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A
Welcome
everyone
to
the
fourth
meeting
of
the
house.
Standing
committee
on
small
business
information
talk
technology
for
the
2023
regular
session.
A
special
welcome
to
any
guests
we
have
visiting
with
today
do
I
have
any
members
of
the
committee
that
have
guests
they
would
like
to
introduce
representative
Roberts.
Thank.
B
You
chairman
members
of
the
committee
I'd
like
to
you
to
introduce
you
to
my
two
amazing
Shadows
today
this
is
Fiona
and
this
is
Phoebe.
They
are
nine-year-old
twins.
Their
last
name
is
Sue
Holt.
Some
of
you
may
know
their
mother
Ellen,
Sue
Holtz
and
their
father
Dave
Sue
Holtz.
Please
help
me
make
them
feel
welcome.
A
They
do
make
our
committee
look
much
better.
Anybody
else
have
guests:
okay,
if
not
before
we
get
started,
I'd
like
to
go
over
a
few
reminders.
Please
silent
all
cell
phones
in
this
time.
If
you'd
like
to
speak
on
a
bill,
please
use
a
sign
up
sheet
at
the
interest
entrance
of
the
to
the
rooms.
Excuse
me
requested
speaker
within
this
chair
discretion
based
upon
time
restraints
for
its
media
and
information
already
presented,
just
reminder
that
no
signs
are
permitted
in
the
rooms.
A
A
C
Stalker
representative
Tate
representative
Truitt
representative
White
representative
Whitten,
here
chair
Vice,
chair
Lawrence,
here
chair.
A
Pratt
and
also
remember
reminder:
we
have
members
in
other
committees,
testifying
back
and
forth
so
you're
going
to
see
people
coming
and
going
doesn't
mean
they're.
Mad
just
means
I've
got
other
things
going
on
this
time
of
year,
all
right
for
up.
First,
we
have
House,
Bill,
394
I'll,
be
leaving
the
chair
and
be
in
presentation
at
this
point
in
time,
Mr
Lawrence
co-chair
Lawrence.
Will
you
chair
the
committee.
E
G
Good
morning,
thank
you.
Mr
chairman
members
of
the
committee.
My
name
is
Kristen
Meadows
Baldwin,
with
the
National
Association
professional
employer
organizations
or
napio,
the
largest
trade
Association
in
the
peo
industry.
I'll.
Ask
my
colleague
I'll
advance
to
talk
a
little
bit
more
about
the
PO
industry
here
in
the
state
of
Kentucky
and
what
services
they
provide.
I'm
here
to
ask
for
support
of
House
Bill
394
on
behalf
of
the
members
of
napio.
The
entire
po
industry
is
thankful
for
the
support.
During
the
first
week
of
the
legislative
session
you
do
remember.
G
I
was
here
back
in
the
first
week
of
January
to
pass
out
House
Bill
10
from
this
committee,
House
Bill
10
delayed
the
implementation
and
registration
for
peos
in
the
Commonwealth.
The
bill
we
are
here
today
is
requesting
your
support
for
as
a
cleanup
bill
from
2022
and
would
also
allow
the
PO
industry
to
the
option
to
either
report
for
their
state
unemployment
insurance
at
either
the
peo
level
or
the
employer
level
sections.
One.
G
Two
and
three
of
this
bill
include
clarifying
language
related
to
the
napio
model,
act
again
passed
in
2002
2022
and
it
specifically
clarifies
Financial
requirements
for
peos
at
the
annual
renewal
and
at
the
registration
fee
for
group
for
po
groups
section
four.
The
final
section
of
this
bill
allows
peo
to
continue
reporting
at
the
employer
level
for
state
unemployment
insurance
purposes.
The
model
act
that
was
passed
last
year,
transitions
all
reporting
to
the
from
the
employer
level
to
the
peo
level.
This
bill
would
allow
the
option
to
select
one
of
those
two
reporting
options.
G
The
transition
from
reporting
one
system
to
another
is
a
very,
very
heavy
lift
by
the
Pu
industry,
and
many
of
them
have
requested
the
option
to
maintain
the
status
quo
with
their
clients.
All
in
my
remarks
by
respectfully
requesting
your
support
of
House
Bill
394
and
pass
it
over
to
Charlie
to
talk
a
little
more
about
the
industry
itself.
Thank
you.
F
Thank
you,
Miss
Baldwin,
thank
you
Mr,
chair
and
members
of
the
committee,
and
just
just
by
way
of
review.
There
are
60
Napier
members
providing
services
in
the
state
of
Kentucky
that
represents
about
1500
Employers
in
the
state
of
Kentucky
and
approximately
30
000
work
site
employees.
