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A
Thank
you
to
everybody
for
everyone
for
being
here
today
and
what
we
hope
is
the
last
meeting
of
the
Appropriations
and
revenue
committee
for
this
session
I'm
secretary.
Please
call
the
roll.
A
A
A
There's
not
a
good
space
to
set
down
the
sign
in
roster,
so
I'm
going
to
talk
through
the
mechanics
of
what's
in
this
bill
and
then
I'm
those
who
want
to
come
forward
I'm
going
to
let
you
just
kind
of
move
up
and
you
can
speak
for
or
against
it,
and
we
will
go
from
there.
So
that
being
said
in
the
committee
substitute
for
house
bill
5.,
there
is
a
revised
reduction
schedule.
It
does
not
anticipate
or
allow
for
the
fees
that
you
had
seen
in
the
original
House
Bill
5.
A
What
you
will
also
see
is
you
flip
through
the
bill,
is
that
there,
the
credits
that
are
currently
accumulated
on
on
the
filings
from
from
the
bourbon
companies?
50
percent
of
those
are
eligible
to
be
redeemed
if
a
certain
number
of
conditions
are
met.
First
of
all,
there's
a
minimum
of
a
20
million
dollar
investment
with
10
jobs
in
a
low
to
moderate
income
County,
which
is
defined
inside
of
the
bill
itself.
A
If
that
investment
is
made
by
a
taxpayer
with
the
who
meets
those
conditions,
they're
eligible
over
the
course
of
15
years
for
a
reduction
based
off
of
the
sales
and
payroll
tax
that
they
otherwise
pay
to
the
taxing
jurisdiction,
though
those
folks
who
are
currently
involved
in
projects
that
have
industrial
revenue
bonds
will
see
the
tax
continue
on
through
the
year
2043.
In
order
to
honor
the
commitments
made
under
those
industrial
revenue
bonds
for
those
who
have
impact
or
impacted,
or
potentially
impacted
school
districts
and
fire
districts.
A
There
is
a
floor
on
the
number
of
barrels
that
is
set
in
the
year
2026.
However,
there
are
conditions
allowed
for
basically
highly
extenuating
circumstances
or
business
reasons
that
cause
a
loss
of
more
than
10
percent
of
Revenue
that
can
be
certified
through
the
Department
of
Revenue,
which
would
allow
for
a
reduction
in
the
inventory.
However,
there
is
no
cap
on
the
upside
investment,
or
the
number
of
barrels
that
would
otherwise
be
stored
in
a
given
jurisdiction.
A
Thank
you
got
ahead
of
myself.
Forgive
me.
Low
to
moderate
income
is
a
low
to
moderate
income
population
where
the
county,
medium
family,
income
or
County
median
household
income
is
less
than
80
percent
of
the
state
median
family
income
or
state
median
household
income,
as
determined
by
the
most
recent
five-year
American
Community
survey.
A
That
is
the
essence
of
what
relates
to
the
Bourbon
Barrel
tax.
Now
there
are
two
other
items
in
here:
the
first
of
those
that
you've
heard
a
lot
about
relates
to
the
Telecommunications
tax,
and
we
do
clarify
that
that
tax
applies
only
to
text
and
voice
services,
not
to
folks,
like
Google,
Facebook,
Twitter
ads
stuff,
like
that.
The
other
piece
that
is
fixed
deals
with
the
state
and
local
taxation
fix
that
we
had
done
in
House
Bill
360.
A
There
were
some
additional
items
that
needed
to
be
do
to
be
incorporated
to
fully
effectuate
that
and
those
have
been
included
here.
So
that
is
the
essence
of
what
is
in
front
of
you
at
house
bill
5.
at
this
point
in
time.
I
know
we
have
folks
who
would
like
to
testify,
certainly
against
I'm,
not
certain
if
we
have
folks
in
attendance
who
intend
to
testify
for
the
bill.
So
if
I
can
ask
do
I
have
someone
oh
come
on
up?
Is
there
anyone
else
who
wants
to
testify
on
behalf
of
house
bill
5.
C
Good
afternoon
my
name
is
Jack
mazarak
I'm
with
the
Kentucky
distillers
Association.
Thank
you
for
giving
me
a
few
minutes
to
speak
on
this
bill.
Mr
chairman
members
of
the
committee,
we
have
opposed
the
KDA
has
opposed
the
barrel
tax
for
many
years
for
decades.
