent use or maintenance of the road or rightof-way.<br />
Encroachment on any part of the right-of-way of a state-maintained highway requires an<br />
encroachment permit from the Department of Highways.<br />
If the Department of Highways determines that an encroachment for which an encroachment permit<br />
was not issued interferes with the safe, convenient, and continuous use and maintenance of a road,<br />
the department shall issue to the responsible party a notice of violation and order to remove or<br />
relocate the encroachment within seven days at the expense of the responsible party.<br />
If the department orders the removal or relocation of an encroachment and the responsible party fails<br />
to remove it or change its location within the time allotted, the department shall cause the removal of<br />
the encroachment and recoup the cost of removal from the responsible party. Moneys recouped shall<br />
be deposited in the state road fund.<br />
In addition to any payment required to cover the costs of removal or relocation, any person who fails<br />
to obtain a permit shall be subject to a civil fine of $500 for the first violation, $1,000 for a second<br />
violation within a three-year period, and $2,000 for a third or subsequent violation within a three-year<br />
period. After a third violation, a responsible party shall be prohibited from receiving an encroachment<br />
permit for a period of six months from the date of notice of the third violation and be responsible for<br />
payment within 24 hours of notice from the department of any safety measures determined to be<br />
necessary by the department. Any civil fines imposed shall be collected by the municipality in which<br />
the violation occurred and used by the municipality for public safety or infrastructure purposes.<br />
HB 328<br />
ADVERTISING DEVICES<br />
Sponsor: Representative DJ Johnson (R–Owensboro)<br />
House Bill 328 amends KRS 177.830 to redefine “advertising device” in response to a court ruling<br />
that questioned Kentucky’s authority to regulate advertising devices under existing law. “Advertising<br />
device” means any billboard, sign, notice, poster, display, or other device, including the structure<br />
erected or used in connection with the display or device and all lighting or other attachments used in<br />
connection with the display or device, that is: (1) operated or owned by a person or entity that earns<br />
compensation directly or indirectly from a third party or parties for the placement of a message on the<br />
device; and (2) intended to attract the attention of operators of motor vehicles on highways.<br />
www.<strong>KLC</strong>.org<br />
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15) TRANSPORTATION<br />
KRS 177.860 is amended to require the Transportation Cabinet to promulgate administrative<br />
regulations no later than August 1, <strong>2021</strong>, to establish: (1) permit fees for advertising devices not<br />
to exceed $250 for the initial permit application review, site and compliance inspection, and permit<br />
issuance, and $100 for an annual permit renewal; and (2) reasonable standards for signs, notices,<br />
posters, displays, or other devices that do not meet the definition of advertising device. Advertising<br />
devices indicating the name or type of business or profession conducted on the property or the sale<br />
or lease of the property on which the device is located are excluded from regulation.<br />
An emergency is declared. House Bill 328 became law on March 18, <strong>2021</strong>, when signed by the<br />
governor.<br />
Representative DJ Johnson (R-Owensboro) and <strong>KLC</strong> Director of Public Affairs Bryanna L.<br />
Carroll appear before the Senate State and Local Government Committee on March 3.<br />
SB 62<br />
COMMERCIAL QUADRICYCLES<br />
Sponsor: Senator Jimmy Higdon (R‒Lebanon)<br />
Senate Bill 62 amends the definition of “commercial quadricycle” in KRS 240.010 to modify the<br />
requirement that a commercial quadricycle be powered exclusively by means of human muscular<br />
power. The legislation allows for usage of an electrical assist system only when traveling to or from<br />
its storage location while not carrying passengers and specifies a commercial quadricycle is not a<br />
motor vehicle as defined in KRS 185.010 or 189.010.<br />
60 www.<strong>KLC</strong>.org
16) UTILITY SERVICES<br />
HB 207<br />
ENERGY SOURCE AVAILABILITY<br />
Sponsor: Representative Jim Gooch (R–Providence)<br />
House Bill 207 creates a new section of KRS Chapter 65 to prohibit a local government, with certain<br />
exceptions, from taking any legislative or executive action that has the purpose or effect of impairing<br />
a consumer’s ability to use: (1) utility services relating to the production and distribution of electricity<br />
or natural gas or the transportation of fluids by pipeline that are provided by a utility regulated by the<br />
