McGraw Hill
Posted: Thursday, August 26, 2010Blog: AGCKY Pages
New Members: July/ August/ Septmeber 2010
Posted: Monday, August 02, 2010Blog: News
July 2010
Eco Services, LLC
Board of Directors
Posted: Monday, July 12, 2010Blog: AGCKY Pages
New Members: April / May / June 2010
Posted: Wednesday, June 30, 2010Blog: News
| Apr-10 |
| Hall's Communications, Inc. |
| A & A Mechancial Service, Inc. |
| Perkins Construction |
| May-10 |
| Bachman Auto Group |
| Set Industrial Services, Inc. |
| Liberty Holding Group |
| P & P Company |
| Integrated Facility Systems |
| Five D Enterprises |
| Walker Mechanical Contractors, Inc. |
| Brinley Masonry, LLC |
| Marine Solutions, Inc |
| Turner Construction |
| Jun-10 |
| American Roofing & Metal Co., Inc. |
| Baldwin CPA's, PLLC |
2010 Extraordinary Session Ends
Posted: Tuesday, June 01, 2010Blog: Legislative Update
During the 2010 "special session" last week your AGC of Kentucky Government Affairs Team was successful in lobbying for nearly $500 million in new bonding for among other items state funded construction projects including Category 5 schools along with an acceleration of the Job Creation Tax credit.
Funding for the state's schools most in need of replacement (Category 5) was solved after considerable discussion and negotiations thus clearing the way for passage of the state budget. Under the final plan, the state will match funding for local school districts that levy a "second nickel," or 5 cents per $100 in property value.
The accelerated tax credit will enable small business employers to use 2009 as the base year of employment for applying for tax credits for the 2010 Tax year. Eligible AGC of Kentucky members with 50 or fewer employees can receive the tax credit of up to $25,000 for hiring one new employee in 2010 along with a capital investment of at least $5,000.
The Tax credit acceleration along with passage of House Bill 5, Unemployment Insurance legislation saving Kentucky employers nearly $700 million were the top legislative priorities of the AGC of Kentucky and our allies in the KY Small Business Caucus during the "special session".
A very special thank you to Senate Appropriations & Revenue Committee Chair Bob Leeper, I-Paducah who met with a delegation of Small Business Caucus members including a representative from AGC of Kentucky and agreed to sponsor an amendment to the budget bill. Rep. Tanya Pullin D-South Shore efforts in the House were also instrumental in our success. Thanks also to all the legislators who voted for HB-5, sponsored by House Speaker Pro Tempore Larry Clark, D-Okolona.
The two-year, $17.1 billion spending plan House Bill 1 reached the governor's desk following final legislative passage at the conclusion of day five of the "special session", staving off a threatened government shutdown on July 1.
The plan includes no new taxes and includes new general fund bonding of $437 million.
Also headed to the governor is House Bill 2, the revenue package needed to pay for the two-year budget. Among the provisions added to by the Senate were tax incentives aimed at benefiting rural and low-income communities through business investment and philanthropy.
Another amendment to HB 2 directs coal severance money into a scholarship program aimed at drawing pharmacy students into coal counties. The program is similar to those aimed at bringing badly needed doctors into the rural Kentucky, with each year of service offsetting a year of school loans. Students who decide not to fulfill their end of the contract would be required to pay back the loans. Students from coal counties would be given preference for the scholarships.
The session continued into the Memorial Day weekend with legislators meeting on Saturday May 30th to finalize the state "road plan". Soon after the final passage of the road plan, a press release was issued touting among other projects the inclusion of $62.5 million for Kentucky’s share of a new bridge across the Ohio River between Milton, Ky., and Madison, Ind.
The new bridge was one of dozens of projects in the $4.45 billion road project legislation which the General Assembly ultimately passed during the 6 day "special session".
The Transportation Cabinet’s operations budget of about $5 billion and the two-year road plan were the last two major pieces of legislation still in play that the legislature hoped to approve on Saturday.
Following it's passage the House and Senate adjourned "sine die" at approximately 11 pm Saturday evening and sent the legislation on to the Governor for his signature.
2010 Legislation Government Affairs Special Session Construction Budget HB-1 HB-2 Road Plan Tax Credit
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AGC of Kentucky
Posted: Monday, May 24, 2010Blog: Home Page Section 2
AGC of KY Top Legislative Issue Passes as 2010 Regular Session of the Kentucky General Assembly End
Posted: Friday, March 19, 2010Blog: Legislative Update
"Mr. Speaker, I would move you sir that ...we adjourn sine die, until the first Tuesday following the first Monday of the Year of Our Lord 2011, unless called into extraordinary session by the Governor of the Commonwealth."--Speaker of the House, Greg Stumbo.
Sine die is latin it means 'without a day.' In the parlance of government, it means literally the end, no more it's ovah.
That quaint parliamentary motion is always much anticipated by lawmakers, legislative staff, reporters, lobbyists, and others who've worked a winter session's long cold hours. And when the motion came in both chambers late Thursday April 15th, the 2010 General Assembly officially ended and entered the history books.
Fortunately, though no budget was passed by the legislature AGC of Kentucky's top legislative priority--mirror bid preference for state contractors did pass and has gone to the Governor for his signature.
The session went down to its last hours with its major challenge hanging unresolved--the passage of a state budget. And in those final hours, the venerable adjournment motion from a past era hinted at a likely future -- being called back into special session.
The state budget has been this session's Holy Grail and the search for it has provided most of its narrative. And fittingly, nearing its final page, the session took a pythonesque plot twist--A House proposal to pass a one-year 'continuation budget' to keep government operating at current funding levels until a formal budget could be agreed to, either in special session or in regular session next year.
The outcome though not ideal was a possibility until the very end but by mid-afternoon on the session's 60th and last day -- the Senate announced it was adjourning without taking up the proposal and the suspense ended. It was a rather undramatic ending to the session.
Lawmakers convened on Jan. 5 to face a staggering projected revenue shortfall. Some said it was $1.5 billion. Almost everyone agreed it was at least a billion. Kentucky has suffered through repeated shortfalls in recent years, hundreds of millions of dollars worth in fact and projection, but this was by far the biggest challenge the state has every faced. By nearly any measure, this was a deficit unlike any we've seen in the state's history.
