2010 Interim LEGISLATIVE Volume 23, No. 3 August 2010 * Read on-line at www.lrc.ky.gov/legislation.htm* RECORD Proposed death penalty ban reviewed by panel by Rebecca Mullins Hanchett legal in most death-penalty states despite a 1986 LRC Public Information Supreme Court ruling that execution of the insane violates a ban on “cruel and unusual punishment” Lawmakers reviewed a proposal on Aug. 11 in set out in the Eighth Amendment of the U.S. Consti- Frankfort that would eliminate the death penalty for tution. The 24-year-old ruling did not mandate pro- severely mentally ill persons who commit capital cedures for states to follow to determine a person’s crimes in . legal sanity. House Bill 16, sponsored by House Minority The death penalty was eliminated for men- Whip , R-Bardstown, and Rep. Darryl tally retarded defendants and defendants who com- Owens, D-Louisville, stalled in the House Judiciary mit capital crimes under the age of 18 as a result of Committee during the 2010 Regular Session. The bill U.S. Supreme Court rulings issued in 2002 and 2005 would have defined “severely mentally ill” defen- respectively. Ernie Lewis with the Kentucky Asso- dants under Kentucky law and ciation of Criminal Defense Lawyers explained that Severe mental eliminated the death penalty mental limitations of the two groups made them less illness affects for those defendants while culpable in the eyes of the Court. leaving courts the option to only 2.6 House Minority Floor Leader , hand another sentence down percent of the R-Jamestown, questioned language in HB 16 that in those cases. Seriously population states a mental disorder that is “manifested primarily mentally retarded defendants and includes by repeated criminal conduct or attributable solely to in capital cases and those the acute effects of voluntary use of alcohol or other such who commit capital crimes disorders as drugs” would not, by itself, indicate the person has when they are under age 18 severe mental illness. Hoover said the definition of schizophrenia are already exempt from the severely mentally ill in the bill would prevent some- and delusional death penalty in Kentucky. one from voluntarily using alcohol or other drugs, disorder. Rep. Kelly Flood, D-Lexington, confers with Rep. Harry Moberly, Sheila Schuster with thereby allowing mentally ill persons to claim sub- the Kentucky Mental Health D-Richmond, prior to the August meeting of the Interim Joint Committee on Judiciary in Frankfort. stance abuse was the cause of their disorder. Coalition told state lawmak- HB 16 would define a severely mentally ill de- ers on the Interim Joint Committee on Judiciary that said. A person with such a disorder often has non-re- fendant as someone who at the time of their crime severely mentally ill persons are not deterred by the ality based beliefs which Williams said may include “had a severe mental disorder or disability that sig- threat of the death penalty and that “it is time to re- thoughts that the individual is a king or a queen, or nificantly impaired his or her capacity to appreciate move this small group from (those eligible) for the even a major religious figure. “They have no basis in the nature, consequences or wrongfulness or his or death penalty” while still holding such persons ac- reality of what’s going on,” he said. her conduct, exercise rational judgment in relation countable for their crime. “We’re not asking that these people not be pros- to conduct, or conform his or her conduct to the re- Severe mental illness, according to testimony ecuted,” said Williams. “We’re asking that the death quirements of the law…”. by psychologist Dr. Russ Williams, affects only 2.6 penalty be taken off but they still be held account- Lewis said HB 16 would have addressed intoxi- percent of the population and includes such disor- able for their actions.” ders as schizophrenia and delusional disorder, he Execution of the severely mentally ill is still Continued on page 2 Lawmakers consider challenges confronting airport industry by Rob Weber ment and Tourism Committee and the Program Re- consider air service a top factor Aviation-related LRC Public Information view and Investigations Committee. in determining where they will employment Aviation-related employment makes up 5 per- locate.” makes up The importance of airports to the state’s econ- cent of Kentucky’s jobs and represents 5.3 percent John C. Mok, chief execu- 5 percent omy was highlighted as lawmakers heard testimony of the state’s gross domestic product, said Northern tive officer of the Cincinnati/ of Kentucky’s during an August 17 meeting on the issues and chal- Kentucky Chamber of Commerce President Steve Northern Kentucky Interna- jobs and lenges facing the air services industry. Stevens, who was joined at the meeting by the heads tional Airport, said providing represents 5.3 Although air travel has been down nationwide of Kentucky’s three largest airports. direct, transatlantic flights is percent in recent years, the industry is still an important part “The presence of top notch air service is criti- a key to keeping international of the state’s of Kentucky’s economic engine and efforts to recruit cal to economic development,” Stevens said. “In this companies in Kentucky and gross domestic new businesses to the state, lawmakers were told fast-paced economy, businesses rely on the ability product. during a joint meeting of the Economic Develop- to easily move from place to place. … Businesses Continued on page 2

THE KENTUCKY GENERAL ASSEMBLY  Airports, from page 1 luring new ones to the state. With the at tools that could ensure the state’s air number of such flights out of his air- service industry is on a level playing port dropping from five to one last field, Mok said. year, restoring lost international ser- “An investment program is not a vice is a top priority, he said. handout – it is an economic develop- “The number of European firms ment tool like that is offered in other operating in our region has tripled to industries to increase Kentucky’s over 300 since 1987, when (the Cin- competitiveness in the global market- cinnati/Northern Kentucky Interna- place,” he said. tional Airport) began offering nonstop Eric Frankl, executive director transatlantic service,” Mok said. “With of Lexington Bluegrass Airport, said the loss of four European non-stop it’s not uncommon for states to imple- destinations in 2009, our businesses ment air service grants. He noted that now have one direct, non-stop, trans- Kansas studied the impact of low fares atlantic flight (to Paris)… If we want “and now budgets for these type of in- to retain these international companies centives because they believe that for and attract new ones, direct transoce- an annual investment of $5 million, anic service is critical.” the citizens of Wichita would save Communities such as Pittsburgh, over $40 million because of lower air Portland and San Diego have spent fares. As a result, air service would millions in air service incentive funds not only be enhanced for the consum- to secure or retain international ser- ers but also for the benefit of existing vice. Kentucky should also take a look companies and potential future com- panies that are located in that commu- nity and state.” Death penalty, Frankl quoted a recent posting from page 1 on an air services blog by William S. Swelbar, a research engineer in the Senate President Pro Tempore , R-Southgate, comments during the Aug. 17 meeting of the Interim Joint Committee on Economic Development and Tourism. cation of a mentally ill person during Massachusetts Institute of Tech- mitigation. nology’s International Center for Air As far as competency to stand Transportation: “Communities fund concerned and want to make sure the for our region,” said Stine, R-South- trial is concerned, Williams said there sports stadiums to attract teams and Northern Kentucky and Cincinnati air- gate. “But we also recognize that air- is a difference between competency to tax breaks for large companies to en- port is as strong and vibrant as it can ports across our commonwealth are stand trial and criminal responsibility. tice them to their area, all in the name be because it is an economic engine important.” A person’s competency can ebb and of economic impact. Why shouldn’t flow, while criminal responsibility, he air service be the same?” said, is “stuck in time.” That segued The challenges facing the airline Nominations now accepted for into a comment made by Chris Cohron industry have made it increasingly of the Kentucky Commonwealth At- difficult for airports to retain services 2010 Vic Hellard Jr. Award torneys Association who said state and attract new ones, said Charles T. law already exempts legally insane in- “Skip” Miller, executive director of The Kentucky Legislative Research Com- dividuals from the death penalty. Louisville International Airport. mission is now accepting nominations for the “I’m not aware of any prisoner “Many communities clearly see 2010 Vic Hellard Jr. Award. under a death sentence (in Kentucky) the need for additional tools to help The award, given annually in memory and who has been found guilty but men- airports successfully compete for pas- recognition of Mr. Hellard’s contributions to an tally ill,” Cohron said. senger air service and the airlines’ independent legislative institution and devoted But Lewis, in response to another ever-shrinking scarce resources,” he service to the Commonwealth, recognizes a per- comment, said the behavior of a de- said. son who has advanced the interests of citizens of fendant at the time of the crime is what None of the airport heads speci- the Commonwealth by example and leadership. matters under the Eighth Amendment fied exactly what type of incentive Letters of nomination should be submitted and would matter under HB 16. program they wanted lawmakers to by Sept. 30, 2010 and should explain how the “Do they meet insanity (stan- consider. But they wanted to start the candidate: 1) Demonstrates vision, Vic Hellard Jr. dards) or significant mental illness discussion on the issue, they said. considering the long-term implications for the public impairment (as defined in HB 16)?” Senate President Pro Tempore good; 2) Demonstrates innovation, finding new asked Lewis. Currently in Kentucky, Katie Stine said she was pleased that approaches while appreciating history; 3) Champions the equality and dignity Lewis said there is a “major gap” be- lawmakers had an opportunity to be of all; 4) Enhances the processes of a democratic society, promoting public dia- tween the court’s treatment of a person part of the solution to the challenges logue, educating citizens and decision makers, and fostering civic engagement, on trial for a capital crime who is not facing Kentucky’s air services indus- and; 5) Approaches work with commitment, caring, gererosity and humor. insane but who is impaired to such a try. Please submit nominations to: Hellard Award Selection Committee, Leg- degree that the person lacks the capac- “These are very important issues, islative Research Commission, Attn: Anita Muckelroy, 702 Capitol Avenue, ity to determine the impact of his or and – in particular from the Northern Room 003, Frankfort, KY 40601, or online at www.lrc.ky.gov/HellardAward. her behavior. Kentucky perspective – we’re very htm.

 2010 Interim LEGISLATIVE RECORD Medicaid challenges Charter schools ahead, lawmakers told discussion continues by Chuck Truesdell by Rebecca Mullins Hanchett LRC Public Information LRC Public Information The merits of charter schools, already a hot topic as Kentucky competes for Lawmakers took a closer look in August at how Kentucky Medicaid is federal Race to the Top funding, got a full hearing during the August meeting of changing under federal health care reform signed into law earlier this year. the Interim Joint Committee on Education. Under the law, known as the Patient Protection and Affordable Care A charter school leader from Oklahoma City talked about his experiences Act, all individuals at or below 133 percent of the federal poverty level will as a public school teacher and princi- be eligible for Medicaid when program changes take effect in 2014. That pal, including his time as chief of the will mean more people on Medicaid, and more federal money to cover those charter KIPP (Knowledge is Power people, National Conference of State Legislatures official Donna Folkemer Program) Reach College Preparatory told the Medicaid Cost Containment Task Force on Aug. 17. Middle School. “If I went back in a States will be paying more, too, said Folkemer, and have to meet strict public school, I’d run it like KIPP,” rules regarding Medicaid eligibility. said Tracy McDaniel. The school, a “At the same time, as a condition of the extra federal money, there is persistently low-achieving school a ‘maintenance of effort’ provision for states. So states will be prohibited before his arrival, is now a model for from changing eligibility for Medicaid,” she said, meaning states’ rules for academic success, he said. eligibility cannot be more restrictive (with some exceptions) than they were Key to the school’s success, Mc- when health care reform was passed last March. “…And, of course, that is- Daniel said, is getting parents to buy sue comes into play as you think about cost containment.” into the workload needed. Although a A recent Kaiser Family Foundation study shows that Kentucky’s Med- common criticism of charter schools icaid rolls could increase by as many as 424,000 people five years after the is that they select high-achieving stu- Medicaid changes take effect, with the federal government paying most of dents with involved parents to boost the cost. Kentucky would, however, be expected to pay another $180 million results, “we’re not cherry-picking,” to cover the new enrollees, according to the Kaiser study. he said. In many cases he added, the But with more than 700,000 Kentuckians already on Medicaid today— students are more adamant about the and the program adding approximately 3,000 new people to its rolls each hours of study than their parents month--Kentucky, like most states, could find the Medicaid changes finan- are. “Initially, the parents don’t Rep. Jim DeCesare, R-Rockfield, comments dur- ing the August meeting of the Interim Joint Com- cially challenging. Money is “in short supply in most states,” Folkemer said, believe in KIPP,” he said. “The mittee on Education. and is likely to stay that way for many years. kid is actually changing the par- She quoted a July NCSL State Budget Update that states “…many un- ent.” certainties lurk, with their impact poised to hit state budgets next year. FY The KIPP program has been 2011 may turn out to be the calm before the next fiscal tempest.” implemented in 82 schools in 19 states. In all, 39 states allow some form of char- “Every state’s going to see some growth in Medicaid. There will be a ter school. “It’s very difficult to make blanket statements about charter schools,” need probably for some new staffing in most states to accommodate that,” said Kentucky Education Association Executive Director Mary Ann Blanken- said Folkemer. ship, “because every single state law is very different.” Folkemer told the task force that many states are exploring new ways The panel also heard from Kentucky groups addressing their hopes for to improve Medicaid care and cost. Although they are finding “no magic and concerns on charter schools. Some groups, such as the KEA and Kentucky bullets,” she said, the states have arrived at some similar themes: eliminate School Boards Association, said they were interested in working on details of inefficiencies, make performance a key part of rate-setting, and bring the any charter school legislation. “Since charter schools and charter school laws management of various Medicaid programs together to create more unity for are unique in every state… it is difficult to make broad supportive statements,” budget and management purposes. said KSBA Assistant Director Shannon Pratt Stiglitz. Changes in care management and pharmacy usage were mentioned by Jefferson County Teachers Association President Brent McKim called Folkemer as areas where states recognize a need for change. A Kentucky charter schools “counterproductive and unnecessary,” citing research that called Chamber of Commerce report released last year on Kentucky Medicaid lists charter schools’ effectiveness into question and positing that local school-based prescription drug cost as a reason for concern. decision making councils could perform many of the functions of charter schools Task Force Co-Chair and Senate President Pro Tempore Katie Kratz managers. Blankenship also noted that granting waivers or ending some regula- Stine, R-Southgate, asked how many states are using prescription drugs tions could achieve the same end. monitoring programs like the KASPER (Kentucky All Schedule Prescrip- Jim Waters, Vice President of the Bluegrass Institute for Public Policy So- tion Electronic Reporting) system used by the Commonwealth of Kentucky. lutions, cited one of those same studies as McKim to bolster the argument for Folkemer said there is a nationwide effort to develop registries to check pre- allowing charter schools, and questioned the rate of progress in public schools. scription used that is aimed at addictive pain drugs. “Perhaps the most concerning aspect is that the performance of our students is Senate President David Williams, R-Burkesville, said regional interstate degenerating the longer they are in school,” he said, noting that the number of compacts between states that help avoid federal intervention are helping to students falling short of proficiency increases from elementary to middle and drive the prescription drug tracking effort. Folkemer said the interstate com- high school. pact effort “has picked up a lot of steam.” Rep. , R-Burlington, thanked the presenters and suggested “(It is the) way to make sure that we’re not having folks crossing state they work together on details of proposed legislation. “I hope that the discussion lines is the interstate compacts,” she said. continues from where we are today. I think we all want quality education,” she By ramping up e-prescriptions, use of generics and other changes like said. The question of the day, however, was how to best achieve those education adding certain psychiatric drugs to preferred drug lists, states can become goals. “My question is, why not charter schools?” asked Rep. Jim DeCesare, Continued on page 62 R-Rockfield, to which Rep. Tim Firkins, D-Louisville, retorted, “I think the real question is, why not strengthen the public school system?”

THE KENTUCKY GENERAL ASSEMBLY  State officials give health reform implementation update by Chuck Truesdell LRC Public Information The state’s Department of Insurance is moving at a brisk pace to implement all the changes mandated by federal health insurance reform, department officials reported to lawmakers on Aug. 24. “The passage of this bill has put a huge workload on the department,” Insur- ance Commissioner Sharon Clark told members of the Interim Joint Committee on Banking and Insurance. But, she said, staff have been working diligently and efficiently to protect consumers during the transition. All told, the department has projected it will need only eight additional staff to meet all the requirements of the federal plan, and all of them will be federally- funded, time-limited jobs paid for through grants. Although some implementation timelines run until 2014, one deadline has already passed, Clark said. Kentucky has opted not to operate a new high-risk pool, instead allowing federal officials to operate the program. “We were seri- ously concerned about the adequacy of funding,” she said, because only $63 million was allocated for the pool’s operation. The state will continue to maintain its current high-risk pool, which pre- dated the new law, she added. Another pressure on the department is the set of restrictions on new health insurance plans, separate from grandfathered plans that were already written when the bill was signed into law on March 23. The distinction means that dif- ferent plans will be held to different standards depending on the length they’ve been in place. Many new restrictions will be enforced on all plans, including the ban on rescissions on the extension of dependent coverage until age 26. Grandfa- thered plans would be limited in the changes they could make and still maintain their grandfathered status, she said. Many consumer protection provisions placed on new plans are already in Rep. , D-Elizabethtown, talks with Kentucky Insurance Commissioner Sharon Clark dur- Kentucky statute and regulation, she added, meaning little change for Kentuck- ing the Aug. 24 meeting of the Interim Joint Committee on Banking and Insurance. ians relative to other states. One concern to legislators was the federal list of mandates for insurers, which does not exactly match the list of conditions the state requires to be covered. “It looks like some of our (state) mandates may end,” said committee co-chair Sen. , R-Nicholasville, when told that states will have to take responsibility for the costs of those extra mandates above and beyond federal requirements. Many areas of state implementation are still being ironed out, Clark said, because they still depend on federal regulations being developed in accordance with the law. Some are being written solely at the federal level, while others are being studied in conjunction with state officials and stakeholders. “When this bill was passed, there were no staff in Washington to work on this issue,” Clark noted, making the process a lengthy one. Among the details to be worked out is the calculation of medical loss – how much of the premiums insurers must spend on medical care. The new law mandates that 85 percent of large group market premiums be spent on care and 80 percent in the small group and individual markets, with any extra profit being rebated to con- sumers. The costs of fraud recovery, preventive care, and other expenditures may or may not be included in those calculations, depending on final regulations. Those figures could affect insurance markets and premiums. The state also faces a deadline of January 1, 2013, to demonstrate whether it can operate an exchange where consumers could evaluate their options for health insurance. Such an exchange, run jointly with the Cabinet for Health and Family Services, would include information on premiums, benefit structures, and other items specific to a consumer’s circumstances. The exchange would go online on January 1, 2014 for small groups and individuals, while large group plans may potentially take part at a later date, officials said. Clark said a grant application is being prepared for $1 million to help plan the state’s exchange, which could be run by the state, by a group of states, the federal government, or by a third party non-profit. She said state officials would travel the state talking to consumers, insurers, and other stakeholders to determine what the exchange should entail, while also waiting on federal officials to detail the requirements. “My fear is that it will be almost overpowering for consumers,” she said, pointing out the need for clear and helpful information. House Majority Caucus Chair Bob Damron, D-Nicholasville, said that the Council of State Governments was developing the idea for a multi-state compact to run an exchange, while Rep. Jimmie Lee, D-Elizabethtown, said Kentucky’s unique demographics might be better suited to a one-state exchange. Regardless, Lee noted, a legislative framework should be developed in the next session. “I don’t believe we can wait until January of (20)12 to see what exchanges would look like in Kentucky,” he said. Along the same lines, Clark said the department would be submitting legislation for the 2011 session to conform Kentucky statutes to the new federal law. Without clear state authority, she would have to refer questions and problems to Washington rather than helping consumers herself, she said.

 2010 Interim LEGISLATIVE RECORD House of Representatives

2010 Royce W. Adams Charles Siler 580 Bannister Rd. Dry Ridge 41035 491 E. Nashville St. Pembroke 42266 3346 Canterbury Ct. Erlanger 41018 3570 Tackett Creek Rd. Work 859-824-3387 Home 270-475-9503 Home 859-578-9258 Williamsburg 40769 Home 859-428-1039 Work 606-549-0900 KENTUCKY Ted Edmonds Jimmie Lee 1257 Beattyville Road Jackson 41339 901 Dogwood Drive Elizabethtown 42701 PO Box 688 Sandy Hook 41171 Home 606-666-4823 Work 270-765-6222 112 W. 11th Street Covington 41011 Work 606-928-0407 Home 270-737-8889 Work 859-261-6577 Home 606-738-4242 C.B. Embry, Jr. Home 859-581-6521 FAX 606-929-5213 PO 1215 Morgantown 42261 PO Box 2090 Lexington 40588 Dottie Sims Work 270-526-6237 459 Violet Ave. Horse Cave 42749 Home 859-252-2202 John A. Arnold, Jr. Home 270-791-1879 Home 270-786-3948 General FAX 859-259-2927 PO Box 124 Sturgis 42459 Work 270-333-4641 Bill Farmer 3361 Squire Oak Dr. Lexington 40515 2007 Tyler Ln. Louisville 40205 Kevin Sinnette Work 859-272-1425 PO Box 1358 Ashland 41105 Eddie Ballard Home 502-451-5032 Assembly PO Box 1735 Madisonville 42431 Home 859-272-8675 Home 606-324-5711 Work 270-821-4767 FAX 859-272-1579 Tom McKee Home FAX 606-329-1430 Home 270-821-6255 Tim Firkins 1053 Cook Road Cynthiana 41031 212 E. Esplanade Louisville 40214 Home 859-234-5879 Ancel Smith Linda Belcher 1812 Wiley Fork Road Leburn 41831 Home/FAX 502-367-2981 FAX 859-234-3332 Senate 4804 Hickory Hollow Lane Work 502-564-8100, ext. 668 Walter Blevins, Jr. Shepherdsville 40165 Home 606-785-3844 Home 502-957-2793 Joseph M. Fischer PO Box 757 Louisville 40201 115 Hill N Dale Morehead 40351 905 Hurst Dr. Hopkinsville 42240 126 Dixie Place Fort Thomas 41075 Work 606-743-1212 Home 270-885-1639 Work 502-772-1095 108 North Green St. Glasgow 42141 Work 513-794-6442 John Will Stacy Home 606-743-1200 FAX 270-885-0640 PO Box 135 West Liberty 41472 Work 270-651-7005 Home 859-781-6965 Charles Miller FAX 606-743-1214 Home/FAX 606-743-1516 Home 270-590-0110 3608 Gateview Circle Louisville 40272 Home 502-937-7788 David E. Boswell Mike Reynolds Kelly Flood Fitz Steele PO Box 4000 Bowling Green 42102 Kevin D. Bratcher 5591 Panther Creek Park Drive 10215 Landwood Drive 121 Arcadia Park Lexington 40503 176 Woodland Ave. Hazard 41701 Work 502-564-8100 Owensboro 42301 Louisville 40291 Home 859-221-3107 Terry Mills Home/FAX 606-439-0556 Home 270-771-4921 Home 502-231-3311 695 McElroy Pike Lebanon 40033 Fax 270-926-9047 David Floyd Home 270-692-2757 Jerry P. Rhoads 102 Maywood Ave. Bardstown 40004 9 East Center Street Scott W. Brinkman Kent Stevens Home 502-350-0986 Harry Moberly, Jr. PO Box 481 Lawrenceburg 40342 6001 Two Springs Lane Tom Buford Madisonville 42431 PO Box 721 Richmond 40475 409 W. Maple Nicholasville 40356 Louisville 40207 Home 502-839-5462 Home 270-825-2949 Work 859-622-4997 Home/FAX 859-885-0606 Home 502-893-8769 Danny Ford PO Box 1245 Mt. Vernon 40456 Home 859-624-2781 FAX 502-894-0210 III Work 606-678-0051 545 KY 223 Flat Lick 40935 Julian M. Carroll 4030 Hidden Creek Home 606-256-4446 Home 606-542-5210 Room 229 Capitol Annex Henderson 42420 543 Main Street Shelbyville 40066 Frankfort 40601 Home 270-826-5402 4012 Lambert Ave. Jim Glenn Work 502-633-7017 PO Box 21562 Owensboro 42304 Work 502-564-8100 Work 270-869-0505 Louisville 40218 Home 502-633-7533 Home 270-686-8760 Home 502-454-4002 1481 Jefferson School Road Perry B. Clark Tim Moore Dwight D. Butler , Jr. 417 Bates Rd. Elizabethtown 42701 Scottsville 42164 5716 New Cut Road Louisville 40214 714 North Broadway B2 Home 270-622-5054 PO Box 991 Union 41091 PO Box 9 Harned 40144 Home 270-769-5878 Home 502-366-1247 Providence 42450 Home 859-384-7506 Work 270-756-5931 Work 270-635-7855 Work 502-564-8100 Home 270-756-0100 Lonnie Napier Greg Stumbo Julie C. Denton Home 270-667-7327 302 Danville St., Lancaster 40444 Box 1473 108 Kassidy Drive 1708 Golden Leaf Way FAX 270-667-5111 Work 859-792-2535 Prestonsburg 41653 Louisville 40245 Dan “Malano” Seum John “Bam” Carney Home 859-792-4860 Home 606-886-9953 Home 502-489-9058 1107 Holly Ave. Fairdale 40118 341 Pembroke Way Campbellsville Derrick Graham Work 502-564-2450 42718 Room 329F Capitol Annex Frankfort 40601 Rick G. Nelson Tommy Thompson Home 502-749-2859 Home 270-465-5400 Home 502-223-1769 Rt. 3, Box 686 Middlesboro 40965 PO Box 458 Owensboro 42302 PO Box 506 Leitchfield 42755 Mike Cherry Home/FAX 606-248-8828 Home 270-926-1740 Work 502-564-8100 Tim Shaughnessy 803 S. Jefferson Princeton 42445 PO Box 1007 Brandenburg 40108 FAX 270-685-3242 Home 270-230-5866 9712 Southern Breeze Lane Home 270-422-5100 Fred Nesler Home 270-365-7801 PO Box 308 Mayfield 42066 John Tilley Louisville 40229 Home FAX 270-422-5100 PO Box 1065 Hopkinsville 42241 David P. Givens Work 502-584-1920 Work 270-623-6184 PO Box 12 Greensburg 42743 Larry Clark Keith Hall Home 270-247-8557 Home 270-881-4717 5913 Whispering Hills Blvd. Work 270-886-6800 Work 502-564-8100 Brandon Smith PO Box 466 Phelps 41553 FAX 270-623-6431 Louisville 40219 Work 606-456-3432 Ext. 25 FAX 270-885-7127 350 Kentucky Blvd. Home 502-968-3546 Hazard 41701 Home 606-456-8666 PO Box 8 Prospect 40059 Tommy Turner 2521 Ransdell Ave. Louisville 40204 Home 606-436-4526 Work 502-645-2186 175 Clifty Grove Church Road Home 502-452-9130 Home FAX 606-436-2398 72 Collins Dr. Wittensville 41274 633 N. 3rd St. Danville 40422 Home 502-228-3201 Somerset 42501 Ernie Harris Kathy W. Stein Home 606-297-3152 Home 859-238-7792 Sannie Overly Home 606-274-5175 PO Box 1073 Crestwood 40014 364 Transylvania Park Lexington 40508 Leslie Combs 340 Main Street Paris 40361 Home 502-241-8307 Work 859-225-4269 Richard Henderson Home 859-987-9879 245 E. Cedar Drive Pikeville 41501 60 Myers Cemetery Rd. Jeffersonville 40337 PO Box 969 Monticello 42633 Home 859-252-1500 Home 606-477-6672 Home 859-585-0886 Darryl T. Owens Work 606-340-8490 507 West Main Street Lebanon 40033 Katie Kratz Stine James R. Comer, Jr. 1018 S. 4th St., Ste. 100 Louisville 40203 Work 270-692-3881 21 Fairway Drive Southgate 41071 Melvin B. Henley Home 502-584-6341 David Watkins PO Box 338 Tompkinsville 42167 1305 S. 16th Street Murray 42071 5600 Timberlane Dr. Henderson 42420 Work FAX 270-692-1111 Home 859-781-5311 Home 270-487-5585 Home 270-753-3855 Home 270-826-0952 Tom Jensen II Charlie Hoffman 10 Deepwood Dr. Lexington 40505 FAX 270-826-3338 303 S. Main Street London 40741 207 Main Street Manchester 40962 PO Box 710 Hyden 41749 406 Bourbon St. Georgetown 40324 Home 859-299-2597 Home 606-878-8845 Work 606-598-2322 Home/FAX 606-672-8998 Work 502-863-4807 1280 Royal Ave. Louisville 40204 Home 606-598-8575 Home 502-863-9796 Don Pasley Work 502-451-8262 Ray S. Jones II FAX 606-598-2357 5805 Ecton Road Winchester 40391 PO Drawer 3850 Pikeville 41502 PO Box 467 Benton 42025-0467 Jeff Hoover Home 859-842-3337 Work 606-432-5777 Gary Tapp Home 270-527-4610 PO Box 985 Jamestown 42629 Alecia Webb-Edgington FAX 606-432-5154 308 Fishermen Circle Shelbyville 40065 Work 270-527-4610 Work 270-343-5588 1650 Chestnut Ct. Fort Wright 41011 Home 502-633-2304 Home 270-343-2264 1026 Johnson Lane South Shore 41175 Home 859-426-7322 Work 606-932-2505 121 Constitution Lexington 40507 Ron Weston 3274 Gondola Dr. Lexington 40513 423 Chieftain Drive Fairdale 40118 Work 859-259-1402 1806 Farnsley Rd. Shively 40216 Home 859-223-3274 102 Grayson Way Georgetown 40324 PO Box 323 McKee 40447 502-564-8100 Home 859-252-6967 Work 502-447-2498 Home 859-621-6956 Work 606-287-3300 FAX 859-259-1441 Home 502-447-4715 Robert J. “Bob” Leeper FAX 502-868-6086 Home 606-287-7303 229 South Friendship Paducah 42003 Brent Housman FAX 606-287-3300 PO Box 22778 Lexington 40522-2778 Ron Crimm Work 859-266-7581 Work 270-554-9637 Elizabeth Tori PO Box 43244 Louisville 40253 2307 Jefferson Street Paducah 42001 2851 S. Wilson Rd. Radcliff 40160 Home 270-554-2771 Work 502-400-3838 Home 270-366-6611 Home 270-351-1829 PO Box 273 Bedford 40006 FAX 270-554-5337 Home 502-245-8905 Home/FAX 270-442-6394 Addia Wuchner FAX 270-351-1829 Work 502-255-3286 PO Box 911 Burlington 41005 Vernie McGaha Robert R. Damron Home 502-255-3392 Work 859-525-6698 Joni L. Jenkins FAX 502-255-9911 4787 W. Hwy. 76 231 Fairway West Nicholasville 40356 2010 O’Brien Ct. Shively 40216 Russell Springs 42642 85 Kentucky Route 1101 Drift 41619 Home 859-887-1744 Home 502-447-4324 Home 270-866-3068 Home 606-377-6962 232 Norman Circle Greenville 42345 Jim DeCesare Dennis Keene 817 Culpeper St. Bowling Green 42103 Work 270-338-0816 Robin L. Webb PO Box 122 Rockfield 42274 1040 Johns Hill Road Wilder 41076 Work 270-781-9946 Home 270-338-6790 Gerald A. Neal 404 W. Main Street Grayson 41143 Home 270-792-5779 Home 859-441-5894 Home 270-842-6731 FAX 270-338-1639 Suite 2150 Meidinger Twr Home 606-474-5380 Home FAX 888-275-1182 FAX 270-781-9963 462 S. 4th Street Work 270-792-5779 Thomas Kerr PO Box 591 Grayson 41143 5415 Old Taylor Mill Rd. Taylor Mill 41015 Work 606-474-7263 Louisville 40202 Jack Westwood 8108 Thornwood Road Louisville 40220 Work 859-431-2222 Work FAX 606-474-7638 Work 502-584-8500 209 Graves Ave. Erlanger 41018 LRC 502-564-8100 Home 502-776-1222 Home 859-344-6154 306 Old Hill City Road Maysville 41056 Home 859-356-1344 Home 606-759-5167 FAX 502-564-6543 FAX 502-584-1119 FAX 859-431-3463 Tom Riner David L. Williams R.J. Palmer II Bob M. DeWeese 1143 E. Broadway Louisville 40204 PO Box 666 6206 Glen Hill Rd. Louisville 40222 Home 502-584-3639 1391 McClure Road Winchester 40391 Burkesville 42717 Martha Jane King Home 502-426-5565 633 Little Cliff Estate Lewisburg 42256 Home 859-737-2945 Work 270-864-5636 Carl Rollins II Home 270-657-2707 PO Box 424 Midway 40347 Home 270-433-7777 FAX 270-657-2755 Home 859-846-4407 Work 502-696-7474 Ken Winters 1500 Glendale Road Murray 42075 Home 270-759-5751 3430 Blueridge Dr. W. Paducah 42086 Ed Worley Home 270-744-8137 PO Box 659 Richmond 40476 Home 859-625-5536 FAX 859-623-6557 596 Walterlot Ct. Florence 41042 Home 859-371-8840 FAX 859-371-4060

THE KENTUCKY GENERAL ASSEMBLY  Committee Meetings

LEGISLATIVE RESEARCH Assessment and Accountability Re- Referral of prefiled bills to the COMMISSION view Subcommittee during its meet- following committees: BR 10 (re- Minutes of the 531st Meeting ings of May 14, and June 14, 2010. lating to tuition for foster children); July 28, 2010 Committee review of admin- BR 13 (relating to obesity in school Call to Order and Roll Call istrative regulations by the House children); and BR 20 (relating to early The 531st meeting of the Leg- Standing Committee on Health and education assessment and interven- Index islative Research Commission was Welfare during its meeting of Janu- tion) to Education; BR 12 (relating held on Wednesday, July 28, 2010, ary 14, 2010. to prescription drugs) to Health and A at 2:00 PM, in Room 111 of the Lou- Committee review of administra- Welfare; BR 14 (relating to evidence); Administrative Regulation Review isville Convention Center. Senator Subcommittee, 44 tive regulations by the Interim Joint BR 18 (relating to child custody); BR Agriculture, 9 David L. Williams, Chair, called the Committee on Health and Welfare 23 (relating to domestic relations); Appropriations and Revenue, 9, 10, meeting to order, and the secretary during its meeting of June 16, 2010. and BR 49 (relating to criminal re- 11, 13, 15 called the roll. Committee review of admin- cord expungement) to Judiciary; BR 4 C Present were: istrative regulations by the Interim (relating to promotional sampling of Capital Projects and Bond Oversight, Members: Senator David L. Wil- Joint Committee on Local Govern- distilled spirits and wine) to Licens- 41 liams, Co-Chair; Representative Greg ment during its meeting of June 23, ing and Occupations; BR 50 (affirm- Stumbo, Co-Chair; Senators Carroll E 2010. ing the principles of the Ninth and Economic Development and Tour- Gibson, Jerry P. Rhoads, Katie Kratz Committee review of the FY Tenth Amendments to the United ism, 16 Stine, Robert Stivers II, Johnny Ray 2009-2010 Substance Abuse Preven- States Constitution and declaring Education, 18, 21, 23, 26, 28 Turner, and Ed Worley; Representa- Energy, 30 tion and Treatment Block Grant Ap- that the Constitution tives Rocky Adkins, Larry Clark, Rob- plication by the Interim Joint Com- will be nullified if the federal govern- G ert R. Damron, Bob M. DeWeese, Jeff mittee on Health and Welfare during ment assumes further powers that Government Contract Review Com- Hoover, and John Will Stacy. mittee, 46 its meeting of November 18, 2009. it does not possess) to State Gov- Guests: Committee review of the FY ernment; BR 22 (relating to the re- H LRC Staff: Bobby Sherman and 2009-2010 Community Mental porting of stolen items with vehicle Health and Welfare, 31 Christy Glass. Health Services Block Grant Appli- identification numbers) and BR 47 Senator Williams called the J cation by the Interim Joint Commit- (relating to highway signs) to Trans- Judiciary, 31 meeting to order and the secretary tee on Health and Welfare during its portation; BR 11 (relating to probate called the roll. There being a quo- meeting of November 18, 2009. fees) to Veterans, Military Affairs and L rum present, Senator Williams called Committee review of the FY 2010 Public Protection. Labor and Industry, 33 for a motion to approve the minutes Legislative Research Commission, 6 Social Services Block Grant Applica- From Senator Jack Westwood Licensing and Occupations, 33 of November 4, 2009; accept items tion by the Senate Standing Commit- and Representative Kent Stevens, A. through P. under Staff and Com- tee on Health and Welfare during its Co-Chairs, Education Assessment M mittee Reports; refer prefiled bills Medicaid Cost Containment Task meeting of March 24, 2010. and Accountability Review Subcom- Force, 39 as indicated and approve items B. Committee review of the FY 2010 mittee: Memorandum requesting Medicaid Cost Containment Task through V. under New business; and, Social Services Block Grant Applica- approval of the Guidelines for the Force and Medicaid Oversight accept and refer as indicated items 1. and Advisory Committee Joint tion by the House Standing Commit- Operation and Use of the National Meeting, 40, 56 through 102 under Communications. tee on Health and Welfare during its Technical Advisory Panel on Assess- A Motion was made by Senator Gib- meeting of March 25, 2010. ment and Accountability. P son and seconded by Representative Committee review of the FY 2010 From Senate President David L. Penal Code and Controlled Substances Damron. A roll call vote was taken Act Task Force, 38 Small Cities Block Grant Application Williams and House Speaker Gregory Program Review and Investigations, and the motion passed unanimously. by the Senate Standing Committee D. Stumbo: Memorandum appoint- 57 The following items were approved, on State and Local Government and ing Commissioners to the National accepted or referred: S the House Standing Committee on Conference of Commissioners on State Government, 34 Information requests for Decem- Local Government during its meeting Uniform State Laws. ber 2009 and January through June of March 24, 2010. From Senate President David L. T 2010. Committee review of the FY 2011 Williams and House Speaker Grego- Tobacco Settlement Agreement Fund Committee Activity Report for Oversight Committee, 60, 61 Low Income Home Energy Assistance ry D. Stumbo: Memorandum reap- May and June 2010. Program Block Grant Application by pointing Turney P. Berry to the Na- Reports of the Administrative the Special Subcommittee on Energy tional Conference of Commissioners Regulation Review Subcommittee during its meeting of June 18, 2010. on Uniform State Laws. meetings of November 10 and De- Committee review of Executive From Senate President David L. cember 14, 2009, and January 11, Reorganization Order 2010-429 by Williams and House Speaker Gregory February 8, March 8, April 14, May the Interim Joint Committee on Lo- D. Stumbo: Memorandum amending 11, and June 8, 2010. cal Government during its meeting of the General Assembly Travel Reim- Committee review of administra- June 23, 2010. bursement Guidelines. tive regulations by the Interim Joint Committee review of Executive From Senator Tom Jensen and Committee on Education during its Reorganization Order 2010-430 by Representative John Tilley, Co- meetings of November 9, 2009 and the Interim Joint Committee on Edu- Chairs, Interim Joint Committee on July 12, 2010. cation during its meeting of July 12, Judiciary: Memorandum requesting Committee review of adminis- 2010. approval to change the regular meet- trative regulations by the Education NEW BUSINESS ing day from the first Friday of each

 2010 Interim LEGISLATIVE RECORD month to the second Wednesday of Chairs, Special Subcommittee on En- Williams and House Speaker Gregory and Actuarial Valuation Report as of each month. There are three poten- ergy: Memorandum requesting ap- D. Stumbo: Memorandum pertaining July 1, 2009, for the Kentucky Legis- tial conflicts. proval to tour an out-of-state facility to the Special Advisory Commission lators Retirement Plan. From Senator Brandon Smith in Illinois, in conjunction with the of Senior Citizens. From the Department of Educa- and Representative Jim Gooch, Co- committee’s meeting, on its regular COMMUNICATIONS tion: KIDS NOW Bi-Annual Report Chairs, Interim Joint Committee on meeting date, in Paducah on August From Senator John Schickel, Rep- for the period FY 08-09. Natural Resources and Environment: 20. resentative Reginald Meeks and Rep- From Northern Kentucky Uni- Memorandum requesting approval resentative Kelly Flood, Co-Chairs, versity: FY 09 Financial Report. to change the regular meeting day From Senator David Givens Program Review and Investigations From the Department of Educa- from the fourth Friday of each month and Representative Tom McKee, Co- Committee: Memoranda regarding tion: 2009 Physical Activity Report. to the first Thursday of each month. Chairs, Interim Joint Committee on opportunity for appointment of ex From the Finance and Adminis- There are no apparent conflicts Agriculture: Memorandum request- officio members for particular stud- tration Cabinet, Office of the Con- From Senate President David L. ing approval to meet on Thursday, ies. troller: Surtax Receipts Statements Williams and House Speaker Gregory August 26, with the Kentucky State From the Office of the Attorney for the Law Enforcement and Profes- D. Stumbo: Memorandum creating Fair Board during the Kentucky State General: Constitutional Challenge sional Firefighters Foundation Fund the Task Force on the Penal Code Fair, rather the regularly scheduled Reports for the months of Septem- Programs for the month of October and Controlled Substance Act and meeting date of Wednesday, August ber, October, November, and Decem- 2009, and year-to-date activity for appointing membership to the Task 11. This will be the second out-of- ber 2009, and January, February and the period July 1 through October Force. town meeting. There are sixteen (16) Supplemental for February, March, 31, 2009; for the month of Decem- From Senate President David L. potential conflicts. April and May 2010. ber 2009, and year-to-date activity Williams and House Speaker Gregory From Senator Ernie Harris and From the Finance and Admin- for the period July 1 through Decem- D. Stumbo: Memorandum creat- Representative Hubert Collins, Co- istration Cabinet: Monthly Invest- ber 31, 2009; for the month of Janu- ing the Task Force on Medicaid Cost Chairs, Interim Joint Committee on ment Income Report for the months ary 2010, and for the period of July Containment and appointing mem- Transportation: Memorandum re- of October, November, and December 1, 2009, through January 31, 2010; bership to the Task Force. questing approval to meet on August 2009, and January, February, March, for the month of February 2010, and From Senate President David L. 10, rather than the regularly sched- April, May and June 2010. year-to-date activity for the period Williams and House Speaker Gregory uled meeting date of August 3. From the Kentucky Office of July 1, 2009, through February 28, D. Stumbo: Memorandum appoint- From Senator Damon Thayer Homeland Security: 2009 Annual 2010; for the month of March 2010, ing members to the Task Force on and Representative Mike Cherry, Co- Report. and year-to-date activity for the pe- Economic Development of the In- Chairs, Interim Joint Committee on From the Kentucky Department riod July 1, 2009, through March 31, terim Joint Committee on Economic State Government: Memorandum of Agriculture: State Veterinarian’s 2010; for the month of April 2010, Development and Tourism. The Task requesting approval to meet on No- Report on the Cervid Chronic Wast- and year-to-date activity for the pe- Force is a subcommittee of the In- vember 17, rather than the regularly ing Disease Surveillance Identifica- riod July 1, 2009, through April 30, terim Joint Committee on Economic scheduled meeting date of November tion Program. 2010; and, for the month of May Development and Tourism. 24 (day prior to Thanksgiving). There From the Cabinet for Economic 2010, and year-to-date activity for From Senate President David L. are five potential conflicts. Development: Kentucky Enterprise the period July 1, 2009, through May Williams and House Speaker Gregory From Senator Alice Forgy Kerr Initiative Act Annual Report for FY 31, 2010. D. Stumbo: Memorandum appoint- and Representative , Co- 09. From the Cabinet for Health and ing members to the Task Force on Chairs, Interim Joint Committee on From the Kentucky Employers’ Family Services, Office of the Sec- Elections, Constitutional Amend- Labor and Industry: Memorandum Mutual Insurance: 2010 Adminis- retary: Kentucky Women’s Cancer ments, and Intergovernmental Affairs requesting approval to meet on Sep- trative Budget, Financial Status, and Screening Program Annual Report of the Interim Joint Committee on tember 14, rather than the regularly Actuarial Condition. on the Status of Breast Cancer in the State Government. The Task Force is scheduled meeting date of Septem- From the Public Protection Cabi- Commonwealth, FY 08 a subcommittee of the Interim Joint ber 16, at Kentucky Dam Village in net, Department of Insurance: The From the Cabinet for Economic Committee on State Government. conjunction with the Kentucky La- Impact of Mental Health Parity on Development: Incentives for Energy From Senator Ken Winters and bor-Management Conference. There Health Insurance Cost in Kentucky, Independence Act Annual Report, Representative Carl Rollins, Co- is one potential conflict. November 2009. November 2008 Chairs, Interim Joint Committee on From Senator Tom Buford and From the Auditor of Public Ac- From State Budget Director Mary Education: Memorandum request- Representative Jeff Greer, Co-Chairs, counts: Examination of Certain Fi- E. Lassiter: November 2009 and Jan- ing approval of the formation and Interim Joint Committee on Bank- nancial Transactions, Polices, and uary, March and June 2010 monthly memberships of the Subcommittee ing and Insurance: Memorandum Procedures of the Kentucky Associa- updates on ARRA formula funding. on Postsecondary Education and the requesting approval to meet on No- tion of Counties, Inc. From the Kentucky Retirement Subcommittee on Elementary and vember 11, rather than the regularly From the Kentucky Center for Systems: Financial Statements and Secondary Education. scheduled meeting date of November the Arts: 2010-2012 Biennial Bud- Supplementary Information for FY From Senate President David L. 23, at the Brown Hotel in Louisville get Request. 09. Williams and House Speaker Gregory in conjunction with the Independent From Kentucky Employers’ Mu- From the Kentucky Legislative D. Stumbo: Memorandum authoriz- Insurance Agents of Kentucky An- tual Insurance: Quarterly Statement Ethics Commission: FY 09 Annual ing the Legislative Research Commis- nual Convention. There are five po- and Financial Status for the periods Report. sion to assume the administration of tential conflicts. ending September 30, 2009. From the Mine Equipment Re- the Vic Hellard, Jr., Award. From Senator Alice Forgy Kerr From the Department of Educa- view Panel: Report and Recommen- From Senator Ernie Harris and and Representative Eddie Ballard, tion: Annual Audit of School Dis- dations to the Office of Mine Safety Representative Hubert Collins, Co- Co-Chairs, Interim Joint Committee tricts, October 2009. and Licensing, September 2009. Chairs, Interim Joint Committee on on Economic Development and Tour- From Eastern Kentucky Univer- From the Council on Postsec- Transportation: Memorandum re- ism: Memorandum requesting ap- sity: Financial Statements for FY 09 ondary Education: Letter regarding questing approval of the formation proval to meet on August 17, rather and Independent Auditors’ Report. information on postsecondary edu- and memberships of the Subcommit- than the regularly scheduled meeting From the Kentucky Judicial Form cation students participating in the tee on Kentucky Waterways. date of August 19. There are four Retirement System: Actuarial Valua- tuition and mandatory fee waiver From Senator Brandon Smith potential conflicts. tion Report as of July 1, 2009, for the program for foster or adopted chil- and Representative Keith Hall, Co- From Senate President David L. Kentucky Judicial Retirement Plan dren, FY 09.

