Economic Development

USINESS OCUS BOFFICIAL PUBLICATION OF COMMERCE LEXINGTON INC. F JANUARY 2017 VOLUME XXV, ISSUE I

Presents Commerce Lexington Inc. Annual Dinner | January 26, 2017

INSIDE THIS ISSUE: Register for 2017 Leadership Visit to Minneapolis, Minnesota International Trip Takes Us to South Africa in 2017 Legislative Session Preview & 2017 Public Policy Statements

Association of Chamber of Commerce Executives 2016 Chamber of the Year www.CommerceLexington.com BUSINESS FOCUS

January 2017: Volume XXV, Issue I INSIDE THIS ISSUE

ECONOMIC DEVELOPMENT: 4-6 STAT: Lexington Again Among Most Educated Communities Association of Chamber of Commerce Executives CLX’s Greathouse Recognized at KAED Conference 2016 Chamber Region Showcased During Trips to Atlanta, Cincy & New York of the Year Recap of Lexington’s Global Entrepreneurship Week Business Focus is published once a month for a PUBLIC POLICY: total of 12 issues per year by Commerce 7 2017 Kentucky Legislative Session Kicks Off in January Lexington Inc., 330 East Main Street, Suite 100, Lexington, KY 40507. Phone: (859) 226-1600

EVENTS: 2017 Chair of the Board: @330 Series: Extraordinary Customer Relations Carla Blanton, Owner 8-10 Carla Blanton Consulting Blue Grass Airport Hosts Business Link Feb. 16th International Trip: South Africa | Aug. 31 - Sept. 8 Publisher: 27-28 KEMI Presents CLX Annual Dinner on January 26th Robert L. Quick, CCE, President & CEO Commerce Lexington Inc. Register Now for Leadership Visit to Minneapolis Editor: Mark E. Turner 2017 CLX POLICY STATEMENTS: Communications Specialist: Elizabeth Bennett Printing: Post Printing 11-26 Guiding Document of 2017 CLX Policy Statements Mail Service: SouthEast Printing & Mailing Service, LLC (2610 Palumbo Drive)

GET CONNECTED: Subscriptions are available for $12 and are 29-35 Winner’s Circle Volunteers Surpass Production Goal included as a direct benefit of Commerce Leadership Development Program Recaps Lexington Inc. membership. Business Focus Finalists for Ambassador of the Year Award (USPS 012-337) periodical postage paid at Lexington, Kentucky. Welcome New Commerce Lexington Inc. Members Member Personnel Announcements & Awards POSTMASTER: Send address corrections to Business Focus, Commerce Lexington Inc., P.O. Box 1968, Lexington, KY 40588-1968. WHAT 2 WATCH 4 Display Rates For DISPLAY RATES in Business Focus, contact Dana Zinger at (859) 226-1607 or [email protected], and an account executive will contact you. SAVE THE DATE: INTERNATIONAL TRIP: Personnel Updates Forcht Bank Presents 2017 South Africa Submit your company’s awards and milestones or Emerge Conference March 28th August 31 - September 8, 2017 personnel changes and additions to [email protected]. Personnel news might include promotions, additions, awards and milestones, recognitions and certifications and/or appointments. Information is published only as space permits.

Blue Grass Airport Hosts Jan. 10th @330 Series: Business Link February 16th Extraordinary Customer Relations for Business Success

2 BUSINESS FOCUS JANUARY 2017 2017 Board Chair: Education, Workforce Development Keys to Community Success

“I look forward to the opportunity to lead the Commerce Lexington Inc. Board of Directors in 2017. As a small business owner, I recognize the dual role the chamber has in nur- turing businesses of all types and sizes, as CARLA BLANTON well as working to COMMERCE LEX. enhance our commu- 2017 BOARD CHAIR nity’s quality of life. I believe that edu- OWNER CARLA BLANTON cation and workforce CONSULTING development form the foundation for a successful community and a thriving economy, and I pledge to continue the focus of 2016 Board Chair Alan Stein on key programs and initiatives in those areas. We must ensure that all students are prepared to enter the workforce and compete in an economy that is constantly evolving. The Business & Education Network (BEN), a subsidiary of Commerce Lexington Inc., and Fayette County Public Schools are working together with Ford Motor Company’s Next Generation Learning initiative to develop a more relevant college and career-ready experience for secondary school students through the creation of high school career academies. The initiative not only seeks to build stronger relationships among educators, employers and community leaders, but also to prepare students with skills specific to our industries and marketplace. In the fall of 2017, these learning academies will begin at Bryan Station and Frederick Douglass high schools in all grade levels, and at Tates Creek High School for the freshman class. Quality learning and training opportunities for all students and citizens are para- mount to the success of our community. They must have access to the right tools and resources like modern classrooms and equipment, but even more importantly, they must have our full support throughout the community. It’s not just a business imperative. It’s a moral imperative.

SEE “BOARD CHAIR’S MESSAGE” ON PAGE 15

JANUARY 2017 BUSINESS FOCUS 3 ECONOMIC DEVELOPMENT

A Collaborative Effort of the Bluegrass Business Development Partnership (BBDP):

SUBMITTED BY: Gina Greathouse, Hannah Crumrine, Kimberly Rossetti & Allison Boyd | CLX Economic Development Division Lexington, Louisville Mayors Announce BEAM Region’s Global Trade & Investment Plan In late November, Lexington Mayor Jim Gray and Louisville Mayor Greg Fischer unveiled the Bluegrass Economic Advancement Movement (BEAM) Global Trade & Investment Plan in collaboration with The Brookings Institution. Our team at Commerce Lexington is proud to be a part of the initiative and implement improved efforts to increase foreign direct investment within the BEAM region. Read the full report at www.locateinlexington.com/DATA-FACTS- FIGURES/Bluegrass-Economic-Advancement-Movement.aspx. LGC Expands Lexington Lab Facility On November 30, LGC cut the ribbon on its newly expanded labora- STAT: Census Shows Lexington’s tory in Lexington. LGC is an international life sciences measurement and Population Surpassing 314,000 testing company and one of the world’s premier independent drug sur- The most recent Census Bureau data puts Lexington’s population veillance laboratories. The laboratory, which provides international at 314,488 people, ranking Lexington the 61st largest city in the expertise in doping control for sports, has expanded as a result of the country. Lexington’s population has steadily grown over the past continued growth of their U.S. supplements business combined with the few years. On average, 3,500 people moved to Lexington every year anticipated expansion of its U.S. animal sports business. over the past five years, representing a population growth of 1.18 David Griffiths, Managing Director of LGC’s Laboratory and Managed percent every year. In total, over 17,700 people have moved to Services division, said, “Since 2010, LGC has positively contributed to Lexington since 2010, a population increase of 6 percent. Over the integrity and welfare in horse-racing in Kentucky and other US jurisdic- past ten years, Lexington’s population has grown by nearly 60,000 tions. LGC has more than 50 years of anti-doping experience and 175 people, or 23 percent. Lexington consistently receives praise as a years of high-quality analytical chemistry experience and we are delighted great place to work, live, and play, and the city’s increasing num- to open this expanded site and to showcase our continued growth and ber of residents support these accolades. Just this year, Lexington ongoing commitment to the Commonwealth of Kentucky.” has been ranked: #1 Best Large City for First Time Home Buyers, LGC is both ISO and Racing Medication Testing Consortium accred- #6 Best Run City by WalletHub, #22 City with the Best Job ited and has provided equine drug testing services at its Lexington labo- Opportunities in America by Niche, #30 Best City for Women in the Workforce by NerdWallet, and many others accolades! ratory since opening in 2010. LGC successfully performed the drug testing for the equine competitors in the 2012 and 2016 Olympic and Paralympic Games, and the Lexington facility has tested for such high- profile events as the Kentucky Derby and the 2011 and 2015 Breeders’ Cup - and continues to provide services to several racing jurisdictions in the U.S., the United Kingdom, and other global territories. As well as equine and animal anti-doping, LGC also delivers the world-renowned Informed-Sport and Informed-Choice programs – the only globally-recognized assurance programs for sports supplements. Lexington hit the trifecta with this company in terms of its economic development targets: life sciences, equine industry, and foreign direct investment! We are proud they call Lexington home. For more information about LGC, visit www.lgcgroup.com.

www.LocateinLexington.com | www.twitter.com/locateinlex | www.facebook.com/locateinlex

4 BUSINESS FOCUS JANUARY 2017

ECONOMIC DEVELOPMENT Economic Development Efforts Don’t End with a Company’s Relocation A&W Restaurants’ Growth Continues to Benefit Lexington and Central Kentucky A&W Restaurants, Inc. is celebrating the five-year anniversary of locating its global headquarters to Lexington. Commerce Lexington’s economic development division, in partnership with the Kentucky Cabinet for Economic Development and the City of Lexington, recruited the classic worldwide brand in late 2011. Recruiting headquarters is a strategic target for our economic development efforts within the business and professional services sector. Business recruitment is one element of economic development in Lexington. Business retention and expansion is an equally, if not greater, element. Once we recruit a business to Lexington, we want to maintain and cultivate our relationship with the company to assist them with the tools they need to be successful in Lexington. Since locating in 2011, our team has consistently worked with A&W on a variety of issues including public policy, grand opening, ribbon cuttings, and incentive support. In turn, A&W’s management team has been active in working with us on recruitment projects and other community Signing ceremony with Thailand partners. (Photos provided) initiatives. Kevin Bazner, CEO of A&W Restaurants, said, “We’ve appreciated investing over $1.9 million in the global operations. On the retail side, the support provided to us by the City of Lexington, Mayor Jim Gray, A&W has developed a new restaurant concept in Lexington – Burgers, and Commerce Lexington throughout our first five years as an inde- Chicken and Floats – and has invested over $2 million in restaurants pendent brand. Lexington has provided us a great talent pool to hire and equipment and hired over 80 restaurant-level employees. from, a vibrant community with diverse activities and entertainment, as A&W Restaurants also adds to our large international presence in well as a low cost of living to allow our company and people to thrive. Lexington. The headquarters and local training center attracts busi- We love calling Lexington ‘home,’ and we thank the community for its ness partners from all over the world, generating great visibility for support. Here’s to many more years!” Lexington, as well as a positive tourism impact. Recently, A&W offi- As Commerce Lexington Inc. cials held a signing ceremony here in Lexington with their partners President and CEO, Bob Quick, has from Thailand who are investing in 100 new restaurants. The success said before, “The relationship between of A&W is a great example of a company that ‘thinks global, but grows Commerce Lexington and a business local,’ which in turn strengthens Lexington and Central Kentucky. that relocates here doesn’t end with Commerce Lexington’s Executive Vice President of Economic the company’s opening. We remain in Development, Gina Greathouse, said, “In the same way that the A&W contact with the company to ensure brand has been built on exceptional customer service and product that they have all the resources avail- development, Lexington’s economic development success is also driv- able to help them evolve and expand en by how our team provides a quality experience for those companies when they’re ready.” looking to relocate or expand here.” The economic impact of A&W Congratulations to A&W Restaurants on its five-year anniversary in Restaurants’ presence in Lexington is Lexington. Our team has enjoyed a long relationship, and we are proud felt throughout the city. The headquar- that A&W calls Lexington home. ters operation employs over 30 people,

WEDNESDAY, FEBRUARY 22, 2017 | 4:00 - 6:00 P.M. | LOCATION TO BE DETERMINED Make Connections With Area Purchasing Professionals at Opportunity Exchange Commerce Lexington Inc.’s next Opportunity The cost to attend is $5 for Commerce Exchange on Wednesday, February 22, from 4:00 - Lexington Inc. members, and $10 for potential SILVER SPONSORS: 6:00 p.m. (location to be determined) will feature members. Please RSVP to Lauren Gross at Bluegrass Community & great networking and interaction for minority- [email protected]. Technical College owned and small businesses in the Lexington com- WUKY 91.3 FM munity. MBD PROGRAM SPONSORS: Several large companies and PRESENTED BY: Lexmark International, Inc. organizations will have purchasing GOLD LEVEL: Community Trust Bank; Cumberland professionals on hand. The fea- tured speaker will be P.G. Peeples, Valley National Bank; Toyota Motor Manufacturing, Sr., President of the Urban League Kentucky, Inc.; University of Kentucky of Lexington-Fayette County. Mr. SILVER LEVEL: LG&E & KU Peeples will discuss the role of edu- BRONZE LEVEL: Blue Grass Airport; Community cation in economic development. Ventures; Fayette County Public Schools; Fifth Third Bank.

6 BUSINESS FOCUS JANUARY 2017 PUBLIC POLICY Legislative Preview: Kentucky Lawmakers Return for 30-Day Session

Advocacy is an important function of ties. In public comments, GOP legislative lead- Commerce Lexington Inc. From taxes and reg- ers have said their agendas will be focused on ulation to health care and education to energy policies that make Kentucky more competitive and environmental issues, government impacts for jobs. Priority issues are anticipated to all aspects of business and economic develop- include: right-to-work, repeal of prevailing ment. Whether at City Hall, the State Capitol, or wage, tort reform, and charter schools. More in Washington, D.C., Commerce Lexington is complex and controversial issues like tax and proud to serve as an effective public policy voice pension reforms are expected to be addressed for our members and the Lexington business in a special session later in 2017. community. At the local level, Commerce Lexington will Throughout the year, Commerce Lexington’s continue to monitor regulatory, environmental Public Policy Council researches, analyzes and and other economic development issues, and discusses important policy issues from the per- engage in efforts to improve the education and spective of how legislation may impact the busi- workforce development systems. Commerce ness community, and then develops position Lexington is partnering with the Business and statements. The group is comprised of more Education Network (BEN) to identify current than 45 volunteer leaders who represent a and future workforce needs, and develop a plan cross-section of Commerce Lexington’s mem- to meet those needs through collaborative bership. The LEGISLATIVE FOCUS starting on community partnerships, such as the Ford page 11 of this issue details Commerce Next Generation Learning (NGL) initiative to Lexington’s issue positions, and serves to guide bring career academies to the public high the organization’s advocacy efforts at the local, schools in Fayette County. state and federal levels of government. Please Again this year, Commerce Lexington plans take a few minutes to review the 2017 to take a delegation of regional business and Legislative Focus to learn about the issues we community leaders to Washington, D.C., for a will be tracking on behalf of the business com- two-day Fly-In on July 12-13, 2017. The visit will munity. include meetings with members of the In January, state lawmakers return to Kentucky Congressional Delegation and their Frankfort for a 30-day legislative session. This “short session” is staffs to discuss the impact of federal policies on local businesses. unlimited in terms of the legislative matters that may be addressed, with one exception. Any bill that raises revenue or impacts the budget FOR MORE INFORMATION: must have a super-majority for passage in the off-year. If you have questions, need assistance with a policy issue, or would like The November election resulted in historic change for Kentucky. For to get involved with advocacy efforts, contact Andi Johnson, Chief the first time in nearly 100 years, Republicans will hold a majority in the Policy Officer, at [email protected] or (859) 226- State House of Representatives. In fact, one party now leads the 1614. Governor’s office, the State House and State Senate with super-majori-

