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					Commonwealth of Kentucky                            Legislative Research Commission
General Assembly                                  Local Mandate Fiscal Impact Estimate

                                 2009 REGULAR SESSION

                                    Measure Information

Bill Request #:     1279

Bill #:    SB 165

Bill Subject/Title:     AN ACT relating to contracts.

Sponsor:     Senator Damon Thayer

Unit of Government:          x   City                x   County               x   Urban-County
                             x   Charter County      x   Consolidated Local   x   Unified Local

Office(s) Impacted          Finance and Administration; Human Resources; Legal

Requirement:        x       Mandatory       Optional

Effect on
Powers & Duties         x    Modifies Existing           Adds New     x   Eliminates Existing

                                   Purpose and Mechanics

SB 165 amends KRS 336.130 to prohibit mandatory membership or financial support of a
labor organization as a condition of employment. The section is to be termed the
"Kentucky Right to Work Act". The measure exempts existing collective bargaining
agreements or any other type of agreement between employees and a labor organization
entered into before the measure’s effective date. However, the measure applies to any
new agreement, or a renewal or extension of any existing collective bargaining

The measure amends KRS 336.990 to make a violation of the measure a Class A
misdemeanor, award damages, and provide injunctive relief. The measure amends KRS
67A.6904, 67C.406, 70.262, 78.470, 78.480, and 345.050 to conform.

               Fiscal Explanation, Bill Provisions, and Estimated Cost

The fiscal impact of SB 165 on local governments is expected to be minimal.

Section 3 of the measure would create a new crime, a Class A misdemeanor, for any
labor organization, employer, or other person who directly or indirectly violates the

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prohibition against mandatory labor organization membership or financial support
of a labor organization as a condition of employment. It is not known how many
individuals would be charged with violating the provisions of Section 1 upon
implementation of the measure. Local governments will be responsible for the cost of
incarcerating an individual who does not make bail when charged with a Class A
misdemeanor under the measure as well as an individual convicted of such an offense. A
person convicted of a Class A misdemeanor can be incarcerated for up to one year in any
of Kentucky’s 88 local or regional jails at an average cost of $36.591 per inmate day, paid
for entirely at the local government's expense. Individual jail costs range from $19 to
$88.44 per inmate day.

Implementation of the measure would require administrative time and resources to
amend any existing local government bargaining agreements at the point of renewal or
extension. For the past several years, a number of Kentucky cities and counties have had
at least one union organization representing some of their public employees. Listed as
follows are the known local governmental units and the unions with collective bargaining

LOCAL GOVERNMENT AGENCY                                                    Union                            County

City of Ashland                                     Ashland Fraternal Order of Police              Boyd
City of Ashland                                     Ashland Firefighters                           Boyd
Ft. Thomas Fire Department                          International Assn. of Firefighters (I.A.F.F.) Campbell
Newport Fire Department                             I.A.F.F                                        Campbell
Newport Police Department                           F.O.P.                                         Campbell
City of Newport                                     American Federation of State, County and Campbell
                                                    Municipal Employees (A.F.S.C.M.E.)
Lexington-Fayette Metro Govt. - Police              F.O.P                                          Fayette
Lexington-Fayette Metro Govt. - Fire    I.A.F.F.
Lexington Transit Authority             Transit Union                                                       Fayette
City of Raceland                        United Steelworkers                                                 Greenup
City of Greenup                         United Steelworkers                                                 Greenup
Louisville Metro Housing Authority      S.E.I.U. ; A.F.S.C.M.E.                                             Jefferson
Louisville Metro Government             Teamsters; A.F.S.C.M.E.;                                            Jefferson
                                        Service Employees International
                                        Union/National Conference of Firemen and
                                        Oilers; International Brotherhood of
                                        Electrical Workers (IBEW); IAFF; FOP;
Louisville Metro Government Police Tech Teamsters                                                           Jefferson

1Estimate  derived from data from the Auditor of Public Accounts. The Auditor's report, 2006 Kentucky
Jails A Financial Overview, reports the average cost of housing a prisoner as $36.25. This average is
aggregated to the facility level. The estimate provided here is a per prisoner average for the state as a

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Louisville Metro Government –             Teamsters                            Jefferson
Nonsworn Officers
Louisville Metro Government EMS           Teamsters                            Jefferson
Louisville Metro Corrections - Sworn      F.O.P.                               Jefferson
Louisville Metro Government Fire Dept     I.A.F.F.                             Jefferson
Louisville Incinerator                    Firemen and Oilers                   Jefferson
Louisville Metro Government - Impound     Teamsters                            Jefferson
Louisville Metro Government - Traffic     Teamsters                            Jefferson
Louisville Metro Government Civ Gp        Teamsters                            Jefferson
Louisville Metro Government - Master      Teamsters                            Jefferson
Louisville Metro Public Works             A.F.S.C.M.E.                         Jefferson
Louisville Metro Sewer District           Nat’l Assn of Government Employees   Jefferson
City of Shively                           F.O.P.; I.A.F.F.                     Jefferson

City of Shively                           Teamsters; Oilers
Transit Authority of River City (TARC)    Transit Union                        Jefferson
Covington Fire Department                 I.A.F.F.                             Kenton
Covington Police Department               F.O.P.                               Kenton
City of Covington                         A.F.S.C.M.E.                         Kenton
Transit Authority of Northern Kentucky    Transit Union                        Kenton
City of Paducah                           A.F.S.C.M.E.                         McCracken
Paducah Fire Department                   I.A.F.F.                             McCracken
Paducah Police Department                 F.O.P.                               McCracken
Housing Authority of Paducah              A.F.S.C.M.E.                         McCracken
Pike County Fiscal Court                  United Mine Workers                  Pike
Letcher County Fiscal Court               United Steelworkers                  Letcher

Data Source(s):    Kentucky Labor Cabinet, Division of Employment Standards;
LRC Staff.

Preparer: Dianna McClure                  Reviewer:               Date:

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