In an effort to spur economic development and provide a launch pad for mega-transportation projects, the revamped House Bill 3 was approved by an 86-10 vote.   This final version of the legislation includes many provisions of the original proposal, such as incentives aimed at attracting a Breeders’ Cup Challenge race to Louisville, tax-free renovation expenses at the Kentucky Speedway to prepare for a NASCAR Sprint Cup Race, $75 million added to existing incentives to encourage the expansion of Kentucky based small businesses and tax credits for the Commonwealth’s film industry.  These measures only affect revenues that will occur in the future and do not impact the bottom line of the state budget.

We added a provision that will provide a tax credit of up to $5,000 for individuals who purchase new homes in the hopes this would aid job creation.  This credit is only applicable for one year and will be capped at $25 million.  Further additions include an income tax exemption for active duty military members.  This exemption will greatly help to level the playing field between Kentucky and Tennessee as a potential place of residence for the soldiers stationed at Fort Campbell, with a majority currently choosing to reside in Tennessee which has no state income tax.  

Also included is a tax credit to stimulate the lagging car industry. Individuals who trade in a used car to purchase another used car or new car will pay sales taxes based solely on the difference of the value between the two automobiles. Similar to the home-buyers tax credit, this practice will be in effect for one year and limited to $25 million. 

The largest, and most contentious, addition to House Bill 3 recreates the bridges bill, which will establish both a funding mechanism and authority for high dollar transportation projects, such as the $4.1 billion Ohio River Bridges project.  While this does not establish tolls, it does provide a system for establishing a tolling authority, should it be required in the future.

The last day of this Extraordinary Session afforded us the opportunity to vote on the very legislation we were originally called to address, the restructuring of our state’s budget.  In total, the House Bill 4 compromise, approved 97-0, utilizes approximately $740 million federal stimulus dollars while reducing previously appropriated project funding by $200 million to mend our shortfall.

Each branch of state government will also take a hit, with most executive branch agencies being cut by 2.6 percent.  The judicial branch will see $22.6 million erased from their budget while the legislative branch will give back more than $2.6 million.  By doing so, state employees will not be forced to take unpaid holidays, as the Governor had requested, and the woefully underfunded budgets for prosecutors and public defenders would experience a financial transfusion.  Moreover, K-12 SEEK funding, colleges and universities, local jail funding and Medicaid will remain fully funded and protected.

Two provisions which were part of the original language to House Bill 3 were transplanted to the budget bill.  These include granting the University of Kentucky permission to use private money to build new baseball and football facilities on campus, as well as allowing the Commonwealth to lease land to construct a cell-battery plant in Hardin County.

The most controversial issue addressed during the special session was the only one that did not become law; allowing Kentucky’s race tracks to install video lottery terminals.  While the bill did pass the House, it was defeated in the Senate Appropriations and Revenue Committee.  I supported the measure because of the clear evidence that Kentucky’s horse industry is in dire straits and we are losing the battle to surrounding states that have enhanced their horse industry through expanded gambling.  The overwhelming majority of Oldham County residents also support this issue. This bill would have given Kentucky the same tools that nearly every other racing state in the country has at its disposal and stopped the unimpeded flow of Kentucky dollars across our borders. I have always fought against widespread proliferation of gambling and this measure would have contained gambling in the same exact locations as it is presently conducted.  These institutions have conducted gambling in a responsible manner for over 100 years.

While some will argue that are horse industry is not worth saving, I will not stand by and watch it be devastated by unfair competition.  The industry provides tens of thousands of jobs and billions of dollars of economic activity in our state.  Not only is it and economic engine for our state, it is our heritage.  It is important to our state and it is a vital part of Oldham County.  It provides millions of dollars to our local economy, creates hundreds of jobs and protects nearly 10,000 acres of farmland.  I will continue my efforts to find other ways to level the playing field for our horse industry.

Although this Extraordinary Legislative Session began shrouded in controversy, our eight days in Frankfort produced viable solutions that will allow our Commonwealth to continue treading through these turbulent times.  While we have not found a permanent solution to our economic woes, I believe we have taken the first important steps towards laying the groundwork that will enable us to regain our financial footing.  I am committed to continuing my fight for a leaner, more efficient government.  I will also continue to work to improve our antiquated tax system.

