♪ ♪ ♪ ♪ ♪ ♪ ♪ THE PROCESS FOR FILLING A I HAVE KAYED U.S. SENATE SEAT IN KENTUCKY COULD SEE SIGNIFICANT CHANGES.

HIGH SCHOOL SENIORS MAY GET THE OPTION FOR ONE MORE YEAR OF HIGH SCHOOL.

AND KENTUCKY COULD BE MANDATED TO OPEN REGIONAL EMPLOYMENT OFFICES IN HARD TIMES ON DAY 21 OF THE 20/21 KENTUCKY GENERAL ASSEMBLY IN REGULAR SESSION.

GOOD EVENING AND THANK YOU FOR JOINING US FOR LEGISLATIVE UPDATE.

I AM CASEY PARKER-BELL.

UNDER CURRENT RULES, KENTUCKY GOVERNORS CAN SELECT ANY QUALIFIED PERSON TO FILL A VACANCY IN IN A U.S. SENATE SEAT BUT A MEASURE APPROVED TODAY BY THE STATE SENATE WOULD CHANGE THAT PROCESS AND REQUIRE A GOVERNOR TO PICK SOMEONE OF THE SAME PARTY AS THE FORMER OFFICEHOLDER.

UNDER SENATE BILL 228, THE STATE EXECUTIVE COMMITTEE OF THAT POLITICAL PARTY WOULD PROVIDE A LIST OF THREE NAMES FROM WHICH THE GOVERNOR WOULD CHOOSE.

SENATE PRESIDENT ROBERT STIVERS EXPLAINED HIS PLAN, SAYING ABOUT A DOZEN OTHER STATES FILL U.S. SENATE VACANCIES THE SAME WAY.

>> SO IN THIS INSTANCE, IT WOULD BE ONE OF THREE PEOPLE FROM THE REPUBLICAN PARTY.

IF IT HAPPENED WHEN FORD WAS THE UNITED STATES SENATOR IT WOULD HAVE COME FROM THE DEMOCRATIC PARTY.

THE NEXT COMPONENT OF THAT AND THE REASON THE RATIONALE IS THAT IN THE MOST RECENT ELECTION FOR THAT POSITION, THE STATE CHOSE TO PICK THE INDIVIDUAL FROM THAT PARTY AND IT SHOULD BE REPLACED BY SOMEBODY FROM THAT PARTY.

IF IT IS AN INDEPENDENT, THEN IT SHALL COME TO BE AN INDEPENDENT OR A LIBERTY TAISH 0, LIBERTARIAN OR A PERSON NOT OF A PARTY AFFILIATION BECAUSE THERE ARE MULTIPLE DESIGNATIONS THROUGHOUT YOU CAN RECEIVE.

SO THAT IS WHERE IT SHOULD COME FROM.

>> THAT PERSON WOULD FILL THE VACANCY UNTIL VOTERS CAN ELECT A NEW SENATOR.

STIVERS PROPOSES A SPECIAL ELECTION AMONG CANDIDATES WHO GET AT LEAST 1,000 SIGNATURES ON A PETITION.

>> IT WOULD BE AN OPEN PRIMARY AND THE OPEN PRIMARY, IF NO ONE GETS A CLEAR MAJORITY OF THE VOTES THEN THE TOP TWO WOULD GO TO A RUNOFF ELECTION.

NOW, THIS IS WHERE ONE OF THE DIFFERENCES WAS, BECAUSE IT DID NOT REQUIRE YOU TO GET A 50 PERCENT MAJORITY BEFORE THERE WAS NO RUNOFF ELECTION, IF ONE PERSON IS STRONG ENOUGH TO GET OVER 50 PERCENT IT WOULD NOT BE A RUNOFF, BUT THIS IS, THIS GIVES BOTH PARTIES AMPLE OPPORTUNITIES, INDIVIDUALS WHO WERE NOT CHOSEN, INDEPENDENTS, LIBERTARIAN, WHATEVER OTHER PARTY THEY MAY HAVE TO GET THE REQUISITE SIGNATURES AND BE INVOLVED IN THAT OPEN PRIMARY, AND THEN RUN FOR THE BALANCE OF THE TERM, GIVING AS MUCH LIMITS TO THE INDIVIDUAL BEING PLACED THERE SO THEY WOULDN'T HAVE A YEAR OF INCUMBENCY.

>> THE SENATE PRESIDENT SAYS THIS TWO STEP PROCESS ALLOWS AN OPEN SEAT TO BE FILLED QUICKLY, FAIRLY AND WITH LIMITED COSTS.

HE SAYS THIS METHYLS PREVENTS THE TEMPORARY OFFICEHOLDER FROM ACCRUING ANY BENEFITS OF INCUMBENCY OVER THE CANDIDATES THAT MIGHT RUN TO FILL THE SEAT.

SEVERAL SENATE DEMOCRATS OPPOSED THE LEGISLATION, SAYING THE PROPOSAL HAS A PARTISAN BIAS.

REPUBLICANS CURRENTLY HOLD BOTH U.S. SENATE SEATS WHILE KENTUCKY'S SITTING GOVERNOR IS A DEMOCRAT.

IT SEEMS TO ME THAT GOVERNOR WHO IS ELECTED BY THE STATE ACTUALLY REPRESENTS MORE OF THE PEOPLE OF THE STATE THAN THE EXECUTIVE COMMITTEE OF THE PARTY OF THE SENATOR WHO IS, WHOSE RESIGNING DOES SO IF WE HAVE A REPRESENTATIVE WHO IS ALREADY ELECTED THAT REPRESENTS MORE PEOPLE IN THE STATE, WHY WOULD WE REPLACE THAT?

