2017 Interim LEGISLATIVE Volume 30, No. 9 December 2017 * Read online at www.lrc.ky.gov/legislation.htm RECORD New state Constitutional officers revenue share legislative wish lists estimates by Jim Hannah LRC Public Information

project slow FRANKFORT – A panel of state lawmakers recently got a better idea of the legislation some of Kentucky’s statewide constitutional officers growth will advocate for during the upcoming regular by Rebecca Hanchett session. LRC Public Information “We have a couple of things percolating,” Kentucky Auditor of Public Accounts Mike FRANKFORT---State revenue projections Harmon said while testifying before the Inter- for this fiscal year and the next two fall a bit im Joint Committee on State Government on short of earlier expectations made in October. Nov. 29. “I’ll let you peek under the hood, as it Official state General Fund revenue esti- were, at a few things we are working on.” mates issued on Dec. 15 by the Consensus Fore- He said the legislature could help Ken- casting Group (CFG) project that state revenues tucky’s 120 counties by passing a bill modeled will grow by $287.5 million in fiscal year 2019 after an Ohio law that allows for an occasional, and $284.15 million in 2020. Less growth total- less-expensive audit of counties with a history ing $240.57 million is expected this fiscal year, of sound financial recordkeeping. leaving the state with a predicted $156.1 million Another piece of suggested legislation from shortfall in the current year. Harmon would close a loophole he said his of- Total General Fund revenues estimated by fice found that allows cities to receive state road the CFG for fiscal years 2018 through 2020 are Rep. Phil Moffett, R-Louisville, asks a question funds even if they haven’t completed a yearly during the Nov. 29 meeting of the Interim Joint $10.7 billion in fiscal year 2018, $11 billion in audit. Committee on State Government. fiscal year 2019, and $11.29 billion in fiscal year Kentucky State Treasurer Allison Ball said 2020. her No. 1 legislative priority is reform of Ken- Predictions were made by the CFG pan- tucky’s unclaimed property law. Part of her getting people’s property back to them,” Ball el based on information provided by the firm office’s duties is to handle unclaimed proper- Global Insight, a world market research and eco- said. “It is good for the economy because it is ty such as uncashed payroll checks, inactive their money and they now can do what they nomic forecasting organization. It is based on stocks, dividends and savings accounts Global Insight’s “control,” or moderate, forecast want to with it.” Ball said her office returned $25 million in Ball said additional legislation is needed, for the next two years even though that forecast unclaimed property last year. She attributed the projects $0.5 million in less General Fund reve- however, to deal with 21st-century creations figure, in part, to going out and identifying en- such as gift cards and Bitcoins. nue for Kentucky over the next two years than tities such as school boards and nonprofits that Global’s “pessimistic forecast” estimates prelim- Kentucky Department of Agriculture Gen- normally wouldn’t think to check to see if they eral Counsel Joseph Bilby said his department inarily accepted by the CFG two months ago. have unclaimed property. “I’m a big believer in property rights and Continued on page 2 Continued on page 3 THE KENTUCKY GENERAL ASSEMBLY 1 Farmers given credit for state soil, water improvements by Rebecca Hanchett ration of pasture and hay land—especially in LRC Public Information drought years, most recently in 2012—are among projects funded in past years. FRANKFORT—Farmers deserve at least “They are the original environmentalists,” some of the credit for reducing pollutants in Richardson said of Kentucky’s farmers. “They Kentucky’s water supply, the co-chair of a state want to pass their land along, they want to pass legislative committee says. their waters along, and they want it to be better Tobacco Settlement Agreement Fund than when they got it.” Oversight Committee Co-Chair Rep. Myron Richardson said 1,845 applications for cost Dossett, R-Pembroke, praised farmers for help- share assistance totaling over $14 million were ing to lower the amount of so-called nutrient submitted this fiscal year, with 1,201 of those ap- pollutants like nitrogen and phosphorus in Ken- plications approved. tucky’s water following a presentation by the The Division of Conservation’s state cost Kentucky Division of Conservation before the share program has received 52,000 applications committee on Dec. 6. for assistance from farmers since 1994, she said, Dossett pointed to the division’s own state- with over 17,948 applications approved totaling ments that less nitrogen and phosphorus is be- over $155 million in assistance. ing detected in Kentucky’s waterways. Nitrogen The agency also provides environmental Sen. Robin Webb, D-Grayson, comments on and phosphorus are common ingredients in fer- grants to the state’s 121 conservation districts, conservation issues during the Dec. 6 meeting tilizer, which is commonly used to grow crops. she said, and assists landowners who need help of the statutory Tobacco Settlement Agreement “I see it so many times just in my home complying with state Division of Water proto- Fund Oversight Committee. area. Our farmers … they don’t work all the way cols. This fiscal year, at least 136 environmental down into the creek banks,” to help prevent pol- grants were approved, said Richardson. decrease,” said Richardson. “We are working to- lutants from leaching into creeks and streams, “Districts are able to come up with unique ward a couple of different avenues to address that said Dossett. “We owe them a debt of gratitude programs for things such as soil testing, metal re- loss of technical assistance” from the NRCS. One for helping on that.” cycling—maybe it’s cover crops, river clean-ups, solution may come from the National Associa- Division of Conservation Director Kimber- whatever becomes a local issue in your commu- tion of Conservation Districts or NACD, which ly Richardson agreed with Dossett that farmers nity” using the grants, said Richardson. She em- Richardson said is offering technical assistance and landowners play a big role in protecting the phasized that the grants fund local priorities, not grants. state’s soil and water. She said $147.2 million has state or federal mandates. “We have one application in for that, and gone into the agency’s state cost share program When asked by Sen. Robin Webb, that looks to be some guaranteed funding,” said to help farmers and landowners improve soil D-Grayson, about federal funds for state conser- Richardson. and water quality on Kentucky land since 1994. vation programs, Richardson said her agency ex- Kentucky has a conservation district for Of that total, $126.5 million has come from pects federal cuts as does the Natural Resources each of the state’s 120 counties, with Logan Kentucky’s tobacco settlement agreement funds. Conservation Service or NRCS, a federal agency County divided into two districts. Each district Stream crossings that protect water from that provides technical assistance to her agency. is governed by a local board of supervisors elect- equipment and livestock, fencing, and resto- “I think we’re going to be in general seeing a ed by local voters.

Forecast, from page 1 “So the control for December (2017) is worse prediction on data showing a future decline in uct) is also reflected in the forecast, compared to than the October forecast by half a million dol- commercial real estate prices and consumer re- zero growth assumed for fiscal year 2019 by the lars,” said state Deputy Executive Director for actions to fiscal conditions. pessimistic forecast. Financial Analysis Greg Harkenrider. “We’ve had 102 continuous months of Revenue estimates for the state Road Fund, The CFG decided not to accept the pessi- growth,” said Jones. “Nineteen more months and which pays for road construction and mainte- mistic forecast, with particular concern given to this makes it the longest expansion ever.” nance in the state, were also issued on Dec. 15 by its prediction of another short-term recession The forecast chosen by the CFG for the next the CFG. Revenue losses in the Road Fund are in fiscal year 2019. Deputy Executive Director budget cycle shows a better picture including a expected this fiscal year with growth of less than Michael Jones of the Governor’s Office for Pol- significant increase in housing starts, said Jones. a percentage point projected for fiscal years 2019 icy and Research said Global Insight based the Growth in the real GDP (gross domestic prod- and 2020.

2 2017 Interim LEGISLATIVE RECORD Cities, counties share 2018 platforms by Rebecca Hanchett LRC Public Information

FRANKFORT—Kentucky cities and coun- ties need more revenue, their representatives told state lawmakers on Nov. 29. They also want Being able to fund to protect pensions earned by their workers, pensions and “safe, clean they say. Being able to fund pensions and “safe, clean and economically healthy and economically healthy communities” re- quires more flexibility than cities now have, said communities” requires Jonathan Steiner, the executive director of the more flexibility than cities Kentucky League of Cities (KLC) who told the Interim Joint Committee on Local Government now have, said Jonathan that cities want more autonomy. “Local elected officials need a way to miti- Steiner, the executive gate these changes to ensure they can continue director of the Kentucky to meet their obligation,” said Steiner. “They’re seeking more control over their local pensions, League of Cities (KLC). and they’re looking to the legislature to create a culture in the state that helps grow our local workforce.” “(We) reiterate our pledge to work with the legislature … to further address the pension crisis while also protecting the investment to public service made by our members,” Kentucky hinted at tax reform, with KLC President and Sens. Christian McDaniel, R-Taylor Mill, at right, Association of Counties (KACo) President and Richmond Mayor Jim Barnes advocating expan- and Wil Schroder, R-Wilder, listen to testimony Jefferson County Circuit Clerk David L. Nichol- sion of the restaurant tax and Turner mentioning during the Nov. 29 meeting of the Interim Joint son told the panel. the possibility of a local option sales tax. Local Committee on Local Government. Cities asked the committee to fully support option sales tax legislation has been proposed “home rule”— broad self-governance granted to but failed to pass the Kentucky legislature in pre- met opposition from many of you,” Bowen told cities by the Kentucky General Assembly under vious years. the officials. And, while he said he understands state law. County organizations that are mem- Acknowledging the complex needs of local their position, “without pension reform, we can’t bers of KACo who also presented today asked governments was Interim Joint Committee on identify those additional funds,” he said. for more funding options for roads, jails, and a Local Government Co-Chair Sen. Joe Bowen, Calls for tax reform have also been greeted number of other services. R-Owensboro, who said he heard local officials cautiously by Bowen who said tax reform is a “Jails will always be on our priority list,” said call for both more revenue and pension reform long-term fix that will not meet immediate reve- Larue County Judge Executive and Kentucky in today’s meeting. Bowen explained that the two nue needs at the local level. County Judge Executive Association legislative aren’t mutually exclusive. “In order for us to be able to address these chairman Tommy Turner. The longtime county “The reform that many of us have been critical budgetary needs … we have to get pen- official was one of a few local leaders today who wrestling with over the past six months or so has sion reform done,” said Bowen.

Legislative needs, from page 1 will ask for legislation to clear up some regulato- Bilby said his department would like to ex- it was good to get a heads-up on the legislative ry issues that may not seem too important to the empt state agricultural producers from having needs of the constitutional offices. public but are of top concern for some in agricul- to install expensive electronic logging devices “This is the last meeting of the interim ses- tural industries. on their trucks if they are making deliveries less sion,” he said. “We have taken up some very He said that while his department has been than 150 miles away. The current exemption is timely topics and some topics I’m sure that will issuing certificates of free sale for years, it will 100 miles. Electronic logging devices are at- be addressed in the upcoming session of the request for that authority to be written into law. tached to commercial motor vehicles to ensure General Assembly.” Some countries require the certificates to show compliance with the federal law regulating how The General Assembly’s 2018 session begins that the products offered for entry into their long a driver can be behind the wheel. Jan. 2 and is scheduled to last through April 13, country comply with U.S. laws and regulations. Co-chair Sen. Joe Bowen, R-Owensboro, said 2018. THE KENTUCKY GENERAL ASSEMBLY 3 2018 Regular Session Calendar

4 2017 Interim LEGISLATIVE RECORD General 2017 Assembly Senate

Julie Raque Adams (36) Jimmy Higdon (14) John Schickel (11) 213 S Lyndon Lane 344 N Spalding 2147 Natches Trace Louisville, KY 40222 Lebanon, KY 40033 Union, KY 41091 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 270-692-6945 Wil Schroder (24) Ralph Alvarado (28) Paul Hornback (20) 25 Observatory Pointe Dr. 3250 McClure Road 6102 Cropper Rd Wilder, KY 41076 Winchester, KY 40391 Shelbyville, KY 40065 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 Dan “Malano” Seum (38) Joe Bowen (8) Stan Humphries (1) 1107 Holly Ave 2031 Fieldcrest Dr 763 Sinking Fork Rd Fairdale, KY 40118 Owensboro, KY 42301 Cadiz, KY 42211 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-749-2859 (Home) 270-685-1859 (Home) 270-522-0195 Brandon Smith (30) Tom Buford (22) Ray S. Jones II (31) 124 Craig Street 409 W Maple St PO Drawer 3850 Hazard, KY 41702 Nicholasville, KY 40356 Pikeville, KY 41502 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-436-4526 (LRC FAX) 502-564-2466 (Work) 606-432-5777 (Home FAX) 606-436-4526 (Home) 859-885-0606 (Work FAX) 606-432-5154 Robert Stivers II (25) (Home FAX) 859-885-0606 Alice Forgy Kerr (12) 207 Main St Jared Carpenter (34) 3274 Gondola Dr Manchester, KY 40962 PO Box 100 Lexington, KY 40513 (LRC) 502-564-8100 Berea, KY 40403 (LRC) 502-564-8100 (Home) 606-598-8575 (LRC) 502-564-8100 (Home) 859-223-3274 (Work) 606-598-2322 Danny Carroll (2) Christian McDaniel (23) (Work FAX) 606-598-2357 220 Cimarron Way PO Box 15231 Damon Thayer (17) Paducah, KY 42001 Latonia, KY 41015 105 Spyglass Dr (LRC) 502-564-8100 (LRC) 502-564-8100 Georgetown, KY 40324 (Home) 270-703-8025 Morgan McGarvey (19) (LRC) 502-564-8100 Julian M. Carroll (7) 2250 Winston Ave Reginald Thomas (13) 702 Capitol Ave Louisville, KY 40205 702 Capitol Ave Annex Room 254 (LRC) 502-564-8100 Annex Room 255 Frankfort, KY 40601 (Home) 502-589-2780 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 Perry B. Clark (37) Stephen Meredith (5) (LRC FAX) 502-564-0777 5716 New Cut Rd 702 Capitol Avenue Johnny Ray Turner (29) Louisville, KY 40214 Annex Room 229 849 Crestwood Dr (LRC) 502-564-8100 Frankfort, KY 40601 Prestonsburg, KY 41653 (Home) 502-366-1247 (LRC) 502-564-8100 (LRC) 502-564-8100 C.B. Embry Jr. (6) (Home) 270-287-9849 (Home) 606-889-6568 PO Box 1215 (Work) 270-230-3301 Robin L. Webb (18) Morgantown, KY 42261 Gerald A. Neal (33) 404 W Main St (LRC) 502-564-8100 462 S 4th St Grayson, KY 41143 (Home) 270-526-6237 Meidinger Twr, Ste. 1250 (LRC) 502-564-8100 Louisville, KY 40202 (Home) 606-474-5380 Rick Girdler (15) (LRC) 502-564-8100 Stephen West (27) 702 Capitol Ave (Home) 502-776-1222 202 Vimont Ln Annex Room 209 (Work) 502-584-8500 Paris, KY 40361 Frankfort, KY 40601 (Work FAX) 502-584-1119 (LRC) 502-564-8100 (LRC) 502-564-8100 Dennis Parrett (10) Whitney Westerfield (3) David P. Givens (9) 731 Thomas Rd 700 South Main Street PO Box 12 Elizabethtown, KY 42701 PO Box 1107 Greensburg, KY 42743 (LRC) 502-564-8100 Hopkinsville, KY 42241 (LRC) 502-564-8100 (Home) 270-765-4565 (LRC) 502-564-8100 Denise Harper Angel (35) Dorsey Ridley (4) (Work) 270-885-7671 2521 Ransdell Ave 4030 Hidden Creek Dr Mike Wilson (32) Louisville, KY 40204 Henderson, KY 42420 631 Washington Avenue (LRC) 502-564-8100 (LRC) 502-564-8100 Bowling Green, KY 42103 (Home) 502-452-9130 (Home) 270-826-5402 (LRC) 502-564-8100 (Work) 270-869-0505 Max Wise (16) Ernie Harris (26) Albert Robinson (21) 126 Cox Cove PO Box 1073 1249 S Main St Campbellsville, KY 42718 Crestwood, KY 40014 London, KY 40741 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-241-8307 (Home) 606-878-6877 * Members of the Kentucky General Assembly may also be contacted by calling 502-564-8100.

THE KENTUCKY GENERAL ASSEMBLY 5 2017 Kentucky General Assembly House Rocky Adkins (99) Will Coursey (6) Jeff Greer (27) PO Box 688 285 Oak Level Elva Rd PO Box 1007 Sandy Hook, KY 41171 Symsonia, KY 42082 Brandenburg, KY 40108 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 606-738-4242 (Home) 270-851-4433 (Home) 270-422-5100 (Work) 606-928-0407 Jim DeCesare (17) (Home FAX) 270-422-5100 (Work FAX) 606-929-5913 PO Box 122 David Hale (74) Lynn Bechler (4) Rockfield, KY 42274 11 Hales Ln 2359 Brown Mines Rd (LRC) 502-564-8100 Wellington, KY 40387 Marion, KY 42064 (Home) 270-792-5779 (LRC) 502-564-8100 (LRC) 502-564-8100 (Work) 270-792-5779 (Home) 606-768-3474 (Home) 270-988-4171 Jeffery Donohue (37) Chris Harris (93) Danny Bentley (98) PO Box 509 719 Forest Hills Rd 702 Capitol Avenue Fairdale, KY 40118 Forest Hills, KY 41527 Annex Room 329J (LRC) 502-564-8100 (LRC) 502-564-8100 Frankfort KY 40601 (Work) 502-439-6175 (Home) 606-237-0055 (LRC) 502-564-8100 Myron Dossett (9) Mark Hart (78) 491 E Nashville St 702 Capitol Avenue Robert Benvenuti III (88) Pembroke, KY 42266 Annex Room 316E 2384 Abbeywood Rd (LRC) 502-564-8100 Frankfort, KY 40601 Lexington, KY 40515 (Home) 270-475-9503 (LRC) 502-564-8100 (LRC) 502-564-8100 Jim DuPlessis (25) (Home) 859-654-4278 (Home) 859-421-1464 102 Utah Court Angie Hatton (94) Elizabethtown, KY 42701 20 Ohio St John Blanton (92) (LRC) 502-564-8100 Whitesburg, KY 41858 702 Capitol Avenue Daniel Elliott (54) (LRC) 502-564-8100 Annex Room 329H PO Box 2082 Richard Heath (2) Frankfort, KY 40601 Danville, KY 40423 438 Millers Chapel Rd (LRC) 502-564-8100 (LRC) 502-564-8100 Mayfield, KY 42066 (Home) 859-332-4204 (LRC) 502-564-8100 Kevin D. Bratcher (29) Joseph M. Fischer (68) (Home) 270-705-7539 10215 Landwood Dr 126 Dixie Place (Work) 270-247-2210 Louisville, KY 40291 Ft Thomas, KY 41075 (Work FAX) 270-247-2304 (LRC) 502-564-8100 (LRC) 502-564-8100 Toby Herald (91) (Home) 502-231-3311 (Home) 859-781-6965 702 Capitol Avenue (Work) 513-794-6442 Annex Room 329 B Larry Brown (95) Ken Fleming (48) Frankfort, KY 40601 702 Capitol Avenue 702 Capitol Avenue (LRC) 502-564-8100 Annex Room 329I Annex Room 351D Jeff Hoover (83) Frankfort, KY 40601 Frankfort, KY 40601 PO Box 985 (LRC) 502-564-8100 (LRC) 502-564-8100 Jamestown, KY 42629 (Work) 606-886-8132 (LRC) 502-564-8100 George Brown Jr. (77) Kelly Flood (75) (Home) 270-343-2264 424 E Fourth Street 121 Arcadia Park (Work) 270-343-5588 Lexington, KY 40508 Lexington, KY 40503 Dennis Horlander (40) (LRC) 502-564-8100 (LRC) 502-564-8100 1806 Farnsley Rd, Ste 6 (Home) 859-312-7513 (Home) 859-221-3107 Shively, KY 40216 (LRC) 502-564-8100 Tom Burch (30) Chris Fugate (84) (Home) 502-447-2498 4012 Lambert Ave 702 Capitol Avenue (Work) 502-447-9000 Louisville, KY 40218 Annex Room 329G Regina Huff (82) (LRC) 502-564-8100 Frankfort, KY 40601 179 Mountain St (Home) 502-454-4002 (LRC) 502-564-8100 Williamsburg, KY 40769- McKenzie Cantrell (38) (Home) 606-233-5660 (LRC) 502-564-8100 702 Capitol Avenue Al Gentry (46) (Home) 606-549-3439 Annex Room 424A 702 Capitol Avenue Kenny Imes (5) Frankfort, KY 40601 Annex Room 432D 4064 US 641 N (LRC) 502-564-8100 Frankfort, KY 40601 Murray, KY 42071 John Carney (51) (LRC) 502-564-8100 (LRC) 502-564-8100 PO Box 4064 Joni L. Jenkins (44) Campbellsville, KY 42719-4064 Jim Gooch Jr. (12) 2010 O’Brien Ct (LRC) 502-564-8100 714 N Broadway B2 Shively, KY 40216 (Home) 270-403-7980 Providence, KY 42450 (LRC) 502-564-8100 Matt Castlen (14) (LRC) 502-564-8100 (Home) 502-447-4324 7549 Iceland Road (Home) 270-667-7327 Dan Johnson (49) Maceo, KY 42355 (Work FAX) 270-667-5111 702 Capitol Avenue (LRC) 502-564-8100 Annex Room 413E Derrick Graham (57) Frankfort, KY 40601 Tim Couch (90) 702 Capitol Avenue (LRC) 502-564-8100 PO Box 710 Annex Room 429J (Home) 502-445-9355 Hyden, KY 41749 Frankfort, KY 40601 (Home FAX) 502-538-0877 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) (606) 672-8999 (Home) 502-223-1769 (Home FAX) 606-672-8998

6 2017 Interim LEGISLATIVE RECORD 2017 Kentucky General Assembly

DJ Johnson (13) Jerry T. Miller (36) Melinda Gibbons Prunty (15) 702 Capitol Ave PO Box 36 PO Box 411 Annex Room 352B Eastwood, KY 40018 Greenville, KY 42345 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 Robby Mills (11) James Kay (56) 702 Capitol Avenue Marie Rader (89) PO Box 1536 Annex Room 413C PO Box 323 Versailles, KY 40383 Frankfort, KY 40601 McKee, KY 40447 (LRC) 502-564-8100 (LRC/Home) 502-564-8100 (LRC) 502-564-8100 Dennis Keene (67) (Home) 606-287-7303 1040 Johns Hill Rd Phil Moffett (32) (Work) 606-287-3300 Wilder, KY 41076 812 Brookhill Rd (Work FAX) 606-287-3300 (LRC) 502-564-8100 Louisville, KY 40223 Rick Rand (47) (Home) 859-441-5894 (LRC) 502-564-8100 PO Box 273 Kim King (55) Tim Moore (18) Bedford, KY 40006 250 Bright Leaf Dr 417 Bates Rd (LRC) 502-564-8100 Harrodsburg, KY 40330 Elizabethtown, KY 42701 (Home) 502-255-3392 (LRC) 502-564-8100 (LRC) 502-564-8100 (Work) 502-255-3286 (Home) 859-734-2173 (Home) 270-769-5878 (Work FAX) 502-255-9911 Adam Koenig (69) Brandon Reed (24) 170 Herrington Ct #12 C. Wesley Morgan (81) 702 Capitol Avenue Erlanger, KY 41018 702 Capitol Avenue Annex Room 402 (LRC) 502-564-8100 Annex Room 405D Frankfort, KY 40601 (Home) 859-653-5312 Frankfort, KY 40601 (LRC) 502-564-8100 Stan Lee (45) (LRC) 502-564-8100 (Work) 270-358-0868 PO Box 2090 Kimberly Poore Moser (64) Lexington, KY 40588 702 Capitol Avenue Jody Richards (20) (LRC) 502-564-8100 Annex Room 351C 817 Culpeper St (Home) 859-252-2202 Frankfort, KY 40601 Bowling Green, KY 42103 (Home FAX) 859-259-2927 (LRC) 502-564-8100 (LRC) 502-564-8100 Brian Linder (61) (Home) 270-842-6731 16 Ridgeview Cir Rick G. Nelson (87) Steve Riggs (31) Dry Ridge, KY 41035 117 Gumwood Rd PO Box 24586 (LRC) 502-564-8100 Middlesboro, KY 40965 Louisville, KY 40224 Mary Lou Marzian (34) (LRC) 502-564-8100 (LRC) 502-564-8100 2007 Tyler Ln (Home) 606-248-8828 (LRC FAX) 502-564-6543 Louisville, KY 40205 (Home FAX) 606-248-8828 Steve Riley (23) (LRC) 502-564-8100 Jason Nemes (33) 702 Capitol Avenue (Home) 502-451-5032 702 Capitol Avenue Annex Room 352C Donna Mayfield (73) Annex Room 416C Frankfort, KY 40601 2059 Elkin Station Rd Frankfort, KY 40601 (LRC) 502-564-8100 Winchester, KY 40391 (LRC) 502-564-8100 (Home)270-646-6821 (LRC) 502-564-8100 David Osborne (59) Rob Rothenburger (58) (Home) 859-745-5941 PO Box 8 702 Capitol Avenue Chad McCoy (50) Prospect, KY 40059 Annex Room 351E 702 Capitol Avenue (LRC) 502-564-8100 Frankfort, KY 40601 Annex Room 416B (Home) 502-228-3201 (LRC) 502-564-8100 Frankfort, KY 40601 (Work) 502-645-2186 (Home) 502-633-5832 (LRC) 502-564-8100 Sannie Overly (72) David Meade (80) 340 Main St Bart Rowland (21) PO Box 121 Paris, KY 40361 PO Box 336 Stanford, KY 40484 (LRC) 502-564-8100 Tompkinsville, KY 42167 (LRC) 502-564-8100 (Home) 859-987-9879 (LRC) 502-564-8100 Reginald Meeks (42) PO Box 757 Darryl T. Owens (43) Steven Rudy (1) Louisville, KY 40201 1018 S 4th St, Ste 100 350 Peppers Mill Drive (LRC) 502-564-8100 Louisville, KY 40203 Paducah, KY 42001 (Work) 502-741-7464 (LRC) 502-564-8100 (Home) 270-744-8137 Michael Meredith (19) (Home) 502-584-6341 (LRC) 502-564-8100 PO Box 292 Ruth Ann Palumbo (76) Sal Santoro (60) Brownsville, KY 42210 10 Deepwood Dr 12094 Jockey Club Dr (LRC) 502-564-8100 Lexington, KY 40505 Union, KY 41091 (Work) 270-597-6049 (LRC) 502-564-8100 (LRC) 502-564-8100 Russ A. Meyer (39) (Home) 859-299-2597 (Home) 859-371-8840 106 Lone Oak Drive Jason Petrie (16) (Home FAX) 859-371-4060 Nicholasville, KY 40356 702 Capitol Avenue Dean Schamore (10) (LRC) 502-564-8100 Annex Room 351B 120 Ball Park Rd Suzanne Miles (7) Frankfort, KY 40601 Hardinsburg, KY 40143 PO Box 21592 (LRC) 502-564-8100 (LRC) 502-564-8100 Owensboro, KY 42304 (Home) 270-265-3163 (LRC) 502-564-8100 (Home FAX) 270-265-3164 Attica Scott (41) Phillip Pratt (62) 702 Capitol Avenue Charles Miller (28) 702 Capitol Avenue Annex Room 432C 3608 Gateview Cir Annex Room 316A Frankfort, KY 40601 Louisville, KY 40272 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 (LRC) 502-564-8100 (Home) 502-937-7788

THE KENTUCKY GENERAL ASSEMBLY 7 2017 Kentucky LRC General Assembly Publications 2018 Price List Jonathan Shell (71) Tommy Turner (85) PO Box 138 175 Clifty Grove Church Daily Record Pickup: $165 Lancaster, KY 40444 Somerset, KY 42501 (LRC) 502-564-8100 (LRC) 502-564-8100 Daily Record Mailed: $165 (plus Arnold Simpson (65) (Home) 606-274-5175 112 W 11th St postage) Covington, KY 41011 (LRC) 502-564-8100 Ken Upchurch (52) PO Box 969 Friday Record Mailed: $38.50 (plus (Home) 859-581-6521 Monticello, KY 42633 (Home FAX) 859-261-6582 postage) (LRC) 502-564-8100 (Work) 859-261-6577 (Home) 606-340-8490 John Sims Jr (70) Individual Record Pickup: $2.75 702 Capitol Avenue Gerald Watkins (3) 4317 Pines Rd Annex Room 429C Individual Record Mailed: $2.75 (plus Paducah, KY 42001 Frankfort, KY 40601 (LRC) 502-564-8100 (LRC) 502-564-8100 postage) (Home) 270-558-5139 (Home) 606-748-1839 Jim Wayne (35) 1280 Royal Ave Kevin Sinnette (100) Louisville, KY 40204 Bills PO Box 1358 (LRC) 502-564-8100 Ashland KY 41105 (Work) 502-303-3732 Complete Set of Bills and Resolutions (LRC) 502-564-8100 (Home) 606-324-5711 Russell Webber (26) PO Box 6605 (Pick-up): $630 (Home FAX) 606-329-1430 Shepherdsville, KY 40165 (LRC) 502-564-8100 Individual Bills Per Page: $.05 Diane St. Onge (63) (Home) 502-543-8209 523 Kluemper Court Amendments Per Page: $.05 Fort Wright KY 41011 Scott Wells (97) (LRC) 502-564-8100 702 Capitol Avenue Roll Call Votes: $.15 Per Page (Home) 859-341-1231 Annex Room 413D Jim Stewart III (86) Frankfort, KY 40601 545 KY 223 (LRC) 502-564-8100 Flat Lick, KY 40935 Publications (LRC) 502-564-8100 1-10 copies: Free to general public; (Home) 606-542-5210 Susan Westrom (79) PO Box 22778 Wilson Stone (22) Lexington, KY 40522 larger numbers of free copies available 1481 Jefferson School Road (LRC) 502-564-8100 Scottsville, KY 42164 (Copies (Work) 859-266-7581 to schools and state agencies (LRC) 502-564-8100 (Home) 270-622-5054 Addia Wuchner (66) over preapproved limits require approval PO Box 911 Burlington, KY 41005 of LRC Director’s Office) Walker Thomas (8) (LRC) 502-564-8100 702 Capitol Avenue (Work) 859-525-6698 Annex Room 413F Frankfort, KY 40601 Jill York (96) PO Box 591 (LRC) 502-564-8100 Administrative Regulations (2017) Grayson, KY 41143 (Home) 270-889-8091 (LRC) 502-564-8100 (Home FAX) 270-885-5335 Bound Volumes: $253.12 (Work) 606-474-7263 (Work FAX) 606-474-7638 Administrative Register: $120.00 James Tipton (53) 8151 Little Mount Rd Volumes and Register: $373.12 Taylorsville, KY 40071 (LRC) 502-564-8100 * Members of the Kentucky General Assembly may also be contacted by calling 502-564-8100. Acts of the General Assembly Regular Sessions: Priced after printing Special Sessions: Priced after printing

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8 2017 Interim LEGISLATIVE RECORD Committee Meetings

INTERIM JOINT COMMITTEE reasonable energy prices, and continue to Index ON NATURAL RESOURCES AND diversify energy resources. CEA was founded in 2006 and has over 250 ENERGY Minutes of the 6th Meeting member companies and over 400,000 individual A consumer members. Kentucky has close to Administrative Regulation Review of the 2017 Interim Subcommittee, 37 November 2, 2017 5,500 individuals and partner organizations. Agriculture, 27 Call to Order and Roll Call CEA strongly advocates for and supports solar Appropriations and Revenue, 31 The 6th meeting of the Interim Joint expansion. Mr. Ross testified that the United Committee on Natural Resources and Energy States is in the early stages of an energy revolution B that can reshape the nation’s economic landscape Banking and Insurance, 29 was held on Thursday, November 2, 2017, at 1:00 PM, in Room 129 of the Capitol Annex. Senator with proper regulatory and public policy C Jared Carpenter, Chair, called the meeting to decisions. Mr. Ross testified that solar is vital to Capital Projects and Bond Oversight, 45 order, and the secretary called the roll. the country’s energy future and a significant part Present were: of our diverse energy sources. Solar will provide E long-term health, environmental, and cost- Education, 15 Members: Senator Jared Carpenter, Co- Education Assessment and Accountability Review Chair; Representative Jim Gooch Jr., Co-Chair; saving benefits for families and businesses. Subcommittee, 51 Senators C.B. Embry Jr., Ernie Harris, John Mr. Ross testified that solar energy continues Schickel, Brandon Smith, Johnny Ray Turner, to set records every year due to the 70 percent G Robin L. Webb, and Whitney Westerfield; cost decrease since 2010 and the incentive Government Contract Review Committee, 34 Representatives John Blanton, Larry Brown, programs provided by the government and H McKenzie Cantrell, Tim Couch, Jeffery Donohue, electric utilities. Many of the incentive programs Health and Welfare and Family Services, 11 Jim DuPlessis, Daniel Elliott, Kelly Flood, Chris were designed when there were not many users, Fugate, Dennis Keene, Reginald Meeks, Suzanne so policymakers created options to encourage the L Miles, Marie Rader, and Jim Stewart III. use of solar. These programs grew in popularity. Legislative Research Commission, 18 Over time, the structure used to incentivize Licensing, Occupations, and Administrative Reg- Guests: Brydon Ross, Vice President of State ulations, 19 Affairs, Consumer Energy Alliance (CEA); Allen consumers has resulted in losses due to covering Local Government, 32 Luttrell, Commissioner of the Department for the costs associated with providing electricity 24 Natural Resources; Secretary Charles Snavely, hours a day, seven days a week. These costs are M Energy and Environment Cabinet, Chairman of shifted to those who do not participate in the Medicaid Oversight and Advisory Committee, 47 the Reclamation Guaranty Fund Commission; incentive programs. N David Carroll, General Manager, Paducah Power In 2016, 47 states and the District of Natural Resources and Energy, 9 System (PPS), General Manager, Kentucky Columbia made legislative or regulatory updates Municipal Power Agency (KMPA); Josh to solar policy regarding net metering, rate P Callihan, Vice-Chair of Kentucky Municipal design, and solar ownership. Net metering is a 2018 Prefiled Bills, 56 billing mechanism that compensates qualifying Program Review and Investigations Committee, 52 Energy Agency (KyMEA), President, Kentucky Public Pension Oversight Board, 48 Municipal Utilities Association and General businesses and customers for any excess private Manager, Barbourville Utility Commission; electricity they generate. It creates private credits S Annette DuPont-Ewing, Executive Director, for participants that are valued at the full retail State Government, 21 Kentucky Municipal Utilities Association; and rate for electricity. This includes not just the value of the generated power, but also the grid T David Samford, Attorney at Law, Goss Samford, Transportation, 24 PLLC. infrastructure. Private solar customers would LRC Staff: Stefan Kasacavage, Janine Coy- not have the ability to net meter without the Geeslin, Tanya Monsanto, and Rachel Hartley. public grid. Overview of Solar Policy and Infrastructure Mr. Ross testified that net metering Challenges in the States allows private solar customers to avoid paying Brydon Ross stated CEA is a consumer infrastructure costs. These costs are factored advocacy organization that brings together into a monthly power bill. When the costs are households and small businesses that use avoided, it creates a lapse in grid maintenance energy along with other industrial users to funding, or it requires that the loss of funds be engage in a meaningful dialogue regarding collected elsewhere. America’s energy future. The mission of CEA is In 2015, CEA launched its Solar Energy to improve consumer understanding of energy Future Campaign to help expand and improve security, including the need to reduce reliance education on the importance of growing solar on imported oil and natural gas, maintain responsibly. The focus of the campaign is to raise

THE KENTUCKY GENERAL ASSEMBLY 9 awareness on the value solar provides and to been approximately one forfeiture a month since residential rates by 16 percent and has reduced ensure policies are pro-consumer. May 2016. Most of the forfeitures are regarding commercial/industrial rates by 20-25 percent. In 2016, CEA conducted a comprehensive bonds that were calculated utilizing the former The reliability rate of PPS is 99.99 percent. There analysis to evaluate solar nationally. The protocol of OSM. Mr. Luttrell stated that there have been zero lost time accidents in the last 5.5 conclusions were that existing incentives for have not been any forfeitures under the current years. KMPA was formed in 2005 by an inter- residential and third party solar were significant; protocol. local agreement between PPS and Princeton private solar credit incentives shifted costs The Highwall Reduction Initiative was Electric Plant Board to finance ownership in onto less affluent consumers; and incentives implemented to monitor and track open highwall the Prairie State Energy Campus (PSEC). The for privately owned solar varied widely among with a focus on idle operations. Almost 200,000 agency is authorized to coordinate planning, states. linear feet of idle highwall in inactive mines has construction, and operation of joint electric been eliminated since March 2016. Mr. Luttrell power supply projects. In Kentucky, the typical private solar stated that bond forfeiture cost estimates have The Prairie State Energy Campus serves 2.5 customer with a 30 kilowatt system receives been significantly reduced to reflect a more million families and businesses in 180 midwestern over $1,660 per year in excess credit generation. accurate reclamation expenditure. communities. There are nine owners who are If the one percent cap were met by private In response to Senator Webb, Mr. Luttrell all public power entities. Six of the owners are solar program participants, the fiscal impact to stated Kentucky uses a per-acreage bonding joint action agencies. The campus project cost $5 consumers without private solar could reach $5 calculation. The previous calculation was $2,500 billion with $1 billion in environmental emission million per year to help pay the fixed costs of per acre and has been increased to a minimum controls. maintaining the grid. of $4,000 per acre with consideration of site KyMEA members are seeking joint action In response to Representative Flood, Mr. factors. The law allowed incremental bonding, legislation. There are 10 members that provide Ross stated the members who do not participate so an applicant could bond one or two acres cost effective, reliable and environmentally or cannot participate in solar should not have separately from other tracts of land. The responsible power. PPS has a 10 year market to shoulder the cost of the infrastructure for program was designed to allow landowners to based contract with KyMEA. solar participants. A compensation rate that sell the coal they found during the construction American Municipal Power (AMP) provides reflects market realities is needed. The incentive of their residence. Mr. Luttrell explained that generation, transmission, and distribution of program should allow people to be grandfathered this program was abused by coal operators. power for its 135 members in nine states. It is in who have already invested in solar, but When a forfeiture occurred, it was difficult for the largest municipal joint action agency in the incentive programs going forward should have a contractor to do work on such a small scale. country. PPS has a hydropower contract with a compensation rate equal to wholesale power. One of the new protocols was to add a $75,000 AMP and has a seat on the AMP board. AMP Status of the Kentucky Reclamation minimum per applicant per increment to cover assisted in securing a two-year capacity contract Guaranty Fund mobilization and demobilization. for PPS with NextEra Energy, which will reduce Allen Luttrell stated the Surface Mining In response to Representative Miles, Mr. rates by $3 million. Control and Reclamation Act (SMCRA) was Luttrell stated there is a permitting aspect within The benefit of joint action agencies is power passed in 1977. In 1982, Kentucky received SMCRA. To obtain a permit you must first supply planning through power contracts primacy which allows the state to regulate the describe the land prior to mining and how the with other joint action agencies. Joint action environmental and public protection aspects land will be utilized post mining. If the applicant agencies do not require generation to be owned. of SMCRA. In 2011, the Office of Surface wants to have a different post mining land use, Another benefit of joint action is the ability to Mining (OSM) declared the performance bond then it has to be of an equal or higher use. Some band together with other municipalities to have program inadequate, and in 2013, the Kentucky of the land uses included in the regulations a voice on all regulatory issues and legislative Reclamation Guaranty Fund (KRGF) was formed are residential, forest, recreation, and fish and processes for generation, transmission, and the to partially address bonding inadequacies. Since wildlife habitat. There is also a public comment environment. April 2014, the KRGF balance has increased by component. When the application is complete, it In response to Representative Gooch, Mr. approximately $20 million dollars. is a requirement to have four weeks of advertising Carroll stated there is an opportunity for net In response to the OSM bonding issues, plus a 30 day comment period. There is also metering because of the economies of scale for Kentucky increased performance bond protocols public comment if the post mining land usage joint action agencies. in the permitting process, created KRGF, changes throughout the mining process. In response to Senator Webb, Mr. Carroll initiated reclamation liability reduction efforts, In response to Representative Gooch, Mr. stated there are no current statutes that allow for and revised bond forfeiture reclamation cost Luttrell said the state program that granted two the formation of a joint action agency. Annette estimate procedures. acre permits was struck down by OSM and the DuPont-Ewing stated the 10 cities that joined The revenue sources for KRGF include permits are no longer issued. The program was together to form KyMEA was organized under membership fees, tonnage fees, non-production intended for private construction. four different KRS statutes. The joint action and dormant fees, late payments, penalties and In response to Senator Smith, Secretary legislation would make a streamlined approach, fines from the Division of Mine Reclamation Snavely stated the reason the two acre permits so all are operating under one set of rules. The and Enforcement violations, interest earned, and were struck down was due to abuse of the Natural Gas Acquisition Act will be used as a forfeitures. program, and he hopes there can be a common model for this legislation. Ms. DuPont-Ewing The beginning balance of KRGF was sense solution. said the opposition to joint action legislation $23.5 million, and the current balance is $43.8 includes investor owned utilities and electric million. The fund balance is increasing while The Role of Joint Action Agencies in cooperatives. The opposition has asked that joint the quarterly fee collection is decreasing. Mr. Paducah Power System’s Success action agency legislation include oversight by the Luttrell explained that this change in balance David Carroll stated within the last four Public Service Commission (PSC). Josh Callihan and fee collection is due to forfeitures. There has years Paducah Power System (PPS) has reduced stated that city agencies are subject to open

10 2017 Interim LEGISLATIVE RECORD records and meetings and bound by the Model by KyMEA regarding ownership of assets. Gynecology, Chief, Division of Adolescent Procurement Code. In response to Representative Miles, Mr. Medicine, University of Kentucky; Dusty Phelps, Regulated Utility Industry Principles on Samford stated he is not with the PSC. The Licensed Psychological Practitioner, District Municipal Joint Action Legislation concern is power contracts should not turn into PBIS Coordinator, Pulaski County Schools; David Samford stated he was speaking on insurance policies where the only people who are Lori Price, Licensed Psychological Practitioner, behalf of investor owned utilities and cooperatives protected are the investors and do not take power Student/Family Support Services Coordinator, that have significant concerns with the proposed from the power plant. The municipal customers Advancing Wellness and Resilience in Education joint action legislation. Their main concern would be responsible for those obligations. Ms. (AWARE) Grant, Pulaski County Schools; Allen is the level of accountability and oversight of DuPont-Ewing stated each municipal utility Brenzel, MD, Clinical Director, Department joint action agencies. Investor owned utilities makes a decision to participate in a project or buy for Behavioral Health, Developmental and are controlled by the shareholders, and electric wholesale power from the joint action agency. Intellectual Disabilities, Cabinet for Health and cooperatives are controlled by their customers. There are no plans for the next 15 years to build Family Services; Joyce Robl, EdD, MS, CGC, Creating a joint action agency would establish generation or transmission. All of the power Maternal and Child Health Data and Evaluation a super board of multiple municipal agencies, contracts have an opportunity for renewal. Officer, Division for Maternal and Child Health, and voters would not have the same level of Josh Callihan stated joint action is a proven Department for Public Health, Cabinet for oversight that they would have if it were their model in states around Kentucky, and there are Health and Family Services; Greg Mitchell, sole municipal utility. safeguards in place to protect rate payers. The Regional Business Director, and Greg Lamping, Previously proposed legislation was very rate payers are the shareholders who have the Field Reimbursement Manager, Mitsubishi broad, and municipal customers in Kentucky opportunity to vote and attend open meetings. Tanabe Pharma America; Bob Babbage, Babbage would potentially be saddled with the obligations Mr. Samford stated municipal customers do not Cofounder; Michele Blevins M.S., LMFT, of the joint action agency without any recourse. own PSEC and are unable to buy back shares. Assistant Director, Division of Behavioral Mr. Samford said he was not opposed to joint The next meeting of the Interim Joint Health, Cabinet for Health and Family Services; action agencies, but he believes there should be a Committee on Natural Resources and Energy Elizabeth M. Caywood, MSW/CSW, Executive prudent level of oversight. will be on December 7, 2017. Documents Advisor, Department for Community Based In response to Representative Gooch, distributed during the meeting are available in Services, Cabinet for Health and Family Mr. Samford stated cost overruns for investor the LRC Library. Services; Nathan Goldman, Kentucky Board owned utilities do occur in other contexts in the There being no further business, the meeting of Nursing; Louis Kelly, Kentucky Board of industry. If a utility is regulated by the PSC, the was adjourned. Physical Therapy; Koleen Slusher, Phyllis decisions are made by the objective regulator. Millspaugh, Branch Manager, Behavior Health In the context of an investor owned utility or a INTERIM JOINT COMMITTEE Prevention and Promotion Branch, Department cooperative, the PSC has the ability to not allow ON HEALTH AND WELFARE AND for Behavioral Health, Developmental and the utility to pass on costs to the rate payers. Intellectual Disability, Cabinet for Health and FAMILY SERVICES With a joint action agency, the contracts are Minutes of the Sixth Meeting Family Services; and Eric Clark, Chief of Staff, guaranteed that the municipal customers will of the 2017 Interim Cabinet for Health and Family Services. pay full price for the power. Mr. Samford said November 15, 2017 LRC Staff: DeeAnn Wenk, Chris Joffrion, that he was not suggesting that joint action Call to Order and Roll Call Ben Payne, Jonathan Scott, Heather Scott, and agencies should be fully regulated. However, The sixth meeting of the Interim Joint Gina Rigsby. they should go through a similar process to what Committee on Health and Welfare and Family Approval of the Minutes from the October existing utilities go through. A regulated utility Services was held on Wednesday, November 15, 11, 2017 Meeting must apply for a certificate of public convenience 2017, at 10:00 a.m., in Room 129 of the Capitol A motion to approve the minutes of the and necessity to build a power plant in Kentucky. Annex. Representative Addia Wuchner, Co- October 11, 2017 meeting was made by Senator The applicant must show there is a need for the Chair, called the meeting to order at 10:04 a.m., Alvarado, seconded by Senator Raque Adams, power and the new generation will not result and the secretary called the roll. and approved by voice vote. in wasteful duplication. Prairie State Energy Present were: Services for the Visually Impaired Campus (PSEC) is the model of why that type of Members: Senator Julie Raque Adams, Co- Preschool Services (VIPS) analysis is needed because a utility invested $461 Chair; Representative Addia Wuchner, Co- Addy Clarkson, VIPS Graduate, sang the million in a power plant that greatly exceeded the Chair; Senators Ralph Alvarado, Danny Carroll, National Anthem. load capacity needed to serve consumers. The Julian M. Carroll, David P. Givens, Denise Harper Diane Nelson, Executive Director, Visually problem is what to do with the excess capacity. Angel, Alice Forgy Kerr, Stephen Meredith, Impaired Preschool Services, stated that VIPS In response to Representative Gooch, Mr. and Reginald Thomas; Representatives Danny mission is to empower families by providing Carroll stated the boilers used at PSEC were not Bentley, Robert Benvenuti III, George Brown Jr, educational excellence to young children with initially designed for that project. The boilers Chad McCoy, Russ A. Meyer, Melinda Gibbons blindness and low vision in order to build a were designed for a failed project in Texas. Mr. Prunty, Steve Riley, and Russell Webber. strong foundation for reaching their highest Carroll stated that the proposed joint action Guest Legislators: Representative Donna potential. VIPS was founded in 1985 because legislation has specific guidelines for PSC to Mayfield. there were no services available to help a parent study and prevent capacity issues. Guests: Diane Nelson, Executive Director, whose child was diagnosed with blindness. In response to Senator Embry, Mr. Carroll Visually Impaired Preschool Services; Kathy Ninety percent of what a child learns is through stated that in order to address rate issues in Mullen, Director of Education, Visually vision and 85 percent of brain development Paducah, a joint action agency needs to have Impaired Preschool Services; Brittany and occurs before 6 years of age. Kentucky is only enough participants to hire qualified staff, and Addy Clarkson, VIPS Parent and child; Hatim one of five states with a program for babies of PSC should issue an independent report paid for Omar, MD, Professor, Pediatrics, Obstetrics/ blindness. VIPS is a nationally accredited and THE KENTUCKY GENERAL ASSEMBLY 11 a 5-star rated program. VIPS services include pneumonia and influenza, and chronic lung individuals who interact with youth through direct services, family support, play and learn, disease combined. Suicide prevention spending programs at the community level, parents, law and center-based programs for preschool, pre-K, needs to be increased nationwide. A recent trend enforcement, faith-based leaders, and other Two-Day-2’s, Little Learners, and summer shows that girls are turning to more lethal means adults in Mental Health First Aid (MHFA) or enrichment. VIPS teachers travel approximately of suicide. If this trend continues, the number Youth Mental Health First Aide (YMHFA). The 118,000 miles per year to see children and of completed suicides will rise at an even higher goal is to expand the MHFA and YMHFA to families. VIPS serves nearly 550 children in pace. More 10 to 14 year olds are dying from achieve a wider community impact by training all 120 counties in Kentucky and Indiana. The suicide than anything else. One-third of suicide a more diverse group of adults who will reach a opioid crisis has increased new referrals. The does not have to do with mental health issues. broader spectrum of adolescents or transition- Department of Education gives $100,000 to Do not wait until a child attempts suicide for aged youth within the community. VIPS. The Kentucky School for the Blind does the first time to intervene. Know the signs of Mental illness is common during adolescence. not serve children from birth to three years of suicide. Someone with a bipolar disorder has an Adolescence and young adulthood are critical age, and refer these children to VIPS. States are increased risk of suicide. Major depression is not periods for identification and intervention of looking for leadership from VIPS to help develop the leading cause of suicide. mental illness. Early identification and treatment the same services for children. VIPS’ strategic Having a safe place to interact with a caring engagement is vital for improved quality of life. plan is to serve 1,000 children by 2020, and the adult and having something to do will help teens Students with mental illness need improved state’s responsibility to support the solution in have a better chance of not committing suicide. supports to succeed in school, career, college, the Commonwealth to help serve these children. Youth need human contact to show that someone and life. Project AWARE’s goal is to improve Kathy Mullen, Director of Education, cares. An effective program of prevention must mental health literacy among youth-serving Visually Impaired Preschool Services, and include the three main areas of influence in a adults and to build cross-system capacity for Brittany Clarkson, Family Service Coordinator young person’s life: youth, parents, educators. It comprehensive mental health approaches in and VIPS Parent, were present to answer any is important to teach youth, parents, teachers, states and communities. It is important to learn questions. and counselors how to identify the signs of to recognize students who are at risk of suicide Senator Raque Adams stated that it is suicide and it is okay to ask for someone to ask quicker. Other goals are to improve school safety, important to note that children are served in all for help when feeling suicidal. In October 2000, improve school climate, increase awareness of 120 Kentucky counties. the University of Kentucky started a Stop Youth mental health issues, and connect children and In response to questions by Senator Suicide Campaign, and it has helped 20,000 youth with behavioral health issues with needed Meredith, Ms. Nelson stated that besides the children at risk of committing suicide. The services. $100,000 state funds, VIPS receives funding from program costs $50,000 per year and has never Dusty Phelps, Licensed Psychological grants, gifts, fundraisers, the First Steps program, received state funds. The Youth Risk Behavior Practitioner, District Positive Behavioral some school systems that bus children to the day Surveillance System (YRBSS) monitors six types Intervention and Supports (PBIS) Coordinator, program, and tuition from the Jefferson County of health risk behaviors that contribute to the Pulaski County Schools, stated that school- Public Schools for the 18 students enrolled in the leading causes of death, disability, and social based mental health services are integrated into program. problems among youth and adults. It includes a supports in the educational system. Mental health In response to a question by Representative national school-based survey conducted by CDC professionals are made available to students who Wuchner, Ms. Nelson stated that VIPS receives every two years of 9th through 12th grade students need services. Supports can be offered so there is $100,000 state funds to serve Kentucky students, in public and private schools in the United States. minimal interruption to the student’s educational and Indiana contributes $121,000 for its students. The survey showed that 15 Kentucky students process while providing them with the valuable Adolescent Suicide Prevention seriously considered attempting suicide, 13 made and needed services onsite. Pulaski County Hatim Omar, MD, Professor, Pediatrics, a plan about how to attempt suicide, 8 attempted wanted to create a model that could be replicated Obstetrics/Gynecology, Chief, Division of suicide, and 3 attempted suicide that resulted across Kentucky. Teachers and all staff are taught Adolescent Medicine, University of Kentucky, in injury, poisoning, or overdose that had to be how to recognize warning signs of mental health stated that it was thought that brain development treated by a doctor. Kentucky’s statistics were challenges and how to interact with students was complete by adolescence, but it is now lower compared to national data. who have experienced trauma in their lives. The known maturation is not complete until about Lori Price, Licensed Psychological University of Kentucky’s Center on Trauma and 24 years of age. Approximately 95 percent of Practitioner, Student/Family Support Services Children has provided training to all teachers youth will die by something they did, and at least Coordinator, Advancing Wellness and Resilience and administrators on how to recognize signs half of the deaths are preventable. On an average in Education (AWARE) Grant, Pulaski County of trauma, and how to screen for and respond day 127 people die from suicide and another Schools, stated that three years ago Pulaski to trauma in classrooms. Partnerships have been 2,000 attempt suicide. Suicide took the lives of County was awarded a “Now is the Time” formed with community agencies to provide almost 42,000 Americans in 2016. There were Project AWARE-Community Grant by the onsite supports. All schools know the process 1.7 times as many suicides as homicides in 2000, Substance Abuse and Mental Health Services and are monitored in order to have a way to and approximately 50 percent of suicides in the Administration (SAMHSA), Center for Mental measure a student’s progress. Students are taught United States occur in people who are receiving Health Services. Pulaski County was awarded to become active participants in their mental psychiatric treatment according to information the grant because there have been school-based health care during and after graduation from provided from the Suicide Awareness Voices of mental health services in the school districts high school. Education, the Centers for Disease Control and since 2001, there are 16 outpatient facilities Allen Brenzel, MD, Clinical Director, Prevention (CDC), and the Journal of American onsite that provide services to students, and the Department for Behavioral Health, Medical Association (JAMA). More teenagers school district has provided positive behavioral Developmental and Intellectual Disabilities, and young adults die from suicide than from interventions and supports since 2007. The Cabinet for Health and Family Services, stated cancer, heart disease, AIDS, birth defects, stroke, grant is used to support the training of teachers, that the CDC WONDER Compressed Mortality

