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2022 KLC Legislative Update

The 2022 Legislative Update provides information on measures that impact cities that legislators passed in the 2022 Regular Session of the General Assembly.

The 2022 Legislative Update provides information on measures that impact cities that legislators passed in the 2022 Regular Session of the General Assembly.

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KENTUCKY LEAGUE OF CITIES <strong>2022</strong><br />

LEGISLATIVE<br />

UPDATE<br />

<strong>KLC</strong>.ORG


<strong>2022</strong> <strong>KLC</strong> LEGISLATIVE UPDATE<br />

TABLE OF CONTENTS<br />

Alcoholic Beverages ------------------------------------------------------------<br />

HB 252 Minimum Age for Service of Alcoholic Beverages<br />

HB 500 Sale of Distilled Spirits<br />

HB 536 Limited-Sale Precincts and Caterer Licensure<br />

Section 1<br />

Building & Electrical Inspections ---------------------------------------------<br />

HB 33 Local Plan Review for School Construction<br />

HB 192 Electrical Inspectors on State Highway Projects<br />

Section 2<br />

Controlled Substances ---------------------------------------------------------<br />

HB 92 Opioid Abatement Trust Fund<br />

HB 604 Kentucky Center for Cannabis Research<br />

SB 56 Opioid Antagonists<br />

SB 90 Pilot Program for Behavioral Health Offenders<br />

Section 3<br />

Crimes and Punishment --------------------------------------------------------<br />

HB 48 False Reporting of an Incident<br />

HB 154 Driving Under the Influence<br />

HB 215 Importing or Trafficking in Fentanyl<br />

SB 179 Criminal Offenses Committed During Declared Emergency<br />

Section 4<br />

Declared Emergencies ---------------------------------------------------------<br />

HB 43 Religious Organizations and Declared Emergencies<br />

SJR 150 Termination of COVID-19 Emergency Declaration<br />

Section 5<br />

Disaster Relief -------------------------------------------------------------------<br />

HB 5|SB 5 State Aid for Tornado and Storm-Damaged Communities<br />

SB 150 Disaster Recovery Funds<br />

Section 6<br />

Economic Development --------------------------------------------------------<br />

HB 274 Transportation Improvement Districts<br />

HB 315 Broadband Deployment<br />

SB 111 Local Development Area for Tax Increment Financing<br />

Section 7


Emergency Services -----------------------------------------------------------<br />

HB 363 Commercial Mobile Radio Service (CMRS) Fund<br />

HB 512 Heart Attack Response and Treatment<br />

HB 777 Ground Ambulance Services<br />

Section 8<br />

Fire Departments --------------------------------------------------------------<br />

HB 372 Fire Districts and Nonprofit Fire Departments<br />

SB 189 Volunteer Fire Department Aid<br />

Section 9<br />

Fiscal Matters -------------------------------------------------------------------<br />

HB 1 Executive Branch Biennial Budget<br />

HB 482 Area Development District Funds<br />

Section 10<br />

Law Enforcement --------------------------------------------------------------<br />

HB 206 Peace Officer Certification<br />

HB 239 Constable Peace Officer Powers<br />

HB 565 Police Officer Virtual Training<br />

SB 96 Law Enforcement Council Seat for Bowling Green<br />

SB 176 Use of Facial Recognition Technology<br />

SB 241 Hunter Education Exemption for Peace Officers<br />

Section 11<br />

Local Government Administration ------------------------------------------<br />

HB 307<br />

HB 314<br />

HB 335<br />

HB 345<br />

HB 351<br />

HB 399<br />

HB 594<br />

SB 42<br />

SB 106<br />

SB 112<br />

Self-Insurance Liability & Workers’ Comp. Group Investments<br />

Operation of Consolidated Local Government<br />

City Representation on the KY Law Enforcement Council &<br />

Recovery Ready Communities Advisory Council<br />

Military Leave<br />

Local Records Affidavits<br />

Municipal Audit Procedures<br />

Cost Analysis of State Administrative Regulations<br />

Local Government Procurement<br />

Administrative Dissolution of Inactive Cities<br />

Interlocal Agreement Amendments<br />

Section 12


<strong>2022</strong> <strong>KLC</strong> LEGISLATIVE UPDATE<br />

TABLE OF CONTENTS<br />

Open Meetings ------------------------------------------------------------------ Section 13<br />

HB 399 Public Meeting Requirement for Municipal Road Aid and LGEA Funds<br />

HB 453 Open Meeting Exceptions and Video Teleconferencing<br />

Planning and Zoning -----------------------------------------------------------<br />

HB 195<br />

Natural Gas Pipeline Location Notification<br />

Section 14<br />

Public Safety Personnel --------------------------------------------------------<br />

HB 79 Mental Health Training for Telecommunicators<br />

HB 414 Police Officer and Firefighter Personnel Policies<br />

HB 562 Peace Officer or Firefighter-Involved Critical Incident<br />

SB 64 Peer Counseling for Public Safety Employees<br />

Section 15<br />

Retirement -----------------------------------------------------------------------<br />

HB 49 Anti-Spiking Limitations<br />

HB 76 Actuarial Analysis<br />

HB 297 Kentucky Public Pensions Authority Reforms<br />

SB 209 CERS Retiree Health Insurance Benefits<br />

Section 16<br />

School Resource Officers ------------------------------------------------------<br />

HB 63<br />

School Resource Officers<br />

Section 17<br />

Solid Waste Management -----------------------------------------------------<br />

HB 45 Advanced Recycling<br />

HB 758 Water and Wastewater Systems<br />

SB 152 Solid Waste Management Franchise Notification Exceptions<br />

Section 18<br />

Taxation --------------------------------------------------------------------------<br />

HB 6 Valuation of Motor Vehicles for Property Tax<br />

HB 8 State Tax Reform Measures<br />

HB 607 Occupational License Fees at Racetrack Extensions<br />

Section 19


Transportation -----------------------------------------------------------------<br />

HB 241 Transportation Cabinet Budget Appropriations<br />

SB 124 Overweight Trucks<br />

SB 174 Slow-Moving Public Safety Vehicles<br />

Section 20<br />

Unemployment Insurance ----------------------------------------------------<br />

HB 4 Unemployment Insurance Reform<br />

HB 144 Unemployment Insurance Employer Rates<br />

Section 21<br />

Flip to Page 73 to look up House and<br />

Senate bills by page number.<br />

NOTE<br />

The effective date of all legislation enacted by the <strong>2022</strong> Regular Session of the General Assembly<br />

is July 14, <strong>2022</strong>, except for measures containing emergency or delayed effective date provisions. (OAG 22-04)<br />

If a bill reported in this update becomes effective on a date other than July 14, <strong>2022</strong>, it is noted<br />

in the summary of the bill.


1) ALCOHOLIC BEVERAGES<br />

House Bill 252 – Alcohol Server Age Requirements<br />

Representative Killian Timoney (R–Lexington)<br />

House Bill 252 amends KRS 244.090 to lower the age requirement for selling and serving<br />

alcoholic beverages from 20 to 18 if he or she is under the supervision of a person at least 20<br />

years of age or older. Any individual employed under the age of twenty (20) shall not have<br />

any duties that include bartending or commercial sexual activity under KRS 529.010(3).<br />

House Bill 252 also permits a person at least 18 years old whose employment does not include<br />

the sale or service of alcoholic beverages to work in a warehouse of a wholesaler or distributor<br />

if there is an employee on the premises who is at least 21 years of age.<br />

Rep. Killian Timoney (R-Lexington) testifies<br />

before a House committee.<br />

House Bill 500 ‒ Sale of Distilled Spirits<br />

Representative Chad McCoy (R–Bardstown)<br />

House Bill 500 amends or creates new sections of KRS Chapters 241 and 243 to establish a<br />

legal framework for existing private selection events and expand other sales and program<br />

opportunities for distilled spirits.<br />

The bill amends KRS 241.010 to define a “private selection event” as a private event with<br />

a licensed distiller during which participating consumers, retail licensees, wholesalers,<br />

distributors, or a distillery’s representatives select a single barrel or a blend of barrels of the<br />

distiller’s products to be specially packaged for the participants. “Private selection package”<br />

is defined as bottle of distilled spirits sourced from the barrel or barrels selected by<br />

participating consumers, retail licensees, wholesalers, distributors, or a distillery’s<br />

representatives during a private selection event.<br />

6 www.<strong>KLC</strong>.org


1) ALCOHOLIC BEVERAGES<br />

House Bill 500 amends KRS 243.0305 to allow a distiller to conduct private selection events<br />

and sell private selection packages at retail as follows:<br />

1. To consumers who participate in a private selection event only by selling the private<br />

selection packages through a wholesaler and to a licensed retailer of the consumer’s<br />

choice;<br />

2. To retail licensees that participate in a private selection event only through a licensed<br />

wholesaler;<br />

3. Distillers may sell private selection packages to wholesalers and distributors that<br />

participate in a private selection event if the private selection packages resulting from<br />

the event are sold only through a licensed retailer; and<br />

4. Directly from the distillery premises to distillery visitors, limited to three liters per<br />

person per day. There is no limit on the number of single barrels a distillery may sell per<br />

year.<br />

The bill creates a new section of KRS Chapter 243 to permit a limited non-quota package<br />

license to be issued as a supplemental license to a licensee with an NQ1 or NQ2 retail drink<br />

license or a limited restaurant license in a jurisdiction that has authorized the sale of distilled<br />

spirits and wine by the package. The limited non-quota package license authorizes the<br />

licensee to purchase private selection packages in the original manufacturer’s unopened<br />

containers and sell private selection packages at retail in the original manufacturer’s<br />

unopened container for consumption off the licensed premises.<br />

Additionally, the legislation permits a distiller that sells souvenir packages and serves<br />

complimentary samples at its licensed premises to maintain one separately licensed offpremises<br />

retail sales outlet to sell souvenir packages and serve complimentary samples. The<br />

off-site premises must be located in a wet territory or in a precinct that authorizes alcoholic<br />

beverage sales by the distillery ‒ potentially downtowns and communities without a local<br />

distillery.<br />

The bill also does the following:<br />

• Allows distillers to offer complimentary samples and sell bottles at fairs, festivals, and<br />

farmers markets.<br />

• Allows retailers to offer free samples and sell bottles of wine and spirits at fairs, festivals,<br />

and farmers markets in the county where they are licensed.<br />

• Legalizes current sales of barrel-aged and batched cocktails not previously authorized in<br />

Kentucky law because the alcohol was not poured from its original container.<br />

An emergency is declared. House Bill 500 became law when the governor signed it on March<br />

29, <strong>2022</strong>.<br />

www.<strong>KLC</strong>.org<br />

7


1) ALCOHOLIC BEVERAGES<br />

House Bill 536 – Limited-Sale Precincts and Caterer Licensure<br />

Representative Scott Sharp (R–Ashland)<br />

House Bill 536, a <strong>KLC</strong> initiative, repeals and re-enacts KRS 242.1242, which only applied to<br />

the City of Ashland with its limited-sale precincts. The bill ensures Ashland has the same<br />

powers and authorities as other Kentucky cities, including the ability to issue non-quota<br />

licenses and seek an amendment to the number of quota package license limitations through<br />

Kentucky Department of Alcoholic Beverage Control administrative regulations. House Bill<br />

536 maintains the validity of any license issued by the city before the Act’s effective date,<br />

continues to permit the city to impose a regulatory fee within the precincts, and expands the<br />

ability to impose the fee throughout the city.<br />

House Bill 536 also amends KRS 243.033 to permit those holding a caterer’s license to<br />

transport, sell, serve, and deliver alcoholic beverages to precincts established as moist<br />

territories if at least 10% of the caterer’s gross receipts are from food purchases. In addition,<br />

the bill repeals the prohibition on a caterer serving alcoholic beverages at an event hosted<br />

by or jointly with a caterer licensee, allowing a caterer to transport, sell, serve, and deliver<br />

alcoholic beverages in moist precincts at events hosted or co-hosted by the caterer.<br />

(From L to R) Rep. Scott Sharp (R-Ashland), Ashland Mayor Matt Perkins, and City Attorney<br />

Jim Moore testify before the House Local Government Committee in support of House Bill 536.<br />

8 www.<strong>KLC</strong>.org


2) BUILDING & ELECTRICAL INSPECTIONS<br />

House Bill 33 – Local Government School Facilities Inspection<br />

Representative Josh Branscum (R–Russell Springs)<br />

House Bill 33 amends KRS 198B.060 to permit local governments jurisdiction over plan<br />

review, inspection, and enforcement responsibility of educational buildings other than<br />

licensed day care centers when the local government and Department of Housing, Building,<br />

and Construction have a written agreement for such expanded jurisdiction. Before House<br />

Bill 33, local governments did not have jurisdiction over these educational buildings. Copies<br />

of documentation related to a local government’s plan review, inspection, and enforcement<br />

must be provided to the Kentucky Department of Education when they are issued to a school<br />

district.<br />

House Bill 192 ‒ Electrical Inspectors on State Highway Projects<br />

Representative Sal Santoro (R‒Union)<br />

House Bill 192 amends KRS 227.460 to allow the electrical contractor on a state highway<br />

project by or on behalf of the Kentucky Transportation Cabinet to have the option of selecting<br />

an electrical inspector approved by the Cabinet or appointed by a local government pursuant<br />

to KRS 227.480 for inspections between the service disconnect and a facility owned or<br />

operated by an electric utility within the public right-of-way. The inspection could not be<br />

related to buildings for human occupancy.<br />

www.<strong>KLC</strong>.org<br />

9


3) CONTROLLED SUBSTANCES<br />

House Bill 92 ‒ Opioid Abatement Trust Fund<br />

Representative Danny Bentley (R‒Russell)<br />

House Bill 92 amends KRS 15.293 relating to the opioid abatement trust fund established in<br />

the State Treasury as a trust and agency account for receiving funds from settlements or<br />

judgments against named defendant drug manufacturers. The amendment adds 50% of all<br />

funds from bankruptcy proceedings involving the named defendants and funds from any<br />

named defendant in the National Prescription Opiate Litigation to the opioid abatement<br />

trust fund.<br />

The remaining 50% of all proceeds received from settlements, judgments, or bankruptcy<br />

proceedings not included in the fund must go to local governments per the negotiation<br />

class distribution metrics established in the National Prescription Opiate Litigation in the<br />

United States District Court for the Northern District of Ohio.<br />

If the negotiation class distribution metrics would result in a city receiving less than<br />

$30,000 in any individual settlement, judgment, or bankruptcy proceeding, the payment<br />

shall go to the county, consolidated local government, or urban county government in<br />

which the city is located.<br />

Nothing in the Act establishes or precludes establishing a state backstop agreement as<br />

defined in the National Prescription Opiate Litigation.<br />

An emergency is declared. House Bill 92 became law when the governor signed it on April<br />

26, <strong>2022</strong>.<br />

Rep. Danny Bentley (R-Russell) speaks<br />

on the House floor on Feb. 8.<br />

10 www.<strong>KLC</strong>.org


3) CONTROLLED SUBSTANCES<br />

House Bill 604 ‒ Kentucky Center for Cannabis Research<br />

Representative Kimberly Moser (R–Taylor Mill)<br />

House Bill 604 creates a new section of KRS Chapter 164 to establish the Kentucky Center for<br />

Cannabis at the University of Kentucky to advance the study of cannabis and its derivatives<br />

to treat certain medical conditions and diseases as recommended by the center’s advisory<br />

board. The university president will appoint members to the board, which will oversee<br />

the center’s activities, research agenda, and finances. The board will report its activities<br />

and expenditures to the secretary of the Cabinet for Health and Family Services and the<br />

<strong>Legislative</strong> Research Commission by Sept. 1 each year for the preceding fiscal year.<br />

Clinical research conducted by the center will include but not be limited to the effectiveness<br />

of cannabis and cannabis derivatives for the treatment of certain medical conditions and<br />

diseases, the potential risks or side effects from the use of cannabis or cannabis derivatives,<br />

and the efficacy and potential health effects of various cannabis delivery methods, including<br />

vaporizing, ingestible, topical applications, and combustion.<br />

The center shall: (1) employ a director and necessary staff; (2) seek, accept, and expend<br />

gifts, grants, or donations from private or public sources to support the role and mission<br />

of the center; (3) conduct clinical research, clinical studies, and clinical trials as approved<br />

by appropriate federal agencies; (4) establish an application for individuals interested in<br />

participating in cannabis-related clinical research, clinical studies, or clinical trials and a<br />

screening protocol to place interested applicants in appropriate research participant pools;<br />

(5) publicly disseminate the research conducted or funded by the center; (6) host an annual<br />

cannabis research symposium; and (7) upon request from the Cabinet for Health and Family<br />

Services, enter into a memorandum of understanding with the cabinet for data collected by<br />

the center or any researcher associated with or funded by the center.<br />

The center may award research funds to any nonprofit Kentucky-based research entity or any<br />

Kentucky institution of higher education. If the center awards research funds to any other<br />

entity, the center shall use an open, competitive grant application process using national best<br />

practices. Any entity or institution that receives research funds from the center shall present<br />

the results of its research in the year after the research is concluded or an update on any<br />

ongoing research at the center’s annual research symposium.<br />

House Bill 604 appropriates up to $2 million in Fiscal Year 2023 General Fund money to the<br />

University of Kentucky to create and operate the Kentucky Center for Cannabis, including<br />

expenses related to conducting clinical research and participant recruitment.<br />

The University of Kentucky and the Kentucky Center for Cannabis shall prepare and submit an<br />

application to the federal Drug Enforcement Agency for registration as a marijuana grower.<br />

An emergency is declared. House Bill 604 became law when the governor signed it on April<br />

26, <strong>2022</strong>.<br />

www.<strong>KLC</strong>.org<br />

11


3) CONTROLLED SUBSTANCES<br />

Senate Bill 56 ‒ Opioid Antagonists<br />

Senator Donald Douglas (R–Nicholasville)<br />

Senate Bill 56 amends KRS 15.291, 217.177, and 217.186 to replace references to naloxone<br />

with the words opioid antagonist due to additional approved options to combat opioid<br />

overdoses. “Opioid antagonist” is defined in KRS 217.186 as naloxone or any U. S. Food and<br />

