Higdon: Despite opposition, barrel tax legislation approved by General Assembly
By JIMMY HIGDON
14th District State Senator
Friday, March 30, 2023 — First and foremost, as a member of the Senate Veterans, Military Affairs and Public Protection Committee, I want to offer my sincerest condolences to the families and friends of the nine Fort Campbell service members who perished in in helicopter crashes during a military training exercise. As Senator for the 14th Senate District, Fort Knox is nearby and I greatly appreciate all the military members in our district who call Kentucky their home.
Having been a member of the U.S. Army Reserve, I can tell you that other than family, there’s no stronger bond than the one between brothers and sisters in arms. I am praying for all impacted by this tragedy, including all service members, who, like those we have lost, make sacrifices and take risks every day. Thank you to all who serve.
Lawmakers returned to Frankfort on Wednesday following the 10-day veto period, in which the Governor was allowed time to consider all legislation that had reached his desk. The Governor vetoed 15 bills in total. Several bills filed with the Kentucky Secretary of State’s office were measures the Governor allowed to become law without his signature.
First, I want to give you the latest update on House Bill 5, the bourbon barrel tax legislation. The bill was passed on Thursday and will become state law. I could not support House Bill 5, and my colleagues in the state House of Representatives, Rep. Candy Massaroni (Nelson), Rep. Kim King (Washington) and Rep. Sarge Pollock (Marion), joined me in opposing the bill.
The bill was amended slightly to phase the tax out starting in 2026 by 2043. This bill will result in tax increases on residents here in much of the 14th Senate District. My fellow lawmakers and I have long supported the bourbon industry and I take great pride in representing the Bourbon Capital of the World. The industry had a banner year in 2022 despite the existing bourbon barrel tax, announcing over $2.1 billion in new investments and 700 jobs, both of which are record numbers. According to the Kentucky Distillers Association, 2.4 million full bourbon barrels roll out of distilleries each year, which the trade group calls the highest production rate in modern history. I credit much of this record success of our bourbon industry to favorable legislation supported by myself and other lawmakers. I’ve supported countless policies to strengthen and better our bourbon industry. I will continue to, but the phasing out of the bourbon barrel tax our communities so greatly depend on is a mistake. It will take millions from city, county and sheriff taxing districts.
The bottom line is at the end of the day, someone pays. House Bill 5 will ultimately lead to higher taxes at the local level.
Two of the 15 bills vetoed but overridden by the Governor were:
SENATE BILL 48 adopts the recommendations from the 2022 Cabinet for Health and Family Services Organizational Structure, Operations and Administration Task Force, which is a comprehensive measure correcting some of the current mismanagement within the state’s largest executive branch.
HOUSE BILL 264 is an economic development measure designed to attract new and maintain existing innovative companies. The bill removes burdens and red tape from companies and allows them to develop innovative products and processes in Kentucky and test those products for a year from overly restrictive laws and regulations. The companies will be supervised during this developmental period by the Kentucky Office of Regulatory Relief created within the Office of the Attorney General.
Several additional House and Senate bills were delivered to the Governor in the final two days of session. Unlike the two bills above, the following will not qualify for a veto override. If vetoed, they will not become state law until at least after the 2024 Legislative Session.
Senate Bill 129 was amended to include provisions of another bill relating to autonomous vehicles.
Senate Bill 247 would create conditions for the continuity of education services and instruction for low-income, transient students, allowing students in first through third grades—on free or reduced lunch—to remain in the same school when changing residence within the same school district. The bill would require the school district to provide transportation to the school from the student’s new residence but authorize the superintendent to deny the transportation request if deemed impracticable.
House Bill 64 will extend the period that a peace officer, who was employed as a peace officer since December 1, 1998, may be separated from service before losing their certification status from 100 days to 365 days.
House Bill 83 will require judgment lien notices to contain the date of final judgment and will establish expiration dates for judgment liens. Additionally, HB 83 will allow a judgment lien expiration to be postponed under certain circumstances.
House Bill 207 will allow law enforcement agencies to create their own wellness programs. Additionally, HB 207 establishes that all proceedings, opinions, and records of a wellness program are privileged and not subject to subpoena, including records confidentiality maintained in accordance with a wellness program to the list of records not subject to an open records request.
House Bill 288 will prohibit a public school district or public charter school from entering a non-disclosure agreement relating to misconduct involving a minor or student. It will also require school districts to conduct reference checks of new applicants. Applicants must disclose if they are subject to allegations or investigations in the previous 12 months and consent to a reference check. Additionally, the bill will require all individuals employed by the school district to receive a state criminal background check every five years.
House Bill 338 would allow prospective jurors to be dismissed from jury duty upon their request if the individual is 70 years or older.
House Bill 551 legalizes sports betting with certain exceptions. Revenues generated will go to the state pension systems. I’ve long supported a measure that puts such a decision before the voters of the commonwealth through a constitutional amendment to let the people decide.
You can find all bills becoming law at this link: https://apps.legislature.ky.gov/record/23rs/law.html
The 2023 session was a 30-day, non-budget session. Some bills were heard in legislative committees but ultimately did not make it over the finish line. Although some measures were not enacted, it is not to say they nor their advocate’s efforts are in vain. Beginning in June, we will enter the 2023 Interim period, where more in-depth policy discussions will continue in anticipation of next year’s 60-day legislative session.
I encourage you to stay engaged in the legislative process. You can find a listing of all enacted bills and those pending with the Governor by visiting legislature.ky.gov. You can find archived legislative coverage at KET.org/legislature/archives.
If you have any questions or comments about these or any other public policy issues, please call my office toll-free at 502-564-8100 or the legislative message line 1-800-372-7181. You can reach me at 270-692-6945 (home) or email Jimmy.Higdon@LRC.ky.gov.
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