Legislative update: Budget process begins, first bill heads to Governor’s desk

By CHAD MCCOY
50th District State Representative

Friday, Jan. 31, 2020 — On Tuesday, Governor Andy Beshear presented his much-awaited budget proposal to members of the House and Senate. This is the first step in a process that will take the better part of this session. It will involve many late nights, conversations with stakeholders, and tough decisions. The final product of this work is a spending plan that provides funding for state agencies and programs over the next two fiscal years.

The House is responsible for the next step, drafting our own version, then passing it on to the Senate for their input. Finally, both Chambers will appoint a committee to work out any differences between the House and Senate version before a final vote is taken. We will certainly give the Governor’s proposal as much consideration as possible. However, rarely does the final product look very much like the initial proposal.

I will continue to update you on the budget process over the next few weeks. In the meantime, the legislature will continue to act on other issues. In fact, the first bill this session to pass both the House and Senate is on its way to the Governor’s desk. The bill, HB 186, would eliminate expensive requirements that could have affected the more than 171,000 Kentuckians that operate direct sales businesses. Direct sales businesses are often catalog or online sales business that offer home décor, health and beauty products, and clothing. For generations, these types of businesses have offered Kentuckians the opportunity to provide for their families while offering benefits like flexible schedules and independence. This type of company has never been required to carry workers’ compensation insurance on those who contract with them. However, because of the way workers’ compensation laws are interpreted by courts today, these direct sellers may be considered employees rather than independent contractors. The measure, HB 186, clarifies the relationship.

Another bill is just one step away from heading to the Governor. The Senate approved an amended version of an agricultural measure that deals specifically with industrial hemp. We must vote to accept their change, which I expect we will do early next week. The industrial hemp industry has exploded since the federal government loosened prohibitions. Over the past few years it has become a popular, versatile crop that can be used to manufacture everything from clothing to health and beauty products. This measure, HB 236, will bring our state’s policies in line with federal requirements and increase the number the number of laboratories that are eligible to test industrial hemp to ensure that the amount of tetrahydrocannabinol (THC) does not exceed the federal limit. The Senate amendment clears up some questions about the THC content of hemp extract.

As you can see, we are off to a busy start. If you have any questions or comments about this session, I can be reached during the week from 8:30 a.m. until 4:30 p.m. (EST) through the toll-free message line at 1-800-372-7181. They will ask you to share contact information, but I will get the message and I do indeed appreciate hearing from constituents. You can also contact me via e-mail at Chad.McCoy@lrc.ky.gov. You can keep track of committee meetings and potential legislation through the Kentucky Legislature Home Page at www.legislature.ky.gov.

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