Gov. Steve Beshear was first to offer a plan to deal with it, when he delivered his Budget Address to a joint session in the House Chamber in early January. It featured spending cuts, savings and economies across state government, some borrowing, and some plain optimism. But its $17.5 billion in spending also counted upon $780 million in projected new revenues from legalizing electronic slot machines at state racetracks.
By the time the chamber lights dimmed that night, it was clear from leaders' reactions that slots were politically impossible in this Legislature. And so was the governor's budget. By sundown the next day, lawmakers had set about writing their own spending plan from scratch.
As the Constitution requires, the House went first. Its budget contained no slots revenues. But it did include some short-term tweaks in the business-tax code that would raise between $200 million and $300 million (estimates varied widely) in the two-year budget cycle. It also made some headlines by cutting two instructional days from the school calendar, although it preserved basic SEEK funding for schools. It cut agency spending pretty much across the board, counted on yet-undeclared federal stimulus money for Medicaid, and called for cuts in state political and contract hiring.
It also specified something that would set the stage for future impasse - a billion dollars in bonded debt to build new schools to replace aging ones, plus water and sewer projects statewide.
The Senate, in its turn, cut government spending more deeply than the House, dumped the business-tax changes as unacceptable tax increases -- and said no to House bonding for projects. Senate leaders said piling on more debt with state finances stretched water-thin and the economy in grim recession would cause a 'death spiral of debt' in coming years.
And so, in late March, began the semi-annual conference-committee dance between the two chambers -- give some, take some, as conferees tried to find a common-ground compromise budget all could live with.
First indications about the negotiations were optimistic. Specific spending details seem to have been resolved, or were at least resolvable. But finally, negotiations derailed on a point of basic principle: Would taking on significant new bonded debt for badly needed school and water-and-sewer construction projects be an economic boost, essentially a 'jobs bill' to put Kentuckians back to work in our important construction industry and speed the road to economic recovery or an irresponsible deepening of public debt by a state already in perpetual financial uncertainty because of a chronic structural imbalance in its budget?
House leaders argued for bonding. There was $1 billion of it in their original proposal, although the total came down dramatically as various compromises were floated. Most of the money would go to replace dilapidated schools. House leaders said their original package would stimulate the state's recession-ravaged economy and create 25,000 jobs for out-of-work Kentuckians. State unemployment has risen past 10 percent, and is certainly more if you count the thousands of 'discouraged' job seekers who've just quit looking.
Senate leaders pointed to that same recession and countered that piling on $1 billion in new debt would send the state into a 'debt death spiral.' They said the time has come to seriously belt-tighten government, share in the recessionary pain business and families feel, and address the chronic structural imbalance that has plagued Kentucky's budget too long. To do otherwise would just perpetuate and worsen the underlying problem, they said.
Despite various good-faith efforts by both sides to reach compromise over the veto recess and as the inexorable session clocked ticked down, the chambers finally threw in the towel on the session's penultimate scheduled day. By that point, just as a practical procedural matter, a new bill could not be printed and prepared for a vote before the mandated April 15 adjournment. The House's 11th hour proposal for a continuation budget never flew in the Senate
The governor will have to bring lawmakers back to Frankfort for a special session - what the sine die motion calls an 'extraordinary session' -- before July 1 to pass a budget for the coming fiscal year.
It should be noted this is potentially 'new' history being written. While a couple of times in recent years a budget wasn't in place when the new fiscal year began, in those cases governors kept government going by executive order.
But recent court rulings have limited the governor's authority to keep a budgetless government operating to certain essential functions, like corrections. 'Non-essential' services like parks would have to shut down. Basically, people will notice, unlike in past years. It would be uncharted waters.
So one hundred and seven days after the 2010 General Assembly convened Jan. 5 in great uncertainty, the session is over for now. But great uncertainty remains as the Governor's office issued a statement to the press asserting his intention to call the members of the General Assembly back to Frankfort in May.
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AGC President Mattingly Testifies on HB-553
Posted: Tuesday, February 23, 2010Blog: Competitive Edge
House Bill 553 sponsored by House Economic Development Committee Chair Rep. Palumbo of Lexington would establish a revolving construction loan fund for commercial building construction projects guaranteeing up to 25% of the cost of the project not to exceed $2 million on any single project.
In their testimony before the committee both AGC of Kentucky President Paul Mattingly and AIA Kentucky President Alvin Cox described the great difficulties facing the construction industry today and the importance of working together on behalf of our members.
President Mattingly noted, "During 2009 Kentucky's construction industry experienced a job loss (seasonally adjusted) of over 13,000 workers. In January of 2010 nearly 75,000 construction workers nationally lost their jobs according to federal unemployment figures as the construction unemployment rate jumped to 24.7%."
President Cox testified "This situation not only affects our members but the state as a whole. AIA Kentucky is very concerned about this issue and after discussing the matter with our friends at AGC we began looking for solutions."
While House Bill 553 will not solve the whole problem it will send a powerful signal that Kentucky plans to be aggressive in fighting it's way back to economic health.
The legislation passed the committee unanimously.
Please take a moment and call the message line at 1-800-372-7181 and thank Rep. Palumbo for her support of AGC and Kentucky's construction industry.
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Draft Budget Bill Expected, Retainage Bill HB-317 Withdrawn
Posted: Tuesday, February 23, 2010Blog: Competitive Edge
As the clock continues to tick-tock on a session still without a formal budget proposal, the General Assembly this week stared down the barrel of what one leader called its 'defining moment,' moving ahead with what another leader called its greatest challenge since at least 1990.
That challenge: Going it alone and writing a balanced budget from scratch, without broad tax increases or Draconian program cuts -- and without working from the governor's own proposed budget, with its $780 million from presumed racetrack slots revenues to help plug a budget gap of a billion dollars or more. Lawmakers from both chambers have rejected the slots idea as unpassable this session.
The budget bill will originate in the House. But leaders from both chambers have been cooperating in 'big picture' discussions about the overall parameters of a budget approach the Senate and House could agree to. This as data was being gathered across the whole spectrum of state government, so the House budget committee could produce a specific working document to start the actual legislation moving.