THE KENTUCKY GENERAL ASSEMBLY  From the Kentucky Pollution ment of Education, Bizzy Bees Child Kentucky River Authority, FY 09. 31, 2010. Prevention Center: FY 09 Annual Re- Care, 103-6N2-999-PC, Federal FY From the Auditor of Public Ac- From the Auditor of Public Ac- port. 08. counts: Report of the Audit of the counts: Report to the General As- From the Kentucky Labor Cabi- From the Auditor of Public Ac- Kentucky Artisan Center at Berea, FY sembly on Kentucky Employers’ Mu- net: 2009 Annual Report counts: Independent Accountant’s 09. tual Insurance Authority, Calendar From the : Report on Applying Agreed-upon From the Auditor of Public Ac- Years 08-09. Kentucky Interagency Groundwater Procedures to the Kentucky Depart- counts: Report of the Audit of the From the University of Ken- Monitoring Network Annual Report ment of Education, Cornerstone to Kentucky Horse Park, FY 09. tucky: Kentucky Geological Survey, for FY 09. Learning, Inc., 075-5K1-999-PC, From the Auditor of Public Ac- FY 09 Annual Report. From the Kentucky Judicial Form Federal FY 08. counts: Report of the Audit of the From the Cabinet for Economic Retirement System: Audit of the From the Auditor of Public Ac- Green River Regional Educational Co- Development, Department of Finan- Kentucky Judicial Form Retirement counts: Independent Accountant’s operative, Inc., FY 09. cial Incentives: Loan data sheets for System, FY09. Report on Applying Agreed-upon From the Auditor of Public Ac- each loan approved as of the quarters From Murray State University: Procedures to the Kentucky Depart- counts: Report of the Examination of ending December 31, 2009, March Accountants’ Report and Financial ment of Education, Kaleidoscope, the Lease Law Compliance made pur- 31 and June 30, 2010. Statements, FY 09. Inc., 056-U84-999-AC, Federal FY suant to KRS 43.050(2)(e), FY 09. From the University of Ken- From the Public Protection Cabi- 08. From the Auditor of Public Ac- tucky, Kentucky Tobacco Research & net, Department of Insurance: Ken- From the Auditor of Public Ac- counts: Report of the Audit of the Development Center: Annual Re- tucky Access Report, January 2010. counts: Independent Accountant’s Cabinet for Health and Family Ser- port for FY 09 From the Auditor of Public Ac- Report on Applying Agreed-upon vices Breast Cancer Research and From the Public Protection Cab- counts: Report of the Audit of the Procedures to the Kentucky Depart- Education Trust Fund Grant Program, inet, Department of Insurance: 2009 Kentucky School Facilities Construc- ment of Education, Johnson’s 2, Inc., FY 09. Annual Report of the Kentucky tion Commission, FY 09. 056-6C6-999-PC, Federal FY 08. From the Auditor of Public Ac- Health Care Improvement Authority. From the Auditor of Public Ac- From the Auditor of Public Ac- counts: Governor’s Office of Agri- From the Kentucky State Nature counts: Report of the Audit of the counts: Independent Accountant’s cultural Policy Tobacco Settlement Preserves Commission: 2010 Report West Kentucky Education Coopera- Report on Applying Agreed-upon Review – Rural Development Fund, on Kentucky’s Native Flora – Status tive. FY 09. Procedures to the Kentucky Depart- FY 08. and Trends of Rare Plants. From the Auditor of Public Ac- ment of Education, Kids Unlimited From the Auditor of Public Ac- From the Department of Agricul- counts: Report of the Audit of the Learning, 034-7J7-999-PC, Federal counts: Report of the Audit of the ture: Kentucky Senior Farmers’ Mar- Central Kentucky Education Coop- FY 08. Kentucky Educational Development ket Nutrition Program 2009 Annual erative, FY 09. From the Auditor of Public Ac- Corporation, FY 09. Report. From the Auditor of Public Ac- counts: Independent Accountant’s From the Auditor of Public Ac- From the Cabinet for Health and counts: Independent Accountant’s Report on Applying Agreed-upon counts: Examination of Certain Fi- Family Services: 2009 Kentucky Co- Report on Applying Agreed-upon Procedures to the Kentucky Depart- nancial Transactions, Policies, and lon Cancer Screen Advisory Com- Procedures to the Kentucky Depart- ment of Education, Little Angels Pri- Procedures of the Kentucky League mittee Annual Report. ment of Education, ABC-123 Day mary House, 090-3V6-999-PC, Fed- of Cities, Inc. From the Cabinet for Health Care-N-Learning Center-084-1A5- eral FY 08. From the Kentucky Labor Cabi- and Family Services: SWIFT Adop- 999PC, Federal FY 08. From the Auditor of Public Ac- net, Department of Workers’ Claims: tion Teams Report. From the Auditor of Public Ac- counts: Independent Accountant’s Commissioner’s Report on AMA From Kentucky Employers’ Mu- counts: Independent Accountant’s Report on Applying Agreed-upon Guides. tual Insurance: Annual Statement Report on Applying Agreed-upon Procedures to the Kentucky Depart- From the Kentucky Labor Cabi- and Letter of Actuarial Opinion for Procedures to the Kentucky Depart- ment of Education, Kidz Konnection, net, Department of Workers’ Claims: the year ended December 31, 2009. ment of Education, Big Blue Bird, LLC, 034-1T4-999-PC, Federal FY 08. Corrections to the Commissioner’s From the Cabinet for Economic 034-6P8-999-PC. Federal FY 08. From the Auditor of Public Ac- Report on AMA Guides. Development: Business Information From the Auditor of Public Ac- counts: Independent Accountant’s From the Cabinet for Health and Clearinghouse 2009 Annual Report. counts: Independent Accountant’s Report on Applying Agreed-upon Family Services, Office of the Secre- From the Cabinet for Health and Report on Applying Agreed-upon Procedures to the Kentucky Depart- tary: Elder Abuse in Kentucky, 2009 Family Services, Department for Ag- Procedures to the Kentucky Depart- ment of Education, For Kids Only, Annual Report. ing and Independent Living: Trau- ment of Education, Advanced Learn- 056-7M1-999-PC, Federal FY 08. From the Energy and Environ- matic Brain Injury Trust Fund Pro- ing Center, Inc., 056-2QO-999-PC, From the Auditor of Public Ac- ment Cabinet, Division of Waste gram Annual Report, FY 2009. Federal FY 08. counts: Independent Accountant’s Management: Kentucky’s Waste Tire From the Kentucky Pollution From the Auditor of Public Ac- Report on Applying Agreed-upon Program, A Report to the General Prevention Center: KEEPS Status Re- counts: Independent Accountant’s Procedures to the Kentucky Depart- Assembly. port through December 31, 2009. Report on Applying Agreed-upon ment of Education, Stepping Stones From the Cabinet for Health and From the Cabinet for Health and Procedures to the Kentucky Depart- for Children, 073-3B2-999-PC, Fed- Family Services, Office of the Secre- Family Services, Office of the Secre- ment of Education, Advanced Learn- eral FY 08. tary: 2009 Charitable Health Pro- tary: 2009 Annual Child Fatality Re- ing Center, Inc., II, 056-7CI-999-PC, From the Auditor of Public Ac- vider Report. view Report. Federal FY 08. counts: Independent Accountant’s From the Cabinet for Health and From the Auditor of Public Ac- From the Auditor of Public Ac- Report on Applying Agreed-upon Family Services: 2009 Annual Report counts: Report of the Statewide counts: Independent Accountant’s Procedures to the Kentucky Depart- on licensed blood establishments in Single Audit of the Commonwealth Report on Applying Agreed-upon ment of Education, Little People’s Kentucky. of Kentucky Volume II, FY 09. Procedures to the Kentucky Depart- Child Development Center, 047- From the Personnel Cabinet: From the Cabinet for Health and ment of Education, Animal Krackers 6Q1-999-PC, Federal FY 08. Statewide Turnover Report for the Family Services: 2009 Annual Report Discovery Center, 025-OAO-999- From the Auditor of Public Ac- fourth quarter 2009. from the Chair of the Kentucky Spi- PC, Federal FY 08. counts: Report of the Audit of the From the Labor Cabinet, Division nal Cord and Head Injury Research From the Auditor of Public Ac- Kentucky Public Health Insurance of Workers’ Compensation Funds: Board. counts: Independent Accountant’s Program, FY 09. Report for Kentucky Coal Workers’ From the University of Kentucky, Report on Applying Agreed-upon From the Auditor of Public Ac- Pneumoconiosis Fund, Quarters End- Kentucky Tobacco Research & Devel- Procedures to the Kentucky Depart- counts: Report of the Audit of the ing December 31, 2009, and March opment Center: Quarterly Report for

 2010 Interim LEGISLATIVE RECORD the period January 1 through March Legislators Retirement Fund for FY meal. cial Analysis, Office of the State Bud- 31, 2010. 09-10. Mr. Burchett also confirmed that get Director. From the Department of Correc- From the Department of Educa- there is a public misconception that LRC Staff: Pam Thomas, Jennifer tions: Private Prisons Performance tion: Kentucky Assessment System: using soybeans for producing biodie- Hays, Charlotte Quarles, Eric Ken- Evaluation, 2008 and 2009. Validation and Research Agenda, Bi- sel takes away from the food chain. nedy, John Scott, Brett Gabbard, and From the Finance and Adminis- ennial Plan for Validation Studies, FY He stated that biodiesel is made from Sheri Mahan. tration Cabinet: Report of the num- 2010-2012. a byproduct of soybeans, and it was The agenda consisted of a sum- ber of individuals working on a full- There being no further business, not hurting the food supply. mary of revenues and expenditures time equivalent and recurring basis, the meeting was thereby adjourned Mr. Burchett and Mr. Tapp stat- for the General Fund and Road fund July through December 2009, pursu- at 2:30 p.m. ed that the Agriculture Committee for FY 10, necessary governmental ant to 2010 HB 387. could help the agricultural industry expenses, and an update on state From the Personnel Cabinet: by refining restrictions for animal ag- debt restructuring provided by Ms. Personnel Cabinet Quarterly Reports INTERIM JOINT COMMITTEE riculture Mary Lassiter, Secretary of the Gov- pursuant to 2010 HB 387. ON AGRICULTURE On another note, Representative ernor’s Executive Cabinet and State From the Office of the Attorney Minutes of the 1st Meeting Henderson commented that dead Budget Director. General: Re: Audit Examination of of the 2010 Interim animal removal is becoming a serious General Fund FY 10 year end up- July 14, 2010 Fulton County Sheriff’s Settlement issue, and that all counties needed date Call to Order and Roll Call – 2007 Taxes. help to solve the problem. Secretary Lassiter reported that The 1st meeting of the Interim From the Office of the Attorney Mr. Burchett and Mr. Tapp, on the General Fund declined 2.4% in Joint Committee on Agriculture was General: Re: Audit Examination of behalf of the KSA, presented Chair- FY 10, or $201.2 million. This decline held on Wednesday, July 14, 2010, at Magoffin County Sheriff CYE 2006 man McKee a special “Friend of Ag- represents the first time receipts have 9:00 AM, at the Convention Center, and CYE 2008. riculture” award for his commitment declined in two consecutive years Kentucky Dam Village, Gilbertsville, From the Office of the Attorney to agriculture. since 1945. She provided histori- Kentucky. Representative Tom McK- General: Audit Re: Examination of There being no further business, cal data regarding revenue increases ee, Chair, called the meeting to order, Former Leslie County Sheriff – CYE the meeting was adjourned for tours and decreases over the past decade, and the secretary called the roll. 2006. of a swine and poultry operation. and average percentage General Fund Present were: From the Office of the Attorney growth by decade from 1945 to the Members: Representative Tom General: Re: Audit Examination of present. McKee, Co-Chair; Senators David E. McCreary County Sheriff – CYE 2006 INTERIM JOINT COMMITTEE Secretary Lassiter stated that Boswell, Bob Leeper, Joey Pendleton, and 2007. ON APPROPRIATIONS AND although revenues were down for Kathy W. Stein, and Ken Winters; From the Personnel Cabinet: REVENUE FY 10, actual receipts increased by Representatives John A. Arnold Jr., 2009 Annual State-Wide Turnover Minutes of the 1st Meeting $27 million as compared to the offi- John “Bam” Carney, C. B. Embry Jr., Per KRS 18A:030(4). of the 2010 Interim cial Consensus Forecast Group (CFG) Richard Henderson, Charlie Hoff- July 22, 2010 From Kentucky Employers’ Mu- estimate. The CFG estimate for FY man, Martha Jane King, Fred Nesler, tual Insurance: Quarterly Statement Call to Order and Roll Call 10 was $8,197 million and the ac- Don Pasley, Steven Rudy, and Wilson and Financial Status for the periods The 1st meeting of the Interim tual revenues received for FY 10 were Stone. ending March 31, 2010. Joint Committee on Appropriations $8,225 million. The CFG estimates Guests: Representative Will From the Department of Educa- and Revenue was held on Thursday, for FY 11 are $8,570 million and Coursey; Keith Tapp, Webster Coun- tion: Initial Plan – Unified Strategy July 22, 2010, at 1:00 PM, in Room $8,871 for FY 12. The General Fund ty; Mike Burchett, Calloway County; for College and Career Readiness, 154 of the Capitol Annex. Represen- is not expected to recover to FY 08 Warren Beeler, Kentucky Department pursuant to 2009 SB 1. tative Rick Rand, Chair, called the levels until the close of FY 12. of Agriculture; and Dave Maples, From the Personnel Cabinet: meeting to order, and the secretary Secretary Lassiter discussed the Kentucky Cattleman’s Association. 2010 First Quarter Turnover Report. called the roll. General Fund FY 10 yearend balance. LRC Staff: Biff Baker, Lowell From the Tourism, Arts, and Present were: The General Fund closed FY 10 with a Atchley, and Susan Spoonamore, Heritage Cabinet: Kentucky State Members: Senator Bob Leeper, surplus of $29.7 million. The surplus Committee Assistant. Parks Financial and Operations Stra- Co-Chair; Representative Rick Rand, resulted from revenues in excess of Keith Tapp and Mike Burchett, tegic Plan. Co-Chair; Senators David E. Boswell, enacted estimates, fund transfers in members of the Kentucky Soybean From the Cabinet for Health and Tom Buford, Denise Harper Angel, Er- excess of those budgeted and various Association (KSA), talked about Family Services: 2009 Report on In- nie Harris, Jimmy Higdon, Alice Forgy lapses. An overview was provided of changes to the industry, especially terstate Sharing of KASPER Data. Kerr, Vernie McGaha, R.J. Palmer II, the FY 10 shortfalls, and Secretary technology advances. Because of From the Kentucky Commission Joey Pendleton, Tim Shaughnessy, Lassiter stated that any surplus will technology, farmers are able to use on the Deaf and Hard of Hearing: Brandon Smith, Gary Tapp, Elizabeth be applied to necessary government the entire soybean for biodiesel, Telecommunications Access Program Tori, and Jack Westwood; Represen- expenses (NGE) and to replenish the food, and grain – no part is wasted. Annual Report, FY 10. tatives Royce W. Adams, Dwight D. Budget Reserve Trust Fund, which Mr. Burchett explained that the From the Energy and Environ- Butler, Jesse Crenshaw, Mike Den- currently has a $0 balance. KSA is working with other farm or- ment Cabinet, Division of Waste ham, Bob M. DeWeese, Danny Ford, Necessary Government Expens- ganizations and commodities to pro- Management: Biennial Report on Derrick Graham, Jimmie Lee, Lonnie es vide a united front on farming issues. Revenues and Expenditures of the Napier, Fred Nesler, Sannie Overly, Secretary Lassiter discussed nec- He and Mr. Tapp both thanked the Hazardous Waste Management Fund, Don Pasley, Marie Rader, Jody Rich- essary government expenses (NGE), members for creating The Livestock FY 09 and FY 10. ards, Charles Siler, Arnold Simpson, explaining that the executive branch Care Commission (HB 398). From the Kentucky Legislative Tommy Thompson, Tommy Turner, has the authority to spend funds for In response to questioning, Mr. Ethics Commission: Recommended Jim Wayne, Alecia Webb-Edgington, certain expenses as provided in the Burchett stated that the soybean Changes to the Kentucky Code of Ron Weston, and Brent Yonts. budget, but that no actual funds have checkoff is working well. The money Legislative Ethics. Guests: Ms. Mary Lassiter, Sec- been appropriated for these purpos- is used to promote the soybean in- From the Kentucky Judicial Form retary of the Governor’s Executive es. Funds to cover NGE come from dustry, including organic soybeans, Retirement System: Operating State- Cabinet and State Budget Director, the General Fund Surplus Account, though organic beans are a small ment of the Kentucky Judicial Retire- Mr. John Hicks, Deputy State Budget the Budget Reserve Trust Fund, or if niche market; most of the harvest- ment Fund for FY 09-10 and Oper- Director, and Mr. Greg Harkenrider, these sources are insufficient, other ed soybean goes into making bean ating Statement of the Kentucky Deputy Executive Director for Finan- cuts must be made to accommodate

THE KENTUCKY GENERAL ASSEMBLY  the expenses. Total NGE for FY 10 United States. As of yet, Kentucky Minutes of the 1st Meeting Ms. Yeast stated the park employees was $38.9 million, with $25.3 mil- has not had to make deep cuts to of the 2010 Interim will be furloughed for the six days re- lion of that amount within Military education or lay off large numbers July 22, 2010 quired by the Executive Branch em- Affairs to cover expenses related to of state employees, so Kentucky is Call to Order and Roll Call ployees, along with their hours being the ice storm and other disasters and relatively better off than many other The 1st meeting of the Budget reduced from 40 to 37.5 hours per emergencies. She then provided fur- states. She also noted that bond rat- Review Subcommittee on Economic week. She further explained the De- ther details regarding the NGE relat- ing agencies will likely look negatively Development and Tourism, Natural partment had already placed the re- ing to natural disasters in the state. upon the state having a $0 balance in Resources and Environmental Protec- duction in hours in the strategic plan Secretary Lassiter also provided a de- the Budget Reserve Trust Fund which tion of the Interim Joint Committee before the mandatory furloughs were tailed accounting of authorized NGE could affect our bond rating, but cur- on Appropriations and Revenue was put in place, therefore the employees for FY 10 – 12, which include funds rently the state bond rating is solid. held on Thursday, July 22, 2010, at will unfortunately have to endure for debt service for a 4th State Vet- In response to a question from 10:30 AM, in Room 129 of the Capi- both cutbacks. eran’s nursing home, disaster match Representative Thompson, Secretary tol Annex. Representative John A. In response to a question asked money, judgments, forest fire sup- Lassiter stated that it is difficult to Arnold Jr., Chair, called the meeting by Representative Rand, Secretary pression, emergency repairs, and var- predict if or when the state will re- to order, and the secretary called the Sparrow stated it was the Cabinet ious other necessary state expenses. ceive additional FMAP monies from roll. wishes to have one company take The unbudgeted lapses for FY 10 to- the federal government. The impact Present were: over the concessions at the parks tal $15.2 million. of not receiving the expected $238 Members: Senator Brandon instead of having several different Road Fund FY 10 year end up- million would be severe. Smith, Co-Chair; Representative John companies involved. That company date In response to a question from A. Arnold Jr., Co-Chair; Representa- would be the one to obtain a liquor Secretary Lassiter provided an Representative Adams, Secretary tives Tim Firkins, Dennis Horlander, license and not the agency. update regarding the FY 10 Road Lassiter noted that all NGE are re- Dennis Keene, Ruth Ann Palumbo, In response to a question asked Fund. The year end revenues were ported by communication to the A & Marie Rader, Rick Rand, Fitz Steele, by Representative Steele, Commis- $1,206.6 million, which was an in- R committee but the expenditures do Jim Stewart III, and Susan Westrom. sioner van der Meer stated in the past crease of 1.2% from FY 09. This was not go through the Contract Review Guests: Ms. Marcheta Sparrow, the Parks administration have taken $7.5 million more than the CFG esti- committee process because most, Secretary of the Tourism, Arts and approximately $758,000 in volun- mate of $1,199.1 million. The Road in not all NGE are not done by con- Heritage Cabinet; Mr. Gerry van der tary payroll reductions. Ms. Yeast Fund is expected to return to FY 08 tract. Meer, Commissioner of the Depart- also stated the Parks administration levels by FY 11. The ending balance In response to questions from ment of Parks; Ms. Tiffany Yeast, Ex- will have further reductions through for FY 10 resulted in a surplus of Senator Shaughnessy, Secretary Las- ecutive Director of Personnel and Ms. the upcoming furloughs. Representa- $41.9. These funds will be deposited siter replied that about $900,000 Mona Juett, Governmental Relations tive Steele requested a copy of any into the State Construction Account has been appropriated for security at Director of the Tourism, Arts and further voluntary reductions in pay in accordance with the HB 1 Road the World Equestrian Games. These Heritage Cabinet. to be given to the committee. Fund Surplus Expenditure Plan. funds have been directly appropri- Representative Palumbo stated General Fund and Road Fund ated and will not count as NGE. She LRC Staff: Debra Gabbard, Bart she appreciates the Cabinet and De- debt restructuring said that most state agencies have Hardin, Kelly Dudley, Melissa Hagan, partment and their good attitude and Secretary Lassiter discussed debt experienced cuts through budget re- Perry Papka, and Christina Williams. effort towards making reductions. restructuring, stating that restructur- ductions and have implemented effi- Chairman Arnold introduced In response to a question asked ing outstanding liabilities will realize ciencies to the extent possible with- Senator Brandon Smith as the new by Representative Stewart as to why debt service savings over the bien- out dramatically affecting services. Co-Chair of the committee. private vendors were being brought nium. The principal only is amortized Secretary Lassiter replied to Overview of Tourism, Arts and in and if they were cheaper, Commis- over the remaining life of the existing questions by Chairman Rand stating Heritage Cabinet’s Financial and Op- sioner van der Meer stated they have debt to gain upfront savings which that the total budget reduction for erations Strategic Plan, and Planned greater purchasing power, they have can be used to keep from cutting pri- implemented efficiency measures has Changes to Parks System operational efficiencies, and they ority expenditures. Secretary Lassiter been $131 million and the executive Ms. Marcheta Sparrow, Secretary have the marketing knowledge and noted that unfortunately, this strat- branch is still actively trying to iden- of the Tourism, Arts and Heritage expertise that would not otherwise egy does increase costs in the long tify areas where additional efficien- Cabinet. Secretary Sparrow gave a be utilized within the parks. term and can be viewed negatively cies can be implemented. Mr. Harken- brief overview of the Agency’s Finan- Representative Stewart stated by debt rating agencies. Restructur- rider addressed a question regarding cial and Operations Strategic Plan. that the parks system should be com- ing efforts will realize savings to the the gasoline tax stating that the total Secretary Sparrow and Mr. Gerry van municating with schools and teach- General Fund of $162.8 million in FY fuel rate has increased to 25.9 cents der Meer, Commissioner of the De- ers to indicate the parks are open for 10, $139.8million in FY 11, and ap- per gallon, but the increase will not partment of Parks, discussed the field trips and overnight stays and in proximately $130.0 million in FY 12. show up until the August receipts. planned changes to the Parks system turn the parents of these kids will The Road Fund will realize savings of Secretary Lassiter then gave a brief and their impact on the Agency’s be knowledgeable of the parks op- $81.4 million in FY 10, $52.0 million overview of the economic indicators budget. erations as well. Secretary Sparrow in FY 11, and $53.0 million in FY 12. which her office will watch over the Representative Rand stated he stated that was a good suggestion, In response to a question from next biennium. appreciated the Cabinet and Depart- and the Cabinet will work on a way Representative Pasley, Secretary Las- The meeting was adjourned at ment for all they have done concern- to communicate with schools and siter stated that all savings gained 2:15 p.m. ing the strategic plan. present the outcome and develop- from planned furloughs of Transpor- In response to a question Rep- ment of the idea at the next commit- tation Cabinet employees will remain INTERIM JOINT COMMITTEE resentative Rand asked, Secretary tee meeting. within the Road Fund. ON APPROPRIATIONS AND Sparrow reiterated that alcohol sales In response to a question asked Secretary Lassiter replied to REVENUE in General Butler State Park will oc- by Representative Keene concern- questions from Senator Boswell by Budget Review Subcommittee on cur in the convention center and golf ing outsourcing lawn work on the saying that it is difficult to compare Economic Development and Tourism, course area only and that no visitors grounds of the parks, Secretary Kentucky’s economic status to other Natural Resources and will be allowed to bring their own al- Sparrow stated the Cabinet is open Environmental Protection states because of differing govern- cohol into the park. to looking at opportunities such as ment structures. Economic difficul- In response to a follow up ques- that, but has not yet considered that ties are being felt throughout the tion asked by Representative Rand, idea.

10 2010 Interim LEGISLATIVE RECORD Senator Smith stated he is the still needs to be maintained and district use of capital funds for oper- 2012 the department would use the owner of several Shell gas stations held to a high standard through the ating purposes; the status of the re- allotment for that year to reimburse and from personal experience, he outsourcing of these services to pri- view of the classification of primary FY 2011 expenditures. The depart- learned he was not proficient in the vate vendors. She stated it would be and secondary school buildings; and ment has addressed concerns from food aspect of the gas station indus- a shame to lose tourism instead of the status of Category 5 facility proj- superintendents and district finance try, so he leased out space to restau- gaining it. ects. officers by providing the ability to use rants such as Lee’s Famous Recipe, Recognizing Representative Read to Achieve and Math FY 2012 funding to pay for FY 2011 and profits were shared. This practice Rader’s comments, Commissioner Achievement – Funding for 2009- expenses and also allowed flexibility could be beneficial to the parks sys- van der Meer stated there will con- 1010 and 2010-2011 in the RTA and MA funding rules so tem as well. Commissioner van der tinue to be standards put in place Mr. Desai provided a summary of districts may use local funds for part Meer stated that type of system was and guests surveyed to maintain the Read to Achieve (RTA) and Math of the teacher’s salary but have more the Department’s goal. quality food and service within the Achievement (MA) programs. He flexibility or be able to re-direct the Replying to a question asked by parks. said that during the last month the work of the teacher to other instruc- Senator Smith, Ms. Yeast stated that Chairman Arnold thanked the department had talked with many tional activities. there are 101 full time employees staff, members and guests for at- school superintendents and finance Mr. Desai pointed out that when who work in the golf services portion tending the meeting and adjourned officers at the district level and there this program began the intent was of the Department and 107 full time the meeting at 11:26 A.M. was some confusion on how the to have schools funded for five years employees who work in the dining funding would work this year on RTA and new schools would participate services portion of the Department INTERIM JOINT COMMITTEE and MA programs. Hopefully, those and the old schools would roll off that would be privatized because of ON APPROPRIATIONS AND concerns had been addressed since but this was never accomplished. the plan. REVENUE the RTA and MA program funding There are 326 schools in the RTA In response to a question asked Budget Review Subcommittee on had not been reduced. For fiscal year program and 112 in the MA program. by Chairman Arnold, Secretary Spar- Postsecondary Education 2011, the total line-item for fund- None of the schools have rolled off row stated those positions in the Minutes of the 1st Meeting ing was divided by the number of and the same schools continue to be of the 2010 Interim golf and dining services portion of July 22, 2010 schools, and the schools were given a funded. In FY 2011 the department the Department are held by merit Call to Order and Roll Call maximum amount of funding. In fis- will continue to provide funding. He employees, and therefore, the Cabi- The first meeting of the Bud- cal year 2010, the department took also noted that the contract with the net would be responsible for finding get Review Subcommittee on Post- $1.5 million from the line-item allot- University of Indiana to perform an other positions for these employ- secondary Education of the Interim ment for RTA to pay for a third-party assessment of the program has been ees. She further stated the Cabinet Joint Committee on Appropriations assessment of the program, which canceled for FY 2011 so that all the has calculated the figures and even and Revenue was held on Thursday, through the bid process was awarded money for the program will be given though the 208 employees would July 22, 2010, at 10:00 AM, in Room to the University of Indiana. After to the school districts. have to be placed in other positions, 154 of the Capitol Annex. It was a the $1.5 million was taken from the In response to questions by privatizing their positions will still joint meeting with the Budget Re- allotment, districts were reimbursed Representative Thompson, Mr. Desai save money. view Subcommittee on Primary and for fifty percent of their costs for the stated that the $60,000 total fund- In response to a question asked Secondary Education of the Interim previous year and fifty percent for ing for each of the 326 schools has by Representative Westrom, Secre- Joint committee on Appropriations the costs for this year. Therefore, in been frozen since 2006. It was the tary Sparrow stated she has decided and Revenue. Representative Tommy FY 2010 districts were given a total hope of the department that as the not to charge an entry fee for visiting Thompson, Chair, called the meeting of $60,000 of which $30,000 was for RTA program was funded at higher state parks at this time. In response to order, and the secretary called the reimbursement for the prior year and appropriation levels more schools to a question asked by Representa- roll. $30,000 for FY 2010. The department would be brought in, but there have tive Westrom, Secretary Sparrow Present were: also committed to the districts that not been any new schools brought stated Parks has already started im- Members: Senator Vernie Mc- it would reimburse for FY 2011 the into the program. There is no an- plementing the strategic plan. Gaha, Co-Chair; Representative Ar- additional $30,000 of their FY 2010 ticipation that new schools will In response to a question asked nold Simpson, Co-Chair; Represen- costs. Each year the department has come into the program in FY 2011. by Chairman Arnold, Ms. Yeast stated tative Tommy Thompson, Co-Chair; relied on a carryforward which was He said that some superintendents temporary employees would be used Senator Tim Shaughnessy; Represen- not part of the line-item appropria- are still considering whether they in the peak season because demand tatives Reginald Meeks, Jody Rich- tion but funding from the prior year will fund half of the teacher position would be higher, therefore, more em- ards, Carl Rollins II, Kevin Sinnette, which districts had not claimed. from local funds and if that is done, ployees would be needed. She further and Tommy Turner. This has caused complications in the they may choose not to receive the stated the use of temporary employ- Guests: Jonathan Lowe, Jef- program for the last few years. If a funding in 2012 which may allow for ees, rather than seasonal employees ferson County Public Schools; Jim district did not claim reimbursement more monies available for additional would save the state in payment Thompson, Education and Workforce of the amount appropriated for each schools to be brought into the pro- of benefits such as Unemployment Development Cabinet; Terry Holli- school, the surplus would carry for- gram. Mr. Desai also indicated that Insurance benefits or workers com- day, Commissioner, Department of ward into the next year and would some districts that historically had pensation benefits. In response to a Education; Hiren Desai, Associate be divided between the schools for not done so in the past requested re- question asked by Chairman Arnold, Commissioner of Administration and that year. In FY 2010 the carryfor- imbursement at the end of this fiscal Ms. Yeast stated summer jobs would Support, Department of Education; ward ended and the department re- year. In the MA program, so many still be available within the parks and, Kay Kennedy, Director, Division imbursed districts for FY 2010 ex- districts drew money down for ex- through a temporary agency. In re- of District Support, Department of penditures. After reimbursement, penditures that there was no money sponse to a question asked by Chair- Education. $717,000 lapsed back to the General left to pay for MA and monies were man Arnold, Commissioner van der LRC Staff: Tom Willis, Tracy Goff Fund. The department has advised used from the FY 2011 allotment to Meer stated the Department saved Herman, Greg Rush, Linda Ellis, and the districts that $30,000 would be pay for more than fifty percent of the over $2 million in FY 2010. Marlene Rutherford. paid out of the FY 2011 allotment allotment for 2010. He also pointed Representative Rader stated she Mr. Desai and Ms. Kennedy pro- for FY 2010 in the first quarter and out that there is a cutoff date to re- appreciates the Cabinet coming up vided an update on the funding for the balance of funding of $27,500 quest funds for expenditures after with a plan that makes sense. She the Read to Achieve (RTA) and Math for FY 2011. Mr. Desai indicated that the close of a fiscal year. further stated the quality of the food Achievement (MA) programs; local in FY 2011 districts would be given Local District Use of Capital and service within the state parks $27,500 for expenditures and in FY Funds for Operating Purposes

THE KENTUCKY GENERAL ASSEMBLY 11 Ms. Kennedy discussed the lo- with urgent-need funds; and, 4) amounts reflected in the informa- that it would depend on the capac- cal district use of capital funds for whether the district is using 80 per- tion that the districts have requested ity of the vendor(s) to perform the operating purposes. She stated that cent or less of its capital outlay for have not been confirmed by the fi- work across the state. The depart- districts were allowed to request use debt service payments. The depart- nal year-end financial reports. What ment prefers to obtain a single ven- of capital outlay for operating ex- ment reviews information submitted the districts have actually spent in FY dor who would use the same criteria penses for FY 2010 and that during by the districts with its information 2010 would not be verified until later across the state but at this time it is the 2009-2010 school year, requests in the facility plans and in the annual in the school year when reviewed by unknown how many vendors the de- were of such a nature that there was financial reports. Ms. Kennedy stat- the department. partment will be able to obtain. The very little impact to the actual capi- ed that the department had received Ms. Kennedy responded to department wants the evaluations to tal project funding. For capital out- requests from eleven districts that questions asked by Representative be consistent and objective so the lay the approval process was lenient have indicated an interest in utilizing Sims, stating that when districts go department can make decisions and to allow the districts to receive the funds in this manner for the upcom- through their planning process they not have local district involvement. operating funds. The department ing year. evaluate different parts of a school Ms. Kennedy stated the importance developed stringent guidelines for Status of the Review of the Clas- building such as the roof, heating of quality control measures included requesting the use of capital funds sification of Primary and Secondary and cooling, or flooring, and as those in the process that would allow a re- for FY 2011 and FY 2012. House Bill School Buildings (HB 1 2010 Extraor- areas are renovated over time it does view of the evaluation for consisten- 1, passed by the 2010 Extraordinary dinary Session) impact the overall categorization of cy. She also indicated that a software Session of the General Assembly, al- Ms. Kennedy pointed out that the building. A district may have vendor would be separate from a ven- lowed flexibility in the use of all lo- the General Assembly allocated $2.5 an old building but as renovations dor that would perform the evalua- cal district capital funds without million to review the classification and upgrades have been done with- tion but both components could be forfeiting the district’s eligibility to of primary and secondary school in the building, the building itself is included in a single RFP to streamline participate in the School Facilities buildings and that the department is not categorized at a higher number. the process and allow vendors to bid Construction Commission (SFCC) considering this review as a capital The district does perform a regularly on separate or both items. program. Districts that meet certain project. The RFP is on target to be scheduled planning process which There was discussion of informa- criteria outlined in those guidelines issued in January 2011, with imple- includes evaluation by their local tion systems personnel developing may request the use of any capital mentation by July 1, 2011. She said architect for information on the dif- the software to maintain the rating funds for general operating expenses. that the RFP will seek to procure ser- ferent areas of the building that do and evaluation system of district fa- The process becomes more involved vices from a third-party vendor to contribute to the final categorization cilities. Ms. Kennedy stated that any because the department not only has perform the review as well as make number. decision to purchase versus build a to consider capital outlay funds, but recommendations for procurement of In response to questions posed system is a cost benefit analysis. An construction funds and SFCC funds. a software system that will allow the by Representative Miller, Ms. Ken- in-house design/build process would A Capital Funds Request Form has department to maintain the rating nedy indicated that gymnasiums lengthen the time to create the sys- also been developed by the depart- and evaluation system of the district would be included in the evaluations tem. If there is software available ment that districts need to complete facilities. as they are a part of the facility plan. that meets the needs, even though in order to consider how those funds Members of the Committee District facility planning includes a it may need to be customized, may will impact the district’s total finan- were concerned about any role that local planning committee composed be more cost effective because of the cial picture relative to other capital school districts may have in the re- of central office staff, parents, board time factor. projects. view and recommendation in clas- members, etc. who approve the plan. Senator Shaughnessy stated In response to a request for clar- sifying school buildings in their dis- As the district proposes projects that he felt it important that the ification by Representative Meeks, tricts and emphasized that review of they are weighed against the plan. Committee not lose sight of the way Ms. Kennedy pointed out that there all buildings in all counties needs to If a project has not been prioritized in which various districts participate are three different funds in the capi- be done objectively and with consis- in the community, the department at the local level in terms of funding. tal outlay area: capital outlay; build- tency and that the same guidelines weighs that project against the facili- Some communities at the local level ing fund monies; and, construction should be utilized in all districts for ty plan and works with the district to have not contributed to the same ex- funds specific to projects. The capital the evaluation. Ms. Kennedy stated make sure it is addressing the highest tent as others. Representative Rich- outlay funds come directly from the it was the intention of the depart- needs first. ards commented that there is a per- SEEK allocation at $100 per student. ment to solicit the services of a ven- Responding to a questioned ceived lack of fairness in how schools Those funds were designated in FY dor to provide the department with posed by Representative Rollins, Ms. are evaluated and would hope that 2010 to be used for general operating data, adding that typically within a Kennedy indicated it was her under- before the process advances too far expenses. In FY 2011, the concept RFP a limit is placed on subcontracts. standing that an architect performs that the department would provide expanded to the building fund mon- The department wants a fair and ob- the evaluation, whether on staff with a report on how the process is pro- ies that come directly from the Fa- jective evaluation. The department’s the district or an architectural firm gressing so the Committee can de- cilities Support Program of Kentucky concern is to have data that can be hired by a district. At this time there termine that the districts are treated (FSPK), facilities nickel, and the con- maintained over time that continues is no provision for the department to equitably and fairly. Representative struction fund from which funds are the objective look at the facilities and perform an evaluation. Ms. Kennedy Stevens echoed the comments made allotted when construction begins how they change over time. indicated that the department un- by Senator Shaughnessy and Repre- on particular projects. She also indi- In response to comments and derstands very clearly the concerns sentative Richards and emphasized cated that the department considers questions by Representative Meeks of the committee and as the RFP is that there needs to be consistency the capital needs for a particular dis- concerning the Capital Outlay Re- being written the department would and all schools districts should be trict. Before a district requests the quests for FY 2010, Ms. Kennedy want a vendor to respond as to how evaluated by the same guidelines. use of capital funds they are asked to stated that the percentage column they could create an objective evalu- Representative Rollins noted consider four items in the guidelines: is for comparison and describes the ation system or process across the that the taxable property or revenue 1) whether the district has school fa- ratio of what was requested by the state. She indicated that the depart- streams are more available in some cilities classified as a Category 5 on district in 2009-10 to the actual ment will balance as best it can the districts, and some local districts the May 18, 2010 list; 2) whether 2009-10 allocation. It does not take control and uniformity in the evalua- cannot raise the money necessary to the district has school facilities clas- into consideration any previous bal- tions of all school buildings. update, build, or replace Category 5 sified as Category 4 or 5; 3) whether ance in the account which may have In response to comments by schools. the district currently has a project reflected more money available. She Senator McGaha as to how many ven- In summary, Chair Thompson in whole or in part which is funded cautioned the committee that the dors would be used, Mr. Desai stated indicated that this is a very impor-

12 2010 Interim LEGISLATIVE RECORD tant topic with the Committee and the fiscal managers will be working however, historically those programs the status of Category 5 facility proj- Legislature, and urged the depart- with the districts to take advantage have been funded at those levels. He ects. ment to consider accelerating the of those funding options. Chair pointed out that in 2008 funding for Read to Achieve and Math RFP and issuing it before the January Thompson stated that it is important RTA was at about $23 million and Achievement – Funding for 2009- target date, and that the Committee that the districts have some equity MA was at $7 million, but as a result 1010 and 2010-2011 on Postsecondary Education (CPE) in the process and that the second of budget reductions the funding lev- Mr. Desai provided a summary of model be reviewed and considered. nickel is important. He said the Com- els are lower. Representative Stevens the Read to Achieve (RTA) and Math The objective is to have a firm per- mittee looks forward to updates on noted that improving math skills of Achievement (MA) programs. He form an analysis on standard criteria how the process is progressing. students relates to the ability of stu- said that during the last month the and a creditable ranking of the condi- Chair Thompson requested a dents to be able to read and it is not department had talked with many tions of all the schools in the state. brief explanation of restructuring as big a disparity as it appears. school superintendents and finance Status of Category 5 Facility within the department. Mr. Desai There being no further business officers at the district level and there Projects (HB 1 2010 Extraordinary stated that furloughing of employees before the Committee, the meeting was some confusion on how the Session) is being handled by the Personnel was adjourned at 11:30 AM. funding would work this year on RTA In order to be eligible for Cate- Cabinet, adding that the furloughs and MA programs. Hopefully, those gory 5 funding, a school district must will not affect school district employ- INTERIM JOINT COMMITTEE concerns had been addressed since have had a school facility classified ees. The department is working with ON APPROPRIATIONS AND the RTA and MA program funding as a Category 5 on May 18, 2010, the cabinet to identify time frames REVENUE had not been reduced. For fiscal year which was identified in the 2010 Ex- that the department can furlough Budget Review Subcommittee on 2011, the total line-item for fund- traordinary Session. Ms. Kennedy employees with the least impact on Primary and Secondary Education ing was divided by the number of updated the Committee on the prog- school districts. He said that the Minutes of the 1st Meeting schools, and the schools were given a of the 2010 Interim ress of those districts in addressing department is now working under July 22, 2010 maximum amount of funding. In fis- their facilities needs. She explained a new organizational structure and Call to Order and Roll Call cal year 2010, the department took the second nickel and project status that information would be shared The first meeting of the Budget $1.5 million from the line-item allot- reflected on the project update list with Committee members and staff Review Subcommittee on Primary ment for RTA to pay for a third-party provided to the Committee. Levying at a later date. He said that the de- and Secondary Education of the In- assessment of the program, which a second nickel is a process that goes partment was reorganized to focus terim Joint Committee on Appro- through the bid process was awarded through a normal tax levy process that on Senate Bill 1 as a priority and to priations and Revenue was held on to the University of Indiana. After is overseen by the department each reduce costs in response to budget Thursday, July 22, 2010, at 10:00 the $1.5 million was taken from the year. Once assessments are received reductions. The department is flat- AM, in Room 154 of the Capitol An- allotment, districts were reimbursed by the Department of Revenue, the tening the organization, reducing the nex. It was a joint meeting with the for fifty percent of their costs for the Department of Education issues back number of managers from 35 to 23, Budget Review Subcommittee on previous year and fifty percent for to the districts their tax options for abolishing the two deputy commis- Postsecondary Education of the In- the costs for this year. Therefore, in the upcoming year. She noted that sioner positions (the department is terim Joint Committee on Appropri- FY 2010 districts were given a total the taxation process is just beginning considering having a chief of staff to ations and Revenue. Representative of $60,000 of which $30,000 was for for the districts with classified facili- assist the commissioner), reducing Tommy Thompson, Chair, called the reimbursement for the prior year and ties on May 18, 2010 that have the the number of eight associate com- meeting to order, and the secretary $30,000 for FY 2010. The department authority to levy the second nickel. missioners to six, and reducing the called the roll. also committed to the districts that A district must levy a second nickel number of directors from 24 to 16. Present were: it would reimburse for FY 2011 the before status equalization can occur. All are non-merit reductions, and no Members: Senator Vernie Mc- additional $30,000 of their FY 2010 She brought to the Committee’s at- merit employees would be affected. Gaha, Co-Chair; Representative Ar- costs. Each year the department has tention correspondence sent to the He said that duties and responsibili- nold Simpson, Co-Chair; Represen- relied on a carryforward which was Category 5 facility projects districts ties may need to be further redirected tative Tommy Thompson, Co-Chair; not part of the line-item appropria- setting out guidelines on how to get to focus on Senate Bill 1. Senator Tim Shaughnessy; Represen- tion but funding from the prior year funding for their Category 5 projects, In response to a question by tatives Reginald Meeks, Jody Rich- which districts had not claimed. the process to follow in order to levy Chair Thompson concerning the ards, Carl Rollins II, Kevin Sinnette, This has caused complications in the their second nickel, and a summary Race to the Top competition, Mr. and Tommy Turner. program for the last few years. If a of the Category 5 facility projects list Desai said that hopefully the depart- Guests: Jonathan Lowe, Jef- district did not claim reimbursement which was considered by the General ment would know the state’s status ferson County Public Schools; Jim of the amount appropriated for each Assembly during the 2010 Extraordi- by the end of July and would update Thompson, Education and Workforce school, the surplus would carry for- nary Session. She said the depart- the Committee. Development Cabinet; Terry Holli- ward into the next year and would ment will also be sending an e-mail In earlier discussions about the day, Commissioner, Department of be divided between the schools for (draft provided) as part of its normal lapsing of RTA and MA funds, Chair Education; Hiren Desai, Associate that year. In FY 2010 the carryfor- tax levy process so the district will Thompson asked if there were oth- Commissioner of Administration and ward ended and the department re- further understand the options they er any other programs that did not Support, Department of Education; imbursed districts for FY 2010 ex- have to levy the second nickel for request all funds which would then and, Kay Kennedy, Director, Division penditures. After reimbursement, funding the Category 5 facilities. lapse to the General Fund. Mr. De- of District Support, Department of $717,000 lapsed back to the General In response to a question by sai said that there was some money Education. Fund. The department has advised Chair Thompson, Ms. Kennedy indi- left in the health insurance and life LRC Staff: Tom Willis, Tracy Goff the districts that $30,000 would be cated that the schools on the Cat- insurance funds that lapsed. Herman, Greg Rush, Linda Ellis, and paid out of the FY 2011 allotment egory 5 list must first levy the sec- Representative Richards not- Marlene Rutherford. for FY 2010 in the first quarter and ond nickel in order to be eligible for ed that there is a disparity in math Mr. Desai and Ms. Kennedy pro- the balance of funding of $27,500 the equalization. She also pointed funds being spent. Mr. Desai said vided an update on the funding for for FY 2011. Mr. Desai indicated that out that there are some attrac- that the funding received for RTA is the Read to Achieve (RTA) and Math in FY 2011 districts would be given tive funding options available with under $20 million per year and the Achievement (MA) programs; local $27,500 for expenditures and in FY the Qualified School Construction funding for MA is under $6 million district use of capital funds for oper- 2012 the department would use the Bonds (QSCBs), the Qualified Zone per year. Both programs are impor- ating purposes; the status of the re- allotment for that year to reimburse Academy Bonds (QZABs), and the tant and the department would like view of the classification of primary FY 2011 expenditures. The depart- Build America Bonds (BABs), which to see both funded at higher levels; and secondary school buildings; and ment has addressed concerns from

THE KENTUCKY GENERAL ASSEMBLY 13 superintendents and district finance of capital outlay for operating ex- debt service payments. The depart- nal year-end financial reports. What officers by providing the ability to use penses for FY 2010 and that during ment reviews information submitted the districts have actually spent in FY FY 2012 funding to pay for FY 2011 the 2009-2010 school year, requests by the districts with its information 2010 would not be verified until later expenses and also allowed flexibility were of such a nature that there was in the facility plans and in the annual in the school year when reviewed by in the RTA and MA funding rules so very little impact to the actual capi- financial reports. Ms. Kennedy stat- the department. districts may use local funds for part tal project funding. For capital out- ed that the department had received Ms. Kennedy responded to of the teacher’s salary but have more lay the approval process was lenient requests from eleven districts that questions asked by Representative flexibility or be able to re-direct the to allow the districts to receive the have indicated an interest in utilizing Sims, stating that when districts go work of the teacher to other instruc- operating funds. The department funds in this manner for the upcom- through their planning process they tional activities. developed stringent guidelines for ing year. evaluate different parts of a school Mr. Desai pointed out that when requesting the use of capital funds Status of the Review of the Clas- building such as the roof, heating this program began the intent was for FY 2011 and FY 2012. House Bill sification of Primary and Secondary and cooling, or flooring, and as those to have schools funded for five years 1, passed by the 2010 Extraordinary School Buildings (HB 1 2010 Extraor- areas are renovated over time it does and new schools would participate Session of the General Assembly, al- dinary Session) impact the overall categorization of and the old schools would roll off lowed flexibility in the use of all lo- Ms. Kennedy pointed out that the building. A district may have but this was never accomplished. cal district capital funds without the General Assembly allocated $2.5 an old building but as renovations There are 326 schools in the RTA forfeiting the district’s eligibility to million to review the classification and upgrades have been done with- program and 112 in the MA program. participate in the School Facilities of primary and secondary school in the building, the building itself is None of the schools have rolled off Construction Commission (SFCC) buildings and that the department is not categorized at a higher number. and the same schools continue to be program. Districts that meet certain considering this review as a capital The district does perform a regularly funded. In FY 2011 the department criteria outlined in those guidelines project. The RFP is on target to be scheduled planning process which will continue to provide funding. He may request the use of any capital issued in January 2011, with imple- includes evaluation by their local also noted that the contract with the funds for general operating expenses. mentation by July 1, 2011. She said architect for information on the dif- University of Indiana to perform an The process becomes more involved that the RFP will seek to procure ser- ferent areas of the building that do assessment of the program has been because the department not only has vices from a third-party vendor to contribute to the final categorization canceled for FY 2011 so that all the to consider capital outlay funds, but perform the review as well as make number. money for the program will be given construction funds and SFCC funds. recommendations for procurement of In response to questions posed to the school districts. A Capital Funds Request Form has a software system that will allow the by Representative Miller, Ms. Ken- In response to questions by also been developed by the depart- department to maintain the rating nedy indicated that gymnasiums Representative Thompson, Mr. Desai ment that districts need to complete and evaluation system of the district would be included in the evaluations stated that the $60,000 total fund- in order to consider how those funds facilities. as they are a part of the facility plan. ing for each of the 326 schools has will impact the district’s total finan- Members of the Committee District facility planning includes a been frozen since 2006. It was the cial picture relative to other capital were concerned about any role that local planning committee composed hope of the department that as the projects. school districts may have in the re- of central office staff, parents, board RTA program was funded at higher In response to a request for clar- view and recommendation in clas- members, etc. who approve the plan. appropriation levels more schools ification by Representative Meeks, sifying school buildings in their dis- As the district proposes projects would be brought in, but there have Ms. Kennedy pointed out that there tricts and emphasized that review of they are weighed against the plan. not been any new schools brought are three different funds in the capi- all buildings in all counties needs to If a project has not been prioritized into the program. There is no an- tal outlay area: capital outlay; build- be done objectively and with consis- in the community, the department ticipation that new schools will ing fund monies; and, construction tency and that the same guidelines weighs that project against the facili- come into the program in FY 2011. funds specific to projects. The capital should be utilized in all districts for ty plan and works with the district to He said that some superintendents outlay funds come directly from the the evaluation. Ms. Kennedy stated make sure it is addressing the highest are still considering whether they SEEK allocation at $100 per student. it was the intention of the depart- needs first. will fund half of the teacher position Those funds were designated in FY ment to solicit the services of a ven- Responding to a questioned from local funds and if that is done, 2010 to be used for general operating dor to provide the department with posed by Representative Rollins, Ms. they may choose not to receive the expenses. In FY 2011, the concept data, adding that typically within a Kennedy indicated it was her under- funding in 2012 which may allow for expanded to the building fund mon- RFP a limit is placed on subcontracts. standing that an architect performs more monies available for additional ies that come directly from the Fa- The department wants a fair and ob- the evaluation, whether on staff with schools to be brought into the pro- cilities Support Program of Kentucky jective evaluation. The department’s the district or an architectural firm gram. Mr. Desai also indicated that (FSPK), facilities nickel, and the con- concern is to have data that can be hired by a district. At this time there some districts that historically had struction fund from which funds are maintained over time that continues is no provision for the department to not done so in the past requested re- allotted when construction begins the objective look at the facilities and perform an evaluation. Ms. Kennedy imbursement at the end of this fiscal on particular projects. She also indi- how they change over time. indicated that the department un- year. In the MA program, so many cated that the department considers In response to comments and derstands very clearly the concerns districts drew money down for ex- the capital needs for a particular dis- questions by Representative Meeks of the committee and as the RFP is penditures that there was no money trict. Before a district requests the concerning the Capital Outlay Re- being written the department would left to pay for MA and monies were use of capital funds they are asked to quests for FY 2010, Ms. Kennedy want a vendor to respond as to how used from the FY 2011 allotment to consider four items in the guidelines: stated that the percentage column they could create an objective evalu- pay for more than fifty percent of the 1) whether the district has school fa- is for comparison and describes the ation system or process across the allotment for 2010. He also pointed cilities classified as a Category 5 on ratio of what was requested by the state. She indicated that the depart- out that there is a cutoff date to re- the May 18, 2010 list; 2) whether district in 2009-10 to the actual ment will balance as best it can the quest funds for expenditures after the district has school facilities clas- 2009-10 allocation. It does not take control and uniformity in the evalua- the close of a fiscal year. sified as Category 4 or 5; 3) whether into consideration any previous bal- tions of all school buildings. Local District Use of Capital the district currently has a project ance in the account which may have In response to comments by Funds for Operating Purposes in whole or in part which is funded reflected more money available. She Senator McGaha as to how many ven- Ms. Kennedy discussed the lo- with urgent-need funds; and, 4) cautioned the committee that the dors would be used, Mr. Desai stated cal district use of capital funds for whether the district is using 80 per- amounts reflected in the informa- that it would depend on the capac- operating purposes. She stated that cent or less of its capital outlay for tion that the districts have requested ity of the vendor(s) to perform the districts were allowed to request use have not been confirmed by the fi- work across the state. The depart-

14 2010 Interim LEGISLATIVE RECORD ment prefers to obtain a single ven- RFP and issuing it before the January Thompson stated that it is important RTA was at about $23 million and dor who would use the same criteria target date, and that the Committee that the districts have some equity MA was at $7 million, but as a result across the state but at this time it is on Postsecondary Education (CPE) in the process and that the second of budget reductions the funding lev- unknown how many vendors the de- model be reviewed and considered. nickel is important. He said the Com- els are lower. Representative Stevens partment will be able to obtain. The The objective is to have a firm per- mittee looks forward to updates on noted that improving math skills of department wants the evaluations to form an analysis on standard criteria how the process is progressing. students relates to the ability of stu- be consistent and objective so the and a creditable ranking of the condi- Chair Thompson requested a dents to be able to read and it is not department can make decisions and tions of all the schools in the state. brief explanation of restructuring as big a disparity as it appears. not have local district involvement. Status of Category 5 Facility within the department. Mr. Desai There being no further business Ms. Kennedy stated the importance Projects (HB 1 2010 Extraordinary stated that furloughing of employees before the Committee, the meeting of quality control measures included Session) is being handled by the Personnel was adjourned at 11:30 AM. in the process that would allow a re- In order to be eligible for Cate- Cabinet, adding that the furloughs view of the evaluation for consisten- gory 5 funding, a school district must will not affect school district employ- INTERIM JOINT COMMITTEE cy. She also indicated that a software have had a school facility classified ees. The department is working with ON APPROPRIATIONS AND vendor would be separate from a ven- as a Category 5 on May 18, 2010, the cabinet to identify time frames REVENUE dor that would perform the evalua- which was identified in the 2010 Ex- that the department can furlough Budget Review Subcommittee on tion but both components could be traordinary Session. Ms. Kennedy employees with the least impact on Transportation included in a single RFP to streamline updated the Committee on the prog- school districts. He said that the Minutes of the 1st Meeting of the 2010 Interim the process and allow vendors to bid ress of those districts in addressing department is now working under July 22, 2010 on separate or both items. their facilities needs. She explained a new organizational structure and Call to Order and Roll Call There was discussion of informa- the second nickel and project status that information would be shared The first meeting of the Budget tion systems personnel developing reflected on the project update list with Committee members and staff Review Subcommittee on Transpor- the software to maintain the rating provided to the Committee. Levying at a later date. He said that the de- tation of the Interim Joint Commit- and evaluation system of district fa- a second nickel is a process that goes partment was reorganized to focus tee on Appropriations and Revenue cilities. Ms. Kennedy stated that any through a normal tax levy process that on Senate Bill 1 as a priority and to was held on Thursday, July 22, 2010, decision to purchase versus build a is overseen by the department each reduce costs in response to budget at 10:00 AM, in Room 131 of the system is a cost benefit analysis. An year. Once assessments are received reductions. The department is flat- Capitol Annex. Representative San- in-house design/build process would by the Department of Revenue, the tening the organization, reducing the nie Overly, Chair, called the meeting lengthen the time to create the sys- Department of Education issues back number of managers from 35 to 23, to order, and the secretary called the tem. If there is software available to the districts their tax options for abolishing the two deputy commis- roll. that meets the needs, even though the upcoming year. She noted that sioner positions (the department is Present were: it may need to be customized, may the taxation process is just beginning considering having a chief of staff to Members: Representative Sannie be more cost effective because of the for the districts with classified facili- assist the commissioner), reducing Overly, Co-Chair; Senator R.J. Palmer time factor. ties on May 18, 2010 that have the the number of eight associate com- II; Representatives Eddie Ballard, Hu- Senator Shaughnessy stated authority to levy the second nickel. missioners to six, and reducing the bert Collins, Tim Couch, Danny Ford, that he felt it important that the A district must levy a second nickel number of directors from 24 to 16. Richard Henderson, Fred Nesler, Don Committee not lose sight of the way before status equalization can occur. All are non-merit reductions, and no Pasley, and Ron Weston. in which various districts participate She brought to the Committee’s at- merit employees would be affected. Guests: Representative Jimmie at the local level in terms of funding. tention correspondence sent to the He said that duties and responsibili- Lee; Mike Hancock, Cabinet Secre- Some communities at the local level Category 5 facility projects districts ties may need to be further redirected tary, and Tammy Branham, Executive have not contributed to the same ex- setting out guidelines on how to get to focus on Senate Bill 1. Director, Office of Budget and Fiscal tent as others. Representative Rich- funding for their Category 5 projects, In response to a question by Management, Transportation Cabi- ards commented that there is a per- the process to follow in order to levy Chair Thompson concerning the net. ceived lack of fairness in how schools their second nickel, and a summary Race to the Top competition, Mr. LRC Staff: Stephanie Craycraft, are evaluated and would hope that of the Category 5 facility projects list Desai said that hopefully the depart- Stewart Willis, and Spring Emerson. before the process advances too far which was considered by the General ment would know the state’s status Update on Road Fund that the department would provide Assembly during the 2010 Extraordi- by the end of July and would update Following a brief overview of Ac- a report on how the process is pro- nary Session. She said the depart- the Committee. tual Receipts vs. Consensus Forecast- gressing so the Committee can de- ment will also be sending an e-mail In earlier discussions about the ing Group Estimates, in response to a termine that the districts are treated (draft provided) as part of its normal lapsing of RTA and MA funds, Chair question from Representative Collins equitably and fairly. Representative tax levy process so the district will Thompson asked if there were oth- regarding whether a survey had been Stevens echoed the comments made further understand the options they er any other programs that did not taken of vehicle trade-in credits and by Senator Shaughnessy and Repre- have to levy the second nickel for request all funds which would then their affect on the Motor Vehicle Us- sentative Richards and emphasized funding the Category 5 facilities. lapse to the General Fund. Mr. De- age Tax increase, Ms. Branham stated that there needs to be consistency In response to a question by sai said that there was some money there had been no surveys taken. She and all schools districts should be Chair Thompson, Ms. Kennedy indi- left in the health insurance and life indicated that the Kentucky Depart- evaluated by the same guidelines. cated that the schools on the Cat- insurance funds that lapsed. ment of Revenue collects those taxes Representative Rollins noted egory 5 list must first levy the sec- Representative Richards not- and she would check with them on that the taxable property or revenue ond nickel in order to be eligible for ed that there is a disparity in math that issue. streams are more available in some the equalization. She also pointed funds being spent. Mr. Desai said Representative Collins thought districts, and some local districts out that there are some attrac- that the funding received for RTA is it strange that the Motor Vehicles cannot raise the money necessary to tive funding options available with under $20 million per year and the Usage Tax had not increased when update, build, or replace Category 5 the Qualified School Construction funding for MA is under $6 million the sale of motor vehicles had in- schools. Bonds (QSCBs), the Qualified Zone per year. Both programs are impor- creased. Ms. Branham speculated In summary, Chair Thompson Academy Bonds (QZABs), and the tant and the department would like that perhaps the decline in SUV us- indicated that this is a very impor- Build America Bonds (BABs), which to see both funded at higher levels; age a couple of years ago when gaso- tant topic with the Committee and the fiscal managers will be working however, historically those programs line prices reached in excess of $4.00 Legislature, and urged the depart- with the districts to take advantage have been funded at those levels. He per gallon played a part. She said ment to consider accelerating the of those funding options. Chair pointed out that in 2008 funding for

