2015 commerce lexington inc. policy statements

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FEDERAL STATE LOCAL SPONSORED BY: LEGISLATIVE FOCUS 2015 POLICY STATEMENTS

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Commerce Lexington Inc. has released the organization’s 2015 public policy statements, which will guide the organization’s advocacy efforts throughout the year at the federal, state and local levels of government.

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Page 1: 2015 Commerce Lexington Inc. Policy Statements

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SPONSORED BY:

LEGISLATIVE

FOCUS

2015 POLICY STATEMENTS

Page 2: 2015 Commerce Lexington Inc. Policy Statements

Commerce Lexington Inc.'s Public Policy Council is the bricks, mortar andlabor that make the structure that is Commerce Lexington's Public Policyeffort. The council members and chair are all volunteers and represent avariety of non-profit, local government, large and small businesses, edu-cation groups and utilities representing a broad spectrum of CommerceLexington's 1,700 member companies. The Council's Chairman is ap-pointed annually by the Chair of the Board of Commerce Lexington.

The Public Policy Council meets monthly May through December and es-tablishes the agenda for Commerce Lexington for the upcoming session.During these meetings, the Council hears from a variety of groups, non-profits and businesses that want to join Commerce Lexington in advocat-ing for their positions in Frankfort and Washington.

After the Public Policy Council approves the policy statements, the posi-tions are then approved by Commerce Lexington's Executive Board. Onceapproved, the statements are published annually in Commerce LexingtonInc.'s “Legislative Focus.” Copies of the agenda are distributed to all ofCommerce Lexington Inc.'s members, all 138 members of the GeneralAssembly and the Governor's Office.

In the heat of a Legislative Session, there are always important and timelylegislative issues and bills that arise. When the Public Policy Council is askedto weigh-in on legislation, emergency meetings take place for the Council totake up the legislation and create Commerce Lexington's position. The posi-tion is then presented to the Executive Board for approval if time allows.

FOR MORE INFORMATION:To find out more about Commerce Lexington Inc.’sPublic Policy process, its positions or stances onspecific issues, or pieces of legislation beingwatched in government, contact Commerce Lex-ington Inc.’s chief lobbyist, Andi Johnson, at (859)226-1614 or [email protected].

ADDITIONAL COPIES:The 2015 Public Policy Statements brochure is published by CommerceLexington Inc. (330 East Main Street, Suite 100, Lexington, KY 40507).Additional copies of this brochure are available at the Commerce Lex-ington Inc. offices, or the document can be downloaded on-line atwww.CommerceLexington.com > PUBLIC POLICY.

Message From thePolicy Council ChairBusiness leaders are oftentoo busy attracting invest-ments and creating jobs tofocus large amounts oftime on monitoring legisla-tion and regulations, ana-lyzing their effect andadvocating for their pas-sage, defeat or modifica-tion.

But, the impact of gov-ernment is too impor-tant to ignore. You can’tturn on a light switch,car ignition or computerwithout being touchedby government. So, it’sessential that policy-makers appreciate how busi-nesses work and flourish, and, in turn, that youhave someone in your corner who understandshow policy is made and enacted.

That’s why Commerce Lexington Inc. and its Pub-lic Policy Council gather the top experts in a varietyof industries, harness that knowledge, and advo-cate for you in the halls of our state Capitol or theLexington-Fayette Urban County Government tocreate a more business-friendly environment.

Each year, we work with you – our members – toidentify issues affecting the business communityand spotlight the best public policy solutions. But,that is just the beginning of our work. Then, weput boots on the ground in Lexington and Frank-fort to be your champion and your watchdog.

Our strong working relationships with local, stateand federal officials mean that you will be well-rep-resented and your voice will be magnified by the1,700-plus members on whose behalf we speak.

Please take a few moments to review the legisla-tive agenda for Commerce Lexington Inc. as wework to help shape legislation and regulations thatwill enhance the success of our children, our work-force and our job creators.

CARLA BLANTONCHAIR

COMMERCE LEXINGTONINC. PUBLIC POLICY

COUNCIL

CARLA BLANTONCONSULTING

ANDI JOHNSON

Commerce Lexington Inc.PUBLIC POLICY PROCESS

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Page 3: 2015 Commerce Lexington Inc. Policy Statements

Commerce Lexington Inc. Public Policy Council:

2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

Dennis AndersonAnderson Communities

Rusty AshcraftAlliance Coal

Kevin AtkinsOffice of Lexington Mayor Jim Gray

Bob BabbageBabbage Cofounder

Carla Blanton, Policy Council ChairCarla Blanton Consulting

Tony Bonner Dinsmore

Patrick BrewerLexmark International, Inc.

Stuart BrownHagyard Medical Institute

Steve ByarsUniversity of Kentucky

JD ChaneyKentucky League of Cities

Rick ChristmanEmployment Solutions, Inc.

Ray DanielsLexiDan Foods/Waffle House

Greg DixonSMART Recycling Management

Rob EdwardsUK HealthCare

Bill EmrickHoskins Law Offices

David FreibertKU-LG&E

Chad HarpoleCentury Aluminum

Andy HaymakerHaymaker Development Company

Stephen HillenmeyerStephen Hillenmeyer Landscape Services

Jay Ingle Jackson Kelly PLLC

Todd JohnsonHomebuilders Association of Lexington

Patrick KealBig Ass Fans

Mark KreyenbuhlLink-Belt Construction

Susan LanchoKentucky American Water

Eric LycanThe Lycan Law Firm, PLLC

Doug MartinSturgill, Turner, Barker & Moloney, PLLC

Barry MayfieldEast Kentucky Power Cooperative

Kristin MeadorsKentucky Distillers Association

Herb MillerColumbia Gas of Kentucky

David MossKentucky Coal Association

Rob MuddAzur Restaurant & Catering

David OwenBingham Greenebaum Doll, LLP

Stewart Perry Perry and Perry/State Farm Insurance

Robert Riggs Riggs Sales Service, Inc.

David RoyseStoll Keenon Ogden PLLC

Ed Saunier North American Van Lines

Julie Schmidt Kentucky Education Television

Scott SmithSmith Management Group

David Switzer Kentucky Thoroughbred Association

Judy TaylorKeeneland Association

Darryl ThompsonFayette County Public Schools

Ellen WilliamsMcBrayer, McGinnis, Leslie & Kirkland, PLLC

r Actively monitors all legislative activity from Urban County Gov-ernment, the Kentucky General Assembly and the U.S. House andU.S. Senate.

r Extensive lobbying efforts for small and large businesses, non-profits and education groups at a local, state and federal level.

r Extensive lobbying and monitoring of legislative and ordinanceactivity with the LFUCG Council and the Mayor's Office - a productonly a local chamber can provide.

rMonitors all Kentucky Administrative Regulations and activelyparticipates in opposing regulations that negatively affects busi-ness.

r Monitor and participates in critical environmental activity in-cluding the E.P.A./LFUCG Consent Decree and air and water qual-ity regulations at a local, state and federal level.

r Participates in legislative and legal coalitions, submitting let-ters, filing legal briefs, and testifying on behalf of business withpending court cases or at committee meetings.

r Weekly e-mail updates during Legislative Sessions to all Com-merce Lexington Inc. members communicating important billsand action that impacts the bottom line for area businesses.

r Creates numerous networking opportunities throughout theyear for Chamber members to interact with our local, state andfederal delegation and their staff to communicate the needs ofCentral Kentucky Businesses.

r Organizes an annual regional Washington Fly-In to take theneeds and concerns of Central Kentucky's businesses to Wash-ington.