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JANUARY 2017 BUSINESS FOCUS 7 EVENTS

TUESDAY, JANUARY 10, 2017 | 3:30 - 5:00 P.M. | COMMERCE LEXINGTON INC. (330 E. MAIN ST. - FIRST FLOOR CONFERENCE ROOM) @330 Series: Extraordinary Customer Relations For Business Success

Customers’ expectations of service PRESENTED BY: ABOUT THE SPEAKER: have increased dramatically over the Brian Simmons, SHRM-CP, PHR, is a years. It’s no longer acceptable to just Master Facilitator and Human deliver the core service or product as Resources Advisor with CMI a means of gaining customer loyalty. Consulting LLC, in Lexington. Mr. Organizations must deliver their serv- Simmons is a Certified Professional of ices in an extraordinary way in order Human Resources through the Society to receive and retain new, repeat and for Human Resources Management referred customers. Additionally, the (SHRM) and the Human Resources development and evolution of new BRIAN SIMMONS Certification Institute (HRCI) with communication and social media CMI more than 25 years of practical experi- platforms as customer service portals CONSULTING GOLD SPONSORS ence in generalist and specialty areas of present unique challenges that Human Resources at all organizational Melia Realty require dynamic customer interactions. SteinGroup, LLC levels. His subject matter expertise areas include During the next @330 Series event pre- employment law application, workplace violence TravelHost of the Bluegrass sented by Manpower of Central Kentucky on awareness and prevention, change management Tuesday, January 10, from 3:30 - 5:00 p.m. at strategies, training facilitation, associate and cus- Commerce Lexington’s first floor conference tomer relations, and communications coaching. room, Brian Simmons, SHRM-CP, PHR, of CMI Human Resources Consulting, will identify 4 things that all customers want and teach ABOUT @330 SERIES: specific behaviors that create Positive The @330 events provide a topical presentation Memorable Customer Experiences. This high that is relevant to the success of entrepreneurs, energy session, packed with simple but effec- business owners and business professionals. tive ideas, will offer a variety of new skills, They also allow members the opportunity to dis- models and techniques that will enable all cuss ideas, share best practices, and work employees to achieve the best possible cus- through challenges. tomer service results for your customers and your organization. TO REGISTER: The @330 events are open to Commerce Lexington Inc. members at no charge. However, please register for the events by contacting Liz Bennett at (859) 226-1615 or [email protected].

8 BUSINESS FOCUS JANUARY 2017 EVENTS

THURSDAY, FEBRUARY 16, 2017 | 4:30 - 6:30 P.M. | BLUE GRASS AIRPORT (4000 TERMINAL DRIVE) Land New Business Leads at Blue Grass Airport During Business Link Don’t miss the next Commerce Lexington Inc. EXHIBIT SPACE: SPONSORED BY: Business Link networking event, as Blue Limited exhibit space is available at this Grass Airport helps you land new business Business Link for Commerce Lexington Inc. leads and connect with colleagues and other members only. The cost to exhibit is $175. business professionals on Thursday, February Contact Liz Bennett at 16th, from 4:30-6:30 p.m. in the main terminal [email protected] to of the airport. As one of the nation's fastest reserve your exhibit space. growing airports, Blue Grass Airport continually updates amenities and facilities to provide passengers with the most modern and convenient services possible.

TO REGISTER: The cost to attend the Business Link event is $5 for Commerce Lexington members, $10 for non-members (payable at the door). Members of Lexington Forum can also attend for CLX member rate of $5 per person. You can also pre-register for Business Link events on-line at www.CommerceLexington.com. If registering online, pick up your beverage ticket at the registration table. PLEASE NOTE: NO REFUNDS WILL BE GIVEN FOR ONLINE REGISTRA- TIONS.

Junior Achievement is Nonprofit Spotlight at Next Business Link The next Commerce Lexington Inc. Business Link networking event on Feb. 16th at Blue Grass Airport from 4:30 - 6:30 p.m. will feature Junior Achievement of the Bluegrass as the Nonprofit Spotlight organization. Junior Achievement (JA) partners with volunteers from the community to teach elementary students about their roles as individuals, workers and consumers, and to prepare middle and high school students for key economic and workforce issues they will face. JA is currently transforming Linlee Elementary School into the new JA BizTown and JA Finance Park, which will enable students to experience a living lesson in economics, community and financial literacy. Find out more at www.junior achievement.org/web/ja-bluegrass.

JANUARY 2017 BUSINESS FOCUS 9 EVENTS

MARK YOUR CALENDARS! | INTERNATIONAL TRIP: AUGUST 31 - SEPTEMBER 8, 2017 Safari in South Africa During 2017 Commerce Lexington International Trip Commerce Lexington Inc. is pleased to continue its annual offering of Then, you’ll explore scenic Cape Town. This once colonial settlement a unique international travel opportunity for its members and the general is one of the world's most picturesque tourist destinations and most public. Commerce Lexington’s International Trip Series has taken groups beautiful cities. Snug between hilly mountains and pristine white beaches, to China, Cuba, Vietnam/Cambodia, Dubai, Croatia, and Sicily. In 2017, Cape Town is often called the cosmopolitan hub of Africa. CLX will be offering yet another attractive destination, which will enable travelers to take part in this popular group travel experience. Commerce Lexington Inc. is partnering with Central Holidays for a 10- REGISTRATION OPENS MID-JANUARY: Departing from Cincinnati/Northern Kentucky Airport, the cost for this day, 7-night trip to South Africa from August 31 to September 8, 2017. once-in-a-lifetime trip is $4,899 per person (double occupancy) for CLX Excite your inner adventurer in South Africa! Set out from Johannesburg members, $4,999 per person (double occupancy) for non-members and for safari in Pilanesberg National Park, one of Africa's leading game sanc- includes hotels, some meals, and airfare from Cincinnati, with an optional tuaries, which boasts some of the greatest species diversity in Africa - add-on visit to Victoria Falls for an additional $1,149 per person. Watch including the iconic Big Five (lion, elephant, leopard, buffalo and rhino). for more information on the itinerary and registration details at A 4x4 vehicle gives you nearly unlimited photo opportunities to snap pic- www.CommerceLexington.com and in future issues of Business Focus. tures of zebra, wildebeest, giraffe, wild dog and vast antelope herds.

10 BUSINESS FOCUS JANUARY 2017 LEGISLATIVE FOCUS 2017 PUBLIC POLICY STATEMENTS

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 11 COMMERCE LEXINGTON INC. REPRESENTING YOUR BUSINESS IN GOVERNMENT

Business leaders are often too busy attracting investments and Each year, we work with you – our members – to identify issues creating jobs to focus large amounts of time on monitoring leg- affecting the business community and spotlight the best public islation and regulations, analyzing their effect and advocating for policy solutions. Our strong working relationships with local, state their passage, defeat or modification. and federal officials mean that you will be well-represented and your voice will be magnified by the nearly 1,700 members on That’s why Commerce Lexington Inc. and its Public Policy Council whose behalf we speak. gather the top experts in a variety of industries, harness that knowledge, and advocate for the interests of business in the halls Please take a few moments to review this legislative agenda for of our State Capitol or the Lexington-Fayette Urban County Gov- Commerce Lexington Inc., as we work to help shape legislation ernment to create a more business-friendly environment. and regulations that will enhance the success of our children, our workforce and our job creators.

Public Policy Process What CLX Does For You: Commerce Lexington Inc.'s Public Policy Council is the bricks, mortar • Actively monitors all legislative activity from Urban County and labor that make the structure that is Commerce Lexington's Public Government, the Kentucky General Assembly and the U.S. Policy effort. The council members and chair are all volunteers and rep- House and Senate. resent a variety of non-profit, local government, large and small busi- • Extensive lobbying efforts for small and large businesses, nesses, education groups and utilities representing a broad spectrum non-profits and education groups at a local, state and federal of Commerce Lexington's members. The Council's Chair is appointed level. annually by the Chair of the Board of Commerce Lexington. • Extensive lobbying and monitoring of legislative and ordi- nance activity with the LFUCG Council and the Mayor's Of- The Public Policy Council meets monthly May through December and fice - a product only a local chamber can provide. establishes the agenda for Commerce Lexington for the upcoming ses- • Monitors all Kentucky Administrative Regulations and ac- sion. During these meetings, the Council hears from a variety of groups, tively participates in opposing regulations that negatively af- fects business. non-profits and businesses that want to join Commerce Lexington in • Monitors and participates in critical environmental activity advocating for their positions in Frankfort and Washington. including the EPA/LFUCG Consent Decree and air and water quality regulations at a local, state and federal level. After the Public Policy Council approves the policy statements, the po- • Participates in legislative and legal coalitions, submitting let- sitions are then approved by Commerce Lexington's Executive Board. ters, filing legal briefs, and testifying on behalf of business Once approved, the statements are published annually in Commerce with pending court cases or at committee meetings. Lexington Inc.'s “Legislative Focus.” Copies of the agenda are distrib- • Provides weekly e-mail updates during Legislative Sessions uted to all of Commerce Lexington Inc.'s members, all 138 members of to all Commerce Lexington Inc. members communicating the General Assembly and the Governor's Office. important bills and action that impacts the bottom line for area businesses. In the heat of a Legislative Session, there are always important and • Creates numerous networking opportunities throughout the timely legislative issues and bills that arise. When the Public Policy year for members to interact with our local, state and federal Council is asked to weigh-in on legislation, emergency meetings take delegation and their staff to communicate the needs of Cen- place for the Council to take up the legislation and create Commerce tral Kentucky Businesses. Lexington's position. The position is then presented to the Executive • Organizes an annual regional Washington Fly-In to present Board for approval if time allows. the needs and concerns of Central Kentucky's businesses to Washington.

For more information about CLX’s policy process, specific issues, or pieces of legislation, contact Andi Johnson, Chief Policy Officer & Director of Regional Engagement, at (859) 226-1614 or ajohnson@ commercelexington.com.

12 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS COMMERCE LEXINGTON INC. PUBLIC POLICY COUNCIL

Dennis Anderson Gina Greathouse David Owen Anderson Communities Commerce Lexington Inc. Dickinson Wright PLLC

Rusty Ashcraft Bart Hardin Stewart Perry Alliance Coal University of Kentucky Perry and Perry/State Farm Insurance

Kevin Atkins Chad Harpole Bob Quick City of Lexington Century Aluminum Commerce Lexington Inc.

Bob Babbage Andy Haymaker Bill Quigg Babbage CoFounder Haymaker Development Company More Than A Bakery

Kristin Baldwin Dr. Andrew Henderson Mary Quinn Ramer Kentucky Distillers Association Lexington Clinic VisitLEX

Carla Blanton Stephen Hillenmeyer Robert Riggs Carla Blanton Consulting Stephen Hillenmeyer Landscape Services Riggs Sales Service, Inc.

Tony Bonner Jay Ingle David Royse Dinsmore Jackson Kelly PLLC Ransdell, Roach & Royse

Patrick Brewer Todd Johnson Ed Saunier Lexmark International Homebuilders Association of Lexington North American Van Lines

Stuart Brown Jimmy Keeton Julie Schmidt Kentucky Thoroughbred Association Kentucky American Water Kentucky Educational Television

Brian Bruggeman Jason Keller Scott Smith KLH Engineers Charter Communications Smith Management Group

Steve Byars Eric Lycan David Switzer Money Watch Advisors Dinsmore Kentucky Thoroughbred Association

JD Chaney Mark Manual Judy Taylor Kentucky League of Cities Bluegrass Community & Technical College Keeneland Association

Rick Christman Doug Martin Darryl Thompson Employment Solutions R. Douglas Martin, Attorney-At-Law Fayette County Public Schools

Ben Crittenden Barry Mayfield Billy Van Pelt Morgan & Pottinger East Kentucky Power Cooperative Billy Van Pelt Consulting

Ray Daniels Herb Miller George Wallace LexiDan Foods Columbia Gas of Kentucky BB&T

Greg Dixon Chauncey Morris Ashli Watts SMART Recycling Management Kentucky Thoroughbred Association Kentucky Chamber of Commerce

Rob Edwards David Moss Ellen Williams UK HealthCare Kentucky Coal Association MMLK Government Solutions

David Freibert, POLICY COUNCIL CHAIR Rob Mudd Kentucky Utilities Co. Azur Restaurant & Catering

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 13 EDUCATION Commerce Lexington believes that education is one of the most important functions of state government and therefore urges policymakers to make education funding a top priority. Having a highly educated and capable workforce is essential to attracting new business and retaining existing business and industry. Increasing educational attainment at all levels enhances the social fabric, quality of life, and promotes economic opportunity for the community, as well as those looking to locate a business in the region.

WORKFORCE DEVELOPMENT

A skilled workforce is the number one concern for businesses in Central Kentucky.

Lack of a qualified workforce prevents business expansion, economic investments and job creation. It is important to develop a talent pipeline with the necessary technical and professional skills to meet the needs of employers, both today and into the future, for the region. Therefore, a top priority of Commerce Lex- ington through its partnership with the Business and Education Network (BEN) is to identify current and future workforce needs of the region, and to develop a strategic plan to address those needs through collaborative partnerships between stakeholders in the community

The federal and state workforce investment programs are important components to providing a highly skilled and educated workforce in Central Kentucky. Commerce Lexington supports aligning and improving existing training programs through local partnerships with employers, educators, administrators, community organizations and training providers to better meet skills gap needs of the business community. Commerce Lexington Commerce Lexington encourages lawmakers to review, and supports continued reforms to the workforce training system if needed, amend the existing policies to: that ensure funding is properly allocated to initiatives that demonstrate the best possible return on investment. Commerce • Strengthen collaborative partnerships among key local Lexington also supports reforms that track the success of the stakeholders, especially across area lines within the des- workforce training system and its participants for a period-of- ignated workforce planning regions. time even after they complete their workforce training program • Establish procurement guidelines for local workforce in- to help in determining the successful return on investment of vestment boards, Local Elected Official (LEO) board and the tax dollars. all contract parties to eliminate conflicts of interests. • Promote greater transparency and accountability over Federal legislation, such as The Workforce Innovation and Op- spending practices and program outcomes for local portunity Act (WIOA) passed the United States Congress in July workforce investment boards, Local Elected Official 2014, has taken positive steps toward strengthening workforce (LEO) board and all contract parties training efforts by streamlining programs, reducing burdensome • Require additional mandatory training on roles and re- mandates, providing greater state flexibility, promoting skills sponsibilities of workforce investment boards and Local training for in-demand jobs, and pushing for increased account- Elected Officials. ability and transparency over the use of taxpayer dollars. How- ever, additional steps need to be taken at the state and local level to ensure federal and state training dollars are being used efficiently and effectively to meet the needs of local employers.