At week's end, a model bill draft had been prepared, ready for the last of that information to be plugged in, in hopes it could be completed and sent to the House budget committee next week. It's still planned that the House finish work on its budget bill in time to send it to the Senate by early March.
Senate President David Williams and House Speaker Greg Stumbo have agreed the budget will not be based on new revenue but, it may anticipate an extension of federal Medicaid funding. Despite yet another call from Governor last week to consider gaming as a source of revenue, legislators from both sides of the aisle have dismissed this idea as a method to shore up the state's budget in the current session of the General Assembly.
In other activity after further consideration Representative Kent Stevens (D-Lawrenceburg) agreed to withdraw HB-317 legislation which appeared to undermine or possibly undo many of the compromises sought by AGC of Kentucky in the passage of HB-490 the landmark 2007 legislation "The Kentucky Construction Fairness Act". AGC of Kentucky would like to thank Rep. Stevens for his willigness to reconsider alternative solutions and appreciates the efforts of Rep. Yonts (D-Greenville) the original sponsor of HB-490 for his continued support of the construction industry.
The AGC of Kentucky Government Affairs Committee met on Friday Feb. 12th to review a number of legislative issues and highlights from the meeting included discussion of and support for SB-45 (Tapp) Resident Bidder Legislation and HB-349 (Clark) the Unemployment Insurance bill which contains recommendations of the Governor's Task Force on Unemployment Insurance. The committee also discussed a number of bills currently being drafted including Rep. Pasley's Clean Diesel in Construction Tax Credit and Rep. Palumbo's Construction Loan Guarantee Program which will be introduced later this session.
AGC of Kentucky Supports the Bluegrass Green Entrepreneur Program
Posted: Monday, February 15, 2010Blog: Competitive Edge
The Bluegrass Green Entrepreneur Program is a program by the Bluegrass Area Development District and the Kentucky Student Ventures Corporation to provide entrepreneurial training, work experience and assistance to economically disadvantaged participants, ages 18-24. All AGC of Kentucky members in the Lexington-Fayette Urban County area are encouraged to participate.
Employer FAQ's
How long is my commitment?
Participants will work and learn at your business for 6 hours a day, 3 days per week for six weeks.
Do I pay the participants?
No. The participants will be paid $7.25 per hour for 30 hours per week and are employees of Bluegrass Area Development District and they are covered by BGADD Liability Insurance and Workers Comp. There is no cost to the employer. We do ask that you keep track of their time as if they were your employees.
What are the participants supposed to learn from my business?
We are asking employers to provide participants with varying experiences druing their six week placement in order to help them understand the breadth of running a business - and to introduce participants to human resources, accounting, sales and marketing, production and more.
What is the KSVC?
The Kentucky Student Ventures Corporation, is a non-profit organization, offering opportunities for participants to learn how to start and run a low-cost, low-risk small business, and to develop a business plan for a "green" business or a business that utilizes sustainable "green" business practices. KSVC educates, trains and mentors high school and college-age students in order to encourage entrepreneurial skills necessary to create and operate successful student-run small businesses.
How does my business become a part of the Bluegrass Green Entrepreneur Program?
To sign up your business or for information about the Bluegrass Green Entrepreneur Program, contact: AGC of Kentucky Assistant Executive Director, John Brazel at .(JavaScript must be enabled to view this email address) or Bobby Clark, Kentucky Student Ventures Corporation, (859)-233-0236 .(JavaScript must be enabled to view this email address) or www.kystudentventures.org.
Legislation to Watch
Posted: Monday, February 15, 2010Blog: Competitive Edge
SB 45 (Tapp) AGC supported legislation to give bid preference to Kentucky contractors on state projects and promote "best value" bidding.
AN ACT relating to state contracting practices.
Create a new section of KRS Chapter 45A to give preference to Kentucky resident bidders in state construction contracts; require this preference to apply against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state; specify that this preference is equal to the preference given or required by the state of the non resident bidder; "best value" to include the requirement to communicate the preference in the invitation for bids; amend KRS 45A.085, 45A.090, 45A.180, and 45A.182 to conform; amend KRS 162.070 to include the preference for a resident bidder in accepting bids for secondary school construction contracts; amend KRS 164A.575 to add that "best value" shall be determined in accordance with KRS 45A.070 for postsecondary school capital construction contracts.
Passed the Senate 38-0 with our floor amendment attached. AGC members are encouraged to call the toll free Legislative message line at 1-800-372-7181 and urge your state Representative to support SB-45, the Kentucky Contractors Resident Bidder Preference Bill.
HB-302 (Pasley) AGC of Kentucky supported bill which passed the House last week 93-2. The legislation would appropriate debt service and authorize agency bonds for the Department of Military Affairs to construct a hangar at
Bluegrass Station.
HB 42 (Damron) AGC supported legislation that would allow Kentucky's public universities to issue bonds for revenue generating projects.
AN ACT relating to postsecondary institution debt.
Create new sections of KRS Chapters 48 and 164A to provide a process for postsecondary institutions to issue agency bonds upon authorization by the General Assembly; amend KRS 48.180 to conform.
HB-275 (Moore) AGC of Kentucky supported legislation that would provide a job stimulus tax credit for Kentucky employers.
AN ACT relating to employer tax credits.
Create a new section of KRS Chapter 141 to allow a job stimulus tax credit equal to the amount of tax deducted and withheld from wages paid by an employer to a qualifying employee; amend KRS 141.0205 to place the tax credit within the applicable order.
SB 40 (Thayer) and HB 128 (DeCesare) AGC supported transparency legislation which requires state agencies to maintain web sites that details the expenditures of state funds.
AN ACT relating to public records.
Create a new section of KRS Chapter 7 to require the Legislative Research Commission to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 26A to require the Chief Justice to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require the Finance and Administration Cabinet to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require all executive branch agencies to make financial data available to the Finance and Administration Cabinet, and to require the cabinet to give the Legislative Research Commission and the Court of Justice control over their expenditure data by January 1, 2011; amend KRS 164A.565 to require the governing boards of each postsecondary educational institution to make financial data available to the Finance and Administration Cabinet; and provide that the Act shall be known as the "Taxpayer Transparency Act of 2010".