CLX Public Policy Team: Working for Your Business

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Page 4: 2015 Commerce Lexington Inc. Policy Statements

2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

Commerce Lexington fully supports the development of effectivepublic/private partnerships focused on addressing adult educationand retraining needs. We support priority investments that addressthe unique needs of adults who need to gain literacy and mathskills, a GED and workforce skills simultaneously by:

r Identifying adult education needs.r Actively encouraging individuals to participate in adult educationand literacy programs.r Taking deliberate steps to provide easier access to available pro-grams.r Supporting the full funding of the Kentucky Skills Network andadding more flexibility for eligible adults.

FCPS Strategic PlanningCommerce Lexington is encouraged by and supports the developmentof a Strategic Plan to guide the improvement efforts of the FayetteCounty Public Schools (FCPS) over the next five years to improve stu-dent performance. The business community is committed to workingwith FCPS in efforts aimed at closing the achievement gap and makingFCPS a top 10 school district in Kentucky. Driven by the work of Pro-fessional Learning Communities in the areas of Student Achievement,Student Engagement, Staff Engagement, Family Engagement and Com-munity Engagement, the Strategic Plan will help focus the district onkey strategic priority areas that will be regularly monitored and reflectedin district budget planning in order to achieve the ultimate mission ofcreating a collaborative community that ensures all students achieve athigh levels and graduate prepared to excel in a global society.

Commerce Lexington believes that education is one of the most important functions of state government andtherefore urges policymakers to make education funding a top priority. Having a highly educated and capableworkforce is essential to attracting new business and retaining existing business and industry. Increasing edu-cational attainment at all levels enhances the social fabric, quality of life, and promotes economic opportunityfor the community, as well as those looking to locate a business in the region.

EDUCATION

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FOCUS ON: Workforce DevelopmentA skilled workforce is the number one concern for businesses in Central Ken-tucky. Lack of qualified human capital prevents business expansion, economicinvestments and job creation. It is important to develop a talent pipeline withthe necessary technical and professional skills to meet the needs of employersin the region.

Therefore, a top priority of Commerce Lexington through its partnership withthe Business and Education Network (BEN) is to identify current and futureworkforce needs of the region, and to develop a strategic plan to address thoseneeds through collaborative partnerships between stakeholders in the com-munity.

The federal and state workforce investment programs are important compo-nents to providing a highly skilled and educated workforce in Central Kentucky.Commerce Lexington supports aligning and improving existing training pro-grams through local partnerships with employers, educators, administrators,community organizations and training providers to better meet skills gapneeds of the business community. Commerce Lexington supports reformsto the workforce training system that ensure funding is properly allocated toinitiatives that demonstrate the best possible return on investment.

Federal legislation, such as The Workforce Innovation and Opportunity Act(WIOA) passed the United States Congress in July 2014, has taken positivesteps toward strengthening workforce training efforts by streamlining pro-grams, reducing burdensome mandates, providing greater state flexibility, pro-moting skills training for in-demand jobs, and pushing for increasedaccountability and transparency over the use of taxpayer dollars.

However, additional steps need to be taken at the state and local level to en-sure federal and state training dollars are being used efficiently and effectivelyto meet the needs of local employers.

Commerce Lexington Inc. en-courages lawmakers to review,and if needed, amend the exist-ing policies to:

1. Strengthen collaborative partner-ships among key local stakeholders.

2. Establish procurement guidelinesfor local workforce investmentboards and all contract parties toeliminate conflicts of interests.

3. Promote greater transparencyand accountability over spendingpractices and program outcomes forlocal workforce investment boardsand all contract parties.

Adult Education Elementary & Secondary Education

Page 5: 2015 Commerce Lexington Inc. Policy Statements

2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

Creating & Maintaining School LeadersCommerce Lexington fully supports all efforts that help increase stu-dent achievement through training for well-prepared school super-intendents, principals, teachers and other instructional staff.Superintendents must have the authority to make or participate incritical personnel decisions in schools; particularly, in persistentlylow performing schools. Basic leadership skills and ongoing profes-sional development are critical leadership attributes for principals tobecome effective leaders within our schools statewide. Teachersmust be held accountable for instructional strategies and practicesthat yield student achievement results in the classroom We mustlook at competitive pay for our teachers, including innovative formsof differentiated compensation which would reward teachers basedon performance and the achievement levels of students.

Quality Education InvestmentsCommerce Lexington urges policymakers to make educationfunding a top priority in the budget process. We support qualityinvestments in our children’s education and oppose using localschool district’s reserve funds to balance the State Level GeneralFund. Commerce Lexington fully supports any and all invest-ments in early childhood education including preschool and anequitable, full-day kindergarten program statewide. CommerceLexington supports the General Assembly increasing the numberof school days closer to the national average of 180 days, andthe international average of 193 days. Commerce Lexington op-poses the state mandating a local school districts calendar.

Commerce Lexington fully supports the lifelong educational pro-gramming and work KET delivers to schools and the public. Throughtechnology, KET provides access, equity, and quality educational re-sources focused on student achievement and teacher preparedness.In addition, KET plays a key role in assisting Kentuckians with lessthan a high school education with receiving their GED.

Support Implementation of College &Career Readiness ProgramsCommerce Lexington supports the SB 1 (2009) education initia-tives including a mandate for the Kentucky Council on Postsec-ondary Education (CPE), the Kentucky Board of Education (KBE),and the Kentucky Department of Education (KDE) to develop aunified strategy to reduce college remediation rates of recenthigh school graduates and to increase the college completionrates of students enrolled in one or more remedial classes bythree percent annually.

Commerce Lexington supports four key strategies to promotecollege and career readiness and degree completion:

r Accelerated Learning Opportunities focused on the expansionof AP/IB access and dual credit opportunities.r Secondary Intervention Programs focused on the develop-ment of transitional coursework.r College and Career Readiness Advising focused on the full im-plementation of the Individual Learning Plan and comprehensiveadvising programs.r Postsecondary College Persistence and Degree Completionfocused on bridge programming, accelerated learning opportu-nities, and student support and intervention systems.

Support of Common Core State StandardsCommerce Lexington supports the implementation of CommonCore State Standards (CCSS) to promote college and career readi-ness. In The standards are designed to be robust and relevant tothe real world, reflecting the knowledge and skills that our youngpeople need for success in college and careers. With Kentucky stu-dents fully prepared for the future, our communities will be bestpositioned to compete successfully in the global economy.