As
a
matter
of
fact,
particularly
in
the
last
10
years
as
National
and
Global
demand
for
bourbon
has
skyrocketed.
C
C
These
compromises
include
mechanisms
to
keep
our
schools
whole
to
keep
our
fire
departments
and
EMS
Services
whole
and
to
continue
paying
Barrel
taxes
on
for
20
for
20
years
on
Barrels
in
IRB
warehouses,
which
represent
currently
30
percent
of
barrels.
Aging
in
Kentucky
we've
compromised
to
lengthen
the
term
of
the
phase
down
now
at
an
unprecedented
20
years.
This
we
believe
this
gives
our
communities
more
than
ample
time
to
plan
and
diversify
their
already
booming
economies.
C
Last,
it's
important
to
note
that
we've
worked
to
ensure
that,
during
this
phase
down
communities
will
see
additional
Barrel
tax
revenue
more
than
the
40
million
that
we
paid
today
from
a
Statewide
perspective.
It's
incredibly
important
to
pass
this
legislation
and
to
phase
out
the
punitive
Barrel
tax
which
punishes
growth
of
our
signature.
Distilling.
Industry
Kentucky
is
fortunate
to
have
recorded
record
growth
in
distilling
in
the
last
couple
years,
but
two
things
are
true.
While
we
have
this
record
growth,
we're
also
losing
startups
and
potential
distilleries.
C
This
is
a
discriminatory
tax
that
no
other
manufacturing
industry
pays.
As
you
all
are
aware,
we
want
to
continue
bringing
distilleries
jobs,
startups
and
new
vibrancy
to
communities
across
the
state
and
I.
Ask
you
to
responsibly
end
this
tax
for
the
long
term
and
help
our
signature
industry
to
continue
growing.
Thank
you.
A
D
Jack
thanks
for
being
here,
what
is
the
Kentucky
distillers
association's
position
on
the
LMI
incentive
towards
growth?
What's
your
position
or
perspective
on
that
piece
of
this
bill.
C
Thank
you,
Senator
I'm
glad
you
asked
my
background
is
with
the
state's
Economic
Development
cabinet.
One
of
the
things
that
became
very
clear
to
me
on
leaving
the
cabinet
and
coming
to
the
KDA
was
that
there
are
many
communities,
some
of
which
you
all
represent
many
communities.
Many
counties,
many
districts
across
the
state
that
in
all
likelihood,
would
never
attract,
never
be
able
to
land
a
large-scale
manufacturing
operation
due
to
many
many
factors,
including
topography,
including
Interstate,
access,
waterways
and
other
infrastructure.
C
However,
you
can
put
distilleries
on
five
acres
of
flat
land
and
that's
something
that
we
can
find
in
almost
any
County.
There
are
currently
42
counties
in
the
state
with
distilling
operations.
Most
of
those
have
minimal.
You
know
operations
from
Craft
distillers
which
are
excellent
because
they
bring
tourists
and
they
bring
jobs
and
they
bring
vibrancy
at
the
community
and
Rural
levels.
C
So
it's
an
important
it's
an
important
aspect
that
we
find
ways
to
continue
to
bring
new
investment
to
rural
counties
and
I,
submit
that
there
are,
if
you
subtract,
the
10
dry
counties
that
there
are
68
other
counties
that
have
no
distilling
operations.
That
would
love
to
have
them,
and
if
we
remove
this
punitive
tax,
I
think
we'll
see
additional
companies
decide
to
come
to
Kentucky,
because
it
is
indeed
the
big
leagues.
If
you
want
to
be
producing
spirits.
A
Very
good
any
other
questions
right
now:
none,
okay,
very
good
Jack.
Thank
you
very
much.
We
appreciate
you
being
here.
I
know
that
we
have
several
other
folks
that
want
to
speak
on
it.
So
if
those
who
would
want
to
speak
in
opposition
to
the
bill
would
come
up,
I'd
think
we've
got
four
chairs
up
there
go
ahead,
feel
free
to
occupy
those,
and,
if
there's
more
we'll
take
more
testimony
when
you
all
are
finished.
A
E
Members
of
the
committee,
thank
you
for
allowing
us
to
speak
today
before
we
get
too
far
into
this.
