Special Session - Sine Die Update

Special Session - Sine Die Update

 

The General Assembly completed their work tonight for the 2021 Special Legislative Session and have adjourned Sine Die. But not before sending the Governor four bills, two of which he signed and two that he vetoed. Subsequently, the General Assembly voted to override those vetoes bringing all four bills into law. 

Thus, this third and final day of the 2021 Special Session was, as expected, busy and chaotic. As anticipated, the General Assembly used procedural strategy to shorten the normal 5-days required to pass a bill down to three days speeding up the session. Ultimately, the following proposals became law:

 

EDUCATION: Senate Bill 1/House Bill 1 received much debate in both the House and the Senate. These bills nullify regulations mandating masks by the KY Department of Education and provide instruction flexibility to school districts. Some legislators felt the bill did not go far enough in giving flexibility to schools, while others felt it went too far by allowing for mask mandates on the local level. Several amendments to try and both broaden and shrink the parameters of the bill were filed, but ultimately none were adopted. Senate Bill 1, was the vehicle passed by the Senate 28-8 and the House 70-25. Vetoed by Governor & Overridden by Senate 22-6 & House 69-24 - September 9

 

HEALTHCARE: Senate Bill 2/House Bill 2 were also hotly contested. These identical bills do away with emergency regulations filed by the administration related to masking and provide assistance to healthcare organizations for testing and treating COVID. None of the floor amendments, many of which could have impacted employer's rights, were not adopted. Senate Bill 2 was the vehicle passed by the Senate 26-10 and the House 69-24. Vetoed by Governor & Overridden by Senate 23-5 & House 69-22 - September 9

 

APPROPRIATIONS: Senate Bill 3/House Bill 3 appropriates $69 million in ARPA funding to relieve pressures in healthcare, long term care, and education systems. They also provide more funding for COVID testing, monoclonal antibody treatment, and "test and stay" COVID testing for schools. One of the least controversial measures during this special session, the Senate bill passed without amendments in the Senate 36-0 and the House 84-8. Signed by Governor - September 9

 

ECONOMIC DEVELOPMENT INCENTIVES (Senate Bill 5/House Bill 5): These bills appropriate $410 million from the budget reserve trust fund to finance KEDFA forgivable loans and training grants for companies investing more than $2 billion in Kentucky. The language allows the state to provide incentives on the front end, to compete with states that are able to provide cash incentives. According to legislators there have been discussions involving specific companies for this incentive, but any company investing over $2 billion would qualify. Senate Bill 5 passed without amendment in the Senate 30-3 and the House 91-2. Signed by Governor - September 9

EMERGENCY ORDERS: House Joint Resolution 1, likely the most important piece of legislation to come from the special session, passed the General Assembly and was sent to the governor for his signature on Tuesday, the first day of the special session. HJR 1 extends many of the Governor's COVID executive orders through January 15. HJR includes the extension of liability protections for employers, passed earlier this year as SB 5. Other issues addressed include the extension of a state of emergency order for Nicholas County due to flooding. Signed by Governor - Tuesday, September 7

 

Also considered today, but not receiving final passage was Senate Joint Resolution 3 sponsored by Sen. Ralph Alvarado, which recognized a positive COVID-19 antibody test as equivalent to having been vaccinated against COVID-19. The resolution was filed on Tuesday and passed from committee and the full Senate by a vote of 26-10, but was never acted upon in the House. 

Special Session Update - Day 2

Special Session Update - Day 2

The second day of the special legislative session began with the Senate and the House briefly gaveling in before adjourning for the day. Today's action focused on committee meetings as the General Assembly moved bills quickly through the legislative process. The General Assembly hopes to conclude their business tomorrow, recessing for the veto period while Governor Beshear considers any vetoes. 

We have summarized the bills below, but first a quick note on the political dynamics. The emotional undercurrents of the COVID issue are impacting the session as members are hearing from their constituents about masks, vaccines, and local control. Their constituents' vitriol has been reflected in votes and in speeches before committees and on the floor. It doesn't appear that there will be enough fissures to derail any of the bills, though it got close on House Bill 1 in the House Education Committee today. 

EDUCATION (SB 1 & HB 1): The House & Senate Education Committee passed a modified version of the filed bills. Section 7 of the bill, which encouraged vaccine incentives in the school system, was completely removed. Changes were also made to Sections 10 and 11 regarding the Teacher Retirement System due to potential legal issues with the originally proposed language. The bill passed the Senate Committee easily, but the House Committee failed to pass the bill in its first attempt by one vote. The House committee reconvened this afternoon and the bill was passed by a 3-vote margin, though members still expressed concerns about the bill. The floor debate on these bills should be interesting as multiple amendments have been filed.

HEALTHCARE & HEALTHCARE FACILITIES (SB 2 & HB 2): Senate Bill 2 removes the ability to implement a statewide mask mandate, encourages public health, vaccine, and monoclonal antibody treatment campaigns on a local level, and outlines methods to allow visitors in long-term care facilities. Senate Bill 2 passed committee today but had some slightly different language on the monoclonal antibody treatment than House Bill 2, which passed the committee on Tuesday. Thus HB 2 was recommitted and will be before the House Health & Welfare Committee tomorrow morning. Senate Bill 2, along with its House counterpart House Bill 2, saw several amendments filed for consideration tomorrow that many consider to be threatening to employer rights. Specifically:

 

SFA 5 to SB2: Would make mandating a COVID-19 vaccine or proof of vaccine a violation of the Civil Rights Act

 

SFA 6 to SB2: Would prevent a COVID-19 vaccine mandate for employers; would set certain rules to ensure any "mandate" follows set steps for allowing broad exemptions from any vaccine.