My
company
current
HR,
is
one
of
those
peos
I'm
an
owner
of
that
company,
and
we
provide
HR
services
and
help
employers
comply
with
the
complexities
and
ever
increasing
complex
employment
law,
especially
with
work
from
home
and
state
to
state
and
I'm.
Here.
F
B
Thank
you
for
bringing
this
and
for
following
up
so
quickly
to
the
legislation
we've
already
passed
for
the
pause
here.
I
do
have
one
question
for
you,
which
is,
if
you
could
just
talk
to
me
about
the
involvement
with
the
education
and
labor
cabinet
here
and
any
potential
appropriation
needs
that
may
be
Associated
thanks.
Thank.
G
You
for
that
question.
Yes,
we
have
been
communication
with
the
Kentucky
education
and
labor
cabinet
throughout
this,
since
the
bill
was
passed
last
year
in
terms
of
implementation
on
this
bill,
specifically,
we've
been
working
with
them,
they've
reviewed
the
bill
looked
at.
It
can't
speak
on
their
behalf,
but
they
have
brought
to
their
our
attention.
The
concern
Appropriations
we're
waiting
for
an
estimate
for
from
them
about
what
additional
Appropriations
they're
looking
for
it
could
potentially
be
in
a
future
Appropriations
bill.
Thank
you.
A
D
D
B
E
A
Thank
you
ma'am
again,
like
I,
said,
you'll,
see
people
coming
and
going
out
of
our
committee
just
just
this
that
time
of
year.
So
all
right
next
for
consideration
is
house
bill.
394.
now
excuse
me,
483
is
mine.
Let's
say
this
year
this
summer
your
House
Bill
483
would
presenters
please
approach
the
table
and
introduce
yourself
for
the
record.
H
Please
proceed
all
right
before
you
today,
for
consideration
is
House
Bill
483,
also
known
as
the
biometric
information
protection
act,
so
I
want
to
start
with
this
act
with
what
is
a
biometric
scanner
or
biometric
identification.
So,
on
my
finger,
my
wedding
ring
is
a
a
biometric
device.
It
captures
all
of
my
personal
information.
It
tells
you
about
how
I
slept
last
night.
What
my
blood
oxygen
level
is
during
all
times
of
the
day,
my
heartbeat
everything
that
is
me,
your
cell
phone
in
your
pocket,
captures
biometric
information.
H
H
There's
really
Five
Pillars
to
this
bill,
but
the
most
important
parts
are
that
it
requires
large
private
entities
collecting
that
biometric
information
to
make
publicly
available
schedules
for
destroying
and
and
retaining
that
information.
So
under
the
bill,
anyone
that
is
going
to
hold
on
to
that
information.
They
have
30
days
from
the
date
that
you
tell
them
to
destroy
or
get
rid
of
that
information.
Why
is
that
important,
when
your
personal,
identifying
Health
Care
information
gets
out
into
third
parties?
Hands?
It's
not
like
your
password.
H
If
someone
hacks
that
information,
you
can't
just
go
change
your
password
or
you
can
go
change
your
password.
You
can't
just
go
change
your
DNA
or
you
can't
change
your
personal
health
care
information
or
your
face.
Even
so,
that's
why
it's
important
that
we
have
this
private
entities.
They
must
get
written
consent,
so
it
can't
be
and
it
has
to
be
separate
from
a
terms,
use
terms
and
agreements.
So
when
you,
you
know,
click
those
terms
and
agreements
that
are
on
your
cell
phone
there.
H
It's
got
to
be
separate
outside
of
that,
so
you're
personally
being
notified
that
you're
doing
that,
and
also
they
can't
provide
your
information
to
third
parties,
which
is
the
important
part
here.
There's
opt-in
and
opt
out
Provisions
in
this
bill.
That
would
require
them
to
get
your
permission
if
they're
going
to
send
something
out
to
a
third
party.
So
if
you
don't
want
your
private
Health
Data
out
there,
you
don't
have
to
let
that
happen.
H
There
are
some
teeth
to
this
bill.
There
is
a
right
for
a
civil
action.
I
expect
there
will
be
some
testimony
against
this
probably
related
to
a
civil
action.
You
know
as
an
attorney
we're
going
to
throw
those
in
just
about
every
bill.
You
know
we
draft,
but
what
this
one
does
and
it's
very
different
than
other
states.
It
allows
you
a
private
calls
of
action.
There
was
recently
some
litigation
regarding
White
Castle
on
this
issue
that
resulted
in
a
15
billion
dollar
judgment.
H
Now
some
of
you
are
going
to
get
sticker
shock
on
that.
The
Illinois
Provisions
that
that
was
litigated
under
are
not
included
in
this
bill.
There
were
mandatory
fees
for
each
and
every
liquidated
damages
Clauses
is
what
they're
called
for
each
and
every
violation.