12 2017 Interim LEGISLATIVE RECORD File, 1999-2015 shows suicide deaths for youth who completed the survey, half of the students Adams, Dr. Brenzel stated that in 2014 there was ages 10 to 19 years of age have trended upward who had a plan to attempt suicide might a significant increase in suicide attempts and despite increased dollars spent for prevention. follow through with the plan. Students need deaths. There needs to be better reporting to It could also be attributed to more accurate to be identified earlier to prevent them from get more accurate data. The Community Mental accounting of suicide deaths across the county progressing from thinking about committing Health and Substance Abuse Prevention and as a result of prevention and data surveillance suicide to actually following through with the Treatment Block Grant funds are used for all types efforts. The CDC WONDER Compressed plan. of prevention not just suicide prevention. Mr. Mortality File, 2000-2016 showed that Kentucky In response to a question by Senator Price stated that the Pulaski Suicide Prevention suicide deaths increased significantly in 2015. Thomas, Dr. Brenzel stated that 15.8 percent of alliance has helped increase awareness by helping Between 2014 and 2015, suicide rates doubled 10th graders in the 2016 survey who responded people know about available services. in the 15 to 19 year old age group. The 10 to 14 in the Bluegrass Region seriously considered Representative Benvenuti also expressed year old suicide deaths have remained relatively attempting suicide and 8 percent followed concern about society’s reliance on technology. stable since 2012. The Kentucky Incentives for through with the plan. There is a difference There is a real need to focus on realty verses Prevention (KIP) survey shows the percentage between thinking about suicide and actually virtual reality where everyone’s life seems perfect. of school districts that responded to the survey committing suicide. Suicides are increasing not decreasing. Ms. Price shows that the Communicare and Pennyrole In response to a question by Senator stated that there is a dark group on social media regions had an increase in rates for 10th graders Meredith, Dr. Brenzel stated that participation that feeds on depressed youth. The gaming world that had seriously considered attempting suicide in a religion decrease the risk of suicide. Phyllis isolates and cuts individuals off from the world. within the past year. One reason could be high Millspaugh, Branch Manager, Behavior Health There are allot of pressures on youth today. military presence that add additional stressors. Prevention and Promotion Branch, Department In response to a question by Senator Thomas, Compared to the Kentucky Youth Risk Behavior for Behavioral Health, Developmental and Ms. Price stated that all the schools in Pulaski Survey (YRBS), the KIP survey trends are stable Intellectual Disability, Cabinet for Health and County have nurses who are trained to recognize and lower. This could be attributed to fewer urban Family Services, stated that risk factors that signs of trauma or someone who is at risk of districts participating in the survey. Rates from might indicate academic issues would cause suicide. The nurses collaborate with the Family the KIP survey are consistent with the YRBS that disparity, but not as much around race or ethnic Resource and Youth Services Center (FRYSC) indicate that suicide attempts of 10th graders were demographics. It is about behaviors that are or Coordinator who must have a bachelor’s degree higher in the western and northeastern areas of are not demonstrated that push a person toward in human services. Kentucky. Of the districts that participated in suicidality. There have been increased risk In response to a comment by Senator the KIP survey, 6,952 students reported they factors across all populations. Mr. Phelps stated Alvarado, Dr. Brenzel stated that the risk of attempted suicide at least once in the past year. that suicide does not discriminate across socio- hopelessness, which including during economic There is one Regional Prevention Center economic or racial lines. Ms. Price stated that downturns, is a major risk factor. A rise in suicide (RPC) in each of the Community Mental Health suicide can happen to anyone. rates for adolescents is a universal problem. Mr. Centers (CMHCs). Each of the 14 RPCs receive In response to questions by Senator Julian Phelps stated that other countries have some $331,873 state funds that are used to leverage Carroll, Dr. Brenzel stated that the challenge is to of the same suicide risks as the United States other available federal funds. The Unified determine if it is an intentional or unintentional because of some of the same risk factors. Human Community Mental Health and Substance Abuse death, so intentional and unintentional deaths connection and hope are needed to help reduce Prevention and Treatment Block Grant requires caused by a drug overdose are lumped together the risks. $3,642,982 to be used for prevention. State fund when compiling data. There is a need to take a Rising Rates of Sudden Infant Death dollars were used to leverage federal funds to closer look at unintentional deaths. Syndrome (SIDS) receive $735,018 annually until FFY 2019 for In response to questions by Senator Givens, Joyce Robl, EdD, MS, CGC, Maternal and the Partnership for Success grant issued by the Mr. Phelps stated that exposure to trauma and Child Health Data and Evaluation Officer, Substance Abuse and Mental Health Services high levels of stress and cyberbullying increase Division of Maternal and Child Health, Administration (SAMHSA). The Kentucky Zero the risk of suicide. Students who do not know Department for Public Health, Cabinet for Health Suicide Initiative aims to create suicide safer how to report bullying/harassment have a 36 and Family Services, stated that for every 1,000 communities and suicide safer care services for percent higher likelihood to commit suicide. babies born in Kentucky in 2015, 379 babies died youth and young adults 10 to 24 year of age who Students who feel their school’s method of before their first birthday. Kentucky consistently are at higher risk of suicide. It is a comprehensive reporting bullying/harassment is not effective has a higher infant mortality rate compared to system of care approach, integrating best have a 66 percent higher likelihood of attempting the United States rates. Data from the Kentucky practices in suicide care and prevention and suicide. Senator Givens expressed concerned Vital Statistics, Birth Certificate Files from 2011 works to bridge clinical competency in suicide that technology helps someone have the to 2015 and Death Certificate Files for the same care and increased suicide prevention awareness. ability to create an alternate reality that shows period indicate that white infant mortality rate Kentucky receives $736,000 annually until FFY everything in life is perfect, but in reality, it is per 1,000 births went from 6.0 in 2011 to 6.6 2019 for the Sources of Strength curriculum not. Mr. Phelps stated that there needs to be in 2015. African American infant mortality aimed at reducing suicide by promoting more education about the effects of social media. rates for the same timeframe went from 13.3 to connections between peers and caring adult. Technology is hurting positive interactions 10.8. Sudden Unexpected Infant Deaths (SUID) In response to a question by Senator Givens, between young persons and adults. Screen time rates only include deaths to infants one year of Dr. Omar stated that the percentage of suicide is a deterrent to health while human interactions age or less where the code is SIDS, accidental attempt hospitalization rate was based on every promote health. Dr. Brenzel stated that teens are suffocation in bed, undetermined, other specified 100,000 Kentucky 10 to 24 year olds. vulnerable to isolation and end up only having threats to breathing, or unspecified threat to In response to a question by Representative virtual connections. breathing. Prematurity related deaths are an Wuchner, Dr. Brenzel stated that of the students In response to a question by Senator Raque infant born before 37 weeks gestation. Kentucky THE KENTUCKY GENERAL ASSEMBLY 13 infant deaths are caused by prematurity related and babies, and post discharge so there can be a The Japanese Ministry of Health decided that for conditions, SUID, birth defects, perinatal safe environment for the child while the mother ethical reasons that the trial was designed in such conditions, other medical conditions, injury, and continues treatment. Representative Benvenuti a way that placebo patients should be allowed to unknown reasons. stated that children need to be protected and not convert to the active drug after six months. Approximately 4,000 infants die suddenly sent into an unsafe environment after birth. In response to questions by Representative and unexpectedly each year in the United States. In response to questions by Representative Bentley, Mr. Mitchell stated that Mitsubishi In 2016, 103 Kentucky infants died suddenly Gibbons Prunty, Dr. Bada stated that there are Tanabe Pharma Corporation is the second and unexpectedly. A multidisciplinary local no uniform practices or policies that would oldest pharmaceutical company that originated team or the state SUID Case Registry Review automatically open a case with DCBS if a mother in 1678. In the clinical trials for Radicava, the Team reviewed 95 of the 103 cases. SUID deaths has a positive drug screen. Most physicians primary measure of efficacy was preservation include sudden infant death syndrome (SIDS), will contact DCBS if they have a child whose or reduction in the loss of physical function, so undetermined causes, or accidental suffocation mother is using drugs during pregnancy or in there were no mortality studies. Because of the and strangulation in bed. Ninety-four percent a treatment program to ensure the child goes nature of the disease, people can live with the of infants have one or more sleep-related risk home to a safe environment. Dr. Robl stated that disease different amounts of time. factors: 1) surface not designed for infant sleep; the department does not support the baby boxes Diabetes Prevention and Treatment 2) sharing sleep surface; 3) sleep position; and/or that are distributed by pregnant crisis centers Representative Donna Mayfield stated that 4) soft beddings and hazards. In 2015, Kentucky because of safety issues with the box. For a little diabetes is a group of diseases characterized by received a Sudden Unexpected Infant Death bit more money, someone can get a pack n’ play high blood glucose levels that result from defects Case Registry grant from the CDC. The goals through the Cribs for Kids program. in the body’s ability to produce and/or use from of the grant are to identify all Kentucky resident In response to questions by Senator Alvarado, insulin. The high levels of blood glucose can unexplained infant death cases, review all Dr. Robl stated that in the past five years, four cause damage to various organs, including the identified cases, collect consistent data elements to six months is the typical age of unexpected eyes, kidneys, nerves, heart, and blood vessels. on every case, and analyze, disseminate, and infant deaths, but in 2016, the age dropped. The Weight, activity level, eating habits, smoking, utilize SUID data to inform data-driven policy department has not specifically looked at home stress, and/or high blood pressure can be development and procedural best practices. births, but the vast majority of cases recorded are changed to modify the risk of getting diabetes. In October 2015, the Kentucky Department in birthing hospitals. Senator Alvarado stated Things that cannot be changed are age, race, for Public Health (DPH) launched the Safe that the department should begin to look at this family history, or gestational diabetes. Type 2 Sleep Campaign. It is a statewide effort to raise data, because there is a concern there is a higher diabetes is usually diagnosed in adults over 40 awareness of the importance of Safe Sleep for risk of death in home births. years of age, but is becoming more common in babies and lower the number of SIDS-related Advances in the Treatment of Amyotrophic younger adults and children. According to CDC, deaths in Kentucky. The purpose of the Safe Sleep Lateral Sclerosis (ALS) or Lou Gehrig’s Disease the 12 percent of adults in Kentucky had been Kentucky campaign is to prevent infant deaths by Greg Mitchell, Regional Business Director, diagnosed with diabetes by 2014. The Institute educating the public in ABCD (sleep alone, on Mitsubishi Tanabe Pharma America, stated that for Alternative Futures (IAF) projects over 14 the back, in a crib, and free of danger), the four very little progress has been made since Lou percent of Kentuckians will be diagnosed with letters associated with the best practices to make Gehrig’s diagnosis almost 20 years ago. ALS is diabetes by 2030. IAF estimates the economic sure infants sleep safely. The campaign aims a rapidly progressive neurodegenerative disease impact in Kentucky in 2020 could cost $6.5 to help inform new and experienced parents, in which the majority of people die within two billion. EMS should carry quick acting insulin grandparents, and caregivers on the importance to five years of diagnosis. Over time, people with them at all times, because it could mean life of Safe Sleep for babies. The campaign also with ALS lose their ability to perform the basic or death for someone. hopes to promote Safe Sleep through medical functions of daily living. Approximately 6,000 Representative Russ Meyer stated that almost experts and professionals within the healthcare people are diagnosed with ALS yearly. It can 90 percent of people living with type 2 diabetes community so they and parents alike become take up to 12 months to receive a diagnosis. The are overweight or have obesity. People who are familiar with, practice, and actively promote ALS revised rating scale (ALSFRS-R) is based overweight or have obesity have added pressure these simple steps to save babies lives. on speech, salivation, swallowing, handwriting, on their body’s ability to use insulin to properly In response to a question by Representative cutting food, dressing and hygiene, turning control blood sugar levels, and are therefore Benvenuti, Dr. Robl stated that among infants in bed, walking, climbing stairs, dyspnea, more likely to develop diabetes. The total cost who experience SUID, there is at least a 30 orthopnea, and respiratory insufficiency. In 2015, of obesity in Kentucky is $36.31 billion with percent have a substance abuse risk factor, but this edaravone was approved for use as a treatment $4.17 billion of the total in Medicare costs. The percentage could be underestimated because not for ALS in Japan and South Korea. In May 2017, Diabetes Prevention Program is now covered by all of the cases have had a complete investigation. the Food and Drug Administration (FDA) Medicare. Diabetes self management education Henrietta Bada, MD, Director, Division of approved Radicava (edaravone) as a treatment (DSME) shows economic benefit and merits Maternal and Child Health, Department option for ALS. The most common side effects major support. Increase in diabetes screening for Public Health, University of Kentucky, are bruising (contusion), problems walking (gait in health plans and Medicare will identify new Professor, stated that the Department of Public disturbance), and headache. cases. Health, the Department for Behavioral Health, Greg Lamping, Field Reimbursement and In response to questions by Representative Developmental and Intellectual Disabilities, and Patient and Access and Services Manager, George Brown, Representative Mayfield stated the Department for Community Based Services Mitsubishi Tanabe Pharma America, was present that her insurance covers the cost of the insulin are involved in a hospital’s plan of safe care. The to answer questions. pod and she only pays $1 every 3 days for the major focus is the care of the pregnant woman In response to a question by Representative co-pay. There is a false sense of security that who is abusing opioids or on treatment, activities Wuchner, Mr. Mitchell stated that the clinical the insulin pod will take care of everything or procedures done in the hospital for mothers trial was a six-month study conducted in Japan. automatically so there is no need to carry extra

14 2017 Interim LEGISLATIVE RECORD supplies. The pod has a small meter that controls and procedures of qualifying for a credential Mr. Randy Poe, Superintendent, Boone the pod. When the pod is put on, the controller to practice physical therapy in Kentucky; 201 County School District, discussed the tells it how much insulin is needed on a 24 hour KAR 22:040 – establishes the requirements and relationship between academics and Northern basis and also integrates the blood sugar testing. procedures for the renewal and reinstatement Kentucky (NKY) industries helping students She stated that she did not know how much it of credentials; 201 KAR 22:070 – establishes become career, college, and life ready. He would cost for EMS vehicles to carry insulin but the requirements a foreign-educated physical introduced panel members as Polly Lusk would get the information for the committee. therapist shall satisfy to become credentialed in Page, Executive Director, Northern Kentucky Representative Bentley stated that the retail price the state of Kentucky; and 900 KAR 11:010 – Education Council; Jay Brewer, Superintendent, is $799.50 for a pod of 30 that last 90 days. establishes the requirements for medical review Dayton Independent School District; Jack Senator Alvarado stated that EMS vehicles panels in accordance with KRS Chapter 216C. VonHandorf, Principal, Notre Dame Academy; are permitted to carry insulin. There are some A motion to accept the referred administrative and Angie Ferguson, Executive Director, Drug concerns that EMTs do not want to administer regulations was made by Senator Raque Adams, Free Clubs of America (DFCA). high doses of insulin without knowing someone’s seconded by Senator Alvarado, and accepted by Ms. Page said the Northern Kentucky metabolic status, because it could cause more voice vote. Education Council (NKEC) is the backbone harm than good to administer the insulin. It Adjournment organization for alignment of education is probably up to local directors to make the There being no further business, the meeting initiatives. The NKEC serves as a catalyst for decision to carry it in the EMS vehicle. was adjourned at 12:32 p.m. collaboration, change, and progress toward Legislative Hearing on the FFY 2018- regional education goals and includes seven 2019 Unified Community Mental Health and INTERIM JOINT COMMITTEE ON counties, 19 public school districts, three Substance Abuse Prevention and Treatment EDUCATION postsecondary institutions and 85,504 students. Block Grant Minutes of the 6th Meeting The collective impact model holds leaders A motion that the FFY 2018-2019 Unified of the 2017 Interim accountable and brings family, community, and Community Mental Health and Substance November 13, 2017 schools together to change the outcomes and Abuse Prevention and Treatment Block Grant Call to Order and Roll Call odds for children and youth. does meet the standards and criteria set out in The 6th meeting of the Interim Joint The NKEC organization of CEO Leadership KRS 45.353 was made by Senator Raque Adams, Committee on Education was held on Monday, Advisors, the Board of Directors, the Executive seconded by Senator Alvarado, and accepted by November 13, 2017, at 1:00 PM, in Room 154 Director, and over 600 volunteers support these voice vote. Michele Blevins M.S., LMFT, Assistant of the Capitol Annex. Senator Max Wise, Chair, goals. The Council includes action teams who Director, Division of Behavioral Health, Cabinet called the meeting to order, and the secretary oversee regional education goals to reduce for Health and Family Services, was present to called the roll. barriers for student learning, college and career answer questions. Present were: readiness, education excellence, education Legislative Hearing on the FFY 2018-2020 Members: Senator Max Wise, Co-Chair; accessibility, lifelong learning, and advocacy. Temporary Assistance for Needy Families Representative John Carney, Co-Chair; Senators The 21st Century Essential Skills Toolkit was (TANF) Block Grant Julie Raque Adams, Danny Carroll, Jimmy designed to support educators to ensure students A motion that the FFY 2018-2020 Temporary Higdon, Stephen Meredith, Gerald A. Neal, are prepared with essential skills, including Assistance for Needy Families (TANF) Block Reginald Thomas, Johnny Ray Turner, Stephen showing up on time, being drug free, and being Grant does meet the standards and criteria set West, and Mike Wilson; Representatives Danny identified by NKY employers as college, career, out in KRS 45.353 was made by Senator Raque Bentley, Jim DeCesare, Mark Hart, Regina Huff, and life ready. The NKEC ensures all families Adams, seconded by Senator Alvarado, and Reginald Meeks, Phil Moffett, Rick G. Nelson, and youth are thriving and that all schools accepted by voice vote. Elizabeth M. Caywood, Melinda Gibbons Prunty, Steve Riley, Attica promote a culture of contribution. The NKEC MSW/CSW, Executive Advisor, Department for Scott, James Tipton, and Russell Webber. has regional programs and activities to nurture Community Based Services, Cabinet for Health Guests: M. Shelton and Gene Basil, and develop 21st Century skills and aligns itself and Family Services, was present to answer SKYCTC; Erik Carlson Landy, KDE; Chad with the program, including 17,000 youth from questions. Collins, KHSAA/KDE; Dr. Gary Finkbonner, both public and parochial schools in the area. Consideration of Referred Administrative DJJ; Wayne Young, CASA; and Moms Demand Ms. Page said an increasing number of Regulations Action members Sheila Anderson, Diane Cahill, businesses contribute to the Northern Kentucky The following administrative regulations Karen Conley, Dr. Joe Brennan, Sylvia Burns, Drug Free Clubs of America (NKY DFCA) for were on the agenda for consideration: 201 KAR Trish Ramey, Judy Wulff, Amanda Clark, Sarah the development of this serious problem affecting 9:260 – establishes the professional standards for Coker, Kristal Smith, Dana Walker, Lynsey children. By providing effective prevention tools, prescribing and dispensing controlled substances; Sugarman, Lisa Satin, Nancy Birdwhistle, Lori Dr. Brewer said the organization empowers 201 KAR 13:040 – prescribes the forms, required Looner, Connie Courtney, and Kavin Soltaw. parents, educators, and communities to build examinations, experience, renewal requirements, LRC Staff: Jo Carole Ellis, Joshua Collins, drug-free youth. To become a DFCA member, and provisions for inactive status required for Lauren Busch, and Christal White. students must volunteer to be drug tested licensees; 201 KAR 13:060 – exempts from Approval of the minutes of the October 9, and make a commitment to remain drug free. licensure renewal licenses for active members 2017, meeting Dr. Brewer said universities, businesses, and of the military service, provides reciprocity On a motion by Representative Nelson and communities should encourage membership between the states, and provides licensure by a second by Representative Meeks, the minutes in DFCA from 7th through 12th grade. He said endorsement; 201 KAR 20:057 – establishes the of the October 9, 2017, meeting were accepted counselors inform students that success is scope and standards of practice for an advanced by voice vote. evaluated by American College Testing (ACT) practice registered nurse; 201 KAR 22:020 – Presentation: Essential Skills – Voluntary scores, a high grade point average (GPA), establishes the criteria for eligibility, methods, Drug Testing community service, and extracurricular school THE KENTUCKY GENERAL ASSEMBLY 15 activities. are opening DFCA branches to provide strategy maintains liability insurance on all employees, The NKY DFCA program is facilitated in their own communities, and protect the volunteers, and members. through a partnership with St. Elizabeth Hospital. potential of local youth. Experts agree than In response to a question by Representative As encouragement, NKY DFCA is seeking ways an ideal drug prevention strategy must be a Huff, Ms. Ferguson said the stakeholder system to reward students for voluntary participation in combined effort from the schools, community, is grown by networking with an existing entity the club. Dr. Brewer said risk factors increase a and parents. in the community to build a team, identifying person’s chances for drug abuse and preventive Used as a means to monitor and analyze the the focus of each employee or volunteer, and factors can reduce that risk. success and impact of the DFCA program, each building a cultural change for the community. Ms. Ferguson said the DFCA was founded school receives Prevention on Purpose (POP) Community support and schools seeking by her father and one of his co-workers as a annually. POP is a comprehensive, tailored cultural change are a basis for the success of the result of frustration caused by the loss of young metrics package of peer-led programs, protective program. Representative Huff applauded the lives as a result of drug overdoses. As retired tools, and positive reinforcement. DFCA for their built-in accountability and in- Cincinnati firefighters, their concern was the lack The DFCA program requires community school and community rewards to students who of preventive drug abuse programs as compared businesses to generate parental, school, and remain drug free. to the number of rehabilitation and treatment community involvement into a common effort. facilities growing at a steady rate. The idea of Positive peer pressure and added incentives In response to Representative Meek’s forcing an individual into a prevention program contribute to the success of the program. question, Ms. Ferguson said the DFCA has a would not garner the same results as helping a Mr. VonHandorf reported 72 percent of the messaging system with a captive audience that is young person volunteer to remain drug free. As Notre Dame Academy students are members filtered to the parents and to the students. Also, a result, the DFCA program was created. of the DFCA, with 91 percent being freshmen community organized drug take-back days bring In 2005, the DFCA program was developed students. He said there are efforts to lower attention and spread awareness about widely by creating a safety net, reinforcing good choices, the initial cost of enrollment to entice more abused prescription drugs and proper disposal re-tooling peer pressure, changing choices, and members. Making a drug-free choice and having of medications. backing parents. Local and national officials community support as a high school student In response to a question by Senator Carroll, raved at the success of the program. With over may provide the necessary tools to make good Dr. VonHandorf said the Keeping in Touch or 2,300 members, they rallied to join a march choices later in life. Keeping it Together (KIT) survey is utilized to proclaiming drug-free status and received an In response to a question by Senator Wise, get a student’s understanding of alcohol and award from the Federal Bureau of Investigation. Dr. Vonhandorf said the DFCA club begins in drugs. It is a voluntary survey provided by the A new DFCA program begins with the the 7th grade since the battle against drug abuse state and is a tool used to help combat mixed appointment of student officers who are charged now begins at earlier ages. messages about the legalization of marijuana. Dr. with organizing a marketing plan, preparing in- Representative Tipton said he has prefiled HB Brewer said challenges supporting the legalizing school reports, and tailoring the program to fit 312, which requires mandatory drug education of marijuana present challenges in schools. Ms. their school culture. Once the DFCA program to begin in elementary school. Dr. Brewer said Ferguson said children experiencing second is organized, it is rolled out to the student body. DFCA encourages healthy choices but agreed and third generation family addictions often Once drug testing is completed and the results education is needed and is part of what their understand the need to break the generational known, students are given a full color photo organization does. In response to a question by cycle. ID card which earns them rewards. The reward Representative Tipton, Dr. Brewer said children Representative Carney congratulated DFCA benefits often encourage enrollment to students involved in the DFCA are connected to parents for the ability to partner with school districts and who may otherwise be on the fence regarding through emails but stressed drug education is independent businesses and bringing positive drug use. A peer-led effort has a huge impact essential in family dialogue and that it is not peer pressure by giving students a safe way to get on students who are considering experimenting only viewed as a school education issue. Ms. help. In response to his question, Ms. Ferguson with drugs. Ferguson said parental involvement is integrated said a one-time fee of $67 is charged for the School personnel is not informed if students by continual talking. entire program and DFCA uses 94.6 percent of test positive for drugs. The DFCA contacts In response to a question by Representative funds for the program. Administrative rates are parents and explains the potential health risks Bentley, Ms. Ferguson said panels are changed minimal due to community support with office and damage to the student’s future. Parents yearly according to the drug being abused and space donation, IT support, and reproduction receive a great deal of support from DFCA, and the reliability of tests available. The DFCA of materials, an indication of the importance of studies have shown discussion of expectations buys high quality kits made in the United collaboration and networking. about drugs and alcohol within families can cut States, follows up with lab work and a medical In response to a question by Representative the risk of drug use from 42 to 50 percent. “Take review officer, and offers the family confidential Carney, Ms. Page said a fund has been established Five” is another layer of the program, prompting support. The DFCA uses an adulterant panel for at NKEC to which business partners contribute parents to continue ongoing dialogue about altered drug tests, requiring preliminary results as an offset for families who are unable to drugs. As students sign up for DFCA, parents are to be sent to a lab and followed up by a doctor afford the program. The Council formed a automatically sent an email to ensure awareness. who verifies a student’s prescribed medication steering committee made of judge executives, Students expressing concern about parental drug matches the substance found. One factor is the superintendents, the CEO from St. Elizabeth use are encouraged to break the generational level or threshold of drugs in a student’s system Health Care, and others. They also formed a cycle of drug dependency. cannot always prove ingestion. tactical committee that will have a campaign Organizations work daily to fight drug In response to a question by Representative launch in the fall. Dr. Brewer said St. Elizabeth, abuse, but the DFCA believes expansion of the Bentley, Ms. Ferguson said the DFCA does veteran organizations, the board of education, program begins by working together. Through not have a collaboration with Generation Rx. and teachers have sponsored students to offset the stakeholder system of growth, organizations Regarding liability for false positives, DFCA some of the cost so no child is left out if they

16 2017 Interim LEGISLATIVE RECORD want to be tested. Mr. Poe said St. Elizabeth pays profile of an ideal graduate includes a globally- and high-demand industry sectors are IT a portion of the cost to ensure minimal parental minded student, an emotionally intelligent services, construction, healthcare, advanced cost. Ms. Ferguson said the startup amount student, and a life-long learner. SCK LAUNCH manufacturing, and transportation and logistics. is tailored to the needs of the community by a includes employability skills aligned with these WCTC offers many of the programs. The school core group setting an affordable level for parents. characteristics. has incorporated computerized manufacturing Entities working with DFCA hosts fundraisers SCK LAUNCH created tactical teams to and machining, robotics and automation to make up the difference, and many career and develop solutions ensuring maximum career engineering, and welding technology. Students technical schools provide it free to their students. opportunities for students in several ways. The who attend WCTC during their junior and senior In response to a question by Representative experience team designed a career expo for eighth years have an opportunity to earn enough credits Gibbons Prunty, Ms. Ferguson said grade students; the shadowing team provides to complete one year of college. TheKentucky communication with disengaged parents is quality experiences for high school students to Occupational Skills Standards Assessment and often a challenge but friends providing positive increase career awareness and local opportunity; industry certificates such as Automotive Service peer pressure has a huge impact. Parental student-led leadership provides an opportunity Excellence, Carpentry, Robotics and Automation, communication by texts, emails, and phone calls for all students to gain the necessary skills for Health Sciences, Information Technology, usually proves to be successful as many parents their future; education externships create a American Welding Society, and Machining Level with previous or current drug battles don’t want unique and engaging opportunity for educators 1 all lead to a career-ready focus. their children to struggle; however, follow-up can to experience and connect with the local Mentor Mondays include monthly meetings often be a challenge. The conversation is a forum economy; and communication and marketing with plant managers or HR directors who between parents and students and has different promotes the importance of career awareness as speak to students about expectations, company dynamics as an open conversation rather than it informs and engages stakeholders. offerings, and the type of industry and job, and with police involvement. Mr. Poe said school- In October, 2017, five manufacturers utilize the 7 Habits of Highly Effective Teens level survey results indicate a positive increase welcomed 130 students to career shadowing curriculum. An industry tour is facilitated by with attitude and culture as benchmarks and goal experiences, exposing them to many facets career pathways in the fall and is considered a lines are established and student engagement of the business, including but not limited to year-long interview. In April, interviews are held, and empowerment is measured. Dr. Brewer interviewing, finance, marketing, accounting, and salary, tuition coverage, and benefits are suggested the science of addiction reveals kids quality assurance, human resources, all determined, creating a seamless transition. who delay the use of drugs after 18 years of age manufacturing, and employability skills. With all major companies in Warren County can have a profound effect on their lives. Educator externships allow teachers to included, some students are hired as a result of Presentation: Essential Skills – Cultivating observe companies in the community to see how the experience gained while working. Work Ethic and Soft Skills specific classes may relate to specific jobs, which The BTC program teaches students to give Kim Phelps, Vice President of generated explanation as to methods of teaching back as graduates by volunteering to work with Communications and Public Policy at the and how they are utilized in the workplace. students or buying supplies for schools, and Bowling Green Area Chamber of Commerce, In partnership with local hospitals, all area businesses can provide donations with materials introduced herself and Dr. Eric Keeling, high schools are implementing career-focused or funding. As partnerships have formed, more Principal of the Warren County Area Technology models such as medical arts, phlebotomy, EKG people have become involved and the Chamber Center (WCTC). Ms. Phelps described the technician, pre-nursing, and fire science or of Commerce has been a huge partner with the South Central Kentucky (SCK) Learning About EMT-type certification. SCK LAUNCH program. Unique New Careers Here (LAUNCH) as a Critical elements of reaching this common The BTC educational partners include community initiative bringing education and goal are cooperation and flexibility among the Warren County Public Schools, Bowling Green business communities together. She said the local Chambers of Commerce, local businesses, Independent Schools, South Central Kentucky struggle for businesses to get quality, skilled and the community. Whether entering the Community and Technical College, and Western workers is a concern heard daily from businesses workforce immediately after high school Kentucky University’s graphic design, marketing in Warren County. The projected demand for graduation or advancing to higher education, all and architecture departments. expected regional growth over the next 10 years students must be provided equal opportunities. The BTC program aids students in is identified in the career sectors of construction, Presentation: Be the Change Program understanding strong work ethic; attendance; healthcare, hospitality, manufacturing, Dr. Keeling said WCTC was built in 2006 in culture of respect; integrity; character; job vs. professional services, and in transportation, an effort to meet the needs of secondary students. career; workforce and economic impact; and distribution and logistics. Each sector was Upon his arrival in 2013, he introduced the Be the amount of tuition, benefits, and salary the outlined with levels of knowledge, skill, and the Change (BTC) program, a character and students will receive. Students realize focus is ability to qualify for specific positions and the work ethics program focused on culture shift, placed on a career pathway rather than a job. expected income for each position. including skill sets, attendance, punctuality, Dr. Keeling said students who are not college Ms. Phelps outlined the guiding principles attitude, and manners. Focus is also placed on material should consider a career pathway due for SCK LAUNCH’s achievement as supporting leadership roles, industry partnerships, industry to the cost to earn a college degree. student-driven leadership; building self- certifications, and demands from industry Senator Wise commended Warren County’s awareness; becoming empowered; being a partners. involvement for their partnership with the career-wise graduate; providing students with Dr. Keeling said the BTC culture includes Chamber and business investors and described it meaningful opportunities to explore, experience, having critical employment skills, dependability, is as a model that should be practiced throughout and connect to build career skills and knowledge; respect, honesty, integrity, and character. The Kentucky. and supporting the attainment of nationally- motto of WCTC is “Excellence - No Apologies In response to a question by Representative potable industry credentials and postsecondary - No Excuses”. Tipton, Dr. Keeling said it would be very difficult courses to launch future career paths. The Kentucky’s forecast for high-wage to have success without the availability of THE KENTUCKY GENERAL ASSEMBLY 17 tuition costs and scholarships provided through Keene, David Meade, Jonathan Shell, and Wilson BR 18 (an act relating to telecommunications) community partners. He said developing a Stone. to Natural Resources and Energy; BR 204 (an successful, challenging program with high LRC Staff: David Byerman and Christy act relating to retirement benefit participation expectations is an enticement for additional Glass. for members of the General Assembly), BR companies to participate. KDE advised WCTC There being a quorum, Representative Jeff 213 (an act relating to retirement benefits for that OSHA 10 training would be advantageous Hoover called the meeting to order. legislators), BR 235 (an act relating to retirement for students and companies so classes will begin Speaker Hoover called for a motion to benefit participation for members of the General once staff has been trained. Ms. Phelps said once approve the minutes of the October 4, 2017, Assembly and declaring an emergency), BR businesses realized what was needed, they were meeting; accept and refer as indicated items 285 (a joint resolution applying for an Article happy to provide services. She said requests and A. through E. under Staff and Committee V convention to propose amendments to the offerings from donations have had a snowball Reports; refer prefiled bills and administrative Constitution of the United States that impose effect in the community. regulations as indicated and approve items A. fiscal restraints on and limit the power and Senator Carroll said the model is the way of through D. under New Business; and, accept and jurisdiction of the federal government, and the future and taking advantage of the resources refer as indicated items 1. through 16. Under requesting Congress to similarly propose such within the community is key. Communications. amendments) and BR 230 (an act relating to Senator Wilson said he is impressed with the A motion was made by Representative Shell retirement benefits for legislators) to State Chamber’s work and the partnerships that have and seconded by Senator Thayer. Speaker Stivers Government. grown within their community. asked for discussion. Seeing none, a roll call vote Referral of administrative regulations to In response to a question by Representative was taken, and the motion passed unanimously. the following committees for secondary review Gibbons Prunty, Dr. Keeling said students are The following items were approved, accepted, or pursuant to KRS 13A.290(6): 806 KAR 3:011 selected by an application process, a one-page referred. (Repeal of 806 KAR 3:010, 806 KAR 3:020 and essay as to why they want to work at a particular STAFF AND COMMITTEE REPORTS 806 KAR 3:220) and 806 KAR 3:210 (Privacy place, the student’s GPA, and most importantly Information requests since October 1, 2017. of consumer financial and health information) behavior referrals. Dr. Keeling said passion plus Committee Activity Reports since October to Banking and Insurance; 787 KAR 1:070 purpose equals excellence. 1, 2017. (Reasonable time for protesting claim), 803 Review of Administrative Regulation Report of the Administrative Regulation KAR 1:100 (Child labor), 803 KAR 1:121 702 KAR 7:065. Designation of agent to Review Subcommittee meeting on­­­­­­­­­­­­­­­­­­ October 10, (Repeal of 803 KAR 1:030 and 803 KAR 1:040) manage middle and high school interscholastic 2017. and 803 KAR 6:011 (Repeal of 803 KAR 6:010) athletics. The amendments to this regulation Committee review of the administrative to Economic Development and Workforce were recently heard by the Administrative regulations by the Interim Joint Committee Investment; 13 KAR 2:120 (Comprehensive Regulation Review Subcommittee and were on Natural Resources and Energy, during its funding model for the allocation of state general subsequently referred to the committee. There meeting on October 5, 2017. fund appropriations to public universities), were no questions on the amendments. Committee review of the administrative 13 KAR 2:130 (Comprehensive funding regulations by the Interim Joint Committee on model for the allocation of general fund Other Business Health and Welfare and Family Services, during appropriations to the Kentucky Community The next meeting will be held on Monday, its meeting on October 11, 2017. and Technical College System institutions: December 11th in the Capitol Annex, and the NEW BUSINESS Adult Education and Literacy), 13 KAR 3:050 discussion topic will be peer networks for Referral of prefiled bills to the following (GED® eligibility requirements), 702 KAR students with special needs. committees: BR 248 (an act relating to 7:065 (Designation of agent to manage middle Adjournment educational programs) to Education; BR 247 and high school interscholastic athletics), 780 There being no further business to discuss, (an act relating to kinship care), BR 131 (an KAR 3:072 (Attendance, compensatory time, the meeting was adjourned at 3 p.m. act relating to the safe disposal of controlled and leave for certified and equivalent service) substances) and BR 163 (an act relating to and 780 KAR 3:080 (Extent and duration of LEGISLATIVE RESEARCH personal jurisdiction) to Health and Welfare school term, use of school day and extended COMMISSION and Family Services; BR 143 (an act relating to employment) to Education; 201 KAR 9:260 Minutes of the 558th Meeting unborn children and declaring an emergency), (Professional standards for prescribing and 2017 Interim BR 105 (an act relating to sex offenses), BR dispensing controlled substances), 201 KAR November 1, 2017 271 (an act relating to the safety of canines and 13:040 (Licensing; application, examination; Call to Order and Roll Call felines), BR 192 (an act relating to personal experience; renewal; and inactive status), 201 The 558th meeting of the Legislative Research jurisdiction), BR 164 (an act relating to animal KAR 13:060 (Military service; reciprocity), 201 Commission was held on Wednesday, November safety) and BR 305 (an act relating to public KAR 20:057 (Scope and standards of practice 1, 2017, at 1:30 PM, in Room 125 of the Capitol protests) to Judiciary; BR 234 (an act relating of advanced practice registered nurses), 201 Annex. Representative Jeff Hoover, Chair, called to estheticians) and BR 193 (an act relating to KAR 22:020 (Eligibility and credentialing the meeting to order, and the secretary called the occupational licensing regulations) to Licensing, procedure), 201 KAR 22:040 (Procedure roll. Occupations, and Administrative Regulations; for renewal or reinstatement of a credential Present were: BR 81 (a concurrent resolution urging the for a physical therapist or physical therapist Members: Representative Jeff Hoover, Co- United States Fish and Wildlife Service to issue assistant), 201 KAR 22:070 (Requirements for Chair; Senators Jimmy Higdon, Ray S. Jones II, more migratory bird depredation permits and foreign-educated physical therapists) and 900 Dennis Parrett, Dorsey Ridley, Dan “Malano” Kentucky Farm Bureau-administered subpermits KAR 11:010 & E (Medical review panels) to Seum, Damon Thayer, and Mike Wilson; to allow Kentucky farms to legally take black Health and Welfare and Family Services; 500 Representatives Kevin D. Bratcher, Dennis vultures that are depredating on their livestock), KAR 8:010 (Certification of breath alcohol

18 2017 Interim LEGISLATIVE RECORD analysis instrument operators), 500 KAR 8:030 Cabinet, Commonwealth Office of Technology: There being no further business, the meeting (Administration of breath alcohol tests and 2017 Personal Information Security and Breach was adjourned. chemical analysis tests) and 501 KAR 6:110 Notification Annual Report. (Roederer Correctional Complex) to Judiciary; From the Justice and Public Safety Cabinet: 201 KAR 15:030 (Fees), 201 KAR 15:050 INTERIM JOINT COMMITTEE ON Annual Report Pursuant to KRS 196.736. LICENSING, OCCUPATIONS, AND (Apprenticeship and supervision requirements), From the Cabinet for Economic 201 KAR 15:110 (Funeral establishment criteria), ADMINISTRATIVE REGULATIONS Development: FY17 Linked Deposit Loan Minutes of the 6th Meeting 201 KAR 45:071 (Repeal of 201 KAR 45:070), 201 Investment Program Annual Report. KAR 45:110 (Supervision and work experience), of the 2017 Interim From the Cabinet for Health and Family November 17, 2017 201 KAR 45:120 (Renewal, reinstatement, and Services: The Kentucky Commission on Services inactive status), 201 KAR 45:170 (Application Call to Order and Roll Call and Supports for Individuals with Intellectual The 6th meeting of the Interim Joint procedures), 804 KAR 5:070 (Minors) and 804 and Other Developmental Disabilities 2017 KAR 6:020 (Advisory opinions) to Licensing, Committee on Licensing, Occupations, and Annual Report. Administrative Regulations was held on Friday, Occupations, and Administrative Regulations; From the Kentucky Personnel Cabinet: 2017 739 KAR 2:050 (Volunteer fire department aid) November 17, 2017, at 10:00 AM, Jim Beam Executive Summary of the Kentucky Employees’ American Stillhouse, 526 Happy Hollow Road, to Local Government; 402 KAR 3:010 (Timber Health Plan. sales) and 402 KAR 3:030 (Best management Clermont, KY 40110. Senator John Schickel, From Kentucky Employers’ Mutual Chair, called the meeting to order, and the practices for timber harvesting operations) to Insurance: 2018 Administrative Budget and Natural Resources and Energy; 17 KAR 3:020 secretary called the roll. Financial Status and Actuarial Condition. Present were: & E (Charges for room and board, goods and (Staff suggested committee referrals: State services at state veterans’ nursing homes) and Members: Senator John Schickel, Co- Government, Economic Development and Chair; Representative Adam Koenig, Co-Chair; 106 KAR 2:040 (Survivor benefits for death Workforce Investment, and Appropriations of a National Guard or Reserve Component Senators Julian M. Carroll, Jimmy Higdon, and Revenue.) (Copy available upon request.) Dan “Malano” Seum, and Damon Thayer; member) to Veterans, Military Affairs, and Pursuant to KRS 342.813(3)(b). Public Safety. Representatives Dennis Keene, Chad McCoy, C. From the Department for Local Government: Wesley Morgan, David Osborne, Phillip Pratt, From Senator Julie Raque Adams and 2018 Special Purpose Governmental Entity Representative Addia K. Wuchner, Co-Chairs and Walker Thomas. Compliance Report. (Staff suggested committee Guests: Senator Stephen Meredith; of the Interim Joint Committee on Health and referrals: Local Government and Appropriations Welfare and Family Services: Memorandum Representative Lynn Bechler; Kevin Smith, Vice and Revenue.) (Copy available upon request.) President, Kentucky Beam Bourbon Affairs, request to meet on December 13, which is outside Pursuant to KRS 65A. the interim. There are no apparent conflicts. Beam Suntory, Inc.; Eric Gregory, President, From the Auditor of Public Accounts: FY17 Bryan Alvey, Senior Director, Governmental and From Senate President Robert Stivers and Report of the Audit of the Kentucky Department House Speaker Jeff Hoover: Memorandum External Affairs, Kentucky Distillers’ Association; of Veterans’ Affairs Veteran’s Program Trust Danny Percell, Chairman of the Kentucky authorizing the Director of the Legislative Fund. (Staff suggested committee referrals: Research Commission to contact the Executive Board of Funeral Directors and Embalmers; Veterans, Military Affairs, and Public Protection Julie Campbell, Board Administrator, Kentucky Director of the Council of State Governments and Appropriations and Revenue.) (Copy for the purpose of offering the City of Covington Board of Hairdressers and Cosmetologists; Sonja available upon request.) Minch, Board Administrator, Kentucky Board of in the Northern Kentucky/Greater Cincinnati From the Auditor of Public Accounts: FY17 region as the host state and city for the 2018 Barbers. Report of the Audit of the Kentucky Department LRC Staff: Tom Hewlett, Bryce Amburgey, National Conference of The Council of State of Veterans’ Affairs I Support Veterans License Governments. Jasmine Williams, Melissa McQueen, and Susan Plate. (Staff suggested committee referrals: Cunningham. Veterans, Military Affairs, and Public Protection COMMUNICATIONS Minutes and Appropriations and Revenue.) (Copy Due to lack of a quorum, the minutes were From the Finance and Administration available upon request.) Cabinet: Monthly Investment Income report for passed over. From the Kentucky Personnel Cabinet: Welcome to Jim Beam the month of September 2017. Quarterly Report as of September 30, 2017. From the Finance and Administration Kevin Smith, Vice President, Kentucky (Staff suggested committee referral: State Beam Bourbon Affairs, Beam Suntory, Inc. Cabinet, Office of the Controller: Surtax Government.) Pursuant to KRS 61.392. Receipts Statements for the Law Enforcement told the committee that in 2014 Suntory From the Kentucky Board of Physical Holdings purchased Beam Inc. creating a and Professional Firefighters Foundation Fund Therapy: 2019-2020 Biennium Budget Request. Programs, which reflect activity for Accounting high performance team now known as Beam (Staff suggested committee referrals: Health and Suntory, with headquarters in Chicago. Global Period 3 and year-to-date activity for the period Welfare and Family Services, and Appropriations of July 1, 2017, through September 30, 2017. distribution is key. Their performance objective and Revenue.) (Copy available upon request.) is to become the world’s fastest growing spirits From the Cabinet for Economic KRS 327.080. Development: Construction activity reports company. Jim Beam recently redesigned the From the Office of State Budget Director: Beam bottle to market to new customers. The for each loan approved as of the quarter Report detailing preliminary estimates for the ending September 30, 2017. Grand Dad plant in Frankfort is the only plant General Fund, Road Fund, and Tobacco Fund in the United States that makes its own plastic From the Kentucky Fire Commission, State for FY18 (Staff suggested committee referral: Fire Rescue Training: FY17 Financial Disclosure bottles. Beam Suntory is focused on giving back Appropriations and Revenue.) Pursuant to KRS by being more community and charity involved. Reports. 48.120(2). From the Finance and Administration Kentucky Distillers’ Association Update THE KENTUCKY GENERAL ASSEMBLY 19 and Legislative Agenda tourism economies. regulations. One business was fined because it Eric Gregory, President, Kentucky Distillers’ Senator Higdon commented that the had been sending in the same CEU program from Association (KDA), said that legislation passed bourbon industry provides good paying jobs in the intent and no one had attended programs in in recent years has been a tremendous help to areas where there are distilleries. However, the person until it was made mandatory. Kentucky the bourbon industry’s growth and success. In agriculture sector also benefits because of the has the lowest number of required CEU’s and Kentucky, bourbon is an $8.5 billion industry demand for thousands of acres of corn. The timber is one of a handful of states that do not require and dominates bourbon production worldwide. industry benefits because of the oak barrels that some in-person attendance. Bourbon is also a tourism driver for the are produced in Kentucky. Independent Stave in The Funeral Directors Association of Commonwealth. In 1999 the KDA created the Lebanon produces 1 million barrels a year that Kentucky has done a good job of making sure Kentucky Bourbon Trail tour. This gives visitors stay in Kentucky. The economic impact runs that the CEU programs are offered in all regions an education in the art and science of creating across the state. of the state. There are 512 funeral homes in the bourbon. In 2012 the KDA partnered with the Senator Carroll commented that Jim Beam state and programs are offered within a 30 mile craft distillers to create the Kentucky Bourbon has just built a new bottling plant in Frankfort. range. It is in the best interest of the consumer Craft Tour to showcase the state’s micro- Franklin County has more distilleries that any and the profession if the CEU requirements are distilleries. other Senate district. Senator Carroll stated unchanged. This year the KDA hired a Director for that he has never cast a vote against bourbon in Senator Schickel said that if the votes to pass Social Responsibility. They have developed best Kentucky. the bill to remove the in-person language are practices in alcohol responsibility standards, and Continuing Education for Embalmers there, the bill will be heard in committee during have partnered with Lyft to bring on-demand and Funeral Directors, SB 154 2017 Regular the upcoming session. safe rides in Bardstown and Versailles. During Session In response to a question from the holidays, there will be a public service Senator Stephen Meredith said when a Representative Koenig, Mr. Percell said there announcement that offers $20 off a ride with constituent comes to a legislator they listen. are four sets of license in the Commonwealth; discount code SAFERIDEKY17. This issue was personal due to the regulation 1. an establishment, 2. a dual license is required The bad news, there is competition in all placing a financial burden on the business for a full service establishment, where funeral 50 states. In fact, Kentucky ranks11th in the community, even more to businesses in small or directing and embalming is being performed, country in the number of distilleries operating. rural communities. SB 154 addresses increasing 3. an embalming establishment only requires a Fortune magazine predicts that in five years continuing education hours for embalmers and licensed embalmer, and 4. a visitation, ceremonial there will be better bourbon produced in other funeral directors from six to twelve. Original facility where there is no embalming, and only a states. One reason for strong competition is the language in the statute says that “a minimum of six licensed funeral director is required. There are high tax structure in Kentucky. If Kentucky loses hours shall be attained from programs attended more assistants than licensees in a business. Mr. the historic monopoly, revenue and investment in a live, interactive, in-person format.” This Percell added that he would not want a person in jobs will be lost. language can have a substantial negative impact if who took a course on-line embalming his Bryan Alvey, Senior Director, Government you work in a rural community, even more so for relative. and External Affairs, KDA, told members the a sole proprietor. A stand-alone business would In response to a question from Senator KDA is looking for legislative opportunities to have to contract for coverage when attending Higdon, Mr. Percell said that as a board they make the industry stronger. Bourbon without these programs. Senator Meredith stated that review a minimum of 20 CEU programs Borders is the concept of having visitor center he was not aware of any other profession that throughout the country per month. Some shipping at each distillery. The number one required in-person continuing education credits. funeral homes hire speakers to come to their request from visitors is to be able to ship this The landscape for education is changing and funeral home to hold CEU classes that meet the product to their home. This is a solution to college degrees and certification can be obtained requirements of the in person language. packing bottles in their suitcase. This will help online in an affordable, convenient manner while Licensing HVAC Professionals the industry in the same way that California is at your home or business. Representative Lynn Bechler said HVAC helping the Napa Valley area. Visitor centers Senator Meredith said it was his belief companies are having trouble hiring qualified are retailers, so the product will go through the that adding the in-person language had good workers. People living near the state’s borders three-tier system and taxes will be collected. intentions. However, the reality is that it has a are willing to come to Kentucky to work; KDA would also like to restructure the alcohol regressive and discriminatory impact on stand- however, regulations for out-of-state workers tax laws to enhance the growth of the industry. alone and sole proprietor funeral homes serving limit businesses ability to hire them. This bill Finally, KDA takes social responsibility seriously rural communities. It is a classic example of proposes allowing people coming into Kentucky and is taking the lead to make Kentucky the government over-reach and appears archaic in to take the same Masters and Journeyman tests model. this day and time when continuing education as the Kentucky candidates, as long as they have Representative Morgan commented that hours can be obtained via the internet. the same experience. The bill does not issue a the Jim Beam Stillhouse was one of the finest Danny Percell, Chairman of the Kentucky license, but does allow out-of-state workers to facilities he has ever visited. Board of Funeral Directors and Embalmers test. Controversy arose during the last session. Senator Thayer commented it is not the job said in the past, as a school teacher, he has seen All parties have come together to work out a of government to create jobs, but to help create students progress when they had interaction solution for legislation for the upcoming session. an environment where business and industry with an instructor and fellow students. As the Ron Kramer, owner and principal of can create jobs. Legislation passed during the last owner of three funeral homes, it is important Prudential Heating and Air Conditioning four years has removed prohibition era laws and for his directors to receive all updates and Company in Louisville said he supports eliminated artificial barriers to free enterprise. requirements of the funeral and embalming Representative Bechler’s new legislation. The new The bourbon industry is a great example of this industry. Most disciplinary problems are due to bill better defines what routine service is, as well by blending the agriculture, manufacturing, and lack of understanding of the new rules, laws, and as a major repair. A Master HVAC license allows