I
want
to
make
sure
that
we're
all
on
the
the
same
page
as
far
as
the
breakdown
of
the
taxes
paid
on
the
barrel
of
bourbon
take
a
five
or
six
year
barrel
of
bourbon
federal
taxes
on
that
Barrel
is
850
dollars.
E
E
Sixteen
dollars
for
local
government,
while
we
watched
1300
in
federal
and
state
I,
want
to
directly
address
some
of
the
points
the
KDA
is
making
they're
talking.
They've
talked
about
Kentucky
dropping
by
and
I'm
going
to
phrase
this
the
way
they
say
it
number
of
states
by
number
of
Distillery.
It's
a
clever
way
to
say
it,
but
I
went
and
looked
at
their
data
and
the
reason
why
we're
dropping
is
not
because
of
this
tax.
It's
because
of
micro
distilleries
they're
in
2010.
There
are
a
hundred
and
195
micro
distilleries
in
the
country.
E
Today
there
are
2
800..
These
distilleries
produce
all
types
of
alcohol,
mostly
gin
and
vodka,
and
according
to
their
National
Association,
60
percent
of
these
micro
distilleries
produce
less
than
2500
cases
a
year.
60
percent
they've
also
made
the
case
that
they
will
have
to
build
outside
of
Kentucky,
but
they're
facing
growing
opposition
from
our
residents
to
build
here.
E
The
only
reason
they
did
that
was
because
of
the
community
Barrel
tax
I
want
to
run
some
other
numbers
to
you.
They
talk
about
barriers
to
entry
and
barriers
to
growth
last
year,
and
this
is
their
numbers.
They
had
a
record
number
of
new
distilleries
record
production,
record
storage
of
Barrels
in
Kentucky
record
sales
over
5
billion
dollars
of
capital
projects
underway
currently
and
during
the
legislative
break.
E
They
couldn't
even
wait
to
announce
this
amazing
building
and
it
is
magnificent.
I
will
travel
there,
but
this
and
I
know
we're
in
a
smaller
room.
So
maybe
you
can
see
it
a
little
bit
better,
but
if
you
haven't
seen
this
on
Facebook
check
it
out
because
it
is
blue,
run
Spirits
I've
never
heard
of
them
before
they
were
created
in
2020,
it's
a
campus
that
was
built,
but
that
was
designed
by
the
same
design
firm
as
Google,
so
they
hired
Google
to
design
this.
E
Additionally,
I
would
like
to
talk
about
the
promises
made
by
the
bourbon
industry.
We,
as
local
government,
sat
down
with
them
as
they
came
and
made
their
proposals,
and
we
crafted
deals.
Every
government
behind
me
has
crafted
different
deals.
Some
of
us
did
irbs
sold
land
lower
price.
We,
you
know
occupational
tax
credits,
infrastructure
upgrades
the
list
goes
on
and
on
and
the
constant
Advantage
the
bourbon
industry
brought
was
the
barrel
tax.
That's
the
deals
they
brought
to
us.
E
I
don't
have
to
go
too
far
into
the
devastation
that
this
bill
will
cause.
I
assume
everyone
in
this
room
knows
a
small
County
in
a
small
City,
and
you
can
understand
that
if
you
take
millions
of
dollars
of
tax
revenue
that
was
promised
to
those
governments,
it's
going
to
hurt
them
and
it's
going
to
hurt
them
a
lot.
E
No
matter
how
far
we
kick
the
can
down.
The
road.
Zero
is
still
zero.
It's
zero
for
my
daughter's
Community,
even
if
it's
not
for
mine
I,
know,
there's
a
lot
of
pressure
on
this
bill
and
a
lot
of
people
talking
about
it,
but
I
can
make
it
easy
vote
as
if
we
are
the
city
officials
of
your
District
vote,
as
if
the
county
officials
and
the
superintendents,
the
fire
departments
and
the
ambulance
services
who
are
still
against
this
bill
because
it
does
not
keep
us
whole.
E
It
only
keeps
certain
types
of
districts
whole
which
the
most
of
us
don't
have
they're
still
against
it,
because
it
will
have
a
cut
in
funding.
So
if
you
stand
with
us
I'll
give
away
my
line
hold
on
I
said:
let
me
start
over
there.
We
can't
hold
all
the
Bourbons
in
our
in
our
communities.
The
warehouses
are
coming
to
your
District
and
when
they
do,
you
will
have
this
Revenue.