Drug Administration-approved opioid antagonist designed to reverse the effects of an opioid<br />

overdose.<br />

KRS 217.186 is further amended to authorize a peace officer, jailer, firefighter, paramedic,<br />

emergency medical technician, or a school employee permitted to administer medication<br />

under KRS 156.502 to, in addition to current authority, receive, possess, and administer an<br />

opioid antagonist. The measure also gives authority to administer an opioid antagonist to<br />

anyone trained on the mechanisms and circumstances of its administration as part of a harm<br />

reduction program.<br />

Likewise, the measure broadens a pharmacist’s authority to dispense an opioid antagonist<br />

to any person or agency who, as part of a harm reduction program, trains the public on the<br />

mechanisms and circumstances of administering an opioid antagonist to include any licensed<br />

health care provider.<br />

Senate Bill 90 ‒ Pilot Program for Behavioral Health Offenders<br />

Senator Whitney Westerfield (R‒Crofton)<br />

Senate Bill 90 creates new sections of KRS Chapter 533 to establish a behavioral health<br />

conditional dismissal pilot program beginning Jan. 1, 2023. The program will allow eligible<br />

individuals to receive treatment for a behavioral health disorder instead of incarceration.<br />

Successful completion of the program would result in the dismissal of the original charges.<br />

“Behavioral health disorder” means a mental health and/or substance use disorder, or both.<br />

The Chief Justice of the Supreme Court shall establish pilot programs in at least 10 counties<br />

and each will continue for four years unless extended or limited by the General Assembly. The<br />

legislation includes detailed program requirements, including access to medical treatment,<br />

counseling, education, and vocational counseling and training.<br />

Any person may utilize the program:<br />

1. Who is at least 18 years old and a Kentucky resident;<br />

2. Whose clinical assessment indicates the presence of a behavioral health disorder;<br />

3. Who is charged with a qualifying offense;<br />

4. Who does not have a previous conviction for a Class A, B, C, or D felony or a<br />

misdemeanor that is not a qualifying offense; and<br />

5. Who has been assessed by pre-trial services as a low-risk, low-level offender, or the<br />

commonwealth’s attorney or defense attorney identifies as a viable participant.<br />

12 www.<strong>KLC</strong>.org


3) CONTROLLED SUBSTANCES<br />

“Qualifying offense” means a misdemeanor or Class D felony that is not: (1) an offense that would<br />

qualify the person as a violent offender; (2) a sex crime; (3) an offense under KRS 189A.010<br />

(driving under the infuence); (4) an offense against a victim who has a protective order against<br />

the defendant when the offense is charged; or (5) an act of domestic violence and abuse.<br />

Following arrest and within 72 hours of getting booked into a jail or detention facility, any person<br />

charged with a qualifying offense shall undergo a clinical assessment to determine if he or she<br />

may have a behavioral health disorder. The Cabinet for Health and Family Services shall provide<br />

a list of approved assessors for each county participating in a pilot program. If a person charged<br />

with a qualifying offense is released before receiving a clinical assessment, he or she individually<br />

or through counsel may request at any time during the proceedings a clinical assessment by a<br />

qualified mental health professional from the list of approved assessors.<br />

The measure creates the Behavioral Health Conditional Dismissal Program Implementation<br />

Council to help implement the pilot program. The membership of the council shall include: (1)<br />

the executive director of the Office of Drug Control Policy; (2) the director of the Administrative<br />

Office of the Courts; (3) the commissioner of the Department for Behavioral Health,<br />

Developmental, and Intellectual Disabilities; (4) the commissioner of the Kentucky Department<br />

for Medicaid Services; (5) the public advocate; (6) a member of the Kentucky Commonwealth’s<br />

Attorneys’ Association elected by its membership; (7) a member of the Kentucky County<br />

Attorney’s Association; (8) one judge elected by the Circuit Judges Association; (9) one judge<br />

elected by the District Judges Association; (10) the executive director of the Kentucky Jailers<br />

Association; and (11) two individuals selected by the Kentucky Association of Regional Programs,<br />

one of whom shall be in recovery from a substance use disorder and one of whom is being<br />

treated or has been treated for a mental health disorder.<br />

Senate Bill 90 creates the Behavioral Health Conditional Dismissal Program trust fund, which the<br />

Department for Behavioral Health, Developmental, and Intellectual Disabilities will administer<br />

within the Cabinet for Health and Family Services. The fund may contain appropriations by the<br />

General Assembly for the behavioral health conditional dismissal program. The bill appropriates<br />

$10.5 million each fiscal year from the Opioid Abatement Trust Fund to the Behavioral Health,<br />

Developmental, and Intellectual Disabilities budget unit for the behavioral health conditional<br />

dismissal pilot program.<br />

Sen.Whitney Westerfield<br />

(R-Crofton) rises to speak<br />

in the Senate.<br />

www.<strong>KLC</strong>.org<br />

13


4) CRIMES & PUNISHMENT<br />

House Bill 48 ‒ False Reporting of an Incident<br />

Representative Phillip Pratt (R–Georgetown)<br />

House Bill 48 amends KRS 519.040 to create a new Class D felony for falsely reporting an<br />

incident that results in an emergency response. “Emergency response” means a response by<br />

two or more first responders to a reported incident that: (1) is of such an emergent nature that<br />

the exemptions from traffic regulations for emergency vehicles provided under KRS 189.940<br />

would apply; and (2) jeopardizes or could jeopardize public safety.<br />

A person is guilty of falsely reporting an incident that results in an emergency response<br />

when the person: (1) knowingly causes a false alarm of a fire or another emergency with any<br />

organization, official, or volunteer that deals with emergencies involving danger to life or<br />

property, and the false report results in an emergency response; or (2) initiates or circulates<br />

a report or warning of an alleged occurrence or impending occurrence of a fire or another<br />

emergency under circumstances likely to cause public inconvenience or alarm when the<br />

person knows the information reported, conveyed, or circulated is false or baseless, and the<br />

false report results in an emergency response.<br />

Authorities may prosecute any violation in the county where the defendant resides, the false<br />

report was communicated, or an emergency response occured. A court imposing a sentence<br />

on a defendant convicted of falsely reporting an incident that results in an emergency<br />

response shall order restitution to any agency or organization for the reasonable costs of the<br />

emergency response and to any person who suffered damages caused by the emergency<br />

response. An order of restitution shall be treated as a civil judgment for the purposes of<br />

enforcement.<br />

The bill creates a new section of KRS Chapter 411 to provide a civil cause of action against the<br />

alleged perpetrator by any person who suffers harm because of a false report that results in<br />

an emergency response. The cause of action is in addition to any restitution ordered by the<br />

court.<br />

House Bill 154 ‒ Driving Under the Influence<br />

Representative Patrick Flannery (R–Olive Hill)<br />

HB 154 amends several statutes related to driving under the influence. The bill amends KRS<br />

189A.085 to make impoundment of license plates upon conviction of an offense under KRS<br />

189A.010 discretionary rather than mandatory. If a person fails to surrender his or her license<br />

plate or plates at the final hearing or within 45 days after court-ordered, the court may issue<br />

an order directing the sheriff or any other peace officer to seize the license plate or plates and<br />

deliver them to the court.<br />

The bill also amends KRS 189A.103 to require a breath test to be performed in accordance<br />

with the manufacturer’s instructions or instructions adopted by the Department of Criminal<br />

14 www.<strong>KLC</strong>.org


4) CRIMES & PUNISHMENT<br />

Justice Training and approved by the manufacturer. The secretary of the Justice and Public<br />

Safety Cabinet shall keep available for public inspection and provide upon request and<br />

without charge copies of the manufacturer’s instructions or instructions adopted by the<br />

Department of Criminal Justice Training and approved by the manufacturer for all models of<br />

breath-testing instruments in use by the commonwealth.<br />

Additionally, House Bill 154 amends KRS 189A.105 to authorize a judge to issue a search<br />

warrant for a defendant’s blood or urine test when charged with a violation of KRS 189.010,<br />

rather than limiting warrants to instances where authorities charge a person after someone<br />

is killed or suffers physical injury. If the incident involves a deadly motor vehicle accident, the<br />

investigating peace officer shall seek a warrant for blood testing unless the testing has already<br />

been completed by consent.<br />

An emergency is declared. House Bill 154 became law on April 5, <strong>2022</strong>, when delivered to the<br />

secretary of state.<br />

House Bill 215 ‒ Importing or Trafficking in Fentanyl<br />

Representative Chris Fugate (R–Chavies)<br />

House Bill 215 amends KRS 218A.1410 to enhance the penalty for importing carfentanil,<br />

fentanyl, or fentanyl derivatives from at least 50% of the imposed sentence to 85% with no<br />

eligibility for pretrial diversion.<br />

The bill also amends KRS 218A.142 to enhance the penalty for aggravated trafficking in 10<br />

grams or more of carfentanil or fentanyl derivatives from the current required service of at<br />

least 50% of the imposed sentence to at least 85% with no eligibility for pretrial diversion.<br />

Senate Bill 179 ‒ Criminal Offenses Committed During a Declared Emergency<br />

Senator Danny Carroll (R–Paducah)<br />

Senate Bill 179 amends KRS 508.025, 511.020, 511.030, 511.040, 511.060, 511.070, 511.080,<br />

512.020, 512.030, 512.040, 514.030, 514.040, 514.110, and 515.020 relating to the criminal<br />

offenses of assault in the third degree; burglary in the first, second, and third degree; criminal<br />

trespass in the first, second, and third degree; criminal mischief in the first, second, and third<br />

degree; theft by unlawful taking; theft by deception; receiving stolen property; and robbery<br />

in the first degree. The bill charges the offenses one level higher than the level otherwise<br />

required if the offense occurs during a declared emergency as defined in KRS 39A.020 arising<br />

from a natural or man-made disaster within the area covered by the emergency declaration<br />

and within the area impacted by the disaster.<br />

www.<strong>KLC</strong>.org<br />

15


5) DECLARED EMERGENCIES<br />

The bill also amends KRS 500.080 to define “natural or man-made disaster” to mean a<br />

tornado, storm, other severe weather, earthquake, flood, or fire that poses a significant threat<br />

to human health and safety, property, or critical infrastructure. “Impacted by the disaster”<br />

means the location or in reasonable proximity to the location where a natural or man-made<br />

disaster has caused physical injury, serious bodily injury, death, or substantial damage to<br />

property or infrastructure.<br />

House Bill 43 ‒ Religious Organizations and Declared Emergencies<br />

Representative Shane Baker (R–Somerset)<br />

House Bill 43 amends KRS 39A.100 to limit the powers of a governmental entity to act during<br />

a declared state of emergency relating to religious organizations. The term “governmental<br />

entity” includes the commonwealth and any of its political subdivisions, any agency of the<br />

state, and any person acting under the color of state law.<br />

A governmental entity shall not prohibit or restrict a religious organization from operating<br />

or engaging in religious services during a declared emergency to any greater extent than<br />

imposed on other organizations or businesses that provide essential services necessary<br />

and vital to the health and welfare of the public. The governor may require religious<br />

organizations to comply with neutral health, safety, or occupancy requirements applicable<br />

to all organizations and businesses that provide essential services if the requirements do not<br />

impose a substantial burden on a religious organization or its services unless essential to<br />

further a compelling governmental interest in the least restrictive manner.<br />

A religious organization may assert a claim against a governmental entity or as a defense in<br />

any judicial or administrative proceeding for interference with the right to engage in religious<br />

services. Remedies available to a religious organization against a governmental entity include<br />

declaratory relief, injunctive relief, compensatory damages, reasonable attorneys’ fees and<br />

costs, and any other appropriate relief. Sovereign, governmental, and qualified immunity are<br />

waived to the extent of any liability.<br />

Senate Joint Resolution 150 ‒ Termination of COVID-19 Emergency Declaration<br />

Senator Donald Douglas (R–Nicholasville)<br />

Senate Joint Resolution 150 terminates the declaration of emergency regarding the SARS-<br />

COV-2 virus in Executive Order 2020-215 that the governor signed on March 6, 2020. The<br />

termination includes all subsequent executive orders, emergency administrative regulations,<br />

suspensions of statutes, and other directives that relied upon the declaration according to<br />

General Assembly authority to terminate emergency declarations by joint resolution under<br />

KRS 39A.090(4).<br />

16 www.<strong>KLC</strong>.org


5) DECLARED EMERGENCIES<br />

Upon expiration of the executive order, the governor shall not declare a new SARS-COV-<br />

2-related emergency or continue to implement any of the powers under KRS Chapter<br />

39A based upon the same or substantially similar facts and circumstances as the original<br />

declaration without the prior approval of the General Assembly.<br />

An emergency is declared. The resolution became effective upon adoption by the Senate and<br />

House of Representatives and delivery to the secretary of state on March 22, <strong>2022</strong>.<br />

Sen. Donald Douglas (R-Nicholasville)<br />

stands in the Senate on the first day of the<br />

legislative session.<br />

www.<strong>KLC</strong>.org<br />

17


6) DISASTER RELIEF<br />

House Bill 5/Senate Bill 5 – State Aid for Tornado/Storm Damaged Communities<br />

Representative Richard Heath (R–Mayfield)/Senator Jason Howell (R-Murray)<br />

House Bill 5 creates the West Kentucky State Aid Funding for Emergencies (SAFE) Fund as<br />

a separate fund administered by the Department of Military Affairs, Division of Emergency<br />

Management to support recovery and provide financial assistance to those impacted by<br />

December 2021 storms and tornadoes.<br />

The legislation appropriates General Fund money in the amount of $200 million in Fiscal<br />

Year 2021-<strong>2022</strong> to the fund with an initial allocation of $45 million directed as follows: (1)<br />

$30 million to the Kentucky Department of Education for school districts impacted by the<br />

December 2021 storms and tornadoes to assist schools in addressing additional transportation<br />

costs for children displaced from their district or county; after-school services and activities;<br />

tutoring; mental health counseling services; and (2) $15 million to the Department of Military<br />

Affairs, Division of Emergency Management to be used for procuring temporary FEMA-eligible<br />

housing units.<br />

The remaining $155 million will be set aside until the full extent of damages and needs in the<br />

region can be determined. Eligibility to receive financial support shall be limited to a city,<br />

county, nonprofit, public utility service provider, state agency, or school district with disasterrelated<br />

needs caused by the storms.<br />

Recipients may use the money for eligible expenses to support disaster and recovery relief,<br />

including, but not limited to:<br />

• Replacement or renovation of public buildings damaged by the storms and tornadoes;<br />

• Reimbursement for services, personnel, and equipment provided during the response and<br />

recovery to communities impacted by the storms and tornadoes;<br />

• Funding to cities, counties, and publicly owned utilities for the costs of replacement or<br />

repair of publicly owned buildings and their contents due to the damage from the storms<br />

and tornadoes;<br />

• Assistance to cities and counties for expenses related to planning efforts for rebuilding and<br />

recovering from the damage;<br />

• Assistance to utilities serving Graves, Caldwell, Muhlenberg, and Hopkins counties for<br />

resilient response and future risk reduction through the burying of utility wires that will<br />

enhance power reliability, reduce power loss, and lessen the risk to human life; and<br />

• Assistance to support disaster recovery and relief needs of local school districts, including<br />

but not limited to financial support for school districts that will experience a default in<br />

bond payments and financial support to assist school districts with building needs.<br />

House Bill 5 and Senate Bill 5 contained an emergency clause and became effective upon the<br />

governor’s signature on Jan. 13, <strong>2022</strong>.<br />

18 www.<strong>KLC</strong>.org


6) DISASTER RELIEF<br />

Senate Bill 150 ‒ Disaster Recovery Funds<br />

Senator Robby Mills (R–Henderson)<br />

Senate Bill 150 amends House Bill 5 (2020) to appropriate additional funds from the West<br />

Kentucky State Aid Funding for Emergencies (SAFE) fund to provide financial assistance and<br />

support to those impacted by the December 2021 storms and tornadoes.<br />

Eligibility to receive financial support from the funds is limited to local governments, nonprofit<br />

service providers, public utilities, state agencies, school districts, and qualified lenders with<br />

disaster-related needs resulting from the storms, but only to the extent of damage the storm<br />

directly caused.<br />

“Qualified lender” means a cooperative lender or a depository institution defined in 12 U.S.C.<br />

sec. 1813(c), which has a physical presence in Kentucky and maintains good standing as<br />

reported by the Department of Financial Institutions.<br />

The bill appropriates $121 million in Fiscal Year <strong>2022</strong> from the SAFE fund to the Department<br />

of Military Affairs budget unit for the Division of Emergency Management. Recipients include<br />

those who: (1) meet SAFE fund eligibility; (2) have applied or requested state assistance<br />

from the SAFE fund; and (3) have submitted a request from a local official that includes a<br />

description and cost estimate of immediate needs.<br />

Senate Bill 150 creates new sections of KRS Chapter 154 Subchapter 20 to establish a<br />

process for qualified lenders to make loans to an eligible company, defined as a business<br />

entity that has or had an existing business that experienced direct or indirect loss from the<br />

December 2021 storms and tornadoes. The measure establishes in the State Treasury a trust<br />

and agency account maintained by the Cabinet for Economic Development known as the<br />

Western Kentucky Risk Assistance Fund. The measure appropriates $25 million in FY <strong>2022</strong><br />

from the SAFE fund to the Western Kentucky Risk Assistance Fund. The fund will be used to<br />

pay a qualified lender on the unpaid principal balance of a commercial loan in a documented<br />

amount up to the lesser of the first 25% of the loss suffered on the unpaid principal balance on<br />

a commercial loan or $1 million.<br />

An emergency is declared. Senate Bill 150 became law when the governor signed it on April<br />

15, <strong>2022</strong>.<br />

Sen. Robby Mills (R-Henderson) speaks<br />

on the Senate Floor on Feb. 10.<br />

www.<strong>KLC</strong>.org<br />

19


7) ECONOMIC DEVELOPMENT<br />

House Bill 274 ‒ Transportation Improvement Districts<br />

Representative Sal Santoro (R–Union)<br />

House Bill 274 creates new sections of KRS Chapter 184 to establish a framework for local<br />

governments to create transportation improvement districts to coordinate and finance<br />

transportation infrastructure improvement projects in a specific area, generally for economic<br />

development purposes. A legislative body of a city with a population of at least 20,000,<br />

a county, or a group of up to three contiguous counties may create a transportation<br />

improvement district (TID) governed by a board of trustees.<br />

The TID board of trustees may provide for the construction, reconstruction, improvement,<br />

alteration, or repair of any road, highway, public place, or other infrastructure if the board<br />

determines the public improvement will benefit the area. Contracts for improvements may<br />

provide that the improvement may be owned by the district or by the person or corporation<br />

supplying it to the district under a lease in a public-private partnership.<br />