HR24 (Marzian) AGC supported resolution to endorse the creation of a General Assembly Green Schools Caucus in support of efforts to build more energy-efficient, water-efficient, and environmentally sustainable K-12 schools. AGC of Kentucky would like to thank Rep. Jim Decesare (R-Rockfield) for his co-sponsorship of this important resolution.
The AGC of Kentucky supported resolution passed the House 97-0 on January 26th.
HB 38 (Yonts) AGC does not support this bill that would adopt the fifth edition, and as a result of a committee substitute portions of the 2nd edition, rather than the more current 6th edition of the AMA "Guides to the Evaluation of Permanent Impairment" used in disability determinations. The AMA Guides to the Evaluation of Permanent Impairment is the most widely used basis for determining impairment. They are used in state workers' compensation systems, federal systems, automobile casualty and personal injury. Ten states use the more current Sixth Edition which was released at the end of 2007: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, Oklahoma, Pennsylvania, Tennessee and Wyoming.
HB-200 (Nelson) AN ACT relating to electricians.
Amend KRS 227A.100 to require biennial rather than annual renewal of electrician and electrical contractor licenses; establish biennial license renewal on or before the last day of the licensee's birth month in each odd-numbered year; increase level of continuing education from 6 to 12 hours to reflect change to biennial renewal; make effective January 1, 2011.
SB-55 (Tori) AN ACT relating to administrative regulations and declaring an emergency.
Amend KRS 13A.338 to declare any administrative regulation found deficient since March 27, 2009, to be null, void, and unenforceable; prohibit the administrative agencies from promulgating administrative regulations identical to or substantially the same as that administrative regulation for a specified period of time.
SB-77 (Buford) The AGC-SIF staff and AGC Lobbying team are currently reviewing this bill at this time we do not have a position on this legislation.
AN ACT relating to self-insurance groups.
Amend KRS 304.33-020 to clarify that liability self-insurance groups are subject to the insurance code rehabilitation and liquidation statutes, rather than bankruptcy proceedings; amend KRS 304.48-090 to specify the authorized investments for liability self-insurance groups; amend KRS 304.48-140 to require a liability self-insurance group board of trustees to establish a formal conflict-of-interest or code-of-conduct policy applicable to the board of trustees; amend KRS 304.48-170 to require liability self-insurance groups to file quarterly financial statements with the executive director of the Office of Insurance and require a self insured group to make the statement of financial condition available to a group member upon request; amend KRS 304.50-155 to clarify that workers' compensation self-insured groups are subject to the unfair trade practice provisions contained in Subtitle 12 of KRS Chapter 304.
HB-317 (Stevens) AN ACT relating to the retainage in construction contracts.
Amend KRS 371.410 to decrease the percentage of retainage held from ten percent to five percent; require retainage to be held in escrow; require a 30-day time period for release after final completion; clarify required documentation; amend KRS 371.415 to create a rebuttable presumption of bad faith for failure to timely pay owed retainage.
HB-321 (Damron) AN ACT relating to hiring unauthorized aliens.
Create a new section of KRS Chapter 337 to create define terms relating to bill; create a new section of KRS Chapter 337 relating to public agencies to require use of federal employment verification programs and prohibit hiring unauthorized aliens; create a new section of KRS Chapter 337 to require all contractors and subcontractors with public agencies to use federal employment verification programs, not hire unauthorized aliens, and provide sworn affidavits of compliance; create a new section of KRS Chapter 337 to provide for civil enforcement and canceling of contracts; permit courts to enjoin violations; require suspension from further public agency contracts for 5 years if employer is found to have hired unauthorized aliens.
Bid Preference Bill Advances this Week
Posted: Monday, January 25, 2010Blog: Competitive Edge
An AGC of Kentucky supported bill SB-45 (Tapp R-Shelbyville) to give reciprocal bid preferences to Kentucky contractors on state projects when bidding against contractors from states with similar bid preferences and to promote "best value" bidding passed the State Senate Local Government Committee as a committee substitute this week 12-0. AGC of Kentucky would like to thank Senator Gary Tapp for sponsoring the legislation and thank each of the committee members who voted Yes to support the proposal. Following passage of the committee substitute a technical error in the definition of a "resident bidder" was discovered and a floor amendment is currently being drafted by AGC of Kentucky at the request of the sponsor in order to improve the legislation. The bill has received two succesfull readings and will likely be voted upon by the full Senate next week with our proposed floor amendment attached.
Action Alert:
AGC members are encouraged to call the toll free Legislative message line at 1-800-372-7181 and urge your state Senator to support SB-45, the Kentucky Contractors Resident Bidder Preference Bill with Floor Amendment next week. Nuclear power proposal gets Senate approval A statewide moratorium on nuclear energy plant construction would end under legislation passed the Senate 27-10 earlier this week. Senate Bill 26, sponsored by Sen. Bob Leeper, I-Paducah, would allow new nuclear power plants in Kentucky to be constructed if the facility's plan for storing the high-level waste conformed to federal guidelines. Current law mandates a plan for waste disposal, in effect a ban because no disposal site has yet been approved anywhere in the United States.
Our Clean Diesel in Kentucky Construction Tax Credit Legislation Coming Soon
AGC of Kentucky is working with Rep. Don Pasley (D-Winchester) to potentially sponsor and draft legislation providing a tax credit for construction companies who repower or retrofit off road diesel engines. We have also had initial meetings this week with representatives from the Kentuckians For The Commonwealth and the Kentucky Conservation Committee.
Diesel emission reductions represent one of the most important opportunities to achieve rapid and cost-effective health and environmental benefits. In 2009 AGC of Kentucky received a $2 million grant to fund voluntary diesel emission reductions for the Clean Diesel in Kentucky Construction Program. We were the only statewide AGC Chapter to successfully compete for the grant monies in a very competitive process which saw more than 100 organizations apply for the grant through the South East Diesel Collaborative in EPA Region 4.
This legislative initiative, which will likely be introduced next week will benefit current and future AGC of Kentucky members who are participating in the grant program as well as, incent other Kentucky construction companies to voluntarily reduce diesel engine emissions with the goal to improving the health and air quality for all Kentuckians. Our legislative proposal is modeled after an Oregon statute which passed successfully in 2007.