THE KENTUCKY GENERAL ASSEMBLY 15 the Governor’s Office of Economic with the General Assembly. Repre- had been appointed who is from the Commissioner, Department of Parks; Analysis would be better prepared sentative Henderson also expressed area and is dedicated and committed and Tiffany Yeast, Executive Director, to answer that. Representative Col- concern regarding the veto of funding to moving the project forward. Rep- Department of Personnel, Tourism, lins said that would be good infor- for an emergency evacuation route resentative Nesler made the com- Arts and Heritage Cabinet. mation for the Committee to have. at the Woodland Industrial Park in ment that it was unclear to him why LRC Staff: John Buckner, Com- Chair Overly commented that was a Montgomery County that is a safety the Ledbetter Bridge would be con- mittee Staff Administrator; Karen good point, stating that the gas tax hazard for the 5,000 employees who sidered with more urgency than the Armstrong-Cummings, Louis DiBi- increase was tied directly to con- work there. Secretary Hancock said Lake Bridges. ase, and Dawn Johnson. sumption and volume. She asked the veto was made because the proj- Chair Overly said the May 2009 Approval of Minutes if the Cabinet tracked vehicle miles ect was an earmark to a specific ac- Road Plan was the first attempt by A motion and second by Repre- traveled. Ms. Branham replied they count, and the safety issues of the the General Assembly to provide a sentative Carney and Senator Carroll did, stating that the Federal Highway project would be considered by the funding mechanism for this enor- to approve the minutes of the June Administration (FHWA) in April re- Cabinet. mous project, and requested an ex- 17, 2010, meeting passed by voice ported a very large spike in vehicle Update on 2009 Bond Funded planation of what had been done vote. miles traveled in Kentucky. She said Projects prior to that. She also inquired 2010 Kentucky State Parks Fi- February 2010 was the first time they Secretary Hancock said a report about the typical design time for a nancial and Operations Strategic had seen an increase. listing projects that had been autho- project of this magnitude. Secretary Plan Update on Motor Vehicle Usage rized and those not yet authorized Hancock replied that issues for that Marcheta Sparrow, Secretary of Tax Credit would be provided to staff at a later area had been problematic for several the Tourism, Arts and Heritage Cabi- Following a brief overview of date. He stated the goal was to move years in order to move through the net reviewed the 2010 state parks the Motor Vehicle Usage (MVU) Tax the 2010 projects forward as quickly environmental studies and air quality strategic plan. Upon coming into of- Credit, Representative Collins asked as possible, in conjunction with the issues. He said those environmental fice, the Secretary faced a weakened if the Cabinet was aware of any pro- 2009 projects. hurdles had been overcome and the economy and a state government cedure to notify motor vehicle deal- Estimated Letting Schedule for project was moving forward when budget crisis. In December 2007, the ers when the $25 million cap on the Large Bridge Projects funding issues were encountered. first budget reduction was enacted MVU Tax Credit expired. Ms. Bran- Following a brief overview of Representative Pasley commented due to decreased funding and rev- ham stated that she was unaware of the four large bridge projects, in re- that Secretary Hancock was a strong enues, maintenance concerns, and one, and she would check with the sponse to a question from Represen- advocate for these bridges. increasing personnel costs. With the Department of Revenue regarding tative Collins regarding the differ- There being no further business release of the State Auditor’s report that issue. Chair Overly asked that ence in estimated vs. actual amounts before the Committee, Chair Overly that emphasized a need for stronger the Cabinet provide an analysis to awarded for projects in the past year, adjourned the meeting at 11:23 AM. financial management in Kentucky’s the Committee at a later date. Secretary Hancock said actual award state park system, the cabinet de- In response to an inquiry by amounts had been 10% to 12% less INTERIM JOINT COMMITTEE cided to commission an outside firm Representative Nesler, Ms. Branham than engineering estimates. ON to perform a complete review of the stated the information provided re- Chair Overly inquired about the ECONOMIC DEVELOPMENT parks system and create a strategic garding the MVU tax revenue esti- Milton-Madison Bridge and asked if AND TOURISM plan for the first time in the system’s mates was based on the most cur- once the TIGER Grant of $20 million Minutes of the 2nd Meeting 85-year history. In January 2009, rent Consensus Forecasting Group was applied to the $130 million price of the 2010 Interim PROS Consulting, LLC was selected (CFG) estimate and the Governor’s tag, would the remainder be divided July 15, 2010 for this task. Eighteen months later, Office of Economic Analysis. with Indiana, and Secretary Han- Call to Order and Roll Call PROS submitted the 2010 Kentucky Advancement of 2009 (SBP) and cock replied in the affirmative. Chair The 2nd meeting of the Interim State Parks Financial and Operations 2010 (SB2) Bond Projects Overly inquired how long the bridge Joint Committee on Economic De- Strategic Plan. Secretary Sparrow said Following a brief overview of the would be shut down from the time velopment and Tourism was held on that because of the ongoing budget advancement of 2009 and 2010 bond construction starts. Secretary Han- Thursday, July 15, 2010, at 1:00 PM, crisis, the Department of Parks is projects which included an analy- cock said the contract required that in Room 154 of the Capitol Annex. required to make an additional $6 sis of cash management of Highway the bridge would be closed no longer Senator Alice Forgy Kerr, Chair, called million general fund reduction in the Bond proceeds from General Assem- than 365 days. Chair Overly asked the meeting to order, and the secre- 2011 budget, and that the system bly authorizations since 2005, Chair if there was a similar limitation for tary called the roll. faces closures without the changes Overly asked if an arbitrage rebate the Ledbetter Bridge and Secretary Present were: recommended in the plan. had been owed or paid on past bond Hancock replied no, due to the plan Members: Senator Alice Forgy Gerry van der Meer, Commis- proceeds. Ms. Branham replied that to build a parallel structure for that Kerr, Co-Chair; Representative Eddie sioner, Department of Parks, gave an payments had been missed for three project. In response to a question Ballard, Co-Chair; Senators Julian M. overview of the parks system and the quarters over the course of the 2006 from Representative Pasley regarding Carroll, Julie Denton, Ray S. Jones II, strategic plan. With 51 state parks bond authorization which led to an the responsibility for maintenance on Katie Kratz Stine, Gary Tapp, Robin and 17 resorts, Kentucky has the arbitrage rebate payment of $2.2 mil- the Milton-Madison Bridge, Secre- L. Webb, and Jack Westwood; Rep- highest number of resorts and rooms lion. tary Hancock stated that Kentucky’s resentatives Royce W. Adams, John among all states. Kentucky is ranked Representative Henderson ex- ownership extends to the water mark “Bam” Carney, Larry Clark, Leslie third nationally in the number of pressed his concern regarding vetoes on the Indiana side, and the mainte- Combs, Will Coursey, Jim DeCesare, state-operated marinas and second made by the Governor including lan- nance costs would be split with In- Mike Denham, Bob M. DeWeese, Ted in the number of golf courses. Res- guage requiring the Cabinet to no- diana. Edmonds, Jim Gooch Jr., Keith Hall, taurant revenues are $14 million per tify the General Assembly of proj- In response to a comment from Mike Harmon, Melvin B. Henley, Joni year. ect delays. Chair Overly agreed that Representative Nesler expressing his L. Jenkins, Dennis Keene, Thomas To conduct the study, PROS re- notification of project delays was concern that the Lake Bridges had Kerr, Martha Jane King, Adam Koenig, viewed the parks system at all levels. important. Secretary Hancock stated been pushed back, Secretary Han- Tom McKee, Tim Moore, Fred Nesler, They conducted focus groups, sur- that the Cabinet’s issue with the re- cock explained that the US68/KY80 David Osborne, Ruth Ann Palumbo, veyed guests, performed site inspec- porting requirements was the level of corridor had been worked on for 15- Don Pasley, Fitz Steele, Ron Weston, tions, and completed a full asset in- detail that would have been required 20 years, with the Lake Bridges be- Addia Wuchner, and Jill York. ventory. Primary areas of focus were on a monthly basis and expressed his ing the last obstacle. He assured the Guests: Marcheta Sparrow, Cab- performance improvement recom- desire to adequately communicate Committee that a project manager inet Secretary; Gerry van der Meer, mendations for the next five years,

16 2010 Interim LEGISLATIVE RECORD organizational strategies for strategic as packaged beer sales for golf out- Commissioner van der Meer porary workers, which would change growth and improved market posi- ings at parks located in “wet” areas. said that during the winter, all resort the face of employment in Kentucky’s tion, asset management strategies to Parks management must provide bet- parks will be closed Sunday through parks system. She noted that privati- improve and maintain site and facility ter training and more recognition for Tuesday evening due to single digit zation of the prison system has seen conditions, and funding and resource high quality work by its employees occupancy rates. However, if a large high turnover, low wages, and low strategies to improve financial and with emphasis on outcome versus group makes a request, the park benefit jobs. Commissioner van der budgetary management practices. effort. Kentucky parks need legacy will consider opening to accommo- Meer said through his management Commissioner van der Meer re- programming that establishes en- date them. The parks will be open company experience in running high- viewed the key recommendations of during themes and perceived quality Wednesday afternoon through Sun- end accommodations their charge is the study. To cut expenses and in- for visitor experiences. Recommen- day during mid-November through to be profitable and be involved in crease the quality of services over the dations include themed categories mid-March. the community. Ohio parks are ful- next five years, the Department of designed to highlight each park’s Secretary Sparrow said that con- ly concessioned and West Virginia Parks must improve daily operations unique attributes. cessionaires will be allowed to oper- is partially concessioned and both and address key areas of poor perfor- Commissioner van der Meer re- ate or seek liquor licenses at parks have been successful for years. He mance such as loss of money in food viewed the department’s short-term in “wet” areas. Bars and cocktail said most of the recommendations services and golf courses. They must improvement recommendations. He lounges will not be permitted. This are economy related and designed to shift from an effort-based culture said the Department of Parks did not amenity plays a big role in attracting save money. Most concessionaires to an outcome-based culture. Parks wait for the study to be completed meetings, conferences, weddings and have better buying power, do not must implement more progressive before taking steps to become more other events at the parks. In working have government limitations, and business practices and outcomes, efficient and improve management with the Alcohol Beverage Control have expertise. streamline expenses, improve earned and services of the parks. Board three resort parks have been Responding to Co-Chair Bal- revenues, create innovate partner- Regardless of the study rec- identified for liquor sales: Lake Bar- lard’s question, Secretary Sparrow ships, and ensure customer satisfac- ommendations, Commissioner van kley, General Butler and Jenny Wiley. said there is not a detailed estima- tion. Since the parks system has in- der Meer said the steps in the Cost Three golf courses will allow package tion of alcohol sale profits. Commis- sufficient resources to meet current Avoidance Plan were necessary to beer sales: My Old Kentucky Home sioner van der Meer said using in- needs, it must find new avenues of cut $6 million from the department State Park, John James Audubon dustry estimations based on a total funding and more efficient ways of budget. Full-time employees will now State Park, and Kincaid Lake State dinner meal count with ten percent doing business. Recommendations work 37.5 hours per week instead of Park. purchasing a drink having an average include restructuring rates and fees, 40, temporary employment services With three state resort parks retail price of $3.75, this would bring cutting expenses, streamlining op- will be used for seasonal staff, Ben and a golf course in her district, in $142,000. More importantly, there erations, creating partnerships in- Hawes State Park was transferred Senator Webb expressed concern is an assumption for increased oc- creasing revenue from programs and to the City of Owensboro, seasonal about the unintended consequences cupancy rates. Many groups cannot events, and planning programs and schedule reductions at all parks will of some of the plan proposals. Sena- or do not meet at the lodges due to services to better meet user needs be implemented, concessions at din- tor Webb pointed out that the parks the inability to serve alcohol. A one- and interests. Parks must develop ing rooms in selected parks and all are part of the community where as percent increase in occupancy would and implement programs that have golf operations will be implemented concessionaires are profit driven, and bring $184,000. Co-Chair Ballard the greatest appeal to wider audi- to eliminate debt carryover. The esti- that there will be a financial impact said he has received mostly positive ences. Better programming will in- mated total cost avoidance for fiscal on the community by cutting staff feedback about alcohol sales at the crease overnight guests at lodges and year 2010-2011 is $6,029,000 and hours and hiring temporary labor. parks from constituents in his area. campgrounds. $6,054,000 for 2011-2012. Senator Webb asked if a cost- Responding to Representative Commissioner van der Meer Secretary Sparrow said all parks benefit analysis had been performed. Palumbo’s question, Secretary Spar- said key recommendations from the will remain open, park employees will Ms. Yeast said the immediate cost row said that although budget cuts study include using a sales approach have jobs, and Kentucky will regain savings by using temporary em- were a factor, it was necessary to to marketing. Parks must create a and sustain the title of the “Nation’s ployment services is reflected in a implement some of the study’s rec- proactive team with targeted goals Finest Park System” under the stra- reduced amount of unemployment ommendations for the future of the and objectives that are measured and tegic plan. and workers’ compensation funds parks system. Commissioner van monitored on a regular basis. Tools Commissioner van der Meer ad- paid out, as well as no longer hav- der Meer said there were two other for increased sales should include in- dressed concerns expressed about ing to pay leave time to interim em- important factors beside the $6 mil- centives, reward programs, customer the plan. He said the Department is ployees. This responsibility will be lion budget cut. He said the agency’s follow-ups with feedback opportuni- not privatizing the state park system shifted to the temporary agency. Ef- $30 million funding level is about ties and packaging. but simply allowing concession op- ficiency will be increased by having the same as it was in 2003. Increases Parks must also develop a stan- erations for two park services—food an immediate seasonal labor pool in retirement contributions in those dardized process for identifying, and golf. He noted that marina opera- when it is needed. The current pro- seven years have increased $2.5 mil- evaluating, prioritizing capital proj- tions at nine parks have successfully cess of using state-hired employees lion, and health insurance has in- ects, the commissioner said. A reg- operated in this fashion for several is inefficient, Ms. Yeast explained. It creased $2.7 million. ular maintenance schedule should years now. takes approximately two weeks to In response to Representative preserve and protects assets. Tiffany Yeast, Executive Director hire state government employee. Us- Palumbo’s questions, Secretary Spar- Secretary Sparrow said manage- of the Department of Personnel for ing a temporary service allows more row said the national parks system is ment of the state parks brand can in- the cabinet, addressed the changes flexibility. Responding to Senator concessioned and the Kentucky State fluence the success of marketing and in hours worked by full-time employ- Webb’s question she said based on Fair Board and the Kentucky Horse promotions. Guests should be en- ees. She noted that the change will all statewide contracts, wage rates Park hold a liquor license. couraged to stay longer and use more become effective July 16. The change will mostly equal what current in- Representative DeCesare said services and amenities during their to a 37.5 hour work week is consis- terim employees make with some the department is headed in the right visits. Better events and programs tent with most state employees. The skilled labor such as landscapers direction in making the parks profit- can be used to increase guests’ length department is currently looking for making a higher rate. Senator Webb able. He asked for more information of stay as well. Amenity recommen- a temporary employment agency to said she understand the immediate on the alcohol sales projections as dations in the plan include the sale handle all seasonal labor, however, need for workers during events but the numbers were lower than ex- of liquor by the drink at meetings, park managers will be involved and expressed concern about completely pected. conferences and social events as well have the final decision. replacing state employees with tem- Representative DeCesare ques-

THE KENTUCKY GENERAL ASSEMBLY 17 tioned the need for four marketing Representative Coursey ex- reductions. He said difficult decisions voice vote. specialists and a public relations em- pressed concern about the effect of had to be made in order to meet bud- Announcement ployee within the agency. Secretary reduced hours on parks employees’ get needs. Representative Collins an- Sparrow explained that the size of benefits. Ms. Yeast said reducing Other Business nounced that the Johnson County the parks system warrants the need hours during the non-peak season Representative Palumbo ex- Middle School recently won the inter- for these employees. She said the is not new to state parks. She said pressed concern about the closing of national competition in community agency has only $350,000 for mar- health benefits will not be reduced Delta’s Terminal C which is affecting problem solving presenting solutions keting expenditures. Representative but it will affect retirement benefits Kentucky’s economy. Employees are to help foster children satisfactorily DeCesare said a private vendor may as retirement is based on gross wag- losing their jobs and scheduling is adjust to their environment. He said fill the need for marketing as well. es. Ms. Yeast said the cabinet is now becoming more difficult. Represen- the future problem solving team from Responding to Representative looking at different types of hour re- tative Palumbo asked that the com- Johnson County’s Central Elementary Wuchner’s questions, Commissioner ductions in light of the governor’s mittee meet to discuss the topic fur- School placed second internationally van der Meer said the occupancy rate mandated six furlough days in this ther. to New Zealand, and the high school for 2009 was 50 percent and roughly fiscal year. There being no further business, academic coach, Ms. Brenda Porter, 47 percent for 2010. The one per- Responding to Representative the meeting adjourned at 2:45 PM. was named International Academic cent room tax collected by the state DeWeese’s question Secretary Spar- Coach of the Year. parks is returned to their marketing row said the Department of Parks INTERIM JOINT COMMITTEE Reports from Subcommittee program, which is approximately does not have funding for television ON EDUCATION Meetings $175,000 annually. advertising. The agency has adver- Minutes of the 2nd Meeting Representative Combs said the Representative Wuchner said tised through public radio, e-news- of the 2010 Interim Subcommittee on Postsecondary July 12, 2010 the strategic plan should have spe- letters, Facebook, and co-partnered Education heard a presentation from cific marketing outcome measures. through KET, as well as promotionals Call to Order and Roll Call Dr. William T. Betz, Senior Associ- Representative Koenig said he by golf professionals. The second meeting of the In- ate Dean for Osteopathic Education supports the changes proposed in Representative York asked if there terim Joint Committee on Education at Pikeville College School of Osteo- the plan and would like to see more was a correlation between the bet- was held on Monday, July 12, 2010, pathic Medicine, on recruiting and considering the general fund provides ter performing parks and those with at 1:00 PM, in Room 149 of the Capi- training of individuals from Kentucky a $30 million subsidy to run the state more opportunities for stay-over tol Annex. Representative Carl Roll- and Appalachia in the osteopathic parks system. visits. Commissioner van der Meer ins II, Chair, called the meeting to or- profession. The program is one of 29 Responding to representative said some rural areas have lower at- der, and the secretary called the roll. in the county with an average of 35 Koenig’s question, Commissioner tendance during the off-peak season Present were: applicants for each slot and tuition van der Meer said through PROS because of limited attractions. Tour Members: Senator Ken Winters, covers laptops, textbooks, medical Consultants they are changing the packages such as coal mines and Co-Chair; Representative Carl Rollins equipment, clothing, and organiza- mindset of parks employees at all wineries are being considered. II, Co-Chair; Senators Walter Blevins tional membership. Data has shown levels to be result-driven. Representative King suggested Jr., Jimmy Higdon, Alice Forgy Kerr, that 32% of the graduates practice Represented McKee noted that adding more “dry” camp sites for RVs Vernie McGaha, R.J. Palmer II, Tim in Kentucky and 62% in the Appala- the Agriculture Committee used the at state parks. Commissioner van der Shaughnessy, and Johnny Ray Turn- chian region. Also 44% of graduates facilities at Kentucky Dam Village for Meer said there are camping sites at er; Representatives Linda Belcher, practice in underserved areas and their July meeting. He said park visi- many recreational areas such as Fort John “Bam” Carney, Hubert Collins, 38% in rural areas. A loan forgive- tors contribute to the local economy Boonesboro. He said other historic Leslie Combs, Jim DeCesare, Ted Ed- ness program is available to students as well through purchases. sites should be looked at as well. monds, C. B. Embry Jr., Tim Firkins, who set up practice in rural areas. Responding to Representative Representative Moore expressed Jim Glenn, Derrick Graham, Jeff Greer, Representative Combs said the McKee’s question, Ms. Yeast said the concern about the effects of allowing Reginald Meeks, Charles Miller, Ma- subcommittee also received an up- employee hours worked will remain alcohol into Kentucky’s state parks rie Rader, Jody Richards, Tom Riner, date on funding by Dr. Robert King, at 37.5 and will not revert back to 40 as it may have a detrimental effect Charles Siler, Dottie Sims, Wilson President of the Council on Postsec- hours per week. There is the poten- on traditional family visits and loyal Stone, Alecia Webb-Edgington, Ad- ondary Education. Dr. King said data tial of moving to a seasonal 30 hour customers. He also recommended dia Wuchner, and Jill York. shows that funding over the last de- week during the off season. Previ- marketing to writers’ guilds and cy- Guests: Wayne Young, Executive cade for postsecondary education has ously, hours have been reduced from cling groups. Director, Kentucky Association of not kept pace with the growth in the 40 to 25 hours per week during the Responding to Representative School Administrators; Rita Muratal- General Fund; enrollment has greatly off season. Representative McKee Denham’s question, Commissioner la, Principal, Zoneton Middle School, increased; and, even though tuition expressed concern about the effects van der Meer said the department is Bullitt County Schools; Dot Perkins, has significantly increased, the actual of reducing employee pay. saving $1.6 million by changing to a Superintendent, Gallatin County cost in Kentucky has remained rela- Referring to Senator Stine’s 37.5 hour work week. Representative Schools; Jim Thompson, Legislative tively stable. Kentucky funds a high- question, Commissioner van der Denham said he hoped the hour re- Liaison, Cabinet for Education and er percentage of the costs of public Meer said some energy efficiency duction plan is short-lived as it puts Workforce Development; Cindy God- education than many other states measures at the parks have been ad- a tremendous burden on employees sey, Division of Certification, Educa- with half of the CPE budget going to dressed by PROS Consultants. who already suffer because of the re- tion Professional Standards Board; adult education programs and 40% The Commissioner said that cession. Jonathan Lowe, Jefferson County going to pass through projects. PROS Consultants has been looking In response to Representative Public Schools; Keith White, Office Representative Ted Edmonds toward other state park systems that Denham’s question, Secretary Spar- of Education Accountability; and reported that the Subcommittee on have been doing well comparison. row said equestrian facilities are be- Danny Hwang, Prichard Committee. Elementary and Secondary Educa- Representative Carney said the ing developed at Carter Caves and LRC Staff: Audrey Carr, Sandy tion heard a discussion regarding financial effect of state parks on small Pennyrile State Parks. She said state- Deaton, Ken Warlick, and Janet Oli- the school calendar. Commissioner communities is immeasurable. wide trail operations are being looked ver. Terry Holliday provided data related In response to Representative at as well. Approval of Minutes to loss instructional time over the Pasley’s question, Ms. Yeast said the Commissioner van der Meer said Upon motion by Representative past three years due mostly to in- reduction in state park staff hours parks employees are the chemistry to Richards, seconded by Representa- clement weather. The commissioner will be flexible based on seasonal de- the parks. He said the agency regrets tive Belcher, the minutes of the June is opposed to waiving missed days mands. having to implement these types of 14, 2010, meeting were approved by and offered suggestions about how

18 2010 Interim LEGISLATIVE RECORD instructional days could be made up of the requirements can be verified. tested. A 21 member teacher effec- decisions on teacher effectiveness including the use of a virtual learning Currently non-tenured teachers tiveness steering committee and a 21 will be based on the preponderance delivery model, which the depart- are evaluated annually and tenured member principal effectiveness steer- of evidence over a three year period. ment hopes to pilot in a few dis- teachers are evaluated at least every ing committee are currently meeting He said two nationally recognized tricts. Darryl Treece, Adair County three years. The new system will re- and receiving feedback from teachers models will be field tested upon ap- Superintendent; Anna Craft, Letcher quire that all teachers be evaluated and principals in the field and devel- proval of the Kentucky Board of Edu- County Superintendent; and Jim Ev- each year and a professional growth oping the rubrics to evaluate effec- cation. One is the model being used ans, Lee County Superintendent de- plan be established for each teacher. tiveness. Plans are to pilot the evalu- in Colorado and Massachusetts and scribed the unique characteristics Evaluators will also need more rigor- ation systems throughout the entire the other is the Lexile growth mod- that affected the school calendar in ous training to conduct reliable and state in the 2012-13 school year be- el. Feedback on both models will be their respective districts this year valid evaluations. The three pri- fore making it the standard through provided to the Education Commit- and the various ways in which their mary segments of evaluation will be legislative action. Representatives tee. The teacher evaluation steering districts made up missed days due to the learning environment which the from principal, superintendent, and committee is extremely interested in inclement weather, illness, and emer- teacher has created; the instructional teacher organizations; the Education the use of formative assessments to gencies. The superintendents agreed practices teachers use to ensure stu- Professional Standards Board (EPSB); measure growth and modify instruc- that more flexibility is needed and dent growth and improve student ac- the Council on Postsecondary Educa- tion before end-of-course assess- suggested that the calendar require- ademic outcomes; and recognition of tion (CPE); various universities, and ments are utilized to assess student ment should only be for a specified teachers who take on leadership and other interested parties are partici- growth outcomes. number of instructional hours rath- professional roles, such as serving pating on the steering committees. In response to a question from er than a set number of hours and as an instructional coach, chairing a In response to a question from Representative Belcher about uni- days. Commissioner Holliday also professional learning community, and Representative Rollins, Commission- versity involvement, Commissioner discussed Read to Achieve program similar leadership activities. The pro- er Holliday said that KDE currently Holliday said that university faculty funds and assured the subcommittee posed system will be field tested over approves each district’s evaluation is represented on both the teacher members that districts only received the next three years and will include plans and statutory and/or regula- and principal effectiveness steer- cuts that had been directed by the observation; feedback from affected tory changes would be needed to ing committees and the Education Governor and the General Assembly parties, including administrators and establish the statewide standardized Professional Standards Board is also in the overall budget cuts. Further, parents; teacher presentations of ar- evaluation system for teachers and involved in the alignment of the Ken- the districts will continue to receive tifacts and evidences; and student principals. tucky funds that will cover partial reim- test scores. The plan includes devel- In response to questions from teacher preparation programs bursements for the previous fiscal opment of professional growth tar- Representative Miller about who with the new evaluation system. year and a portion for the current fis- gets for teachers with teacher input will ultimately be responsible for the In response to questions from cal year, which has been the proce- on the growth plan. Another option evaluation, Commissioner Holliday Representative Firkins, Commis- dure used since 2008. being considered is student involve- said that summative evaluations will sioner Holliday said the primary goal Evaluation of Certified Person- ment, much like student involvement be done and a final decision rendered of changing the evaluation systems nel at the college level. Various models on effectiveness by direct supervi- is to ensure the continuation of Members of the committee are being researched including one sors, such as principals or assistant professional growth of teachers and were provided a PowerPoint pre- developed by the Wallace Founda- principals. He said the new system principals and not as an instrument sentation and related information tion on principal evaluation. The will also incorporate teacher self-as- to dismiss staff, although failure to regarding teacher and principal pro- Wallace Foundation has also funded sessment, peer observation, student implement and carry out an action fessional growth and evaluation sys- a pilot project in four school districts growth outcomes, and other mea- plan once established may result in tems. Commissioner Holliday said in Kentucky on teacher effectiveness surements instead of a traditional disciplinary decisions. He said that that having a highly effective educa- and Kenton County Schools, that checklist. He said that the Jeffer- the teacher effectiveness steering tor workforce is one of the eligibil- has a nationally recognized evalua- son County Teachers Association is committee has two special education ity requirements for Race to the Top tion model, will be serving as a coach actively engaged in both the teacher teacher representatives and teachers funding. The No Child Left Behind district. and the principal effectiveness steer- of other non-tested subjects. Senate Act referred to highly qualified edu- Commissioner Holliday said the ing committee. Bill 1 requires program reviews in all cators but Race to the Top funding principal evaluation system will be Commissioner Holliday said na- non-tested areas and feedback is be- and other federal grants and report- similar to the teacher evaluation sys- tionwide statistics show that only ing sought from teachers on how to ing requirements in the State Fiscal tem and will be based on the learning 60% of students are graduating, in- measure student growth in subjects, Stabilization Funds will be based environment, instructional practice, dicating that the current system for such as physical education, the arts, upon having effective teachers and and leadership and professionalism. evaluating teachers and principals and some sciences. principals with student achievement Plans are to use the VAL-ED 360 is ineffective. He said an evaluation Representative Collins said it is being an important indicator of suc- Instrument developed by Vander- of the effectiveness of school-based extremely important to evaluate the cess. Senate Bill 1 (2009 RS) also di- bilt University for principal evalu- council members, district school readiness of new teachers and having rects that professional development ation. Professional growth goals, board members, and superinten- the appropriate staff to evaluate new and support be provided to ensure organizational goals set forth in the dents also should be considered. He teacher effectiveness in the class- effective implementation of the new school improvement plan, and stu- said poverty can no longer be used room. common core standards and assess- dent growth as measured by learning as a reason for low performance ment system. Information was also outcomes will also be components of since data shows that high poverty Representative Carney said he provided on research based publica- the evaluation system and student students can succeed with effective was pleased to hear that student tions related to effective teachers voice would also be an option. The teachers and administrators. growth will be measured over time and principals. components and measures are based Representative Belcher said one instead of a one year period, espe- Commissioner Holliday said the on the Administrator Interstate reason for low student performance cially considering that many districts current system allows individual dis- School Leaders Licensure Consortium is the lack of parental involvement in have transient students. tricts to use their own methods of (ISLLC) Standards of 2008. the education process. In response Comments from Stakeholders evaluation but the new system will Commissioner Holliday said 23 to a question from Representative John Warren, Government Rela- require uniform statewide standards districts have volunteered to partici- Belcher about using student growth tions, and Mary Ruble, General Coun- although district options will be al- pate in the pilot project and some as an indicator and fair treatment of sel, with the Kentucky Education As- lowed if the validity and reliability components are now being field teachers, Commissioner Holliday said sociation (KEA) provided written and

THE KENTUCKY GENERAL ASSEMBLY 19 oral comments to the committee. ents, students, board members, and cluding tenured teachers, which will Board’s superintendent program re- Mr. Warren said that KEA is hopeful others, to continue to be involved in require more time and resources. view committee. One of the most that the new system will result in all the development of the process. Mr. Wilson Sears, Executive important responsibilities of local teachers being given the opportunity Wayne Young, Executive Direc- Director, Kentucky Association of boards is the hiring and evaluation of and vision to improve their practices. tor, Kentucky Association of School School Superintendents (KASS), in- superintendents and KSBA has de- KEA believes the new system needs Administrators (KASA), and Rita troduced Ms. Dot Perkins, Superin- veloped an instrument and provides to be developed in a thorough and Muratalla, Principal, Zoneton Middle tendent, Gallatin County Schools, training for local board members in timely manner to ensure its long- School, Bullitt County, made com- newly elected vice-president of this endeavor. The association be- term use; all stakeholders need to be ments on behalf of KASA members. KASS. lieves that superintendents must involved so those affected will know KASA supports strengthening Ms. Perkins said KASS applauds have more authority in the hiring of the system has integrity and validity; the current system of evaluation and the work being done on revising the principals as boards hold their su- necessary information and support making certain that evaluations are evaluation systems with the hope perintendents more accountable for for professional growth needs to be done accurately and professionally that it will ultimately lead to im- student achievement. KSBA sup- provided to all teachers; evaluations and are used in a meaningful way to proved student learning, but it will ports the revision of the evaluation need to be based on multiple mea- contribute to professional growth of be important that the teacher and process since local school boards sures of teacher effectiveness; and staff and enhanced student achieve- principal professional growth plan are elected to ensure the education teachers and principals need a clear ment. KASA believes multi-factor and evaluation system help educa- needs of their communities are be- vision of excellence and the support evaluations will require rigorous and tors effectively and efficiently with- ing met. KSBA supports a common and encouragement to improve. intensive training for evaluators and out overwhelming them. It will be set of criteria for the Commonwealth In response to a question from more time will be required to evalu- important to not only explain the but also supports allowing local Representative Rollins, Mr. Warren ate every teacher each year. Ms. Mu- process but the justifications behind boards and communities the option said teachers are adequately repre- ratalla stated that the current evalu- the process through communication of adding other measures to ensure sented on the teacher effectiveness ation process being used at Zoneton and thorough training of teachers and education success. Student growth steering committee with some serv- Middle School, which includes week- principals. The ultimate process and is a critical component for evalua- ing in leadership roles. ly evaluations, goal setting and com- procedures should be adaptable and tion of teachers and principals and Representative Greer said he munication, is more complex than flexible for all school districts. KASS the new data collection system will would like KEA to provide informa- the yearly evaluations being pro- members believe that it will be dif- be an important instrument in this tion on how widely steering com- posed by KDE. The major factor in ficult to have an ongoing evaluation endeavor. A more comprehensive mittee activity is being disseminated the proposed system will be the time system until a valid assessment is in evaluation process and feedback on throughout the state and the type required of principals to complete place. Evaluations should reflect and student performance and growth will of feedback being received about the the evaluations and additional staff celebrate student academic growth assist administrators in making criti- process. Mr. Warren said it is his un- will need to be trained as evaluators. even if proficiency is not achieved cal personnel decisions including the derstanding that the information has Student performance growth should and consequences should only re- possibility of future differentiated not yet been widely disseminated. be measured from the beginning to sult when growth has not occurred. compensation. Ms. Ruble said that 23 districts will the end of the school year. Bullitt Superintendents are concerned that In response to a question from pilot the program and when results County currently uses Measures of until there is a balanced assessment Representative Stone about defining of the pilot program are available, Academic Progress (MAP) testing to system with ongoing formative as- student growth, Commissioner Holli- broader dissemination of information measure proficiency and growth over sessments which align to the sum- day said that the federal government will occur. She said KEA members the year. Ms. Muratalla concluded her mative assessment, implementing has released varying and sometimes are aware of the work being done by presentation by saying that teachers effective teacher and principal evalu- conflicting information on a defini- the steering committees. as well as principals need to be held ation systems will be difficult. Super- tion of student growth. He said the In response to a question from accountable for student growth and intendents remain concerned about assessment has to be developed first Representative Wuchner, Mr. Warren funding will be crucial in ensuring their lack of authority to hire a prin- to ensure that the growth model is said KEA is committed, through its adequate training and resources are cipal who has the skills and leader- valid, fair and reliable. The assess- representatives and the teachers on available to effectively implement the ship ability to effectively implement ment should be ready for piloting in the steering committee, to identify- new system. a new evaluation system. 2013 and a substantial portion of ing barriers early in the process so In response to questions from In response to questions from student growth will be based on stu- that collaboration will continue and Representative Belcher, Mr. Young Representative Sims, Ms. Perkins dent performance on the assessment. the process will remain fluid through said that the KASA representatives said that all local district employ- Representative Rollins said that the completion. on the steering committees will be ees, not just principals and teachers, Gates Foundation is conducting a In response to a question from very vocal in sharing their thoughts need to be involved and trained to study on the weights that should be Senator Higdon about the timeframe about the time and resources needed ensure effective evaluation. She said given on various measures to define for implementation, Mr. Warren said to carry out the evaluations. Ms. it is extremely important that super- student growth and Commissioner KEA is encouraging the commission- Muratalla said it is important for intendents be involved in principal Holliday said that other researchers er to be very cautious and deliberate principals to ensure that teachers selection process. are also conducting similar studies. in revising the evaluation systems under their supervision are growing Mr. Bill Scott, Executive Direc- In response to comments by Repre- and to field test various components professionally and students are re- tor, and David Baird, Associate Ex- sentative Stone, Commissioner Hol- before the system is piloted in its ceiving adequate instruction. ecutive Director, Kentucky School liday said he has worked closely with entirety. KEA wants to ensure that In response to a question from Boards Association (KSBA), provided Dr. Bill Sanders in North Carolina on no inadvertent harm to the teach- Representative Rollins, Ms. Muratalla comments on behalf of their mem- regression models as the state was ing profession occurs. Mr. Warren said she currently evaluates non-ten- bership. Revamping the evaluation developing its principal and teacher reiterated that a major concern is ured teachers using walk-throughs, systems is a complex and ambitious effectiveness system and the Sand- the amount of time and resources two formatives, and a summa- task, but it is a critical component in ers model may be used to field test required to implement and carry tive, but tenured teachers are usu- ensuring the effectiveness of teach- items. He said the teacher’s entire out the evaluations and that Gen- ally evaluated only once every three ers and administrators. Local school body of performance over a two or eral Fund allocations will be critical years. She said it is her understand- board members have a representative three year period, which will include in ensuring effective implementation ing that the proposed system will re- on each of the steering committees student growth, will be part of the of the system. KEA also wants all quire a yearly summative evaluation and KSBA is also participating in the evaluation system. stakeholders, including teachers, par- and growth plan for all teachers, in- Education Professional Standards Review of Executive Order 2010-

20 2010 Interim LEGISLATIVE RECORD 430 Relating to Reorganization of the fered throughout the state in a par- of 177 six-hour instructional days or Council on Postsecondary Education ticular subject area will be assigned INTERIM JOINT COMMITTEE 1,062 instructional hours and directs Ron Carson, Senior Fellow, Pol- a uniform course code number. Dis- ON EDUCATION the Kentucky Department of Educa- icy Development, Council on Post- tricts may still use their own course Subcommittee on Elementary and tion (KDE), through the Kentucky secondary Education (CPE), said the codes but will satisfy this require- Secondary Education Board of Education, to promulgate Minutes of the 1st Meeting executive order issued by Governor ment by using the student informa- of the 2010 Interim regulations by August 1, 2010, to al- Beshear in 2009 to relocate CPE from tion system. July 12, 2010 low for innovative alternative calen- the Education and Workforce Devel- In response to a question from Call to Order and Roll Call dars for districts with less than 177 opment Cabinet to the Governor’s Representative Stone, Ms. Felicia The first meeting of the Subcom- six-hour instructional days. Office was not ratified by the 2010 Smith with KDE’s Office of Teach- mittee on Elementary and Secondary Commissioner Holliday explained General Assembly. The Governor’s ing and Learning said that counties Education of the Interim Joint Com- that the regulatory language in 702 Office has issued a new executive currently use many different course mittee on Education was held on KAR 7:140 requires that graduation order to accomplish the same reor- codes for the same subjects, such as Monday, July 12, 2010, at 10:00 AM, occur after the last instructional day ganization. No action was taken by Algebra I, but when the new state- in Room 129 of the Capitol Annex. and district calendars must include the committee regarding the execu- wide standards are in place for Eng- Senator Vernie McGaha, Chair, called make-up time for days missed due tive order. lish, Language Arts, and Math, using the meeting to order, and the secre- to emergency equal to the greatest Review of Administrative Regu- uniform course codes should ensure tary called the roll. number of days missed system-wide lations that subjects are the same through- Present were: in the district in the preceding five Kevin Brown, KDE General out the state. Mr. Brown said a Members: Senator Vernie Mc- years. Disaster days cannot be re- Counsel, and Ken Draut, KDE As- mechanism has been included to al- Gaha, Co-Chair; Representative Ted quested until more than 20 regular sociate Commissioner, explained the low a district offering a new course Edmonds, Co-Chair; Senator Ken instructional days have been missed education regulations. Mr. Brown or a course that is not available in all Winters; Representatives Linda and all required makeup days have said that 703 KAR 5:060 describes districts to use a generic course code Belcher, John “Bam” Carney, Hubert been utilized as instructional days. the accountability process that will and there is nothing that prohibits a Collins, Derrick Graham, Rick G. Nel- Commissioner Holliday said that the be used until the new accountabil- local district from offering a course son, Marie Rader, Carl Rollins II, Wil- legislature had previously waived the ity system required by Senate Bill 1 that is not on the list. son Stone, Alecia Webb-Edgington, requirement that districts make up all (2009 RS) is implemented. The regu- Senator Winters asked if there and Jill York. days missed beyond 20 instructional lation describes the interim student is anything in the regulation that Guests: Darrell Treece, Super- days but no legislative directive was assessments, how the graduation would affect end-of-course examina- intendent, Adair County Schools; issued for the past school year. Also, rate will be calculated, and data col- tions. Ms. Smith said the purpose of James Evans, Jr., Superintendent, no school district requested a waiver lection procedures. the amendments to the regulation is Lee County Schools; Wayne Young, to the regulation because of time In response to a question from to prepare for implementation of the Executive Director, Kentucky As- constraints. Representative Carney about the end-of-course assessments which sociation of School Administrators; Commissioner Holliday said new math standards, Mr. Draut said will be uniform across the state. Jim Thompson, Legislative Liaison, during the 2009-10 school year, 18 the regulation being discussed does Ms. Melissa Justice, Senior As- Cabinet for Education and Workforce districts had to make up 20 or more not address content standards. He sociate Counsel, and David Lawhorn, Development; Anna Craft, Superin- days; 70 districts made up 10 to19 assured Representative Carney that who oversees the Kentucky Educa- tendent, Letcher County Schools; days; and 86 districts made up 2 to many Kentucky teachers participated tional Savings Plan Trust program, and Kay Kennedy, Office of District 9 days. He said since districts must in the review of the national math explained the Kentucky Higher Edu- Support Services, Kentucky Depart- include make-up days based on the common core standards and that cation Assistance Authority regula- ment of Education. largest number of days missed in any Kentucky’s comments and recom- tion. Ms. Justice said that 11 KAR LRC Staff: Sandy Deaton, Au- one preceding five years when sub- mended changes were accepted and 12:060 establishes the cancellation drey Carr, and Janet Oliver. mitting the upcoming school year included in the newly released com- and withdrawal procedures from the Welcome and Recognition of calendar, the number of make-up mon core standards. Kentucky Educational Savings Plan New Subcommittee Member days will increase for the 2010-11 Mr. Brown said that 703 KAR Trust funds. The amendment elimi- Senator McGaha recognized the school calendar because of the nu- 5:180 defines the intervention sys- nates the minimum partial with- newly appointed member to the sub- merous weather and illness related tem to be used for persistently low drawal requirement of $500 to al- committee, Representative Jill York, days missed during the last two achieving schools. The regulation low participants to withdraw lesser from Carter County, who represents years. Information was provided on was promulgated as an emergency amounts without closing out their Legislative District 96. the 11 districts that were approved upon the enactment of House Bill accounts. Discussion of School Calendars for disaster days during 2009-10 176 during the 2010 Regular Session In response to a question from Committee members were pro- school year and the proposed 2010- to meet Race to the Top application Representative Rollins, Ms. Justice vided a copy of the PowerPoint slides 11 calendar information for those timelines. Changes to the emer- said Kentucky is the only state with and related information concerning districts incorporating make-up days gency regulation include extending such a requirement and the amend- school calendar requirements. Com- based on five year data. Many of the the timeline for districts to choose ment brings Kentucky’s program missioner Terry Holliday said that districts will begin school in early an intervention option from 30 to 45 into alignment with other 529 col- school district calendars are governed August, even though they had mid or days; clarifying that district school- lege saving programs in the country by KRS 158.070 which requires a min- late June dismissal, and will not have based decision-making councils are and the fund administrator indicates imum 185 day school term with no scheduled spring or fall breaks. to receive notice of appeal options; that it simplifies the fund withdrawal less than 175 six-hour instructional The number of teacher contract clarifying the restaffing option proce- process. days; a minimum of four professional days for the 2009-10 calendar year dures; and identifying the process for Other Business development days; a maximum of ranged from 185 to 192 days, with the commissioner to replace council Each member of the committee four optional holidays; a maximum the majority of 153 districts having members. was provided a copy of Edvantia’s of two optional planning days with- 187 contract days. Total instruction- Mr. Brown said that 704 KAR 2010 white paper entitled, “Ken- out students; and an optional open- al days ranged from less than 170 to 3:540 relates to uniform academic tucky’s March to the Top.” ing and closing day for students. 177 days with the majority in the course codes and incorporates by Adjournment Budget language included in House 175-177 range and all districts met reference a document called the There being no further business Bill 1 passed during the 2010 Special the 1,062 hour requirement. Com- “Kentucky Academic Course Codes before committee, the meeting ad- Session also requires an equivalent missioner Holliday said the 2010-11 List.” He said that all courses of- journed at 3:00 PM. district school calendars will be ap-

THE KENTUCKY GENERAL ASSEMBLY 21 proved by September 1 and the in- lins on internet availability in rural several foundations, including the tive bargaining contracts and varies formation will be made available to areas, Commissioner Holliday said Gates Foundation, may have funding from district to district. He said the legislators. Information was also that KDE is working with the Com- available and KDE is actively pursu- statute requires a minimum equiva- provided on K-12 minimum instruc- monwealth Office of Technology to ing those funding sources for virtual lent of 175 six-hour days for student tion days and/or equivalent hours for access federal funding and that leg- learning resources. instruction, although budget lan- the 2009-10 school year for states islators may be able to assist KDE in Senator Winters cautioned that guage directed the equivalent of 177 in the Southern Region Educational resolving overlapping and proprietary it is important to maintain a good six-hour instructional days. Board area. service issues that may hamper im- student-teacher relationship in a vir- In response to a question from Commissioner Holliday said the plementation. Representative Col- tual learning environment, even dur- Representative Nelson, Commission- most significant issues resulting from lins said that cellular telephones may ing a pilot project. er Holliday said all counties received missed days when disasters occur is be an alternative to internet access Representative Collins asked for their entire allocation for the Read to the loss of valuable student instruc- and Commissioner Holliday said that information on the funding cuts in Achieve grants except for the budget tional time with teachers, its effect option is being explored as a means the Read to Achieve program. Com- cuts directed by the Governor’s Of- on retention and flow of instruction, for students to access lesson assign- missioner Holliday said his office will fice. He said, because current year and the administrative issues in ac- ments. Commissioner Holliday said provide the subcommittee members a funds can be used to reimburse past counting for instructional days and it is also anticipated that textbooks detailed step by step explanation on year expenses, districts continually hours for students and staff. He said will become an online digitized re- the funding cuts for Read to Achieve work in a risk management scenario he has met with interested parties in source within the next five years. and Math Achievement funds. He since the funds are always subject every region of the state and sought He said no funding was allocated said that unexpended funds were to cuts. Representative Nelson said feedback from superintendents and in the upcoming biennium for text- swept beginning in FY 2009 to help that $3,000,000 is allocated each the consensus appears to be that a books and therefore supplements offset the General Fund shortfall and year for the Read to Achieve program virtual learning system is the most are being developed to incorporate grants have been reduced to a 65/35 from coal severance funds and asked viable alternative. Virtual learning changes related to the new common General Fund/district split since that if the coal producing counties also would be an expansion of the Live@ core standards. year. In the 2010 fiscal year, districts received cuts in funding. Commis- edu system that is already available In response to a question from were alerted that all reconciliation sioner Holliday said he would obtain in all districts. The challenges in us- Senator McGaha, Commissioner Hol- payments needed to be submitted in information from the Governor’s Of- ing virtual learning include computer liday said that a biennial survey of order to avoid loss of program funds. fice of Policy and Management on availability, internet access in remote technology showed that 100% of As a result, $700,000 lapsed at the coal county funding. He also said areas, administrative issues related teachers have online access and ap- end of June instead of a much larger there are no plans to further reduce to special education, meeting Ameri- proximately 80% of students have sum. Districts will receive their al- Read to Achieve or Math Achieve- cans with Disabilities Act (ADA) re- access although the percentage in located FY 2011 funds which can be ment funding. quirements in home environments, some Eastern Kentucky counties may used to reimburse FY 2010 program In response to a question from and teacher and classified employee be far less. costs. In response to a question Representative Graham, Commis- contract issues. Commissioner Hol- In response to questions from from Representative Collins, Com- sioner Holliday said that, notwith- liday said that he is seeking volun- Representative Belcher about the missioner Holliday said districts re- standing KRS 158.070, the school tary input from at least five districts affect of virtual learning on classi- ceived appropriated Read to Achieve term for FY 2011 and FY 2012 shall in Eastern Kentucky to identify prob- fied staff and special education stu- and Math Achievement funds except include the equivalent of 177 six- lems and recommend solutions to dents, Commissioner Holliday said for the mid-year budget cuts directed hour instructional days, although implementing a virtual learning en- that virtual classrooms could reduce by the Governor. funding was provided for 176 six- vironment so that legislation can be the costs of transportation, child In response to a question from hour instructional days. KDE does proposed to implement and fund a nutrition, and related services, but Representative Stone, Commission- not have the ability to control the pilot program in the January-April districts may need to assign other er Holliday said if a school district length of teacher contracts but the 2011 timeframe. duties to classified staff. He said re- scheduled a make-up day and was school term has to be at least 185 In response to a question from search has shown that many special unable to have school on that day days. School districts must obtain Representative Stone, Commissioner needs students are identifying with because of weather or other condi- approval for an innovative calendar Holliday said it is envisioned that vir- game-based instruction and that the tions, then two days would be added below 170 days but any calendar be- tual learning hours would be utilized University of Kentucky Innovation to next year’s school calendar. Kay tween 170 and 177 days would be as make-up days. He said other is- Lab Partnership is developing tools Kennedy, Interim Associate Commis- approved as long as the 1,062 hours sues would be to ensure student and that could be used in a pilot project sioner, Office of District Support Ser- is met. teacher instruction accountability to measure the adverse or positive ef- vices, said that the information pro- Senator McGaha asked if the and providing backup resources for fects of virtual instruction for special vided in the PowerPoint presentation districts that are required to attend students who do not have access to needs students. He said that KDE reflects the greatest number of days school up to mid-June or later are needed hardware and infrastructure. would also need to resolve federal in the last five years that a district just fulfilling law or accomplishing Representative Collins asked education requirements for special missed in any one year period. She effective instruction. Commissioner how many days a school system needs students in a virtual learning said that any day of school marked Holliday said that when the Senate could make up by adding minutes to environment. on the amended school calendar as Bill 1 testing period of the last 10- the school day and if teachers and Senator McGaha asked if a stu- closed because of weather or other 15 days of school begins in 2012, classified employees are required to dent would be counted absent if disasters must be counted as a make- any negative impact of late school make up any hours or days beyond he/she did not log on to the system. up day. Commissioner Holliday reit- closing will be alleviated. He said the extended school day. Commis- Commissioner Holliday said that stu- erated that, at the end of the school that by October 31, KDE will provide sioner Holliday said that a district dent/teacher accountability would be year, each district is accountable for a report to the legislature regarding must attempt to have school on all required. 1,062 hours in each school. test scores for those districts that scheduled make-up days but at a Representative Carney said that In response to a question from utilized less than 177 days last year minimum must meet the 1,062 hour textbooks are being used much less Representative Webb-Edgington, and those that went beyond June 1. requirement by June 30 of each year frequently in the classroom and the Commissioner Holliday said 185 Comments and that relief cannot be granted un- greatest need is technology, especial- days is the minimum school term for Mr. Darrell Treece, Superinten- til all of the scheduled make-up days ly since many students excel in tech- teachers and classified employees, dent, Adair County Schools, said his have been used. In response to a nologically advanced classrooms. although the actual number of hours district missed only 11 days during question from Representative Col- Commissioner Holliday said that and days is often governed by collec- the last calendar year although the

