NOTE: The effective date of all legislation enacted by the2012 Regular Session of the General Assembly is July 12,

2012, except for measures containing emergency or delayedeffective date provisions. (OAG 12-005)

If a bill reported in this update becomes effectiveon a date other than July 12, 2012, it is noted

in the summary of the bill.

The complete text of all bills is available for review on theLegislative Research Commission website at www.lrc.ky.gov.

2012 KLC LEGISLATIVE UPDATEControlled Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

HB 1 Prescription Drug Abuse (2012 Special Session)HB 481 Synthetic DrugsSB 3 Drugs Containing Pseudoephedrine

Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

HB 56 Economic Development IncentivesHB 400 Jobs Retention IncentivesSB 40 Alcoholic Beverages

Elections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

HB 112 Minimum Age Requirements for Municipal OfficeSB 123 Referendum Petition Requirements

Environmental Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

HB 465 Brownfield Redevelopment NonliabilityHB 518 Waste Tire ProgramHJR 11 Clean Water Act Criteria

Foreclosed Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

HB 62 Deed in Lieu of ForeclosureHB 396 Expedited Sale of Foreclosed Property

Law Enforcement and Public Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

HB 369 Law Enforcement Foundation Program HB 390 Secondary Metals RecyclersSB 32 Blue Alert SystemSB 55 Mutual Aid AgreementsSB 58 Misdemeanor Assault

Local Government and Public Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

HB 121 POW/MIA FlagsHB 123 Land UseHB 189 Merged GovernmentsHB 496 Open Records

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Ordinance Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

HB 122 Residential Care FacilitiesHB 189 LitteringHB 500 Regulation of Firearms

Public Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

HB 265 Suspension of Retiree Allowance IncreaseHB 300 Kentucky Retirement SystemsHB 502 Pension Plans for Second Class CitiesHCR 162 Kentucky Public Pensions Task Force

Reclassification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

HB 287 Reclassification of Hurstbourne Acres

Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

HB 277 Occupational License Tax Return FormsHB 499 Occupational License Fee Credits

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

HB 148 Gas Pipeline SafetyHB 215 Electrical Inspectors and LicensureSB 152 Underground Facility Damage Protection

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2012 KLC LEGISLATIVE UPDATE

HOUSE BILLS

HB 1 Prescription Drug Abuse (2012 Special Session) . . . . . . . . . . . . . . . . . . . . . . 1

HB 56 Economic Development Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

HB 62 Deed in Lieu of Foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

HB 112 Minimum Age Requirements for Municipal Office . . . . . . . . . . . . . . . . . . . . 9

HB 121 POW/MIA Flags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

HB 122 Residential Care Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

HB 123 Land Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

HB 148 Gas Pipeline Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

HB 189 Littering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

HB 189 Merged Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

HB 215 Electrical Inspectors and Licensure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

HB 265 Suspension of Retiree Allowance Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

HB 277 Occupational License Tax Return Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

HB 287 Reclassification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

HB 300 Kentucky Retirement Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

HB 369 Law Enforcement Foundation Program Fund . . . . . . . . . . . . . . . . . . . . . . . 13

HB 390 Secondary Metals Recyclers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

HB 396 Expedited Sale of Foreclosed Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

HB 400 Jobs Retention Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

HB 465 Brownfield Redevelopment Nonliability . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

HB 481 Synthetic Drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

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HB 496 Open Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

HB 499 Occupational License Fee Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

HB 500 Regulation of Firearms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

HB 502 Pension Plans for Second Class Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

HB 518 Waste Tire Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

HCR 162 Kentucky Public Pensions Task Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

HJR 11 Clean Water Act Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

SENATE BILLS

SB 3 Drugs Containing Pseudoephedrine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

SB 32 Blue Alert System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

SB 40 Alcoholic Beverages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

SB 55 Mutual Aid Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

SB 58 Misdemeanor Assault . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

SB 123 Referendum Petition Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

SB 152 Underground Facility Damage Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

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HB 1PRESCRIPTION DRUG ABUSE (2012 SPECIAL SESSION)Sponsor: Representative Greg Stumbo (D-Prestonsburg)

HB 1 was enacted to address improper or illegal prescribing or dispensing ofcontrolled substances as part of an effort to decrease abuse of prescription drugs.

Controlled substances are scheduled I-V in KRS 218A based on their potential for abuse asdetermined by the Cabinet for Health and Family Services.

Pain Management Facilities

HB 1 requires pain management facilities where the majority of patients at the facility are providedtreatment for pain to be owned by a physician licensed to practice medicine in Kentucky, with theexception of hospitals, out-patient surgery centers and hospice programs. Existing pain managementfacilities not owned by a physician may continue to operate so long as there is no administrativesanction or criminal conviction relating to controlled substances imposed on the facility or any personemployed by the facility for an act or omission done within the scope of the facility’s licensure or theperson’s employment.

Regardless of the form of facility ownership, a licensed physician with a specialty in pain managementmust be physically present practicing medicine in the pain management facility for at least 50 percentof the time patients are present in the facility.

The facility must accept private health insurance as one of the facility’s allowable forms of paymentfor services rendered.

State Licensing Boards

By September 1, 2012, each state licensing board is required by HB 1 to adopt administrativeregulations establishing the following for licensees authorized to prescribe or dispense controlledsubstances:

w Mandatory prescribing and dispensing standards related to controlled substances;

w A prohibition on dispensing greater than a 48-hour supply of any Schedule II controlledsubstance or a Schedule III controlled substance containing hydrocodone;

w A procedure for temporary restriction of a license where a substantial likelihood exists thecontinued unrestricted practice by a licensee would constitute a danger to the welfare of apatient or the general public;

w A procedure for the expedited review of complaints filed against licensees pertaining toimproper prescribing or dispensing of a controlled substance, to include commencement ofreview within seven days of filing a complaint and a charging decision within 120 days of filing,unless an extension is requested by a law enforcement agency due to an ongoing criminalinvestigation;

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w Standards requiring termination of licensees convicted in any state for a felony offense relatingto the prescribing or dispensing of a controlled substance and restriction of licensees convictedin any state of a misdemeanor offense relating to the prescribing or dispensing of a controlledsubstance; and

w A procedure for submission of disciplinary information to national data banks.

A complaint to a state licensing board against a licensee relating to controlled substances is notrequired to be sworn to or notarized and may be made anonymously if the board, by administrativeregulation, authorizes the filing of anonymous complaints. If a licensing board does not possessexpertise in pain management and drug addiction, it must obtain the services of specialists to ascertainif a licensee under investigation is engaging in improper practices.

Beginning July 1, 2012, continuing education requirements for licensed practitioners must includecourses relating to pain management, addiction disorders or use of the Kentucky All SchedulePrescription Electronic Reporting (KASPER) system.

Practice Requirements

HB 1 requires all physicians authorized to prescribe or dispense controlled substances to register withthe Cabinet for Health and Family Services for use of the state KASPER system.