14 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS EDUCATION Adult Education Quality Education Investments Commerce Lexington fully supports the development of effective Commerce Lexington urges policymakers to make education funding a public/private partnerships focused on addressing adult education and top priority in the budget process. We support quality investments in retraining needs. We support priority investments that address the our children’s education and oppose using local school district’s reserve unique needs of adults who need to gain literacy and math skills, a GED funds to balance the State Level General Fund. Commerce Lexington and workforce skills simultaneously by: fully supports all investments in early childhood education including quality preschool and an equitable, full-day kindergarten program statewide • Identifying adult education needs. to achieve school readiness. Commerce Lexington supports the General • Actively encouraging individuals to participate in adult education Assembly increasing the number of school days closer to the national av- and literacy programs. erage of 180 days, and the international average of 193 days. Commerce • Taking deliberate steps to provide easier access to available pro- Lexington opposes the state mandating a local school districts calendar. grams. • Supporting the full funding of the Kentucky Skills Network and Commerce Lexington fully supports the lifelong educational program- adding more flexibility for eligible adults. ming and work KET delivers to schools and the public. Through technology, KET provides access, equity, and quality educational resources focused on student achievement and teacher preparedness. In addition, Fayette County Public Schools KET plays a key role in assisting Kentuckians with less than a high school Commerce Lexington is encouraged by and supports the development education with receiving their GED. of a Novice Reduction Plan to guide the improvement efforts of Fayette County Public Schools (FCPS) over the next five years to enhance student achievement. The business community is committed to working with Support Implementation of College FCPS in efforts aimed at closing the achievement gap by reducing the number of students scoring at the novice level, and making FCPS a top and Career Readiness Programs 10 school district in Kentucky. Commerce Lexington continues to support the education initiatives established by SB 1 (2009) including a mandate for the Kentucky Council Driven by the action plans of over 100 strategies and activities identified on Postsecondary Education (CPE), the Kentucky Board of Education within the Blueprint for Student Success: Achieving Educational Excellence (KBE), and the Kentucky Department of Education (KDE) to develop a and Equity for All, the Novice Reduction Plan will continue to focus the unified strategy to reduce college remediation rates of recent high school district on key strategic priority areas: Standards, Curriculum, and In- graduates and to increase the college completion rates of students en- struction; Learning, Culture, and Environment; and, Continuous Im- rolled in one or more remedial classes by three percent annually. provement, and Assessment that will be regularly monitored and reflected in district budget planning in order to achieve the ultimate mis- Commerce Lexington supports four key strategies to promote college and sion of creating a collaborative community that ensures all students career readiness and degree completion: achieve at high levels and graduate prepared to excel in a global society. • Accelerated Learning Opportunities focused on the expansion of AP/IB access and dual credit opportunities. Creating & Maintaining School Leaders • Secondary Intervention Programs focused on the development of Commerce Lexington fully supports all efforts that help increase student transitional coursework. achievement through training for well-prepared school superintendents, • College and Career Readiness Advising focused on the full imple- principals, teachers and other instructional staff. Superintendents must mentation of the Individual Learning Plan and comprehensive ad- have the authority to make or participate in critical personnel decisions vising programs. in schools; particularly, in persistently low performing schools. Basic lead- • Postsecondary College Persistence and Degree Completion focused ership skills and ongoing professional development are critical leadership on bridge programming, accelerated learning opportunities, and stu- attributes for principals to become effective leaders within our schools dent support and intervention systems. statewide. Teachers must be held accountable for instructional strategies and practices that yield student achievement results in the classroom We must look at competitive pay for our teachers, including innovative forms Family & Community Engagement of differentiated compensation which would reward teachers based on Family and community engagement is a critical component to academic performance and the achievement levels of students. achievement. Recognizing that not all children have an effective adult advocate, Commerce Lexington backs innovative approaches to facilitate collaboration toward common goals such as the efforts of the One Com- Support Common Core State Standards munity, One Voice Achievement and Closing the Gap Community Com- Commerce Lexington supports the implementation of Common Core mittee. Their inclusive efforts to identify measurable goals and State Standards (CCSS) to promote college and career readiness. The accountability strategies will help move the Fayette County Public School standards are designed to be robust and relevant to the real world, re- district towards closing the achievement gap by reducing the number of flecting the knowledge and skills that our young people need for success students scoring at the novice level among all students, while raising in college and careers. With Kentucky students fully prepared for the fu- overall student achievement. ture, our communities will be best positioned to compete successfully in the global economy.

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 15 EDUCATION STEM Critical to Compete Financial Literacy Commerce Lexington supports legislative and local district efforts to in- Commerce Lexington supports the inclusion of “Financial Literacy” ed- crease graduates in the Science Technology Engineering and Mathematics ucation in Central Kentucky’s school classrooms. This training can be (STEM) disciplines to meet the ever-growing needs of employers. Com- achieved through traditional curriculum development or through private- merce Lexington believes Kentucky students should be challenged at all ed- public initiatives such as Junior Achievement of the Bluegrass partner- ucational levels and provided the instruction they need to succeed in the ship with the Fayette County Public Schools. Financial literacy programs new global economy. Improving academic achievement of all students can introduce students to important life skills and concepts such as budget- be done by encouraging rigorous and relevant courses and experiences. ing, banking, understanding the difference between debit and credit Critical to Kentucky’s ability to compete in the global economy is a commit- cards, using credit responsibly and financial planning, as well as investment to increasing the focus on STEM in our schools through learning op- ments such as stocks, bonds and other securities. In addition to provid- portunities that provide enrichments and exposures in aviation and ing students with a skill set essential for a successful future, Commerce aeronautics; agriculture, and related agri-science; computer and informa- Lexington believes that financial literacy education in our schools is im- tional sciences; health care, biotechnology and biomedical sciences to name perative to training a future workforce that is an attractive local resource a few. Commerce Lexington also supports utilization of secondary career for new business and economic development. and technical education programs comprised of project-based learning to further this goal. An increased focus on STEM disciplines, however, does not mean the exclusion of arts and social sciences curricula.

POSTSECONDARY EDUCATION University of Kentucky The Commonwealth of Kentucky recognized in 1997 that states with Top 20 public research universities have healthier, more prosperous citizens. Commerce Lexington recognizes the role that UK plays in education, health care and economic development for Lexington and all of Kentucky. Commerce Lexington encourages the Governor and General Assembly to support the Performance Funding model agreement reached by the working group consisting of members of the executive branch, the legislative branch, and the universities.

• In the last five years, UK initiated or approved some $2.1 billion in capital investments to improve student success, instruction, research and discovery, and health care. Approximately 91 percent of that investment is the result of public-private partnerships, philan- thropy, strategic use of university resources, and support from UK Athletics. • UK welcomed successive record-setting, freshmen classes that have joined the UK family and moved total enrollment past 30,700. These students are succeeding at higher levels, translating to record de- KCTCS/BCTC: Enhance Technical gree attainment, including more than 6,600 degrees conferred over the last academic year. Skills Training • Faculty and staff researchers added to a growing portfolio of trans- The Kentucky Community and Technical College System (KCTCS) is the formative research, discovery, and creative scholarship. In fiscal year largest provider of higher education, online education and workforce 2015-16, UK received $316.5 million in external research grants and training in the Commonwealth. KCTCS/Bluegrass Community and Tech- contracts – signifying that UK is a major player among research in- nical College (BCTC) has the lowest tuition of any postsecondary insti- stitutions in the country and directly impacting the economy of cen- tution in Kentucky and is dedicated to a vision of a well-trained workforce tral Kentucky. in central Kentucky and the entire Commonwealth. To achieve this goal, • UK HealthCare continues to meet the needs of patients and families KCTCS has aligned its strategic plan with several state agencies and or- who require complex, quality health care through its network of ganizations and is working with local employers to ensure the curriculum providers and state-of-the-art academic medical center. Annual pa- at BCTC and the other 15 colleges meets local needs. tient discharges have grown by more than 95 percent since 2003 and over 6,000 jobs have been created - all with no state appropria- Many Central Kentuckians need access to skills training including incum- tions to UK Healthcare. bent workers, those seeking jobs or updated skills, and high school stu- • In total, UK’s work yields a 12-fold return on the Commonwealth’s dents planning for careers. Commerce Lexington supports KCTCS and investment in its flagship university. UK’s research enterprise has a BCTC which serves the Central Kentucky region in their efforts to work more than $580 million impact on Kentucky’s economy. More than with local businesses to enhance technical skills training and “work two-thirds of graduates are employed in Kentucky after graduation. ready” employees. Additionally, Commerce Lexington believes it is critical that high school students who choose the technical training career path have access to grants and other financial assistance.

16 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS HEALTH CARE Monitor Implementation of Federal Health Care Reform Effectively Combat Drug and Commerce Lexington believes that both business owners and employers Substance Abuse should have the opportunity to provide for themselves and their employ- Commerce Lexington acknowledges the need to address Kentucky’s drug ees quality affordable health insurance available from the private market, abuse problem, and will continue to support legislative efforts to curb not government. However, the Patient Protection and Affordable Care this epidemic through a comprehensive approach aimed at prevention, Act (PPACA) passed by Congress created a great deal of uncertainty for treatment and penalty reforms. Both private and public sector leaders employers. Commerce Lexington remains concerned that employers that realize the negative effect of drug and substance abuse on their employ- have previously provided voluntary health insurance coverage for their ees and citizens particularly in terms of increased health care costs, loss employees will now face mandated levels of health insurance coverage of workforce productivity and fiscal impact of incarceration. According as well as increased taxes, premiums penalties. Therefore, Commerce to the Kentucky Office of Drug Control Policy, lost productivity, health Lexington is committed to monitoring the implementation of the PPACA, care costs and drug-related crimes associated with illegal drug abuse and upcoming repeal and replace debates. Commerce Lexington will con- cost the commonwealth $2.5 to $3.6 billion annually. tinue to provide input to our federal and state policymakers to ensure that employers can provide quality affordable health insurance coverage The severity of prescription drug abuse, as well as heroin and other illegal to their employees without being continually overburdened with federal street drugs continues to be a high priority issue for Commerce Lexing- regulations and penalties. ton. We applaud efforts of the Kentucky General Assembly for past legislative efforts to curb drug abuse and increase treatment options. We encourage legislators to continue to address the illness of addiction by Monitor Medicaid Expansion expanding prevention and treatment capacities in the Commonwealth. Kentucky expanded Medicaid eligibility by executive order to persons with annual incomes up to 138 percent of the federal poverty level ($27,310 for a family of three) beginning in January 2014. The federal government will pay 100 percent of the state’s additional cost for the expansion through 2016. However, the state is required to begin paying 5 percent of the costs beginning in 2017, rising in steps each year to 10 percent in Increase the Number of Health 2020. Original projections of the number of Kentuckians who would be Care Professionals in Kentucky eligible for Medicaid under the expansion have proven to be substantially Many areas of Kentucky are underserved by health care professionals, low. Originally, the Kentucky Cabinet for Health and Family Services es- which contribute to poor access and higher medical costs for our citizens. timated 164,000 additional Kentuckians would be eligible under the Med- Commerce Lexington encourages lawmakers to initiate programs and icaid expansion in FY 2014, and that number would grow to more than funding or support policies that encourage medical professionals to serve 209,000 by 2017 and beyond. Currently, there are more than 443,000 Ken- both the rural and inter-city areas which may appear less desirable. tuckians enrolled in Medicaid under the expansion.

The cost of the Medicaid expansion in the recently enacted 2016-2018 Reduce Smoking Kentucky continuously leads the nation in adult smoking rates as well as state budget is $74 million in FY 17 and $173 million in FY 18 for a total rates among pregnant women, and is second among high school and of $247 million over the biennium. These costs are estimated to rise to middle school students. The smoking related loss of economic produc- more than $500 million in the next biennium. To address these growing tivity is over $2 billion dollars annually in Kentucky alone. Commerce costs, the Governor has submitted a waiver request to the federal De- Lexington fully supports raising Kentucky’s cigarette tax to be more in- partment of Health and Human Services to allow Kentucky to make sev- line with the national average. Additionally, initiatives should be imple- eral changes to the Medicaid program, including the imposition of mented to reduce smoking among Kentucky Medicaid patients. monthly premiums and a community service requirement for selected populations. Commerce Lexington will monitor the progress of the proposed waiver by the Governor and commends the administration for Health & Wellness Programs tackling the challenges of Kentucky’s Medicaid program. Commerce Lexington supports legislation that provides tax credits and incentives to employers for creating health and wellness programs for Commerce Lexington supports efforts to improve access to healthcare, their employees. Kentucky’s population consistently ranks near the top create a sustainable Medicaid program, while protecting critical state in- of the list among the states for overall poor health indicators. Poor health vestments in education and other vital programs. The Governor’s pro- among Kentuckians is a drain on the state’s resources, leading to in- posal has initiated an important public dialogue on this issue, and creased health care costs for employers and employees, as well as leading Commerce Lexington encourages members of the business community to increased utilization of health care services among the state’s Medi- to share their views about the best way forward. caid recipients. Health and wellness programs offer employers the opportunity to address the culture of poor health in the Commonwealth by promoting preventive health care as well as educating and encouraging Medical Malpractice healthy lifestyles among their employees. Health and wellness programs Commerce Lexington will support effective measures to address the es- often serve as an effective health care cost containment measure and calating costs of health care and medical malpractice insurance for health serve to promote personal responsibility among employees for their own providers, which has contributed to higher health care costs, higher health outcomes. Commerce Lexington will continue to support pro- health insurance premiums, and continues to create the potential for re- grams and policies that incentivize companies to educate and promote duced access to care. health and wellness for their employees.

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 17 COMPETITIVENESS Commerce Lexington believes that people are the driving force of business. Productivity and creativity dictate the success of individual businesses and therefore our economy as a whole. Public policy options should be about creating and sustaining an environment that encourages maximum flexibility to reward excellence and encourage innovation in human resource management. Policies that tend to foster one-size-fits-all approaches, or that intentionally or unintentionally create “us vs. them” environments in the workplace are not conducive to businesses’ goal of excellent employee relations and communications.

