2014 Interim Record

2014 Interim LEGISLATIVE Volume 27, No. 7 November 2014 * Read on-line at www.lrc.ky.gov/legislation.htm RECORD Lawmakers urged to boost 9-1-1 funding by Rebecca Hanchett Senate Majority LRC Public Information Leader Damon Local government officials across the state Thayer, plan to ask the 2015 General Assembly to increase R-Georgetown, the wireless fee for enhanced 911 service as more speaks at the and more Kentuckians move from wireline to wire- Oct. 22 meeting less phones. of the Interim Joint Local governments say they want state law- Committee on makers to pass legislation during the upcoming Local regular legislative session that either raises the Government in statewide Commercial Mobile Radio Service Board Frankfort. (CMRS) wireless fee to a “reasonable level” or al- lows cities and counties to assess their own wireless 911 fee to fund 911 services, Bardstown Mayor and Kentucky League of Cities (KLC) President Bill Sheckles told the Interim Joint Committee on Local Government on Oct. 22. “If the General Assembly is going to refuse to raise the statewide CMRS fee, which is set in statute, then it should no longer preempt local governments from assessing local fees on wireless subscribers,” said Sheckles. Most of the cost for 911 today—40 percent— Breeder incentives working, lawmakers told is assumed by local government through their general funds, Sheckles said, quoting a 2013 CMRS KBIF are eligible to win cash awards for winning report. That has forced “both cities and counties to by Rebecca Hanchett eligible races throughout the world, according to a use more and more general fund resources to main- LRC Public Information description of the program on the Kentucky Thor- tain this most essential governmental service,” he oughbred Association website. added. Wireless fees only cover 23 percent of local When it comes to breeding of thoroughbred “The most unique aspect of this program is 911 funding while 30 percent is covered by fees on horses, industry statistics show Kentucky bred we award money all over the world, so regardless landlines, Sheckles said. nearly six times the number of mares in 2014 as its of whether you’re racing in Kentucky or Califor- The current fee paid by many cell phone top competitor of Florida – and is offering breeder nia, you’re going to get a breeder award for the carriers for 911 service in Kentucky is 70 cents per incentives to help make that possible. same amount if you win the eligible race,” said month, according to state law, while the CMRS re- Jamie Eads, the director of the Kentucky Eads. ports that monthly landline fees in Kentucky range Horse Racing Commission’s Division of Incen- The incentives through KBIF are funded by from 32 cents to $4. tives and Development, told the Kentucky General sales taxes on fees paid for breeding a stallion to Speaking for the Kentucky Association of Assembly’s Subcommittee on Horse Farming on a mare in Kentucky. More than $97 million—or Counties, LaRue County Judge-Executive Tommy Nov. 12 that the Kentucky Breeders’ Incentive about 80 percent of total KBIF revenues—have Turner said local governments have been able to Fund created by statute in 2005 has provided been awarded for winning eligible thoroughbred consolidate many Public Safety Answering Points millions of dollars of incentives for thoroughbred, races since 2006, with $10.4 million awarded (PSAPs), or 911 call centers, with the number of standardbred, and non-racing horses bred in Ken- for races won in 2013, according to Commission tucky over the past eight or nine years. Continued on page 2 Breeders who register their horse with the Continued on page 2 THE KENTUCKY GENERAL ASSEMBLY 1 9-1-1, Breeders, from page 1 from page 1 PSAPs statewide currently at 116. Kentucky has statistics. 120 counties, indicating that consolidation has taken Early registration place. Even so, Turner echoed Sheckles’ sentiment or “nominations” for the that increased wireless 911 funding is a priority for Kentucky Thoroughbred his agency’s members. Breeders Incentive Fund “E911 is the first link for help in an emergency ended with a total of situation and is one that citizens assume and demand 8,644 mares on Aug. 15, to always be fully functional and accessible,” said said Eads. That number Turner, adding that counties are not asking the state will continue to grow for direct funding for E911. What is requested, he through the end of the yearling year on Dec. 31, explained, is the ability to “correct the imbalance” in she said. E911 funding streams. Eads added that “It’s become an unsustainable amount (coun- 1,313 pregnant thor- ties have to pay) given the limits of local govern- oughbred mares in the ments to raise revenues combined with the unfunded current Keeneland