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2013 Interim Record 2013 Interim LEGISLATIVE Volume 26, No. 8 November 2013 * Read on-line at www.lrc.ky.gov/legislation.htm* RECORD Number of KY ENERGY STAR Kentucky not certain how much schools have grown tobacco money it will receive in 2014 from 12 to 233 by Rebecca Hanchett by Rebecca Hanchett LRC Public Information LRC Public Information Kentucky could lose half, all, or none of its tobacco settlement payment next year due to a Sept. 11 Over the past six years, the number of ENER- ruling that found the state “nondiligent” in upholding a law requiring escrow payments by nonparticipat- GY STAR certified schools in Kentucky has grown ing cigarette manufacturers. from 12 to 233 under the direction of the Kentucky The decision, handed down against Kentucky and five other states by an arbitration panel, leaves School Energy Managers Project and others, a Kentucky uncertain about just how much tobacco settlement money it will receive in calendar year state legislative subcommittee was told on Nov. 2014, Governor’s Office of Agricultural Policy Executive Director Roger Thomas told the Interim Joint 15. Committee on Agriculture on Nov. 13. Kentucky had anticipated receiving approximately $90 million, Kentucky with agriculture getting half of whatever dollars are received per a formula under state law. School Boards Kentucky has appealed the decision. Association School “It’s pure speculation at this point…” said Thomas. “It all depends on these various state MSA Energy Managers courts and what their rulings are on motions to vacate.” He went on to say that, “It could be $45 million, Director Ron Will- it could be $5 million, it just depends on the actions of the state MSA courts…” hite explained to the There is even a possibility that Kentucky’s payment will not be reduced, pending court actions, or, Kentucky General depending on how many states are ultimately ruled nondiligent, “…it could be that the entire payment Assembly’s Special to a state—whether it’s Kentucky or any other state—if they were the only state to be found nondiligent, Subcommittee on they could have their entire payment withheld,” Thomas told the committee. Energy that most, Since tobacco settlement payments fund Kentucky’s popular Agricultural Development Fund, if not all, of the Thomas told the committee a reduction would “have a very dramatic effect” on state agricultural pro- increase has occurred Sen. Katie Stine grams. Still, he emphasized that it is too early to say exactly what the Sept. decision will mean for 2014 since the and the rest of the next budget cycle. General Assembly’s passage of “(But) it’s easy to see we have our challenges before us,” he said. school energy efficiency legislation in 2008 and According to the arbitration panel, Kentucky, Missouri, Maryland, New Mexico, Pennsylvania and 2010. ENERGY STAR is a voluntary federal pro- Continued on page 2 gram that helps individuals and organizations—in- cluding schools—conserve energy and save costs. House Majority Floor Leader Rocky Adkins, D-Sandy Hook, was glad to hear about Pension issues persist, state lawmakers told the increase by Rebecca Hanchett Sen. Chris in Kentucky schools LRC Public Information McDaniel, R- receiving the special Latonia, A prohibition against “pension spiking” designation. makes a point approved by state lawmakers with the passage of “That’s pretty during the Nov. Senate Bill 2 during the General Assembly’s 2013 amazing, to be very 20 meeting honest with you. Regular Session drew questions from a state legis- in Frankfort. That’s pretty amaz- lative committee on Nov. 20. ing,” said Adkins, The prohibition was mentioned in a presen- tation to the Interim Joint Committee on State who sponsored the Rep. Rocky Adkins 2008 legislation. The Government by Kentucky Retirement Systems 2010 legislation was sponsored by Senate Presi- Executive Director William Thielen, who said the The pension spiking prohibition, explained dent Pro-Tem Katie Stine, R-Southgate. policy change will take effect on Jan. 1, 2014, as Thielen, says the actuarial cost to the retirement The 2008 law requires local school boards to will implementation of a hybrid cash balance plan system created by annual salary increases greater for new state hires. All policies will be implement- than 10 percent during a retiree’s last five years ed by KRS. Continued on page 2 Continued on page 3 THE KENTUCKY GENERAL ASSEMBLY 1 Tobacco, to reduce payments to states “if they Rep. Tom McKee, D-Cynthiana, 2014 LRC from page 1 (the PMs) lose market share to their offered some praise of his own. nonparticipating colleagues because “It was an honor for me to work Publications Indiana did not adequately enforce of the multistate settlement’s obli- with you and many other legislators collections from nonparticipating gations.” States considered diligent to help develop these programs,” Price List manufacturers, or NPMs, who did not in collecting NPM payments were McKee said to Thomas, who is a for- sign onto a 1998 multi-billion-dollar shielded from reductions, while those mer member of the Kentucky House master tobacco settlement agreement found nondiligent will likely have of Representatives. between the four largest tobacco com- their tobacco settlement payments “I think if you travel the state, Daily Record Pickup.....