Week In Review - March 1

FRANKFORT – With only eight legislative days left, the 2013 General Assembly Session has come to a major turning point. As I have reported in the past, Kentucky faces an immense unfunded liability in our public employee pension system. Senate Bill 2, a product of a bipartisan, bicameral task force that heard from stakeholders, retirement experts, and independent researchers, was drafted to protect tax-payers as well as current employees’ and retirees’ retirement from insolvency, passed the Senate in an overwhelming bipartisan vote. (SB 2 does not apply to teachers’ retirement and would not impact pensions for current employees and retirees.) The House of Representatives removed any structural changes to the strained system and proposed to pay for it with revenues from expanded lottery sales, Keno, and Instant Racing instead of discussing this part during the normal budget process of 2014. They refuse to discuss the bill with us in conference committee if we don’t accept their flawed financial plan. The time for gotcha politics is over; we must have a sober discussion about this very important issue. Bipartisan task forces have worked before on unemployment insurance and corrections reform. The Senate is still working and we want bipartisan consensus. Structural changes can be made now to the pension system that will strengthen the entire fund. We are hopeful that the House Leadership will come to the table on this issue that affects all Kentuckians. The Senate is also doing what we can to put our own house in order. Senate Bill 7 seeks to close the loophole in the state retirement system that had allowed some legislators to significantly increase their state pensions. Incidentally, Senate Bill 2 directs that any new legislators must be in the regular state employee system. Both these bills together work to make sure that state employees are treated similarly whether you work in the Senate or on a state road.

In other news, the Senate continued working on other bills involving elections, gun rights, and education.  Voting is at the foundation of our democracy.  Candidates come and go, but the process by which we elect our leaders lives on and must be protected.  While each vote cast is equal, those cast by America's bravest seem to be more sacred.  Generations of men and women serving on battle lines across the globe have protected our freedom to vote, yet their own votes are delayed and possibly uncounted. Senate Bill 1, which I co-sponsored, takes a substantial step toward making the voting process easier for military and those Kentuckians living abroad.  Electronically transmitting the ballot gets the ballot in the hands of those voters earlier so it can be filled out and returned on a timely basis. The bill also establishes a group to study the feasibility and security of electronically returning the ballots, which is a goal I hope we can achieve soon. Right now, the county clerks are concerned that the integrity of the ballot and the anonymity of the voter may be compromised if transmitted via email, fax or the web.

Senate Bill 55 will move the election date of constitutional officers to presidential election years. This has two benefits: it greatly increases voter participation because more people vote in presidential years and it has the bonus attribute of saving both local and state governments millions statewide by not having to hold off-year elections.

We also passed two bills protecting the right to bear arms.  Senate Bill 129 protects our Second Amendment rights by clarifying that the federal government cannot encroach on Kentuckians’ right to bear arms by limiting the reach of new federal regulations. This bill also takes a stand for our rights under the Tenth Amendment which states, "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."  Senate Bill 150 makes it easier to obtain a concealed-carry license by eliminating the residency requirement.  Applicants seeking the license must still go thought the required training course on firearm safety and related statutes.

We have several programs in place to help kids who may not necessarily learn in the traditional manner or need more help than their peers to understand their lessons. But there are also students who are motivated and prepared enough to want to continue pushing themselves and these children need our support too. Senate Bill 61 would allow for early graduation for qualified students who meet set requirements.  Senate Bill 64, sponsored by Sen. Stan Humphries, rewards students who work to graduate early by allowing them to access their full KEES funding.

Finally, I passed House Bill 8 and House Bill 9 from my Judiciary Committee this week. Both bills, sponsored by Rep. Tilley, are good pieces of legislation I was glad to advance. HB 9 provides legal protections to people trying to escape from violent relationships; HB 8 continues Kentucky's great work toward fighting synthetic drugs which continue to plague our communities.

We are entering the time period in Session when the House and the Senate will start discussing differences on bills that have passed both chambers. There is still time to contact me with any concerns or questions or comments. You can do so by leaving a message for me or any legislator toll free at 1-800-372-7181, by calling my Frankfort office directly at (502) 564-8100, or by emailing me here.  By logging on the General Assembly's website you can read the bills and see our schedules.  I also encourage you to bookmark this site and follow me on Twitter @KyWhitney!