I DO NOT UNDERSTAND IT, IT SOUNDS PARTISAN AND, YOU KNOW, GOES BACK IF IT AIN'T BROKE DON'T FIX IT.

>> I AM NOT POSITIONED TO THE CONCEPT OF WHAT WE ARE TALKING ABOUT HERE BUT I REALLY AM OPPOSED TO THE POLICY OF HOW IT IS CARRIED OUT.

I WILL ALSO SAY WITH THE VOTE EXPLANATIONLY KEEP IT BRIEF AND OPEN TO THE CONCEPT THAT THERE ARE TWO DEMOCRATIC SENATORS AND A REPUBLICAN GOVERNOR, BUT I DON'T THINK WE WOULD DOVER THAT BILL IF THAT WERE THE CASE AND I THINK THE REASON WE ARE DOING THIS BILL IS BECAUSE THERE ARE TWO REPUBLICAN SENATORS AND A DEMOCRATIC GOVERNOR, I AM OPPOSED TO THE TIMING OF IT AS WELL.

>> WHAT THIS BILL DOES, MR. PRESIDENT, IS THAT IT CREATES A RUNOFF ELECTION WHICH IS GOING GOING TO ADD MORE EXPED MORE TIME AND MORE COSTS TO THE ELECTION PROCESS AND THAT'S THE WAY THIS BILL IS DESIGNED.

I AM CERTAINLY HIGHLY OPPOSED TO THAT AND MR. PRESIDENT, THE OTHER POINT IS, THIS BILL IS COMING AT A TIME WHERE THE BALANCE OF THE U.S. UNITED STATES SENATE IS VERY DELICATE, WE ALL UNDERSTAND THAT AND THIS BILL IS DESIGNED TO KEEP THAT DELICATE BALANCE IN PLACE IN FAVOR OF THE PARTY, THE MAJORITY OF THIS SENATE, AND WE HAVE GOT TO ACKNOWLEDGE THAT AND I THINK, YOU KNOW, THAT IS FLAWED IN BRINGING THIS BILL, AT THIS PARTICULAR TIME.

>> LAWRENCE HE BURGH REPUBLICAN ADRIENNE SOUTHWORTH PROPOSED THREE AMENDMENTS TO THE BILL THAT FAILED.

SHE VOTED AGAINST THE MEASURE SAYING IT RAISES BIGGER CONCERNS ABOUT ELECTORAL PROCESSES.

>> THERE HAVE BEEN A LOT OF QUESTION MARKS ABOUT ELECTIONS, WHAT WE SHOULD DO AND WHAT WE SHOULD NOT BE DOING, WHY WE DO IT THIS WAY AND OTHER STATES DON'T, AND THIS IS NOT NECESSARILY SAY THE KENTUCKY DOES IT THE BEST WAY AS IS AND I DO LIKE CHANGE BUT I THINK WE NEED KEEP IT BALANCED AND OTHER STATES, THEY HAVE PARTISAN VOTES, WE HAVE LEGISLATION THIS YEAR TO MAKE THAT SWITCH, I TALKED ABOUT THIS TO SOME DEGREE.

I DON'T KNOW IF THAT IS ANSWER BUT IF IT HELPS OUR VOTERS SO BE IT.

WE ALSO HAVE NEVADA WHO HAS A NONPARTISAN LEGISLATURE, BOY I WOULD LOVE THAT.

I THINK IT WOULD BE GREAT IF WE DIDN'T HAVE ANY PARTISANS ON ANYTHING BUT BECAUSE WE DO, MR. PRESIDENT, AND BECAUSE THIS BILL LEAVES ONE PARTICULAR ELECTION OUT, SEPARATELY FROM ALL OTHERS IN A TOTALLY DIFFERENT WAY, EVEN THE OFFICE ON A NORMAL YEAR WOULD NOT BE ELECTED THE SAME WAY AS IT WOULD BE UNDER THIS SPECIAL METHOD AND I UNDERSTAND ALL OF THE COMPLICATIONS WITH COSTS AND SO FORTH, AND IN ORDER TO BE INSTITUTIONALLY BALANCED IT WILL ALWAYS COST US MORE TO HAVE A REPRESENTATIVE REPUBLIC THAN IT WILL TO HAVE SINGLE PERSON MAYBE AGO DECISION.

SO WE NEED TO TAKE THAT INTO CONSIDERATION, BE BALANCED AND CONSIDER WE DON'T WANT A STRAIGHT PARTY TICKET SO THAT PEOPLE CAN VOTE NONPARTISAN RACES EASIER AND SO IT IS EQUALLY ACCESSIBLE TO ALL.

>> SENATE BILL 228 CLEARED THE SENATE ON A VOTE OF 28 TO EIGHT AND NOW HEADS TO THE HOUSE.

THE SENATE ACTED TODAY TO HELP KENTUCKY YOUTH WHO HAVE STRUGGLED WITH DISRUPTIONS TO THEIR SCHOOL STUDIES AND ATHLETIC ACTIVITIES BECAUSE OF THE COVID-19 PANDEMIC.

SENATE BILL 128 WOULD GIVE STUDENTS THE OPTION TO REPEAT A YEAR OF SCHOOL IF THEIR SCHOOL DISTRICTS APPROVE SUCH SUPPLEMENTAL STUDIES.