Every practitioner who directly dispenses a Schedule II controlled substance or a Schedule IIIcontrolled substance containing hydrocodone must report the transaction to KASPER as prescribedby administrative regulation until July 1, 2013, and thereafter within one day of dispensing thecontrolled substance. The report must include a patient identifier, the drug dispensed, date andquantity dispensed, and the identity of the prescriber and dispenser.

The Cabinet for Health and Family Services must notify the licensing board of a prescriber ordispenser who fails to comply with KASPER reporting requirements. The licensing board must treatthe notification by the cabinet as a complaint against the licensee.

Trend Reports

The Cabinet for Health and Family Services is required by HB 1 to proactively use the data compiledby the KASPER system to identify trends in controlled substance usage and to notify the appropriatelicensing board if a report or analysis indicates further investigation into improper prescribing ordispensing may be necessary. On a quarterly basis, the cabinet must publish public trend reports oncontrolled substance usage that do not identify an individual prescriber, dispenser or patient.

Coroners and Medical Examiners

HB 1 requires coroners and medical examiners to obtain a blood sample to test for controlledsubstances when a cause of death is not clearly established. If it is determined a drug overdose is thecause of death, the coroner or medical examiner must provide notice of the death to the state registrarof vital statistics, the Department of Kentucky State Police, and the licensing board for the individualwho prescribed or dispensed the medication, if known, along with information relating to the drugthat resulted in the overdose. The state registrar of vital statistics must report any death that results

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from the use of drugs or a drug overdose to the Office of the State Medical Examiner.

The Office of Drug Control Policy, in cooperation with the Office of the State Medical Examiner,must prepare and publish on its website an annual report to the secretary of the Justice Cabinet thatincludes the number of drug-related deaths; the age, race and gender of the decedent; the county inwhich the death occurred; the name of the drug involved; and the method by which the drug wasobtained, if known.

Prosecution of Offenses

HB 1 requires a county or commonwealth attorney to notify the Attorney General and theappropriate state licensing board within three business days of an indictment charging a licensedperson with a felony offense relating to the manufacture of, trafficking in, prescribing, dispensing orpossession of a controlled substance. A robbery or theft of a controlled substance from a pharmacymust be reported immediately by the pharmacy to local law enforcement and within three businessdays to the Department of Kentucky State Police. A pharmacy that has mailed or shipped a controlledsubstance to a Kentucky location that does not arrive must report the nonreceipt within threebusiness days to the Department of Kentucky State Police, and, if applicable, to the United StatesPostal Inspection Service.

Any person who violates the provisions of HB 1 relating to pain management facilities is guilty of aClass A misdemeanor. Intentional failure by a dispenser to transmit required data to KASPER is aClass B misdemeanor for a first offense and a Class A misdemeanor for each subsequent offense.Intentional disclosure of transmitted data to an unauthorized person is a Class B misdemeanor for afirst offense and a Class A misdemeanor for each subsequent offense.

Reciprocal Agreements

HB 1 authorizes the Cabinet for Health and Family Services to enter into reciprocal agreements or acontract, either directly with another state or states or with an organization administering theexchange of interstate or intrastate data on behalf of the prescription monitoring program of one ormore states, to share prescription drug monitoring information if the other state’s prescription dataexchange program is compatible with Kentucky’s program. HB 1 additionally adopts the InterstatePrescription Monitoring Compact developed by the Council for State Governments to construct aninteroperable system of information sharing among states with existing controlled substancemonitoring programs. Under the compact, each state maintains control over its own data and whomay access the data. Member states are required to provide funding for establishing and administeringthe system by payment of annual dues. When established, the governing body of the interstatecompact will be composed of one voting representative for each member state, one nonvotingtechnical advisor from each member state and may include ex-officio members representing interestedstakeholders. The compact will activate when six or more states have adopted the compact. All lawfulactions of the interstate commission are binding upon the member states. Appointments to theinterstate board will be made by the Governor subject to confirmation by the Senate.

Implementation Oversight

The Legislative Research Commission is requested by the General Assembly to appoint threesenators and three representatives to an Implementation Oversight Committee to monitor

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implementation of HB 1 during the 2012 legislative interim.

Funding

HB 1 requires proceeds received by the Attorney General from the National Mortgage Settlement tobe transferred to the Cabinet for Health and Family Services in an amount not to exceed $4 millionover the 2012-2014 biennium to be expended only for upgrades to and operation of the KASPERsystem. If proceeds for the National Mortgage Settlement are less than $4 million, the necessarybalance will be paid from the General Fund Surplus Account or the Budget Reserve Trust FundAccount.

Effective Date

The effective date of HB 1 is July 20, 2012.

HB 481 SYNTHETIC DRUGSSponsor: Representative John Tilley (D-Hopkinsville)

HB 481 creates a new section of KRS 218A related to controlled substances tocreate the crimes of trafficking in and possession of synthetic drugs. Synthetic drugs

are defined by HB 481 as any synthetic cannabinoid or piperazines or any synthetic cathinones.Synthetic cannabinoid or piperazines produce pharmacological effects similar to marijuana whilecathinones produce pharmacological effects similar to methamphetamine.

A person is guilty of trafficking in synthetic drugs when he or she knowingly and unlawfully trafficsin synthetic drugs. Trafficking in synthetic drugs is a Class A misdemeanor for the first offense anda Class D felony for each subsequent offense. In lieu of the usual fine amounts for Class Amisdemeanors and Class D felonies, a court may impose a maximum fine of double the defendant’sgain from commission of the offense, in which case any fines collected will be divided between thelaw enforcement agency or agencies that seized the property and the Office of the AttorneyGeneral for the same purposes established for forfeited property under KRS 218A.420.

A person is guilty of possession of synthetic drugs when he or she knowingly and unlawfullypossesses synthetic drugs. Possession of synthetic drugs is a Class B misdemeanor except that themaximum term of incarceration is no greater than 30 days in lieu of the usual term for a Class Bmisdemeanor.

The Cabinet for Health and Family Services is authorized by KRS 218A.020 to add, delete orreschedule controlled substances. KRS 218A.020 is amended by HB 481 to permit the Office ofDrug Control Policy to request that the Cabinet for Health and Family Services schedule asubstance substantially similar to a synthetic cannabinoid or piperazines or a synthetic cathinones. Awritten decision whether to schedule or not schedule the substance and the basis for the decision

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must be provided by the cabinet to the Legislative Research Commission within 60 days of therequest.

Other statutes related to forfeiture of property used to facilitate commission of a drug offense,trafficking in the vicinity of a school, trafficking while in the possession of a firearm, liquor licenserevocation and payment of environmental clean-up costs related to a drug offense are amended byHB 481 to include trafficking in synthetic drugs within the penalty provisions.

HB 481 contains an emergency clause. The legislation took effect on April 11, 2012, when signedby the Governor.