Rep. Sal Santoro (R-Union) testifies before the Senate<br />

Licensing and Occupations Committee on March 8.<br />

Photo courtesy LRC Public Information.<br />

A Board of Trustees shall govern a city-established TID. The city’s legislative body shall<br />

appoint five voting members, and the area planning commission shall appoint one nonvoting<br />

member. All members must be residents of the city establishing the district. A TID established<br />

by a single county shall be governed by a board of trustees consisting of five voting members<br />

appointed by the legislative body of the county, one nonvoting member appointed by the<br />

legislative body of the largest city in the county, and one nonvoting member appointed by<br />

the area planning commission. The legislation also provides for the composition of a Board of<br />

Trustees for a TID established by two or three contiguous counties.<br />

20 www.<strong>KLC</strong>.org


7) ECONOMIC DEVELOPMENT<br />

All county-appointed members must be residents of one of the counties establishing the<br />

district.<br />

A TID board of trustees must hold a public hearing when proposing a public improvement.<br />

The board must provide notice of the hearing, indicate the area by metes and bounds in<br />

which the public improvement will occur, the area that will benefit from the improvement,<br />

and hear all testimony provided by any parties affected by the proposed improvement. After<br />

the hearing, the board shall present the proposal, including all relevant details of the proposal<br />

and the public hearing, to the body or bodies that established the district. Each of the bodies<br />

must approve the project before the district can proceed.<br />

If the board finds the improvement will result in general or special benefits to the area, it may<br />

request that the body or bodies that created the district establish a local development area<br />

in accordance with KRS 65.7041 to 65.7083 to allow for tax increment financing to defray<br />

project costs. In addition to bonds issued pursuant to KRS 65.7041 to 65.7083, the TID board<br />

of trustees may provide by resolution for the issuance of bonds to pay all or part of the cost<br />

of a project. The TID may pledge net revenues, including bond revenues, to secure payments<br />

to be paid by the district under a lease, lease-purchase agreement, or lease with the option to<br />

purchase. The district shall hold all titles to real and personal property.<br />

The legislation additionally permits the Transportation Cabinet to undertake a demonstration<br />

project to study, develop, and demonstrate ways to facilitate public-private cooperation<br />

and flexibility in financing, constructing, maintaining, or operating transportation projects.<br />

It may take all steps necessary and appropriate to facilitate the efforts of a transportation<br />

improvement district. Such steps may include advising and providing technical assistance to<br />

the district. They may also include designating Transportation Cabinet engineers to serve as<br />

the Cabinet’s agent to review project designs and determine if they meet state and federal<br />

specifications.<br />

www.<strong>KLC</strong>.org<br />

21


7) ECONOMIC DEVELOPMENT<br />

House Bill 315 ‒ Broadband Deployment<br />

Representative Brandon Reed (R–Hodgenville)<br />

House Bill 315 creates a new section KRS Chapter 224A to establish the Office of Broadband<br />

Development within the Kentucky Infrastructure Authority. The office will serve as the central<br />

broadband planning and coordination entity for the state and the single point of contact<br />

and liaison to federal agencies and programs regarding broadband issues to develop and<br />

implement a statewide broadband plan. Alternatively, the Kentucky Infrastructure Authority<br />

may contract with a private nonprofit corporation with at least five years of broadband and<br />

telecommunications public policy research and mapping experience to fulfill the office’s<br />

purposes, duties, and responsibilities. The authority shall report the office’s activities to the<br />

<strong>Legislative</strong> Research Commission semiannually on Jan. 1 and July 1 each year.<br />

Additional duties of the Office of Broadband Development include administrating the state’s<br />

broadband deployment fund the State Treasury established pursuant to KRS 124A.112 in<br />

2020. The General Assembly appropriated $300 million in federal American Rescue Plan Act<br />

(ARPA) funds in Fiscal Year 2023 to provide grants to governmental agencies and private<br />

sector entities to construct the infrastructure needed to provide broadband to households<br />

and businesses in underserved and unserved areas. When awarding grant funds, the office<br />

shall award funding to addresses with no service first, then to unserved addresses, and lastly<br />

to underserved addresses.<br />

All funded projects require at least a 50% match of the total project cost unless the project<br />

area encompasses five locations or less per route mile, which may reduce the required match<br />

to 30% of the total project cost. Five-10 locations per route mile may reduce the required<br />

match to 40%. Matching funds shall be paid by: (1) a private source, including but not limited<br />

to financial institutions that serve rural electric cooperatives; (2) a city, county, urban-county<br />

government, or consolidated local government; or (3) any combination of matching money<br />

provided by a private source and a local government.<br />

The measure also establishes the following:<br />

1. The Rural Infrastructure Improvement Program for reimbursement of a portion of<br />

eligible pole replacement costs incurred for the construction of broadband networks<br />

for service to residences or businesses within a qualifying unserved or underserved<br />

area; and<br />

2. The Rural Infrastructure Improvement Fund within the State Treasury, administered by<br />

the Office of Broadband Development, to reimburse to qualified applicants under the<br />

Rural Infrastructure Improvement Program.<br />

House Bill 315 appropriates $20 million of Kentucky’s ARPA State Fiscal Recovery Funds in<br />

Fiscal Year <strong>2022</strong> to the Rural Infrastructure Improvement Fund.<br />

The bill also appropriates $182.8 million for Fiscal Year <strong>2022</strong> from Kentucky’s ARPA<br />

Coronavirus Capital Projects Fund and $67.2 million from the ARPA State Fiscal Recovery<br />

22 www.<strong>KLC</strong>.org


7) ECONOMIC DEVELOPMENT<br />

Fund to the Broadband Deployment Fund, with no more than $50 million to be awarded<br />

before May 1, <strong>2022</strong>.<br />

An emergency is declared. House Bill 315 became law on April 14, <strong>2022</strong>, when delivered to the<br />

secretary of state.<br />

<strong>KLC</strong> Executive Director/CEO J.D. Chaney and Sen. Rick Girdler<br />

(R-Somerset) testify in support of Senate Bill 111.<br />

SB 111 – Local Tax Increment Finance & Kentucky Board of Tax Appeals<br />

Senator Rick Girdler (R–Somerset)<br />

Senate Bill 111, a <strong>KLC</strong> initiative, amends a law legislators enacted in the last minutes of<br />

the 2021 Regular Session of the General Assembly that required extensive reporting by<br />

local governments that established local-only tax increment financing districts without<br />

state participation. The bill amends KRS 65.7407 to permit a city or county that pledges<br />

occupational license fees as part of the local tax revenues to support the local development<br />

area to engage the services of an independent consultant or financial advisor to analyze the<br />

data and prepare a report related to the project. Senate Bill 111 also sets out the components<br />

that the report may include. If the city elects to engage these services, the developer<br />

requesting the establishment of the local development area shall pay the costs associated<br />

with the independent consultant or financial advisor and the preparation of the report unless<br />

the city or the county agrees to pay it.<br />

Senate Bill 111 amends another law legislators enacted in the final minutes of the 2021 Regular<br />

Session of the General Assembly that expanded the jurisdiction of the Kentucky Board of Tax<br />

Appeals to give it authority to hear appeals on city taxation matters. The measure amends<br />

www.<strong>KLC</strong>.org<br />

23


8) EMERGENCY SERVICES<br />

<strong>KLC</strong> Director of Public Affairs Bryanna L. Carroll and Sen. Rick Girdler (R-Somerset) testify before<br />

the Senate State and Local Government Committee in favor of Senate Bill 111 on Feb. 3.<br />

KRS 49.020 to restore the Kentucky Board of Tax Appeals to its original jurisdiction by<br />

removing its authority to hear appeals from cities and special taxing districts.<br />

Senate Bill 111 contained an emergency clause and became effective upon the governor’s<br />

signature on March 25, <strong>2022</strong>.<br />

House Bill 363 ‒ Commercial Mobile Radio Service (CMRS) Fund<br />

Representative Mark Hart (R–Falmouth)<br />

House Bill 363 amends KRS 65.7631 to revise the apportionment of money in Kentucky’s<br />

Commercial Mobile Radio Service (CMRS) fund. The Kentucky 911 Services Board in the Office<br />

of Homeland Security administers the fund. House Bill 363 increases funding for expanded<br />

Next Generation 911 (NG911) initiatives, services, and applications without increasing 911 fees<br />

on wireless communication devices. NG911 allows the public to send digital data such as texts,<br />

photos, and videos to 911 call centers, also known as public safety answering points (PSAPs).<br />

Wearable medical devices, car computers, and building alarms can also transmit data to<br />

PSAPs through NG911.<br />

House bill 363 apportions CMRS funds as follows until Aug. 1, <strong>2022</strong>:<br />

1. 2.5% to pay administrative costs and expenses of the board;<br />

2. 2.5% to establish or maintain statewide 911 initiatives for the adoption and operation of<br />

NG911 services and applications; and<br />

24 www.<strong>KLC</strong>.org


8) EMERGENCY SERVICES<br />

3. 10% for direct grants, matching money, or other PSAP funds as determined by the<br />

board to establish and improve 911 services.<br />

The legislation increases the amount of funds apportioned to establish and maintain statewide<br />

911 initiatives from 2.5% to 5% on and after Aug. 1, <strong>2022</strong>, and before July 1, 2024, to help adopt<br />

and operate NG911 services. The rate returns to 2.5% on July 1, 2024.<br />

To support the increase to 5% on and after Aug. 1, <strong>2022</strong>, the amount of funds apportioned<br />

for direct grants, matching money, or funds to PSAPs is reduced from 10% to 7.5% on and<br />

after Aug. 1, <strong>2022</strong>, and before July 1, 2024, when the rate returns to 7.5%. Additionally, the bill<br />

lowers the cap for direct grants, matching money, or other PSAP funds from $3 million to $2.5<br />

million in any fiscal year.<br />

When the balance of money collected and not yet obligated for permitted purposes exceeds<br />

$2.5 million in any fiscal year, the excess amount shall be distributed 5% to each state police<br />

dispatch center that previously qualified for PSAP pro rata formula funding, but now only<br />

provides backup services. Each post shall receive one-half of a pro rata share determined by<br />

dividing one-half by the total number of qualifying PSAPs that request funding. The remaining<br />

balance shall be distributed equally to all remaining qualifying PSAPs.<br />

The bill also amends KRS 65.7631 to increase eligibility requirements for a PSAP to receive<br />

CMRS funds. In addition to current requirements, a PSAP must adopt and participate in all<br />

board-funded statewide NG911 projects, programs, and initiatives required to meet federal<br />

directives and support or implement NG911 emergency services internet protocol networks,<br />

core services, and geographic information services components.<br />

The Act takes effect on Aug. 1, <strong>2022</strong>.<br />

Rep. Mark Hart (R-Falmouth) rises to<br />

speak on the House floor before the<br />

day’s session on Feb. 8.<br />

www.<strong>KLC</strong>.org<br />

25


8) EMERGENCY SERVICES<br />

House Bill 512 ‒ Heart Attack Response and Treatment<br />

Representative David Meade (R–Stanford)<br />

House Bill 512 creates new sections of KRS Chapter 211 to require the Department for Public<br />

Health to establish and implement a plan to achieve continuous improvement in the quality<br />

of care provided under a statewide heart attack response and treatment system. The bill<br />

designates licensed hospitals as a Level 1 Comprehensive Cardiac Center, Level 2 Primary<br />

Heart Attack Center, or Level 3 Acute Heart Attack Ready. A hospital may apply to the<br />

department to be a Level 1, 2, or 3 hospital. If a hospital applies for recognition, it must<br />

demonstrate to the department’s satisfaction that the hospital meets applicable criteria.<br />

• Level I ‒ A hospital certified as a Comprehensive Cardiac Center hospital by a nationally<br />

recognized guidelines-based organization that provides comprehensive cardiac center<br />

certification for heart attack care.<br />

• Level II ‒ A hospital certified as a Primary Heart Attack Center by a nationally recognized<br />

guidelines-based organization that provides primary heart attack center certification for<br />

heart attack care.<br />

• Level III ‒ A hospital certified as Acute Heart Attack Ready by a nationally recognized<br />

guidelines-based organization that provides acute heart attack ready certification for heart<br />

attack care.<br />

The department shall recognize any hospital as Level 1, 2, or 3 if it meets the established<br />

criteria and maintains an active certification.<br />

By June 1 of each year, the department shall: (1) send a list of recognized Level 1, 2, and 3<br />

hospitals to the medical director of each licensed emergency medical services provider in<br />

Kentucky and maintain a copy of the list on its website; and (2) establish pre-hospital care<br />

protocols related to the assessment, treatment, transport, and routing of heart attack patients<br />

by emergency medical services providers, which shall include protocols for the development<br />

and implementation of plans for the triage and transport of acute heart attack patients.<br />

All emergency medical services authorities in the state shall establish training requirements to<br />

ensure that licensed emergency medical services providers and 911 dispatch personnel receive<br />

regular training on assessing and treating heart attack patients.<br />

Within 120 days of the Act’s effective date, the department shall promulgate administrative<br />

regulations to implement the provisions of the Act.<br />

House Bill 777 – Ground Ambulance Services<br />

Representative Ken Fleming (R–Louisville)<br />

House Bill 777 amends KRS 216B.020 to create an exception for cities and counties from<br />

obtaining a certificate of need (CON) for the provision of ground ambulance services to<br />

provide emergency ambulance transport services to their respective jurisdictions. It also<br />

26 www.<strong>KLC</strong>.org


8) EMERGENCY SERVICES<br />

permits a city or county to contract with a hospital to provide these services under a CON<br />

exemption. The legislation prohibits the city or county from transferring any license obtained<br />

under the CON exemption and prohibits a county from providing services under the CON<br />

exclusion within the limits of a city unless the city agrees.<br />

In addition, House Bill 777 creates a CON exception for hospitals to provide transport from a<br />

hospital, both emergency and nonemergency. It also allows non-substantive review of CON<br />

applications for cities, counties, and hospitals, as long as a hospital receives a city and county<br />

response on their position before a Cabinet review. The bill prohibits the transfer of any<br />

license except among cities, counties, and hospitals obtained in non-substantive review.<br />

The CON exemptions and non-substantive review provisions expire on July 1, 2026, but any<br />

action taken under the sections while effective does not expire.<br />

House Bill 777 amends KRS 311A.015 to move the Kentucky Board of Emergency Medical<br />

Services (KBEMS) from its administrative attachment to KCTCS to be an independent state<br />

government agency. It also changes KBEMS membership and requires the city appointment to<br />

come from a list of three nominees submitted by the Kentucky League of Cities. Additionally,<br />

the bill amends KRS 311A.190 to require data sharing between KBEMS and the Cabinet and<br />

gives the Cabinet the authority to investigate and hold hearings on ambulance complaints.<br />

The legislation creates a new technical advisory committee on emergency medical services<br />

with membership, including a mayor recommended by the Kentucky League of Cities. That<br />

committee is tasked with examining issues in ambulance transport and reviewing the overall<br />

need for the CON process in the provision of ambulance services.<br />

<strong>KLC</strong> Executive Director/CEO J.D. Chaney, Rep. Ken Fleming (R-Louisville), and Kentucky Hospital<br />

Association (KHA) President Nancy Galvagni testify in support of House Bill 777 on March 3 before the<br />

House Health and Family Services Committee.<br />

www.<strong>KLC</strong>.org<br />

27


9) FIRE DEPARTMENTS<br />

House Bill 372 ‒ Fire Districts and Nonprofit Fire Departments<br />

Representative Mark Hart (R–Falmouth)<br />

House Bill 372 amends KRS 95A.055 to encompass all fire departments in the current<br />

definition of “fire department.” The definition divides fire departments into “fire districts”<br />

and “nonprofit fire departments.” Thus, “fire district” means any fire protection district or<br />

volunteer fire department district operating under KRS Chapter 75 with higher annual receipts<br />

or annual expenditures of less than $100,000. “Nonprofit fire department” means any fire<br />

department incorporated under KRS Chapter 273.<br />

The bill amends the remaining provisions of KRS 95A.055 to refer to “fire district” or<br />

“nonprofit fire department” as appropriate in place of the term “fire department.” The<br />

amendments clarify that only fire districts provide administrative, budgetary, and fiscal<br />

information. The current requirement for fire departments to be subject to a financial review<br />

every four years is changed to every 12 months for both fire districts and nonprofit fire<br />

departments.<br />

Senate Bill 189 – Volunteer Fire Department Aid<br />

Senator Stephen Meredith (R–Leitchfield)<br />

Senate Bill 189 amends KRS 95A.520 and KRS 95A.540 to provide that for volunteer fire<br />

department mergers occurring before the effective date of July 14, <strong>2022</strong>, the Fire Commission<br />

will continue to pay the merged district for the first through the third year following the<br />

merger the number of qualified shares of volunteer department aid equal to the total number<br />

that each department would have received before the merger and through the fourth through<br />

the sixth year half of the qualified share plus one full share.<br />

Senate Bill 189 removes the limitation for merged fire departments to the first three years<br />

following a merger to permit departments that merge after July 14, <strong>2022</strong>, to receive the<br />

total number of qualified shares that were received before to merger indefinitely. For any<br />

department that merged after July 14, <strong>2022</strong>, that falls out of compliance, the Fire Commission<br />

must suspend state aid payments until the department comes back into compliance. If a<br />

department returns to qualification within 90 days, the department shall be entitled to receive<br />

payment of multiple shares. However, if the department fails to become compliant within 90<br />

days and later returns to its qualified status, it shall only receive one share of aid and shall not<br />

be entitled to the multiple shares again.<br />

28 www.<strong>KLC</strong>.org


10) FISCAL MATTERS<br />

House Bill 1 ‒ Executive Branch Biennial Budget<br />

Representative Jason Petrie (R–Elkton)<br />

House Bill 1 provides $16 billion for the General Fund in each year of the <strong>2022</strong>-2024 biennium.<br />

Provisions include:<br />

• $100 million in federal American Rescue Plan Act (ARPA) funds for marketing and<br />

promotion of tourism, including $25 million to tourism commissions for local tourism<br />

grants.<br />

• Funds to increase the annual supplement paid to police officers and firefighters from<br />

$4,000 to $4,300 annually with an additional $1 million appropriated for reimbursement of<br />

administrative costs incurred by employers.<br />

• Funds to increase the annual volunteer fire department supplement from $11,000 to $11,500.<br />