Over the next few months, my colleagues and I will resume interim committee meetings, with our work undoubtedly focused on legislation for the 2010 Regular Session.  The schedule for these meeting can be found on the LRC website at www.lrc.ky.gov, or by calling 1-800-633-9650.  In the meantime, I invite you to stay contacted with me.  I am always available at home, you may leave a message for me by calling 1-800-372-7181 or you may reach me via e-mail at david.osborne@lrc.ky.gov.

While lobbyists played no real role in the Session, every member was lobbying for preferred committee assignments and leadership posts.  We would all like to believe that these assignments are made based on the best interests of the Commonwealth, but politics is always a factor.  While there were significant changes in leadership, I was able to maintain my committee assignments and was particularly excited to be named vice-chair of the Licensing and Occupations committee.

We also prepared for the legislative portion of the session that will begin when we reconvene on February 3^rd .  To date, nearly 200 bills have been filed for consideration this session and there are countless requests for bills that will be drafted into legislation. Over the next two months, the General Assembly’s committees will meet to debate the merits of these measures, so now is the time to begin researching legislation.   This research is a vital component to being an effective legislator because, while the bill may look simple and straightforward, it can contain unforeseen consequences or aid political agendas.  Some of these bills we have debated in prior sessions and others address recently emerging issues. 

As I am sure you are aware, our state’s $456 million budget shortfall has affected citizens from far West Kentucky to the high mountains of Eastern Kentucky and will be one of the most important issues before us this session.  I am always reluctant to support any tax increase and believe that a tax increase of any type should be a last resort.  While there is growing support for a cigarette tax increase, before making any rash decisions with such wide-sweeping effects, it is important the General Assembly thoroughly study the budget forecasts that are supported by both chambers. 

Let me assure you though, instead of accepting a quick-fix, band aide type solution, I will work towards a solution that provides lasting relief for the 4.2 million men, women and children who call this state their home  

We also will deal with several other critical issues that demand our attention if we are indeed to improve the condition of our Commonwealth. After all, our work will not be complete until we have done everything possible to advance our schools, provide protection for our citizens and bring better paying jobs to our communities. 

As I mentioned before, we will reconvene the 2009 Regular Session on Tuesday, February 3. The session presents an exciting opportunity for you to visit the Capitol and to experience, firsthand, the legislature in action. Each year, numerous schools, civic organizations, families and individuals visit the Kentucky State Capitol Building.  I hope to see many of our citizens during this year’s session because I think it’s important that you see your elected officials at work.  

As always, please feel free to contact me anytime by email at david.osborne@lrc.ky.gov.  You can also contact me by phone at 1-800-372-7181.  The General Assembly offers several toll-free lines to help you keep up with the Session.  A taped message containing information on legislative committee meeting schedules is available by calling 1-800-633-9650.  Information on the status of each bill lawmakers consider will be available on the Bill Status Line, 1-877-765-0447. Those with hearing impairments may leave messages for me by calling the TTY message Line at 1-800-896-0305. If you have internet access you can keep track through the Kentucky Legislature Home Page: http://www.lrc.state.ky.us

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Among the new laws that will take effect on July 15 dedicated to agriculture is  House Bill 484. This legislation will help to promote the use of locally-grown produce and other food products by encouraging governing boards of public postsecondary institutions to purchase Kentucky-grown agricultural products.

We also passed House Bill 131 to aid goat and sheep producers in acquiring funds in order to promotion their industry.  Goat and sheep producers will be allowed to vote on levying a “check-off” assessment on their livestock which cannot exceed more than one cent per every animal sold.  This legislation helps to maintain our role as an agricultural leader by recognizing the goat and sheep industry as another viable avenue of revenue for our farmers and producers.

House Bill 626 creates the Kentucky Proud Advisory Council and the Kentucky Proud Promotion Fund.  The use of the Kentucky Proud logo and labeling statements will be restricted and fees will be assessed for certain participants to take part in the program

House Joint Resolution 130 directs the Commissioner of the Department of Fish and Wildlife Resources to conduct a study on the growth of Kentucky’s white-tailed deer population.  Since 2006, there have been almost 3,000 deer/automobile collisions.  The study is to examine the dangers that deer present for motorists, identify high impact areas, and to present ideas and methods that could be used to deter deer from the roadways.  .  Findings and recommendations from this study shall be presented to the Interim Joint Committee on Agriculture and Natural Resources by November 30, 2008. 

Senate Bill 262 establishes the Kentucky Beekeeping Fund to protect and promote our Commonwealth’s beekeeping industry.  Currently, diseases and viruses are killing our bee population and if a solution is not found soon, our crop production will be greatly diminished due to the lack of pollination.   

