Where We Stand 2015

Where We Stand2015 Legislative Priority Agenda

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Founded in 1882, Children’s Home of Northern Kentucky

provides a comprehensive array of adolescent behavioral health services and substance use

treatment in both residential and community/school-based environments. Our licensed and

highly skilled team of professionals takes a family-centered, holistic approach to treatment.

200 Home Road, Devou Park, Covington, KY 41011 | P. 859.261.8768 | e. [email protected] | www.chnk.org

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Screening, brief intervention, and referral to treatment

Outpatient and intensiveoutpatient services

School-based behavioral health services

Substance use disordertreatment

Residential treatment

Recovery support and aftercare

Two serene campuses comprising a total of 84 acres

Newly renovated, 33,000-square foot therapeutic day school and treatment center

Sta� of 70 professionals

Onsite academic services

Individual, group, and recreation therapy

includeservice components

Comprehensive assessment

Quality medical oversight

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Steve HarperChair of the Board

Harper Oil Products, Inc., HOP Shops

Jim ParsonsVice Chair, Public Affairs

Taft, Stettinius and Hollister

Trey GraysonPresident/CEO

NKY Chamber of Commerce

Adam CaswellVice President of Public Affairs


Kevin DonnellyManager of Public Affairs


Bob BabbageBabbage CoFounder

Advocacy is a critical activity for the Northern Kentucky Chamber of Commerce and the 250,000 hardworking taxpayers that we represent. Every day, we work to improve the business climate of Northern Kentucky at the local, state and federal levels.

This publication serves as our state legislative agenda and comes directly from our members—small, medium and large businesses from across a wide spectrum of industries. Since the 2014 General Assembly adjourned, nearly 300 of our member volunteers have dedicated countless hours toward developing and refining these recommended legislative policies. Our agenda addresses key issues that will accelerate business, create jobs and continue to position Northern Kentucky as an economic driver that will benefit the entire Commonwealth.

We ask that our legislators consider our positions when making policy decisions. The hard work, ingenuity and dedication of businesses in Northern Kentucky have paved the way for economic prosperity. These policy recommendations for the 2015 General Assembly will continue to build healthy businesses, healthy communities and a healthy region. Our goal remains the same: to retain, grow and create jobs here in Northern Kentucky. We believe that by doing so, this region can serve as a catalyst in improving life for all citizens that call Kentucky home.

We look forward to working with you in advancing the Commonwealth in 2015.

LETTER FROM LEADERSHIP

Contact Us

Adam Caswell Vice President of Public [email protected]@nkychamberadam

Kevin Donnelly Manager of Public [email protected]@nkychamberkev

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Background Information

The Local Option Sales Tax provides more control to local communities by giving citizens a new tool to invest in local economic development priorities. This local flexibility affords cities and counties the opportunity to vote on a 1% sales tax increase for specific community projects that is removed after the project is completed.

The Local Option brings Kentucky in line with 37 other states already utilizing this tool and has the potential to give citizens the ability to dedicate millions of dollars to local initiatives.

LIFT

1% sales tax per year in 3 NKY Counties


P3 is a contractual agreement formed between public and private-sector partners which allows more private-sector participation than is traditional. The agreements usually involve a government agency contracting with a private company to renovate, construct, operate, maintain and/or manage a facility or system. While the public sector usually retains ownership in the facility or system, the private party will be given additional decision rights in determining how the project or task will be completed.

Through a P3, the expertise and efficiencies of the private sector can be injected into public projects. With public construction accounting for nearly $1.6 billion annually in Kentucky, more private involvement can make each taxpayer dollar go farther. A P3 can also shift the financial, design, construction and operational risks in the project from a public agency to the private sector. With the financial demand to fund the programs of state government consistently exceeding available resources, P3 legislation gives Kentucky an innovative solution that 34 other states/territories already have.

Public Private Partnerships

NKY Chamber Recommendation: Enact legislation to enable the creation of public-private partnerships for a wide range of infrastructure projects at all levels of government.