SENATE EDUCATION COMMITTEE CHAIR MAX WISE SAYS LAWMAKERS HAVE WORKED TO ADDRESS THE PANDEMIC'S IMPACT ON BUSINESSES AND SERVICES IN THE STATE.

NOW HE SAYS IT'S TIME TO HELP YOUNG PEOPLE WHOSE ACADEMIC, ATHLETIC AND SOCIAL LIVES HAVE BEEN UPENDED BY COVID RELATED CLOSURES AND CANCELLATIONS.

HE SAYS SENATE BILL 128 WOULD GIVE STUDENTS THE OPTION OF A ONE-YEAR DO-OVER.

>> THAT IS FOR EVERY K-12 STUDENT THE ABILITY TO HAVE A SUPPLEMENTAL YEAR, THE ABILITY FOR LOCAL CONTROL DECISION MAKING, THE ABILITY FOR STUDENTS WHO NEED AN EXTRA SUPPLEMENTAL YEAR FOR ACADEMIC PREP, SOME 0 STUDENTS DID NOT GET A CHANCE TO TAKE THE ACT THIS YEAR, THEY WEREN'T ABLE TO HAVE ANY PREP COURSES FOR THE ACT TEST.

MANY OF OUR ATCS WERE NOT ABLE TO OFFER IN -- PERSON WELDING CLASSES, IN PERSON TECHNOLOGY CAREER PATHWAY CLASSES.

IT WAS DONE VIRTUALLY.

AND FOR ANY STUDENT THAT IS HANDS ON, MR. PRESIDENT, YOU KNOW THIS TOO WELL, THAT YOU NEED TO HAVE HANDS ON LEARNING IN SO MANY ASPECTS.

AND THEN ALSO FOR THOSE STUDENTS THAT JUST LOST OUT ON SO MANY THINGS THAT MANY OF US PROBABLY TOOK FOR GRANTED AND LOOK BACK ON, NOW, DOES THIS BILL, DOES THIS BILL HELP AND DOES THIS BILL SOLVE ALL OF THE PROBLEMS?

NO.

BUT IT GIVES AN OPTION AND IT GIVES A CHOICE IT IS NOT A MANDATE BUT GIVES THE OPTION FOR THOSE THAT FEEL LIKE THEY COULD BENEFIT FROM COMING BACK.

>> ANOTHER PROVISION OF THE BILL GIVES HIGH SCHOOL ATHLETES AN ADDITIONAL YEAR OF ELIGIBILITY TO PARTICIPATE IN THEIR SPORT SO LONG AS THEY DO NOT TURN 19 YEARS OLD BY AUGUST 4TH.

SENATOR DANNY CARROLL OF BENTON SAYS THE EXTRA YEAR OF SPORTS ELIGIBILITY COULD BENEFIT THOSE STUDENTS WHO HOPE TO EARN ATHLETIC SCHOLARSHIPS TO COLLEGE.

>> BECAUSE OF THE RULES IN COLLEGE WHERE MANY OF THEM ARE GETTING AN EXTRA YEAR, THERE WILL NOT BE ROOM FOR SOME OF THESE SENIORS COMING OUT OF HIGH SCHOOL ON BASKETBALL TEAMS, SO THIS, SHOULD THIS PASS, IT COULD VERY WELL SAVE THE STUDENT'S COLLEGE CAREER, THE SCHOLARSHIP HE HOPES TO GET IN PERHAPS A DIVISION 2 SCHOOL, HE WILL HAVE A MUCH BETTER CHANCE OF GETTING THAT BEING ABLE TO GO THIS EXTRA YEAR.

>> FINALLY THE LEGISLATION GIVES LOCAL SCHOOL BOARDS THE OPTION TO CHOOSE WHETHER TO OFFER A SUPPLEMENTAL YEAR TO THEIR STUDENTS.

WISE SAYS THAT DISTRICTS THAT APPROVE THE DO-OVER OPTION MUST PROVIDE IT TO EVERY STUDENT WHO REQUESTS IT.

WE ARE NOT GOING TO PICK AND CHOOSE WHICH STUDENTS CAN BENEFIT OFF OF THIS AND WHICH CANNOT, SO MAY 1ST IS THE DEADLINE STUDENTS CAN REQUEST TO THE SCHOOL DISTRICT IF THEY WISH TO DO A SUPPLEMENTAL YEAR.

MAY 1ST OF 2021, THE SCHOOL BOARD THEN HAS ONE MONTH TO THAT DATE OF JUNE 1ST AS A DEADLINE FOR LOCAL SCHOOLS TO ACCEPT EITHER ALL OR NONE OF THE REQUESTS THAT ARE BEING PRESENTED.

AND THEN THE LAST THING AS A SAFEGUARD IN THIS, BY JUNE 16TH IS THE DEADLINE FOR LOCAL BOARDS TO SUBMIT THEIR MANIES AND REQUESTS FOR WAIVERS TO THE KENTUCKY DEPARTMENT OF EDUCATION OF WHATEVER ACADEMIC PLAN THEY WISH TO COME UP WITH TO HELP KNEES STUDENTS IF THEY SO CHOOSE TO DO SO.

>> LOUISVILLE DEMOCRAT DAVID YATES SAYS THAT THAT LOCAL CONTS A CRITICAL COMPONENT OF THE PROPOSAL.