$165 panies (at that time) and 46 states. reduced. if you go out on the rural roads of NPMs are expected by law to make Although Kentucky feels “like Kentucky, you’re going to see fence Daily Record Mailed .....$165 (plus escrow payments. we were diligent in our enforcement,” that wouldn’t be there; you’re going postage) The participating manufac- says Thomas, the arbitration panel to see cattle handling facilities that turers—which lost market share in judged otherwise, he said. wouldn’t be there (with the ADF),” 2003—blamed the loss on inadequate Friday Record Mailed ....$38.50 (plus Appreciation for the impact the said McKee. postage) enforcement of NPMs, according to a Kentucky Agricultural Development The committee also received Nov. 7 article on the issue on the web Fund has had on the state’s farms was testimony from Kentucky Agricul- site Law360. Participating manufac- Individual Record Pickup ...$2.75 voiced by Committee Co-Chair Sen. ture Commissioner James Comer, turers felt sales by nonparticipating Paul Hornback, R-Shelbyville. as well as subcommittee reports on companies had increased more than Individual Record Mailed ..$2.75 (plus “Without that foresight by those rural issues and horse farming from they should have because Kentucky postage) and the other alleged “nondiligent” of you who sat here and (developed) Subcommittee on Rural Issues Co- HB 611… I don’t think our agricul- Chair Sen. Stan Humphries, R-Cadiz, states did not adequately enforce Bills ture in this state would be nearly as and Subcommittee on Horse Farm- collections from the NPMs. Complete Set of Bills and Resolutions far along as it is,” he said. HB 611, ing Co-Chair Rep. Susan Westrom, To shield themselves financially, (Pick-up) passed by the 2000 Kentucky General D-Lexington. the participating manufacturers in- $630.00 voked what is called an “NPM adjust- Assembly, determined how agricul- Representatives from Kentucky ture would benefit from Kentucky’s Farm Bureau were also expected to ment” under law and withheld money Individual Bills from the settlement agreement. The $3 billion share of the 1998 tobacco testify, as were officials from AT&T Per Page ...$.05 adjustment, says the Law360 article, settlement. who were scheduled to speak on tele- allows participating manufacturers Fellow Committee Co-Chair communications and modernization. Amendments Energy, Per Page....$.05 from page 1 Roll Call Votes Rep. Leslie $.15 (per page) participate in the Kentucky Energy Combs, Efficiency Program, which provides D-Pikeville, at left, Publications information about potential energy talks with Rep. Fitz 1-10 copies .... Free (plus postage, if savings; the 2010 law “highly” en- Steele, D-Hazard, mailed) courages schools to meet, or exceed, at the Nov. 15 Copies over 10 .... ($1.00 per copy, efficient school design standards, and meeting. plus to consider building to “net zero” standards—where a building produces postage if mailed) as much (or more) energy as it con- sumes in a year. Administrative Regulations Grant County Schools Energy Bound Volumes.... $170.00 Manager Jon Nipple explained that Administrative Register....$96.00 most energy use at schools is from Volumes and Register .... $250.00 heating and cooling (50 percent) and lighting (25 percent). Geothermal en- Acts of the General Assembly ergy, carbon dioxide sensors that help lawmakers. “…(A building automa- $37,200. (on CD...$10) control when air is heated or cooled, tion system) is a timer, in a way, of The state currently has three net Regular Sessions ... Priced after and LED lighting are all considered conditioning just when you’re in the zero schools: Richardsville Elemen- printing best practices for school energy building.” tary, Turkey Foot Middle School in Special Sessions .... Priced after savings and are used by many energy Schools like Richardsville Ele- Kenton County, and Locust Trace printing efficient schools today, Nipple told mentary in Warren County that have AgriScience Farm in Fayette County. the subcommittee. Automated web- achieved the net zero standard can Richardsville Elementary was the first Journals based systems that control energy use reap considerable savings, according net zero school built in the U.S., said House and Senate Complete Set, when schools are unoccupied are also to Kentucky Department for Ener- Guess. House Set, Senate Set...all priced helpful, considering that schools are gy Development and Independence Other testimony received at the only used by students and teachers 1/4 after printing Efficiency and Conservation Director meeting included a report from the to 1/3 of the time, Nipple said.
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