Much of what we accomplished during the 2008 Session can be credited to citizens who stayed in contact with their lawmakers.  I appreciate your calls and messages and I hope you will stay in contact with me.  I can be reached at home, through the toll-free line at 

1-800-372-7181, or at david.osborne@lrc.ky.gov.

House Bill 259

The Kentucky Long-Term Care Partnership Program will be created to allow individuals with long-term care insurance to utilize those funds and still qualify for Medicaid services without exhausting all of their other funding sources. 

House Bill 551

The electronic payment of claims will be required if the contract between the insurance carrier and pharmacy benefits administrator requires an electronic submission of claims. 

All claims would be required to meet the same compliance regulations as paper claims and apply to all contracts on or after January 1, 2009

Senate Bill 96

Health insurance policies will be required to provide coverage for colorectal cancer screenings beginning January 1, 2009.

House Bill 84

Kentucky law on group life insurance will be aligned more closely to the National Association of Insurance Commissioners Group Life Insurance Model Act.  Among other things, it will eliminate the requirement that at least 75 percent of eligible group members participate and it increases the allowable coverage for dependents. 

House Bill 179

Insurance agents and companies will be directed to notify the Kentucky Department of Insurance when a life insurance policy is paid in full.  The insurer must also forward the Department of Insurance the policy holder’s full name and last known address.  

House Bill 316

Basic health benefit plans will be required to include coverage for mammograms. 

House Bill 440

Kentucky parents who are uninsured will be encouraged to seek coverage  by offering these parents the option to purchase additional coverage for dependent children who are under the age of 25.  All insured Kentuckians will be guaranteed that claims will be paid in an appropriate time frame and will be provided protection from unfair practices that may occur when insurers unilaterally modify provider contracts.

House Bill 552

A Homeownership Protection Center will be established to help counsel those who are potentially facing foreclosure on their homes.  It would also be easier and less expensive for Kentuckians to refinance their homes to escape escalating interest rates, while also making the requirements for obtaining a high cost home loan more stringent.  Mortgage brokers’ fees would be capped and discouraged against “upselling” home buyers to more expensive mortgages.

House Bill 758

Workers’ compensation self-insured groups will be regulated through an approved application as a “bona fide” trade association.  These groups will be required to provide that security deposit requirements are based on an audited statement rather than certified statement, and specify that limits on investment are based on the most recent quarterly or annual financial statement.  All self-insured groups will also be required to provide a statement of financial condition upon request and exempt any group from the requirement to purchase excess insurance coverage if that group has a fund balance of 40 percent or more of earned premiums. 

Staying in contact with you, the citizens, will allows us to more effectively serve you and truly be your voice in Frankfort.  I hope that you will contact me with any questions you might have about our work in the General Assembly or other legislative actions.   Please feel free to call me at home, through the toll-free message line at 1-800-372-7181, or you can e-mail me at david.osborne@lrc.ky.gov.

Among the new laws passed was House Bill 110 that will be known as “The Stolen Valor Act.” Any individual who falsely applies for a special military license plate, claims that they are entitled to wear military awards and decorations, or make any substantial misrepresentation of military service will be charged with a Class A misdemeanor.  

We also expanded veterans’ private sector job opportunities by passing House Bill 607.  A five year statement of eligibility for teaching will be issued to a veteran who has completed a total of ten years of active duty service, ten years of service officially credited toward armed services retirement, or ten years combination of both services.

House Bill 239 and Senate Bill 150 both provide allowances for veterans and their family members to obtain and display specialty military license plates.  House Bill 239 allows persons eligible for Gold Star Spouses license plates to receive two plates each year for their vehicles and exempts them from the fees to purchase these plates.  Furthermore, anyone who is eligible for membership in Gold Star Mothers of America or Gold Star Wives of America Associations will also be eligible for the specialty license plate.  Senate Bill 150 allows the surviving spouse of a former Kentucky National Guard member or retired veteran to keep the special license plates that are assigned to that member or veteran.

We also passed House Bill 227, legislation establishing the Indigent Veterans’ Burial Program and the Indigent Veterans’ Burial Trust Fund.  Both of these programs will help defray funeral and burial costs for our military heroes.  The Department of Veterans’ Affairs will oversee both the program and trust fund, as well as coordinate with the Department of Military Affairs to determine the eligibility of veterans for the burial program. 