E
C
A
G
G
Think
we
all
pretty
much
have
got
the
same
view
of
how
this
will
affect
our
counties
and
things
that
we've
done
for
the
the
bourbon
industry,
the
irbs
that
were
provided
over
the
years
Marion
County
we've
got
about
750
million
dollars
in
our
bees
in
our
County,
and
that
was
an
extension
to
grow
bourbon
in
our
communities.
G
Whenever
you
do
an
IRB,
you
understand
you
obey
taxes.
We
were
okay
with
that,
the
reason
we
were
okay
with
that
was
because
we
were
getting
to
still
spirits
tax.
That's
why
we
did
it.
That's
the
only
reason
we
did
it.
We
recruited
Diageo
they've,
been
in
our
community
two
years.
We've
never
received
a
nickel
from
distilled
Spirits
tax,
we're
going
to
eventually.
If
this
continues
to
go
forward,
we
use
land
that
we
could
have
used
for
other
Industries
infrastructure
water
improvements.
G
We
had
to
make
to
get
these
properties
ready
for
these
Indus
for
the
bourbon
industry,
the
jobs
that
are
created
by
these,
especially
the
new
distilleries
they're,
very
up
to
date,
their
modern
technology.
They
don't
need
the
people
like
Maker's
Mark
and
some
of
the
older
distilleries
need
so
they're,
not
driven
by
a
lot
of
of
jobs,
they're
driven
by
production
and
so
diagio
projected
to
to
have
900
000
Barrels
in
our
community
within
the
next
10
years,
10
to
15
years.
So
that's
what
we
we
rode
out.
G
The
red
carpet
form
just
like
Jerry
did
in
Bullitt
County,
just
like
Tim
did
in
in
Nelson
County
for
no
Ricard
made
an
announcement
in
our
community
about
three
months
ago.
Same
assumption
that
the
barrel
tax
was
the
reason
we'd
done
it.
They
bought
industrial
property
at
a
great
rate.
G
Their
infrastructure
was
there
that
the
county
and
the
cities
have
put
in.
So
we
have
done
a
lot
to
help.
The
bourbon
industry
and
I
feel
like
this.
This
tax,
going
away
from
us
is,
is
just
a
complete.
They
turned
it
back
on
us.
It
really
I
I
would
have
a
hard
time
doing
it
again
because
anytime,
you
do
an
IRB
or
anything
like
that.
G
So
when
I
feel
like
every
other
judge
in
here
can
can
say
the
same
thing
that
I'm
saying
it's,
it's
a
tough
situation.
They
say
this
will
help
the
bourbon
industry
I,
don't
believe
that,
for
what
I've
had
to
go
through,
I
wouldn't
recommend
any
judge
dealing
with
what
I've
had
to
deal
with
or
with
with
what
stuff,
like
the
the
irbs
and
the
warehouses
that
the
stuff
that
they
do
produce.
G
So
it
is
tough
and
again
I'd
appreciate
you
all
consider
it
just
like
Josh
said
think
about
it
as
if
it
was
in
your
community
and
I
appreciate
the
opportunity
to
talk
today.
Thank
you.
F
Thank
you,
Mr
chairman
again,
dick
Heaton
from
the
city
of
Bardstown
bar
sounds
the
city
of
about
14
000
people.
We
have
six
distilleries
in
our
town,
two
more
out
in
the
county,
we're
known
as
the
bourbon
capital
of
the
world
for
obvious
reasons
between
these
Three
Counties
we're
talking
about.
Today.
We
have
nearly
75
percent
of
all
the
barrels
that
are
aging
in
Kentucky
and
Nelson
Marion
and
Bullitt
County.
F
You
can
tell
from
the
growth
that
Mr
mazarak
I
think
his
name's
described
that
growth
has
been
happening.
I've
been
a
mayor
now
for
11
years
in
Bardstown,
I've
been
in
the
middle
of
this
massive
growth
in
our
distilleries
in
our
County.
700
million
dollars
have
been
announced
in
future
growth
in
our
County.
F
Just
in
the
last
12
months,
mostly
financed
with
irbs,
we
will
have
abated
well,
we
already
have
abated
well
over
a
billion
dollars
in
tax
value
of
property
that
will
rise
up
to
about
1.5
billion
very
quickly,
but
today,
I
want
to
talk
a
little
bit
about
some
things.
