Government Affairs

Legislative Alerts

2008 LEGISLATIVE SESSION

As developments warrant, AIA Kentucky may periodically send out Legislative Alerts requesting members to take specific action in regard to matters under consideration by the Kentucky General Assembly. Often, these requests require IMMEDIATE action. Such is the nature of the work of the General Assembly. Please keep your eyes open for email alerts titled “AIA KY LEGISLATIVE ALERT” and take appropriate action! We will also post updates here.

Legislative Update - April 2, 2008

Two Senate bills supported by AIA Kentucky in the 2008 Kentucky General Assembly have been approved by both chambers and will soon become law:

Senate Bill 23 - Board of Architects bill - The bill was approved by the House on March 27, 2008 by vote of 97-0 and now awaits the Governor's signature.

Senate Bill 100 - State Procurement Specifications - The bill was approved in the House on March 27, 2008 by vote of 97-0 and now awaits the Governor's signature.

Unfortunately, the energy efficiency bill we have supported, House Bill 2, has been stalled in the Senate after passing the House 97-0. There is still a chance for enactment this year but time is running short. Thank you to any of you who made contact with your Senator to encourage him or her to consider this bill.

The newspapers today say a budget agreement has been reached. However, there are still indications that further revisions may be made and an affirmative vote by both the House and the Senate is not assured. Stay tuned.

Legislative Update - HB 2 - March 11, 2008

HB 2 Approved by House, Moves to Senate

Legislative Update - March 5, 2008

Here's an update on several key bills AIA Kentucky is following in the 2008 Kentucky General Assembly. Three bills that contain provisions calling for sustainable design in state buildings are under consideration and being closely followed:

House Bill 2 - Promoting Energy Efficiency in Public Buildings - This bill contains several provisions in support of energy efficiency in public buildings, including:

- creates a High-performance Buildings Advisory Committee to make recommendations to the Finance and Administration Cabinet
- directs the Finance and Administration Cabinet to promulgate administrative regulations and develop standards and criteria for high performance buildings.
- creates tax credits for purchase of energy efficient products the purchase or construction of an ENERGY STAR home or ENERGY STAR manufactured home.
- requires boards of education to enroll in the Kentucky Energy Efficiency Program.

This bill was approved by the House Appropriations and Revenue Committee today and now goes to the full House for consideration. AIA Kentucky supports this legislation.

House Bill 517 - Energy efficiency in new state buildings - The bill requires construction or renovation of buildings financed primarily by the state to meet the LEED certified standard; and provides some exemptions. AIA Kentucky is supportive of sustainable design for public buildings but believes the way this bill was originally drafted was problematic. We have offered alternate language to the bill's sponsors, Rep. Carl Rollins (D-Midway) and Rep. Scott Brinkman (R-Louisville), most of which has been incorporated into a committee substitute bill that has been assigned to the House State Government Committee for consideration. We learned today that Rep. Rollins, who is a co-sponsor of House Bill 2 (see above) will pull HB 517 and instead support HB 2.

Senate Bill 168 - Sustainable design in school buildings - The bill creates new sections of KRS Chapter 157 to support and encourage the renovation and construction of school buildings using sustainable design concepts and to encourage the use of life-cycle cost analysis evaluating design proposals; establishes a sustainable school design trust fund; requires the Department of Education to develop and publish guidelines for sustainable school design, net zero buildings, and life-cycle cost analysis; requires the Department of Education to provide annual reports; provides an appropriation of $10 million in bond funds and associated debt service to support the development of up to two net zero pilot project schools; provides funding to support the use of sustainable school design.

AIA Kentucky supports this legislation. However, SB 168 was originally scheduled to be heard in Senate Education on February 21, but it was abruptly pulled from the committee agenda and was assigned to the Appropriations and Revenue Committee this afternoon. This move often means bills are "dead", but we are uncertain as to the fate of the bill at this point.

Other bills we are following include:

Senate Bill 23 - Board of Architects bill - This bill, sponsored by Senator Gary Tapp, Chair of the Licensing and Occupations Committee, contains several changes to the architects registration statute and the interior designer certification statute. AIA Kentucky supports this legislation, which has passed the Senate and is expected to be heard in the House Licensing and Occupations Committee this week.

Senate Bill 100 - State Procurement Specifications - Senator Tapp is also the sponsor of this legislation, which requires state government to write specifications in a manner that allows more than one company's product to be considered as long as certain conditions are met. A committee substitute version of this bill has been prepared with input from AIA Kentucky, the Finance Cabinet, the Kentucky Department of Education, the universities and others. This version has passed the Senate and is expected to be heard in the House State Government Committee this week.

Note: Periodic updates on these and other bills are posted on the AIA KY Legislative Alerts page on our web site. To view the most recent versions of bills, use the link below and click on the appropriate bill number.