During the 2010 session your AGC of Kentucky Government Affairs Team will track nearly 1,000 bills, resolutions and amendments which may impact our members interests and we will continue to provide the best legislative representation for the commercial construction industry in the Commonwealth. To view the most important bills we are lobbying see below.
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Budget Address this Week
Posted: Tuesday, January 19, 2010Blog: Competitive Edge
When a major bill makes its way to either chamber's floor for a vote in the session's early days, it's a sure sign the bill has uncommonly deep support in that chamber. House Bill 176 became the first piece of legislation to reach the governor's desk this year, as the Senate and House cooperated and fast-tracked the bill. Time was of the essence: A Jan. 19 deadline loomed for state education officials to apply for federal Race to the Top funds, up to $200 million or more that can be used toward improving state middle and high schools. HB 176 also qualifies Kentucky for $45 million in other federal funds to turn around low-performing schools. This money is sorely needed, as will be demonstrated when the Governor deliver's his budget address on Tuesday when the General Assembly returns from the Martin Luther King holiday. The administration has said very little about their budget proposal other than it will contain significant cuts to major programs in order to deal with a projected $1.4 billion deficit over the biennium in the General Fund. Governor Beshear has said he will try to protect the main source of funds for elementary and secondary education, the SEEK formula, and try to limit cuts to key human services. Any cuts in state programs, will be in addition to multiple rounds of cuts in the base funding for most programs that have been made the last year and a half. While some believe government can stand a little more belt-tightening, we think these cuts will begin to be more noticeable to the average Kentuckian. These cuts seem almost a certainty without some new source of state revenue or tax increases. Speaker Stumbo announced this week that he would like to see the General Assembly explore a more consumption based tax system, meaning more reliance on a sales tax. He is advocating looking at the current sales tax exemptions and the possibility of taxing services which are currently excluded from the sales tax. He has also mentioned a possible repeal of the corporate income tax. President Williams has indicated he would favor a more consumption based system as well, but will be very cautious to avoid raising taxes. Governor Beshear has said tax reform of any kind usually translates into tax increases and he doesn't favor any "look" at changing the tax system in the middle of a recession. During the 2010 session AGC of Kentucky will track nearly 1,000 bills and resolutions which may impact our members interests and we will continue to provide the best legislative representation for the commercial construction industry in the Commonwealth. To view the bills we are tracking see below.
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Legislation to Watch
Posted: Tuesday, January 19, 2010Blog: Competitive Edge
SB 45 (Tapp) AGC supported legislation to give bid preference to Kentucky contractors on state projects and promote "best value" bidding.
AN ACT relating to state contracting practices.
Create a new section of KRS Chapter 45A to give preference to Kentucky resident bidders in state construction contracts; require this preference to apply against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state; specify that this preference is equal to the preference given or required by the state of the non resident bidder; include determination of the amount of the preference; define "resident bidder"; require the Finance and Administration Cabinet to promulgate administrative regulations on the process for establishing residency and listing states with a bid preference in place, including the amount of that preference; amend KRS 45A.070 to redefine "best value" to include the requirement to communicate the preference in the invitation for bids; amend KRS 45A.085, 45A.090, 45A.180, and 45A.182 to conform; amend KRS 162.070 to include the preference for a resident bidder in accepting bids for secondary school construction contracts; amend KRS 164A.575 to add that "best value" shall be determined in accordance with KRS 45A.070 for postsecondary school capital construction contracts.
HB 42 (Damron) AGC supported legislation that would allow Kentucky's public universities to issue bonds for revenue generating projects.
AN ACT relating to postsecondary institution debt.
Create new sections of KRS Chapters 48 and 164A to provide a process for postsecondary institutions to issue agency bonds upon authorization by the General Assembly; amend KRS 48.180 to conform.
SB 40 (Thayer) and HB 128 (DeCesare) AGC supported transparency legislation which requires state agencies to maintain web sites that details the expenditures of state funds.
AN ACT relating to public records.
Create a new section of KRS Chapter 7 to require the Legislative Research Commission to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 26A to require the Chief Justice to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require the Finance and Administration Cabinet to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require all executive branch agencies to make financial data available to the Finance and Administration Cabinet, and to require the cabinet to give the Legislative Research Commission and the Court of Justice control over their expenditure data by January 1, 2011; amend KRS 164A.565 to require the governing boards of each postsecondary educational institution to make financial data available to the Finance and Administration Cabinet; and provide that the Act shall be known as the "Taxpayer Transparency Act of 2010".
HR24 (Marzian) AGC supported resolution to endorse the creation of a General Assembly Green Schools Caucus in support of efforts to build more energy-efficient, water-efficient, and environmentally sustainable K-12 schools. The resolution passed the House Education Committee on Jan. 12th and is expected to pass.
HB 38 (Yonts) AGC does not support this bill that would adopt the fifth edition, rather than the more current 6th edition, of the AMA "Guides to the Evaluation of Permanent Impairment" used in disability determinations. The AMA Guides to the Evaluation of Permanent Impairment is the most widely used basis for determining impairment. They are used in state workers' compensation systems, federal systems, automobile casualty and personal injury. Ten states use the more current Sixth Edition which was released at the end of 2007: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, Oklahoma, Pennsylvania, Tennessee and Wyoming. AGC of Kentucky is currently reviewing a committee substitute the sponsor has proposed in an effort to gain support for the proposal.
HB-200 (Nelson) AN ACT relating to electricians.
Amend KRS 227A.100 to require biennial rather than annual renewal of electrician and electrical contractor licenses; establish biennial license renewal on or before the last day of the licensee's birth month in each odd-numbered year; increase level of continuing education from 6 to 12 hours to reflect change to biennial renewal; make effective January 1, 2011.
SB-55 (Tori) AN ACT relating to administrative regulations and declaring an emergency.
Amend KRS 13A.338 to declare any administrative regulation found deficient since March 27, 2009, to be null, void, and unenforceable; prohibit the administrative agencies from promulgating administrative regulations identical to or substantially the same as that administrative regulation for a specified period of time.
SB-77 (Buford) The AGC-SIF staff and AGC Lobbying team are currently reviewing this bill at this time we do not have a position on this legislation.