20 2017 Interim LEGISLATIVE RECORD a person to operate a business. The Journeyman between barbers and cosmetologists in the same license allows a person to repair equipment. building is that the skill sets are different. Barbers INTERIM JOINT COMMITTEE ON Current law states that in order to hold a Masters are trained in precision cutting and straight razor STATE GOVERNMENT license you are required to be a technician for shaves, cosmetology learns more about make- Minutes of the 6th Meeting two years. Operating a business and repairing up and hair color. Ms. Minch stated that if hair of the 2017 Interim equipment require two different skill sets and a color and chemical services were taken out of the November 29, 2017 journeyman HVAC technician would not have equation she would be all for removing the wall Call to Order and Roll Call the knowledge required to operate a business. requirement. The sixth meeting of the Interim Joint Additionally, there is a change in the Julie Campbell, Administrator for Committee on State Government was held on licensing requirement when there is a death of the Kentucky Board of Hairdressers and Wednesday, November 29, 2017, at 1:00 PM, the owner of a business. A business is given time Cosmetologist said her board is streamlining in Room 154 of the Capitol Annex. Senator Joe to get a Master license holder rather than closing their chapter by collapsing Chapter 317B, Bowen, Chair, called the meeting to order, and the business. All industry associations are in regulating estheticians, and putting the necessary the secretary called the roll. support of this new bill. language in Chapter 317A. The board is also in the Present were: Hairdressers, Cosmetologists, and Barbers process of repealing more than 20 administrative Members: Senator Joe Bowen, Co-Chair Senator Higdon told the members that his regulations. The board has adjusted fees one time and Representatives Jerry T. Miller, Co-Chair; bill combines issues confronting the Board of in the last 35 years, so currently hairdressers Senators Ralph Alvarado, Denise Harper Angel, Hairdressers and Cosmetology and the Board only pay $20 to renew their license. Looking at Christian McDaniel, Morgan McGarvey, Dorsey of Barbers but it does not combing the boards. fees in surrounding states, Kentucky is at the Ridley, and Wil Schroder; Representatives One common item in the bill is fee structure. bottom both in licensing and testing. Today the Lynn Bechler, Kevin Bratcher, Tom Burch, Will All boards and commissions are made up of barbering board charges $200 for its exam, the Coursey, Jim DeCesare, Joseph Fischer, Derrick state workers. Because of the pension crisis, the hairdressers exam fee is $75, capped by statute. Graham, Dan Johnson, DJ Johnson, Mary Lou contributions are going to be raised. In order to The proposed bill also removes restrictions Marzian, Reginald Meeks, Phil Moffett, C. generate money, the boards are going to have to for hairdressers and cosmetologist starting out Wesley Morgan, Jason Nemes, Sannie Overly, raise licensing fees. Rather than coming to the in business. Removing the apprentice license, Jason Petrie, Rick Rand, Jody Richards, Bart legislature every time a board needs to raise which requires taking an exam, six months of Rowland, Attica Scott, Tommy Turner, Ken a fee, putting a fee schedule in administrative supervision and taking another exam, will allow Upchurch, and Jim Wayne. regulation will allow a board to raise a fee new hairdressers and cosmetologist to become Guests: Allison Ball, Noah Friend, and O. as needed. Also, the boards are asking for independent contractors and either start a salon J. Oleka - Kentucky State Treasury; Joe Bilby, individual accounts with the treasury to prevent or rent a booth. Currently, hairdressers and Kentucky Department of Agriculture; Mike the legislature from sweeping their accounts. The cosmetologists can only test in the Frankfort Harmon and Sara Beth Gregory, office of the cosmetologists are asking for subpoena power facility, with a quorum of the board. The exam Auditor of Public Accounts. which has been granted to only a few boards. is a proctored exam. The board is asking for an LRC Staff: Judy Fritz, Karen Powell, Kevin Sonja Minch, Administrator for the emergency clause that allows it to use a national Devlin, Michael Callan, Roberta Kiser, and Kentucky Board of Barbering said the changes testing model and to implement that model Peggy Sciantarelli. the barbers are asking for are housekeeping immediately. This allows the board to go to Approval of Minutes measures. During the last session a bill changed regional testing centers across the state, which A motion to approve the minutes of the the term apprentice to probationary. This has makes it easier on the student. This also allows a October 25 meeting was seconded and passed caused confusion with new barbers who go to license for license exchange between states. without objection. another state to work. The term probationary In a response to a question from Senator Introductory Comments sounds like the barber is being disciplined. The Schickel, Ms. Campbell said some fees are Senator Bowen said that Secretary of State board is asking to go back to the term apprentice, excessively low. Fees have not been raised on Allison Lundergan Grimes was invited to this keeping all the measures, with one exception, for schools for years, and fees were lowered in the meeting to discuss legislative priorities of her a probationary barber. Currently a probationary aesthetics license. There is an issue with human office but declined the invitation due to other barber is required to take the barber exam within trafficking and unlicensed activity therefore commitments. He expressed disappointment six months. The board is asking for an extension larger fines should be a deterrent for this activity. that the meeting did not include testimony from from six to nine months. In response to a question from Representative her. The meeting folders include a copy of her At this time, the board does not plan to raise Koenig, Quincy Ward, board attorney, said the November 22 response letter to the committee any fees. The barbering industry is booming. main reason for requesting subpoena power is chairs in which she discussed the mission and In the past three years three new schools have that the board is facing enforcement issues and activities of her office and of the State Board opened. Two schools will be opening by the end other boards that are in the compliance business of Elections, plus legislative proposals for of 2107, and another school plans to open by and inspect establishment and enforce statutes consideration in the 2018 Regular Session. March of 2018. The board is currently testing have subpoena authority. The bill also gives the State Treasury - Status Report and monthly and issuing licenses within two days so board the power to seek a preliminary injunction Legislative Priorities people can begin working immediately. against unlicensed activity. With subpoena Guest speakers from the State Treasury In response to a question from Senator power the board could compel a business to were Allison Ball, State Treasurer; Noah Friend, Schickel, Ms. Minch said the bill does remove allow inspection of licensing documents and General Counsel; and O. J. Oleka, Chief of Staff. fees from statute. However, any fee raised will other records used in that business. Treasurer Ball discussed activities at the have a cap set in administrative regulation. There being no further business to come Treasury and initiatives that she hopes will be In response to a question from Representative before the committee, the meeting was adjourned accomplished in the coming year. She said her Thomas, Ms. Minch said the purpose of a wall at 11:34 AM office was able to resolve IRS-related issues that THE KENTUCKY GENERAL ASSEMBLY 21 potentially could have cost the state about $1 STABLE accounts at both the state and federal a year-long effort by him, the U. S. Department million. They worked with the Alabama state level is another major interest. There are efforts of Agriculture, and the thoroughbred industry, treasurer’s office to prevent an occurrence of wire at the federal level that would allow traditional China has lifted the ban on importation of fraud involving both Kentucky and Alabama. As 529 education accounts to roll over to Kentucky live horses from the United States, including a watchdog on spending, she is committed to STABLE accounts if a child becomes disabled quarterhorses and saddlebreds. This action has using the Treasury’s budgeted funds in the best and college is no longer possible. created economic opportunity for the Kentucky way. She cut the budget 4.5 percent when she Senator Schroder sponsored SB 179, horse industry. assumed office and in 2017 cut it an additional enacted in the 2016 Regular Session relating to Mr. Bilby said KDA has three main legislative 1 percent. For FY 2017-18, the Treasury so far ABLE accounts. He thanked Treasurer Ball for priorities for 2018. An executive reorganization has processed $227 billion in payments and her efforts relating to the ABLE and STABLE order has just been finalized to update the receipts for the Commonwealth, 10 million Kentucky programs. He said they encourage organizational structure and office names, and ACH (automatic clearing house) transactions, savings and are important to the disability KDA will propose a bill to codify the changes. and 5,000 or more wire transfers to the federal community. He also appreciates her efforts to KDA will also likely ask the General Assembly government totaling $37 billion. During last meet with other state officials and to inform the to consider other modernization efforts. Unlike year’s snowstorm when state offices were closed citizenry about the programs. most states, Kentucky does not have legislative the Treasury remained open in order to process Representative Wayne expressed appreciation authorization to issue Certificates of Free Sale, 50,000 checks to retired teachers. In connection to Treasurer Ball and her staff. Responding to his which are sometimes required for export of with their watchdog role, there have been questions, she said she employs about 30 people agricultural commodities. KDA believes it would instances when the Treasury has stopped checks, and has had no retirements within the past six be in the best interest of Kentucky industry to some of which are involved in pending lawsuits. months. Her employees seem to have a “wait have that authorization clearly stated in statute. Treasurer Ball said that transparency and see” attitude regarding recent proposed They may also propose revisions or updates to has been a major focus. She worked with the pension changes, and she does not see a reason statutes relating to livestock safety and disease Finance and Administration Cabinet to launch to be alarmed. When Senator Bowen pointed out control and regulation of motor fuels. the Commonwealth’s transparency website that the invited speakers were asked to discuss The second main priority for 2018 relates to (transparency.ky.gov). The state of Ohio spent their legislative agendas for 2018, Representative a transportation issue with significant impact on over $1 million to create a transparency website Wayne agreed to withhold his inquiries relating Kentucky agriculture. New federal regulations that is viewed as the gold standard. By using to pension reform. There were no further take effect in December 2017 relating to the existing relationships, contracts, and resources questions, and Senator Bowen thanked Treasurer electronic logging devices (ELDs) that are required Kentucky’s website was launched without Ball and her staff. for long distance truck operations. The devices additional spending. STABLE Kentucky is a Department of Agriculture - Status Report track the number of hours that a vehicle/driver savings and investment program available to and Legislative Priorities has been in service. The goal of the regulations Kentuckians with disabilities. Kentucky is one Joe Bilby, General Counsel, represented the is to ensure that companies and their employees of the first states to have this type program, and Department of Agriculture (KDA) on behalf are respecting hours-of-service limitations, as it was established without spending additional of Commissioner Ryan Quarles, who had a regulated by the federal Motor Carrier Safety taxpayer dollars. It offers a tax-free savings plan previous commitment out of town. Mr. Bilby Administration. Many agricultural producers in for disability-related expenses. Account holders said the Commissioner sends his apology and Kentucky cannot afford to install ELDs on their can save and invest without losing needs-based also extends invitations to two meetings— trucks. Agricultural producers are now exempt benefits, and family members and friends can the State Board of Agriculture meeting at the from the ELD requirement when carrying also contribute to the accounts. Frankfort campus on December 12 and the first commodities and farm supplies distances up Treasurer Ball said the top priority for the meeting of the Industrial Hemp Advisory Board to 150 miles. The applicable Kentucky statute, 2018 legislative session is the Revised Uniform (created by 2017 Senate Bill 218) on December which links to existing federal law, needs to be Unclaimed Property Act (RUUPA), which is an 13. The application window has closed for the updated because it specifies 100 miles instead of initiative to reform the Treasury’s unclaimed 2018 hemp growing season, and the number 150. KDA has been working with Representative property division. RUUPA is a uniform code that of applications received has increased slightly. James Tipton to draft an expansion of the is being developed by stakeholders and experts The Commissioner also advises that Russell Kentucky statute. They are working with him also nationwide. Last year the Treasury returned $25 Coleman, U. S. Attorney for the Western District on a joint resolution asking Congress to expand million in unclaimed property. The unclaimed of Kentucky, recently at a press conference praised the distance parameter to 200 miles, a change property function has not had significant updates federal and state law enforcement agencies that would be helpful to agricultural producers since the 1980s. Current law is unclear relating for their role in preventing theft of credit card in the state. When Senator Bowen asked why an to unclaimed property in some respects. RUUPA information at gas station skimmers. As a result exemption is needed for such a short distance, includes ideas to save money and cut red tape to of KDA gas pump inspections, eight or nine Mr. Bilby said that the federal regulations require make it easier for businesses and individuals to persons have either pled guilty or been convicted hours of service restrictions and documentation make claims. Mr. Friend said that the RUUPA of credit card theft, with projected savings of for certain classes of vehicles. legislation will be very detailed. It is intended thousands of dollars. The Commissioner urges KDA’s third legislative priority is a resolution to clarify and update unclaimed property law. everyone to notify KDA about any concerns relating to the Kentucky Hunger Initiative When the statute was written, bitcoin and online regarding theft at gas pumps. launched by Commissioner Quarles in 2016. The currency had not been anticipated. One example Commissioner Quarles returned recently resolution would ask state agencies to perform of proposed revisions is to no longer require from China, where he met with the U. S. a self-assessment of their food waste practices. businesses to send annual reports to the Treasury Ambassador to China Terry Branstad, Forty percent of food in the country is thrown if they have nothing to report. representatives of the Kentucky thoroughbred away, often after large scale events, including Improvements relating to 529 ABLE and industry, and Chinese government officials. After some that are sponsored by state agencies. The

22 2017 Interim LEGISLATIVE RECORD self-assessment was Senator Rick Girdler’s idea, the program has languished under previous audited. Without an audit, it is unclear whether and KDA hopes to work with him on drafting agriculture commissioners but has already been data in a UFR is accurate. The Kentucky League of the resolution. monitored twice since Commissioner Quarles Cities agrees with the Auditor’s recommendation Representative DeCesare inquired about assumed office. to tighten up the governing statute. Some of the regulations relating to zip lines and conversion Representative Scott said she is very cities currently being examined have not been of agricultural structures into event venues. He interested in the Hunger Initiative. She audited since 2009, and plans are underway to said he understands that new laws or regulations asked what type questions might be on the do those audits. have become more stringent. He has heard from self-assessment for state agencies and what Auditor Harmon said his office generally constituents, and he is interested in helping subsequent action might be taken. Mr. Bilby said performs about 600 audits annually, including farm owners open event type facilities without the actual questions have not been determined, the confidential annual financial report (CAFR) compromising safety. Mr. Bilby said they worked and they have not yet met with Senator Girdler. and the statewide single audit of Kentucky. They with Representative Suzanne Miles on agri- However, they would not want the questions to audit county and circuit clerks, sheriffs, fiscal tourism legislation enacted in 2017 (HB 360) that create a huge new paperwork assignment for courts, PVAs and others. His office recently excused landowners from complying with some state agencies. He believes they will probably released an audit of the Jackson County fiscal of the more stringent provisions of the building want to develop a list of 6-10 comments and court for both FY 2015 and FY 2016 that resulted and housing codes. KDA would welcome the questions for the assessment and would welcome in 40 findings in the first year and three additional opportunity to discuss whether further changes any suggestions from Representative Scott. the second year. That audit also resulted in a may be needed. Representative DeCesare said Hopefully, state agencies would make an effort referral to law enforcement relating to theft by that meeting required upgrades for certain size to benefit local shelters with the extra food. Due the former Jackson County treasurer. They also facilities can be difficult for landowners, such as to the nature of the business, the greatest waste perform special exams. After examination of requiring sprinklers when there is no available often happens after events at large hotels like the University of Louisville and the University water source. He would like to see everyone the Galt House. State agencies are sometimes of Louisville foundation, they subsequently involved discuss possible alternative solutions. involved in planning dinners for those events. proceeded with the audit opened by the previous Regarding zip lines, Mr. Bilby said that in 2016 There is opportunity for state government to state auditor. There were a number of findings, the General Assembly enacted a law requiring consider best practices and set an example for including a major lack of transparency and the Department of Agriculture to promulgate the private sector. Senator Bowen agreed that it is questionable use and management of endowment administrative regulations relating to aerial a timely and important topic. He encouraged the funds. Auditor Harmon said the audit was done recreational devices and zip lines. In response involvement and participation of the committee at minimal cost to the taxpayer, and he believes to concerns raised at three open public meetings members. it provided a good roadmap for the university that were well attended in the summer of 2017, Representative Bechler, who represents going forward. KDA made significant changes to the initial House District 4, expressed thanks for The Auditor’s Office also proceeded with draft regulation. They have received quite a few Commissioner Quarles’ recent visit to that a financial statement audit of the Louisville comments since the regulation was promulgated western Kentucky district. Arena Authority at the request of the Capital and considered by the Administrative Regulation There were no further questions, and Senator Projects and Bond Oversight Committee. It Review Subcommittee in early November. Bowen thanked Mr. Bilby for speaking to the found that 75 percent of the revenue for the However, they would welcome any additional Committee. Arena Authority came from taxpayers and only comments. Auditor of Public Accounts - Status Report 25 percent from arena revenue. It also found Representative Wayne asked whether KDA and Legislative Priorities that the Arena Authority received 3 percent of has met with representatives of amusement Guest speakers were Mike Harmon, Auditor suite licensing fees, while 97 percent went to parks and is planning to develop legislation that of Public Accounts, and Sara Beth Gregory, chief the University of Louisville athletic association. would apply specifically to them. He said he has of staff. Auditor Harmon said he is pleased that after heard from representatives of the industry—the Mr. Harmon discussed past enacted the audit the Arena Authority’s bond rating rose largest being Kentucky Kingdom—and they legislation in which his office was involved— from junk to investment grade, which will help are concerned that some of the regulations Senate Bill 63, “Sexual Assault Forensic Evidence save millions of dollars for the Authority and the and statutes relating to county fairs should not (SAFE) Act of 2016”; Senate Bill 168 (2016 RS), taxpayers. The Auditor’s Office also did a special apply to amusement parks. Mr. Bilby said they which clarified the Auditor’s role in audits of city exam of the Kentucky Horse Park, at the request have heard from representatives of Kentucky governments; and House Bill 189 (2017 RS), a of Senator Damon Thayer and the secretaries Kingdom about their desire to revisit the statutes transparency bill relating to area development of the Tourism Cabinet and the Finance and to determine whether there should be different districts. Going forward into 2018, he said the Administration Cabinet. standards for county fairs and permanent Auditor’s Office wants to ensure that its budget Auditor Harmon said that some of their structures like Kentucky Kingdom; however, is sufficient to continue their work and be able to current work is focusing on the Fire Commission, they have not submitted any recommended address additional concerns and questions that the Administrative Office of the Courts, and two changes at this time. He said the Department may be brought to their attention. His office tries city audits, At the beginning of next year they would welcome the opportunity to meet to serve as a resource for county officials and has will be assisting the Commercial Mobile Radio with Representative Wayne and industry been looking at ways to help county governments Service Emergency Telecommunications Board representatives. Representative Wayne said he save money. (CMRS) to complete its FY 2014-2017 audits. appreciates Mr. Bilby’s openness and will contact Auditor Harmon said he will be He said his office has no shortage of requests. Ed Hart, CEO of Kentucky Kingdom. recommending legislation to close a loophole Concluding his presentation, he stated that last Representative Wayne commended KDA for in certain statutes. Cities that file a uniform year the Auditor’s Office received the highest its work on the PACE (Purchase of Agricultural financial report (UFR) are allowed to receive state possible rating from its peers in the National Conservation Easements) program. He said road and other funds even if they have not been Association of State Auditors, Comptrollers and THE KENTUCKY GENERAL ASSEMBLY 23 Treasurers. sexual assault examination kits in the possession of the committee who had requested the Senator Bowen inquired about potential of Kentucky law enforcement and prosecutorial opportunity for public comment. penalties that might result from audit findings agencies. He said that during his campaign for Senator Schroder said he has had a good other than loss of a job. Auditor Harmon said Auditor, his predecessor Adam Edelen asked working relationship and good legislative policy indictments and guilty pleas have resulted in him to continue work on that issue if he won discussions with Secretary of State Grimes in the some instances, but they are not an enforcement the election, and he said he would. Along with past, but he is disappointed that no one from agency. The lion’s share of their work is to help legislators and stakeholders, the Auditor’s Office her office is present. He said he has a question counties—and to certain extent cities—to “stay has continued to lend its support. Ms. Gregory about the legislative agenda mentioned in her within the guardrails.” said that Senator Harper Angel and Senator November 22 letter to the committee chairs. He Representative Nemes asked about follow- Whitney Westerfield deserve credit also for feels that early voting and “boots to business” are up to the University of Louisville audit and clearing the way on pertinent legislation. appropriate issues for proposed legislation by a whether the new university administration had Representative Wayne said that the audit of secretary of state, but he does not understand cooperated with the Auditor’s Office. Auditor the Louisville Arena Authority, which oversees how legalization of medical marijuana is a Harmon said there have been discussions, and he the financial process of the KFC Yum! Center, relevant issue for Secretary Grimes’ office. He believes the university administrators have made revealed that the Yum! Center does not follow is not aware of any constitutional or statutory their best effort to use the initial judgment filing the state procurement code and is not subject authority that would include that issue within as a roadmap to move forward. Ms. Gregory said to the Executive Branch Ethics Code. A private her purview. He said it is unfortunate that no their office receives a 60-day corrective action accounting firm is auditing both the Yum! one from her office is present and that he would plan as a follow-up on special examinations Center and the Kentucky Exposition Center, welcome any answers from the Secretary’s office. but, without doing additional work, they cannot and The Yum! Center owes a considerable Senator Bowen said he is also concerned that the assure that the university has complied with amount of money to the Exposition Center. Secretary is not present to discuss her legislative all recommendations and potential corrective He asked whether the Auditor’s Office plans agenda. actions. Representative Nemes said he would to follow up with the legislature to remedy Representative Graham said he wants the hope that the Auditor’s Office might be able to problems that were exposed. Ms. Gregory said meeting record to reflect that Secretary Grimes follow up to determine whether proper steps the items mentioned were incorporated in the sent a letter explaining that she could not attend have been taken by the new administration. original budget bill that approved creation today’s meeting because of a scheduling conflict Representative Nemes inquired about the of the Louisville Arena Authority. For some and that the letter also included information audit of the Administrative Office of the Courts. reason, that budget language was not included in about her legislative agenda for 2018. Ms. Gregory said it is ongoing. As with any subsequent budget bills and is also not codified Representative Nemes expressed thanks that audit, if they see evidence of “red flags” or areas in statute. It is a “murky” legal question whether Secretary Grimes sent a letter. He said he hopes of concern that need further review, they will noncodified budget language continues to be she can be invited to a meeting in January so that broaden the audit’s scope as needed. binding on an entity in the future. The Auditor’s she can answer questions about her legislative Representative Moffett said he is concerned Office has pointed out that the transparency agenda. When he asked whether Attorney about the fiscal health of some counties and measures originally put in place may have been General Beshear had been invited to today’s cities. He asked whether the Auditor’s Office allowed to lapse. They felt it was important meeting, Senator Bowen said that he was not. does any financial tracking that might predict to bring this to the attention of policymakers There being no further business, the meeting potential bankruptcy of those entities. Auditor because it could happen again in the future. was adjourned at 2:30 p.m. Harmon said that financial statement audits Whether those provisions have legal effect would can sometimes indicate concerns. Counties are have to be determined by the courts. She said it INTERIM JOINT COMMITTEE ON required to pay for their audits, and his office would be the legislature’s prerogative to address TRANSPORTATION tries to work with counties that are struggling this, but she does not know the appropriate Minutes of the 6th Meeting to make their payments. Ms. Gregory said window of time, in view of the refinancing that of the 2017 Interim that audits by their nature are retroactive, is currently underway. Representative Wayne November 7, 2017 and it is not necessarily in their bailiwick to asked whether the Auditor’s Office would be able Call to Order and Roll Call make projections. They work closely with the to assist in developing appropriate corrective The 6th meeting of the Interim Joint Department for Local Government (DLG), the legislation. Ms. Gregory said she does not have Committee on Transportation was held on regulatory oversight body for counties. DLG all the answers but would be happy to engage in Tuesday, November 7, 2017, at 1:00 PM, in Room staff work with the county treasurers and fiscal the conversation and contribute to the dialogue. 149 of the Capitol Annex. Representative Marie courts on budgetary problems. When an audit Representative Wayne said that the increase Rader, Chair, called the meeting to order, and reveals serious financial concerns, they are in the bond rating was only a fraction and, the secretary called the roll. The minutes from brought to the attention of DLG so that they can according to the Wall Street report, was based on the Committee’s October 3, 2017 meeting were be addressed on an ongoing basis. In response the enthusiasm of Cardinal fans. He commended approved. to another question from Representative Moffett, Auditor Harmon for doing a fine job in the audit Present were: Auditor Harmon discussed the budgetary and examination. Members: Senator Ernie Harris, Co-Chair; fee structure of the Auditor’s Office. There were no more questions, and Senator Representative Marie Rader, Co-Chair; Senators Representative Scott inquired about the Bowen thanked the speakers. He said the state’s Joe Bowen, C.B. Embry Jr., Jimmy Higdon, Paul Auditor’s involvement with the rape kit issue. constitutional officers do important work and Hornback, Gerald A. Neal, Dorsey Ridley, Albert Auditor Harmon said that when he served in that receiving their testimony is valuable to the Robinson, Brandon Smith, Johnny Ray Turner, the General Assembly he supported SJR 20 Committee. and Mike Wilson; Representatives Lynn Bechler, (2015 RS), which directed the Auditor of Public Other Business Tim Couch, Ken Fleming, Chris Fugate, Al Accounts to report on the number of untested Senator Bowen recognized three members Gentry, David Hale, Chris Harris, Toby Herald,

24 2017 Interim LEGISLATIVE RECORD Dennis Horlander, Kenny Imes, Dan Johnson, regulatory activities, water supply, water quality, assist with safe dam operations, a contractor is James Kay, Donna Mayfield, Suzanne Miles, hydropower, environmental conservation, and on sight 24 hours a day, seven days a week to Robby Mills, Tim Moore, Rick Rand, Steve restoration, recreation and emergency response. assist lock and dam 52 employees, and make Riggs, Sal Santoro, John Sims Jr, Jim Stewart III, The Louisville Districts civil works boundary repairs when conditions allow. Currently the and Walker Thomas. includes 20 multipurpose flood reduction and third rock installation contract is underway. Guests: Colonel Antoinette Gant, U.S. recreation reservoirs and ten locks and dams The rock dikes will allow for the fixing of four Army Corps of Engineers, Louisville District, (two along the Green River and eight along holes in the navigable pass section, and there Sharon Bond, Chief of Planning, Louisville the Ohio River.) From this general navigation have been multiple miscellaneous contracts for District, Sara Konish, Strategic Initiatives profile of the mainstream of the Ohio River from hydraulic repair. During a recent 14 day closure, Specialist; John Moore, Executive Director, Pennsylvania to Southern Kentucky, nine of the an $8M impact was identified by the ship carriers Division of Planning, KYTC, Lynn Soporowski, 20 locks and dams (including locks and dams but it goes further. Total river closures in 2017 Transportation Engineering Branch Manager, 52 and 53 which will be replaced by Olmsted) have had an estimated impact of over $35M to Multi-Modal Programs Branch, KYTC, Greg are within the Louisville footprint. Among the nation. Pritchett, Port Director, Henderson Riverport this network however many of the aging locks However, the Olmsted project is near Authority; Robbie Englert, Senior Vice President and dams located on the upper Ohio are at risk completion. Once Olmsted is operational, of Operations, Crounse Corporation, Justin of failure after decades of underinvestment, locks and dams 52 and 53 will be demolished. Dickens, Manager, Risk and Administration, potentially causing significant adverse impacts The Olmstead project is ahead of schedule Crounse Corporation. to the national economy. and under budget. All precast concrete on the LRC Staff: John Snyder, Brandon White, Specific to Louisville, the average age of project is complete. Remaining critical low Dana Fugazzi, and Christina Williams. the navigation infrastructure along the river is water season activities include tainter gates Presentation on Kentucky Locks and Dams approximately 46 years old, nearing their 50 year bay number five unwatering (side seals and sill Colonel Antoinette Gant, U.S. Army design life. There are many commodities that are installation), completion of left boat abutment Corps of Engineers, Louisville District, gave moved throughout the basin via the locks and cast-in-place concrete, removal of Illinois side a presentation on Kentucky’s locks and dams. dams. As far as the economic impact of this, of left boat abutment cofferdam, and set/tremie She stated the Louisville District is one of seven an average of over 22 billion dollars’ worth of of navigable pass-12A. Key pieces of the puzzle districts within the Great Lakes and Ohio River commodities are shipped through the highest that allowed such progress have been efficient Division commanded by Brigadier R. Mark traffic area of the Ohio River. Barges on the funding, advantageous river conditions which Toy with headquarters in Cincinnati, Ohio. The Ohio River can move a ton of commodities 550 have allowed the work to expand beyond the Huntington, Nashville and Louisville Districts miles on one gallon of fuel, as compared to 400 contractual low water season (15 Jun – 30 Nov) all provide planning, design, and construction miles on railroads, and 150 miles on trucks, an and partnerships with the navigation industry, management support to communities and to efficiency which results in reduced fuel emissions. which contributes through a fuel tax. Colonel the Commonwealth for water resources projects Waterway transportation also alleviates highway Gant shared a few photos which described the under the Civil Works program. The Memphis congestion. A 15 barge tow, common on the complexity of this $3 billion project. District which is a part of the Mississippi Valley Ohio River, has the same capacity as over 800 Colonel Gant stated while there is excitement Division, also works within the Commonwealth trucks, and over 200 railcars. This reduction in surrounding the completion of Olmsted, they of Kentucky in southwestern Kentucky on transportation cost translates to lower end-user still recognize that there are issues throughout the Mississippi River. Established in 1886, prices for goods transported on the waterway, the basin, outside of navigation. With that, along the Louisville district has a total workforce of including decreased energy costs from coal. with other sister river districts and the division, approximately 1,250 people in the five-state Colonel Gant stated that the top five Ohio they are seeking to address such issues with a area of Kentucky, Indiana, Illinois, Ohio and River Commodities by tonnage are coal, grains, basin-wide approach. The recent partnership Michigan. In addition to the headquarters in aggregates, chemicals, and petroleum. She added between the Ohio River Basin Association and Louisville, the Louisville District also has 60 field that when most discuss the Ohio River especially the Ohio River are steps in the right direction offices. The over 95 percent civilian workforce in the navigation industry, there is one stretch in assisting the Corps and others in efforts to is made up of professional engineers, architects, of the river that is always mentioned, locks identify strategies and priority actions which planners, biologists and other specialist and and dams 52 and 53. This strategic reach of the can be addressed using a interrelated voice. support staff. The Louisville District is one of the Ohio River provides a connection between the Colonel Gant stated they just concluded their Corps of Engineers most diverse districts that Mississippi River, the Tennessee River, and the first Ohio River Basin Tour in Pittsburgh to include military construction, environmental, Cumberland River. More tonnage passes this replicate the Great Lake Restoration Initiative and civil works missions. The Louisville District’s point than any other place in America’s inland for the Ohio River. This initiative will continue military mission is in support of the 12 Army navigation system. And while it’s the busiest, with Huntington and Louisville Districts over installations, five Air Force installations, several it is also one of the oldest. Completed in 1928 the next two years. She added they are excited to other Department of Defense facilities, and a and 1929, the antiquated design and age of these announce The Ohio River Basin Climate Change program of project, design, and construction structures make it impossible to meet current Adaptation/Mitigation Strategies Pilot Study management in support of the Army and Air traffic demands without delays. The existing sponsored by the Institute for Water Resources, Force Reserve military construction program structures have deteriorated structurally as was featuring climate modeling for anticipated for the entire United States and it territories. The shown in pictures, and are overstressed during precipitation and temperature changes environmental mission is focused on cleanup of normal operating conditions. In just FY 2017 through 2099 as well as adaptation strategies Department of Defense site contamination to alone, the Corps of Engineers has invested for infrastructure and ecosystems that may be protect public health and safety, and the $13.2M to repair, operate and maintain locks impacted by these forecasted changes. Efforts environment. Lastly the Civil Works Mission and dam 52 (normally $2.5M for high lift such as this help to establish a baseline of current includes flood risk management, navigation, facilities). Constructors installed anchors to conditions that will advance all future planning THE KENTUCKY GENERAL ASSEMBLY 25 activities and provides a common operating Transportation Engineering Branch Manager, 140 shall not exceed $15,000 per project or picture basin wide. Colonel Gant concluded Multi-Modal Programs Branch, KYTC, and Greg $30,000 per port per year and the project shall be with the mission at the Louisville District, which Pritchett, Port Director, Henderson Riverport completed within one year of the funding, with is to deliver solutions and manage resources Authority, gave a presentation on the Kentucky the applicant having at least a 50 percent match. supporting regional and national requirements Riverports. Ms. Soporowski stated that Kentucky Ms. Soporowski stated that Kentucky is utilizing the best engineering practices and currently has eight operating public riverports, working with Fortune 500 companies to try strategic partnerships to reduce disaster risk, four that are developing, and two that are in to bring them into the state, however, in the strengthen the economy, and support national question. She stated that in FY 2016 there was Kentucky Constitution (section 164) it states security. a return on investment of 422 percent for the that no county, city, town, taxing district, or In response to a question asked by Senator project list. In FY 2017 the unfunded amount other municipality shall be permitted to make Bowen concerning the other locks and dams on significantly increased, yet there was a still an any contract for a term exceeding twenty years. rivers other than the Ohio River, Colonel Gant excellent return on investment of 212 percent Before granting such franchise or privilege the stated that along the Green River, there are two for the project list. She added in FY 2018, fewer municipality shall first, after due advertisement, for which the Corps has primary responsibility. projects were able to be funded and still had a 225 receive bids therefore publicly, and award the Sharon Bond, Chief of Planning, Louisville percent return on investment on those projects. same to the highest and best bidder. This section District, stated there has been a disposition that Ms. Soporowski provided charts that showed does not apply to a trunk railway. This portion of some of those locks and dams are no longer in how much of the $500,000 a year that has gone to the Kentucky Constitution has not been revised operation. She added that locks and dams three the public riverports for maintenance of access since September 28, 1891. Ms. Soporowski through six on the Green River and one on and dredging has been allocated to activities stated the problem with a franchise limit of 20 the Barren River are no longer being used for such as pavement projects, rail projects, cranes, years is that businesses want and need long term navigation. A disposition study was done and conveyors, scales, dredging, barge access, dock agreements to make their private investment there was legislation passed by Congress that improvements, and security from FY 2013 lucrative. directed the disposition of those properties in to FY 2018. She added because of the way the Ms. Soporowski gave an overview of some 2016. She added for the Kentucky River, they funds were distributed as a line item in the of the projects that KYTC has dealt with over have transferred locks and dams five through transportation budget, some of those funds the past few years including the FY 2016 and fourteen to the Kentucky River Authority. were lost. There was a project in FY 2013 that FY 2017 Eddyville-Lyon County Riverport Another disposition study is being done at locks was canceled late in the process because the and Industrial Development Authority with and dams one through four on the Kentucky railroad decided not to participate. Because expanded truck queuing and improved grain pit River and it is yet to be determined who those of that, $50,000 was lost to the riverports and access and technology. She also gave an overview would be turned over to in the future. went back to the General Fund. The Riverport of the FY 2016 Greenup-Boyd County Riverport In response to a question asked by Financial Assistance Trust Fund was created Authority with included 4 railroad crossings Representative Fleming concerning safety, in FY 2010 and Ms. Soporowski stated they and 176 cross-tie replacements. The FY 2017 specifically levee safety, Colonel Gant stated the propose that this is where these funds need to Henderson County Riverport Authority also district has a dam safety and levee section and go. They allow for the funds that are canceled to had a dock crane restoration project. In FY 2014, it is their responsibility to inspect those levies again be used by the riverports, not lost. It will 2016, and 2017, the Hickman-Fulton County and dams in the district and report back with also streamline the auditing process and allow Riverport Authority funded dredging for slack critical issues. She added the criticality rating for longer term planning and larger construction water harbor. Hickman, and Fulton County will determine the types of funding that is used projects. The Riverport Financial Assistance also replaced a 40 year old crane that increased for the repairs. She added at this point, she is Trust Fund will be administered by KYTC capacity by 150 percent, as well as replaced unaware of any criticality which would result in and may receive appropriations, federal funds, conveyors from 1974 that also increased capacity complete failure. contributions, gifts, and donations. The purpose by 150 percent. The Louisville Jefferson County In response to an additional question asked by of the trust fund is to improve riverport facilities Riverport Authority, from FY 2013 through Representative Fleming concerning the district’s and infrastructure, to capture the economic and FY 2018, completed rail rehabilitation and relationship with Homeland Security, Colonel trade potential, but shall not include routine replaced 1,770 cross ties with new plates, spikes, Gant stated the district has a responsibility to be operations, and maintenance. Also, according to anchors, and ballast. The rail rehabilitation was able to communicate with Homeland Security notwithstanding KRS 45.229, moneys remaining particularly important due to the approximate where there are issues. She added the Emergency in the fund shall not lapse but shall carry 225,000 tons of throughput of material such as Operations Center is in contact with Homeland forward and interest earned shall accrue to the petroleum coke, clay, coal, and coils to name a Security regularly sharing information. fund. There is also a minimum of a 20 percent few. The Owensboro Riverport Authority in In response to a question asked by match, but can be set at a 50 percent match, FY 2017 performed a project for security on an Representative Miles, Sara Konish, Strategic depending on the funds that are available. The inner loop road which provides single access Initiatives Specialist, stated The Water Authority Riverport Marketing Assistance Trust Fund is points for external traffic, secures the entrance has leased the Rochester Dam property for what to be administered by the Cabinet for Economic (gate) 24 hours a day, seven days a week, and she believes is a twenty year lease. The authority Development. This fund may also receive 365 days a year. This project also included a has been in contact with the district about appropriations, federal funds, contributions, detour to the guard building and safe parking for changes and improvements they would like to gifts and donations. The purpose of this fund is truckers. Ms. Soporowski stated other projects make, and they have worked closely with them to to promote and market Kentucky’s riverport to that Owensboro has done has included a 40,000 accommodate any changes they have requested. industrial, businesses and commercial prospects, square foot tolling and storage facility, and an Presentation on Kentucky Riverports to attract economic development. Money shall 100,000 bushel storage and conveyor upgrade John Moore, Executive Director, Division also be carried forward into the succeeding fiscal for Bunge North America. With those two of Planning, KYTC, Lynn Soporowski, year. Grants under the section of KRS 1584.80- projects, Solvay and Bunge, Kentucky invested

26 2017 Interim LEGISLATIVE RECORD approximately $150,000 to $160,000, however Englert stated there are seven or eight employees Solvay and Bunge invested over $25 million. operating a boat and they work on the boat 21 INTERIM JOINT COMMITTEE ON In FY 2017 The Paducah-McCracken County days at a time and then they are off for 21 days. AGRICULTURE Riverport Authority completed dock dredging, These jobs are career path oriented leading to Minutes of the 6th Meeting as well as obtaining new truck scales, and possible positions of becoming an engineer, a of the 2017 Interim conveyor refurbishment. wheelhouse/pilothouse or captain on a boat November 8, 2017 In conclusion, Ms. Soporowski stated which requires coast guard credentials to operate Call to Order and Roll Call Kentucky’s public riverports need allotments the boats. Being a Kentucky based corporation, The 6th meeting of the Interim Joint to be put in The Riverport Financial Assistance Mr. Englert stated they move a lot of coal, some Committee on Agriculture was held on Trust Fund per KRS 1747.210, for limits to from riverports that were mentioned earlier. He Wednesday, November 8, 2017, at 10:00 AM, in be eliminated on contracts per the Kentucky also added that the corporation moves about 30 Room 149 of the Capitol Annex. Representative Constitution Section 164, and an increase in million tons of material a year, most of which is Richard Heath, Chair, called the meeting to funding to improve Kentucky’s economy. coal and aggregate. Together with other service order, and the secretary called the roll. In response to a request by Representative providers and barge lines and terminal people, Present were: Riggs, Mr. Pritchett stated that other communities congressional district one has approximately Members: Senator Paul Hornback, Co- that do not have riverports still benefit from them 7,000 jobs in the river transport industry. He Chair; Representative Richard Heath, Co-Chair; due to the raw materials that are disbursed all added Kentucky is fifth highest in the nation Senators C.B. Embry Jr., Stan Humphries, Dennis throughout the Commonwealth that are brought for the number of employees in the maritime Parrett, Dorsey Ridley, Damon Thayer, Robin L. in by using those riverports. Ms. Soporowski industry. Webb, Stephen West, and Whitney Westerfield; also added that the environmental footprint is Mr. Englert stated one barge can hold 16 rail Representatives Matt Castlen, Myron Dossett, reduced due to the usage of riverports as well. cars and the biggest gondola cars are 100 ton cars. Derrick Graham, David Hale, Mark Hart, Senator Bowen acknowledged the manager He added that fifteen, 150 car unit trains will only Angie Hatton, James Kay, Kim King, Suzanne of the Owensboro Riverport Brian Wright who fill up nine or ten barges and they move 15 of Miles, Sannie Overly, Jason Petrie, Phillip Pratt, was in attendance and thanked him for his them at a time. To further elaborate the amount Rick Rand, Brandon Reed, Steven Rudy, Dean dedication and hard work. He also reiterated of materials being moved, Mr. Englert stated Schamore, Wilson Stone, Walker Thomas, James Representative Riggs point as to the many 1,000 tractor trailers on the road would fill up one Tipton, and Tommy Turner. benefits of riverports across all communities in barge. Mr. Englert stated a newly implemented Guests: Warren Beeler, Governor’s Office of the Commonwealth. regulation stated the vessels must be inspected Agricultural Policy and Marielle Manning, Public Co-Chair Harris stated he believes as we which makes this mode of transportation even Relations, Governor’s Office of Agricultural look forward in the Transportation budget, more safe. Mr. Englert stated there is over 20,000 Policy; Mark Haney, Kentucky Farm Bureau, that there will continue to be money being put miles of navigable waterways in the United States Eddie Melton, 1st Vice President, Kentucky into developing all modes of transportation, therefore, water transportation has an important Farm Bureau, Commissioner Ryan Quarles, riverports included because all of the modes of part to play in the well-being of the country. Kentucky Department of Agriculture; Tamara transportation are integrated and critical to the In response to a question asked by Co-Chair Sandberg, Kentucky Association of Food Banks; success of Kentucky businesses. Harris concerning a possible increase in barge Representative Melinda Gibbons Prunty; Chuck In response to a question by Senator traffic from the Panama Canal, Mr. Englert Courtney, Green River Loggers Council, and Bob Higdon concerning the need for a constitutional predicted that there will be an increase in barge Bauer, Kentucky Forest Industries Association. amendment to change the 20 year franchise traffic, however, there will need to be an inter- LRC Staff: Stefan Kasacavage, CSA, Kelly law, Ms. Soporowski stated that the need for a modal place where rail, truck, and barges can all Ludwig, Nathan Smith, and Susan Spoonamore, constitutional amendment is what attorneys distribute containers, and that key place has not Committee Assistant. have told her would need to happen in order to yet been located. The October 6, 2017 minutes were solve this issue, however she stated she is open Senator Smith elaborated on the concern approved, without objection, upon motion to other ways to expand the time limit on the of the river capacity due to the shallowness of made by Representative Reed and seconded by franchise law. certain waterways. He also questioned who is Representative Thomas. Presentation on the Kentucky Waterways responsible for maintaining the various locks Legislative Issues for 2018 Regular Session Industry and Local Impact and dams. Mr. Englert stated that in the river Warren Beeler, Executive Director, Robbie Englert, Senior Vice President of transportation industry they pay 29 cents Governor’s Office of Agricultural Policy stated Operations, Crounse Corporation, and Justin per gallon on every gallon of fuel that is used that in 1998 there were 46,000 tobacco farmers Dickens, Manager, Risk and Administration, for propulsion. He added they are the only in Kentucky and now there are only 4,600. He Crounse Corporation gave a presentation stakeholders that pay into the waterway trust said that of the $87,000,000 General Assembly on the Kentucky Waterways industry and its fund, and then the federal government matches Budget, half went to Agriculture and the local impact. Mr. Englert stated the Crounse those funds which are then used for projects other half went to Healthcare and Childhood Corporation is a Paducah, Kentucky based barge that Colonel Gant and the Louisville District Development. line that was founded by George Crounse in 1948. oversees. Mr. Beeler stated that from 1990 to 2015, The Crounse Corporation has approximately 300 With no further questions to come before agriculture had seen major changes. For employees. Mr. Crounse chose Paducah as the the Committee, Chair Rader adjourned the instance, he said that the poultry market and headquarters for the Crounse Corporation due meeting at 2:07 P.M. production had increased from about 1 percent to the close proximity to the Ohio, Tennessee, to approximately 33 percent. Mr. Beeler stated Cumberland, and Mississippi Rivers. The that in ten years, poultry could be the second Crounse Corporation operates approximately 34 biggest industry in agriculture. tow boats and a fleet of about 1,150 barges. Mr. Mr. Beeler said that the total KADF Project THE KENTUCKY GENERAL ASSEMBLY 27 and Program Investments was approximately He said that Kentucky agriculture sectors had Kentucky Proud continues to grow with over $542,513,602. He said that the direct reached record cash receipt levels at a time when 6,000 members. He said that very soon Kentucky investment into the Kentucky Agricultural the nation suffered through a recession. He stated Proud beef products will be sold in Kroger Finance Corporation was $45,250,000 and the that farmers are now beginning to see lower net grocery stores. investments had been receiving a monthly return farm income because of the commodities market Commissioner Quarles noted that the KDA of approximately $500,000. He stated the KAFC and price swings. He explained that farmers are would be instituting another budget cut. The had made over 800 loans totaling $108,000,000. repeatedly asked to do more with less and farmers KDA will continue to do with less and remain Of the 800 loans, there were only five bad loans. are continuing to meet that challenge with the efficient and transparent. He said that KDA Mr. Beeler said that based on an evaluation made help of the Governor’s Office of Agricultural would be implementing a reorganization process by the University of Kentucky, over seventy-nine Policy and its programs. to help streamline the Department. He said that percent of lenders would not have funded a Mr. Haney said that the Resolutions the KDA is looking to file a modernization bill project without the participation of the KAFC. Committee of Kentucky Farm Bureau would be which will reflect the reorganization process, and Mr. Beeler said that one of the greatest recommending and reaffirming prior legislative also a cleanup bill that will either fix or eliminate projects ever funded by KAFC was the issues. He pointed out that investments always old language concerning the KDA’s Consumer Hopkinsville Elevator Company (HEC). He need to be made, even in the hardest of times, and Environmental Protection division and the noted that in 2001, the HEC project was approved in order to get back a significant return as it Office of the State Veterinarian. Commissioner for $6.5 million of state and county funds. In relates to the budget of the Commonwealth of Quarles pointed out that the KDA would 2017, the co-op returned $39.5 million to 4,000 Kentucky. He said that funding for soil erosion like to see a law passed allowing the KDA to stockholders. He said that Chaney’s Dairy Barn and water cost share programs and conservation issue certificates of free sale. Another issue the was the best example of a farm utilizing KADF are important issues for agriculture. Mr. Haney KDA would like to see addressed related to and KAFC programs. The Chaneys purchased stated that it was also important to fund the the electronic logging devices on semi-trucks. robotic milkers, received grants for storefront Kentucky Department of Agriculture. He said The federal law allows 150 air radius miles but construction and building expansion, acquired that if tax reform is taken up for discussion Kentucky only recognizes 100 air radius miles. a cost-share grant for a compost barn, and during the 2018 Regular Session, Kentucky Farm He said that KDA would support a Grape and through an On-Farm Energy program grant Bureau stands ready to work with the General Wine Council bill that would reflect modern they purchased and installed energy efficient on this issue. Kentucky Farm Bureau supports operations within the wine communities across fans and lights. Another project investment that the long-standing issue of maintaining a tax the state. He said that KDA would also support has a business success rate of eighty-six percent exempt status for agriculture. Kentucky Farm a resolution allowing the KDA to take a deeper is the Kentucky Center for Agriculture and Rural Bureau also supports maintaining the current look at food service and food waste through self- Development. The Center provides technical provisions of HB 44, which limits the amount assessments within the state agencies, and would assistance, business planning, and has assisted in of property tax revenue to 4 percent plus new support a rural jobs bill to provide a streamline the establishment of 104 farmer-owned LLC’s, 17 growth. Mr. Haney said the rural, secondary, and tax and credit incentives for rural counties. non-profit organizations, and 25 cooperatives. county road fund is important. He said that rural Commissioner Quarles also mentioned that the Mr. Beeler said that state recipients of communications, broadband, and high speed veterinarian school partnership agreements with KADF are the Kentucky Dairy Development internet, are imperative for rural farmers to be Auburn and Tuskegess universities need to be Council, Kentucky Beef Network LLC, Kentucky able to advertise and conduct business. Wildlife preserved. Horticulture Council, Kentucky Proud, the population management continues to be an issue Commissioner Quarles stated that there are University of Kentucky (Research Foundation), in farming communities. still 1 in 6 adults and 1 in 5 children suffering and the Kentucky Agricultural Finance Commissioner of Agriculture, Ryan Quarles, from food insecurity. The food immunity bill has Corporation. stated that the United States recently resumed helped grocery stores in donating food without In response to Senator Hornback, Mr. Beeler trade with China for U.S. horses. The trade fear of a lawsuit. Some corporate entities have stated that funds from tobacco companies, based agreement will allow Kentucky to once again stepped up by donating 156 chest freezers, with on cigarette sales, flow in to the general fund benefit from trade with China. Commissioner one to be placed in each county food pantry. and are then distributed – half is allocated to Quarles said that discussions were also held In response to Senator Humphries, agriculture and half to healthcare and childhood regarding the export opportunity for U.S. beef; Commissioner Quarles stated that he had talked development. Mr. Beeler stated that there was particularly Kentucky beef, and Kentucky with federal officials concerning the proposed approximately $4 million in unused funds that hardwood. He said that Kentucky was still nicotine reduction regulation in dark-fired had been set aside for water and sewer debt looking at signing similar protocols concerning tobacco and is waiting for an official statement. payments. Of that $4 million, 35 percent of the feed and feed additives, as well as soybean Tamara Sandberg, Executive Director, funds, approximately $1.5 million, are allocated exports. Kentucky Association of Food Banks, explained to county funds and 65 percent of the funds, Commissioner Quarles stated that there is that the Association is made up of the seven approximately $2.5 million, are allocated to a lot more momentum with alternative crops. Regional Feeding America affiliated food banks the KADF as state funds. Mr. Beeler stated There are approximately a dozen kenaf growers that serve all of Kentucky’s 120 counties in that the additional $4 million in unused funds and 200 industrial hemp growers. He said that partnership with 800 local food pantries. She for water and sewer debt payments has not yet some Kentucky-grown kenaf and hemp was stated that the Farms to Food Banks program fed been distributed by the Governor’s office, so sent to Tesla for experimentation in automotive one in seven Kentuckians last year; 63 million counties and the KADF have not yet received the parts. He said that the amount of Kentucky corn meals which included 21 million pounds of additional funding for projects. going into Kentucky bourbon had increased produce. The goal of the Farms to Food Banks Mark Haney, Kentucky Farm Bureau, stated by 65 percent. Commissioner Quarles stated program is to increase access to healthy food, to that no other state has been able to provide that the Kentucky Department of Agriculture’s pay fair prices that help farmers recoup losses, sustainability for farm families like Kentucky. inspections are current across the state. and to reduce the amount of wasted food.

28 2017 Interim LEGISLATIVE RECORD Ms. Sandberg stated that their 2017 Auction is fortunate in that it has a contract with a Senator Webb said it was important that budget consisted of public-private partnership truck driver who schedules pick-up and delivery. better management and education concerning donations, including a state appropriation of It should be noted that the KAFB pays for those the harvest of white oak be a continued area $600,000 to the Farms to Food Banks Trust transportation costs. The Food Bank does have of focus. She requested information on the Fund. Other donations are from individuals; tax a large fleet of refrigerated trucks but they are management of white oak; now and in the future. refund checkoff and in-kind contribution for scheduled down to the minute. The Food Bank The meeting was adjourned at 11:35 p.m. distribution of $361,000. The impact on hungry has had to use other sources of transportation for Kentuckians consisted of 3,610,000 million picking up produce. INTERIM JOINT COMMITTEE ON pounds of Kentucky grown produce, which In closing, Ms. Sandberg stated that in BANKING AND INSURANCE was enough fruits and vegetables for 6 million January, KAFB would have an individual report Minutes of the 5th Meeting meals. She said the produce was distributed by for each county as to the farmers and food banks of the 2017 Interim the seven regional food banks who work with that are in each legislative district. November 9, 2017 491 food pantries and 66 mobile pantries. Ms. Representative Melinda Gibbons Prunty, Call to Order and Roll Call Sandberg stated that all 120 counties received Chuck Courtney, President, Green River Loggers The 5th meeting of the Interim Joint produce through this program. Council and Bob Bauer, Kentucky Forest Committee on Banking and Insurance was held Ms. Sandberg stated that in 2017 the Industries Association discussed issues facing the on Thursday, November 9, 2017, at 10:00 AM, at Kentucky Association of Food Banks (KAFB) logging industry. Mr. Bauer stated that logging is the Brown Hotel, Louisville. Representative Bart worked with 390 Kentucky producers in 66 the backbone of the wood industry. He said that Rowland, Chair, called the meeting to order, and counties. Each producer was paid an average logging has a $9 billion direct economic impact the secretary called the roll. of $1,700, however the larger scale operations and $14 billion in total economic contribution. Present were: received more money. As an example, she said He said that there are over 28,000 direct jobs Members: Senator Tom Buford, Co-Chair; that one farm family who provided the most in the forest industry and over 60,000 jobs in Representative Bart Rowland, Co-Chair; produce received $32,000 and nine other farm total. He said there were approximately 7,000 Senators Rick Girdler, Morgan McGarvey, and families received $10,000 or more. Ms. Sandberg jobs in the logging industry. Mr. Bauer said that John Schickel; Representatives Jim Gooch Jr., stated that the KAFB had expanded beyond Kentucky was the third largest hardwood lumber Dennis Keene, Adam Koenig, Michael Meredith, produce to eggs and had been able to distribute producer in the nation at 746 million board feet Steve Riggs, Wilson Stone, and Addia Wuchner. 100 dozen Kentucky produced eggs. She said it each year. He explained that under the Forest Guests: Peggy Porter, President and was important to note that KAFB could get more Conservation Act, all logging jobs require a Chief Executive Officer (CEO), Chip Adkins, food per pound for $1.00 with produce. There KY Master Logger on site. He said that logging Chairman, and Tara Purvis, President-elect, was a problem with meeting the egg producers inspections are performed by the KY Division Independent Insurance Agents of Kentucky; need in order to cover their bottom line. She said of Forestry and all jobs require using best Joe Leahy, Chair-elect, Independent Insurance that purchasing eggs had been a pilot project management practices to protect water quality. Agents and Brokers of America; Julie Mix and KAFB is working to expand that program. Mr. Bauer stated that getting the products to McPeak, Commissioner, Tennessee Department KAFB would love to expand to other agriculture the market can be difficult when using county of Commerce and Insurance and President- products such as poultry and beef. roads. The logging industry is not opposed to elect, National Association of Insurance Ms. Sandberg encouraged legislators to regulations to protect the roads but would like Commissioners; Nancy Atkins, Commissioner, continue the $600,000 funding to the KAFB in to be treated fairly. Another issue facing the and Patrick O’Connor, Deputy Commissioner order to help struggling farmers and to feed the logging industry is the future workforce. He said for Policy, Kentucky Department of Insurance; hungry. that logging is a tough and dangerous job. The Representative Steve Riggs, President, National In response to Senator Webb, Ms. Sandberg industry is trying to find ways to offer training Conference of Insurance Legislators; Greg Kosse, said that the KAFB had spent money on shipping to younger people. He noted that technology General Counsel, Kentucky Farm Bureau Mutual produce from central Kentucky to the northeast and mechanized logging is becoming more Insurance Company; Tim Lynch, Director, part of Kentucky. She said that county extension prevalent. Mr. Bauer explained that workers’ Government Affairs, National Insurance Crime offices had agreed to work with KAFB to get the compensation for loggers is a problem. The rates Bureau; and Owen Caster, Kentucky Medical information out to the farmers who have produce force companies to insure fewer employees. He Claims Examiner, The Progressive Insurance to sell. It would help to save money on shipping. stated that the logging industry is changing and Group of Insurance Companies. In response to Representative Miles, Ms. is a key to the economy of Kentucky. Mr. Bauer LRC Staff: Sean Donaldson, Jessica Sharpe, Sandberg stated that they are continually looking stated that the logging industry recommends and Dawn Johnson. for ways to increase funding. One initiative called continued funding for county roads and the Approval of Minutes the Commonwealth of Kentucky Bowl through Kentucky Division of Forestry. A quorum not being present, the minutes the Secretary of State’s Office partnered with the Mr. Courtney agreed that one of the biggest of the October 24, 2017, meeting were not Area Development District to raise food that issues for logging is getting the timber to the considered. would all stay within Kentucky. Those results market using the county road system. Farmers Welcome Remarks should be available soon. The Kentucky Attorney call all the time to have their land logged, but the Chip Adkins, Chairman; Peggy Porter, General partnered with the Kentucky Bar industry cannot give them fair market value due President and CEO; and Tara Purvis, President- Association and raised approximately $50,000 to problems using county roads. elect, Independent Insurance Agents of Kentucky worth of food. Local donations often stay local, In response to Senator Parrett, Mr. Bauer (IIAK), and Joe Leahy, Chair-elect, Independent but is also distributed across the state to needy said that there is still a good supply of white oak Insurance Agents and Brokers of America food banks. for the next ten to twenty years. If the areas are welcomed members to the IIAK’s 121st Annual In response to Representative Stone, Ms. not harvested correctly, then the supply of white Convention. Mr. Adkins explained the mission Sandberg stated that the Allen County Produce oak will diminish. and purpose of the IIAK. Chairman Rowland THE KENTUCKY GENERAL ASSEMBLY 29 and Chairman Buford presented Ms. Porter of any cybersecurity matters. Revisions to the counties with only one carrier on-exchange. citations of appreciation recognizing her service Annuity Suitability Model allows the review of Tennessee also offers a statewide association to the industry and pending retirement. transactions and annuity products to consider health plan through the Tennessee Farm Bureau. Discussion of the State of Kentucky’s if enhancements might be necessary given the They would offer in-network benefits outside of Insurance Industry changing standards under the Department of the state of Tennessee. She said Tennessee has Commissioner Nancy Adkins, Kentucky Labor. Annuity Disclosure Model revisions will had substantial year-over-year premium rate Department of Insurance (KDI) explained take into account and inform consumers of increases that Kentucky did not experience. recent changes made at the KDI including innovative marketplace products. And changes When the Affordable Care Act became effective, departmental reorganization and improved to the Best Practices Model will address senior- Tennessee had extremely high claims costs and collaboration between agency divisions. Deputy specific designations in the sale of life insurance extremely low premium rates. They hoped 2017 Commissioner for Policy Patrick O’Connor and annuities. would level off, however, the lack of Cost-Sharing updated members on the status of health Ms. McPeak said the KDI’s presentation Reduction funding resulted in an additional 18 insurance in Kentucky. He provided an overview addressed some of the issues being considered to 20 percent rate increase. of carrier participation and service areas, plan by the NAIC nationally. Areas of interest Senator Buford said organized fraud rings network types, rates, open enrollment, KDI include shifts in technology, changing consumer are taking advantage of Kentucky’s no-fault outreach and challenges the state faces moving demands, and an expanding global market. Some vulnerability. This is also leading to a significant forward. Deputy Commissioner O’Connor of the problems facing the industry include life increase in prescription pain killers available to spoke on other health and life insurance issues insurers grappling with long term low interest sell. Responding to Senator Buford’s question including short-term medical insurance, rate rates, more severe weather events impacting Ms. McPeak said Tennessee has responded to increases in the group health insurance market, property insurers, a looming retirement and insurance fraud through tort reform and an air ambulance and emergency room billing savings crisis and a concerning trend of higher opioid task force has been created. The task issues, Pharmacy Benefit Manager issues, and claims costs for auto insurers. The health force is considering prescription limitation to long-term care insurance. Mr. O’Connor gave care market needs certainty in funding and make opioids less accessible. Ms. McPeak noted a property and casualty update including the regulations for the market to reach stability. that Kentucky’s fraud investigation division is workers’ compensation market and Insurtech— Carriers continue to leave the market sometimes unparalleled in Tennessee and they will likely the expansion of digital platforms in the insurance leaving only one area carrier. Ms. McPeak turn to Kentucky for possible solutions to application and claims process. Mr. O’Connor reviewed the NAIC’s suggestions to stabilize the fraudulent claims. discussed the progress of KDI’s Red Tape market. The NAIC has urged congress to take Discussion of Upcoming Priorities for the Review, and activities of the Financial Standards measures to address shortfalls. National Conference of Insurance Legislators Department and the Consumer Protection Regarding air ambulance billing concerns, (NCOIL) Division. From 2014 through 2016 KDI’s Fraud Ms. McPeak said the NAIC and other Representative Steve Riggs, President of Division received 5,267 referrals, of which 3,676 organizations have directed their advocacy NCOIL, provided background information on were automobile Personal Injury Protection efforts at the federal level due to the preemption the organization and its functions including (PIP) related accounting for almost 70 percent clause of the Federal Airline Deregulation Act writing insurance and financial services model of the division’s total referrals. Approximately 62 that prohibits states from regulating the price, laws and encouraging dialog and cooperation percent of those referrals originated in Jefferson route, or service of an air carrier. with state executive branches. The main priority County. Over the last three years the Fraud Ms. McPeak explained that while insurance is is to maintain state jurisdiction over insurance Division has recovered $3.8 million. an important mechanism to allow communities by working with Congress to ensure state-based Responding to Chairman Rowland’s to rebuild during a disaster recovery event, the regulation of insurance, enacting consumer question Commissioner Atkins said Insurtech NAIC advocates for resilience planning that protection model laws, and ensuring solvency entities are reviewed by the Financial Standards should integrate with other community planning and education of state legislators on insurance Division. efforts such as land use and hazard mitigations policy making. Representative Riggs discussed In response to Senator Girdler’s question plans. The NAIC is working with lawmakers to various legislation recently presented including Deputy Commissioner O’Connor said the improve building codes to minimize potential model acts and resolutions on topics such as 2014-2016 data does not reflect an increase damage before disaster occurs. minor identity theft protection and air ambulance in PIP claims specifically due to Florida’s law Regarding financial regulatory reform, Ms. regulation. He gave an overview of models and changes. Commissioner Atkins explained that McPeak said since the passage of the Dodd- resolutions to be addressed at NCOIL’s upcoming the agency’s new fraud reporting system should Frank Act, changes are needed to better respect 2017 Annual Meeting. Representative Riggs said more adequately document fraud claims. the role and strength of the states in regulating the organization serves to educate legislators Discussion of Upcoming Priorities insurance. Eliminating or limiting the authority through various means including a partnership for the National Association of Insurance of the Federal Insurance Office, providing state with the Institutes Griffith Insurance Education Commissioners insurance regulators a vote on the Federal Foundation. Commissioner Julie Mix McPeak, Tennessee Stability Oversight Council, significant reform to Discussion of Personal Injury Protection Department of Commerce and Insurance, the designation process of the Financial Stability Reform and Fraud Prevention and President-elect of National Association of Oversight Council if not outright elimination, Greg Kosse, General Counsel, Kentucky Insurance Commissioners (NAIC) spoke on and prevention of regulation duplication of Farm Bureau Mutual Insurance Company said recent revisions to model laws that will impact insurance entities by banking regulators are PIP insurance costs have been increasing at states. The NAIC recently adopted an insurance some of the suggestions of the NAIC. an unacceptable rate and current law prevents data security model that establishes standards for Responding to Chairman Rowland’s meaningful oversight of costs within the PIP data security for the investigation of a cyber event questions, Ms. McPeak said Tennessee allows system. A presumption of reasonableness and for notifying state insurance commissioners off-exchange product offerings but not in prevents insurers from questioning amounts

