Where We Stand 2015

Where We Stand 2015 Legislative Priority Agenda

we take a

family-centered holistic approach to

treatment 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.

service components include

Screening, brief intervention, and referral to treatment

Substance use disorder treatment

Comprehensive assessment

Residential treatment

Outpatient and intensive outpatient services

Onsite academic services

School-based behavioral health services

CHNK_1882

Individual, group, and recreation therapy Recovery support and aftercare

CHNK1882

CHNK_1882

Quality medical oversight Two serene campuses comprising a total of 84 acres Newly renovated, 33,000-square foot therapeutic day school and treatment center Staff of 70 professionals

CHNK

CHNK1882

200 Home Road, Devou Park, Covington, KY 41011 | P. 859.261.8768 | e. info@chnk.org | www.chnk.org

LETTER FROM LEADERSHIP

Steve Harper Chair of the Board Harper Oil Products, Inc., HOP Shops

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.

Jim Parsons Vice Chair, Public Affairs Taft, Stettinius and Hollister

Trey Grayson President/CEO NKY Chamber of Commerce

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

Adam Caswell Vice President of Public Affairs NKY Chamber of Commerce

Contact Us Kevin Donnelly Manager of Public Affairs kdonnelly@nkychamber.com 859.578.6391 @nkychamberkev

Kevin Donnelly Manager of Public Affairs NKY Chamber of Commerce

WWS 2015

Adam Caswell Vice President of Public Affairs acaswell@nkychamber.com 859.509.6735 @nkychamberadam

Bob Babbage Babbage CoFounder

3

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.

Background Information 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.

Colored states represent states with P3

LIFT 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.

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.

BOONE $13,023,006

KENTON $ 8,337,702 CAMPBELL $ 5,267,406

WWS 2015

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.

1% sales tax per year in 3 NKY Counties

4

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

Tax Credit

New State Tax Revenue

=

New Local Tax Revenue

+

Background Information 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.

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.

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

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.

No Legal Protections for Healthcare Providers

WWS 2015

Background Information

5

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

Background Information 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.

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

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

Background Information Today, telecommunications infrastructure is as essential as traditional infrastructure. If Kentucky intends to develop a 21st century economy, supporting industries Every month, more than 450,000 Americans switch to phone like advanced manufacturing and informatics, there services that run on wireless and Internet-based networks. 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.

WWS 2015

6

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.

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 Background Information 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.

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.

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.

Heroin NKY Chamber Recommendation:

545

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

567

447 252

Background Information

2011

2012

2013

2014 YTD*

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

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. Treatment 2. Prevention 3. Support 4. Protection

WWS 2015

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.

7

NKY Legislative Caucus Kentucky State Senate

Senator Julian Carroll District 7

WWS 2015

8

Senator John Schickel District 11

Senator Damon Thayer District 17

Senator Chris McDaniel District 23

Senator Wil Schroder District 24

Senator Paul Hornback District 20

NKY Legislative Caucus

Representative Rick Rand District 47

Representative Sal Santoro District 60

Representative Brian Linder District 61

Representative Ryan Quarles District 62

Representative Diane St. Onge District 63

Representative Tom Kerr District 64

Representative Arnold Simpson District 65

Representative Addia Wuchner District 66

Representative Dennis Keene District 67

Representative Joe Fischer District 68

Representative Adam Koenig District 69

Representative Thomas McKee District 78

WWS 2015

Kentucky House Of Representatives

9

2014-2015 Board Of Directors Officers

Chair

Steve Harper, Harper Oil Products, Inc. HOP Shops

Chair-Elect

David Heidrich, Zalla Companies, Stewart Ironworks

Treasurer

Immediate Past Chair Deborah Simpson, Multi-Craft

Secretary

Geralyn Isler, Business Benefit Insurance Solutions

Robert Heil, KLH Engineers

Leadership

Membership & Communications

Vice Chairs

Advocacy

James Parsons, Taft, Stettinius & Hollister

Business Growth & Employer Solutions Richard Field, International Affairs Mark Exterkamp, The Bank of Kentucky

Michelle McMullen, Northern Kentucky University

Post Glover

John Nienaber, Heritage Bank

Women’s Initiatives Wonda Winkler, Brighton Center

Chair Appointed Executive Committee Members

Gregory Greene, Strategic Advisers, LLC

Dave Hatter, Definity Partners

Marianne Schmidt Hurtt, PNC Bank

WWS 2015

10

Rhonda Whitaker, Duke Energy

Standing Members

Elected Members Dan Cahill Carri Chandler

John Hawkins Ryan Helwig Jean Loftus, MD, FACS Donna Salyers Mike Sipple, Jr. Tim Slaughter Amy Smith Jamie Smith Richard Tiberi Carolyn Weltzer

Philip J. Schworer, Frost Brown Todd

HORAN Toyota Motor Engineering & Manufacturing NA Pathfinder/MPI Consulting Citi Loftus Plastic Surgery Center Fabulous-Furs Centennial, Inc. Castellini Group of Companies DHL Express (USA) Inc. Business Courier Fifth Third Bank Viox & Viox, Inc.

David Armstrong Thomas More College Dr. Terri Cox-Cruey Kenton County Schools John Dubis St. Elizabeth Healthcare Cassandra Forrester Fifth Third Bank G. Edward Hughes Gateway Community and Technical College Jordan Huizenga Legacy/Children, Inc. Candace McGraw Cincinnati/Northern Kentucky

International Airport Paul Meier Municipal Government League,

City of Crestview Hills Geoff Mearns Northern Kentucky University

2014-2015 Business Advocacy Council Jim Parsons

Taft, Stettinius & Hollister

Todd McMurtry

Gerner & Kearns Co.

David Bailey

St. Elizabeth Healthcare

Brian Miller

Home Builders Assoc. Of No. Ky.

Gary Beatrice

Business Benefits Insurance Solutions

Rich Miller

CT Consultants, Inc

Jim Beatrice

Business Benefits Insurance Solutions

Van Needham

Duke Energy

Gary Bentle

CENGAGE Learning Publisher Services

John Nienaber

Heritage Bank

Brent Cooper

C-Forward, Inc.

Randy Poe

Boone County Schools

Jay Fossett

Strategic Advisers, LLC

Thomas A. Prewitt

Graydon Head

Donald Fritz

VonLehman & Company, Inc.

Philip Schworer

Frost Brown Todd

Trey Grayson

NKY Chamber Of Commerce

Deborah Simpson

Multi-Craft

Mike Hammons

Children, Inc.

David Spaulding

Turner Construction Company

B. Stephen Harper

Harper Oil Products, Inc.

H. Lytle Thomas

Heritage Bank

David Hatter

Libertas Technologies, LLC

John E. Toebben

Toebben Companies

David Heidrich

Zalla Companies

Thomas Vergamini

Taft, Stettinius & Hollister

Chuck Heilman

J.A.C.C., Inc.

Thomas Voss

DHL Global Forwarding

Patrick Hughes

Dressman Benzinger LaVelle

Scott Walton

Continental Building Products

Geralyn Isler

Business Benefits Insurance Solutions

Rhonda Whitaker

Duke Energy

Jason Keller

Time Warner

Carl Wicklund

Wagstaff

Jason Kershner

Cincinnati USA Regional Chamber Of

Jim Willman

Ashley Quarters Hotel

Commerce

Joseph Wind

Northern Kentucky University

Ian Koffler

Dinsmore & Shohl

Ted J. Zalla

USI Insurance

Polly Lusk Page

Northern Kentucky Education Council

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

Event Sponsor:

WWS 2015

Contributing Sponsors:

11