AN ACT relating to self-insurance groups.
Amend KRS 304.33-020 to clarify that liability self-insurance groups are subject to the insurance code rehabilitation and liquidation statutes, rather than bankruptcy proceedings; amend KRS 304.48-090 to specify the authorized investments for liability self-insurance groups; amend KRS 304.48-140 to require a liability self-insurance group board of trustees to establish a formal conflict-of-interest or code-of-conduct policy applicable to the board of trustees; amend KRS 304.48-170 to require liability self-insurance groups to file quarterly financial statements with the executive director of the Office of Insurance and require a self insured group to make the statement of financial condition available to a group member upon request; amend KRS 304.50-155 to clarify that workers' compensation self-insured groups are subject to the unfair trade practice provisions contained in Subtitle 12 of KRS Chapter 304.
Other Legislation of Note
Posted: Tuesday, January 19, 2010Blog: Competitive Edge
To view the entire text of any of these bills visit the LRC website at www.lrc.ky.gov
SB 13 (Jones) and HB 159 (Greer) mandates coverage for the treatment of autism spectrum disorders by health insurance providers.
SB 26 (Leeper) eliminates the current prohibition on nuclear facilities.
SB 28 (Westwood) provides for a career-based program of study for high school students.
SB 44 (Shaughnessy) requires public universities to create a plan to increase four-year graduation rates.
SB 67 (Winters) would promote early graduation for high school students who fulfill rigorous academic requirements.
SB 69 (Winters) provides for incentive pay and an accelerated certification program for teachers of chemistry, physics or math.
HB 13 (Wayne) establishes a state earned income tax credit and extends the state sales tax to a select number of services.
HB 21 (Rep. Stan Lee) and HB 63 (Montell) authorize public charter schools and public school academies.
HB 74 (Tilley) establishes a wellness project tax credit for qualified employers who offer wellness programs to employees.
HB 117 (Marzian) adds definitions of "sexual orientation" and "gender identity" to discrimination statutes.
HB 133 (Riner) prohibits wage discrimination against a person of the opposite sex who is paid less for doing a job of "comparable worth."
HB 144 (Yonts) and HB 160 (Rollins) would smooth transfer procedures for college credits and align lower division coursework across postsecondary education institutions.
HB 165 (Damron) would remove the potential liability for employers offering smoking cessation incentives to employees as part of a wellness program.
HB 213 (Adkins) would permit the state to use the Eminent Domain process to acquire land necessary for carbon sequestration and management.
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Legislature Returns to Capitol
Posted: Tuesday, January 12, 2010Blog: Competitive Edge
The Kentucky General Assembly returned to Frankfort last week amidst a continued backdrop of budgetary shortfalls which vary in estimate of $900 million according to Senate leadershp or as much as $1.5 billion according to the Governor's office. Discussions among legislative and executive branch officials regarding the state of the economy as well as the weakened budget outlook for the foreseeable future will likely overshadow much of the legislative process.
How the Legislature deals with this financial challenge in the face of a slowly recovering national economy may largely define this session's tone along with the state budget, which is often viewed as an expression of political policy and priorities.
During the first week of the session, Governor Beshear delivered his annual State of the Commonwealth address outlining a number of accomplishments during his tenure and measures he supports, but he did not provide many details of his proposed budget. Beshear will unveil details of his budget during his address to a joint session of the General Assembly on January 19th.
One of the first orders of business of the 2010 session has been welcoming new members to each legislative chamber. The Senate welcomed two new members: Sen. Robin Webb and Sen. Jimmy Higdon. Webb, D-Grayson, was elected in August 2009, to serve Kentucky's 18th Senate District, and Higdon, R-Lebanon, was elected last month to serve the state's 14th Senate District. Both previously served in the House. The House welcomed Rep. Jill York, R-Grayson, who was elected last month to represent Kentucky's 96th House District. The seat was previously held by Webb until she joined the Senate.
Another new House member is expected next month as Gov. Beshear has called a Feb. 2 election to fill the open seat in the state's 24th House District, which was vacated when Higdon was elected to the Senate.
While little legislation will typically move earlier in a session, HB-1 (Stumbo), known as "Amanda's Bill," which would allow Kentucky courts to use GPS monitoring in dangerous domestic violence order situations, cleared the House Judiciary Committee earlier and is being fast-tracked for a House Floor vote later this week.
During the 2010 session, AGC of Kentucky will track nearly 1,000 bills and resolutions which may impact our members' interests, and we will continue to provide the best legislative representation for the commercial construction industry in the Commonwealth. To view the bills we are tracking, see below.
Legislation to Watch
Posted: Tuesday, January 12, 2010Blog: Competitive Edge
SB 45 (Tapp) AGC supported legislation to give bid preference to Kentucky contractors on state projects and promote "best value" bidding.
AN ACT relating to state contracting practices.
Create a new section of KRS Chapter 45A to give preference to Kentucky resident bidders in state construction contracts; require this preference to apply against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state; specify that this preference is equal to the preference given or required by the state of the nonresident bidder; include determination of the amount of the preference; define "resident bidder"; require the Finance and Administration Cabinet to promulgate administrative regulations on the process for establishing residency and listing states with a bid preference in place, including the amount of that preference; amend KRS 45A.070 to redefine "best value" to include the requirement to communicate the preference in the invitation for bids; amend KRS 45A.085, 45A.090, 45A.180, and 45A.182 to conform; amend KRS 162.070 to include the preference for a resident bidder in accepting bids for secondary school construction contracts; amend KRS 164A.575 to add that "best value" shall be determined in accordance with KRS 45A.070 for postsecondary school capital construction contracts.
HB 42 (Damron) AGC supported legislation that would allow Kentucky's public universities to issue bonds for revenue-generating projects.
AN ACT relating to postsecondary institution debt.
Create new sections of KRS Chapters 48 and 164A to provide a process for postsecondary institutions to issue agency bonds upon authorization by the General Assembly; amend KRS 48.180 to conform.
SB 40 (Thayer) and HB 128 (DeCesare) AGC supported transparency legislation which requires state agencies to maintain Web sites that detail the expenditures of state funds.
AN ACT relating to public records.