22 2010 Interim LEGISLATIVE RECORD norm is 3-5 days. Adair County op- for meaningful instruction. The dis- not allowed to use that schedule be- trict provided additional services for erates on a 6 hour 15 minute day trict plans for various emergencies by cause of negotiated contracts. students. Mr. Treece said that a tri- and used 4 days of banked time as having teachers prepare packets that Mr. Jim Evans, Superintendent, mester alternative schedule is being instructional days with teachers and may be sent home with students Lee County Schools, said that his implemented at the high school level classified employees performing other when inclement weather is immi- district has 1100 students and the in his district to address the needs of duties to make up the time. He said nent. The district has also purchased primary focus is always improving struggling and advanced students. even with missed instructional days, a program called Kids College for stu- student academic achievement. Dur- Representative Stone thanked Adair County has been recognized for dents fortunate enough to have com- ing the last school year, the district the superintendents for their willing- several accomplishments. The high puters in the home. Ms. Craft said missed 29 days of which 26 were for ness to share the various scenarios school band was one of eight high that the virtual learning concept is a inclement weather and 3 for illness, that are involved in creating a school schools from across the nation and good idea but her district does not although prior to 2008-09, the dis- calendar that meets the academic the only Kentucky school selected to have the financial resources to pur- trict had historically missed about needs while ensuring safety of stu- participate in the Macy’s Thanksgiv- chase hardware and the county does 15 days annually. The school day is dents. He said he is also aware of the ing Day parade; the middle school’s not have adequate internet service 6 hours 15 minutes and all make-up many other factors superintendents Future Problemsolving Team won the lines, although cellular telephone days have been added to the end of must consider when developing their state and placed third in the world service may be an option and their the school calendar. The district does calendars. out of 280 schools nationally; and local television station may provide not schedule fall or spring breaks al- Representative Edmonds said he the high school academic team won an avenue for virtual learning. She though they are required to close for is aware that Lee County and other regionally and won at state in vari- told Commissioner Holliday that her two days in the spring for the Cen- counties are now being penalized ous categories and some of the cate- district would like to participate in tral Kentucky Education Associa- simply because they did not use gories placed 7th in national compe- the virtual learning pilot project. Ms. tion (CKEA) meeting. Professional banked days in previous years. tition. He said the middle school is Craft said that school always begins development begins the last week in Senator McGaha asked if it would currently not meeting annual yearly in early August and they still do not July, school begins the first week of be helpful if the statute only required progress goals but all staff is work- get out until June. She said the Pine August, and the only planned breaks a minimum number of hours instead ing to improve that situation. Mr. Mountain roads are very dangerous are Thanksgiving and Christmas. Mr. of also requiring a minimum number Treece said some days were missed in inclement weather and student Evans said one of the biggest obsta- of days. Ms. Craft said it would be after graduation invitations had been safety is the primary concern for the cles related to inclement weather in helpful, although it would be impor- mailed and retirements scheduled. district. Lee County is the numerous gravel tant that the number of days that As a result, school was held on Sat- In response to a question from roads, which cannot be plowed or classified employees must work to urday to make up a missed day, but Senator McGaha, Ms. Craft estimat- salted to remove snow, resulting in meet retirement guidelines be taken only 75% of the students attended. ed that no more than 60% of the stu- longer delays in returning to school. into consideration. Commissioner He said it would be helpful if districts dents in the district have computers He said Lee County would also like to Holliday offered to obtain more infor- could use election day as a make-up at home with online access. participate in a virtual learning pilot mation on the concept. Mr. Treece day when necessary. In response to a question from project, but the lack of county-wide said that legislation was filed in the In response to a question from Representative Collins regarding designated service lines could prove last session which would have pro- Representative Graham about imple- transportation issues that may arise to be an obstacle. Lee County is one vided more flexibility to the districts menting an alternative schedule, Mr. when not all schools in the district of eight districts in Kentucky com- without obtaining departmental Treece said that although many stu- are closed, Ms. Craft said they have peting with 3,000 schools nation- waivers and approvals but no action dents may be able to use the two to not had any transportation difficul- wide to obtain an innovative grant was taken by the legislature. Sena- three week break in schedule to make ties. She said classified personnel, from Apple for $3 million dollars to tor McGaha said each district knows up work and the time would be avail- such as bus drivers and cooks, are obtain iPads for the students, which their particular needs and capability able for make-up days, he would still allowed to bank time when they do could be used for virtual classes and of making up missed days and flex- be concerned about the loss of in- special activities, such as bus runs online textbooks. He said cancel- ibility would be advantageous in structional momentum. at night and on weekends and extra ing school is a serious decision not planning. Ms. Anna Craft, Superinten- cleaning of kitchen areas. They then only because of missed instructional There being no further business dent, Letcher County Schools, said use the time during school closure time and ensuring the physical safety to discuss, the meeting adjourned at that the district has tried many dif- and are paid for any unused time at of students, but because many stu- Noon. ferent alternative calendars. During the end of the school year. She said dents in the high poverty area miss the last school year, 27 days were the county operates on 177 instruc- the only nutritional meals they may missed district-wide. Also the Mar- tional days and that teachers also have during those days. Mr. Evans tha Jane Potter Elementary School have 6 professional days. During the said that House Bill 406 budget lan- missed 6 additional days beyond the last year, they used two holidays for guage in the 2008 legislative session INTERIM JOINT COMMITTEE 27 because of the H1N1 virus, but professional days in order to avoid and the current budget has prevent- ON EDUCATION the students still scored academi- teacher pay cuts. ed the district from using any of its Subcommittee on Elementary and cally above the state average. The Representative Carney com- banked time to meet required hours. Secondary Education district did not seek a district-wide mended the school system for their He said it would be helpful if CKEA Minutes of the 2nd Meeting of the 2010 Interim waiver of days although days were innovative approach to making up days and election days could be used August 9, 2010 requested for individual schools be- missed days and for putting child- as make-up days if needed. Call to Order and Roll Call cause of various disasters. The dis- safety first. He asked if there would Representative Graham said his The second meeting of the Sub- trict has eliminated fall break and will be any benefit to linking the terms district offers classes beyond normal committee on Elementary and Sec- have no break in the upcoming cal- of teachers to instructional days and school hours to allow students who ondary Education of the Interim Joint endar until December 22 – January 3 using opening and closing days as are below grade average to make up Committee on Education was held on and spring break and holidays will be professional development time. Ms. work and to offer enrichment pro- Monday, August 9, 2010, at 10:00 used if needed to make up days. She Craft said if banked time is not used, grams for students who are excelling. AM, in Room 129 of the Capitol An- said the district policy is for 6 hour teachers and classified staff have to Ms. Craft said transportation outside nex. Representative Ted Edmonds, 10 minute days, but in order to bank go the full school term and using normal school days is difficult for Chair, called the meeting to order, 10 days they actually go 33 minutes opening and closing days for both most students in her district. She and the secretary called the roll. extra each day all year long, which students and employees could be said when Extended School Services Present were: is a large enough segment to allow helpful, although some districts are (ESS) funds were available, the dis-

THE KENTUCKY GENERAL ASSEMBLY 23 Members: Senator Vernie Mc- equate funding; and appropriate en- In response to a question from live in a group home setting. They Gaha, Co-Chair; Representative Ted try and exit academic assessments. Representative Collins about the dif- have emotional or behavioral issues Edmonds, Co-Chair; Senators Walter KDE future plans include partnering ference in the programs, Ms. Smith and 43% have an identified disability, Blevins Jr., David Givens, Jack West- with the University of Kentucky on said that the handout provided to the as compared with about 16% of the wood, and Ken Winters; Representa- its P-20 innovation lab focusing on committee lists the criteria used to general student population in Ken- tives Linda Belcher, Hubert Collins, motivation techniques in alternative identify best practices in A-5 and A- tucky, so a large number have special Marie Rader, Carl Rollins II, Kent settings and transitioning plans; de- 6 programs. A-5 programs are typi- needs. Ms. Clusky said a typical A-5 Stevens, Wilson Stone, and Alecia veloping more comprehensive pro- cally within a traditional school set- student is often from a broken home. Webb-Edgington. gram reviews of A-5 and A-6 pro- ting, such as a wing or a classroom Some just didn’t do well in a large Guests: Howard K. Osborne, Su- grams; and improving the pre- and or their own building, and are district school environment, some are there perintendent, Boyd County Schools; post-assessments of students in the run and operated; and A-6 programs on a volunteer basis, and some are Denny Locey, CEO, Ramey-Estep programs. are in non-district operated insti- court ordered. Mr. Nolan said most Homes; Linda Trimboli, Ramey-Es- In response to a question from tutions or schools and serve state of the students in an A-6 program are tep High School; Wayne Young, Ex- Senator McGaha about a complaint agency children. Ms. Smith said the behind several grade levels in reading ecutive Director, Kentucky Associa- he has received that the testing win- test scores for students within A-5 and math upon entry into the pro- tion of School Administrators; Jim dow is too narrow to adequately test and A-6 programs are reported back gram. Mr. Nolan referred committee Thompson, Cabinet for Education students in the alternative schools to their A-1 local school. One of the members to a handout he provided and Workforce Development; Robin since the students are on many dif- recommendations is to have pre- and which gave more information on so- Rhea, Office of State Budget Director; ferent grade levels, Ms. Smith said post-assessments upon entry and cial and demographic profiles of state and Clyde Caudill, Legislative Agent, that she has not heard that com- exit of A-5 and A-6 programs. Ms. agency children. Jefferson County Public Schools. plaint but would certainly check into Clusky said that currently A-5 stu- In response to a question from LRC Staff: Janet Stevens, Au- the matter and report back to Sena- dents are given the Test for Adult Senator Westwood on funding for drey Carr, Sandy Deaton, and Janet tor McGaha. Basic Education (TABE) upon entry A-6 children, Mr. Noland said edu- Oliver. In response to a question from and exit from the program. Mr. No- cational funding for A-6 children is Approval of Minutes Representative Belcher, Dr. Nolan lan said A-6 students are required to provided by the General Assembly Upon motion by Representative said that A-6 programs are reviewed take a pre-assessment within 30 days through the Department of Educa- Collins, seconded by Representa- annually and Ms. Clusky said that A- of enrollment and most of the pro- tion’s budget which is then funneled tive Stevens, the minutes of the July 5 programs are monitored through grams do a post-assessment using through the Department of Juvenile 12, 2010, meeting were approved by attendance audits and academics are the same instrument. The difficulty is Justice to the A-6 programs. He voice vote. monitored when a district undergoes that assessments vary from program said Juvenile Justice provides other Overview: Kentucky’s Alterna- a scholastic audit. Attendance au- to program and the agency is hoping treatment services for the youth so tive Education Programs dits are based on a rotation depend- for a standardized assessment. Other if they opened additional facilities, Ms. Felicia Smith, Associate ing on the average daily attendance factors such as court order changes their budget would be impacted for Commissioner, Office of Next Gener- enrollment, but she was unsure as to to a student’s residence may affect the services they provide such as ation Learners, Kentucky Department when scholastic audits are done and post-assessment capability. Mr. No- counseling, alcohol and drug abuse of Education (KDE), gave an overview she offered to find the information lan said there are 100 A-6 programs treatments, and related services. Mr. of alternative education programs. and provide it to Rep. Belcher. Ms. located in 54 school districts serving Nolan said there are approximately Ms. Sherri Clusky, Consultant, KDE Smith said the department does plan 16,000 youth from every school dis- 16,000 students that utilized A-6 Division of Learning Services; and to implement a more comprehensive trict in the state. Ms. Smith said she services each year and Ms. Clusky Dr. Ronnie Nolan, Director, Kentucky review. She said Senate Bill 1 (2009) believes there is an alternative A-5 said there are approximately 45,000 Educational Collaboration for State program review requirements will al- program in every district. Mr. Nolan students in the A-5 programs each Agency Children, (KECSAC), Eastern low KDE to capture more information said their visits are announced to en- year. Ms. Clusky said that A-5 stu- Kentucky University, also provided on academic achievement. Dr. Nolan sure ease of data collection but often dents are placed through various comments. Copies of KDE’s Power- said A-6 programs are monitored an- follow-up visits are unannounced. means including principal referral, Point slides and KECSAC’s Annual nually through on- site visits with a A-6 students are required to attend parent request, or court ordered. The Census report were provided to com- team of professionals using the Stan- school 33 additional days beyond a placement is often an alternative to mittee members. dards and Indicators for School Im- traditional school calendar. Repre- suspension or expulsion. Ms. Smith explained that A-5 provement document developed for sentative Collins said that announced In response to a question from programs are operated by local school use in all schools in Kentucky. Fol- visits more than likely do not always Representative Webb-Edgington districts in district controlled facilities low-up visits are conducted if issues give a true picture of what is occur- about the number of A-5 and A-6 and A-6 programs use district school are noted. ring in a school system. schools, Ms. Smith said the exact teachers to provide educational ser- In response to questions from In response to a question from number of A-5 programs is difficult vices for state agency children, such Representative Belcher, Ms. Smith Representative Stevens about the to account for since they can be as as those in the Department of Juve- said an area that needs to be strength- adequacy of the evaluations being small as a classroom in a large high nile Justice and Department of Com- ened is the transition from alterna- conducted on these important pro- school or a wing or a separate build- munity Based Services programs. tive schools to the traditional class- grams, Ms. Smith responded that ing. Ms. Smith said that eleven sites KDE has identified 11 best practice room and the department needs to the department is currently review- were selected as best practice pro- sites based on curriculum, instruc- provide stronger guidance about how ing the evaluation system for the grams through a self-nominating tion, and assessment; school climate students are moving in and out of A- programs and is involving other af- process and then out of the 26 that and culture, support services, and 5 programs. Dr. Nolan said that his fected agencies in the process. Mr. self-nominated a committee of seven staff professional development; and agency recently completed a study Nolan said typical children in an A- people selected the eleven which in- leadership ability including resource of transition services for students in 6 program are children in the care cluded onsite visits. Representative allocation and program planning. the care or custody of the state and of the Department of Community Webb-Edgington said it is a traves- KDE concerns and consider- transition effects on the students and Based Services and have often been ty that the number of students and ations include ensuring that A-5 and they have made recommendations to placed in Community Based Services programs cannot be identified even A-6 programs have highly qualified, KDE. Many times decisions are made because they are being abused or though students and youth are the effective teachers; adequate facili- not by educators but by the judicial neglected by a parent or guardian. Commonwealth’s most precious re- ties; rigorous instruction; adequate system, social workers, and others They are not typically involved with source. She said it is a clear indica- resources and teaching materials; ad- outside the educational setting. law enforcement and they generally tion that solutions are needed and

24 2010 Interim LEGISLATIVE RECORD KDE needs to present recommenda- in the school from which they came. ceives support from the Kentucky Ms. Brewster contributed the tions to the General Assembly on Ms. Smith said they are not alterna- Educational Collaborative for State success of the program to the dedi- how to address the needs of these tive schools but alternative programs Agency Children (KECSAC) in the cation of the teachers and staff. She students. which are intervention-like services areas of professional development, said the worse place to put ineffec- Senator Givens said it is appar- that can be offered in a particular technical support, and evaluations tive teachers is in alternative educa- ent that there is not the detail level school setting with alternative pro- as well as financial support. Other tion programs. data to determine exactly what is grams. Alternative programs vary funding comes from Title I funds, lo- Presenting information on the involved in alternative education. In from district to district which is the cal school district professional de- Buckhorn Children’s Center School response to a question from Sena- impetus for reviewing and evaluating velopment funds, and other sources. in Perry County were Ms. Lisa Weist, tor Givens about the selection of the the programs to improve alternative Ramey-Estep Home actually owns Principal, Buckhorn School; Ms. Rob- best practice process, Ms. Clusky said education delivery. and maintains the building. Block in Gabbard, Public Relations Direc- 11 of the 26 self- nominated alterna- In response to a question from scheduling is used that allows stu- tor, Buckhorn Children’s Center; and tive schools were selected through Representative Collins about the ef- dents to at least obtain a half credit Ms. Stephanie Miller, a teacher at the the screening process and only those fectiveness of alternative programs, while attending the school. Course school. A pamphlet was provided to 11 were visited. Ms. Smith said they especially when they are still in the offerings each semester include at committee members regarding the do not have the manpower to review same facilities as traditional stu- least two classes in core subjects, school. Ms. Weist said Buckhorn every program in the state. Senator dents, Ms. Clusky said alternative two courses in vocational and or fine School is an A-6 program and has Givens said he would be interested in program students are separated out arts/humanities, and classes in char- many of the same characteristics as knowing the percent of total learn- from the regular school population, acter education. There are no foreign Ramey-Estep, but is much smaller. ing time that is spent in alternative but the best situation would be off- language classes offered because of The school has three classrooms education and related data and the site programs. Jessamine County has lack of resources and length of stay. and the majority of the students are amount of money spent on alter- an excellent alternative program with Thirty (30) days of school are offered psychiatric, residential treatment fa- native education per student and its own building, transportation, during the summer, during which cility students and some that have if more time is now devoted to the gymnasium and related facilities. Al- time core classes are taught by resi- pre-delinquent behaviors. None of alternative environment or less. Mr. ternative programs vary throughout dent staff and teachers from the lo- the students are in the DJJ system. Nolan said the information is con- the school systems with some op- cal area. The school also has a credit One way that the treatment staff tained in the KECSAC Annual Cen- erating in isolation and some inte- recovery program. Students are as- collaborates with educational staff sus Report on A-6 children. He said grated with the traditional students sessed using various assessment in- is the use of “The 7 Habits of Highly the cost of educating state agency for various activities. Representative struments upon entering and exiting Effective Teens” program in character children is significantly higher than a Collins expressed concern about stu- the program. The school graduates education classes. Students carry traditional school because there are dents receiving a high school diplo- an average of 50 students per year the book with them at all times. The no more than 10 students per class- ma even though they did not follow a from high school and the graduation school uses the online Predictive room per teacher unless there is a traditional pattern to graduation. is celebrated the same as with any Assessment Skills Test, a universal teacher’s aide in the same classroom Representative Stevens ex- traditional high school graduation. screening developed by Discovery which increases student-teacher pressed his concern about the dif- Some of the students take the Gen- Learning, which is a tool to assess a ratio to 15 to 1. State agency chil- ficulties public education faces in eral Educational Development (GED) student’s math or reading level and dren have 210 instructional days in providing an adequate education for test, and some students are allowed identify the skills they need to learn. a year’s time. He said there is $9.5 all students and the importance of to take 3 credit hours in General The school uses block scheduling and million that is allocated through the ensuring that every opportunity is Education 101 from Ashland Com- SmartBoard technology. All of the General Assembly each year that is given to each child. He emphasized munity and Technical College. The teachers are state certified in special divided out to the 54 school districts the importance of having high qual- school has an aftercare program to education and all staff are trained in on a per student basis. That comes ity leadership in schools. assist the students in transition- Safe Crisis Management. The stu- out to about $3,100 per student each Presentation: Exemplary Alter- ing back into their communities and dent teacher ratio is 4 adults to 10 year to supplement services provided native Education Programs home schools. When students are students, which includes a teacher, to A-6 students. Ms. Ann Brewster, Principal, returned to a traditional school, they an aide, and two youth residential In response to a question from Ramey-Estep High School, in Boyd are often required to go into an al- workers in each classroom. The Representative Belcher about the County provided information on the ternative program at that school, school also does GED preparations, availability of counselors and social A-6 school. Committee members re- which may not be the best place- partnering with Hazard Technical workers, Ms. Smith said the resourc- ceived a copy of the PowerPoint pre- ment for them. The students at the Community College for GED instruc- es are available in A-5 programs for sentation. school have published three books tors. Population is generally 20 to counseling and Mr. Nolan said almost Ramey-Estep High School has and are working on a fourth. The 25 students because of the popula- all of the A-6 programs are partnered received accreditation from the books are entitled “The Circle” and tion being served. with a private child caring agency Southern Association of Colleges contain student written pieces and Ms. Gabbard provided a brief and the homes for children provides and Schools Council on Accredita- artwork that provide a glimpse into history of the Buckhorn Center the treatment and counseling ser- tion and School Improvement and the lives of Kentucky’s state agency which began as an orphanage devel- vices for those youth. The DJJ has has been recognized as a best prac- children. The school also has a her- oped by a Presbyterian church over youth care workers on staff working tice site for alternative education petology lab, a sugar tree nature trail 100 years ago to serve educational in those capacities. Representative for the past two years. The school with 17 learning stations, a maple and other needs in the impoverished Belcher said counseling services are has 22 certified staff, including the sugar production activity, a drama area. Today the center is known as essential for youth needing help. principal, counselor, librarian, and club, and a fall festival. The school Buckhorn Children and Family Servic- In response to question from 19 certified teachers, and 3 classi- has a state-of-the-art library and a es to capture all available funding to Representative Stone, Ms. Clusky fied staff. The school is located on reading laboratory financed by the serve the area. The service has two said the usual grades served in an 216 acres in Boyd County and serves Ramey-Estep Home and other dona- residential treatment facilities: the A-5 school are 7-12; students are all youth who are in the residential tions. Students participate in a proj- Buckhorn Children’s Center, where referred based on certain behav- Ramey-Estep Home. The average ect appreciation activity for soldiers the Buckhorn Alternative School is iors that are similar throughout the length of stay is 9 months and most stationed overseas and also partici- located, and Dessie Scott Children’s school systems; some students are of the students are court appointed pate in other civic programs, such as Home in Wolfe County. The agency referred to improve academic ability; to DCBS or DJJ. The school is funded preschool literacy, 4-H activities, and children live on-site at each of the and assessment results are included primarily with SEEK monies and re- blood drives. locations in cottages with 8 to 10

THE KENTUCKY GENERAL ASSEMBLY 25 children per cottage. Both facilities district but the Buckhorn principal 67,000 Doctors of Osteopathic Med- Dr. Betz said the Kentucky Os- have Masters’ level therapists who also has the information. Also, there icine (D.O.s) in teopathic Medical Scholarship was work directly with the children, and are students who graduate from the United States. The D.O.’s created by the mental health associates and resi- Buckhorn who have earned a high comprise approximately seven per- Kentucky legislature with coal dential youth workers. Children at school diploma and are entitled to a cent of total United States physi- severance funds. The fund provides Buckhorn are mostly categorized by high school diploma just as any oth- cians and 18 percent of family physi- financial assistance to Kentucky stu- the state as Level 5, which are those er student in the traditional school cians. He said nearly 20 percent of all dents attending an accredited school suffering with the most severe emo- system. United States medical students are of osteopathic medicine in the Com- tional and behavioral issues. Buck- Representative Edmonds enrolled in colleges of osteopathic monwealth. The scholarship fund horn also offers psychiatric residen- thanked all the participants for the medicine. also requires a primary care service tial treatment. Numerous other informative program. He announced Dr. Betz reported that osteo- commitment in Kentucky for every services are provided to the children that the next meeting of the sub- pathic physicians are fully licensed year the scholarship is awarded. and their families in trying to solve committee will be held on Monday, for the complete Since the scholarship’s inception in the problems of these youth. September 13th, in Bowling Green. practice of medicine and surgery 1998, nearly $13 million has been Ms. Miller provided responses There being no further business in all 50 states and many foreign awarded to 461 osteopathic medical to various questions the committee to discuss, the meeting adjourned at countries. He said D.O.’s practice students. members had asked about alternative 12:10 PM. in all medical and surgical special- Dr. Betz reported that over 600 education programs from a teacher’s ties and subspecialties, placing an students have graduated since May point of view. She thinks unan- INTERIM JOINT COMMITTEE emphasis on primary care. Dr. Betz 10, 2001, with nounced visits would be helpful to ON EDUCATION noted that 41 percent of D.O.’s are the degree of Doctor of Osteo- ensure that data is current and that Subcommittee on Postsecondary in family medicine, 10 percent are pathic Medicine (D.O.). Over three- the school is operating as it should, Education in internal medicine, 5 percent are fourths of PCSOM graduates have but the self-nominating process also Minutes of the 1st Meeting in pediatrics, and 35 percent are in entered primary care specialties, of the 2010 Interim depicts a school staff who believe July 12, 2010 non-primary care. including family medicine, general they are providing exemplary ser- Call to Order and Roll Call Dr. Betz said the osteopathic internal medicine, pediatrics and ob/ vices and exceed standards. With The first meeting of the Subcom- medical curriculum parallels the al- gyn. He noted 44 percent of gradu- regard to discipline, teachers need to mittee on Postsecondary Education lopathic (M.D.) ates are practicing in federally desig- think “out-of-the box” and be struc- of the Interim curriculum including all basic nated medically underserved areas. tured, consistent, and caring enough Joint Committee on Education science and clinical disciplines. In Dr. Betz said the PCSOM has to reach children on an emotional was held on Monday, July 12, 2010, addition, osteopathic students re- been ranked in the top 20 of all Unit- level, especially in alternative educa- at 10:00 AM, in Room 131 of the ceive training in Osteopathic Prin- ed States tion classes. With regard to testing, Capitol Annex. Senator Alice Forgy cipals and Practices (OPP) including medical schools in rural medi- other support staff in the classroom, Kerr, Co-Chair, called the meeting Osteopathic Manipulative Treatment cine. PCSOM currently ranks fifth in such as the youth workers, are also to order, and the secretary called the (OMT), integrated throughout their the percentage of graduates entering receiving CATS testing and proce- roll. medical education. The education is primary care residencies (69 percent). dures training to assist the teacher Present were: four years in length. The first two Dr. Betz noted that the Pikeville Col- in testing students of various grade Members: Senator Alice Forgy years is didactic emphasis, and the lege Board of Trustees has announced levels in one classroom. Teach- Kerr, Co-Chair; Representative Les- last two years includes clinical train- plans to construct a new building to ers need to help with transitioning lie Combs, Co-Chair; Senators R.J. ing in hospitals, clinics and doc- house the medical school, which will residential alternative students back Palmer II, Elizabeth Tori, Johnny Ray tors’ offices. He noted graduates are expand classroom, laboratory and of- into the traditional school system. Turner, and Ken Winters; Represen- conferred the degree of “Doctor of fice space. Upon completion in May Buckhorn keeps an assessment note- tatives C. B. Embry Jr., Tim Firkins, Osteopathic Medicine” (D.O.). All 2012, the new building will accom- book on each student who comes Jim Glenn, Reginald Meeks, Jody graduates then complete residency modate an increase from 75 to 125 into the center so they will have a Richards, Tom Riner, Carl Rollins II, (specialty) training for a minimum of students per class. historical academic record. The re- Charles Siler, and Addia Wuchner. three years. The United States cur- In response to a question from cord goes with the student when she Guests: Becky Gilpatrick and rently has 29 accredited colleges of Senator Kerr, Dr. Betz said students or he leaves the program. Many of Jennifer Toth, Kentucky Higher Edu- osteopathic medicine. are taught the students in A-5 and A-6 alter- cation Assistance Authority. Dr. Betz said the Pikeville Col- standard osteopathic manipu- native education, even though they LRC Staff: Ken Warlick and Lisa lege School of Osteopathic Medicine lative treatments. Osteopathic ma- are suffering from emotional and be- Moore. (PCSOM) had nipulative medicine is utilized as a havioral issues, may also be gifted its first class of 60 students modality that is combined with other and talented and their behavior may Overview of the School for Os- enrolled in August 1997 and gradu- modalities to treat the whole patient. overshadow their talents. Longer teopathic Education ated in May of 2001. Its current It is used typically in place of regu- academic hours for children suffering Dr. William T. Betz, Senior As- class size is 75; total enrollment is lar treatments such as pills, muscle with emotional and behavioral issues sociate Dean for Osteopathic Educa- 303 students in four classes. He said relaxants, and injections. He said may not be beneficial. Costs of edu- tion, Pikeville PCSOM’s mission is to provide men specific techniques include: muscle cating A-5 and A-6 students may be College School of Osteopathic and women with an osteopathic energy; strain and counter strainer; higher than a traditional classroom Medicine, reported that osteopathic medical education that emphasizes cranial sacral and high velocity low but the students have issues beyond medicine was founded by A.T. Still, primary care, encourages research, amplitude. a student not confronting the same M.D., in the late 1800’s. Dr. Still promotes lifelong scholarly activ- In response to questions by problems. Buckhorn transitions their founded the Kirksville College of ity, and produces graduates who are Representative Riner, Dr. Betz said students into the local school system Osteopathic Medicine in 1892. He committed to serving the health care there are many before returning them to their local said osteopathic medicine is a total needs of communities in Eastern nationwide programs currently districts, so they will have Buckhorn health care system emphasizing the Kentucky and other Appalachian re- conducting research on the benefit of staff for support and reinforcement body’s innate ability to regulate and gions. The number of applicants has manipulative medicine in increasing of proper behaviors. ACT scores are repair itself through prevention and risen steadily over the past ten years. or improving the body’s ability to de- returned to the Buckhorn center and wellness. PCSOM has one of the highest ratios fend itself. He said D.O.’s receive one the CATS Assessment scores are re- Dr. Betz said there are over of applicants per available seat of any full semester dedicated in the sec- turned to the student’s local school school of osteopathic medicine. ond year of school to learning about

26 2010 Interim LEGISLATIVE RECORD nutrition. He said the population in dents to specialize in primary care. care. Specific graphs can be found increased during the ten-year period. the United States needs to be prop- Dr. Betz said reimbursement issues in the meeting materials located in Specific percentage increases for each erly taught about smart food choices can lead the doctors to leave primary the Legislative Research Commission category can be located in the meet- and nutrition. If not, the population care and enter into specialty areas. (LRC) library. ing materials in the LRC library. will continue to become sicker, more He said the system needs to support President King said the CPE ap- President King said funding obese, and demand more resources primary care doctors. proved tuition increases for fiscal year challenges will include enrollment for healthcare. He emphasized this In response to a question from 2010-2011. Tuition was increased at growth with no state support. He downward spiral needs to be changed Representative Firkins, Dr. Betz said the community colleges four percent, said innovative thinking will be re- dramatically. all the spots in five percent at the comprehensive quired to secure additional sources of In response to questions from the classroom could be filled colleges, and six percent for the two revenue other than tuition increases Senator Kerr, Dr. Betz said physical with students outside of Kentucky, research campuses. He noted the to maintain reform momentum. He activity and but that is not the goal. He said 55 projected new revenue in fiscal year discussed deferred maintenance and exercise is important in treat- to 60 percent of the students in the 2011 is estimated at $43 million. capital renewal versus new capital ing diabetes. He said more doctors program are Kentucky residents. To- This is predicated on no enrollment projects. CPE’s goal is to produce a should look at the bigger picture tal applications for the program are growth and common increases for better educated workforce, stimulat- when dealing with the healthcare up ten percent from last year, and in-state and out-of-state graduate ing economic development through needs of the citizens. He also said he would like to see a ten percent and undergraduate students. He said research, while containing costs. the students of PCSOM are active growth in applicants from Kentucky even with the tuition increases, the In response to a question from in the P-12 schools and educate the as well. He believes that students campuses will absorb almost $53 in Senator Kerr, President King dis- students on nutrition and hygiene. trained from rural Kentucky are more reductions for fiscal year 2011. The cussed South He said the program could be more likely to stay in rural Kentucky to campuses are making these reduc- Korea’s emphasis on higher ed- involved with the students in the P- practice medicine. tions through their internal budget- ucation. He said other countries are 12 system. In response to a question from ary decisions. faring much better than the United In response to questions from Senator Kerr, Dr. Betz said admission President King said the Ken- States with its populations attaining Representative Glenn, Dr. Betz said into the tucky Educational Excellence Schol- baccalaureate degrees. He said Mark Pikeville medical college includes a 3.5 arship (KEES), the College Access Tucker, from the National Center on College tries to get students in- grade point average, an average score Program (CAP), and the Kentucky Education and the Economy, traveled volved at a young age to get inter- of 25 on the Medical College Admis- Tuition Grant (KTG), have remained around the world studying the most ested in healthcare and medicine. sion Test (MCAT), and an interview at fairly consistent levels, with KEES effective K-12 school systems and Representative Glenn stressed that with each individual candidate. He being the largest category of funding. tried to understand what they were children need to be educated early in believes it is important to analyze He said the average tuition cost per doing that was different from the the school years to realize their ca- the whole person instead of just ad- student, including fees and books, is United States. In his report, “Tough reers and prepare for them. Dr. Betz mitting someone based on a certain $7,335. Choices or Tough Times”, he lists said Pikeville College has also just test score. He also said there is a 35 President King said the CPE gen- some recommendations of what the started another program that allows to 1 ratio of students wanting into eral fund appropriation was $49.9 United States can do better in terms high school graduates to be accepted the program per available seat. This is million for 2009-2010. He said 49 of delivery of its education system immediately into medical school if the reason the PCSOM is expanding percent, or $24.2 million is allocated to get better results at a price that certain requirements are met. He also the program from 75 to 125 students for the Kentucky Adult Education is affordable and reasonable. Presi- said Pikeville College does not have a and building a new facility. The pro- program. Pass-through funds com- dent King said students showing up PH.D program in nursing, but he be- gram is not currently teaching acu- prise 39 percent, or $19.4 million, for college who do not need reme- lieves there is a shortage of health- puncture to students, but believes and $6.2 million, 12 percent, is al- diation, are persisting to graduation care practitioners throughout the it can be a source and a capacity for located for staff support for statutory at significantly higher rates, around Commonwealth. healing. duties. He said CPE’s effective budget 70 percent. He said the importance Representative Combs com- Postsecondary Education Finan- cut is 5.3 percent in fiscal year 2011 of getting K-12 fixed is critical to the mented that Pikeville College does cial Overview and 6.3 percent in fiscal year 2012. success of higher education. He also have an associate’s Mr. Robert King, President, CPE’s general fund is about 20 per- stressed it is important for higher program in nursing and there Council on Postsecondary Educa- cent lower than in fiscal year 2008, education to adequately prepare and has been a serious consideration to tion (CPE), reported that Kentucky’s and the CPE staff has been reduced support teachers throughout their implement a bachelor’s program in postsecondary and adult education by 19 positions, or a 19 percent cut careers. President King said he would nursing in the near future. She ex- system is comprised of 8 four-year since fiscal year 2008. President King send a copy of the “Tough Times or plained her background with Pikeville public postsecondary institutions; said CPE is assessing the impact of Times Choices” report to Senator College and the history of the imple- 16 community and technical col- another 1.5 percent cut in fiscal year Kerr. mentation of the medical school. She leges; 20 independent colleges and 2011 and other efficiency measures. In response to a question from described real life success stories of universities; 120 adult education CPE received $4.6 million in fiscal Representative Rollins, President patients with osteopathic doctors providers, 255,000 college and uni- year 2011 and $1.8 million in fiscal King said and said the University of Kentucky versity students, and has more than year 2012 for Senate Bill 1 imple- financial aid is not included in is looking at treating their athletes in 30,000 faculty and staff. He noted mentation. the CPE’s calculation of state share this manner because it is a quicker the state budget increased 33 per- President King discussed House of cost of postsecondary education. healing process. cent during the period of 2000-2010, Bill 1 that was passed by the General He said Kentucky is a national leader In response to questions from while spending on Medicaid, Correc- Assembly in 1997 and how Kentucky in distributing lottery funds into fi- Representative Richards, Dr. Betz tions, and P-12 education increased is doing after a decade of reform. He nancial aid. Representative Rollins said that he does significantly more than funding for said undergraduate enrollments; mentioned the possibility of giving not have the exact numbers of postsecondary institutions. There graduate enrollments; bachelor’s lower subsidies to higher income how Kentucky fares to surrounding have been 11,000 new students add- degrees; six-year graduation rates; students. He also asked for CPE to states. He stressed the goal of the ed into postsecondary education and associate degrees; graduate degrees; provide a state share of cost calcula- program at Pikeville College is to in- no new state funding. Some believe minority degrees; and research and tion that included state funding for crease the number of doctors in the the price of higher education has in- development expenditures have all financial aid. President King said he Appalachia area. The program also creased more than any other sector would get the information to Repre- strongly encourages medical stu- of the economy, including health- sentative Rollins.

THE KENTUCKY GENERAL ASSEMBLY 27 In response to a question from secretary called the roll. ties, Kentucky, and United States gram allows adults with a minimum Representative Combs, President Present were: averages. Traditional metrics include of five years of work experience to King discussed Members: Senator Alice Forgy only first-time, full-time bachelor’s earn college credit. Finally, a Callback private versus public tuition Kerr, Co-Chair; Representative Les- degree-seeking students who gradu- program was implemented where the rates. He agreed with Representa- lie Combs, Co-Chair; Senators R.J. ate from their native institution and university contacts students who tive Combs that innovative ideas are Palmer II, Elizabeth Tori, Johnny Ray does not reflect transfers within the have not registered for a second se- needed to help people and universi- Turner, and Ken Winters; Represen- system. Kentucky’s six-year gradua- mester, connecting them with appro- ties to stretch their dollars. tatives C. B. Embry Jr., Tim Firkins, tion rate had increased from 36 per- priate university resources to address In response to questions from Jody Richards, Tom Riner, Carl Rollins cent in 1997 to 46 percent in 2009, their issues and get them back in the Representative Richards, President II, Charles Siler, and Addia Wuchner. while the United State’s average six- classroom. King discussed Guests: Dennis Taulbee, Coun- year graduation rate increased from Dr. Todd said UK’s “Top 20 Busi- the other countries and the cil on Postsecondary Education; Jay 48 percent in 1997 to 56 percent in ness Plan” set aggressive goals for progress they have made in enrolling Box, Chancellor, Kentucky Commu- 2009. It is important to note that the the educational attainment of its stu- students into higher education. He nity and Technical College System; Jo gap between Kentucky public univer- dents. The plan calls for the six-year even mentioned that some smaller Carole Ellis and Edward Cunningham, sity graduation rates and the nation- graduation rate to increase from 60 countries, such as Finland, pay their Kentucky Higher Education Assis- al average shrunk by two percentage percent to 72 percent by 2020 and students stipends to attend col- tance Authority. points. for the number of Bachelor’s degrees lege. President King said 50 percent LRC Staff: Kenneth Warlick, President King said college-ready awarded to increase from 3,650 to of Kentucky’s colleges and univer- Henry Smith, and Lisa Moore. students are more likely to graduate. 6,350. Achieving these goals starts sity budgets are state supported. He Campus Initiatives Addressing He said this remains the same for stu- with improving student retention noted private giving is improving, but College Completion dents trying to obtain a bachelor’s or from the first to the second year cautioned that state support could Robert King, President, Council an associate’s degree. Detailed charts where most student attrition occurs. continue to decrease as campuses on Postsecondary Education (CPE), on retention rates are located in the The Provost initiated the “War on start raising more private money gave members an overview and re- meeting materials in the Legislative Student Attrition”, which is a series through philanthropy. port on recent trends in college com- Research Commission library. of efforts designed to improve reten- Representative Wuchner dis- pletion in Kentucky. It was noted Dr. Lee Todd, President, Univer- tion and graduation rates and degree cussed studying abroad and how that college graduates earn more and sity of Kentucky (UK), gave an up- completion. students in other are more likely to be employed than date on the two research universi- Dr. Todd explained UK’s reten- countries enter college prepared non-graduates. He also said college ties: University of Louisville (UofL) tion efforts. The “Expansion of Ad- and do not require remediation. She graduates generate a range of other and UK. He said 2020 plans at UofL vising and Student Support Staff” is hopeful the United States can be- benefits for society such as increased set high standards for increasing re- was implemented by UK adding 20 come as efficient as other countries tax revenues, higher rates of voting tention and graduation rates at UofL. professional advisors across several in the future. and volunteering, better health, less The goal is to increase the gradua- colleges, hiring a Director of Reten- Senator Kerr expressed disap- poverty, and lower costs for public tion rate from 43.6 percent to 52.4 tion and Student Success, an advi- pointment to President King that the assistance programs. percent by 2014 and 60 percent by sor exclusively for transfer students, university President King said there is rising 2020. UofL is seeking to emphasize and a Vice President for Institutional presidents were not in atten- concern across the United States on engaged learning to reach these goals Diversity. The “Academic Alert Refer- dance at the meeting. President King college completion rates. President by improving the National Survey of ral System” is faculty and residence said he would relay her message to Obama is promoting the “American Student Engagement scores. In addi- life directors who issue electronic them. Graduation Initiative” and the goal is tion, UofL would like to involve all “alerts” to academic advisors when With no further business be- to produce five million more college undergraduates in a research, com- a student is not attending class, not fore the committee, the meeting ad- graduates by 2020 and improve edu- munity, or applied project. turning in assignments, or exhibiting journed at 12:20 cational attainment. The “Complete Dr. Todd described retention other at-risk behavior. He said Aca- p.m. to Compete” initiative was launched efforts at UofL. The “UofL Transfer demic Enhancement at “The Study” by the National Governors’ Asso- Center (ULTRA)” last year reviewed is a variety of resources in one central ciation to make the United States a 66,000 courses reviewed with 91 location to guide students to more ef- global leader in college completion. percent of those transferring. ULTRA fective learning. The BCTCblue+Dual “Access to Success” is an initiative of has offered services to over 2,900 Enrollment and Scholarship Program the National Association of System students who aspire to earn their is to increase transfer and bachelor Heads, The Education Trust, and 24 Bachelor’s degree from UofL but degree completion of Bluegrass Com- state higher education systems to start their degree at Jefferson Com- munity and Technical College (BCTC) close the gaps in college-going and munity and Technical College. “The students, UK offers them on-site ad- completion by 2015. The Southern Cardinal Covenant Program” created vising about the quickest pathway to INTERIM JOINT COMMITTEE Regional Education Board (SREB) in 2007, was initiated in response to an undergraduate degree and allows ON EDUCATION created the “Promoting a Culture of college costs and the challenge for these students to enroll part-time Subcommittee on Postsecondary Student Success” study to highlight students from low-income families to at UK. After initial BCTC work is Education best practices in member states. Fi- fund their education. UofL will make completed, these students can work Minutes of the 2nd Meeting nally, the “Complete College Amer- a promise to incoming freshmen toward both an associate and bach- of the 2010 Interim August 9, 2010 ica” is an alliance of 23 states and who meet certain criteria to award elor’s degrees simultaneously. The Call to Order and Roll Call 5 foundations to develop common enough gift assistance from feder- Living Learning Communities are part The second meeting of the Sub- goals around increasing completion al, state, private, and institutional of UK’s residence-based program- committee on Postsecondary Educa- and closing achievement gaps. sources to cover their direct costs ming that provides curricular and tion of the Interim Joint Committee President King said the produc- (tuition, room, board, and books). cocurricular experiences supporting on Education was held on Monday, tion of degrees in Kentucky has in- The UofL Office of Military and Vet- the successful transition of first-year August 9, 2010, at 10:00 AM, in creased 100 percent in ten years. He erans Affairs is an office committed students. He concluded by saying Room 131 of the Capitol Annex. Rep- discussed the four, five, and six-year to facilitating the transition and ac- UK has expanded the Programs for resentative Leslie Combs, Co-Chair, graduation rates of public universi- climation of military and veteran First Generation Students. called the meeting to order, and the students from military life to college Approval of Minutes life. The Workforce Leadership Pro- Upon obtaining a quorum, Chair

28 2010 Interim LEGISLATIVE RECORD Combs asked for approval of the July struction in one location. tucky Community and Technical Col- with the average ACT score for new 12, 2010, minutes. Representative Dr. Bonaguro said an emphasis lege (KCTCS), said KCTCS is engaged students at each university and the Richards made the motion to ap- on advising has increased, as has in- in the development of a transforma- number of Pell grant students. He prove the minutes, and Senator Tori trusive advising (offered by trained tional business plan designed to en- commended WKU on their leader- seconded the motion. The minutes Peer Intrusive Advisors for academi- sure the state’s economy not only ship and success. were approved by voice vote. cally at-risk students). The “Learning survives but thrives during the next Senator Kerr commented that Campus Initiatives Addressing Center” has a strong selection and decade. The statewide system of 16 universities need to utilize the new College Completion training program for tutors, and it of- colleges and 68 campuses is in the tools in technology. She mentioned President King said that Mur- fers free tutoring for students in more early stages of reinventing itself to Skype as a way to provide a personal ray State University and Western than 100 general education courses. ensure the success of its students and touch in communicating with stu- Kentucky University were recently She said advising by both faculty and the state’s economy. KCTCS focuses dents who may be far away. cited in a study completed by SREB professional advisors are a strong on consumer needs and serves high In response to questions from as two of the best and most success- component of student success. Man- school students through dual credit Representative Wuchner, President ful programs at generating college datory advising is required until a courses, working adults, and unem- King said the data provided in the completion. Dr. Gary Ransdell, Presi- student reaches 90 credit hours and ployed or underemployed adults. graduation rates is first-time, full- dent, Western Kentucky University has an Application for Graduation on Dr. Box said there is plenty of time students. He said the cam- (WKU), said WKU’s focus is on de- file. Advisors are offered a variety of national and state data that supports puses are currently making an effort gree productivity. After a student is training opportunities that stress the the critical role KCTCS will play in to reach out to students who had admitted into the school, WKU will importance of advising, retention, moving the state forward. Kentucky earned 90 credit hours, but never do all that it can to make sure that and four-year degree completion. The leads the nation in the number of finished their degree. He said these a student graduates in a reasonable Campus Advising Network (CAN) certificates awarded from all postsec- adults are usually employed, have amount of time. He deferred to his meets monthly to provide training ondary institutions per 1,000 adults families, and vary in age from their staff to give specifics on retention for faculty and professional advisors. (ages 18-44) with no degree. In thirties to fifties. He said he could and completion programs. The Master Advisor Certificate pro- 2008, Kentucky awarded 15.8 certifi- get the data for this population and Mr. Dale Brown, Interim Asso- gram is for faculty only and is in its cates per 1,000 adults. The national part-time students to Representative ciate Vice President for Enrollment fourth year and the Advisor of Excel- average was 5.9. In addition, KCTCS Wuchner. President King said Senate Management said WKU is offering a lence Certificate Program is offered offers 17 associate degrees that pre- Bill 1 should have a big impact in the master’s degree in literacy beginning for professional advisors. pare students for occupations that years to come on the huge remedia- in the fall of 2010. He said this will Dr. Bonaguro said the on-line are growing higher than the state av- tion rates currently being required of increase the number of Advanced audit degree program is extremely erage and median wages at the 75th new college students. He said K-12 Literacy Professionals available to important for degree completion. percentile for the state. There are will now focus on preparing students school districts. These audits can help students to 42 KCTCS programs that are at the for college instead of passing the Mr. Brown said WKU received “map” their degree progress and help state’s median wage or higher. Final- Commonwealth Assessment Testing the maximum available grant funds themselves to finish college sooner. ly, KCTCS is the state’s predominant System (CATS) test. from the CPE to assist in funding for She said general education require- access point for non-traditional stu- President King said there will a proposal for the pilot project “Pre- ments are being analyzed across the dents. In fall 2009, 77 percent of the be public forum held on September paring 4 the Final 4”. He said it is universities to determine how many part-time undergraduates enrolled at 1, 2010, including all the university critical to establish a personal rela- courses are required in each subject a Kentucky public institution were presidents, that will address college tionship with the student early. The category. She also said most univer- enrolled at KCTCS. Similarly, 69 per- readiness issues and working with first three weeks can be the most sities are making 120 hours the stan- cent of undergraduates over the age the K-12 system. He said topics will critical time for a student and safety dard time to graduate. of 25 were enrolled at KCTCS. include college placement exams and nets need to be in place. Dr. Bonaguro said the early alert Dr. Box said there are four key new programs for identifying and Mr. Brown said the WKU Cen- program to focus on retention has service areas that KCTCS will focus more effectively training aspiring ter for Literacy will open in the fall been implemented since 2004. She as it reinvents itself. They are career teachers. of 2010. He said WKU has a strong said WKU would share this informa- development, job placement services, collaboration with the 32 school dis- tion with anyone that is interested student services, and financial aid. He KHEAA College Access Initia- tricts within the Green River Educa- and it focuses on retaining freshmen. said that KCTCS encourages students tives and Outreach tional Cooperative. In addition, he She also said WKU is supportive of to complete an associate’s degree Mr. Edward Cunningham, Execu- explained the math pilot test that mid-term grades and specific reten- before transferring to a comprehen- tive Director, Kentucky Higher Educa- was conducted with the students in tion programs for minorities and at- sive university as this increases the tion Assistance Authority (KHEAA), Warren County, Kentucky. He said risk students. chance of successful degree comple- said KHEAA is the state government ACT results indicated students were In response to a question from tions. He also said high school stu- agency that provides students with struggling with math abilities and Representative Riner, Dr. Bonaguro dents completing dual credit courses financial aid, informational services, succeeding at the college level. Af- said Morehead State University and are more apt to complete bachelor’s and savings programs. He noted that ter the students completed the pilot Eastern Kentucky University are both degrees in a four-year time period. He there is a direct correlation between project, students were vastly more hiring a Veteran’s Affairs specialist noted almost 80 percent of students education and income. Kentucky prepared for college level mathemat- just to handle Veterans entering into entering postsecondary education ranks 48th in per-capita income and ics. The math pilot project is being the university. She said WKU has a are not prepared. has the 5th highest poverty rate in expanded to all high school juniors Veteran’s office within the financial Senator Shaughnessy said this the United States. He noted outreach based on its success. The detailed aid program, and wants to focus on was the most useful information he services are extremely important be- chart and statistics are located in the more military initiatives in the fu- has received regarding four, five, and cause this environment can lead to meeting folder in the LRC library. ture. Dr. Ransdell said that UofL has six-year student graduation rates. He a cohort who could benefit greatly Dr. Ellen Bonaguro, Associate a number of programs to serve Veter- asked President King to provide the from higher education, but who do Dean, Enrollment Services, said the ans as well. He concluded by saying subcommittee with separate reports not see or understand the potential Academic Advising and Retention Kentucky has more first-time genera- of degree and credentials awarded value. Education beyond high school Center (AARC) is one of the most tion students entering and graduat- over a ten-year period for state uni- is key to the economic vitality of the visible examples of student success. ing from college and this is exactly versities, private colleges, and com- Commonwealth and to the nation as It provides academic advising, reten- what Kentucky needs. munity colleges. He also asked Presi- a whole. KHEAA has developed and tion services and supplemental in- Dr. Jay Box, Chancellor, Ken- dent King to provide the committee manages a very broad-based and ex-

