A Kentucky Legislative Session Update

A Kentucky Legislative Session Update

By: Brandon McReynolds, Ph.D, Friends of Limestone Founder

Hey Friends!

We are now a little over halfway through the 2018 Kentucky Regular Legislative Session (the legislature only has 59 legislative days this year), which provides an opportunity to check-in on the bills connected to Friends of Limestone’s mission.

Over the past week, our team reviewed all the proposed legislation from this session. As of publication, over 150 bills have been filed in the Senate and close to 400 in the House. These bills cover a variety of policy areas connected to limestone and the industries that exist in Kentucky because of limestone. Below we listed several of the bills that stand out to us.

We have provided a brief description of each piece of legislation along with why the legislation is of importance to Friends of Limestone. We also recommend checking out the Legislative Research Commission’s website where you can see the bills and resolutions your representatives have sponsored! Also, be on the lookout for a separate blog post about Kentucky’s pension problem, and how it affects us all as Friends of Limestone.

House Bills:

HB 26- Natural resource severance and processing tax

Currently: in House to Appropriations and Revenue

  • Amends state law to define the “processing” of limestone to include the act of loading and unloading
  • Amends state law to allow for a tax credit for identical severance or processing tax paid in another state or political subdivision.

FOL Perspective: the mining and processing of limestone as a natural resource is one use of Kentucky’s large limestone deposit. Legislation focused on the continued mining of limestone needs to consider the environmental, social, and economic impacts of mining each time legislation such as this is proposed.

HB 159- Increase sales tax on alcohol

Currently: in House to Licensing, Occupations, and Admin Regs

  • Amends state law to increase the whole sales tax rate for beer, wine, and distilled spirits to 14 percent
  • Forbids local governments from imposing a regulatory fee on the sale of alcoholic beverages
  • Amends state law to establish a $100 annual transporters license fee
  • Amends state law to require that every distiller, rectifier, winery, and nonresident wholesaler make its brands available to any wholesaler and not grant the distributing rights of any particular brand to only one wholesaler exclusively
  • Amends state law to require that alcohol wholesalers make deliveries to retailers on a timely basis and no later than one week after the order date
  • Amends state law to require that alcohol distributors make deliveries to retailers on a timely basis and no later than one week after the order date
  • Amends state law to permit a quota retail package licensee or a nonquota malt beverage package licensee to transport alcoholic beverages between stores of common ownership if the licensee derives not less than 90 percent of his or her cash receipts from the sale of alcohol and pays the annual license fee

FOL Perspective: The sell of alcohol is highly regulated and taxed in Kentucky. As Kaitlyn pointed out in her recent blog, taxes incurred throughout the process make up a substantial cost that is passed onto consumers. This law adds further taxes and regulation.

HB 267- All wet counties through a local option election to approve license fee

Currently: in House to Licensing, Occupations, and Admin Regs

  • Amends state law to allow all wet cities and counties containing wet cities through a local option election to impose a regulatory license fee on the sale of alcoholic beverages

HB 41, 42, and 229– All deal with gambling

FOL’s mission does not directly connect to the issue of legalized casino gambling. However, due to the on-going discussion around casino gambling and Kentucky’s horse industry we wanted to make people aware of these pieces of legislation.

 

Senate Bills

SB 22- Sports wagering

Currently: In Senate to Appropriations and Revenue

  • Requires Kentucky Horseracing Commission to institute a sports wagering system
  • Vest control of sports wagering with the commission
  • Establishes a 20% tax on the total amount wagered at sports wagering facilities

FOL Perspective: The equine industry plays a substantial role in the Kentucky economy.  Legislators and voters need to understand the economic and social impacts of expanded sports gambling along with how legislation such as this will support the long-term growth of Kentuck’s equine industry.

SB 56- Kentucky Horse Racing Commission

Currently: Has passed in the Senate, and is in the House to Licensing, Occupations, and Admin Regs

  • Amends state law to make ex officio members of the Kentucky Horse Racing Commission nonvoting members.

SB 110- Alcohol license quotas

Currently: In Senate, passed out of committee, seven-floor amendments were added, waiting for second reading

  • Codify the quota system for alcoholic beverages for wet counties and cities
  • Creates new process for verifying quota numbers
  • Create a process to allow for a city or county to petition for a quota increase

Various amendments have been added and range from eliminating the quota system to shifting how the system is managed.

FOL Perspective: As legislators debate the pros and cons of Kentucky’s quota system, FOL believes that they should work to give agency and power to counties and cities across the state.

SB 129- Reorganize energy and environmental cabinet

Currently: In Senate to Natural Resources & Energy

  • Amends over 25 state statutes regarding the Energy and Environmental Cabinet
  • Changes names of various portions of the Energy and Environmental Cabinet
  • Amends state law regarding responsibility for who can take legal action regarding various programs

FOL Perspective: Every issue before the legislature is an environmental issue, a reorganization of  Energy and Environmental Cabinet needs to ensure the environmental justice is a part of the policy process both inside and outside of the cabinet.

SB111- Breeder’s Cup exemption

Currently: In Senate to Appropriations and Revenue

  • Amends state law to make permanent the Breeder’s Cup exemption relating to wagering
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