Call to Order and Roll Call
The 2nd meeting of the Interim Joint Committee on Licensing and Occupations was held on Friday, July 9, 2010, at 10:00 AM, at Kentucky Ale, 401 Cross Street, Lexington, KY. Representative Dennis Keene, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Gary Tapp, Co-Chair; Representative Dennis Keene, Co-Chair; Senators Julian M. Carroll, Perry B. Clark, Denise Harper Angel, Kathy W. Stein, and Robin L. Webb; Representatives Tom Burch, Larry Clark, Tim Firkins, Dennis Horlander, Joni L. Jenkins, Adam Koenig, Reginald Meeks, David Osborne, Darryl T. Owens, Ruth Ann Palumbo, Carl Rollins II, Sal Santoro, and Arnold Simpson.
Guests: Dr. Pearse Lyons, Founder and President of Alltech and owner of the Lexington Brewing and Distilling Company; and from the Department for Housing, Buildings and Construction, Richard Moloney, Commissioner; Tim House, Director of the Division of Heating, Ventilation and Air Conditioning (HVAC); and Dawn Bellis, General Counsel.
LRC Staff: Tom Hewlett, Bryce Amburgey, Michel Sanderson, Carrie Klaber, and Susan Cunningham.
Presentation by Alltech Concerning Its Microbrewery and Development of Kentucky Ale
Dr. Pearse Lyons, Founder and President of Alltech and the Owner of Lexington Brewing and Distilling Company told the committee that Alltech is approximately a $500 million dollar company that is growing at a rate of 20 percent per annum with offices in 85 countries employing 2,200 people. In addition to its agricultural products, Alltech is the creator of Dippin Dots, which produces $50 million dollars in sales annually. Alltech is the only privately held company that is in the top 12 of companies regarding animal health.
Concerning the microbrewery, Dr. Lyons told committee members that he grew up in Ireland and one summer had an internship with Guinness. Since that internship, his dream was to own a brewery. The Lexington Brewing Company, first established in 1794, went out of business in 1999. This opened the opportunity for Dr. Lyons and his son, who wanted to follow in his father's footsteps, to purchase the brewery.
Dr. Lyons said that, on September 25, the world will be watching when the largest international sporting event to come to the United States since the 2002 Winter Olympic Games opens in Kentucky. Having the World Equestrian Games in Kentucky has changed the way the world looks at not only Kentucky but at Alltech. The economic impact for Kentucky has topped $167 million. Dr. Lyons applauded the Kentucky legislature for supporting this world-class event. There is an 800 number to call for information and ticket reservation. Also, for businesses who want to sponsor the games, a block of tickets can be purchased that include unique gifts and invitations to special events. In addition, there will be signage promoting groups in the Alltech Village.
Dr. Lyons said Alltech is proud to sponsor the games with Kentucky Ale being named the official beer of the Alltech FEI World Equestrian Games. His company produces three varieties of ale: Kentucky Ale, Kentucky Ale Light, and Kentucky Bourbon Barrel Ale. Kentucky Bourbon Barrel Ale is the only beer of its kind, being kept in used bourbon barrels for six weeks, which changes the flavor and the alcohol per volume from five percent to nine. Kentucky Bourbon Barrel Ale was number two in the world six weeks ago, winning a silver medal at the World Beer Cup, a contest with over 300 entrants. Last week, in Atlanta, the beer earned three medals, one gold and two silver.
Dr. Lyons said that the brewery is under expansion with plans for a visitor center, and in 2011 work will begin expanding the distilling operation, which will create more jobs in Lexington. On August 3rd, the first malt whiskey to be made in Kentucky, Pearse Lyons Reserve, will be rolled out at Kentucky Ale.
Dr. Lyons said that Kentucky will soon have the world's second largest algae production unit. Algae, in terms of carbon sequestering for the coal industry, is crucial. Dr. Lyons said he had also visited a facility to help with Alltech's life science laboratory in developing a product to treat Alzheimer's disease.
Senator Carroll commented that Dr. Lyons was a remarkable individual and thanked him for his support of the equestrian games. Senator Stein said that members of the Agriculture committee were also aware that Dr. Lyons wants Kentucky to become a milk exporter rather than milk importer and congratulated him on that.
Chairman Keene noted that there was a quorum present and asked the secretary to call the roll. After the roll call, Chairman Keene also called for a moment of silence for Representative Floyd, whose mother, Belle Floyd, passed away last week.
Approval of Minutes from the June 6, 2010 Meeting
A motion was made by Senator Carroll, seconded by Representative Owens and the minutes were adopted by voice vote.
Update Concerning Changes to the Process of License Renewal and the Creation of an Inactive License for Heating, Ventilation and Air Conditioning (HVAC) Licensees
Richard Moloney, Commissioner, Tim House, Director of the Division of HVAC, and Dawn Bellis, General Counsel; Housing, Buildings and Construction, were present to discuss proposed changes to the license for HVAC contractors. Mr. House said, in preparation for the 2011 Regular Session, the Division of HVAC would like to amend KRS 198B.658, Qualification for Licensure and Certification, and KRS 198B.664, Renewal and Restoration of License – Inactive Status - Reactivation. These amendments have been requested by the Board of Heating, Ventilation and Air Conditioning Contractors.
Regarding 198B.6658, current language requires an individual to serve a two year apprenticeship under a Kentucky master before they can receive their journeyman license. Similarly, to obtain a Master's license, individuals have to serve as a Kentucky journeyman under a Kentucky master for two years. However, the current statute does not allow Kentucky to grant a license to well-qualified and trained HVAC personnel from states such as Tennessee, West Virginia, Indiana, and Illinois. The division has a reciprocity agreement only with Ohio. The Board wants authority to establish specific requirements for qualified, experienced applicants coming to Kentucky to work in the HVAC profession from states with which we do not have a reciprocal agreement.
KRS 198B.664 requires a licensee to renew HVAC licenses by the final day of the licensee's birth month. Failure to do so automatically places the license in delinquent status. Ninety-one days after the license becomes delinquent the license becomes void if the licensee takes no action. For the individual to reactivate a license, he or she would have to retest and reapply for a license. Mr. House said exam fees and books to retest are expensive. The board would like to amend the statute to mirror the requirements for renewal of electrical licensing, bringing consistency in the Department of Housing, Buildings, and Construction. Mr. House also said that the HVAC board has expressed concern that there is no inactive status for a journeyman licensee. The board feels that providing an inactive license status would allow a licensee to protect a license after becoming unemployed or temporarily disabled.
Senator Tapp asked if the grandfather clause was being expanded. Mr. House said the department was not going to do away with examinations.
Senator Webb asked if there have been adjustments made to installation of water heaters. She is getting complaints from constituents regarding a loss of sales and sales tax revenue due to people going across state lines to states to purchase water heaters where reporting is not required. She also asked if there could be some flexibility in water heater sales and installation while still protecting public safety. Mr. House responded that Kentucky merchants have been placed in an unfair advantage; however, he added that he would not be interested in allowing an unlicensed contractor to receive a permit to install a water heater. Improperly installed water heaters could have catastrophic failures. The division has considered a two-tier permit that allows HVAC to inspect the installation as a lower cost.
After all testimony had concluded, Chairman Keene told the committee members that there would be a tour of the brewery for interested parties.
There being no further business to come before the committee, the meeting was adjourned at 11:40 a.m.