NKY Chamber Recommendation: The NKY Chamber supports the General Assembly to provide a Constitutional Amendment to the Kentucky Constitution to allow for a local option sales tax.

Colored states represent states with P3

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BOONE $13,023,006

KENTON$ 8,337,702

CAMPBELL$ 5,267,406

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The Historic Preservation Tax Credit is a critical tool for redevelopment

in both urban centers and rural towns. However, in its current structure,

the credit lacks predictability and effectiveness. Because of the cap on

the amount of credit awarded annually and the proportional allocation

of the capped credit to eligible projects, developers, bankers and

investors have no way to anticipate the amount of tax credits which

the project will ultimately receive. This makes it difficult to rely on the

credit as a financing source for difficult rehabilitation projects and

delays the redevelopment process.

Historic Tax Credit

NKY Chamber Recommendation: We encourage the Governor and the Kentucky General Assembly to modernize Kentucky’s Historic Preservation Tax Credit.

NKY Chamber Recommendation: Establish a medical review panel process that provides an independent, expert review of proposed claims against healthcare providers.

Tennessee’s state historic tax credit is projected to generate new state tax revenue of $2.24 per $1.00 of state credit awarded, plus an additional $1.62 in county & city tax revenue.

Historic Preservation Tax Credits create jobs and revive construction trades all while creating destinations for heritage tourism.

Because Kentucky competes with many bordering states for business development and jobs, it is important to make the Historic

Tax Credit a functioning tool to promote the Commonwealth’s cities as attractive places to conduct business.

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Healthcare costs are on the rise. In order for Kentucky to have the business climate needed for economic growth, these costs must be mitigated. A Medical Review Panel process is a proven way to add a layer of accountability for healthcare providers to combat unnecessary costs in the healthcare system. This process would introduce an independent panel of medical experts to review claims against healthcare providers. The panel provides a timely, independent medical opinion on the standard of care that is admissible in court, without limiting, delaying, or denying a patient’s access to court. Kentucky has one of the nation’s most litigation-friendly environments, and it is costing all taxpayers. Medical Review Panels offer a fair and proven solution to abusive healthcare litigation.

Medical Review Panels

= +

Tax Credit

No LegalProtections

for HealthcareProviders

New State Tax Revenue

New Local Tax Revenue

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Today, telecommunications infrastructure is as essential as traditional infrastructure. If Kentucky intends to develop a 21st century economy, supporting industries like advanced manufacturing and informatics, there must be the necessary infrastructure in place to do so. Consumers and businesses alike are demanding better access to new technology in more places, and modernizing Kentucky telecommunications laws is critical to creating the business climate to attract additional investment.

Current law directs investment into technologies that consumers are leaving in vast numbers and prevents that investment from being directed to expanding access to advanced broadband technologies. Allowing the private sector the flexibility to respond to market demands will attract new investment, create and retain jobs, protect consumers and build the new telecommunications infrastructure the commonwealth desperately needs to compete in a global marketplace.


Today, over 95% of businesses in Kentucky are small businesses. Kentucky’s economy is built, and will continue to expand, by small business creation and expansion. Kentucky has a solid reputation as a national leader of entrepreneurial activity at the state level, and saw it strengthened with the 2014 passage of the Kentucky individual angel investor tax credit, one of the most aggressive programs in the country.

Following a national trend in tech-based economic development that supports the “clustering” of talent, resources and programs, an Innovation District will significantly increase the connections between entrepreneurs and the greater economy, bringing the forces into alignment and enabling regions to better leverage their assets and competitive advantages. At the heart of an Innovation District is an “Accelerator” program. Accelerators provide a region with a “focus point” for its entrepreneurial talent, resources and programs.

Kentucky can be the place where startups want to be and investors want to invest. On the heels of adopting the one of the most aggressive angel investor tax credit programs in the nation, the creation of Innovation Districts is the next step to being a premier destination. This program will fill the deal-flow pipeline that will attract the interest of outside venture capital to the state. By continuing to build on our reputation of being startup and investor friendly, Kentucky will ensure an idea created here can grow here, stay here and prosper here.