SB 3 DRUGS CONTAINING PSEUDOEPHEDRINESponsor: Senator Robert Stivers (R-Manchester)

SB 3 amends KRS 218A.1446 to limit the amount of non-liquid ephedrine,pseudoephedrine or phenylpropanolamine that may be purchased without a

prescription to 7.2 grams in a 30-day period and 24 grams per year. The limits do not apply toephedrine, pseudoephedrine or phenylpropanolamine dispensed by prescription.

Persons convicted of any offense in KRS Chapter 218A relating to methamphetamine or in KRSChapter 250 or Chapter 514 relating to anhydrous ammonia prior to or after the effective date ofSB 3 are prohibited from possessing any compound containing ephedrine, pseudoephedrine orphenylpropanolamine until five years have elapsed from the later of the date the person wasconvicted or the date the person was discharged from incarceration or released from probation.

Sale of any compound containing non-liquid ephedrine, pseudoephedrine or phenylpropanolamineby a pharmacy must be recorded on an electronic record keeping log approved by the Office ofDrug Control Policy and provided at no cost to the pharmacy. Pharmacies are required by SB 3 toutilize the log prior to dispensing any compound containing non-liquid ephedrine,pseudoephedrine or phenylpropanolamine to determine whether dispensing is prohibited due toprior conviction for a methamphetamine or anhydrous ammonia-related offense or would exceedthe quantity limitations of KRS 218A.1446.

The Administrative Office of the Courts is required to report monthly to the Office of DrugControl Policy the conviction of any person for any offense relating to methamphetamine oranhydrous ammonia. The Department of Corrections and the Parole Board must likewise provideto the Office of Drug Control Policy data within their possession regarding persons incarcerated oron probation for a methamphetamine or anhydrous ammonia-related offense to permitimplementation of the electronic blocking system.

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The Office of Drug Control Policy is required by SB 3 to prepare and submit an annual statisticalreport to the Legislative Research Commission on sales by pharmacies of compounds containingephedrine, pseudoephedrine and phenylpropanolamine. The report must include the number ofindividual purchasers and total sales of compounds containing non-liquid ephedrine,pseudoephedrine and phenylpropanolamine during the reporting period in the state and in eachcounty in the state.

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HB 56 ECONOMIC DEVELOPMENT INCENTIVESSponsor: Representative Wilson Stone (D-Scottsville)

HB 56 amends KRS 154.32-090 relating to the Kentucky Business InvestmentProgram established pursuant to KRS 154.32-010-154.32-100. The program permits

companies approved for tax incentives by the Kentucky Finance Development Authority to impose awage assessment against each employee whose job is created as a result of the economic developmentproject with setoffs against local occupational license fees negotiated as part of the tax incentiveagreement. KRS 154.32-090 is amended to permit a local jurisdiction that does not impose a localoccupational license fee in a county where the unemployment rate does not exceed the statewideunemployment rate to request a waiver of the local occupational license fee requirement if the localjurisdiction offers alternative inducements of similar value that are satisfactory to the authority.

HB 400 JOBS RETENTION INCENTIVESSponsor: Representative Larry Clark (D-Louisville)

HB 400 amends provisions of the Kentucky Jobs Retention Act, KRS 154.25-010 to154.25-050, to expand eligibility for jobs retention incentives. Under current law

eligibility for incentives is limited to projects within the jurisdiction of a consolidated localgovernment. HB 400 expands eligibility for jobs retention incentives to include the entire state. Toqualify under current law and HB 400, an eligible company proposing a jobs retention project mustemploy at least 1,000 full-time persons engaged in automobile or automobile parts or suppliesmanufacturing, have been operating within the state on a continuous basis for at least five years, andhave been previously approved by the state for economic development incentives related to one ormore of its facilities. The Jobs Retention Act permits an approved company to require each employeewhose job was created or preserved as a result of a jobs retention project to pay a wage assessment as acondition of employment. The amount of the wage assessment can vary depending on the amount ofany local occupational license fees and participation by local governments.

SB 40 ALCOHOLIC BEVERAGESSponsor: Senator John Schickel (R-Union)

SB 40 amends several statutes permitting the sale of alcoholic beverages by the drink atrestaurants that receive at least 50 percent of gross receipts from the sale of food. The

definition of “restaurant” in KRS 241.010 is amended to make clear the requirement to receive atleast 50 percent of gross receipts from the sale of food applies only to food and beverage sales and notto other items that may be sold by a restaurant. KRS 153,460, 242.1295, 243.032, 243.250, 244.090,244.125, 244.290 and 244.295 are similarly amended to make clear the 50 percent requirementapplies only to food and beverage sales.

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The definition of ”qualified historic site” in KRS 241.010 is amended to require a qualified historicsite licensed to sell alcoholic beverages by the drink to have dining facilities for at least 50 persons attables, booths or bars where food may be served and deletes the requirement that a qualified historicsite have lodging on the premises. KRS 243.042 is also amended to require a qualified historic site tobe located in a precinct where the limited sale of alcoholic beverages by the drink at a qualifiedhistoric site has been approved or in any territory where alcohol sales are permitted.

SB 40 additionally amends KRS 243.220 to rescind the requirement that premises licensed for the saleof alcoholic beverages at retail be located at street level with a street level entrance in a business centeror on a main thoroughfare. Corresponding exceptions are also rescinded.

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HB 112 MINIMUM AGE REQUIREMENTS FOR MUNICIPAL OFFICESponsor: Representative Adam Koenig (R-Erlanger)

HB 112 amends KRS 67C.103, KRS 67C.105 and KRS 83A.040 to lower the age at which a person iseligible to hold the office of mayor from 25 to 21 and the office of legislative body member from 21to 18 in a consolidated local government and in cities with a mayor-council, commission or citymanager form of government.

SB 123 REFERENDUM PETITION REQUIREMENTS Sponsor: Senator Damon Thayer (R-Georgetown)

SB 123 seeks to reduce issues relating to verification of signatures on referendumpetitions. The measure requires all referendum petitions permitted by general law in

KRS Chapters 65, 67, 67A, 67C, 68, 76, 81, 81A, 83A, 96, 96A, 97, 98, 99, 107, 108, 109, 132, 147,157, 160, 162, 165, 173, 178, 183, 212, 230, 242, 243, 244, 262, 269, 424 and 436 or other KRSchapters or the Kentucky Constitution to include the:

w Printed name of the petitioner;

w Signature of the petitioner;

w Year of birth of the petitioner;

w Residential address of the petitioner; and

w Date that the petitioner signed the petition.

A person is eligible to sign a referendum petition if he or she is a registered voter and lives in thedistrict or jurisdiction that will be affectedby the referendum.