THE KENTUCKY GENERAL ASSEMBLY 29 tensive statewide outreach program. low-income students; postsecond- LRC Staff: Taylor Moore, and for biomass briquettes. He deferred to Ms. Susan Hopkins, ary enrollment; adults enrolling in Susan Spoonamore, Committee As- In response to Representative Outreach Services Manager, to pro- college; change in students apply- sistant. Gooch, Ms. Tanselle said that the vide specific details. ing for financial aid; and use of on- Coal Upgrading Technology company was using fines from slurry Ms. Hopkins said there are three line tools. She also said student and Judy Tanselle, President of pits, drying it and then making it into goals of the outreach program. They counselor surveys are used as tools White Energy Coal North America, a briquette. She said in some cases, are: informing students about the for program evaluation. Inc., stated that White Energy is an they were mixing that with other many benefits of higher education Ms. Hopkins said KHEAA was Australian company that is now a coal. and about the many opportunities the recipient of the College Access diversified coal company. Coal is a In response to Representative to continue their education beyond Challenge Grant as designated by major energy source for the United Gooch, Ms. Tanselle stated there high school; giving free information Governor Beshear. She said college States, India and other countries. would be the possibility of bringing to students and parents to assist access is a strong priority in the The world is recognizing that coal is coal in from Wyoming. For an ex- them in making informed decisions state and the funds allow KHEAA to necessary, but it needs to be cleaned ample, she stated that Duke Energy on planning and paying for college enhance and strengthen the array of up in order to reduce coal emissions. runs on lower sulfur coals. Duke En- or technical school; and familiarizing services to students and partners. White Energy is an exclusive world- ergy would require two different bri- Kentuckians with the financial aid She said new initiatives include new wide licensee of a patented technol- quettes which would be blended. programs and services. college planning tools, mentors in ogy which upgrades high- moisture, In response to Representa- Ms. Hopkins said there are field high-risk schools, enhancements to low- value coals through a low cost tive Gooch, Ms. Tanselle said that and mobile outreach staff that span Kentucky’s electronic career and col- process of dehydration and compac- the Louisville plant would be better thirteen geographical service areas. lege planning tools, and providing tion which forms a higher-density, suited to the fines that have already Outreach counselors, who live and additional field staff. higher-energy briquette. been pulled and dried so they can be work in each area, reach out to the In response to a question from Ms. Tanselle stated that the Jef- shipped. She also said the company citizens of the Commonwealth by Representative Combs, Mr. Cunning- ferson Riverport Project, in Louisville is looking at a slurry site in Eastern providing workshops, exhibits, and ham said he would like to bring the has the potential to be the first Unit- Kentucky. professional development to vari- mobile unit and park it outside of the ed States Binderless Coal Briquette In response to Representative ous groups. She also discussed the Capitol during the next legislative (BCB) plant. White Energy has al- Butler, Ms. Tanselle stated that the “College Info Road Show” that uses session. ready tested Kentucky coal fines in briquette could contain anywhere technology, such as satellite internet Representative Combs an- Eastern and Western Kentucky and from 10 percent to 30 percent of access, to contact students with the nounced that the next meeting the results were positive. The com- biomass. As far as obtaining the information they need to research, would be held at South Warren High pany plans to seek board approval to materials needed for biomass bri- pursue and succeed in education School, Bowling Green, Kentucky, on proceed with the project in August quettes, she said it was not feasible beyond high school. She said twelve September 13, 2010 at 10:00 a.m., once the local air permit is issued and at this point. More research is being computer workstations with auto- CDT. if it qualifies for incentives under the conducted on the type of crops that matic Internet access allow students With no further business be- Kentucky Incentives for Energy Inde- would be suitable. to explore kheaa.com and helpful fore the committee, the meeting ad- pendence Act. White Energy hopes In response to Representative websites, check their Kentucky Edu- journed at 11:55 a.m. to have the plant operational by the Steele, Ms. Tanselle said that any- cation Excellence Scholarship (KEES) fourth quarter of 2011. where in Eastern Kentucky where account online and search for col- SPECIAL SUBCOMMITTEE ON Ms. Tanselle said that several ash is not too high would be good to leges that match their interests. ENERGY utilities were interested in this proj- site a plant, especially because of the Ms. Hopkins said there are age- Minutes of the 2nd Meeting ect, although most of the interest availability of older waste piles. appropriate presentations for differ- of the 2010 Interim has come from outside of Kentucky. In response to a question from July 16, 2010 ent grade levels. The “Getting In” The utilities in Kentucky are more Representative Hall, Ms. Tanselle guide is provided to all high school Call to Order and Roll Call interested in the development of a stated that in processing briquettes, seniors through their school coun- The 2nd meeting of the Special biomass briquette. It is the goal for anything above 30 percent ash would selor. It provides information about Subcommittee on Energy was held White Energy to create a briquette not be good. colleges, technical colleges, and on Friday, July 16, 2010, at 10:00 out of Kentucky coal and Kentucky Mr. Bissett stated that Kentucky trade schools; majors; costs; how to AM, in Room 131 of the Capitol An- grown energy crops that will meet ranks third in production of coal. get enrolled; and financial aid. She nex. Senator Brandon Smith, Chair, the Renewable Portfolio Standards Even if Kentucky and West Virginia said there is an “Adults Returning called the meeting to order, and the (RPS) with the existing coal-fired were combined, production would to School” guide that is a resource secretary called the roll. power plants. She explained that not reach Wyoming as the number to help nontraditional students find Present were: White Energy is working with an one coal producer. Kentucky mined their way into the educational sys- Members: Senator Brandon energy crop company that focuses 115 million tons of coal in 2009. He tem. Smith, Co-Chair; Representative strictly on crops that work well for said that 92 percent of Kentucky’s Ms. Hopkins said newspaper ar- Keith Hall, Co-Chair; Senators Katie energy and enhance the biomass bri- electricity comes from coal, therefore ticles and pre-produced radio public Kratz Stine, and Gary Tapp; Represen- quettes. Kentucky benefits from inexpensive service announcements are prepared tatives Royce W. Adams, Eddie Bal- In response to Representative electricity rates just behind Utah, by KHEAA’s publications team and lard, Dwight D. Butler, Leslie Combs, King, Ms. Tanselle stated that the Wyoming, and West Virginia. distributed to media outlets in each Tim Couch, Will Coursey, Jim Gooch process of compacting briquettes was Mr. Bissett explained that the territory. The articles are time-sensi- Jr., Martha Jane King, Lonnie Napier, still greenhouse gas negative because coal severance tax for fiscal year tive, designed to make students and Fred Nesler, Tom Riner, Fitz Steele, the process did emit carbon dioxide. 2010 experienced a reduction of 7.1 families aware of when, during the and Brent Yonts. The plant power itself will see about percent due to the decline in pro- financial aid and admissions cycle, Guests: Judy Tanselle, President, a 15 percent to 30 percent reduction. duction. In addition, the industry is they should be performing certain White Energy Coal North America, Ms. Tanselle said that their plants do struggling with federal regulations, tasks, such as filling out the Free Inc., Rockville, Maryland, William have scrubbers. and the non-issuance of 404 permits Application for Federal Student Aid Zipf, Vice President of Marketing and In response to Representative which are vital to the mining of coal. (FAFSA) form. Development, White Energy Coal King’s question, Ms. Tanselle stat- He said it was hard to get answers Ms. Hopkins said indicators of North America, Inc., Rockville, Mary- ed that White Energy is focused on from the Environmental Protection success include: college participation land, and Bill Bissett, President, Ken- switchgrass, but is also researching Agency and the U.S. Army Corps of rates; college participation rate of tucky Coal Association. the merits of using miscanthus grass Engineers as to why the permits were

30 2010 Interim LEGISLATIVE RECORD being delayed or not issued. One of Senator Julie Denton, Co-Chair, called while the children are at camp. Dr. the meeting was adjourned at 3:00 the new rules adversely affecting the meeting to order 12:30 p.m. CDT, Whit Boone, pediatric cardiologist, p.m. Kentucky is the Conductivity Stan- and the secretary called the roll. Pediatrics Heart Care Partners, and dards, which only affect six Appala- Present were: found of the Camp Braveheart, said INTERIM JOINT COMMITTEE chian Coal Industry states. Members: Senator Julie Denton, that all children deserve a chance to ON JUDICIARY Mr. Bissett also explained that Co-Chair; Representative Tom Burch, have fun and experience life-chang- Minutes of the 2nd Meeting there is an anti-coal movement which Co-Chair; Senators Perry B. Clark, ing events and help them recognize of the 2010 Interim July 14, 2010 involves the Bank of America agree- Denise Harper Angel, Joey Pendleton, their abilities. Call to Order and Roll Call ing to no longer finance coal compa- and Jack Westwood; Representative Approximately 128 seriously ill The 2nd meeting of the Interim nies that do mountain top removal. Brent Housman. children with the same illness at- Joint Committee on Judiciary was In addition, the Sierra Club, which Guests: Roger F. Murtie, Presi- tend one of the nine weeks of sum- held on Wednesday, July 14, 2010, at has a budget of $81 million, has been dent, Dr. Tracey Gaslin, Certified Pe- mer camp. While the ill children 10:00 AM, in Room 171 of the Capi- successful in thwarting the construc- diatric Nurse Practitioner, The Cen- are at camp, their parents enjoy a tol Annex. Senator Tom Jensen, Chair, tion of new coal-fired plants. ter for Courageous Kids; Dr. Whit week of respite from caregiving and called the meeting to order, and the He said the Kentucky Coal As- Boone, pediatric cardiologist, Pediat- are able to focus on each other and secretary called the roll. A quorum sociation embraces renewable energy rics Heart Care Partners, and found their well children. Approximately was present and the minutes of the resources such as wind, solar, bio- of the Camp Braveheart; Berlinda Ba- 4,500 children and family members June 9, 2010 meeting were approved mass and geothermal. By 2025, the zzell, Vice President of Parent Group from 22 states and Canada have at- without objection. demand for electricity will increase at Oakwood; Jackie Marquette, par- tended the summer camps. During Present were: by 40 percent. ent; Steve Johnson, Owensboro the school year, family retreat week- Members: Senator Tom Jensen, Mr. Bissett explained the five Medical Healthcare Systems; Terry ends are designed to provide respite, Co-Chair; Representative John Tilley, points favoring coal: abundance, Brownson, Wendell Foster’s Cam- recreation, and support programs for Co-Chair; Senators Perry B. Clark, affordable, reliable, jobs, and clean- pus, Owensboro; Bobby Young, Allen families dealing with a child suffering Carroll Gibson, Ray S. Jones II, Ger- coal technology. County Judge; Jay Blanks, Director, from a chronic illness. The three big- ald A. Neal, Mike Reynolds, Jerry P. In response to Representative Community Development; Nancy gest needs of the center are camper Rhoads, Dan “Malano” Seum, Katie Steele, Mr. Bissett said that the de- West, Chamber of Commerce, Allen referrals, financial contributions, and Kratz Stine, and Jack Westwood; cision of Bank of America to not fi- County Economic Development Of- volunteers. The Center remains open Representatives Jesse Crenshaw, Kel- nance coal companies that do moun- fice; Ritchie Sanders, Allen County due to the generous contributions ly Flood, Jeff Hoover, Thomas Kerr, tain top removal was made after the Economic Development Office; and of individuals, foundations, and cor- Stan Lee, Mary Lou Marzian, Darryl T. federal government bailed the banks Beth Jurek, Executive Director, Of- porations with a heart for seriously Owens, Tom Riner, and Brent Yonts. out. fice of Policy and Budget, Cabinet for ill children. Additional information Guests: Therese Richerson, Ken- Representative Combs stated it Health and Family Services. about the center can be found at tucky Highway Safety; Jennifer Hans was important for other people in Guest Legislator: Representative www.courageouskids.org. and Bob Stokes, Office of the Attor- the state to understand that the coal Wilson Stone. Consideration of Referred Ad- ney General; Michael Meeks, Frank- companies are trying to do things the LRC Staff: DeeAnn Mansfield, ministrative Regulations fort Lobbyist; Kelly Davis, Nekton right way and produce a much need- CSA; Miriam Fordham, Ben Payne, The committee considered re- Technologies; Bill Patrick, Kentucky ed resource, which produces coal Jonathan Scott, Gina Rigsby, and ferred administrative regulations, County Attorneys Association; An- severance money with a percentage Cindy Smith. 201 KAR 22:045 - establishes con- gela Criswell, MADD; and Bill Doll, going into the General Fund. The Center for Courageous Kids tinued competency requirements and Kentucky Medical Association. In response to Representative Roger F. Murtie, President, The procedures as a condition of licensure LRC Staff: Norman Lawson, Jon Gooch, Mr. Bissett stated that people Center for Courageous Kids, wel- by the Board of Physical Therapy; and Grate, Ray DeBolt, Joanna Decker, will not become engaged in the issue comed the committee members 201 KAR 22:135 – establishes the Kyle Moon, and Rebecca Crawley. until utility rates increase. Diversi- and conducted a tour of the facility fees required to apply for a creden- Global Positioning Monitoring of fying Kentucky’s energy portfolio is grounds. The mission of the cen- tial by application, reinstatement, Offenders-The Tennessee Experience not a bad thing, but doing it at the ter is to uplift children who have or renewal of licenses for physical The first speakers were Direc- expense of coal is going to harm Ken- life-threatening illnesses by creat- therapists. A motion to accept the tor of Field Services Gary Tullock and tucky. ing experiences year-round that are administrative regulations was made GPS Program Director Susan Shet- Representative Combs and Rep- memorable, exciting, fun, build self- by Senator Westwood, seconded by tlesworth of the Tennessee Board of resentative Steele said that the coal esteem, are physically safe, and med- Senator Clark, and accepted by voice Probation and Parole, who discussed businesses were helping to fund pro- ically sound. At the center, chroni- vote. implementation of the Tennessee grams in the communities. Repre- cally ill children can participate in Legislative Review of Executive Serious and Violent Sex Offender sentative Steel commented that ev- fun activities at absolutely no cost Order 2010-431 relating to the Cabi- Monitoring Pilot Project Act enacted ery Friday is Coal for Kids day which to the children or their families. It net for Health and Family Services in July 2004 which authorized sex provides food and clothing for the is a multi-disease therapeutic camp Beth Jurek, Executive Director, offender monitoring using global needy. program that provides medically su- Office of Policy and Budget, Cabinet positioning systems on a pilot basis Meeting adjourned. pervised, recreational activities for for Health and Family Services, was and which required a study and em- children ages 7 to 15 with chronic or present to answer questions. Marie pirical analysis. Based on the legisla- INTERIM JOINT COMMITTEE life-threatening illnesses. Dr. Tracey Allison and Jackie Marquette, par- tive mandate, the Board of Probation ON HEALTH AND WELFARE Gaslin, Certified Pediatric Nurse Prac- ents of children with disabilities, ex- and Parole set the long-range goals Minutes of the 2nd Meeting titioner and medical director, stated pressed their concerns about moving of the GPS monitoring program as of the 2010 Interim that one goal of the camp is to teach the Hart Supported Living Program July 21, 2010 crime prevention, crime detection, children life skills and help have life from the Department for Behavioral condition monitoring, behavior mod- Call to Order and Roll Call changing experiences. All children Health, Developmental and Intellec- ification, and intermediate sanction. The second meeting of the In- at the camp are safe, loved, and re- tual Disabilities to the Department for Originally contracted to a vendor, terim Joint Committee on Health and spected. The medical and program Aging and Independent Living. There the Board then decided to establish Welfare was held on Wednesday, July staffs are highly trained pediatric was a motion by Senator Westwood, a central monitoring system known 21, 2010, at 11:00 a.m. CDT/ 12:00 professionals with expertise in medi- seconded by Representative Hous- as the GO Center using existing p.m. EDT, at The Center for Coura- cine and therapeutic programs and man, and approved by voice vote. state employees to monitor offend- geous Kids in Scottsville, Kentucky. are able to conduct continuing care There being no further business,

THE KENTUCKY GENERAL ASSEMBLY 31 ers, determine when violations have ing entity and then to the GO Center ertson said ignition interlock devices violation information, whether an occurred, and provide for immediate where alerts are sorted, and determi- are designed to protect the public offender could kick start the vehicle intervention when needed. The pilot nations are made on whether action by incapacitating drunk drivers. She to avoid blowing into the device group monitored 493 offenders from is required, because not all alerts are said interlocks are not designed to (Ms. Robertson indicated this is re- rural, suburban and urban areas in 11 a sign of offender misconduct. All change drinking behavior, and that corded as a violation by the device), counties. Lessons learned included stakeholders need to be informed changes in drinking behavior must be an offender purchasing and driving a existing sex offenders who were on about types of alerts and what ac- a combined use of the interlock with non-interlock equipped vehicle, and parole considered GPS monitoring as tion may be necessary. Technical an appropriate treatment interven- whether the state is potentially giv- an additional punishment, but new alerts include low battery warnings, tion. Evaluation of ignition interlock ing a monopoly to a vendor of the parolees were more accepting of the power loss, and phone connect land- use shows a 35% to 90% reduction ignition interlock service. Others program; some offenders moved from line failure. Tamper alerts include in recidivism, with a recent average praised legislation to expand the use monitoring counties to non-moni- battery tampering, tracking device of 64%. Recidivism by non-inter- of ignition interlock devices in Ken- toring counties to avoid GPS moni- housing tamper, and strap tamper. lock users is higher than for inter- tucky which has been introduced toring; there were significant impacts Violation alerts include charger vio- lock users. Recommended minimum in previous sessions but has not on officers including morale prob- lation, inclusion and exclusion zone interlock use time is six months and passed. lems caused by unpredictable work violation, cuff leave violation, equip- persistent offenders need to be re- Ed Monahan, Public Advocate, schedules, increased overtime, qual- ment did not call violation, and GPS quired to retain the interlock device addressed the ignition interlock de- ity of life issues (such as having to blocking violation. Actions taken for to ensure they cannot drive while vice issue on behalf of the Kentucky leave a family event to resolve a GPS serious violations include reporting drunk. Ms. Robertson said recidivism Department of Public Advocacy. He alert) and increased staff turnover; probationers to the courts, reporting rates increase when the devices are said there are 39,000 DUI arrests in GPS monitoring requires more staff parolees to Board of Probation and removed, but the overall net benefit Kentucky each year and DPA defends resources because knowing about a Parole, and reporting new offenses to of the device still remains. Cost of 20,000 of them because they are in- violation and doing nothing about it District Attorneys device use decreases as the number digent clients. Mr. Monahan said if is unacceptable; determining a sus- Benefits of GPS monitoring in- of users in a given area increases. ignition interlock devices become tainable caseload level for officers clude monitoring offender daily ac- The interlock device is designed mandatory, many of his agency’s cli- was important; developing an on-call tivities, establishing and monitoring to prevent a person from starting ents will not be able to drive and will officer schedule for after hours alert of inclusion and exclusion zones, the vehicle if a preset breath alcohol possibly lose their jobs and their abil- response was critical, and turnover is identifying patterns of offender ac- concentration is exceeded, normally ity to support their families. He rec- to be anticipated. tivity, verifying offender location, de- 0.02. The devices also provide for ommended any legislation passed in The 2004-2005 funding was a terring behavior, identifying violation “running retests” while the vehicle Kentucky provide fee waivers, lower nonrecurring FY $2.5 million appro- of supervision standards, and using is being operated. The device signals cost options, and assistance for the priation followed by a $1.235 million GPS data as evidence. An example of the driver they have a specified pe- indigent. He noted eleven states increase in FY 2005-2006. Lessons suspicious pattern of activity was an riod of time to pull over and retest have passed mandatory interlock learned included that GPS parole su- offender going to a certain location or the vehicle’s lights begin to flash legislation and eight of those waive pervision costs more than traditional every day (which was not a viola- or the horn sounds. Older interlock costs for indigent defendants. parole supervision but you know tion itself) but when officers checked devices with semiconductor sensors Mr. Monahan also observed that more about what the parolee is doing they found the location was a liquor are less effective and may be affected interlock devices have limitations by and increased officer overtime should store and the offender who had been by altitude and other factors, but measuring only breath alcohol con- be anticipated. GPS parole officers ordered not to possess alcohol was newer devices using electrochemical centration and that limiting starting need to be on call 24 hours a day 7 apprehended purchasing it. In oth- sensors (fuel cells) are more effective a vehicle at 0.02 is at odds with the days a week. er cases GPS was used to identify and are more alcohol specific. Some presumption that a person is not The current Tennessee GPS speeding by the offender. jurisdictions permit or require courts under the influence of alcohol until monitoring contract is $5.60/day per Questions from legislators in- to order interlock use while other ju- they reach 0.05 alcohol concentra- person which has decreased from the volved the time from alert to officer risdictions permit the licensing agen- tion. Failure of the interlock device previous $9.00/day per person. The intervention and Mr. Tullock said this cy to order interlock use. to permit a person to start a vehicle, program includes some sex offenders, is highly variable because of distanc- Device installation costs are even for a false positive reading, may high risk offenders, victim sensitive es officers have to travel or whether approximately $70, with a $70 per mean a person loses their job because cases, sanctioned offenders and gang local law enforcement can intervene month monitoring fee. There are they are late, or that they could have members. The supervision includes more swiftly, and liability issues if problems with indigent drivers who a health problem requiring immedi- specially trained, dedicated officers there is no response or a delayed cannot afford to pay the fees and ju- ate transportation and there are no working non-traditional hours, risk- response and someone is injured or risdictions have defined indigency in safeguards to prevent a complete based use of GPS monitoring, an killed. Another question related to different manners. Some states have loss of transportation. “Designated intense level of contact with offend- the total cost per person per day of attempted to create funds for indi- blowers” will evade the system and ers, a high degree of interaction with GPS monitoring, including the GO gent drivers by various means includ- any person who is high on drugs but treatment providers and law enforce- Center and officer intervention. Fol- ing surcharges. Typically, legislation not drunk can operate an interlock ment, and close interaction with an lowing the meeting Mr. Tullock pro- provides sanctions for driving a non- equipped vehicle. Interlock devices offender’s family, friends, and em- vided information that the cost was interlocked vehicle, tampering with are already permitted by law but are ployers. GPS monitoring is used for $26/day per person. Mr. Tullock said or circumventing the ignition inter- used in less than 1% of the cases high risk serious offenders, domestic out of 946 GPS monitored offenders, lock device, another person providing where they are authorized. Recent violence, stalking, behavior modifica- 98 had their parole revoked (28 of the a breath sample, requesting another proposals for mandatory use of in- tion, as an intermediate sanction for violations being revealed by GPS) and person to provide a breath sample, terlock devices would apply to thou- probation and parole violators, and the other violations were discovered and providing a non-interlock vehicle sands of convictions per year. Mr. as a component of a comprehensive through other means. to a driver required to use an inter- Monahan also provided information case plan for the offender. Ignition Interlock Devices lock device on a DUI case in London, Kentucky Passive monitoring requires the Robyn Robertson of the Traf- Several legislators questioned where an ignition interlock device offender to download GPS informa- fic Injury Research Foundation from the availability of interlock devices was activated by the driver having tion to a sending device at specified Canada spoke on the use of ignition and maintenance in rural areas, ac- eaten a bologna sandwich and the times. Active monitoring sends in- interlocks for persons convicted of countability of vendors, chain of cus- case was dismissed. formation by satellite to the monitor- driving under the influence. Ms. Rob- tody questions about downloaded Department of Public Advocacy

32 2010 Interim LEGISLATIVE RECORD Social Worker Program then can be reinvested in more social factors and multipliers to the loss the plan would not jeopardize the Mr. Monahan also made a pre- workers and more community-based costs to determine the rates that will financial solvency of KEMI and that sentation on alternative sentencing treatment programs which are more be charged. it was not discriminatory against its social workers who have been uti- effective. Kurt Dooley, NCCI actuary, pre- policyholders. lized by the Department of Public The meeting adjourned at 12:30 sented an overview of the workers’ Jon Stewart, Executive Vice-Pres- Advocacy for several years. Features p.m. compensation marketplace and the ident of KEMI, and Michelle Landers, of the program include use of the basis for the loss cost filing. Since General Counsel of KEMI, not listed attorney-client privilege to increase INTERIM JOINT COMMITTEE 2006, the cumulative change in the on the agenda, spoke on behalf of candid client participation; improved ON LABOR AND INDUSTRY loss cost filings was a decrease of KEMI. Mr. Stewart said KEMI’s board coordination and cooperation among Minutes of the 1st Meeting more than 20 percent. The overall of directors decided in March to issue criminal justice agencies and treat- of the 2010 Interim change is a decrease of 10.3 percent; a $30.8 million dividend to its poli- July 15, 2010 ment providers; the large number of although the change for the employ- cyholders. The dividend plan exclud- Call to Order and Roll Call criminal defendants represented in er classifications will vary, the overall ed policyholders that had a loss ratio The 1st meeting of the Interim the program is well suited to a col- decrease averages 10.3 percent. Mr. greater than 75 percent and those Joint Committee on Labor and In- laborative effort with prosecutors Dooley reiterated that the proposed that had not been a policyholder for dustry was held on Thursday, July and probation/parole officers to ad- loss costs are only a small part of the more than 180 days. Also, a policy- 15, 2010, at 10:00 AM, in Room 131 dress alcohol and substance abuse overall rates charged by carriers and holder with an annual premium of of the Capitol Annex. Senator Alice by offenders; and early intervention do not include expense factors. less than $350 was excluded. After Forgy Kerr, Chair, called the meeting provides a detailed, evidence-based Mr. Dooley explained the work- the exclusions, about 66,000 KEMI to order, and the secretary called the sentencing and release plan for the ers’ compensation loss ratios that policyholders would be eligible for a roll. courts to consider which increases formed the basis of the recommend- dividend payment. The funds for the Present were: the likelihood of pretrial release or ed reductions in the loss cost filing. dividend payment will be taken from Members: Senator Alice Forgy probation with an individualized The loss ratio for indemnity (income KEMI’s profits. Kerr, Co-Chair; Representative Rick sentencing plan. benefits paid as a percentage of pre- Mr. Stewart and Ms. Landers G. Nelson, Co-Chair; Senators Julie Alternative sentencing social mium) continues to decline in Ken- responded to questions from Rep- Denton, Denise Harper Angel, Ray S. workers provide judges with relevant tucky. The medical loss ratio (medical resentative Koenig, Senator Kerr, Jones II, and Katie Kratz Stine; Repre- mitigating information about a de- expenses as a percentage of premi- Representative Farmer, and Senator sentatives Will Coursey, C. B. Embry fendant’s physical and mental health, um) has been stable for a number of Stine. Mr. Stewart said the surplus Jr., Bill Farmer, Richard Henderson, social history, resources available in years, but it has declined during the is the policyholder surplus which is Charlie Hoffman, Dennis Horlander, the community, and identify positive past decade. The loss ratio decreases the equity and retained earnings of Joni L. Jenkins, Thomas Kerr, Adam alternatives to incarceration. The are based primarily on the decline in the business and is not a cushion Koenig, Mary Lou Marzian, Charles program saves on incarceration costs the frequency of claims. as reported in news articles. Ms. Miller, Tom Riner, Charles Siler, and by using community-based treat- For the coal mining classifica- Landers reported that KEMI reviewed Jim Stewart III. ment and has shown an 18% reduc- tions, the loss cost filing recom- the transparency recommendations Guests: Sharon Clark, Com- tion in recidivism after six months mended no change in the surface of the state auditor and found that missioner, Kentucky Department of while increasing the client’s econom- coal mine class. For the underground KEMI complies with most of them Insurance; Randy Peppers, Actuary, ic self-sufficiency through work, pay- coal class, the filing recommended an and are reviewing others to deter- Kentucky Department of Insurance; ing taxes, paying child support, and increase of 10 percent for traumatic mine whether they are applicable. Cathy Booth, State Relations Execu- paying restitution and court costs. injuries and a slight decrease for oc- She commented further that KEMI tive, National Council on Compensa- Mr. Monahan explained the role cupational disease. Overall, the filing has always had a policy of transpar- tion Insurance (NCCI); Kurt Dooley, of the DPA social worker prior to recommended a 7.1 percent average ency. Mr. Stewart and Ms. Landers Actuary, NCCI. sentencing, at sentencing, and post- increase for the underground coal said policyholders will be notified LRC Staff: Linda Bussell, Carla sentencing. Savings of the program classifications. if they do not qualify for a dividend Montgomery and Betsy Bailey. included 10,000 days of incarcera- In response to a question from payment and the reasons they do not 2010 NCCI Workers’ Compen- tion for each social worker; for each Representative Farmer, Mr. Dooley qualify, and that KEMI’s board will sation Loss Cost Filing—Summary & dollar invested in the social worker said the transition from a manufac- consider annually whether to issue Status program, the state saved $3.25 of turing economy to a service based a policyholder dividend. About half Sharon Clark, Commissioner incarceration costs, for a net savings economy is a factor in the overall of the dividend payments will be for of the Department of Insurance, re- of $2.25. The projected savings for decrease in the frequency and cost less than $100, but three policyhold- ported that the loss cost filing was state-wide implementation of the of claims. In response to a question ers will receive dividend payments of received on July 1. The filing recom- program is estimated to be $3.1 mil- from Representative Kerr concerning $250,000 or more. Some other state mended a 10.3 percent overall aver- lion per year. Mr. Monahan urged the the decline in the medical loss ratio, funds similar to KEMI issue divi- age rate decrease and is the fifth con- committee to support funding to ex- Dwight Lovan, Commissioner of the dend payments. KEMI’s board is also secutive year of recommended rate pand the DPA social worker program Office of Workers’ Claims, responded working with its actuaries to deter- decreases. The filing recommended statewide. from the audience that he could not mine whether it will reduce its rates an overall increase of 5 percent for Mr. Van Ingram, Director of the say that employer protests of medi- as proposed by NCCI. the coal classes. The filing is being re- Office of Drug Control Policy, dis- cal costs is the driving factor in the There being no further business viewed by an independent actuary. A cussed his career in law enforcement decline, and it probably has more the meeting was adjourned. ruling by the department is expected and noted the failure of the criminal to do with the frequency of medical in August. If approved by the depart- justice system to provide meaning- claims. The commissioner said the INTERIM JOINT COMMITTEE ment, the rates will become effective ful treatment for persons with al- number of medical disputes contin- ON LICENSING AND OCCU- October 1, 2010. cohol and substance abuse or other ues to increase. PATIONS Cathy Booth, State Relations behavioral problems while incarcer- KEMI Policyholder Dividend Minutes of the 2nd Meeting Executive, National Council on Com- ated. Mr. Ingram strongly supported Plan—Summary and Status of the 2010 Interim pensation Insurance (NCCI), report- July 9, 2010 the DPA social worker program and Commissioner Clark said the ed that the loss cost filing contained the department’s request to expand Kentucky Employers’ Mutual Insur- Call to Order and Roll Call advisory loss costs and are not the the program statewide. He noted ance (KEMI) dividend plan was re- The 2nd meeting of the Interim final rates charged by the insurance that 30 DPA social workers cost $2 ceived on July 3. The department re- Joint Committee on Licensing and carriers. The carriers add expense million but save $30 million, which viewed the plan and concluded that Occupations was held on Friday, July

THE KENTUCKY GENERAL ASSEMBLY 33 9, 2010, at 10:00 AM, at Kentucky world looks at not only Kentucky but Approval of Minutes from the has expressed concern that there is Ale, 401 Cross Street, Lexington, KY. at Alltech. The economic impact for June 6, 2010 Meeting no inactive status for a journeyman Representative Dennis Keene, Chair, Kentucky has topped $167 million. A motion was made by Senator licensee. The board feels that provid- called the meeting to order, and the Dr. Lyons applauded the Kentucky Carroll, seconded by Representative ing an inactive license status would secretary called the roll. legislature for supporting this world- Owens and the minutes were adopt- allow a licensee to protect a license Present were: class event. There is an 800 number ed by voice vote. after becoming unemployed or tem- Members: Senator Gary Tapp, to call for information and ticket res- Update Concerning Changes to porarily disabled. Co-Chair; Representative Dennis ervation. Also, for businesses who the Process of License Renewal and Senator Tapp asked if the grand- Keene, Co-Chair; Senators Julian M. want to sponsor the games, a block the Creation of an Inactive License father clause was being expanded. Carroll, Perry B. Clark, Denise Harper of tickets can be purchased that in- for Heating, Ventilation and Air Con- Mr. House said the department was Angel, Kathy W. Stein, and Robin L. clude unique gifts and invitations to ditioning (HVAC) Licensees not going to do away with examina- Webb; Representatives Tom Burch, special events. In addition, there will Richard Moloney, Commis- tions. Larry Clark, Tim Firkins, Dennis Hor- be signage promoting groups in the sioner, Tim House, Director of the Senator Webb asked if there lander, Joni L. Jenkins, Adam Koe- Alltech Village. Division of HVAC, and Dawn Bellis, have been adjustments made to in- nig, Reginald Meeks, David Osborne, Dr. Lyons said Alltech is proud General Counsel; Housing, Build- stallation of water heaters. She is Darryl T. Owens, Ruth Ann Palumbo, to sponsor the games with Kentucky ings and Construction, were present getting complaints from constituents Carl Rollins II, Sal Santoro, and Ar- Ale being named the official beer to discuss proposed changes to the regarding a loss of sales and sales tax nold Simpson. of the Alltech FEI World Equestrian license for HVAC contractors. Mr. revenue due to people going across Guests: Dr. Pearse Lyons, Games. His company produces three House said, in preparation for the state lines to states to purchase wa- Founder and President of Alltech and varieties of ale: Kentucky Ale, Ken- 2011 Regular Session, the Division ter heaters where reporting is not re- owner of the Lexington Brewing and tucky Ale Light, and Kentucky Bour- of HVAC would like to amend KRS quired. She also asked if there could Distilling Company; and from the bon Barrel Ale. Kentucky Bourbon 198B.658, Qualification for Licensure be some flexibility in water heater Department for Housing, Buildings Barrel Ale is the only beer of its kind, and Certification, and KRS 198B.664, sales and installation while still pro- and Construction, Richard Moloney, being kept in used bourbon barrels Renewal and Restoration of License – tecting public safety. Mr. House re- Commissioner; Tim House, Director for six weeks, which changes the fla- Inactive Status - Reactivation. These sponded that Kentucky merchants of the Division of Heating, Ventila- vor and the alcohol per volume from amendments have been requested by have been placed in an unfair ad- tion and Air Conditioning (HVAC); five percent to nine. Kentucky Bour- the Board of Heating, Ventilation and vantage; however, he added that he and Dawn Bellis, General Counsel. bon Barrel Ale was number two in Air Conditioning Contractors. would not be interested in allowing LRC Staff: Tom Hewlett, Bryce the world six weeks ago, winning a Regarding 198B.6658, current an unlicensed contractor to receive Amburgey, Michel Sanderson, Carrie silver medal at the World Beer Cup, a language requires an individual to a permit to install a water heater. Klaber, and Susan Cunningham. contest with over 300 entrants. Last serve a two year apprenticeship un- Improperly installed water heaters Presentation by Alltech Con- week, in Atlanta, the beer earned der a Kentucky master before they could have catastrophic failures. The cerning Its Microbrewery and Devel- three medals, one gold and two sil- can receive their journeyman license. division has considered a two-tier opment of Kentucky Ale ver. Similarly, to obtain a Master’s li- permit that allows HVAC to inspect Dr. Pearse Lyons, Founder and Dr. Lyons said that the brewery cense, individuals have to serve as a the installation as a lower cost. President of Alltech and the Owner is under expansion with plans for a Kentucky journeyman under a Ken- After all testimony had conclud- of Lexington Brewing and Distilling visitor center, and in 2011 work will tucky master for two years. How- ed, Chairman Keene told the com- Company told the committee that begin expanding the distilling opera- ever, the current statute does not mittee members that there would be Alltech is approximately a $500 mil- tion, which will create more jobs in allow Kentucky to grant a license a tour of the brewery for interested lion dollar company that is growing Lexington. On August 3rd, the first to well-qualified and trained HVAC parties. at a rate of 20 percent per annum malt whiskey to be made in Ken- personnel from states such as Ten- There being no further busi- with offices in 85 countries employ- tucky, Pearse Lyons Reserve, will be nessee, West Virginia, Indiana, and ness to come before the committee, ing 2,200 people. In addition to its rolled out at Kentucky Ale. Illinois. The division has a reciproc- the meeting was adjourned at 11:40 agricultural products, Alltech is the Dr. Lyons said that Kentucky ity agreement only with Ohio. The a.m. creator of Dippin Dots, which pro- will soon have the world’s second Board wants authority to establish duces $50 million dollars in sales an- largest algae production unit. Algae, specific requirements for qualified, INTERIM JOINT COMMITTEE nually. Alltech is the only privately in terms of carbon sequestering for experienced applicants coming to ON STATE GOVERNMENT held company that is in the top 12 of the coal industry, is crucial. Dr. Ly- Kentucky to work in the HVAC pro- Minutes of the 1st Meeting companies regarding animal health. ons said he had also visited a facil- fession from states with which we do of the 2010 Interim July 21, 2010 Concerning the microbrewery, ity to help with Alltech’s life science not have a reciprocal agreement. Dr. Lyons told committee members laboratory in developing a product to KRS 198B.664 requires a licens- Call to Order and Roll Call that he grew up in Ireland and one treat Alzheimer’s disease. ee to renew HVAC licenses by the fi- The first meeting of the Interim summer had an internship with Senator Carroll commented that nal day of the licensee’s birth month. Joint Committee on State Govern- Guinness. Since that internship, his Dr. Lyons was a remarkable individual Failure to do so automatically plac- ment was held on Wednesday, July dream was to own a brewery. The and thanked him for his support of es the license in delinquent status. 21, 2010, at 1:00 PM, in Room 154 Lexington Brewing Company, first es- the equestrian games. Senator Stein Ninety-one days after the license of the Capitol Annex. Representative tablished in 1794, went out of busi- said that members of the Agriculture becomes delinquent the license be- Mike Cherry, Chair, called the meet- ness in 1999. This opened the op- committee were also aware that Dr. comes void if the licensee takes no ing to order, and the secretary called portunity for Dr. Lyons and his son, Lyons wants Kentucky to become a action. For the individual to reacti- the roll. who wanted to follow in his father’s milk exporter rather than milk im- vate a license, he or she would have Present were: footsteps, to purchase the brewery. porter and congratulated him on to retest and reapply for a license. Members: Senator Damon Thay- Dr. Lyons said that, on Septem- that. Mr. House said exam fees and books er, Co-Chair; Representative Mike ber 25, the world will be watching Chairman Keene noted that there to retest are expensive. The board Cherry, Co-Chair; Senators Walter when the largest international sport- was a quorum present and asked the would like to amend the statute to Blevins, Jr., Julian Carroll, Ernie Har- ing event to come to the United secretary to call the roll. After the mirror the requirements for renewal ris, Jimmy Higdon, Alice Forgy Kerr, States since the 2002 Winter Olym- roll call, Chairman Keene also called of electrical licensing, bringing con- Mike Reynolds, John Schickel, Eliza- pic Games opens in Kentucky. Hav- for a moment of silence for Repre- sistency in the Department of Hous- beth Tori, and Johnny Ray Turner; ing the World Equestrian Games in sentative Floyd, whose mother, Belle ing, Buildings, and Construction. Mr. Representatives Eddie Ballard, Johnny Kentucky has changed the way the Floyd, passed away last week. House also said that the HVAC board Bell, , John “Bam” Car-

34 2010 Interim LEGISLATIVE RECORD ney, Leslie Combs, James Comer, Tim based on the market value of the but he thinks it is unlikely that KRS the Board also expresses support at Couch, Will Coursey, Joseph Fischer, plan’s assets. This means that the will be able to earn its way out of the its quarterly meeting in August, he Danny Ford, Mike Harmon, Charlie state had incurred $7.07 billion more funding dilemma. will immediately submit that rec- Hoffman, Sannie Overly, Darryl Ow- in pension obligations than it could Representative Cherry agreed ommendation to the legislature by ens, Tanya Pullin, Tom Riner, Carl fund with the plan’s existing assets that the picture is grim, but he point- letter. He went on to explain that Rollins II, Sal Santoro, Kent Stevens, plus a hoped-for investment return ed out that HB 1 creates a floor—not funding has changed due to the eco- Tommy Thompson, John Tilley, Jim on those assets of 7.75 percent each a ceiling—for actuarially required nomic environment. HB 1 was based Wayne, Alecia Webb-Edgington, Ron year for the next 20 years. The sub- employer contribution rates (ARC). on the actuarial evaluation as of the Weston, and Brent Yonts. (NOTE: sequent recovery in the investment He maintained that as long as there is end of June 2007, when there was Representative Derrick Graham was markets has likely modestly improved compliance with the graduated pay- $16 billion in the retirement fund as not present but participated in the the situation, but new pension lia- ment schedule specified in HB 1, the a whole. Currently it has only $13.8 meeting via telephone.) bilities have also been created. Aside system will remain viable, and KRS billion, following a low of almost $10 Guests: Mike Burnside and Brent from the shortfall in pension assets, will be able to continue meeting its billion last year during the recession. Aldridge, Kentucky Retirement Sys- the unfunded liability for the KERS- pension obligations. Mr. Voytko said Senator Thayer said that the tems (KRS); Jim Voytko, R. V. Kuhns nonhazardous insurance plan was he agrees, so long as the investment legislature should not be blamed for & Associates; Marcheta Sparrow, $4.1 billion. Even assuming an in- markets cooperate and there are as- making inadequate employer contri- Tiffany Yeast, Gerry van der Meer, vestment return of 7.75 percent an- sets in the fund. butions, which was asserted by two and Mona Juett - Tourism, Arts and nually over the next 15 years, the Representative Cherry asked major newspapers. He said it is clear Heritage Cabinet; Fred Nelson, Dinah pension deficit will grow to nearly whether the General Assembly has that the level of employer contribu- Bevington, Joe Cowles, Stephanie $11 -$12 billion in the next 12 years. any other options to address the prob- tions has been greatly impacted by Marshall, and Walt Gaffield – Person- Assuming the suppressed—versus lem, outside of the ARC and possible the stock market. Also, Kentucky’s nel Cabinet; Bill Riggs, Robin Kin- actuarially required—contributions elimination of the annual cost-of-liv- investment return has tracked con- ney, and Phil Baughn - Finance and called for in HB 1 (2008 Extraordi- ing increase (COLA) for retirees. Mr. sistently with other public plans. Administration Cabinet (FAC); Rick nary Session) for the next 14 years, Voytko said any action that would Although KRS investment return McQuady, Kentucky Housing Corpo- with 7.75 percent investment returns cause the actuary to reduce the ex- has been above 17 percent this year, ration; Wanda Mitchell-Smith, Leslie each year, pension contribution rates pectation of future benefits paid will there is no guarantee that this level of Thorn, and John Stovall – American will rise from 15 percent in 2009 to contribute to solving the challenge. return will continue. Senator Thayer Federation of State, County and Mu- roughly 30 percent in the next seven He stressed that change to negative pointed out, too, that it will take 10- nicipal Employees (AFSCME). years. Ten years into the future they net cash flow has nothing to do with 15 years before HB 1’s benefit design LRC Staff: Bill VanArsdall, Kevin will be approximately 34 percent, actuarial outcome of the fund but reforms will provide financial relief. Devlin, Sean Donaldson, Brad Gross, and in 20 years they will approach 50 everything to do with the ability to When Senator Thayer asked whether Alisha Miller, Karen Powell, Greg percent. These rates do not include make long-term investments. KRS may be recommending further Woosley, and Peggy Sciantarelli. 12-22 percent in additional rates for Mr. Burnside said he under- benefit changes for future employ- Kentucky Retirement Systems the KERS-nonhazardous insurance stands the importance of the COLA, ees, Mr. Burnside responded that the – Asset/Liability Modeling Study plan. especially for retirees who are draw- normal cost of retirement for a future Jim Voytko, President and Se- Mr. Voytko said that if future ing a small benefit; however, it could employee hired under the provisions nior Consultant, R. V. Kuhns & As- investment markets and the need to be reduced or eliminated because it of HB 1 is in the range of 1½ percent sociates, Inc, gave an overview of the avoid excessive risk do not permit is not covered by the inviolable con- of payroll—an extremely affordable study prepared by his firm. Testifying the fund to earn 7.75 percent on av- tract. The 1½ percent COLA imple- system—and he believes the system from KRS were Mike Burnside, Ex- erage, the pension fund’s assets will mented July 1 incurred an additional will be affordable in 20 years when ecutive Director, and Brent Aldridge, shrink as pension obligations contin- unfunded liability of $200 million. those employees are starting to re- Interim Chief Investment Officer. ue to grow. Shrinking assets would He also said he is not advocating ad- tire. What is not affordable now is Copies of the slide presentation were make long-term investments such as justing the ARC schedule proposed the unfunded liability that has ac- provided to the Committee. real estate and private equity difficult in HB 1. crued over time. His biggest con- Mr. Voytko’s presentation fo- or impossible for the KRS Board’s in- Responding to a question from cern is how to survive for the next cused primarily on the KERS-non- vestment program to utilize. Though Representative Harmon, Mr. Burn- 20 years with the existing cash flow hazardous pension fund. He pointed such investments are less liquid, their side said that, to his knowledge, problem. out the factors that are contributing yield is usually higher. This could the possibility of optional pension Senator Thayer said that the to the current pension funding prob- substantially reduce the ability of buy-outs by individual retirees had General Assembly has never bud- lem: the investment program to produce never been looked at and that this geted an ARC rate less than what Current statutory pension ben- expected returns. Under the worst might not be permitted under the the governor recommended. In fact, efit levels; possible outcomes, the plan’s assets inviolable contract. Mr. Voytko said the legislature found funds to es- Existing accumulated unfunded could possibly shrink to zero before that at least one other state system tablish a higher ARC than recom- pension obligations; the higher contributions called for by had considered optional buy-outs, mended by the governor in five of Rising number of pensioners ver- HB 1 in the years 2022-2029 begin which require a large amount of cash the last eight annual budgets. KRS’ sus active contributing employees; to gradually create a smaller pool of up front, but that he does not know most recent system evaluation called Statutory contribution policy assets available for investment. of any system that has successfully for an ARC of 38.58 percent of pay- enacted in HB 1 (2008 Extraordinary Mr. Voytko said he would never implemented them. Representative roll for KERS-nonhazardous, with Session) that keeps contributions to say the plan is not sustainable, but Cherry directed committee staff to only 2.99 percent of that being at- the pension fund below actuarially it is far more expensive than envi- research this issue. tributed to the ARC shortfall. Sena- required levels for the next 14 years; sioned. The KRS Board faces a dif- Representative Higdon said he is tor Thayer contended, therefore, that and ficult decision—whether to adopt a somewhat surprised that the problem 35.59 percent of the ARC would be Growing constraints that nega- more conservative investment policy remains so severe after passage of HB attributed to benefit structure and tive cash flows from the pension plan with lower returns and less risk or to 1. He asked Mr. Burnside whether he performance in the stock market. Mr. place on the system’s investment become more aggressive in order to is prepared to make further recom- Burnside spoke about prior unfunded program. seek higher returns with greater risk. mendations to the General Assem- benefit enhancements and concurred He testified that as of June 30, KRS pension fund performance has bly, such as suspension of the COLA. that those things, combined with 2009, the KERS-nonhazardous pen- followed a pattern similar to all pub- Mr. Burnside said he is supportive poor investment return, have been sion plan was 34 percent funded, lic pension plans of comparable size, of suspending the COLA and that if a major factor. Mr. Voytko said that

THE KENTUCKY GENERAL ASSEMBLY 35 from an analytical point of view it is would lose from the six-day furloughs improving programs and services to perform needed maintenance at the likely in 15 years that the majority of of state employees. Mr. Burnside said meet market needs and interests, and parks. Ms. Yeast said that although the shortfall will be associated with that KRS has not looked at that is- improving management culture and the parks will close two days in the lesser than required employer contri- sue. He surmised that if furloughs practices. Under the cost avoidance off season, employees will have their butions. reduce state salaries by 2½ percent, plan employees currently working 40 hours reduced from 37.5 to 30 and Responding to a question from there would be a like reduction in hours a week will begin working 37.5 will thus lose only one day’s pay. Senator Carroll, Mr. Voytko explained employer contributions. Both Rep- hours per week; an existing state- Representative Cherry asked that for the sake of brevity, today’s resentative Graham and Mr. Burnside wide contract for temporary services whether closing the resort parks com- presentation had not included infor- spoke of how reduction or elimina- will be used for hiring seasonal em- pletely during the winter months—as mation about the hazardous retire- tion of the COLA would drastically ployees, with park managers having was mentioned in a Dawson Springs ment system. He said that both the affect older retirees who draw small final approval for all hiring; seasonal newspaper editorial—would make hazardous and nonhazardous sys- pensions. schedule reductions will be imple- parks employees eligible for unem- tems were studied and that the re- Senator Thayer asked Mr. Burn- mented at all parks; Ben Hawes State ployment. Ms. Yeast said they prob- sults for the hazardous system var- side to first inform him and Repre- Park has been transferred to the city ably would be eligible. ied but were much in line with what sentative Cherry if the Board recom- of Owensboro; selected dining and Representative Pullin asked has been presented today. mends any change to benefits or the all golf operations will be operated whether there will be an effort to Senator Carroll stated for the COLA, prior to releasing the informa- by private concession companies; meld the reduced hours in winter record that the General Assembly— tion by letter. and debt carryover has been elimi- into the two-day executive branch not the KRS Board—enacted benefit Privatization of State Parks nated, due to a one-time appropria- furloughs. Secretary Sparrow said enhancements such as “27 and out” Guest speakers from the Tour- tion. Estimated total cost avoidance that this would not be allowed under and “high five,” and though invest- ism, Arts and Heritage Cabinet were will be over $6 million in each of the the law. She also stated that, based ment return was good at the time, Marcheta Sparrow, Cabinet Secre- 2011 and 2012 fiscal years. Commis- on business needs, the reduction in those enhancements subsequently tary; Tiffany Yeast, Executive Direc- sioner van der Meer stated that 100 winter hours might not be necessary; contributed to the substantial un- tor of Personnel; Gerry van der Meer, percent of park operations will con- it is a target, however, that has to funded liability. Commissioner, Department of Parks; tinue to be overseen by the Depart- be considered, based on the current Responding to questions from and Mona Juett, Director of Govern- ment of Parks; all parks will remain economic climate. Representative Owens, Mr. Voytko mental Relations. They provided the open; park employees will keep their Responding to inquiries from confirmed that the study’s projected Committee with copies of their slide jobs; and Kentucky will regain and Representative Rollins, Secretary growth in the KRS-nonhazardous presentation. sustain the title of “nation’s finest Sparrow said that the total operating pension deficit is only an estimate. Secretary Sparrow spoke about park system.” expense and earned revenue figures He said that although future fore- lack of funding, lagging revenue, es- Representative Pullin said that for the parks system (page 18 of the casting is challenging, the direction calating personnel costs, and major closing the resort parks on Mondays strategic plan) are available by park seems clear in this case. It is also rea- maintenance concerns for the state and Tuesdays from November 15 to and that the Cabinet can provide him sonable to assume that a decline in parks system. She said that for the March 15 will reduce employee sala- with that information. She said that state revenue could coincide with a first time in the Department of Parks’ ries. Combined with the salary re- Cumberland Falls is currently the future downturn in investments. 85 year history an outside firm, PROS ductions from the announced six-day only park where revenue exceeds op- When asked by Senator Blevins, Consulting, was selected in January furloughs of state employees, this erating expense. Mr. Burnside said that the average 2009 to conduct an extensive 18- will essentially amount to a “double Representative Yonts asked retiree benefit payment is stated in month study and draft a Financial furlough” for those employees. She Commissioner van der Meer to send the annual financial report but that and Operations Strategic Plan for said this is unfair, in her opinion, and a letter to committee staff providing he did not have that figure with him. the parks system. Because of strate- possibly prohibited by limits in the details on how the Department of He also discussed how benefits are gies being employed from the plan, recent legislation that authorized Parks intends to achieve the short- taxed. which was launched in June 2010, furloughs. The income of some em- term improvement recommendations Responding to a question from state parks will not close, and there ployees will be reduced to the pov- outlined in the slide presentation. He Representative Yonts about the im- will not be layoffs of full-time em- erty level, yet they will not be eligible said he would like to know how the pact of reemployment after retire- ployees. The plan includes the use of for unemployment benefits. When Cabinet will save money by contract- ment, Mr. Burnside explained that concessionaires for golf courses and she asked about paid overtime, Com- ing out concessions—considering under HB 1, retirees who return to selected restaurants, but that does missioner van der Meer said that that workmen’s compensation costs work after September 1, 2008, can- not mean that state parks are being overtime for the agency in FY 2010 are built into a contract price—and not earn and do not contribute to- privatized. Park managers hired by was $675,420—which is not pure whether there will be competitive ward a second pension. The employ- the Department of Parks will contin- overtime because it is “coded” to va- bidding for food services. He com- er, however, must still contribute to ue to oversee the parks. Many state cation pay. He said that overtime in mented that the state’s experience the system for that employee. From park marinas already have success- FY 2007 amounted to more than $1 with privatization of food services at that standpoint, reemployment is a ful concession operations. The plan million. Otter Creek and in the Department benefit to the system because no li- takes on added significance, consid- Secretary Sparrow said that the of Corrections has lacked oversight ability is incurred for the employee ering that the 2011 budget required decision to close on Mondays and and been a total disaster. Secretary but there is an employer contribution a $6 million General Fund reduction Tuesdays was due to the $6 mil- Sparrow said the Cabinet is in the on the employee’s behalf. Regarding for the Department of Parks. With- lion budget reduction and that state process of issuing requests for infor- those reemployed prior to HB 1 and out change, the prospect of closures employee furloughs were not an is- mation (RFI) relating to concessions earning a second pension, it would is almost certain. Secretary Sparrow sue at that time. She said that the and will be glad to report back to basically amount to a “wash,” pro- said she is proud of the state parks Department of Parks will be granted the Committee later. Commissioner viding investment return and the em- and hopes that the plan will help flexibility with respect to the fur- van der Meer said that food services ployer contribution were adequately save these treasures for future gen- loughs and that they will be taken will be bid competitively, probably funded. erations to enjoy. when employees are on full sched- in a month and a half. He said con- Representative Graham said the Commissioner van der Meer said ule. In 1999, the General Assembly cessionaires are incented to provide legislature has played a major role that recommended short-term im- authorized parks to reduce hours in quality service. The Department will in the unfunded liability by not suf- provements include the streamlining winter, and doing so is considered a monitor them, insist on high stan- ficiently budgeting for the ARC. He of current operations through greater necessary business decision. The re- dards, and expect them to be com- asked how much the pension fund efficiency, raising quality standards, duced hours will also allow time to munity minded. (Later in the meeting