Family & Community EngagementParental and community engagement is a critical component toacademic achievement. Recognizing that not all children havean effective adult advocate, Commerce Lexington backs innova-tive approaches to facilitate collaboration toward common goals,such as the efforts of the One Community, One Voice Achieve-ment and Closing the Gap Community Committee. Their inclu-sive efforts to identify measurable goals and accountabilitystrategies will help move the Fayette County Public School dis-trict towards closing the achievement gap among all students,while raising overall student achievement.

STEM is Critical to CompeteCommerce Lexington supports legislative and local district ef-forts to increase graduates in the Science Technology Engineer-ing and Mathematics (STEM) disciplines to meet theever-growing needs of employers. Commerce Lexington believesKentucky students should be challenged at all educational levelsand provided the instruction they need to succeed in the newglobal economy. Improving academic achievement of all stu-dents can be done by encouraging rigorous and relevant coursesand experiences. Critical to Kentucky’s ability to compete in theglobal economy is a commitment to increasing the focus onSTEM in our schools through learning opportunities that provideenrichments and exposures in aviation and aeronautics; agricul-ture, and related agri-science; computer and informational sci-ences; health care, biotechnology and biomedical sciences toname a few. Commerce Lexington also supports utilization ofsecondary career and technical education programs comprisedof project-based learning to further this goal. An increased focuson STEM disciplines, however, does not mean the exclusion ofarts and social sciences curricula.

Financial LiteracyCommerce Lexington supports the inclusion of “Financial Liter-acy” education in Central Kentucky’s school classrooms. Thistraining can be achieved through traditional curriculum devel-opment or through private-public initiatives such as JuniorAchievement of the Bluegrass partnership with the FayetteCounty Public Schools. Financial literacy programs introducestudents to important life skills and concepts such as budgeting,banking, understanding the difference between debit and creditcards, using credit responsibly and financial planning, as well asinvestments such as stocks, bonds and other securities. In ad-dition to providing students with a skill set essential for a suc-cessful future, Commerce Lexington believes that financialliteracy education in our schools is imperative to training a futureworkforce that is an attractive local resource for new businessand economic development.

EDUCATION

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Elementary & Secondary Education

Page 6: 2015 Commerce Lexington Inc. Policy Statements

6 2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

EDUCATION

University of KentuckyThe Commonwealth of Kentucky recognized in 1997 that stateswith Top 20 public research universities have healthier, moreprosperous citizens. Commerce Lexington recognizes the rolethat UK plays in education, health care and economic develop-ment for Lexington and all of Kentucky. As UK’s state appropri-ation is $55 million a year less than it was in 2008, CommerceLexington supports UK and it encourages the General Assemblyto adequately fund UK’s base appropriation that supports itsteachers and students. Commerce Lexington also recognizesthe important role that the other public and private institutionsof higher learning play in Central Kentucky, and we urge the in-clusion of independent institutions in cooperative postsecondaryeducation programs with their public counterpart.

Commitment to ResearchCommerce Lexington supports investments in the research ca-pacity of UK for building and enhancing the laboratory, office andclassroom facilities needed to attract and house top-flight facultyand researchers. Commerce Lexington supports the ResearchChallenge Trust Fund ("Bucks for Brains") and applauds the Gen-eral Assembly who provided the universities added flexibility touse state and matching funds to build research space for cuttingedge laboratories and equipment. Commerce Lexington also en-courages the General Assembly to make additional appropria-tions for research at the state’s research universities.

University CapitalUK has the oldest campus among the public universities in theCommonwealth and, as a result, has tremendous need to im-prove student residences, add more effective learning space andincrease and modernize research capacity. These facilities willhelp UK recruit, retain and graduate more students, create newjobs and add to the University’s capacity to provide service tothe Commonwealth. Commerce Lexington supports capital fromthe state for new classroom and research space, in partnershipwith UK when appropriate. Commerce Lexington applauds thelegislature for granting authority to construct new student resi-

dences in an innovative public/private partnership initiated byUK and for passing HB 7 in the 2013 regular session that ap-proved 3 self-financed construction projects on UK’s campusand a total of 11 projects at 6 universities across the state. Thisauthority will allow a total of $363 million in investment and cre-ate thousands of jobs, all without any state appropriation. Com-merce Lexington urges continued support giving Kentucky'suniversities and colleges’ authority to develop their capital infra-structures.

Ky. Community & Technical College System/Bluegrass Community & Technical CollegeThe Kentucky Community and Technical College System (KCTCS)provides one of the best returns on the investment for post-sec-ondary education in Kentucky. The credit hour costs and studentdebt levels upon completion from KCTCS are the lowest in thecommonwealth for institutions of higher education. Additionally,KCTCS has taken on an aggressive campaign to improve allKCTCS programs with the Transformation Initiative. CommerceLexington urges the Kentucky General Assembly to support thecontinued development of KCTCS – and specifically its CentralKentucky affiliate, Bluegrass Community & Technical College(BCTC), to increase access to higher education and improveworkforce training.

Enhance Technical Skills TrainingMany Central Kentuckians need access to skills training includ-ing incumbent workers, those seeking jobs or updated skills, andhigh school students planning for careers. Commerce Lexingtonsupports the Kentucky Community and Technical College System(KCTCS) and Bluegrass Community and Technical College(BCTC) which serves the Central Kentucky region in their effortsto work with local businesses to enhance technical skills trainingand “work ready” employees. Additionally, Commerce Lexingtonbelieves it is critical that high school students who choose thetechnical training career path have access to grants and other fi-nancial assistance.

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Postsecondary Education

Page 7: 2015 Commerce Lexington Inc. Policy Statements

Monitor Implementation ofFederal Health Care ReformCommerce Lexington believes that both business owners andemployers should have the opportunity to provide for them-selves and their employees quality affordable health insuranceavailable from the private market, not government. However,the Patient Protection and Affordable Care Act (PPACA) passedby Congress created a great deal of uncertainty for employers.The effect of the PPACA will not be completely realized until fed-eral regulations have been finalized and implemented over thenext few years. Commerce Lexington remains concerned thatemployers that have previously provided voluntary health insur-ance coverage for their employees will now face mandated levelsof health insurance coverage as well as increased taxes, premi-ums penalties, Therefore, Commerce Lexington is committedto monitoring the implementation of the PPACA and will con-tinue to provide input to our federal and state policymakers inan effort to ensure that employers can provide quality affordablehealth insurance coverage to their employees without being con-tinually overburdened with federal regulations and penalties.

Effectively Combat Drug & Substance AbuseCommerce Lexington acknowledges the need to address Kentuckydrug abuse problem. Both private and public sector leaders realizethe negative effect of drug and substance abuse on their employ-ees and citizens, particularly in terms of rising health care costsand lost production in Kentucky’s workforce. According to theKentucky Office of Drug Control Policy, lost productivity, healthcare costs and drug-related crimes associated with illegal drugabuse cost the state of Kentucky $2.5 to $3.6 billion annually.

The severity of prescription drug abuse (including opiates, am-phetamines, and benzodiazepines), illegal methamphetamineproduction, and heroin cannot be overstated. Commerce Lexing-ton supported the provisions of HB 1 passed during the 2012Special Session, otherwise known as the “pill mill” bill and willcontinue to monitor the implementation of the legislation. Com-merce Lexington will seek to provide input as necessary withmembers of the Kentucky General Assembly in order to ensurethat unscrupulous physicians and “pill mills” are held account-able for their actions.