>> I LOOK AT THIS THAT ALLOWS THE LOCAL SCHOOL BOARD, LOCAL SCHOOL DISTRICT CONTROL AND I THINK THAT IS AN IMPORTANT PART OF IT AND I THINK IT IS IMPORTANT FOR US TO CONTINUE TO FOLLOW THAT BEST GOVERNMENT IS LOCAL GOVERNMENT, THAT LOCAL GOVERNMENT UNDERSTANDS WHAT IS BEST FOR THEM AND I AM HIGHLY IN FAVOR OF THIS BILL BECAUSE OF THAT PARTICULAR ORDINANCE.

>> PITCH THE UNCERTAINTY OF HOW MANY STUDENTS AND DISTRICTS MIGHT OPT TO PURSUE A SUPPLEMENTAL YEAR OF SCHOOL, WISE SAYS IT'S IMPOSSIBLE TO KNOW HOW MUCH THE PROPOSAL MIGHT COST.

THE SENATE APPROVED SENATE BILL 128 ON A VOTE OF 36 TO SEARCH AGREE.

NOW ON TO HOUSE ACTION AS KENTUCKY CONTINUES TO STRUGGLE TO KEEP UP WITH THE FLOOD OF CLAIMS TO THE UNEMPLOYMENT SYSTEM, A HOUSE BILL AIMS TO REQUIRE THE EDUCATION AND WORKFORCE DEVELOPMENT CABINET TO OPEN REGIONAL OFFICES DURING TIMES OF HIGH UNEMPLOYMENT.

HOUSE BILL 367 WOULD REQUIRE A FREE PUBLIC UNEMPLOYMENT OFFICE MANAGED THROUGH THE KENTUCKY CAREER CENTER, TO OPEN OPEN IN REGIONS WHERE THE UNEMPLOYMENT RATE RISES ABOVE FIVE PERCENT.

54 DIFFERENT TOWNS IN KENTUCKY ARE LISTED AS POTENTIAL DESTINATIONS FOR THESE OFFICES.

FRESHMAN REPRESENTATIVE SCOTT SHARP EXPLAINED WHY HE FEELS HIS MEASURE WAS NEEDED, IT GOES FURTHER WITHOUT SAYING THAT THE STATE'S UNEMPLOYMENT INSURANCE SEASONAL IS AN AREA THAT NEEDS IMMEDIATE ATTENTION.

WE ARE ALL AWARE THAT UNEMPLOYMENT PROGRAM HAS BEEN RIDDLED WITH ISSUES THAT THE STATE, SINCE THE STATE SHUT DOWN MID MARCH, WITH A HANDFUL OF EXECUTIVE ORDERS THOUSANDS OF KENTUCKIANS LOST THEIR SOLE SOURCE OF -- OR SOLE SOURCE OF INCOME WITHOUT ANY APPARENT CONSIDERATION FOR HOW THE SYSTEM DESIGNED TO SERVE RELATIVELY A LOCATION LOAD CAN HANDLE SKYROCKETING CLAIM NUMBERS.

AS A RESULT MORE THAN 80,000 CLAIMS REMAIN UNPROCESSED.

COMMUNICATION WITH THE UNEMPLOYMENT INSURANCE OFFICE IS ALL BUT NONEXISTENT.

AND WE HAVE MORE QUESTIONS TODAY THAN ANSWERS.

>> NO ONE HERE KNOWS HIGHWAY PEOPLE ARE GOING TO PUT FOOD ON, SOME OF THE CONSTITUENTS WILL PUT FOOD ON THEIR TABLE AND PAY FOR THEIR ELECTRIC BILLS, PAY FOR THEIR RENT.

WELL MUCH OF THE, WHILE MUCH OF THE PROGRAM IS IN THE EXECUTIVE AND FEDERAL FUNCTION HOUSE BILL 367 ATTEMPTS TO CONSTRUCT A SOLUTION TO AT LEAST ONE ISSUE PLAGUING UNEMPLOYMENT INSURANCE AND THAT'S THE LACK OF ACCESS TO THE SYSTEM AND THE ADMINISTRATORS.

>> LOUISVILLE REPRESENTATIVE MARY LOU MARZIAN ASKED SHARP ABOUT HOW MUCH IT WOULD COST TO OPEN THESE OFFICES.

>> CERTAINLY WE NEED THE HUBS OPEN.

DO YOU HAVE FINANCIAL ANALYSIS OF WHAT THIS WOULD COST AND WOULD THIS BE IN OUR BUDGET?

>> I DO NOT HAVE THE FINANCIAL COSTS AT THIS TIME.

HOWEVER, WE DO HAVE BUDGET LANGUAGE BEING DEVELOPED FOR IT AS WE SPEAK.

>> BUT -- >> THANK YOU, MR. SPEAKER, I THINK IT IS MY UNDERSTANDING THAT THE UNEMPLOYMENT LABOR FOLKS, THIS COULD BE $14 MILLION, WHICH I AM NOT SURPRISED AT, MAY I SPEAK ON THE BILL?

I AM SO SORRY.

>> YES, YOU MAY.

>> SO $14 MILLION NEEDS TO BE PUT IN THE BUDGET.

WE CAN'T MAKE PEOPLE GO TO WORK OUT -- I MEAN, WE CAN'T CREATE THESE OUT OF THIN AIR WITHOUT MONETARY ATTACHMENTS SO I CERTAINLY HOPE IT WILL BE PUT IN THE BUDGET.