Create a new section of KRS Chapter 7 to require the Legislative Research Commission to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 26A to require the Chief Justice to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require the Finance and Administration Cabinet to create a Web site to provide certain information on the expenditure of state funds; create a new section of KRS Chapter 42 to require all executive branch agencies to make financial data available to the Finance and Administration Cabinet, and to require the cabinet to give the Legislative Research Commission and the Court of Justice control over their expenditure data by January 1, 2011; amend KRS 164A.565 to require the governing boards of each postsecondary educational institution to make financial data available to the Finance and Administration Cabinet; and provide that the Act shall be known as the "Taxpayer Transparency Act of 2010".
HR24 (Marzian) AGC supported resolution to endorse the creation of a General Assembly Green Schools Caucus in support of efforts to build more energy-efficient, water-efficient, and environmentally sustainable K-12 schools.
HB 38 (Yonts) AGC does not support this bill that would adopt the fifth edition, rather than the more current Sixth Edition, of the AMA "Guides to the Evaluation of Permanent Impairment" used in disability determinations. The AMA "Guides to the Evaluation of Permanent Impairment" is the most widely used basis for determining impairment. They are used in state workers' compensation systems, federal systems, automobile casualty and personal injury. Ten states use the more current Sixth Edition, which was released at the end of 2007: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, Oklahoma, Pennsylvania, Tennessee and Wyoming.
HB-200 (Nelson) AN ACT relating to electricians.
Amend KRS 227A.100 to require biennial rather than annual renewal of electrician and electrical contractor licenses; establish biennial license renewal on or before the last day of the licensee's birth month in each odd-numbered year; increase level of continuing education from 6 to 12 hours to reflect change to biennial renewal; make effective January 1, 2011.
SB-55 (Tori) AN ACT relating to administrative regulations and declaring an emergency.
Amend KRS 13A.338 to declare any administrative regulation found deficient since March 27, 2009, to be null, void, and unenforceable; prohibit the administrative agencies from promulgating administrative regulations identical to or substantially the same as that administrative regulation for a specified period of time.
SB-77 (Buford) The AGC-SIF staff and AGC Lobbying team are currently reviewing this bill at this time we do not have a position on this legislation.
AN ACT relating to self-insurance groups.
Amend KRS 304.33-020 to clarify that liability self-insurance groups are subject to the insurance code rehabilitation and liquidation statutes, rather than bankruptcy proceedings; amend KRS 304.48-090 to specify the authorized investments for liability self-insurance groups; amend KRS 304.48-140 to require a liability self-insurance group board of trustees to establish a formal conflict-of-interest or code-of-conduct policy applicable to the board of trustees; amend KRS 304.48-170 to require liability self-insurance groups to file quarterly financial statements with the executive director of the Office of Insurance and require a self-insured group to make the statement of financial condition available to a group member upon request; amend KRS 304.50-155 to clarify that workers' compensation self-insured groups are subject to the unfair trade practice provisions contained in Subtitle 12 of KRS Chapter 304.
Other Legislation of Note
Posted: Tuesday, January 12, 2010Blog: Competitive Edge
To view the entire text of any of these bills visit, the LRC website at www.lrc.ky.gov.
SB 13 (Jones) and HB 159 (Greer) mandate coverage for the treatment of autism spectrum disorders by health insurance providers.
SB 26 (Leeper) eliminates the current prohibition on nuclear facilities.
SB 28 (Westwood) provides for a career-based program of study for high school students.
SB 44 (Shaughnessy) requires public universities to create a plan to increase four-year graduation rates.
SB 67 (Winters) would promote early graduation for high school students who fulfill rigorous academic requirements.
SB 69 (Winters) provides for incentive pay and an accelerated certification program for teachers of chemistry, physics or math.
HB 13 (Wayne) establishes a state earned income tax credit and extends the state sales tax to a select number of services.
HB 21 (Rep. Stan Lee) and HB 63 (Montell) authorize public charter schools and public school academies.
HB 74 (Tilley) establishes a wellness project tax credit for qualified employers who offer wellness programs to employees.
HB 117 (Marzian) adds definitions of "sexual orientation" and "gender identity" to discrimination statutes.
HB 133 (Riner) prohibits wage discrimination against a person of the opposite sex who is paid less for doing a job of "comparable worth."
HB 144 (Yonts) and HB 160 (Rollins) would smooth transfer procedures for college credits and align lower division coursework across postsecondary education institutions.
HB 165 (Damron) would remove the potential liability for employers offering smoking cessation incentives to employees as part of a wellness program.
HB 213 (Adkins) would permit the state to use the Eminent Domain process to acquire land necessary for carbon sequestration and management.
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Posted: Wednesday, November 11, 2009Blog: Why Join Pages
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K4C Kentucky Construction Career Days
Posted: Wednesday, October 28, 2009Blog: Competitive Edge
Construction Career Days
The long line of yellow school buses and thousands of students donning construction hard hats and safety goggle marked the return of autumn last week as more than 2,000 students from across Kentucky attended the 2009 K4C Kentucky Construction Career Days event at the Shelbyville Fairgrounds in Shelbyville, Kentucky.
"What a wonderful turnout this year," said Richard Vincent, the association's chief executive officer. "Its really encouraging to see how many Kentucky students are interested in the construction professions and after all they are the future workforce for our industry."
The K4C is an annual event where AGC of Kentucky member companies and others provide interactive displays to encourage Kentucky school kids to consider a career in the construction profession. A very special thanks to all the volunteers and the more than fifty exhibitors and sponsors who participated this year including AGC members Messer Construction, Gray Construction, Irving Materials Inc, Parsons Electric, Thompson Electric, United Rentals, and others.
For more information about the Kentucky Construction Career Choice Council call John Brazel, AGC of Kentucky Assistant Executive Director at 502.223.8845 or email .(JavaScript must be enabled to view this email address)
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AGC Member Receives Safety Award
Posted: Wednesday, October 28, 2009Blog: Competitive Edge
The Architectural Woodwork Institute (AWI) and its insurance safety partner, CNA, have announced the 25 AWI Manufacturing Members being honored with a "Safety Improvement Certificate of Recognition" in the 2009 safety awards program for reductions in their Incident Rate from the previous year. The 2009 honorees include: Leininger Cabinet Woodworking Inc., Lexington, Kentucky.