Under House Bill 65, we established “The Kentucky Medal for Freedom Award” for service members who were Kentucky residents and killed on or after January 1, 1991. 

With the passage of HB 65, men and women currently returning from active duty will not be cited for driving on an expired driver’s license.  Service members must renew their license within 90 days of returning home and must be able to provide proof of out-of-state service and dates of assignment(s).  

The children of our military families will find interstate moves easier to handle through Senate Bill 68 which allows Kentucky to enter into an interstate education compact for military children. This is intended to help streamline the transfer of school records, ensure that students don’t need to repeat courses based on state curriculum differences, and make sure military children have equal access to extracurricular activities.

Over the next few weeks, I will continue to update you on more of the bills we passed into law this session.  If at anytime you have a question, concern, or would like additional information, please do not hesitate to contact me.  I can be reached at home or through the toll-free message line at 1-800-372-7181.  I invite those with internet access to e-mail me at david.osborne@lrc.ky.gov

By the time we reconvened after our 12-day veto period, the Governor had issued 10 line item vetoes from $19 billion two-year state budget.  These vetoes included eliminating language regarding the Kentucky Horse Racing Authority, language creating an economic development commission for the expansion of Fort Knox, and deleting funds for the ConnectKentucky program. 

Lawmakers also approved an additional $75 million in bonds for water and sewer projects for a total of $225 million for 118 counties.  

Other measures approved during session include: 

House Bill 2 which creates incentives for homeowners to use solar and wind energy, and to use other energy-efficient lights, windows, and insulation. The bill also requires state government and local schools to build and lease energy-efficient buildings, and establishes a low-interest loan program to help businesses and public agencies become more energy efficient.

House Bill 186 would require children ages three through six to have a dental exam before enrolling in public school or preschool beginning in the 2011 school year.  

House Bill 211 will broaden Kentucky’s child sex abuse laws while increasing penalties for abusers and those who fail to report abuse. The bill will include older children under state laws that protect minors from first-degree sexual abuse by raising the age of children covered by the law from 12 to 16, or 16 to 18, if the perpetrator is in a position of trust or authority.

House Bill 370 relating to elections will eliminate the requirement that runoff elections be held in gubernatorial primary races if no candidate receives at least 40 percent of the vote.

House Bill 484 will promote use of locally-grown produce and other food products by public postsecondary institutions. If colleges and universities use a vendor or food service, the legislation encourages them to use food produced in Kentucky.

Senate Bill 58 will increase penalties for those who torture dogs or cats.  Causing physical injury to a dog or cat as a result of torture would be a Class A misdemeanor that carriers up to a year in jail, while causing serious physical injury or death would be a Class D felony punishable by 1-5 years in prison. Currently, all torture cases involving a dog or cat are Class A misdemeanors for a first offense.

Senate Bill 64 will create incentives to help train those with math and sciences degrees who want to become certified to teach.  It also establishes a loan forgiveness program will be created to attract such individuals to the teaching field and teachers who are not certified in math or science would be given additional help to accelerate their certification in those subjects. 

Senate Bill 75 will allow students with 2.5 GPAs who are on track to graduate from college to keep their full KEES scholarship money each semester.  Currently, students with GPAs above 2.5 but below 3.0 only receive half of their award.

Senate Bill 96 will require health benefit plans to provide coverage for colorectal cancer screenings effective as of January 1, 2009.

SB 98 will provide Medicaid coverage for breast and cervical cancer treatments for uninsured women.

Senate Bill 203 will require owners of amusement park rides to complete an application for a business identification number and conduct pre-opening inspections of all amusement park rides.  

With the Governor still having veto power on the bills that were sent to him the last two days of the session, I will updating you later on the bills that were passed into law.  

In the meantime, please do not hesitate to contact me if I can provide additional information on our work, to share your thoughts or regarding a state government matter.  I can be reached at home or through the toll-free message line at 1-800-372-7181.  If you have internet access, I invite you to e-mail me at david.osborne@lrc.ky.gov

On January 8th we will convene the 2008 Regular Session of the General Assembly which will run through April 15th.  As this is a budget year, the most important piece of legislation that we will consider is Budget Bill itself, which will direct State spending for the next two years.  Complicating the usual wrangling over too few dollars and too many demands is the fact that we have seen a previously-forecasted budget surplus devoured by yet another Medicaid deficit.  While we have made unprecedented strides in Medicaid reform, and have become a model for other states, this deficit shows that we still have work to do.  Additionally, problems with the State Retirement System continue to mount and pose a real threat to the financial future of the Commonwealth.  We can no longer afford to simply discuss the issue; tough decisions must be made and solutions to the problems must be developed during the session.  The consequences of our failure are unthinkable.  Without action there will be little money left for other projects, including those that are so important to Oldham County.