30 2017 Interim LEGISLATIVE RECORD billed and occasionally services provided. The claims. He also suggested clarifying existing law at 12:30 PM. current system is ripe for abuse and fraud noting and consumer education noting that PIP benefits that a significant driver of PIP coverage costs is are not primary insurance coverage over other INTERIM JOINT COMMITTEE ON abuse by unscrupulous providers, sometimes to private health insurance coverage. APPROPRIATIONS AND REVENUE the level of medical fraud. Mr. Kosse said recent Chairman Rowland questioned whether Minutes of the 6th Meeting years have seen the no-fault insurance cottage Kentucky’s penalties for insurance fraud were of the 2017 Interim industry flock to Kentucky with fraud being stringent enough compared to other states. Mr. November 20, 2017 most prevalent in urban areas and in eastern Lynch said he would research surrounding states Call to Order and Roll Call Kentucky. Mr. Kosse recommended reforms that and provide that information. The 6th meeting of the Interim Joint would curb costs such as a fee schedule similar Representative Wuchner suggested the Committee on Appropriations and Revenue was to workers’ compensation. He stated that PIP development of a shop-for-services program held on Monday, November 20, 2017, at 1:00 reform benefits all customers. that incentivizes consumers and encouraging PM, in Room 154 of the Capitol Annex. Senator Tim Lynch, Director, Government Affairs, consumers to access primary care coverage over Christian McDaniel, Chair, called the meeting to National Insurance Crime Bureau (NICB) emergency room visits for secondary care. She order, and the secretary called the roll. said the bureau is a national not-for-profit suggested the development of a formulary. Present were: organization supported by property and casualty Responding to Chairman Rowland, Mr. Members: Senator Christian McDaniel, insurance companies created to work with Lynch said Florida’s response to claims fraud was Co-Chair; Representative Steven Rudy, Co- members and law enforcement to investigate House Bill 119, enacted in 2012 that requires Chair; Senators Ralph Alvarado, Rick Girdler, organized criminal activities involving insurance people injured in automobile accidents to seek Dennis Parrett, Wil Schroder, Brandon Smith, fraud and vehicle theft. He said the pervasive medical attention within 14 days in order to and Stephen West; Representatives Tim Couch, abuse of the current PIP system are undeniable. implement PIP coverage, it banned treatment for Regina Huff, Brian Linder, Donna Mayfield, Organized criminal elements in Kentucky are acupuncture and massage therapy, it tightened Suzanne Miles, Jason Nemes, Ruth Ann Palumbo, abusing and benefiting from Kentucky’s no- licensing requirements for chiropractors and Phillip Pratt, Jody Richards, Sal Santoro, Arnold fault insurance environment. Pain doctors, physicians and strengthened penalties for Simpson, Jim Stewart III, James Tipton, Ken chiropractors, and attorneys convert PIP abuses doctors and others who violated provisions, it Upchurch, Susan Westrom, and Jill York. into cash necessary to acquire high volumes of capped some attorney fees and allowed insurers Guests: Steve Parker, Commissioner, Todd prescription narcotics. PIP abuse has led to other more time to investigate claims. He said Florida’s Bloch, Deputy Commissioner, Craig Farmer, crimes such as cargo theft, gang activity, and even changes were marginally effective and they are Engineering Branch Manager, Kentucky homicide. The NICB along with the Department still addressing issues to reduce fraud. Department of Aviation; Adira Johnson, of Insurance can be a resource for specific data to Senator Girdler said Kentucky’s rates are Commissioner, Elizabeth Caywood, Executive help identify existing and emerging fraud trends. tremendously higher than surrounding states. Advisor, Department for Community Based Nationally, Louisville has ranked in or near Mr. Caster said it is somewhat more expensive to Services; Hahns Herklotz, General Counsel, the top ten cities in organized crime involving purchase insurance in Kentucky but some states Catherine York, Deputy General Counsel, questionable medical claims, organized are catching up. PIP coverage is an additional Cabinet for Health and Family Services group activity, and suspicious vehicle claims. coverage that neighboring states do not have. He LRC Staff: Jennifer Hays, Cynthia Brown, Information obtained during fraud investigations said Kentucky’s laws make it easy and attractive Amit Shanker, Hannah Walker, Charlotte describes the migration of organized criminals for outside entities to do business here. Quarles, and Jennifer Beeler from south Florida and New York to Kentucky. Responding to Representative Riggs’ Mr. Approval of the Minutes Kentucky, and Louisville specifically, has become Kosse said while lawsuits have been filed against Senator Alvarado made a motion, seconded fertile ground for organized criminals who have overcharging by medical providers, challenges by Senator Schroder, to approve the minutes hijacked Kentucky’s PIP system and led to other to the presumption of reasonableness have of the October 26, 2017 meeting. The motion organized activities. been upheld. Representative Riggs said he carried by voice vote. Owen Caster, Kentucky Medical Claims would like to see more legal challenges towards Presentation on Transportation Aviation Manager, the Progressive Group of Insurance overcharging by medical providers. Mr. Kosse Steve Parker, Commissioner, Todd Bloch, Companies said that while PIP coverage has suggested that legal challenges can become Deputy Commissioner and Craig Farmer, served the state well since its inception, in recent expensive so companies opt not to. Engineering Branch Manager, Kentucky times it has become a source of frequent abuse Representative Gooch said the current PIP Department of Aviation gave a brief overview of straying from its original intent of providing legislation is flawed and statutory protections the impact of General Fund Appropriation on prompt payment for reasonable medical care from exorbitant medical fees should be enacted. general aviation airports. and lost wages, and to reduce litigation for those He has attempted to make changes on numerous Commissioner Parker reviewed several injured in automobile accidents. Mr. Caster occasions but has been unsuccessful. slides regarding the state of public and private said currently medical providers’ charges are Senator Girdler said insurance companies airports around the state. not limited. Establishing a fee schedule would would be subjected to negative publicity if they In response to a question from Chairman help eliminate exorbitant medical charges. Mr. took the matter of overcharging to court. Rudy, Commissioner Parker explained that the Caster provided examples of fees charged for There being no further business to come $10 million each year of the biennium being an automobile accident versus what would before the committee, the meeting was adjourned requested is for hard construction only. No be paid under the Kentucky Workers’ Comp money is being spent on fuel systems, instrument fee schedule. Other areas for possible reform approaches, hangers, or furniture for terminal include reduction of “red tape” that automobile buildings. insurance companies face as they investigate In response to a question from Senator questionable and potentially fraudulent PIP Schroder, Commissioner Parker explained that THE KENTUCKY GENERAL ASSEMBLY 31 all revenues received by airports stays local and Bryanna Carroll, Kentucky League of Cities; home pay; no revenues come back to the state. Tony Hatton and Daniel Cleveland, Energy and The exclusion of sick time from retirement Presentation on Kinship Care Environment Cabinet, Peter Goodmann, Jory service time calculations; Adria Johnson, Commissioner presented Becker, Greg Goode, and Claude Carothers, Allow Tier 3 persons to remain in the plan a power point to the committee regarding the Division of Water; Angela Evans and Michael without changes; and Kinship Care program and the most recent Kurtsinger, Kentucky Fire Commission; Dustin Allow retired clerks and deputy clerks to supreme court decision on D.O. vs Glisson. She Miller, State Farm Insurance, and Judy Piazza, return to service and maintain their present explained the ruling as well as a brief overview of Finance and Administrative Cabinet. retirement. Presently when they do so, it is with the Kinship Care program as a whole. LRC Staff: Mark Mitchell, John Ryan, Joe a substantial pay cut and no participation in a In response to a question from Senator Pinczewski-Lee, and Cheryl Walters. retirement fund. Parrett, Commissioner Johnson stated that there Approval of Minutes The circuit clerks noted their collective is a huge benefit to placing a child with a family Upon the motion of Representative Simpson, monitoring of the implementation of the Real ID member as opposed to foster care. Studies have seconded by Representative Sims, the minutes of Act and how drivers licensing legislation affects shown it is less traumatic and a child will do the October 25, 2017 meeting were approved. their ability to support their charity, the Trust for better in a setting where there is familiarity. Kentucky Association of Counties’ Life. With no further business before the Legislative Platform for 2017 Session of the Kenton County Commonwealth’s Attorney committee, the meeting was adjourned. General Assembly Rob Sanders and Legislative Chair of the Kentucky Jefferson County Circuit Court Clerk David Commonwealth’s Attorneys Association, noted INTERIM JOINT COMMITTEE ON Nicholson, President of the Kentucky Association the functions of the Commonwealth’s Attorneys LOCAL GOVERNMENT of Counties (KACo), discussed the role of KACo and indicated that further cuts to their budget Minutes of the 6th Meeting in coordinating policy for its constituents will result in a reduction of personnel or massive of the 2017 Interim and provided an overview of some primary reduction in salaries which would itself result November 29, 2017 agenda items it plans to address in the 2018 in a loss of personnel. The 17% tentatively Call to Order and Roll Call Regular Session of the General Assembly which proposed budget reduction would effectively The sixth meeting of the Interim Joint included amendments to the County Employees shut the offices down on Marchst 1 . Maintaining Committee on Local Government was held on Retirement System and related systems, tax an experienced staff promotes efficiency and can Wednesday, November 29, 2017, at 10:00 AM, reform efforts, and unfunded mandates. KACo positively affect jail costs and other costs when in Room 171 of the Capitol Annex. Senator Joe is willing to engage in discussions of the agenda considering incarcerations while persons await Bowen, Chair, called the meeting to order, and issues, and is grateful to the General Assembly the completion of their trials. the secretary called the roll. members for their efforts. Henderson County Attorney Steve Gold and Present were: Representatives of each of KACo’s affiliate President of the Kentucky County Attorneys Members: Senator Joe Bowen, Co-Chair; groups presented their particular priorities for Association, reiterated the budget issue as Representative Rob Rothenburger, Co-Chair; session. expressed by the Commonwealth’s Attorney’s Senators Ralph Alvarado, Christian McDaniel, Scott County Magistrate David Livingston Association. He noted the roles county attorneys Morgan McGarvey, Dorsey Ridley, and Wil and board member, representing the Kentucky play in county government and in policy-making Schroder; Representatives Danny Bentley, Ken Magistrates and Commissioners Association, when the opportunity presents itself. Fleming, Kelly Flood, Toby Herald, DJ Johnson, indicated that jail funding is a priority. The Mr. Bill May, Executive Director of the Kim King, Adam Koenig, Stan Lee, Brian Linder, housing in jails of drug offenders and their Kentucky County Clerks Association, introduced Michael Meredith, Jerry T. Miller, Phil Moffett, needs puts financial pressure on counties. The Leslie County Clerk James Lewis and Chair of the Steve Riggs, Arnold Simpson, and John Sims Jr. second priority is multi-modal transportation Kentucky County Clerks Association’s Election Guests: Jefferson County Circuit Court infrastructure funding for city, county, and rural Committee. Mr. Lewis noted the following Clerk David Nicholson; Kenton County Circuit roads and airports. Counties are responsible for proposals for statutory change: Clerk John Middleton; Commonwealth’s maintaining 40,000 miles of roads and 5,000 KRS 132.017, relating to recall elections Attorney Rob Sanders; Henderson County bridges. The economy depends on roads. The ballot printing timeframes; Attorney Steve Gold; Leslie County Clerk James Association has partnered with the Kentucky KRS 117.035, relating to allowing County Lewis; Floyd County Clerk Chris Waugh; Bill Infrastructure Coalition which supports long- Board of Elections to meet only when needed; May, Kentucky County Clerks Association; term, sustainable funding for all modes of KRS 117.343, relating to increasing actual Larue County Judge/Executive Tommy Turner; transportation. The motor fuels fee is the fairest voter reimbursements to the clerks; Vince Lang, Kentucky County Judge/Executive fee to provide funding for the roads. KRS 117.075 and 117.085 relating to absentee Association; Christian County Jailer Brad Boyd; Kenton County Circuit Court Clerk John voter application efficiency; and Renee Craddock, Kentucky Jailers Association; Middleton and President of the Kentucky KRS 116.055, relating to closing a new voter Scott County Magistrate David Livingston; Association of Circuit Court Clerks told the registration loophole that allows a voter to cancel Boone County PVA Cindy Arlinghaus Martin; committee that salary levels of deputy clerks his or her registration and sign up as a new voter Mack Bushart, PVA’s Association; Grant County and attorneys, court designated workers, pretrial under another party affiliation. Sheriff Chuck Dills; Jerry Wagner, Kentucky release were substantially below equivalent Larue County Judge/Executive Tommy Sheriff’s Association; Shellie Hampton and Roger jobs in the executive branch. In addition, the Turner and Legislative Chair of the Kentucky Rectenwald, Kentucky Association of Counties; association had the following concerns or County Judge/Executive Association noted Mayor Jim Barnes, City of Richmond; Mayor preferences with the current draft of the pension his association’s preference for maintaining Teresa Rochetti-Cantrell, City of Mayfield; Corey legislation: the inviolable contract and the separation of Bond and Tom Sanders, City of Elizabethtown; The addition of the 3 percent cost for health the County Employees Retirement System Jonathan Steiner, Michele Hill, Bert May, and insurance and retirement in that it reduces take (CERS) from other state run retirement

32 2017 Interim LEGISLATIVE RECORD systems. Any financial obligations resulting Other entities, such as school districts and special the responsibility rests upon the counties. from pension reform should be allowed to be districts that use PVA assessment data do not pay In response to a question from Representative implemented by the counties over time to help anything to the PVA, and the budget subsidizes Fleming, Mr. Nicholson replied that KACo with budgeting. Additionally, transportation those entities in that regard. PVAs generate should be in a position by January 1st to offer infrastructure needs are critical. Over the last revenue at an 11 to 1 ratio on the investment to suggestions for tax reform. Representative 20 years, county costs have increased as much the state. Adding in the total revenues generated Fleming encouraged KACo to submit their as 300% for certain items, especially materials by PVA assessment (including cities, counties, concerns to the General Assembly. while the commensurate revenue has only schools and special districts) that figure rises to In response to a question from Representative increased 20 percent. The group advocates for 51 to 1. Miller, Mr. Boyd said the Jailers Association sufficient funds for maintaining infrastructure. Mr. Bushart noted that since 2014 to 2017, would rather have the daily per diem increase In addition, jail funding will always be a priority the assessments the PVAs conduct have increased for prisoners rather than taking prisoners out of with the association. The last item is tax reform. the valuation of real property in Kentucky $22 jails. The group asks that any elimination of a tax billion. This has come from reassessments and Kentucky League of Cities’ Legislative be replaced with a revenue source of similar new growth. It translates to $11 million to the Platform for 2017 Session of the General growth potential. The association favors local state and $51 million to local governments, Assembly optional sales taxes, legislation addressing the schools, and special districts. Adding a 2.5 Mr. Jonathan Steiner, Executive Director offset of local occupational license taxes for percent to the state property tax rate would allow of the Kentucky League of Cities (KLC), counties over 30,000 in population, returning a taxes to pay for taxes and keep the PVA offices Mayor Jim Barnes, City of Richmond and KLC higher percentage of coal and mineral funding funded. President, and Mayor Teresa Rochetti-Cantrell, to counties found primarily in the East and Grant County Sheriff Chuck Dills and board City of Mayfield and KLC First Vice-President, West coal fields, and allowing Tennessee Valley member of the Kentucky Sheriffs Association, addressed the committee on the KLC 2018 Authority “in lieu of” revenue be distributed told the committee that the office of the sheriff legislative agenda. to allow economic development for local was a fee office. The sheriffs have no control Mr. Steiner made note of how the 2018 governments. over the income brought into the office. Sheriffs’ legislative agenda was formed. Cities need more Christian County Jailer Brad Boyd and main responsibilities include tax collection, flexible revenue sources, and want more control President of the Kentucky Jailers Association, court security, auto inspections, security of over local pensions. told the committee that the bed allotment justice centers, service of process, and prisoner Mayor Barnes said that local government is has decreased 22 percent in the past ten years transport. The state provides reimbursement for the most efficient and is held accountable by its from around $14 million to $11 million. The these statutorily-required duties, but the sheriffs citizens. fund helps jails with covering the cost to house perform these functions almost at a loss based Separation of the County Employees inmates. Regarding the per diem, jails are paid on the money received. The primary issue the Retirement System (CERS) from the other $29.50 per inmate and $1.91 a day for medical sheriffs wish to address is dealing with rehiring retirement systems is the top priority. Employees expenses. It has been a decade since the last of retired peace officers. Retired peace officers are there to serve the citizens, but it takes money time it has been raised and it is time to begin are already trained, and having to send them to keep the employees in service. Fifty percent the conversation about raising the per diem. back through training is expensive and takes a of Richmond’s budget goes to hazardous duty There is an overpopulation in jails due to minor long time. pay for retired personnel. Separating CERS will offenses—many dealing with drugs and many Senator Bowen commented that he allow cities to manage their self-funded pension who are repeat offenders. Programs designed to recognizes the dire need for pension reform. funds and allowing the local governments to reduce recidivism cost money and fiscal courts There needs to be change, and without change, select board members will insulate the board cannot pay for them alone. The state must help. there can be no reform. Budget needs must be from politics and provide consistency. Many inmates in the jail system have a future, addressed, but there has to be pension reform The road fund formula is another priority. but that future cannot be met without funding. first. County roads are vitally important and are Kentucky jailers want to be more than landlords; Representative Riggs commented that the arteries into the cities. City road maintenance is they want to help. The jailers ask for an increase act of voting in Kentucky is the bedrock of more than the actual blacktop. The road must be in the per diem rate to continue the good democracy. The voting turnout needs to improve milled and curbs and gutters must be maintained. work, expand the programs, and help inmates in Kentucky. Six o’clock a.m. to six o’clock p.m. is Milling is just as expensive as the blacktop. KLC successfully reenter society. not long enough. urges being allowed to keep 35 percent of the Boone County Property Valuation In response to a question from Representative increase in revenues when road fund revenues Administrator (PVA) Cindy Arlinghaus Martin Riggs, Mr. Lewis said the County Clerks exceed $828 million. and Chair of the Kentucky PVA Association’s Association would be glad to put together a task Unfunded liabilities are not fair. An example Budget Committee, and Mr. Mack Bushart, force to come up with ideas for improving voter of unfunded liabilities would be newspaper Executive Director of the Kentucky PVA turnout. publication requirements. The General Assembly Association, both addressed the committee. Regarding the CERS being separate from the is encouraged to look at reducing unfunded Ms. Martin told the committee that the General KERS, Senator McDaniel commented that KRS mandates for cities. Assembly directly funds PVA offices in the 78.852, dealing with the inviolable contract of Lastly, amid cities’ residents’ increased budget and when there is a reduction in budget, the Commonwealth, should apply to employers. demands for services, cities want to be able to that reduction directly affects staffing. Cities In response to a question from Senator expand the permission to levy the restaurant tax and counties do serve as funding sources, but McDaniel, Mr. Vince Lang, Executive Director to all cities which besides being able to bring in at present 51 percent of the moneys given to the of the Kentucky County Judge/Executive more revenue is an issue of fairness. A restaurant PVAs from the cities and counties goes back to Association, that the he did not know how that tax in Richmond would bring in an additional the state to plug the hole that has been created. statute would be interpreted, but that he believed $2.5 million a year that could be spent on capital THE KENTUCKY GENERAL ASSEMBLY 33 improvements. of issues that affect their sustainability. In many be made available to members via email. Mayor Rochetti-Cantrell noted additional instances they are older than their design life and In response to a question from Representative KLC priorities: there is insufficient capital to maintain them. Rothenburger, Mr. Goodmann said local KLC has diverse proposals for increasing Many of the collection systems that bring inflow governments are being educated regarding the economic development opportunities. to the plant have problems, too. The costs to planning and zoning process to control package KLC wishes to see fire and police maintain the systems have increased over time, sewer treatment plants. supplemental pay codified into law, and to while revenue streams have stayed the same Representative Riggs commented that he have the additional costs to cities from that or may have decreased. Some systems are not was concerned by the recommendations to the supplement be reimbursed from the fund to the sustainable in the long term because of financial, legislature that involve state funding. The funding cities. administrative, and technical challenges. should come from the local governments, not KLC advocates for changes in workers Deputy Commissioner Hatton noted the the state. compensation law as it pertains to employees convention of stakeholders as was required in Senator McDaniel commented that the most on temporary total disability (TTD). KLC wants the resolution and the methods they used to successful societies have trash removal, clean changes to the law that ensures when someone satisfy the resolution mandates. drinking water, and waste removal. on TTD returns to work, on modified duty for Mr. Goodmann told the committee that Consideration of Referred Kentucky instance, has those wages factored into his or her there were 180 small, privately owned package Administrative Regulation workers compensation benefits. KLC also seeks sewer treatment plants, excluding business and The committee considered referred to address the Kentucky Supreme Court ruling school operations, and expanded on financial Administrative Regulation 739 KAR 2:050, that invalidated the termination of workers risks, technical indicator risks, and abandonment promulgated by the Kentucky Fire Commission, compensation benefits at the Medicare eligibility likelihood risk indicators. Identifying these risk which relates to volunteer fire department age. factors allowed the Division to rank these plants aid. Ms. Angela Evans, Legal Counsel for the Current law requires cities to publish notices in terms of being at-risk of failure. Kentucky Fire Commission, explained the in newspapers for actions like ordinances and The following are the Division’s legislative regulation. budgets, notices of public hearings and audits. recommendations: Senator Bowen stated that a written report of That requirement costs the taxpayers money Provide the cabinet certain authorities the review would be submitted to the LRC. for a medium that is no longer the first form of over financial issues related to management of There being no further business, the meeting communication for most people in Kentucky. the plant, such as ensuring funding for proper was adjourned at 12:15 p.m. KLC advocates for a bill to no longer require operations and maintenance, and facility newspaper publication, and to use other methods contingency funds for failure, or catastrophic GOVERNMENT CONTRACT of notice. failure; REVIEW COMMITTEE KLC seeks to address the usage of police Provide funding to facilitate regionalization, Committee Minutes body cameras. It seeks to clarify when a video consolidation, replacement of a system, or November 14, 2017 should be released and who should be able to continued operation by a third party; Call to Order and Roll Call obtain a copy. Provide cabinet authority to have court The Government Contract Review KLC also seeks to amend the state’s alcohol appoint a receiver, custodian, or fiduciary to Committee met on Tuesday, November 14, 2017, regulatory license fees law to allow all cities the assume management and operation of a system at 10:00 AM, in Room 131 of the Capitol Annex. right to impose one. that presents a threat to continuity of service, Senator Max Wise, Chair, called the meeting to KLC’s agenda also includes either eliminating public health, or a threat to the environment; order, and the secretary called the roll. the office of constable, or having the ability to Provide cabinet with the authority to require Present were: restrict the constables’ use of police powers in permitting structural analyses be conducted at Members: Senator Max Wise, Co-Chair; within city limits. designated times. Representative Stan Lee, Co-Chair; Senators Senator Bowen noted the balance and The following are actions the Cabinet is Julie Raque Adams; Representatives Chris interaction of state taxes versus local taxes. preparing to take: Fugate, Dennis Horlander, and Diane St. Onge. Senator Schroder thanked the mayors for Use the report to educate officials about the Guests: Joan Gates, Adam Caswell, Blaine mentioning unfunded mandates as it related locations and risk factors that jeopardize public Gilmore, Jill Hunter, Earl Gresham, Deck Decker, to newspapers. He encouraged them to talk to health, continuity of service, and environment; Naomi Emmons, and Mary Vosevich. members of the General Assembly. Continue to regularly inspect small systems LRC Staff: Kim Eisner, Jarrod Schmidt, and Division of Water’s Report on 2017 HJR 56 and prioritize the enforcement of violations; Kim Smith. relating to Package Sewer Treatment Plants Explore the development of a pool of A motion was made by Representative Mr. Anthony Hatton, Deputy Commissioner potential receivers, custodians fiduciaries, and Fugate to approve Minutes of the October 2017, of the Department for Environmental experienced operators to deal with failed or meeting of the committee. Representative Lee Protection, and Mr. Peter Goodmann, Director failing facilities; seconded the motion, which passed without of the Division of Water, reported pursuant Identify non-financial incentives to facilitate objection. to the mandate found in 2017 HJR 56 where regionalization or consolidation or management the Division was directed to study and provide of the small systems; A motion was made by Representative Lee recommendations for legislative and other Possibly develop a contingency plan for to consider as reviewed the Personal Service solutions to the issue of failing or at-risk of failing addressing environmental emergencies resulting Contract List, with exception of those items package sewer treatment plants. from small systems’ failure. selected for further review by members of the Deputy Commissioner Hatton told the Senator Bowen commented that package committee. Representative Fugate seconded the committee that there were privately owned sewer treatment plants is a very important health motion, which passed without objection. package sewer treatment plants that for a variety and safety issue. The aforementioned report will

34 2017 Interim LEGISLATIVE RECORD A motion was made by Representative Lee Realty Resources Kentucky-Southern Indiana, Shirley Lafavers, 1700000769; Lisa Cross, to consider as reviewed the Personal Service 1700002493; Bluegrass Valuation Group, LLC, 1700000943. Contract Amendment List, with exception 1700002494; Darin Sizemore, 1700002495; of those items selected for further review by Appco Appraisal Service, Inc., 1800000181; KENTUCKY COMMUNITY & members of the committee. Representative David P. Schoepf Associates, Inc., 1800000182; TECHNICAL COLLEGE SYSTEM Fugate seconded the motion, which passed RHA, LLC, 1800000726; HDR Engineering, Inc., SCATE, Inc., 688; SCATE Inc., 696. without objection. 1800000729; Stantec Consulting Services, Inc., NORTHERN KENTUCKY UNIVERSITY 1800000730; Garver, LLC, 1800000736; QK4, Kalil & Co., Inc., 2017-118; JMS & Associates, A motion was made by Representative Lee Inc., 1800000826. to consider as reviewed the Memoranda of Inc., 2017-122. Agreement List, with exception of those items UNIVERSITY OF KENTUCKY TRANSPORTATION CABINET selected for further review by members of the CMTA, Inc., A181110; Stimulating Gresham Smith & Partners, 1300002683; committee. Representative Fugate seconded the Solutions, LLC, K18-132; New City Media, Inc., W.M.B, Inc., 1300002818; HMB Professional motion, which passed without objection. K18-133; New City Media, Inc., K18-134. Engineers, Inc., 1600000469; Stantec Consulting A motion was made by Representative Lee UNIVERSITY OF LOUISVILLE Services, Inc., 1600001742; Palmer Engineering, to consider as reviewed the Memoranda of Advances in Education, 18-041; Trane US, 1600003081; Palmer Engineering, 1700001724; Agreement Amendment List, with exception Inc., 18-042. GRW Engineers, Inc., C-01232797-1; HNTB of those items selected for further review by Corporation, C-99005232-8. members of the committee. Representative WESTERN KENTUCKY UNIVERSITY Greenwood/Asher & Associates, Inc., UNIVERSITY OF KENTUCKY Fugate seconded the motion, which passed GBBN, A151180. without objection. 171819. UNIVERSITY OF LOUISVILLE A motion was made by Representative Lee Multi, 17-018 A-D. to consider as reviewed the Film Tax Incentive THE FOLLOWING PERSONAL SERVICE List, with exception of those items selected for AMENDMENTS WERE REVIEWED WESTERN KENTUCKY UNIVERSITY further review by members of the committee. WITHOUT OBJECTION: Multi, 161807. Representative Fugate seconded the motion, WORKER’S COMPENSATION FUNDING which passed without objection. DENTISTRY, BOARD OF COMMISSION Brian Fingerson RPH, Inc., 1700000105; A motion was made by Representative Lee Goldberg Simpson, LLC, 1600002435. McBrayer, McGinnis, Leslie and Kirkland, to consider as reviewed the Correction List. 1700000265. Representative Fugate seconded the motion, which passed without objection. DEPARTMENT FOR BEHAVIORAL THE FOLLOWING MEMORANDA HEALTH, DEVELOPMENTAL AND OF AGREEMENTS WERE REVIEWED INTELLECTUAL DISABILITIES WITHOUT OBJECTION: THE FOLLOWING PERSONAL SERVICE Patricia F. Seybold, 1700001611. CONTRACTS WERE REVIEWED WITHOUT DEPARTMENT FOR COMMUNITY OBJECTION: DEPARTMENT FOR PUBLIC HEALTH BASED SERVICES Thomas Joseph Hickey, 1700000375. Owl d/b/a Opportunity for Work and EASTERN KENTUCKY UNIVERSITY DEPARTMENT OF REVENUE Learning, 1800000676; Green River Regional Susan Stringer, 18-212. Billy Whitaker, 1700002357. Mental Health Mental Retardation Board, 1800000677. EDUCATION, DEPARTMENT OF EASTERN KENTUCKY UNIVERSITY Rutherford Learning Group, 1800000544; Cammack Retirement Group, 18-114; DEPARTMENT FOR ENVIRONMENTAL NCS Pearson, Inc., 1800000546; Jim Shipley & Mountjoy Chilton Medley, 18-117. PROTECTION Associates, Inc., 1800000637. UK Research Foundation, 1800000115; UK EDUCATION, DEPARTMENT OF Research Foundation, 1800000122; Kentucky KENTUCKY LOTTERY CORPORATION Brian P. White, 1600002287. Geological Survey, 1800000422; Kentucky Dairy Ellipse Solutions, LLC, 18-17-016. Development Council, 1800000513. FINANCE AND ADMINISTRATION NORTHERN KENTUCKY UNIVERSITY CABINET - DIVISION OF ENGINEERING DEPARTMENT FOR MEDICAID Viox & Viox, 2018-106; Schultz & Williams, Omni Architects, 0700003255; Biagi Chance SERVICES Inc., 2018-109; Buffalo Trace Surveying, LLC, Cummins London Titzer, Inc., 1300001446; Kentucky Partnership for Families and 2018-110. Stantec Consulting Services, Inc., 1400000625; Children, Inc., 1800000758. Omni Architects, 1400000794; Murphy & TRANSPORTATION CABINET DEPARTMENT FOR NATURAL American Appraisers Corporation, Graves & Trimble, PLLC, 1500000604; ALT32, PSC, 1500000928; CMTA, Inc., 1600000674. RESOURCES 1700002485; Thoroughbred Real Estate Multi, 1800000232; Multi, 1800000236; Services, LLC, 1700002486; Charles Joseph JUVENILE JUSTICE, DEPARTMENT OF Kentucky Department of Fish and Wildlife Bird, 1700002488; Harold Brantley, 1700002489; Brenda K. Wilburn, 1600003021; Resources, 1800000552. McPherson Appraisal Service, 1700002490; Denise Adams, 1700000648; Larry Cavanah, Thurston Freeman, 1700002492; Integra1700000649; Patricia A. Hurt, 1700000768; THE KENTUCKY GENERAL ASSEMBLY 35 EARLY CHILDHOOD ADVISORY WORKFORCE INVESTMENT, OFFICE OF 1700001638; Kentucky Valley Education, COUNCIL City of Bowling Green, 1800000608; City of 1700001674. Ohio Valley Education Cooperative, Bowling Green, 1800000609. 1800000643; Kenton County Public Library, INFRASTRUCTURE AUTHORITY 1800000695. Perry County Fiscal Court, 1300001502. THE FOLLOWING MEMORANDA EDUCATION, DEPARTMENT OF OFFICE OF THE GOVERNOR, OF AGREEMENT AMENDMENTS WERE Department of Corrections, 1700002652; DEPARTMENT FOR LOCAL GOVERNMENT REVIEWED WITHOUT OBJECTION: Walton - Verona Board of Education, McLean County Fiscal Court, 1400003124; 1800000179; Southern Regional Education Wolfe County Fiscal Court, 1600000238; Wolfe ADMINISTRATIVE OFFICE OF THE Board, 1800000304; Fayette County Public County Fiscal Court, 1600001095; Harrison COURTS Schools, 1800000475; University of Kentucky County Fiscal Court, 1600002014; Mercer Morehead State University, 1500001324; Research Foundation, 1800000516; Kentucky County Fiscal Court, 1700000007; Muhlenberg Morehead State University, 1500001325; Educational Development Corporation, County Fiscal Court, 1700002109. Morehead State University, 1500001328; 1800000536; Fayette County Board of Education, Lifeskills Corporation Offices, 1500001336; 1800000547; Pulaski County Board of Education, River Valley Behavioral Health, 1500001337; 1800000554; Kentucky Valley Education, THE FOLLOWING FILM TAX Pennyroyal Mental Health, 1500001338; 1800000559; University of Kentucky Research INCENTIVES WERE REVIEWED WITHOUT Bluegrass Prevention Center, 1500001339. Foundation, 1800000571; Collaborative for OBJECTION: Teaching, 1800000606. AGRICULTURE, DEPARTMENT OF Multi, 1700001857. TOURISM DEVELOPMENT CABINET MILITARY AFFAIRS, DEPARTMENT OF The Haunted Doll Company, LLC, Multi, 1800000505; Olive Hill City of (Pa), DEPARTMENT FOR AGING & 1800000827; La Reliquia, LLC, 1800000828; 1800000693. INDEPENDENT LIVING Hook Interactive, LLC, 1800000830; Star Light Multi, 1700002626; United Way of the Movie, LLC, 1800000831. OFFICE OF THE GOVERNOR, Bluegrass, 1700002641. DEPARTMENT FOR LOCAL GOVERNMENT Bluegrass Area Development District, DEPARTMENT FOR BEHAVIORAL THE FOLLOWING PERSONAL SERVICE 1800000286; Northern Kentucky Area HEALTH, DEVELOPMENTAL AND CONTRACTS WERE SELECTED FOR Development District, 1800000296; Webster INTELLECTUAL DISABILITIES FURTHER REVIEW: County Fiscal Court, 1800000407; Bell Kentucky Partnership for Families and County Fiscal Court, 1800000570; City of Children, Inc., 1600001718; Chestnut Health NORTHERN KENTUCKY UNIVERSITY Coal Run Village, 1800000647; City of Ewing, Systems, Inc., 1600001724; St. Elizabeth Medical Howard Law, PLLC, 2018-107; Brubaker & 1800000649; City of Paducah, 1800000694; City Center, 1700000518. of Campbellsville, 1800000725; City of Corbin, Associates, 2018-108. Joan Gates, Adam Caswell, 1800000733; City of Hopkinsville, 1800000734; DEPARTMENT FOR COMMUNITY and Blaine Gilmore discussed the contracts Hopkins County Fiscal Court, 1800000737; BASED SERVICES with the committee. A motion was made by Whitley County Fiscal Court, 1800000738; Jobs for the Future, 1600002681; Kentucky Representative St. Onge to consider the contracts Harlan County Fiscal Court, 1800000760; City Association of Child Advocacy Centers, as reviewed. Senator Wise seconded the motion, of Springfield, 1800000762; Hopkins County 1700001567. which passed. Fiscal Court, 1800000770; City of Morganfield, DEPARTMENT FOR MEDICAID 1800000772; Hopkins County Fiscal Court, SERVICES 1800000776; Hopkins County Fiscal Court, THE FOLLOWING PERSONAL SERVICE Cabinet for Workforce Development, 1800000777; Pike County Fiscal Court, AMENDMENTS WERE SELECTED FOR 1700001840. 1800000780; City of Earlington, 1800000791; FURTHER REVIEW: City of Independence, 1800000795; City of DEPARTMENT FOR PUBLIC HEALTH Morehead, 1800000813; Webster County Fiscal Kentucky Pharmacy Education and Research DEPARTMENT FOR MEDICAID Court, 1800000824; City of Benton, 1800000832; Foundation, Inc., 1600002278; University of SERVICES Harlan County Fiscal Court, 1800000833; City Kentucky Research Foundation, 1600002282; U Navigant Consulting, Inc., 1700001679. of Elkton, 1800000841; Daviess County Fiscal of L Research Foundation, 1600002326. Jill Hunter, Deck Decker, and Earl Gresham Court, 1800000848. discussed the contract with the committee. A EARLY CHILDHOOD ADVISORY motion was made by Senator Raque Adams to TRAVEL, DEPARTMENT OF COUNCIL consider the contract as reviewed. Representative Multi, 1800000307; Multi, 1800000313; Eastern Kentucky University, 1600002551. St. Onge seconded the motion, which passed. Multi, 1800000314; Multi, 1800000315; Multi, 1800000320; Multi, 1800000400; Multi, EDUCATION PROFESSIONAL UNIVERSITY OF KENTUCKY 1800000589; Multi, 1800000594. STANDARDS BOARD Cenergistic, LLC, K17-116. Naomi Emmons Oldham County Board of Education, and Mary Vosevich discussed the contract UNIVERSITY OF KENTUCKY 1700001941. with the committee. A motion was made by Kentucky Appalachian Transition Services, Senator Raque Adams to consider the contract MOU-001-18. EDUCATION, DEPARTMENT OF as reviewed. Representative Horlander seconded Jefferson County Board of Education, the motion, which passed. 1700001623; Pike County Board of Education,

36 2017 Interim LEGISLATIVE RECORD EXEMPTION REQUESTS: Clint Quarles, Department of Agriculture; A motion was made and seconded to Rick Bender, Aaron Keatley, Joh Maybriar, approve the following amendments: (1) to HEALTH AND FAMILY SERVICES Bruce Scott, Larry Taylor, Department of amend the STATUTORY AUTHORITY The Department of Aging and Independent Environmental Protection; Jeffery Biard, Allen paragraph to correct statutory citations; and (2) Living (DAIL) requested an exemption from Luttrell, Department of Natural Resources; Mark to amend the NECESSITY, FUNCTION, AND the two year contracting restrictions in order Jordan, Steven Milby, Da-vid Moore, David CONFORMITY paragraph and Sections 1, 2, to establish a Memorandum of Agreement Startsman, Department of Housing, Buildings and 4 through 7 to comply with the drafting and for the Nutrition Services Incentive Program; and Construction; Mary Lewis, Brandon Smith, formatting requirements of KRS Chapter 13A. 100% Federal Funds. A motion was made Eric Smith, Office of Health Policy; Steve Davis, Without objection, and with agreement of the by Representative Lee to grant the request to Stephanie Hold, Jill Lee, Office of Inspector agency, the amendments were approved. September 30, 2018. Representative Horlander General; Laura Begin, Erica Brakefield, Ken Income Tax; Corporations seconded the motion, which passed without Spach, Jennifer Wolsing, Department of Public 103 KAR 16:391. Repeal of 103 KAR 16:390 objection. Health; Donna Little, Department of Medicaid; and 103 KAR 16:020. HEALTH AND FAMILY SERVICES Michelle Anderson, Elizabeth Caywood, Steven Income Tax; Individual The Department of Aging and Independent Fisher, Gretchen Marshall; Department for 103 KAR 17:151. Repeal of 103 KAR 17:150. Living (DAIL) requested an exemption from Community Based Services; Dr. Trish Freeman, Sales and Use Tax; Service and Professional the two year contracting restrictions for an Cindy Stone, Leslie Kenney, Patty Swiney. Nancy Occupations agreement with the Area Development Districts Galvagni, Mary Haynes, Betsy Johnson, Bill Barr. 103 KAR 26:110. Motor carrier repair and for the purpose of providing enhanced outreach LRC Staff: Sarah Amburgey, Stacy Auterson, replacement parts. to eligible Medicare beneficiaries for their Emily Caudill, Betsy Cupp, Ange Darnell, Emily Sales and Use Tax; Miscellaneous Retail benefits and enhanced outreach to individuals Harkenrider, Karen Howard, and Carrie Klaber. Transactions who may be eligible for several Medicare The Administrative Regulation Review 103 KAR 28:150. Collection of sales tax on and Medicaid programs for the Medicare Subcommittee met on Monday, November 13, certain motor vehicle sales. Improvements for Patients and Providers Act 2017, and submits this report: Sales and Use Tax; Administration and (MIPPA); 100% Federal Funds. A motion was Administrative Regulations Reviewed by the Accounting made by Representative Lee to grant the request subcommittee: 103 KAR 31:050. Returned merchandise. to September 30, 2018. Representative Horlander A motion was made and seconded to seconded the motion, which passed without DEPARTMENT OF STATE: Registry of approve the following amendments: (1) to objection. Election Finance: Reports and Forms amend the STATUTORY AUTHORITY 32 KAR 1:020 & E. Statement of spending paragraph to add a statutory citation; and There being no further business, the meeting intent and appointment of campaign treasurer. (2) to amend the NECESSITY, FUNCTION, adjourned at 10:31 AM. Emily Dennis, general counsel, represented the AND CONFORMITY paragraph and Sections registry. 1 through 5 to comply with the drafting A motion was made and seconded to approve requirements of KRS Chapter 13A. Without ADMINISTRATIVE REGULATION the following amendments: to amend Section objection, and with agreement of the agency, the REVIEW SUBCOMMITTEE 3 and the material incorporated by reference amendments were approved. Minutes of the November Meeting to comply with the drafting requirements of 103 KAR 31:180. Signature project refunds November 13, 2017 KRS Chapter 13A. Without objection, and with on construction costs. Call to Order and Roll Call agreement of the agency, the amendments were A motion was made and seconded to approve The November meeting of the Administrative approved. the following amendments: (1) to amend the Regulation Review Subcommittee was held on PERSONNEL CABINET: Office of the RELATES TO paragraph to correct statutory Monday, November 13, 2017, at 10:00 AM, in Secretary: Personnel Cabinet, Classified citations; and (2) to amend Sections 1 through Room 149 of the Capitol Annex. Senator Ernie 101 KAR 2:210 & E. 2018 Plan year handbook 3 to comply with the drafting requirements of Harris, Chair, called the meeting to order, and for the public employee health insurance KRS Chapter 13A. Without objection, and with the secretary called the roll. program. Sharon Burton, deputy executive agreement of the agency, the amendments were Present were: director and counsel, represented the cabinet. approved. Members : Senator Ernie Harris, Co-Chair; FINANCE AND ADMINISTRATION 103 KAR 31:190. Alternative fuel, Representative Ken Upchurch, Co-Chair; CABINET: Department of Revenue: General gasification, and renewable energy facility Senators Julie Raque Adams, and Perry B. Clark; Administration refunds on construction costs. Representatives Mary Lou Marzian, and Jason 103 KAR 1:120. Employee access to federal 103 KAR 31:200. Energy efficiency projects. Petrie. tax information (FTI). Rebecca Johnson, A motion was made and seconded to approve Guests: Emily Dennis, Registry of Election disclosure and security officer; Ed Ross, state the following amendments: (1) to amend the Finance; Sharron Burton, Personnel Cabinet; controller; and Lisa Swiger, tax policy research RELATES TO paragraph to add a statutory Rebecca Rogers Johnson, Ed Ross, Lisa Swiger, consultant, represented the department. citation; and (2) to amend the NECESSITY, Department of Revenue; Scott Greenwell, In response to questions by Co-Chair Harris, FUNCTION, AND CONFORMITY paragraph Board of Pharmacy; Nathan Goldman, Board Ms. Johnson stated that employees subject to the and Section 3 to comply with the drafting of Nursing; Jared Downs, Stacy Grider, Brian background check were previously investigated requirements of KRS Chapter 13A. Without Judy, Martin Wesley, Board of Licensure for only by a simple background check provided objection, and with agreement of the agency, the Occupational Therapy; Amber Arnett, Ron through the Administrative Office of the Courts. amendments were approved. Brooks, Karen Waldrop, Department of Fish This amendment added a federally mandated Selective Excise Tax; Motor Vehicle Usage and Wildlife Re-sources; Joe Bilby, Jason Glass, fingerprint FBI background check. 103 KAR 44:060. Motor vehicle usage tax THE KENTUCKY GENERAL ASSEMBLY 37 valuation. by which pharmacists dispensed medications Dr. Stowe stated that Sullivan University A motion was made and seconded to or other professional services. Past examples College of Pharmacy fully supported this approve the following amendments: (1) to of prescriber-driven protocols performed administrative regulation. Pharmacist education amend the STATUTORY AUTHORITY by pharmacists included administration of pre-pared students for team-based collaborative, paragraph to correct a statutory citation; and vaccinations for immunization and naloxone direct-patient care as part of an inter-professional (2) to amend the NECESSITY, FUNCTION, for opioid overdose. Controlled substances were healthcare team. Training included collecting AND CONFORMITY paragraph and Sections excluded from this administrative regulation. and interpreting evidence; prioritizing problems; 2 through 4 to comply with the drafting While vaccinations for immunization and formulating assessments and recommendations; requirements of KRS Chapter 13A. Without naloxone for opioid overdose were specifically implementing, monitoring, and adjusting plans objection, and with agreement of the agency, the established by the board’s statutory authority, of care; and documenting services. Pharmacists amendments were approved. KRS 315.010 was revised to include general were fully prepared to perform protocol-based 103 KAR 44:070. Taxation of loaner and prescriber-driven protocols; therefore, it was care, and this administrative regulation required rental motor vehicles. unnecessary to have each specific type of protocol that any protocol initiated between a pharmacist A motion was made and seconded to directly established by statute. Dr. Swiney stated and a prescriber (and authorized by the board) approve the following amendments: (1) to that the Kentucky Academy of Family Physicians must establish that any additional education amend the STATUTORY AUTHORITY (KAFP) was made aware of the development of necessary shall be completed prior to protocol paragraph to correct statutory citations; and (2) this administrative regulation and attempted implementation. to amend the NECESSITY, FUNCTION, AND to work with the board to resolve concerns. Ms. Kenney, as a pharmacist with Norton CONFORMITY paragraph and Sections 1 and After public comments, the board amended HealthCare and president for the Kentucky 2 to comply with the drafting and formatting the administrative regulation in response to a Society of Health-system Pharmacists, stated that requirements of KRS Chapter 13A. Without comment the KAFP made regarding the need to pharmacists had long been trained to perform objection, and with agreement of the agency, the exclude con-trolled substances from the possible collaboratively with prescribers. Kentucky amendments were approved. protocols, but the board did not address KAFP’s citizens deserved this type of care, which was 103 KAR 44:100. Procedures for refund other concerns. timely, proactive, and collaborative. Pharmacists based on vehicle condition. In response to questions by Senator Clark, were ready to implement this administrative A motion was made and seconded to Mr. Greenwell stated that the vaccinations for regulation. approve the following amendments: to amend immunization currently being dispensed by Dr. Swiney stated that the KAFP was Sections 1 and 3 to comply with the drafting and pharmacists were based on prescriber-driven opposed to this administrative regulation formatting requirements of KRS Chapter 13A. protocols, typically based on a general standing because the proposed protocols were Without objection, and with agreement of the order from a prescriber. inappropriately broad. When the KAFP met with agency, the amendments were approved. Dr. Freeman stated that Kentucky the Kentucky Pharmacists Association and the 103 KAR 44:120. Incorrect statement of Pharmacists Association, which represented board about this program, the initial proposal origin or certificate of title. over 1,800 pharmacy professionals throughout was for nine (9) to eleven (11) diagnoses and Tax Increment Financing the Commonwealth, enthusiastically supported associated protocols for matters such as smoking 103 KAR 50:021. Repeal of 103 KAR 50:020, this administrative regulation to establish cessation. While protocols for vaccinations for 103 KAR 50:030 and 103 KAR 50:040. procedures for board authorization of protocols immunization and naloxone for opioid overdose Office of the Controller for pharma-cists under the direction of had proven very successful, this administrative 200 KAR 38:021. Repeal of 200 KAR 38:020 prescribers to provide mutually agreed upon regulation reached far beyond that and included and 201 KAR 38:030. services. Healthcare access in Kentucky was a the potential for 1,000 new protocols. The GENERAL GOVERNMENT CABINET: growing concern, and this program promised to only limitation was the prohibition on the Board of Pharmacy be an important component in bridging the gap, dispensing of controlled substances. Patient 201 KAR 2:380. Board authorized protocols. especially in rural areas. This program provided care needed to be individualized, especially Scott Greenwell, president, represented the for evidence-based, prescriber-driven, board- for those with complicated diseases such as board. Dr. Trish Freeman, chair, Kentucky authorized protocols to enhance patient and diabetes. Improper clinical knowledge or Pharmacists Association; Dr. Cindy Stowe, dean, public health. Pharmacists were only authorized diagnosis could be life threatening. Continuity Sullivan University College of Pharmacy; and to provide these services based on specific of care may be disrupted. For example, a patient Leslie Kenney, hospital pharmacist, Kentucky prescriber-driven protocols approved by the may be in the process of being weaned from a Society Health-system Pharmacists, appeared board pursuant to rigorous criteria. Pharmacists medication, but a pharmacist may not be aware in support of this administrative regulation. did not have independent authority to prescribe that the dosage was being scaled back. This Dr. Patty Swiney, Kentucky Academy of Family and dispense medication. In response to administrative regulation required an attempted Physicians, appeared in opposition to this comments by Dr. Swiney, Dr. Freeman stated communication with the primary care provider administrative regulation. that the Kentucky Pharmacists Association met within thirty (30) days; however, this deadline In response to questions by Senator Raque with KAFP and other stakeholders regarding was unacceptable. Communication should be Adams, Mr. Greenwell stated that KRS 315.010, concerns about this administrative regulation. required within twenty-four (24) to forty-eight revised during the 2016 Regular Session of the Separate administrative regulations for each (48) hours. For a patient without a primary care General Assembly, updated the definition of protocol was going to be a lengthy process; provider, this administrative regulation does “prescription drug order” to include prescriber- therefore, a decision was made to develop a not address assisting the patient in finding a driven protocols. This administrative regulation regulatory process for the board itself to approve provider. A pharmacist, while an important was promulgated in response to that statutory or deny the protocols. The general protocol member of a healthcare team, was not a primary revision to establish board procedures for the development requirements were based on the care provider. Section 2 of this administrative authorization of prescriber-driven protocols naloxone protocol requirements. regulation referenced “other professional