Innovation Districts

Telecommunications Reform

NKY Chamber Recommendation: We request the General Assembly to build the framework to support Innovation Districts across the state.

NKY Chamber Recommendation: Expand wireless and broadband infrastructure through telecommunications reform.

Every month, more than 450,000 Americans switch to phone services that run on wireless and Internet-based networks.

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In 2013, Kentucky was ranked first among all states in percentage growth of new business establishments by the

U.S. Bureau of Labor Statistics.

“A” rating for small business friendliness

from the Kauffman Foundation

“A” rating for small business friendliness

from Thumbtack.com

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A postsecondary education Outcomes-Based Funding Model has the potential to accelerate Kentucky’s economy by producing more talent that matches the needs of Kentucky employers. It will focus our universities’ education and research on those areas that matter most to Kentucky’s future growth and development. Accelerated degree production, that strategically matches Kentucky’s talent need, is one of the most critical components of business growth and development. Where there is a concentration of appropriate talent, there will be economic success and opportunities for Kentucky’s citizens.

Currently, over two-thirds of the country have outcomes-based plans in place, are transitioning to a plan, or are having formal discussions. All of the surrounding states have a funding model or are transitioning to it, with the exception of West Virginia. Kentucky does not have a postsecondary education funding model, and hasn’t had one for some time. It’s time to remove politics from driving postsecondary investment and implement a rational, Outcomes-Based Funding Model. It’s the right thing to do for students, our economy and the state.

Outcomes-Based Funding Model for Postsecondary Education

NKY Chamber Recommendation: Adopt an outcomes-based funding model for Kentucky’s public postsecondary education institutions to support the workforce development needs of the Commonwealth. The model should:

• Establish a fair starting point• Include a short list of clear priority performance metrics• Support and reward institutions for their performance


Heroin is affecting families in Northern Kentucky without regard for status, income, family composition, race, faith or location. In addition, the University of Kentucky Center on Drug and Alcohol Research has estimated that alcohol and other drug abuse costs the Commonwealth more than $6 billion annually. While this epidemic is tearing through our region, Northern Kentucky receives the lowest per capita allocation of federal and state funds for treatment of substance abuse and mental health disorders. Simply, combating the epidemic requires more resources than are currently available.

Heroin

NKY Chamber Recommendation: Implement a comprehensive plan to combat the heroin epidemic that focuses on reducing both the supply and demand.

The Heroin Impact Response Task Force released a community plan to address this challenge. The plan is centered around four major strategies that are enveloped within a larger context of reducing the supply of drugs on the street and advocating for legislative enhancements that support the initiative:

1. Treatment2. Prevention3. Support4. Protection

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30 states currently have or are transitioning to performance based funding for higher education institutions, including 6 out of 7 of Kentucky’s bordering states.

2011 2012 2013 2014 YTD*

252

447

545 567

Heroin Overdoses at St. Elizabeth’s Emergency Departments reported from Covington, Ft. Thomas, Edgewood, Florence and Grant County locations.*YTD through October 2014

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NKY Legislative Caucus

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Senator Chris McDanielDistrict 23

Senator Wil SchroderDistrict 24

Senator Julian CarrollDistrict 7

Senator Damon ThayerDistrict 17

Senator John SchickelDistrict 11

Senator Paul HornbackDistrict 20

Kentucky State Senate

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NKY Legislative Caucus

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Kentucky House Of Representatives

RepresentativeRick Rand

District 47

RepresentativeAdam Koenig

District 69

RepresentativeDennis Keene

District 67

RepresentativeArnold Simpson

District 65

RepresentativeDiane St. Onge

District 63

RepresentativeBrian LinderDistrict 61

RepresentativeSal SantoroDistrict 60

RepresentativeThomas McKee

District 78

RepresentativeJoe FischerDistrict 68

RepresentativeAddia Wuchner

District 66

RepresentativeTom Kerr

District 64

RepresentativeRyan Quarles

District 62

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2014-2015 Board Of Directors