• $28.5 million to the Department of Criminal Justice Training in Fiscal Year 2023 to<br />

construct a new indoor firing range.<br />

• $2.5 million in Fiscal Year <strong>2022</strong> to conduct a feasibility study for a law enforcement training<br />

center in Madisonville. Subject to the results, the General Assembly intends to authorize<br />

a capital project for law enforcement training at the Western Kentucky Regional Training<br />

Center in Madisonville.<br />

• $2 million in each fiscal year for Operation UNITE to support drug abuse prevention<br />

and recovery efforts in 32 southern and eastern Kentucky counties. House Bill 604<br />

appropriated another $1 million in Fiscal Years <strong>2022</strong>, 2023, and 2024.<br />

• $48 million each fiscal year to continue the state’s contractual payments to KentuckyWired<br />

to expand statewide broadband access.<br />

Additional provisions:<br />

• $150 million to maintain and renovate Kentucky state parks.<br />

• $7.8 million for additional mental health professionals in schools.<br />

• Pension contributions for the Kentucky Employees Retirement System (KERS), State Police<br />

Retirement System (SPRS), and the Kentucky Teachers’ Retirement System (KTRS). That<br />

includes $215 million in additional funds in Fiscal Year <strong>2022</strong> to SPRS and $135 million in FYs<br />

2023 and 2024 to the KERS nonhazardous pension fund to pay down unfunded liabilities.<br />

House Bill 604 provided an additional $135 million in FYs 2023 and 2024 to the KERS<br />

nonhazardous pension fund.<br />

• An 8% pay raise for all state workers in the first fiscal year, with the potential for up to a<br />

12% pay raises in the second fiscal year after a pay study. The bill also includes raises for<br />

social workers, the Kentucky State Police, and public defenders.<br />

www.<strong>KLC</strong>.org<br />

29


10) FISCAL MATTERS<br />

• Full-day kindergarten and increases in per-pupil funding for local school districts from<br />

$4,000 to $4,100 in FY 2023 and $4,200 in FY 2024.<br />

• $250 million for the state’s rainy day fund.<br />

House Bill 482 ‒ Area Development District Funds<br />

Representative Chris Fugate (R–Chavies)<br />

House Bill 482 amends KRS 147A.100 to require the Department for Local Government to<br />

allocate area development district funds appropriated to the Joint Funding Administration<br />

Program in accordance with the following formula:<br />

1. 70% divided equally among all area development districts;<br />

2. 20% based on each area development district’s proportionate share of the total state<br />

population as identified by the most recent federal decennial census; and<br />

3. 10% based on each area development district’s proportionate share of total<br />

incorporated cities and counties as identified by the secretary of state’s land office<br />

records at the time of the allocation.<br />

Upon the unanimous written direction of all area development districts, the department shall<br />

reduce the allocation based on a proportionate share of total incorporated cities and counties,<br />

and instead allocate those funds to provide additional nonfederal dollars to area development<br />

districts to maximize federal awards.<br />

An emergency is declared. House Bill 482 became law when the governor signed it on April 8,<br />

<strong>2022</strong>.<br />

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11) LAW ENFORCEMENT<br />

House Bill 206 ‒ Peace Officer Certification<br />

Representative Rachel Roberts (D–Newport)<br />

House Bill 206 amends KRS 15.382 and 15.386 to prohibit anyone convicted of a misdemeanor<br />

sexual offense under KRS 510.120, 510.130, or 510.140; a second or subsequent offense under<br />

KRS 510.148; or a criminal attempt, conspiracy, facilitation, or solicitation to commit any<br />

degree of rape, sodomy, sexual abuse, or sexual misconduct from getting certified as a peace<br />

officer or returning to active certification from inactive status.<br />

The bill also amends KRS 15.391 to require revocation of a peace officer’s certification if he or<br />

she pleads guilty, is convicted, or enters an Alford plea to a sexual offense under KRS 510.120,<br />

510.130, 510.140, or 510.148; a criminal attempt, conspiracy, facilitation, or solicitation to<br />

commit any degree of rape, sodomy, sexual abuse, or sexual misconduct; any criminal offense<br />

committed in another state that would, if committed in Kentucky, constitute a misdemeanor<br />

sexual offense under KRS 510.120, 510.130, or 510.140; or a criminal attempt, conspiracy,<br />

facilitation, or solicitation to commit any degree of rape, sodomy, sexual abuse, or sexual<br />

misconduct.<br />

House Bill 239 – Constable Peace Officer Powers<br />

Representative Adam Koenig (R–Erlanger)<br />

House Bill 239, a <strong>KLC</strong> initiative, amends KRS Chapter 70 to prohibit constables and deputy<br />

constables taking office after Jan. 1, 2023, who were not a constable or deputy constable in<br />

the preceding four-year term of office from exercising the general powers of a peace officer<br />

or police officer unless the individual has been Peace Officer Professional Standards (POPS)<br />

certified and maintains the certification through the required in-service training required of<br />

other police officers. Newly elected constables and deputy constables that are not trained still<br />

maintain the other duties of the office that existed prior to the enactment of House Bill 239,<br />

including the ability to serve legal process.<br />

House Bill 239 sets forth the qualifications of deputy constables and establishes the manner<br />

in which a judge/executive or mayor in a consolidated local government and urban county<br />

government must approve their authorization.<br />

Additionally, House Bill 239 requires authorized constables and their deputies to complete<br />

reports each calendar month to the fiscal court or county clerk in urban county governments<br />

or consolidated local governments in the form required by the office to which the report is<br />

due. At a minimum, the report must include the number and kind of civil processes and orders<br />

the constable and deputies handled, fees collected in civil processes, executed warrants, and a<br />

complete and detailed report on all other acts completed in their official capacity. In counties<br />

with a population of more than 70,000, the fiscal court or legislative body can collect a fee of<br />

25% of the total receipts.<br />

www.<strong>KLC</strong>.org<br />

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11) LAW ENFORCEMENT<br />

House Bill 239 permits constables that have been POPS certified to equip their vehicles with<br />

blue lights without fiscal court authorization but still permits counties to authorize untrained<br />

constables to use blue lights.<br />

House Bill 239 also provides that constables may apply for admission to basic training for<br />

peace officers at any of the schools authorized by the Kentucky Law Enforcement Council,<br />

and it requires the Department of Criminal Justice Training to hold one seat per class for a<br />

qualified constable.<br />

House Bill 239 has a delayed effective date of Jan. 1, 2023, except for the provision requiring<br />

the Department of Criminal Justice Training to reserve a seat for a constable to receive<br />

training, which does not become effective until July 1, 2023.<br />

(From L to R) Morehead Police Chief William Hunt, Rep. Adam Koenig (R-Erlanger), and <strong>KLC</strong> Director of Public Affairs<br />

Bryanna L. Carroll testify in support of HB 239 at the Senate State & Local Government Committee hearing on March 24.<br />

House Bill 565 – Police Officer Virtual Training<br />

Representative Kimberly Moser (R–Taylor Mill)<br />

House Bill 565 amends KRS 15A.070 to require the Department of Criminal Justice Training<br />

to promulgate an administrative regulation by Sept. 1, <strong>2022</strong>, to establish procedures and<br />

participation requirements for basic training and annual in-service course instruction for police<br />

trainees and officers to be offered electronically and online through remote instruction. The<br />

Department of Criminal Justice Training has discretion in how to establish the administrative<br />

regulation, but the regulations must comply with the following minimum requirements:<br />

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11) LAW ENFORCEMENT<br />

• By no later than Jan. 1, 2024, at least 10% of the total course instruction required for basic<br />

training to be electronic and online;<br />

• By no later than Jan. 1, 2025, at least 30% of the total course instruction required to<br />

complete annual in-service training be offered online through remote learning;<br />

• Instruction for in-service training made available over the entire calendar year and spread<br />

over a reasonable time so as not to require attendance or participation for an entirety of a<br />

single work week;<br />

• None of the remote training in subject areas that requires the demonstration or use of<br />

physical proficiency or skill; and<br />

• Contain other reasonable procedures and rules to ensure attendance, active participation,<br />

and successful mastery of the subject matter.<br />

In addition, House Bill 565 ensures that by moving some portion of the basic training<br />

online, veterans would not lose access to their GI benefits for education under federal law. If<br />

Kentucky’s state approving agency determines that a portion of basic training being online<br />

constitutes independent study and disqualifies veterans from benefits, then the state agency<br />

must get an official opinion from the United States Department of Veterans Affairs. If that<br />

is unsuccessful, the bill requires the Department of Criminal Justice Training to provide the<br />

training in-person for GI beneficiaries. If it does not qualify, the Kentucky Law Enforcement<br />

Foundation Program Fund would pay GI benefits. If there are insufficient funds in the<br />

program, the employing agency shall pay the benefits to which the veteran would otherwise<br />

be entitled.<br />

Rep. Kimberly Moser (R-Taylor Mill) answers questions on House Bill 565 before<br />

representatives voted 61-31 to pass the measure on March 8.<br />

www.<strong>KLC</strong>.org<br />

33


11) LAW ENFORCEMENT<br />

Senate Bill 96 – Kentucky Law Enforcement Council Seat for Bowling Green<br />

Senator Mike Wilson (R–Bowling Green)<br />

Senate Bill 96 amends KRS 15.315 to add the chief of police of the City of Bowling Green<br />

Police Department to the Kentucky Law Enforcement Council. The City of Bowling Green<br />

established a police training academy after authorization from the Kentucky Law Enforcement<br />

Council, and the chief of any department that conducts an academy has a seat on the Council.<br />

Senate Bill 176 ‒ Use of Facial Recognition Technology<br />

Senator Whitney Westerfield (R–Crofton)<br />

Senate Bill 176 creates a new section of KRS Chapter 61 to establish a working group on facial<br />

recognition technology attached to the Justice and Public Safety Cabinet. The secretary of<br />

the Cabinet shall serve as chair of the working group composed of representatives from the<br />

following organizations nominated by the secretary and appointed by the governor: Kentucky<br />

Association of Chiefs of Police, Department of Criminal Justice Training, Kentucky League of<br />

Cities, Kentucky Association of Counties, and Kentucky Sheriff’s Association.<br />

“Facial recognition technology” means the algorithmic comparison of images of an individual’s<br />

facial features for verification or identification, unless used for authentication to access a<br />

secure device or secure premises.<br />

On or before Jan. 1, 2024, the working group shall create and make publicly available a model<br />

policy for use by law enforcement agencies which shall:<br />

1. Specify the authorized uses of facial recognition technology consistent with the law,<br />

including but not limited to how search results using facial recognition technology<br />

relate to establishing probable cause for arrests;<br />

2. Prohibit the use of facial recognition technology to identify a person participating in<br />

constitutionally protected activities in public spaces unless there is probable cause to<br />

believe that an offense has been committed;<br />

3. Specify requirements for persons within a law enforcement agency that are authorized<br />

to use facial recognition technology;<br />

4. Require a law enforcement agency to specify a process for the agency to document<br />

instances when it uses facial recognition technology;<br />

5. Provide procedures for the confirmation of any initial findings generated by facial<br />

recognition technology by a secondary examiner; and<br />

6. Specify data integrity and retention policies applicable to the data collected by the<br />

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11) LAW ENFORCEMENT<br />

organization, including processes that address maintenance and update of records<br />

used, a routine audit schedule to ensure compliance with the policy, how long the<br />

organization will keep the data, and the processes by which the department will delete<br />

data.<br />

The model policy shall additionally:<br />

1. Specify data security measures, including how data collected will be securely stored,<br />

accessed, and shared with other entities, if applicable, in compliance with the model<br />

policy;<br />

2. Specify training procedures and processes to ensure all personnel who utilize facial<br />

recognition technology or access its data are knowledgeable about and able to ensure<br />

compliance with the policy;<br />

3. Specify a process that requires a law enforcement agency utilizing facial recognition<br />

technology to compare a publicly available or lawfully acquired image against a<br />

database of publicly available or lawfully acquired images;<br />

4. Specify a minimum accuracy standard for face matches in all demographic groups to<br />

ensure nondiscrimination against any demographic group;<br />

5. Provide a mechanism to produce a record of prior uses of facial recognition technology<br />

that can be used to audit and verify images and information used to make a match of a<br />

person; and<br />

6. Provide a process that addresses the privacy of persons by excluding, redacting,<br />

blurring, or otherwise obscuring nudity or sexual conduct involving any identifiable<br />

person.<br />

A law enforcement agency that uses facial recognition technology shall have a policy in place<br />

before using the technology and file a copy and any revisions with the Justice and Public<br />

Safety Cabinet within 30 days of its adoption or revision.<br />

www.<strong>KLC</strong>.org<br />

35


11) LAW ENFORCEMENT<br />

Senate Bill 241 ‒ Hunter Education Exemption for Peace Officers<br />

Senator Jimmy Higdon (R–Lebanon)<br />

Senate Bill 241 amends KRS 150.170 to exempt from the live-fire exercise component of the<br />

Department of Fish and Wildlife required hunter education course for purchasing a hunting<br />

license, peace officers certified pursuant to KRS 15.380-15.404, current members of the Armed<br />

Forces of the United States, and former members of the Armed Forces discharged under<br />

conditions other than dishonorable.<br />

Rep. Bart Rowland (R-Tompkinsville) and <strong>KLC</strong> Executive Director/CEO J.D. Chaney testify in<br />

support of House Bill 307 before the Senate Banking and Insurance Committee on March 15.<br />

36 www.<strong>KLC</strong>.org


12) LOCAL GOV. ADMINISTRATION<br />

HB 307 ‒ Self-Insurance Liability & Workers’ Compensation Groups Investments<br />

Representative Bart Rowland (R–Tompkinsville)<br />

House Bill 307, a <strong>KLC</strong> initiative, amends KRS 304.48-090 and KRS 304.50-055 related to<br />

liability and workers’ compensation self-insurance groups like Kentucky League of Cities<br />

Insurance Services. The amendments modernize the investment options available to insurance<br />

pools to permit additional investments, diversification of risks, and consideration of alternative<br />

credit rating agencies in evaluating the grade of investments permitted under the statute. The<br />

purpose of the amendment is to allow self-insurance groups to earn more from investments to<br />

benefit their participants.<br />

House Bill 307 permits investments in taxable obligations issued by state and local<br />

governments and removes the restriction that any such investment be made in the<br />

commonwealth, its agencies, or political subdivisions, and permits up to half of the<br />

investments made in these types of obligations to be out of state government obligations. In<br />

addition, the bill changes the minimum investment grade from “A” or “AA” to “BBB.”<br />

House Bill 307 changes the minimum investment grade for corporate bonds from “A” to<br />

“BBB.” It permits up to 10% of the investment portfolio in asset-backed securities with a<br />

minimum grade of “BBB” if the bond is issued, assumed, or guaranteed by a solvent institution<br />

created or existing under the laws of the United States or one of its states or territories.<br />

Additionally, House Bill 307 provides that if any security investment is downgraded below<br />

“BBB,” the liability self-insurance group shall divest itself of the investment as soon as<br />

prudently possible without incurring unnecessary losses.<br />

House Bill 314 ‒ Operation of Consolidated Local Government<br />

Representative Jason Nemes (R–Louisville)<br />

House Bill 314 amends several provisions of KRS Chapter 67C relating to the operation of<br />

consolidated local governments. The legislation applies only to the Louisville/Jefferson<br />

County Metro Government.<br />

Term of Office and New Cities<br />

The bill amends KRS 67C.105 to limit the mayor of a consolidated local government to two,<br />

rather than three, consecutive terms after Jan. 1, 2023. It amends KRS 67C.111 to allow qualified<br />

voters of a consolidated local government to establish new cities pursuant to KRS 81.050 and<br />

81.060 with the approval of the consolidated local government’s legislative council effective<br />

after July 15, 2024. Any proposed city must have a population of at least 6,000. The territory<br />

shall not be within any urban services boundary of the consolidated local government or<br />

include any territory currently incorporated within an existing city. As originally adopted, KRS<br />

67C.111 prohibited further incorporation of cities within the boundaries of the consolidated<br />

local government.<br />

www.<strong>KLC</strong>.org<br />

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12) LOCAL GOV. ADMINISTRATION<br />

If 66% or more of the registered voters in the area proposed to be incorporated sign a<br />

petition, the consolidated local government’s legislative council shall approve by resolution<br />

the proposed incorporation. If the legislative council does not act upon the request within 60<br />

days of receipt of the petition, incorporation of the new city shall be deemed approved.<br />

The consolidated local government’s legislative council may, but is not required to, incorporate<br />

a new city if less than 66% of the voters in the area proposed to be incorporated sign the<br />

petition.<br />

Annexation<br />

Cities within a consolidated local government currently may only annex territory under KRS<br />

67C.111 with the approval of the consolidated local government’s legislative council.<br />

House Bill 314 amends KRS 67C.111 to require after July 15, 2024, the consolidated local<br />

government’s legislative council to approve a proposed annexation if the ordinance requesting<br />

the annexation has a petition supporting the move with 66% or more of the voters in the<br />

proposed area. The mayor of the consolidated local government may not veto an ordinance<br />

approving annexation passed by the legislative council.<br />

<strong>Legislative</strong> Council<br />

House Bill 314 amends KRS 67C.139 to give the consolidated local government’s legislative<br />

council 60 days to approve appointments by the mayor to agencies, boards, and commissions<br />

established by statute if approval is required.<br />

The bill also amends KRS 67C.147 to require a consolidated local government to provide a<br />

report at least annually to the legislative council and the urban service tax district board<br />

containing but not limited to an accounting of operating and capital expenditures for each<br />

service performed by the consolidated local government.<br />

Louisville Metro Comprehensive Review Commission<br />

The bill includes a noncodified section to require the mayor to establish the Louisville<br />

Metro Comprehensive Review Commission to receive input from stakeholders, including<br />

business and community leaders, regarding the statutory framework of the consolidated<br />

local government form of government. The commission shall submit its findings and<br />

recommendations to the <strong>Legislative</strong> Research Commission for referral to the appropriate<br />

committee or committees by Sept. 15, 2023.<br />

The Louisville Metro Comprehensive Review Commission shall include: (1) the mayor of the<br />

consolidated local government; (2) the president of the Jefferson County League of Cities;<br />

(3) three members each of the Senate and House of Representatives selected by House and<br />