That
I
don't
think
that
that
brought
enough
attentions
of
the
efforts
that
we
have
made
in
this
cities
and
counties
to
facilitate
this
massive
growth.
Every
time
they've
come
to
us
we've,
given
them
every
tax
incentive,
we
possibly
could
we
built
all.
H
F
Infrastructure
that
we
could
possibly
build,
and
so
here's
some
other
things
excuse
me
to
think
about
that-
helps,
get
mitigated
by
this
Revenue
that
we're
going
to
lose.
We
have
three
of
the
four
largest
distilleries
operating
in
Bardstown
and
Nelson
County
that
are
in
Kentucky.
They
do
a
lot
more
than
just
do
bourbon.
F
They
are
Trucking
tanker
after
tanker
after
tanker
lows
of
vodkas
gin,
rums,
tequila,
Brandy
and
bottling,
those
and
selling
millions
and
millions
of
cases
that
truck
traffic,
you
just
can't
imagine
the
amount
of
truck
traffic
on
top
of
a
normal
amount
of
bourbon
truck
traffic,
that
is
destroying
our
city
streets
and
our
County
roads.
Those
streets
are
not
designed,
they've
been
there
long
before
these
distilleries
were
there.
In
many
cases
they
are
not
designed
and
they
wear
out
much
more
frequent
and
costs
a
lot
more
to
maintain.
F
But
this
bourbon
tax
has
helped
us
mitigate
that
it
has
been
an
offset
for
those
costs
for
years
and
years
and
years
that
will
go
away
a
major
problem,
like
the
judge
talking
about
the
warehouse
of
the
RV
for
the
cities.
Most
of
these
distilleries
rely
on
the
cities.
For
the
massive
amount
of
water
and
waste
treatment
that
they
need,
this
is
all
changed
too
in
this
last
10
years.
F
Our
city
is
right.
Now:
spending
30
million
dollars
on
Water
and
Sewer
projects,
I
think
two
million
of
it
do
we
have
a
grant
for
the
rest
of
it
will
have
to
be
financed,
that's
being
pushed
primarily
by
all
the
growth
we
were
having
with
our
distilleries,
and
their
timelines
are
so
much
more
aggressive
now
than
what
they
did.
As
Marshall
saw,
this
growth
happening
over
the
last
hundred
years.
Now
they
come
in,
they
build
a
new
distillery,
five
million
gallons
a
year,
five
years
later,
they're
doing
10
more
million
gallons
a
year.
F
Five
more
years
later,
so
we
will
have
some
distilleries
producing
30
million
gallons
of
bourbon
a
year.
When
we
finish
spending
this
30
million
dollars
and
the
best
settles
and
the
Smoke
Clears,
we
will
have
four
customers,
four
distilleries
that
will
be
consuming
25
percent
of
all
the
water
we
have
available
for
our
city
and
our
County.
We
Supply
almost
the
entire
County
we
Supply
two
more
cities,
New
Haven
and
Bloomfield,
and
some
wholesale
customers,
25
percent
of
all
that
water
will
be
consumed
by
four
customers.
F
F
25
percent
of
all
that
capacity
would
be
used
up
by
the
distilleries
and
that
will
grow
and
grow
and
grow
over
time,
and
so
the
the
phase
out
again
this
this
Revenue
we've
been
getting
a
long
time,
has
helped
pacify
and
help
offset
many
other
costs
that
we
have
in
city
and
county
governments,
so
that
we
can
make
some
of
these
Investments
we're
going
to
lose
that
we're
going
to
lose.
That
and.
F
F
There's
a
lot
of
cities
are
going
to
find
out
the
hard
way
how
water
pressure
you
go
home
in
the
afternoon.
You
don't
have
water
pressure.
Take
a
shower.
You
can't
wash
your
car.
Much
of
this
30
million
dollars
is
helping
to
mitigate
that.
So
I
just
want
to
say
you
know
we
have
been
over
backwards.
Oh
one
last
thing
to
be
completely
fair
to
the
distilleries.
We
did
approach
them
when
we
had
this
30
million
dollars
in
front
of
us
to
participate
in
a
public-private
initiative.
F
I
think
it
was
pretty
bold
and
aggressive
on
our
part
to
ask
them
to
step
up,
but
for
them
to
pursue
that
much
capacity.