While efforts to curb supply are absolutely essential, they do notaddress the issue of addiction itself. This has resulted in manyindividuals who were addicted to prescription opiates turning toheroin. The spread of heroin use has created greater publichealth concerns, such as increased injection drug use, inevitableincreases in cases of HIV and Hepatitis C, and the significantrisk of fatal overdose. Because effective drug policy enforcementmust be paired with community-based substance education andincreased access to treatment, Commerce Lexington encouragesits members to educate themselves about addiction and to takean active role in leading others to a better understanding of thisdisease, and to advocate for expanded treatment resourceswhenever possible.

Health & Wellness ProgramsCommerce Lexington supports legislation that provides tax cred-its and incentives to employers for creating health and wellnessprograms for their employees. Kentucky’s population consis-tently ranks near the top of the list among the states for overallpoor health indicators. Poor health among Kentuckians is adrain on the state’s resources, leading to increased health carecosts for employers and employees, as well as leading to in-creased utilization of health care services among the state’sMedicaid recipients. Health and wellness programs offer em-ployers the opportunity to address the culture of poor health inthe Commonwealth by promoting preventive health care as wellas educating and encouraging healthy lifestyles among their em-ployees. Health and wellness programs often serve as an effec-tive health care cost containment measure and serve to promotepersonal responsibility among employees for their own healthoutcomes. Commerce Lexington will continue to support pro-grams and policies that incentivize companies to educate andpromote health and wellness for their employees.

Medical MalpracticeCommerce Lexington will support effective measures to addressthe escalating costs of health care and medical malpractice in-surance for health providers, which has contributed to higherhealth care costs, higher health insurance premiums, and con-tinues to create the potential for reduced access to care.

Increase the Number of Health CareProfessionals in KentuckyMany areas of Kentucky are underserved by health care profes-sionals, which contribute to poor access and higher medicalcosts for our citizens. Commerce Lexington encourages lawmak-ers to initiate programs and funding or support policies that en-courage medical professionals to serve both the rural andinter-city areas which may appear less desirable.

Reduce SmokingKentucky continuously leads the nation in adult smoking ratesas well as rates among pregnant women, and is second amonghigh school and middle school students. The smoking relatedloss of economic productivity is over $2 billion dollars annuallyin Kentucky alone. Commerce Lexington fully supports raisingKentucky’s cigarette tax to be more in-line with the national av-erage. Additionally, initiatives should be implemented to reducesmoking among Kentucky Medicaid patients.

HEALTH CARE

2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS 7

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2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

Commerce Lexington fully supports the development of new incentives to help Kentucky’s small businessesgrow and prosper in today’s global economy. We support new strategies to increase jobs by attracting compa-nies to Kentucky. We advocate a regional approach to economic development planning and problem solving.We work closely with local governments and community organizations across Central Kentucky to develop acommon vision for the prosperity of our region.

Although not a substitute for comprehensive tax reform, Commerce Lexington supports strategic investmentsin incentive programs designed to encourage the growth of high wage jobs, long-term investment in strategicallydefined industry sectors, small business promotion, or other significant economic development projects thatdemonstrate a clear return on investment and would not otherwise occur without the incentive.

Commerce Lexington urges lawmakers to continue to support, and in some cases consider expanding, state in-centive programs promoting business growth and job creation, such as the Kentucky Business Investment pro-gram (KBI), Kentucky Enterprise Initiative Act (KEIA), Kentucky Reinvestment Act (KRA), Kentucky InvestmentFund Act (KIFA), SBIR/STTR matching program, and the Kentucky Skills Network workforce training programs.

ECONOMIC DEVELOPMENT

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Service & Technology Retention Tax Credits Other states are aggressively pursuing Kentucky companies torelocate using various tax incentive programs. Kentucky cannotafford to lose additional jobs to other states; therefore Com-merce Lexington supports a modification of the Kentucky Rein-vestment Act (KRA) to include service and technology firms inaddition to manufacturing firms within the KRA program in orderto retain service and technology jobs in the Commonwealth.Commerce Lexington supports linking the tax credits directly tojob retention, and would support implementing minimum re-quirements for companies to meet before the tax incentives be-come available.

R&D Investment IncentivesAmerican corporations focus their research and development ac-tivities on the development of new products, processes, andservices while relying on research universities to do basic scien-tific research. In order to supplement basic research investmentby federal agencies, Commerce Lexington supports the estab-lishment of federal and state tax incentives to encourage corpo-rations to make cash investments or endowment gifts toresearch departments or proof of concept centers of public re-search universities. Incentives should also be in place to encour-age corporations to make investments in high tech, high riskstart up technology companies.

Bluegrass Business DevelopmentPartnership (BBDP)Established in 2007, Commerce Lexington continues to supportits partnership between the Lexington-Fayette Urban CountyGovernment, the University of Kentucky and the Kentucky SmallBusiness Development Center in an effort to encourage eco-nomic development, investment and job growth in Central Ken-tucky. Since its inception the Bluegrass Business DevelopmentPartnership has been a one-stop shop for the economic devel-opment needs of its clients. This program has served over 9,600clients and announced the creation of 9,200 new jobs and over$1.6 billion in capital investment.

Entrepreneurial IncentivesCommerce Lexington supports initiatives that encourage the contin-ued development of the knowledge-based economy in Central Ken-tucky. We support policies that facilitate the development andretention of high tech manufacturing and biotechnology investmentsin our region and specifically encourage additional research and de-velopment and technology transfer activity in Central Kentucky. Com-merce Lexington will be an advocate for public/private partnershipsthat move ideas to theory, theory to applied research, and appliedresearch to developed commercial application. To help provide ad-ditional financial support enabling such business activity to occur,Commerce Lexington supports the development of seed capitalfunds that focus on Central Kentucky investments and the promotionof innovative central Kentucky companies to existing venture capitalfirms. Commerce Lexington encourages the federal government tocontinue the Small Business Innovation Research (SBIR)/ SmallBusiness Technology Transfer (STTR) and for Kentucky to continuefunding the state’s match program for these start-up companies.

Enhancing Regional TransportationInfrastructureCommerce Lexington supports substantial and sustained invest-ment in Kentucky’s transportation infrastructure – includinghighways, bridges, waterways, public transit, railways, and avia-tion. Having a dependable transportation network is critical toCentral Kentucky’s economic vitality. Thriving communitiesmust be able to move workers, provide services and transportproducts to market quickly and safely.

Commerce Lexington fully supports a regional transportation ap-proach, including supporting the Ohio River Bridge projects inNorthern Kentucky, Louisville and Western Kentucky (I-69), theU.S. 27 to I-75 Connector in Jessamine County and the NewtownPike Extension in Lexington.

CondemnationCommerce Lexington is opposed to government acquisition ofprivately owned businesses through condemnation for the pur-pose of operating the business.

