Senate Passes KLC Initiative Addressing Local-Only TIFs

The Senate on Thursday voted 34-3 to pass Senate Bill 111, a KLC initiative sponsored by Senator Rick Girdler (R-Somerset) that addresses language inadvertently added during the 2021 Regular Session regarding local-only tax increment finance (TIF) provisions.

Girdler pointed out that the Cabinet for Economic Development requested the change and noted the issue stems from the Cabinet’s omnibus bill last year. “The Cabinet intended for last year’s change to only apply to TIF districts that involved state funds, not solely local projects,” he said from the Senate floor. “The fact that the language added in 2021 anticipated ‘net new’ is further evidence that this was meant to be placed with state participation as there is not a local sales tax.”

The measure clarifies that cities can choose, but are not required, to use an outside consultant if the city will use occupational license taxes to help fund the TIF. Any city or county that elects to use an outside consultant may require the developer to pay to cover report expenses.

The measure now heads to the House of Representatives for consideration.

House Bill 154 passed the House. Representative Patrick Flannery (R-Olive Hill) sponsored the legislation related to driving under the influence. It adds license suspension for suspects who refuse to take blood, breath, or urine tests and sets mandatory jail time for people with a blood alcohol concentration reading of 0.15 or higher.

The body narrowly passed House Bill 4 by a vote of 57-37. Representative Webber sponsored the KLC-supported measure that clarifies work search requirements for Kentuckians receiving unemployment, creates a tracking system for those who do not show up for interviews, and offers job training and educational programs. Both House Bill 4 and House Bill 154 now head to the Senate for consideration.

The House State Government Committee approved another KLC-supported bill, House Bill 49. Representative Jerry Miller (R-Louisville) filed the legislation that exempts from anti-pension spiking provisions any overtime directly attributable to a local government emergency in which the governor calls in the Kentucky National Guard. The legislation is retroactive to May 30, 2020, and includes an emergency clause.