Right-to-Work Employer | Labor Union Commerce Lexington believes every worker is both capable of, and enti- Maintaining the time-tested balance between labor unions and employ- tled to, making his or her own determination regarding union member- ers is critical to economic growth and continued job creation. The Na- ship. The decision not to affiliate with a labor union should be no less tional Labor Relations Board (NLRB) has undertaken an aggressive deserving of protection than the freedom to affiliate with a union. Com- pro-union agenda that threatens jobs and economic growth. Issues of merce Lexington urges the Kentucky General Assembly to support Right concern include blacklisting, card check, secure electronic voting, release to Work legislation to prohibit requiring any worker to join a union as a of personal employee information, persuader rule, employee poster rule, condition of employment. ambush election rule, micro union decision, joint-employer standard and others. Public/Private Partnerships Commerce Lexington supports the use of public/private partnerships Commerce Lexington is committed to defending the rights of businesses (P3) by local and state government agencies for the delivery of services and their employees and strongly encourages federal and state officials and/or the construction and/or management of a variety of infrastructure to fight changes to our labor law system that undermine employer-em- related projects. To ensure accountability in contracting with private en- ployee relations. tities, it is essential that proper safeguards be in place to ensure transparency and that quality services are delivered at a lower cost to We urge the support for labor laws that: taxpayers. • Maintain a balance of representation on the NLRB properly vetted and ratified through Congress to hear the facts from all parties in rendering fact based decisions. Public Employee Pension Systems • Do not upend years of carefully balanced labor laws, whether The recent downgrading of Kentucky's bond rating indicates the financial through Congress or regulation promulgated by the NLRB. market has concerns about Kentucky's financial viability, specifically the • Protect secret ballot elections to form unions. underfunded public pension systems. Commerce Lexington applauds • Maintain functional grouping of business units that do not pit “sub” the General Assembly for taking significant steps in 2013 with the hybrid or “micro” units against each other in organizing efforts (micro plan reforms for new employees to address funding issues, including the unions). authorization of a compromise proposal reached by Lexington city offi- • Maintain a company’s ability to educate employees on the conse- cials, police and fire representatives. quences of unionization. • Do not include binding arbitration provisions. Commerce Lexington strongly urges the General Assembly to continue • Do not impose one-sided penalties. progress toward the goal of establishing equitable retirement and health insurance benefits for new hires that more closely resemble those available in the private sector. Commerce Lexington supports a comprehen- Prevailing Wage sive review of all public employee pension systems, including the Commerce Lexington supports legislation to repeal mandatory prevail- Kentucky Teachers Retirement System, and related benefits and encour- ing wage in the Commonwealth. The result would be reduced costs and ages state legislators to consider other serious structural changes to all increased capacity for public works, benefiting employers, employees systems to assure funding pensions does not cripple state government’s and taxpayers alike. At a minimum, prevailing wage requirements ability to provide essential services. should be eliminated for the construction of schools and other educational facilities. Commerce Lexington will continue to monitor reform implementation with emphasis on assuring no benefit increases without full funding and the inclusion of actuarial required contributions in the state budget. Com- Public Employee Collective Bargaining merce Lexington discourages lawmakers from using bonding to address Commerce Lexington strongly opposes public employee collective bar- shortfalls in state pension funds, which could jeopardize the state’s fi- gaining. Public employees are afforded significant benefits, job protec- nancial stability for future generations. tions, and established rank and pay scales – and the adjustment or alteration of them are decisions that can currently be made as a matter Government Efficiency of public policy. Commerce Lexington supports the need for government modernization and increased efficiency. Commerce Lexington will continue to urge the General Assembly to focus on spending reforms across government including the areas of public employee health benefits, the public employee pension system, corrections and Medicaid.

18 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS COMPETITIVENESS

Safer Workplaces Immigration Commerce Lexington supports allowing employers to share factual and Commerce Lexington supports a comprehensive immigration reform documented information about past employees, without subjecting package which includes modernizations to the guest worker program themselves to undue liability, when providing references to inquiring em- which addresses the needs of all Kentucky's work places. ployers during the hiring process. We also support legislation to allow employers to help fight illegal drug use in the workplace. Commerce Lex- ington opposes any expansion in the current concealed/carry laws that Criminal Justice System Reforms would allow employees to bring deadly weapons into the workplace. Kentucky made important progress with the enactment of corrections reform legislation in 2011 and juvenile justice code reforms in 2014 to protect public safety while establishing a system to control spiraling Wage Mandates corrections. Commerce Lexington also applauds the Governor and Gen- Commerce Lexington supports government efforts to find balanced, long- eral Assembly for the passage of limited felony expungement legislation term solutions to the problems confronted by our community. We do in 2016 to help workers limited by a past mistake advance in the work- not support private sector wage mandates that exceed state or federal force. guidelines. Commerce Lexington will continue to monitor, and support when appropriate, this important work moving forward through the leadership of the Unemployment Insurance Trust Fund Kentucky Smart on Crime coalition, which is focused on reducing recidi- Commerce Lexington believes that the integrity of the unemployment in- vism, making communities safer, increasing our workforce and saving surance trust fund should be maintained and opposes efforts to utilize taxpayer dollars. the fund in ways that are contrary to its original purpose of providing unemployment insurance to temporarily displaced workers. Revision of Statute of Limitations Law Commerce Lexington was among several employer groups that sup- Commerce Lexington recognizes Kentucky's five-year time-period on em- ported the reforms to the state’s unemployment insurance system during ployee wrongful termination or discrimination lawsuits places an undue the 2010 special session, and the effort to address repaying the interest requirement on employers. Commerce Lexington supports changes to on the loans to the federal government during the 2012 session of the Kentucky’s statute that would make all employment discharge and dis- Kentucky General Assembly. Commerce Lexington will continue to mon- crimination type actions more uniform with federal guidelines while still itor the implementation of the reforms to the state’s UI System. protecting employees and employers. Workers’ Compensation Malt Beverage Industry Regulation Commerce Lexington supports a workers’ compensation statute that of- Commerce Lexington supports the maintenance of a strong and inde- fers clear and objective definitions of injury and disability, uses objective pendent system for the sale, distribution and regulation of malt beverages medical findings of impairment for awards, continues the reduction of that has been in place since prohibition. Such a system promotes the lo- litigation, and encourages retraining and education, to return to work at cally owned and operated businesses, the preservation of jobs, strong a different position at a comparable rate, while abating growing costs for community reinvestment, and the ability of all large and small brewers central Kentucky employers. Commerce Lexington supports any legisla- to deliver their products to the market and ultimately the consumer. tive or regulatory measure that will help control Kentucky’s rising medical and prescription drug costs in workers’ compensation cases without dis- rupting needed services to injured workers.

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 19 ECONOMIC DEVELOPMENT

Commerce Lexington fully supports the development of new incentives to help Kentucky’s businesses grow and prosper in today’s global economy. We support new strategies to increase jobs by attracting companies to Kentucky. We advocate a regional approach to economic development planning and problem solving. We work closely with local governments and community organizations across Central Kentucky to develop a common vision for the prosperity of our region. Although not a substitute for comprehensive tax reform, Commerce Lexington supports strategic investments in incentive programs designed to encourage the growth of high wage jobs, long-term investment in strategically defined industry sectors, small business promotion, or other significant economic development projects that demonstrate a clear return on investment and would not otherwise occur without the incentive. Commerce Lexington urges lawmakers to continue to support, and in some cases, consider enhancements to the state incentive programs promoting business growth and job creation, such as the Kentucky Business Investment program (KBI), Kentucky Enterprise Initiative Act (KEIA), Kentucky Reinvestment Act (KRA), Kentucky Investment Fund Act (KIFA), SBIR/STTR matching program, and the Kentucky Skills Network workforce training programs.

Service and Technology Retention Entrepreneurial Incentives Commerce Lexington supports initiatives that encourage the continued Tax Credits development of the knowledge-based economy in Central Kentucky. We Other states are aggressively pursuing Kentucky companies to relocate support policies that facilitate the development and retention of high using various tax incentive and cash-based programs. Kentucky cannot af- tech manufacturing and biotechnology investments in our region and ford to lose additional jobs to other states; therefore, Commerce Lexington specifically encourage additional research and development and technol- supports a modification of the Kentucky Reinvestment Act (KRA) to include ogy transfer activity in Central Kentucky. Commerce Lexington will be an service and technology firms in addition to manufacturing firms within the advocate for public/private partnerships that move ideas to theory, theory KRA program in order to retain service and technology jobs in the Com- to applied research, and applied research to developed commercial ap- monwealth. Commerce Lexington supports linking the tax credits directly plication. To help provide additional financial support enabling such busi- to job retention, and would support implementing minimum requirements ness activity to occur, Commerce Lexington supports the development for companies to meet before the tax incentives become available. of seed capital funds that focus on Central Kentucky investments and the promotion of innovative central Kentucky companies to existing venture capital firms. Commerce Lexington encourages the federal government R&D Investment Incentives to continue the Small Business Innovation Research (SBIR)/ Small Busi- American corporations focus their research and development activities on ness Technology Transfer (STTR) and for Kentucky to continue funding the development of new products, processes, and services while relying the state’s match program for these start-up companies. Commerce Lex- on research universities to do basic scientific research. In order to supple- ington also supports the Commonwealth's continued funding of the Ken- ment basic research investment by federal agencies, Commerce Lexington tucky Innovation and the Kentucky Angel Investors Networks. supports the establishment of federal and state tax incentives to encourage corporations to make cash investments or endowment gifts to research departments or proof of concept centers of public research universities. Telecommunications Infrastructure Incentives should also be in place to encourage corporations to make in- Making investments in critical infrastructure such as roads, bridges, vestments in high tech, high risk start up technology companies. water and rail will continue to be important to our state’s economic growth. However, future economic development and job creation will also depend on developing a robust telecommunications infrastructure. Bluegrass Business Development Our competitor states have shown that modernizing telecommunication Partnership infrastructure better enables providers to efficiently allocate available re- Established in 2007, Commerce Lexington continues to support its part- sources. Commerce Lexington’s economic development team frequently nership between the Lexington-Fayette Urban County Government, the hears from high tech companies operating in Central Kentucky about the University of Kentucky and the Kentucky Small Business Development need for increased access to affordable, high speed broadband technolo- Center to encourage economic development, investment and job growth gies. Modernizing Kentucky’s telecommunication infrastructure will help in Central Kentucky. Since its inception the Bluegrass Business Devel- meet the growing market demands for advanced broadband technologies opment Partnership has been a one-stop shop for the economic devel- for businesses both large and small. opment needs of its clients. This program has served over 15,482 clients and announced the creation of 12,864 new jobs and over $1,708,510,785 Commerce Lexington supports modernizing telecommunication infra- in capital investment. structure to spur critical investments in new broadband technologies, enhance economic development, attract jobs, and improve communication services for residents and business – while keeping in the place pro- tections for reliable voice services to all residents.

20 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS ECONOMIC DEVELOPMENT Enhancing Regional Transportation Kentucky’s Distilling Industry Kentucky’s legendary distilling Infrastructure industry has a significant impact Commerce Lexington supports substantial and sustained investment in on the state’s economy, produc- Kentucky’s transportation infrastructure – including highways, bridges, ing 95% of the world’s bourbon waterways, public transit, railways, and aviation. Having a dependable and contributing $3 billion in transportation network is critical to Central Kentucky’s economic vitality. gross state product while gener- Thriving communities must be able to move workers, provide services ating $166 million a year in tax and transport products to market quickly and safely. Commerce Lexing- revenue. The Chamber strongly ton fully supports a regional transportation approach, including supporting supports initiatives to protect the Ohio River Bridge projects in Northern Kentucky, Louisville and Western and grow the iconic industry. For Kentucky (I-69), the U.S. 27 to I-75 Connector in Jessamine County and the Kentucky to maintain its domi- Newtown Pike Extension in Lexington. nance in the distilling industry and attract new distilleries, the General As- sembly must update the tourism and hospitality statues written before the Kentucky Bourbon Trail® was created to take advantage of the booming Transportation Funding Bourbon tourism industry. Maintaining adequate funding for transportation infrastructure remains an issue of concern at both the state and federal levels of government. Commerce Lexington urges lawmakers to find long-term solutions to en- Condemnation sure sufficient, sustainable and reliable funding for all modes of transporta- Commerce Lexington is opposed to government acquisition of privately owned tion for projects critical to economic development. Commerce Lexington businesses through condemnation for the purpose of operating the business. also supports state and federal transportation funding for rural and urban transit agencies to allow for improvements in direct operations; new service delivery methods for all areas including target population group such as Tourism Development seniors, low-income workers and people with disabilities. The tourism industry is an important component of an overall economic development strategy. Commerce Lexington supports initiatives and incentives designed to enhance the state’s tourism and agri-tourism in- Central Kentucky’s Equine Industry dustry’s positive impact through the promotion of events and the Thousands of acres of horse farms, world class venues such as promotion of Lexington as a tourism and agri-tourism destination. Com- Keeneland and the Kentucky Horse Park, and many horse related organ- merce Lexington also supports efforts to attract the media and film in- izations’ national headquarters including the United States Equestrian dustry to the Bluegrass, while working to ensure that efforts that might Federation, earn Kentucky the title of Horse Capital of the World. Because undermine tourism’s economic impact are minimized. of the substantial economic impact the equine industry has on our region as well as the state, Commerce Lexington fully supports programs and initiatives to protect and enhance the future growth of the equine indus- Lexington Downtown Development try. These programs include wagering on historical horse racing, inno- Commerce Lexington supports the mission of the Lexington Downtown vative tax approaches, purse increases, increased funding for breeder Development Authority to enhance the relationship between the down- incentive programs, appropriate funding to maintain the quality of the town area and surrounding neighborhoods and to attract more residents Kentucky Horse Park, and other assistance to allow the equine industry and business downtown, resulting in more citizens living and working in to remain competitive. downtown.

Since its inception, wagering on historical horse racing has provided a Commerce Lexington supports downtown development projects such as positive economic impact to communities in which these venues are lo- the Lexington Convention Center, Town Branch Commons and restoring cated, the Commonwealth and the equine industry. We encourage all and preserving the old Fayette County Courthouse and encourages re- branches of state government to support this new product that is creating sponsible business planning for downtown development projects to min- jobs, attracting tourists and supporting existing programs to help the imize future taxpayer subsidized annual operational expenses. equine industry. The current taxing model provides revenue to the state Commerce Lexington fully supports programs designed to increase the but any increase in those taxes has the potential to not only deter growth access and amount of public art throughout the entire community. in the product but to cause the product to become unsustainable from an economic perspective. Free Trade International trade in goods and services accounts for nearly a third of Kentucky’s sales tax on equine products puts the country’s GDP. Kentucky has established itself as a major exporter our region & state at a disadvantage. in a broad range of industries - from manufacturing to agriculture, as well as an attractive location for foreign investments. More than 3,200 Kentucky’s sales tax on equine products puts our region and the Com- Kentucky companies now sell products overseas. Over 76 percent of monwealth at a disadvantage with competitor states. Commerce Lex- these businesses are small- and medium-sized enterprises accounting ington supports efforts to eliminate this competitive disadvantage. for nearly $15 billion in annual export sales. These exports directly sup- Commerce Lexington also supports the equine industry’s efforts to ad- port 90,000 jobs in Kentucky, with tens of thousands more indirectly sup- dress the health, welfare and safety of the thoroughbred racing industry ported by exports. Commerce Lexington urges elected officials to as well as other equestrian sports. support free trade agreements that open new markets and create new opportunities for businesses and workers in our region.