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HB 465 BROWNFIELD REDEVELOPMENT NONLIABILITYSponsor: Representative Fred Nesler (D-Mayfield)

HB 465 creates a new section of Subchapter 1 of KRS Chapter 224 to establish aBrownfield Redevelopment Program to be administered by the Energy and Environment

Cabinet. The program relieves a property owner of liability for performing corrective action on theproperty where a release of petroleum or release of a hazardous substance, pollutant or contaminanthas occurred under the following conditions:

1. The release occurred prior to the property owner's acquisition of the property;

2. The property owner made all appropriate inquiries into previous ownership and uses of theproperty in accordance with generally accepted practices;

3. The property owner or a responsible party has provided all legally required notices with respectto hazardous substances, pollutants, contaminants, petroleum or petroleum products found atthe property;

4. The property owner is in compliance with all land use restrictions and will not impede theeffectiveness or integrity of any institutional control required for the property;

5. The property owner complied with any information requests by the cabinet;

6. The property owner is not and has not been affiliated by familial or financial relationship withany person who is potentially liable for the release of hazardous substances, pollutants,contaminants, petroleum or petroleum products on the property;

7. The property owner has not caused or contributed to the release;

8. The cabinet concurs in writing that the intended future use of the property will not interferewith remediation of the release or expose the public and environment to unacceptable harm; and

9. The person provides any person undertaking corrective action and the cabinet with access to theproperty for completion of remediation activities.

HB 465 additionally amends KRS 224.60-135 to provide that a property owner who is not also thepetroleum storage tank owner or operator has no obligation to perform corrective action for a releaseinto the environment from a petroleum storage tank.

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HB 518 WASTE TIRE PROGRAMSponsor: Representative Tom McKee (D-Cynthiana)

HB 518 amends KRS 224.50-855 relating to the state waste tire programto increase the membership of the Waste Tire Working Group from five to eight members by addingone mayor of a Kentucky city appointed by the Governor from a list of three nominees submitted bythe Kentucky League of Cities; one county judge/executive appointed by the Governor from a list ofthree nominees submitted by the Kentucky County Judge/Executive Association; and onerepresentative of private industry engaged in the business of retail tire sales appointed by theGovernor. Members receive travel-related expenses but no salary as compensation.

The Waste Tire Working Group was established in 2011 to provide advice and input to the Energyand Environment Cabinet regarding the administration and implementation of alternative methodsfor controlling the local accumulation of waste tires, including distribution of grants from the wastetire trust fund to local governments for waste tire disposal. The working group additionally assistswith data development for the cabinet’s annual report to the General Assembly on the effectiveness ofthe waste tire program.

HJR 11 CLEAN WATER ACT CRITERIASponsor: Representative Fitz Steele (D-Hazard)

HJR 11 encourages funding of sewer line and straight pipe improvements. Section 404 of the federalClean Water Act permits the Army Corps of Engineers to award funds for wetland restoration wherewetlands have been impacted by projects authorized by the Corps. The mitigation program isadministered jointly by the Corps of Engineers and the Environmental Protection Agency. Funds maybe approved for improvements to the physical characteristics of streams where water quality has notbeen degraded. The Corps of Engineers may, however, permit use of up to 25 percent of mitigationfunds for sewer line and straight pipe improvements where water quality has been degraded in acounty where a permittee operates if the permittee assumes responsibility for the project. HJR 11encourages Section 404 permittees to set aside 25 percent of mitigation funds for sewer line andstraight pipe improvements in a county where the permittee operates. It directs the Energy andEnvironment Cabinet to compile a list of sewer and straight pipe projects approved by the ArmyCorps of Engineers for mitigation and the waters that will be affected by those improvements forsubmission to the Legislative Research Commission by June 15, 2013, and every year thereafter, alongwith a report of progress in achieving the goal of 25 percent set aside for sewer line and straight pipeimprovements.

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HB 62 DEED IN LIEU OF FORECLOSURESponsor: Representative Dennis Horlander (D-Shively)

HB 62 amends KRS 382.110 to require a mortgage holder to file a deed in lieu offoreclosure in the office of the county clerk in the county in which the property is located

no later than 45 days after the date the deed in lieu of foreclosure is executed. A deed in lieu offoreclosure conveys all interest in real property to the lender to satisfy a loan that is in default and toavoid foreclosure proceedings. A mortgage holder that fails to file a deed in lieu of foreclosure within45 days of execution is guilty of a violation subject to a maximum fine of $500 if the mortgage holderis a corporation. KRS 142.050 is additionally amended by HB 62 to clarify that a deed in lieu offoreclosure is not subject to payment of a transfer tax.

HB 396 EXPEDITED SALE OF FORECLOSED PROPERTYSponsor: Representative John Tilley (D-Hopkinsville)

HB 396 creates a new section of KRS Chapter 426 to provide for the enforcement of amortgage lien by expeditious sale of real property determined by the court to be vacant

and abandoned.

Real property may be considered vacant and abandoned if there has been no legal resident for aperiod of 45 or more consecutive days and two or more of the following or similar circumstancesexist: overgrown or dead vegetation; accumulation of flyers, mail or trash; disconnected utilities; theabsence of window coverings or furniture; uncorrected hazardous conditions or vandalism; orstatements by neighbors, delivery persons or government employees that the property is vacant.

Proof of vacancy and abandonment may be offered by affidavit filed at or after the time of filing of acomplaint of foreclosure by the plaintiff or otherlienholder. If the court determines that the property is vacant and abandoned, the mastercommissioner of the court is required by HB 396 to sell the property within 70 days of the order.

HB 396 also amends KRS 517.060 to expand the crime of defrauding secured creditors to includedamage to property subject to a security interest with intent to lower the value of the secured interest.The penalty for conviction of the crime of defrauding secured creditors is increased to a Class Cfelony if the value of the property subject to the security interest is $10,000 or more. Conviction of aClass C felony can result in incarceration for five to 10 years and a fine of up to $10,000.

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HB 369 LAW ENFORCEMENT FOUNDATION PROGRAM FUNDSponsor: Representative Dennis Horlander (D-Shively)

HB 369 amends KRS 15.460 and 15.470 to require annual supplements paid by theKentucky Law Enforcement Foundation Program Fund to qualified peace officers to

continue to be paid to an officer who is called to active duty by the Kentucky National Guard or byany reserve component of the United States Armed Forces.

Eligible local governments will receive the salary supplement payable to a qualified peace officercalled to active duty excluding funds applicable to the employer’s pension fund contribution. Thesupplement is not subject to employee contributions to the Kentucky Retirement Systems or anyother retirement system.

HB 390 SECONDARY METALS RECYCLERSSponsor: Representative Tonya Pullin (D-South Shore)

HB 390 creates new sections of KRS Chapter 433 to expand existing statutesregulating the purchase of metals by secondary metals recyclers. “Secondary metals

recycler” is defined by HB 390 to include any person who is engaged in the business of obtainingferrous or nonferrous metals that have served their original economic purpose and any person whohas facilities for performing the manufacturing process by which ferrous or nonferrous metals areconverted into raw material products having an existing or potential monetary value.