Good Stewardship - Cutting Benefit Fraud

God charges us each with responsibility for all He provides us.  In our homes, our paychecks, our food and other material provisions, we must be good stewards and not waste what we have been given.  The important lesson to remember is that none of the 'stuff' we have is ours to begin with.  Likewise, the General Assembly must be a good steward of the tax dollars that are paid in each year.  Unfortunately, it is abundantly clear that the Commonwealth of Kentucky is not an all-around good steward of what we all pay in each year. I have filed a handful of bills that I promised I would work to pass if God blessed me with a win for the Senate, and SB 179 is one of those bills.  Senate Bill 179 is a brief bill that substantially restrictions the use and transfer of state-funded "EBT" cards.  There is a large market for these cards and too many end up in the hands of someone other than the needy child or family that needed them in the first place, and too many are eventually exchanged for cash and ultimately used for the purchase of controlled substances, alcohol and the like.

Here it is:

SB179

Smelters & Energy Rates

In the last week I have received a number of calls and emails urging me to vote "No" on Senate Bill 71 and/or House Bill 211. These companion bills relate to two aluminum smelters in Western Kentucky and how they purchase energy. There is a heated debate on whether these bills will have an impact on consumer energy rates. I have not decided how I will vote on this legislation, but I did want to share with you an op-ed written by Rep. Ben Waide from Madisonville - who has the smelters in his backyard. I know calls and emails are going out urging you to urge me and the rest of the General Assembly to stand against these bills, but I wanted to offer this information below so you can see the other side of the argument.

In the meantime, I am continuing to speak with utility and smelter company representatives to determine the best course of action for the 3rd District.

OFFICE OF STATE REPRESENTATIVE BEN WAIDE

BIG RIVERS and 2000 Jobs FRANKFORT, Ky. (February 18, 2013) – On August 21st 2012, Century Aluminum of Hawesville KY, an aluminum smelter plant, gave their one year notice to Big Rivers Electric that they would no longer be purchasing power from the cooperative. In December 2012, Big Rivers notified the Kentucky Public Service Commission (PSC) that they intended to ask for a rate increase to make up for the lost revenue from Century. That rate request was officially filed with the PSC on January 15th 2013 and would increase electric rates for the remaining Big Rivers customers by almost 75 million dollars per year.

This proposed increase was the proverbial last straw for Rio Tinto/ Alcan; another aluminum smelter located in Sebree KY. They gave their one year notice on January 31st that they would no longer be buying their power from Big Rivers. As a result, Big Rivers representatives have reported they will be seeking another rate increase from the PSC in order to make up for the lost revenue from Rio Tinto / Alcan.

The combined rate increase from these two requests is estimated to be 110 million dollars per year. For individual customers it will be a 30-40% increase in one year.

Once the first notice was given in August 2012, the rate payers fate was sealed. That means the remaining Big Rivers customers were going to have a huge increase in their electric bills and there was nothing that could stop it. No legislation in Frankfort had anything to do with a rate increase.

However, as a legislator, I still wanted to try to keep the smelters in Kentucky and save the jobs associated with those smelters.

On February 5 2013, a group of Western Kentucky legislators led by Senator Joe Bowen and Representative Tommy Thompson, filed 2 bills in an effort to save the 2000 jobs affected by the potential loss of these two smelters. I am a sponsor of one of those bills. Since they both have the same language I will call it the bill.

The bill would make a way for the two smelters to stay in Kentucky and keep 2000 jobs from leaving the state in one year. Specifically, it would allow the smelters to purchase their power from the open market instead of buying it from Big Rivers; which they are already not going to do. This means that the smelters could buy their power for $39 per megawatt hour (MWh) on the open market instead of the proposed $60/MWh.

As a Kenergy customer, I received an email and phone calls that told me to contact my representative and oppose the bill because it would force remaining customers like me to pay for the “extra expenses” and “incremental costs” of transmitting power to the smelters from the open market.

What they are talking about is the 10 million dollars per year it will cost to keep the Coleman Electric Plant running to supply Century a stable power supply. They are also talking about the Midwest Independent System Operator (MISO) transmission construction costs that will be a direct result of the smelter's load.

Well, this claim IS NOT TRUE. In fact, the bill specifies that the cost of “transmission and distribution services” will be paid for by the smelters at a Federal Energy Regulatory Commission (FERC) approved rate. This is in Section 2 subsection 7C for those who wish to look it up. What's more, Century's Associate General Counsel John DeZee has maintained throughout the discussions that Century will pay all additional costs incurred by Big Rivers.

I also believe there has been some confusion on the part of Kenergy regarding the 10 million dollars. They claim the 10 million for operating the Coleman plant will be an additional cost to customers. However, the PSC confirmed to me that the 10 million is already included in the January 15th rate increase request. I have spoken to all parties involved and I truly believe this is a point of confusion.