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 21 ENERGY AND ENVIRONMENT

PROTECT KENTUCKY’S ENERGY ECONOMY

Commerce Lexington urges local, state and federal officials to support urges Congress and the Trump Administration to take appropriate action efforts to maintain the production of affordable, reliable energy for busi- that would either substantially modify or repeal the provisions of the ness and residents. Kentucky’s abundant supply of coal has provided the Clean Power Plan. If fully implemented, these regulations on emissions state with some of the lowest electricity rates in the nation – a definite from electricity generating facilities that use coal, and new regulations competitive advantage in the creation and retention of jobs in all sectors. on Kentucky’s mining industry could increase Kentucky's electricity rates significantly within the next five years and serve to destabilize Kentucky’s However, federal regulations imposed by the U.S. EPA or other agencies economic base. have and could continue to disproportionately affect Kentucky’s economy. Commerce Lexington urges all public officials – both appointed and Commerce Lexington urges local, state and federal officials to call for an elected – to collectively oppose any legislation, and consider modifica- implementation delay of rules where legal challenges are ongoing until tions to, or the repeal of regulations, that would serve to increase the the courts complete their review of the cases and during any subsequent state’s electricity and natural gas rates at an accelerated pace and place appeals. Recent U.S. Supreme Court actions on the Mercury and Air Tox- Kentucky’s businesses at an economic disadvantage in the global mar- ics rule, which included remanding the case to a lower court for further ketplace. review, exemplify the challenges a regulated industry faces when forced to comply with a rule before the legal scrutiny is complete. Costly and ex- Commerce Lexington will continue to monitor the implementation of the cessive regulations, such as those impacting electric utilities, require sig- proposed rule changes to section 111 (b) and 111 (d) of the Clean Air nificant investment that cannot be refunded to the ratepayers when a rule Act, and advocate for efforts at the state and federal levels to mitigate is vacated. the impact on Kentucky employers and families. Commerce Lexington

vestment in the infrastructure, production and use of oil and natural gas Support the Coal Industry through the maintenance of a balanced state regulatory framework. Com- Commerce Lexington supports protect- merce Kentucky believes that through cooperation and coordination being the viability of Kentucky’s coal in- tween the industry, state government and associated stakeholders, broad dustry – including preserving the direct consensus can be reached on the issues and challenges facing the oil and and indirect jobs that the industry pro- gas industry, and once that consensus is reached, deserves broad support. vides statewide. Since 2011, Eastern In addition, pending and future governmental and industry regulations Kentucky has lost more than 9,000 di- could significantly impact the cost of natural gas service to Kentucky con- rect coal mining jobs which equates to sumers. While Commerce Lexington supports the need to repair and re- 38 percent of the workforce. The esti- place aging pipeline infrastructure, consideration should be given to how mated number of coal jobs in Kentucky and when costs are made and the impact to customers served by natural is now the lowest number since 1898. gas utilities. For every one direct coal mining job lost, three other indirect jobs are also Commerce Lexington supports financial and infrastructure incentives to lost, which brings the total of job losses help stimulate adoption of natural gas transportation fuels to ensure that to more than 27,000 since 2011. With natural gas is readily available for economic development. Central Kentucky coal mining selected for enhanced review or increased scrutiny, coal miners could benefit from increased use of compressed natural gas (CNG) or liq- have found themselves working in an unfair playing field compared to the uefied natural gas (LNG) motor transportation fuels such as those used for rest of the country. Commerce Lexington will continue to support efforts in-state and inter-state trucking fleets, waste haulers, delivery and repair ve- to push back against the U.S. EPA to ensure coal remains an integral part hicles, and personal cars and trucks. With the growing availability and low of our country’s energy portfolio, and there is a level playing field for all low- cost of natural gas, traditional diesel engines cost approximately 30-40 per- cost fuel sources to secure low electricity rates in Kentucky. cent more per gallon to operate than do natural gas engines. Similar savings can be realized when switching from gasoline to natural gas. The Commerce Lexington advocates for the stoppage of the Office of Surface advantages Kentucky would gain are a lower carbon footprint from natural Mining’s (OSM) Stream Protection Rule, which creates conflicts with exist- gas compared to gasoline and diesel fuels, as well as millions of dollars ing state and federal regulatory laws. This rule (developed without any Con- saved in fuel cost in the years ahead. Additionally, increased demand for gressional oversight) could ban certain types of mining in the coal fields natural gas vehicles and readily available natural gas service infrastructure further exacerbating job losses, negative impacts on local economies and will lead to more reliance on natural gas produced within the U.S., one of the potential for increased electricity rates. our nation's cleanest, most reliable, and most available sources of energy. Natural Gas as Reliable Energy Source To stay competitive and to ensure that natural gas is readily available to support economic development growth, Kentucky must also continue to develop all reliable and affordable energy resources including natural gas. Kentucky’s oil and natural gas industry total value of production is over $1 billion and employs over 9,000 Kentuckians. This industry will continue to play an increasingly important role in meeting the states’ energy needs of the future. Therefore, Commerce Lexington supports encouraging the in-

22 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS ENERGY AND ENVIRONMENT

Commerce Lexington Inc. also supports legislative efforts to: • Provide incentives for the research and implementation of • Support the consideration of nuclear power plants to encour- clean-coal investments and other alternative energy age market-based energy production. State law prevents con- processes. struction of nuclear power plants until there is a means of • Provide tax credits or equivalents for carbon capture and dis- disposal of high-level nuclear waste approved by the U.S. gov- posal by companies. ernment. An approved facility has not been identified by the • Support increased funding for research, development and use U.S. government, so nuclear power plants in the U.S. store of new technologies to reduce emissions, particularly carbon spent fuel on-site. Kentucky's current prohibition on storage dioxide (CO2). in effect prohibits nuclear power as an option. Commerce • Support research grants and other incentives for our state’s Lexington strongly encourages the federal government to postsecondary institutions and private sector companies to identify an approved repository for high-level nuclear waste develop technology and infrastructure needed for alternative disposal but also accepts on-site storage of spent fuel as a fuels and energy such as landfill gas, biomass, wind, hydro temporary solution to inaction by the federal government. and solar, anaerobic digestion or compressed natural gas. • Protect our energy rates from overbearing federal regulations, fuel mandates and tax policy changes that will raise rates and neutralize Kentucky's competitive energy prices.

Promote a Sensible Regulatory Approach Commerce Lexington supports the efforts of the state’s Energy and En- vironment Cabinet to protect the citizens of the Commonwealth through a fair and consistent non-discriminatory regulatory process that ensures both the health and welfare of the public as well as the economic viability of the state’s private sector workforce. Commerce Lexington opposes efforts at a local and state level to be more stringent than federal regulations or policies. Commerce Lexington continues to oppose U.S. EPA’s attempts to over- Track New Sanitary Sewer and step its regulatory oversight role and impose an extraordinary number of federal mandates that will undoubtedly have a significant negative impact Storm Water Permits and Fees on the business community. U.S. EPA should not be permitted to cir- Commerce Lexington will continue to engage local and state officials to en- cumvent its own federal rulemaking process to establish new overly strin- sure that requirements of new sewer and water permits are not too restric- gent regulatory policies or standards that will adversely impact every tive and do not exceed state or federal regulations and that the plan and the citizen, business, agency and economy in the state. Commerce Lexington implementation schedule is feasible and cost effective. We also will con- urges Congress to review environmental regulations and to take steps to tinue to educate members about the impact of the new permits. streamline processes or enact regulations to clarify or make consistent with current statutes. We also advocate for the minimization of the use of guidance documents in management of U.S. EPA programs. Com- Air Quality Rules & Regulations merce Lexington supports the use of a waiver of fines for Notice of Vio- Commerce Lexington will engage local and state officials regarding the de- lation (NOV) first time offenders and placing reasonable time limits on velopment of the state’s carbon plan and other air quality standards to en- punitive action following the issuance of NOVs by state agencies. sure these regulations are not too restrictive, have the least cost impact on business, and protect Kentucky’s low cost energy rates. Commerce Lexing- ton will continue to engage with local workgroups to review air quality rules Storm Water/Sanitary Sewer & and regulations, educate our members, explore strategies and make rec- Consent Decree Implementation ommendations as federal, state and local policies are developed. Commerce Lexington will continue to monitor implementation processes to ensure the LFUCG’s plan to meet EPA requirements is completed in Support Energy Efficiency Measures a timely and cost effective manner. We support periodic, independent Across the nation, companies – including those in Central Kentucky – are performance reviews/audits to ensure taxpayer dollars are being used ef- taking positive measures to make their operations more energy efficient, ficiently by local government throughout project implementation. which has led to a reduction in carbon emissions. Commerce Lexington supports voluntary energy management programs, pollution controls and pollution prevention programs because they are good for the environment and financially good for business. Commerce Lexington supports incentives for companies that go above and beyond their regulatory requirements, and recognizing companies who have already implemented positive best management practices to reduce their energy consumption.

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 23 ENERGY AND ENVIRONMENT Water Quality Rules & Regulations Commerce Lexington supports a process where the General Assembly must review and approve any changes to new General Permits being proposed by state agencies. We also support legislative review for Total Maximum Daily Loads (TMDLs) and other water quality related requirements on our streams developed by the state or U.S. EPA. Commerce Lexington Inc. urges Commerce Lexington urges Congress to take appropriate action that would either substantially modify or repeal the Waters of the U.S. Congress to either substantially modify (WOTUS) Rule. Furthermore, Commerce Lexington urges Congress and or repeal the Waters of the U.S. Rule. the Trump Administration to take action that would modify the Clean Water Act (CWA) to clarify Congressional Intent and define Waters of The United States.

We believe the proposed WOTUS Rule exceeds the scope of federal power under the Cl CWA and goes well beyond what is reasonable regulation. The rule redefines the process for how a water is determined to be subject to regulation in such broad terms that almost any area could be included. This rule will cause confusion and uncertainty in the busi- Solid Waste ness community and could adversely impact economic development due The management of solid waste is a local responsibility and existing law al- to unreasonable regulations and permitting. lows local governments the necessary flexibility to develop a solid waste disposal strategy unique to the needs and expectations of their individual communities. Commerce Lexington urges enhanced enforcement and ed- Central Kentucky Water Supply and ucation to address illegal dumping and littering. We support programs such as Eastern Kentucky PRIDE and Bluegrass PRIDE (Bluegrass Green- Infrastructure source) that encourage and assist citizens, local governments and schools Commerce Lexington supports an efficient, equitable and sufficient water to clean up illegal trash dumps and other solid waste problems as well as supply for the entire region. Commerce Lexington supports investments promoting environmental awareness and education. Education remains a in maintenance and upgrades on the lock and dam systems of the Ken- critical component in changing the habits and attitudes of individuals across tucky River to enhance and conserve our region’s primary water supply, Kentucky. We also support programs that educate Kentuckians on the ben- as well as appropriate, ongoing investments in other water system infra- efits of recycling, programs that make recycling more convenient, and strate- structure to maintain quality, reliable water service for communities. gies that develop and enhance market demand for recycled materials. Commerce Lexington also supports interconnectivity agreements among Commerce Lexington believes that this type of multi-faceted strategy will municipalities throughout Central Kentucky. have a more significant, long-term impact in addressing the need for Ken- tucky to embrace recycling. Land Use Planning Commerce Lexington opposes statewide, prescriptive attempts to shape Kentucky’s solid waste statutes are contradictory and some are currently local land use and development contrary to community established needs out of step with some of EPA’s recent regulations. Commerce Lexington and priorities. Commerce Lexington believes it is imperative for regional supports a review of Kentucky’s solid waste statutes and a reasonable, communities to voluntarily collaborate and coordinate regional planning thoughtful update to provide clear direction to the regulated community. efforts related to natural resources, housing, utilities, economic development and transportation. Environmental Streamlining Implementation of infrastructure projects is critical for community devel- Commerce Lexington encourages communities to develop comprehensive opment. Often these public projects are subject to requirements for review plans that balance the need for housing and economic development while of environmental impacts in accordance with the federal National Environ- protecting agriculture industries and natural resources. Affordability of mental Policy Act. Although such impacts can and should be considered, housing is not just an issue for low income central Kentuckians; availability the process for evaluation of, and challenges to, infrastructure projects on and affordability of housing is an issue of concern for expanding and relo- that basis must be streamlined to assure that important public infrastruc- cating companies. As we plan for continued growth and development, we ture projects are not victims of procedural maneuvering and unnecessary must evaluate the impact each decision has on our ability to develop and delay. maintain housing options within the reach of all our citizens. Commerce Lexington strongly supports the use of Brownfield Redevelop- Commerce Lexington supports legislative efforts that: ment in communities through the use of the Voluntary Environmental Re- • Require concurrent review of documents. mediation Program (VERP) and Kentucky’s Bonafide Purchaser Program • Require full disclosure of funding from those either for or against a which reduces liability for future property owners. These programs should particular issue. be expanded to allow tax incentives, low interest loans or grants or other • Recognize the need to restore balance to the process of public need federal and state matching funds for those committed to redeveloping the and environmental stewardship. state’s Brownfield sites.

24 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS TAX AND REGULATORY POLICY

Commerce Lexington recognizes that in an increasingly competitive global marketplace, promoting long-term economic development and job growth must be a top priority when revenue options are being considered. Tax and regulatory policy at all levels of government must be guided by a well-researched, balanced approach that provides for necessary public investments and expenditures, while avoiding policies that could serve as disin- centives to economic growth and private sector employment and investment. State and local tax code changes should recognize and encourage long-term future growth, and provide sufficient revenue options so that local governments are able to tailor their tax policy to local conditions. Commerce Lexington encourages lawmakers to monitor the impact of Kentucky’s tax code on the private sector and to take action when necessary to ensure Kentucky remains competitive with its surrounding states.