“Secondary metals recycler” does not include a municipal solid waste department or any entity thathas been issued a municipal solid waste transporter license by the Kentucky Transportation Cabinetand that gathers or obtains ferrous or nonferrous metals in a vehicle registered in Kentucky totransport solid waste.

HB 390 requires each secondary metals recycler to submit to a name-based background check andobtain a certificate of registration from theOffice of Occupations and Professions in the Public Protection Cabinet by

September 11, 2012, 60 days from the effective date of HB 390. The certificate must beconspicuously displayed at the business location of the secondary metals recycler and renewedannually.

Payment by a secondary metals recycler for the purchase of restricted metals must be made by checkpayable to the seller after the secondary metals recycler obtains reasonable proof that the seller ownsor is authorized to sell the property. Each check for payment must be mailed by the secondary metalsrecycler to the street address of the seller no sooner than one day after the purchase transaction.

“Restricted metals” include manhole covers; electric light poles or other utility poles; guardrails;traffic signs or signals; whole road tiles; funeral markers or vases; railroad equipment; condensing or

evaporating coils made from copper or aluminum; stainless steel beer kegs; catalytic converters; stormdrain covers; and copper wire or coaxial cable belonging to a utility or cable provider.

At the close of each business day a secondary metals recycler is required by HB 390 to provide areport describing any purchase of restricted metals to the sheriff of the county in which the purchasetransaction was made, the sheriff of the county where the secondary metals recycler is located, thepolice department of the city or county in which the purchase transaction was made, and the policedepartment of the city or county in which the secondary metals recycler is located. The report mustbe submitted in digital format, in writing or by other electronic means; remain confidential; andinclude the following disclosure: “This information is for the designated recipient only and maycontain privileged, proprietary, or otherwise private information.” The secondary metals recyclermust additionally maintain equipment for expeditious receipt of information from law enforcementofficials regarding stolen restricted metals.

The provisions of HB 390 do not apply to nonreturnable used beverage containers or the purchase ofrestricted metals from a secondary metals recycler or registered charitable, religious, civic or school-sponsored organization.

A new section of KRS Chapter 512 is created by HB 390 to establish the crime of “unlawful actsrelating to acquiring metals.” A person who intentionally and without permission cuts, mutilates,defaces or otherwise injures any personal or real property of another, including any fixtures orimprovements, for the purpose of obtaining any restricted metal or ferrous or nonferrous metal in anyamount is guilty of unlawful acts relating to acquiring metals. Unlawful acts relating to acquiringmetals is a Class B misdemeanor if the property loss is less than $3,000 and a Class D felony if theproperty loss is $3,000 or greater.

An ordinance enacted by a local government relating to the purchase of metals must contain theprovisions of HB 390 and not specify a lesser penalty for a similar offense specified in HB 390.

HB 390 additionally recommends the creation of a Recyclable Metals Theft Prevention WorkshopWorking Group to include:

w The commissioner of the Kentucky State Police;

w One representative from each of the following organizations: Kentucky Sheriffs' Association,Kentucky Association of Chiefs of Police, Associated General Contractors of Kentucky,Kentucky Recycling Association, Kentucky League of Cities, Kentucky Association of Countiesand the Kentucky Municipal Utilities Association; and

w One representative from each of the following: cable industry, telecommunications industry,railroad industry and a utility company.

The General Assembly further recommends that the Recyclable Metals Theft Prevention WorkingGroup meet at least twice a year with the first meeting no later than August 15, 2012.

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SB 32 BLUE ALERT SYSTEMSponsor: Senator Ray Jones (D-Pikeville)

SB 32 creates new sections of KRS Chapter 16 to require the Department ofKentucky State Police to operate a system to notify the public when a peace officer

has been killed, injured or is missing in the line of duty and the department determines that publicnotification might aid in the apprehension of a suspect or location of the officer. All law enforcementagencies must cooperate with the department in the provision and dissemination of informationutilizing existing resources, including but not limited to electronic highway signs; the Amber AlertSystem; law enforcement communications systems; electronic media; and local, regional and statewidemedia providers.

A public alert using the system may be issued by the Department of Kentucky State Police whenrequested by a law enforcement agency if it determines, in consultation with the law enforcementagency, the following:

w That a peace officer has been killed, seriously injured or is missing in the line of duty;

w That public notification is the most appropriate method of locating the officer or identifyingand locating a suspected offender who poses an imminent threat to the public or lawenforcement personnel;

w That there is sufficient information available relating to the officer’s last known location and thephysical description of any suspected offender or vehicle involved that could be broadcast toassist in locating the officer or suspected offender; and

w The geographic area in which the notification will be made.

No law enforcement agency other than the Department of Kentucky State Police may activate thesystem. The department must promulgate administrative regulations for the operation andadministration of the Kentucky Blue Alert System.

SB 55 MUTUAL AID AGREEMENTSSenator Jack Westwood (R-Erlanger)

SB 55 creates a new section of KRS Chapter 39B relating to local emergencymanagement programs. The legislation permits the state and any political subdivision

of the state to enter into written mutual aid agreements with units of government from another statein order to more adequately address emergencies that extend or exceed a jurisdiction’s emergencyresponse capabilities without rising to the level of a state declaration of emergency. Agreements mayprovide for emergency response within Kentucky or in another state, coordination ofcommunications, training activities and standby for planned events. If an emergency responder from ajurisdiction outside Kentucky holds a license, certification or other permit recognized or issued by

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another state, that emergency responder is considered to be licensed, certified or permitted inKentucky. All immunities from liability available to units of government in Kentucky are extended tounits of government from another state acting under a mutual aid agreement. A mutual aid agreementmust be approved by each unit of government entering into the agreement. A copy of the agreementmust be provided to the fiscal court or legislative body having countywide jurisdiction and to thecounty emergency management agency. SB 55 does not limit or modify current state or localemergency management programs or the emergency management assistance compact under KRS39A.050, which provides for mutual aid between states entering into the compact when a disaster isdeclared by the Governor of the affected state.

SB 58 MISDEMEANOR ASSAULTSenator John Schickel (R-Union)

SB 58 amends KRS 431.005 and 431.015 regarding arrests and citations for misdemeanors. Thelegislation authorizes a peace officer to make an arrest without a warrant for violation of KRS508.030, assault in the fourth degree, when a violation occurs in the emergency room of a hospitaloutside the presence of a peace officer, if the officer has probable cause to believe the person beingarrested has violated KRS 508.030. Assault in the fourth degree is a Class A misdemeanor.

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HB 121 POW/MIA FLAGSSponsor: Representative Fitz Steele (D-Hazard)

HB 121 creates a new section of KRS Chapter 2 to require any Prisoner of War and Missing inAction (POW/MIA) flag purchased or displayed by a public institution to be manufactured in theUnited States. As used in HB 121, POW/MIA flag refers to the flag designated by the United StatesCongress as the symbol of the nation’s commitment and concern for the fate of Americans stillprisoners, missing in action or otherwise unaccounted for as a result of hostile action.

