#KYGA23 Week Seven: Bills dealing with paycheck protection, teachers’ liability insurance, ed commissioner’s confirmation, pension reform and reformulated gasoline on their way to the governor

The 2023 Kentucky legislative session is entering a veto period before the House and Senate return on March 29 and 30 to override vetoes and take care of any last minute business. The Kentucky Constitution requires the legislature to complete its business no later than March 30 during nonbudget, odd-year sessions.

Of the bills and resolutions we’ve been tracking, two have been signed by the governor: House Bill 1 and House Joint Resolution 39.

HB 1 lowers the personal income tax rate from 4.5% to 4% beginning Jan. 1, 2024. Last year, legislators passed a law with an automatic income tax rate reduction from 5% to 4.5% that went into effect Jan. 1, 2023. This law also contains triggers based on revenue and the Budget Reserve Trust Fund, which could lead to a yearly reduction of the state's individual income tax rate by 0.5% upon meeting the requirements and a subsequent vote by the General Assembly, ultimately leading to the elimination of the tax.

HJR 39 directs the executive branch to address Kentucky’s benefits cliff - where individuals and families receiving public assistance benefits can lose some or all benefits as the result of a marginal increase in income. The resolution acknowledges that the benefits cliff can reduce an individual's or a family's overall access to financial resources, which can be a significant barrier to continued participation in the workforce, limiting upward economic mobility and self-sufficiency.

Several other bills in the areas of education, pension reform, transparency and government overreach have been passed through both chambers but are still awaiting a signature from the governor:

Education

As part of addressing Kentucky’s teacher shortage, SB 3 would establish the Educators Employment Liability Insurance Program to provide liability insurance to all certified employees of Kentucky public schools. The program would provide coverage in excess of $1 million per occurrence and $3 million aggregate for each certified employee.

Legislation has passed the General Assembly that would require the Kentucky Board of Education’s commissioner to be confirmed by the Senate for every four-year term. Following a law passed in 2020 that requires appointments to a board to include equal representation of sexes, proportional representation of political parties, and representation of minority populations, SB 107 is another step towards depoliticizing Kentucky’s public education system.

SB 150 outlines parental rights regarding their child's access to health and mental health services related to sexuality, contraception, or family planning at school. It prohibits the state from requiring student information to be kept confidential from parents, and from requiring the use of pronouns that do not conform to a student's biological sex. The policy aims to respect parental rights by not providing instruction on human sexuality or gender identity for children in grade five or below, and requiring written consent from parents of children in grade six or above before they receive any such instruction. It also prohibits health care providers from performing certain procedures or administering certain drugs to minors for the purpose of altering their appearance or perception of their sex.

Pension Reform

Legislation has been sent to the governor to safeguard Kentucky's public pension systems from the influence of environmental, social, and governance (ESG) ideologies of liberal activists in investment decisions. The bill  mandates that only investments that generate the highest returns be considered by the funds' investors, rather than investments that are driven by social or political factors.

Privacy and transparency

Important legislation to stop the direct transfer of taxpayer funds from government payrolls to public-sector union accounts is on Gov. Beshear’s desk. Unions will be required to collect dues and political contributions directly from employees, and will be required to provide members with an annual report on their spending.

HB 144 sets guidelines for police officers when entering private open land for surveillance purposes. Officers must have a search warrant or permission from the property owner, or be responding to an emergency situation. If equipped with a recording device, it must be activated and recording. Officers must notify the landowner immediately upon entering unless they have a search warrant.

And, SB 62 aims to prevent public agencies from forcing individuals or non-profit organizations to reveal personal information - including the names of donors.

Government overreach

The General Assembly has passed legislation to protect citizens from the infringement of their 2nd Amendment rights by the federal government. HB 153 prohibits local and state law enforcement agencies from imposing or cooperating with federal bans on firearms, ammunition, or firearm accessories. It also prohibits local governments, public officials, and public agencies from expending public funds or allocating resources for the enforcement of such bans.

HJR 37 seeks to remove reformulated gasoline from Jefferson, Oldham and Bullitt Counties. The resolution calls on the EPA to review and grant approval for the redesignation of those counties within the state currently classified as being in violation of national air quality standards. Following this redesignation, Kentucky’s Energy and Environment Cabinet is required to suggest modifications to the state implementation plan, including the elimination of the reformulated gas requirement.

Lastly, SB 65 nullifies administrative regulations found deficient during the 2022 legislative interim session.

There are some policies that could still be passed by the legislature on March 29 or 30 because they are not expected to be vetoed.

For example, HB 353 works to reduce Kentucky's high overdose rate by removing fentanyl testing strips and other drug testing equipment from being classified as paraphernalia. Decriminalizing fentanyl testing strips will allow individuals to save their own lives by having the ability to determine if drugs they are about to take are laced with deadly fentanyl which is involved in nearly three-fourths of all drug overdoses in Kentucky. The bill also requires the Cabinet for Health and Family Services to coordinate an education and awareness campaign.

For a full list of updates please see our bill tracker below.