It's
not
fair
for
the
other
17
000
ratepayers
to
be
paying
for
that
amount
of
capacity.
Without
the
help
of
the
distillers
and
In
fairness
to
some
of
them,
one
Distillery
has
agreed
to
step
up
pretty
significantly.
F
F
So
I'd
just
like
to
say
for
you
all
today,
I
would
strongly
request
a
no
vote
on
this
bill
and
move
it
back
to
the
interim
and
give
us
a
small
government
a
real
seat
at
the
table.
We
have
not
had
a
real
seat
at
the
table.
We
cannot
match
the
Firepower
of
KDA
and
all
their
lobbyists
and
all
the
money
that
they've
spent
on
this.
But
you
can
tell
from
the
tax
four
dollars
a
year
per
barrel,
is
not
an
onerous
tax.
F
The
facts
and
the
growth
right
in
Nelson
County
defy
that
logic,
but
this
is
holding
back
growth,
but
I
would
say.
I
do
appreciate
that
the
support
we've
gotten
from
senators
and
representatives
who
have
tried
to
be
our
voice,
try
to
be
our
voice
and
give
us
avoids
here,
and
we
appreciate
your
all's
opportunity
to
hear
us
today.
F
It
doesn't
matter
whether
you
from
the
far
right,
far
left
or
in
the
middle
people.
There
are
three
Counties
have
been
asking
us.
What
is
the?
What
is
the
goal
of
this
legislative
body?
Is
it
to
truly
make
the
bourbon
industry
a
tax-exempt
industry
in
the
state
of
Kentucky,
and
when
is
it
going
to
stop?
When
is
enough
enough
with
all
the
tax
policy
changes
you
all
made
over
the
last
nine
years?
A
F
Oddly
enough,
we
have
more
Automotive
manufacturing
jobs
in
Nelson
County
than
we
do.
Bourbon
I
think
it's
about
1500
jobs,
but
I'll
give
you
a
stat,
that's
pretty
significant
here
when
they
spend
this
700
million
dollars
over
the
next
three
or
four
years
on
these
expansions
in
Nelson
County.
F
They
will
create
160
jobs,
the
rest
of
evidence,
warehouses
and
the
cost
of
building
these
massive
distilleries
and
don't
get
me
wrong.
I've
lived
in
that
town
for
69
years.
We've
had
a
great
relationship
with
them
and
I
say
this.
Revenue
has
helped
mitigate
and
provides
a
lot
of
funding
that
we
need,
but
that's
going
away
in
20
years,
and
these
costs
will
not
ever
go
late.
It's
going
to
affect
generations
to
come.
Thank
you.
D
F
Now
we
just
strictly
get
the
revenue
from
the
barrel
tax
and
we
get
some
revenue
from
property,
but
so
much
of
the
property
now
is
abated
through
the
irbs
we're
not
getting
that
and
that
abatement
is
going
to
last
longer
than
this
20-year
phase
out.
So
now
they
told
us
it
would
be
there
and
now
it's
not
so
that's
gonna.
E
I
would
like
to
add
that
you
know,
while
Bardstown
took
advantage
of
irvs
our
last
two
distilleries
in
Marion
County
did
not.
We
used
other
economic
incentives
like
filling
the
property
low
and
a
lot
more
I
won't
worry
with,
but
so
the
IRB,
while
it
does,
even
if,
if
what
it
sounds
like
is
true,
it's
still.
You
know.
We
sat
down
with
these
distilleries
just
a
few
years
ago
and
now
construction's
there
that
the
warehouses
are
going
up
and
this
will
cut
their
their
promise
immediately.
E
A
Thank
you,
members
of
the
committee
at
this
time,
chair,
will
entertain
a
motion
on
the
committee
set
Mr
chairman
I'm.
Sorry,
sir
I'd,
like.
J
Since
we
really
haven't
had
the
opportunity
to
discuss
this
and
there's
been
like
five
Renditions
in
the
past
few
hours,
but
and
my
my
concerns
a
little
off
topic,
but
it
certainly
effects
on
my
view
of
what
we're
dealing
with
here
in
the
industry
as
a
whole.
You
know
I
live
in
an
area,
we
don't
have
a
Distillery,
but
we've
got
a
lot
of
oak
trees
and
every
time
I
go
down
the
road
that
they're
leaving
my
district,
and
this
is
happening
all
over
and
we
have
I
have
concerns
on
a
lot
of
reason.