HB 123 LAND USESponsor: Representative Steve Riggs (D-Jeffersontown)

HB 123 amends KRS 100.217 to permit a city of the second class within a countycontaining a consolidated local government to establish by ordinance a board of

zoning adjustment under the provisions of KRS 100.217. If established, the board will have exclusivejurisdiction within the territorial boundaries of the city.

HB 123 additionally amends KRS 219.410 relating to mobile home parks to exempt recreationalvehicles that are parked on private or public property for a festival, fair, sporting event, yard sale orother publicly announced event for up to 30 days from state permit requirements for mobile homeparks.

HB 189 MERGED GOVERNMENTSSponsor: Representative Jimmie Lee (D-Elizabethtown)

HB 189 creates new sections of KRS Chapter 67 relating to formation of chartercounty governments pursuant to KRS 67.825-67.875 and unified local governments

pursuant to KRS 67.900-67.940. The legislation clarifies information that must be included in apetition proposing formation of a charter county government and in a comprehensive plan proposingformation of a charter county government or unified local government.

Any five qualified voters within the unincorporated area of a county or five qualified voters within themost populous city within a county may commence petition proceedings in support of the formationof a commission to study the question of adoption of a charter county government or consolidation ofany agency, subdivision, department or subdistrict providing any service or performing any functionfor a city or a county by filing an affidavit with the county clerk. The affidavit must state the qualifiedvoters constitute the petition committee and will be responsible for circulating the petition and filingit in proper form. The petition must be signed by a number of voters equal to at least 20 percent ofthe county’s residents in the unincorporated areas of the county and 20 percent of the residents of the

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incorporated areas of the county voting in the preceding regular election.

Within 30 days after the petition is filed, the county clerk must complete a certificate as to itssufficiency. A petition certified insufficient forlack of the required number of valid signatures may be amended once if the petition committee files asupplemental petition on additional sheets within 30 days. If a petition is determined to be sufficient,the clerk must complete a certificate of sufficiency and send a copy by certified mail to the petitioncommittee, the fiscal court of the county and the legislative body of each city within the county.

A comprehensive plan adopted by a commission formed to study formation of a charter countygovernment or unified local government must include, among other provisions: (1) the procedures bywhich the original comprehensive plan may be amended by the subsequently created charter countygovernment or unified local government; (2) the procedures by which the comprehensive plan may beamended by the county and participating city or cities as a result of contingencies arising from thefailure of certain jurisdictions to vote in favor of joining the comprehensive plan, such as issues ofrevenue, service provision and service area boundaries, and(3) the procedures by which a charter county government or unified local government may bedissolved not sooner than five years from commencement of the first terms of the duly elected officersof the charter county government or unified local government. A comprehensive plan may notinfringe upon any pre-existing collective bargaining agreements in force in participating jurisdictions.

A comprehensive plan for a charter county government must be completed within four years of thecommission’s appointment. If a majority of the commission members are unable to agree on a singleplan for the formation of a charter county government or the consolidation of services or functionswithin four years, the commission must be disbanded unless two thirds of the commission membersagree to extend the commission for no longer than six months.

If approved by the commission, the proposed comprehensive plan for a charter county government orunified local government must be presented to the voters at a regular election. Adoption of the planrequires a majority of residents voting in the unincorporated area of the county and a majority ofresidents voting within the city containing the largest population in the county or a majority of thoseresidents voting within cities that together contain at least 50 percent of the population residingwithin the incorporated areas of the county based on the most recent decennial census.

Votes must be counted within each city to determine whether the majority of voters within each cityare in favor of adoption of the comprehensive plan. Each city where the majority of those voting arenot in favor of adopting the comprehensive plan will not participate in the charter county government or unified local government. Eligible voters in a city not voting in favor ofadopting a comprehensive plan may vote for the chief executive officer of the charter countygovernment or unified local government and the relevant legislative body member or members forthe area including the nonparticipating city.

If the comprehensive plan is not adopted, the same proposal cannot be resubmitted for voterconsideration sooner than five years from the date of the election in which the comprehensive planfailed to receive the requisite votes.

HB 189 takes effect January 1, 2013.

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HB 496 OPEN RECORDSSponsor: Representative Johnny Bell (D-Glasgow)

HB 496 clarifies the definition of “public agency” for purposes of application of open recordsrequirements under KRS 61.870-61.884. KRS 61.870 currently includes within the definition ofpublic agency any body that derives at least 25 percent of its funds from a state or local authority. HB496 amends KRS 61.870 to exclude funds derived from a state or local authority in any fiscal year incompensation for goods or services that are provided by a contract obtained through a publiccompetitive procurement process from any determination whether a body is a public agency subjectto compliance with open records requirements.

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HB 122 RESIDENTIAL CARE FACILITIESSponsor: Representative Carl Rollins (D-Midway)

A residential care facility is defined by HB 122 to mean a residence operated and maintained by agovernment agency or by a private agency receiving state or federal funds that provides services in ahomelike setting for persons with physical, emotional or mental disabilities. The definition includesgroup homes and staffed residences licensed by the Cabinet for Health and Family Services, but itdoes not include alcohol or drug abuse treatment centers. HB 122 creates a new section of KRSChapter 65 to permit a local government to adopt a resolution requesting information on the locationof residential care facilities within the jurisdiction of the local government for use solely by its lawenforcement, fire protection and emergency service providers. Upon receipt of a resolution, theCabinet must provide within 30 days: (1) the physical location of any residential care facility orfacilities as defined by HB 122 located within the jurisdiction; and (2) the name and contactinformation for the individual or organization primarily responsible for oversight. The cabinet mustadditionally advise the local government of any change in the number or location of facilities.Information provided is not subject to inspection under Kentucky’s Open Records Act.

A local government may not adopt or enforce any licensing or other requirements specificallyapplicable to residential care facilities providing services for persons with a disability beyond thoserequired by the federal government or by state statutes or regulations.

The provisions of HB 122 do not exempt residential care facilities from compliance with localgovernment ordinances that apply generally within the jurisdiction, including but not limited tobusiness licensing requirements, occupational license taxes, nuisance and property maintenance codes,public and fire safety ordinances, health and sanitation ordinances, zoning requirements as providedunder KRS 100.984, or any other type of local ordinance of general application.

HB 189 LITTERINGSponsor: Representative Jimmie Lee (D-Elizabethtown)

HB 189 amends KRS 512.070 relating to criminal littering to permit the legislativebody of a local government to adopt an ordinance classifying the criminal offenses

proscribed by KRS 512.020 as civil offenses subject to enforcement in accordance with KRS 65.8808relating to code enforcement boards. Offenses proscribed by KRS 512.070 include droppingdangerous material on a highway; placing litter on any public or private property without permission;placing glass or other sharp objects in or adjacent to water to which the public has access; ordischarging sewage, minerals or oil products into any public water.