38 2017 Interim LEGISLATIVE RECORD services;” however, the term was vague and requirements of KRS Chapter 13A. Without 201 KAR 36:060. Qualifying experience needed to be defined. Other pertinent issues objection, and with agreement of the agency, the under supervision. not addressed by this administrative regulation amendments were approved. A motion was made and seconded to approve included pharmacist examination fees, increased 201 KAR 28:235. Telehealth occupational the following amendments: to amend Section pharmacist malpractice requirements, patients therapy services. 4 to comply with the drafting requirements of on multiple medications, and nonmedicinal In response to a question by Co-Chair Harris, KRS Chapter 13A. Without objection, and with modalities such as physical therapy or nutritional Ms. Grider stated that telehealth occupational agreement of the agency, the amendments were assessment. The protocols are required to have therapy included services such as follow ups approved. Board of Pharmacy approval, but not necessarily regarding home exercise, caregiver education, 201 KAR 36:065. Licensed professional approval of the Kentucky Board of Medical and visual or cognitive therapy. clinical counselor supervisor. Licensure or the Kentucky Board of Nursing. A motion was made and seconded to approve A motion was made and seconded to approve There would not General Assembly input in the following amendments: (1) to amend the the following amendments: (1) to amend the the protocols as was statutorily required with STATUTORY AUTHORITY paragraph to add RELATES TO paragraph to add a statutory vaccinations for immunization. Naloxone was a statutory citation; (2) to amend Section 1 to: citation; (2) to amend Section 1 to: (a) clarify the vetted by the General Assembly for public safety (a) add a definition for “client;” and (b) include supporting documentation the applicant shall prior to that protocol being put in place. It was an occupational therapist assistant under the submit with the application; and (b) comply unclear if protocols would vary from pharmacy definition of “telehealth occupational therapy;” with the drafting and formatting requirements to pharmacy or be consistent throughout the (3) to amend Section 2 to: (a) clarify that contact of KRS Chapter 13A; and (3) to amend Section Commonwealth. The REGULATORY IMPACT methods included the use of a telephone number 3 to revise the LPCC-S Application. Without ANALYSIS AND TIERING STATEMENT did or mailing address, and an emergency on call objection, and with agreement of the agency, the not clarify if additional pharmacist education telephone number for emergency purposes; amendments were approved. would be necessary for the new protocols and, and (b) establish that a client shall be informed 201 KAR 36:070. Application, education, if so, what the procedural requirements would by the credential holder of the potential risks and examination requirements. be. The scope of this administrative regulation of inadvertent access of protected health A motion was made and seconded to approve should be limited to address some of these information, and how the credential holder may the following amendments: (1) to amend Section concerns. elect to discontinue the provision of services 4 to: (a) clarify that submission of the criminal Co-Chair Harris stated that the board through telehealth; and (4) to amend Sections background check shall be within fourteen (14) was required to ensure patient safety and 2, 3, and 5 to comply with the drafting and days of its receipt rather than of its completion; (b) care throughout the protocol system. It was formatting requirements of KRS Chapter 13A. clarify that an applicant does not have to disclose concerning, especially from a continuity of Without objection, and with agreement of the expunged cases for the purposes of a conviction; care angle, that this administrative regulation agency, the amendments were approved. and (c) require an applicant who does not receive was expanding pharmacists authority. The Board of Licensed Professional Counselors the FBI background check within 180 days of subcommittee did not request that the board defer 201 KAR 36:030. Continuing education the issuance of a license to notify the board in consideration of this administrative regulation requirements. Brian Judy, assistant attorney writing; (2) to amend Sections 4 and 6 to comply because the Interim Joint Committee on Health general, and Martin Wesley, dean, School of with the drafting requirements of KRS Chapter and Welfare and Family Services planned to Counseling, University of the Cumberlands; 13A; (3) to amend Section 6 to add provisions meet in December and this administrative former board chair; and current board member, pursuant to the approval of remedial work; regulation was going to be considered at that represented the board. and (4) to update the Application for Licensed subject matter-specific committee meeting. A motion was made and seconded to approve Professional Clinical Counselor to make Co-Chair Harris asked the board to work with the following amendments: (1) to amend Section technical corrections. Without objection, and all stakeholders to ensure patient safety and an 2 to add a state counseling licensure board to the with agreement of the agency, the amendments appropriate administrative regulation. list of providers not requiring board review and were approved. A motion was made and seconded to approve approval; and (2) to amend Section 10 to clarify: 201 KAR 36:072. Reciprocity requirements the following amendments: to amend the (a) that the continuing education requirement for applicants licensed or certified in another NECESSITY, FUNCTION, and CONFORMITY shall be completed on or before the renewal state. paragraph and Sections 1 through 4 to comply date established in 201 KAR 36:075; and (b) A motion was made and seconded to approve with the drafting and formatting requirements of if the deadline is missed, the applicant shall the following amendments: (1) to amend Section KRS Chapter 13A. Without objection, and with submit a reinstatement application. Without 2 to: (a) clarify that submission of the criminal agreement of the agency, the amendments were objection, and with agreement of the agency, the background check shall be within fourteen (14) approved. amendments were approved. days of its receipt rather than of its completion; Board of Nursing 201 KAR 36:050. Complaint management (b) clarify that an applicant does not have to 201 KAR 20:505E. Enhanced nurse licensure process. disclose expunged cases for the purposes of a compact. Nathan Goldman, general counsel, A motion was made and seconded to conviction; and (c) require an applicant who does represented the board. approve the following amendments: to amend not receive the FBI background check within Board of Licensure for Occupational Therapy Section 5 to: (1) clarify that the Complaint 180 days of the issuance of a license to notify the 201 KAR 28:200. Continuing competence. Screening Committee may recommend to the board in writing; (2) to amend Sections 1, 2, 4, Jared Downs, counsel, and Stacy Grider, board that a private written reprimand be issued; and 5 to comply with the drafting and formatting occupational therapist, represented the board. and (2) comply with the drafting and formatting requirements of KRS Chapter 13A; and (3) to A motion was made and seconded to requirements of KRS Chapter 13A. Without amend Section 5 to update the Application approve the following amendments: to amend objection, and with agreement of the agency, the for Licensed Professional Clinical Counselor Sections 1 through 6 to comply with the drafting amendments were approved. by Reciprocity. Without objection, and with THE KENTUCKY GENERAL ASSEMBLY 39 agreement of the agency, the amendments were 401 KAR 31:002. Repeal of 401 KAR 31:005, Hazardous Waste Storage, Treatment and approved. 401 KAR 31:010, 401 KAR 31:020, 401 KAR Disposal Facilities TOURISM, ARTS AND HERITAGE 31:030, 401 KAR 31:035, 401 KAR 31:040, 401 401 KAR 34:002. Repeal of 401 KAR 34:005, CABINET: Department of Fish and Wildlife KAR 31:050, 401 KAR 31:070, 401 KAR 31:100, 401 KAR 34:010, 401 KAR 34:020, 401 KAR Resources: Fish 401 KAR 31:110, 401 KAR 31:160, and 401 34:030, 401 KAR 34:040, 401 KAR 34:050, 401 301 KAR 1:086. Repeal of 301 KAR 1:085, KAR 31:170. Aaron Keatley, commissioner, and KAR 34:060, 401 KAR 34:070, 401 KAR 34:080, Mussel shell harvesting. Amber Arnett, staff Jon Maybriar, deputy director, represented the 401 KAR 34:090, 401 KAR 34:100, 401 KAR attorney; Ron Brooks, fisheries division director; Division of Waste Management pertaining to 34:110, 401 KAR 34:120, 401 KAR 34:130, 401 and Karen Waldrop, deputy commissioner, administrative regulations in 401 KAR Chapters KAR 34:180, 401 KAR 34:190, 401 KAR 34:200, represented the department. 31 through 39, 43, and 44 and KAR Title 410. 401 KAR 34:210, 401 KAR 34:220, 401 KAR In response to questions by Senator Bruce Scott, deputy secretary, and Larry Taylor, 34:230, 401 KAR 34:240, 401 KAR 34:245, 401 Clark, Mr. Brooks stated that the department’s environmental science consultant, represented KAR 34:250, 401 KAR 34:275, 401 KAR 34:280, programs to combat Asian carp encroachment the Department for Environmental Protection 401 KAR 34:281, 401 KAR 34:285, 401 KAR were developing well, although more Asian carp pertaining to administrative regulations in 401 34:287, 401 KAR 34:290, 401 KAR 34:320, 401 reduction was necessary. Western Kentucky had KAR Chapters 45 and 48. Rick Bender, executive KAR 34:330, 401 KAR 34:340, 401 KAR 34:350, three (3) fish processors, and one (1) processor advisor, represented the Department for 401 KAR 34:360, and 401 KAR 34:370. expected to triple production after contracting Natural Resources pertaining to administrative Interim Status Standards for Owners and with a new partner. The department, in regulations in 805 KAR Chapters 1 and 9. Operators of Hazardous Waste Treatment, conjunction with the public, was also creating a Jennifer Wolsing, staff attorney, represented Storage and Disposal Facilities new fish house to distribute fish to the various the Department for Public Health pertaining 401 KAR 35:002. Repeal of 401 KAR 35:005, processors. Kentucky Afield did a great job with to 902 KAR 100:180. Jeff Baird, director, 401 KAR 35:010, 401 KAR 35:020, 401 KAR the Asian carp tournament, including a video to Division of Mine Permits, and Allen Luttrell, 35:030, 401 KAR 35:040, 401 KAR 35:050, 401 demonstrate the problems and possible solutions commissioner, represented the Department for KAR 35:060, 401 KAR 35:070, 401 KAR 35:080, pertaining to encroachment of the species. Natural Resources pertaining to administrative 401 KAR 35:090, 401 KAR 35:100, 401 KAR 301 KAR 1:130. Live bait for personal use. regulations in 405 KAR Chapters 7, 8, 10, 12, 16, 35:110, 401 KAR 35:120, 401 KAR 35:130, 401 301 KAR 1:155. Commercial fishing 18, and 20. KAR 35:180, 401 KAR 35:190, 401 KAR 35:200, requirements. In response to questions by Representative 401 KAR 35:210, 401 KAR 35:220, 401 KAR 301 KAR 1:410. Taking of fish by Marzian, Mr. Keatley stated that the 35:230, 401 KAR 35:240, 401 KAR 35:245, 401 nontraditional fishing methods. administrative regulations in 401 KAR Chapters KAR 35:250, 401 KAR 35:260, 401 KAR 35:270, In response to questions by Co-Chair 31 through 39, 43, and 44 and KAR Title 410 401 KAR 35:275, 401 KAR 35:280, 401 KAR Upchurch, Mr. Brooks stated that nontraditional were being reorganized, but the requirements 35:281, 401 KAR 35:285, 401 KAR 35:290, 401 fishing methods included fishing techniques such were not being substantively amended. These KAR 35:310, 401 KAR 35:320, 401 KAR 35:330, as trot lines, jug lines, spear fishing, noodling, or administrative regulations did not deviate 401 KAR 35:340, and 401 KAR 35:350. any fishing method that did not include a fishing from federal requirements except in instances Standards for the Management of Specific pole and line. of statutorily required, Kentucky-specificHazardous Wastes and Specific Types of Department of Agriculture: Office of provisions. Fees mostly remained the same; Hazardous Waste Consumer Protection: Aerial Recreational however, there was a new, voluntary fee for 401 KAR 36:002. Repeal of 401 KAR 36:005, Devices and Facilities very small generators in specific circumstances. 401 KAR 36:020, 401 KAR 36:025, 401 KAR 302 KAR 17:010. Requirements for operating Discounts were available regarding that fee. 36:030, 401 KAR 36:060, 401 KAR 36:070, 401 and inspecting aerial recreational devices and In response to a question by Co-Chair KAR 36:080, and 401 KAR 36:090. facilities. Joe Bilby, general counsel; Jason Harris, Mr. Keatley stated that this was part of a Land Disposal Restrictions Glass, assistant director; and Clint Quarles, staff seven (7) to eight (8) years process to consolidate 401 KAR 37:002. Repeal of 401 KAR 37:005, attorney, represented the department. and streamline these administrative regulations. 401 KAR 37:010, 401 KAR 37:020, 401 KAR In response to questions by Co-Chair In response to a question by Co-Chair 37:030, 401 KAR 37:040, 401 KAR 37:050, 401 Harris, Mr. Bilby stated that this administrative Upchurch, Mr. Keatley stated that the primary KAR 37:060, and 401 KAR 37:110. regulation did not apply to private zip lines, concern from petroleum marketers was the fee; Hazardous Waste Permitting Process such as a backyard assembly for family use. Mr. therefore, an amendment was made to clarify 401 KAR 38:002. Repeal of 401 KAR 38:005, Quarles stated that the department expected that that the fee was voluntary. 401 KAR 38:010, 401 KAR 38:020, 401 KAR approximately 100 zip lines would be subject to Standards Applicable to Generators of 38:025, 401 KAR 38:030, 401 KAR 38:040, 401 this administrative regulation. Hazardous Waste KAR 38:050, 401 KAR 38:060, 401 KAR 38:070, A motion was made and seconded to 401 KAR 32:002. Repeal of 401 KAR 32:005, 401 KAR 38:080, 401 KAR 38:090, 401 KAR approve the following amendments: to amend 401 KAR 32:010, 401 KAR 32:020, 401 KAR 38:150, 401 KAR 38:160, 401 KAR 38:170, 401 Sections 1 through 5 and 7 through 15 to comply 32:030, 401 KAR 32:040, 401 KAR 32:050, 401 KAR 38:180, 401 KAR 38:190, 401 KAR 38:200, with the drafting and formatting requirements of KAR 32:060, 401 KAR 32:065, and 401 KAR 401 KAR 38:210, 401 KAR 38:230, 401 KAR KRS Chapter 13A. Without objection, and with 32:100. 38:240, 401 KAR 38:250, 401 KAR 38:260, 401 agreement of the agency, the amendments were Standards Applicable to Transporters of KAR 38:270, 401 KAR 38:290, 401 KAR 38:300, approved. Hazardous Waste 401 KAR 38:310, 401 KAR 38:320, 401 KAR ENERGY AND ENVIRONMENT 401 KAR 33:002. Repeal of 401 KAR 33:005, 38:330, and 401 KAR 38:500. CABINET: Department for Environmental 401 KAR 33:010, 401 KAR 33:020, and 401 KAR Hazardous Waste Fees Protection: Division of Waste Management: 33:030. 401 KAR 39:005. Definitions for 401 KAR Identification and Listing of Hazardous Waste Standards for Owners and Operators of Chapter 39.

40 2017 Interim LEGISLATIVE RECORD A motion was made and seconded to 44:080. the following amendments: (1) to amend the approve the following amendments: (1) to Special Waste RELATES TO paragraph to add a statutory amend the RELATES TO paragraph to correct 401 KAR 45:060. Special waste permit-by- citation; and (2) to amend Section 1 to comply citations; and (2) to amend the STATUTORY rule. with the drafting and formatting requirements of AUTHORITY and NECESSITY, FUNCTION, A motion was made and seconded to approve KRS Chapter 13A. Without objection, and with AND CONFORMITY paragraphs and Section the following amendments: to amend Section agreement of the agency, the amendments were 1 to comply with the drafting and formatting 1 to comply with the drafting and formatting approved. requirements of KRS Chapter 13A. Without requirements of KRS Chapter 13A. Without 405 KAR 7:095. Assessment of civil penalties. objection, and with agreement of the agency, the objection, and with agreement of the agency, the A motion was made and seconded to amendments were approved. amendments were approved. approve the following amendments: (1) to 401 KAR 39:011. Repeal of 401 KAR 39:100 Standards for Solid Waste Facilities amend the STATUTORY AUTHORITY and 401 KAR 39:110. 401 KAR 48:005. Definitions related to 401 paragraph to delete a statutory citation; and 401 KAR 39:060. General requirements. KAR Chapter 48. (2) to amend the NECESSITY, FUNCTION, A motion was made and seconded to approve A motion was made and seconded AND CONFORMITY paragraph and Sections the following amendments: (1) to amend the to approve the following amendments: to 1 through 7 and Appendix A to comply with RELATES TO paragraph to correct citations; amend the NECESSITY, FUNCTION, AND the drafting and formatting requirements of and (2) to amend Sections 1 through 3, 5, and CONFORMITY paragraph and Section 1 KRS Chapter 13A. Without objection, and with 6 to comply with the drafting and formatting to comply with the drafting and formatting agreement of the agency, the amendments were requirements of KRS Chapter 13A. Without requirements of KRS Chapter 13A. Without approved. objection, and with agreement of the agency, the objection, and with agreement of the agency, the Permits amendments were approved. amendments were approved. 405 KAR 8:001. Definitions for 405 KAR 401 KAR 39:080. Hazardous waste handlers. 401 KAR 48:090. Operating requirements Chapter 8. A motion was made and seconded to for contained landfills. A motion was made and seconded to approve approve the following amendments: to amend A motion was made and seconded to the following amendments: (1) to amend the Sections 1, 4, and 5 to comply with the drafting approve the following amendments: (1) to RELATES TO paragraph to add a statutory requirements of KRS Chapter 13A. Without amend the NECESSITY, FUNCTION, AND citation; and (2) to amend Section 1 to comply objection, and with agreement of the agency, the CONFORMITY paragraph and Sections 3, 4, with the drafting and formatting requirements of amendments were approved. 10, 11, and 14 through 16 to comply with the KRS Chapter 13A. Without objection, and with 401 KAR 39:090. Hazardous waste permit drafting requirements of KRS Chapter 13A; and agreement of the agency, the amendments were program. (2) to amend Section 3 to require, rather than approved. A motion was made and seconded to allow, a public comment process for a minor 405 KAR 8:010. General provisions for approve the following amendments: (1) to permit modification. Without objection, and permits. amend the RELATES TO and STATUTORY with agreement of the agency, the amendments A motion was made and seconded AUTHORITY paragraph to add citations; and were approved. to approve the following amendments: to (2) to amend the NECESSITY, FUNCTION, Department for Natural Resources: Division amend the NECESSITY, FUNCTION, AND AND CONFORMITY paragraph and Sections of Mine Permits: General Provisions CONFORMITY paragraph and Sections 2, 1, 2, and 5 through 9 to comply with the drafting 405 KAR 7:001. Definitions for 405 KAR 3, 5 through 9, 11 through 14, and 16 through and formatting requirements of KRS Chapter Chapter 7. 25 to comply with the drafting and formatting 13A. Without objection, and with agreement of In response to questions by Co-Chair requirements of KRS Chapter 13A. Without the agency, the amendments were approved. Harris, Mr. Luttrell stated that, regarding objection, and with agreement of the agency, the 401 KAR 39:120. Permit review, administrative regulations in 405 KAR Chapters amendments were approved. determination timetables, and fees. 7, 8, 10, 12, 16, 18, and 20, “in situ mining” was 405 KAR 8:040. Underground coal mining A motion was made and seconded extracting coal with the coal seam in place by permits. to approve the following amendments: to pneumatic or chemical processes. Mr. Luttrell A motion was made and seconded amend the NECESSITY, FUNCTION, AND did not know of any in situ mining conducted to approve the following amendments: to CONFORMITY paragraph and Sections 3, 4, in Kentucky; however, the requirements were amend the NECESSITY, FUNCTION, AND and 6 to comply with the drafting requirements federally mandated. “Shadow area” was the area CONFORMITY paragraph and Sections 1 of KRS Chapter 13A. Without objection, and above drilling in situations of auger mining or, through 5, 9, 10, 12 through 16, 18, 20 through with agreement of the agency, the amendments in underground mining, the area over the face 24, 26 through 32, and 34 through 38 to comply were approved. excavation or box cut. “Auger mining” was a with the drafting and formatting requirements of Standards for Special Collection System process of removing a portion of the overburden KRS Chapter 13A. Without objection, and with Wastes and drilling into the coal seam to extract coal. agreement of the agency, the amendments were 401 KAR 43:002. Repeal of 401 KAR 43:005, While there were few impacts to the surface approved. 401 KAR 43:010, 401 KAR 43:020, 401 KAR in these types of mining, mining activities 405 KAR 8:050. Permits for special categories 43:030, 401 KAR 43:040, 401 KAR 43:050, 401 continued to be subject to requirements for of mining. KAR 43:060, and 401 KAR 43:070. things like subsidence, depression mitigation, A motion was made and seconded to approve Standards for the Management of Used Oil and notice to on-site dwellings. the following amendments: to amend 401 KAR 44:002. Repeal of 401 KAR 44:005, In response to a question by Senator Adams, the STATUTORY AUTHORITY 401 KAR 44:010, 401 KAR 44:020, 401 KAR Mr. Luttrell stated that the “shadow area” and NECESSITY, FUNCTION, AND 44:030, 401 KAR 44:040, 401 KAR 44:050, 401 provisions applied only to coal mining activities. CONFORMITY paragraphs and Sections 1 KAR 44:060, 401 KAR 44:070, and 401 KAR A motion was made and seconded to approve through 9 to comply with the drafting and THE KENTUCKY GENERAL ASSEMBLY 41 formatting requirements of KRS Chapter 13A. agency, the amendments were approved. A motion was made and seconded to approve Without objection, and with agreement of the 405 KAR 18:010. General provisions. the following amendments: (1) to amend the agency, the amendments were approved. A motion was made and seconded RELATES TO paragraph to add a statutory Bond and Insurance Requirements to approve the following amendments: to citation; and (2) amends the NECESSITY, 405 KAR 10:001. Definitions for 405 KAR amend the NECESSITY, FUNCTION, AND FUNCTION, AND CONFORMITY paragraph Chapter 10. CONFORMITY paragraph and Sections 1 and Section 1 to comply with the drafting A motion was made and seconded through 6 to comply with the drafting and requirements of KRS Chapter 13A. Without to approve the following amendments: to formatting requirements of KRS Chapter 13A. objection, and with agreement of the agency, the amend the NECESSITY, FUNCTION, AND Without objection, and with agreement of the amendments were approved. CONFORMITY paragraph and Section 1 agency, the amendments were approved. 405 KAR 20:090. Underground only permits. to comply with the drafting and formatting 405 KAR 18:040. Casing and sealing of A motion was made and seconded requirements of KRS Chapter 13A. Without underground openings. to approve the following amendments: to objection, and with agreement of the agency, the A motion was made and seconded amend the NECESSITY, FUNCTION, AND amendments were approved. to approve the following amendments: to CONFORMITY paragraph and Sections 1 and Inspection and Enforcement amend the NECESSITY, FUNCTION, AND 3 to comply with the drafting requirements of 405 KAR 12:001. Definitions for 405 KAR CONFORMITY paragraph and Sections 1 KRS Chapter 13A. Without objection, and with Chapter 12. through 3 to comply with the drafting and agreement of the agency, the amendments were A motion was made and seconded formatting requirements of KRS Chapter 13A. approved. to approve the following amendments: to Without objection, and with agreement of the Division of Waste Management: Certificates amend the NECESSITY, FUNCTION, AND agency, the amendments were approved. of Environmental Safety and Public Necessity CONFORMITY paragraph and Section 1 405 KAR 18:060. General hydrologic 410 KAR 1:002. Repeal of 410 KAR 1:010 to comply with the drafting and formatting requirements. and 410 KAR 1:020. requirements of KRS Chapter 13A. Without A motion was made and seconded ENERGY AND ENVIRONMENT objection, and with agreement of the agency, the to approve the following amendments: to CABINET: Department for Natural Resources: amendments were approved. amend the NECESSITY, FUNCTION, AND Division of Oil and Gas: Division Performance Standards for Surface Mining CONFORMITY paragraph and Sections 1, 2, 805 KAR 1:060. Plugging wells. Activities 4, and 6 through 12 to comply with the drafting A motion was made and seconded to approve 405 KAR 16:001. Definitions for 405 KAR and formatting requirements of KRS Chapter the following amendments: (1) to amend the Chapter 16. 13A. Without objection, and with agreement of RELATES TO paragraph to add citations; (2) A motion was made and seconded to approve the agency, the amendments were approved. to amend Section 2 to clarify expiration; and the following amendments: (1) to amend the 405 KAR 18:110. Surface and groundwater (3) to amend the NECESSITY, FUNCTION, RELATES TO paragraph to add a statutory monitoring. AND CONFORMITY paragraph and Sections citation; and (2) to amend Section 1 to comply A motion was made and seconded to approve 2 through 8 to comply with the drafting and with the drafting and formatting requirements of the following amendments: to amend the formatting requirements of KRS Chapter 13A. KRS Chapter 13A. Without objection, and with RELATES TO and NECESSITY, FUNCTION, Without objection, and with agreement of the agreement of the agency, the amendments were AND CONFORMITY paragraphs and Sections agency, the amendments were approved. approved. 1 through 3 to comply with the drafting and 805 KAR 1:071. Repeal of 805 KAR 1:070. 405 KAR 16:110. Surface and groundwater formatting requirements of KRS Chapter 13A. Division of Oil and Gas: Coal Bed Methane monitoring. Without objection, and with agreement of the 805 KAR 9:041. Repeal of 805 KAR 9:040. A motion was made and seconded to agency, the amendments were approved. PUBLIC PROTECTION CABINET: approve the following amendments: (1) to 405 KAR 18:260. Other facilities. Department of Housing, Buildings and amend the RELATES TO and STATUTORY A motion was made and seconded Construction: Division of Plumbing, Boiler AUTHORITY paragraph to correct citations; to approve the following amendments: to Section: Boilers and Pressure Vessels and (2) to amend the NECESSITY, FUNCTION, amend the NECESSITY, FUNCTION, AND 815 KAR 15:010. Definitions for 815 KAR AND CONFORMITY paragraph and Sections CONFORMITY paragraph and Sections 1 and Chapter 15. Mark Jordan, chief boiler inspector; 1 through 3 to comply with the drafting and 2 to comply with the drafting requirements of Steven Milby, commissioner; and David formatting requirements of KRS Chapter 13A. KRS Chapter 13A. Without objection, and with Startsman, general counsel, represented the Without objection, and with agreement of the agreement of the agency, the amendments were division. agency, the amendments were approved. approved. In response to questions by Co-Chair Harris, Performance Standards for Underground Special Performance Standards Mr. Jordan stated that these administrative Mining Activities 405 KAR 20:001. Definitions for 405 KAR regulations were consistent with national 405 KAR 18:001. Definitions for 405 KAR Chapter 20. standards established in the National Board Chapter 18. A motion was made and seconded Inspection Code. Mr. Startsman stated that the A motion was made and seconded to approve to approve the following amendments: to division did not receive comments of concern the following amendments: (1) to amend the amend the NECESSITY, FUNCTION, AND from stakeholders who seemed to recognize the RELATES TO paragraph to add a statutory CONFORMITY paragraph and Section 1 need for standardization. citation; and (2) to amend the NECESSITY, to comply with the drafting and formatting A motion was made and seconded FUNCTION, AND CONFORMITY paragraph requirements of KRS Chapter 13A. Without to approve the following amendments: to and Section 1 to comply with the drafting and objection, and with agreement of the agency, the amend the NECESSITY, FUNCTION, AND format-ting requirements of KRS Chapter 13A. amendments were approved. CONFORMITY paragraph and Section 1 Without objection, and with agreement of the 405 KAR 20:080. In situ processing. to comply with the drafting and formatting

42 2017 Interim LEGISLATIVE RECORD requirements of KRS Chapter 13A. Without comments were submit-ted after filing. This concern regarding these changes to the State objection, and with agreement of the agency, the version of the State Health Plan removed a Health Plan. The cabinet’s own data indicated amendments were approved. pilot project related to cardiac catheterization a surplus of long-term care beds. This plan was 815 KAR 15:025. New installations, general in hospitals, streamlined home health services, bad public policy, and the cabinet was acting in design, construction, and inspection criteria for and addressed post-acute rehabilitation related excess of its statutory authority. Kentucky was boilers, pressure vessels, and pressure piping. to long-term care. Post-acute rehabilitation below the national average on readmission to a A motion was made and seconded to was not related just to nursing home beds hospital within thirty (30) days after discharge. approve the following amendments: (1) to pursuant to Medicare, but also included skilled The association requested that this administrative amend the STATUTORY AUTHORITY nursing facility beds pursuant to both Medicare regulation be amended to remove the post-acute paragraph to add a statutory citation; and (2) and Medicaid. This administrative regulation transitional-bed four (4) site pilot project. to amend the NECESSITY, FUNCTION, AND created a post-acute transitional-bed four (4) Ms. Haynes stated that Nazareth Home CONFORMITY paragraph and Sections 3 and site pilot project, including two (2) urban sites was opposed to the post-acute transitional-bed 5 to comply with the drafting requirements of and two (2) rural sites, to evaluate whether or four (4) site pilot project because the rationale KRS Chapter 13A. Without objection, and with not these beds would improve quality of care, and criteria for the project was erroneous. agreement of the agency, the amendments were reduce hospital readmission rates, and improve There was already a surplus of beds, and this approved. access for Kentucky’s aging population. The plan provided the potential for an unlimited 815 KAR 15:026. Existing boilers and office did not want to defer consideration of number of skilled nursing facility beds. There pressure vessels; testing, repairs, inspection, and this administrative regulation to the December was not a clear problem the pilot program was safety factors. subcommittee meeting because there had already attempting to remedy. Long-term care facilities A motion was made and seconded been sufficient public input and the office did were subject to the same financial penalties to approve the following amendments: to not want to further delay important programs for patient readmission within thirty (30) days amend the NECESSITY, FUNCTION, AND related to the opioid abuse epidemic and after discharge. Performance penalties were a CONFORMITY paragraph and Sections neonatal intensive care units. Ms. Lewis stated major issue in a state that ranked high in obesity, 1 through 3 to comply with the drafting that this administrative regulation provided smoking, lack of physical activity, poverty, and requirements of KRS Chapter 13A. Without flexibility by allowing capable hospitals, exterior hypertension. Insurance markets were unstable objection, and with agreement of the agency, the to the Certificate of Need process, to treat infants and would affect long-term care facilities; amendments were approved. that needed additional special neonatal services. therefore, this project was untimely. Pilot project 815 KAR 15:027. Fees and certificates for Senator Adams stated that, as with the goals and criteria were vague. boiler and pressure vessel inspection. Board of Pharmacy administrative regulation, In response to a question by Representative A motion was made and seconded 201 KAR 2:380, this administrative regulation Marzian, Ms. Haynes stated that SNF beds were to approve the following amendments: to would be considered further by the Interim Joint skilled nursing facility beds. amend the NECESSITY, FUNCTION, AND Committee on Health and Welfare and Family Representative Marzian stated that she CONFORMITY paragraph and Section 1 to Services at its December meeting. would like to see an amendment at the December comply with the drafting requirements of KRS In response to a question by Senator Clark, meeting of the Interim Joint Committee on Health Chapter 13A. Without objection, and with Mr. Clark stated that employees had criminal and Welfare and Family Services, to remove the agreement of the agency, the amendments were background checks through the Kentucky State post-acute transitional-bed four (4) site pilot approved. Police. project from the State Health Plan until more 815 KAR 15:041. Repeal of 815 KAR 15:040, Ms. Galvagni stated that Kentucky Hospital data was available and more specific standards 815 KAR 15:051, and 815 KAR 15:060. Association strongly supported the State Health were included. It was important to protect CABINET FOR HEALTH AND FAMILY Plan. The neonatal intensive care unit flexibility taxpayer funds when there was already a surplus SERVICES: Office of Health Benefit Exchange: was important, especially in rural areas. The of beds. Representative Marzian requested that Office of Health Policy: State Health Plan home health changes and the transitional-bed the cabinet work with Ms. Johnson and Ms. 900 KAR 5:020. State Health Plan for four (4) site pilot project were also good for Haynes and be prepared with detailed support facilities and services. Eric Clark, chief of Kentucky. Currently, hospitals received financial data at the December committee meeting. staff; Molly Lewis, deputy general counsel penalties if a patient was discharged and In response to questions by Co-Chair Harris, and acting director of Certificate of Need; and readmitted within thirty (30) days, regardless of Ms. Lewis stated that each applicant was required Brandon Smith, director, Office of Legislative the reason. In 2017, the state-wide penalty total to demonstrate the ability to provide a given type and Regulatory Affairs, represented the office. was $18 million. Patients had access problems of care for a specified length of time, with the Nancy Galvagni, senior vice president, Kentucky in finding quality high-skilled long-term care patient then being discharged to the needed care Hospital Association, appeared in support of this providers. It was taking from weeks to months situation. The pilot project was needed because administrative regulation. Mary Haynes, CEO, to place patients in certain situations. This this was a different type of service, outside of the Nazareth Home, and Betsy Johnson, president, administrative regulation gave those patients normal need methodology. There were complex Kentucky Association of Healthcare Facilities, a choice to stay in the hospital or seek another reasons for surplus beds, such as gender of the appeared in opposition to this administrative provider facility. patient that may necessitate one (1) person per regulation. Ms. Johnson stated that the Kentucky room, rather than multiple people. In response to questions by Senator Association of Healthcare Facilities was opposed In response to a question by Co-Chair Adams, Mr. Clark stated that the office to this administrative regulation because Upchurch, Ms. Lewis stated that the beds considered stakeholder input in developing the post-acute transitional-bed four (4) site discussed in Clinton County were skilled nursing this administrative regulation. The office pilot project increased costs to the Medicaid facility beds. received 420 public comments prior to filing program. Members of the Kentucky Association Co-Chair Harris stated that Kentucky this administrative regulation, and 400 public of Healthcare Facilities filed over 200 letters of was in a difficult time period for these issues. THE KENTUCKY GENERAL ASSEMBLY 43 Communication was key. and WHO from the list of radon training courses Affairs, represented the division. A motion was made and seconded to approve or standard operating procedures approved. In response to questions by Representative the following amendments: (1) to amend Section Without objection, and with agreement of the Petrie, Ms. Caywood stated that the division had 2 to change the edition date of the state health agency, the amendments were approved. completed an analysis of the court’s foster care plan; and (2) to amend the material incorporated Radiology determination in the case of D.O. v. Glisson; by reference to delete superfluous language. 902 KAR 100:180. Technologically enhanced however, the programmatic planning from Without objection, and with agreement of the naturally occurring radioactive material related that analysis was still ongoing. The division agency, the amendments were approved. to oil and gas development. was presenting the analysis at the Interim Joint Division of Audits and Investigations: A motion was made and seconded to Committee on Appropriations and Revenue Controlled Substances approve the following amendments: (1) to at the November 20 meeting. Further details 902 KAR 55:110. Monitoring system for amend the RELATES TO paragraph to correct would be discussed at that committee meeting. prescription controlled substances. Steve Davis, citations; and (2) to amend the NECESSITY, Programmatic changes had the potential to inspector general; Stephanie Hold, director, FUNCTION, AND CONFORMITY paragraph impact state plans, funding, and administrative Office of Legal Services; Jill Lee, pharmacist; and and Sections 2 through 8 to comply with the regulations. The division had a Kinship Care Brandon Smith, director, Office of Legislative drafting requirements of KRS Chapter 13A. Hotline for those who may be eligible for foster and Regulatory Affairs, represented the division. Without objection, and with agreement of the care maintenance payments. Each case had to be A motion was made and seconded agency, the amendments were approved. reviewed individually to determine eligibility. to approve the following amendments: to Department for Medicaid Services: Division Representative Petrie expressed his gratitude amend the NECESSITY, FUNCTION, AND of Policy and Operations: Medicaid Services to this agency. This was one of the most important CONFORMITY paragraph and Sections 2 and 907 KAR 1:045. Reimbursement provisions areas of service within government. 11 to comply with the drafting requirements of and requirements regarding community mental In response to questions by Senator Clark, KRS Chapter 13A. Without objection, and with health center services. Donna Little, regulatory Ms. Caywood stated that, on November 5, 2017, agreement of the agency, the amendments were compliance senior policy advisor, and Brandon at the time the Statewide Foster Care Data Fact approved. Smith, director, Office of Legislative and Sheet was created, Kentucky had 8,667 children Department for Public Health: Radon Regulatory Affairs, represented the division. in out-of-home care. Ms. Anderson stated that it 902 KAR 95:040. Radon Contractor In response to a question by Co-Chair Harris, was not possible to determine how many of these Certification Program. Laura Begin, legislative Ms. Little stated that 907 KAR 1:102 and 1:104 children were removed from a home because the and regulatory analyst; Erica Brakefield, section had agency amendments to revise definitions for parent only had a violation related to cannabis, super-visor; Brandon Smith, director, Office consistency with other administrative regulations but the number was probably very low. Usually of Legislative and Regulatory Affairs; and that were amended through the Amended After a removal related to cannabis included other Ken Spach, branch manager, represented the Comments process. complicating factors such as neglect or abuse. department. 907 KAR 1:047. Community mental health Mr. Clark expressed his gratitude to all those In response to questions by Co-Chair center primary care services. who worked so hard for almost a decade on this Harris, Ms. Begin stated that the department met 907 KAR 1:102. Advanced practice registered important regulatory package. with providers and made further amendments nurse services. 922 KAR 1:320. Service appeals. to this administrative regulation to address A motion was made and seconded to amend 922 KAR 1:330. Child protective services. public health concerns. The underlying concern Section 1 to revise the definition of “provider 922 KAR 1:421. Repeal of 922 KAR 1:420. about competition in the marketplace was group” for consistency with other department 922 KAR 1:430. Child protective services in- also ad-dressed in balance with the public regulations. Without objection, and with home case planning and service delivery. health concerns. This program had very strict agreement of the agency, the amendments were A motion was made and seconded to authorizing statutes; however, this administrative approved. approve the following amendments: to amend regulation was able to delete some administrative 907 KAR 1:104. Reimbursement for Section 3 to establish requirements. Without burdens while still protecting public health. advanced practice registered nurse services. objection, and with agreement of the agency, the A motion was made and seconded to A motion was made and seconded to amendments were approved. approve the following amendments: (1) to amend approve the following amendments: to amend 922 KAR 1:470. Central registry. Sections 1, 2, 4 through 7, and 9 to comply with Section 1 to revise the definition of “provider A motion was made and seconded to the drafting and formatting requirements of KRS group” for consistency with other department approve the following amendments: to amend Chapter 13A; (2) to amend Section 1 to delete administrative regulations. Without objection, Section 5 and the Child Care Central Registry three (3) definitions; (3) to amend Section 4 to and with agreement of the agency, the Check form to: (1) change an edition date; and delete language that a mitigation system shall be amendments were approved. (2) comply with the formatting requirements of designed to reduce a radon concentration in each 907 KAR 1:479. Durable medical equipment KRS Chapter 13A. Without objection, and with area within the footprint of the building as low as covered benefits and reimbursement. agreement of the agency, the amendments were reasonably achievable; (4) to amend Section 4 to Department for Community Based Services: approved. require additional radon mitigation and testing Division of Protection and Permanency: Child 922 KAR 1:480. Appeal of child abuse and until the level is as low as reasonably achievable Welfare neglect investigative findings. if there was a failure to achieve a reduction below 922 KAR 1:140 & E. Foster care and adoption 922 KAR 1:490 & E. Background checks for the EPA’s action level of four and zero-tenths (4.0) permanency services. Michelle Anderson, foster and adoptive parents, caretaker relatives, picocuries per liter; and (5) to amend Section 5 assistant director; Elizabeth Caywood, executive kinship caregivers, fictive kin, and reporting to require a dually certified person to acquire advisor; Eric Clark, chief of staff; Gretchen requirements. sixteen (16) hours of continuing educational Marshall, assistant director; and Brandon Smith, 922 KAR 1:550 & E. Operator’s license for credits per year and to delete the ABIH, AIHA, director, Office of Legislative and Regulatory children in the custody of the cabinet.

44 2017 Interim LEGISLATIVE RECORD Adult Services TRANSPORTATION CABINET: Guests: Mr. Scott Aubrey, Director, Real 922 KAR 5:040. Standards for state-funded Department of Vehicle Regulation: Division of Properties; Mr. Ryan Barrow, Executive domestic violence shelters. Michelle Anderson, Driver Licensing: Administration Director, Office of Financial Management; Ms. assistant director; Elizabeth Caywood, executive 601 KAR 2:030 & E. Ignition interlock. Ashley Adams, Financial Analyst, Kentucky advisor; and Steven Fisher, branch manager, Department of Aviation: Airport Infrastructure Authority; and Mr. Jeremy Ratliff, represented the department. Development Deputy Director, Legal Services, Kentucky A motion was made and seconded to 602 KAR 15:030. Fees for services and Housing Corporation. approve the following amendments: to amend facilities of the Capitol City Airport. LRC Staff: Katherine Halloran, Committee Sections 2, 4, and 7 to comply with the drafting Division of ENERGY AND Staff Administrator; Julia Wang, Legislative requirements of KRS Chapter 13A. Without ENVIRONMENT CABINET: Department for Analyst; and Jenny Wells Lathrem, Committee objection, and with agreement of the agency, the Natural Resources: Mine Safety: Miner Training, Assistant. amendments were approved. Education and Certification Approval of Minutes (October 17, 2017) 922 KAR 5:090. General adult services. 805 KAR 7:020. Training and certification of A motion was made by Representative A motion was made and seconded to inexperienced miners. Brown to approve the minutes of the October approve the following amendment: to amend 805 KAR 7:030. Annual retraining. 17, 2017 meeting. The motion was seconded by Section 3 to clarify when a supervisor may 805 KAR 7:040. Training of newly employed Senator Carroll and approved by voice vote. approve an extension of time to complete an miners. Correspondence and Information Items adult service assessment. Without objection, and 805 KAR 7:050. Training of miners for new Ms. Halloran reported two items: the with agreement of the agency, the amendment work assignments. University of Kentucky’s intent to use the was approved. 805 KAR 7:060. Program approval. Construction Management at-Risk project 922 KAR 5:111. Repeal of 922 KAR 5:100 Sanctions and Penalties delivery method for the partial renovation of and 922 KAR 5:102. 805 KAR 8:030. Criteria for the imposition its Chemistry-Physics building and the Cabinet Other Business: Senator Raque Adams and enforcement of sanctions against certified for Economic Development’s annual Economic made a motion, seconded by Representative miners. Development Bond (EDB) report, showing Marzian pursuant to KRS 13A.030(1) and (3), to 805 KAR 8:040. Criteria for the imposition projects approved over the prior fiscal year as request that a representative of the Department and enforcement of sanctions against owners well as the compliance status of projects approved of Insurance appear at the December 12, 2017 and part-owners of licensed premises. over the past five fiscal years. meeting of the subcommittee to discuss a 805 KAR 8:050. Criteria for the imposition Project Report from the University of potential amendment to clarify 806 KAR 12:095, and enforcement of sanctions against Kentucky Section 9(1)(b). Without objection, the motion noncertified personnel. Ms. Halloran reported two medical was approved. CABINET FOR HEALTH AND FAMILY equipment purchases for UK Healthcare: The following administrative regulations SERVICES: Office of Health Benefit Exchange: a $233,000 surgical case cart washer and were deferred or removed from the November Office of Health Policy: Kentucky Health Benefit disinfector for Good Samaritan Hospital and a 13, 2017, subcommittee agenda: Exchange $237,300 surgical microscope for A.B. Chandler GENERAL GOVERNMENT CABINET: 900 KAR 10:031. Repeal of 900 KAR 10:030 Hospital. Board of Pharmacy and 900 KAR 10:100. Lease Report from the Finance and 201 KAR 2:390 & E. Third-party logistics Payment and Services Administration Cabinet provider. 907 KAR 3:005. Coverage of physicians’ Mr. Aubrey reported two renewals for 201 KAR 2:400 & E. Outsourcing facility. services. privately leased office space under the same Board of Nursing 907 KAR 3:010. Reimbursement for terms and conditions through June 30, 2019: 201 KAR 20:065. Professional standards for physicians’ services. Unified Prosecutorial System, Jefferson County, prescribing Buprenorphine-Mono-Product or The subcommittee adjourned at 12:20 p.m. $16.55 per square foot for 24,233 square feet Buprenorphine-Combined-with-Naloxone by until December 12, 2017, at 1 p.m. and the Cabinet for Health and Family Services APRNs for medication assisted treatment for (CHFS), Clark County, $10.00 per square foot opioid use disorder. CAPITAL PROJECTS AND BOND for 10,946 square feet. Hunting and Fishing OVERSIGHT COMMITTEE Mr. Aubrey reported one lease modification 301 KAR 3:022. License, tag, and permit fees. Minutes under $50,000; amortization of improvements ENERGY AND ENVIRONMENT November 21, 2017 through June 30, 2020 for the Department CABINET: Department for Environmental Call to Order and Roll Call of Corrections in Barren County. Of the two Protection: Division of Air Quality: New Source The Capital Projects and Bond Oversight estimates for renovations and security upgrades; Standards Committee meeting was held on Tuesday, low bids were accepted from J.A. Contracting, 401 KAR 59:015. New indirect heat November 21, 2017, at 1:00 PM, in Room 169 of Barren County Glass, and Chris’s Window exchangers. the Capitol Annex. Representative Phil Moffett, Tinting. No action was required. Existing Source Standards Chair, called the meeting to order, and the Mr. Aubrey submitted a lease modification 401 KAR 61:015. Existing indirect heat secretary called the roll. over $50,000; increase in square footage to exchangers. Present were: accommodate additional staff and a two year JUSTICE AND PUBLIC SAFETY CABINET: Members: Senator Stan Humphries, Co- extension through June 30, 2025 for the Cabinet Department of Juvenile Justice: Parole Board Chair; Representative Phil Moffett, Co-Chair; for Health and Family Services in Kenton 505 KAR 1:170. Department of Juvenile Senators Julian M. Carroll and Rick Girdler; County. The modification will increase the total Justice Policies and procedures: Prison Rape Representatives Larry Brown, Will Coursey, and square footage to 57,773 sq. ft., at $15.45 per sq. Elimination Act of 2003 (PREA). Steven Rudy. ft., resulting in a total annual cost of $892,582.84. THE KENTUCKY GENERAL ASSEMBLY 45 Mr. Aubrey submitted a tenant improvement by unanimous roll call vote. vote. request for the 300 Building in Franklin County. Representative Moffett recommended that A motion was made by Representative The Energy and Environment Cabinet (EEC) approval of Fund B Loan be contingent upon the Coursey to approve the new bond issues, asked for power outlets as well as coaxial cables PSC’s approval of the rate increase. A motion was seconded by Senator Humphries, and approved at eye level for wall monitors in seven executive made by Senator Carroll to approve the Fund B by unanimous roll call vote. offices. Of the two estimates obtained; one for Loan, contingent upon the PSC’s approval of the Mr. Barrow reported a previously approved $3,575 from inTECHgrated Systems and one rate increase, seconded by Representative Rudy, issue for KHC Tax-Exempt Conduit Multifamily $2,940 from Fayette Electrical Service, EEC and approved by unanimous roll call vote. Housing Revenue Notes, Guardian Court recommended acceptance of the lower one. With Apartments Project, Series 2017. The net the management fee, the cost will be $3,145.80, Mr. Barrow submitted two new Kentucky proceeds were approximately $13.3 million. bringing the total cost of the improvements to Housing Corporation (KHC) tax-exempt The statutorily required information on the fees date to $204,259.90. conduit transactions for approval. As conduit associated with the transaction and additional A motion was made by Representative transactions, neither the commonwealth’s documentation was included in the meeting Rudy to roll the two lease renewals, the lease nor KHC’s credit or balance sheet will be materials. No action was required. modification for CHFS (Kenton County), and extended. The first bond issue is the Kentucky Mr. Barrow reported five school district the tenant improvement request into one roll Housing Corporation (KHC) Tax-Exempt bond issues submitted with SFCC debt service call vote. The motion was seconded by Senator Conduit Multifamily Housing Revenue Bonds participation. Three of those were to finance Carroll and approved by voice vote. (Winterwood HPW Portfolio), Series 2018 for improvements in the following school districts: In response to a question from Representative properties in Harlan, Lexington, and Manchester. Corbin Independent (Knox and Whitley Moffett, Mr. Aubrey confirmed that the term Net proceeds will be about $9.3 million with a Counties), Monroe County, and West Point of the CHFS lease in Kenton County is being total project cost of just over $19 million. All debt Independent (Hardin County). The transactions extended two periods with each period being service is paid by the developer and information had an estimated amount to be borrowed one year. about the developer and financing teams were totaling $6.24 million with SFCC participation A motion was made by Representative included in the meeting materials. of approximately 31 percent. No tax increase was Rudy to approve the two lease renewals, the The second is the KHC Tax-Exempt necessary to fund the projects. The remaining lease modification for CHFS (Kenton County), Conduit Multifamily Housing Revenue Notes two bond issues were advance refundings in the and the tenant improvement request, seconded (SOCAYR Portfolio), Series 2017 for properties following school districts: Fayette County and by Representative Brown, and approved by in Adairville, Frankfort, and Louisville. Net Owen County. The transactions are estimated unanimous roll call vote. proceeds will be about $13 million with a total to have a net present value savings of $2.2 Report from the Office of Financial project cost of just over $25.4 million. All debt million (provided that they are sold before the Management service is paid by the developer and information potential prohibition of tax-exempt advance Ms. Adams submitted a loan increase and a about the developer and financing teams were refundings after December 31, 2017), with SFCC new loan request. Due to higher than estimated included in the meeting materials. participation of approximately 15 percent. bids, the Regional Water Resource Agency Mr. Barrow presented two university In response to questions from Senator (RWRA) in Daviess County requested a $725,000 financings, which will be sold competitively. Humphries, Mr. Ratliff said that the Allied increase, which was approved by the Kentucky The first was the $27.2 million Eastern Kentucky Paducah Portfolio project, the first conduit KHC Infrastructure Authority’s Executive Director, to University General Receipts Bonds, 2018 Series transaction in which proceeds were used by a a previously approved Fund A (Clean Water State A and General Receipts Refunding Bonds, 2018 501(c)(3) organization and a payment in lieu Revolving Fund – CWSRF) loan; increasing the Series B. Series A will finance the Construct of taxes (PILOT) was negotiated with localities total amount borrowed to $8,007,500. The loan Student Life Facilities project authorized in the as the properties to be acquired will be exempt is for 20 years with a 1.75 percent interest rate. most recent budget bill. Series B is an advance from property taxes, is expected to close soon The Elkhorn Water District in Franklin refunding with an annual savings of around and that no similar transactions are expected to County, requested a $850,000 Fund B $35,000 and a net present savings of $360,000 be presented to the committee in the near future. (Infrastructure Revolving Loan Fund) loan for (6.32 percent). Mr. Barrow said that the advance A motion was made by Senator Carroll its Capital Improvements Project, which includes refunding portion may be terminated if federal to roll the school bond issues into one vote, repairs and upgrades for the system. The loan is changes to tax law, eliminating tax-exempt seconded by Senator Humphries, and approved for 20 years with a 2.75 percent interest rate. advance refundings after December 31, 2017, by voice vote. In response to questions from Representative goes into effect. The refunding would then have A motion was made by Representative Rudy Moffett, Ms. Adams said that Elkhorn Water to be delayed until it is a current refunding, in to approve the school bond issues, seconded by District went through the Public Service which the refunded bonds are called/redeemed Senator Carroll, and approved by unanimous roll Commission (PSC) for a pass-through rate within 90 days from the date the refunding call vote. increase to accommodate wholesale rate bonds are issued. New School Bond Issues with 100 Percent increases from its supplier, the Frankfort Plant The second was the $4.2 million Murray Locally-Funded Debt Service Board, and will request PSC approval for another State University General Receipts Refunding Ms. Halloran reported that the Martin rate increase to cover the debt service for the Bonds, 2017 Series A, which is also an advance County School District was issuing $4 million Fund B loan. She confirmed that execution of refunding with an annual savings of around in bonds for an Area Technology Center. the assistance agreement would be after PSC $20,000 and a net present value savings of Supplemental funding was awarded from the approval of the rate increase. $219,000 (5.65 percent). Workforce Development Construction Pool and A motion was made by Representative A motion was made by Senator Humphries to a tax increase was not necessary to finance the Brown to approve the Fund A Loan increase, roll the new bond issues into one vote, seconded project. No action was required. seconded by Representative Rudy, and approved by Representative Brown, and approved by voice Updated Debt Issuance Calendar