J
You
know
you
can't
have
bourbon
without
good
barrels
and-
and
you
know,
contact,
we
don't
have
the
greatest
track
record
on
forestation
and
management
and
our
departments
are
woefully
underfunded.
That
is
a
concern
of
mine
on
that
level,
on
sustainability
and
the
impact
it
has
on
populations
of
wildlife.
That
fund
other
agencies
in
Kentucky
and
I
know.
There's
a
national
conversation
taking
place,
and
some
some
of
our
distilleries
are
participating
in
that
about
that
very
issue.
But
I've
not
heard
any
I've
talked
about
it
for
years
and
I've
not
heard
that
conversation
here.
C
Absolutely
thank
you.
Senator
Webb,
the
KDA
has
numerous
sustainability
efforts
ongoing
and
we
work
closely
with
a
number
that
include
the
American
White
Oak
initiative,
which
is
specific
to
making
sure
that
populations
of
white
oak
remain.
I
will
say.
Yes,
you
know,
barrels
are
integral,
obviously,
as
we
all
know,
to
Bourbon
production.
However,
the
vast
majority
of
Oak
that's
harvested
in
Kentucky
and
other
deciduous
forest
States
vast
majority
of
that
goes
to
flooring.
It's
a
massive
industry
and
we're
that's
a
wonderful
thing
that
we
do
have
a
lot
of
in
the
state.
C
The
good
thing
about.
Obviously,
these
trees
is
is
they
are
sustainable,
they're
replantable,
and
there
are
efforts
to
do
that,
including
on
on
reclaimed,
mine
land,
which
I
think
is
particularly
important.
It
does
bring
up.
Another
point,
though,
and
I
would
be.
Let
me
say:
first
I
would
be
glad
to
get
you
more
information
about
our
our
various
sustainability
aspects,
but
you're
right.
There
are
a
number
of
related
directly
spin-off,
Industries
supplier
industries,
that
many
communities
across
the
state
are
benefiting
from
where
they
have
job
creation
taxes
and,
in
some
cases,
tourism.
C
If
you
and
any
of
you
ever
get
the
chance
I
highly
encourage
you
to
tour
a
Stave
Mill
independent
Stave
has
numerous
operations
across
the
state
and
these
bring
jobs
to
rural
communities.
Just
last
year,
Kentucky
landed
its
first
glass
manufacturer.
So
now
we'll
have
the
whole
range
of
suppliers.
That's
going
to
go
to
Bowling
Green,
a
community
that
doesn't
currently
have
a
lot
of
distilling
or
a
lot
of
barrels.
C
I
would
submit
that,
like
I
said
earlier,
in
my
testimony
with
68
counties
that
have
no
distilling
operations,
there's
ample
opportunity
to
continue
recruit,
recruiting
suppliers
that
bring
good
jobs
and
if
we're
able
to
phase
out
the
barrel
tax
responsibly,
that
removes
this
this
barrier
to
entry
and
we
will
see
and
I
would
love
to
see
a
Distillery
come
to
your
District.
If
that's,
if
that's
something
that
would
be
agreeable,
I.
J
Just
want
to
make
sure
my
trees
are
there
and
for
generations
to
come
and
Wildlife
populations,
but
I
appreciate
allowing
me
to
interject
this
conversation.
I
think
we
need
to
have
more
discussion
on
it.
It's
very
important.
There's
a
national
conversation
going
on
and
and
while
I
had
him
here,
Mr
chairman
I
know
our
time
is
short,
but
I
appreciate
it.
Thank
you.
A
A
H
Number
one
will
give
me
a
little
bit
more
time
to
read
over
it
again,
but
I.
Also
thank
the
full
Senate
ought
to
have
an
opportunity
to
to
be
able
to
look
over
the
material
and
and
have
a
say.
D
Yes,
ma'am
I'm,
so
grateful
to
hear
from
our
city
in
our
County
Representatives
because
of
the
such
important
work
that
they're
doing
in
in
the
delicate
balance,
and
this
bill
has
received
such
nuanced
language
in
it
to
inspire
growth,
but
also
Inspire
the
access
to
those
tax
dollars
that
you're
going
to
thrive
on
as
well,
but
I
I
do
think
that
this
will
be
an
ongoing
conversation.
This
is
definitely
a
great
next
move,
though.