ChairSteve Harper,

Harper Oil Products, Inc.HOP Shops

AdvocacyJames Parsons,

Taft, Stettinius & Hollister

Chair-ElectDavid Heidrich,

Zalla Companies,Stewart Ironworks

Business Growth & International Affairs

Mark Exterkamp,The Bank of Kentucky

Immediate Past ChairDeborah Simpson,

Multi-Craft

Employer SolutionsRichard Field,

Post Glover

TreasurerGeralyn Isler,

Business BenefitInsurance Solutions

LeadershipMichelle McMullen, Northern Kentucky

University

Membership &Communications

John Nienaber,Heritage Bank

SecretaryRobert Heil,

KLH Engineers

Women’s InitiativesWonda Winkler,Brighton Center

Officers

Vice Chairs

Gregory Greene,Strategic Advisers, LLC

Dave Hatter,Definity Partners

Marianne Schmidt Hurtt,PNC Bank

Philip J. Schworer,Frost Brown Todd

Rhonda Whitaker,Duke Energy

Chair Appointed Executive Committee Members

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Elected MembersDan Cahill HORANCarri Chandler Toyota Motor Engineering & Manufacturing NAJohn Hawkins Pathfinder/MPI ConsultingRyan Helwig CitiJean Loftus, MD, FACS Loftus Plastic Surgery Center Donna Salyers Fabulous-FursMike Sipple, Jr. Centennial, Inc.Tim Slaughter Castellini Group of Companies Amy Smith DHL Express (USA) Inc.Jamie Smith Business CourierRichard Tiberi Fifth Third BankCarolyn Weltzer Viox & Viox, Inc.

Standing MembersDavid Armstrong Thomas More CollegeDr. Terri Cox-Cruey Kenton County SchoolsJohn Dubis St. Elizabeth HealthcareCassandra Forrester Fifth Third BankG. Edward Hughes Gateway Community and Technical CollegeJordan Huizenga Legacy/Children, Inc.Candace McGraw Cincinnati/Northern Kentucky International AirportPaul Meier Municipal Government League, City of Crestview HillsGeoff Mearns Northern Kentucky University

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2014-2015 Business Advocacy Council

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Thank you to our sponsors for the 2015 Where We Stand Reception

Supporting Sponsors:

Event Sponsor:

Contributing Sponsors:

Jim Parsons

David Bailey

Gary Beatrice

Jim Beatrice

Gary Bentle

Brent Cooper

Jay Fossett

Donald Fritz

Trey Grayson

Mike Hammons

B. Stephen Harper

David Hatter

David Heidrich

Chuck Heilman

Patrick Hughes

Geralyn Isler

Jason Keller

Jason Kershner

Ian Koffler

Polly Lusk Page


St. Elizabeth Healthcare

Business Benefits Insurance Solutions


CENGAGE Learning Publisher Services

C-Forward, Inc.

Strategic Advisers, LLC

VonLehman & Company, Inc.

NKY Chamber Of Commerce

Children, Inc.

Harper Oil Products, Inc.

Libertas Technologies, LLC

Zalla Companies

J.A.C.C., Inc.

Dressman Benzinger LaVelle


Time Warner

Cincinnati USA Regional Chamber Of

Commerce

Dinsmore & Shohl

Northern Kentucky Education Council

Todd McMurtry

Brian Miller

Rich Miller

Van Needham

John Nienaber

Randy Poe

Thomas A. Prewitt

Philip Schworer

Deborah Simpson

David Spaulding

H. Lytle Thomas

John E. Toebben

Thomas Vergamini

Thomas Voss

Scott Walton

Rhonda Whitaker

Carl Wicklund

Jim Willman

Joseph Wind

Ted J. Zalla

Gerner & Kearns Co.

Home Builders Assoc. Of No. Ky.

CT Consultants, Inc

Duke Energy

Heritage Bank

Boone County Schools

Graydon Head

Frost Brown Todd

Multi-Craft

Turner Construction Company

Heritage Bank

Toebben Companies


DHL Global Forwarding

Continental Building Products

Duke Energy

Wagstaff

Ashley Quarters Hotel

Northern Kentucky University

USI Insurance

Documents

Where We Stand 2015