46 2017 Interim LEGISLATIVE RECORD Also included in the members’ folders will be tracked. waiver. DMS is continuing to fill HCBS 1915(c) was the debt issuance calendar. No action was In response to questions from Senator waiver slots daily. required. Alvarado, Commissioner Miller stated that there In response to questions from Senator With there being no further business the is a potential savings of $300 million if the 1115 Alvarado, Commissioner Miller stated that the meeting adjourned at 1:17 p.m. Kentucky HEALTH waiver is approved by CMS. reimbursement levels for the providers differ in CHFS may see savings from the waiver approval the 1915(c) waiver programs. The 1915(c) waiver MEDICAID OVERSIGHT AND in the second year of the budget cycle but savings redesign should address some inconsistencies ADVISORY COMMITTEE will be more evident in the third year. He stated but must also be budget neutral. He stated Minutes that if the 1115 Kentucky HEALTH waiver is not there are federal requirements that determine November 15, 2017 approved, the costs that Medicaid is incurring reimbursement rates for the CMHCs. Deputy Call to Order and Roll Call would remain the same and there are concerns Commissioner Hunter stated that it is difficult to The Medicaid Oversight and Advisory about the sustainability of Medicaid as it is predict if LTC facility admissions will continue Committee meeting was held on Wednesday, currently structured. to decline. She stated that DMS has seen a trend November 15, 2017, at 1:30 PM, in Room 131 Presentation on Long-Term Care Costs, in people wanting to age in their homes but has of the Capitol Annex. Senator Ralph Alvarado, Enrollment, and Trends also noticed that younger people are entering Chair, called the meeting to order, and the Jill Hunter, Deputy Commissioner, LTC facilities for reasons not planned on by secretary called the roll. Department for Medicaid Services, Cabinet for DMS. Commissioner Miller expects to have a Present were: Health and Family Services, stated that $1 billion number of options and recommendations from Members: Senator Ralph Alvarado, Co- is spent on nursing facility services annually Navigant and the redesign to contain costs for Chair; Senators Danny Carroll and Stephen using combined state and federal money. An the new budget cycle. Meredith; Representatives Jim Gooch Jr. and additional $100 million of combined state Update on Benefind Melinda Gibbons Prunty. and federal money is spent on Intermediate Deck Decker, Executive Director, Office of Guests: Steve Miller, Commissioner, Jill Care Facilities for Individuals with Intellectual Administrative and Technology Services, Cabinet Hunter, Deputy Commissioner, Department for Disabilities (ICF/IID). During state fiscal year for Health and Family Services, stated that the Medicaid Services, Cabinet for Health and Family 2017, there were 5,950,698 paid Medicaid days Benefind solution or Integrated Eligibility and Services; Deck Decker, Executive Director, Office for nursing facility services, averaging to 16,303 Enrollment System (IEES) provides Medicaid of Administrative and Technology Services, residents per day. The occupancy rate is declining, benefits to over 1.4 million residents of Kentucky. Cabinet for Health and Family Services; Eric however long-term care (LTC) facilities are Benefind processes over 1 billion dollars in Clark, Chief of Staff, Cabinet for Health and seeing sicker patients creating greater costs. It is Supplemental Nutrition Assistance Program Family Services; Michael Sasko, Vice President DMS’ goal to allow more people to age at home. (SNAP) and Kentucky Transitional Assistance of Government Solutions, Softheon Inc.; Chris LTC facilities create increased costs. DMS works Program (K-TAP) benefits every year. The Heldman, ‎Associate Vice President, Business on maximizing community based services, the child care assistance program has been added Development, Molina Healthcare; and Missy remaining population in nursing facilities will to Benefind. CHFS workers are maintaining Spears, Owner, Keep Your Shirt On Covington. continue to have an increasing case mix index. caseloads on Benefind. CHFS has eliminated the LRC Staff: Jonathan Scott, Chris Joffrion, DMS staff consulted with 500 individuals at 10 45 minute annual recertification interview with Becky Lancaster, and Heather Scott. meetings across Kentucky to gather information an enhancement for an automated process that Update on the 1115 Kentucky HEALTH and hear comments regarding the Home & verifies Medicaid recipients’ information during Waiver Community-Based Services (HCBS) 1915(c) their annual recertification using federal and Steve Miller, Commissioner, Department for waiver redesign. state data sources. Benefind allows case workers Medicaid Services (DMS), Cabinet for Health In response to questions from Senator to focus on better customer service and reducing and Family Services (CHFS), stated that the Alvarado, Commissioner Miller stated that DMS fraud and waste in public assistance programs. approval of the 1115 Kentucky HEALTH waiver is in constant contact with LTC facilities. The The Department for Community Based is close. Centers for Medicare and Medicaid increased costs that LTC facilities are incurring Services (DCBS) has eliminated the mandatory Services (CMS) has indicated that it will be with the sicker population show that the acuity 10 percent overtime for staff. Benefind approving 1115 waivers that include community level has gone up and will continue to rise. DMS processing time is averaging less than three days engagement. Fourteen months ago, DMS has tried to keep a base line budget and continues for tasks to be completed through the system. presented the 1115 Kentucky HEALTH Waiver to seek out more efficiencies to lower costs. The cost savings to Kentucky is approximately that included community engagement to the In response to questions from Senator $9 million a year due to the productivity U.S. Department of Health & Human Services Carroll, Deputy Commissioner Hunter stated improvements. Benefind systems have improved (HHS). There are no outstanding issues with the that DMS has added $500,000 to the contract self-service capabilities to allow Kentuckians waiver and CMS is not asking for additional or and a year to complete the redesign of the easier compliance with program requirements. clarifying information at this time. DMS is still 1915(c) waiver program. The schedule for the The Medicaid Management Information system within the tentative timeframe for initiatives and redesign is to continue to gather comments and (MMIS), the payment system for Medicaid, has actions to be taken. In January and February of information through the fall, have meetings with been improved. CHFS has achieved a reduction 2018, Kentucky Medicaid members can begin Navigant to synthesize those comments through in provider billing issues and complaints to earn My Rewards dollars for preventive the winter and spring with the goal of a having after implementing a series of enhancements services. Beginning April 1, 2018, My Rewards a proposal submitted to CMS in the summer of streamlining Medicaid data across CHFS and community engagement courses will be 2018. DMS has sent letters to community mental systems. Starting on October 1, 2017, the Child available. Starting July 1, 2018, the Alternate health centers asking for assistance in addressing Care Assistance Program was incorporated into Benefits Plan (ABP) and Premium Assistance will the wait lists for the Michelle P. waiver (MPW) the Benefind system. In the first month, 3,810 be implemented and penalties and suspensions and the Supports for Community Living (SCL) new child care applications were processed at a THE KENTUCKY GENERAL ASSEMBLY 47 rate seven times greater than the average of 500 Mark Bunning, Deputy Secretary, Finance and the performance audit conducted by the PFM applications prior to Benefind. Administration Cabinet Group (PFM). The underfunding has been the Integrated and automated verifications LRC Staff: Brad Gross, Jennifer Black Hans, combined result of investments performance, have reduced the instances of overpayments Bo Cracraft, and Angela Rhodes funding, and structural issues of the plans. Mr. and issuance of incorrect benefits to members. Approval of Minutes Chilton noted that 62 percent of the increase in Kentucky transitioned to the Federal Facilitated Representative Simpson moved that the underfunding was due to structural issues, such Marketplace (FFM) via HealthCare.gov to process minutes of the September 25, 2017, meeting as assumption changes or actuarial back loading, Qualified Health Plans (QHPs) and Advanced be approved. Mac Jefferson seconded the while investment performance and funding Premium Tax Credits (APTC) eligibility. Federal motion, and the minutes were approved without accounted for 23 percent and 15 percent, guidelines provide 45 days to process Medicaid objection upon the addition of a conversation respectively. Mr. Chilton provided a summary applications. Kentucky internally tracks progress between Senator Schroder and Beau Barnes. for each underlying system, pointing out the based on a 30 day schedule from program A moment of silence was observed for the KERS nonhazardous and TRS plans, which made application. All complaints are inputted by passing of Senator David Givens wife, Lynne up two-thirds of the total underfunding. Lastly, a citizen, DCBS staff, Ombudsman or other Givens. Mr. Chilton highlighted the CERS plans, which CHFS staff and tracked in one location. CHFS In his opening remarks, Senator Bowen stated made the necessary contributions, but still saw has implemented a comprehensive integrated that Director John Chilton will be presenting funding levels decline. Mr. Chilton discussed complaint resolution solution that allows a bill draft and questions should be directed to retiree healthcare and stated that it was about $6 Kentuckians to raise concerns and seek issue him and his staff. Senator Bowen reminded the billion underfunded. resolution. members that it was outside the responsibility of Mr. Chilton provided an illustration of In response to questions from Representative LRC staff to participate in a question and answer actuarial back-loading, and pointed out how Gibbons Prunty, Eric Clark, Chief of Staff, exercise when talking about a bill draft. additional underfunding can occur as a result Cabinet for Health and Family Services, stated Pension Proposal Overview of plans using a percentage of payroll method. that there is a moratorium on Kinship Care that John Chilton, State Budget Director and Referencing projections included in the PFM stopped additional individuals from entering Mark Bunning, Deputy Secretary, Finance report regarding the KERS nonhazardous plan, the program but those individuals who were and Administration Cabinet presented. Mr. Mr. Chilton noted how underfunding actually previously in the program are still receiving Chilton opened with a general overview of the would increase for several years before actually payments. presentation and bill draft, which Governor reducing the unfunded amount. In response to questions from Senator Bevin has named “Keeping the Promise.” Mr. Mr. Chilton also provided a summary of a Alvarado, Mr. Decker stated that CHFS has saved Chilton began by defining two key terms, solvency analysis for the KERS nonhazardous approximately $20 million not using Kentucky’s retirement age and solvency, as it relates to conducted by PFM, which projected the plan state exchange system. the proposed bill. Retirement age is defined would go insolvent in FY2022 if future funding In response to questions from Senator as the age at which an employee is eligible for reverted to the patterns of funding prior to Meredith, Commissioner Miller stated that unreduced or full retirement benefits, but not FY2016. money saved goes to other departments in CHFS the time at which an employee must retire or Mr. Chilton discussed the TRS and CERS to help balance the Cabinet’s budget. is encouraged to do so. Solvency relates to the nonhazardous plans and emphasized the plans Adjournment ability of an organization to pay all outstanding are not in as good of shape as many seem to There being no further business, the meeting debts and can be viewed from two perspectives. believe. While better funded than KERS, if subject was adjourned at 2:13 PM. An organization is insolvent: (1) if it does not to federal standards, the Internal Revenue Code have enough liquid assets to meet near-term would require benefits in both plans to be frozen. PUBLIC PENSION OVERSIGHT obligations or (2) if the value of its assets is less Using the investment assumption required for BOARD than its liabilities. Mr. Chilton noted that each corporate plans, which is the Corporate Bond Minutes of the 9th Meeting of the state-administered pension plans had a Index, Mr. Chilton noted the unfunded liabilities of the 2017 Interim value of assets less than their liabilities and that for both plans would increase significantly. November 2, 2017 current funding levels for each would require Regardless, under any set of assumptions, neither Call to Order and Roll Call termination of the plans under federal rules that of the plans are in good shape and a long-term The 9th meeting of the Public Pension apply to non-government plans. (30 year) commitment will be needed to address Oversight Board was held on Thursday, Mr. Chilton provided an overview of the the underfunding. November 2, 2017, at 1:00 PM, in Room 154 of severe underfunding of the plans and noted that Mr. Chilton reviewed details of the proposed the Capitol Annex. Senator Joe Bowen, Chair, Kentucky’s aggregate funding level of 37.4 percent pension plan introduced by the Governor, Senate called the meeting to order, and the secretary ranked last, or 50th, out of state retirement plans, President, and Speaker of the House, clarifying called the roll. and the total unfunded liability ranged from $33 proposed changes for each system. With regards Present were: billion to $84 billion depending on the discount to the nonhazardous plans of KERS and CERS, Members: Senator Joe Bowen, Co-Chair; rates utilized. In addition to funding levels, Mr. retirees would see no changes or reductions to Representative Brian Linder, Co-Chair; Senators Chilton recognized the cash flow trends for each their monthly pension checks. For existing Tier Jimmy Higdon, Christian McDaniel, Gerald of the plans, which include almost $7 billion in 1 or Tier 2 members, there would be no change A. Neal, Dennis Parrett, and Wil Schroder; negative cash flow across all the plans over a to the full retirement age and employees would Representatives Ken Fleming, James Kay, Jerry period of eleven years. Mr. Chilton stated that continue to accrue their defined benefit until T. Miller, Arnold Simpson, and Russell Webber; the negative cash flows are projected for the next reaching a full, unreduced, retirement benefit J. Michael Brown, John Chilton, Mike Harmon, eleven years as well. (reaching 27 years of service, Rule of 87, or James M. “Mac” Jefferson, and Sharon Mattingly. Mr. Chilton discussed reasons why the plans age 65). Once reaching the threshold for an Guests: John Chilton, State Budget Director; are underfunded and highlighted findings from unreduced benefit, Tier 1 and Tier 2 employees

48 2017 Interim LEGISLATIVE RECORD would move into a new defined contribution comment, Mr. Chilton mentioned that on July 1, 2018, would have the option to accrue plan. Any existing Tier 3 member (those hired investment performance and the underfunding up to 3 additional years of service or move into on or after January 1, 2014) and all new hires have historically been more discussed because an enhanced Social Security replacement defined would immediately roll over or be enrolled in the they are the most visible. Mr. Chilton agreed contribution plan that would save 18 percent of new defined contribution plan. that the other structural issues had been in the their salary. New teachers, or those active that In response to questions from Representative statute for a long period of time and largely not meet the unreduced retirement threshold after Simpson and Senator Bowen, Mr. Chilton stated been the focus. Mr. Bunning also referenced the July 1, 2018, would be enrolled in a new defined that any current service, benefit, or accrual that CERS plans, which have made their required contribution plan. All current members, with a member has as of the effective date of the contributions, but still are underfunded by 40 less than five years of service, would have the proposed legislative changes would be secure. percent, to highlight the impact other structural option to transfer to the newly created defined Any additional service for the member after issues have had on funding. contribution plan. In addition, future retirees that date would go into the defined contribution Senator Bowen made a statement to remind would be required to suspend their pension to plan. Also, any years of service that a member the members of the Public Pension Oversight accept full-time positions covered by a state- has purchased or is purchasing on an installment Board (PPOB) that most of the funding administered retirement system for duration of basis would be secure. provisions and policies for TRS are not in statute. their reemployment. In response to a questions from Senator It is a decision by TRS Board. Mr. Chilton provided a review of the new Higdon, Mr. Chilton stated that the retiree Mr. Chilton continued with a review of a few Defined Contribution Plan being proposed and healthcare is funded separately from the pension additional proposed changes for nonhazardous outlined mandatory and optional contributions plans, in a separate trust, with a separate employer employees. First, all active employees would be for TRS members. First, all new teachers contribution rate. This plan covers retiree required to contribute 3 percent more of their and active teachers, that reach the 27 year healthcare costs from the date of retirement until salary to help prefund the retiree healthcare threshold after July 2018, will make a mandatory the retiree qualifies for Medicare, after which program. Secondly, any future retiree, that contribution of 9 percent of their salary, while there are some subsidies provided for items accepts a full-time position in the public, would the state would be required to contribute 4 not covered by Medicare. Current Tier 2 and be required to suspend their current pension percent and school districts would be required Tier 3 employees also contribute one percent of for the duration of their reemployment. Third, to contribute 2 percent. In addition, employees payroll, while the proposed bill would require all compensatory time payments only would be could choose to contribute an optional amount active employees (Tiers 1, 2, and 3) to contribute included in the benefit calculation for any up to 3 percent more of their salary. A total of 18 3 additional percent towards retiree health member retiring on or before July 1, 2023. percent could be saved if the employee maximized benefits. Mr. Chilton noted there had been much Fourth, a full 60 months of service would be their contributions (12 percent employee and 6 discussion regarding the proposed increased required in calculating a members “high 5” percent employer/school district). For teachers contribution, and the topic was something likely average salary. Fifth, eligible compensation for with 27 plus years on or before July 1, 2018, the requiring more consideration. the purpose of calculating benefits would be employee would have a mandatory 10 percent In response to a question from Mr. Brown, limited to match that of Social Security. Lastly, contribution and the state would be required to Mr. Chilton clarified that the benefits promised any uniform or equipment allowances would no contribute 8 percent. under current law for Tier 1 and Tier 2 employees, longer be included as creditable compensation, Mr. Chilton continued with a review of a few either as of June 30, 2018 or up to 27 years of and any unused sick leave would be frozen additional proposed changes for TRS members. service, would be secure. Mr. Chilton said on a as July 1, 2018 for the purpose of determining First, sick leave balances would be frozen as of go-forward basis, there might be changes, but retirement eligibility. July 1, 2018, for those university members that that would not impact existing accruals or those Mr. Chilton reviewed the new Defined receive service credit for accumulated unused accrued up to 27 years. Contribution Plan being proposed and outlined sick leave. Secondly, school districts could In response to a question from Auditor mandatory and optional contributions. All continue to provide payment for up to 30 percent Harmon, Senator Bowen clarified that any employees participating would contribute a of a retiring member’s accumulated unused sick service credit purchased is effectively the same mandatory contribution of 3 percent of their leave, and lump-sum payments for accumulated as accrued service time, so both would be salary, while employers were required to make sick leave will be utilized in retirement benefit considered in the purpose of calculating the a 2 percent contribution. In addition, employees calculations only for those retiring on or before member’s retirement benefit. could choose to contribute an optional amount July 1, 2023. After that date, all payments for sick Representative Kay commented regarding up to 6 percent more of their salary, which would leave would be excluded from benefit calculations. the plans underfunding and the reasons be matched 50 percent by their employer. A total Sick leave policies and cash payments for sick outlined by the final PFM report. He noted that of 14 percent could be saved if the employee time will continue to be made according to local investment performance, which accounted for maximized their contributions (9 percent school board policy. Third, the use of a “high 3” roughly 25 percent of the increase, included employee and 5 percent employer). average salary would be permitted for members underperformance relative to the market and Mr. Chilton moved on to review the proposal retiring before 2023, while after that date a “high expensive investments with a lot of fees. Outside regarding TRS and stated that there was no 5” would be utilized and must include 60 full of investments, whether funding below the recommendation to change the full retirement months. Lastly, much like the KERS and CERS ARC, providing unfunded COLA increases, or age, and both current and future teachers would plans, all active employees would contribute an mandating a level percent of payroll funding not be covered by Social Security. The current additional 3 percent of their salary to fund the method by statute, Mr. Kay pointed out that at defined benefit plan would remain open for all retiree post-retirement healthcare program. least 50 percent, if not more, of the problem could current members of TRS, who would continue Regarding retired teachers, Mr. Chilton be directly attributed to what the legislature has to accrue benefits until they qualified for a full, stated that current retirees would not see their or has not done. unreduced, benefit (27 years of service or age 60). existing benefit reduced; however, future COLA In response to Representative Kay’s A current member, that qualified for a full benefit adjustments would be temporarily suspended THE KENTUCKY GENERAL ASSEMBLY 49 for five years. All future retirees would not retirement account for any retiree re-employed. from procurement procedures, Mr. Chilton receive any COLA increases until their sixth year Lastly, all active hazardous employees would be stated that PERS would be subject to the PPOB, of retirement. required to contribute an additional 3 percent of Executive Branch Ethics Commission, and In response to a question from Representative their salary to fund the retiree post-retirement also statutory conflict of interest language. Miller, Mr. Chilton stated that teachers have not healthcare program. As it relates to the Model Procurement Code, paid for their COLAs. Mr. Chilton discussed the proposed the plans are not covered because it is not In response to a question from Representative retirement changes for legislators. For members necessary. Mr. Chilton noted that once the Board Kay, regarding an exemption to the proposed that have already reached an unreduced pension determines their investment options, there is no suspension of retirement benefits for elected benefit, the defined benefit plan will be closed, procurement process and pricing is set by the officials and the Governor’s appointees, Mr. and those members will begin to participate in market. Representative Kay emphasized that Chilton reiterated that he could neither speak the defined contribution plan offered to KERS measures should be taken to ensure more robust to the motivation for the exemption nor was employees. For members that have not reached transparency safeguards are incorporated into he involved in the decision-making process. the threshold for an unreduced retirement any legislation to ensure that procurement and the Representative Kay suggested that this portion plan, their LRP account will be frozen, and board’s actions do not benefit those underserving of the bill should be considered as changes are they will participate in KERS until reaching of making money off the government. made. an unreduced retirement benefit and then will In response to a question from Senator Auditor Harmon suggested a few additional be covered by the new defined contribution Bowen, Mr. Chilton and Mr. Bunning stated any items for consideration. First, regarding the plan. Any payments from the defined benefit member that had reached the full retirement suspension of pensions for those returning to plans would be based solely on their legislative threshold would continue in the defined benefit work, given a retiree would suspend existing earnings. Current cash balance members and plan through the effective date of the bill. At that benefits and not double dip, it seems that new legislators would immediately roll over into point, whatever service credit they had would suspending the required break in service the defined contribution program. All active be utilized for calculating their benefit. For a should be considered. Secondly, he asked for members would contribute 3 additional percent member that reaches 27 years after the effective consideration regarding the “block 50” payments of their salary to fund retiree healthcare. For date, they can continue working, but would for compensatory time. Mr. Harmon mentioned existing defined benefit members and current begin participating in the defined contribution the use of “sick 50” payments in his office, but retirees, the benefit calculation would be based plan the month after reaching the threshold. given sick time will not be utilized in the same solely on legislative salary. Senator Schroder highlighted the potential way, this might not be an option and could Mr. Chilton discussed the judicial retirement that active teachers might reach the full retirement have impact. Senator McDaniel commented proposal, which would allow current members threshold during the middle of a school year and that there are several agencies that practice the to accrue a full unreduced benefit, before suggested consideration might be made to allow “sick 50” payments, but one of the unfortunate moving into the new defined contribution plan. teachers to finish the year instead of participating consequences is it actually allows an agency Existing cash balance and new members would in the defined contribution plan for such a short to defer the fiscal burden of payment to the immediately roll into the defined contribution period. Mr. Bunning noted that all existing retirement system instead of the agency. plan. All active members would contribute 3 teachers with 27 years of service would have a 3 In response to a question from Mr. Brown additional percent of their salary to fund retiree year window from the effective date. regarding the topic of the retired re-employed, healthcare. In response to a question from Senator Bowen reminded the committee that Mr. Chilton discussed several additional Representative Fleming, Mr. Chilton stated that questions and comments should be limited to reforms, which include: moving all systems to while the proposed legislation was just a draft points of clarification, but not the rational or a level dollar amortization method; creating at this point, as part of the legislative process motivation behind the proposed legislation. The a two-year window available for KRS and TRS there is a statutory requirement for an actuarial Director was on hand to help clarify and answer employers to withdraw from the systems by analysis. Mr. Chilton indicated that analysis was technical questions. making a full payment of their share of the in process and expected soon. Mr. Chilton continued the overview, actuarial liability; and moving the legislative and Mr. Chilton continued with what happens if addressing proposed changes for the hazardous judicial retirement plans under the jurisdiction pension reform does not occur and the impact plan members. For active members, the current of KRS Board. Lastly, Mr. Chilton noted the it will have on the budget. First, he reviewed defined benefit and 4 percent cash balance effective date of the changes would be July 1, investment return assumptions for each system plans would remain open, and there would 2018 (pension bill will not have an emergency and noted that almost all had reduced their be no change to the full retirement age. New clause), the Kentucky Deferred Compensation assumption, which was going to increase the hires would have an option to participate in Authority (KDC) would administer the new unfunded liabilities of the plan. Preliminary the current cash balance plan or the defined defined contribution plan (called “PERS” projections provided by the plans indicated that contribution plan. Other proposed changes under the draft), and there would be a statutory almost $1.5 billion in additional money from included: capping sick leaves at the balances requirement to pay the ADC/ARC. all employers would be needed. Mr. Chilton accrued on June 30, 2018, and eliminating sick In response to a question from Senator discussed the fiscal needs of the general fund, leave from being used to determine retirement Parrett, Mr. Chilton stated that all Tier 3 member which included replenishing a diminished eligibility for retirements after July 1, 2018; account values, which include employee Budget Reserve Trust fund and meeting expected requiring a full 36 months in the “high 3” contributions, employer contributions, and ARC payments. These needs, when coupled with calculation; removing uniform and equipment investment gains, will move over to their new modest expected revenue growth, results in a allowance from creditable compensation; and defined contribution account. need to free up an additional $1 billion dollars requiring both the employee and employer to In response to a question from Representative each of the next two fiscal years to be fiscally contribute to the retirement system in the case of Kay in regards to PERS and Deferred Comp responsible. reemployment after retirement with no second transparency and those entities being exempt

50 2017 Interim LEGISLATIVE RECORD Mr. Chilton identified the three primary Mr. Bunning provided an example of Lastly, there is no claw back of benefits suggested, options available: reducing spending, increasing the value of a defined contribution account. and the bill draft provides for sharing the risk. revenues, and reducing the cost of pensions. Using a current teacher salary scale, an average With no further business, the meeting was With regards to reduced spending, Mr. Chilton retirement age of 60, and career of 37 years, a adjourned. noted that spending for several programs was teacher under the current defined benefit plan reduced by 9 percent during the last budget. would receive a monthly benefit of $5,400. Using EDUCATION ASSESSMENT AND During that process, there were important the defined contribution model, considering the ACCOUNTABILITY REVIEW government services that were not subjected teacher contributed the maximum 18 percent SUBCOMMITTEE to cuts, including K-12 education (SEEK), contribution and earns 7.5 percent while Minutes Medicaid, public protection, debt service, etc. employed, the value of the account after 37 years November 21, 2017 Mr. Chilton discussed the growing share of would be $1.59 million. Call to Order and Roll Call pension and Medicaid expenditures, which In response to a question from Representative The regular meeting of the Education account for over 30% of the general fund, and Kay regarding the value of the example if the 30 Assessment and Accountability Review their rapid growth over the past eleven years. year Treasury yield of just under 3 percent was Subcommittee was held on Tuesday, November Mr. Chilton provided an alternative look on assumed, Mr. Bunning stated this was an example 21, 2017, at 1:02 p.m., in Room 129 of the Capitol the budget constraint, considering what level to compare the two plans together. In this case, Annex. Representative Daniel Elliott, Chair, of cuts would be required in FY2018 to raise $1 the teachers assume 7.5 percent. In addition, called the meeting to order, and the secretary billion. In this example, if excluding education, Mr. Bunning referenced the investment options called the roll. Medicaid and pension spending, the remaining currently offered by Deferred Comp and noted Present were: portion of the budget would have to be reduced most have returns of 7.5 percent or more. Members: Senator Max Wise, Co-Chair; by 34 percent. Subjecting education (SEEK) to In response to a question from Senator Representative Daniel Elliott, Co-Chair; Senator cuts would still require cuts of over 16 percent. Parrett regarding tax reform, Mr. Chilton stated Mike Wilson; Representatives Derrick Graham, SEEK alone would be reduced by $510 million the Governor and others have decided that tax and Steve Riley. (out of existing $3.024 billion appropriation). reform is coming, but not before pension reform. Guests: Wayne Young, Executive Director, Senator McDaniel emphasized another In response to a question from Senator Kentucky Association of School Administrators. important consideration, which was the level of Neal, Mr. Chilton stated the actuarial analysis LRC Staff: Joshua Collins, Lauren Busch, additional funds pulled from federal draw down is in process and should be available soon. and Maurya Allen. dollars. He noted that the majority of federal While the proposed bill was not developed Approval of October 17, 2017 Minutes funds occur with the “all other” category that with a certain target, it is believed that the $700 Representative Graham made a motion to is being discussed. Reducing these funds by 34 million additional amount required will be less. approve the minutes of the October 17, 2017 percent would not just mean losing the existing Mr. Bunning also stated that PFM provided an meeting, seconded by Senator Wise. The motion state spending, but also the federal matches that impact for each of their recommendations, but passed by voice vote. are made available. the bill is drafted differently so its impact must Chairman Elliot recognized David Mr. Chilton commented that the budget be calculated actuarially. Wickersham, Director, Office of Education situation is a real crisis. The financial obligations In response to a question from Senator Neal Accountability (OEA) to speak regarding the the Commonwealth is facing are huge and there regarding the risk associated with a defined retirement of Tammy Daniel. Ms. Daniel has just are some really tough policy decisions that will contribution approach versus a defined benefit over 30 years of service with state government, have to be made in all areas. approach, Mr. Bunning commented that it would and has served with OEA since 1992. Mr. Senator Bowen commented about the depend on the individual participant. Some Wickersham noted how instrumental she has question of whether the plans were in crisis people like the flexibility and ability to make been to the Investigations Division of OEA and or not. While people might argue about this personal investment choices, instead of relying how helpful she was when he took the position question, he asked members to consider a on a board. Senator Neal emphasized that not all of director. Chairman Elliot, speaking on behalf plan with two people, which is only 54 percent state employees have the background or ability of all the members of the committee, thanked funded. Under such a scenario, one of the two regarding investing, so one of the criticisms of Ms. Daniel for her service and wished her well would not receive a pension and that would be defined contribution plans can be the level of in retirement. considered a crisis for the person not receiving risk placed on the individual. Approval of the 2018 Research Agenda a pension. When talking about levels of funding In response to Senator Neal, Mr. Chilton Chairman Elliot directed members’ at 54 percent, 59 percent, 33 percent, and 14 commented that one of the requirements in attention to the proposed 2018 Research Agenda percent, these funding levels by any metric are the defined contribution plan was that the plan for OEA that was included in their folders, failing numbers. administrator provide underlying members with together with memo outlining agenda topics. Mr. Chilton discussed benefits and the professional licensed investment advisors to help David Wickersham, Director, OEA, and Dr. Bart value of a defined contribution plan. First, the people make investment decisions. Liguori, Research Division Director, OEA, were employee controls his/her investments and can In his closing remarks Senator Bowen present to answer any questions. be as conservative or as aggressive as desirable. mentioned a few of the highlighted portions of There being no questions, Senator Wise Secondly, after vesting (5 years), the entire the presentation and suggested the board had made a motion to approve the proposed agenda, account is nonforfeitable and will continue to learned the consequences of doing nothing. He seconded by Representative Riley. The motion grow. Third, money can be withdrawn without highlighted there was no emergency clause in passed by voice vote. IRS penalties as regular monthly amounts or the bill, giving people plenty of time to make Chairman Elliot informed members that as a lump-sum to satisfy unexpected needs or decisions, and it also allowed current employees they would be notified of the next meeting desires. And last, when the employee dies, the to stay in the plan until retirement eligibility. when it was scheduled, but that a January account passes to family members or a charity. THE KENTUCKY GENERAL ASSEMBLY 51 meeting was likely for reviewing administrative the case remains open and is reviewed after 6 previous year ranged from 55 percent in 2013 to regulations containing the new assessment and months. A permanency review is held every 12 39.5 percent in 2015. accountability system. With no further business months thereafter. Program Review staff heard Mr. Stevens noted that from 2011 to 2015 to come before the committee, the meeting was from several sources that the 45-day period for the number of children living in foster care adjourned at 1:07 p.m. the temporary custody order is often not long increased by nearly 8 percent nationally. As of enough. Recommendation 1.1 is that DCBS and July 2017, there were more than 8,500 children in PROGRAM REVIEW AND the Administrative Office of the Courts (AOC) Kentucky’s foster care system, which represents INVESTIGATIONS COMMITTEE should cooperate to determine a reasonable a nearly 25 percent increase since 2011. Over Minutes period for the temporary custody order and this period, the number of caseworkers assigned 2017 Interim propose legislation to the General Assembly. to these children increased by only 7 percent, November 9, 2017 DCBS and AOC were unable to provide which has resulted in unmanageable caseloads Call to Order and Roll Call reliable data that would allow for an analysis and could lead to jeopardizing agency funding, The Program Review and Investigations of whether foster care hearings were meeting an increase in employee turnover, class action Committee met on Thursday, November 9, 2017, the statutory time frame. Recommendation litigation, and negative outcomes for children at 10:00 AM, in Room 131 of the Capitol Annex. 1.2 is that they should cooperate to ensure the and their families. Senator Danny Carroll, Chair, called the meeting collection of the date of any foster care court The Child Welfare League of America to order and led the audience in a prayer and the action, the type of hearing, and the result. These recommends a caseload of no more than 12 Pledge of Allegiance. The secretary called the data should be analyzed regularly to identify cases; the Council on Accreditation recommends roll. potential problems. Recommendation 1.3 is that no more than 15. DCBS reports that they are Present were: AOC should encourage any court hearing foster currently targeting a statewide caseload average Members: Senator Danny Carroll, Co- care cases to use all appropriate AOC forms. of 18 cases. As of May 2017, Kentucky caseloads Chair; Representative Lynn Bechler, Co-Chair; DCBS publishes a monthly Diligent were reported to be 32. Senators Dan “Malano” Seum, Reginald Thomas, Recruitment Report, which is used to help DCBS recently changed how it calculates and Stephen West; Representatives Chris Fugate, regional and county DCBS officials recruit new caseloads. The new method includes past due Ruth Ann Palumbo, Rob Rothenburger, Arnold foster families. A calculation in the report is cases and but not noncapacity staff. The new Simpson, and Walker Thomas. potentially inaccurate. Recommendation 1.4 is method results in higher statewide caseload Guests: Adria Johnson, Commissioner, that DCBS should use existing data to calculate averages overall. This new method could be Elizabeth Caywood, Executive Advisor, a more accurate “percent of need met” figure in improved. Recommendation 3.1 is that DCBS Department for Community Based Services, the report. should develop a method for calculating or Cabinet for Health and Family Services; DCBS reports the average number of times estimating the number of cases assigned to staff Kelly Stephens, Manager, Court Services, foster children moved while in state custody. not currently carrying full caseloads and the Administrative Office of the Courts; and Patricia Over the period of time analyzed, more than half contributions of such staff to state, regional, and Walker-FitzGerald, Retired Jefferson County of the moves were either neutral or represented county workloads. The workloads of these staff Family Court Judge. progress. Recommendation 1.5 is that DCBS should be included in the calculations of average LRC Staff: Greg Hager, Committee Staff should indicate disruptive, neutral, and positive caseloads along with past due cases. Administrator; Chris Hall, Colleen Kennedy, reasons for placement changes in its reports. Caseloads vary significantly across regions in Van Knowles, Jean Ann Myatt, Brandi Norton, The most frequent reasons children left the Kentucky, but all regions reported averages above William Spears, Shane Stevens, Joel Thomas; foster care system last year were to be reunited 18. Only 14 counties met national standards and Dexter Horne and Eve Wallingford, Graduate with their families (35 percent), placed in only 24 met DCBS’s target. Recommendation 3.2 Fellows; and Kate Talley, Committee Assistant. permanent custody of a relative (28 percent, or is that the General Assembly may wish to consider Minutes for October 12, 2017 adopted (24 percent). revising KRS 199.461 to require reporting of Upon motion by Representative Simpson Ms. Kennedy said that court proceedings monthly regional and county caseload averages and second by Representative Rothenburger, the consist of three broad steps: terminating parental in addition to monthly statewide caseload minutes for October 12, 2017, were approved by rights; establishing adoption as the permanency averages. voice vote. goal, and ruling on a petition for adoption. An In order to reduce statewide caseload Staff Report: Kentucky’s Foster Care System order for termination of parental rights may be averages to the current DCBS target of 18, 420 Mr. Hall noted that as of September 2017 appealed, resulting in long delays in an adoption. additional caseworkers would need to be hired. there were nearly 8,500 children in Kentucky’s Neither AOC nor DCBS tracks all delays in the Bringing Kentucky’s caseload average in line foster care system, which is administered by adoption process. DCBS plans to document with the Council on Accreditation would require the Department for Community Based Services court proceedings when its computer system 731 new caseworkers. Bringing averages in line (DCBS). Most children enter the system when an upgrades at the end of 2017. with the Child Welfare League of America would investigator substantiates claims of dependency, Potential adoptive parents may file a petition require nearly 1,200 new caseworkers, more than neglect, or abuse, and files a court petition to to adopt if they are Kentucky residents or have twice the current staffing level. remove the child. He described the steps in lived in Kentucky at least 12 consecutive months, Program Review staff surveyed Kentucky’s the court proceedings for such cases, which are at least 21 years old, and have sufficient child welfare caseworkers. Ninety-five percent of include a temporary custody order, which can income to meet household expenses. respondents reported that their caseloads were give custody of the child to the cabinet for 45 From 2012 to 2016, the number of Kentucky currently unmanageable within a normal work days, and a dispositional hearing, at which the children foster available for adoption increased week. Respondents listed documenting work court determines what action to take. If the each year except one. Over this period, 2,257 and entering case information into computer court orders the child to remain in state custody children were adopted. The percentage of systems as two of their most time-consuming at the conclusion of the dispositional hearing, adoptable children carried over from the tasks. Recommendation 3.3 is that DCBS should

52 2017 Interim LEGISLATIVE RECORD develop a strategy to lessen the administrative sectors. law, a decision must be made in the child’s best burden of caseworkers so that they can spend Recommendation 3.5 is that DCBS should interest regarding placement. Reunification is more time working with foster children and request funding and authorization to increase the primary goal according to department policy. their families. caseworker salaries to a competitive level; to Representative Bechler commented that in Recommendation 3.4 is that DCBS should increase the number of caseworkers; to offer many cases, he understands why reunification develop a method for determining caseloads geographic salary differentials and flexible is the primary goal, but it is troubling that the that is based on an analysis of its workforce and scheduling; to expand employee recruitment, primary goal is not stated as what is in the best workloads. This information should be used development, and recognition programs; and interest of the child. This often leads to adoption to determine what the appropriate caseload to develop further improvements in the hiring cases that last 7 to 10 years. Ms. Kennedy clarified standard for Kentucky child welfare caseworkers process. The agency should also promote that the standard in law says that what is in the should be and the strategies needed in order expansion of undergraduate social work best interest of the child is the goal. to meet this standard. The standard that is programs. Ms. Johnson said that this was the first review developed should be aligned with the principles In response to questions from Representative of this nature of the agency and the system in 11 established by current national standards and Rothenburger, Mr. Stevens said increasing years. The report reinforces much of the work should focus on ensuring that as few child the number of support staff and improving and internal review that the cabinet has been welfare caseworkers as possible are assigned technology would help lessen the burden doing. The reviews and recommendations align caseloads that exceed the standard. on caseworkers. More than 51 percent of with the charge from Governor Bevin and First Mr. Knowles noted that turnover is a caseworkers said they are unable to complete Lady Bevin, who want to reform the foster care challenge for most state child welfare agencies. their caseloads even by working more than the system to be a model for the nation. Kentucky’s caseworker turnover peaked at 28 standard 37.5 hours a week. The report has three themes: closer percent in 2015. A rate of 25 percent means that Representative Rothenburger commented alignment with the courts and looking at how an average caseworker stays on the job for 4 years that those who work in DCBS are stressed and the agency is faring in achieving permanency and is fully productive for only 3 years. Turnover overworked. The recommendations in this study outcomes for children, reviewing data, and being reduces the overall level of experience and causes are to be commended. more transparent. The cabinet is very receptive frequent vacancies, increasing workloads and In response to questions from Representative to continuing to work with the courts to look stress and leading to lower quality of work and Palumbo, Ms. Kennedy said the sufficient income at policies and to work on legislation that may poorer outcomes for children. Most caseworker requirement to adopt a child refers to having the be needed. Currently, the cabinet partners with turnover was a result of individuals leaving means to cover household expenses like food the courts in many ways. There is a bimonthly DCBS for another agency or for the private and clothing. If a child has special needs, state meeting with the Chief Justice and cabinet sector. Dissatisfaction with salaries is one reason. funding is available. Federal funding is available secretary about the outcomes being reported for Higher demand for social workers in some parts under Title 4E. Program Review staff did not children in care, what is happening in the court of the state results in a greater salary gap. know of a required baseline income, but DCBS process, and DCBS practices. It is a collaborative Several improvements could help offset may be able to provide more information. Mr. process to develop a performance improvement dissatisfaction with salaries. These include Stevens said overtime begins after 37.5 hours plan and response to the required periodic child advancement opportunities, involvement in have been worked in 1 week. and family services review. The courts also help setting policies, recognition of caseworkers’ In response to a question from Senator the cabinet look at how children and families are dedication and hard work, and ways to deal Carroll, Ms. Kennedy said many of the delays in being served in the system and what should be with the emotional trauma of seeing neglect the adoption process occur in the court system. done to improve outcomes. Kentucky was one of a and abuse. DCBS reported that some employee Often, biological parents participate in substance few states chosen for a three branch institute. The recognition programs and other measures had abuse treatment plans, experience setbacks, state interagency council is a multidisciplinary been curtailed for lack of funds. and return to treatment. Many adoptions are group that addresses issues that children face in For several years, entry-level caseworker job determined on a case-by-case basis. Mr. Stevens Kentucky. The issues that have been presented applications were always accepted whether there said according to the study survey, caseworkers in this report have been discussed at length with were openings or not. Attempting to address reported the adoption process was too the courts. some problems, the Personnel Cabinet began complicated and time consuming. Mr. Hall said The cabinet continues to refine the new to advertise entry-level caseworker jobs as they that there was not enough information or data methodology that was put in place to capture came open, but with an expedited hiring process. to determine where improvement to the process caseload numbers to be even more accurate. Neither the Personnel Cabinet nor DCBS was was needed. These data are currently available by county able to provide information on how long it took In response to questions from Representative and region. The statewide report is used as a to fill vacancies. Bechler, Mr. Stevens said the slide referring management tool by the regions for staffing The Public Child Welfare Certification to the number of children in foster care and issues. Workforce stabilization and support is Program pays tuition and a stipend for social work the number of caseworkers shows the data for a top priority as it impacts all outcomes within juniors and seniors who agree to work 2 years Kentucky only. Mr. Hall said DCBS may know the foster care system. The cabinet revamped for DCBS after graduation. While in school, they the percentage of children who are initially performance evaluation criteria for staff so receive the same training as new caseworkers and reunited with their families and subsequently that they are being more fairly evaluated on work as interns at DCBS. However, enrollment removed. AOC developed the forms mentioned performance sensitive to their caseloads. The has been below expectations for a variety of in Recommendation 1.3. The Court Rules cabinet supports Recommendation 3.1 on the reasons. document, which was recently changed by the Diligent Recruitment Report and will work to There is some evidence that there just are not Kentucky Supreme Court, does not require that refine the calculation method. The cabinet has enough social workers with bachelor’s degrees AOC forms be completed but does require all worked hard to determine which supports are to meet the demand in the private and public the information on the forms be provided. By needed for foster families, including refining THE KENTUCKY GENERAL ASSEMBLY 53 and expediting the process to become a foster sensitive to the fiscal constraints of the state. program. There is recoupment of tuition and parent. Work to streamline and improve the There may be some opportunity to have some a stipend for those who do not complete the initial training requirements is underway. The geographical differences in pay to better manage program, though interest is not charged. Ms. DCBS management team has become very the marketplace competition that is prevalent in Johnson said much of the turnover the cabinet data driven. It has developed key performance certain urban areas. has is due to the workload and lack of support indicators across all divisions and is developing In response to questions from Senator for staff. These issues are being addressed with ways to track retention. The cabinet continues to Carroll, Ms. Johnson said the cabinet is closely the development of rapid response teams and the partner with Pastor DeForest Soaries Jr., keynote following a court case headed to the U.S. reorganization plan. speaker at the Open Hearts, Open Homes event, Supreme Court regarding Kinship Care. The Ms. Stevens introduced Rachel Bingham, to help recruit families. The cabinet has started Office of Legal Services in the secretary’s office the executive officer of the Family and Juvenile sharing its diligent recruitment report with is analyzing the ruling and learning to which Services Department. Ms. Stevens said that the the contracted private childcare and placing population it applies. The ruling treats relative current case management system was not set agencies, which will allow them to be more caregivers as foster parents if the cabinet placed up to collect statistical data. In October, a pilot effective at recruiting families. the child in the custody of the relative, retained program began in Trimble County with a new The cabinet is developing its budgetary custody of the child, or transferred temporary case management system. The goal is to create an request, which will include a segment for custody to the relative. The ruling does not apply all-electronic court record. It will allow images to workforce. Some of the recommendations in to every relative caregiver. The cabinet is working be accessed and allow orders to be indexed and the report are already being addressed, such as to distribute clarifying information to staff for searchable. Electronic filing is now statewide for staff workload and developing a more efficient the public. Kinship care is up nationally and in adoption, termination, and parental rights cases process. The cabinet’s chief information officer Kentucky. and dependency, neglect, and abuse cases. This and the executive director of Administration and In response to questions from Senator will give cabinet attorneys the ability to file in Technology Services and his team are exploring Thomas, Ms. Caywood said the report cases without traveling to the clerk’s office. As software and workforce solutions to help staff determined 420 additional staff were necessary to part of a pilot project in the Jefferson County in doing their jobs. An RFP should be issued attain the recommended caseload of 18 to every Court of Appeals, once a termination appeal has soon for software to allow field staff to gather one caseworker. Mr. Stevens said 420 additional been filed, the clerk’s office is scanning the data to information more effectively. By December, each staff would cost approximately $28 million. Ms. transmit to the court. This will eliminate 30 to 60 region should have a rapid response team to Johnson said that not every caseworker has a days of paper moving back and forth. Utilizing address caseload concerns. The cabinet has met social work degree, but they are required to have the new case management system, work is being with a group of county attorneys to reinforce the a bachelor’s degree. done on judicial dashboards, which will allow best practice methodology across the state. In In response to questions from Representative judges to view their own data. some areas, workers have a strong relationship Palumbo, Ms. Johnson said there are The dependency, neglect, and abuse forms with the county attorney. Alternative work approximately 1,800 caseworkers in the state. are developed by AOC and the cabinet. As of schedules in some areas are being considered Noncapacity staff includes staff who are new and October 17, 2017, the Supreme Court entered an to attract and retain staff and reduce the need in training, on desk duty, or on family leave. update to the Family Court Rules of Practice and for overtime. Retired law enforcement officers In response to questions from Senator Procedure that those forms will be mandatory have been hired for a small pilot project to Carroll, Ms. Johnson said adoptions are handled statewide effective January 1. help with investigative work. Initial reports are on case by case. Grandparents do not have legal Ms. Walker-FitzGerald said that since 2014 encouraging. The department has worked with rights in Kentucky. The cabinet is working to do only seven states have seen a decline in the the Kentucky Employment Assistance Program more to support kinship caregivers. number of children in foster care, mostly due to bring resources to staff. In Jefferson County, In response to questions from Representative to funding being put into services. The lack of an onsite resource in the L&N Building for staff Bechler, Ms. Johnson said parent progress ability to gain accurate information has been provides mindfulness exercises that are sensitive is determined on a case-by-case basis. Case a problem for years. Information is needed to to the vicarious trauma that many staff experience. plans are structured differently and the parents know if what the courts are doing is working and The cabinet is also looking into a better system have different requirements they must meet. whether the courts are complying with state and to allow staff to have some administrative Caseworkers recommend whether a parent is or federal laws. downtime. The cabinet plans to submit a is not meeting the requirements. Ms. Caywood She said that she disagrees with reorganization plan, which will depend on the said the courts usually follow the caseworker’s Recommendation 1.1 of the report, which is budget the cabinet receives. The reorganization recommendation. Mr. Hall said a neutral move that the period of temporary custody by the plan would lift some of the administrative burden discussed in the staff presentation refers to a cabinet after a child has been removed from their and add support service aides for caseworkers. move that is court ordered. Ms. Johnson said parents due to allegations of abuse and neglect The cabinet is also reviewing the Public Child the percentage of children who return to foster be extended beyond 45 days. The length of time Welfare Certification Program with universities care after reunification with the family fails, appropriate for adjudication and disposition has across the state. The cabinet continues to look at which is a federal outcome measure, is 14.77. been studied extensively for more than 20 years. enhancing training and has worked with Eastern Ms. Johnson was said she was hesitant to say Studies have shown a direct correlation between Kentucky University to revamp and streamline how much it would cost to implement all the timely court hearings and timely permanency for the process. Through the Labor Cabinet, two report recommendations. Ms. Caywood said children. The National Council of Juvenile and new job classifications are being developed the Public Child Welfare Certification Program Family Court Judges’ 1995 resource guidelines, for apprenticeship opportunities. In order to has existed for 20 years. Not every slot is filled endorsed by entities such as the National get to the recommended standard caseloads in the program, though retention is stronger Council of Chief Justices, the National Center for of 17 or 18 per caseworker, the cabinet has for participants. Ms. Johnson will provide the State Courts, and the American Bar Association, looked at different ways to add staff while being number of how many enroll and complete the recommended that adjudication and disposition

54 2017 Interim LEGISLATIVE RECORD should occur within 60 days of the date of confusion, increase uniform application across removal. It is not required that all issues be fixed the state, and ensure service efforts are made in within that time, but that an appropriate plan to the manner most likely to provide expeditious do so is implemented. and actual notice of the proceedings to parents. She echoed the report’s recommendation The judges made several systemic that the workforce of social services be increased. recommendations: implement the judicial When fields are added to court forms, new duties redistricting plan; increase funding for intensive are added to clerk’s offices, many of which are in-home services and programs such as family understaffed. preservation and family reunification; enforce If the court system is to work properly, quality the DCBS operating procedure for family service representation for both parents and children is workers to complete the presentation summary essential. The fee structure established in 1985 to packet no later than 10 working days following pay district court attorneys $250 per case has not a judgement of termination of parental rights; changed. Family court attorneys are paid $500 have more concurrent planning; and continue per case. The pay for these attorneys affects who working with the community to develop is willing to accept these cases. resources that allow parents to spend time with Counsel should be appointed for the first their children. hearing, which studies indicate is the most In response to a question asked earlier by important or at least one of the most important. Senator Carroll, Ms. Walker-FitzGerald said Studies show that where an attorney is involved parents are sometimes given too many chances at the first hearing, the number of removals goes at redemption. This is often due to training and down, and that when children are removed from retention of both social workers and judges. their parents they achieve permanency more A new social worker or judge is more likely to quickly. This is easier to achieve in urban areas. remove a child just to be safe. There is also more Salaries for judges also should be reviewed. reluctance to terminate, even when the evidence Kentucky’s judges are among the lowest paid in is clear to do so. Retention affects the quality of the country. Salary will have an increasing effect decisions made. on whether qualified attorneys consider judicial In response to a question from about careers. Judicial pensions have also been reduced. Representative Bechler about parents having She supports the Chief Justice’s redistricting an attorney at the first meeting leading to fewer plan to provide family court to more areas. children being removed, Ms. Walker-FitzGerald The permanency goal “emancipation” should said the system has checks and balances. There be removed from the cabinet’s regulations. It is a social worker making a recommendation, is not an approved permanency goal under the the child’s attorney, the county attorney, and a Adoption and Safe Families Act and it is not an judge. Children are often removed when they do acceptable goal for any child. not need to be. If the parent’s attorney can have A judicial task force was formed in response services put in place immediately, the child may to a request by the House Adoption Working not need to be removed. Group for recommendations from AOC. The Senator Carroll commented that this is work group developed three recommendations a growing issue. Hopefully the efforts being for statutory changes. First, the number one issue undertaken can make the system better. raised by surveyed judges was the delays caused Resources are needed; it is a dilemma faced at by concurrent criminal charges. Currently, every level of government. Due to the loss of a adjudication of many cases is delayed due to quorum, a vote will not be taken to adopt the criminal cases so that parents can testify in their report at this time. of child dependency, neglect and abuse neglect He said that the investigation into the Perdue cases. It was recommended that testimony by Pharma settlement has been postponed due to a a parent accused of abuse or neglect shall not lawsuit that was filed. The committee will not be admissible in any criminal proceeding for meet in December. charges arising from the same occurrence, The meeting adjourned at 12:12 PM. thus permitting the court hearing in the child protection case to move forward in a timely manner while permitting the parent to participate fully in the child dependency, neglect, and abuse proceedings. Second, the judges would like to modify the current statute governing venue for dependency cases to add that a petition may be filed in the county where the child ordinarily resides or will reside. Third, the judges would like to modify the current statutes on service of parents to be consistent with each other to lessen THE KENTUCKY GENERAL ASSEMBLY 55 2018 Prefiled Bills amend KRS 139.105, 139.200, 139.220, Representative Jerry Miller - Representative Jim Wayne, BR1 - BR15 139.270, 139.340 and 139.740 to impose sales (8/16/2017) Representative Tom Burch, Representative tax on selected services; create a new section of Jeffery Donohue, Representative Joni KRS Chapter 141 to provide for a refundable AN ACT relating to the overtaking of Jenkins, Representative Mary Lou Marzian, Kentucky earned income tax credit; amend bicycles on a roadway. Representative Reginald Meeks, Representative KRS 243.0305 and 243.990 to recognize Amend KRS 189.300 to Attica Scott changes in the distilled spirits case tax; amend provide that the operator of any vehicle moving (7/13/2017) KRS 138.130, 138.140, and 138.143 to change upon a highway is to keep to the right unless the tax on cigarette rolling papers, to raise the signage or markings indicate otherwise; amend AN ACT relating to taxation. tobacco taxes, to impose a floor stock tax, and KRS 189.340 to require vehicles overtaking Amend KRS 140.130 to to tax e-cigarettes; amend KRS 65.125, 65.674, bicycles to pass at a distance of at least three decouple from changes to the federal estate tax 67.862, 67.938, 67A.843, 68.245, 68.248, feet; provide that if there not a minimum since 2003; amend KRS 141.010 to provide 82.095, 97.590, 132.0225, 132.023, 132.024, distance of three feet available, the passing for a reduction and phase-out of the pension 132.027, 132.029, 157.440, 160.470, 160.473, vehicle is to use reasonable caution; specify exclusion, disallow the domestic production 67C.147, 78.530, 342.340, and 134.810 to when a motor vehicle may pass a bicycle to the activities deduction, establish a cap for itemized remove provisions that allow for recall of left of the center of a roadway. deductions, and define “taxpayer”; amend KRS certain tax rates and make conforming and (Prefiled by the sponsor(s).) 141.020 to provide for changes to income tax technical changes; create a new section of KRS rates; amend KRS 141.066 to make a technical Chapter 141 to provide for a refundable noise - Representative Diane St. Onge correction; amend KRS 141.0205 to recognize BR2 mitigation credit; repeal KRS 132.017, 132.018, (6/5/2017) and order changes in income tax credits; amend 132.025, 132.720, 143A.035, and 243.710, KRS 141.0401 to lower the exclusion threshold; relating to recall petitions and to various tax AN ACT relating to public safety. amend KRS 141.120 to change apportionment rates; provide that estate tax provisions apply Amend KRS 446.010 to methods to use a “throwback” rule and market- for deaths occurring on or after August 1, 2018, define “unmanned aircraft system”; create a based sourcing for receipts; amend KRS sales tax provisions are effective for periods new section of KRS Chapter 500 to prescribe 141.200 to require “combined” reporting for beginning on or after October 1, 2018, motor permitted and prohibited uses of drones; corporations; amend KRS 134.810, 136.310, fuels compensation provisions are effective provide exceptions; prohibit use of evidence 136.530, 141.040, 141.121, 141.206, and August 1, 2018, and property tax provisions are obtained by a drone in violation of stated 141.420 to conform; amend KRS 141.205 to for assessments on and after January 1, 2019. prohibitions; authorize that section to be cited recognize “tax haven” foreign countries and (Prefiled by the sponsor(s).) as the “Citizens’ Freedom from Unwarranted tax all income apportioned or allocated to Surveillance Act”; create a new section of those countries; amend KRS 141.383, 148.544, BR18 - Senator Morgan McGarvey KRS Chapter 501 to clarify criminal liability and 148.546 to make the film industry tax (10/18/2017) for offenses committed using a drone; create a credit nonrefundable and nontransferable; new section of KRS Chapter 525 to create the create a new section of KRS 6.905 to 6.935 AN ACT relating to offense of obstructing an emergency responder. to require review and sunset of all economic telecommunications. (Prefiled by the sponsor(s).) development tax credits; amend KRS 131.190 Amend KRS 278.5461 to to allow LRC employees to review selected include a definition of “personally identifiable - Representative Tom Burch tax documents; amend KRS 138.270 to reduce BR14 information”; amend KRS 278.5462 to provide (6/22/2017) motor fuels dealer compensation to one that no telecommunications or Internet service percent; amend KRS 132.020 to make the real provider shall collect personally identifiable AN ACT relating to the reporting of property tax rate 12.2 cents per $100, remove information from a customer as a result of the child abuse, neglect, or dependency. the rate adjustment provision, and remove customer’s use of the telecommunications or Amend KRS 620.030 to establish that the recall provisions; amend KRS 132.260 to Internet services without the customer’s express if a person knows or has reasonable cause to clarify requirements for reporting of rental written approval. believe that a child is dependent, neglected, or space for mobile or manufactured homes, (Prefiled by the sponsor(s).) abused, causes an oral or written report of the private aircraft, and certain boats or vessels; dependency, neglect, or abuse to be made, is amend KRS 132.730, 132.751, 132.810, and BR25 - Representative Jeffery Donohue employed by a local law enforcement agency, 132.815 to clarify property tax treatment of (8/14/2017) the Department of Kentucky State Police, the manufactured homes; amend KRS 140.300 to cabinet or its designated representative, the clarify the treatment of agricultural valuation AN ACT relating to death in the line of Commonwealth’s attorney, or a county attorney, on inherited property; amend KRS 279.200, duty benefits and declaring an emergency. then that person shall make the oral or written 279.530, 279.220, and 139.530 to repeal rural Amend KRS 16.601 and report to his or her employer and to one of the electric and telephone co-op taxes; amend KRS 61.621 to increase minimum death benefits other entities authorized to receive the report. 132.097 and 132.099 to amend the exemption payable to the surviving spouse of a member of (Prefiled by the sponsor(s).) for personal property shipped out of state;