Comprehensive Tax Reform Unfunded Mandates/Affordable Solutions As the Kentucky General Assembly contemplates comprehensive tax reform, Commerce Lexington opposes unfunded mandates trickling down from Commerce Lexington strongly urges lawmakers to evaluate existing tax poli- federal and state agencies that impact local governments without regard cies and proposed changes by using the following criteria: to the affordability of the mandates, and the ability of a local community, its businesses and taxpayers to absorb the costs. Commerce Lexington • Effective: Tax policies should be reviewed to determine their intended will advocate for regulatory reform efforts at all levels of government to ad- or unintended consequences. Tax laws proving contrary to their intention dress the problems associated with unfunded regulatory mandates. or more burdensome than intended should be repealed or scaled back. • Competitive: Tax policy should promote a positive climate that encour- These efforts should include, but not be limited to the following: ages business investment and job growth. • Revenue Sensitive: Tax policy should provide sufficient revenues over- • Agencies should be asked to demonstrate the economic impact to all to fund critical priorities. businesses and local communities of implementing new regulations. • Predictable: Sources of tax revenue should be relatively predictable and • Consent Decrees or other legal or administrative requirements should stable over time. take into account and publicly demonstrate the ability of local govern- • Equitable: Tax policy should be fair but must not discourage economic ments, quasi-governmental agencies, schools and businesses ability activity, employment, or wage growth. to afford the alternatives demanded by the state and/or EPA. • Efficient: Any tax policy must be designed to facilitate cost efficient • These financial analyses should be conducted by people with experi- compliance and administration. ence in developing financial impacts before the solution is finalized. • If it is determined that the entity cannot reasonably afford the solution required by the state or federal agency, then the state should be re- Comprehensive Regulatory Review quired to assist the entity in developing an alternate financial plan. and Reform Commerce Lexington urges federal, state and local governments to consider Local Option Sales Tax a comprehensive review of the regulations, taxes and fees impacting busi- Commerce Lexington supports an amendment to the Kentucky Consti- nesses to determine areas where these policies could be modified, reduced, tution, and enabling legislation, that would permit cities and counties, streamlined or eliminated to improve government efficiency and create a including urban county governments, to enact a local option sales tax, more business friendly environment for Lexington and Kentucky. Commerce not to exceed one percent with a sunset provision. The tax would be for Lexington urges federal, state and local governments to look at any agency funding dedicated to specific local projects, as proposed by the local gov- fee increase or regulatory change carefully and examine the fee increases ernment and approved by voter referendum. based on need, rate of inflation and economic impact on business. No fee or regulations with significant fiscal impact on business should be increased without the clear approval from the appropriate federal, state or local legisla- Alcohol Taxes tive body with oversight authority. We encourage sensitivity at the local and As part of comprehensive tax reform, Commerce Lexington believes Ken- state level to regulations that are more stringent than federal regulations that tucky must examine the manner inwhich the state taxes distilled spirits, hurt Kentucky’s economic competitiveness, and urge local or state legislative beer and wine. Kentucky has one of the Top 5 tax rates on alcohol sales in approval of any regulation that deviates significantly or is more stringent than the US, higher than all contiguous states except Tennessee. The Kentucky federal guidelines. Commerce Lexington supports the Governor’s Red Tape General Assembly should consider rolling back the wholesale tax on alco- Reduction Initiative and will continue to encourage businesses to provide hol sales in order to make the Commonwealth’s distilled spirit and alco- feedback to the Bevin administration on regulations that need to be modified holic beverage industry more competitive with surrounding states. or eliminated to make Kentucky more business-friendly. Commerce Lexington also strongly urges the Kentucky federal delegation to Revise the Limited Liability Entity Tax support commonsense regulatory reform that restores accountability, trans- Commerce Lexington supported the 2006 Tax Modernization by the Gen- parency and public participation in the federal rule making process. This in- eral Assembly. However, the creation of the Limited Liability Entity Tax cludes support The REINS Act, aimed at improving Congressional oversight (LLET) and the lack of ability to offset pass-through credits against tax of federal agencies and requires Congress to approve every new “major” rule on income from other businesses and other years have become prob- that has an annual economic impact of $100 million or more proposed by lematic. Commerce Lexington supports efforts to adjust the tax code to the Executive Branch before it can be enforced on the American people. encourage entrepreneurial investment in the Commonwealth.

LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS 25 YOUR GOVERNMENT FEDERAL GOVERNMENT STATE GOVERNMENT

U.S. SENATOR MITCH McCONNELL KENTUCKY GOVERNOR MATT BEVIN SENATE MAJORITY LEADER 700 Capitol Avenue, Suite 100, Frankfort, KY 40601 771 Corporate Dr., Suite 108, Lexington, KY 40503 Phone: (502) 564-2611 Phone: (859) 224-8286 Fax: (502) 564-2517 317 Russell Senate Office Bldg., Wash., DC 20510 Web: http://governor.ky.gov Phone: (202) 224-2541 Web: http://www.mcconnell.senate.gov LIEUTENANT GOVERNOR JENEAN HAMPTON U.S. CONGRESSMAN ANDY BARR (6th District) 700 Capitol Avenue, Suite 142, Frankfort, KY 40601 2709 Old Rosebud Road, Lexington, KY 40509 Phone: (502) 564-2611 Phone: (859) 219-1366 Fax: (502) 564-2849 1432 Longworth HOB, Washington, D.C. 20515 Web: http://ltgovernor.ky.gov Phone: (202) 225-4706 Web: http://barr.house.gov

U.S. SENATOR RAND PAUL Kentucky Senate (Fayette) 771 Corporate Dr., Suite 105, Lexington, KY 40503 Sen. Ralph Alvarado (R-28) Sen. Alice Forgy Kerr (R-12) Phone: (859) 219-2239 3250 McClure Road 3274 Gondola Drive 167 Russell Senate Office Bldg., Wash., DC 20510 Winchester, KY 40391 Lexington, KY 40513 Phone: (202) 224-4343 Phone: (502) 564-8100, Ext. 681 Phone: (502) 564-8100, Ext. 625 Web: http://www.paul.senate.gov Sen. Tom Buford (R-22) Sen. Reginald Thomas (D-13) 409 W. Maple Sreet 702 Capitol Ave., Annex Room 255 Nicholasville, KY 40356 Frankfort KY 40601 LOCAL GOVERNMENT Phone: (502) 564-8100, Ext. 610 Phone: (502) 564-8100, Ext. 608 Sen. Jared Carpenter (R-34) LEXINGTON MAYOR JIM GRAY P.O. Box 100, Berea, KY 40403 Lexington-Fayette Urban Co. Government Center Phone: (502) 564-8100, Ext. 730 200 East Main Street, Lexington, KY 40507 Phone: (859) 258-3100 E-Mail: [email protected] KY House of Representatives (Fayette) Web: www.lexingtonky.gov Rep. Robert Benvenuti III (R-88) Rep. Russ Meyer (D-39) 2384 Abbeywood Road 106 Lone Oak Drive Lexington, KY 40515 Nicholasville, KY 40356 Lexington-Fayette Urban Co. Council Phone:(502) 564-8100, Ext. 628 Phone: (502) 564-8100, Ext. 623 Council Office, 5th Floor 5TH DISTRICT Rep. George Brown, Jr. (D-77) Rep. Sannie Overly (D-72) 200 E. Main St. Lexington, 40507 Bill Farmer, Jr. 424 E Fourth St 340 Main Street Phone: (859) 258-3200 Lexington, KY 40508 Paris, KY 40361 [email protected] 6TH DISTRICT Phone: (502) 564-8100, Ext. 620 Phone: (502) 564-2217 Angela Evans AT-LARGE COUNCIL MEMBERS: Rep. Kelly Flood (D-75) Rep. Ruth Ann Palumbo (D-76) Vice Mayor Steve Kay 7TH DISTRICT 121 Arcadia Park 10 Deepwood Drive Kevin Stinnett Jennifer Scutchfield Lexington, KY 40503 Lexington, KY 40505 Richard Moloney Phone: (502) 564-8100 Ext. 675 Phone: (502) 564-8100, Ext. 600 8TH DISTRICT 1ST DISTRICT Fred Brown Rep. James Kay (D-56) Rep. Phillip Pratt (R-62) James Brown P.O. Box 1536 Newly Elected in November 2016 9TH DISTRICT Versailles, KY 40383 2ND DISTRICT Jennifer Mossotti Phone: (502) 564-8100, Ext. 736 Rep. Susan Westrom (D-79) Sasha Love Higgins P. O. Box 22778 10TH DISTRICT Rep. Stan Lee (R-45) Lexington, KY 40522 3RD DISTRICT Amanda Mays Bledsoe P.O. Box 2090 Phone: (502) 564-8100, Ext. 740 Jake Gibbs Lexington, KY 40588 11TH DISTRICT Phone: (502) 564-4334 4TH DISTRICT Peggy Henson Susan Lamb 12TH DISTRICT To find out more about the Kentucky Legislature, Kathy Plomin including pending legislation, current laws, and meeting schedules, visit www.lrc.state.ky.us. 26 LEGISLATIVE FOCUS: 2017 PUBLIC POLICY STATEMENTS EVENTS

THURSDAY, JANUARY 26, 2017 | 5:00 - 8:30 P.M. | LEXINGTON CENTER’S BLUEGRASS BALLROOM KEMI Presents Commerce Lexington Inc. Annual Dinner on January 26th Commerce Lexington Inc.’s 2017 Annual Dinner Distinguished Leader Awards from our entitled “HERE’S OUR PROOF” presented by Leadership Lexington youth and adult programs. PRESENTED BY: Kentucky Employers’ Mutual Insurance will be held on Thursday, January 26, at Lexington Center’s TO REGISTER: Bluegrass Ballroom. The pre-dinner reception is The cost to attend the 2017 Commerce Lexington scheduled from 5:00-6:30 p.m., while dinner and Inc. Annual Dinner is $95 per person, or $950 per the program will run from 6:30-8:30 p.m. table of ten. To register, visit on-line at Join us for great networking, good food, and www.CommerceLexington.com. ® a little business, as we take a look back at 2016 and highlight the organization’s focus for 2017. We’ll also present several awards, including the Ambassador of the Year, Volunteer of the Year, Public Policy Advocate of the Year, and our

PLATINUM SPONSORS Community Trust Bank Keeneland Association, Inc. Kentucky Utilities Co. PNC Bank EVENT DESIGN SPONSOR: KentuckyOne Health - Saint Joseph Hospital, Saint Joseph East RECEPTION SPONSOR: Bingham Greenebaum Doll LLP VIDEO SPONSOR: Toyota Motor Manufacturing, Kentucky, Inc.

JANUARY 2017 BUSINESS FOCUS 27 EVENTS

Photo Courtesy of Meet Minneapolis.

June 7 - 9, 2017

PRESENTED BY: Register Now for Leadership Visit to Minneapolis Commerce Lexington Inc. is pleased to With one of the highest concentrations of cor- announce that the 2017 Leadership Visit presented porate headquarters in a major metro area, along by the McBrayer Law Firm, will take us to with its research institutions, the Twin Cities area Minneapolis, Minnesota, June 7-9, 2017. As the has a cosmopolitan spirit, vibrant international 16th-largest metro area in the United States, the community, and a broad range of cultural institu- PLATINUM SPONSORS: Minneapolis region includes 11 counties and is tions. The region is home to 11,600 foreign stu- Baptist Health Lexington anchored by three thriving urban centers – dents, and the University of Minnesota-Twin Cities Central Bank & Trust Co. Minneapolis, Saint Paul and Bloomington – known is the most popular destination. Recent U.S. Kentucky Community & collectively as the Twin Cities. The region is one of Census data showed that more than 1.2 million the most economically diverse and culturally vital residents in the Greater Minneapolis area are from Technical College System in the country. It is home to more than 3 million a different state or country. Kentucky Utilities Company people, 19 Fortune 500 companies, and thousands Commerce Lexington Inc. Board Chair-Elect, MCM CPA's & Advisors of pristine lakes. Its reputation for innovation is Carla Blanton, said, “This is an exciting opportunity Stites & Harbison, PLLC legendary, and its workforce is one of the best edu- to learn how Minneapolis/St. Paul has harnessed WesBanco cated in the country. and leveraged the power of innovation and educa- Windstream Communications Like Lexington, Minneapolis ranks very high tion to create economic opportunity and an out- nationally in percentage of its population with a standing quality of life.” OPENING NIGHT RECEPTION SPONSOR: bachelor’s degree or higher. Its labor force has Commerce Lexington Inc.’s annual Leadership Kentucky One Health, Saint Joseph grown by nearly 2.0% over the last five years Visit is thought to be the largest intercity visit of its Hospital & Saint Joseph East (almost twice the national average) and is expected kind nationally among chambers of commerce and to keep growing by 5.6% until 2030. The unem- economic development agencies. You won’t want ployment rate is historically among the lowest in to miss this premier networking and community- GOLD SPONSOR: KLH Engineers, PSC the nation. building trip June 7-9, 2017. Specific study areas Minneapolis has been recognized as a top for next year’s trip will be outlined soon. BRIEFING BOOK SPONSOR: knowledge-based, globalized, entrepreneurial, J.J.B. Hilliard, W. L. Lyons, LLC information technology-driven and innovation- TO REGISTER: based economy. The region has been ranked Registration is now available for the 2017 Leadership NAMETAG SPONSOR: among the top areas for business, young profes- Visit to Minneapolis, Minnesota, on-line at Wyatt, Tarrant & Combs, LLP sionals, working mothers, bicyclists, and health www.commercelexington.com/leadership-visit.html. and fitness, where the American Fitness Index For questions, contact Katie Hardwick at khard- showed Minneapolis is leading the way with a vari- [email protected]. ety of indicators like access to parks, walking paths and farmers’ markets.

28 BUSINESS FOCUS JANUARY 2017 CONNECT

Winner’s Circle top producers for 2016. Winner’s Circle Volunteers Surpass Production Goal for 14th Straight Year For the 14th consecutive year, volunteers in Commerce Lexington During the Victory Luncheon, 2016 Winner’s Circle Chair Luther Inc.’s annual total resource development program called The Winner’s Deaton (Central Bank & Trust) praised the volunteers and thanked the Circle surpassed its fundraising production goal. Board members, volun- CEO’s and senior officials of the corporate teams, who graciously allow teers, past Winner’s Circle Chairs, and CLX staff celebrated their success their employees to participate in the program. Top individual producers with a Victory Luncheon hosted by the Griffin Gate Marriott Resort & as of the Victory event included Abby Vaughn, Teresa Haggard (Kentucky Spa. American Water/Windstream Communications team), and Cheryl The Winner’s Circle program enlists the help of around 90 volunteers Eadens (Ambassadors team). from throughout the community, who seek to bring in new members, Top producing teams at press time were Kentucky American renewals and membership upgrades, while informing existing members Water/Windstream Communications, Central Bank & Trust, and the of services and marketing opportunities available through Commerce University of Kentucky. Watch for a more detailed recap in the February Lexington Inc. This year’s goal of $900,000 was the highest in the history issue of Business Focus magazine. of the program, and at press time, volunteers had raised $908,144.