>> HOUSE BILL 367 PASSED THE HOUSE NINE 8-0 AND NOW HEADS TO THE SENATE.

OCCUPATIONAL HEALTH AND SAFETY STANDARDS IN KENTUCKY MAY BE LIMITED TO THE BAR SET BY THE FEDERAL GOVERNMENT, IF A HOUSE BILL BECOMES LAW.

HOUSE BILL 475 STATES THE KENTUCKY OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION AND THE LABOR CABINET SECRETARY MAY NOT SET AN ADMINISTRATIVE REGULATION THAT IS MORE STRINGENT THAN A CORRESPONDING FEDERAL ONE FOR HEALTH AND SAFETY STANDARDS.

PROVIDENCE REPRESENTATIVE JIM GOOCH EXPLAINS WHY HE IS IN FAVOR OF THE MEASURE.

>> WE WANT TO MAKE SURE WE DON'T DO ANYTHING WITH THIS BILL OR ANY OTHER BILL THAT WOULD PUT PEOPLE AT RISK OR WHATEVER, BUT WE HAVE TO HAVE A COMMON SENSE APPROACH TO MAKE SURE THAT THE FOLKS THAT ARE ENFORCING THESE LAWS REALLY UNDERSTAND WHAT THEY ARE DOING AND NOT HOW JUST TO BE PUNITIVE AND WRITE SOMEONE A TICKET OR WHATEVER, ISSUE A CITATION, BUT BE ABLE TO SAY, HEY, THIS IS HOW WE CAN HELP YOU, THIS IS WHAT YOU NEED TO DO TO FIX THIS PROBLEM.

IN THIS IS WHAT YOU NEED TO DO TO KEEP FROM PUTTING THE EMPLOYEE IN DANGER.

>> DEMOCRAT LEADERS SPOKE OUT AGAINST HOUSE BILL 475.

MINORITY LEADER JONI JENKINS AND WHIP ANGIE HATTON BOTH SAY HOW KENTUCKY HANDLES OCCUPATIONAL SAFETY STANDARDS IS BETTER FOR KENTUCKY WORKERS.

REPUBLICAN REPRESENTATIVE JOHN BLANTON AGREES WITH THE TWO DEMOCRATS.

>> I JUST QUESTION WHETHER OR NOT THIS IS REALLY NECESSARY.

ANY TIME WE CAN MAKE THINGS SAFER AND BETTER FOR ANYBODY, I THINK WE SHOULD DO THAT AND WE ARE IN THAT TIME WHEN IT SEEMS THE COMMON PHRASE IS EVERY LIFE MATTERS, AND I THINK IT SHOULD BE THE SAME FOR OUR HARDWORKING EMPLOYEES OUT THERE, INCLUDING OUR POLICE AND OUR FIRE AND OUR TEACHERS AND ALL OF THE EMPLOYEES OUT THERE, SO I JUST URGE CONCERN.

>> AND WE DON'T KNOW WHAT NEW INDUSTRIES ARE GOING TO SPRING UP IN OUR COMMON WEALTH, AND I WOULD PROPOSE THAT HERE WE CAN BE MUCH MORE NIMBLE THAN THE FEDERAL GOVERNMENT CAN BE.

SO I THINK THAT WE SHOULD THINK -- WE SHOULD BE A FORWARD THINKING THAT WE ARE GOING TO HAVE HAVE A AMAZING NEW TECHNOLOGIES, AMAZING NEW INDUSTRIES THAT COULD COME TO THE COMMONWEALTH, AND WE WANT TO MAKE SURE THAT THE EMPLOYEES THAT ARE GOING TO BE EMPLOYED IN THESE AMAZING NEW INDUSTRIES ARE PROTECTED.

NOW, MANY OF THE KENTUCKY OSH REGULATIONS ARE IDENTICAL TO FEDERAL REGULATIONS.

MANY OF THEM ARE A LITTLE MORE BUSINESS FRIENDLY, MORE RELAXED, REPORTING DEADLINES AND THINGS LIKE THAT, BUT IN SOME CASES WHERE NECESSARY KENTUCKY HAS MADE ITS REGULATIONS MORE STRINGENT, BECAUSE KENTUCKIANS KNOW WHERE FLEXIBILITY IS NEEDED.

>> HOUSE BILL 475 PASSED THE HOUSE 63 TO 35.

IT NOW HEADS ACROSS THE CAN TOLL TO THE SENATE.

THE GOVERNOR WOULD NO LONGER HAVE SOLE CONTROL OVER WHO SITS ON THE EXECUTIVE BRANCH ETHICS COMMISSION IF HOUSE BILL 454 BECOMES LAW.

REPRESENTATIVE SHANE BAKER'S MEASURE WOULD DISSOLVE THE CURRENT COMMISSION AND CREATE A NEW ONE WITH SEVEN MEMBERS.

TWO WOULD BE APPOINTED BY THE GOVERNOR AND KENTUCKY'S OTHER CONSTITUTIONAL OFFICERS WOULD EACH APPOINT ONE PERSON.

BAKER EXPLAINED THE MEASURE TO THE HOUSE THIS AFTERNOON.

THE CURRENT EXXON POSITION, THE CURRENT COMMISSION IS COMPOSED OF FIVE MEMBERS.

THIS WILL EXPAND THE COMMISSION TO SEVEN MEMBERS.