36 2010 Interim LEGISLATIVE RECORD Representative Owens said he would tract with the concessionaire. Secre- excellent job. He asked whether the could cause Kentucky to lose money. like to see the information requested tary Sparrow pointed out that when state will be able to control the price Employees at 24-hour facilities such by Representative Yonts regarding Ben Hawes State Park was transferred of the golf and food services after they as hospitals and prisons now work the recommendations for short-term to the city of Owensboro, the Cabi- are privatized. Commissioner van der overtime just to keep them legally improvement.) net took care of the park employees. Meer said it is important to remain staffed. Furloughing will necessitate Representative Webb-Edging- Representative Wayne compli- competitive and that the Cabinet will paying someone overtime, and this ton, in reference to the state employ- mented Secretary Sparrow, the Cabi- have say regarding price. will result in additional cost. Social ee furloughs, requested that Chair- net and the strategic plan study. He Representative Coursey asked services are already understaffed. man Cherry obtain for the Committee questioned how privatization will whether career employees with less Furloughs mean that there will be data from the Personnel Cabinet re- be able to achieve cost savings and than 25 years service will have the fewer child protection investigations, lating to all Block-50s that have been whether employees of the conces- opportunity to work on contract. delays in assistance, and a greater paid in each of the executive cabinets sionaires will receive salaries and Ms. Yeast said “25” was not arbi- workload for employees already fac- for the past six months. benefits comparable to those of trarily chosen but is consistent with ing an enormous challenge and hard Representative Webb-Edgington Parks employees. Secretary Sparrow privatization in other areas of state economic times. The furlough plan asked whether the use of conces- explained that the $6 million cost government. Secretary Sparrow said ignores the human cost of furloughs sionaires for dining and golf opera- savings will come not only from con- that merit system Parks employees that is borne by everyone. She noted tions will result in a reduction of ex- cessions; a significant amount will who want to remain employed by that the plan did not include input ecutive level staff. Commissioner van come from the change to a 37.5 hour the Department will be able to do so, from employees or the Governor’s der Meer said that executive staff will work week. There will also be signifi- and every effort will be made to keep Employee Advisory Council. be retained to oversee operations cant savings in unemployment and them at the parks where they cur- Ms. Thorn, a child protective ser- and monitor quality. Representative workmen’s compensation insurance rently work. vices investigator for the state for al- Webb-Edgington said she believes when approximately 1,100 seasonal Representative Hoffman said most 17 years, spoke about the large this will send a poor message to line- employees move into the temporary he is apprehensive about the move amount of overtime that is already level employees. She suggested as employee category. Ms. Yeast said to privatization. He asked whether necessary for social workers. She an alternative that the Cabinet con- that temporary employees will still concessionaires will be required to said furloughs would make it difficult sider assigning additional duties and be eligible for unemployment in- comply with statutory directives re- to meet time frames with respect to responsibilities to other employees. surance but that the hiring agency lating to Kentucky-grown products. federal funds and would cause a sig- Commissioner van der Meer said the would bear the cost instead of the Commissioner van der Meer said that nificant loss of income to employees. agency has already made consider- state. would be expected. The cost to families already in need able cuts but probably has not pub- Representative Wayne stated Senator Thayer noted that the will exceed any expected benefits. licized them enough. He said that that the legislature is partially re- Kentucky Horse Park has had a pri- Mr. Stovall said he is concerned from 2007 to June 2010 three-quar- sponsible for the revenue short- vate concessionaire for many years that the “double furlough” of Parks ters of a million dollars was saved age because it has not addressed and that it has worked very well. employees may cause a problem by not filling some positions and by the state’s unfair and antiquated Secretary Sparrow concurred and with their insurance benefits. He ex- combining responsibilities. Secretary tax system. He said he believes the said that the use of concessionaires pressed doubt that there will be cost Sparrow said the agency has acted parks system was established in large has also worked well at the state savings from privatization. fairly throughout the process and part with the philosophy of building park marinas. Dinah Bevington, General Coun- that positions will be evaluated but parks in areas with high unemploy- Review of Executive Orders sel for the Personnel Cabinet, gave that staff will definitely be needed in ment, and it appears that the Com- The agenda included two execu- an overview of the furlough plan Frankfort to oversee the golf opera- monwealth is drifting away from that tive orders for committee review: EO provisions, which are being imple- tion. She expressed appreciation for philosophy and putting pressure on 2010-428, reorganizing the Person- mented in emergency regulation the comments. its employees. Everyone involved nel Cabinet, and EO 2010-436, re- 101 KAR 5:015. She said the regula- Senator Higdon said he appreci- needs to team together to protect organizing the Finance and Admin- tion was presented to the Personnel ated the Cabinet’s prompt response the vulnerable citizens in rural areas istration Cabinet. Representative Board on July 9, where it met with in the past any time he has had ques- of the state, where they often have Cherry briefly discussed each reorga- favorable review. In FY 2011, all six tions. He asked whether the tourism no other source of employment. He nization, and motions to accept each days authorized by the budget bill tax has benefited promotion of the commended the Cabinet for what it executive order were approved by the enacted in the 2010 extraordinary parks. Secretary Sparrow said about is trying to do but expressed hope Committee by voice vote. session will be implemented, but no $180,000 is collected from the one- that there will not be a rush to- Furloughs of State Employees determination has been made regard- percent room tax annually. It has ward privatization as the only way The following representatives ing FY 2012. All merit and nonmerit been used for marketing purposes, to manage. Secretary Sparrow said it of AFSCME, which represents 9,000 employees will be furloughed the full with the money being put back into pains her that it has become neces- state workers, addressed the Com- six days, spread out across the fis- the local communities. sary to privatize some services, but mittee in opposition to the executive cal year to minimize impact on em- Senator Higdon said he supports she emphasized that the Cabinet is branch furloughs authorized for fiscal ployees and public services. Three of the concept of privatization but is not looking to privatize every sector years 2011 and 2012: Wanda Mitch- the days are adjacent to holidays and concerned about its affect on Parks of state parks. She said private man- ell-Smith, Kentucky Political Action will result in a shutdown of state of- employees. Ms. Yeast said the Cabi- agement of the 18 golf courses will Representative for AFSCME Coun- fices, beginning with Friday, Septem- net wants to protect employees and bring opportunities such as better cil 62; Leslie Thorn, a social worker ber 3. In the meantime the Cabinet will assist those who wish to transi- marketing. The agency does not want employed in McCracken County; and will have an opportunity to deter- tion to work for the private conces- to penalize its employees. The use of John Stovall, a member of the Team- mine flexibility demands, since many sionaire. Employees who choose to temporary services will not reduce sters Union. offices providing essential services remain with the Department will be employee salaries, and additional In summary, Ms. Mitchell-Smith must remain open on furlough days. kept but might be assigned to differ- jobs can be created on a short-term said that the furlough plan does not The Cabinet is also working on con- ent jobs. The RFI process provides basis if business improves. Ms. Yeast take human need into account and cerns about overtime and other is- that concessionaires, when hiring, said that seasonal employees are not that purported savings from fur- sues that have been raised, including give Parks employees first refusal. It eligible for any benefits other than loughs have been challenged in Cali- those relating to Parks employees. also provides that 25-year employ- sick leave and holiday pay. fornia and other states. She said that The additional three furlough days ees have an opportunity to stay on Representative Ballard com- furloughing federally-funded state will occur in October 2010, March as merit employees and work on con- plimented the Cabinet for doing an workers would not save money and 2011 and June 2011. Employees will

THE KENTUCKY GENERAL ASSEMBLY 37 remain eligible for health insurance. regulation relating to contractors Gary Tullock of the Tennessee Board between the Department of Correc- Each cabinet and agency is to sub- needs to be clarified because it does of Probation and Parole. Commis- tion, Board of Probation and Parole, mit a furlough plan for approval by not follow the language on page 251 sioner Ray said Tennessee’s correc- Criminal Justice Coordinating Coun- the Personnel Cabinet Secretary, and (lines 20-23) of the budget bill. Ms. tions programs were becoming more cil, and the Team Re-entry Collabora- agencies have been asked to advise Bevington said that language was not and more crowded over the years and tive Program, which was started six Personnel of their concerns and flex- restated in the regulation but that an the Department of Correction and years ago and involves all organiza- ibility needs. Ms. Bevington said that additional provision was added to the Board of Probation and Parole de- tions, agencies, and programs deal- no employees will be furloughed if the furlough plan to require agencies cided to work together to address the ing with inmate reentry into society. cost savings will not result. to certify that contractors are not problem. Among the Department of Commissioner Ray said their Representative Cherry said he going to work additional hours as a Correction’s goals were to reduce re- goals may have been overly ambi- has been asked by his constituents result of the furloughs. She said that cidivism, reduce technical violators/ tious because they didn’t correctly why the furloughs do not apply to the Personnel Cabinet is now work- revocations for those on probation factor in time constraints such as the legislative or judicial branches ing with LRC staff to determine any and parole, reduce the jail and prison the time lag in developing and com- of state government. He explained technical considerations that may population, and reduce corrections pleting the contract process, hiring that the legislative branch, in lieu of need to be taken into account. expenditures. In the 2009-2010 qualified staff, lack of communica- furloughs, chose to cut its budget by Kentucky Employees Health Plan budget, the departments created tion between agencies, development eliminating 23 positions by the end (KEHP) new programs in Tennessee designed of standardized definitions such as of FY 2011. Representative Cherry an- to increase public safety, incarcerate recidivism, lack of management and Responding to concerns raised nounced that there would not be those persons committing serious staff training, and changing the sys- by Representative Bell about the im- time to discuss the KEHP today and crimes, reduce the number of per- tem culture. Their future goals in- pact of furloughs on employees at that this topic would be included on sons returned to prison for technical clude quality assurance, strategic the lower end of the pay scale, Ms. a future meeting agenda. violations of probation or parole, in- planning, analysis of program needs Bevington said that the authoriz- Business concluded, and the stitute evidence-based programs for and evidence-based practices, and ing language in the budget bill does meeting was adjourned at 3:40 p.m. community based and institutional more inmate reentry efforts. not allow employee salaries to be problems, and reduce recidivism. Mr. Tullock described key el- considered when applying the fur- TASK FORCE ON THE PENAL Commissioner Ray indicated these ements of the plan as use of the loughs. Representative Bell said he CODE AND CONTROLLED goals were partially met and recidi- LS/CMI instrument for all inmates believes that some “wiggle room” SUBSTANCES ACT vism was reduced from 42% in 2001 (19,000 assessments have been might be found in interpreting the Minutes of the 2nd Meeting to 38.5% in 2005. done), a program known as TAP-BIG language and that he hopes the hu- of the 2010 Interim Specific changes included im- which is a program for transitioning July 14, 2010 man element will be looked at when plementation of the Level of Ser- prisoners back into society utiliz- any decisions are made regarding the Call to Order and Roll Call vice/Case Management Inventory ing behavioral intervention goals, furloughs. The 2nd meeting of the Task (LS/CMI) program. The program cost motivational interaction and evi- Senator Carroll said he has re- Force on the Penal Code and Con- $200,000 and required intensive dence-based program development. ceived complaints about equity in the trolled Substances Act was held on staff training, but has provided a use- Evidence-based programs have been furlough process, and he questioned Wednesday, July 14, 2010, at 1:00 able instrument which can be used shown to reduce offender recidivism. why higher paid, nonmerit employ- PM, in Room 171 of the Capitol by the courts, probation, parole, In these programs, high risk offend- ees are not going to be furloughed a Annex. Senator Tom Jensen, Chair, and corrections to assess each con- ers receive high levels of treatment higher percentage of hours. He said called the meeting to order, and the victed individual and which identi- and supervision, while low risk of- he would be interested to see how secretary called the roll. A quorum fies dangerousness, treatment needs fenders may be omitted from many the equity issue is addressed in the was present and the minutes of the and other factors which determine if treatment services and have a lower plans submitted by the agencies. He June 9, 2010 meeting were approved the inmate is eligible for community level of supervision. In order to re- also suggested that some members of without objection. programs, what specific problems duce the number of probationers and the General Assembly might end up Present were: the inmate has which may need to parolees sent to prison for technical questioning the Personnel Cabinet’s Members: Senator Tom Jensen, be treated, and other factors. Other violations, an intermediate sanctions legal interpretation of the furlough Co-Chair; Representative John Til- changes included increased com- program has been instituted which authorization. Ms. Bevington re- ley, Co-Chair; Secretary J. Michael munity corrections slots, increased allows probation and parole officers sponded that the budget bill on page Brown, Tom Handy, Chief Justice community residential slots, hiring to utilize sanctions instead of return- 250 directs that all employees—mer- John D. Minton, Jr., and Hon. Tommy 54 new Board of Probation and Pa- ing a person to prison. The proba- it and nonmerit, classified and non- Turner. role staff including psychiatric social tion and parole officers make recom- classified—be placed on furlough for Guests: Richard Jerome, PEW workers, increased community treat- mendations for sanctions to judges the same number of hours during a Center for the States; James Aus- ment programs in cooperation with for persons on probation and to the calendar month. She said a separate tin, JFA Institute; Peter Ozanne and the Department of Mental Health parole board for parolees, which are provision that would allow nonmerit Meghan Guevara, Crime and Justice and Developmental Disabilities, and generally implemented immediately. employees to be furloughed an ad- Institute; Jennifer Hans, Office of the sharing of planning, research, train- Seventy-five percent of the judges ditional amount of time is not being Attorney General; Bill Patrick, Ken- ing, and grants between depart- follow the recommendations of the utilized at this time. tucky County Attorneys Association; ments. There is now one psychiatric officer but can override them if they Representative Rollins said that Janice Tomes, Governor’s Office of social worker for every 1,000 offend- so choose. in executive branch agencies that do Policy and Management; and Marylee ers. $2.2 million was allocated for In response to questions from not receive money from the General Underwood, Kentucky Association alcohol and treatment programs. the members, Mr. Tullock said the Fund, the savings from the furloughs of Sexual Assault Programs. Commissioner Ray said imple- inmate assessment instrument was would revert to the agency. He asked LRC Staff: Norman Lawson; Jon mentation of these changes has re- mandated by the legislature and a whether there will be a sweep of Grate; Ray DeBolt; Joanna Decker; duced Tennessee’s prison popula- time frame was established for meet- those funds or a report on how those Kyle Moon; and Rebecca Crawley. tion, they have been able to close ing the goals, but they underestimat- agencies apply the savings. Ms. Bev- Tennessee Probation and Parole one prison and delay construction of ed the time necessary to accomplish ington said that question would need System a new prison, has enabled them to those goals within the original time to be addressed to the budget office. The first speakers were Tennes- better assess their prison population frame. Representative Graham said see Commissioner of Correction Gay- and their needs beyond incarcera- PEW Center Update and Discus- that language in the administrative le Ray, and Director of Field Services tion, and improved communication sion

38 2010 Interim LEGISLATIVE RECORD Representative Tilley gave a re- ter Ozanne of the Crime and Justice ering Kentucky Kids & Families. include federal matching funds, pro- port on the National Governor’s As- Institute, reviewed the Draft Work- LRC Staff: Mike Clark, Miriam vider tax revenues, and general fund sociation, PEW Public Safety Confer- plan Outline for upcoming task force Fordham, Lashae Kittinger, DeeAnn appropriations. The Federal Medical ence in Annapolis, Maryland which meetings as follows: August 11th Mansfield, Cindy Murray, Cindy Assistance Percentage (FMAP) is the was attended by Representative meeting, Controlled Substances Act, Smith, Pam Thomas, and Frank Wil- percentage of Medicaid costs paid by Tilley, Senator Jensen, Secretary of prison population projection, and a ley. the federal government. The FMAP Justice and Public Safety J. Michael presentation on recent changes in is based on each state’s per capita Brown, Corrections Commissioner Colorado by a Deputy Attorney Gen- An Overview of Medicaid income relative to the national per LaDonna Thompson, Chief Justice eral and District Attorney; Septem- Mike Clark, Ph.D, Chief Econo- capita income. States with lower per John Minton, and various staff per- ber 8th meeting, sentencing statutes mist, Legislative Research Commis- capita income received a higher FMAP. sons. Representative Tilley reviewed and practices, offense classification, sion, presented a general overview Kentucky provider taxes were also recommendations from the confer- sentence length and length of stay; of Medicaid. Medicaid is a means- discussed and figures were shown ence which included use of evidence- October 13th meeting, correctional tested entitlement program autho- relative to rates for current Kentucky based practices, reducing the num- programs in prisons and jails, parole rized by Congress in 1965 as part provider taxes for different providers. ber of nonviolent offenders in prison, practices and procedures; November of the Social Security Act. Medicaid Tax rates vary depending on the cat- keeping the most dangerous offenders 10th meeting, parole and probation provides three broad types of health egory of provider. Major legislative in prison, use of cost/benefit analy- services, parole and probation revo- coverage: health insurance, supple- changes from 1996 to 2009 regard- ses, and fiscal impact statements for cation; December meeting, discus- mental coverage, and long-term cov- ing provider taxes were shown, as all criminal justice legislation. The sion of policy options and simulation erage. Individuals must meet certain well as the share of total Kentucky goals of justice reinvestment pro- of effects on Kentucky’s system; and requirements to be eligible for Medic- provider taxes by services. A chart grams are public safety, holding of- January meeting, release report and aid including categorical, income, re- on Kentucky’s Medicaid general fund fenders accountable, reducing recidi- introduce legislation. source and citizenship requirements. expenditures which showed that the vism, reducing the crime rate, and Representative Tilley moved, Medicaid eligibility is limited to indi- dollar amounts of expenditures grew being able to use the savings to fund seconded by Chief Justice Minton, viduals who fall into six broad popu- steadily over time, from 7.8 percent alternative programs which work and that the Task Force, through the co- lation groups. Statistics were given in 1992 compared to 11.5 percent in achieve these goals. chairs, request that the Legislative regarding income limits for pregnant 2009 was discussed. James Austin of the JFA Insti- Research Commission approve (1) women and children to be covered by In response to a question by tute presented a report on Kentucky A task force meeting on the second Medicaid. Pregnant women are cov- Senator Stine, Dr. Clark responded crime and correctional trends and Wednesday of December 2010; (2) ered up to 185 percent of the federal that, as to Kentucky Medicaid ex- described how data can be used to A task force meeting on the second poverty guidelines. Children are cov- penditures per capita, the number design better programs and to ana- Wednesday of January 2011; (3) An ered under Medicaid or KCHIP and might have increased because peo- lyze proposed reforms and their im- extension of the final report date for can be covered up to 200 percent ple are coming in for different peri- pact. Mr. Austin said length of stay the task force to the second Wednes- of the federal poverty guidelines de- ods of time and depending on when is a significant cost driver in correc- day of January 2011; and (4). These pending upon for which program they the snapshot of Medicaid eligibles is tions and that reducing the length of meetings would be all-day meetings qualify. U.S. citizens must meet cat- taken, different counts may be seen. stay in prison by one month for all and there would be no Interim Joint egorical and financial requirements. Dr. Clark said he does not have the inmates would reduce the need for Committee on Judiciary meetings on Illegal immigrants cannot qualify for Kentucky Medicaid expenditures per 1,000-1,500 beds in the future. He the December and January dates. The basic Medicaid benefits, but they can capita, but there are about 4 million noted in the past couple of years, the motion was approved by voice vote. qualify for Medicaid for emergency individuals in Kentucky. Using that parole grant rate has increased from The meeting adjourned at 4:00 medical care if they meet financial re- number will not provide the same about 34% to 54% and the current p.m. quirements. States are required to type of comparison because it would prison population of 21,900 is actu- redetermine eligibility at least once be taking health care expenditures ally about 1,000 inmates lower due TASK FORCE ON MEDICAID every 12 months. for just the Medicaid population and to this change. Key assumptions in COST CONTAINMENT Mandatory eligibility groups and dividing it by the full population of prison population projections include Minutes of the 1st Meeting optional eligibility groups were dis- this state. new court commitments, probation of the 2010 Interim cussed. There are mandatory and In response to a question by July 19, 2010 and parole rates, good-time awards, optional services that are covered by Representative Lee, Dr. Clark said if and parole grant rates. Call to Order and Roll Call Medicaid and examples were given of one takes the same population fig- Meghan Guevara of the Crime The 1st meeting of the Task each group of services. Kentucky’s ure and did not make any changes and Justice Institute at Community Force on Medicaid Cost Containment Medicaid program pays co-payments to that population and did not make Resources for Justice, gave a presen- was held on Monday, July 19, 2010, and deductibles for qualified Medi- any changes to the services that tation on evidence-based practices at 1:00 PM, in Room 131 of the Capi- care beneficiaries who receive cer- were being covered, and just looked in corrections to reduce new crime tol Annex. Senator Katie Kratz Stine, tain services. Waivers allow states at the Medicaid program that existed and new victims; increased cost sav- Chair, called the meeting to order, certain exceptions to the service re- in 1992 and did not make changes to ings due to efficient interventions, and the secretary called the roll. quirements. There are a number of it subsequently, then that population reduced recidivism and reduced in- Present were: current Kentucky waiver programs. probably still would have grown rela- carceration; improved assessments Members: Senator Katie Kratz Currently, there are over 40,000 tive to the total general fund. The of criminal risk and behaviors, tar- Stine, Co-Chair; Representative Jim- providers of Medicaid services in reason for that is, even if the popula- geted treatment programs based on mie Lee, Co-Chair; Senators Julie Kentucky. Charts were shown that tion did not grow any more than the an offender’s risk and needs, and di- Denton, Denise Harper Angel, and reflect how Kentucky Medicaid eli- rest of the state, there have been in- recting resources toward proven in- David L. Williams; Representatives gibles have increased more steadily creases in utilization and in the cost terventions. She noted community Tom Burch, Rick Rand, Greg Stumbo, over the years as compared with of health care. support is essential to these efforts. and David Watkins. the number of eligibles if the growth Representative Lee said that in- The program also uses performance Guests: Don Putnam for PROOF; equaled the state population growth. formation should be provided to the benchmarks for public safety and Dave Croft for Bristol-Myers Squibb; The growth in the KCHIP population committee in further meetings that treatment agencies and uses evi- Marty White and Bill Doll for the and the number of children enrolled looks at the difference between the dence-based practices. Kentucky Medical Association; Shei- in Medicaid are a driving growth in waivers that were in place in 1992 Jason Newman of the PEW Pub- la Schuster for the Advocacy Action the increase of Medicaid eligibles. and the waivers that are currently in lic Safety Performance Project and Pe- Network; and Anne Joseph for Cov- Kentucky Medicaid funding sources place and the impact that has had on

THE KENTUCKY GENERAL ASSEMBLY 39 the state’s budget. changes in the scope of Medicaid, In response to a question by tucky Kids and Families. In response to questions by Sen- specifically expansion of the KCHIP Representative Rand, Dr. Clark said LRC Staff: Mike Clark, Miriam ator Denton, Dr. Fordham said that program have contributed to the that Kentucky still must provide the Fordham, Lashae Kittinger, DeeAnn federal rules govern that resources are growth of certain eligibility catego- mandatory services and offer it to Mansfield, Cindy Murray, Cindy not considered in Medicaid eligibility ries. In the late 1990’s, the federal the mandatory groups. That would Smith, Pam Thomas, and Frank Wil- determination for pregnant women government provided some addition- not affect the FMAP for those com- ley. and the CHIP program, as well as the al incentive to extend coverage to ponents of Medicaid. Approval of Minutes legal residents prior to 1996. children at higher income levels than In response to a question by The minutes of the November In response to a question by what had been done in the past, so Speaker Stumbo, Dr. Clark said he 23, 2009 Medicaid Oversight and Senator Denton, Dr. Fordham said that’s contributed to a portion of it. could work with the Cabinet on get- Advisory Committee were approved that she was not sure of how often The idea was the limits under welfare ting information regarding if Kentucky without objection by the members of Kentucky is re-determining eligibil- reform constrained the total popula- is going to offer optional services and the Medicaid Oversight and Advisory ity, or if the federal government has tion but there was another effort to if Kentucky adheres to the baseline Committee. a certain way it requires states to do allow excess for children basically. that the federal government requires, Medicaid Overview that, but that is something that the In response to a question by what the difference is in what is of- Betsy Johnson, Commissioner, Cabinet could address in its presen- Representative Burch, Dr. Clark re- fered and paid for now as opposed to Department for Medicaid Services, tation at a future meeting. sponded that there is a difference what the minimums are. Cabinet for Health and Family Ser- In response to a question by in how KenPac and Passport are re- Representative Burch added that vices, gave an overview of Medicaid. Senator Denton, Dr. Clark said a per- imbursed. With Passport there ba- when the Cabinet appears, it should Medicaid is the nation’s major pub- son can be eligible while pregnant sically is a contractual fee. KenPac be asked about the guidelines on all lic health program for low-income but not be eligible after delivery is more of a fee-for-service program, the optional programs; the percent- Americans. It finances health and because, after 60 days, the person but there is a primary care compo- age that Kentucky is above the mini- long-term care services for more than would fall under different eligibility nent. With KenPac, there can have a mum on those particular programs; 50 million people. Medicaid spend- guidelines. It would depend on what primary care health care provider and the amount of the minimums and ing enables the program to make sig- those guidelines were for that par- the provider will receive $3 per Med- maximums; the amount of deduct- nificant contributions to state econ- ticular category population. icaid enrollee. ibles; and which benefits are provid- omies in terms of jobs, income, and In response to a response to In response to a question from ed above the minimums. overall economic activity. Medicaid a question by Senator Denton, Dr. Representative Burch, Dr. Clark re- The meeting was adjourned at provides coverage to over 798,493 Fordham said that almost all other sponded that there have been some 2:25 p.m. of Kentucky’s most vulnerable citi- states provide emergency and non- studies that compare what Medicaid zens and provides coverage to over emergency medical transportation pays versus what the private sector JOINT MEETING 59,798 children who are enrolled in In response to a question by pays. That information will be given TASK FORCE ON MEDICAID the Kentucky Children’s Health In- Senator Denton, Dr. Clark said data to the committee at a later date. COST CONTAINMENT surance Program (KCHIP). For every has been requested from the Cabinet In response to a question by MEDICAID OVERSIGHT AND dollar received, the Department for on what the per member per month Representative Watkins, Dr. Clark ADVISORY COMMITTEE Medicaid Services spends approxi- rate is, and it is working on that in- said that Medicaid has provided some Minutes of the 2nd Meeting mately 2.2 percent for administrative formation. Cindy Murray said that it information relative to a breakdown of the 2010 Interim costs. Unprecedented growth in the is $3 per individual, per member per on where the Medicaid dollar flows. July 20, 2010 number of new enrollees is due to a month, which is just the provider That information will be given at a weakening economy. During the last fee, for managing care. The provid- future meeting, and the Department Call to Order and Roll Call biennium, Medicaid added over 3,000 ers would still receive fees for other for Medicaid Services will be discuss- A joint meeting of the Task Force new recipients each month compared services that they provide. When ing that as well. on Medicaid Cost Containment and to 930 per month in the prior bienni- the global costs are received from the In response to a question from the Medicaid Oversight and Advisory um. Medicaid is the largest payer for Cabinet, they will be reported to the Senator Harper Angel, Dr. Clark said Committee was held on Tuesday, July long-term care services both in Ken- Committee. that the legislative changes that af- 20, 2010, at 10:00 AM, in Room 131 tucky and the nation. Medicaid has In response to a question by fected the provider tax was just for of the Capitol Annex. Representative 40,345 enrolled providers. Medicaid Representative Rand, Dr. Clark re- Passport, and the dip in 2009 pro- Jimmie Lee, Chair, called the meeting is the primary payer of healthcare in sponded that determination of FMAP vider tax returns was primarily from to order, and the secretary called the Kentucky. is primarily a formula based on per the removal of that tax. roll. Discussion of Medicaid Cost capita income to get the FMAP rate. In response to a question from Present were: Drivers With the enhanced match, there Representative Stumbo, Dr. Clark Members: Senator Katie Kratz Betsy Johnson, Commissioner, were some adjustments based on said that his understanding is that Stine, Co-Chair; Representative Jim- Department for Medicaid Services, level of employment, so areas with the provision of prescription drugs mie Lee, Co-Chair; Senators Walter Cabinet for Health and Family Ser- high unemployment received some is an optional service, and, there- Blevins, Julie Denton, , De- vices, testified in regard to Medicaid additional consideration there. fore, the state has a range of options. nise Harper Angel, Bob Leeper, and cost drivers. Medicaid cost drivers In response to a question by Kentucky could not provide some David L. Williams; Representatives include extraordinary events, un- Representative Rand, Dr. Clark said of these services or reduce services, Tom Burch, Bob DeWeese, Joni Jen- precedented eligibility growth, and that Kentucky has to provide ser- but Kentucky would not be eligible kins, Rick Rand, David Watkins, and cost and utilization growth. New vices for pregnant women up to 133 for the match if the state chose to do Jill York. waivers contribute to Medicaid cost percent of the federal poverty level. that. There would be consequences Guests: Don Putnam for PROOF; drivers. These include the Michelle The information is being worked on of doing this though. Individuals not Dwayne Johnson, Eric Clark and Ruby P. Waiver, implemented in November, to prepare an analysis that would getting access to pharmaceuticals Jo Lubarsky for the Kentucky Associ- 2008; Money Follows the Person, show the range of flexibility that can may show up in some other catego- ation of Health Care Facilities; Bernie implemented in October, 2008; and be chosen from in determining eligi- ry, which would raise costs in that Vonderheide and Bryce McGowan the ABI Long Term Care Waiver, im- bility levels. category. Dr. Fordham added that for Kentuckians for Nursing Home plemented in November, 2008. Also, In response to a question from even though there is some latitude Reform; Jeff Presser for Dean Dorton there has been increased KCHIP en- Representative Rand, Dr. Clark said as to being an optional service, there Ford; Marty White and Bill Doll for rollment from 53,186 to 59,798 that it is not that guidelines on wel- is a baseline that the states have to the Kentucky Medical Association; from October, 2008 to May, 2010. fare reform have been relaxed, but cover. and Anne Joseph for Covering Ken- Charts were discussed that showed

40 2010 Interim LEGISLATIVE RECORD the growth in Medicaid eligibility and is not on the list then it is not cov- President Williams, Commissioner inet and the P&T committee as to Medicaid benefit expenditures aver- ered. If the prescription drug has the Johnson said that if a Medicaid re- what drugs should be on the formu- age cost per eligible per month from same therapeutic value, that drug cipient qualifies for group insurance lary. Magellan currently negotiates 2007-2010. would also be covered. through their employer, the money with 26 states. Magellan receives no Discussion of Medicaid Cost In response to a question by will go directly to the employer for additional benefit from the state oth- Containment Measures Representative Lee, Commissioner payment. Also, she noted that Med- er than what the contract states, and Betsy Johnson, Commissioner, Johnson said there are currently 600 icaid is always the second payer if a they have no other sidebar contracts Department for Medicaid Services, recipients enrolled in the lock-in pro- recipient has other health insurance. if they use particular companies. Its Cabinet for Health and Family Ser- gram, and the Cabinet is expecting In response to a question by reward is a renewal of its contract. vices, testified in regard to Medicaid up to 4,000 to come out after the Senator Williams, Commissioner All contracts are fee based with no cost containment measures. Numer- claims analysis is done. Johnson said that an analysis is done additional benefits to Magellan. ous Medicaid efficiencies were dis- In response to a question by Sen- to determine if Medicaid is going to In response to a question by cussed. These include post payment ator Denton, Commissioner Johnson pay the reimbursement. President Williams, Mr. Coppola said pharmacy audits; prior authoriza- said that the lock-in program does In response to a question by Sen- that Magellan provides formulary tion for certain drugs; changes to the not include dental, but the depart- ator Denton, Commissioner Johnson management for 25 states and is early refill limit; requiring that only ment can look into adding that. said that the Cabinet is looking for the pharmacy benefits administrator prescriptions written by a Medicaid In response to a question by ways to focus on those over-utilizing for Kentucky and eight other states. enrolled provider are filled; modifying Senator Williams, Commissioner emergency rooms. She noted that There are four other companies that coverage of over-the-counter medica- Johnson said that tracking is done it would not be appropriate for all provide the same services. Different tions; an enhanced lock-in program; by the Division of Program Integrity Medicaid eligibles to be in the lock- states get different rebates, depend- discontinuing payments for hospital and they have access to the KASPER in for hospitals. Senator Denton said ing on the program they opt-in to. acquired conditions; purchase of dia- system. The department also man- that emergency room overutilization There are 11 states in the national betic supplies through pharmacy in- ages drugs through the PDL and data needs to be a main focus of the Cabi- program. Compared to private insur- stead of durable medical equipment; analysis through prescriber patterns, net, and they need to work aggres- ance, Medicaid rates are the best due new program integrity support ven- and also manages preferred drug sively to find a solution. to best price. dor; and payment of health insurance lists. In response to a question by The meeting was adjourned at premiums if Medicaid recipients are In response to a question by Senator Stine, Commissioner John- 11:55 a.m. eligible for group health insurance. President Williams, Commissioner son said that Medicaid does pay Discussion of Medicaid Pharma- Johnson said that the audits by Ma- dispensing fees for over-the-counter CAPITAL PROJECTS AND cy Benefit Administration gellan are a service required under drugs because they are paying for the BOND OVERSIGHT COMMIT- Betsy Johnson, Commissioner, the contract with Magellan. services since there has to be a pre- TEE Department for Medicaid Services, In response to a question by scription from the providers for over- Minutes Cabinet for Health and Family Ser- Senator Leeper, Commissioner John- the-counter drugs to be reimbursed. July 20, 2010 vices, testified in regard to Medicaid son said that cost savings due to the In response to a question by Call to Order and Roll Call pharmacy benefit administration. change in the refill time limits is no- Representative DeWeese, Commis- The Capital Projects and Bond Pharmacy is an optional service un- ticed over time. The longer refill time sioner Johnson said that it is com- Oversight Committee met on Tues- der the federal Medicaid rules. It is helps to avoid the diversion of drugs. plex to compare different states’ day, July 20, 2010, at 1:00 PM, in the largest optional service before She also noted that she did not have Medicaid programs. Costs depend Room 169 of the Capitol Annex. accounting for rebates and totaled the figures with her on behavioral on what drugs are covered and what Senator Bob Leeper, Chair, called the $508 million for SFY 2009, which is health drugs, but she would get that the rebate issues are. meeting to order, and the secretary about 9 percent of the total Medicaid to the committee. Medicaid Rebates called the roll. dollars. Pharmacy costs for dispens- In regard to a question by Sena- Rob Coppola from Magellan tes- Present were: ing fees are $5.00 for generic drugs tor Leeper, Commissioner Johnson tified in regard to Kentucky’s Med- Members: Senator Bob Leeper, and $4.50 for name brand drugs. The said the Cabinet is continuing to icaid Drug Rebate Program. The Co-Chair; Representative Susan Pharmacy and Therapeutics (P&T) look at the problem of people that Medicaid Drug Rebate Program was Westrom, Co-Chair; Senators Tom Committee and the Drug Manage- are on too many drugs, sometimes in created by the Omnibus Budget Rec- Buford, Julian M. Carroll, and Eliza- ment Review Advisory Board were excess of 20 different prescriptions onciliation Act (OBRA) of 1990. It beth Tori; Representatives Robert R. discussed. The requirements for both per month. She said it is a difficult requires drug manufacturers to enter Damron and Jim Wayne. groups are set forth in administrative issue to fix because certain health into a National Rebate Agreement Guests: Brett Antle, Office of regulations. Both committees con- issues require a number of different to ensure that their drugs are cov- Financial Management; John Hicks, sist of 15 members, with thirteen of drugs. The Cabinet plans to work ered by Medicaid agencies. Approxi- Governor’s Office of Policy and Man- those being voting members. with the P&T Committee to address mately 550 pharmaceutical manu- agement; Sam Ruth, Facilities and In response to a question by it further. facturers currently participate. The Support Services; Larry Blake, North- Representative Lee, Commissioner In response to a question by program also establishes minimum ern Kentucky University; Mitchell Johnson said that in regard to post Representative Stacy, Commissioner rebate amounts. The rebate program Payne, University of Louisville; San- payment pharmacy audits, the Cabi- Johnson said that the results from in Kentucky is administered by Ma- dy Williams, Kentucky Infrastructure net works closely with the PBA, does studies on cost driver by diagnoses gellan Medicaid Administration. It Authority; Bob Wiseman and Donna desk audits, and reviews files. If will be discussed at a future meet- is a fee-based contract with 100 per- Counts, University of Kentucky; and something is found to be amiss, let- ing. cent of the revenue being returned Jim Ackinson, Kentucky Higher Edu- ters are sent to the pharmacies in- In response to a question by to Kentucky. In Kentucky, the OBRA cation Student Loan Corporation. volved. Quarterly audits are done, Representative DeWeese, Commis- rebates averaged $51.7 million per LRC Staff: Kristi Culpepper, Don and they look at pharmacies with sioner Johnson said that once people quarter in 2009. The supplemental Mullis, Shawn Bowen, and Samantha high spending that is out of the are locked-in to a certain hospital, if rebates averaged $7.3 million per Gange. norm. they use a different emergency room, quarter in 2009. In response to a question by that hospital will be paid only the as- In response to questions by Approval of Minutes for June Representative Lee, Commissioner sessment fee. It will be the job of Representative Lee, Mr. Coppola re- 2010 Johnson said that if a prescription is the hospital to send them on to their sponded that Magellan is a pharmacy Representative Wayne made a written for a name brand drug, there primary physician. benefits administrator. Magellan motion to approve the minutes of is no prior authorization because if it In response to a question by makes recommendations to the Cab- the June 15, 2010, meeting. The mo-

THE KENTUCKY GENERAL ASSEMBLY 41 tion was seconded by Senator Carroll need to budget these payments in by roll call vote. ware. The project cost is $3,650,000 and approved by voice vote. the next budget. and will be funded by the American Correspondence Items Representative Wayne asked Scope Increase for the Univer- Recovery and Reinvestment Act. The Senator Leeper asked Kristi Cul- if OFM had a comprehensive list of sity of Louisville Commonwealth Energy Management pepper, Committee Staff Administra- other states that are also doing these Senator Leeper asked Mitch- and Control System software will al- tor, to discuss correspondence items. types of debt restructurings. Mr. An- ell Payne, Vice President for Busi- low the department to monitor and Ms. Culpepper said members’ folders tle said there are other states that are ness Affairs, University of Louisville adjust building energy controls to contained several correspondence doing similar restructurings, however (UL), to report a scope increase. Mr. better manage energy usage in gov- items: Finance and Administration he did not know how many states. Payne reported a scope increase for ernmental facilities. The project is Cabinet, Murray State University, He said he would provide the infor- the Papa John’s Cardinal Stadium Ex- part of the Intelligent Choices for Northern Kentucky University, Uni- mation to Committee staff. pansion project. The scope increase Kentucky Future program. versity of Kentucky, University of In response to another question is $5,100,000 for a revised scope Senator Carroll made a motion Louisville, and Western Kentucky from Representative Wayne, Mr. An- of $77,100,000. Funding for the in- to approve the unbudgeted project University quarterly status reports on tle said the debt restructurings were crease comes from restricted funds for the Department for Facilities and capital projects; Administrative Office done specifically to provide cash flow and private donations. The addition- Support Services. The motion was of the Courts quarterly status report savings during the current budget al funds are needed for a scoreboard, seconded by Representative Wayne on court facility construction and cycle on behalf of the General Fund decorative crown trellis, permanent and passed unanimously by roll call renovation projects; Commonwealth as well as the Road Fund. tent structures, and construction of vote. Office of Technology quarterly status Representative Wayne asked if a ticket office/team store. Next Mr. Hicks reported that the report on information technology the state has been downgraded be- Senator Carroll made a motion Finance and Administration Cabinet systems; and correspondence from cause of the debt restructurings. Mr. to approve the scope increase for has approved an unbudgeted project Tom Howard, Executive Director, Of- Antle said Fitch Ratings downgraded UL. The motion was seconded by for the Department of Military Af- fice of Financial Management (OFM), the Commonwealth from AA to AA- Representative Wayne and approved fairs, Wendell H. Ford Regional Train- regarding questions raised by Com- last month, but Moody’s Investors unanimously by roll call vote. ing Center in Greenville, Kentucky mittee members about the state’s Service affirmed the state’s General Project reports from the Finance to install solar panels. The project outstanding debt and debt that has Fund rating at Aa2. Mr. Antle said and Administration Cabinet cost is $750,000 and will be funded been authorized by the General As- that Fitch cited the state’s use of debt Senator Leeper asked John Hicks, by the American Recovery and Rein- sembly that has not yet been issued. restructurings when it downgraded Deputy Director, Governor’s Office vestment Act. The project will allow Ms. Culpepper said Mr. Howard’s let- the state last month. Moody’s has for Policy and Management, and Sam installment of more than 84kw Solar ter also addressed the Committee’s mentioned the state’s debt restruc- Ruth, Commissioner, Department for PV Systems at the center. questions about the costs associated turings in justifying its negative out- Facilities and Support Services, to re- Senator Carroll made a motion with debt restructuring. look on the state’s credit. port several projects. Mr. Hicks said to approve the unbudgeted project Other items of correspondence Senator Carroll asked what the first project was a scope increase for the Department of Military Af- included a letter from John Coving- amount was borrowed against the for Eastern Kentucky University fairs. The motion was seconded by ton, Executive Director, Kentucky Road Fund in the 2010 Special Ses- (EKU) Renovate Walters Hall project. Senator Tori and passed unanimously Infrastructure Authority (KIA), re- sion. Mr. Antle said the new autho- The scope increase is $450,000 for a by roll call vote. sponding to the Committee’s ques- rization for the Road Fund included revised scope of $10,950,000. Fund- Mr. Hicks reported that the Fi- tions about the amount of funding $400 million of economic develop- ing for this increase comes from re- nance and Administration Cabinet KIA has available for the 2011 fund- ment bonds, $112 million for Base stricted funds. The additional funds has approved an unbudgeted project ing cycle and the size of borrowers Realignment and Closure (BRAC), are needed to offset increased costs for the Department of Military Af- that have received loans; and a no- and $10.5 million for aviation proj- associated with unforeseen expenses fairs, Disney Training Center in Bar- tice of advertisement of leased space ects. related to a complete roof replace- bourville, Kentucky for solar energy from the Finance and Administration Information Items ment and an air handler renovation. improvements. The project cost is Cabinet for space in Covington, Ken- Ms. Culpepper said members’ Senator Carroll made a motion $750,000 and will be funded by the tucky. folders contained three information to approve the scope increase for American Recovery and Reinvest- items: Tourism, Arts and Heritage EKU. The motion was seconded by ment Act. The project will allow the Cabinet’s Kentucky Horse Park En- Representative Wayne and passed center to increase the number of so- Discussion of State Debt and ergy Savings Performance Contract, unanimously by roll call vote. lar panels currently being installed. Debt Restructuring and the staff and bond market up- Next Mr. Ruth said the Finance Senator Carroll made a motion Representative Wayne asked if dates. and Administration Cabinet is re- to approve the unbudgeted project this was the first time the state has Lease Report from Northern porting its approval of a $1,500,000 for the Department of Military Af- done debt restructuring transactions Kentucky University. appropriation for replacement of the fairs. The motion was seconded by to provide budgetary relief. Brett An- Senator Leeper asked Larry Blake, Capital Annex Roof. This project Senator Tori and passed unanimously tle, Assistant Director, OFM, said it Assistant Vice President, Northern is funded with $800,000 from the by roll call vote. was not. Kentucky University (NKU), to report 2006-2008 Statewide Repair, Main- Lease Reports from the Finance Representative Wayne asked one item related to a lease renewal. tenance and Replacement Pool and and Administration Cabinet what fiscal year the state will have to Mr. Blake said the lease renewal was $700,000 from the 2008-2010 Main- Senator Leeper asked Mr. Ruth start repaying on the restructurings. for the NKU METS Center located in tenance Pool. No action was required to report three items related to leas- Mr. Antle said the state will start Erlanger, Kentucky (PR-07801). The on allocations of maintenance pools. es. Mr. Ruth said the first item was making payments for fiscal year 2010 annual cost for space is $700,000 In response to a question from for the amortization of leasehold on the State Property and Buildings through June 30, 2012. Senator Leeper, Mr. Ruth said the improvements for the Workforce In- Commission No. 90 bond issue. He In response to a question from new roof would have a 20-year war- vestment Cabinet in Floyd County said that with the more recent bond Senator Carroll, Mr. Blake said the ranty. (PR-4074). The cabinet has request- issues, the state will not start the advertisement for the space yielded Mr. Ruth reported that the Fi- ed improvements to its leased facility amortization until after this bien- no other responses. nance and Administration Cabinet to install ADA compliant automatic nium. Senator Carroll made a motion has approved an unbudgeted proj- door opening equipment for a set of In response to another ques- to approve the lease renewal for ect for the Department for Facilities double doors. The cost of modifica- tion from Representative Wayne, Mr. NKU. The motion was seconded by and Support Services to procure and tions, $4,291, will be amortized over Antle said the General Assembly will Senator Tori and passed unanimously implement energy management soft-

42 2010 Interim LEGISLATIVE RECORD the remaining lease term (through of two percent. ances plus accrued interest through Authority bonds June 30, 2012). No Committee ac- Representative Westrom made a the date of settlement. Next Mr. Antle reported four tion was required. motion to approve the two Fund A In response to questions from follow-up reports for previously ap- Next Mr. Ruth reported a new loan requests. The motion was sec- Senator Carroll and Representative proved bond issues. The first follow- lease for the Cabinet for Health and onded by Senator Carroll and passed Damron, Mr. Antle said this transac- up report was for the Turnpike Au- Family Services in Daviess County unanimously by roll call vote. tion is estimated to result in $60 mil- thority of Kentucky (TAK) Economic (PR-5087). The cabinet was direct- KIA Fund B loan Assumption lion in cash flow savings. Development Road Revenue and Rev- ed to vacate its current space in the The third request was for a Fund Representative Damron made a enue Refunding Bonds 2010 Series A Owensboro State Office building. The B loan assumption for the Boone motion to approve the new bond is- & B (Revitalization Projects) dated new space will secure permanent re- County Water District (district) in sue for ALCo. The motion was sec- June 25, 2010. Proceeds from this placement offices for the cabinet. The Boone County. The district is seeking onded by Representative Westrom bond issue will permanently finance annual cost of the lease is $530,979 to assume $2,336,206 in outstanding and passed unanimously by roll call $250 million of Road Fund-support- through July 30 2017. Infrastructure Revolving Fund B debt vote. ed projects authorized by 2008 HB In response to a question from of the Boone County Fiscal Court New Bond Issue – University of 406 and 2009 HB 536. The financ- Representative Wayne, Mr. Ruth said (county). The county and the district Kentucky General Receipts Bonds, ing also includes a debt restructuring the new office space for the cabinet intend to enter into a Purchase and 2010 Series A (Taxable Build America component to provide $81 million in will have adequate security. Lease Agreement related to the asset Bonds or Tax-Exempt). budgetary relief for the Road Fund. Representative Wayne made and debt assumption from the court Mr. Antle indicated Bob Wise- The bond issue was approved by the a motion to approve the new lease to the district. The loan term is 30 man, Vice President for Facilities Committee at the March 2010 meet- for the cabinet. The motion was sec- years with an interest rate of 2.70 Management, and Donna Counts, ing. onded by Senator Carroll and passed percent. Office of the Treasurer, University Kentucky Higher Education Stu- unanimously by roll call vote. Senator Carroll made a motion of Kentucky (UK), would report on dent Loan Corporation bonds Mr. Ruth said the last item was to approve the Fund B loan assump- the new bond issue. Mr. Wiseman Mr. Antle indicated that Jim a report of a lease renewal in a for- tion. The motion was seconded by said with this bond issue UK will be Ackinson, Vice President, Kentucky eign jurisdiction for a boat slip on Representative Westrom and passed implementing an Energy Savings Per- Higher Education Student Loan Cor- the Ohio River for the Department of unanimously by roll call vote. formance Contract (ESPC). The ESPC poration (KHESLC) would report on Fish and Wildlife Resources in Scioto KIA Fund F loans involves replacing existing light- the KHESLC Student Loan Revenue County Ohio (PR-4883). He said no The fourth loan request was ing technology, replacing high-flow Bonds, Series 2010-1 (Tax-Exempt comparable marinas are located on a $4,000,000 Fund F loan for the plumbing fixtures, and upgrading Non-AMT LIBOR Floating Rate Bonds) the Kentucky side of the Ohio River Adair County Water District in Adair existing mechanical HVAC systems Class A -1 and A-2 bond issue, which in this general vicinity. No Commit- County for construction of 38,000 in 61 buildings on campus. The im- was approved by the Committee at tee action is required. linear feet of twelve-inch ductile iron provements are expected to produce the February 2010 meeting. Mr. Ack- In response to a question from transmission appurtenances, a new a guaranteed savings of approximate- inson explained that this bond issue Representative Damron, Mr. Ruth booster pump station, and a 500,000 ly $2.7 million annually. The 2010 eliminated KHESLC’s risk exposure said the boat slip on the Ohio side gallon elevated tank. The loan term is Special Session HB 1(2010-2012 related to the failed auction rate se- of the river is closer to the officers 20 years with an interest rate of one Budget) authorized $25 million in curities issued under KHESLC’s 2004 patrol area and is more efficient. percent. agency bonds for UK’s ESPC. General Bond Resolution. KIA Fund A Loans The fifth loan request was a The UK Board of Trustees ap- Mr. Ackinson said KHESLC was Senator Leeper asked Sandy Wil- $1,700,000 Fund F loan for the City proved the initiation in December able to borrow $703 million from liams, Financial Analyst, KIA to pres- of Louisa in Lawrence County for im- 2009. Although UK has anticipated the Straight A funding program es- ent several loans. Ms. Williams said provements to the city’s water sys- using agency bonds for this project, tablished by the federal government. the first loan request was a $250,000 tem. The loan term is 20 years with the board has not yet approved a res- The second piece of the financing was Fund A loan for the Oldham County an interest rate of one percent. olution authorizing the issuance of required because not all of KHESLC’s Sewer District in Oldham County Senator Carroll made a motion the bonds because the state budget pre-existing collateral was eligible for for construction of the Green Valley to approve the two Fund F loans. The was adopted later. UK wants to be- Straight A funding. Wastewater Treatment Plant Elimina- motion was seconded by Represen- gin the project this summer to take tion and LaGrange Connection proj- tative Westrom and passed unani- advantage of having fewer students Morehead State University ect. The loan term is 20 years with an mously by roll call vote. on campus. The university plans to bonds interest rate of two percent. KIA Grants begin the projects and have the board Next Mr. Antle said the third Senator Leeper asked if the La- Ms. Williams indicated various approve a reimbursement resolution first follow-up report was for More- Grange Utilities Commission and/or coal and tobacco development grants when the board meets in Septem- head State University General Re- the City of LaGrange have provided authorized by the General Assembly ber, whereby the project costs would ceipts Bonds, Taxable Build America KIA with an agreement. Ms. Wil- were included in members’ folders. be reimbursed from bond proceeds. Bonds 2010 Series A. Proceeds from liams indicated that the agreement Each project was authorized in a The bonds will not be issued until this bond issue will be used for the has been executed, however KIA has budget bill and no further Commit- October. Because the UK Board will Renovate Mignon Tower Residence not yet received a copy of the agree- tee action was needed. not meet until September, UK’s Vice Hall as authorized in 2008 HB 406 ment. She said KIA will not release New Bond Issue – Kentucky As- President for Financial Operations (2008-10 Budget). This bond issue funds until a copy of the agreement set/Liability Commission (ALCo) and Treasures has provided certifica- was included on the Committee’s is received. Senator Leeper asked Mr. Antle tion that the project will not result May 2010 agenda, but was not ap- The second loan request was to present two new bond issues. The in an increase in tuition and fees as proved due to a lack of quorum. The a $17,146,500 Fund A loan for first new bond issue was for ALCo required in HB 1, Part II, Section K Finance and Administration Cabinet Sanitation District No. 1 in Boone, Funding Notes 2010 General Fund (2010-2012 Budget). notified the Committee in a letter Campbell, and Kenton Counties for First Series. Proceeds from this bond Senator Buford made a motion that the Cabinet would proceed with construction of a new 110 million issue will be used to refinance obli- to approve the new bond issue for the bond issue. gallon-per-day facility, modifications gations owed under KRS 161.550(2) UK. The motion was seconded by Northern Kentucky University to the existing final clarifier splitter and KRS 161.553(2) for the Kentucky Representative Westrom and passed bonds box, and installation of a chemical Teachers Retirement System Pension unanimously by roll call vote. The fourth follow-up report was scrubber to treat foul air. The loan Fund to reimburse the Fund for 100 Follow-up Reports for Previous- for Northern Kentucky University term is 20 years with an interest rate percent of the outstanding loan bal- ly Approved Bond Issues – Turnpike