Stay Connected & Interact: Commerce Lexington Inc. Social Media Guide Commerce Lexington Inc. recognizes that business owners and business Commerce Lexington Inc. members are permitted to post items about professionals live busy lives. That’s why we have so many different ways their business to our social media channels. Review the list on this page to keep connected to the events, programs, and services that help you to see where you would like to connect. If you missed an event, such as succeed. Social media is an effective way to promote your company or our Public Policy Luncheons, Good Morning Bluegrass series events, or organization and engage your customers. Here are some of the places a number of other events, you can review most on our YouTube channel you can keep up with Commerce Lexington Inc. on social media. at www.youtube.com/commlexingtonky.

www.instagram.com/CommerceLex www.youtube.com/commlexingtonky There are over 250 video clips and full events posted on our YouTube channel. There are also plenty of video clips promoting Lexington and our region, which you www.facebook.com/groups/CommerceLexington can post or embed on your own web site. www.facebook.com/LocateInLex www.facebook.com/clmbd Commerce Lexington Inc. has more than 2,500 members on its www.linkedin.com/company/commerce-lexington Facebook group page. You can also follow www.facebook.com/ www.linkedin.com/groups/Commerce-Lexington-Inc-3937103 LocateInLex for news on expansions and relocations, as well as our If you’re on LinkedIn, you can join the 1,100-plus people in our Minority Business Development division. LinkedIn group and post your own business-related items.

www.commercelexington.com/clx-blog www.twitter.com/CommerceLex http://news.locateinlexington.com www.twitter.com/LocateInLex Stay up-to-date on Commerce Lexington Inc. news, policy deci- Join the more than 10,000 people who follow Commerce sions, and legislative activity on our Blog, and learn more about Lexington Inc. on Twitter for the latest news as it happens. Lexington’s demographics and other key economic statistics from our research director on the LocateInLexington.com Blog.

JANUARY 2017 BUSINESS FOCUS 29 CONNECT

Leadership Central Kentucky Talks Politics in Frankfort, Franklin County

2016-17 CLASS PRESENTED BY:

PLATINUM SPONSOR:

Excerpts of Article by Alexis Witherspoon, Brian Traugott of Versailles (Woodford County). GOLD SPONSOR: Keeneland Association, Inc. After lunch at the trendy Bourbon on Main, we visited the Kentucky State Capitol. LCK class mem- Keeneland The November session of Leadership Central Kentucky (LCK) was themed “Government and bers toured the building, including both the House and Senate chambers as well as the Kentucky SILVER SPONSORS: Public Policy Day.” The class visited Franklin County and the Commonwealth’s state capital, Frankfort. Supreme Court. We were greeted by several mem- Ale-8-One Our morning began with a visit to the Kentucky bers of the current Kentucky legislature including Kentucky Bank Chamber of Commerce, where we learned its mis- House Reps. Michael Meredith and Derrick Graham sion is to represent its 62,000 business members and Senate Majority Whip Jimmy Higdon. LCK also BREAKFAST SPONSOR: and advocate for state policies that directly impact heard from Deputy Attorney General J. Michael them. In 2015, the Chamber developed four pillars Brown from the Kentucky Attorney General’s office. Kentucky Chamber of prosperity: a healthy, skilled workforce, sustain- Lastly, we took a tour of Buffalo Trace, the oldest of Commerce able state government, 21st century infrastructure, continuously operating distillery in the U.S. Our and aggressive job creation. tour guide, Freddie Johnson, was a third-generation DAY SPONSOR: Next, LCK visited the Kentucky League of Cities employee whose family has worked alongside the (KLC), a 64-member board in an eight-area region. owners since the mid-20th Century. Kentucky Employees It represents 390 of the 419 cities in the Credit Union Commonwealth of Kentucky. The purpose of KLC is Read This Full Recap at to review policy and legislation that impact cities. www.LeadershipCentralKentucky.com While visiting KLC, the class also spoke to Mayor

Commerce Lexington’s Mobile App Keeps You Connected On The Go Mobile technology is here to stay, and Commerce DOWNLOAD THE FREE APP: Lexington Inc. (CLX) has embraced this method of - Go to the App Store or Google Play communication not only to add visibility for its members, but to also provide an easy way to keep up with - Text lexington CLX2Go to 80802, OR current CLX events, community events, local news, - Scan this QR code with your mobile device. programs, and your favorite businesses while you're on the go! Commerce Lexington Inc.’s CLX2Go mobile app is available FREE for download in the iTunes App Store and Google Play. EVERY COMMERCE LEXINGTON MEMBER has their own basic listing as a benefit of membership, which includes a "click to call" and "click to map" link. Mobile users now have one-touch access to your business contact information and location. As a member PLATINUM SPONSOR: of Commerce Lexington, you can now attract more customers by offering mobile coupons, "near me" deals, and special offers to both CLX members and anyone in the Greater Lexington area who downloads this free mobile app.

30 BUSINESS FOCUS JANUARY 2017 CONNECT

BOARD CHAIR’S MESSAGE Continued from Page 3

Another large part of our community’s success depends on how we through Chairman Alan Stein’s leadership during our visit to Charleston, leverage the tremendous assets of the University of Kentucky, which is South Carolina, last June. These smaller group discussions, including not only a huge economic engine within our region, but also a key eco- representatives from various ethnic and faith-based organizations, as nomic development tool as we recruit and retain business and industry well as the Lexington Police Department, will soon be expanded to the here. Commerce Lexington works very closely with UK and the City of broader community. The more people from different backgrounds can Lexington during the economic development process, but we should come together and learn from one another, the stronger our community continue to explore ways that we can collaborate with UK that will ben- will become for future generations. efit our community. All of our higher education institutions are impor- I am honored to serve as your Board Chair this year, and I look for- tant to our economic development efforts, since they are major contrib- ward to working with you in efforts to make Lexington and Central utors to Lexington consistently being among the most educated cities in Kentucky the best they can be.” the nation. Finally, we will continue to build on the Courageous Conversations concept begun

2017 Economic Outlook Conference is Feb. 7th

Co-presented by Commerce Lexington Inc., The Lane Report, the Center for Business and Economic Research, and The Don & Cathy Jacobs Executive Education Center, along with Partner Sponsor Lexington-Bluegrass Association of Realtors (LBAR), the 28th annual Economic Outlook Conference will be held on Tuesday, February 7, from 8:00 a.m. to noon in Lexington Center’s Bluegrass Ballroom. During this event, leading experts will address key issues, including the outlook for the local, state and national economy, the financial markets and current topics of interest.

PRESENTATIONS BY: • “National Economic Outlook and Monetary Policy,” Dr. Mark E. Schweitzer, Senior Vice President of External Outreach and Regional Analytics, Federal Reserve Bank of Cleveland. • “Economic Outlook for 2017: National and Local Relationships,” Dr. Christopher R. Bollinger, Director of the Center for Business and Economics Research, UK Gatton College of Business and Economics. • “Effects of Oil Price Shocks on Kentucky,” Dr. Ana María Herrera, Professor, Department of Economics, UK Gatton College of Business and Economics. • “Kentucky Health: Moving the Needle,” Mr. Ben Chandler, Foundation for a Healthy Kentucky.

TO REGISTER: To register for the Economic Outlook Conference, visit http://gatton.uky.edu/economic-outlook, or for more information, call (859) 257-8746.

JANUARY 2017 BUSINESS FOCUS 31 CONNECT

Leadership Lexington Class Learns About Local Educational System

Excerpts of Article by Laura McDonald, 2016-17 CLASS PRESENTED BY: SteinGroup / Impressions Marketing & Events From the time the first bell rang until our dis- missal at the end of the day, our recent Leadership Lexington Education Day proved to be, well, educational. Having been through the education system as we grew, many of us felt we had a good understanding of Fayette County Public Schools. But, thanks to the men and women who shared their passion and PLATINUM SPONSOR: vision for the future of early childhood, elementary, middle and high school education, each of us walked away with a deeper understanding of the care and consideration used to provide meaningful learning experiences for children in our community. Our day began at Locust Trace, a school providing education, with a panel featuring the presidents of hands-on learning opportunities to FCPS high school Transylvania University (Dr. Seamus Carey) and students. Superintendent Manny Caulk (pictured at Bluegrass Community & Technical College (Dr. right) shared details about students in FCPS. With Augusta Julian), as well as a representative from the BRONZE SPONSORS: over 80 languages spoken across the district and 3 University of Kentucky (Bill Swinford). Lexington Clinic out of 100 students identifying as homeless, the chal- Our last speaker of the day, Dr. Rodney Andrews, Mahan Multimedia lenges managed in the classroom at each school go shared his research experience at the UK Center for beyond reading levels and math problems. Applied Energy Research. While we live in a world Toyota Motor Manufacturing, Next, our class participated in roundtable discus- where we want to succeed in all we do, the admission Kentucky, Inc. sions with community leaders and educators who of how failure has led to exceptional results in the U.S. Bank focus on specific areas, such as special education, long run was a poignant ending note for our class. career and technical education, assessments and The biggest takeaway from this day of learning for more. One of the most interesting tables was led by our entire class, and one that also relates to everyone Betsy Dexter, the Executive Director of the Business in our community, is that we can all make an impact Read This Full Recap at & Education Network (BEN). She discussed a new in the classrooms around Lexington. The responsibil- www.Leadership partnership with the Ford Motor Company on an ini- ity isn’t relegated to those with children in the tiative called Ford Next Generation Learning. schools, colleges and universities, but is a shared Lexington.com After lunch, the conversation shifted to higher responsibility for our business community.

Leadership Lexington Youth Class Members Explore Local Arts & Media

Excerpts of Article by Eliana Shapere, Tates 2016-17 CLASS PRESENTED BY: Creek High School The Leadership Lexington Youth Program’s Arts and Media Day began at Commerce Lexington with a Junior Achievement activity to prepare us for job interviews. We then travelled to WKYT-TV to hear from news anchors Barbara Bailey and Bill Bryant. We also visited the newsroom for a real-time news- cast from the duo, and got to see them in action. Then, we took the bus to Latitude, an artist community for “those thought by some to have a disabil- PLATINUM SPONSOR: ity.” We got to interact with the artists, which was an eye-opening and heartwarming experience. We took a trip through downtown to the UK We had lunch at the Lexington Children’s Theatre, Opera Theater for an inspiring speech by Everett followed by three sessions with different Lexington McCorvey, an accomplished tenor, professor, and arts professionals. My group started out with a cold- director. He stressed the importance of doing what reading activity led by Jeremy Kisling, the associate we love no matter what. artistic director-in-charge of education at the We ended the day back at Commerce Lexington Children’s Theatre. Next, we enjoyed a wonderful with Kurt Gohde and Kremena Todorova, both pro- fessors and arts activists. They founded the graffiti session with the Bluegrass Youth Ballet, trying out BRONZE SPONSORS: some ballet exercises led by Adalhi Aranda Corn. We project, “Unlearn Fear + Hate,” which spreads a also learned about fashion design from Soreyda message that all humans are intrinsically loving Central Bank & Trust Co. Benedit-Begley. The head of the Lexington Fashion beings. With that, our day of Arts and Media ended, Sayre School but I know we will all continue to enjoy the great Collective, she “is an advocate for fair trade, Toyota Motor Manufacturing, artistic opportunities of Lexington. women’s rights, and sustainable development.” Kentucky, Inc.

32 BUSINESS FOCUS JANUARY 2017 CONNECT

Finalists Announced for Commerce Lexington Ambassador of the Year Award EDITOR’S NOTE: The Ambassador of the Year Award winner is announced at the 2017 Commerce Lexington Inc. Annual Dinner presented by Kentucky Employers’ Mutual Insurance on Thursday, January 26th. See page 27 of this issue for registration information. Marissa Bradley Bill Marshall Todd Sallee United AdWorks Bluegrass Sotheby’s Kentucky Employers’ A native of Ashland, International Realty Mutual Insurance Marissa moved to Bluegrass Sotheby’s A Lexington native, Todd Lexington after college International Realty has Sallee joined Kentucky for her first job with a been helping Japanese Employers’ Mutual local radio company as companies and individu- Insurance in 2010 after an account executive. als with their relocation, spending nearly 17 years She fell in love with this purchase and lease in the banking industry. big, small town and has MARISSA needs for many years. BILL As the Business TODD been here for 11 years. BRADLEY “We have complete MARSHALL Development and SALLEE Marissa is a marketing translation capabilities, Community Relations consultant and partner of and understand what Japanese employers and Manager, Todd’s main responsibility is com- United AdWorks, Lexington's only locally- employees are looking for when it comes to munity development, networking and estab- owned out-of-home (OOH) advertising company. United AdWorks' ads engage consumers lodging.” Please contact Bill Marshall at (859) lishing strong relationships with agents and when they are least distracted at frequently vis- 230-3086 or [email protected] for more policyholders. He also oversees KEMI's contin- ited locations such as restrooms, elevators, or information. uing education class offerings. “Serving as an foyers of restaurants, night clubs, sports bars, Ambassador is truly an honor,” said Sallee. “It civic arenas, and family outing destinations. JAPANESE TRANSLATION: is very satisfying to know that we are put in Marissa said, “It has been an honor to serve as ブルーグラス・サザビーインターナショ front of key businesses across Central a CLX Ambassador in 2016." Connecting with ナル・リアルティーでは長年に渡り日系の Kentucky to make sure they are getting the current member businesses increased her pro- 企業・個人向けに引っ越し・住宅購入/リ most out of Commerce Lexington and utilizing fessional network and allowed her to cultivate ースのお手伝いをしております。 all of the many resources that they have to many new, meaningful friendships. She loves 弊社では言葉の問題も無く、お住まいをお offer.” Contact Todd Sallee at (859) 389-1167 educating prospective and existing members 探しの日本からの雇用者・従業員の皆様の or [email protected]. alike on all the benefits and opportunities CLX ご要望も認識しています。更に詳しい情報 offers. Contact Marissa Bradley at (859) 457- はビル・マーシャルまでご連絡下さい。電 6278 [email protected]. 話： 859-230-3086 電子メール： bmar- [email protected]

Read More About Our Ambassadors at www.CommerceLexington.com > Connect > Volunteer Opportunities

2017 Commerce Lexington Inc. Ambassador Committee Members

These volunteers represent Commerce Lexington Inc. by helping to educate its members on membership benefits, and to serve as a liaison between the organization and its members. Ambassadors also represent the organization at community and key Commerce Lexington events.