THE GOVERNOR WILL APPOINT TWO OF THE NEW MEMBERS, THE TREASURER, AUDITOR, COMMISSIONER OF AGRICULTURE, SECRETARY OF STATE AND ATTORNEY GENERAL WILL EACH APPOINT ONE MEMBER.

TERMS OF THE EXISTING MEMBERS WILL TERMINATE ON THE EFFECTIVE DATE OF THIS ACT.

SEVEN NEW MEMBERS WILL BE APPOINTED BY THE OFFICIALS LISTED IN SUBSECTION 2.

TERMS FOR NEW MEMBERS OF THE COMMISSION WILL THEN BE STAGGERED.

>> AN AMENDMENT TO THE MEASURE WOULD INCREASE THE FINE FOR ATTEMPTING TO CORRUPT A MEMBER OF THE GENERAL ASSEMBLY FROM $1,000 TO $15,000.

HOUSE BILL 454 PASSED 71-22.

MOVING FROM THE HOUSE FLOOR TO HOUSE COMMITTEE, CRYPTOCURRENCY MINING COMPANIES COULD BE GETTING A BREAK ON THEIR ELECTRIC BILLS.

CRYPTOCURRENCY IS A DIGITAL FORM OF MONEY THAT IS DECENTRALIZED FROM GOVERNMENTS.

IT USES BLOCK CHAIN TECHNOLOGY, OR TECHNOLOGY THAT IS SPREAD SIMULTANEOUSLY ACROSS COUNTLESS COMPUTERS, TO CREATE OR "MINE" THE CRYPTOCURRENCY, THE MOST COMMON FORM IS KNOWN AS BITCOIN.

HOUSE BILL 230 SETS STANDARD FORCE COMMERCIAL CRYPTOCURRENCY MINING COMPANIES TO GET A SALES AND USE TAX EXEMPTION FORESTRIES AT THIS USED DURING MINING, THE BILL'S SPONSOR, PADUCAH REPRESENTATIVE STEVEN RUDY, SAYS THE PROCESS IS HIGHLY SOPHISTICATED AND HIGHLY TECHNICAL, HE GAVE LOUISVILLE REPRESENTATIVE AL GENTRY AN EXAMPLE OF HOW MUCH ELECTRICITY THESE CRYPTOCURRENCY MINING COMPANIES CAN USE, FOR INSTANCE, NOW WITH THE COMMITTEE SUBSTITUTE AN EXAMPLE IS ON TAXATION OF ELECTRIC RATES.

THE LARGEST CRYPTOCURRENCY COMPANY IN THE UNITED STATES CURRENTLY HAS AN OPERATION IN MARSHAL COUNTY, IN FAR WESTERN KENTUCKY, AND THEY BOUGHT AN OLD STEEL MILL AND YOU KNOW HOW MUCH ELECTRICITY A STEEL MILIUSS, I AM SURE, VERY, VERY INTENSIVE.

THEY HAVE RETROFITTED THE STEEL MILL TO MINE FOR CRYPTOCURRENCY AS DEFINED IN THIS BILL, AND THEY ARE CURRENCY USING MORE ELECTRICITY THAN THAT STEEL MILL DOES.

OR EVER DID AT FULL CAPACITY.

SO THIS WOULD DEAL WITH THE SAME ELECTRIC RATES FOR LIKE STEEL MILLS AND OTHER LARGE MANUFACTURERS.

>> A FISCAL NOTE ATTACHED TO THE ORIGINAL BILL SAYS HOUSE BILL 230 WOULD HAVE A NEGATIVE IMPACT TO THE GENERAL FUND TO THE TUNE OF $9 MILLION IN THE NEXT FISCAL YEAR.

REPRESENTATIVE JOSIE RAYMOND ASKED RUDY ABOUT WHAT IMPACT THIS WOULD HAVE TO THE KENTUCKY ECONOMY.

>> WHY DO WE PARTICULARLY WANT THIS INDUSTRY IN KENTUCKY?

>> WE WOULD LOVE TO HAVE MORE INDUSTRY.

WE WELCOME INDUSTRY HERE.

I THINK IT IS MORE RESOLVING, REVOLVING AROUND THIS IS SUCH A NEW TECHNOLOGY AND NEW INDUSTRY WE ARE JUST INCLUDING THEM INTO IT.

THIS IS THE MANUFACTURING AND MINING OF BITCOIN OR CRYPTOCURRENCY, BITCOIN IS ONE TYPE OF CRYPTOCURRENCY, BUT WE ARE JUST TRYING TO BRANCH INTO THIS MARKET AS WELL AS OTHERS AND REALLY IT ALLIANCE MORE WITH ALL OF THE OTHER THINGS WE CURRENTLY HAVE IN POLICY.

WE ARE JUST ADDING TO THE DEFINITION AS TECHNOLOGY CHANGES IN THESE STATUTES.

>> ALONG THOSE LINES, IF I MAY, ONE, YOU ARE LOOKING AT AN INDUSTRY THAT HAS LITTLE TO NO BY-PRODUCT, WASTE LIKE SOME INDUSTRIAL FACILITIES.

NUMBER 2, THOSE CRYPTOMINING FACILITIES AS I UNDERSTAND CAN LOCATE JUST ABOUT ANYWHERE AS LONG AS THEY HAVE ACCESS TO SUFFICIENT ELECTRICITY AND HAVE BROADBAND ACCESS.

AS WE COMPLETE BUILDOUTS OF BROADBAND ACCESS AND THAT MEANS IT IS A BROAD BASED POTENTIAL INDUSTRY ACROSS THE COMMONWEALTH THAT CAN LOCATE AND EXPAND HERE.