Adding to the spirited debates, this year will include a few particularly divisive topics.  Leading the way will be the heightened debate over expanded gaming.  Although this has long been a widely discussed topic, the Governor’s support for the initiative combined with the public’s increasing desire to vote on the issues and our financial woes will add a new twist to the arguments for and against.   Additionally, controversial topics such as medical malpractice reform and domestic partner benefits at universities are sure to make the session contentious.  

Over the next four months you will hear fervent pleas and infuriating propaganda on all sides of these issues.  I understand that sorting though the noise of special interest groups can be difficult.  Many people will be frightened, intimidated, and outraged over things that they will hear.  As opposed to falling prey to sound bites and news clips, be patient and open-minded and become informed about the issues.  If you are ever concerned over reports from Frankfort, please take a minute to contact me.  You can also access updated legislative information on the internet at www.lrc.ky.gov and through the Bill Status Line 1-877-257-5541

While we all have strong views and opinions, it is important to be educated about each issue and receptive to alternate points of view.  Only with a full understanding can we make good and well-reasoned decisions.  It is nearly certain that we will disagree on some issue throughout the session.  Even though we may disagree, I will always respect and fully consider your position; I ask the same in return.

I encourage everyone to participate in the process.  I have just sent out my legislative questionnaire and I urge you to complete it.  If you have not received one, please let me know and I will get one to you.

I also invite you to see Frankfort and the legislature, firsthand.  School groups, civic organizations, families and individuals are always welcome.  I am happy to make arrangements for you to tour the Capitol, Governor’s Mansion, and History Center as well as see the legislature in action.  I also encourage students to participate in the Legislative Page Program.  Pages must be at least 12 years of age and accompanied by a guardian.  Please let me know if you would like additional information. 

As we remember the many things for which we have to be thankful, let us be grateful for the opportunity to live in a country with a government that allows us the freedom to debate, disagree, and resolve conflict.  During this holiday season, especially, let us be mindful of the sacrifice that so many have made for our freedom

It remains a distinct honor to serve as your state representative.  As always, feel free to contact me regarding issues of importance to you and our Commonwealth.  I can be contacted by e-mail at David.Osborne@lrc.ky.gov, by mail at State Capitol Annex, Rm. 457, Frankfort, KY 40601, or by calling the toll-free message line at 1-800-372-7181

While lobbyists played no role in the Session, every member was lobbying for preferred committee assignments and leadership posts.  While we would all like to believe that these assignments are made based on the best interests of the Commonwealth, politics is always a factor.  My lobbying paid off as I was able to retain my seats on the Tourism and Energy and Local Government Committees.  I am also excited about my new assignment to the Licensing and Occupations Committee.

It is now time to go to work researching the more than 200 bills that have already been filed.  Many bills that look good on the surface contain unintended consequences or hidden agendas, and it is important to make sure that they are thoroughly reviewed.  Some of these bills we have seen before.  Others are new to the agenda.

As in the past, I ask for your input on issues that are important to you.  While we all have strong opinions, it is important to be informed and receptive to alternative points of view.  As you know, I don’t mind sharing my views and it is nearly certain that we will disagree on some issue throughout the session.  You also know that that I truly want your input and regardless of whether we agree or disagree, that I will always respect and fully consider your opinion.

I have been overwhelmed by the response to my 2007 questionnaire.  If you have not completed yours, please take a moment to do so.  If you have not received a questionnaire and would like one, please let me know as soon as possible.  I hope to have the results when we reconvene. 

As always, please feel free to contact me anytime by email at 

david.osborne@lrc.ky.gov.  You can also contact me by phone at 1-800-372-7181.  The General Assembly offers several toll-free lines to help you keep up with the Session.  A taped message containing information on legislative committee meeting schedules is available by calling 1-800-633-9650.  Information on the status of each bill lawmakers consider will be available on the Bill Status Line, 1-877-765-0447. Those with hearing impairments may leave messages for me by calling the TTY message Line at 1-800-896-0305. If you have internet access you can keep track through the Kentucky Legislature Home Page: http://www.lrc.state.ky.us