Video & Transcript Research : '544 LOB @ 10:00 AM Committee webpage: https://www.ncleg.gov/Committees/CommitteeInfo/Senate/138'

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Summary: The Appropriations and Revenue Committee took up several House bills and committee substitutes. House Bill 2, as amended by Senate Committee Substitute 1, was described by Rep. T.J. Roberts as restoring a tax exemption enacted in 2024 by providing refunds with interest to those improperly taxed and creating a cause of action; the substitute also aligned state filing deadlines for certain flood-disaster counties with the federal November 15 deadline. The committee adopted the substitute and then passed the bill with favorable expression. The committee also adopted a title amendment for House Bill 544, which Rep. Jason Petrie said was part of the state’s flood-relief discussion and would allow the guard cap to be used over the biennium rather than annually, effectively increasing the cap from $50 million per year to $100 million over two years; the measure passed with favorable expression. House Bill 552, handled by Rep. Josh Bray after Rep. Kim King’s absence, was described as simplifying tourist commission appointments. The committee substitute added creation of the Kentucky-Ireland Trade Commission and changed marina licensing agreements by exempting private contractors from the model procurement code. The committee adopted the substitute, approved a title amendment, and passed the bill with favorable expression. House Bill 605, sponsored by Rep. Kim King, clarified which grants qualify for a grant program and allowed cities or counties to apply on behalf of water districts or other entities not directly affiliated with them; Rebecca Hearts of Grant Ready Kentucky said the program had matched $103 million of the $200 million allocation, generating about $469.98 million in total project value. The committee adopted the title amendment and passed the bill with favorable expression. House Bill 606, by Rep. Wade Williams, added a capital-oversight reporting requirement for school district general obligation bonds that had been omitted from prior legislation. The committee substitute also made several budget and program adjustments, including moving Regional Training Center funds, accelerating funding for the Grand Lyric Theater, correcting water funding language, removing Odyssey Inc. language from a treatment-related item, fixing a double appropriation to LifeWorks Transition Academy, clarifying carry-forward language, allowing SRO reimbursements for public and non-public schools, and authorizing an additional $10 million in agency bonds for Western Kentucky University athletic facilities. The committee adopted the substitute, approved a title amendment, and passed the bill with favorable expression. The committee then spent the most time on House Bill 695, a Medicaid-related bill. Rep. Adam Bowling said the bill was intended to stabilize Medicaid, create oversight and advisory mechanisms, and address growth in the program. Cabinet for Health and Family Services Secretary Eric Friedlander and Medicaid CFO Steve Beckle said they were generally supportive of the transparency and reporting changes but flagged risks, including federal compliance concerns, budget growth from changing the drug rebate treatment, administrative costs tied to MCO rebidding and a managed long-term services study, and some data-collection challenges. Representatives from the Kentucky Association of Healthcare Facilities opposed the section calling for a managed long-term care reimbursement study, arguing it would be costly, duplicative, and likely ineffective, and they warned against managed care models for long-term care. Despite the concerns, the committee adopted the committee substitute by voice vote and moved the bill forward with favorable expression.