LEXINGTON REPRESENTATIVE KELLY FLOOD WAS ONE OF TWO MEMBERS OF THE HOUSE APPROPRIATIONS AND REVENUE COMMITTEE TO VOTE AGAINST THE MEASURE.

SHE JOINED THE COMMITTEE MEETING REMOTELY, AND SAYS THE VOTE ON HOUSE BILL 230 IS ONE OF THE MOST IMPORTANT OF THE LEGISLATIVE SESSION.

>> TO HAVE A BREAK IN OUR TAXES AND TO HAVE IT LAST DURING ANY PORTION OF THIS POST COVID TIME TO AN INDUSTRY THAT BUY ITS NATURE IS MAKING BANKING AS WE KNOW IT OBSOLETE AND MOVING US INTO ONLINE BANKING THE LIKES OF WHICH WE HAVE NEVER KNOWN, WE HAVE NEVER MONEY, ONLY CRYPTOCURRENCIES SO FAR HAVE BEEN EXTRAORDINARILY DANGEROUS TO INVEST IN, BECAUSE OF THEIR VOLATILITY, AND WHILE THERE IS A BEGINNING OF STABILIZATION, JUST A TASTE OF IT WITH TESLA AND SOME OF THE MAJOR, YES, CHINESE CORPORATIONS DECIDING BITCOIN IS WHERE WE ARE GOING AND BITCOIN HIKE INDUSTRIES, BITCOIN LIKE INDUSTRIES, WE ARE NOT FOR A MOMENT TO GIVE AWAY A DIME TO AN INDUSTRY THAT IS ALREADY MAKING MILLIONS AND MILLIONS OF DOLLARS.

WHAT I WOULD SUGGEST, AND I MEAN THIS SO SINCERELY, JUST REMEMBER, RUSH IS THE OTHER ONE IN HERE DOING THIS, WE INSTEAD ASK FOR FUNDING TO COME AND USE OUR GREAT STATE, BECAUSE WHAT HAPPENS IS, THESE BECOME HOT ZONES, VERY, VERY HOT ZONES, BECAUSE OF THE AMOUNT OF HEAT GENERATED BY THE AMOUNT OF ELECTRICITY, AND THAT IN AND OF ITSELF CAUSES PROBLEMS IN DRAWING DOWN FROM THE GRID FOR OTHER PEOPLE IN THE AREA.

HOUSE BILL 230, WHICH WOULD PROVIDE SALES TAX AND USE EXEMPTIONS TO CRYPTOCURRENCY MINING BUSINESSES, PASSED THE HOUSE APPROPRIATIONS AND REVENUE COMMITTEE 19-2, WITH A SINGLE PASS VOTE.

THE, THAT SAME HOUSE A AND R COMMITTEE PASSED ANOTHER MEASURE TODAY THAT WOULD CREATE A TAX EXEMPTION FOR TECHNOLOGY COMPANIES.

HOUSE BILL 372 WOULD PROVIDE SALE AND USE TAX EXEMPTIONS TO DATA CENTERS.

DATA CENTERS ARE PHYSICAL LOCATIONS THAT HOUSE COMPUTER SYSTEMS.

STEVE DELBIANCO AND BARBARA COMSTOCK OF NET CHOICE, A LOBBYING FIRM FOCUSED ON INTERNET REGULATION, EXPLAINED WHY THE MEASURE IS NECESSARY TO MAKE KENTUCKY ATTRACTIVE TO COMPANIES HOPING TO BUILD DATA CENTERS.

>> ON THE VIRGINIA AUDIT AND REVIEW COMA COMMISSION, SHOWED IN THEIR STUDIES THAT VIRGINIA RECOVERED OVER A DOLLAR IN STATE REVENUE FOR EVERY DOLLAR OF STATE TAXES EXEMPTED FOR DATA CENTER EQUIPMENT AND PURCHASES.

THESE DATA CENTERS GENERATE A LOT OF LOCAL REVENUE IN AN AREA THAT I REPRESENTED IN LAWTON COUNTY WHICH IS SORT OF A DATA CENTER CAPITAL OF THE WORLD.

THEY GENERATE OVER 300 MILLION IN LOCAL TAX REVENUE A YEAR, IT ACTUALLY IS GOING UP EXPONENTIALLY EVERY YEAR, MAYBE UP TO 400 MILLION, BY NEXT YEAR BUT THIS FUNDS EDUCATION IN THIS GROWING COMMUNITY POLICE AND SERVICES WHILE ACTUALLY THEY HAVE BEEN ABLE TO LOWER THEIR PROPERTY TAXES, SO IT IS SOMETHING THAT VERY MUCH DIVERSIFIES YOUR TAX BASE.

>> AMERICANS TOP INVESTMENT HEROES ARE TECH FIRMS, THOSE TECH FIRMS MADE $70 BILLION IN GAL INVESTMENTS IN THE U.S. ALONE LAST YEAR AND THAT IS MORE THAN ANY OTHER INDUSTRY, INCLUDING ENERGY, PHARMA, TELL COM OR MANUFACTURING, TELECOM, THE THING IS NO DATA CENTER AS I HAVE BEEN DESCRIBING HAS EVER LOCATED IN KENTUCKY NOR ANY OTHER STATE THAT IMPOSES SALES TAX ON DATA CENTER EQUIPMENT FOR THE LAST EIGHT YEARS.