Kentucky General Assembly Legislation Page

Legislative Update - February 26, 2008

Since our February 5 update (below), several other bills have been filed and or amended:

Senate Bill 23 - Board of Architects bill. The bill passed the Senate Licensing and Occupations Committee with two amendments that are acceptable to the Board of Architects and AIA Kentucky.  Passed in the Senate (35 to 0) on February 26, 2008. The bill now goes to the House for consideration.

Senate Bill 100 - State Procurement Specifications - Extensive revisions have been made with input from AIA Kentucky, Finance Cabinet, Department of Education and UK officials. The Committee Substitute Bill incorporating these changes and also extending its requirements to local governments and schools, passed the Senate 37-0 on February 20.  The bill has been assigned to the House State Government Committee. 

Senate Bill 168 - Sustainable design in school buildings. The bill creates new sections of KRS Chapter 157 to support and encourage the renovation and construction of school buildings using sustainable design concepts and to encourage the use of life-cycle cost analysis evaluating design proposals; establishes a sustainable school design trust fund; requires the Department of Education to develop and publish guidelines for sustainable school design, net zero buildings, and life-cycle cost analysis; requires the Department of Education to provide annual reports; provides an appropriation of $10 million in bond funds and associated debt service to support the development of up to two net zero pilot project schools; provides funding to support the use of sustainable school design.

AIA Kentucky supports this legislation.  However, SB 168 was originally scheduled to be heard in Senate Education on February 21, but it was abruptly pulled from the committee agenda and was assigned to the Appropriations and Revenue Committee this afternoon. This move often means bills are "dead", but we are uncertain as to the fate of the bill at this point.

House Bill 517 - Energy efficiency in new state buildings. The bill requires construction or renovation of buildings financed primarily by the state to meet the LEED certified standard; and provides some exemptions.  AIA Kentucky is supportive of sustainable design for public buildings but believes the way this bill is drafted is problematic.  We have offered alternate language to the bill's sponsors, Rep. Carl Rollins (D-Midway) and Rep. Scott Brinkman (R-Louisville), along with sample legislation that has been enacted in other states.  We believe our suggestions are under consideration, and we will continue to discuss with Rep. Rollins and other legislators.

Senate Bill 145 - requires transportation cabinet to incorporate bicycle and pedestrian ways into their planning and development.  AIA Kentucky supports. The bill has had its second reading in the Senate and is expected to pass the full Senate this week.

Legislative Update - February 5, 2008

AIA Kentucky is tracking several bills during the 2008 session of the Kentucky General Assembly, now under way in Frankfort. While the session got off to a slow start, bills are beginning to move. Here's a recap of bills AIA Kentucky is following:

Senate Bill 23 - Board of Architects bill - This bill, sponsored by Senator Gary Tapp, Chair of the Licensing and Occupations Committee, contains several changes to the architects registration statute and the interior designer certification statute. AIA Kentucky supports this legislation, which had its second reading in the Senate on Friday and is expected to be heard in the House within the next couple of weeks. Key provisions include:

- increase maximum penalty that the board may impose to $10,000
- create an architect emeritus licensing category
- permit the board to employ staff, obtain office space, and acquire supplies and services
- permit the board to assess reasonable administrative fees for copies of documents, mailing costs, and duplicate forms
- change the official name of the board to "Kentucky Board of Architects"
- stipulates that only persons certified under KRS Chapter 323 may use the term "certified interior designer"
- removes the grandfathering provision for interior designer certification, which is no longer applicable since the time frame in the original law has passed.
- permit the cost of investigation and prosecution to be added to any penalties imposed under KRS Chapter 323
- adds language clarifying that all public construction by the state or its political subdivisions that involve "the practice" of architecture or engineering as defined in applicable statutes be done under the supervision of a licensed architect or professional engineer. Language has been added that specifically excludes any residential dwelling that falls under the Kentucky Residential Code.

Senate Bill 100 - State Procurement Specifications - Senator Tapp is also the sponsor of this legislation, which requires state government to write specifications in a manner that allows more than one company's product to be considered as long as certain conditions are met. AIA Kentucky is reviewing this bill and would like to offer our support for it, pending input from members.

House Bill 124 - Landscape Architects bill
- This is basically a housekeeping bill that makes changes to the law governing landscape architects Rep. Susan Westrom of Lexington is the sponsor. AIA Kentucky has taken no position on this bill.

House Bill 157 - Feasibility Study Requirement for Schools - Sponsored by Rep. Rick Nelson, this bill requires any school costing more than $10 million dollars to undergo a feasibility study. AIA Kentucky is neutral on this legislation at this point, but we are following it closely.

House Bill 251 - Government Contracts - Rep. Brent Yonts has filed this bill the last several sessions but it has failed to pass. It makes changes to the law regarding government contracts and the government contract review committee. AIA Kentucky has taken no position on this bill.

House Bill 270 - Capital Outlay Funds for Schools - This bill allows school districts to petition the commissioner of education to use capital outlay funds for land acquisition and for high growth districts to petition to use these funds for operating expenses for two years after a new school opens. AIA Kentucky supports this bill, as it is in line with recommendations of the state's School Facilities Task Force in 2006.