It is NOT TRUE that the remaining customers might have to pay transition costs if the smelters wish to return to Big Rivers in the future. The smelters have agreed to forgo any return to the co-op. Although the smelters have stated this, it is included in a revised version (“committee substitute”) of the bill (HB 211) to make sure Big Rivers is not vulnerable.

It is also NOT TRUE that the bill would deregulate electricity in Kentucky. These two smelters are the only entities in the whole state that would qualify to buy power on the open market under this bill. Kenergy states this on their own website. No one in Frankfort is proposing to do anything that would affect the statewide certified territories. It does not open any doors or create any new ways to deregulate the state.

I will always be a champion of coal fired electricity. We have so much coal that electricity ought to be cheap. Unfortunately, things are not the way they ought to be.

Big Rivers has been in financial trouble for many years. They are hundreds of millions of dollars in debt. The EPA adds costly regulations every year and the smelters make up 70% of their business. Even if Big Rivers wanted to lower rates they probably could not.

What they could do is help protect 2000 jobs. Past agreements between Big Rivers and the smelters are not suicide pacts with the people of Western Kentucky. A new agreement could be reached that allows the smelters to stay and Big Rivers associated costs to be covered.

The bill introduced in Frankfort does not increase anyone's electric bills. The increase that is coming was triggered in August of last year and we cannot do anything to stop it.

It is my hope a new agreement will be reached while there is still time to save 2000 jobs. If achieved, this agreement would remove any need for legislation out of Frankfort and that's the way things ought to be in the first place.

Ben Waide State Representative 10th District

Week In Review - February 22

FRANKFORT – We are a half-way through the 30-day session and while many of our priority bills have meandered their way to the House to await action there, the Senate continues working on several outstanding issues.

The Senate passed House Bill 7, a bill authorizing university bonding projects. Universities will use their own bonds at no cost to Kentucky’s General Fund to renovate or build 11 critically-needed buildings. Murray State, for example, laid out plans for renovations of Hester College and College Courts as well as upgrades to existing infrastructure. These creative building proposals not only enhance the quality of higher education in our state but also will be providing needed construction jobs. I congratulate the universities for defining a specific project list and developing a business plan with a dedicated revenue stream. It is the right approach especially after the Senate added language that these projects could not be subsidized with tuition increases. Incidentally, HB7 was the first bill to pass both chambers.

The Senate also passed bills directed at gifted students as well as those who are struggling in the traditional academic environment. Senate Bill 109 which allows high-school students who are taking Advanced Placement or similar certified college credit classes to access their KEES funds early in order to pay for them. Senate Bill 97 allows local school districts to adopt a policy requiring students to stay in school until age 18, or graduation whichever comes first, with the understanding that they would have to offer an approved alternative education program that would help meet the needs of students most likely to drop out. Local districts are best equipped to understand what kind of supports they have or can offer and that decision should not belong to a Frankfort bureaucrat. With this bill, educators are better prepared and the needs of at-risk students can be met outside the traditional educational process.

Senate Bill 39 and Senate Bill 40 both passed the Senate. SB 39 states that any expansion of Medicaid eligibility under President Obama’s Affordable Care Act must be approved by the General Assembly. Similarly, SB 40 directs that the General Assembly must approve any state-run health benefit exchanges under the Affordable Care Act. I believe that policies that have such state-wide impact and are attached to such great costs should simply not be decided by one individual without the benefit of open, transparent debate. While I have my own feelings about the value of expanding government services without having a way to pay for them, this is not about me or my opinion. This is about giving true deliberation to policies that will dramatically affect how your government operates and costs and including as many people as possible in that decision. The Governor was never supposed to have a blank check to do with what he wants.

The Senate also focused on other areas. One of my bills passed, Senate Bill 128. This legislation will make it easier for veterans to be assigned veteran designation on their operator's license or state-issued ID card. Our military men and women have sacrificed much for us and there’s no reason to burden them with additional bureaucracy.

Senate Bill 6 passed in response to the overwhelming number of deaths resulting from heroin overdoses in Northern Kentucky. Unfortunately, this scourge seems to be spreading to the rest of the state. The bill allows dealers of highly-addictive Schedule I drugs such as heroin, meth, and cocaine to be charged with criminal homicide in the event of a drug-overdose death, even if they didn’t sell the drug directly to the deceased. Increasing access to non-emergency medical transportation for our most vulnerable is the intent of Senate Bill 112. This bill will increase competition among providers which hopefully will bring the costs down for those who need the service. It would also represent a significant savings to tax-payers to coordinate transportation as well because Medicaid dollars are used.