THE KENTUCKY GENERAL ASSEMBLY 43 General Receipts Bonds, 2010 Series 13 KAR 1:020. Private college and (4) to amend Sections 2, 3, 5 A. Proceeds from this bond issue will Senator Buford made a motion licensing. Dennis L. Taulbee, general through 8, 11, 12, and 16 to comply be used for the Acquire and Renovate to approve the eight SFCC bond is- counsel, and Jevonda Keith, senior with the drafting and format require- Residence Hall project as authorized sues. The motion was seconded by associate, represented the council. ments of KRS Chapter 13A. Without in 2008 HB 406 (2008-10 Budget) Representative Westrom and passed GENERAL GOVERNMENT CABI- objection, and with agreement of the and will refund the university’s out- unanimously by roll call vote. NET: Board of Nursing: Board agency, the amendments were ap- standing Consolidated Educational Senator Leeper asked Ms. Cul- 201 KAR 20:510. Voluntary re- proved. Buildings Revenue Bonds Series J pepper to report the new local school linquishment of a license or creden- 781 KAR 1:030. Order of selec- and refund the outstanding princi- bond issues. Ms. Culpepper said tial. Nathan Goldman, general coun- tion and economic need test for vo- pal amount of a 1998 facilities lease, there were six new school district sel, represented the board. cational rehabilitation services. including the related certificates of bond issues with 100 percent local A motion was made and second- A motion was made and second- participation. This bond issue was debt support for Franklin County, ed to approve the following amend- ed to approve the following amend- included on the Committee’s May Grayson County, Hardin County, ments: (1) to amend the STATUTORY ments: (1) to amend the RELATES TO 2010 agenda, but was not approved Lincoln County, Lincoln County, and AUTHORITY paragraph to correct paragraph to add additional citations; due to a lack of quorum. The Finance Ohio County. All disclosure informa- statutory citations; (2) to amend the (2) to amend the NECESSITY, FUNC- and Administration Cabinet noti- tion has been filed. No Committee NECESSITY, FUNCTION, AND CON- TION, AND CONFORMITY paragraph fied the Committee in a letter that action was needed. FORMITY paragraph to clearly state to clearly state the necessity for and the Cabinet would proceed with the With there being no further the necessity for and the function the function served by this admin- bond issue. No Committee action is business, Representative Westrom served by this administrative regu- istrative regulation, as required by needed on follow-up reports. made a motion to adjourn the meet- lation, as required by KRS 13A.220; KRS 13A.220; (3) to amend Section Representative Damron asked ing. The motion was seconded and and (3) to amend Sections 1 and 2 to 1 to add necessary definitions; and how the interest rates on the recent the meeting adjourned at 2:05 p.m. comply with the drafting and format (5) to amend Sections 1 through 3 to bond issues compared with the in- requirements of KRS Chapter 13A. comply with the drafting and format terest rate assumptions made in the ADMINISTRATIVE Without objection, and with agree- requirements of KRS Chapter 13A. budget. Mr. Antle said the interest REGULATION REVIEW ment of the agency, the amendments Without objection, and with agree- rates on the bonds are coming in SUBCOMMITTEE were approved. ment of the agency, the amendments considerably lower than forecast- Minutes of the July Meeting TRANSPORTATION CABINET: were approved. ed. He said going into this budget July 13, 2010 Department of Vehicle Regulation: PUBLIC PROTECTION CABINET: cycle, OFM provided estimates on Call to Order and Roll Call Division of Driver Licensing: Admin- Kentucky Horse Racing Commission: both a Build America Bond basis and The July meeting of the Admin- istration Division of Licensing: Thoroughbred tax-exempt basis. He said the Build istrative Regulation Review Subcom- 601 KAR 2:020. Drivers’ privacy Racing American Bond program has played mittee was held on Tuesday, July 13, protection. Ann D’Angelo, assistant 810 KAR 1:025 & E. Licens- an important role in the rates com- 2010, at 1:00 PM, in Room 149 of general counsel, and Godwin Onodu, ing thoroughbred racing. Patricia J. ing in lower than projected. Mr. An- the Capitol Annex. Representative assistant director, represented the Cooksey, director of public relations; tle said when they estimate the rate Leslie Combs, Chair, called the meet- division. Marc A. Guilfoil, deputy executive for Authorized But Unissued bonds ing to order, and the secretary called A motion was made and sec- director; and Susan Bryson Speck- (ABUI) potential market volatility is the roll. onded to approve the following ert, general counsel, represented the considered. Present were: amendments: (1) to amend Sections commission. Mr. Hicks also responded that Members: Senator Elizabeth 4 and 6 to comply with the drafting In response to questions by the state has not yet issued bonds Tori, Co-Chair; Representative Les- requirements of KRS Chapter 13A; Representative Damron, Ms. Speck- for traditional General Fund-support- lie Combs, Co-Chair; Senators Al- and (2) to amend Section 8 to incor- ert stated that it was necessary to ed capital projects. Representative ice Forgy Kerr, and Joey Pendleton; porate two (2) additional forms by promulgate these administrative Damron asked what was used in the Representatives Robert R. Damron, reference. Without objection, and regulations on an emergency basis budget for interest rates on these. Danny Ford, and Jimmie Lee. with agreement of the agency, the because a new racetrack may need Mr. Antle answered seven percent Guests: Dennis Taulbee, Jevonda amendments were approved. to be licensed at any time, personnel for tax-exempt debt and nine percent Keith, Council on Postsecondary Ed- EDUCATION AND WORK- licensing took place year round, and for the taxable rate on Build America ucation; Nathan Goldman, Board of FORCE DEVELOPMENT CABINET: frivolous appeals were an ongoing Bonds. Nursing; Ann D’Angelo, Godwin On- Department of Workforce Invest- problem. The commission approved Representative Damron asked if odu, Transportation Cabinet; Robin ment: Office of Vocational Rehabili- the fee increases at its board meet- 4.5 percent was a fair estimate for Ritter, Patrick Shirley, Mindy Yates, tation: Administration ing, which was open to the public the actual rates on debt. Mr. Antle Office of Vocational Rehabilitation; 781 KAR 1:020. General provi- and announced to all stakeholders. responded affirmatively. Patricia Cooksey, Marc Guilfoil, Su- sions for operations of the Office of In response to questions by Rep- Representative Damron asked if san Bryson Speckert, Kentucky Horse Vocational Rehabilitation. Robin N. resentative Ford, Ms. Speckert stated there would be a significant savings Racing Commission; Carrie Banahan, Ritter, program administrator; Patrick that frivolous appeals were refer- going forward. Mr. Hicks said if the Mary Begley, Stephanie Brammer B. Shirley, staff attorney; and Mindy enced throughout these administra- rates continue into the next issuance Barnes, Virginia Carrington, Eliza- Yates, staff assistant, represented the tive regulations based on the Civil there would be a significant savings. beth Caywood, Jennifer Devine, Lisa office. Rules established by the Kentucky Mr. Hicks said the ratio of debt ser- Osbourne, Cabinet for Health and A motion was made and second- Supreme Court. The frivolous ap- vice to revenue is lower than what Family Services; Caroline Ridgeway, ed to approve the following amend- peals prohibition is needed because was projected. Convenient Care Association. ments: (1) to amend the RELATES TO it is currently possible that a jockey, School Bond Issues The Administrative Regulation and STATUTORY AUTHORITY para- for example, may be suspended from Mr. Antle reported eight new Review Subcommittee met on Tues- graphs to correct statutory citations; racing; however, that suspension bond issues with School Facilities day, July 13, 2010, and submits this (2) to amend the NECESSITY, FUNC- could be frivolously appealed with Construction Commission (SFCC) report: TION, AND CONFORMITY paragraph the appeal date scheduled after an debt service participation for Boyle Administrative Regulations Re- to clearly state the necessity for and important race in which the jockey County, Garrard County, Green viewed by the Subcommittee: the function served by this admin- intended to race. The jockey would County, Harlan County, Lee County, COUNCIL ON POSTSECOND- istrative regulation, as required by be able to race and then withdraw Nelson County, Ohio County, and ARY EDUCATION: Nonpublic Col- KRS 13A.220; (3) to amend Section the frivolous appeal to serve the sus- Owen County. leges 1 to delete unnecessary definitions; pension at a time convenient to the

44 2010 Interim LEGISLATIVE RECORD jockey. Ms. Speckert stated that the ing or increasing fees by administra- tive branch agencies to: (1) express 810 KAR 1:100 & E. Frivolous commission would determine if an tive regulation and did not prohibit the Subcommittee’s displeasure with appeals. appeal was or was not frivolous, and an agency from repeatedly withdraw- the statutory loophole that allows A motion was made and sec- further due process could then be ing and refiling an administrative an agency to raise or establish fees onded to approve the following sought through the judicial system. regulation that was not identical to through an emergency administrative amendments: to amend the RELATES In response to questions by or substantially the same as a prior regulation, especially if that adminis- TO; STATUTORY AUTHORITY; and Senator Kerr and Representative emergency administrative regulation. trative regulation is then repeatedly NECESSITY, FUNCTION, AND CON- Ford, Ms. Speckert stated that in May In response to questions by Rep- withdrawn and refiled so that the fee FORMITY paragraphs and Section 2008 the commission voted for the resentative Lee, Ms. Speckert stated remains effective without legislative 1 to comply with the drafting and fee increases after an audit from the that the commission had been col- oversight; (2) express the Subcom- format requirements of KRS Chapter State Auditor, Critt Luallen, demon- lecting the fee since 2008 because the mittee’s recommendation that KRS 13A. Without objection, and with strated a need for the increases. Ms. administrative regulation had been Chapter 13A be amended during the agreement of the agency, the amend- Speckert stated that the administra- withdrawn and refiled several times. next regular session of the General ments were approved. tive regulations had been in place as Subcommittee staff stated that some Assembly to prohibit increasing or Harness Racing emergency administrative regulations of the issues that delayed progress of establishing fees by emergency ad- 811 KAR 1:037 & E. Licensing of for two (2) years, had been publicly the administrative regulations were ministrative regulation and to ex- racing associations. vetted with stakeholders, and had legal problems. The authorizing stat- press the Subcommittee’s intent to A motion was made and second- not been opposed by stakeholders. ute had been amended by the Gen- collectively prefile a co-sponsored ed to approve the following amend- The commission representatives and eral Assembly to authorize some of bill to do the same; and (3) include in ments: (1) to amend Section 11 and subcommittee members discussed the changes made by these admin- the letter the concern regarding fee the Change of Control form to insert the possibility of deferring some or istrative regulations. Fees were col- increases being placed on the horse omitted text; and (2) to amend the all of these administrative regulations lected before the amendments were racing community when the industry TITLE; the RELATES TO; STATUTORY until the August meeting; however, made to the authorizing statute. Mr. was struggling in a difficult economic AUTHORITY; and NECESSITY, FUNC- doing so allowed for a potential gap Guilfoil stated that the amendment climate. The question was called, and TION, AND CONFORMITY para- between the date the administrative that was necessary to the authoriz- a roll call vote was taken. The mo- graphs; and Sections 1, 4, 8, 9, and regulations would become effective ing statute pertained to clarifying the tion was approved unanimously by 11 to comply with the drafting and and the date the emergency provi- categories for licensure. all members present. format requirements of KRS Chapter sions would expire. Subcommittee Representative Lee requested A motion was made and second- 13A. Without objection, and with members discussed ramifications of that the commission provide a time- ed to approve the following amend- agreement of the agency, the amend- deferral and a possible motion to line documenting each time these ments: (1) to amend Sections 2 and ments were approved. request deferral. The agency agreed administrative regulations were 5 and the licensing application to up- 811 KAR 1:230 & E. Frivolous to potential deferral if the Subcom- withdrawn and refiled with the ra- date the licensing categories; (2) to appeals. mittee approved such a motion. Ms. tionale for the action, including how amend Section 4 to establish licens- A motion was made and sec- Speckert stated that live racing would the administrative regulations met ing requirements for equine thera- onded to approve the following be taking place during the potential statutory criteria for an emergency. pists; (3) to amend Section 9 to limit amendments: to amend the RELATES nine (9) day gap between when the In response to a question by out of competition testing to those TO; STATUTORY AUTHORITY; and emergency administrative regula- Representative Damron, Ms. Speck- authorized by administrative regula- NECESSITY, FUNCTION, AND CON- tions would expire and the ordinary ert stated that the commission was tion; (4) to amend Section 14(1)(s)1. FORMITY paragraphs and Section administrative regulations would be- not purposely trying to create a to delete the prohibition on firearm 1 to comply with the drafting and come effective, if the administrative situation where a fee was collected possession by a licensee on racing as- format requirements of KRS Chapter regulations were deferred. without public input or legislative sociation grounds; (5) to amend Sec- 13A. Without objection, and with A motion was made and sec- oversight. It took time to work out tion 23 to update the licensing appli- agreement of the agency, the amend- onded to defer consideration of these many of the legal issues, and all of cation and the veterinarian approval ments were approved. administrative regulations until the the commission meetings regarding form; and (6) to amend the RELATES Quarter Horse, Appaloosa and August meeting. A roll call vote was the fees were open to the public. Mr. TO; STATUTORY AUTHORITY; and Arabian Racing taken. The motion was not approved Guilfoil added that harness racing NECESSITY, FUNCTION AND CON- 811 KAR 2:130 & E. Frivolous by a vote of four (4) to two (2). stakeholders had been notified of the FORMITY paragraphs and Sections 2 appeals. Senator Kerr stated that it was fee increases, but he was not sure if through 5, 9 through 14, 16 through A motion was made and sec- unnecessary to take punitive action that was also true for all groups of 21, and 23 to comply with the draft- onded to approve the following toward this commission, but it was thoroughbred stakeholders. ing and format requirements of KRS amendments: to amend the RELATES important to take prudent action In response to a question by Chapter 13A. Without objection, TO; STATUTORY AUTHORITY; and to eliminate the statutory loophole Senator Kerr, Subcommittee staff and with agreement of the agency, NECESSITY, FUNCTION, AND CON- that allowed a fee to be established stated that the compromises made the amendments were approved. FORMITY paragraphs and Section or increased through an emergency to the administrative regulations 810 KAR 1:037 & E. Licensing of 1 to comply with the drafting and administrative regulation that was pertained to legal issues and not to racing associations. format requirements of KRS Chapter then withdrawn and refiled in such the fee increases. A motion was made and second- 13A. Without objection, and with a way that legislative oversight was Representatives Lee and Damron ed to approve the following amend- agreement of the agency, the amend- significantly delayed. She had not both stated that it was inherently ments: (1) to amend Section 11 and ments were approved. received any complaints from stake- wrong to raise fees without legisla- the Change of Control form to insert CABINET FOR HEALTH AND holders regarding the fees and did tive oversight and representation by omitted text; and (2) to amend the FAMILY SERVICES: Office of Health not wish to penalize the horse in- repeatedly filing and withdrawing an TITLE; the RELATES TO; STATUTORY Policy: Certificate of Need dustry. She questioned if raising fees emergency administrative regulation. AUTHORITY; and NECESSITY, FUNC- 900 KAR 6:060. Timetable for during this economic climate, which Subcommittee members discussed TION, AND CONFORMITY para- submission of certificate of need ap- had hit the racing industry severely, the potential need to amend KRS graphs; and Sections 1, 4, 8, 9, and plications. Carrie Banahan, executive was prudent. Chapter 13A to close this loophole. 11 to comply with the drafting and director, represented the office. In response to a question by A motion was made and second- format requirements of KRS Chapter A motion was made and second- Senator Pendleton, Subcommittee ed to draft a letter from the Subcom- 13A. Without objection, and with ed to approve the following amend- staff stated that KRS Chapter 13A mittee to the governor, the Legislative agreement of the agency, the amend- ments: (1) to amend the STATUTORY did not currently prohibit establish- Research Commission, and all execu- ments were approved. AUTHORITY paragraph to correct a

THE KENTUCKY GENERAL ASSEMBLY 45 statutory citation; (2) to amend the list and make recommendations no 503 KAR 3:040. Telecommu- LRC Staff: Kim Eisner, Matt Ross NECESSITY, FUNCTION, AND CON- sooner than eighteen (18) months nications academy trainee require- and Becky Brooker. FORMITY paragraph to clearly state from the effective date of this ad- ments; misconduct; penalties; disci- A motion was made by Sena- the necessity for and function served ministrative regulation; (2) to amend pline procedures. tor Carroll to approve Minutes of the by this administrative regulation, as Section 4 to specify information in 503 KAR 3:110. Certified court June 2010 meeting of the committee. required by KRS 13A.220; and (3) to the patient rights policies; (3) to security officers academy trainee re- Senator Gibson seconded the motion, amend Sections 1 and 2 to: (a) com- amend Sections 4 and 5 to specify quirements; misconduct; penalties; which passed without objection. ply with the drafting and format re- medical record requirements; and (4) discipline procedures. quirements of KRS Chapter 13A; and to amend Section 7 to require that EDUCATION AND WORK- A motion was made by Senator (b) change the batching cycle for car- trash containers be cleaned regularly, FORCE DEVELOPMENT CABINET: Carroll to defer the following items diac catheterizations from the public as needed, rather than daily. With- Kentucky Board of Education: De- from the Personal Service Contract notice given in May and November out objection, and with agreement partment of Education: School Ad- List to the August 2010 meeting of to the public notice given in Janu- of the agency, the amendments were ministration and Finance the committee: 1000003024, Meren- ary and July. Without objection, and approved. 702 KAR 3:246. School coun- bloom Seminars Incorporated; 11- with agreement of the agency, the Department for Income Support: cil allocation formula: KETS District WRD-001, Ward Group; 11-04-073, amendments were approved. Child Support Enforcement: Family Administrative System Chart of Ac- Orderpad Software Incorporated; 11- Office of Inspector General: Di- Support counts. 013, University Accounting Service, vision of Healthcare: Health Services 921 KAR 1:410. Child support CABINET FOR HEALTH AND LLC; 1000002568, Property Ser- and Facilities collection and enforcement. Jennifer FAMILY SERVICES: Office of Health vice Group Southeast Incorporated; 902 KAR 20:400. Limited ser- Devine, internal policy analyst, and Policy: Certificate of Need 1000002594, CEI Appraisal Group vices clinics. Mary Begley, inspector Lisa Osborne, staff attorney, repre- 900 KAR 6:020. Certificate of Incorporated; K11-131, Touchpoint general, represented the division. sented the department. need application fees schedule. Associates. Representative Horlander Caroline Ridgway, policy director, A motion was made and second- The subcommittee adjourned at seconded the motion, which passed Commonwealth Care Association ed to approve the following amend- p.m. until August 10, 2010. without objection. appeared in support of this adminis- ments: (1) to amend the RELATES TO; LRC Staff: Dave Nicholas, Donna A motion was made by Senator trative regulation. Statutory Authority; and NECESSITY, Little, Sarah Amburgey, Chad Collins, Carroll to defer the following items Ms. Ridgway thanked the of- FUNCTION, AND CONFORMITY Emily Harkenrider, Karen Howard, from the Personal Service Contract fice for cooperation in amending this paragraphs to specify citations; and and Laura Napier. for $10,000 & Under List to the Au- administrative regulation and re- (2) to amend Sections 2 through 5 to gust 2010 meeting of the committee: quested reconsidering the eighteen comply with the drafting and format GOVERNMENT CONTRACT 12-018, Timothy L. Warner Incorpo- (18) month time frame for revisiting requirements of KRS Chapter 13A. REVIEW COMMITTEE rated; 11-07-075, Eyeland Studio In- which services are appropriate for a Without objection, and with agree- Committee Minutes corporated; 1000001383, Advanced limited services clinic. She preferred ment of the agency, the amendments July 13, 2010 Risk Management Techniques. Rep- a shorter time frame. were approved. Call to Order and Roll Call resentative Horlander seconded the A motion was made and sec- Department for Community The Government Contract Re- motion, which passed without ob- onded to approve the following Based Services: Division of Fam- view Committee met on Tuesday, July jection. amendments: (1) to amend Section 3 ily Support: K-TAP, Kentucky Works, 13, 2010, at 10:00 AM, in Room 171 A motion was made by Repre- to: (a) allow off-site community vac- Welfare to Work, State Supplemen- of the Capitol Annex. Senator Vernie sentative Horlander to disapprove cination and health screening drives; tation McGaha, Chair, called the meeting the following contract with the Uni- (b) allow vaccinations for children 921 KAR 2:50E. Work Now Ken- to order, and the secretary called the versity of Kentucky: K11-143, Hewitt age eleven (11) and older, as well as tucky Program. Virginia Carrington, roll. Associates Public Sector Consulting, the influenza vaccine for patients age branch manager, and Elizabeth Cay- Present were: LLC due to the vendor currently be- twenty-four (24) months and older; wood, internal policy analyst, repre- Members: Senator Vernie Mc- ing a registered foreign corporation (c) require the clinic to inform the sented the division. Gaha, Co-Chair; Representative Den- in bad standing with the Secretary patient that the patient does not The following administrative nis Horlander, Co-Chair; Senators of State. Representative Montell have to buy recommended or pre- regulations were deferred to the Au- Julian M. Carroll, Carroll Gibson, and seconded the motion, which passed scribed items from the host retail lo- gust 10, 2010, meeting of the Sub- Elizabeth Tori; Representatives Jesse without objection. cation; (d) include patient education committee: Crenshaw and Brad Montell. A motion was made by Senator services for diabetes, hyperlipidemia, PERSONNEL CABINET: Person- Guests: Hilarye Dailey, Julie Carroll to approve the following items and hypertension; (e) specify that nel Cabinet, Classified Brewer, Hiren Desai, Terry Holli- from the deferred list: 10060, Corner- a clinic may order specific lab test- 101 KAR 2:066 & E. Certifica- day, Steve Lynn, Holland Spade, Jim stone Designs Incorporated; 2011-7, ing and that only Clinical Laboratory tion and selection of eligibles for ap- Navolio, Kevin Brown, Ken Draught, TheoPRO Compliance & Consulting Improvement Amendments waived pointment. Debbie Tankersley, Nancy Graham, Incorporated; 1000002444, Actuarial testing may be done on-site; (f) al- FINANCE AND ADMINISTRA- Nancy Carpenter, Shanon Maggard, Resources Corporation; 20114, Bond low services pursuant to a patient’s TION CABINET: Office of the Secre- Jeff Mosley, Lisa Beran, Vickie Wise, Logistix; 1000002468, Aerial Recon- plan of care or order from another tary: Purchasing Jeff Burton, Diana Barber, Jodell Renn, naissance Incorporated. Representa- practitioner; (g) allow nonemergency 200 KAR 5:315. Debarment. Tim Burcham, David Holcomb, Philip tive Montell seconded the motion, episodic treatment for an acute exac- GENERAL GOVERNMENT: Board Brashear, Tom Pope, Steve Kull, Diana which passed without objection. erbation of a chronic condition; (h) of Veterinary Examiners: Board Olszowy, Denise Hagan, Mike Den- A motion was made by Repre- allow initial diagnosis of chronic ill- 201 KAR 16:030 & E. License, ney, Chris Polston, Shannon Loyd, sentative Horlander to consider as ness, along with doctor referral, and renewal notice, exemption. Steve Mason, Kathrine Napier, Gary reviewed, the Personal Service Con- thirty (30) day interim treatment; (i) JUSTICE AND PUBLIC SAFETY Meiseles, Todd Shipp, Rebecca Good- tract List, with exception of those allow a thirty (30) day prescription CABINET: Department of Criminal man, Peggy Stratton, Frank Butler, Bill items selected for further review by for maintenance medication, along Justice Training: General Training Harris, J.R. Wilhite, Frank Dickerson, members of the committee. Senator with documented efforts to contact Provision Jane Fitzpatrick, Walt Gaffield, Mary Carroll seconded the motion, which the primary prescriber; and (j) if the 503 KAR 3:010. Basic Law en- Hook, Renee Close, David Gayle, passed without objection. Represen- cabinet receives requests for modifi- forcement training course recruit Toyah Robey, Tommy Goins, Debora tative Crenshaw abstained from vot- cation of the list of services, convene conduct requirements; procedures Almgren, Allan Bryant, Amy Metzger ing on contract number PON 2 175 an advisory committee to review the and penalties. and Edward Winner. 1000003140; item number 16 on the

46 2010 Interim LEGISLATIVE RECORD Personal Service Contract List. Force Incorporated, 1000001913; lic Consulting Group Incorporated, Blue & Company LLC, A motion was made by Repre- Oldham County Veterinary Servic- 1000003314. 1000002408. sentative Horlander to consider as re- es, 1000002100; Nash Cleveland DEPARTMENT FOR ENVIRON- EASTERN KENTUCKY UNIVER- viewed, the Personal Service Contract & Godfrey, DVM, 1000002134; MENTAL PROTECTION: SITY: Amendment List, with exception of Trigg County Veterinary Clinic, Acclaim Systems Incorporated, Dr. Vincent J. Mullen, II, 12- those items selected for further re- 1000002139; Chrysalis House Incor- 1000002315; Keramida Environmen- 004; BioMedical Research Services, view by members of the committee. porated, 1000002536; Volunteers tal Incorporated, 1000002945; Coyle 12-005; Compass Knowledge Group, Senator Carroll seconded the motion, of America of Kentucky Incorpo- & Associates, 1000003015. LLC, 12-009; McCandlish Holton which passed without objection. rated, 1000002590; Allen Veteri- DEPARTMENT FOR FAMILY RE- PC, 12-010; Sturgill, Turner, Barker A motion was made by Repre- nary Services, PLLC, 1000002808; SOURCE CENTERS & VOLUNTEER & Moloney, PLLC, 12-011; Johnson sentative Horlander to consider as Greater Louisville Counseling, SERVICES: True & Guarnieri, LLP, 12-012; Ellen reviewed, the Memoranda of Agree- 1000002816; Transitions Incorpo- American Red Cross Louisville, C. Williams, LLC - Capital Network, ment List, with exception of those rated, 1000003399; Mental Health 1000001540. 12-013; Johnson True Guarnieri, LLP, items selected for further review by America of Northern Kentucky, DEPARTMENT FOR MEDICAID 12-014; Neace Lukens Incorporated, members of the committee. Senator 1000003811; Prodigal Ministries In- SERVICES: 12-019; Neace Lukens, 12-020; Carroll seconded the motion, which corporated, 1000003932. Island Peer Review Organization Artemetrx, 12-021. passed without objection. CRIMINAL JUSTICE TRAINING, Incorporated, 1000001090; Coving- ECONOMIC DEVELOPMENT - A motion was made by Repre- DEPARTMENT OF: ton and Burling, 1000001121. OFFICE OF THE SECRETARY: sentative Horlander to consider as Law Enforcement Services Incor- DEPARTMENT FOR NATURAL Blue & Company LLC, reviewed, the Memoranda of Agree- porated, 1000002723. RESOURCES: 1000003258; The Bagley Group, LLC, ment Amendment List, with ex- DENTISTRY, BOARD OF: Joe Dietz, 1000002425; Multi, 1000003815. ception of those items selected for Marquetta Poynter, DMD, 1000002784; Urgent Treatment EDUCATION PROFESSIONAL further review by members of the 1000003339; Robert S. Thompson, Centers, 1000002822; Kentucky As- STANDARDS BOARD: committee. Senator Carroll second- III, 1000003363; Brian Fingerson sociation of Consulting Foresters, Linda Nickel, 1000003094. ed the motion, which passed with- RPH Incorporated, 1000003372. 1000003456. EDUCATION, DEPARTMENT OF: out objection DEPARTMENT FOR AGING & DEPARTMENT FOR PUBLIC Roger Barnett, 1000002464; Ca- THE FOLLOWING PERSONAL INDEPENDENT LIVING: HEALTH: reer Cruising, 1000002466; Danville SERVICE CONTRACTS WERE RE- Eckman Freeman & Associates, Park Duvalle Neighborhood Pediatrics, 1000002469; William VIEWED WITHOUT OBJECTION: 1000001774; Radical Rehabilitation Health Center, 1000001599; Nor- Powers Auty, 1000002470; Educa- AGRICULTURE, DEPARTMENT Solutions, LLC, 1000001925; Experi- ton Healthcare Incorporated, tional Testing Service, 1000002471; OF: ence Works, 1000003127. 1000001613; National Jewish David Woods, 1000002534; Edgar Miss Kentucky Scholarship Orga- DEPARTMENT FOR BUSINESS Health, 1000001737; Reach of Lou- Pete Miller, 1000002535; Connie nization Incorporated, 1000003579. DEVELOPMENT: isville Incorporated, 1000002419. Wilcox, 1000002551; Bethune Insti- ATTORNEY GENERAL, OFFICE General Electric Company, DEPARTMENT OF INSURANCE: tute, 1000002593; Boys & Girls Club OF THE: 1000002289; Global Business Part- Prometric Incorporated, of Greater Cincinnati, 1000002607; Charles J. Rickert, 1000003096; ners Mexico S C, 1000002961; 1000002151; PSI Services, LLC, Center for Family & Community Ser- Tichenor & Associates, Larkin Trade International, LLC, 1000002203; Merlinos & Associates, vices, 1000002634; Public Consult- 1000003583. 1000002962; Community Ventures Incorporated, 1000002491; Pinna- ing Group, 1000002670; Robert L. AUDITOR OF PUBLIC AC- Corporation, 1000003338. cle Actuarial Resources Incorporated, Falk, 1000002677; Jennifer R. Stock- COUNTS, OFFICE OF THE: DEPARTMENT FOR COMMU- 1000002506; DCF Services Incorpo- er, 1000002679; Donna A. Meyer, Harding Shymanski & Com- NITY BASED SERVICES: rated, 1000002510; Blue & Compa- 1000002680; Hands On Therapy, pany, 1000002255; Kem Duguid Brighton Center Incorporated, ny, LLC, 1000002548; Actuarial Re- PSC, 1000002681; Kearns Physical & Associates PSC, 1000003795; 1000001181; Hazard Perry County sources Corporation, 1000002552; Therapy, LLC, 1000002683; Kentucky Rodefer Moss & Company PLLC, Community Ministries Development Highland Clark, LLC, 1000002553; Clean Fuels Coalition, 1000002684; 1000003797; Tichenor & Associ- Center, 1000001183; Audubon Area Neriette Eldridge, 1000002571; Kentucky Dataseam Initiative In- ates, 1000003798; Tichenor & Community Service, 1000001534; J.W.G. Financial Examinations, corporated, 1000002686; Human Associates, 1000003799; Ted- Child Care Council of Kentucky, LLC, 1000002573; WDC Consult- Resources Research Organization, dy Michael Prater CPA, PLLC, 1000001535; Child Care Council of ing, LLC, 1000002582; Brent D. 1000002688; Metametrics Incorpo- 1000003800; Morgan Franklin, LLC, Kentucky, 1000001536; Child Care Simpson Consulting, 1000002785; rated, 1000002689; The Riverside 1000003825; Tichenor & Associ- Council of Kentucky, 1000001537; Knowledge Transformation Sys- Publishing Company, 1000002692; ates, 1000003826; Mountjoy Chil- Community Coordinated Child Care, tems Incorporated, 1000002786; National Energy Education Develop- ton Medley, LLP, 1000003827. 1000001538; Prevent Child Abuse Black, Benton & Associates, LLC, ment Project, 1000002696; Carol BOARD OF CLAIMS & CRIME Kentucky, 1000001568; Family & 1000002787; Maynard Consulting, A. Klaber, 1000002697; Robin B. VICTIMS COMPENSATION: Children First, 1000001569; Ken- LLC, 1000002788; Harlow & Com- Johnson, 1000002699; Clinton D. Stout Farmer & King PLLC, tucky Domestic Violence Association, pany, LLC, 1000002789; A. Kent Kirk, 1000002705; Logan & Gaines, 1000003137; Bowles, Rice, McDavid, 1000001619; Family & Children First, Cavenee, 1000002812; Patricia 1000002712; Kenton County Graff & Love, 1000003138; Gold- 1000001922; Pathways Incorporat- Shofner, 1000002813; MLJ Consult- YMCA, 1000002722; Lighthouse berg Simpson, LLC, 1000003139; ed, 1000002156; KVC Behavioral ing, LLC, 1000002814; Regulatory Promise Incorporated, 1000002727; Braxton Crenshaw, 1000003140; Healthcare Kentucky, 1000002157; Services LLC, 1000002815; Allen Lotts Creek Community School, Rudloff & Rudloff, 1000003141. Specialized Alternatives for Families Bailey & Associates Incorporated, 1000002730; Pleasant Green Bap- COMMISSION FOR CHILDREN & Youth of Kentucky, 1000002528; 1000002826; Taylor-Walker & As- tist Church, 1000002750; R.C. Durr WITH SPECIAL HEALTH CARE Children’s Home of Northern Ken- sociates Incorporated, 1000002827; YMCA, 1000002754; The Law Office NEEDS: tucky, 1000002763; Father Malo- Taylor-Walker & Associates Incorpo- of Kim Hunt Price, PLLC, 1000002939; CDM Services Incorporated, ney’s Boys Haven, 1000002764; rated, 1000002846; Bartlett Actuar- Cheryl R. Neff, 1000002942; Kar- 1000003304. KVC Behavioral Healthcare Ken- ial Group, Ltd., 1000002847; Wake- en L. Perch, 1000002943; Paul L. tucky, 1000002765; Specialized ly Consulting Group, 1000002953; Whalen, 1000002944; Mike Wil- CORRECTIONS, DEPARTMENT Alternatives for Families & Youth of Ingenix Consulting, 1000002972. son, 1000002946; Mike John- OF: Kentucky, 1000002766; Home of DEPARTMENT OF WORKPLACE Louisville Metro Reentry Task the Innocents, 1000003131; Pub- STANDARDS:

THE KENTUCKY GENERAL ASSEMBLY 47 son, 1000002993; Linda Mar- ITY: 11-HMC-001; Towers Watson Penn- Alt & Witzig Engineers Incorporat- tin, 1000002996; Kentucky Blue & Company LLC, sylvania Incorporated, 11-TIL-001; ed, 2011521; Heapy Engineering, Science & Technology Corporation, 1000003923. Underwriters Safety & Claims, 11- 2011522; KZF Design, 2011542; 1000003001; New Teacher Center, JUSTICE CABINET: USC-001. Beacon Global Services, 2011543; 1000003013; New Frontier 21 Con- Mark Bernstein, DDS, KENTUCKY HIGHER EDUCA- Brownstone Design, 2012-445; sulting, 1000003025; New Frontier 1000004124. TION STUDENT LOAN CORPORA- Dressman, Benzinger & LaVelle, PSC, 21 Consulting, 1000003027; Uni- JUVENILE JUSTICE, DEPART- TION: 2012-545; Dinsmore & Shohl, 2012- versity of Kentucky Research Foun- MENT OF: 5280 Solutions, 11-001. 546; Chesley Law Practice, PLLC, dation, 1000003384. Commonwealth Research Con- KENTUCKY HOUSING CORPO- 2012-547; Ziegler & Schneider, PSC, EDUCATIONAL TELEVISION, sulting Incorporated, 1000002316; RATION: 2012-550; Sturgill, Turner, Barker & KENTUCKY: Sylvia L. Kuster, 1000002743; Jo- Mountjoy Chilton Medley, LLP, Moloney, PLLC, 2012-551; Wood, Vonlehman and Company PSC, seph M. Pittard, M.D., 1000002823; 2011-16; AFC First Financial Cor- Herron & Evans, LLP, 2012-552; 1000003317; Susan B. Hines- Dr. Glen Bichlmeir, 1000002845; poration, 2011-20; Conservation SMG d/b/a Superior Management Bricker, 1000003397; James R. PCA Corrections, LLC, 1000002848; Services Group, Incorporated, 2011- Group, 2012446; Susan Brinkman, Slone, 1000003655; James Bu- Brenda Wilburn, 1000002867; Dr. 21. 2012553. gay, 1000003656; Roger M. Bon- Dale Jones, 1000002871; Brenda KENTUCKY LOTTERY CORPO- PERSONNEL BOARD: durant, 1000003658; Britt Davis, Wilburn, 1000002874; Gateway RATION: Edward P. Moores, 1000003773; 1000003660; William K. Durham, Juvenile Diversion Project Incor- Goldberg & Simpson, PSC, 11- Colleen Beach, 1000003848; Steven 1000003662; Michelle Larock, porated, 1000002969; Method- 05-044; Vision Solutions, 11-92- G. Bolton, 1000003851; Stephen T. 1000003664; Justin C. Allen, ist Home of Kentucky Incorporated, 001-2; GTECH Corporation, 11-95- McMurtry, 1000003857; Geoffrey 1000004023. 1000002970; Correctional Eye Care, 089; Chase Bank, 1106026. B. Greenawalt, 1000003860; Ro- ENGINEERS & LAND SURVEY- 1000003098; Midwest Radiology, land P. Merkel, P.S.C., 1000003862; ORS, KENTUCKY BOARD OF REGIS- 1000003104; Mid America Health KENTUCKY STATE UNIVERSITY: Kim H. Price, 1000003868; John C. TRATION FOR PROFESSIONAL: Incorporated, 1000003112; Medical Crowe Horwath, LLP, 11-01; Ryan, 1000003873; Hanson Wil- Edmund S. Miller Jr., 1000002966; Staffing Network, 1000003146. Johnson, True & Guarnieri, LLP, 11- liams, 1000003874; Ann M. She- Robert S. Giles, 1000002967; Robert KENTUCKY COMMUNITY & 02; Anthony Barnes, 11-04; Witt/ adel, 1000003875. S. Thompson III, 1000002968. TECHNICAL COLLEGE SYSTEM: Kieffer, 11-05. PERSONNEL-OFFICE OF THE FINANCE AND ADMINISTRA- Youth Build Louisville, 436; KY HORSE RACING AUTHOR- SECRETARY: TION CABINET: Commonwealth Auction Service, ITY: PriceWaterhouseCoopers, LLP, Powell Walton Milward, 441; G. Herbert Pritchett & As- McBrayer McGinnis Leslie & 1000001916; Blue & Company LLC, 1000002852; Blue & Company, LLC, sociates Incorporated, 442; Sirk & Kirkland, 1000002297. 1000002245; Blue & Company LLC, 1000002965; 621 Law Partners, Company, 443; E. Clark Toleman, MEDICAL LICENSURE, BOARD 1000002304; Chapman Kelly In- 1000003705; Conliffe Sandmann & 445; Integra Realty Resources, 446; OF: corporated, 1000003125; Cannon Sullivan, 1000003737; Morgan & Kentucky Field Service Realty Incor- Multi, 1000002739; Donna Cochran Management Services In- Pottinger, 1000003754; Goldberg & porated, 447; CedarCrestone In- H. Terry, 1000002869; Thomas J. corporated, 1000003240; Winner Simpson, PSC, 1000003758. corporated, 448; Dr. Martin Milk- Hellmann, Attorney-at-law, PLLC, Resources, LLC, 1000003319; Win- FINANCE AND ADMINISTRA- man, 451; Anthony Weaver, 453; 1000002940; Kentucky Physicians ner Resources, LLC, 1000003320; TION CABINET - DIVISION OF EN- Association of Community College Health Foundation Incorporated, First Onsite, LLC, 1000003548; GINEERING: Trustees, 454; Dr. Jeff Hockaday, 1000003008. Reed Weitkamp Schell and Vice, Barnette Bagley Architects, 455; Truck America Training, LLC, 1000003709; Salvaggio Teal & As- 1000001690; GRW Engineers Incor- 456; Lake Cumberland CDL Training MILITARY AFFAIRS, DEPART- sociates, 1000003746. porated, 1000002308; Fitzsimons School Incorporated, 457; Hagyard- MENT OF: PHARMACY, BOARD OF: Office of Architecture Incorporated, Davidson-McGee Associates PLLC, Public Private Solutions Group, Thomas J. Hellmann, Attorney- 1000002919; Myers Jolly Architects, 458; Truck America Training, 459; 1000003588; The Rhoads Group, at-law, PLLC, 1000002328; Mc- 1000003119. American Heavy Equipment Training, 1000003663; Edgar Satchwell, Brayer, McGinnis Leslie & Kirkland, FINANCIAL INCENTIVES, DE- 460; Greenebaum, Doll & McDon- 1000003810; Thomas P. Pendle- 1000003578. PARTMENT OF: ald, PLLC, 462; Walther, Roark & ton Jr., 1000003819; Lanny Walls, PHYSICAL THERAPY, BOARD Stoll Keenon Ogden PLLC, Gay, PLC, 463; McBrayer, McGinnis, 1000003835; Edward Hood Drury, OF: 1000003243; Hurt Crosbie & May, Leslie & Kirkland, PLLC, 464; Im- 1000003838. William A. Curley, 1000003011; 1000003251; Kinkead & Stilz, PLLC, mediate Solutions LLC, 465; Dean MOREHEAD STATE UNIVER- Robert S. Thompson, III, 1000003054; 1000003252; Mountjoy Chilton Dorton Ford, PSC, 466; Meridian- SITY: Brian Fingerson, RPH Incorporated, Medley, LLP, 1000003253. Chiles, 467; The Clements Group, Sturgill, Turner, Barker & Mo- 1000003087. FISH & WILDLIFE, DEPARTMENT 468; Creative Alliance, 469; Alamo loney, PLLC, 11-004; Frost Brown POST SECONDARY EDUCA- OF: Community College District, 472; Todd, LLC, 11-005; Wellness Con- TION, COUNCIL ON: Copperhead Environmental Con- Cuyahoga Community College, 473; sultants, LLC, 11-007; Provations Deborah L. Clayton, 1000001530; sulting Incorporated, 1000002668; Columbia University, The Commu- Group, 11-008; CG&B Marketing, Dianne Bazell, 1000002429; Linda National Wild Turkey Federation, nity College Research Center, 474; LLC, 11-009; MML&K Government S. Crowe, 1000002430; Donna 1000002794. Danville Community College, 475; Solutions, 11-010; Martin Larson, J. Lewis, 1000002431; SC Edu- Lansing Community College, 476; 11-020. cational Services, 1000002432; GOVERNOR, OFFICE OF THE: Pellissippi State Community College, MURRAY STATE UNIVERSITY: Douglas J. Walters, 1000002433; Wyatt Tarrant and Combs, 477; Spartanburg Community Col- Mercer (US) Incorporated, 002- Cumberlands Policy Research Insti- 1000003765. lege, 478; Henry Ford Community 11; Multi, 005-11-3; Multi, 006- tute, LLC, 1000002435; Veda Mc- HIGHER EDUCATION ASSIS- College, 479. 11; Gary Draper & Associates of At- Clain Consulting, LLC, 1000002436; TANCE AUTHORITY, KENTUCKY: KENTUCKY EMPLOYERS MU- lanta, Incorporated, 007-11; Great Kentucky Science and Technology Center for Rural Development, TUAL INSURANCE: Energy Partners, 008-11. Corporation, 1000002570; Ken- 1000003121; Evaluation Associ- Multi, 11-CLD-001; Con- NORTHERN KENTUCKY UNI- tucky Science & Technology Cor- ates, LLC, A Milliman Company, ning Incorporated, 11-CON-001; VERSITY: poration, 1000003187; Kentucky 1000004127. Ridenour & Associates, LLC, 11- Crowe Horwath, LLP, 2011- Science & Technology Corporation, INFRASTRUCTURE AUTHOR- GAL-001; Hay Group Incorporated, 462-3; Goody Clancy, 2011511; 1000003190.

48 2010 Interim LEGISLATIVE RECORD PSYCHOLOGISTS, BOARD OF 1000002619; John Daniel Lyons, K11-109; St. Elizabeth Medical Cen- WORKFORCE INVESTMENT, EXAMINERS OF: 1000002620; Paul E. McDonogh, ter, K11-117; R. Bruce Lankford, OFFICE OF: Charles D. Auvenshine, PhD, 1000002622; McPherson Appraisal K11-118; Underwriters Safety & Donald Chaffin, 1000002389; 1000003207. Service, 1000002623; M. K. Merrill, Claims, K11-119; PRISM Consulting Logan & Gaines, 1000002527; Lo- REAL ESTATE APPRAISERS 1000002624; Lewman Miller Apprais- Services, K11-120; Hosking Klute gan & Gaines, 1000002583; John BOARD: al Company, 1000002627; Kentucky Healthcare, K11-121; Wilbur Smith G. Turner, 1000002584; Susan Dennis Badger & Associates Field Service Realty, 1000002628; Associates, K11-122; Reagan Mar- Miller, 1000002585; Kentucky Riv- Incorporated, 1000002492; Wil- Murphy Napier & Company Real keting, K11-123; Diccicco Battista er Community Care, 1000003148; son Law Firm, PLLC, 1000002498; Estate Appraisers Incorporated, Communications, K11-124; Under- Easter Seals West Kentucky In- Thomas J. Hellmann, Attorney-at- 1000002629; Nichols Advisory Ser- writers Safety & Claims, K11-125; corporated, 1000003149; OWL law, PLLC, 1000002499. vices Incorporated, 1000002630; Grant Cooper & Associates, K11- d/b/a Opportunity for Work & REAL ESTATE COMMISSION: Dixon Nunnery, 1000002632; 126; Witt / Kieffer, K11-127; Fellon- Learning, 1000003150; Lifeskills, PSI Services, LLC, 1000002587; Prater Willie, 1000002633; Brook McCord & Associates Incorporated, 1000003151; Communicare In- KCH & Associates, LLC, Ping, 1000002635; Area Appraisal K11-128; Facility Commissioning corporated Adult, 1000003152; 1000003075. Service, 1000002636; G. Herbert Group, K11-129; Sue Strong, PhD, Community Employment Services, STATE BOARD FOR PROPRI- Pritchett, 1000002637; Stephen K11-130; Sturgill, Turner, Barker & 1000003154; Employment Solu- ETARY EDUCATION: G. Raleigh, 1000002640; Dar- Moloney, PLLC, K11-132; John R. tions, 1000003155; Options Un- 21st Management Corporation, val E. Rash, 1000002641; Ap- Meek, MD, K11-133; Lexington In- limited Incorporated, 1000003156; 1000003210. pco Appraisal Service Incorporated, fectious Disease Consultants, PSC, Realizations LLC, 1000003158. STATE POLICE, DEPARTMENT 1000002642; W. Clement Russell, K11-134; Daniel C. Rodrigue, MD, OF: 1000002643; Farm Appraisals, LLC, K11-135; Commonwealth Anesthe- THE FOLLOWING PERSONAL ASCLD Lab, 1000002515; Ste- 1000002644; David P. Schoepf As- sia, PSC, K11-136; Blue & Company, SERVICE AMENDMENTS WERE RE- phen C. Humphreys, 1000003063; sociate, 1000002647; Darin Size- LLC, K11-137; PricewaterhouseC- VIEWED WITHOUT OBJECTION: Thomas A. Miller Jr., 1000003064; more, 1000002650; Sloan Apprais- oopers, LLP, K11-138; Software In- ADMINISTRATIVE OFFICE OF Roy Pace Jr., 1000003066; Curtis al & Realty Services, 1000002651; formation Systems, K11-139; Horn THE COURTS: Pingleton, 1000003067; Kenneth Philip J. Tamplin, Jr., 1000002657; & Associates in Rehabilitation, PLLC, Logan & Gaines, 1000000799; W. Mayfield, 1000003068; Tony R. Dana Thornberry Appraisals, LLC, K11-140; Tadarra L. Richardson, MD, Sword & Broyles Law Offices, Wells, 1000003069; Kenneth W. 1000002658; E. Clark Toleman, PSC, K11-141; Labyrinth Solutions, 1000001187; Littler & Mendelson, Perkins, 1000003070; Ricky V. Un- MAI, 1000002660; Waldrop & As- Incorporated d/b/a LSI Consulting, P.C., 1000001642; Littler & Men- derwood, 1000003071; Paul D. Old- sociates, 1000002661; Williams K11-142. delson, P.C., 1000001717; Littler & ham, 1000003072; Rodger P. Waters, Appraisal Company, 1000002662; UNIVERSITY OF LOUISVILLE: Mendelson, P.C., 1000001740; Gess 1000003073; Aerial Reconnaissance W & W Appraisals, 1000002663; Crowe Horwath, LLP, 11-003; Mattingly & Atchison, 1000001744; Incorporated, 1000003593. Loren C. Huff, 1000002667; John Semonin Realtors, 11-005; Multi, Gess Mattingly & Atchison, TOURISM DEVELOPMENT CAB- G. Donan, Jr., 1000002782; Matriks 11-006 A-I; Aon Consulting, 11007. 1000002339. INET: Management, PSC, 1000002791; VETERANS AFFAIRS, DEPART- Certec Incorporated, Vaughn & Melton, 1000002792; MENT OF: AUDITOR OF PUBLIC AC- 1000003585. Bruce Hesley, 1000002793; Mary Multi, 1000001240; Multi, COUNTS, OFFICE OF THE: TRANSPORTATION CABINET: Jane Hensley, 1000002831; J. M. 1000002522; Firstlab, LLC, Blue & Company LLC, Blue & Company LLC, Crawford & Associates Incorporated, 1000002625; Urgent Treatment 1000002256. 1000001429; Kentucky Society of 1000002872; DLZ Kentucky Incor- Clinic, 1000002755; Quality Mo- CABINET FOR HEALTH AND Professional Engineers Incorporated, porated, 1000003099; Florence and bile X-ray Services Incorporat- FAMILY SERVICES: 1000001758; Forward Edge Asso- Hutcheson, 1000003100; Emerson ed, 1000002976; Portarad, LLC, Goldberg & Simpson P.S.C., ciates, 1000002062; Borowitz & L. Richmond, 1000003101; Aaron 1000003234. 0800009251. Goldsmith, PLC, 1000002196; Core Engineering PLLC, 1000003102; VETERINARY EXAMINERS, CRIMINAL JUSTICE TRAINING, Solutions, LLC, 1000002424; Flor- John E. Witt, 1000003113; HMB BOARD OF: DEPARTMENT OF: ence & Hutcheson, 1000002447; Professional Engineers Incorpo- James F. Boyd, 1000003220; C. Law Enforcement Services In- Kentucky Waterways Alliance, rated, 1000003205; Florence & Loran Wagoner, 1000003226. corporated, 0800010110; Concentra 1000002449; Urgent Treatment Hutcheson, 1000003212; HDR Engi- WESTERN KENTUCKY UNIVER- Laboratory, LLC, 0900011408. Center, 1000002489; M. A. All- neering Incorporated, 1000003299; SITY: DEPARTMENT FOR BUSINESS geier, MAI, 1000002526; James American Engineers Incorporated, Parker Executive Search, DEVELOPMENT: Bauer, 1000002559; Rick O. Baum- 1000003300; Palmer Engineering 101104; Current Marketing Incor- Florida Tile Incorporated, gardner, 1000002560; Edward L. Company, 1000003302; Entran, porated, 101105; Sodexo Manage- 1000002030; Montaplast of North Beck, 1000002563; Berkley Ap- PLC, 1000003305; HMB Profes- ment Incorporated, 101106; Multi, America Incorporated, 1000002045; praisal Company, 1000002564; sional Engineers Incorporated, 101206; Multi, 101207; Multi, Sekisui Specialty Chemicals America, Charles Joseph Bird, 1000002565; 1000003309; WMB Incorporated, 101208; Multi, 101209; Multi, LLC, 1000002046; General Electric Harold Brantley, 1000002566; Paul 1000003312; Linebach Funkhouser 101210; Multi, 101211; Multi, Company, 1000002047; Internation- D. Brown, 1000002572; Mary Mc- Incorporated, 1000003313; Corra- 101212; Multi, 101213; Multi, al Paper Company, 1000002290. Clinton Clay, 1000002574; Wil- dino Group, 1000003373; Lee Engi- 101214; Taylor Whitney Architects, DEPARTMENT FOR COMMU- liam R. Cox, 1000002578; Curd neering LLC, 1000003383; Entran, 101215; McDonald Transit Associ- NITY BASED SERVICES: Professional Appraisal Service, PLC, 1000003587; Municipal Engi- ates Incorporated, 1101107. Owl d/b/a Opportunity for Work 1000002579; Intequal-Duncan neering Company, 1000003652; H. WORKER’S COMPENSATION & Learning, 0800007565; Employ- Appraisal, 1000002596; James C. Nutting Company, 1000003823; FUNDING COMMISSION: ment Solutions, 0800007589. Doran, 1000002598; Robert Ed- Linebach Funkhouser Incorporated, Blue & Company, LLC, DEPARTMENT FOR ENVIRON- wards, 1000002599; Gary En- 1000004128. 1000002851; Breidenbach Capital MENTAL PROTECTION: dicott, 1000002602; Thomas Ray UNIVERSITY OF KENTUCKY: Consulting, LLC, 1000002865. Mactec Engineering and Con- Garner, 1000002606; J. Michael Multi, A111000; Multi, WORKERS CLAIMS, DEPART- sulting, 0600001999; Tetra Tech Jones, 1000002610; Lisa A. Ke- A111010; Multi, A111020; Multi, MENT OF: Incorporated, 0600002004; Stan- aton, 1000002612; Jere Kennedy, A111030; Multi, A111040; Multi, Underwriters Safety and Claims tec Consulting Services Incorpo- 1000002615; Robert R. Knight, A111050; R.V. Kuhns & Associates, Incorporated, 1000002956. rated, 0600002006; Camp Dresser