Senate leadership; (4) three members of the legislative council of Louisville Metro Government<br />

recommended by the president of the council; (5) three members of Greater Louisville<br />

38 www.<strong>KLC</strong>.org


12) LOCAL GOV. ADMINISTRATION<br />

Incorporated recommended by the executive officer; (6) one member of the Jefferson County<br />

Fire Chiefs Association recommended by the president of the association. The <strong>Legislative</strong><br />

Research Commission has final membership approval.<br />

House Bill 335 – City Representation on the Kentucky Law Enforcement<br />

Council & Recovery Ready Communities Advisory Council<br />

Representative Adam Bowling (R–Middlesboro)<br />

House Bill 335, a <strong>KLC</strong> initiative, amends KRS 15.315 to provide that the Kentucky League of<br />

Cities will provide three nominees that are either mayors or city managers for the governor<br />

to make appointments to the Kentucky Law Enforcement Council. It also provides the same<br />

requirement for the Kentucky Association of Counties to provide three judge/executive<br />

nominees to the governor for appointment to the Council. All current appointees are<br />

permitted to serve the remainder of their terms as long as they meet the qualifications for<br />

service. Before the amendment, the governor selected appointees without a list of nominees.<br />

In addition, House Bill 335 amends KRS 222.480 related to appointments to the Recovery<br />

Ready Communities Advisory Council to require that the Kentucky League of Cities submit<br />

three nominees to the governor. Likewise, it requires the Kentucky Association of Counties,<br />

the Kentucky Chamber of Commerce, the Kentucky School Boards Association, and the<br />

Recovery Consortium of Kentucky to make three nominees each to the governor for<br />

appointees that serve their organizations. Prior to House Bill 335, the governor was able to<br />

select appointees to represent these organizations without a list of nominees.<br />

<strong>KLC</strong> Director of Public Affairs Bryanna L. Carroll and Rep. Adam Bowling (R-Middlesboro) testify on March 10.<br />

www.<strong>KLC</strong>.org<br />

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12) LOCAL GOV. ADMINISTRATION<br />

House Bill 345 ‒ Military Leave<br />

Representative Matthew Koch (R–Paris)<br />

House Bill 345 amends KRS 61.394 which required employers to grant leave of absence from<br />

their respective duties without loss of time, pay, regular leave, impairment of efficiency rating,<br />

or of any other rights or benefits to which they are entitled while in the performance of activeduty<br />

or active-duty training to employees who serve in the National Guard or any reserve<br />

component of the Armed Forces of the United States, or of the reserve corps of the United<br />

States Public Health Service. The bill broadens KRS 61.394 to require a leave of absence for an<br />

employee who is a member of a reserve component while: (1) physically disabled because of<br />

an injury, illness, or disease incurred or aggravated in the line of duty while performing activeduty<br />

or inactive-duty training; or (2) entitled to incapacitation pay pursuant to 37 U.S.C. § 204.<br />

Leave due to military disability or incapacity shall not exceed six months unless approved by<br />

the employee’s appointing authority. Employers must pay employees on military leave, upon<br />

request, their salaries or compensation for a period or periods not exceeding 21 days in a<br />

federal fiscal year.<br />

The provisions of KRS 61.394 apply to counties, municipalities, school districts, or other<br />

political subdivisions of the state pursuant to KRS 61.396.<br />

House Bill 351 – Local Records Affidavits<br />

Representative Deanna Frazier Gordon (R–Richmond)<br />

House Bill 351 creates a new section in KRS Chapter 65 to provide a process for local<br />

governments, including cities, to file an affidavit with state government entities regarding<br />

the contents of a lost or damaged record in lieu of filing the original form when it cannot be<br />

produced. It excludes records related to real property transitions, tax collection, elections,<br />

death and disease reporting, and correctional facility reporting requirements.<br />

House Bill 351 provides that when a qualified record is lost, damaged, or destroyed other<br />

than in circumstances where there is intentional tampering to avoid filing requirements a<br />

local government legislative body can present an affidavit of the record’s contents in lieu of<br />

presenting the record itself. A local government following this process shall be deemed in<br />

compliance with the state law or regulation and shall not be penalized.<br />

Prior to submitting an affidavit in accordance with House Bill 351, the local government must<br />

make a good-faith attempt at replacing or recreating the record, including bona fide attempts<br />

to contact the individual or entity in charge of producing or storing the records, reproduction<br />

of the data that constituted the record or recreation of the record, and contact with an<br />

individual or entity that possesses a copy or additional original of the record. If these attempts<br />

are unsuccessful, a local government may submit an affidavit that contains the following<br />

information:<br />

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12) LOCAL GOV. ADMINISTRATION<br />

• The statutory citation requiring submission of the record and a description of the general<br />

contents of what was required to be submitted;<br />

• A description of the circumstances surrounding the loss, damage, or destruction of the<br />

record;<br />

• A detailed description of specific efforts the local government used to reconstruct the<br />

record; and<br />

• A citation of any data or information that the local government has been able to replace or<br />

reconstruct from the original record and the data or information itself.<br />

House Bill 351 also contains a provision that allows a state government entity to require a local<br />

government to reproduce information contained in the record if the state government entity<br />

determines that the information is necessary for governmental operations.<br />

Rep. Deanna Frazier Gordon<br />

(R-Richmond) rises to speak on<br />

House Bill 351. Representatives<br />

voted 82-15 to pass the measure<br />

on Feb. 8.<br />

House Bill 399 – Municipal Audit Procedures<br />

Representative Josh Branscum (R–Russell Springs)<br />

House Bill 399, a <strong>KLC</strong> initiative, amends KRS 91A.040 to adjust the dates on which municipal<br />

audits must be completed and submitted to the Kentucky Department for Local Government<br />

(DLG). The date a city must complete an audit is moved from Feb. 1 to March 1 immediately<br />

following the audited fiscal year. The date of submission of audits to DLG is changed from<br />

March 1 to April 1 immediately following the audited fiscal year. The date for audit-exempt<br />

cities to submit financial statements remains unchanged and is Oct. 1, immediately following<br />

the conclusion of the fiscal year.<br />

www.<strong>KLC</strong>.org<br />

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12) LOCAL GOV. ADMINISTRATION<br />

House Bill 399 also amends KRS 91A.040 to provide new rules regarding cities exempt from<br />

municipal audits based on how much the city receives and expends in a single fiscal year.<br />

Prior to the amendment, the state exempted cities with no long-term debt that received<br />

and expended less than $75,000 from preparing an audit for that fiscal year. House Bill 399<br />

raises the threshold from $75,000 to $150,000. In addition, House Bill 399 requires that cities<br />

that have claimed the amount exemption for four consecutive fiscal years occurring after<br />

July 1, <strong>2022</strong>, have an independent auditor prepare an attestation engagement for the fourth<br />

fiscal year in which the city qualified for the exemption. If an exempted city must have an<br />

attestation engagement completed, the attestation engagement must:<br />

• Be prepared by an independent certified public accountant or by the auditor of public<br />

accounts pursuant to a contract;<br />

• Use generally accepted attestation standards as promulgated by the American Institute of<br />

Certified Public Accountants and any additional procedures established by DLG;<br />

• Be completed by March 1 immediately following the conclusion of the fiscal year in which<br />

the attestation engagement is required and submitted to DLG electronically no later than<br />

April 1 after its completion;<br />

Rep. Josh Branscum (R-Russell Springs) and <strong>KLC</strong> Director of Public Affairs<br />

Bryanna L. Carroll testify in favor of House Bill 399.<br />

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12) LOCAL GOV. ADMINISTRATION<br />

• Advertised to the public within 30 days following its completion through a legal<br />

advertisement of not less than six column inches in a qualified newspaper stating that the<br />

attestation has been completed and provided to the media. This advertisement is in lieu of<br />

the requirement to publish financial statements; and<br />

• Be provided to the auditor of public accounts upon request for review of the final report<br />

and all related work papers and documents regarding the attestation engagement.<br />

House Bill 594 ‒ Cost Analysis of State Administrative Regulations<br />

Representative Phillip Pratt (R–Georgetown)<br />

House Bill 594 amends KRS 13A.250 relating to the promulgation of administrative regulations<br />

to require a two-part cost analysis when considering the cost that an administrative regulation<br />

may cause the state, local governments, or regulated entities. The administrative body must<br />

complete a two-part analysis for each administrative regulation. The first part of the cost<br />

analysis shall include the projected cost or cost savings to the state and each of its affected<br />

agencies and local governments, including cities, counties, fire departments, and school<br />

districts. The second part of the cost analysis shall include the projected cost or cost savings<br />

to regulated entities affected by the administrative regulation.<br />

The fiscal note for the administrative regulation must state whether the regulation will have<br />

a major economic impact on the state, local governments, or regulated entities. House Bill<br />

594 amends KRS 13A.010 to define “major economic impact” as an overall adverse economic<br />

impact from an administrative regulation of $500,000 or more on state or local governments<br />

or regulated entities, in aggregate, as determined by the promulgating administrative body.<br />

The bill also amends KRS 13A.280 to require the administrative body, following the last day<br />

of the comment period, to consider comments submitted by agencies, local governments, or<br />

regulated entities regarding the economic impact of an administrative regulation.<br />

Additionally, the bill amends KRS 13A.030 to allow the Administrative Regulation Review<br />

Subcommittee to consider any administrative regulation deficient if it does not provide an<br />

adequate cost analysis.<br />

An emergency is declared. House Bill 594 became law on April 14, <strong>2022</strong>, when delivered to the<br />

secretary of state.<br />

www.<strong>KLC</strong>.org<br />

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12) LOCAL GOV. ADMINISTRATION<br />

Senate Bill 42 ‒ Local Government Procurement<br />

Senator Stephen Meredith (R–Leitchfield)<br />

Senate Bill 42 amends KRS 45A.380 of the Local Government Model Procurement Code to<br />

expand food items exempted from competitive negotiation requirements, including contracts<br />

for purchasing food such as meat, fish, poultry, egg products, fresh vegetables, and fresh<br />

fruits. The bill also deletes the requirement that contracted perishable items be purchased<br />

weekly or more frequently. The amendment applies only to cities that have adopted the Model<br />

Procurement Code.<br />

The bill also amends KRS 424.260, the general bidding statute applicable to all other cities,<br />

to exempt contracts for the purchase of perishable food such as meat, fish, poultry, egg<br />

products, fresh vegetables, and fresh fruits from a newspaper advertisement and competitive<br />

bidding requirements for procurement by a local government of items involving an<br />

expenditure greater than $30,000.<br />

Senate Bill 106 ‒ Administrative Dissolution of Inactive Cities<br />

Senator Robby Mills (R–Henderson)<br />

Senate Bill 106, a <strong>KLC</strong> initiative, creates a new section of KRS Chapter 81 to provide an<br />

administrative dissolution process for cities that do not collect funds and have no elected<br />

officials. The legislation requires all incorporated cities listed in the secretary of state’s office<br />

and every city operating as a public corporation and unit of local government to file the<br />

following information with the Department for Local Government by Sept. 1, <strong>2022</strong>: (1) name<br />

of the city; (2) the address and phone number of its headquarters; (3) year of incorporation, if<br />

known; (4) its form of government.<br />

Any city that filed with the Department for Local Government as required pursuant to KRS<br />

83A.085 after Jan. 1, <strong>2022</strong>, shall be deemed in compliance without any further action.<br />

If a city does not file the information by Sept. 1, <strong>2022</strong>, the Department for Local Government<br />

shall notify the city of the filing requirement by first-class mail return receipt requested at<br />

its last known address no later than Oct. 15, <strong>2022</strong>. The notice shall include a statement that<br />

failure to comply with the requirement by Dec. 1, <strong>2022</strong>, shall subject the city to administrative<br />

dissolution proceedings.<br />

If a city does not respond by Dec. 1, <strong>2022</strong>, the department shall publish in a newspaper of<br />

general circulation serving the residents in the area of the city pursuant to KRS Chapter 424<br />

and in a prominent place on the department’s website a notice stating:<br />

• The city has failed to respond to Department for Local Government filing requirements and<br />

is therefore subject to dissolution proceedings if the city fails to respond or any citizen,<br />

resident, or creditor fails to enter a defense by Jan. 1, 2023;<br />

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12) LOCAL GOV. ADMINISTRATION<br />

• Creditors of the city are hereby notified that the debts of the city shall be extinguished<br />

if they are not otherwise discoverable in an administrative hearing or unless a successful<br />

defense is entered in an administrative hearing; and<br />

• Citizens, residents, or creditors of the city may enter a defense against the administrative<br />

dissolution by sending a written notice to the Department for Local Government by Jan. 1,<br />

2023, that includes the name of the citizen, resident, or creditor; their contact information;<br />

the name of the city in question; a preliminary statement of their legal claim against the<br />

city; and any other information requested by the Department for Local Government.<br />

After Jan. 1, 2023, the Department for Local Government shall set an administrative hearing<br />

pursuant to KRS Chapter 13B to determine whether the city shall be administratively dissolved<br />

for failure to comply with filing requirements. DLG must conduct the hearing within the<br />

boundaries of the city being administratively dissolved. If no place within the city is suitable, it<br />

must hold the administrative hearing in a place as close as possible to the city to provide easy<br />

access to the hearing for persons living within the city. If a citizen, resident, or creditor of the<br />

city has entered a defense by Jan. 1, 2023, the defense shall be heard at the hearing, and the<br />

hearing officer shall decide whether the city shall be administratively dissolved.<br />

If no citizen, resident, or creditor enters a defense to administrative dissolution, the city shall<br />

be declared administratively dissolved. Any elected official of the city, any citizen or resident<br />

of the city, or any creditor may appeal the hearing officer’s decision in accordance with KRS<br />

Chapter 13B.<br />

No city shall be dissolved if:<br />

1. The city maintains a city government by both the election or appointment of officers<br />

and the levying and collection of taxes;<br />

2. The city provides the information required by the Department for Local Government<br />

before Jan. 1, 2023; or<br />

3. A successful defense is made to the petition for dissolution.<br />

If the city is dissolved, the Department for Local Government shall notify the secretary of state<br />

and the clerk of the county in which the city was located of the dissolution. The county clerk<br />

shall index and file the notice as a permanent office record.<br />

Any debts of the city shall be satisfied on a pro rata basis. Any city assets remaining after<br />

dissolution shall be transferred to the county or counties in which the city was located. If the<br />

creditors agree to a pro rata share of the city’s remaining assets, or if no creditors appear after<br />

notification occurs or the time for entry of a defense elapses, then the remaining debts of the<br />

city shall be extinguished. In no event shall the county be liable for any remaining city debts<br />

after the assignment of any remaining assets.<br />

Any judgment granting dissolution of a city shall not prevent the incorporation of a city at a<br />

future date under the provisions of KRS 81.050 and 81.060 that may include all or a portion of<br />

the boundaries of the former city.<br />

www.<strong>KLC</strong>.org<br />

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12) LOCAL GOV. ADMINISTRATION<br />

If a dissolved city has an operating utility, it shall remain operational pursuant to the authority<br />

under which it was created unless the utility is declared part of the county or reorganized as a<br />

special district. However, the judge/executive of the county in which the utility operates shall<br />

make appointments to replace any board members whose terms expire after the dissolution<br />

of the city. With the agreement of the city utility board, or in the absence of a board at the<br />

discretion of the county judge/executive, the judge/executive may declare the city utility<br />

a department of the county or reorganize it as a special district, either standing alone or<br />

combining it with an existing special district in operation in the county under the provisions of<br />

KRS 67.715.<br />

Senate Bill 112 – Interlocal Agreement Amendments<br />

Senator Wil Schroder (R–Wilder)<br />

Senate Bill 112 amends KRS 65.242 to clarify that when an interlocal agreement is not being<br />

substantively amended and only changed to join new or remove parties that public agencies<br />

shall not be required to file a copy of the amended agreement with the secretary of state in<br />

order for the amendment to become effective.<br />

<strong>KLC</strong> Executive Director/CEO J.D. Chaney and Sen. Wil Schroder (R-Wilder) testify in support of Senate Bill 112 .<br />

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13) OPEN MEETINGS<br />

HB 399 – Public Hearing Requirements for Municipal Road Aid & LGEA Funds<br />

Representative Josh Branscum (R–Russell Springs)<br />

House Bill 399 amends the requirement for cities and counties to conduct separate<br />

public hearings before the expenditure of state funds on local streets and roads and<br />

before spending funds received through the Local Government Economic Assistance Program<br />

(LGEA). The bill amends KRS 42.455 and KRS 174.100 to eliminate the requirement for a full<br />

public hearing on LGEA and municipal road aid fund expenditures that require a publication of<br />

notification about the hearing.<br />

Instead, House Bill 399 establishes identical processes for LGEA funds and municipal road aid<br />

funds that require local governments to allow an opportunity for public input and comments<br />

at a meeting of the local government that it has noticed as required for special meetings<br />

under the Kentucky Open Meetings Act. No publication is required. Local governments<br />

must have the topic listed on the agenda of the meeting where the public may comment<br />

and provide input. While local governments are not bound by any public comment, a local<br />

government cannot begin construction or utilize the funds until it has held a meeting allowing<br />

public comment.<br />

House Bill 453 – Open Meetings Exceptions and Video Teleconferencing<br />

Representative Jonathan Dixon (R–Corydon)<br />

House Bill 453 creates an additional exception to the Kentucky Open Meetings Act at KRS<br />

61.810 to permit a selection committee, evaluation committee, or another similar group to<br />

select a successful bidder for the award of a local contract.<br />

House Bill 453 also amends the Kentucky Open Meetings Act at KRS 61.826 to codify the<br />

practices of public agencies during the COVID-19 pandemic permitted under Senate Bill 150<br />

(2020) in conducting public meetings via video teleconference. Under House Bill 453, a public<br />

agency that wishes to conduct a video teleconferenced meeting shall follow these procedures:<br />