HB 189 takes effect January 1, 2013.

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HB 500 REGULATION OF FIREARMSSponsor: Representative Robert Damron (D-Nicholasville)

HB 500 amends KRS 65.870 which prohibits regulation of the transfer, ownership, possession,carrying or transportation of firearms, ammunition or components of firearms by a city, county orurban county government. The amendment broadens the application of KRS 65.870 to also prohibitregulation of the manufacture, sale, purchase, taxation and storage of firearms or their components.Any existing or future executive or legislative action in the prohibited areas is declared void andunenforceable.

The amendment also broadens the application of KRS 65.870 to include consolidated localgovernments and all local government agencies, including special districts, government boards andcommissions, and quasi-public agencies such as airport boards, transit authorities and housingauthorities.

Local government agencies are required by HB 500 to repeal, rescind or amend any existing firearmrestrictions in the prohibited fields on or before January 12, 2013, six months from the effective dateof HB 500. However, HB 500 does not affect the provision in KRS 237.115 that permits a city,county or urban county government to ban concealed deadly weapons from its buildings or portionsof its buildings if visible signs are posted at the entrance to the restricted building or portion of therestricted building.

Any person or organization that is adversely affected by any ordinance or other action in violation ofHB 500 may file suit to enjoin the violation. The court is required by HB 500 to award the prevailingparty in any suit for injunctive relief reasonable attorney’s fees and costs as well as expert witness fees and expenses. Anyright to sovereign immunity that otherwise might apply is specifically removed. Any public servantwho violates the provisions of HB 500 is subject to prosecution for official misconduct under KRS522.020 or KRS 522.030.

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HB 265 SUSPENSION OF RETIREE ALLOWANCE INCREASE Sponsor: Representative Rick Rand (D-Bedford)

HB 265 suspends for fiscal years 2012-2014 the annual retirement allowance increaseof 1.5 percent payable on July 1 of each year to recipients of retiree benefits under the

State Police Retirement System, Kentucky Employees Retirement System and the County EmployeesRetirement System pursuant to KRS 61.691(2). The provision is part of the state Executive BranchBiennial Budget enacted by the General Assembly.

HB 300 KENTUCKY RETIREMENT SYSTEMSSponsor: Representative Mike Cherry (D-Princeton)

HB 300 amends several provisions of KRS 61.645 and KRS 61.655 relating toadministration of the Kentucky Retirement Systems.

KRS 61.645 is amended to:

w Apply current term limits for members of the Board of Trustees of the Kentucky RetirementSystems to a trustee appointed by the Governor;

w Require candidates for the Board of Trustees to submit an application detailing his or hereducation, employment history, qualifications for the position, any potential conflicts of interestalong with authorization for a criminal background check;

w Prohibit the chair and vice-chair of the Board from serving more than four consecutive years aschair or vice-chair;

w Require the Auditor of Public Accounts to perform an audit of the Kentucky RetirementSystems at least once every five years retroactive to July 1, 2011 and require the KentuckyRetirement Systems to pay for all associated costs;

w Require the Kentucky Retirement Systems to make system expenditures and employee salariesavailable on a public website; and

w Prohibit payments by the Kentucky Retirement Systems to unregulated placement agentsdefined as agents prohibited by federal laws and regulations from receiving compensation forsoliciting a government agency.

KRS 61.655 is amended by HB 300 to establish conflict of interest provisions applicable to employeesof the Kentucky Retirement Systems and to prohibit both employees and trustees from contractingwith the Kentucky Retirement Systems as an individual or through a business owned by the employeeor trustee and from using his or her position to obtain a financial benefit.

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HB 300 additionally amends KRS 11A.010 to require placement agents to register as an executiveagency lobbyist. “Placement agent” is defined by HB 300 to mean an individual or firm compensatedor hired to influence an executive agency decision regarding the investment of assets of the KentuckyRetirement Systems.

HB 300 contains an emergency clause. The legislation took effect on April 11, 2012 when signed bythe Governor.

HB 502 PENSION PLANS FOR SECOND CLASS CITIESSponsor: Representative Tommy Thompson (D-Owensboro)

KRS 95.859 requires members of a closed Policemen’s and Firefighter’s Retirement Fund to receivean annual cost of living increase if the fund’s board of trustees determines the increase can besupported on an actuarially sound basis by the fund. If the board determines an increase cannot besupported on an actuarially sound basis by the fund, HB 502 amends KRS 95.859 to authorize thelegislative body of a city of the second class to require the fund to provide a cost of living increase.Any cost of living adjustment the city directs the fund to pay may not exceed the annual averageincrease in the consumer price index published by the United States Department of Labor or 5percent, whichever is less. The legislative body may suspend, reduce or repeal any cost of livingadjustment approved by the city if the legislative body determines the welfare of the city so demands.

HCR 162 KENTUCKY PUBLIC PENSIONS TASK FORCE Sponsor: Representative Mike Cherry (D-Princeton)

HCR 162 requires the Legislative Research Commission to create a Kentucky PublicPensions Task Force to study and develop consensus recommendations concerning

the benefits, investments and funding of the state-administered retirement systems and any othermeasures the task force believes would lead to the improved financial stability of the public pensionfunds.

The task force must meet at least monthly during the 2012 Interim of the General Assembly andsubmit its findings and recommendations and any proposed legislation to the Legislative ResearchCommission for referral to the appropriate committee or committees by December 7, 2012.Members of the task force will be selected by House and Senate leaders from members of thefollowing standing committees: Senate State and Local Government Committee, House StateGovernment Committee, House Appropriations and Revenue Committee and Senate Appropriationsand Revenue Committee. Three members will be selected from each committee. The President ofthe Senate and the Speaker of the House will each appoint one co-chair of the task force from amongthe appointed members. Final membership is subject to approval of the Legislative ResearchCommission.

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HB 287 RECLASSIFICATIONSponsor: Representative Julie Adams (R-Louisville)

HB 287 reclassifies the City of Hurstbourne Acres in Jefferson County from a city ofthe fifth class to a city of the fourth class.

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HB 277 OCCUPATIONAL LICENSE TAX RETURN FORMSSponsor: Representative Jody Richards (D-Bowling Green)

HB 277 creates new sections of KRS 67.750 to 67.790 to facilitate the efficientcollection of local occupational license taxes on net profits and gross receipts. Each tax

district that imposes an occupational license tax on net profits or gross receipts, including cities,counties, school districts and special districts, is required by HB 277 to submit an electronic or hardcopy of its occupational license tax return form or forms, accompanying instructions and a copy of itsoccupational license tax ordinance to the Secretary of State before November 1, 2012, for posting onthe state’s One-Stop Business Portal or another public website maintained by the Secretary of State. Atax district that amends its ordinance or tax return form after November 1, 2012, is required toprovide a copy to the Secretary of State within 30 days of the amendment.