56 2017 Interim LEGISLATIVE RECORD the state-administered retirement systems from BR38 - Senator John Schickel voting between 8 a.m. and 6 p.m. on the three 25% to 50% of the deceased member’s final (5/15/2017) Saturdays preeceding any primary, regular rate of pay if the member died as a result of an election or special election; amend KRS act occurring in the line of duty; amend KRS AN ACT relating to Kentucky school 117.087, 117.165, 117.235, and 117.995 to 61.542 to provide that the surviving spouse bus drivers. conform; amend KRS 118.035 to conform and shall supersede all previously designated Create a new section of KRS to also extend voting hours for election day beneficiaries in the case of line-of-duty death Chapter 2 to designate and observe May 1 of voting from 6 p.m. to 8 p.m. benefits payable from the systems administered every year as “School Bus Driver Day.” (Prefiled by the sponsor(s).) by the Kentucky Retirement Systems unless the (Prefiled by the sponsor(s).) member files a valid beneficiary designation BR54 - Representative Jeffery Donohue form after marriage to his or her spouse; BR39 - Representative Sal Santoro (6/8/2017) provide that eligible surviving spouses of (5/16/2017) members who died in the line of duty prior to AN ACT relating to railroads. the effective date of the Act shall receive the AN ACT relating to Kentucky school Create a new section of KRS increased line of duty death benefits; provide bus drivers. Chapter 277 to require two-person crews on that a surviving spouse of a hazardous duty Create a new section of KRS trains or light engines used in connection member who died as a result of an act occurring Chapter 2 to designate and observe May 1 of with the movement of freight; establish civil in the line of duty on or after January 1, 2017, every year as “School Bus Driver Day.” penalties for failure to have a two-person crew. who was ineligible for the minimum monthly (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) death benefits because he or she was not named beneficiary shall be eligible for the benefits BR40 - Representative Kenny Imes BR57 - Representative Sal Santoro provided by this Act; EMERGENCY. (6/27/2017) (9/22/2017) (Prefiled by the sponsor(s).) AN ACT proposing to amend Section AN ACT relating to electric and hybrid BR28 - Representative Jason Nemes 29 of the Constitution of Kentucky relating to vehicle fees and making an appropriation (9/20/2017) administrative regulations. therefor. Propose to amend Section 29 of Create a new section of KRS AN ACT proposing to amend Sections the Constitution of Kentucky to permit the Chapter 186 to establish a base fee for hybrid 117, 118, 119, and 122 of the Constitution of General Assembly or an agency or committee vehicles, hybrid electric plug-in vehicles, and Kentucky relating to the election of appellate it creates to review, approve, or disapprove non-hybrid electric vehicles; require the fee to judges. any administrative regulation of the executive be adjusted with any increase or decrease in Propose to amend Sections branch during or between regular sessions of the gasoline tax established in KRS 138.228; 117, 118, 119, and 122 of the Constitution the General Assembly; submit to the voters require collection of the fee at the time of of Kentucky to fill terms of justices of the for approval or disapproval; supply ballot motor vehicle registration; require that all fees Supreme Court and judges of the Court of language. collected under this section be transferred to Appeals by appointment by the Governor from (Prefiled by the sponsor(s).) the road fund; amend KRS 186.010 to define a list of three nominees provided by the judicial the terms “hybrid vehicle,” “hybrid electric nominating commission; provide for appointed BR41 - Representative Kenny Imes plug-in vehicle,” and “non-hybrid electric justices and judges who seek additional terms (6/6/2017) vehicle”; amend KRS 186.050 to reference to stand for elections in their districts; limit the fees collected under this Act; amend KRS individuals to two full terms of office; schedule AN ACT proposing to amend Section 138.220 to provide notification to county clerks transitional provisions; submit to the voters for 95 of the Constitution of Kentucky relating to of the fees provided in this Act; make technical approval or disapproval. the election of state officers. correction; EFFECTIVE January 1, 2019. (Prefiled by the sponsor(s).) Propose to amend Section 95 (Prefiled by the sponsor(s).) of the Constitution of Kentucky to hold the BR37 - Representative Scott Wells election of the Governor, Lieutenant Governor, BR64 - Senator Johnny Ray Turner (8/25/2017) Treasurer, Auditor of Public Accounts, Attorney (6/1/2017) General, Secretary of State, and Commissioner AN ACT relating to area development of Agriculture, Labor and Statistics in even- AN ACT relating to vacating districts and declaring an emergency. numbered years, every four years, beginning in convictions for reckless homicide. Amend KRS 147A.117 to 2024; provide transitional calendar; submit to Amend KRS 431.073 to allow require that the Auditor of Public Accounts’ the voters for ratification or rejection; provide convictions for reckless homicide to be vacated bill shall not exceed a quote given to an area ballot language. and expunged if the offender has first been development district by a certified public (Prefiled by the sponsor(s).) granted a partial pardon by the Governor. accountant for the same audit; EMERGENCY; (Prefiled by the sponsor(s).) EFFECTIVE July 1, 2018. BR49 - Senator Reginald Thomas (Prefiled by the sponsor(s).) (12/5/2017) BR65 - Senator Reginald Thomas (11/20/2017) AN ACT relating to voting. Create a new section of AN ACT relating to wages. KRS Chapter 117 to allow in-person early Amend KRS 337.010 to THE KENTUCKY GENERAL ASSEMBLY 57 increase the applicable threshold of employees BR79 - Representative Kim King or her behalf; allow an organization to obtain of retail stores and service industries from (11/20/2017) a placard; require an initial permanent placard $95,000 to $500,000 average annual gross to be issued at no cost; establish a fee of $10 volume of sales for the employer; amend KRS AN ACT relating to telephone for a duplicate or replacement placard; specify 337.275 to raise the state minimum wage to solicitation. that $8 of the fee be forwarded to the road fund $8.20 per hour on July 1, 2018, to $9.15 per Amend KRS 367.46955 to and $2 to the county clerk; require the cabinet hour on July 1, 2019, to $10.10 per hour on prohibit knowingly using a caller identification to promulgate administrative regulations; July 1, 2020, to $11.00 per hour on July 1, service to transmit misleading or inaccurate amend KRS 189.458 to require that an initial 2021, to $12.05 per hour on July 1, 2022, to caller identification information with the intent temporary placard be issued at no charge; $13.10 per hour on July 1, 2023, to $13.95 per of defrauding or causing to another person or establish a fee of $10 for a replacement hour on July 1, 2024, and to $15.00 per hour wrongfully obtain anything of value. placard; specify that $8 of the fee be forwarded on July 1, 2025, and to raise the state minimum (Prefiled by the sponsor(s).) to the road fund and $2 to the county clerk; wage for tipped employees to $2.13 per hour amend KRS 186.042 and 186.990 to conform.. on the effective date of the Act, to $3.05 per BR81 - Representative Brandon Reed (Prefiled by the sponsor(s).) hour on July 1, 2019, to $3.95 per hour on July (9/28/2017) 1, 2020, and to $4.90 per hour on July 1, 2021; BR97 - Representative George Brown Jr, include anti-preemption language permitting Urge the United States Fish and Representative Attica Scott, Representative local governments to establish minimum wage Wildlife Service to issue more migratory bird Reginald Meeks ordinances in excess of the state minimum depredation permits and subpermits to allow (7/12/2017) wage. Kentucky farmers to legally take black vultures (Prefiled by the sponsor(s).) that are depredating their livestock. AN ACT relating to criminal histories (Prefiled by the sponsor(s).) of job applicants. BR66 - Senator Reginald Thomas Create a new section of (11/28/2017) BR91 - Representative Regina Huff KRS Chapter 344 to prohibit employers (7/25/2017) from considering or requiring disclosure of AN ACT relating to criminal justice prior criminal history as part of the initial job services for veterans. AN ACT relating to suicide prevention application; title the Act “Ban the Box - The Create a new section of KRS training. Criminal Record Employment Discrimination Chapter 26A, relating to the Court of Justice, Amend KRS 156.095 to require Act.” to require the Supreme Court to administer two hours of in-person suicide prevention (Prefiled by the sponsor(s).) a veterans treatment court program; amend professional development training every KRS 533.015 to include veterans treatment other school year for middle and high school BR102 - Representative Suzanne Miles, court in alternative sentencing options; amend principals, guidance counselors, and teachers; Representative Jason Nemes KRS 431.515, relating to pretrial services for require a newly hired staff member to receive (6/29/2017) veterans, to remove the combat requirement, a packet of information on suicide prevention establish rules for contacting Veterans Justice when the person is hired in a year training is AN ACT relating to the natural Outreach programs, and require pretrial officers not provided; amend KRS 158.070 to delete resources severance and processing tax. to provide contact information for veterans requirement for two hours of self-study review Amend KRS 143A.010 to treatment courts and the Veterans Justice for suicide prevention training. amend the definition of “processing” to include Outreach program. (Prefiled by the sponsor(s).) the act of loading or unloading limestone that (Prefiled by the sponsor(s).) has not otherwise been severed or treated in BR93 - Representative Jerry Miller the Commonwealth; amend KRS 143A.035 BR67 - Representative Jason Nemes (12/8/2017) to allow a credit for substantially identical (9/20/2017) severance or processing taxes paid to another AN ACT relating to disabled parking state or political subdivision thereof; provide AN ACT relating to appellate judges. placards. that no taxpayer may claim a total amount Amend KRS 118A.110 to Amend KRS 189.456 to require of credit that exceeds his or her tax liability; define “retention election” for appellate judges; a county clerk to issue one accessible parking allow the Department of Revenue to report tax create a new section of KRS Chapter 118A placard to an applicant at no cost; change credit information to the Legislative Research to create an election process for retaining placard renewal cycle from 2 years to 6 years; Commission; amend other sections to conform; appointed appellate judges, following the specify that placard expires in the applicant’s EFFECTIVE August 1, 2018. ratification of a constitutional amendment to birth month and may be renewed up to 12 (Prefiled by the sponsor(s).) provide for appointments of appellate judges; months prior to expiration; establish a system amend KRS 118A.020, 118A.030, 118A.060, for the creation of a decal to be affixed to the BR105 - Senator Danny Carroll 118A.100, and 118A.140 to conform; placard after renewal; require statement for (10/12/2017) repeal, reenact, and amend KRS 21A.020 initial permanent placard and placards issued to set staggered terms for appellate judges; prior to the effective date of the Act; require AN ACT relating to sex offenses. EFFECTIVE contingently on January 1, 2020. that a statement to obtain a placard be made Amend KRS 510.050, 510.060, (Prefiled by the sponsor(s).) on a form prescribed by the Transportation 510.080, 510.090, 510.110, and 510.120 to Cabinet; allow a parent or guardian of a increase penalties for sex crimes against a disabled person to apply for a placard on his victim who is a person with an intellectual

58 2017 Interim LEGISLATIVE RECORD disability. Angie Hatton, Representative Rick Nelson, determine if they will contract with the provider (Prefiled by the sponsor(s).) Representative Kevin Sinnette within 15 days; specifiy that for reimbursement (6/30/2017) of claims purposes the date of the submission BR106 - Representative Tom Burch of the credentialing application shall be the (12/8/2017) Direct the Public Service date of original enrollment and credentialing; Commission to reexamine the electric rates address the written internal appeals process of AN ACT relating to instruction in the charged to certain ratepayers to determine if MCOs; require 24/7 utilization reviews and prevention of sexually transmitted diseases and they remain fair, just, and reasonable. daily staffing for claims resolution; establish related matters. (Prefiled by the sponsor(s).) grievance and appeal timeline and written Create a new section of KRS Chapter appeal requirements; require reprocessing of 158 requiring the State Board of Education BR116 - Senator Richard Girdler incorrectly paid or erroneously denied claims; to promulgate regulations regarding human (12/8/2017) allow for in-person meetings for unpaid claims sexuality education; require implementation beyond 45 days and that individually or in the of a Department of Education-Approved plan Adjourn in honor and loving aggregate exceed $2,500; require consistency during the 2019-2020 school year; set the memory of Mayor Frey Todd. and timeliness between physical, behavioral, minimum instructional requirements for grades (Prefiled by the sponsor(s).) or other medically necesary services; establish four through twelve; require instruction by a timelines for preauthorization requests; require certified teacher. BR117 - Representative Kim King that substance use disorder be treated as an (Prefiled by the sponsor(s).) (11/17/2017) urgent preauthorization request; require a single nationally recognized clinical review BR113 - Senator Brandon Smith AN ACT proposing an amendment criteria for both physical health and behavioral (9/8/2017) to Section 42 of the Constitution of Kentucky health services; establish monthly reporting relating to compensation for members of the requirements for MCOs relating to claims; AN ACT relating to sign language General Assembly. require reporting between the DMS and the interpretation in the House and Senate Propose to amend Section 42 Department of Insurance; establish penalties for chambers. of the Constitution of Kentucky to prohibit MCOs that fail to comply; prohibit automatic Amend KRS 7.100 to require members of the General Assembly from assignment of Medicaid enrollees to an MCO the Legislative Research Commission to receiving legislative pay for a special session unless there is a participating acute care provide sign language interpretation in each that has been called by the Governor because hospital within the distance requirements; chamber of the General Assembly whenever the the General Assembly adjourned without allow for enrollees to change MCOs outside General Assembly is in session. passing a state budget; submit to the voters with of the open enrollment if their hospital or PCP (Prefiled by the sponsor(s).) ballot question. terminates particpation with an MCO; amend (Prefiled by the sponsor(s).) KRS 304.17A-515 to require each managed BR114 - Representative Chris Harris, care plan to demonstrate that it offers physically Representative Rocky Adkins, Representative BR122 - Senator John Schickel available acute care hospital services; amend Angie Hatton, Representative Rick Nelson, (12/7/2017) KRS 304.17A-576 to require a response about Representative Kevin Sinnette credentialing within 45 instead of 90 days; (6/30/2017) Honor Kellie Clark upon being amend KRS 304.17A-700 to reference Section named 2017 Kentucky Teacher of the Year. 1 of the bill. AN ACT relating to the Public Service (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) Commission. Create a new section of KRS BR127 - Representative Ken Fleming BR131 - Senator Alice Kerr Chapter 278 to require the Public Service (11/29/2017) (10/17/2017) Commission to reconsider previously issued orders that involve multistate transactions if AN ACT relating to service delivery AN ACT relating to the safe disposal of the orders involve a multistate transaction improvements in managed care networks. controlled substances. that requires approval from another state Create new sections of KRS Amend KRS 218A.170 to public utility commission and the out-of-state Chapter 205 to define terms; establish and require a practitioner or a pharmacist to sell public utility commission fails to approve the require that the Department for Medicaid or distribute a nontoxic composition, which transaction or utility plan; require the Public Services designate a single credentialing permanently captures the controlled substance, Service Commission to review its previous verification organization to verify credentials for the sequestration or deactivation and order and determine whether the order is still for DMS and all contracted Medicaid Managed disposal of unused, unwanted, or expired in the public interest of Kentucky ratepayers; Care Organizations; submit the credentialing controlled substances anytime a controlled provide that the provisions of this Act shall organization to Government Contract Review substance is sold or distributed. apply retroactively to all Public Service Committee for comment; require providers to (Prefiled by the sponsor(s).) Commission orders issued on or after July 1, submit a single application to the credentialing 2013. organization; require notification within 5 BR136 - Senator Julie Adams (Prefiled by the sponsor(s).) days to the provider if application is complete; (12/1/2017) require verified packets be sent to the DMS and BR115 - Representative Chris Harris, MCOs within 30 days; require DMS to enroll AN ACT establishing the Kentucky Representative Rocky Adkins, Representative providers within 15 days and for the MCOs to Rare Disease Advisory Council and making an THE KENTUCKY GENERAL ASSEMBLY 59 appropriation therefor. require the Lottery Corporation to determine Create new sections of KRS BR146 - Senator Wil Schroder occupations related to casino gaming that Chapter 211 to establish the Kentucky Rare (12/8/2017) require licensure and establish criteria for Disease Advisory Council; list members to be occupational licensing; permit the corporation appointed by the Governor; state the duties Adjourn in honor and loving to initiate disciplinary action against applicants of the council; require a report of council memory of James Paul David “Jim” Bunning Jr. and license holders; establish an appeal process; activities; create a rare disease trust fund to (Prefiled by the sponsor(s).) establish a gaming tax of 31% and limit that be administered by the Cabinet for Health and money to the benefit of the state retirement Family Services to finance the operation of BR148 - Representative Dan Johnson systems for the first 10 years; establish an the council and support rare disease research (11/28/2017) admission tax of $3 per person per day; and treatment; require a report on expenditures establish the casino gaming revenue distribution from the fund; require the council to cease to AN ACT relating to freedom of speech trust fund; establish the regional tourism and exist on December 1, 2028, unless otherwise at public postsecondary education institutions. infrastructure development fund and provide reestablished by the General Assembly. Amend KRS 164.348 to require criteria for projects seeking money from the (Prefiled by the sponsor(s).) public postsecondary institutions to adopt fund; waive 15 U.S.C. sec. 1172, 1173 and policies ensuring the protection of freedom of 1174 for devices authorized by this Act; require BR142 - Representative Phil Moffett speech and expression by students and faculty. the corporation to promulgate administrative (12/7/2017) (Prefiled by the sponsor(s).) regulations to define and limit games and devices permitted for gaming in casinos; AN ACT relating to the taking of the BR149 - Representative Dennis Keene provide guidelines for exclusion or ejection sense of the people of the Commonwealth as (9/18/2017) of certain persons; define “cheat” and provide to the necessity and expediency of calling a penalties for those who cheat at casino games; convention to revise or amend the Constitution AN ACT relating to the expansion of amend KRS 243.500 to exempt limited or full of Kentucky, and the amendments that may gaming and making an appropriation therefor. casino gaming; amend KRS 525.090 to exempt have been made to it, as provided by Section Create a noncodified section persons engaged in casino gaming; amend 258 of the Constitution of Kentucky. to state the findings of the General Assembly; KRS 528.010 to exempt gambling activity and Propose to take the sense of the amend KRS 154A.010 to define, “authorizing devices licensed under KRS Chapter 154A; people of Kentucky regarding the calling of a location,” “casino,” “county,” “county amend KRS 528.020 to conform; amend KRS convention to revise or amend the Constitution legislative body,” “department,” “full casino 528.070 to exempt activity licensed under of Kentucky, as provided by Section 258 of the gaming,” “gaming licensee,” “gross gaming KRS Chapter 154A; amend KRS 528.080 present Constitution. revenue,” “handle,” “licensee,” “limited to exempt those with the appropriate license (Prefiled by the sponsor(s).) casino gaming,” and “principal”; amend KRS required under KRS Chapter 154A; amend 154A.030 to expand the Lottery Corporation KRS 528.100 to exempt limited or full casino BR143 - Representative Dan Johnson board membership and duties; amend KRS gaming licensed under KRS Chapter 154A; (10/5/2017) 154A.040 to include casino licensees; amend EFFECTIVE DATE DELAYED. 154A.063 to remove prohibition against casino (Prefiled by the sponsor(s).) AN ACT relating to unborn children gaming; create new sections of KRS Chapter and declaring an emergency. 154A to require a local option election in any BR155 - Senator Julian Carroll Amend KRS 507A.010 to precinct wanting to host a casino; describe (9/20/2017) redefine “abortion,” “unborn child” and define the duties of the county clerk and sheriff in “fertilization”; amend the definition of unborn a casino gaming local option election; state AN ACT relating to sports wagering child; require prosecution for the death of requirements for local option elections held on and making an appropriation therefor. an unborn child without limitation and not a day other than a regular election day; require Create a new section of KRS withstanding any other state law regardless of the corporation to advertise an invitation to bid Chapter 230 to require the Kentucky Horse the identity of the actor; create a new section for casinos; require the corporation to evaluate Racing Commission to institute a sports of KRS Chapter 15 to require the Attorney all proposals for full casinos; establish initial wagering system; amend KRS 230.210 General and Commonwealth’s attorneys to licensing fees for full casinos at $50 million to define “exempt sports contest,” “sports monitor and enforce KRS Chapter 507A; with an initial licensing period of 10 years and wagering,” and “sports wagering facility”; amend KRS 211.027, 311.720, 311.727, and annual renewal thereafter at $6 million per amend KRS 230.215 to declare it the policy 311.760 to conform; repeal KRS 311.710 year; permit limited casino gaming at horse of the Commonwealth to encourage the and 507A.060; permit the Act to be cited as racing tracks licensed under KRS Chapter 230; conduct of wagering on sporting events, the Abolition of Abortion in Kentucky Act; establish requirements for limited casinos; when allowed by federal law, and to vest EMERGENCY. establish requirements for any track holding a forceful control over sports wagering in the (Prefiled by the sponsor(s).) limited casino license; establish requirements racing commission; include consideration of for principals of any corporation granted members of professional and collegiate sports BR145 - Senator John Schickel a casino license; create license application organizations in the Governor’s appointments (12/7/2017) requirements for casino, manufacturer, or to the commission; amend KRS 230.240 to supplier’s licenses; prohibit anyone not licensed allow the director of the racing commission Adjourn in honor and loving from selling, leasing, or otherwise furnishing to take personnel action relating to sports memory of Vivian Stewart Cartmell. gaming supplies; prohibit anyone under the wagering; amend KRS 230.260 to include (Prefiled by the sponsor(s).) age of 21 from participating in casino gaming; promotion of fair sports wagering among the

60 2017 Interim LEGISLATIVE RECORD purposes of the racing commission; create a BR164 - Senator Morgan McGarvey new section of KRS Chapter 230 to establish (10/19/2017) BR172 - Representative C. Wesley Morgan licensing requirements and establish a licensing (8/22/2017) fee of $250,000; create a new section of KRS AN ACT relating to animal safety. Chapter 230 to require the racing commission Amend KRS 411.245 to AN ACT relating to carrying concealed to promulgate administrative regulations establish immunity from civil liability for weapons. prescribing the manner in which sports damage to a vehicle if a person enters the Create a new section of wagering shall be conducted; provide minimum vehicle for the purpose of removing a domestic Chapter 237 to allow concealed deadly criteria; prohibit participants from wagering on animal. weapons to be carried without a license in same a sporting event; create a new section of KRS (Prefiled by the sponsor(s).) locations as concealed carry license holders Chapter 230 to establish a 20 percent tax on may carry them; amend KRS 237.115 and the total amount wagered at sports wagering BR165 - Representative Jim Wayne 527.020 to conform. facilities; create a new section of KRS Chapter (8/8/2017) (Prefiled by the sponsor(s).) 230 to establish the sports wagering distribution trust fund and appropriate moneys from that AN ACT relating to firearms. BR173 - Representative C. Wesley Morgan fund; amend KRS 230.320 to include sports Create a new section of KRS Chapter (8/18/2017) wagering among the activities that are regulated 527 to prohibit the unlawful storage of a by the racing commission; amend KRS firearm. AN ACT relating to public assistance. 230.360 to include sports wagering among the (Prefiled by the sponsor(s).) Amend KRS 205.200 to create activities that are not subject to local control; a substance abuse screening program for adult amend KRS 230.990 to establish penalties for BR169 - Representative Kim King recipients of public assistance, food stamps, tampering with the outcome of a sporting event (12/6/2017) and state medical assistance. and participant wagering on a sporting event; (Prefiled by the sponsor(s).) EFFECTIVE UPON CONTINGENCY: Act AN ACT relating to pawnbrokers. takes effect only if the federal Professional and Amend KRS 226.040 to require BR174 - Representative C. Wesley Morgan Amateur Sports Protection Act is repealed by specific information on a pawnbroker’s register (10/25/2017) Congress or is rendered void by the United to be included on an Internet-based register; States Suprem Court. require that the register be available to law AN ACT relating to historical (Prefiled by the sponsor(s).) enforcement personnel and that it contain a full preservation. description of property purchased or pawned; Create new sections of KRS BR160 - Representative Phil Moffett require secondhand merchandise sold to a Chapter 11 to establish the Kentucky Memorial (12/7/2017) pawnbroker to be held a minimum of 12 days Preservation Act of 2018; define terms; create before being resold. standards for preservation; prohibit any person AN ACT relating to trespass. (Prefiled by the sponsor(s).) from preventing maintenance of memorials Amend KRS 511.070 to allow under the jurisdiction of a governmental notice of trespass to be given through the BR170 - Representative Attica Scott, entity; establish the Committee on Kentucky placement of identifying purple paint marks Representative George Brown Jr, Monument Protection and provide the structure, on property; require any owner or lessee who Representative Kelly Flood process, and membership of the committee; marks his or her real property in such a manner (8/31/2017) establish the duties of the committee; establish to also provide clear written notice forbidding a petition process for a waiver if an entity wants entry. AN ACT relating to student criminal to remove, alter, rename, relocate, or disturb (Prefiled by the sponsor(s).) history background checks. certain significant properties; create certain Create a new section of KRS exemptions; authorize the Attorney General to BR163 - Senator Julian Carroll Chapter 164 to prohibit public postsecondary determine whether an entity responsible for the (10/18/2017) institutions from inquiring about a prospective architecturally significant building, memorial student’s criminal history prior to admission, building, memorial school, memorial street, or AN ACT relating to cannabidiol use. except for certain types of offenses; allow an monument has complied with the provisions Create a new section of institution to inquire about a student’s criminal of this Act; require the Division of Historic KRS Chapter 218A to permit a physician history after admission, for the purposes of Properties to promulgate administrative to recommend the use of cannabidiol providing support services and informing regulations under KRS Chapter 13A for the or cannabidiol products; set criteria for decisions regarding a student’s participation implementation of this Act; amend KRS 11.026 recommendations; prohibit the Board in campus activities, organizations, and to conform. of Medical Licensure from prohibiting residency; allow an institution to inquire about (Prefiled by the sponsor(s).) recommendations; amend KRS 218A.010 a student’s criminal history prior to admission to add recommendation to the definition of into a professional degree program, but BR175 - Representative C. Wesley marijuana. prohibit denial of admission based solely on Morgan (Prefiled by the sponsor(s).) criminal history; require institutions to provide Oct 09-WITHDRAWN counseling regarding occupational licensing requirements to a professional degree student who has a criminal history. (Prefiled by the sponsor(s).) THE KENTUCKY GENERAL ASSEMBLY 61 BR182 - Representative Rick Nelson (Prefiled by the sponsor(s).) for his or her service to the General Assembly (8/17/2017) and receive a refund of his or her accumulated BR195 - Representative Regina Huff account balance; provide that the election to not AN ACT relating to electric utility (9/15/2017) participate or discontinue participation in the billing. Legislators’ Retirement Plan or the Kentucky Create a new section of KRS AN ACT relating to a day of prayer for Employees Retirement System shall apply to all Chapter 278 to place a cap on the amount that students. future service of the General Assembly; amend an electric utility can bill for a basic service Create a new section of KRS KRS 6.505, 61.510, 61.525, 61.535, and 61.625 charge. Chapter 2 designating the last Wednesday in to conform. (Prefiled by the sponsor(s).) September of each year as A Day of Prayer for (Prefiled by the sponsor(s).) Kentucky’s Students. BR187 - Senator Dorsey Ridley (Prefiled by the sponsor(s).) BR205 - Representative C. Wesley Morgan (9/27/2017) (12/4/2017) BR197 - Representative Dennis Keene, AN ACT relating to notification of Representative Rick Rand Expel Representative the expiration date of an instruction permit, (9/18/2017) Jeff Hoover from the Kentucky House of operator’s license, or personal identification Representatives. card. AN ACT proposing an amendment to (Prefiled by the sponsor(s).) Create a new section of KRS Section 226 of the Constitution of Kentucky 186.400 to186.640 to require the Transportation relating to casino gaming. BR208 - Representative Scott Wells Cabinet to notify holders of operator’s licenses, Propose to amend Section 226 (11/28/2017) instruction permits, and personal ID cards of of the Constitution of Kentucky to authorize the impending expiration of these documents 45 the General Assembly to define and permit AN ACT relating to unemployment days prior to their expiration; allow notice by casino gaming; prior to July 1, 2029, require insurance. electronic or postal mail; allow license, permit, that proceeds be used to pay for oversight of Create a new section of KRS and ID card holders to provide electronic casino gaming, and mandate that 100 percent Chapter 341 to define a “seasonal/on recall mail addresses for notification or opt out of of proceeds in excess of oversight costs go to employee” and require certification for an notification; clarify that nonreceipt of a notice retirement systems; after July 1, 2029, allow the employer with these types of employees; shall not constitute a defense to any offense General Assembly to allocate proceeds. amend KRS 341.350 to exempt seasonal/on regarding an expired permit or license. (Prefiled by the sponsor(s).) recall employees from the waiting week and (Prefiled by the sponsor(s).) reemployment requirements. BR199 - Representative Kenny Imes (Prefiled by the sponsor(s).) BR192 - Representative Jason Nemes (9/18/2017) (10/13/2017) BR210 - Representative Attica Scott, Urge the United States Representative Reginald Meeks AN ACT relating to personal Congress to amend Title II of the Social (11/22/2017) jurisdiction. Security Act to repeal the Government Pension Amend KRS 454.210 to Offset provision. AN ACT relating to the investigation expand personal jurisdiction of courts over (Prefiled by the sponsor(s).) of a shooting or deadly incident by a law nonresidents. enforcement officer. (Prefiled by the sponsor(s).) BR204 - Senator Richard Girdler, Senator Create new sections of Stephen Meredith KRS Chapter 15A to provide definitions and BR193 - Representative Jason Nemes (9/28/2017) establish an Officer Shooting Review Board (10/20/2017) to investigate any shooting of an individual AN ACT relating to retirement benefit by a law enforcement officer or officers or any AN ACT relating to occupational participation for members of the General deadly incident involving law enforcement; set licensing regulations. Assembly. requirements for board members; provide duties Create new sections of Create a new section of KRS of the board; specify requirements related to KRS Chapter 12 to define terms; set forth 6.145 to 6.237 to allow an individual who investigatory work performed by the Kentucky requirements for all occupational licensing becomes a member of the General Assembly State Police Critical Incident Response Team regulations established by an agency on or on or after the effective date of the Act to on behalf of the board; establish investigatory after November 15, 2018; require each agency make a one-time irrevocable election to not procedures and protocols; provide requirements to conduct a comprehensive review of all participate in the Legislators’ Retirement for submission of the board’s report to the occupational licensing regulations under its Plan or the Kentucky Employees Retirement Commonwealth’s attorney of the jurisdiction jurisdiction every five years and to prepare and System for his or her service to the General in which the shooting or deadly incident took submit a report of its review to the Legislative Assembly; allow an individual who has not place or to the Attorney General; provide Research Commission; establish a process yet met the requirements for vesting to make requirements for independent investigation to petition an agency to repeal or modify an a one-time irrevocable election within 60 days of any shooting of an individual by a law occupational licensing regulation; allow a of the effective date of this Act to discontinue enforcement officer or officers or any deadly petitioner to appeal an agency’s actions or participation in the Legislators’ Retirement Plan incident involving law enforcement. inaction to Circuit Court. or the Kentucky Employees Retirement System (Prefiled by the sponsor(s).)

62 2017 Interim LEGISLATIVE RECORD BR217 - Representative Joseph Fischer (Prefiled by the sponsor(s).) BR213 - Senator Richard Girdler, Senator (11/30/2017) Stephen Meredith BR230 - Representative Jason Nemes, (9/28/2017) AN ACT relating to sex offender Representative C. Wesley Morgan registrants. (10/20/2017) AN ACT relating to retirement benefits Amend KRS 17.546 to for legislators. prohibit sex offender registrants from AN ACT relating to retirement benefits Amend KRS 6.505 to close the knowingly or intentionally using electronic for legislators. Legislators’ Retirement Plan to new members communications for the purpose of soliciting, Create new sections of KRS effective August 1, 2018; prohibit current contacting, communicating with, or gathering 6.500 to 6.577 to permit a member or retiree legislators from participating in the Legislators’ information about a person less than 18 years of the Legislators’ Retirement Plan to opt out Retirement Plan on or after August 1, 2018; of age; provide an exception for a registrant of the traditional defined benefit plan and elect provide that current and future legislators may using electronic communications to contact, to participate in the Kentucky Employees only participate in the Kentucky Employees communicate with, or gather information Retirement System’s hybrid cash balance Retirement System for any service to the about his or her minor child if not otherwise plan for nonhazardous employees under KRS General Assembly occurring on or after August prohibited and if permitted by the sentencing 61.597; specify that, on the member’s effective 1, 2018. court; amend KRS 17.510 to require a registrant election date, the value of the active member’s (Prefiled by the sponsor(s).) to provide written notice of all phone numbers, accumulated account balance or a lump-sum electronic mail addresses, and usernames used payment of the actuarial value of the retiree’s BR214 - Senator Johnny Ray Turner by a registrant to electronically communicate benefits be deposited into the member’s hybrid (11/13/2017) with a person less than 18 years of age. cash balance account and be considered part of (Prefiled by the sponsor(s).) the member’s accumulated account balance in Direct the Transportation the Kentucky Employees Retirement System; Cabinet to designate a Floyd County bridge in BR224 - Senator Stephen Meredith specify that on an active member’s effective honor of Julius Mullins. (12/6/2017) election date, an employer pay credit shall (Prefiled by the sponsor(s).) be applied to the member’s accumulated AN ACT relating to tobacco-related account balance for each contributing month BR215 - Senator John Schickel illnesses and making an appropriation therefor. prior to the effective election date; require (12/7/2017) Create a new section of KRS the Judicial Form Retirement System and the 205.510 to 205.560 to establish the Medicaid Kentucky Retirement Systems to provide the Honor Metzger Eye Care upon tobacco-related illness reimbursement fund; electing member with information detailing the occasion of its 60th anniversary. create a new section of KRS Chapter 212 to the consequences of the member’s or retiree’s (Prefiled by the sponsor(s).) establish the county tobacco cessation fund; election; specify that a member or retiree is not create a new section of KRS Chapter 212 to eligible to make an election until a private letter BR216 - Senator Max Wise provide a minimum smoke-free ordinance for ruling by the IRS is received; make the benefit (9/25/2017) counties to receive money from the county election under this section irrevocable; amend tobacco cessation fund; amend KRS 138.140 to KRS 6.505 to close the Legislators’ Retirement AN ACT relating to pharmacy benefits impose a healthcare reimbursement assessment Plan to new members effective August 1, in the Medicaid program. on cigarettes and other tobacco products, 2018, and transfer all legislative members’ Create a new section of KRS including e-cigarettes; amend KRS 138.130 to in the hybrid cash balance plan to the hybrid Chapter 205 to require the Department for update definitions for chapter, including adding cash balance plan in the Kentucky Employees Medicaid Services to directly administer e-cigarettes to definition of tobacco products; Retirement System; make conforming all outpatient pharmacy benefits; prohibit amend various sections of the Kentucky amendments to KRS 21.374, 21.402, and renewal or negotiation of new contracts to Revised Statutes to conform. 61.597; amend KRS 141.010 and 141.020 to provide Medicaid managed care that allow (Prefiled by the sponsor(s).) provide that, effective for taxable years on or administration of outpatient benefits by after January 1, 2019, members and retirees of any entity but the Department for Medicaid BR228 - Representative Joseph Fischer, the Legislators’ Retirement Plan who do not opt Services; reduce costs of future Medicaid Representative Bart Rowland out of the traditional defined benefit plan and managed care contracts by costs of all (9/26/2017) elect to participate in the Kentucky Employees outpatient pharmacy benefits as they existed on Retirement System’s hybrid cash balance plan January 1, 2017; allow the department to utilize AN ACT relating to credit freezes and have any retirement distributions exceeding managed care principles and techniques to declaring an emergency. $80,000 taxed at a rate of 75%. assist with member medication adherence and Amend KRS 367.365 to allow for (Prefiled by the sponsor(s).) cost control; require the department to establish security freezes to be requested by methods a reasonable dispensing fee pursuant to Centers established by the consumer reporting agency; BR234 - Representative Robby Mills for Medicare and Medicaid Services guidelines; allow consumers to request a replacement (9/28/2017) EFFECTIVE January 1, 2019. personal identification number or password (Prefiled by the sponsor(s).) in the same manner as the original security AN ACT relating to estheticians. freeze request; remove the expiration of a credit Amend KRS 317B.025 freeze after seven years; include gender-neutral to reduce from 1,000 to 700 the hours of language; EMERGENCY. instruction required for licensure as an THE KENTUCKY GENERAL ASSEMBLY 63 esthetician; permit the instruction to be held in BR263 - Representative Dan Johnson BR280 - Representative Daniel Elliott a school in another state if the school is licensed (11/28/2017) (11/22/2017) or approved by that state. (Prefiled by the sponsor(s).) AN ACT relating to Internet blocking AN ACT relating to retirement benefits software and making an appropriation therefor. for legislators. BR235 - Representative Robby Mills Create new sections of KRS Amend KRS 6.505 to close the (9/28/2017) Chapter 367 to require filters for obscenity, Legislators’ Retirement Plan to new members child pornography, revenge pornography, and effective August 1, 2018; prohibit current AN ACT relating to retirement benefit prostitution on all Internet-enabled devices; legislators from participating in the Legislators’ participation for members of the General define various terms; establish criminal Retirement Plan on or after August 1, 2018; Assembly and declaring an emergency. penalties; establish procedures for reporting provide that current and future legislators shall Create a new section of KRS Internet content that is not properly filtered; only participate in the Kentucky Employees 6.145 to 6.237 to allow individuals who create process for deactivation of filters for Retirement System for any service to the become members of the General Assembly a fee of $20 per device; allow manufacurers, General Assembly occurring on or after August on or after April 1, 2018, to make a one-time sellers, lessors, and distributors of devices 1, 2018. irrevocable election to not participate in the to add removal fees; amend KRS 49.480 (Prefiled by the sponsor(s).) Legislators’ Retirement Plan or the Kentucky regarding the crime victims compensation Employees Retirement System for their service fund and KRS 529.140 regarding the human BR285 - Representative Regina Huff to the General Assembly; allow members of trafficking victims fund to accept moneys from (10/19/2017) the General Assembly who began contributing filter deactivation fees and to conform statutory to the Legislators’ Retirement Plan or the language with other fund statutes; EFFECTIVE Apply to Congress Article Kentucky Employees Retirement System July 1, 2019. V of the Constitution of the United States on or after December 31, 2014, but prior to (Prefiled by the sponsor(s).) for the calling of a convention of the states April 1, 2018, to make a one-time irrevocable limited to proposing amendments to the election by December 31, 2018, to discontinue BR271 - Senator Danny Carroll Constitution of the United States that impose participation in the Legislators’ Retirement Plan (10/12/2017) fiscal restraints on the federal government and or the Kentucky Employees Retirement System that limit the powers and jurisdiction of the for their service to the General Assembly and AN ACT relating to the safety of federal government; state that the application receive a refund of accumulated contributions; canines and felines. be aggregated with the applications of other provide that the election to not participate or Create a new section of KRS states and limited for the purposes identified in discontinue participation in the Legislators’ Chapter 411 to provide civil immunity for the applications; state that the application be Retirement Plan or the Kentucky Employees damaging a vehicle if a person enters the a continuing application until a convention is Retirement System applies to all future service vehicle with the reasonable, good-faith belief called or until the application is withdrawn by of the General Assembly; amend KRS 6.505, that a dog or cat is in immediate danger of the Kentucky General Assembly. 61.510, and 61.525 to conform; EMERGENCY. death if not removed. (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) BR286 - Senator Morgan McGarvey BR247 - Senator Dennis Parrett BR275 - Representative C. Wesley (12/8/2017) (10/4/2017) Morgan Oct 26-WITHDRAWN AN ACT relating to the security AN ACT relating to kinship care. of personal information and declaring an Amend KRS 605.120 to BR278 - Representative Stan Lee emergency. permanently establish a kinship care program. (11/21/2017) Amend KRS 367.363 to (Prefiled by the sponsor(s).) include additional definitions; amend KRS AN ACT relating to traumatic brain 367.3645 to provide for a free security freeze BR248 - Senator Dennis Parrett injury treatment for veterans. in the event a protected person has been (9/29/2017) Create new sections of KRS notified of a security breach pursuant to the Chapter 217 to define terms; permit eligible Act and to make technical corrections; amend AN ACT relating to educational veterans to use hyperbaric oxygen treatment for KRS 367.365 to require consumer reporting programs. treatment of traumatic brain injury; establish agencies to encrypt electronic data contained Create a new section of KRS the conditions for use of hyperbaric oxygen in consumer files and consumer reports; Chapter 158 to require the Department of treatment; prohibit sanctions of health care allow for security freezes to be requested Education to develop academic standards for a providers; clarify the duties of health care by methods established by the consumer financial literacy program to be implemented insurers regarding hyperbaric oxygen treatment; reporting agency; allow consumers to request by each public high school; require the financial prohibit certain actions by state officials; a replacement personal identification number literacy program to be completed for high provide that the Act may be known as the or password in the same manner as the original school graduation; direct the department to Colonel Ron Ray Veterans Traumatic Brain security freeze request; remove the expiration determine the implementation date. Injury Treatment Act. of a credit freeze after seven years; include (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) gender-neutral language; to prohibit a credit reporting agency from charging a fee for security freeze in the event a consumer has

64 2017 Interim LEGISLATIVE RECORD been notified of a security breach; require BR306 - Senator John Schickel life. that consumer reporting agencies notify (12/7/2017) Create new sections of consumers of security breaches in compliance KRS Chapter 211 to define terms; establish with KRS 365.732(4) to (7) and provide five Adjourn in honor and loving the Palliative Care and Quality of Life years of credit monitoring; allow for a security memory of Michael Todd Hays. Interdisciplinary Advisory Council within the freeze placed at one nationwide consumer (Prefiled by the sponsor(s).) Cabinet for Health and Family Services and reporting agency to be sent and applied to create provisions and requirements; establish other nationwide consumer reporting agencies; BR310 - Representative James Tipton the Palliative Care Consumer and Professional require third-party agents to notify consumer (10/31/2017) Information and Education Program within the reporting agencies of security breaches; require cabinet and create provisions and requirements; consumer reporting agencies to comply with AN ACT relating to educational require all health facilities to establish systems KRS 365.732(3); prohibit requirements that programs. for identifying patients or residents who consumers waive rights or submit to arbitration; Create a new section of KRS could benefit from palliative care and provide amend KRS 365.730 to extend definitions Chapter 158 to require the Department of information by 2021; allow the cabinet to to KRS 365.732; to conform the definition Education to develop academic standards for a require action plans and impose fines for those of “personally identifiable information”; financial literacy program to be implemented in violation. amend KRS 365.732 to define “encrypt,” and by each public high school; require the financial (Prefiled by the sponsor(s).) “security breach”; provide an exemption for literacy program to be completed for high consumer reporting agencies subject to this Act; school graduation; direct the department to BR339 - Representative Ken Fleming , prohibit electronic or substitute notice from determine the implementation date. Representative John Blanton, Representative being sent to electronic and email accounts (Prefiled by the sponsor(s).) Robert Benvenuti III, Representative involved in the security breach; provide for Joseph Fischer, Representative Jason Petrie, the request for three consumer reports from BR312 - Representative James Tipton Representative John Sims Jr each nationwide consumer reporting agency (10/26/2017) (11/28/2017) by consumers affected by a security breach; prohibit requirements that consumers waive AN ACT relating to drug education. AN ACT relating to law enforcement rights or submit to arbitration; require certain Amend KRS 156.160 to require support programs, declaring an emergency, and information holders to encrypt personally the Kentucky Board of Education to promulgate making an appropriation therefor. identifiable data; make technical corrections; administrative regulations to require physical Create a new section of amend KRS 61.931 to exempt certain persons and health education instruction in drug KRS Chapter 15 to require the Department from the definition of “nonaffiliated third abuse prevention and the connection between of Criminal Justice Training to provide a parties”; conform the definition of “personally abuse and addiction to other drugs; require law enforcement professional development identifiable information”; make technical the Office of Drug Control Policy to develop and wellness program; outline standards for corrections; amend KRS 61.932, KRS 61.933, recommendations for the instruction in drug program; require program to be confidential; 61.934,171.450, 42.722, and 42.726 to abuse prevention to be published on the Web create a fund for the program’s administration; conform; EMERGENCY. site of the Department of Education. APPROPRIATION; EMERGENCY. (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).)

BR305 - Representative C. Wesley Morgan BR315 - Representative Regina Huff BR346 - Representative Ken Fleming , (10/24/2017) (12/8/2017) Representative Kimberly Moser (12/4/2017) AN ACT relating to public protests. Apply to Congress under the Create a new section of KRS provisions of Article V of the Constitution AN ACT relating to legislative ethics. Chapter 525 to create a Class A misdemeanor, of the United States for the calling of a Create new sections of KRS disruption of a public protest, for a person who convention of the states limited to proposing 6.601 to 6.849 to make it ethical misconduct for wears a mask or hood concealing his or her face amendments to the Constitution of the United a legislator, employee of the legislative branch, while engaging in a public protest; create a new States that impose fiscal restraint on the legislative agent, or other person who interacts section of KRS Chapter 525 to create a Class federal government and that limit the powers with legislators or employees of the legislative A misdemeanor, obstruction of traffic; abolish and jurisdiction of the federal government; to branch to intentionally engage in harassment criminal or civil liability for a motor vehicle state that the application be aggregated with or sexual harassment; define “complaint” as operator who causes injury or death to a person the applications of other states limited for the a verbal or written allegation of fraud, theft, obstructing the flow of traffic during a public purposes identified in the applications; state that ethical or official misconduct, discrimination, demonstration for which a permit has not been the application be a continuing application until harassment, or sexual harassment; grant the granted, unless the infliction of injury or death a convention is called or until the application is Legislative Ethics Commission jurisdiction is intentional; create a new section of KRS withdrawn by the Kentucky General Assembly. to investigate and proceed upon receipt Chapter 522 to prohibit any person, including a (Prefiled by the sponsor(s).) of a complaint from an employee of the public servant, from preventing a peace officer legislative branch regarding fraud, theft, from performing official duties at a protest. BR325 - Representative Reginald Meeks ethical or official misconduct, discrimination, (Prefiled by the sponsor(s).) (11/17/2017) harassment, or sexual harassment allegedly committed by legislators, employees of the AN ACT relating to patient quality of legislative branch, legislative agents, or any THE KENTUCKY GENERAL ASSEMBLY 65 other person who interacts with legislators or (Prefiled by the sponsor(s).) employees of the legislative branch on state BR363 - Representative Regina Huff property or official state business; require the BR350 - Representative Phil Moffett (12/8/2017) Legislative Ethics Commission to establish a (12/8/2017) legislative ethics telephone tip line to allow AN ACT relating to the operation of employees of the legislative branch to report AN ACT raising revenue for pensions, bicycles. complaints of fraud, theft, ethical or official making an appropriation therefor, and declaring Amend KRS 189.287 to misconduct, discrimination, harassment, or an emergency. direct the Transportation Cabinet to include a sexual harassment; require the Legislative Amend KRS 243.884 to requirement for bicycle helmets for operators Ethics Commission to publicize the existence increase the wholesale sales tax rate for beer, and passengers under the age of 12 in the of the legislative ethics telephone tip line wine, and distilled spirits to 14 percent; amend bicycle standards and safety regulations by various methods; require the legislative KRS 243.890 to conform; create a new section promulgated under this section. ethics telephone tip line to be available 24 of KRS Chapter 42 to establish the underfunded (Prefiled by the sponsor(s).) hours a day, seven days a week, with the pension trust fund to fund pension plans; create Legislative Ethics Commission providing staff a new section of KRS Chapter 243 to forbid BR369 - Senator John Schickel during regular business hours and allowing local governments from imposing a regulatory (12/7/2017) for recorded messages; require forwarding license fee on the sale of alcoholic beverages; of information reported on the tip line to the amend KRS 242.1292 to conform; amend KRS Honor Julia Pile upon receiving executive director of the Legislative Ethics 244.440 to require that every distiller, rectifier, the inaugural Beverly Nickell Raimondo Commission or designee on an approved form; winery, and nonresident wholesaler make its Leadership Award. provide that the alleged perpetrator shall be brands available to any wholesaler and not (Prefiled by the sponsor(s).) notified and given the oppritunity to file a grant the distributing rights of any particular written response; require the chair, vice chair, brand to only one wholesaler exclusively; BR370 - Representative Gerald Watkins or executive director of the Legislative Ethics amend KRS 243.170 to require that alcohol (11/17/2017) Commission to interview the complainant, wholesalers make deliveries to retailers on a the alleged perpetrator, and any other person timely basis and no later than one week after AN ACT relating to the disclosure of with information pertinent to the complaint; the order date; amend KRS 243.180 to require private cellular phone numbers. direct the commission to give the status of that alcohol distributors make deliveries to Create a new section of KRS the complaint and a general statement of retailers on a timely basis and no later than one Chapter 367 to prohibit the marketing, sharing, applicable law to the complainant and alleged week after the order date; amend KRS 243.200 or selling of wireless phone numbers of perpetrator; provide for consultation with the to permit a quota retail package licensee or a subscribers without express written consent of complainant and, if the chair and vice chair of nonquota malt beverage package licensee to the subscriber; amend KRS 367.990 to create a the Legislative Ethics Commission agree the transport alcoholic beverages between stores of penalty between $1,000 and $10,000 for each complaint is resolved, closing of the file; if the common ownership if the licensee derives not violation. complaint has not been resolved, require the less than 90 percent of his or her cash receipts (Prefiled by the sponsor(s).) enforcement counsel of the commission to file from the sale of alcohol and pays the annual a complaint as provided in KRS 6.686(1)(a); license fee; amend KRS 243.030 to create the BR371 - Representative Gerald Watkins set forth confidentiality provisions; provide that supplemental transporter’s license and establish (11/17/2017) complainants shall not be subject to reprisal; a $100 annual fee; amend KRS 244.040 to require annual reporting of the complaints allow a brewer or distributor to extend credit AN ACT relating to life imprisonment reported on the legislative ethics telephone tip on malt beverages sold to retailers for up to for persistent felony offenders. line; allow employees to pursue other ways of 30 days; create a new section of KRS Chapter Amend KRS 532.080 to reporting complaints of fraud, theft, ethical or 81A to allow standing to any person who owns increase the sentence to life without the official misconduct, discrimination, harassment, property in a territory to file suit against a city possiblity of parole for offenders with three or or sexual harassment; permit employees who that annexes any territory; amend KRS 235.125 more independent convictions for Class A or B report complaints to seek assistance from the to require that vessels documented by the Coast felonies or capital offenses. Kentucky Employee Assistance Program or Guard display a number and validation sticker; (Prefiled by the sponsor(s).) from private health professionals for matters amend KRS 235.210 to require documented related to the complaints; amend KRS 6.611 vessels to register with the county clerk; amend BR372 - Representative Gerald Watkins and 11.010 to conform. KRS 235.230 to remove the requirement (11/17/2017) (Prefiled by the sponsor(s).) that owners of a marina hold the title for a boat moored there for longer than 24 hours; AN ACT relating to criminal attempted BR347 - Representative George Brown Jr, amend KRS 376.270 to prohibit marinas from murder. Representative Reginald Meeks interfering with a boat owner’s right to take Amend KRS 439.3401 to make (11/20/2017) possession of the boat; amend KRS 243.110, criminal attempt to commit murder of a peace 243.157, and 243.360 to make conforming officer or a firefighter an offense for which at Urge Congress to encourage changes; repeal KRS 243.075, 243.886, and least 85 percent of the sentence must be served all state and local governments to participate in 376.272; APPROPRIATION; EMERGENCY; before probation or parole. the Local Update of Census Addresses (LUCA) provide a January 1, 2019, delayed effective (Prefiled by the sponsor(s).) program administered by the United States date for certain sections. Census Bureau. (Prefiled by the sponsor(s).)