We
don't
have
this
in
here.
So
ours
is
a
little
bit
different
in
that
respect,
that
that
you
would
just
leave
it
up
to
a
jury
or
leave
it
up
to
a
judge
to
decide
those
things.
This
does
not
cover.
H
It
covers
private
entities,
large
private
entities
over
10
million
dollars.
It
does
not
cover
government
so
and
I
believe
that
the
the
Chiefs
Association
were
on
board
with
this.
So
you
know
we
have
government
support,
as
well
as
as
private
support
on
this
and
I.
Think
that's
it.
Unless
you
have
anything
you'd
like
to
add
on
it.
I
A
A
J
Yeah
good
morning,
everybody,
my
name,
is
Andrew.
Kingman
I
represent
the
state
privacy
and
security
Coalition.
We
are
a
coalition
of
over
30
companies
and
trade
associations
across
a
number
of
sectors.
J
My
background
is
not
only
as
an
advocate,
but
also
as
a
privacy.
Compliance
lawyer,
so
I
have
helped.
Clients
comply
with
the
Illinois
version
of
this
law
and
very
much
appreciate
your
time
and
the
committee's
time.
This
morning
we
have
significant
and
and
very
grave
doubts
about
this
bill
moving
forward
here
and
there's
a
few
reasons
for
that,
but
I
think
it's
important
first
to
lay
out
what
this
bill
is.
J
J
If,
if
you
folks
would
like,
but
in
the
last
15
years
not
a
single
state
has
replicated
this
statute,
our
our
Coalition
does
believe
very
strongly
in
privacy,
protections
for
consumers
and
we
are
working
in
the
Senate
as
it
to
ensure
that
comprehensive
privacy
legislation,
which
also
protects
biometric
information,
but
does
so
in
a
much
more
balanced
way
that
that
privacy
legislation
would
follow
the
framework
that
Virginia,
Utah,
Colorado
and
Connecticut
have
set
out
in
the
way
that
they
protect
biometric
information.
J
But
this
bill
risks
repeating
the
mistakes
of
Illinois
and
causing
significant
cyber
security
threats
to
Consumers
and
I'll.
Explain
why
we
have
seen
in
Illinois
the
private
right
of
action
create
an
absolute
cottage
industry
for
class
action
lawsuits.
J
So
consumers
will
end
up
being
less
safe
because
there
is
no
exemption
for
activities
that
prevent
Consumer,
Fraud
and
promote
security,
and
so
the
litigation
risk,
as
it
has
in
Illinois,
overwhelms
any
ability
to
offer
these
services
that
keep
Kentucky
consumers
safe.
So
in
Illinois
companies
that
provide
that
use,
biometric
information
to
provide
security
and
anti-fraud
services
have
left
the
state
or
turned
down
their
services,
I've
personally
counseled
clients
because
of
the
litigation
risk
not
to
offer
their
services
in
Illinois,
because
the
the
litigation
risk
is
so
high.
J
J
The
state
supreme
court
in
the
White
Castle
case
that
the
sponsor
mentioned
in
which
we'll
likely
put
White
Castle
out
of
business,
has
asked
the
legislature
to
revise
the
statute
to
stop
this
abuse
of
the
private
right
of
action
and
Illinois
is
considering
amendments
by
both
Democrats
and
Republicans
to
the
statute.
Due
to
this
abuse,
the
bill
also
has
significant
anti-privacy
and
anti-security
consequences
for
consumers,
because
the
bill
provides
an
access
right
for
consumers
to
access
their
biometric
information.
J
But
the
bill
provides
no
mechanism
for
entities
to
authenticate
the
consumer
to
make
sure
that
the
consumer
is
who
they
say
they
are
and
because
of
the
pra
would
be
required
to
return
that
information
back
to
the
consumer.
Now
we
think
that
is
anti-privacy
and
anti-security,
because
it
opens
the
door
for
people
to
impersonate
consumers
to
obtain
biometric
and
other
sensitive
information,
and
we
also
believe
that
biometric
information
is
sensitive
enough,
that
it
should
not
be
transferred
back
and
forth
from
companies
to
Consumers.
J
So
the
prime
many
of
the
Privacy
statutes
that
have
passed
again
based
on
that
Virginia
framework,
but
even
in
California,
include
specific
Provisions
that
prohibit
companies
from
returning
this
kind
of
data
to
Consumers
because
of
the
cyber
security
risk
and
again
there's
no
exemption
for
cyber
security
or
anti-fraud
uses.
So
Biometrics
represent
a
generational
improvement
over
knowledge-based
questions
like
what
color
is
your
car
or
what
your
favorite
food
is,
but
there's
no
ability
to
use
those
here
and
businesses
that
do
will
be
sued
for
doing
that.