• Provide notification that the public agency is holding the meeting via video teleconference,<br />

including:<br />

• Compliance with the Kentucky Open Meetings Act requirements for notice of special<br />

meetings, when applicable;<br />

• A clear statement that the meeting will be a video teleconference;<br />

• Specific information on how any member of the public or media may view the meeting<br />

electronically; and<br />

• Identification of a physical location for the public to attend the meeting when the<br />

public agency elects to provide a physical location or in any situation where two or<br />

more public agency members are attending from the same physical location.<br />

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13) OPEN MEETINGS<br />

• Members of a public agency participating in the video teleconference must remain visible<br />

and on camera at all times when the agency is discussing business.<br />

• Public agencies may transition a regular meeting to video teleconference without<br />

having to treat it as a special meeting if the meeting occurs on the same date and<br />

time as originally scheduled and if the public agency complies with requirements for<br />

providing notice for a special meeting and notification provisions applicable for video<br />

teleconferenced meetings as set out above.<br />

Additionally, House Bill 453 amends KRS 83A.150 to permit city governments organized<br />

under the city manager form of government to conduct a closed session no more than two<br />

times per year for a performance evaluation of the city manager. The Board of Commissioners<br />

must follow procedures for going into closed sessions provided in KRS 61.815. House Bill 453<br />

also provides that any records related to the performance evaluation shall be subject to the<br />

provisions of the Kentucky Open Records Act.<br />

Rep. Johnathan Dixon (R-Corydon) and <strong>KLC</strong> Executive Director/CEO J.D. Chaney testify before<br />

the House Local Government Committee on Feb. 10 in support of House Bill 453.<br />

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14) PLANNING & ZONING<br />

House Bill 195 ‒ Natural Gas Pipeline Location Notification<br />

Representative DJ Johnson (R–Owensboro)<br />

House Bill 195 creates a new section of KRS 100.273 to 100.292 relating to the approval of new<br />

residential or nonresidential developments by a planning commission in a city or county that<br />

has adopted the provisions of KRS Chapter 100. If a developer filed preliminary development<br />

plans for a new residential or nonresidential development located whole or in part within<br />

660 feet of the center point of a natural gas transmission pipeline or interstate hazardous<br />

liquid pipeline facility that was constructed or operated before the planned development,<br />

a developer in a city or county that has adopted the provisions of KRS Chapter 100 for<br />

purposes of approving residential and nonresidential developments must notify the operator<br />

of the natural gas transmission pipeline or interstate hazardous liquid pipeline facility of the<br />

planned development no later than 10 days from the date of application for approval of the<br />

development or 90 days before construction, whichever is earlier.<br />

Upon receiving notice of the filing of a preliminary development plan, a pipeline operator<br />

shall provide pipeline location information to the developer within 45 days, including but<br />

not limited to documents reflecting the actual location of the pipeline, marking facilities on<br />

design drawings, and maps. The developer shall state on the final plat filed with the planning<br />

commission the following: “The developer has utilized reasonable means to notify the<br />

operator of the pipeline to verify the location of the pipeline and the pipeline easement. The<br />

developer has reviewed, or attempted to review, preliminary information about the proposed<br />

development with the pipeline operator.”<br />

Pipeline operators must file point of contact information with the planning commission or<br />

commissions having jurisdiction in areas of existing gas transmission pipelines by Aug. 15,<br />

<strong>2022</strong>, and update the information as changes occur. Within 60 days of the effective date<br />

of the act, planning commissions are required to gather and confirm the National Pipeline<br />

Mapping System geospatial data regarding the location of pipelines in their jurisdictions<br />

from the Pipeline and Hazardous Materials Safety Administration within the United States<br />

Department of Transportation.<br />

A planning commission shall not give final approval to a development located in whole or<br />

in part within 660 feet of the center point of a natural gas transmission pipeline until the<br />

requirements of the Act have been satisfied. A planning commission may rely solely upon<br />

the following without being subject to liability when determining whether requirements have<br />

been satisfied for purposes of granting final approval of a development: (1) the developer’s<br />

statement on the final plat; (2) the geospatial data gathered from the Pipeline and Hazardous<br />

Materials Safety Administration; (3) the filing of point of contact information by pipeline<br />

operators with the planning commission.<br />

Compliance with the Act shall not exempt developers or operators from the requirements of<br />

the Underground Facility Damage Prevention Act of 1994, KRS 367.4901 to 367.4917.<br />

www.<strong>KLC</strong>.org<br />

49


15) PUBLIC SAFETY PERSONNEL<br />

House Bill 79 ‒ Mental Health Training for Telecommunicators<br />

Representative Bill Wesley (R–Ravenna)<br />

House Bill 79 amends KRS 15.518 to include telecommunicators as eligible participants in the<br />

Law Enforcement Professional Development and Wellness Program that currently offers peer<br />

support and counseling services to law enforcement officers.<br />

The measure also amends KRS 15.550 to require the Kentucky Law Enforcement Council to<br />

(1) incorporate mental health training with a primary focus on post-traumatic stress disorder<br />

(PTSD) into the telecommunicators training program and (2) maintain a current resource list<br />

for all telecommunicators and their supervisors related to the management and treatment of<br />

PTSD and work-induced stress. All telecommunicators who receive or dispatch emergency<br />

medical service calls shall be trained in recognizing and identifying PTSD symptoms.<br />

House Bill 79 amends KRS 15.560 and 15.565 to require each in-service training for<br />

telecommunicators to include a mental health component that highlights PTSD and workinduced<br />

stress. The training shall include symptom recognition, treatment, and available<br />

resources.<br />

Finally, House Bill 79 amends KRS 15.590 to require the Kentucky Law Enforcement Council<br />

to provide to all telecommunication supervisors after each in-service training a guide for<br />

recognizing the symptoms of and available treatment resources for PTSD or work-induced<br />

stress.<br />

House Bill 414 – Police Officer and Firefighter Personnel Policies<br />

Representative John Blanton (R–Salyersville)<br />

House Bill 414 makes several amendments to existing state laws related to the employment of<br />

public safety employees in city police and fire departments, including rehiring retired police<br />

officers and alternative work schedules for police departments.<br />

House Bill 414 amends KRS 90.330, which applies to certain cities that have elected to<br />

adopt a civil service system for their police departments to remove the requirement that an<br />

employee is not older than 46 years of age for initial employment.<br />

House Bill 414 also amends KRS 95.010 to clarify that chiefs of police and chiefs of fire<br />

departments, clerical staff, and maintenance employees are not considered “members” of the<br />

police and fire departments for purposes of the application of KRS 95.450, which requires a<br />

hearing before the legislative body of the city before any disciplinary action in former second<br />

or third class cities. This change means that chiefs and clerical and maintenance employees<br />

in police and fire departments are not entitled to disciplinary hearings before a city takes<br />

adverse personnel action.<br />

Additionally, the amendment to KRS 95.010 excludes clerical and maintenance employees<br />

from the definition of “member” for the application of KRS 95.495, which sets out the work<br />

schedule required for police departments and guarantees vacation leave for members of<br />

police departments in former second or third class cities. This change means that non-<br />

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15) PUBLIC SAFETY PERSONNEL<br />

uniformed clerical and maintenance employees in police departments in these cities do not<br />

have to be scheduled in 8- or 10-hour shifts and are not guaranteed 15 vacation days with full<br />

pay.<br />

House Bill 414 amends KRS 95.450 to clarify that the provisions of the section only apply to<br />

members of a police department in designated cities in situations when the Police Officer Bill<br />

of Rights (KRS 15.520) does not apply. Further, the bill clarifies that KRS 95.450 applies to<br />

written instead of verbal reprimands and specifies that individuals may only file complaints<br />

instead of being able to prefer charges. Instead, for preferred charges to trigger the hearing<br />

process, the mayor, city manager, or legislative body shall decide only when probable cause<br />

appears that the officer has engaged in conduct that would justify his or her dismissal or<br />

punishment.<br />

The additional amendments to KRS 95.450 require the city to hold a hearing within 10 days<br />

after charges are filed instead of three days unless the officer and legislative body agree<br />

otherwise. House Bill 414 also requires the legislative body to serve the accused member with<br />

a copy of the charges and statement of the day, time, and place of the hearing at least five<br />

days before the hearing. Before the amendment, cities had to serve notice two days before<br />

the hearing. The process for appeal from a hearing conducted pursuant to KRS 95.450 is also<br />

changed in KRS 95.460 to provide that a circuit court review of the case shall no longer be<br />

tried as an original action and instead shall review the case solely upon the administrative<br />

record created before the legislative body and any new evidence offered by the officer<br />

regarding alleged arbitrariness on the part of the legislative body.<br />

The bill amends KRS 95.762, which applies to certain cities that have adopted civil service, to<br />

eliminate age requirements for police and fire applicants. In addition, it amends KRS 95.765<br />

to clarify the hearing process applicable in cities that have adopted its provisions to make<br />

clear that the provisions only apply to police officers in situations where the Police Officer Bill<br />

of Rights (KRS 15.520) does not apply and apply the same 10-day requirement for hearings<br />

and five-day notice requirement that is included within the amended version of KRS 95.450<br />

outlined above.<br />

House Bill 414 also provides an exception to KRS 95.495, which governs scheduling police<br />

departments in urban county governments and former second and third class cities by limiting<br />

the schedule to eight hours per day for five days a week or 10 hours per day for four days per<br />

week unless otherwise agreed to by the officer and the city. The exception contained in KRS<br />

337.285 permits a city of the home rule class to adopt an alternative work schedule of 80<br />

hours in a work period of 14 consecutive days. If a city of the home rule class has recognized<br />

a collective bargaining unit, the city and the collective bargaining unit must agree to the<br />

alternative work schedule authorized under the amended version of KRS 337.285.<br />

Lastly, House Bill 414 amends KRS 95.022, which governs the number of retired police officers<br />

a city may rehire without paying employer contributions or health insurance reimbursement<br />

for the retiree. Prior to the amendment, a city police department was limited based on the<br />

number of police officers the city had employed in calendar year 2015. House Bill 414 bases<br />

the cap on the average number of police officers the city employed in the immediately<br />

preceding calendar year.<br />

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15) PUBLIC SAFETY PERSONNEL<br />

Cities that had five or fewer officers have no limit on the number of officers that may be<br />

rehired under KRS 95.022 exemptions. Cities that averaged more than five but less than 100 in<br />

the immediately preceding calendar year may hire up to five or a number equal to 25% of their<br />

average department membership, whichever is greater. Cities that averaged more than 100<br />

officers may hire up to 25 officers or 10% of their average department membership, whichever<br />

is greater.<br />

<strong>KLC</strong> Director of Public Affairs Bryanna L. Carroll, Rep. John Blanton (R-Salyersville), and <strong>KLC</strong><br />

Executive Director/CEO J.D. Chaney testify on House Bill 414.<br />

House Bill 562 ‒ Peace Officer or Firefighter Involved Critical Incident<br />

Representative Ashley Tackett Laferty (D–Martin)<br />

House Bill 562 amends KRS 15.518 to allow a peace officer to take up to 48 hours of leave after<br />

being involved in a critical incident. “Critical incident” means any event that has a stressful<br />

impact sufficient to overwhelm a peace officer’s usual coping strategies. Events may include:<br />

(1) an officer-involved shooting; (2) a vehicle crash resulting in serious injury or death to<br />

an officer or citizen; (3) an officer being the victim of a felonious assault; (4) the death of<br />

a colleague or partner; (5) the death of, or serious injury to, a person in the custody of the<br />

officer; (6) a severe injury to, or death of, a child, particularly if the officer has a child of or<br />

near the same age; (7) an incident involving multiple deaths or injuries in a short amount of<br />

time.<br />

Any peace officer involved directly in a critical incident may take up to 48 hours of leave<br />

immediately following a critical incident. The leave may commence upon completion of<br />

the officer’s shift encompassing the critical incident or when all necessary administrative<br />

procedures relating to the critical incident have been completed and the officer has<br />

informed his or her supervisor. The leave may be paid or unpaid, determined by the officer’s<br />

employment contract, collective labor agreement, if any, or by written departmental policy.<br />

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15) PUBLIC SAFETY PERSONNEL<br />

Firefighter<br />

House Bill 562 amends KRS 95A.292 to allow a firefighter to take up to 48 hours of leave after<br />

being involved in a critical incident. “Critical incident” means any event that has a stressful<br />

impact sufficient enough to overwhelm a firefighter’s usual coping strategies. Events may<br />

include: (1) a fire or vehicle crash resulting in serious injury or death to a first responder or<br />

citizen; (2) a firefighter being the victim of a felonious assault; (3) death of a colleague or<br />

partner; (4) death of or serious injury to a person in the medical care of the firefighter; (5)<br />

a severe injury to, or death of, a child, particularly if the firefighter has a child of or near the<br />

same age; (6) an incident involving multiple deaths or injuries in a short amount of time.<br />

Any firefighter involved directly in a critical incident may take up to 48 hours of leave<br />

immediately following a critical incident. Leave may commence upon completion of the<br />

firefighter’s shift encompassing the critical incident or when all necessary administrative<br />

procedures relating to the incident have been completed and the firefighter has informed<br />

his or her supervisor. For regular and volunteer firefighters, leave may be unpaid or paid<br />

determined by the firefighter’s employment contract, collective labor agreement, or by<br />

departmental policy.<br />

The Act shall not be construed to set aside any employment contract, labor agreement, or<br />

departmental policies that grant more than 48 hours of leave following a peace officer- or<br />

firefighter-involved critical incident.<br />

Senate Bill 64 – Local Peer Support Counseling Programs<br />

Senator Mike Wilson (R–Bowling Green)<br />

Senate Bill 64, a <strong>KLC</strong> initiative, creates a new section in KRS Chapter 65 to provide a process<br />

for public agencies, including cities, counties, and taxing districts, to create peer support<br />

counseling programs for their public safety employees that have been in or exposed to an<br />

emotionally traumatic experience during their employment. Public safety employees are<br />

defined in Senate Bill 64 to include police officers, firefighters, dispatchers, and emergency<br />

medical service employees.<br />

Senate Bill 64 shields the communications occurring between peer support counselors and<br />

participants from disclosure in the same manner patient communications are protected<br />

with a psychiatrist or other type of psychotherapist by providing that the communications<br />

shall remain confidential and shall not be disclosed to any individual not a party to the peer<br />

support counseling session, including in any civil or criminal proceeding. However, the bar<br />

from disclosure does not apply in circumstances where the communication involves any of the<br />

following by a participant:<br />

• An explicit threat of suicide, which does not include any circumstance where the<br />

participant solely shares that he or she is experiencing suicidal thoughts without additional<br />

specifics;<br />

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15) PUBLIC SAFETY PERSONNEL<br />

• An explicit threat of imminent and serious physical injury or death to a clearly or<br />

reasonably identified victim;<br />

• Information related to the abuse or neglect of a child, older adult, or vulnerable individual<br />

that is required by law to be reported;<br />

• An admission of criminal conduct; or<br />

• Information required by any other law to be reported or disclosed.<br />

Senate Bill 64 also provides that the requirements for confidentiality do not extend to<br />

circumstances where the public agency is sharing anonymous data for research, statistical<br />

analysis, or educational purposes or to disclosures of observation or knowledge obtained<br />

outside of the peer support counseling process.<br />

In addition, Senate Bill 64 establishes a Task Force for Public Safety Peer Support Best<br />

Practices within the Department of Behavioral Health contained within the Cabinet for Health<br />

and Family Services to develop a report on best practices and professional standards for peer<br />

support counseling programs within one year of the effective date of the Act. Specifically,<br />

the task force report shall include advice on establishing and operating successful peer<br />

support programs, recommendations on minimum standards for the training and certification<br />

of peer support counselors, recommendations on ethical standards and protocols for peer<br />

support counselors and advice on appropriate disclosures related to confidentiality rights of<br />

participants. The commissioner for the Department of Behavioral Health, Developmental, and<br />

Intellectual Disabilities or his or her designee will chair the task force, which will include the<br />

following appointees:<br />

• A representative of the Kentucky Fraternal Order of Police;<br />

• A representative of the Kentucky Professional Firefighters Association;<br />

• A representative of the Kentucky Department of Criminal Justice Training;<br />

• A representative of the Kentucky Fire Commission;<br />

• A representative of the Kentucky League of Cities;<br />

• A representative of the Kentucky Association of Counties;<br />

• A representative of the Kentucky Board of Emergency Medical Services;<br />

• A representative of the Kentucky Association of Public Safety Communications Officials<br />

and Kentucky Emergency Number Association;<br />

• An individual licensed to provide emergency medical services under KRS Chapter 311A;<br />

and<br />

• Three individuals with experience and expertise in peer counseling services.<br />

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16) RETIREMENT<br />

House Bill 49 – Anti-Spiking Limitations<br />

Representative Jerry Miller (R–Louisville)<br />

House Bill 49 amends KRS 61.598 to exempt from anti-spiking provisions any overtime worked<br />

by an employee participant in any of the state pension plans administered by the Kentucky<br />

Public Pension Authority that meets either of the following criteria:<br />

• The first 100 hours of mandatory overtime hours that the employee is individually required<br />

to work by an employer during a fiscal year. This exemption does not apply to any<br />

overtime hours voluntarily worked by the employee or in any situation where the employee<br />

could elect not to work the overtime hours. This exemption is in addition to any other<br />

overtime exemptions provided in KRS 61.598.<br />

• In addition, overtime exempted during states of emergency declared by the President of<br />

the United States or the governor of the commonwealth, any increase in compensation<br />

related to overtime that is worked as a result of a state of emergency declared by a local<br />

government in which the governor authorizes the mobilization of the Kentucky National<br />

Guard during such time as the National Guard is mobilized.<br />

House Bill 49 contains an emergency clause and became effective when the governor signed<br />

it on April 8, <strong>2022</strong>.<br />

House Bill 76 ‒ Actuarial Analysis<br />

Representative Jerry Miller (R–Louisville)<br />

House Bill 76 amends KRS 21.440, 61.670, 78.784, and 161.400 to require the boards of<br />

the Legislators’ Retirement Plan, the Judicial Retirement Plan, the Kentucky Retirement<br />

Systems, the County Employees Retirement System, and the Teachers’ Retirement System<br />

to perform an actuarial investigation of economic assumptions and funding methods once<br />

every two years rather than once every five years. The investigation shall review the economic<br />

experience under the respective plans, including but not limited to the inflation rate and<br />

investment return assumptions relative to the economic assumptions and funding methods<br />

previously adopted by the board. The investigation shall additionally include, at a minimum,<br />

a summary of the changes in actuarial assumptions and funding methods recommended in<br />

the investigation and the projected impact of the recommended changes on funding levels,<br />

unfunded liabilities, and actuarially recommended contribution rates for employers over 30<br />

years.<br />

The first actuarial investigations of economic assumptions and funding methods under<br />