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ECONOMIC DEVELOPMENTTelecommunications InfrastructureMaking investments in critical infrastructure such as roads,bridges, water and rail will continue to be important to ourstate’s economic growth. However, future economic develop-ment and job creation will also depend on developing a robusttelecommunications infrastructure. Our competitor states haveshown that modernizing telecommunications law better enablesproviders to efficiently allocate available resources. CommerceLexington’s economic development team frequently hears fromhigh tech companies operating in Central Kentucky about theneed for increased access to affordable, high speed broadbandtechnologies. Modernizing Kentucky’s telecommunication lawswill help meet the growing market demands for advanced broad-band technologies for businesses both large and small.

Commerce Lexington supports modernizing telecommunicationlaws to spur critical investments in new broadband technologies,enhance economic development, attract jobs, and improve com-munication services for residents and business – while keepingin the place protections for reliable voice services to all residents.

Transportation FundingMaintaining adequate funding for transportation infrastructure re-mains an issue of concern at both the state and federal levels of gov-ernment. Commerce Lexington urges lawmakers to find long-termsolutions to ensure sufficient, sustainable and reliable funding for allmodes of transportation for projects critical to economic development.

Kentucky’s Distilling IndustryKentucky’s legendary distilling industry has a significant impact onthe state’s economy, producing 95% of the world’s bourbon and con-tributing $3 billion in gross state product while generating $166 mil-lion a year in tax revenue. The Chamber strongly supports initiativesto protect and grow the iconic industry. For Kentucky to maintain itsdominance in the distilling industry and attract new distilleries, theGeneral Assembly must update the tourism and hospitality statueswritten before the Kentucky Bourbon Trail® was created to take ad-vantage of the booming Bourbon tourism industry.

Free TradeInternational trade in goods and services accounts for nearly a thirdof the country’s GDP. Kentucky has established itself as a major ex-porter in a broad range of industries - from manufacturing to agri-culture, as well as an attractive location for foreign investments.More than 3,200 Kentucky companies now sell products overseas.Over 76 percent of these businesses are small- and medium-sizedenterprises accounting for nearly $15 billion in annual export sales.These exports directly support 90,000 jobs in Kentucky, with tens ofthousands more indirectly supported by exports. Commerce Lex-ington urges elected officials to support free trade agreements thatopen new markets and create new opportunities for businesses andworkers in our region.

Lexington Downtown DevelopmentCommerce Lexington supports the mission of the LexingtonDowntown Development Authority to enhance the relationshipbetween the downtown area and surrounding neighborhoods andto attract more residents and business downtown, resulting inmore citizens living and working in downtown. Commerce Lex-ington fully supports programs designed to increase the accessand amount of public art throughout the entire community.

Central Kentucky’s Equine IndustryThousands of acres of horse farms, world class venues such asKeeneland and the Kentucky Horse Park, and many horse relatedorganizations’ national headquarters, including the UnitedStates Equestrian Federation, earn Kentucky the title of HorseCapital of the World. Because of the substantial economic impactthe equine industry has on our region as well as the state, Com-merce Lexington fully supports programs and initiatives to pro-tect and enhance the future growth of the equine industry. Theseprograms include alternative gaming at racetracks, innovativetax approaches, purse increases, increased funding for breederincentive programs, appropriate funding to maintain the qualityof the Kentucky Horse Park, and other assistance to allow theequine industry to remain competitive. Over a decade ago, Com-merce Lexington became the first Chamber to support alterna-tive gaming at Kentucky’s racetracks to help protect our horseindustry – this is a priority we are proud to continue to support.

Kentucky’s sales tax on equine products puts our region and theCommonwealth at a disadvantage with competitor states. Com-merce Lexington supports efforts to eliminate this competitivedisadvantage. Commerce Lexington also supports the equineindustry’s efforts to address the health, welfare and safety of thethoroughbred racing industry as well as other equestrian sports.

Tourism/Agri-Tourism DevelopmentThe tourism industry is an important component of an overalleconomic development strategy. Commerce Lexington supportsinitiatives and incentives designed to enhance the state’stourism and agri-tourism industry’s positive impact through thepromotion of events and the promotion of Lexington as atourism and agri-tourism destination. Commerce Lexington alsosupports efforts to attract the media and film industry to theBluegrass, while working to ensure that efforts that might un-dermine tourism’s economic impact are minimized. The oldFayette County Court House is a unique and iconic historicalstructure. Commerce Lexington encourages the efforts to re-store and preserve the old Fayette County Court House.

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Page 10: 2015 Commerce Lexington Inc. Policy Statements

10 2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

ENERGY & ENVIRONMENTProtect Kentucky's EconomyCommerce Lexington urges local, state and federal legislators tosupport efforts to maintain the production of affordable, reliableenergy for business and residents. Kentucky’s abundant supplyof coal has provided the state with some of the lowest electricityrates in the nation – a definite competitive advantage in the cre-ation and retention of jobs in all sectors.

However, federal regulations imposed by the U.S. EPA will dis-proportionately affect Kentucky’s economy. Commerce Lexingtonurges all public officials – both appointed and elected – to col-lectively oppose any legislation or regulations that would serveto increase the state’s electricity rates at an accelerated pace andplace Kentucky’s businesses at an economic disadvantage in theglobal marketplace. If fully implemented, these regulations onemissions, electricity generating facilities that use coal, and newregulations on Kentucky’s mining industry could increase Ken-tucky's electricity rates by 40 percent within the next five yearsand serve to destabilize Kentucky’s economic base.

Support the Coal IndustryCommerce Lexington supports protecting the viability of Ken-tucky’s coal industry – including preserving the direct and indi-rect jobs that the industry provides statewide. Since 2012,Eastern Kentucky has lost more than 7,000 direct coal miningjobs. For every one direct coal mining job lost, three other indi-rect jobs are also lost, which brings the total of job losses tomore than 21,000. Withcoal mining selected forenhanced review or in-creased scrutiny, coalminers have foundthemselves working inan unfair playing fieldcompared to the rest ofthe country.

Commerce Lexington supports legislative efforts to process anysurface mining permits held up by the U.S. EPA. These coal min-ing permits represent the potential to produce more than125,000,000 tons of coal over the life of the operations, and thegeneration of more than 3,500 jobs directly or indirectly. Com-merce Lexington supports ensuring a level playing field for alllow cost fuel sources to secure low electricity rates in Kentucky.

Natural Gas as Reliable Energy SourceTo stay competitive, Kentucky must also continue to develop allreliable and affordable energy resources including natural gas.Kentucky’s oil and natural gas industry total value of productionis over $1 billion and employs over 9,000 Kentuckians. This in-dustry will continue to play an increasingly important role inmeeting the states’ energy needs of the future. Therefore, Com-merce Lexington supports encouraging the investment in the in-frastructure, production and use of oil and natural gas throughthe maintenance of a balanced state regulatory framework. Com-merce Kentucky believes that through cooperation and coordi-nation between the industry, state government and associatedstakeholders, broad consensus can be reached on the issues andchallenges facing the oil and gas industry, and once that consen-sus is reached, deserves broad support.