Laura Adams Angie Dennis Nick Landers Adrianne Strong Schrader Commercial Properties Lexington Rescue Mission RevLocal Dinsmore & Shohl LLP

Melanie Barber Cheryl Eadens Bill Marshall Peyton Tierney UK Career Center Bluegrass Office Systems Bluegrass Sotheby's International Northwestern Mutual Realty Shawn Blades Dwayne Edwards Callie Tincher BB&T Integrity IT James McGary Junior Achievement of the Mass Mutual Financial Group Bluegrass Keeana Sajadi Boarman Shelley Fehrenbach Frost Brown Todd LLC U.S. Bank Crystal Newton Mark Tranbarger Bates Security Republic Bank Marissa Bradley Laura Henry United Adworks Energy Insurance Agency Todd Sallee Melanie White KEMI Manpower of Central Kentucky John Brandon Lara Justice Raymond James TownePlace Suites Lexington Jacob Sizemore Mark Wiemer Sizemore Strategic Solutions WesBanco Christina Briggs Monica King UK HealthCare Lynn Imaging/Monster Color

JANUARY 2017 BUSINESS FOCUS 33 NEW MEMBERS

Welcome New Commerce Lexington Inc. members for the period of November 18 through December 16, 2016

Comprehensive Pain Specialists Family Savings Magazine J & H Lanmark Inc. Taylor’ed HR Physicians & Surgeons, Pain Control Publishers-Magazines Retailers Human Resource Services Amy Coontz, Clinic Manager Becky Wimsatt, Owner George R. Lathram II, President Valenda Taylor, Owner 2443 Sir Barton Way, Suite 275 121 Prosperous Place, Suite 5A 189 Moore Drive P.O. Box 1037 Lexington, KY 40509 Lexington, KY 40509 Lexington, KY 40503 Georgetown, KY 40324 Phone: (859) 523-1776 Phone: (859) 263-5704 Phone: (859) 278-0730 Phone: (859) 494-3210 www.cpspain.com www.familysavingsmagazine.com www.jhoutdoors.com www.tayloredhr.com

Counter Culture Plus Four Points by Sheraton T R U S T E E I N V E S T O R The Gene Duffy Foundation Countertop Fabricator Hotels/Motels Rehabilitation Services G.J. Gerard, Designer & Builder Sales Dawn Henson, General Manager KLH Engineers, PSC Michael Duffy, Chairman of the Board 944 National Avenue 1938 Stanton Way Engineers 3591 Paris Pike Lexington, KY 40502 Lexington, KY 40511 Robert Lonnemann, PE, Principal Lexington, KY 40511 Phone: (859) 246-0007 Phone: (859) 259-1311 333 East Main Street, Suite 175 Phone: (859) 566-6708 www.countercultureplus.com www.fourpoints.com/lexington Lexington, KY 40507 www.duffyfoundation.org Phone: (859) 410-2575 CycleYou Lexington Hair By Kimberly www.klhengrs.com Thoroughbred Insurance Services Fitness Centers Hair Restoration Insurance Noelle Dick, Owner Kimberly Sporing, Owner/Stylist Ryan Shive 165 Midland Avenue 2000 Family Circle Le Deauville 698 Perimeter Drive #103 Lexington, KY 40508 Lexington, KY 40505 Restaurants Lexington, KY 40517 Phone: (859) 455-3384 Phone: (859) 363-5467 Mark Puil Phone: (859) 214-6051 www.cycleyoulexington.com www.hairreplacementky.com 199 N. Limestone www.thoroughbredinsured.com Lexington, KY 40507 Phone: (859) 246-0999 T R U S T E E I N V E S T O R www.ledeauvillebistro.com Zaxby’s Mirror Twin Brewing Restaurants Brewery Ginger Redwine, Field Marketing Ryan Reed, Co-Owner Coordinator 725 National Avenue 1115 South Broadway Lexington, KY 40502 Lexington, KY 40504 Phone: (859) 447-8146 Phone: (859) 523-8543 www.mirrortwinbrewing.com www.zaxbys.com/locations/ky/ lexington/1115-s-broadway Park Community Credit Union Credit Unions Lauren Tanner, Branch Manager 2217 War Admiral Way Lexington, KY 40509 LIVE MUSIC ON FRIDAY NIGHTS Phone: (800) 626-2870 Web: www.parkcommunity.com

Red Wing Shoes Shoes Spencer Poynter, Manager 1869 Plaudit Place, Suite 130 Lexington, KY 40509 Phone: (859) 263-0352 www.redwingshoes.com

Rock House Brewing Brewery Billy Hacker 119 Luigart Court Lexington, KY 40508 Phone: (859) 368-7064 www.rockhousebrewing.com

34 BUSINESS FOCUS JANUARY 2017 PERSONNEL ANNOUNCEMENTS

Bank of the Bluegrass & Trust Co.: Paula Scott has Cunningham will launch the local office of Hilliard Sayre Christian Village welcomed Dana Gravitt as been promoted to vice president, while Laura Lyons Trust Company, and Jenny Foley will provide healthcare administrator. She has worked in the Martin was promoted to assistant vice president. comprehensive wealth planning services. long-term care industry for 30 years and has been a licensed administrator for 26 years. Bates Security recently received an award for Life Keller Williams Bluegrass Realty welcomed the fol- Safety, Community Service and Circle of Excellence lowing new agents: Karen Olive, Daniel Schellsmidt, Benchmark Litigation honored five Lexington Stites & at Honeywell Security Group’s national conference, David Snider, Matt Conlee, Dan Elkinson, Traci Harbison attorneys as Litigation Stars, including while Lisa Young was named Residential Sales Mitchell, Tyler Singleton, Jeana Taylor, Brandy Daniel Danford, Anne Gorham, William Gorton III, Person of the Year by Honeywell. Warner, Chelsea Moore, and Laura Smith. Gregory Parsons, and Ashley Ward. Additionally, the 2017 edition of Kentucky Super Lawyers recognized Bingham Greenebaum Doll LLP has been named to Keller Williams Greater Lexington welcomed several area attorneys Robert M. Beck, Jr., W. Blaine Early III, the 2017 “Best Law Firms” list by U.S. News – Best new agents, including Kyle Terry, Richard Lovaas, Anne Gorham, J. Clarke Keller, Gregory P. Parsons, Lawyers. The firm received Tier 1 recognition in Mike Barnes, Brad Calvert, Charity Strunk, Shannon Cassidy R. Rosenthal, Mark R. Overstreet and Ashley three metropolitan areas, including Indianapolis, Denniston, Taylor Stamper, and Katherine Thomas. Ward as Super Lawyers, and Kristen K. Orr, Walter S. Louisville and Lexington. Top tier rankings were Robertson, and Rebecca M. Wichard as Rising Stars. determined through feedback from clients and The Kentucky Distiller’s Association enhanced its peers, as well as information provided in a survey. leadership in alcohol responsibility and environ- At the Defense Research Institute’s Annual Meeting mental sustainability by naming Ali Edelstein the in Boston, Sturgill, Turner, Barker & Moloney, PLLC Thirty-one Bingham Greenebaum Doll LLP attor- group’s first-ever director of social responsibility. attorney Stephanie M. Wurdock was awarded the neys were named to the 2017 Kentucky Super 2016 Outstanding Committee Vice Chair in recogni- Lawyers list, including Lexington attorneys Wendy The Lexington Legends added the following staff tion for her work on the Young Lawyers Steering Bryan Becker, Anne A. Chesnut, Bruce E. Cryder, members as preparations continue for the 2017 Committee. Additionally, Sturgill, Turner, Barker & and Phillip D. Scott. Additionally, 13 of the firm’s season: Sarah Bosso as vice president of business Moloney, PLLC has expanded its Utility & Energy Law attorneys were named to the 2017 Kentucky Rising development; Greg Liebbe as senior corporate sales Practice Group through the addition of former Stars list, including four from the Lexington office – executive; Leslie Taylor, CPA, as accounting and Kentucky Public Service Commission Chairman, Jason T. Ams, Brian W. Chellgren, Timothy W. business operations manager; and Jillian Waitkus, James W. Gardner. Dunn, and Lauren R. Nichols. executive assistant to the president/CEO. TrinSoft welcomed Daylynn Allison to its Microsoft Data Strategy was named Partner of the Year by Lexington Clinic announced the arrival of Dr. Dynamics team. Daylynn is a Microsoft Dynamics Cisco for Data Center Architectural Excellence in the Andrew Usery at Jessamine Medical and Developer who implements and tests solutions for Americas Central Region. This prestigious award Diagnostics Center. Dr. Usery has unique training the customization and improvement of the base recognizes Data Strategy’s continued business in both internal medicine and pediatrics which Dynamics NAV system. growth and engineering coverage across a broad allows him to care for patients of all ages. spectrum of Cisco datacenter technologies. University of Kentucky Gatton College of Business Lockaby PLLC announced that its founder and man- and Economics announced the appointment of Stefan Hendrickson joined Dean Dorton Allen Ford aging partner, Matt Lockaby, has again been named Nathaniel R. Morris, founder, chairman and CEO of PLLC’s Tax Services group in Lexington as an asso- a Kentucky Super Lawyers Rising Star, an award Rubicon Global, to the role of Gatton College of ciate director of tax services. reserved for the top 2.5% of Kentucky attorneys Business and Economics Entrepreneur-in- under the age of 40. Mr. Lockaby has been named Residence. In this new role, Morris will offer guest Dinsmore & Shohl announced that 58 of its attor- to the list each year since 2013. lectures at the college, serve as a mentor for the UK neys have been named to the Kentucky Super Venture Studio and for UK teams in business plan Lawyers list and the Rising Stars list for 2017. The McBrayer law firm congratulated the firm’s competitions, and spend time engaging with stu- Lexington and Frankfort attorneys recognized as attorneys who have received Best Lawyers in America dents, faculty and community members. Kentucky Super Lawyers included Glen S. Bagby, and Kentucky Super Lawyers distinctions for 2017. Mindy G. Barfield, Carolyn M. Brown, Christopher Best Lawyers in America recognized 19 McBrayer Wyatt, Tarrant & Combs, LLP announced that the fol- R. Cashen, Lloyd R. Cress, Jr., Chauncey S.R. Curtz, attorneys, including Emily H. Cowles, David J. lowing Lexington attorneys have been named to the Brady W. Dunnigan, Barbara B. Edelman, Ellen Guarnieri, Cecil F. Dunn, Cynthia L. Effinger, Jarod list of Kentucky Super Lawyers or Kentucky Rising Stars Arvin Kennedy, Grahmn N. Morgan, John R. P. Blandford, Lisa English Hinkle, Christopher J. for 2017. Super Lawyers included: Robert J. Brown, J. Rhorer, Jr., John M. Spires, Kara M. Stewart, Shaughnessy, James H. Frazier III, Jon A. Woodall, Mark Burton, Debra H. Dawahare, Mary L. Catherine A. Stivers, Joseph H. Terry, David J. Robert E. Maclin III, Robert T. Watson, Douglas T. Fullington, Sharon L. Gold, Karen J. Greenwell, Kevin Treacy, Sadhna G. True, and Linsey W. West. Area Logsdon, Stephen G. Amato, D. Luke Morgan, L. Johns, Douglas L. McSwain, George J. Miller, attorneys recognized as Rising Stars included Mary Estes Haggin, Jack A. Wheat, W. Brent Rice, Walter R. Morris, Jr., Leila G. O’Carra, W. Craig Anthony F. Bonner, Jr., Kristeena L. Johnson, R. Clay Terri R. Stallard, and W. Terry McBrayer. McBrayer Robertson, III, Daniel I. Waxman, and Jeff A. Woods. Larkin, Amanda McFarland Lockaby, Sarah S. attorneys on the Super Lawyers list for 2017 includ- Rising Stars included: Allison Grogan Buckley, Mattingly, Haley Trogdlen McCauley, Kyle M. ed Stephen G. Amato, Emily H. Cowles, James H. Michael D. Hornback, Justin W. Ross, Courtney Melloan, Drew B. Millar, Lee A. Rosenthal, and Frazier III, Robert E. Maclin III, and Jack A. Wheat. Samford, Daniel C. Soldato, and G. Brian Wells. Adrianne C. Strong. Additionally, McBrayer attorneys Brittany MacGregor Roethemeier, Ross T. Ewing, and Guide Realty recently welcomed the following Masten Childers III received the 2017 Rising Stars SUBMIT PERSONNEL NEWS: agents: Dana Branham, Rebecca Mabson, Lori distinction. Submit your company’s awards, personnel changes, Draper and Nicole Seals. additions, or promotions for Business Focus to Midway University announced the hiring of Linda [email protected]. Information is Hilliard Lyons announced the recent hiring of two Medley as vice president of advancement and Ben published in the order received & as space permits. professionals who will deepen and broaden the Shaffar as athletic development officer. financial services that the firm already offers. Jack

JANUARY 2017 BUSINESS FOCUS 35 Periodical Postage PAID at Lexington, Kentucky Commerce Lexington Inc. 330 East Main Street, Suite 100 P.O. Box 1968 Lexington, KY 40588-1968

COMMERCE LEXINGTON INC. UPCOMING EVENTS

JANUARY 2017: FEBRUARY 2017: Leadership Lexington Youth program presented by UK Leadership Lexington Youth program presented by UK 4 HealthCare: Economic Development Day Session. 1 HealthCare: Health & Human Services Day Session.

@330 Series presented by Manpower of Central Kentucky, 28th Annual Economic Outlook Conference, 8:00 a.m. - Noon, 10 3:30 - 5 p.m., CLX 1st floor conference room. - SEE PAGE 8 7 at Lexington Center’s Bluegrass Ballroom. - SEE PAGE 31

Leadership Lexington program presented by Kentucky Leadership Lexington program presented by Kentucky 12 Utilities Co.: Health & Human Services Day Session. 9 Utilities Co.: Government Day Session.

Leadership Central Kentucky presented by Kentucky Utilities @330 Series presented by Manpower of Central Kentucky, 18 Co. at Fayette County. 14 3:30 - 5 p.m., CLX 1st floor conference room.

Commerce Lexington Inc. Annual Dinner presented by Leadership Central Kentucky presented by Kentucky Utilities 26 Kentucky Employers’ Mutual Insurance, 5:00 - 8:30 p.m., 15 Co. at Madison County. Lexington Center’s Bluegrass Ballroom. - SEE PAGE 27 Business Link sponsored and hosted by Blue Grass Airport 16 (4000 Terminal Drive), 4:30 - 6:30 p.m. - SEE PAGE 9

Opportunity Exchange, 4:00 - 6:00 p.m., location yet to be 22 determined. - SEE PAGE 6