Note: Click any of the bill numbers above to link to the actual bills online.

Kentucky General Assembly - Legislation Page

Legislative Update - HB 490 - April 9, 2007

HB 490 Signed by Governor on April 5, 2007

House Bill 490, the so-called Fairness in Construction Act, finally gained concurrence by both the House and the Senate and was passed by both chambers during the final days of the 2007 Legislative Session. This resulted after earlier versions passed by both the House and Senate were rejected in favor of a mutually agreed bill that included even more last-minute amendments. The final version exempts "processing equipment" used for the process of manufacturing. The bill was signed into law by the Governor on April 5, 2007.

To summarize, this legislation has impact in three general areas:

1) Declares void and unenforceable any contract language that disallows certain remedies for dispute resolution or waives lien rights.

2) Provides prompt pay provisions that outline requirements for determination of retainage amounts, release of retainage, payments to contractors and subcontractors, and interest on undisputed, unpaid amounts.

3) Amends the lien law by extending the time a contractor has to file a lien.

AIA Kentucky cannot render a legal opinion about what the bill means or how it may be interpreted in the courts. We DO advise you to read the law carefully and consult with your own attorneys as you normally would when managing contracts for your construction projects. 

Click here to view the bill "as enacted."

AIA KENTUCKY
POSITION STATEMENT ON HB 490

Kentucky Fairness in Construction Act
prepared February 27, 2007

The Kentucky Chapter of The American Institute of Architects (AIA Kentucky) has concerns about this bill because:

• The General Assembly should not infringe on the liberty that Kentucky citizens have traditionally enjoyed to “craft their own deal.”  It is not the role of government to legislate the allowable terms of contractual agreements between parties, be they public entities or private entities and individuals.
  A recent court ruling stated:  "As the right of private contract is no small part of the liberty of the citizen, the usual and most important function of courts is to enforce and maintain contracts rather than to enable parties to escape their obligations on the pretext of public policy or illegality. If the legality of the contract can be sustained in whole or in part under any reasonable interpretation of its provisions, courts should not hesitate to decree enforcement." Cumberland Valley Contractors, Inc. v. Bell County Coal Corp., --- S.W.3d ---, 2007 WL 188041 (Ky. 2007).
• Industry standard documents that are widely used in the construction industry already contain adequate remedies for the situations that this bill seeks to address.  Timelines for payment, interest on unpaid amounts, escrow terms, and methods to resolve disputes are all clearly spelled out. Often these terms are variable and as such are negotiated up front and agreed to by all parties. If any party does not meet the terms of these contracts, relief is available through a variety of means including negotiation, arbitration, mediation and the courts.
• The contractor groups seeking this legislation did not seek input from other members of the construction team while crafting the bill. Owners will have their right to contract as they see fit taken away if this bill passes.  “Fairness in Construction” should be applicable to everyone on the team, as all parties to a construction project must work together to realize a successful project.  These include owners, architects, engineers, contractors, attorneys, bonding agents, insurers and others. Over the past 10 days or so various public and private owners or their representatives have scrambled to suggest alternate language to make the bill more palatable.  The result is a mishmash of amendments upon amendments that renders the bill confusing, often contradictory, and impossible to evaluate.
• This bill creates “one size fits all” contract terms that are not adequate to meet the requirements of a wide range of business relationships and a wide range of projects in the construction industry.  As written it would supersede existing construction contracts used by the Kentucky Division of Engineering, the Kentucky Department of Education, local school boards, city and county governments, and all private businesses. Current and future business owners who treasure the liberty to establish their own contractual relationships in Kentucky will find a good reason to expand or relocate elsewhere if they must adhere to arbitrary contract terms in this state.
• Is it the legislature’s desire to control commerce via legislative action?  This bill would set a precedent in the Commonwealth that could encourage other special interest groups to seek legislative mandate of what should be negotiable elements of business relationships and transactions between willing parties. There is no need to create this slippery slope to address the perceived problems of a few contractors, for which remedies already exist.
• As the owner’s representative on construction projects, architects often step in to address issues of quality, conformance with specifications, and completeness.  Although the Bill is not directly aimed at Architects/ Engineers, if passed as is, it will expand the risk that architects/engineers and construction managers will be drawn into payment and performance disputes between owners, contractors and subcontractors.
• This bill could mean that contractors will get paid without properly completing their work.  In everyday practice, the carrot of the retainage is sometimes the only thing that will get some contractors’ attention to come back and finish the job. There is no distinction made between contractors who are doing good work and those who are not.  The retainage is a means to make this distinction, and often can turn potentially “bad” jobs to good by requiring completion of acceptable work before full payment is made.

Home | AIA Leadership | Member Programs | News | Government Affairs | Calendar | Find an Architect | Allied Members | Local AIA Chapters | AIA National Resources | Industry Links