Commerce Lexingtonsupports financial and in-frastructure incentives tohelp stimulate adoptionof natural gas transporta-tion fuels. Central Ken-tucky could benefit fromincreased use of com-pressed natural gas(CNG) or liquefied natural gas (LNG) motor transportation fuelssuch as those used for in-state and inter-state trucking fleets, wastehaulers, delivery and repair vehicles, and personal cars and trucks.With the growing availability and low cost of natural gas, traditionaldiesel engines cost approximately 30-40 percent more per gallon tooperate than do natural gas engines. Similar savings can be realizedwhen switching from gasoline to natural gas. The advantages Ken-tucky would gain are a lower carbon footprint from natural gas com-pared to gasoline and diesel fuels, as well as millions of dollars savedin fuel cost in the years ahead. Additionally, increased demand fornatural gas vehicles and readily available natural gas service infra-structure will lead to more reliance on natural gas produced withinthe U.S., one of our nation's cleanest, most reliable, and most avail-able sources of energy.

Commerce Lexington also supports legislative efforts to:rProvide incentives for the research and implementation of clean-coalinvestments and other alternative energy processes. r Provide tax credits or equivalents for carbon capture and disposalby companies.rSupport increased funding for research, development and utilizationof new technologies to reduce emissions, particularly carbon dioxide(CO2).r Support research grants & other incentives for our state’s postsec-ondary institutions and private sector companies to develop technologyand infrastructure needed for alternative fuels and energy such as land-fill gas, biomass, wind, hydro and solar, or compressed natural gas.r Support the Kentucky-Argonne Battery Manufacturing Research &Development Center, jointly affiliated with the Commonwealth of Ken-tucky, the Argonne National Laboratory in Chicago, the University ofLouisville and the University of Kentucky (housed at UK), and its effortsto develop innovative energy storage devices into a practical future use.rAssist Kentucky’s utilities and mitigate price volatility for our familiesand businesses.rRemove the state moratorium on the consideration of nuclear powerplants to encourage market-based energy production.

Promote a Sensible Regulatory ApproachCommerce Lexington supports the efforts of the state’s Energyand Environment Cabinet to protect the citizens of the Common-wealth through a fair and consistent non-discriminatory regula-tory process that ensures both the health and welfare of thepublic as well as the economic viability of the state’s private sec-tor workforce. Commerce Lexington continues to oppose U.S.EPA’s attempts to overstep its regulatory oversight role and im-pose an extraordinary number of federal mandates that will un-doubtedly have a significant negative impact on the businesscommunity. U.S. EPA should not be permitted to circumvent itsown federal rulemaking process in an attempt to establish newoverly stringent regulatory standards that will adversely impactevery citizen, business, agency and economy in the state.

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2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

ENERGY & ENVIRONMENTSupport Energy Efficiency MeasuresAcross the nation, companies– including those in Central Kentucky –are taking positive measures to make their operations more energyefficient which has led to a reduction in carbon emissions. CommerceLexington supports voluntary energy management programs, pollu-tion controls and pollution prevention programs because they aregood for the environment and financially good for business. Com-merce Lexington supports incentives for companies that go aboveand beyond their regulatory requirements, and recognizing compa-nies who have already implemented positive best management prac-tices to reduce their energy consumption.

Central Kentucky Water SupplyCommerce Lexington supports an efficient, equitable and sufficientwater supply for the entire region. Commerce Lexington supports in-vestments in maintenance and upgrades on the lock and dam systemsof the Kentucky River to enhance and conserve our region’s primarywater supply. Commerce Lexington also supports interconnectivityagreements among municipalities throughout Central Kentucky.

Land Use PlanningCommerce Lexington opposes statewide, prescriptive attempts toshape local land use and development contrary to community estab-lished needs and priorities. Commerce Lexington believes it is im-perative for regional communities to voluntarily collaborate andcoordinate regional planning efforts with regard to natural resources,housing, utilities, economic development and transportation.

Commerce Lexington encourages communities to develop compre-hensive plans that balance the need for housing and economic de-velopment while protecting agriculture industries and naturalresources. Affordability of housing is not just an issue for low incomecentral Kentuckians; availability and affordability of housing is an issueof concern for expanding and relocating companies. As we plan forcontinued growth and development, we must evaluate the impacteach decision has on our ability to develop and maintain housing op-tions within the reach of all our citizens.

Commerce Lexington strongly supports the use of Brownfield Rede-velopment in communities through the use of the Voluntary Environ-mental Remediation Program (VERP) and Kentucky’s BonafidePurchaser Program which reduces liability for future property owners.These programs should be expanded to allow tax incentives, low in-terest loans or grants or other federal and state matching funds forthose committed to redeveloping the state’s Brownfield sites.

Solid WasteThe management of solid waste is a local responsibility and existinglaw allows local governments the necessary flexibility to develop a solidwaste disposal strategy unique to the needs and expectations of theirindividual communities. Commerce Lexington urges enhanced en-forcement and education to address illegal dumping and littering. Wesupport programs such as Eastern Kentucky PRIDE and BluegrassPRIDE (Bluegrass Greensource) that encourage and assist citizens,local governments and schools to clean up illegal trash dumps andother solid waste problems as well as promoting environmental aware-ness and education. Education remains a critical component in chang-ing the habits and attitudes of individuals across Kentucky. We alsosupport programs that educate Kentuckians on the benefits of recy-cling, programs that make recycling more convenient, and strategies

that develop and enhance market demand for recycled materials.Commerce Lexington believes that this type of multi-faceted strategywill have a more significant, long-term impact in addressing the needfor Kentucky to embrace recycling.

Kentucky’s solid waste statutes are contradictory and some are cur-rently out of step with some of EPA’s recent regulations. CommerceLexington supports a review of Kentucky’s solid waste statutes and areasonable, thoughtful update to provide clear direction to the regu-lated community.

Unfunded Mandates/Affordable SolutionsCommerce Lexington opposes unfunded mandates trickling downfrom federal and state agencies that impact local governments with-out regard to the affordability of the mandates, and the ability of alocal community, its businesses and taxpayers’ to absorb the costs.Commerce Lexington will advocate for regulatory reform efforts at alllevels of government to address the problems associated with un-funded regulatory mandates. These efforts should include, but notbe limited to the following:

rAgencies should be asked to demonstrate the economic impact tobusinesses and local communities of implementing new regulations. r Consent Decrees or other legal or administrative requirementsshould take into account and publically demonstrate the ability of localgovernments, quasi-governmental agencies, schools and businessesability to afford the alternatives demanded by the state and/or EPA. rThese financial analyses should be conducted by people with expe-rience in developing financial impacts before the solution is finalized. r If it is determined that the entity cannot reasonably afford the solu-tion required by the state or federal agency, then the state should berequired to assist the entity in developing an alternate financial plan.

Commerce Lexington opposes efforts at a local and state level to bemore stringent than federal regulatory guidelines. Commerce Lexing-ton supports the use of a waiver of fines for Notice of Violation (NOV)first time offenders and placing reasonable time limits on punitive ac-tion following the issuance of NOVs by state agencies. Commerce Lex-ington supports a process where the General Assembly must reviewand approve any changes to new General Permits being proposed bystate agencies. Our organization also supports legislative review forTotal Maximum Daily Loads (TMDLs) and other water quality relatedrequirements on our streams developed by the state or U.S. EPA.