Thank
you.
K
L
I'm
gonna
say
yes
to
move
it
to
the
floor
for
discussion.
But
if
I
may
explain
absolutely.
L
This
is
a
this
is
a
big
step.
It
changes.
The
trajectory
it
gives
me
makes
your
concern,
because
this
is
a
whole
lot
and
there's
a
lot
unexplained.
I,
don't
see
what
the
impact
is.
I,
don't
see
anything
that's
before
me
now
that
gives
me
a
projection
of
where
this
goes
other
than
words
I'm.
Assuming
there's
going
to
be.
Are
these
very
fiscal
note
regarding
to
this
I
assume
it
is
now,
but
I
won't
review
that,
but
I
may
not
I
may
change
my
position
depending
on
how
this
unfolds.
A
A
My
now
11th
session
I've
never
dealt
with
elected
officials
who
feel
such
love
for
or
felt
such
love
for
an
industry,
but
at
this
point,
feel
such
a
cinch
of
heart
and
almost
betrayal
has
been
expressed
to
me
and
you
guys
have
a
lot
of
bridges
to
rebuild
and
a
lot
of
fences
to
mend
in
this
and
you've
been
good
partners
and
I'm
optimistic.
That
will
continue
on
that.
A
You
will
make
the
Investments
that
make
this
a
wise
vote
on
behalf
of
the
general
assembly,
so
assuming
this
ultimately
goes
through
or
whether
it
doesn't
I
think
that
there's
some
work
to
be
done
to
rebuild
some
of
those
relationships
that
have
otherwise
been
damaged.
At
this
point
there
being
seven
I
votes,
three,
no
votes.
The
measure
passes
with
favorable
expression
all
right.
Next
up
we
have
house
bill
nine,
oh
my
apologies.
We
do
have
a
title
Amendment
this
time.
The
chair
will
entertain
a
title
moment
on
Amendment
on
House
Bill
5.
A
A
To
the
members
of
the
committee,
the
sub
that
you
previously
received
in
your
email
is
actually
not
the
sub.
That
is
in
front
of
you
right
now.
It
is
the
same
substance,
but
it
does
not
have
the
investment
and
visor
language
in
it
that
you
had
previously
seen
so
other
than
that.
That
is
the
change
to
this
sub
versus
the
one
that
you
were
emailed
about
would
be
remiss
well.
You
know
what
at
this
time,
the
chair
will
entertain
a
motion
on
the
sub.
A
M
Good
to
be
here,
I
appreciate
chairman
McDaniel
members
of
the
committee
for
inviting
us
here
to
present
house
bill.
Nine
and
and
chairman
I
can
make
this
as
brief,
as
you
like,
or
I,
can
give
an
extended
version.
I.
M
So
at
this
point,
I
agree
so
with
me
today
is
Rebecca
hartzo
with
Babbage,
co-founder
she's
the
contract
lobbyist
for
Grant,
ready
Kentucky.
And,
of
course
you
all
know
your
own
Senator
wheeler.
M
All
right,
so
the
main
objective
house
bill
nine,
is
to
seize
on
an
extraordinary
opportunity
and
leverage
Kentucky
state
tax
dollars
towards
significant
public
projects
that
were
Revitalize
our
communities.
M
M
Sounds
good
so
at
the
federal
level,
over
three
trillion
dollars
have
been
authorized
towards
programs
aimed
at
economic
Workforce,
Development
infrastructure,
substance
use,
disorder,
programs,
stem
education,
housing
and
more.
A
federal,
inter
agency
work
group
has
defined
25
areas
in
the
United
States
that
are
affected
by
energy
job
losses
and
has
prioritized
185
million
in
federal
grants
for
these
communities.
Kentucky
has
two
of
those
25.
N
Thank
you
Mr
chairman.
Yes,
the
committee
sub
merely
makes
a
few
minor
changes.
The
original
Bill
had
the
entirety
of
these
grants,
managed
managed
through
the
ad
districts.
What
this
does
it
does
mandate
that
the
ad
districts
cooperate
and
identifying
grants,
but
it
does
not
give
them
exclusive
management.
It
basically
puts
it
through
the
department
of
local
government
for
scoring.
In
addition,
it
requests
that
the
local
universities
and
some
of
these
impacted
counties
we.
A
A
A
All
right,
there's
no
correct
all
right
so.