Any tax district that imposes a net profits or gross receipts occupational license tax that fails to submitits tax forms to the Secretary of State by November 1, 2012, for posting on the one-stop portal oranother website maintained by the Secretary of State is subject to denial of services and funding fromany state agency if not corrected within 30 days following notification by the Secretary of State.

The Secretary of State is required by HB 277 to develop a standard form or forms for net profits andgross receipts occupational license tax returns. The Secretary of State must seek advice and commentson development, amendment and maintenance of the standard form or forms from an advisorycommittee chaired by the Secretary of State composed of a representative from each of the following:Kentucky Association of Counties, Kentucky League of Cities, Kentucky Occupational LicenseAssociation, Kentucky School Boards Association, Kentucky Society of Certified Public Accountants,urban-county government and consolidated local government. The advisory committee mustadditionally include a representative of business entities appointed by the Secretary.

HB 277 requires the proposed standard form or forms to be filed with the Legislative ResearchCommission for promulgation as an administrative regulation with copies provided to members of theInterim Joint Committee on Local Government for review and comment. Following consideration ofthe proposed regulation by the Administrative Regulation Review Subcommittee, the LegislativeResearch Commission must assign the proposed regulation to the Interim Joint Committee on LocalGovernment for final approval.

Prior to July 1, 2017, a tax district may adopt the standard form or forms as its exclusive return form,may accept the standard form or forms in addition to the tax district’s own return form, or may electto opt out of accepting the standard form or forms by adoption of a written order adopted by thegoverning body forwarded to the Secretary of State for posting on the One-Stop Business Portal oranother website maintained by Secretary of State. After July 1, 2017, a tax district must either adoptthe standard form or forms as its exclusive return form or accept the standard form in addition to itsown return form unless a written request for exemption is submitted by the district’s governing bodyand approved by the Secretary of State based on documented information that acceptance of thestandard form or forms will impose an undue financial hardship on the tax district.

Once completed, the Secretary of State must post the standard form or forms on the One-StopBusiness Portal or another public website maintained by the Secretary of State at no cost to taxdistricts or to the public or businesses for accessing and downloading the form or forms. Additionally,

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the Secretary of State may include on the website electronic links for the electronic filing of formswith a local tax district upon request by the district.

Nothing in HB 277 alters or preempts any of the requirements imposed by a tax district regardingdeadlines, reporting, rates or other procedures adopted by the tax district. The adoption or use of astandard form or forms does not release a business entity from any liability or responsibility to the taxdistrict for the payment of taxes, penalties and any other obligations imposed by the tax district. HB277 further provides that nothing in the legislation shall be construed to authorize the collection oflocal tax revenues by the state government or any agency of the state.

HB 499 OCCUPATIONAL LICENSE FEE CREDITS Sponsor: Representative Rick Rand (D-Bedford)

HB 499 amends KRS 68.197 relating to license fees in counties having a population of 30,000 ormore to require any credit of city license fees against county license fees that exists between a city andcounty as of March 15, 2012, to remain in effect as it is on March 15, 2012, through July 15, 2014.The required credit of a city license fee against a county license fee pursuant to KRS 68.197(7) issuspended until July 15, 2014, by HB 499 unless both the city and county have levied and arecollecting license fees as of March 15, 2012. HB 499 applies only to the credit against Knox Countyof an occupational license fee enacted, but not collected, by the City of Corbin as of March 15, 2012.

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HB 148 GAS PIPELINE SAFETY Sponsor: Representative Leslie Combs (D-Pikeville)

HB 148 amends KRS 278.992 to increase the maximum civil penalty that can be assessed by thePublic Service Commission against any person who violates a minimum gas pipeline safety standardadopted by the United States Department of Transportation or any regulation adopted by theKentucky Public Service Commission governing the safety of gas pipeline facilities or thetransportation of natural gas in Kentucky. The penalty is increased from $25,000 to $100,000 for eachviolation for each day the violation continues, except that the maximum civil penalty cannot exceed $1million for any related series of violations.

HB 215 ELECTRICAL INSPECTORS AND LICENSURE Sponsor: Representative Sal Santoro (R-Florence)

HB 215 directs the Department of Housing, Buildings and Construction to create atask force to study the effect of possible changes to the laws on electrical inspection

and licensure on Kentucky's electricians and electrical inspectors. Input must be sought fromelectrical inspectors, electricians, and any other relevant parties from throughout the state.

The task force will consist of the following members:

w A representative from the Department of Housing, Buildings and Construction;

w Two county government officials appointed by the governing body of the Kentucky Associationof Counties;

w Two city government officials appointed by the governing body of the Kentucky League ofCities;

w One representative appointed by the International Association of Electrical Inspectors,Kentucky Chapter;

w One certified electrical inspector from a county operating an electrical inspection programapproved by the department appointed by the secretary of the Public Protection Cabinet from alist of three names submitted by the commissioner of the department; and

w One certified electrical inspector from a county not operating an electrical inspection programapproved by the department appointed by the secretary of the Public Protection Cabinet from alist of three names submitted by the commissioner of the department.

A report of the findings and recommendations of the task force must be submitted by the Departmentof Housing, Buildings and Construction to the Legislative Research Commission for distribution tothe appropriate interim committees on or before November 1, 2012.

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SB 152 UNDERGROUND FACILITY DAMAGE PROTECTIONSponsor: Senator Mike Wilson (R-Bowling Green)

SB 152 amends KRS 367.4913 to require the 811 “Call Before You Dig” one-call center to begoverned by a board of directors elected by the membership. Board seats may be filled byrepresentatives of members owning or operating underground public utilities, includingrepresentatives of natural gas, electric, and water and sewer providers; a municipal utility; and aninterstate pipeline operator. The board may also include one advisory, nonvoting representativeselected from membership of the Home Builders Association of Kentucky, National ElectricalContractors Association or Kentucky Association of Plumbing, Heating-Cooling Contractors. Dutiesof the board will include determination of the method for calculation of the cost of service providedby the one-call center.

SB 152 additionally amends KRS 367.4909 to create three types of locate requests and response timesfor each. The usual operator response time remains two business days after a locate request is receivedfrom an excavator. In cases of emergency, SB 152 requires a response as quickly as possible, but in noevent more than 48 hours after notification. Beginning one year from the effective date of SB 152, anoperator is required to respond to a design locate request within 10 business days after receipt of therequest.

Other sections of KRS Chapter 367 are amended to include timber harvesting with mechanizedequipment within the activities potentially damaging to underground utilities subject to “Call BeforeYou Dig” requirements and to require underground facilities installed after January 1, 2013 to includea means to accurately identify and locate the underground facilities from the surface.

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100 East Vine Street, Suite 800 w Lexington, KY 40507 w www.klc.org

100 East Vine Street, Suite 800 w Lexington, KY 40507 w klc.org

SAVE THE DATE2012 KLC Conference & Expo

October 9-12, 2012Downtown Lexington Hyatt

Registration Opens June 1, 2012