Businesses
also
that
provide
anti-fraud
services.
J
The
because
of
the
lack
of
the
exemption.
Excuse
me:
fraudsters
will
not
obviously
give
opt-in
consent
to
have
their
biometric
information
collected,
and
so
the
consequence
of
that
is
that
you
know
they're
the
only
ones
from
whom
biometric
information
is
not
collected
in
the
cyber
security
or
anti-fraud
context.
So
you
know
happy
to
elaborate
if
needed,
but
we
believe
this
has
extremely
negative
privacy
and
cyber
security
implications
for
consumers.
We've
seen
that
happen
in
Illinois
and
that's
the
reason
that
it
hasn't
been
replicated
in
the
15
years.
Since,
thank
you.
D
Thank
you,
Mr,
chair
I
would
like
a
reply
to
that.
Logistically
and
I
know.
You
mentioned
that
government
is
excluded
from
this,
but
I
do
have
a
fingerprint
access
to
our
chamber
computer
right
now,
so
I'm
just
wondering
if
I'm
beat
next
year
or
retire.
What
happens
to
my
fingerprint
and
I
know?
That's
not
exactly
according
to
your
bill
because
you
said
government's
exempt,
but
do
you
know
how
that
works
or
does
anybody
know
what's
going
to
happen
to
my
fingerprint
I.
C
E
D
D
B
A
Yes,
it
does.
This
bill
does
pass
with
favorable
expression,
I'd
like
to
see
you
all,
if
possible,
before
it
comes
to
Florida
house
work,
to
see
if
we
can't
work
out
your
differences
so
that
we
don't
have
this
on
the
floor
of
the
house.
But
at
this
point
in
time
your
bill
is
passed.
Congratulations
look
forward
to
seeing
see
you
here
shortly,
so
thank.
A
Okay,
next
we
have.
This
is
small
business
day
at
the
capitals.
You
notice
the
room
filled
up
right
after
we
started.
We
have
some
presenters
from
this
Kentucky
chamber.
If
you
wouldn't
mind,
please
approach
the
table,
introduce
yourself
for
the
record
and
look
forward
to
hearing
the
concerns
of
small
business,
which
is
near
and
dear
to
my
heart.
K
Chairman
members
of
the
committee,
thank
you
for
having
us
here
today.
The
Kentucky
chamber
is
a
convener.
We
get
folks
in
the
room
when
they
need
to
be
there.
What
gets
misunderstood
is
the
belief
that
our
organization
only
advocates
for
Fortune
500
businesses
when
in
fact,
Mr
chairman
many
of
our
businesses
are
made
up
of
less
than
100
employees,
and
many
look
like
the
businesses
that
you
all
have
in
your
districts
with
me.
I
I
I
also
appreciate
the
action
taken
in
last
year's
session
on
unemployment,
insurance
reform
and
child
care
assistance.
Growing
Kentucky's
Workforce
to
meet
ongoing
demands
of
our
economy
is
critical.
We
must
continue
to
work
towards
addressing
this
crisis.
The
businesses
of
all
sizes
are
facing
for
small
businesses.
Every
dollar
counts.
This
is
especially
true
today,
with
labor
and
materials
cost
Rising
rapidly.
Small
business
owners
are
looking
everywhere.
They
can
for
savings
I'm
here
today
to
advocate
for
state
and
local
tax
parity
for
small
businesses.
I
Just
last
month,
I
co-wrote
an
op-ed
about
how
important
it
is
to
join
29
other
states
in
passing
legislation
to
allow
small
business
owners
to
deduct
a
greater
share
of
their
state
and
local
tax
from
their
federal
income
tax
liability.
There
is
an
IRS
approved
workaround
that,
if
approved,
could
save
Kentucky
businesses
up
to
40
million
dollars
per
year.
I
A
Thank
you
do
I,
have
any
questions
for
them.
Well,
as
chair
of
this
comedian,
a
small
business
owner
also
I
feel
your
pain.
At
times
you
know
again,
we
create
I,
think
68
of
all
the
jobs
in
Kentucky.
We
are
the
major
job
creators,
even
though
we,
the
large
companies,
get
headlines,
but
we
are
the
economic
engine
for
Kentucky
and
I've
often
said
now.
It's
tongue-in-cheek,
despite
the
best
efforts
of
locals
state
and
federal
government,
we've
managed
to
succeed.
A
So
thank
you
guys
for
being
here
today
and
look
forward
to
having
you
here
at
the
Capitol.
Thank
you
guys
very
much.
Thank.
I
A
Soon
enough
for
further
business,
do
I
hear
a
motion
for
adjournment.
You
hear
a
second.