66 2017 Interim LEGISLATIVE RECORD BR373 - Representative Gerald Watkins term-limited after two or more years have of the commission independent; amend KRS (11/17/2017) elapsed; provide ballot language; submit to 11A.080 to prohibit the commission from voters for ratification or rejection. turning over information to other agencies, AN ACT relating to crimes and (Prefiled by the sponsor(s).) contractors, or persons, and from making punishments. public statements prior to the completion of an Create a new section of KRS BR387 - Representative Kim King investigation; amend KRS 11A.110 to create Chapter 218A to apply a uniform penalty of (12/5/2017) an ethics tip line; amend KRS 11A.990 to mandatory drug treatment and community make failure to disclose a financial disclosure service to persons convicted of possessing AN ACT relating to legislative statement or tax return as required a Class D certain drugs and paraphernalia; amend KRS procedures for state fiscal measures. felony and disqualify the public servant from 218A.140 to revise possession of counterfeit Create a new section of KRS holding public office; amend KRS 12.028 to substances from a Class D felony to a Class A Chapter 6 to require roll call votes on any state remove the commission from the reorganization misdemeanor; amend KRS 218A.1415 to revise fiscal measure, including an appropriation authority of the Governor; amend KRS possession of a controlled substance from a or revenue-raising measure, voted upon in 18A.005 to include the definition of “relative”; Class D felony to a Class A misdemeanor; the Senate or House of Representatives or amend KRS 18A.155 to prohibit a relative of a amend KRS 218A.1437 to lower possession a committee thereof; require identification sitting state legislator or cabinet secretary from of a methamphetamine precursor from a Class of any state fiscal measure by the director being hired in the unclassified service; amend D felony to a Class A misdemeanor; amend of the Legislative Research Commission, or KRS 45A.095 to define “business relationship” KRS 218A.276 to require that defendants upon a determination by the Senate or House and “family”, and prohibit a no-bid contract convicted of possession of a counterfeit of Representatives or a committee of either; with a vendor having a business relationship substance under KRS 218A.140, marijuana require separate votes for any state fiscal with the Governor, Lieutenant Governor, under KRS 218A.1422, synthetic drugs under measure. or a member of the Governor’s Executive KRS 218A.1430, methamphetamine precursors (Prefiled by the sponsor(s).) Cabinet or any vendor owned by them; amend under KRS 218A.1437, salvia under KRS KRS 45A.715 to prohibit the Department of 218A.1451, or drug paraphernalia under BR388 - Representative James Kay Revenue from entering into a personal service KRS 218A.500 complete a drug treatment (12/8/2017) contract that gives the Governor the authority program; amend KRS 218A.275 to require to set out a bonus payment structure for the that defendants convicted of possession of a AN ACT relating to ethics. collection of taxes; make the former Executive controlled substance under various sections Amend KRS 7.119 to Branch Ethics Commission cease to exist of Chapter 218A complete a drug treatment include communication made by members effective January 1, 2019; require the Attorney program; amend KRS 431.078 to conform. of the General Assembly on publicly owned General, the Auditor of Public Accounts, the (Prefiled by the sponsor(s).) computers or cell phones in the definition of Secretary of State, and the Chief Justice of the records available for public inspection; amend Commonwealth to submit their nominees to the BR381 - Representative Melinda Prunty KRS 11A.040 to prohibit a public servant new Executive Branch Ethics Commission to (12/6/2017) from acting as an executive branch lobbyist the Governor by October 1, 2018, and require for one year after leaving employment, and the Governor to appoint the new commissioners Urge the United States prohibit a public servant from bidding on or on or before December 1, 2018 to take effect Congress to amend Title II of the Social holding a state contract unless approved by January 1, 2019; reconstitution of Executive Security Act to repeal the Government Pension the Executive Branch Ethics Commission; Branch Ethics Commission effective January 1, Offset Provision and the Windfall Elimination amend KRS 11A.045 to prohibit a public 2019. Provision. servant from accepting any gifts or gratuities (Prefiled by the sponsor(s).) (Prefiled by the sponsor(s).) from a person or business holding a state contract; amend KRS 11A.050 to add the BR389 - Senator Richard Girdler BR385 - Representative Jim DuPlessis financial statement filings for public servants (12/8/2017) (12/6/2017) to include August 15 and December 15, require appointees to state boards and commissions Adjourn in honor and loving AN ACT proposing an amendment to file a financial disclosure statement on or memory of Lewis L. “Tee” Phelps. to Section 32 of the Constitution of Kentucky before April 15, and require constitutional (Prefiled by the sponsor(s).) relating to terms of members of the General officers and candidates for constitutional Assembly. office to file a copy of their tax returns with BR392 - Representative Lynn Bechler Propose to amend Section 32 the commission; amend KRS 11A.060 to (12/8/2017) of the Constitution of Kentucky to prevent reestablish the commission as an independent, Senators from serving more than four de jure municipal corporation, and change the AN ACT relating to organ donation. consecutive terms of office, not including way in which board members are appointed Amend KRS 311.1953 to partial terms of two years or less, and to prevent and removed; amend KRS 11A.070 to set require the medical examiner or coroner members of the House of Representatives out requirements for the executive director of to release identifying information and from serving more than six consecutive terms the commission, limit his or her employment relevant postmortem examination results to of office, not including partial terms of two term, and require he or she be sworn in under a procurement organization if a decedent’s years or less, beginning with those elected in Section 228 of the Kentucky Constitution, body or body part is medically suitable for November 2018; allow legislators to resume require the commission to employ four full- transplantation or therapy; provide that Act may service in the house from which they were time investigators, and make all employees be known as Courtney’s Law. THE KENTUCKY GENERAL ASSEMBLY 67 (Prefiled by the sponsor(s).) BR435 - Representative Regina Huff BR420 - Senator John Schickel (12/8/2017) BR398 - Representative James Kay (12/7/2017) (12/8/2017) AN ACT relating to speech-language AN ACT relating to an exemption for pathologists or audiologists, and making an AN ACT proposing an amendment to wage and hours. appropriation therefor. Section 170 of the Constitution of Kentucky Amend KRS 337.010 Amend KRS 157.397 to relating to property exempt from taxation. to include employees of amusement and require local boards of education to provide Propose an amendment to recreational facilities that are open for no more an annual salary supplement to qualified Section 170 of the Constitution of Kentucky than seven months in a year in the exemptions speech-language pathologists or audiologists; increasing the homestead exemption from the relating to wages and hours, bringing APPROPRIATION. current inflation-adjusted amount of $37,600 Kentucky’s laws in line with the federal (Prefiled by the sponsor(s).) to the full assessed value of the property for exemptions. owners with a permanent and total one hundred (Prefiled by the sponsor(s).) BR441 - Senator John Schickel percent service-connected disability rating (12/7/2017) by the United States Department of Veterans BR432 - Representative Steve Riggs Affairs; make the exemption transferrable upon (12/7/2017) Adjourn in honor and loving death to the surviving spouse; add the continued memory of Richard L. “Dick” Roeding. biennial inflation indexing of the homestead AN ACT relating to investments made (Prefiled by the sponsor(s).) exemption amount; make various typographical by local governments. changes of a nonsubstantive nature; state ballot Amend KRS 66.480, relating to BRs by Sponsor question; submit to voters. investments for local governments, to remove * - denotes primary sponsorship of BRs (Prefiled by the sponsor(s).) the 20% restriction from securities and to add Senate to the permitted investments local governments Adams, Julie Raque BR409 - Senator Julian Carroll may make mutual funds, closed-end, and BR136* (12/8/2017) exchange-traded funds and funds investing in Carroll, Danny individual preferred stock or equities as long as BR105*, 271* AN ACT relating to state employees. no more than 7% of the portfolio is composed Carroll, Julian M. Amend KRS 18A.110 to of individual equities at the time of purchase BR155*, 163*, 409* require the secretary of the Personnel Cabinet and qualifying high-quality corporate bonds Girdler, Rick to promulgate administrative regulations for an if the funds are managed by a professional BR116*, 204*, 213*, 389* internal mobility program; prohibit the program investment advisor; specify that these two Humphries, Stan from differentiating between full-time and part- additional investment types cannot exceed 20% BR433* time employees in filling full-time positions. of the total amount of money invested by the Kerr, Alice Forgy (Prefiled by the sponsor(s).) local government; establish an investment limit BR131* of 5% of the total amount of money invested McGarvey, Morgan BR410 - Representative Attica Scott in any one issuer unless the issuer is the U.S. BR18*, 164*, 286* (12/8/2017) government or an agency thereof, or an entity Meredith, Stephen whose obligations are guaranteed by the federal BR204*, 213*, 224* A RESOLUTION urging drug crime government. Parrett, Dennis diversion programs. (Prefiled by the sponsor(s).) BR247*, 248* Encourage the efforts of the Ridley, Dorsey criminal justice system to divert drug offenders BR433 - Senator Stan Humphries BR187* to treatment. (12/5/2017) Schickel, John (Prefiled by the sponsor(s).) BR38*, 122*, 145*, 215*, 306*, 369*, 420*, AN ACT relating to TVA in-lieu-of-tax 441* BR411 - Representative Attica Scott payments, making an appropriation therefor, Schroder, Wil (12/8/2017) and declaring an emergency. BR146* Amend KRS 96.895 to require Smith, Brandon AN ACT relating to crimes and that a portion of the Tennessee Valley Authority BR113* punishments. (TVA) in-lieu-of-tax revenue deposited in Thomas, Reginald Amend KRS 532.090 to the general fund be distributed to agencies BR49*, 65*, 66* establish gross misdemeanors as a new category designated by counties that have TVA property Turner, Johnny Ray of misdemeanor offense and set penalty range; located in that county or purchase power from BR64*, 214* amend various sections of KRS Chapters TVA, increasing from 0% currently to 50% or a Wise, Max 500, 530, 532, and 533 to conform; amend maximum of $6,000,000; APPROPRIATION; BR216* KRS 532.100 to ensure that custody of gross EMERGENCY. House misdemeanants parallels that of Class D felons; (Prefiled by the sponsor(s).) Adkins, Rocky repeal KRS 431.060; amend various sections to BR114, 115 conform. Bechler, Lynn (Prefiled by the sponsor(s).) BR392*

68 2017 Interim LEGISLATIVE RECORD Benvenuti III, Robert Petrie, Jason Civil Procedure BR339 BR339 Civil Rights Blanton, John Prunty, Melinda Gibbons Claims BR339* BR381* Commendations and Recognitions Brown Jr, George Rand, Rick Commerce BR97*, 170, 347* BR197 Communications Burch, Tom Reed, Brandon Constitution, Ky. BR14*, 15, 106* BR81* Constitution, U.S. Donohue, Jeffery Riggs, Steve Consumer Affairs BR15, 25*, 54* BR432* Contracts DuPlessis, Jim Rowland, Bart Coroners BR385* BR228* Corporations Elliott, Daniel Santoro, Sal Corrections and Correctional Facilities, State BR280* BR39*, 57* Counties Fischer, Joseph M. Scott, Attica Counties, Urban BR217*, 228*, 339 BR15, 97*, 170*, 210*, 410*, 411* County Clerks Fleming , Ken Sims Jr, John Court of Appeals BR127*, 339*, 346* BR339 Court, Supreme Flood, Kelly Sinnette, Kevin Courts BR170 BR114, 115 Courts, Circuit Harris, Chris St. Onge, Diane Courts, Fiscal BR114*, 115* BR2* Crime Victims Hatton, Angie Tipton, James Crimes and Punishments BR114, 115 BR310*, 312* Criminal Procedure Huff, Regina Watkins, Gerald D BR91*, 195*, 285*, 315*, 363*, 435* BR370*, 371*, 372*, 373* Deaths Imes, Kenny Wayne, Jim Disabilities and the Disabled BR40*, 41*, 199* BR15*, 165* Diseases Jenkins, Joni L. Wells, Scott Distilled Spirits BR15 BR37*, 208* Dogs Johnson, Dan Index Headings Drugs and Medicines BR143*, 148*, 263* E Kay, James A Economic Development BR388*, 398* Accountants Education, Elementary and Secondary Keene, Dennis Administrative Regulations and Proceedings Education, Finance BR149*, 197* Advisory Boards, Commissions, and Education, Higher King, Kim Committees Education, Vocational BR79*, 117*, 169*, 387* Aeronautics and Aviation Effective Dates, Delayed Lee, Stan Aged Persons and Aging Effective Dates, Emergency BR278* Agriculture Elections and Voting Marzian, Mary Lou Alcoholic Beverages Emergency Medical Services BR15 Amusements and Recreation Energy Meeks, Reginald Animals, Livestock, and Poultry Ethics BR15, 97, 210*, 325*, 347* Annexation F Miles, Suzanne Appropriations Federal Laws and Regulations BR102* Area Development Districts Fees Miller, Jerry T. Athletics Financial Responsibility BR1*, 93* Attorney General Firearms and Weapons Mills, Robby Attorney, Commonwealth’s Firefighters and Fire Departments BR234*, 235* Auditor of Public Accounts Fish and Wildlife Moffett, Phil B Forests and Forestry BR142*, 160*, 350* Barbers and Cosmetologists G Morgan, C. Wesley Boards and Commissions Gambling BR172*, 173*, 174*, 175*, 205*, 230*, 275*, Boats and Boating General Assembly 305* Bonds, Public Governor Moser, Kimberly Poore Budget and Financial Administration Guardians BR346* C H Nelson, Rick G. Children and Minors Health and Medical Services BR114, 115, 182* Circuit Clerks Highways, Streets, and Bridges Nemes, Jason Cities Historical Affairs BR28*, 67*, 102, 192*, 193*, 230* Civil Actions Honorary Highway Designations THE KENTUCKY GENERAL ASSEMBLY 69 Horses and Horse Racing Retirement and Pensions Hospitals and Nursing Homes Retroactive Legislation Advisory Boards, Commissions, and I S Committees Information Technology Safety Occupational licensing regulations, agency Insurance, Health Sales review of - BR193 J Secretary of State Jails and Jailers Sheriffs Aeronautics and Aviation Judges and Court Commissioners Short Titles and Popular Names Aircraft, property tax, reporting requirements L State Agencies - BR15 Labor and Industry State Employees Drone surveillance or use of armed drones by Legislative Research Commission State Symbols and Emblems certain entities, prohibition - BR2 Licensing Substance Abuse Lieutenant Governor T Aged Persons and Aging Loans and Credit Taxation Palliative care, council and program, Local Government Taxation, Income--Corporate establishment - BR325 Local Mandate Taxation, Income--Individual Lottery Taxation, Inheritance and Estate Agriculture M Taxation, Property Commissioner of, time of election, change to Malt Beverages Taxation, Sales and Use even-numbered years - BR41 Medicaid Taxation, Severance Depredating black vultures, urge the issuance of Memorials Teachers more permits to allow the taking of - BR81 Mental Health Technology Inherited property, agricultural valuation of Military Affairs and Civil Defense Telecommunications - BR15 Minerals and Mining Tobacco Motor Vehicles Trade Practices and Retailing Alcoholic Beverages N Transportation Delivery by wholesaler or distributor, timely Notices Treasurer basis requirement - BR350 Nurses U Local regulatory license fee, prohibition on O Unemployment Compensation - BR350 Obscenity and Pornography United States Retailer, extension of credit after more than 30 Occupations and Professions Universities and Colleges days, allowing - BR350 P V Supplemental transporter’s license, creation of Parental Rights Veterans - BR350 Parks and Shrines W Wholesale sales, tax rate, increasing - BR350 Peace Officers and Law Enforcement Wages and Hours Personnel and Employment Wills and Estates Amusements and Recreation Pharmacists Wines and Wineries Boating, documentation and mooring of - Physicians and Practitioners Withdrawn Legislation BR350 Police, City and County Women Casino Police, State gaming, constitutional amendment for - Poverty BR Index BR197 Probation and Parole gaming, licensing for - BR149 Property Accountants Sports wagering, authorization for - BR155 Property Valuation Administrators Audits for area development districts - BR37; Prosecutors BR208; BR420; BR441 Animals, Livestock, and Poultry Public Assistance Danger of death, dog or cat, removal from Public Buildings and Grounds Administrative Regulations and Proceedings vehicle, civil immunity - BR271 Public Ethics Bicycle helmets, requirement for children under Depredating black vultures, urge the issuance of Public Health 12 - BR363 more permits to allow the taking of - BR81 Public Medical Assistance Board of Education, drug abuse prevention Immunity from civil liability, expand to include Public Officers and Employees instruction, requirement - BR312 removal of domestic animal from a vehicle Public Protection Early voting - BR49 - BR164 Public Records and Reports Education and Workforce Development Public Safety Cabinet, unemployment insurance - BR208 Annexation Public Utilities Medicaid Services, prescription dispensing fees Property owners within a territory, standing, Public Works - BR216 grant - BR350 Purchasing Occupational licensing regulations, agency R review of - BR193 Appropriations Racing Personnel Cabinet, internal mobility program Constitutional amendment, General Assembly, Railroads - BR409 budget special session, compensation Reports Mandated suspended - BR117

70 2017 Interim LEGISLATIVE RECORD County tobacco cessation, establish fund for Federally documented vessels, reporting operator cause of action - BR263 - BR224 requirements for property tax - BR15 Personal jurisdiction over nonresidents, Historic properties endowment trust fund, expansion of - BR192 receipt of certain fines - BR174 Bonds, Public Hybrid and electric vehicles, highway usage fee Local governments, investments, limitations on Civil Procedure - BR57 - BR432 Felony expungement, reckless homicide - Internet filtering deactivation fee - BR263 BR64 Law enforcement professional development and Budget and Financial Administration Immunity from civil liability, expand to include wellness program - BR339 Constitutional amendment, General Assembly, removal of domestic animal from a vehicle Medicaid tobacco-related illness budget special session, compensation - BR164 reimbursement, establish fund for - BR224 suspended - BR117 Immunity, vehicle damage, removal of dog or Rare disease trust fund, create - BR136 Roll call vote, requirement for - BR387 cat in danger of death - BR271 Roll call vote, requirement for - BR387 TVA in-lieu-of-tax payments, transfer of state Internet School speech pathologists or audiologists, general fund portion to local entities - BR433 filtering, failure to provide and update, requiring supplement for - BR435 United States Constitution, Article V consumer cause of action - BR263 Sports wagering tax - BR155 convention on restraining federal government, filtering, request to exempt material, Web site TVA in-lieu-of-tax payments, direction to call for - BR285; BR315 operator cause of action - BR263 economic development activities - BR433 Personal jurisdiction over nonresidents, Underfunded pension trust fund, wholesale Children and Minors expansion of - BR192 alcohol sales, tax increase - BR350 Abortion, criminalizing, fetal homicide - BR143 Civil Rights Area Development Districts Bicycle helmets, requirement for children under Employment discrimination, requirement Cost of audits - BR37 12 - BR363 of criminal history on job applications, Child dependency, neglect, or abuse, prohibition - BR97 Athletics requirement to report - BR14 Freedom of speech at postsecondary education Sports wagering, authorization for - BR155 Internet institutions, policies required to ensure - enabled devices, filtering of child pornography BR148 Attorney General - BR263 Public assistance, substance abuse screening Abortion, fetal homicide, monitoring and enabled devices, illegal to deactivate filters for - BR173 enforcement of laws - BR143 - BR263 Restoration, felony expungement, reckless Officer Shooting Review Board, establishment Kinship care program, permanently establish homicide - BR64 of - BR210 - BR247 Time of election, change to even-numbered Local schools, human sexuality education to be Claims years - BR41 taught - BR106 Immunity from civil liability, expand to include School removal of domestic animal from a vehicle Attorney, Commonwealth’s Bus Driver Day, designatiing May 1 as - - BR164 Abortion, fetal homicide, enforcement of laws BR38 - BR143 Bus Driver Day, designating May 1 as - BR39 Commendations and Recognitions Shooting of an individual by a law enforcement Unlawful storage of a firearm, prohibition of Clark, Kellie, teacher of the Year - BR122 officer or deadly incident, investigation of - BR165 Metzger Eye Care, honoring - BR215 - BR210 Pile, Julia, honoring - BR369 Circuit Clerks School Auditor of Public Accounts Ballots, retention elections, appellate judges Bus Driver Day, designatiing May 1 as - Audits for area development districts, costs - BR67 BR38 - BR37 Felony expungement, reckless homicide - Bus Driver Day, designating May 1 as - BR39 Time of election, change to even-numbered BR64 years - BR41 Commerce Cities Alcoholic Barbers and Cosmetologists Investments, limitations on - BR432 beverages, delivery and extension of credit to Estheticians, education required for - BR234 Minimum wage, authority to establish - BR65 retailers - BR350 beverages, supplemental transporter’s license, Boards and Commissions Civil Actions creation of - BR350 Executive branch, public servants, business Immunity from civil liability, expand to include beverages, wholesaler exclusivity, prohibition transaction prohibited with - BR388 removal of domestic animal from a vehicle on - BR350 Officer Shooting Review Board, establishment - BR164 Consumer of - BR210 Immunity, vehicle damage, removal of dog or reporting agencies, data encryption, cat in danger of death - BR271 requirements for - BR286 Boats and Boating Internet reporting agencies, security breach, Documentation and mooring of vessels, filtering, failure to provide and update, requirements for - BR286 Marina’s possessory lien, title holding - consumer cause of action - BR263 Credit BR350 filtering, request to exempt material, Web site freeze expiration, removal of - BR286 THE KENTUCKY GENERAL ASSEMBLY 71 freezes, removal of seven-year expiration - freeze, method of requesting - BR286 Voting hours, extension of - BR49 BR228 freezes, method of requesting - BR228 Information holders, electronic or substitute freezes, removal of seven-year expiration - Court of Appeals notice, requirements for - BR286 BR228 Judges, Internet appointed by Governor - BR28 Communications filtering, deactivation process and fees, per retention elections following appointment to Cellular phone numbers, unauthorized release device - BR263 office - BR67 for commercial purposes, prohibition of - filtering, mandatory on devices sold - BR263 term limits - BR28 BR370 Internet service providers, personally Contracts Court, Supreme identifiable information, restriction on Alcoholic Justices, availability - BR18 beverages, delivery and extension of credit to appointed by Governor - BR28 Obscenity, child pornography, revenge retailers - BR350 retention elections following appointment to pornography, prostitution, Internet filtering beverages, wholesaler exclusivity, prohibition office - BR67 requirements - BR263 on - BR350 term limits - BR28 Executive branch, public servants, business Constitution, Ky. transaction prohibited with - BR388 Courts Administrative regulations, General Assembly, Public, Drug courts, treatment for drug-related final approval or disapproval of - BR40 no-bid, certain state officers, prohibition on offenses, encouraging diversion to - BR410 Amendment, appellate judges, appointed by awarding to - BR388 Personal jurisdiction over nonresidents, Governor - BR28 tax collection, bonus payment structure, expansion of - BR192 Amendments, contingent on ratification, effect limitations on - BR388 Possession of controlled substance, penalty of bill - BR67 reduction, mandatory treatment and Casino gaming, amendment permitting - Coroners community service - BR373 BR197 Postmortem examination results, requirement Veterans treatment courts, administration of Convention, proposal to call for purpose of for release - BR392 - BR66 revising or amending Kentucky Constitution - BR142 Corporations Courts, Circuit Drone surveillance or use of armed drones by Manufacturers, sellers, lessors, distributors of Felony expungement, reckless homicide - certain entities, prohibition - BR2 Internet-enabled devices, requirements for BR64 Election of statewide constitutional officers, - BR263 Internet change to even-numbered years - BR41 filtering, failure to provide and update, General Corrections and Correctional Facilities, consumer cause of action - BR263 Assembly, budget special session, State filtering, request to exempt material, Web site compensation for services, suspension of Diversion to treatment for drug-related operator cause of action - BR263 - BR117 offenses, encouraging - BR410 Sex crimes against a victim who is a person Assembly, terms of members, limiting - State prisoner, gross misdemeanant, payment with an intellectual disability, increase in BR385 for - BR411 penalty - BR105 Property tax, homestead exemption, disabled veterans, proposed amendment - BR398 Counties Courts, Fiscal Health departments, tobacco cessation, grants Inmates, state prisoners, payment for - BR411 Constitution, U.S. for - BR224 TVA in-lieu-of-tax payments, requirement to Amendments to, constitutional convention Inmates, state prisoners, payment for - BR411 direct to agency - BR433 restraining federal government, call for - Investments, limitations on - BR432 BR285; BR315 Minimum wage, authority to establish - BR65 Crime Victims TVA in-lieu-of-tax payments, direction to Compensation fund, Internet filtering Consumer Affairs economic development activities - BR433 deactivation fee into - BR263 Caller identification information, prohibiting Human trafficking, victims fund, Internet misleading use of - BR79 Counties, Urban filtering deactivation fee into - BR263 Cellular phone numbers, unauthorized release Investments, limitations on - BR432 Sex for commercial purposes, prohibition of - crimes against a victim who is a person with BR370 County Clerks an intellectual disability, increase in penalty Consumer Disabled parking placards, requirements for - BR105 reporting agencies, data encryption, - BR93 offender registrants, restriction of - BR217 requirements for - BR286 Documented vessels, registration with county reporting agencies, free credit freeze by, clerk, requiring - BR350 Crimes and Punishments providing for - BR286 Early voting, omnibus bill - BR49 Abortion, criminalizing, fetal homicide - reporting agencies, security breach, Election of statewide constitutional officers, BR143 requirements for - BR286 change to even-numbered years - BR41 Child dependency, neglect, or abuse, Credit Hybrid and electric vehicles, highway usage fee requirement to report - BR14 freeze expiration, removal of - BR286 - BR57 Concealing identity during protest, prohibition

72 2017 Interim LEGISLATIVE RECORD - BR305 offender registrants, restriction of - BR217 brain injury, use by veterans - BR278 Criminal Trespass, use of purple paint marks to provide Managed care networks, credentialing, network attempt to commit murder of peace officer or notice of - BR160 adequacy, appeals - BR127 firefighter, classification as violent offense Unlawful storage of a firearm, prohibition of Outpatient pharmacy benefits, direct - BR372 - BR165 administration by Department for Medicaid possession of a forged instrument in Veterans treatment court, alternative sentencing Services - BR216 the second degree, classify as gross - BR66 Possession of controlled substance, Class A misdemeanor - BR411 Warrantless drone surveillance, prohibition misdemeanor, mandatory drug treatment - Deadly weapons, concealed carry without - BR2 BR373 license - BR172 Public assistance, substance abuse screening Felony expungement, reckless homicide - Deaths - BR173 BR64 Estate tax, calculation of - BR15 Flagrant non-support, create gross misdemeanor Postmortem examination results, requirement Economic Development offense level - BR411 for release - BR392 Tax credits, sunset of - BR15 Forgery in the second degree, classify as gross TVA in-lieu-of-tax payments, direction to misdemeanor - BR411 Disabilities and the Disabled economic development activities - BR433 Gross misdemeanor, creation of - BR411 Disabled parking placards, requirements for Internet device without filter, sale of - BR263 - BR93 Education, Elementary and Secondary Obstructing Managed care networks, credentialing, network Clark, Kellie, teacher of the Year - BR122 an emergency responder - BR2 adequacy, appeals - BR127 Day of prayer for students, designation of - traffic during a protest, prohibited - BR305 Sex crimes against a victim who is a person BR195 Persistent offenders, life without parole - with an intellectual disability, increase in Drug abuse prevention, require instruction on BR371 penalty - BR105 - BR312 Possession of controlled substance, penalty Sign language interpretation, House and Senate Financial reduction, mandatory treatment and chambers, Legislative Research Commission literacy program, requiring high school community service - BR373 to provide - BR113 inclusion of - BR248; BR310 Public Traumatic brain injury, use of hyperbaric literacy, requirement for high school postsecondary students, criminal background oxygen treatment by veterans - BR278 graduation - BR248; BR310 checks on - BR170 Veterans, property tax, homestead exemption, Local school boards, human sexuality servants and other persons, orders to stand proposed constitutional amendment - BR398 education, plan for instruction on - BR106 down to peace officers prohibited - BR305 School Sex Diseases Bus Driver Day, designatiing May 1 as - crimes against a victim who is a person with Managed care networks, credentialing, network BR38 an intellectual disability, increase in penalty adequacy, appeals - BR127 Bus Driver Day, designating May 1 as - BR39 - BR105 Rare disease advisory council, establish - Speech pathologists or audiologists, requiring offender registrants, restriction of - BR217 BR136 supplement for - BR435 Treatment for drug-related offenses, Traumatic brain injury, use of hyperbaric Suicide prevention training, requirement for encouraging diversion to - BR410 oxygen treatment by veterans - BR278 - BR91 Trespass, use of purple paint marks to provide notice of - BR160 Distilled Spirits Education, Finance Unlawful storage of a firearm, prohibition of Alcoholic beverages, delivery and extension of Speech pathologists or audiologists, requiring - BR165 credit to retailers - BR350 supplement for - BR435 Veterans treatment court, alternative sentencing Supplemental transporter’s license, creation of - BR66 - BR350 Education, Higher Warrantless drone surveillance, prohibition Wholesale sales, tax rate, increasing - BR350 Freedom of speech, policies required to ensure - BR2 Wholesaler exclusivity, prohibition on - BR350 - BR148 Student criminal background checks, Criminal Procedure Dogs restrictions on - BR170 Felony expungement, reckless homicide - Danger of death, removal from vehicle, civil BR64 immunity - BR271 Education, Vocational Gross Estheticians, education required for - BR234 misdemeanor, create and define - BR411 Drugs and Medicines misdemeanor, creation of - BR411 Cannabidiol, permit recommendation - BR163 Effective Dates, Delayed Officer Shooting Review Board, establishment Controlled substances disposal compositions, Constitutional amendment, passage of - BR149 of - BR210 sale or distribution of, requirement for - Documented vessels, registration with county Persistent offenders, life without parole - BR131 clerk, display of sticker, January 1, 2019 - BR371 Crime, treatment for drug-related offenses, BR350 Sex encouraging diversion to - BR410 Executive Branch Ethics Commission, crimes against a victim who is a person with Drug abuse prevention, require school reconstitution of, January 1, 2019 - BR388 an intellectual disability, increase in penalty instruction on - BR312 Hybrid and electric vehicles, highway usage - BR105 Hyperbaric oxygen treatment for traumatic fee, January 1, 2019 - BR57 THE KENTUCKY GENERAL ASSEMBLY 73 Natural resources severance tax, August 1, 2018 availability - BR18 license - BR172 - BR102 Public Service Commission, reconsideration of Drone surveillance or use of armed drones by Obscenity, pornography, prostitution, Internet orders, multistate transactions - BR114 certain entities, prohibition - BR2 filtering requirements, July 1, 2019 - BR263 Unlawful storage of a firearm, prohibition of Outpatient pharmacy benefits, administration by Ethics - BR165 Department for Medicaid Services, December Executive 31, 2018 - BR216 branch, boards and commissions, appointees Firefighters and Fire Departments Retention elections, appellate judges - BR67 to, financial disclosure required from - Criminal attempt to commit murder of peace Sports wagering, contingent upon repeal or BR388 officer or firefighter, classification as violent voiding of federal Sports Protection Act - branch employees, financial disclosure offense - BR372 BR155 statements, additional - BR388 Branch Ethics Commission, employees of, Fish and Wildlife Effective Dates, Emergency independence of - BR388 Depredating black vultures, permits to allow Abortion, criminalizing, fetal homicide - Branch Ethics Commission, ethics tip line, the taking of, issuance increase urged - BR81 BR143 creation of - BR388 Alcohol, wholesale sales tax, increasing rate, Branch Ethics Commission, members of, Forests and Forestry June 1, 2018 - BR350 appointment and removal of - BR388 Trespass, use of purple paint marks to provide Audits for area development districts, costs, Branch Ethics Commission omnibus changes notice of - BR160 July 1, 2018 - BR37 to - BR388 Consumer reporting agencies, cybersecurity, branch, tax returns financial information, Gambling requirements for - BR286 failure to disclose, penalties for - BR388 Casino Credit employees, financial disclosure, retirement gaming, constitutional amendment for - freeze expiration, removal of - BR286 systems, investments of, fiduciary role in BR197 freezes, removal of seven-year expiration - - BR388 gaming, licensing for - BR149 BR228 Executive, former public servant, lobbying by, Sports wagering, authorization for - BR155 Law enforcement professional development and limitation on - BR388 wellness program - BR339 General Assembly, House of Representatives, General Assembly Legislators, election to discontinue or not Hoover, Representative Jeff, expulsion - Administrative regulations, final approval or participate in retirement - BR235 BR205 disapproval of, constitutional amendment TVA in-lieu-of-tax payments, direction to Legislative ethics telephone tip line, establish - BR40 economic development activities - BR433 - BR346 Chambers, sign language interpretation in, Public servants, state contractors, business Legislative Research Commission to provide Elections and Voting transactions with, prohibition of - BR388 - BR113 Appellate judges, after appointed term, Committee on Kentucky Monument Protection, retention elections - BR28 Federal Laws and Regulations appointments to - BR174 Ballots, retention elections, appellate judges Government Constitution of Kentucky, proposal to call - BR67 Pension Offset and Windfall Elimination convention for purpose of revising or Casino gaming, local option elections for - Provisions, Social Security - BR381 amending - BR142 BR149 Pension Offset, Social Security Act - BR199 Constitutional amendment, budget special Constitution of Kentucky, proposal to call Migratory Bird Treaty Act, depredating black session, compensation suspended - BR117 convention for purpose of revising or vultures, issuance increase urged - BR81 Ethical misconduct, prohibited behavior, amending - BR142 complaint procedures - BR346 Constitutional Fees House of Representatives, Hoover, amendment, election of statewide Casino gaming, licensing fees for - BR149 Representative Jeff, expulsion - BR205 constitutional officers - BR41 Hybrid and electric vehicles, highway usage fee Kentucky Retirment Systems; hybrid cash amendment, General Assembly, approval or - BR57 balance plan, benefit election by legislators disapproval of administrative regulations Internet filtering, for deactivation of - BR263 - BR230 - BR40 Local regulatory license fee, alcoholic Legislative ethics telephone tip line, establish amendment, General Assembly, budget special beverages, prohibition on - BR350 - BR346 session, compensation suspended - BR117 Sports wagering, licensing fees for - BR155 Legislators’ Retirement Plan, hybrid cash Early voting, omnibus bill - BR49 Supplemental transporter’s license, $100 fee balance plan, benefit election - BR230 General Assembly, terms of members, limiting - BR350 Members of, publicly owned communication - BR385 devices, communication on, public record Voting hours, extension of - BR49 Financial Responsibility status of - BR388 Credit freezes, removal of seven-year Retirement, Emergency Medical Services expiration - BR228 close the Legislators’ Retirement Plan - Obstructing an emergency responder - BR2 Local governments, investments, limitations on BR213; BR280 - BR432 election to discontinue or not participate Energy in LRP or KERS for legislative service - Internet service providers, personally Firearms and Weapons BR235 identifiable information, restriction on Deadly weapons, concealed carry without election to discontinue or not participate in

74 2017 Interim LEGISLATIVE RECORD LRP or KERS for service to GA - BR204 House and Senate chambers, sign language Roll call vote for appropriation or revenue Honorary Highway Designations interpretation in, provision for - BR113 measure, requirement for - BR387 Mullins, Julius, honorary bridge designation, Legislative ethics telephone tip line, establish Terms of members, limit - BR385 Floyd County - BR214 - BR346

Governor Horses and Horse Racing Licensing Appellate judges, appointment of - BR28 Limited casino gaming, tracks authorized for Alcoholic beverages, supplemental transporter’s Committee on Kentucky Monument Protection, - BR149 license, creation of - BR350 appointments to - BR174 Sports wagering, racing commission oversight Casino gaming, licensing for - BR149 Day of prayer for students, proclamation of of - BR155 Deadly weapons, concealed carry without - BR195 license - BR172 Election, change time to even-numbered years Hospitals and Nursing Homes Documented vessels, registration sticker, - BR41 Managed care networks, credentialing, network display of - BR350 Executive Branch Ethics Commission, adequacy, appeals - BR127 Estheticians, education required for - BR234 members of, appointment of - BR388 Rare disease advisory council, establish - Local regulatory license fee, alcoholic Felony expungement, reckless homicide, partial BR136 beverages, prohibition on - BR350 pardons - BR64 Occupational licensing regulations, agency Palliative care, council and program, Information Technology review of - BR193 establishment - BR325 Cellular phone numbers, unauthorized release Pawnbrokers, requirements for - BR169 Tax collection contract, bonus payment for commercial purposes, prohibition of - Sports wagering, licensing for - BR155 structure, prohibition of - BR388 BR370 Internet service providers, personally Lieutenant Governor Guardians identifiable information, restriction on Election, change time to even-numbered years Kinship care program, permanently establish availability - BR18 - BR41 - BR247 Obscenity, child pornography, revenge pornography, prostitution, Internet filtering Loans and Credit Health and Medical Services requirements - BR263 Alcoholic beverages, extension of credit to Abortion, criminalizing, fetal homicide - retailers - BR350 BR143 Insurance, Health Credit Cannabidiol, permit recommendation - BR163 Managed care networks, credentialing, network freezes, method of requesting - BR228 County tobacco cessation, establish fund for adequacy, appeals - BR127 freezes, removal of seven-year expiration - - BR224 BR228 Eligible veterans, hyperbaric oxygen treatment Jails and Jailers Pawnbrokers, information required for loans - BR278 Diversion to treatment for drug-related - BR169 Local school disricts, human sexuality offenses, encouraging - BR410 education - BR106 Gross misdemeanants, define detention Local Government Managed care networks, credentialing, network procedures for - BR411 Annexation, property owners within a territory, adequacy, appeals - BR127 Inmates, state prisoners, payment for - BR411 standing, grant - BR350 Medicaid tobacco-related illness County tobacco cessation, establish fund for reimbursement, establish fund for - BR224 Judges and Court Commissioners - BR224 Outpatient pharmacy benefits, direct Appellate Investments, limitations on - BR432 administration by Department for Medicaid judges, appointed by Governor - BR28 Local Services - BR216 judges, term limits - BR28 regulatory license fee, alcoholic beverages, Palliative care, council and program, Retention elections following appointment, prohibition on - BR350 establishment - BR325 appellate judges - BR67 Update of Census Addresses program, urging Postmortem examination results, requirement Congress to encourage participation - for release - BR392 Labor and Industry BR347 Public assistance, substance abuse screening Amusement and recreational employees, Minimum wage, authority to establish - BR65 - BR173 exempt from wages and hours consistent with TVA in-lieu-of-tax payments, direction to Rare disease advisory council, establish - federal law - BR420 economic development activities - BR433 BR136 Employment discrimination, requirement of criminal history on job applications, Local Mandate Highways, Streets, and Bridges prohibition - BR97 Gross misdemeanants, define detention Bicycles overtaken on roadway, distance to State minimum wage, increase - BR65 procedures for - BR411 maintain - BR1 Unemployment insurance for seasonal/on recall TVA in-lieu-of-tax payments, direction to Hybrid and electric vehicles, highway usage fee employees - BR208 economic development activities - BR433 - BR57 Legislative Research Commission Lottery Historical Affairs Agencies, reporting requirements for - BR193 Casino gaming, oversight of - BR149 Committee on Kentucky Monument Protection, Designation of appropriation or revenue creation of - BR174 measure, requirement for - BR387 THE KENTUCKY GENERAL ASSEMBLY 75 personal ID cards, notification of expiration exempt from wages and hours consistent with Malt Beverages - BR187 federal law - BR420 Alcoholic beverages, delivery and extension of Trespass, use of purple paint marks to provide Employment discrimination, requirement credit to retailers - BR350 notice of - BR160 of criminal history on job applications, Supplemental transporter’s license, creation of prohibition - BR97 - BR350 Nurses State minimum wage, increase - BR65 Wholesale sales, tax rate, increasing - BR350 Hyperbaric oxygen treatment for traumatic Unemployment insurance for seasonal/on recall Wholesaler exclusivity, prohibition on - BR350 brain injury, use by veterans - BR278 employees - BR208 Medicaid Obscenity and Pornography Pharmacists Managed care networks, credentialing, network Internet enabled devices, mandatory on, filters Controlled substances disposal compositions, adequacy, appeals - BR127 for - BR263 sale or distribution of, requirement for - Outpatient pharmacy benefits, direct BR131 administration by Department for Medicaid Occupations and Professions Hyperbaric oxygen treatment for traumatic Services - BR216 Casino occupations, licensing for - BR149 brain injury, use by veterans - BR278 Public assistance, substance abuse screening Estheticians, education required for - BR234 Managed care networks, credentialing, network - BR173 Occupational licensing regulations, agency adequacy, appeals - BR127 Tobacco-related illness reimbursement, review of - BR193 Outpatient pharmacy benefits, direct establish fund for - BR224 Pawnbrokers, requirements for - BR169 administration by Department for Medicaid School Services - BR216 Memorials Bus Driver Day, designatiing May 1 as - Bunning, James Paul David “Jim,” BR38 Physicians and Practitioners memorializing - BR146 Bus Driver Day, designating May 1 as - BR39 Abortion, criminalizing, fetal homicide - Cartmell, Vivian Stewart, memorializing - speech pathologists or audiologists, requiring BR143 BR145 supplement for - BR435 Cannabidiol, permit recommendation - BR163 Hays, Michael Todd, memorializing - BR306 Unemployment insurance for seasonal/on recall Controlled substances disposal compositions, Phelps, Lewis L. “Tee,” memorializing - employees - BR208 sale or distribution of, requirement for - BR389 BR131 Roeding, Richard L. “Dick,” memorializing Parental Rights Hyperbaric oxygen treatment for traumatic - BR441 Kinship care program, permanently establish brain injury, use by veterans - BR278 Todd, Frey, memorializing - BR116 - BR247 Managed care networks, credentialing, network adequacy, appeals - BR127 Mental Health Parks and Shrines Outpatient pharmacy benefits, direct Law enforcement professional development and Committee on Kentucky Monument Protection, administration by Department for Medicaid wellness program, creation - BR339 creation of - BR174 Services - BR216 Managed care networks, credentialing, network Palliative care, council and program, adequacy, appeals - BR127 Peace Officers and Law Enforcement establishment - BR325 Veterans treatment courts - BR66 Child dependency, neglect, or abuse, Rare disease advisory council, establish - requirement to report - BR14 BR136 Military Affairs and Civil Defense Crime, treatment for drug-related offenses, Drone surveillance by certain entities, military encouraging diversion to - BR410 Police, City and County training exemption - BR2 Criminal attempt to commit murder of peace Shooting of an individual by a law enforcement officer or firefighter, classification as violent officer or deadly incident, investigation of Minerals and Mining offense - BR372 - BR210 Natural resources severance tax, definition of Disabled parking placards, requirements for Warrantless drone surveillance or use of armed “processing” - BR102 - BR93 drones by certain entities, prohibition - BR2 Law enforcement professional development and Motor Vehicles wellness program, creation - BR339 Police, State Bicycles overtaken on roadway, distance to Pawnbrokers, information available to law Shooting of an individual by a law enforcement maintain - BR1 enforcement - BR169 officer or deadly incident, investigation of Damage, civil immunity, removal of dog or cat Public servants and other persons, orders to - BR210 - BR271 stand down to police officers prohibited - Warrantless drone surveillance or use of armed Disabled parking placards, requirements for BR305 drones by certain entities, prohibition - BR2 - BR93 Shooting of an individual by a law enforcement Hybrid and electric vehicles, highway usage fee officer or deadly incident, investigation of Poverty - BR57 - BR210 Public assistance, substance abuse screening Operator’s licenses and instruction permits, Warrantless drone surveillance or use of armed - BR173 notification of expiration - BR187 drones by certain entities, prohibition - BR2 Probation and Parole Notices Personnel and Employment Criminal attempt to commit murder of peace Operator’s licenses, instruction permits, Amusement and recreational employees, officer or firefighter, classification as violent

76 2017 Interim LEGISLATIVE RECORD offense - BR372 Outpatient pharmacy benefits, direct interruption of services - BR174 Persistent offenders, life without parole - administration by Department for Medicaid Public Service Commission, multistate BR371 Services - BR216 transactions - BR114 Veterans treatment court, alternative sentencing Public assistance, substance abuse screening - BR66 - BR173 Public Works Kentucky Memorial Preservation Act of 2018, Property Public Officers and Employees creation of - BR174 Kentucky Memorial Preservation Act of 2018, Constitutional officers, Executive Branch Ethics creation of - BR174 Commission, appointments to - BR388 Purchasing Trespass, use of purple paint marks to provide Election of statewide constitutional officers, Public no-bid, certain state officers, prohibition notice of - BR160 change time to even-numbered years - BR41 on awarding to - BR388 General Assembly, House of Representatives, Property Valuation Administrators Hoover, Representative Jeff, expulsion - Racing Documented vessels, registration with county BR205 Sports wagering, racing commission oversight clerk - BR350 Legislators, of - BR155 election to discontinue or not participate in Prosecutors LRP or KERS for service - BR235 Railroads Diversion for drug-related offenses, election to discontinue or not participate in Civil penalties, violation of two-person train encouraging - BR410 LRP or KERS for service to GA - BR204 crew requirement - BR54 Felony expungement, reckless homicide - Legislators’ Retirement Plan, close to future Train crews, two-person requirement - BR54 BR64 members and future service accruals - Gross misdemeanor, creation of - BR411 BR213; BR280 Reports Mandated Public servants and other persons, orders to Legislative ethics telephone tip line, complaints Public Assistance stand down to police officers prohibited - recieved - BR346 Public assistance, substance abuse screening BR305 Occupational licensing regulations, agency - BR173 Retirement, adjustment of line-of-duty death review of - BR193 benefits - BR25 Rare disease advisory council, establish - Public Buildings and Grounds State internal mobility program, full-time BR136 Kentucky Memorial Preservation Act of 2018, positions open to full and part-time employees creation of - BR174 - BR409 Retirement and Pensions Unclassified service, relatives of legislators or Casino Public Ethics cabinet secretaries, hiring of, prohibition on gaming, allocation in support of - BR197 Executive Branch Ethics Commission, changes - BR388 gaming, revenue generated by - BR149 to - BR388 Government Public Protection Pension Offset and Windfall Elimination Public Health Obscenity, child pornography, revenge Provisions, Social Security - BR381 Abortion, criminalizing, fetal homicide - pornography, prostitution, Internet filtering Pension Offset, Social Security Act - BR199 BR143 requirements - BR263 Kentucky Controlled substances disposal compositions, Retirement Systems, election to discontinue or sale or distribution of, requirement for - Public Records and Reports not participate for General Assembly service BR131 Shooting of an individual by a law enforcement - BR235 County tobacco cessation, establish fund for officer or deadly incident, investigation of Retirement Systems, election to discontinue or - BR224 - BR210 not participate for service to GA - BR204 Drug abuse prevention, require school Retirement Systems, hybrid cash balance plan, instruction on - BR312 Public Safety benefit election for legislators - BR230 Hyperbaric oxygen treatment for traumatic Crime, treatment for drug-related offenses, Legislators’ brain injury, use by veterans - BR278 encouraging diversion to - BR410 Retirement Plan, close to future members and Managed care networks, credentialing, network Shooting of an individual by a law enforcement future service accruals - BR213; BR280 adequacy, appeals - BR127 officer or deadly incident, investigation of Retirement Plan, election to discontinue or not Medicaid tobacco-related illness - BR210 participate for service - BR235 reimbursement, establish fund for - BR224 Unlawful storage of a firearm, prohibition of Retirement Plan, election to discontinue or not Rare disease advisory council, establish - - BR165 participate for service to GA - BR204 BR136 Warrantless drone surveillance or use of armed Retirement Plan, hybrid cash balance plan, drones by certain entities, prohibition - BR2 benefit election - BR230 Public Medical Assistance Line-of-duty County tobacco cessation, establish fund for Public Utilities death benefits, adjustment of - BR25 - BR224 Electric death benefits, surviving spouse as default Managed care networks, credentialing, network rates, reexamination of rate proceedings - beneficiary - BR25 adequacy, appeals - BR127 BR115 Sports wagering, revenue generated by - Medicaid tobacco-related illness utilities, limit basic service charge - BR182 BR155 reimbursement, establish fund for - BR224 Historical monuments, preservation of without Underfunded pension trust fund, creation and THE KENTUCKY GENERAL ASSEMBLY 77 funding of - BR350 report - BR14 Comprehensive tax reform - BR15 Department of Education, financial literacy Film industry credit, nonrefundable tax credit Retroactive Legislation standards, requiring development of - BR248; - BR15 Felony expungement, reckless homicide - BR310 Motor fuels tax, minimum rate, changing of BR64 Executive - BR15 Public Service Commission, reconsideration of Branch Ethics Commission, employees of, Natural resources severance tax, definition of orders, retroactive to July 1, 2013 - BR114 changes to - BR388 “processing” - BR102 Branch Ethics Commission, reconstitution of Property tax, homestead exemption, disabled Safety - BR388 veterans, proposed constitutional amendment Bicycles overtaken on roadway, distance to Health and Family Services, kinship care - BR398 maintain - BR1 program, permanently establish - BR247 Roll call vote, requirement for - BR387 Dog or cat in vehicle, removal, civil immunity Kentucky Retirement Systems, adjustment of Sports wagering, excise tax on - BR155 - BR271 line-of-duty death benefits - BR25 Tobacco Transportation Cabinet, bicycle helmets, Local Update of Census Addresses program, products, impose healthcare reimbursement requirement for children under 12 - BR363 urging Congress to encourage participation assessment on - BR224 - BR347 taxes, rates, increase of - BR15 Sales Palliative care, council and program, TVA in-lieu-of-tax payments, direction to Alcoholic establishment - BR325 economic development activities - BR433 beverages, delivery and extension of credit to Personally identifiable information security law, retailers - BR350 technical corrections to - BR286 Taxation, Income--Corporate beverages, wholesaler exclusivity, prohibition Personnel Cabinet, internal mobility program Domestic production activities deduction, on - BR350 - BR409 disallowing - BR15 Public Tax haven, taxation of any transfer of income to Secretary of State Service Commission, reconsideration of - BR15 Appellate judges, retention elections, orders, multistate transactions - BR114 Unitary method, use for determining taxable certification of - BR67 Service Commission, reexamination of - income - BR15 Application for an Article V convention, BR115 transmission of certified copies - BR285 Revenue Department, Internet filter Taxation, Income--Individual Constitution of Kentucky, proposal to call deactivation fee, collection of - BR263 Earned income credit, creating - BR15 convention for purpose of revising or Itemized deductions, establishing maximum amending - BR142 State Employees amount of - BR15 Constitutional amendment, General Assembly, Internal mobility program, full-time positions Rates imposed, changes to - BR15 budget special session, compensation open to full and part-time employees - BR409 Surtax on retirement benefits, members of the suspended - BR117 Unclassified service, relatives of legislators or Legislators’ Retirement Plan - BR230 Copies of application for an Article V, to be cabinet secretaries, hiring of, prohibition on sent to certain persons - BR315 - BR388 Taxation, Inheritance and Estate Early voting, omnibus bill - BR49 Estate tax, seperation from the federal tax - Election, change time to even-numbered years State Symbols and Emblems BR15 - BR41 Kentucky Memorial Preservation Act of 2018, Voting hours, extension of - BR49 creation of - BR174 Taxation, Property Alcohol, wholesale sales tax, compensation, Sheriffs Substance Abuse repealing - BR350 Shooting of an individual by a law enforcement Possession of controlled substance, Class A Disabled veterans, homestead exemption, officer or deadly incident, investigation of misdemeanor, mandatory drug treatment - proposed constitutional amendment - BR398 - BR210 BR373 Documented vessels, registration sticker, Public assistance, substance abuse screening displaying - BR350 Short Titles and Popular Names - BR173 Real Ban the Box-The Criminal Record Employment Veterans treatment courts - BR66 property, fixed tax rate, establishing - BR15 Discrimination Act - BR97 property tax rate, recall provision, removal of Citizens’ Freedom from Unwarranted Taxation - BR15 Surveillance Act - BR2 Alcohol wholesale sales tax, compensation, TVA in-lieu-of-tax payments, direction to Colonel Ron Ray Veterans Traumatic Brain repealing - BR350 economic development activities - BR433 Injury Treatment Act - BR278 Alcohol, wholesale sales tax, increasing - Courtney’s Law, postmortem examination BR350 Taxation, Sales and Use results, requirements for release - BR392 Casinos, Services, imposition of tax on selected - BR15 Kentucky Memorial Preservation Act of 2018 admissions tax on - BR149 - BR174 gaming tax on - BR149 Taxation, Severance Cigarettes, impose healthcare reimbursement Natural State Agencies assessment on - BR224 resources severance tax, credit for taxes paid Cabinet for Health and Family Services, child Collection, personal service contracts for, bonus to another state - BR102 dependency, neglect, or abuse, requirement to payment structure of, prohibition of - BR388 resources severance tax, definition of

78 2017 Interim LEGISLATIVE RECORD “processing” - BR102 BR38 Supplemental transporter’s license, creation of Bus Driver Day, designating May 1 as - BR39 - BR350 Teachers Train crews, two-person requirement, penalties Wholesale sales, tax rate, increasing - BR350 Day of prayer for students, designation of - for violation - BR54 Wholesaler exclusivity, prohibition on - BR350 BR195 Transportation Cabinet, operator’s licenses and Government permits, ID cards, notification of expiration Withdrawn Legislation Pension Offset and Windfall Elimination - BR187 WITHDRAWN - BR175; BR275 Provisions, Social Security - BR381 Pension Offset, Social Security Act - BR199 Treasurer Women Suicide prevention training, requirement for Crime victims compensation fund, deactivation Abortion, criminalizing, fetal homicide - - BR91 fees - BR263 BR143 Election, change time to even-numbered years Technology - BR41 Consumer reporting agencies, data encryption, Historic properties endowment trust fund, requirements for - BR286 receipt of certain fines - BR174 Obscenity, child pornography, revenge pornography, prostitution, Internet filtering Unemployment Compensation requirements - BR263 Seasonal/on recall employees, impact on the waiting week and reemployment requirements Telecommunications - BR208 Caller identification information, prohibiting misleading use of - BR79 United States Cellular phone numbers, unauthorized release Abortion, federal actions challenging for commercial purposes, prohibition of - criminalization of, nonintervention in - BR370 BR143 Internet service providers, personally Amendments to, constitutional convention identifiable information, restriction on restraining federal government, call for - availability - BR18 BR315 Obscenity, child pornography, revenge Constitutional convention restraining federal pornography, prostitution, Internet filtering government, call for - BR285 requirements - BR263 Local Update of Census Addresses program, urging Congress to encourage participation Tobacco - BR347 Impose healthcare reimbursement assessment - BR224 Universities and Colleges Freedom of speech, policies required to ensure Trade Practices and Retailing - BR148 Alcoholic Student criminal background checks, beverages, delivery and extension of credit to restrictions on - BR170 retailers - BR350 beverages, wholesaler exclusivity, prohibition Veterans on - BR350 Pretrial services for - BR66 Obscenity, child pornography, revenge Property tax, homestead exemption, disabled pornography, prostitution, Internet filtering veterans, proposed constitutional amendment requirements - BR263 - BR398 Traumatic brain injury, use of hyperbaric Transportation oxygen treatment - BR278 Bicycle helmets, requirement for children under 12 - BR363 Wages and Hours Bicycles overtaken on roadway, distance to Amusement and recreational employees, maintain - BR1 exempt from wages and hours consistent with Disabled parking placards, requirements for federal law - BR420 - BR93 State minimum wage, increase - BR65 Historical monuments, preservation of with no interference with public system - BR174 Wills and Estates Hybrid and electric vehicles, highway usage fee Estate tax, seperation from the federal tax - - BR57 BR15 Mullins, Julius, honorary bridge designation, Floyd County - BR214 Wines and Wineries School Alcoholic beverages, delivery and extension of Bus Driver Day, designatiing May 1 as - credit to retailers - BR350 THE KENTUCKY GENERAL ASSEMBLY 79 2017 Interim LEGISLATIVE David A. Byerman, Robert Stivers David W. Osborne Director SENATE PRESIDENT SPEAKER PRO TEM RECORD Legislative Research Jimmy Higdon Jonathan Shell Commission PRESIDENT PRO TEM DESIGNATE MAJORITY FLOOR LEADER Published monthly by Damon Thayer Rocky Adkins the Legislative Research Robert Jenkins MAJORITY FLOOR LEADER MINORITY FLOOR LEADER Commission, the Interim Deputy Director for Committee and Staff Ray S. Jones II David R. Meade RECORD is designed to in- MINORITY FLOOR LEADER MAJORITY CAUCUS CHAIRMAN form the citizens of Kentucky Coordination Dan “Malano” Seum of the between-sessions work Dennis Keene Rob Weber MAJORITY CAUCUS CHAIRMAN MINORITY CAUCUS CHAIRMAN of the General Assembly. Public Information Dorsey Ridley Kevin Bratcher Officer Paper subscriptions are MINORITY CAUCUS CHAIRMAN MAJORITY WHIP free upon request. Contact the Joe Cox Mike Wilson Wilson Stone LRC Public Information Office, Publications and Printing MAJORITY WHIP MINORITY WHIP Capitol Annex, Frankfort KY, Officer Dennis Parrett 40601 at 502-564-8100, ext. Rebecca Mullins MINORITY WHIP 307 to subscribe. Hanchett The Kentucky Legislative Research Commission is a 16-member committee of the majority and minority leadership of The Interim RECORD can Editor, Typography and Design the Kentucky Senate and House of Representatives. Under Chapter 7 of the Kentucky Revised Statutes, the LRC constitutes also be read online at www. the administrative office for the General Assembly. Its director serves as chief administrative officer of the Legislature when lrc.ky.gov/legislation.htm. If Public Information Staff: it isn’t in session. you have a paper subscription Stephanie Newberg The Commission and its staff, by law and by practice, perform numerous fact-finding and service functions for members and would like to end your Jeff Fossett of the Legislature, employing professional, clerical and other employees required when the General Assembly is in session Steve Gatewood subscription and read the and during the interim period between sessions. These employees, in turn, assist committees and individual legislators Bruce Phillips Interim RECORD online only, in preparing legislation. Other services include conducting studies and investigations, organizing and staffing committee Bud Kraft please contact the LRC Public meetings and public hearings, maintaining official legislative records and other reference materials, providing information Keith Krey Information Office at 502-564- about the Legislature to the public, compiling and publishing administrative regulations, administering a legislative intern Jim Hannah 8100, ext. 307. Stories and program, conducting orientation programs for new legislators, and publishing a daily index and summary of legislative Susan Kennedy photographs may be reprinted actions during sessions. without permission, although The LRC is also responsible for statute revision, publishing and distributing the Acts and Journals following sessions, credit is appreciated. and for maintaining furnishings, equipment and supplies for the Legislature. It also functions as Kentucky’s Commission on Interstate Cooperation in carrying out the program of the Council of State Governments as it relates to Kentucky. Printed with state funds

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