Finally, much to relief of state employees across Kentucky, the infamous Senate Bill 144 was killed by its own sponsor earlier this week. Unfortunately, the debate over pension reform continues to unfold. While the Senate has passed SB2 (33-5), an important first step in righting the ship, the bill has stalled in the House of Representatives while some in the lower chamber consider "revenue" measures to cover it. The refrain I continue to repeat is simple: taxpayers shouldn't shoulder the burden for repairing a system their decisions didn't run into the ground in the first place. Frankfort must first demonstrate good stewardship of the money it already has.

Even though time is running out on this session, time is never running out on you voicing your opinion. There are several ways to contact me: my toll-free number is 1-800-372-7181, bookmark this site, email me here, and online the work of the Legislature can be accessed via www.lrc.ky.gov.

February 21 - Agenda

SENATE COMMITTEE ON JUDICIARY

TENTATIVE AGENDA

February 21, 2013 - Meeting No. 3

1. Call to order and roll call.
2. Presentation by Dr. Nora Volkow – Director of the National Institute on Drug Abuse. National Institutes of Health
3. Senate Bill 67 – AN ACT relating to persons incompetent to stand trial. Sen. S. Gregory Amend KRS 186.560 to prohibit a person found incompetent to stand trial from operating a motor vehicle in Kentucky during the period of the person's incompetency.
4. Senate Bill 78 – AN ACT relating to the Crime Victims Compensation Board. Sen. S. GregoryAmend KRS 216B.400 to require that a medical exam of a crime victim has to occur within twelve months of the medical provider's application to receive reimbursement; amend KRS 346.040 to permit the Crime Victims Compensation Board to negotiate a binding settlement for recoverable expenses with the provider after a claim has been filed; create a new section of KRS Chapter 346 to provide that debt collection actions against crime victims, where the debt incurred is related to a recoverable claim through the board, shall cease pending action by the board and establish procedures; amend KRS 346.130 to permit the use of court records to establish the occurrence and reporting of criminal conduct and permit an award for loss of earnings or support if due to the crime and provide that the award shall be equal to net earnings at the time of the crime; amend KRS 346.140 to add donations made on behalf of a victim to the listing of offsets to be made against awards; amend KRS 532.162 to provide that if a court orders a defendant to pay restitution for criminal conduct, that reimbursement may be directed to the Crime Victims Compensation Board as appropriate; repeal KRS 346.190, relating to reciprocal agreements with other states.
5. Senate Bill 84 – AN ACT relating to persons transporting prisoners. Sen. J. Schickel Amend KRS 71.065 to authorize a county in which there in no jail and the jailer has been appointed as a transportation officer to employ additional persons with peace officer authority to assist the jailer.

6. Senate Bill 122 – AN ACT relating to reorganization. Sen. R. Palmer II Amend KRS 196.026 to create the Division of Parole and Victim Services and the Division of Substance Abuse Programming within the Department of Corrections and abolish the Division of Frankfort Career Development Center; amend KRS 439.320 to abolish the position of executive director of the Parole Board; amend KRS 196.701 and 196.702 to conform; repeal and reenact KRS 439.562 to establish the Kentucky Council for Interstate Adult Offender Supervision and define its membership and duties; amend KRS 317.420 and 317A.020, relating to the practice of barbering and cosmetology, to exclude the Department of Juvenile Justice and the Department of Corrections from those provisions; amend KRS 15.315 to add three members, ex officio, to the Kentucky Law Enforcement Council; amend KRS 15A.020 to abolish the Office of Investigations within the Justice and Public Safety Cabinet and transfer those functions to the Office of Legal Services; amend KRS 12.020 to conform; confirm Executive Order 2012-560.
7. Senate Bill 124 – AN ACT relating to city police. Sen. C. Girdler Amend KRS 95.015 to extend the jurisdiction of police in cities of the sixth class to the entire county, the same as in cities of the other classes.
8. Senate Bill 141 – AN ACT relating to domestic relations. Sen. B. Smith Create a new section of KRS Chapter 403 defining "safe child drop-off areas" and allowing the courts to require exchanges of child custody to take place in such areas.
9. Senator Concurrent Resolution 123 - Sen. D. Seum Direct the staff of the Legislative Research Commission to study the current statutory, regulatory, and procedural barriers to immediate notification of the Division of Probation and Parole when supervisees are arrested; alternative methods for notification and the associated costs of each method, including start-up and recurring costs; the necessary participation and cooperation of other appropriate agencies and the Administrative Office of the Courts in developing and implementing the notification system; report findings to the appropriate committee or committees by November 1, 2013.

10. Adjournment.

SUBJECT TO CHANGE PRIOR TO COMMITTEE HEARING