 

SFA 7 to SB2:  Any employer that receives state funds cannot mandate a COVID-19 vaccine.

 

ARPA APPROPRIATIONS (SB 3 & HB 3): The House & Senate Appropriations & Revenue Committees favorably considered Senate Bill 3 and House Bill 3 respectively today. These bills appropriate funding to battle COVID-19, especially in hospitals, long-term care facilities, and schools. No committee amendments were adopted, but floor amendments have been filed including House Floor Amendment 1 (HFA1) to HB 3 would prevent any employer that receives state resources from mandating a COVID-19 vaccine.

ECONOMIC DEVELOPMENT INCENTIVES (SB 5 & HB 5): These bills appropriate $350 million from the budget reserve trust fund to KEDFA to finance forgivable loans for companies investing more than $2 billion in Kentucky. The language allows the state to provide incentives on the front end, so Kentucky can compete with states that are able to provide cash incentives. The bills also include language to appropriate training funds to KCTCS for onsite employee training for companies locating in Kentucky above that $2B threshold, as well as other training grant opportunities. According to legislators there have been discussions involving specific companies for this incentive, but any company investing over the $2 billion mark would qualify. Both bills passed their respective committee unanimously. 

LEGISLATOR COMPENSATION (SB 4 & HB 4): The Senate passed SB 4 out of committee yesterday; the House has yet to pass the bill out of its State Government Committee. The bill would prevent legislators from receiving legislative pay on necessary veto days during a special session. It is estimated to cost the Commonwealth $72,000 a day to hold a special session.

As we noted yesterday, two other bills were filed: Senate Bill 6 and Senate Bill 7. These bills are very similar to Senate Bill 2 and Senate Bill 3, respectively. They are not expected to move forward at this point.

Special Session - Day 1 Update

Special Session - Day 1 Update

The Kentucky General Assembly convened this morning for the first day of the special session. Governor Beshear and legislative leaders worked over the past few weeks to reach agreement on the agenda for the special session. It's expected that the session will conclude by week's end, as legislative leaders have indicated they hope to finish the business at hand on Thursday.

 

Both the House and the Senate filed the same legislation focusing on these issues. There is a procedural strategy behind this action - a bill is required to be given three readings in each chamber on separate days unless those readings are procedurally dispensed with. In order to avoid using the procedural process, the General Assembly believes simultaneously passing these identical bills through the legislative process at the same time in each chamber fulfills their duties in the legislative process and thus allowing them to conclude their business on Thursday.

 

House Joint Resolution 1 - Final Passage

The most noteworthy action today was the introduction and final passage of HJR 1, sponsored by Speaker Osborne. HJR 1 extends many of the Governor's COVID executive orders through January 15. HJR includes the extension of liability protections for employers, passed earlier this year as SB 5. Other issues addressed include the extension of a state of emergency order for Nicholas County due to flooding. Certain procedural rules were waived so that the resolution could pass both chambers and be delivered to the Governor's desk for consideration today. It is expected he will sign HJR 1 this evening.

 

Other Bill Introductions and Actions

• EDUCATION: SB 1 & HB 1 - Nullifies regulations mandating masks by the KY Department of Education and provides instruction flexibility to school districts. SB 1 passed the Senate Education Committee. Multiple floor amendments were filed to both bills from members of both parties.

• HEALTHCARE & FACILITIES: SB 2 & HB 2 - Does away with emergency regulations filed by the administration related to masking and provides assistance to healthcare organizations testing for and treating COVID. HB 2 passed the House Health and Family Services committee. Multiple floor amendments were filed to both bills.

• AARPA APPROPRIATION: SB 3 & HB 3 - Appropriates funding to relieve pressures in healthcare, long term care, and education systems. Provides more funding for COVID testing, monoclonal antibody treatment, and "test and stay" COVID testing for schools; it also reduces ARPA funding to the Unemployment Services beginning in FY 22. SB 3 will be heard tomorrow in the Senate Appropriations and Revenue Committee. Multiple floor amendments were filed to both bills.

• LEGISLATOR COMPENSATION: SB 4 & HB 4 - Prevents lawmakers from receiving compensation for necessary veto days during a special session. SB 4 passed the Senate State & Local Government Committee.

• ECONOMIC DEVELOPMENT INCENTIVES: SB 5 & HB 5 - Funding economic development projects that exceed $2 billion investment. SB 5 will be heard tomorrow in the Senate Appropriations & Revenue Committee.

• SB 6 - Very similar to SB 2, SB 6 provides healthcare-related COVID-19 measures including allowing all visitors in long-term care facilities, establishing COVID-19 antibody treatment centers, and creating incentives for vaccine promotion in healthcare settings

• SB 7 - Very similar to SB 3, SB 7 appropriates funding to assist with COVID pressures throughout the healthcare, long term care, and education systems. It also cuts the appropriated ARPA funding to the Unemployment Services.

 

Tomorrow the Senate convenes at 9am and the House convenes at 10. Various House and Senate legislative committees will be meeting to continue moving the bills that were introduced today. You can watch all the legislative proceedings live on the KET-KY channel, or online on KET or the LRC's YouTube channel.