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Kentucky Chamber leads record-breaking legislative lobbying spending in January

Kentucky's Capitol in Frankfort.
Ryan Van Velzer
/
KPR
Groups spent more than $3 million lobbying the Kentucky General Assembly in January, a record-breaking amount for the opening month of any legislative session.

Groups set an all-time record for lobbying spending in the first month of a Kentucky General Assembly session, with the statewide business advocacy group easily leading all spenders.

Nearly 900 groups combined to spend more than $3 million lobbying the Kentucky General Assembly in January, a record-breaking amount for the opening month of any legislative session.

Leading the way by far was the Kentucky Chamber of Commerce, which reported spending just shy of $100,000 attempting to influence lawmakers in Frankfort last month — a total greater than the next four highest spenders, combined.

Monday was the deadline for employers of registered lobbyists to file their January spending reports with the Kentucky Legislative Ethics Commission. A large majority of the spending documented in the reports shows what groups paid to lobbyists, but the filings also show what they spent on events, consultants and advertising to sway lawmakers, as well as what bills and issues they lobbied on.

The chamber is a perennial top lobbying spender in Frankfort, as the statewide business advocacy group has led all groups for nine of the last 11 years.

The Kentucky Chamber directed the bulk of its spending to 14 lobbyists, paying them a total of close to $60,000 — more than double the next closest group. Their report also showed $38,463 spent on TV, radio, digital, mail and billboard advertisements urging people to contact legislators in support of their favored housing and child care legislation.

That spending effort of the chamber appears to be working so far, as House Bill 6 and Senate Bill 9, the subject of those ads, passed their respective chambers on Tuesday. HB 6 includes wide-ranging reforms designed to make child care centers easier to open and operate, while SB 9 is another wide-ranging bill allowing local governments to create special housing districts that can incentivize development and streamline zoning reviews.

Airbnb, hospitals and utility companies among top lobbying spenders

Airbnb, the short-term rental giant, placed second in lobbying spending with $28,047, nearly all of that on compensation for its three lobbyists.

The company reported lobbying for issues related to short-term rentals and Senate Bill 112, which would restrict limitations that local governments can place on where short-term rentals are located. The bill has so far not received a committee hearing, but a similar bill pushed by GOP House Speaker David Osborne of Prospect passed the House last year.

The Kentucky Hospital Association placed third in lobbying spending with more than $22,000 paid to six lobbyists.

The hospital advocacy group reported lobbying to discontinue a “frozen” 1% provider tax paid by hospitals to support the state Medicaid program, saying it is needed due to major pending changes from the “Big Beautiful Bill” passed by Congress last year that will reduce federal payments to Kentucky hospitals by billions of dollars, putting some at risk of closure.

No bills have been filed so far this session that would freeze this hospital provider tax.

The Kentucky Petroleum Marketers Association was a relative newcomer to the list of top lobbying spenders, reporting that it spent more than $22,000. The trade association of gas station owners reported lobbying against House Bill 370, which would increase gas taxes in order to fund more road projects. The bill has not yet received a committee hearing.

The petroleum group reported spending more than $16,000 on the lobbying form’s line item for “Professional and Technical Research & Assistance” — which is usually for public opinion polls or public relations firms — but its executive director did not return messages asking what the payment was specifically for.

Two of Kentucky’s largest electric utility providers also made their way into the list of the top 10 lobbying spenders in January — Louisville Gas & Electric and Kentucky Utilities and the Kentucky Association of Electric Cooperatives, a collection of two dozen nonprofit consumer-owned utilities.

Both reported lobbying on House Bill 398, which revisits two laws passed in recent years that make it harder for utility companies to retire coal-fired power plants. The general council of East Kentucky Power Cooperative — a member of the cooperative association — testified in committee that HB 398 would allow utilities recover costs from consumers for the decommissioning of a plant before its retirement is authorized. The bill cleared the House by a wide margin and is now in the Senate.

Another relative newcomer to the list of top lobbying spenders was Accelecom, a broadband internet provider that is in a heated dispute with the state agency administering the statewide Kentucky Wired project.

Accelecom reported lobbying on House Bill 314, which would eliminate the director position at the Kentucky Communications Network Authority and move the agency out of the governor’s office and under the Commonwealth Office of Technology.

Accelecom sued the state agency after it abruptly canceled its contract to provide “last mile” service to customers from the KentuckyWired network, alleging a breach of contract. HB 314 cleared the House in early February and is now in the Senate.

Other groups and companies among the top lobbying spenders in January were Greater Louisville Inc. (the business chamber for the city and region), the Kentucky League of Cities (which advocates for city governments) and tobacco giant Altria.

Here is a list of the top 10 lobbying spenders from January, according to the ethics commission filings.

  1. Kentucky Chamber of Commerce — $98,136.67
  2. Airbnb, Inc. — $28,047.39
  3. Kentucky Hospital Association — $22,590.00
  4. Greater Louisville, Inc. — $22,500.00
  5. Kentucky League of Cities, Inc. — $22,434.00
  6. Kentucky Petroleum Marketers Association — $22,414.00
  7. Kentucky Association of Electric Cooperatives, Inc. — $22,260.18
  8. Accelecom — $21,811.00
  9. Altria Client Services LLC — $19,401.36
  10. LG&E and KU Energy LLC — $19,350.66
Joe is the enterprise statehouse reporter for Kentucky Public Radio, a collaboration including Louisville Public Media, WEKU-Lexington/Richmond, WKU Public Radio and WKMS-Murray. You can email Joe at jsonka@lpm.org and find him at BlueSky (@joesonka.lpm.org).