A total of 66 Safety Awards were awarded to AWI Manufacturing Members in the three awards categories during the annual program on October 8th.
Congratulations to Leininger Cabinet Woodworking, Inc.
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Special Session
Posted: Thursday, June 25, 2009Blog: Legislative Update
Legislative Special Session - No Racinos but small business gets a break, finally!
Richard Vincent & John Brazel, AGC of Kentucky
As Senate leaders had warned, the Beshear-proposed and House-passed racetrack slots bill was defeated in the upper chamber this week, failing to get out of the Senate A&R committee, but the other three items on the governor's call were agreed upon and passed in good order as the 2009 special session wrapped up work in eight legislative days.
Passed: An economic incentive-package probably best known for seeking to lure a major NASCAR event to Northern Kentucky, along with an AGC of Kentucky and Small Business Caucus supported tax credit for small businesses who hire one additional employee and invest $5,000 in equipment or technology. The $25,000 tax credit is targeted at existing small businesses in Kentucky and has been on our legislative agenda for the three previous sessions but failed to pass in the 2009, 2008 & 2007 regular sessions.
We greatly appreciate the efforts of Rep. Tanya Pullin (D-South Shore) and Sen. Gary Tapp (R-Shelbyville) whose leadership and perseverance on this important issue has led to its final successful passage.
Also passing was the so-called 'Bridges Bill' to create a finance-and-control authority for massive transportation megaprojects like the $4.1 billion Ohio River twin-bridges project in Louisville, and a rebalanced state budget to fix what Gov. Steve Beshear and some predictors called a near-$1 billion shortfall in the coming fiscal year.
The economic-incentive measures lawmakers agreed to include $75 million to boost existing incentives that encourage the expansion of businesses already operating in Kentucky. Plus, in addition to tax credits to help Kentucky Speedway in Gallatin County land a NASCAR Sprint Cup race, it also includes tax incentives to attract the Breeders' Cup horse racing championships to Louisville, and creates a tax credit for small businesses (see above) and for film and TV productions shooting in the Commonwealth. It also exempts active-duty military from state income taxes.
The initial reason Beshear called the special session for June 15 was to revise the state budget. His proposal called for using $741 million in federal stimulus funds to fill most of the projected shortfall. He also proposed across-the-board spending cuts for most state agencies — but sparing education — of 2.6 percent. Those steps lawmakers approved.
But in the agreement reached between House and Senate negotiators late Tuesday, the governor's proposal to suspend three paid holidays for state workers making less than $50,000 a year and five holidays for those making $50,000 or more was deleted from the final bill.
Overall, observers hailed the session as highly productive, given quick and relatively painless agreement on three major issues. But the biggest newsmaker in the room — video lottery terminals, or video slots — came up short when it landed in the Senate.
The governor had added VLTs to the session call to help save the state's troubled Thoroughbred industry, by drawing more patrons to tracks and injecting new money into race purses. The hope was to keep racetracks open, and horses and horsemen in the state.
The VLT idea has been bubbling under the legislative surface for a decade or more, but no full chamber has ever actually voted on it — until the House voted 52-45 last week to approve the measure. But House leaders added a sweetener this year: a sudden proposal to tie most slots revenues to debt service on bonds for more than $1 billion in school-building construction, both at state colleges and in school districts statewide where crumbling elementary and secondary buildings need replacement.
However, Senate leaders felt relying on slot-machine revenue was bad public policy, and had their own proposal to help the horse industry without expanded gambling: Taxing state lottery sales and adding a surcharge for simulcasting signals from Kentucky horse racing tracks.
In the end, neither chamber could agree to the other's proposal and the session concluded yesterday sine die.
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AGC of Kentucky Testifies in Opposition to Proposed Debarment Regulations
Posted: Thursday, June 25, 2009Blog: Legislative Update
Richard Vincent & John Brazel, AGC of Kentucky
On Monday of this week, AGC of Kentucky Executive Vice President Richard Vincent provided testimony in opposition to 200 KAR 5:315 at a public hearing before Finance & Administration Cabinet officials. The proposed regulation increases the types of violations which would incur a debarment from 9 to 14 and increases the length of the debarment from 2 years to 60 months.
Here is an excerpt of our testimony:
The Associated General Contractors of Kentucky, representing more than 700 general contractors, subcontractors and associate member companies across the state, opposes the proposed changes to 200 KAR 5:315. We recognize the Kentucky Model Procurement Code authorizes the Finance and Administration Cabinet (“Cabinet”) to promulgate regulations under the Code. The proposed regulation authorizes the Cabinet to debar contractors for various criminal offenses, violations of statutory procurement requirements, and breaches of previous or existing state contracts.
While criminal, and perhaps legislative, violations may be just grounds for debarment, debarment for contractual infractions is unduly harsh and unfair to contractors. Moreover, the proposed regulation does not provide the requisite due process protections that should accompany a punishment as draconian as debarment.
The Associated General Contractors of Kentucky questions the need for the proposed changes to the current regulation. We believe that the significant and serious changes proposed by the Finance & Administration Cabinet are fraught with potential unintended consequences which could have calamitous and unwarranted negative effects upon the construction industry and the economy of the Commonwealth of Kentucky.
We anticipate receiving a response to our comments from the Finance & Adminstration Cabinet next month. We look forward to working with the administration and other parties of interest including the West Kentucky Contractors Association and the Kentucky Highway Contractors Association, who similarly oppose the regulatory change, to ensure our members' interests are not harmed by these overreaching regulations. We are also working with the Senate Licensing & Occupations Committee in an effort to add this issue to their agenda for the August 14th regular monthly meeting.
New Members: May 2009
Posted: Sunday, May 31, 2009Blog: News
PPG Industries
Gratela’s Commercial Cleaning
B P Pipeline, LLC
Specialized Landscape Company, LLC
Junior Wilson Contracting
Whayne Supply Co.
Kentuckiana Restoration Services, Inc.
T & M Construction Inc.
A-1 Portable Buildings, Inc.
New Members: April 2009
Posted: Thursday, April 30, 2009Blog: News
Vulcan Materials Company
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