House Bill 76 shall take place before the completion of the 2023 actuarial valuations for each<br />

system so that any changes in economic assumptions shall be reflected in the 2023 actuarial<br />

valuations.<br />

www.<strong>KLC</strong>.org<br />

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16) RETIREMENT<br />

The bill retains the requirement for a review of demographic experiences under the retirement<br />

plan or system once every five years, including but not limited to mortality tables, withdrawal<br />

rates, and retirement rate assumptions relative to the demographic actuarial assumptions<br />

previously adopted by the respective boards.<br />

The bill also amends KRS 78.784 to require the County Employees Retirement System to<br />

provide a 30-year rather than a 20-year projection of the funding levels, unfunded liabilities,<br />

and actuarially recommended contribution rates for employers based upon the actuarial<br />

assumptions, funding methods, and experience of the system as of the valuation date.<br />

Rep. Jerry Miller (R-Louisville) delivers<br />

remarks on the House floor on the Regular<br />

Session’s second day.<br />

House Bill 297 – Kentucky Public Pensions Authority Reforms<br />

Representative Jerry Miller (R–Louisville)<br />

House Bill 297 amends KRS 61.505 to provide a three-year limitation on the time that the<br />

County Employees Retirement System (CERS) can be charged for expenses incurred by the<br />

Kentucky Retirement Systems (KRS) as a result of the separation of the two systems, but<br />

requires annual reporting by the Kentucky Public Pensions Authority (KPPA) of administrative<br />

costs attributable to separation for each of the systems.<br />

The legislation removes a requirement for employers to report to KPPA nominal fees paid to<br />

volunteers by amending KRS 61.510 and 78.510 to provide that the nominal fees shall not be<br />

aggregated among multiple participating employees.<br />

56 www.<strong>KLC</strong>.org


16) RETIREMENT<br />

In addition, House Bill 297 amends KRS 61.505 to add a new requirement for KPPA to conduct<br />

an annual performance evaluation of the executive director, pre-approve the hiring of up<br />

to six investment employees in unclassified positions, create pay and classification plans<br />

for employees, approve annual personnel reports before submission to the Public Pension<br />

Oversight Board, and require KPPA to approve any budget requests before submitting it to<br />

the legislature.<br />

Because it contained an emergency clause, House Bill 297 became effective on April 14, <strong>2022</strong>,<br />

when the General Assembly overrode the governor’s veto.<br />

Senate Bill 209 – CERS Retiree Health Insurance Benefits<br />

Senator Mike Nemes (R–Shepherdsville)<br />

Senate Bill 209 amends KRS 61.702 and KRS 78.5536 to increase the under age 65 retiree<br />

health subsidy for members of Kentucky Public Pensions Authority (KPPA) administered<br />

retirement systems who began participation after July 1, 2003, to provide an additional $5 in<br />

health insurance benefit for each year worked beyond the normal retirement service period,<br />

provided that the health trusts for each system are 90% or more funded.<br />

The legislation also permits a retiree to use their health benefit to purchase other health<br />

coverage besides the state health insurance plan beginning after Jan. 1, 2023.<br />

(From L to R) Rep. Kevin Bratcher, Kentucky Professional Fire Fighters <strong>Legislative</strong> Affairs Director Brian O’Neil, and Sen. Mike<br />

Nemes (R-Shepherdsville) testify before the House State Government Committee in support of Senate Bill 209 on March 10.<br />

www.<strong>KLC</strong>.org<br />

57


17) SCHOOL RESOURCE OFFICERS<br />

House Bill 63 ‒ School Resource Officers<br />

Representative Kevin Bratcher (R–Louisville)<br />

House Bill 63 amends KRS 158.4414 to require local boards of education, school district<br />

superintendents, administrators of state-controlled facilities, and local and state law<br />

enforcement agencies to cooperate in assigning by Aug. 1, <strong>2022</strong>, one or more certified school<br />

resource officers to serve each campus where one or more school buildings are used to<br />

instruct students continuously, rather than to assign “as funds and qualified personnel become<br />

available” as currently required.<br />

Local boards of education shall ensure that at least one certified school resource officer is<br />

assigned to and working on-site full-time in the school building or buildings on the campus<br />

for each campus in the district. If sufficient funds and qualified personnel are not available for<br />

this purpose for every campus, the local board of education shall fulfill the requirement on a<br />

per campus basis as approved in writing by the state school security marshal until a certified<br />

school resource officer is assigned to and working on-site full-time on each campus in the<br />

district.<br />

Nothing in KRS 158.4414 shall be interpreted or construed to require a local government or<br />

its agencies or offices to fund school resource officer positions required of local boards of<br />

education.<br />

58 www.<strong>KLC</strong>.org


18) SOLID WASTE MANAGEMENT<br />

House Bill 45 ‒ Advanced Recycling<br />

Representative Adam Bowling (R–Middlesboro)<br />

House Bill 45 amends KRS 224.1-010 and KRS 109.012 to regulate advanced plastics recycling<br />

facilities as manufacturing operations instead of solid waste disposal facilities. “Advanced<br />

recycling” means a manufacturing process that breaks down used plastics into their chemical<br />

building blocks for manufacturers to develop new plastic-based products. It is an alternative<br />

to current mechanical recycling processes like sorting and shredding. Both processes help<br />

reduce plastic waste in landfills by creating a circular economy where plastics can be reused<br />

rather than discarded. Advanced recycling is capable through chemical processes of recycling<br />

more types and amounts of plastics that manufacturers can use to create new products, such<br />

as plastics approved for food-grade and medical-grade packaging, and therefore expand<br />

markets for used plastics. The legislation excludes the conversion of plastics for fuel for<br />

energy production from the definition of advanced recycling.<br />

Because advanced recycling involves chemical processes that can lead to public health<br />

hazards if improperly handled, KRS 224.1-010 is amended to make advanced recycling facilities<br />

subject to regulation by the Energy and Environment Cabinet to control environmental<br />

impact.<br />

The bill also amends KRS 224.1-010 and KRS 109.012 to exclude advanced recycling facilities<br />

from the definitions of “municipal solid waste disposal facility”, “solid waste”, “solid waste<br />

management”, and “solid waste management facility” and the respective regulatory<br />

requirements.<br />

Nothing in the Act shall be construed as creating additional entities, equipment, or processes<br />

eligible to receive tax credits pursuant to KRS 141.390.<br />

www.<strong>KLC</strong>.org<br />

59


18) SOLID WASTE MANAGEMENT<br />

House Bill 758 ‒ Water and Wastewater Systems<br />

Representative Jim Gooch (R–Providence)<br />

House Bill 758 creates new sections of KRS Chapter 224A to require the Kentucky<br />

Infrastructure Authority to implement a program to assist governmental agencies that provide<br />

drinking water and wastewater services with the financial resources for both capital and<br />

non-capital expenses, including but not limited to: (1) developing technical, operational, and<br />

maintenance resources and expertise; (2) improving utility infrastructure planning, repair,<br />

maintenance, renovation, and management of plants and assets; (3) obtaining technical<br />

expertise in areas of rate-setting, cost-of-service, and proper utility accounting standards for<br />

the utility type; (4) performing and correcting deficiencies from drinking water, wastewater,<br />

and financial audits; (5) providing finance for financial inadequacies, including debt service<br />

coverage through relief or refinance of the drinking water or wastewater system’s debt; (6)<br />

payment assistance for other financial inadequacies such as excessive maintenance costs,<br />

fines and penalties from past violations, or consultants; (7) extending finance for inadequately<br />

maintained distribution, collection, or treatment works, including service extensions to<br />

unserved or underserved areas and the renovation of treatment works to conserve resources.<br />

There is established in the State Treasury a water management assistance fund as a dedicated<br />

fund administered by the authority. All money in the fund shall be allocated for and dedicated<br />

to providing financial assistance for both capital and non-capital expenses for governmental<br />

agencies that: (1) provide public drinking water or wastewater services to ratepayers in<br />

Kentucky; (2) are considered financially at risk.<br />

Rep. Jim Gooch (R-Providence) delivers remarks on the<br />

House floor on Jan. 12. Gooch sponsored House Bill 758,<br />

which unanimously passed both chambers.<br />

60 www.<strong>KLC</strong>.org


18) SOLID WASTE MANAGEMENT<br />

The fund may receive revenues or proceeds from the sale of bonds or other financial<br />

instruments and receive proceeds from the authority’s revolving fund if available and not<br />

contrary to requirements that govern the management and use of the funds.<br />

Senate Bill 152 – Solid Waste Franchise Notification Exceptions<br />

Senator Stephen West (R–Paris)<br />

Senate Bill 152 amends KRS 109.0417, which governs the process that must be followed by<br />

a city or county government when it takes any action related to solid waste management<br />

that would result in the displacement of a private waste hauler. Senate Bill 152 creates a<br />

new exemption from the notification and hearing process for any situation that involves the<br />

initial issuance of a new franchise following a period where the local government has been<br />

exclusively providing the waste services in the territory.<br />

Sen. Steve West (R-Paris) speaks<br />

on the Senate floor about Senate<br />

Bill 152.<br />

www.<strong>KLC</strong>.org<br />

61


19) TAXATION<br />

House Bill 6 – Motor Vehicle Taxation<br />

Representative Sal Santoro (R–Union)<br />

House Bill 6 amends KRS 132.485 to require the average trade-in value and not the rough<br />

trade-in value or clean trade-in value to be used as the standard value of a motor vehicle to<br />

determine the owner’s property tax liability. The property valuation administrator may adjust<br />

the value of a motor vehicle when the registrant has provided evidence that the standard<br />

value does not reflect the motor vehicle’s condition, options, mileage, or certificate of title<br />

issued. By making this change, a lower value will be used for determining the fair market value<br />

of motor vehicles and result in less tax owed by taxpayers.<br />

Because House Bill 6 contained an emergency clause and became effective on March 10 when<br />

the governor signed it, taxpayers who paid their taxes before the Act’s effective date are<br />

entitled to a tax refund for any amount of overpayment.<br />

House Bill 8 ‒ State Tax Reform Measures<br />

Representative Jason Petrie (R–Elkton)<br />

House Bill 8 addresses various tax policy issues including the state’s individual income tax<br />

and sales tax. The bill reduces reliance on the state income tax and increases reliance on the<br />

state sales tax to fund state programs and services. The legislation proposes to reduce the<br />

individual income tax rate from its current 5% to 0% over several years if the state’s finances<br />

meet certain reduction conditions.<br />

The bill amends KRS 141.020 to reduce the individual income tax rate by half a percentage<br />

point (0.5%) per taxable year for taxable years beginning on or after Jan. 1, 2023, if the<br />

following reduction conditions apply: (1) the balance in the budget reserve trust fund at the<br />

end of a fiscal year is equal to or greater than 10% of receipts deposited into the General Fund<br />

for the fiscal year; and (2) General Fund money at the end of the fiscal year is equal to or<br />

greater than General Fund appropriations for the fiscal year, plus the anticipated amount of a<br />

half a percentage point (0.5%) reduction due to lowering the individual income tax rate.<br />

Beginning no later than Sept. 1, <strong>2022</strong>, the Department of Revenue, with assistance from the<br />

Office of State Budget Director, must review the reduction conditions as they apply to for FYs<br />

2021 and <strong>2022</strong> and determine if they meet the reduction conditions for each fiscal year. If met,<br />

the individual income tax rate will lower by half a percentage point (0.5%) on or after Jan. 1,<br />

2023. Otherwise, the rate will remain unchanged.<br />

Future tax rate reductions will occur for taxable years beginning on Jan. 1 following each fiscal<br />

year in which General Fund receipts exceed the reduction conditions. However, no additional<br />

income tax rate reductions may occur without action by the General Assembly.<br />

62 www.<strong>KLC</strong>.org


19) TAXATION<br />

Expansion of Services Subject to Sales Tax<br />

House Bill 8 amends KRS 139.200 to expand the tax base by including additional services<br />

subject to sales tax as follows:<br />

(1) Photography and photo finishing services; (2) advertising and graphic design services;<br />

(3) marketing services; (4) telemarketing services; (5) public opinion and research polling<br />

services; (6) lobbying services; (7) executive employee recruitment services; (8) website<br />

design and development services; (9) website hosting services; (10) facsimile transmission<br />

services; (11) private mailroom services; (12) bodyguard services; (13) residential and<br />

nonresidential security system monitoring services; (14) private investigation services; (15)<br />

process server services; (16) repossession of tangible personal property services; (17) personal<br />

background check services; (18) parking services, including valet services and the use of<br />

parking lots and parking structures; (19) road and travel services provided by automobile<br />

clubs; (20) condominium time-share exchange services; (21) rental of space for meetings,<br />

conventions, short-term business uses, entertainment events, weddings, banquets, parties,<br />

and other short-term social events; (22) social event planning and coordination services; (23)<br />

leisure, recreational, and athletic instructional services; (24) recreational camp tuition and<br />

fees; (25) personal fitness training services; (26) massage services, except when medically<br />

necessary; (27) cosmetic surgery services; (28) body modification services, including<br />

tattooing, piercing, and any other modifications that are not necessary for medical or dental<br />

health; (29) testing services, except testing for medical, educational, or veterinary reasons;<br />

(30) interior decorating and design services; (31) household moving services; (32) specialized<br />

design services, including the design of clothing, costumes, fashion, furs, jewelry, shoes,<br />

textiles, and lighting; (33) lapidary services, including cutting, polishing, and engraving<br />

precious stones; (34) labor and services to repair or maintain commercial refrigeration<br />

equipment and systems when no tangible personal property is sold in the transaction,<br />

including service calls and trip charges; (35) labor to repair or alter apparel, footwear,<br />

watches, or jewelry when no tangible personal property is sold; (36) prewritten computer<br />

software access services.<br />

House Bill also amends KRS 139.470 to provide a threshold for applying the sales tax to the<br />

newly subjected services. For persons selling services before Jan. 1, 2023, gross receipts<br />

derived from the sale of those services remain exempt if the gross receipts collected totaled<br />

less than $6,000 during calendar year <strong>2022</strong>. When gross receipts from the services exceed<br />

$6,000 in a calendar year, all gross receipts over $6,000 are taxable in that calendar year<br />

while all gross receipts are subject to the tax in subsequent years.<br />

Additionally, the bill amends KRS 139.470 to limit the current sales tax exemption on<br />

sewer, water, and fuel services to a resident for use in his or her place of legal domicile. The<br />

legislation amends KRS 139.482 to eliminate the sales tax exclusion on charges for admission<br />

to historical sites.<br />

www.<strong>KLC</strong>.org<br />

63


19) TAXATION<br />

State and Local Transient Room Taxes<br />

House Bill 8 amends KRS 91A.390, 91A.392, 91A.394, 91A.400, 153.440,153.450,<br />

and 142.400 effective Jan. 1, 2023, to clarify statutory language for the state and<br />

local transient room tax to extend the scope of taxes to online travel companies such<br />

as Priceline.com and Airbnb by including “any person that facilitates the rental of the<br />

accommodations by brokering, coordinating, or in any other way arranging for the rental of<br />

the accommodations.” A new section of KRS Chapter 91A is additionally created to define<br />

“rent” as the total amount charged for the rental of an accommodation and any charges for<br />

any services necessary to facilitate the rental of accommodations, whether the amount is<br />

charged by the provider of the accommodations or by a person facilitating the rental of the<br />

accommodations by brokering, coordinating, or in any way arranging for the rental of the<br />

accommodations.<br />

The measure specifically includes cabins, campsites, or other accommodations charged<br />

by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle<br />

parks, or any other place in which accommodations are regularly furnished to transients for<br />

consideration.<br />

(From L to R) House Appropriations and Revenue Committee Chair Jason<br />

Petrie (R-Elkton) and Rep. Ken Fleming (R-Louisville) present House Bill 8, a<br />

tax reform bill, in committee. Photo courtesy LRC Public Information.<br />

64 www.<strong>KLC</strong>.org


19) TAXATION<br />

Excise Tax on Motor Vehicles for Rent or Sharing<br />

House Bill 8 creates a new section of KRS Chapter 138 effective Jan. 1, 2023, to impose<br />

an excise tax of 6% on gross receipts of motor vehicle rental companies, taxicab service<br />

providers, limousine service providers, transportation network companies such as Uber and<br />

Lyft, and companies providing peer-to-peer car-sharing services for the privilege of providing<br />

a motor vehicle for rent or sharing in Kentucky. The Department of Revenue will administer<br />

and collect the tax.<br />

Electric Vehicles<br />

Effective Jan. 1, 2024, a new section of KRS Chapter 138 imposes an excise tax with an initial<br />

base rate of $0.03 per kilowatt hour on electric vehicle power distributed in the state by an<br />

electric vehicle power dealer for the purpose of charging electric vehicles in the state.<br />

Another new section requires county clerks to collect an electric vehicle ownership fee from<br />

the registrants of electric vehicles, hybrid vehicles, and electric motorcycles at the time of<br />

initial registration and each year upon annual vehicle registration renewal. Effective Jan.<br />

1, 2023, the fees total $120 for electric vehicles and $60 for hybrid vehicles and electric<br />

motorcycles. The General Fund and the Road Fund will each receive half of the electric vehicle<br />

ownership fees.<br />

Prefabricated Homes<br />

House Bill 8 amends KRS 132.200 to exempt all prefabricated homes held for sale in a<br />

manufacturer’s or retailer’s inventory from local real property taxes. “Prefabricated home”<br />

means a manufactured home, mobile home, or modular home. Prefabricated homes held for<br />

sale in a manufacturer’s or retailer’s inventory remain subject to state real property taxation.<br />

Refundable Decontamination Tax Credit<br />

New sections of KRS Chapter 141 and Subchapter 1 of KRS Chapter 224 establish a refundable<br />

decontamination tax credit. For taxable years beginning on or after Jan. 1, <strong>2022</strong>, but before<br />

Jan. 1, 2032, a taxpayer making a qualifying expenditure at a qualifying decontamination<br />

property may claim a refundable credit against the individual and corporate income<br />

taxes and the limited liability entity tax. The credit awarded may equal the amount of<br />

expenditures made by the taxpayer for the decontamination or remediation of the qualifying<br />

decontamination property. However, the total credit awarded per qualifying decontamination<br />

property shall not exceed $30 million.<br />

The amount of reasonably anticipated total qualifying expenditures associated with the<br />

qualifying decontamination property shall equal or exceed $10 million. The amount of<br />

reasonably anticipated capital investment in the qualifying decontamination property must<br />

exceed $30 million. The qualifying decontamination property must be located within one-half<br />

mile of a tax increment financing development area in a census tract that qualifies for the<br />