Environmental StreamliningImplementation of infrastructure projects is critical for commu-nity development. Often times these public projects are subjectto requirements for review of environmental impacts in accor-dance with the federal National Environmental Policy Act. Al-though such impacts can and should be considered, the processfor evaluation of, and challenges to, infrastructure projects onthat basis must be streamlined in order to assure that importantpublic infrastructure projects are not victims of procedural ma-neuvering and unnecessary delay.

Commerce Lexington supports legislative efforts that:r Require concurrent review of documents.r Require full disclosure of funding from those either for oragainst a particular issue.rRecognize the need to restore balance to the process of publicneed and environmental stewardship.

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Enabling Public/Private PartnershipsCommerce Lexington supports the use of public/private partner-ships (P3) by local and state government agencies for the deliv-ery of services and/or the construction and/or management ofa variety of infrastructure related projects. To ensure accounta-bility in contracting with private entities, it is essential that propersafeguards be in place to ensure transparency and that qualityservices are delivered at a lower cost to taxpayers.

Commerce Lexington encourages lawmakers to pass compre-hensive P3 enabling legislation in the 2015 session that encour-ages the creation of public-private partnerships for a wide rangeof infrastructure projects at all levels of state and local govern-ments, and Department of Defense assets such as BluegrassStation and the Bluegrass Army Depot.

Public Employee PensionsCommerce Lexington applauds the General Assembly for adopt-ing significant reforms that begin to address Kentucky’s publicemployee pension crisis, including the authorization of a com-promise proposal reached by Lexington city officials, police andfire representatives. Commerce Lexington will continue to mon-itor reform implementation with emphasis on assuring no ben-efit increases without full funding and the inclusion of actuarialrequired contributions in the state budget.

Commerce Lexington also urges the General Assembly to con-tinue progress toward the ultimate goal of establishing equitableretirement and health insurance benefits for new hires that moreclosely resemble those available in the private sector.

Right to WorkCommerce Lexington believes every worker is both capable of,and entitled to, making his or her own determination regardingunion membership. The decision not to affiliate with a laborunion should be no less deserving of protection than the free-dom to affiliate with a union. Commerce Lexington urges theKentucky General Assembly to support Right to Work legislationto prohibit requiring any worker to join a union as a condition ofemployment.

Prevailing WageCommerce Lexington supports legislation to repeal mandatoryprevailing wage in the Commonwealth. The result would be re-duced costs and increased capacity for public works, benefitingemployers, employees and taxpayers alike. At a minimum, pre-vailing wage requirements should be eliminated for the construc-tion of schools and other educational facilities.

Oppose “Card Check”Recently proposed regulations by the National Labor RelationsBoard (NLRB) and the Department of Labor (DOL) have soughtto bypass Congress in order to achieve the goals of the mis-named “Employee Free Choice Act” by promoting “microunions” and denying employees an informed choice about unionrepresentation. More specifically, the proposed new rules wouldlimit the ability of employers to exercise their free speech rightsand give them less time to educate employees about unionizingefforts. Commerce Lexington continues to encourage our con-gressional delegation to support riders to the Labor HHS Appro-priations Bill:

r To stop the NLRB from moving forward with a final rule onAmbush elections. r To stop the NLRB from changing the standard for bargainingunit composition by permitting "micro-unions," as it has pro-posed in its invitation for briefs in the Specialty Healthcare case. r To stop the DOL's Office of Labor Management Standardsfrom moving forward with its proposal to change the advice ex-emption in the "persuader" rules - otherwise known as DOL'sGag Rule.

Public Employee Collective BargainingCommerce Lexington strongly opposes public employee collec-tive bargaining. Public employees are afforded significant ben-efits, job protections, and established rank and pay scales – andthe adjustment or alteration of them are decisions that can cur-rently be made as a matter of public policy.

Wage MandatesCommerce Lexington supports government efforts to find bal-anced, long-term solutions to the problems confronted by ourcommunity. We do not support shortsighted reactions, such asprivate sector wage mandates that exceed state or federal guide-lines.

Commerce Lexington believes that people are the driving force of business. Productivity and creativity dictatethe success of individual businesses and therefore our economy as a whole. Public policy options should beabout creating and sustaining an environment that encourages maximum flexibility to reward excellence andencourage innovation in human resource management. Policies that tend to foster one-size-fits-all approaches,or that intentionally or unintentionally create “us vs. them” environments in the workplace are not conduciveto businesses’ goal of excellent employee relations and communications.

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2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

Safer Workplaces Commerce Lexington supports allowing employers to share fac-tual and documented information about past employees, with-out subjecting themselves to undue liability, when providingreferences to inquiring employers during the hiring process. Wealso support legislation to allow employers to help fight illegaldrug use in the workplace. Commerce Lexington opposes anyexpansion in the current concealed/carry laws that would allowemployees to bring deadly weapons into the workplace.

Unemployment Insurance Trust FundCommerce Lexington believes that the integrity of the unemploy-ment insurance trust fund should be maintained and opposesefforts to utilize the fund in ways that are contrary to its originalpurpose of providing unemployment insurance to temporarilydisplaced workers.

Commerce Lexington was among several employer groups thatsupported the reforms to the state’s unemployment insurancesystem during the 2010 special session, and the effort to addressrepaying the interest on the loans to the federal government dur-ing the 2012 session of the Kentucky General Assembly. Com-merce Lexington will continue to monitor the implementation ofthe reforms to the state’s UI System.

Workers’ CompensationCommerce Lexington supports a workers’ compensation statutethat offers clear and objective definitions of injury and disability,uses objective medical findings of impairment for awards, con-tinues the reduction of litigation, and encourages retraining andeducation, to return to work at a different position at a compa-rable rate, while abating growing costs for central Kentucky em-ployers. Commerce Lexington supports any legislative orregulatory measure that will help control Kentucky’s rising med-ical and prescription drug costs in workers’ compensation caseswithout disrupting needed services to injured workers.

ImmigrationCommerce Lexington supports a comprehensive immigrationreform package which includes modernizations to the guestworker program which addresses the needs of all Kentucky'swork places.

Revision of Statute of Limitations LawCommerce Lexington recognizes Kentucky's five-year time pe-riod on employee wrongful termination or discrimination law-suits places an undue requirement on employers. CommerceLexington supports changes to Kentucky’s statute that wouldmake all employment discharge and discrimination type actionsmore uniform with federal guidelines while still protecting em-ployees and employers.

Government EfficiencyCommerce Lexington supports the need for government mod-ernization and increased efficiency. Commerce Lexington willcontinue to urge the General Assembly to focus on spending re-forms across government including the areas of public employeehealth benefits, the public employee pension system, correctionsand Medicaid.

Malt Beverage Industry RegulationCommerce Lexington supports the maintenance of a strong andindependent system for the sale, distribution and regulation ofmalt beverages that has been in place since prohibition. Such asystem promotes the locally-owned and operated businesses,the preservation of jobs, strong community reinvestment, andthe ability of all large and small brewers to deliver their productsto the market and ultimately the consumer.