Public Service Commission under KRS Chapter 278 or by a rural electric cooperative under KRS<br />
Chapter 279; or (2) liquefied petroleum gas as defined in KRS 234.100.<br />
House Bill 207 does not prohibit the ability of a local government to act under state law in matters<br />
relating to planning and zoning pursuant to KRS Chapter 100 and franchises pursuant to authority<br />
granted under Sections 163 and 164 of the Kentucky Constitution. The bill does not prohibit the<br />
ability of a local government or its utilities to provide any lawful utility service to its customers<br />
pursuant to state law.<br />
HB 238<br />
CITY UTILITY COMMISSION MEMBERSHIP<br />
Sponsor: Representative DJ Johnson (R–Owensboro)<br />
House Bill 238, a <strong>KLC</strong> initiative, expands the pool of persons with qualifications and expertise who<br />
may serve on a city utility commission. The legislation amends KRS 96.530 to allow city utility<br />
commissions to consist of either three or five members regardless of the size of the city and to<br />
broaden the permissible appointment of nonresident commission members. In cities with three<br />
commission members, one commission member may be appointed who does not live within the<br />
boundaries of the city. In cities with five commission members, two commission members may be<br />
appointed who do not live within the boundaries of the city.<br />
In both instances, the appointment or appointments of nonresident members shall occur only if the<br />
appointing authority determines that each appointee: (1) is a resident of a county in which the utility<br />
operates; (2) possesses qualifications and expertise that would benefit and be in the best interests of<br />
the city utility; and (3) is not employed by, possess an ownership interest in, or serve in any fiduciary<br />
or agency capacity with a direct supplier or direct competitor of the city utility.<br />
HB 272<br />
PENALTIES FOR NONPAYMENT OF UTILITY SERVICES<br />
Sponsor: Representative Josh Bray (R–Mount Vernon)<br />
House Bill 272, a <strong>KLC</strong> initiative, creates a new section of KRS Chapter 39F to prohibit current or<br />
future executive orders, administrative regulations, or other guidance during a declared emergency<br />
to remain in effect or be issued or promulgated by a department or officer of state government that<br />
prohibits or otherwise impairs the right of a municipal utility, subject to or created under KRS Chapter<br />
96, from terminating service for nonpayment of a customer’s utility bill or assessing or collecting its<br />
usual and customary fees or penalties for a customer’s nonpayment or delinquent payment of a utility<br />
bill.<br />
www.<strong>KLC</strong>.org<br />
61
16) UTILITY SERVICES<br />
A new section of KRS Chapter 39F is additionally created to prohibit any department or officer of<br />
state government to issue or promulgate an executive order, administrative regulation, or other<br />
guidance during a declared emergency that conflicts with any requirement or guidance issued by<br />
the U.S. Department of Homeland Security regarding the classification or treatment of employees<br />
of utilities as essential or critical infrastructure workers that are needed to ensure the continuity of<br />
functions critical to public health and safety or economic and national security.<br />
A new section of KRS Chapter 278 is created to allow a water district formed pursuant to KRS<br />
Chapter 74 or a water association formed pursuant to KRS Chapter 273 to charge a customer who<br />
fails to pay a bill by the due date shown on the bill a late payment charge of 10% of the amount<br />
billed. Any late payment charge imposed by a water district or water association shall be waived for<br />
any bill or portion of a bill for which a customer has received third-party billing assistance through<br />
the Low-Income Household Drinking Water and Wastewater Emergency Assistance Program or from<br />
another public or charitable source.<br />
The Public Service Commission shall not modify, reject, or suspend the operation of a late payment<br />
charge provided for in a water district or water association tariff or require a water district or water<br />
association to demonstrate to the commission that the late payment charge is required to recover<br />
customer-specific costs incurred that would otherwise result in a monetary loss to the utility or<br />
increased rates to other customers.<br />
Representative Derek Lewis (R-London), Representative Josh Bray (R-Mount Vernon), Kentucky Rural Water Association Executive<br />
Director Gary Larimore and <strong>KLC</strong> Executive Director/CEO J.D. Chaney testified in the final days of the <strong>2021</strong> session for passage of<br />
House Bill 272.<br />
62 www.<strong>KLC</strong>.org
NOTES<br />
www.<strong>KLC</strong>.org<br />
63
64 www.<strong>KLC</strong>.org<br />
<strong>KLC</strong>.ORG