Kentucky New Markets Development Program tax credit.<br />

www.<strong>KLC</strong>.org<br />

65


19) TAXATION<br />

Historic Tax Credit<br />

House Bill 8 amends KRS 171.397 to increase the maximum owner-occupied residential<br />

property credit from $60,000 to $120,000. It also increases tax credit for residential property<br />

that is not owner-occupied from $400,000 to $10 million.<br />

An emergency is declared. House Bill 8 became law on April 14, <strong>2022</strong>, when delivered to the<br />

secretary of state.<br />

House Bill 607 ‒ Occupational License Fees at Race Track Extensions<br />

Representative Adam Koenig (R–Erlanger)<br />

House Bill 607 creates a new section of KRS Chapters 91 and 92 relating to excise taxes on<br />

wagers to permit occupational license fees levied under KRS 91.200 by the legislative body<br />

of a city of the first class and under KRS 92.281 by the legislative body of a city of the home<br />

rule class to apply to racetrack extensions. A “racetrack extension” means any facility owned,<br />

leased, or purchased by an association licensed by the Kentucky Horse Racing Commission<br />

that meets the definition of “track” under KRS 230.210(24)(c) where pari-mutuel wagering<br />

on historical horse races occurs on terminals approved by the Kentucky Horse Racing<br />

Commission.<br />

Likewise, the bill creates a new section of KRS Chapter 68 to permit occupational license fees<br />

levied under KRS 67.083, 68.180, and 68.197 by the fiscal court of a county, consolidated local<br />

government, or urban county government to apply to racetrack extensions.<br />

KRS 230.210(24)(c) defines “track” as a facility or real property that is: (1) owned, leased, or<br />

purchased by an association within a 60-mile radius of the association’s racetrack but not<br />

contiguous to racetrack premises, upon approval of the racing commission; and (2) not within<br />

a 60-mile radius of another licensed track premise where live racing occurs and not within a<br />

40-mile radius of a simulcast facility unless any affected track or simulcast facility agrees in<br />

writing to permit a noncontiguous facility within the protected geographic area.<br />

The legislation amends KRS 137.190, which currently prohibits a city, county, or other political<br />

subdivision form levying any liens, income, excise, special, or franchise tax on a person or<br />

corporation engaged in the business of conducting a racetrack at which races are conducted<br />

for stakes, purses or prizes, or operating as a receiving track or simulcast facility, or on the<br />

operation or maintenance of any pari-mutuel machine or similar device.<br />

66 www.<strong>KLC</strong>.org


20) TRANSPORTATION<br />

House Bill 241 ‒ Transportation Cabinet Budget Appropriations<br />

Representative Jason Petrie (R–Elkton)<br />

House Bill 241 provides $3 billion in appropriations for financing the operation, maintenance,<br />

support, and functioning of the Transportation Cabinet for the <strong>2022</strong>-2024 fiscal year. The bill<br />

includes:<br />

• $17.4 million to match $69.5 million in federal funds in fiscal year <strong>2022</strong>-2023 for the<br />

Electric Vehicle Charging Program in the Infrastructure Investment and Jobs Act of<br />

2021. The Transportation Cabinet is required to submit an Electric Vehicle Infrastructure<br />

Development Plan to the legislature’s Interim Joint Committee on Transportation on or<br />

before June 30, <strong>2022</strong>;<br />

• $250 million in fiscal year <strong>2022</strong>-2023 from the Infrastructure Investment and Jobs Act<br />

2021 for a potential federal match to fund the Brent Spence Bridge Project, the Mountain<br />

Parkway Widening Project, or the I-69 Ohio River Crossing Project; and<br />

• $150 million in bond debt in fiscal year 2023-2024 previously incurred by the<br />

Transportation Cabinet for the Brent Spence Bridge Project.<br />

Senate Bill 124 ‒ Overweight Trucks<br />

Senator Phillip Wheeler (R–Pikeville)<br />

Senate Bill 124 amends KRS 189.280 to permit cities to, by ordinance, provide maximum limits<br />

with respect to the weight, height, width, and length of motor trucks, semitrailer trucks, and<br />

trailers on city-owned and maintained streets and roads.<br />

Sen. Phillip Wheeler (R-Pikeville) and <strong>KLC</strong> Director of Public Affairs Bryanna L. Carroll testify<br />

before the House Transportation Committee in support of Senate Bill 124 on March 25.<br />

www.<strong>KLC</strong>.org<br />

67


20) TRANSPORTATION<br />

The bill also amends KRS 189.2226 to limit the current ability of trucks hauling building<br />

materials for construction of a home to travel while overweight on a state road without a<br />

permit from the Transportation Cabinet and without being subject to a fine. “Home” is<br />

defined by the statute to mean a site where a single or multi-family housing unit is being<br />

initially constructed. The definition of home is amended by the legislation to require a<br />

building permit for construction of a home to be issued by the authorized local government<br />

in the city or county in which construction will take place before a truck hauling building<br />

materials for construction of a home can travel on a state road with an overweight load.<br />

Senate Bill 174 – Slow Moving Public Safety Vehicles<br />

Senator Jason Howell (R–Murray)<br />

Senate Bill 174 amends KRS 189.940 to permit any slow-moving public safety vehicle or any<br />

vehicle acting as an escort for such a vehicle to travel at speeds that may impede or block<br />

the normal and reasonable flow of traffic if the vehicle is being operated in an official<br />

capacity, it is necessary for the safe operation of the vehicle, and its operation complies<br />

with all other state and local government policies.<br />

68 www.<strong>KLC</strong>.org


21) UNEMPLOYMENT INSURANCE<br />

House Bill 4 ‒ Unemployment Insurance Reform<br />

Representative Russell Webber (R–Shepherdsville)<br />

House Bill 4 amends numerous provisions of KRS Chapter 341 to reform Kentucky’s<br />

unemployment insurance benefit structure, focusing on support for rapid re-employment<br />

and increased workforce participation. Reforms include changes in wage replacement rates,<br />

maximum benefits, duration of benefits, and increased requirements for reporting work search<br />

efforts and provisions for a shared work program.<br />

KRS 341.350 is amended to add an additional component to eligibility for receipt of<br />

unemployment insurance benefits. The unemployed worker must engage in at least five<br />

verifiable work search activities during each week in which he or she claims eligibility. At least<br />

three activities each week must consist of formally applying or interviewing for employment.<br />

“Work search activities” include: (1) formally submitting an employment application, either<br />

in person or online; (2) interviewing for employment virtually, in person, or online; (3)<br />

job shadowing; (4) attending a job fair or networking event hosted by the state, a local<br />

government, or a business organization; (5) participating in a job search skills workshop or<br />

seminar; (6) participating in official Kentucky Career Center or partner programs related to<br />

employment or the employment search. An otherwise eligible worker shall not be denied<br />

benefits for any week the worker is certified as being enrolled and making satisfactory<br />

progress in an approved job training or certification program or if he or she has verified<br />

definite recall-to-work prospects within 16 weeks from the date of filing the claim for benefits.<br />

To enforce the requirement for verifiable work search activities, the Education and Workforce<br />

Development Cabinet must conduct randomized weekly audits of a number determined by<br />

the secretary as sufficient to evaluate compliance with the requirement. The secretary shall<br />

provide standards for submission and any associated documentation to verify a claimant’s<br />

work search activities.<br />

Rep. Russell Webber (R-Shepherdsville) presents<br />

House Bill 4, a bill aimed at changing the length of<br />

unemployment insurance benefits and the job search<br />

requirements for recipients, in the House. Photo<br />

courtesy LRC Public Information.<br />

www.<strong>KLC</strong>.org<br />

69


21) UNEMPLOYMENT INSURANCE<br />

The cabinet must submit an annual report to the governor and the Interim Joint Committee<br />

on Economic Development and Workforce Investment detailing: (1) the number and<br />

percentage of claims audited each week, and the total number and percentage of claims<br />

audited during the reporting period; (2) the percentage of audited claimants that failed to<br />

comply with work search activity requirements; (3) the work search activities most commonly<br />

engaged in by audited claimants; (4) a summary of the methodology used to conduct<br />

randomized auditing; (5) recommendations to make the work search activity requirement<br />

more effective in assisting claimants to find employment.<br />

KRS 341.100 is amended to require the secretary to consider any employment offer to be<br />

suitable work if the work: (1) is offered to a worker who has received at least six weeks<br />

of benefits during his or her present period of unemployment; (2) the worker will be paid<br />

120% of his or her weekly benefit amount; (3) is located within a distance of 30 miles of the<br />

worker’s residence or is work that can be completed remotely permanently; (4) the worker<br />

is able and qualified to perform the work, regardless of whether or not he or she has related<br />

experience or training.<br />

New sections of KRS Chapter 341 are created to limit the maximum amount of benefits<br />

payable to any worker within any benefit year from a maximum of 26 weeks to between 12<br />

and 24 weeks based on economic conditions as reflected in the state average unemployment<br />

rate at the time of the claimant’s application for benefits. For example, if the state average<br />

unemployment rate is less than or equal to 4.5% at the time of the claimant’s application for<br />

benefits, the maximum benefit period is 12 weeks. If the state average unemployment rate is<br />

greater than10 percent, the maximum benefit period is 24 weeks. The number of weeks of<br />

benefits is based on a sliding scale of state average unemployment rates of 4.5% (12 weeks),<br />

5% (13 weeks), 5.5% (14 weeks), 6% (15 weeks), 6.5% (16 weeks), 7% (17 weeks), 7.5% (18<br />

weeks), 8% (19 weeks), 8.5% (20 weeks), 9% (21 weeks), 9.5% (22 weeks), between 9.5% and<br />

10% (23 weeks), and above 10% (24 weeks).<br />

An otherwise eligible individual who is certified as being enrolled and making satisfactory<br />

progress in an approved job training or certification program shall be entitled to receive up to<br />

an additional five weeks of benefits after all regular benefits have been exhausted during the<br />

current benefit year.<br />

An employer may notify the secretary in writing or electronically of any worker who has<br />

declined to accept suitable work when offered or has failed to attend the first interview for<br />

suitable work, whether held in-person, virtually, or by phone. The secretary shall provide an<br />

online portal by which an employer can notify the secretary.<br />

New sections of KRS Chapter 341 are created to set parameters for shared work programs<br />

as an alternative to layoffs by employers experiencing a reduction in available work. Under<br />

the program, employees experiencing a decline in hours can collect a percentage of their<br />

unemployment compensation benefits to replace a portion of their lost wages if they are<br />

otherwise eligible for unemployment compensation. In this way, employers can avoid laying<br />

70 www.<strong>KLC</strong>.org


21) UNEMPLOYMENT INSURANCE<br />

off trained workers who will remain available to resume prior employment levels when<br />

business demand increases.<br />

An employer wishing to participate in a shared work program must submit a written shared<br />

work compensation plan to the secretary for approval. The secretary must approve the plan<br />

if it meets certain criteria, including the following: (1) the plan applies to and identifies the<br />

affected work group; (2) the plan includes an estimate of the number of layoffs that might<br />

occur absent participation in the shared work program; (3) the plan identifies the employees<br />

in the affected work group by name, Social Security number, and any other information<br />

required by the secretary. Additional criteria are enumerated in the legislation.<br />

Employees participating in a shared work program are automatically eligible to receive a<br />

percentage of unemployment compensation benefits while working reduced hours under the<br />

approved plan. The amount of unemployment compensation paid to an employee in a shared<br />

work plan is a pro-rated portion of the unemployment compensation he or she would have<br />

received if laid off. Example: An employee normally works 40 hours at $500 per week. The<br />

employee’s workweek is reduced by eight hours, or 20%. If an employee making $500 per<br />

week is normally eligible for $250 a week in unemployment benefits, the employee would<br />

receive $400 in wages and $50 in work-sharing benefits for the week (20% of the $250<br />

weekly benefit).<br />

The Act takes effect on Jan. 1, 2023.<br />

House Bill 144 ‒ Unemployment Insurance Employer Rates<br />

Representative Russel Webber (R–Shepherdsville)<br />

House Bill 144 amends three statutes relating to unemployment insurance to extend provisions<br />

of House Bill 413 that legislators passed in 2021 to calendar year <strong>2022</strong>. The bill amends KRS<br />

341.030 to suspend any increase in the taxable wage base for calendar year <strong>2022</strong> and instead<br />

authorizes the use of the taxable wage base in effect for the 2020 calendar year.<br />

The bill also amends KRS 341.270 to provide employer contribution rates for the<br />

unemployment insurance fund reserve account in <strong>2022</strong> shall be determined according to<br />

2021 contribution rates listed in KRS 341.270, being the lowest rates of Schedule A, Table A.<br />

Additionally, the measure amends KRS 341.614 to eliminate the unemployment administrative<br />

account surcharge assessment against a contributing employer for calendar year <strong>2022</strong>. All<br />

amendments are retroactive to Jan. 1, <strong>2022</strong>.<br />

The bill appropriates $242,628,900 from the State Fiscal Recovery Fund of the American<br />

Rescue Plan Act in Fiscal Year 2021-<strong>2022</strong> to the unemployment trust fund to restore the fund<br />

balance to pre-pandemic levels.<br />

An emergency is declared. House Bill 144 became law when the governor signed it on March<br />

24, <strong>2022</strong>.<br />

www.<strong>KLC</strong>.org<br />

71


Bill Title & Page No.<br />

House Bills<br />

HB 1 Executive Branch Biennial Budget — Pg. 29<br />

HB 4 Unemployment Insurance Reform — Pg. 69<br />

HB 5 State Aid for Damaged Communities — Pg. 18<br />

HB 6 Valuation of Motor Vehicles for Property Tax — Pg. 62<br />

HB 8 State Tax Reform Measures — Pg. 62<br />

HB 33 Local Plan Review for School Construction — Pg. 9<br />

HB 43 Religious Org’s & Declared Emergencies — Pg. 16<br />

HB 45 Advanced Recycling — Pg. 59<br />

HB 48 False Reporting of Incident — Pg. 14<br />

HB 49 Anti-Spiking Limitations — Pg. 55<br />

HB 63 School Resource Officers — Pg. 58<br />

HB 76 Actuarial Analysis — Pg. 55<br />

HB 79 Mental Health Training for Telecom — Pg. 50<br />

HB 92 Opioid Abatement Trust Fund — Pg. 10<br />

HB 144 Unemployment Insurance Employer Rates — Pg. 71<br />

HB 154 Driving Under the Influence — Pg. 14<br />

HB 192 Electrical Inspectors on State HWY Projects — Pg. 9<br />

HB 195 Natural Gas Pipeline Location Notification — Pg. 49<br />

HB 206 Peace Officer Certification — Pg. 31<br />

HB 215 Importing or Trafficking in Fentanyl — Pg. 15<br />

HB 239 Constable Peace Officer Powers — Pg. 31<br />

HB 241 Transportation Cabinet Budget Approps — Pg. 67<br />

HB 252 Min Age Serving Alcoholic Beverages — Pg. 6<br />

HB 274 Transportation Improvement Districts — Pg. 20<br />

HB 297 KY Public Pension Authority Reforms — Pg. 56<br />

HB 307 Liability & Group Investments — Pg. 37<br />

HB 314 Operation of Consolidated Local Gov — Pg. 37<br />

HB 315 Broadband Deployment — Pg. 22<br />

HB 335 City Representation on Council — Pg. 39<br />

HB 345 Military Leave — Pg. 40<br />

HB 351 Local Records Affidavits — Pg. 40<br />

HB 363 CMRS Fund — Pg. 24<br />

HB 372 Fire Districts and Departments — Pg. 28<br />

HB 399 Municipal Audit Procedures — Pg. 41<br />

HB 399 Requirement for Road Aid & LGEA Funds — Pg. 47<br />

HB 414 Police Officer and Firefighter Policies — Pg. 50<br />

HB 453 Meeting Exceptions & Teleconferencing — Pg. 47<br />

HB 482 Area Development District Funds — Pg. 30<br />

HB 500 Sale of Distilled Spirits — Pg. 6<br />

HB 512 Heart Attack Response & Treatment — Pg. 26<br />

HB 536 Limited-Sale Precincts & Licensure — Pg. 8<br />

172<br />

www.<strong>KLC</strong>.org


Bill Title & Page No.<br />

Senate Bills<br />

SB 5 State Aid for Damaged Communities — Pg. 18<br />

SB 42 Local Government Procurement — Pg. 44<br />

SB 56 Opioid Antagonists — Pg. 12<br />

SB 64 Counseling for Public Employees — Pg. 53<br />

SB 90 Program for Behavioral Offenders — Pg. 12<br />

SB 96 Council Seat for Bowling Green — Pg. 34<br />

SB 106 Admin Dissolution of Inactive Cities — Pg. 44<br />

SB 111 Local Dev Area for Tax Financing — Pg. 23<br />

SB 112 Interlocal Agreement Amendments — Pg. 46<br />

SB 124 Overweight Trucks — Pg. 67<br />

SB 150 Disaster Recovery Funds — Pg. 19<br />

SB 152 Waste Mgmnt Franchise Exceptions — Pg. 61<br />

SB 174 Slow Moving Public Safety Vehicles — Pg. 68<br />

SB 176 Facial Recognition Technology — Pg. 34<br />

SB 179 Committed in Emergency — Pg. 15<br />

SB 189 Volunteer Fire Department Aid — Pg. 28<br />

SB 209 CERS Health Insurance Benefits — Pg. 57<br />

SB 241 Hunter Education Exemption — Pg. 36<br />

SJR 150 Terminate Covid-19 Emergency Declaration — Pg. 16<br />

HB 562 Officer or Firefighter Incident — Pg. 52<br />

HB 565 Police Officer Virtual Training — Pg. 32<br />

HB 594 Cost Analysis of State Regulations — Pg. 43<br />

HB 604 KY Center for Cannabis Research — Pg. 11<br />

HB 607 License Fees at Race Track Extensions — Pg. 66<br />

HB 758 Water & Waste Systems — Pg. 60<br />

HB 777 Ground Ambulance Services — Pg. 26<br />

www.<strong>KLC</strong>.org<br />

173


CONTACT US<br />

(800)-876-4552<br />

100 E Vine St #800,<br />

Lexington, KY 40507<br />

@KyLeagueCities<br />

Kentucky League of Cities<br />

74 www.<strong>KLC</strong>.org

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