Published: May 14, 2008 08:22 am            

More responsibility for insurance firms

The Kentucky League of Cities (KLC) is doing things differently this year when it comes to shedding light on initiatives passed during the 2008 Kentucky General Assembly.

Meetings are being conducted in key cities throughout the state in lieu of large, wrap-up meetings, J.D. Chaney, counsel for KLC Member Legal Services said Tuesday at a special-called meeting of the Richmond City Commission.

In pointing out which House Bill will have the most effect on Richmond city government, Chaney said it is clearly the Insurance Premium Tax (House Bill 524).

The bill is a joint effort by the Kentucky League of Cities, Kentucky Association of Counties, insurance companies and the Kentucky Office of Insurance to establish administrative procedures pertaining to underpayment and overpayment of insurance premium taxes.

“The Insurance Premium Tax was the biggest thing to happen in the legislative session,” Chaney said.

He referred to House Bill 524 as an “overhaul” of the administration and collection of that particular tax.

“Among other provisions, the legislation requires most insurance companies to use a risk-location system or program verified by the state Office of Insurance to assure greater accuracy in collection and administration of the tax,” according to the bill’s description in the “Kentucky League of Cities: 2008 Legislative Update.” “The legislation also imposes new and strengthened penalties against insurance companies that fail to comply with the law, creates an advisory council and requires insurance companies to inform policyholders of tax rates and jurisdictions.”

“It puts some responsibilities back on the insurance companies,” he said.

The new piece of legislation also will eliminate some of the administrative issues that are created.

“It caused a lot of cities to miss out on a lot of revenue it would have received if the tax had been properly administered by the collector,” Chaney said.

Other bills initiated by the KLC and passed during the 2008 legislative session include House Bill 330 – Notice of Special Meetings and House Bill 365 – Compensatory Leave for City Employees.

Eight House Bills and eight Senate Bills relevant to cities of the second class passed during this year’s legislative session.

A full list of these bills and their descriptions can be found at www.klc.org.

All new legislation should become effective July 15

In other business conducted at the regular 6 p.m. city commission meeting:

•Commissioner Kay Cosby Jones commented toward the end of Tuesday’s meeting about the city’s progression in considering 911 dispatch consolidation with Berea and Madison County. She said she has heard comments throughout the community insisting that the city commission was not taking action in considering consolidation.

•It’s not that we’re not doing anything,” Jones said. “It’s that it’s a much more difficult process than it is perceived to be.” She requested Richmond City Attorney Garrett Fowles review the contract of the Berea/Madison County consolidated emergency dispatch and meet with the city’s police and fire chiefs to discuss the matter. “We need an update on that ever so often,” she said.

• Joe Lillis, Richmond Codes Enforcement director, addressed the commission about the placement of election signs throughout the city. “I was out two hours last night picking (campaign) signs out of rights of way,” Lillis said. “This is a warning.”

• Campaign signs are not allowed to be placed on local or state rights of way or on personal property unless permission from the property owner is obtained, he said.

•Richmond Mayor Connie Lawson spoke about her concern with abandoned and foreclosed homes within the city limits. She asked city residents to help take care of the exterior of the homes, saying the city could receive funding to help care for abandoned, unkept lawns.

•Other dangers that go along with abandoned homes are broken-down playground equipment or swimming pools that could cause accidents among children in the neighborhood. Not only are they a haven for rats and snakes, they also can lower the property value of surrounding property by up to $7,000, Lawson said.

•An ordinance was passed that authorizes the Richmond Utilities Board to extend sewer service outside the boundaries of the city to the Okonite Co., located at 1740 Berea Road. The ordinance will allow Okonite to gain access to city sewage treatment, as well as other city services such as police and fire protection.

•Residential parking permits can now be distributed to Eastway Drive residents after commissioners passed an ordinance that was the result of several requests from residents, said Richmond City Manager David Evans.

•Commissioners heard the first reading of an ordinance accepting certain streets as public rights of way. These streets are now accepted into the city’s street system inventory and will be made part of the city’s maintenance. The streets include: Stocker Drive, Sunset Avenue, Darlene Court, Divins Court, South Keeneland Drive; Service Roads No. 3, No. 4 and No. 5, Corporate Way, Enterprise Drive and Industry Drive.

• An order was adopted for job descriptions for the following positions: cultural affairs and facilities director in the Richmond Tourism and Main Street Department, athletic director for the Richmond Parks and Recreation, payroll specialist II for the Finance Department, assistant director for the Parks and Recreation Department and public information/information officer for the Richmond Fire Department.

•Lawson was authorized to sign a transmission line easement with East Kentucky Power for property located on Red House Road.

•The city will purchase land located at 2249 Enterprise Drive for the purpose of building a new fire station to serve the southern section of the city limits.

•The commission adopted an order awarding a bid for surplus property to David and Paul Frazier who purchased a Caterpillar Pan Vehicle for the bid price of $6,550.

• Joe Bentley was transferred from the Richmond Parks and Recreation Department to the Tourism Department.

• The commission acknowledged the retirement of Capt. Darrell Cruse of the Richmond Fire Department that will become effective on May 31.

Ronica Shannon can be reached at rshannon@richmondregister.com or 623-1669, Ext. 234.

        

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