COMPETITIVENESS

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2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

Comprehensive Tax ReformAs the Kentucky General Assembly contemplates comprehensivetax reform, Commerce Lexington strongly urges lawmakers toevaluate existing tax policies and proposed changes by using thefollowing criteria:

r Effective - Tax policies should be reviewed to determine theirintended or unintended consequences. Tax laws proving contraryto their intention or more burdensome than intended should berepealed or scaled back.r Competitive - Tax policy should promote a positive climate thatencourages business investment and job growth. r Revenue Sensitive - Tax policy should provide sufficient rev-enues overall to fund critical priorities.r Predictable - Sources of tax revenue should be relatively pre-dictable and stable over time.r Equitable - Tax policy should be fair but must not discourageeconomic activity, employment, or wage growth.r Efficient - Any tax policy must be designed to facilitate cost ef-ficient compliance and administration.

Alcohol TaxesAs part of comprehensive tax reform, Commerce Lexington be-lieves Kentucky must examine the manner in which the statetaxes distilled spirits, beer and wine. Kentucky has one of theTop 5 tax rates on alcohol sales in the US, higher than all con-tiguous states except Tennessee. The Kentucky General Assem-bly should consider rolling back the wholesale tax on alcoholsales in order to make the Commonwealth’s distilled spirit andalcoholic beverage industry more competitive with surroundingstates.

Fee Increases through RegulationsState and local governments must look at each agency fee in-crease proposal carefully and examine the fee increase based onneed and the rate of inflation since the fee was last raised. Nofee should be increased without the clear approval from the Gen-eral Assembly, Executive Branch or Urban County Council to theagency for what the fee increase was expressly intended.

Revise the Limited Liability Entity Tax (LLET)Commerce Lexington supported the 2006 Tax Modernization bythe General Assembly. However, the creation of the Limited Lia-bility Entity Tax (LLET) and the lack of ability to offset pass-through credits against tax on income from other businesses andother years have become problematic. Commerce Lexington sup-ports efforts to adjust the tax code to encourage entrepreneurialinvestment in the Commonwealth.

Commerce Lexington recognizes that in an increasingly competitive global marketplace, promoting long-termeconomic development and job growth must be a top priority when revenue options are being considered. Taxpolicy at all levels of government must be guided by a well-researched, balanced approach that provides for nec-essary public investments and expenditures, while avoiding policies that could serve as disincentives to economicgrowth and private sector employment and investment.

State and local tax code changes should recognize and encourage long-term future growth, and provide sufficientrevenue options so that local governments are able to tailor their tax policy to local conditions. Commerce Lex-ington encourages lawmakers to monitor the impact of Kentucky’s tax code on the private sector and to take ac-tion when necessary to ensure Kentucky remains competitive with its surrounding states.

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FOCUS ON:

Support Local Option Sales Tax

Commerce Lexington supports anamendment to the Kentucky Constitu-tion, and enabling legislation, thatwould permit cities and counties, in-cluding urban county governments, toenact a local option sales tax, not toexceed one percent with a sunset provi-sion. The tax would be for funding ded-icated to specific local projects, asproposed by the local government andapproved by voter referendum.

Tax Policy

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LOCAL GOVERNMENTLexington-FayetteUrban County Council:Council Office, 5th Floor 200 E. Main Street Lexington, KY 40507 Phone: (859) 258-3200 Fax: (859) 258-3838 Web: www.lexingtonky.gov

AT-LARGE COUNCIL MEMBERS:Vice Mayor Steve KayKevin StinnettRichard Moloney

1ST DISTRICTChris Ford

2ND DISTRICTShevawn Akers

3RD DISTRICTJake Gibbs

4TH DISTRICTSusan Lamb

5TH DISTRICTBill Farmer, Jr.

6TH DISTRICTAngela Evans

7TH DISTRICTJennifer Scutchfield

8TH DISTRICTFred Brown

9TH DISTRICTJennifer Mossotti

10TH DISTRICTAmanda Mays Bledsoe

11TH DISTRICTPeggy Henson

12TH DISTRICTEd Lane

Lexington Mayor Jim GrayLexington-Fayette Urban County

Government Center 200 East Main Street Lexington, KY 40507

Phone: (859) 258-3100Fax: (859) 258-3194

E-Mail: [email protected]

Kentucky GovernorSteve Beshear

700 Capitol Avenue, Suite 100Frankfort, Kentucky 40601

Phone: (502) 564-2611Fax: (502) 564-2517

Web: www.kentucky.gov

2015 COMMERCE LEXINGTON INC. PUBLIC POLICY STATEMENTS

FEDERAL GOVERNMENT

STATE GOVERNMENT

Kentucky Senate:

Sen. Ralph Alvarado (R-28)3250 McClure RoadWinchester, KY 40391

Sen. Tom Buford (R-22) 409 W. Maple SreetNicholasville, KY 40356

Sen. Jared Carpenter (R-34)P.O. Box 100Berea, KY 40403

Sen. Alice Forgy Kerr (R-12)3274 Gondola DriveLexington, KY 40513

Sen. Reginald Thomas (D-13)702 Capitol Ave., Annex Rm. 229Frankfort KY 40601

House of Representatives:Rep. Robert Benvenuti III (R-88)2384 Abbeywood RoadLexington, KY 40515

Rep. Jesse Crenshaw (D-77) 121 Constitution StreetLexington, KY 40507

Rep. Kelly Flood (D-75)121 Arcadia Park Lexington, KY 40503

Rep. James Kay (D-56) P.O. Box 1536Versailles, KY 40383

Rep. Stan Lee (R-45)P.O. Box 2090Lexington, KY 40588

Rep. Russ Meyer (D-39) 106 Lone Oak DriveNicholasville, KY 40356

Rep. Sannie Overly (D-72)340 Main StreetParis, KY 40361

Rep. Ruth Ann Palumbo (D-76) 10 Deepwood DriveLexington, KY 40505

Rep. Ryan Quarles (D-62) P.O. Box 1001Georgetown, KY 40324

Rep. Susan Westrom (D-79) P. O. Box 22778 Lexington, KY 40522

U.S. CONGRESSMAN ANDY BARR (6th District)2709 Old Rosebud Road, Lexington, KY 40509 Phone: (859) 219-1366 1432 Longworth HOB, Washington, D.C. 20515 Phone: (202) 225-4706 Web: http://barr.house.gov

U.S. SENATOR RAND PAUL771 Corporate Drive, Suite 105Lexington, KY 40503 Phone: (859) 219-2239 124 Russell Senate Office Building, Washington, DC 20510Phone: (202) 224-4343 Web: http://www.paul.senate.gov/index.cfm

U.S. SENATOR MITCH McCONNELL771 Corporate Dr., Suite 108, Lexington, KY 40503 Phone: (859) 224-8286 317 Russell Senate Office Bldg., Wash., DC 20510 Phone: (202) 224-2541Web: http://www.mcconnell.senate.gov

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YOUR GOVERNMENT

Contact Kentucky State Legislators at (502) 564-8100

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