>> LOUISVILLE REPRESENTATIVE AL GENTRY ASKED HOUSE BILL 372'S SPONSOR PHILIP PRATT ABOUT DATA THE STATE WILL COLLECT ON THE BENEFITS OF TO TAX EXEMPTION.

>> DO WE HAVE A WAY OF TRACKING HOW MANY -- HOW MUCH IN EXEMPTIONS WE ARE GIVING AWAY AND WHAT THE RETURN OF INVESTMENT MIGHT BE FROM A NEW EMPLOYEE OR JOB GROWTH STANDPOINT?

>> ACTUALLY, IT IS BASICALLY SALES TAX EXEMPTION ON EQUIPMENT THEY BUY IS WHAT THEY ARE ASKING FOR, BUT ALSO THAT IS WHAT COMMUNITY DID, THEY HAVE TO REPORT TO US ON A REGULAR BASIS WHERE THEY ARE GOING, WHAT THEY ARE SPENDING, WHAT THE RETURN TO THE STATE IS AND THE COST.

SO THAT IS ACTUALLY WHY THAT COMMITTEE SUBWAS PASSED TODAY RIGHT BEFORE WE ASKED FOR THIS BILL TO BE PASSED.

>> A FISCAL NOTE ATTACHED TO THE BILL SAYS THE MEASURE WOULD HAVE A $15 MILLION NEGATIVE IMPACT ON THE GENERAL FUND IN FISCAL YEAR 2022.

THE NOTE EXPLAINS THAT IF MULTIPLE ENTITIES CLAIM THIS EXEMPTION THAT HIT COULD BE MORE SUBSTANTIAL.

REPRESENTATIVE JOSIE RAYMOND VOTED AGAINST THE BILL, BUT BOB BABBAGE SAYS THE BILL IS NECESSARY TO HAVE KENTUCKY BECOME A POTENTIAL LOCATION FOR NEW DATA CENTERS.

>> IF WE BUILD IT, I DON'T KNOW IF THEY ARE GOING TO COME IS WHAT I AM SAYING BECAUSE WE HAVE NETWORK CHALLENGES WE ARE TRYING ADDRESS, WORKFORCE CHALLENGES I DON'T THINK WE ARE ADDRESSING AND THEN WE SEE LEGISLATION THAT IS UNFRIENDLY TO EMPLOYEES LIKE ANTI-GAY LEGISLATION MOVING THROUGH THE LEGISLATURE.

SO I AM NOT ENTIRELY SURE IT IS GOING TO PAY OFF.

I DON'T THINK FACEBOOK NEEDS A TAX COUPON, I THINK FACEBOOK IS GOING TO DO WHAT FACEBOOK IS GOING TO DO AND I DON'T WANT THEM TO GET BETTER SNACKS TO THEIR EMPLOYEES IN CALIFORNIA ON THE BACKS OF KENTUCKIANS.

IN THAT COMMUNITY STUB IS IT STILL A 30-YEAR EXEMPTION?

>> OR HAS THAT BEEN REDUCED?

>> MR. BABBAGE CAN ANSWER THAT.

>> WE WORK CLOSELY WITH -- AND WHO HEAD THE ECONOMIC DEVELOPMENT DIRECTORS OF THE STATE, MEN AND WOMEN WHO WOULD 0 LIKE TO HAVE THIS TOOL IN THEIR TOOLKIT AS WELL AS COMMISSIONER TAYLOR AT ECONOMIC DEVELOPMENT AND OTHERS WHO SAY THAT WE DO HAVE SITES IN KENTUCKY THAT ARE ALREADY DATA CENTER PREPARED, TOTALLY EAGER TO GET THEM AND COULD MEET THE NEED IF THEY WERE WITH TO COME WITH WORKFORCE, WORKFORCE TRAINING, WITH ALL OF THE LOCAL SUPPORT THAT THEY WOULD NEED TO BE SUCCESSFUL.

SO AGAIN, IT IS NOT A MATTER OF WHAT COMPANIES NEED SO MUCH AS WHAT WE NEED IN ORDER TO COMPETE TO WIN.

THAT'S THE POINT OF THIS.

IF WE DON'T MAKE THE STEP THEN WE WILL NEVER GET ON THE LIST.

>> HOUSE BILL 372 PASSED THE HOUSE APPROPRIATIONS AND REVENUE COMMITTEE 18-2 WITH ONE PASS VOTE.

IT NOW THOSE THE FULL HOUSE FOR CONSIDERATION.

THAT'S ALL FOR OUR DAY 21 COVERAGE OF THE 20/21 KENTUCKY GENERAL ASSEMBLY IN REGULAR SESSION.

FOR INFORMATION ABOUT LEGISLATIVE MEETINGS, CALL 1-800-633-9650.

YOU CAN ALSO FOLLOW OUR GAVEL TO GAVEL COVERAGE THROUGHOUT THE DAY BY DOWNLOADING KET'S LEGISLATIVE COVERAGE APP TO YOUR SMART PHONE OR TABLET.

YOU WATCH ON OUR KENTUCKY CHANNEL OR FOLLOW ALONG ONLINE AT KET.ORG AND WE HOPE TO SEE YOU 15 FOR LEGISLATIVE UPDATE AGAIN TOMORROW NIGHT AT 11:00 P.M. EASTERN, 10:00 CENTRAL TIME.

THE I AM CASEY PARKER-BELL AND I