sale are or underfunded mandates that fiscal courts continu- nominated to the KBIF ally have to address,” Turner told the panel. and another 500 could be Rep. Adam Koenig, R-Erlanger, indicated his added. Forty mares were support for more local control over the issue. Koenig nominated from the state’s was the sponsor of 2015 House Bill 273 which other major public sale at would have given local governments authority to Fasig-Tipton on Nov. 3, collect additional E911 revenue for wireless and she said. other communications. As for standardbred “We’ve been allowing local governments to horses, Eads said the state fund 911 through a tax on landlines for many, many Standardbred Breeders years and there’s no reason not to entrust you all to Incentive Fund receives do the same with cellular phones, which is the exact 13 percent of all sales tax same service provided in a new, updated manner. So collected, with over $17 I hope we can make that happen,” Koenig said. million allocated to stan- For his part, Committee Co-Chair Sen. Joe dardbred breeders since Bowen, R-Owensboro, said this may be a time to the fund’s inception. look more broadly at the enhanced 911 issue and The KBIF also funds the Kentucky Horse scope out possible inefficiencies at 911 call centers Breeders Incentive Fund, in the state. which has provided about “I’m not trying to be negative...but when we $9 million—or 7 percent do these types of things, I think we’re shortsighted of KBIF revenues—for Rep. Lynn Bechler, R-Marion, comments during the Interim Joint Committee on Agriculture on many times because we don’t identify inefficiencies. non-racing breeds, includ- Nov. 12. The Subcommittee on Horse Farming reported to the committee that day. I would encourage (taking) a broad comprehensive ing quarter horses, since look” at the 911 system, said Bowen, adding that the mid-2000s, said Eads. additional call center consolidation may need to be The Commission’s considered. Some of those sentiments were echoed Executive Director John T. by Co-Chair Rep. Steve Riggs, D-Louisville, who Ward, Jr. explained the KBIF as a jobs bill for the He said he’s glad the program is working, chaired today’s meeting. commonwealth. including language added allowing Kentucky-bred “We’ve got all this cost and administration and “As we build these programs and as these horses to earn rewards for races won outside of the management and boards all for 116 different little programs come into the state, jobs come with them, U.S. “Seventy percent of the horses bred here and PSAPs and we wonder if that’s the most efficient and I think that’s the disconnect we’ve had in the sold either privately or at one of our two public sales way, but there’s been no talk about (it),” said Riggs. past…” said Ward. “We lost horses for four or five (at Keeneland or Fasig-Tipton) never race here,” Turner explained consolidation among 911 call years, but now we’re starting to gain them back.” said Thayer. “I think this is the appropriate step.” centers in the state has already reduced the number Senate Majority Leader Damon Thayer, The subcommittee’s House Co-Chair Rep. of PSAPs in Kentucky by two-thirds over the last R-Georgetown, said the incentive funds are drawn Susan Westrom, D-Lexington, who chaired today’s 10 years. “We have seen tremendous consolidation from moneys that were funneled to the state General subcommittee meeting, delivered the subcommit- in these organizations and these operations over the Fund until the KBIF was established. tee’s report to the full Interim Joint Committee on last few years,” said Turner. “We’re the only state in the Union that charges Agriculture later in the day. “The good news is Kentucky is continuing to Also discussed before the committee were a sales tax for breeding a mare to a stallion, and so ever since (the KBIF was created), that money has increase the market share and our Breeder Incentive KLC’s and KACo’s other legislative priorities for been diverted from the General Fund to put it to Funds have had a positive outcome for increasing 2015 including but not limited to revenue diversi- much better use: incentivizing mare owners to breed racing purses, which is certainly the incentive to fication, local option sales tax proposals, and local their horses to Kentucky stallions and have that mare keep our horses racing in the state of Kentucky,” road aid funding. boarded here throughout the year,” said Thayer. said Westrom. 2 2014 Interim LEGISLATIVE RECORD Lawmakers hear testimony on plan to keep Kentucky teacher pension solvent by Jim Hannah this,” House Speaker Greg Stumbo, D-Prestonsburg, Wayne said his concern was that legislators LRC Public Information said after hearing the proposal.

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