THE KENTUCKY GENERAL ASSEMBLY 49 & McKee, 0600002008; Tetra Tech 0700005634; HMB Professional En- Services Incorporated, 1000003931; Hardin County Jail, 1000003582; Incorporated, 0600002009; Stantec gineers Incorporated, 0700006175; Four Rivers Behavioral Health Corpo- Kentuckianaworks, 1000003774; Consulting Services Incorporated, Florence & Hutcheson, 0800007989; rate Office, 1000003980; Lifeskills KCTCS, 1000003861; Louisville 1000001351; Corradino Group, C- TBE Group, 0800010442; BTM As- Corporation Offices, 1000003982; Metro Criminal Justice Commission, 04482541-4; Shield Environmental sociates Incorporated, 0800010455; Mountain Comp Care Center, 1000003906. Associates Midwest Incorporated, Entran, PLC, 0800010457; Vaughn 1000004081; Cumberland River CRIMINAL JUSTICE TRAINING, C-05506533. & Melton Consulting Engineers Mental Health Mental Retardation DEPARTMENT OF: DEPARTMENT FOR NATURAL (Kentucky), Inc., 0800010463; Board Incorporated, 1000004083; Lexington Division of Police, RESOURCES: Vaughn & Melton Consulting Engi- Kentucky River Community Care In- 1000002556. ATC Associates Incorporated, neers (Kentucky), Inc., 0800010704; corporated, 1000004085; River Val- 0900013190. Strand Associates Incorporated, ley Behavioral Health, 1000004086. DEPARTMENT FOR AGING & EDUCATION, DEPARTMENT OF: 0900011365; Baumgardner & As- AGRICULTURE, DEPARTMENT INDEPENDENT LIVING: Carol A. Klaber, 0800008199. sociates, PSC, 0900011369; Thur- OF: Kentuckiana Regional Planning, FINANCE AND ADMINISTRA- ston Freeman, 0900011397; TBE Northern Kentucky Area Devel- 1000001994; Purchase Area Devel- TION CABINET: Group, 0900011503; William L. opment District, 1000003267; Dare opment District, 1000001996; Pen- Christopher C. Trower, Berkley, 0900011553; Kentucky to Care Food Bank, 1000003278; nyrile Area Development District, 0800009141; Conliffe Sandmann & Natural Lands Trust Incorporated, God’s Pantry Food Bank Incorpo- 1000001997; Green River Area Sullivan, 0900013206. 0900011593; BTM Associates In- rated, 1000003281; Northern Development, 1000001998; Bar- FINANCE AND ADMINISTRA- corporated, 0900012415; Stantec Kentucky Area Development Dis- ren River Area Development District, TION CABINET - DIVISION OF EN- Consulting Services Incorporated, trict, 1000003285; Dare to Care 1000001999; Lincoln Trail Area De- GINEERING: 1000000389; Deborah C. Prewitt, Food Bank, 1000003291; God’s velopment District, 1000002000; Terry B. Simmons Architects 1000000747; Vaughn & Melton Pantry Food Bank Incorporated, Northern Kentucky Area Develop- Incorporated, 0600002526; Stan- Consulting Engineers (Kentucky), 1000003292; Feeding America, ment District, 1000002001; Buf- tec Consulting Services Incorporat- Incorporated, 1000000873; Ken- Kentucky’s Heartland, 1000003347; falo Trace Area Development Dis- ed, 0600002723; Sherman Carter tucky Association of Chiefs of Police, Feeding America, Kentucky’s Heart- trict, 1000002002; Gateway Area Barnhart, 0700003932; Hastings & 1000000899; Kentucky Hospital land, 1000003349; Purchase Area Development District, 1000002003; Chivetta Architects, 0700004255; Associates, 1000000901; Kentucky Development District, 1000003553; Fivco Area Development District, 5253 Design Group, 0700005726; Association of Chiefs of Police, Purchase Area Development District, 1000002004; Big Sandy Area De- EOP Architects PSC, C-05254741- 1000000934; Kentucky Association 1000003554; UK Research Founda- velopment District, 1000002005; 1; GBBN Architects, Incorporated, of Chiefs of Police, 1000000942; tion, 1000003657. Kentucky River Area Development C-06042845. Kentucky Crime Prevention Coali- CORRECTIONS, DEPARTMENT District, 1000002007; Cumberland KENTUCKY EMPLOYERS MU- tion, 1000000944; Kosair Children’s OF: Valley Area Development District TUAL INSURANCE: Hospital, 1000000946; Presnell As- First Judicial District Corrections Ag, 1000002008; Lake Cumberland Conning, Incorporated, 10- sociates Incorporated d/b/a QK4, C- Board Incorporated, 1000001935; Area Develop District, 1000002009; CON-002. 00240486-2; Florence & Hutcheson, Communicare Incorporated, Bluegrass Area Development District LEGISLATIVE RESEARCH COM- C-01063751-3; Vaughn & Melton, 1000001939; Kenton County Com- Title III, 1000002011; Four Rivers MISSION: C-01154275-2; Gresham Smith & munity Corrections Advisory Board Behavioral Health, 1000002081; Dr. Robert Linn, 0910-04; Jef- Partners, C-01209233-3; Presnell Incorporated, 1000001941; 17th Pennyroyal Mental Health, frey Nellhaus, 0910-05; Ron Ham- Associates Incorporated d/b/a QK4, Judicial Circuit Community Cor- 1000002082; Green River Regional bleton, 0910-06; Pat Roschewski, C-02061099-3; Darval E. Rash, C- rection Program Incorporated, Mental Health Mental Retardation 0910-07; Daniel Koretz, 0910-08; 04084466-1; William R. Cox, C- 1000001943; NKU Research Foun- Board d/b/a Rivervalley Behavior, Edvantia Incorporated, 0910-09. 04572811-1; Matriks Management dation, 1000001944; Community 1000002083; Lifeskills Incorpo- NORTHERN KENTUCKY UNI- PSC, C-05060925-2; W & W Ap- Corrections - 24th Judicial Circuit, rated, 1000002084; Communicare VERSITY: praisals, C-05414285-1; William R. 1000001948; Knott Drug Abuse Incorporated, 1000002085; Seven KZF Design, 2011542. Cox, C-05498161-1; Thurston Free- Council Incorporated, 1000002819; Counties Services, 1000002086; PERSONNEL ADMINISTRA- man, C-05501579-1; American En- Division for Substance Abuse Northern Kentucky Regional Mental TION, DEPARTMENT FOR: gineers Incorporated, C-99004814- DMHMR, 1000002835; University Health Mental Retardation Board, Salvaggio Teal & Associates, M- 4; Presnell Associates Incorporated of Kentucky Research Foundation, 1000002087; Comprehend Incorpo- 06189445. d/b/a QK4, C-99059032-5; QK4, 1000003057; Boyle County Deten- rated, 1000002088; Pathways In- PHARMACY, BOARD OF: M-06236006. tion Center, 1000003062; Breck- corporated, 1000002089; Mountain McBrayer, McGinnis Leslie & UNIVERSITY OF KENTUCKY: inridge County Jail, 1000003144; Comp Care Center, 1000002090; Kirkland, 1000003578. Stengel-Hill Architecture, Christian County Jail, 1000003184; Cumberland River Mental Health POST SECONDARY EDUCA- A101100. Clark County Jail, 1000003188; Mental Retardation Board Incorpo- TION, COUNCIL ON: UNIVERSITY OF LOUISVILLE: Daviess County Detention Cen- rated, 1000002092; Lake Cumber- Sturgill Turner Barker & Moloney, BKD, LLP, 10-039. ter, 1000003197; Fulton County land Mental Health Mental Retarda- 0700003228. Jail, 1000003206; Grant County tion Board, 1000002093; Bluegrass TRANSPORTATION CABINET: THE FOLLOWING MEMORAN- Jail, 1000003208; Grayson County Regional Mental Health Mental Re- Strand Associates Incorporated, DA OF AGREEMENTS WERE RE- Jailer, 1000003209; Hardin County tardation, 1000002094; Northern 0600001957; QK4, 0600002166; VIEWED WITHOUT OBJECTION: Jail, 1000003229; Hopkins Coun- Kentucky Cooperative Educational TBE Group, 0600002768; TBE ADMINISTRATIVE OFFICE OF ty Detention Center, 1000003230; Services, 1000002249; Licking Val- Group, 0600002884; J. M. Craw- THE COURTS: Marion County Jail, 1000003256; ley CAA, 1000002330; Audubon ford & Associates Incorporated, Adanta Group, 1000003199; Mason County Detention Center, Area Community Services Incorpo- 0700003229; QK4, 0700004069; Bluegrass Prevention Center Mental 1000003262; Pike County Detention rated, 1000002333. HMB Professional Engineers Incorpo- Retardation Board, 1000003202; Center, 1000003265; Pike County DEPARTMENT FOR COMMU- rated, 0700004075; Michael Baker Communicare Incorporated Adult, Detention Center, 1000003270; NITY BASED SERVICES: Jr. Incorporated, 0700004078; Hall 1000003244; Northern Ken- Shelby County Detention Cen- Community Action Ken- Harmon Engineers Incorporated, tucky Area Development District, ter, 1000003290; Three Forks Re- tucky Incorporated, 1000001353; 0700004958; HDR Engineering Incor- 1000003247; Pennyroyal Mental gional Jail, 1000003298; Eastern Bell Whitley Community Action, porated, 0700005124; Entran, PLC, Health, 1000003853; Seven Counties Kentucky University, 1000003503; 1000001360; Audubon Area Com-

50 2010 Interim LEGISLATIVE RECORD munity Services, 1000001483; 1000003527; University of Kentucky SUPPORT: tion, 1000001798; Shelby County Northern Kentucky Area Develop- Research Foundation, 1000003546; Legal Aid Society, 1000001572; Board of Education, 1000001810; ment District, 1000001484; Ken- KCTCS, 1000003550; Eastern Ken- Legal Aid Society, 1000002964; Mason County Board of Education, tuckianaworks, 1000001486; Big tucky University, 1000003574; Uni- Eastern Kentucky University, 1000001826; Shelby County Board Sandy Area Development District, versity of Kentucky Research Foun- 1000003963. of Education, 1000001846; Ken- 1000001487; Housing Author- dation, 1000003597; University DEPARTMENT FOR MEDICAID tucky Valley Education, 1000002254; ity of Bowling Green, 1000001488; of Kentucky Research Foundation, SERVICES: Treasurer Anderson County Board of Lexington Fayette Urban County 1000003601; Eastern Kentucky Kentucky Board of Nursing, Education, 1000002310; Ashland Government, 1000001491; Cen- University, 1000003626; Morehead 1000001101; Kentucky Transporta- Independent Board of Education, tral Kentucky CAC Incorporated, State University, 1000003627; Mur- tion Cabinet, 1000001671; Eastern 1000002311; Berea Independent 1000001493; Seven Counties Servic- ray State University, 1000003628; Kentucky University, 1000004032. Board of Education, 1000002312; es Incorporated, 1000001597; Office Northern Kentucky University Re- DEPARTMENT FOR MENTAL Calloway County Board of Educa- of Victims Advocacy, 1000001601; search, 1000003629; University HEALTH, DEVELOPMENTAL DIS- tion, 1000002313; Simpson Coun- Community Action of Southern Ken- of Kentucky Research Foundation, ABILITIES & ADDICTION SERVICES: ty Board of Education, 1000002314; tucky Incorporated, 1000001865; 1000003630; University of Kentucky Eastern Kentucky University, Central Kentucky Educational Coop- Administrative Office of the Courts, Research Foundation, 1000003631; 1000003607. erative, 1000002319; Green River 1000001934; Community Action University of Louisville Research DEPARTMENT FOR NATURAL Regional Education, 1000002320; of Southern Kentucky Incorporated, Foundation, 1000003632; Univer- RESOURCES: Kentucky Educational Develop- 1000001936; Bluegrass Regional sity of Louisville Research Founda- Department of Military Af- mental Corporation, 1000002321; Mental Health Mental Retarda- tion, 1000003634; Murray State fairs Air Transportation Division, Northern Kentucky Cooperative, tion, 1000001938; Seven Coun- University, 1000003635; Univer- 1000003703; Kentucky Department 1000002322; SESC Educational ties Services, 1000001942; Seven sity of Kentucky Research Foun- of Corrections, 1000003930. Cooperative, 1000002323; Ohio Counties Services, 1000001964; dation, 1000003636; University DEPARTMENT FOR PUBLIC Valley Education Cooperative, Big Sandy Area Development Dis- of Louisville Research Foundation, HEALTH: 1000002324; West Kentucky Edu- trict, 1000001965; Audubon Area 1000003637; Barren River Area Child Department of Military Affairs cation Cooperative Special Educa- Community Services Incorporat- Advocacy, 1000003884; Big Sandy Kentucky Community Crisis Board, tion, 1000002325; Ballard County ed, 1000002340; Big Sandy Area Children’s Advocacy, 1000003886; 1000001632; Four Rivers Behavior- Board of Education, 1000002591; Cap Incorporated, 1000002341; Buffalo Trace Children’s Advocacy al Health, 1000001716; Lifeskills, Barren County Board of Education, Blue Grass Community Action, Center, 1000003887; Children’s 1000001721; Pathways Incorporat- 1000002592; Boone County Board 1000002342; Community Action Advocacy Center, 1000003888; ed, 1000001760; Seven Counties of Education, 1000002595; Bour- Lexington Fayette, 1000002343; Cumberland Valley Children’s Advo- Services, 1000001899; University bon County Board of Education, Central Kentucky CAC Incorpo- cacy, 1000003889; Children First, of Louisville Research Foundation, 1000002600; Boyd County Board rated, 1000002344; Daniel Boone 1000003890; Gateway Children’s 1000003902; University of Kentucky of Education, 1000002601; Camp- Community Action Agency Incor- Advocacy, 1000003891; Green Riv- Research Foundation, 1000004034. bellsville Independent Board of Edu- porated, 1000002345; Gateway er District Children’s Advocacy Cen- cation, 1000002611; Carlisle Coun- Community Services Organization, ter, 1000003892; Hopes Place In- DEPARTMENT OF ENERGY DE- ty Board of Education, 1000002613; Incorporated, 1000002346; Harlan corporated, 1000003893; Kentucky VELOPMENT AND INDEPENDENCE: Carroll County Board of Education, County Community Action Agency, River Children’s Advocacy Center, Blue Grass Energy, 1000002616; Casey County Board 1000002347; Kentucky Communi- 1000003894; Lake Cumberland CAC, 1000001889; Shelby Energy Coop- of Education, 1000002618; Chris- ties Economic Opportunity Council 1000003895; Advocacy and Sup- erative, 1000001893; Warren Ru- tian County Board of Education, Incorporated, 1000002348; Foothills port Center, 1000003896; Northern ral Electric Cooperative Corporation, 1000002638; Corbin Independent Community Action, 1000002349; Kentucky CAC, 1000003897; Pur- 1000001894; Kentucky Housing Board of Education, 1000002646; Lake Cumberland CSO Incorporated, chase Area Sexual Assault Center, Corporation, 1000002828; Hick- Covington Independent Board of 1000002350; LKLP Community Ac- 1000003898; Pennyrile Child Ad- man Fulton Counties Rural Elec- Education, 1000002649; Cumber- tion Council, 1000002351; Licking vocacy Center, 1000003899; Ken- tric, 1000002974; Kenton County land County Board of Education, Valley CAA, 1000002352; Louisville/ tucky Association of Sexual Assault School District Finance Corporation, 1000002653; Eminence Independent Jefferson County Metro Government, Programs, 1000003900. 1000002978; Warren County Board Board of Education, 1000002655; 1000002353; Middle Kentucky DEPARTMENT FOR ENVIRON- of Education, 1000002979; Univer- Fayette County Board of Education, Community Action Partnership, Inc., MENTAL PROTECTION: sity of Kentucky Research Founda- 1000002656; Fulton County Board 1000002354; Multi Purpose Com- US Department of Interior tion, 1000003776. of Education, 1000002666; Gar- munity Action Agency Incorporated, Geological Survey, 1000003387; DEPARTMENT OF INSURANCE: rard County Board of Education, 1000002355; NKCAC Incorporat- University of Kentucky Health, KCTCS Finance Department, 1000002669; Glasgow Independent ed, 1000002357; Pennyrile Allied 1000003564. 1000003340. Board of Education, 1000002671; Community Services, 1000002358; DEPARTMENT FOR FAMILY RE- DEPARTMENT OF WORKPLACE Grayson County Board of Educa- Community Action of Southern Ken- SOURCE CENTERS & VOLUNTEER STANDARDS: tion, 1000002672; Greenup County tucky Incorporated, 1000002359; SERVICES: Department for Public Health, Board of Education, 1000002673; Tri-County Community Action Green River Area Development 1000003254. Hancock County Board of Educa- Agency, 1000002360; West Ken- District, 1000001531; Ohio Valley EASTERN KENTUCKY UNIVER- tion, 1000002674; Hardin County tucky Allied Services, 1000002361; Education Coop, 1000001561; Ohio SITY: Board of Education, 1000002675; Pennyrile Allied Community Services Valley Education Coop, 1000001575; Diabetes Center of Excellence/ Harlan County Board of Education, Incorporated, 1000002773; North- Multi, 1000001672; Multi, Madison County Health Department, 1000002685; Hart County Board east Kentucky Area Development, 1000001674; Multi, 1000001677; 12-001. of Education, 1000002690; Hen- 1000003092; University of Ken- Multi, 1000001678; Multi, ECONOMIC DEVELOPMENT - derson County Board of Education, tucky Human Development Institute, 1000001679; Multi, 1000001680; OFFICE OF THE SECRETARY: 1000002695; Hickman County 1000003388; University of Kentucky Multi, 1000001682; Multi, Council on Postsecondary Edu- Board of Education, 1000002698; Research Foundation, 1000003401; 1000001683; Northern Kentucky cation, 1000002390; University of Jackson Independent Board of Educa- University of Kentucky Research Cooperative, 1000002530; Eastern Louisville, 1000003377. tion, 1000002702; Jefferson Coun- Foundation, 1000003486; Universi- Kentucky University, 1000003918. EDUCATION, DEPARTMENT OF: ty Board of Education, 1000002717; ty of Kentucky Research Foundation, DEPARTMENT FOR INCOME Shelby County Board of Educa- Jenkins Independent Board of Edu-

THE KENTUCKY GENERAL ASSEMBLY 51 cation, 1000002719; Lee County Morehead State University Con- Interior, U.S. Geological Survey, Northern Kentucky Area Develop- Board of Education, 1000002724; trol Room 207, 1000003603. 1000002914; University of Kentucky ment District, 1000003945; City Letcher County Board of Educa- ELECTIONS, BOARD OF: Research Foundation, 1000003375. of Vanceburg, 1000003971; Bar- tion, 1000002725; Lewis County Kentucky Disabilities Coalition, KY PUBLIC SERVICE COMMIS- ren River Area Development District, Board of Education, 1000002726; 1000003200; Multi, 1000003903. SION: 1000003975; Green River Area De- Lincoln County Board of Education, FISH & WILDLIFE, DEPARTMENT UK Research Foundation, velopment District, 1000003977; 1000002728; Livingston County OF: 1000002932; University of Louisville City of Monticello, 1000004078; Board of Education, 1000002729; Nature Conservancy, Research Foundation, 1000002934. Buffalo Trace Area Development Dis- Lyon County Board of Education, 1000002589. MILITARY AFFAIRS, DEPART- trict, 1000004119. 1000002731; Marion County Board GOVERNORS OFFICE FOR MENT OF: OSH REVIEW COMMISSION: of Education, 1000002732; Met- TECHNOLOGY: Pike County, 1000001460; Cum- Attorney General, 1000003296. calfe County Board of Education, Murray State University, berland Valley Area Development TRANSPORTATION CABINET: 1000002733; Monroe County Board 1000004235. District, 1000002442; Bulliett Coun- Commonwealth Office of Tech- of Education, 1000002736; Mon- HIGHER EDUCATION ASSIS- ty Fiscal Court EMA, 1000003217. nology, 1000001556. ticello Independent Board of Educa- TANCE AUTHORITY, KENTUCKY: OFFICE OF THE GOVERNOR, TRAVEL, DEPARTMENT OF: tion, 1000002737; Morgan County Kentucky Higher Education Stu- DEPARTMENT FOR LOCAL GOV- Multi, 1000003537; Multi, Board of Education, 1000002738; dent Loan Corporation, 1000003360; ERNMENT: 1000003538; Multi, 1000003539; Nelson County Board of Education, Kentucky Higher Education Student Rowan County Fiscal Court, Multi, 1000003540; Multi, 1000002740; Newport Independent Loan Corporation, 1000003756. 1000003016; Lee County Fiscal Court, 1000003541; Multi, 1000003542; Board of Education, 1000002742; HORSE PARK, KENTUCKY: 1000003035; Livingston County Fis- Multi, 1000003543; Multi, Nicholas County Board of Education, Blackburn Correctional Com- cal Court, 1000003058; Pike Coun- 1000003544; Multi, 1000003547. 1000002744; Owen County Board plex, 1000003060. ty Fiscal Court, 1000003061; Leslie UNIVERSITY OF KENTUCKY: of Education, 1000002745; Owens- JUSTICE CABINET: County Fiscal Court, 1000003078; Gateway Community & Techni- boro Independent Board of Educa- Department of Pathology & City of Corbin, 1000003082; Lex- cal College, 002-11. tion, 1000002746; Owsley County Laboratory Medicine, 1000004126; ington-Fayette Urban County Gov- WORKFORCE INVESTMENT, Board of Education, 1000002747; Project Unite, 1000004129. ernment, 1000003084; Union OFFICE OF: Paintsville Independent Board of JUVENILE JUSTICE, DEPART- County Fiscal Court, 1000003090; Spalding University Entech, Education, 1000002748; Paris In- MENT OF: Ashland Independent Board of Edu- 1000002975; Western Kentucky As- dependent Board of Education, Jefferson County Board of Edu- cation, 1000003103; Knott County sist Technology Center, 1000002984; 1000002749; Pulaski County Board cation, 1000002306; Louisville Fiscal Court, 1000003117; Knott Redwood School & Rehabilitation of Education, 1000002751; Race- Metro Youth Detention Services, County Fiscal Court, 1000003122; Center, 1000002989; Bluegrass land Worthington Independent Board 1000002868; Department of Mili- City of Williamsburg, 1000003126; Technology Center, 1000002990; of Education, 1000002752; Rob- tary Affairs Youth Challenge Division, City of Louisa, 1000003162; City Council On Developmental Disabili- ertson County Board of Education, 1000002870; Barren County Board of of Jackson, 1000003164; Owsley ties Incorporated, 1000002997; 1000002757; Russell County Board Education, 1000002887; Bell Coun- County Fiscal Court, 1000003195; Barren River Area Development Dis- of Education, 1000002759; Board ty Board of Education, 1000002889; Owsley County Fiscal Court, trict, 1000003019; Bluegrass Area of Education of Somerset School Dis- Boyle County Board of Education, 1000003198; Daviess County Fiscal Development District, 1000003026; trict, 1000002760; Taylor County 1000002890; Bullitt County Board Court, 1000003213; Daviess Coun- Eastern Kentucky CEP Incorporated, Board of Education, 1000002762; of Education, 1000002891; Camp- ty Fiscal Court, 1000003214; Pike 1000003028; Green River Area De- Washington County Board of Educa- bell County Board of Education, County Fiscal Court, 1000003223; velopment District, 1000003030; tion, 1000002767; Wayne County 1000002893; Clark County Board Pike County Fiscal Court, Lincoln Trail Area Development Board of Education, 1000002768; of Education, 1000002894; Corbin 1000003224; Pike County Fiscal District, 1000003031; Kentucki- Whitley County Board of Educa- Independent Board of Education, Court, 1000003227; Trimble Coun- ana Works/Workforce Investment tion, 1000002770; Wolfe County 1000002895; Frankfort Independent ty Fiscal Court, 1000003231; City Board, 1000003032; Northern Ken- Board of Education, 1000002771; Board of Education, 1000002896; of Hanson, 1000003233; Hopkins tucky Area Development District, Madison County Board of Education, Hopkins County Board of Education, County Fiscal Court, 1000003235; 1000003033; Buffalo Trace Area 1000003163; University of Kentucky 1000002897; Laurel County Board Livingston County Fiscal Court, Development District, 1000003036; Research Foundation, 1000003382; of Education, 1000002898; Lexing- 1000003248; Floyd County Fiscal Pennyrile Area Development District, University of Louisville Research ton Fayette Urban County Govern- Court, 1000003264; City of Florence, 1000003037; Lake Cumberland Area Foundation, 1000003385; Univer- ment, 1000002899; Madison Coun- 1000003294; Letcher County Fiscal Development District, 1000003038; sity of Louisville Research Founda- ty Board of Education, 1000002900; Court, 1000003404; Union County KCTCS, 1000003561; UK Research tion, 1000003407; Murray State Mercer County Board of Education, Fiscal Court, 1000003606; Magoffin Foundation, 1000003589; UK Re- University, 1000003563; University 1000002901; Ohio County Board of County Fiscal Court, 1000003613; search Foundation, 1000003595; of Kentucky Research Foundation, Education, 1000002902; Pike Coun- City of Jackson, 1000003750; Floyd University of Kentucky Research 1000003586; Eastern Kentucky ty Board of Education, 1000002903; County Fiscal Court, 1000003833; Foundation, 1000003599; Universi- University, 1000003638; Indiana Pulaski County Board of Education, Breathitt County Fiscal Court, ty of Kentucky Research Foundation, University, 1000003642; Eastern 1000002904; Warren County Board 1000003834; Gateway Area De- 1000003880; Eastern Kentucky Kentucky University, 1000003646; of Education, 1000002906; Cal- velopment District, 1000003846; University, 1000003934; Indepen- University of Kentucky Research loway County Board of Education, Cumberland Valley Area Develop- dence Place, 1000003935; KCTCS, Foundation, 1000003653; Univer- 1000002911; Cabinet for Workforce ment District, 1000003852; Pur- 1000004026; Morehead State Uni- sity of Kentucky Research Founda- Development, 1000002931. chase Area Development District, versity, 1000004080. tion, 1000003772; NKU Research KENTUCKY HIGHER EDUCA- 1000003854; Kentucky River Area Foundation, 1000004022. TION STUDENT LOAN CORPORA- Development District, 1000003856; THE FOLLOWING MEMORAN- EDUCATION, OFFICE OF THE TION: Lincoln Trail Area Development Dis- DA OF AGREEMENT AMENDMENTS SECRETARY: Kentucky Higher Education As- trict, 1000003876; Pennyrile Area WERE REVIEWED WITHOUT OBJEC- Governors Scholar Program In- sistance Authority, 11-007. Development District, 1000003877; TION: corporated, 1000003915. KENTUCKY RIVER AUTHORITY: KIPDA, 1000003905; City of Som- ADMINISTRATIVE OFFICE OF EDUCATIONAL TELEVISION, U S Army Corps of Engineers, erset, 1000003916; Fivco Area De- THE COURTS: KENTUCKY: 1000002557; Department of the velopment District, 1000003941; Lifeskills Corporation Offices,

52 2010 Interim LEGISLATIVE RECORD 0900012787; UK Research Founda- ty Fiscal Court, 0700003945; Letch- Fiscal Court, 0800010214; Perry Fiscal Court, 0900011378; Law- tion, 1000000036. er County Fiscal Court, 0700004134; County Board of Education, rence County Fiscal Court, AGRICULTURE, DEPARTMENT Harlan County Fiscal Court, 0800010378; Ohio Co Fiscal Court, 0900011439; Lawrence County Fis- OF: 0700004298; Community Ventures 0800010474; Knott County Fiscal cal Court, 0900011439; Knott Multi, 0900011666; Multi, Corporation, 0700004320; Hender- Court, 0800010484; Knott County County Fiscal Court, 0900011468; 1000001497; Berea College Agricul- son County Fiscal Court, Fiscal Court, 0800010484; Magoffin Knott County Fiscal Court, ture & Natural Resources Depart- 0700004483; Henderson County County Fiscal Court, 0800010488; 0900011468; Knott County Fiscal ment, 1000002230. Fiscal Court, 0700004484; City of Magoffin County Fiscal Court, Court, 0900011472; Knott County DEPARTMENT FOR NATURAL Morganfield, 0700004916; McLean 0800010489; City of Madisonville, Fiscal Court, 0900011472; Ken- RESOURCES: County Fiscal Court, 0700004962; 0800010694; Madisonville Commu- tucky Housing Corporation, Pulaski County Conservation City of Sturgis, 0700005009; City of nity College, 0800010696; Law- 0900011477; Knott County Fiscal District, M-06031168. Providence, 0700005312; Owsley rence County Board of Education, Court, 0900011499; Knott County DEPARTMENT FOR PUBLIC County Fiscal Court, 0700005398; 0800010698; Lawrence County Fiscal Court, 0900011499; Knott HEALTH: McCreary County Fiscal Court, Board of Education, 0800010700; County Fiscal Court, 0900011501; Commonwealth of Kentucky 0700005807; City of Monticello, Lawrence County Board of Educa- Knott County Fiscal Court, Personnel Cabinet, 0800008044. 0700005945; City of Bellevue, tion, 0800010712; Lawrence Coun- 0900011501; Knott County Fiscal DEPARTMENT OF ENERGY DE- 0700006414; Knott County Fiscal ty Board of Education, 0800010716; Court, 0900011505; Knott County VELOPMENT AND INDEPENDENCE: Court, 0700006453; Wayne County Fairview Independent Schools, Fiscal Court, 0900011505; Knott ADICA, LLC, 0900012951. Fiscal Court, 0700006463; Owsley 0800010724; Bell County Board of County Fiscal Court, 0900011506; EDUCATION, DEPARTMENT OF: County Fiscal Court, 0700006477; Education, 0800010725; Floyd Knott County Fiscal Court, Jefferson County Board of Educa- Harlan County Fiscal Court, County Fiscal Court, 0800010863; 0900011506; Knott County Fiscal tion, 0800008315; Lawrence Coun- 0700006491; Harlan County Fiscal Bell County Fiscal Court, Court, 0900011507; Knott County ty Board of Education, 0800008321; Court, 0700006492; Letcher Coun- 0800010868; Boyd County Public Fiscal Court, 0900011507; Clay Treasurer Lee County Board of Educa- ty Fiscal Court, 0700006618; Leslie Schools, 0800010872; City of Liv- County Public Library, 0900011510; tion, 0800008322; Owen County County Fiscal Court, 0700006651; ingston, 0800010875; Henderson Harlan County Fiscal Court, Board of Education, 0800008338; Leslie County Fiscal Court, County Fiscal Court, 0800010896; 0900011511; Harlan County Fiscal Garrard County Board of Educa- 0700006657; Letcher County Fiscal Henderson County Fiscal Court, Court, 0900011513; Clay County tion, 0900011487; Hardin County Court, 0700006672; Letcher Coun- 0800010901; Henderson County Fiscal Court, 0900011556; Knott Board of Education, 0900011488; ty Fiscal Court, 0700006673; Letch- Fiscal Court, 0800010903; Floyd County Fiscal Court, 0900011573; Madison County Board of Education, er County Fiscal Court, 0700006717; County Fiscal Court, 0800010904; Muhlenberg County Fiscal Court, 1000001801. Letcher County Fiscal Court, Floyd County Fiscal Court, 0900011579; Knott County Fiscal MILITARY AFFAIRS, DEPART- 0800006760; City of Covington, 0800010906; Floyd County Fiscal Court, 0900011585; Knott County MENT OF: 0800007100; City of Campbellsville, Court, 0800010907; City of Hazard, Fiscal Court, 0900011585; Knott City of Greenville, 1000000059; 0800007141; Mountain Water Dis- 0800010930; City of Hazard, County Fiscal Court, 0900011586; Multi, 1000001241. trict, 0800007250; Bell County Fis- 0800010938; City of Hazard, Knott County Fiscal Court, OFFICE OF THE GOVERNOR, cal Court, 0800008598; Knott 0800010939; Perry County Fiscal 0900011586; Pike County Fiscal DEPARTMENT FOR LOCAL GOV- County Fiscal Court, 0800008603; Court, 0800010970; Floyd County Court, 0900011588; Pike County ERNMENT: Knott County Fiscal Court, Board of Education, 0800010977; Fiscal Court, 0900011589; Pike Garrard County Fiscal Court, 0800008629; Hazard Community Floyd County Board of Education, County Fiscal Court, 0900011591; 0600002113; Leslie County Fiscal College, 0800008784; Letcher 0800010980; Floyd County Board of Pike County Fiscal Court, Court, 0600002445; Warren Coun- County Fiscal Court, 0800008791; Education, 0800010981; Floyd 0900011592; Pike County Fiscal ty Fiscal Court, 0600002498; Ows- Lawrence County Fiscal Court, County Board of Education, Court, 0900011598; Bell County ley County Fiscal Court, 0600002537; 0800008795; Mountain Water Dis- 0800010982; City of Elkhorn City, Fiscal Court, 0900011604; Floyd Owsley County Fiscal Court, trict, 0800008852; Mountain Water 0800010985; City of Elkhorn City, County Fiscal Court, 0900011606; 0600002541; Harlan County Fiscal District, 0800008856; City of Fer- 0800010986; City of Elkhorn City, Floyd County Fiscal Court, Court, 0600002732; Monroe Coun- guson, 0800009695; Carter County 0800010987; Floyd County Fiscal 0900011645; Floyd County Fiscal ty Fiscal Court, 0600002837; Board of Education, 0800009988; Court, 0800010999; Floyd County Court, 0900011645; Lawrence Muhlenberg County Fiscal Court, Hancock County Fiscal Court, Fiscal Court, 0800011007; Floyd County Fiscal Court, 0900011699; 0600002838; Clinton County Fiscal 0800009992; Hancock County Fis- County Fiscal Court, 0800011009; Lawrence County Fiscal Court, Court, 0600002894; Clinton Coun- cal Court, 0800009992; Pike Coun- Pike County Fiscal Court, 0900011700; Lawrence County Fis- ty Fiscal Court, 0600002895; Moun- ty Board of Education, 0800010000; 0800011031; Pike County Fiscal cal Court, 0900011703; Lawrence tain Water District, 0600002928; Pike County Board of Education, Court, 0800011047; Leslie County County Fiscal Court, 0900011704; Letcher County Fiscal Court, 0800010015; Pike County Board of Fiscal Court, 0800011078; Carter Lawrence County Fiscal Court, 0600002930; Letcher County Fiscal Education, 0800010016; Pike Coun- County Board of Education, 0900011705; Lawrence County Fis- Court, 0600002936; Muhlenberg ty Board of Education, 0800010020; 0800011145; Knott County Fiscal cal Court, 0900011707; Lawrence County Fiscal Court, 0600002937; Pike County Board of Education, Court, 0800011191; Knott County County Fiscal Court, 0900011708; Greenup County Fiscal Court, 0800010021; Pike County Board of Fiscal Court, 0800011191; Hopkins Lee County Fiscal Court, 0900011804; 0600003021; Wayne County Fiscal Education, 0800010022; Pike Coun- County Fiscal Court, 0800011193; Laurel County Fiscal Court, Court, 0700003148; Breckinridge ty Board of Education, 0800010027; Floyd County Fiscal Court, 0900011808; Laurel County Fiscal County Fiscal Court, 0700003242; Pike County Board of Education, 0800011194; Bell County Fiscal Court, 0900011808; Floyd County Magoffin County Fiscal Court, 0800010028; Pike County Board of Court, 0800011239; Magoffin Fiscal Court, 0900011828; Leslie 0700003332; Graves County Fiscal Education, 0800010030; Pike Coun- County Fiscal Court, 0800011298; County Fiscal Court, 0900011898; Court, 0700003402; Harlan County ty Board of Education, 0800010033; Letcher County Fiscal Court, City of Mount Vernon, 0900012443; Fiscal Court, 0700003421; Floyd Pike County Board of Education, 0900011325; Letcher County Fiscal City of Mount Vernon, 0900012444; County Fiscal Court, 0700003574; 0800010036; Knox County Board of Court, 0900011326; Morgan Coun- Bell County Fiscal Court, City of Leitchfield, 0700003584; Education, 0800010051; Muhlen- ty Fiscal Court, 0900011367; John- 0900012450; Elliott County Fiscal Mountain Water District, berg County Fiscal Court, son County Fiscal Court, Court, 0900012453; Elliott County 0700003703; Woodford County Fis- 0800010151; Harlan County Fiscal 0900011374; Pike County Fiscal Fiscal Court, 0900012455; Elliott cal Court, 0700003851; Clay Coun- Court, 0800010213; Floyd County Court, 0900011377; Pike County County Fiscal Court, 0900012456;

THE KENTUCKY GENERAL ASSEMBLY 53 Harlan County Fiscal Court, Owsley County Fiscal Court, Education, 1000003166; Laurel Jiro Hashimoto, 1000002963. 0900012475; Harlan County Fiscal 1000000787; Harlan County Fiscal County Fiscal Court, 1000003179; Holland Spade and Jim Navolio dis- Court, 0900012479; Harlan County Court, 1000000904; Harlan County Laurel County Fiscal Court, cussed the contract with the com- Fiscal Court, 0900012481; City of Fiscal Court, 1000000905; Letcher 1000003180; Laurel County Fiscal mittee. A motion was made by Rep- Elkhorn City, 0900012494; City of County Fiscal Court, 1000000908; Court, 1000003181; Knox County resentative Crenshaw to consider the Elkhorn City, 0900012495; City of Letcher County Fiscal Court, Fiscal Court, 1000003183; Menifee contract as reviewed. Representative Elkhorn City, 0900012502; City of 1000000909; Owsley County Fiscal County Fiscal Court, 1000003185; Horlander seconded the motion, Pikeville, 0900012504; City of Court, 1000000912; Pike County City of London, 1000003192; Ows- which passed unanimously. Pikeville, 0900012509; Magoffin Board of Education, 1000000914; ley County Fiscal Court, 1000003193; EDUCATION, DEPARTMENT OF: County Fiscal Court, 0900012526; City of Booneville, 1000000981; Owsley County Fiscal Court, Achieve Incorporated, Magoffin County Fiscal Court, Morgan County Fiscal Court, 1000003195; Owsley County Fiscal 1000002463. Hiren Desai discussed 0900012527; Magoffin County Fis- 1000001040; Webster County Fis- Court, 1000003196; Owsley Coun- the contract with the committee. A cal Court, 0900012527; Floyd cal Court, 1000001045; Lawrence ty Fiscal Court, 1000003198; Da- motion was made my Senator Mc- County Fiscal Court, 0900012885; County Fiscal Court, 1000001137; viess County Fiscal Court, Gaha to disapprove the contract. Union County Fiscal Court, Breathitt County Fiscal Court, 1000003213; Daviess County Fiscal Representative Montell seconded the 0900012903; Letcher County Fiscal 1000001155; Harlan County Fiscal Court, 1000003214; Pike County motion, which passed unanimously. Court, 0900012906; Letcher Coun- Court, 1000001159; Letcher Coun- Fiscal Court, 1000003223; Pike EDUCATION, DEPARTMENT OF: ty Fiscal Court, 0900012914; Letch- ty Fiscal Court, 1000001160; Letch- County Fiscal Court, 1000003224; John Thompson, 1000002687. er County Fiscal Court, 0900012929; er County Fiscal Court, 1000001161; Pike County Fiscal Court, Hiren Desai and Kevin Brown dis- Letcher County Fiscal Court, Pike County Fiscal Court, 1000003225; Pike County Fiscal cussed the contract with the com- 0900012930; Letcher County Fiscal 1000001162; City of Olive Hill, Court, 1000003227; Floyd County mittee. A motion was made by Rep- Court, 0900012931; Letcher Coun- 1000001173; Hopkins County Trea- Fiscal Court, 1000003264; Pike resentative Horlander to consider ty Fiscal Court, 0900012932; Letch- surer, 1000001174; Pike County County Fiscal Court, 1000003293; the contract as reviewed. Senator er County Fiscal Court, 0900012933; Board of Education, 1000001179; Magoffin County Fiscal Court, McGaha seconded the motion, which Knott County Fiscal Court, Russell County, 1000001272; City 1000003613; Magoffin County Fis- passed with Senator Gibson electing 0900012957; Letcher County Fiscal of Elkhorn City, 1000001367; City cal Court, 1000003614; Magoffin to abstain (PASS) and Representa- Court, 0900012959; Knott County of Pikeville, 1000001394; City of County Fiscal Court, 1000003615; tives Montell and Crenshaw voting Fiscal Court, 0900013023; Knott Pikeville, 1000001395; City of Mor- Magoffin County Fiscal Court, NO. County Fiscal Court, 0900013024; ganfield, 1000001396; Leslie Coun- 1000003647; City of Jackson, Knott County Fiscal Court, ty Fiscal Court, 1000001401; Madi- 1000003750; Muhlenberg County 0900013024; City of Grayson, sonville Community College, Fiscal Court, M-06042729-1; Moun- EDUCATION, DEPARTMENT OF: 0900013025; Knott County Fiscal 1000001402; Madisonville Commu- tain Water District, M-06131736-1; Measured Progress, 1000002691. Court, 0900013097; Hopkins Coun- nity College, 1000001403; Harlan City of Dixon, M-06162409; Moun- Hiren Desai and Ken Draught dis- ty Fiscal Court, 0900013164; Letch- County Fiscal Court, 1000001404; tain Water District, M-06193696-1. cussed the contract with the commit- er County Fiscal Court, 0900013166; Big Sandy Regional Independent De- WORKFORCE INVESTMENT, tee. A motion was made by Senator Owsley County Fiscal Court, velopment Authority, 1000001496; OFFICE OF: Gibson to consider the contract as 0900013169; Knott County Fiscal Webster County Fiscal Court, Hancock County Board of Educa- reviewed. Representative Horlander Court, 0900013173; Knott County 1000001500; Webster County Fis- tion, 0800009810; Monroe County seconded the motion, which passed Fiscal Court, 0900013187; Knott cal Court, 1000001501; Webster Board of Education, 0800009831; unanimously. County Fiscal Court, 0900013188; County Fiscal Court, 1000001502; Ohio County Board of Education, EDUCATION, DEPARTMENT OF: Harlan County Fiscal Court, Pike County Fiscal Court, 0800009836. One Plus Services, 1000002693. 1000000002; City of Pineville, 1000001520; Hopkins County Fiscal Hiren Desai, Debbie Tankersley and 1000000169; Lawrence County Fis- Court, 1000001524; Floyd County Nancy Graham discussed the con- cal Court, 1000000173; Morgan Fiscal Court, 1000001525; Lee tract with the committee. A motion County Fiscal Court, 1000000176; County Fiscal Court, 1000001603; THE FOLLOWING PERSONAL was made by Representative Montell City of Pineville, 1000000229; Hop- Floyd County Board of Education, SERVICE CONTRACTS WERE SE- to consider the contract as reviewed. kins County Fiscal Court, 1000001604; Floyd County Board of LECTED FOR FURTHER REVIEW: Representative Crenshaw seconded 1000000414; Letcher County Fiscal Education, 1000001606; Floyd CORRECTIONS, DEPARTMENT the motion, which passed unani- Court, 1000000417; Webster County Board of Education, OF: mously. County Fiscal Court, 1000000421; 1000001608; City of Nortonville, Phamatech Incorporated, EDUCATION, DEPARTMENT OF: Webster County Fiscal Court, 1000001611; Bell County Fiscal 1000002817. Hilarye Dailey and Julie Achieve Incorporated, 1000000424; Laurel County Fiscal Court, 1000001762; Hopkins Coun- Brewer discussed the contract with 1000003403. Hiren Desai discussed Court, 1000000471; Breathitt ty Fiscal Court, 1000001770; Mor- the committee. A motion was made the contract with the committee. A County Fiscal Court, 1000000483; gan County Fiscal Court, by Representative Montell to con- motion was made by Representative Breathitt County Fiscal Court, 1000001773; Knott County Fiscal sider the contract as reviewed. Rep- Crenshaw to consider the contract as 1000000486; Breathitt County Fis- Court, 1000002219; Jackson Coun- resentative Horlander seconded the reviewed. Representative Horlander cal Court, 1000000490; Breathitt ty Fiscal Court, 1000002631; City motion, which passed unanimously. seconded the motion, which passed County Fiscal Court, 1000000491; of Corbin, 1000003082; Daviess CRIMINAL JUSTICE TRAINING, unanimously. Ohio County Fiscal Court, County Fiscal Court, 1000003091; DEPARTMENT OF: EDUCATIONAL TELEVISION, 1000000515; Muhlenberg County City of London, 1000003116; Knott Brett Scott, 1000002888; Doug KENTUCKY: Fiscal Court, 1000000520; City of County Fiscal Court, 1000003117; Czor, 1000003079. Steve Lynn dis- Vince Spoelker, 1000003246. Olive Hill, 1000000524; Owsley Knott County Fiscal Court, cussed the contracts with the com- Nancy Carpenter and Shanon Mag- County Fiscal Court, 1000000546; 1000003122; Pike County Fiscal mittee. A motion was made by Rep- gard discussed the contract with the Hopkins County Fiscal Court, Court, 1000003133; Laurel County resentative Horlander to consider the committee. A motion was made by 1000000603; Reach Incorporated, Fiscal Court, 1000003134; Whitley contracts as reviewed. Representa- Representative Montell to consider 1000000713; Letcher County Fiscal County Fiscal Court, 1000003136; tive Crenshaw seconded the motion, the contract as reviewed. Represen- Court, 1000000745; Purchase Area Owsley County Board of Education, which passed unanimously. tative Crenshaw seconded the mo- Housing Corporation, 1000000751; 1000003145; City of Louisa, DEPARTMENT FOR BUSINESS tion, which passed unanimously. Lee County Fiscal Court, 1000000783; 1000003162; Floyd County Board of DEVELOPMENT: FINANCE AND ADMINISTRA-

54 2010 Interim LEGISLATIVE RECORD TION CABINET: tion, which passed unanimously. 1000002409; Taylor Keller Dunaway sentative Montell electing to abstain Reed Weitkamp Schell & Vice, KENTUCKY HIGHER EDUCA- & Tooms, PLLC, 1000002410; Gess (PASS) and Senator McGaha voting 1000003730. Jeff Mosley and Lisa TION STUDENT LOAN CORPORA- Mattingly & Atchison, 1000002413; NO. Beran discussed the contract with TION: Borowitz & Goldsmith, PLC, WORKER’S COMPENSATION the committee. A motion was made Strothman & Company, 11-006. 1000002414; Barber & Banaszyn- FUNDING COMMISSION: by Representative Crenshaw to con- Diana Barber and Jodell Renn dis- ski, 1000002415; Reed Weitkamp The Bank of New York Mellon, sider the contract as reviewed. Sen- cussed the contract with the com- Schell & Vice, 1000002416; Kohnen 1000002604; Smithbarney First Trust, ator Gibson seconded the motion, mittee. A motion was made by Rep- & Patton, LLP, 1000002421; Zielke 1000002659; Intech Investment which passed unanimously. resentative Horlander to consider Law Firm, PLLC, 1000002422; Ped- Management, LLC, 1000002774; FINANCE AND ADMINISTRA- the contract as reviewed, but at the ley & Gordinier, PLLC, 1000002423; Cramer Rosenthal McGlynn, LLC, TION CABINET: statutory hourly rate of $125 and not Ward, Hocker & Thorton, PLLC, 1000002801; Cramer Rosenthal Morgan & Pottinger, the contract amount of $250. Rep- 1000003266; Larry E. Rogers At- McGlynn, LLC, 1000002802; Chase 1000003748. Jeff Mosley, Vickie resentative Crenshaw seconded the torney-at-Law, PLLC, 1000003268; Investment Counsel Corporation, Wise and Jeff Burton discussed the motion, which passed unanimously. Ferreri & Fogle, 1000003269; Ful- 1000002804; Invesco Advisers In- contract with the committee. A mo- ton & Devlin, 1000003271; Cheva- corporated, 1000002805; Invesco tion was made by Representative lier, Fox & Ginn, PSC, 1000003272; Advisers Incorporated, 1000002806. Crenshaw to consider the contract as KENTUCKY LOTTERY CORPO- Whitlow Roberts Houston & J.R Wilhite and Frank Dickerson dis- reviewed. Representative Horlander RATION: Straub, 1000003273; Wyatt Tar- cussed the contracts with the com- seconded the motion, which passed Blue & Company, LLC, 11-08- rant & Combs, LLP, 1000003274; mittee. A motion was made by Rep- unanimously. 050. Mike Denney, Chris Polston Jeffrey Eastham, 1000003275; Sut- resentative Crenshaw to consider the and Shannon Loyd discussed the ton Rankin Law, PLC & Braden, PLC, contracts as reviewed. Representa- HIGHER EDUCATION ASSIS- contract with the committee. A mo- 1000003276; Jones, Walters, Turner tive Montell seconded the motion, TANCE AUTHORITY, KENTUCKY: tion was made by Representative & Shelton, 1000003277; Walther, which passed unanimously. Strothman & Company, PSC, Montell to consider the contract as Roark & Gay, 1000003279; Weber THE FOLLOWING PERSONAL 1000003762; Strothman & Company, reviewed, but at the statutory hourly & Rose, 1000003280. Todd Shipp, SERVICE CONTRACTS FOR $10,000 PSC, 1000003763. Diana Barber and rate of $125 and not the contract Rebecca Goodman and Peggy Strat- AND UNDER WERE SELECTED FOR Jodell Renn discussed the contracts hourly rate of $225. Senator Gibson ton discussed the contracts with the FURTHER REVIEW: with the committee. A motion was seconded the motion, which passed committee. A motion was made by KENTUCKY STATE UNIVERSITY: made by Representative Horlander to unanimously. Representative Crenshaw to consider Wyatt Tarrant & Combs, 10-07. consider the contracts as reviewed, KENTUCKY STATE UNIVERSITY: the contracts as reviewed. Senator Steve Mason, Kathrine Napier and but at the statutory hourly rate of MML&K Government Solutions, Tori seconded the motion, which Gary Meiseles discussed the contract $125 and not the contract hourly 11-03. Steve Mason, Kathrine Na- passed unanimously. with the committee. A motion was rate of $160. Representative Cren- pier and Gary Meiseles discussed made by Representative Crenshaw shaw seconded the motion, which the contract with the committee. A UNIVERSITY OF KENTUCKY: to consider the contract as reviewed. passed unanimously. motion was made by Representative Stites & Harbison, PLLC, K11- Senator Tori seconded the motion, KENTUCKY COMMUNITY & Crenshaw to consider the contract 110. Frank Butler and Bill Harris which passed with Representative TECHNICAL COLLEGE SYSTEM: as reviewed. Representative Montell discussed the contract with the Montell electing to abstain (PASS) Aspect Software Incorporated seconded the motion, which passed committee. A motion was made by and Senators McGaha and Gibson (formerly Quilogy Incorporated), unanimously. Representative Crenshaw to consider voting NO. 450; High Monkey Consulting, 439; TRANSPORTATION CABINET: the contract as reviewed. With no MOREHEAD STATE UNIVER- Summit 7 Systems, 440. Tim Bur- Bowles Rice McDavid Graff & second having been made, the mo- SITY: cham, David Holcomb and Philip Fred E. Fugazzi Jr., 1000002197; tion failed, however the contract Kay Collier McLaughlin, 11-003. Brashear discussed the contracts Kohnen & Patton, LLP, 1000002240; moved forward. Jane Fitzpatrick discussed the con- with the committee. A motion was Reed Weitkamp Schell & Vice, UNIVERSITY OF KENTUCKY: tract with the committee. A motion made by Representative Crenshaw to 1000002250; Stoll Keenon Ogden, Wyatt Tarrant & Combs, LLC, was made by Representative Cren- consider the contracts as reviewed. PLLC, 1000002253; Sturgill Turner K11-111. A motion was made by shaw to consider the contract as re- Representative Montell seconded the Barker & Moloney, PLLC, 1000002298; Representative Crenshaw to consider viewed. With no second having been motion, which passed unanimously. Taylor Keller Dunaway & Tooms, the contract as reviewed. Represen- made, the motion failed, however the KENTUCKY COMMUNITY & PLLC, 1000002299; Walther, Roark tative Montell seconded the motion, contract moved forward. TECHNICAL COLLEGE SYSTEM: & Gay, 1000002301; Weber & Rose, which passed unanimously. Thorn Run Partners, LLC, 461. 1000002302; Carl J. Bensinger & As- UNIVERSITY OF KENTUCKY: PERSONNEL-OFFICE OF THE Tim Burcham, David Holcomb and sociates, 1000002334; Davis Law, Walther Roark & Gay, PLC, SECRETARY: Philip Brashear discussed the con- PSC, 1000002382; Fulkerson & Kin- K11-112; Stidham & Associates, Susan M. Turner, 1000002849. tract with the committee. A motion kel, PLLC, 1000002384; Kim Hunt K11-113; Denney Morgan Rather & Walt Gaffield and Mary Hook dis- was made by Representative Hor- Price, 1000002385; Vanantwerp, Gilbert, K11-114; Baker Kriz Jenkins cussed the contract with the com- lander to consider the contract as Monge, Jones, Edwards & McCann, Prewitt & Jones, PSC, K11-115. A mittee. A motion was made by Rep- reviewed. Representative Crenshaw LLP, 1000002386; Johnson & Repasky, motion was made by Representative resentative Crenshaw to consider the seconded the motion, which passed PLLC, 1000002387; L. Forgy & Asso- Crenshaw to consider the contracts contract as reviewed. Representa- unanimously. ciates, PLLC, 1000002394; Hazelrigg as reviewed. Representative Montell tive Montell seconded the motion, KENTUCKY COMMUNITY & & Cox, 1000002395; Stoll Keenon seconded the motion, which passed which passed unanimously. TECHNICAL COLLEGE SYSTEM: Ogden, PLLC, 1000002396; Fox unanimously. Appalachian Regional Health- Wood Wood & Estill, 1000002398; UNIVERSITY OF KENTUCKY: THE FOLLOWING MEMORAN- care Incorporated, 471. Tom Pope, Sturgill Turner Barker & Moloney, Midgett & Preti, PC, K11-116. DUM OF AGREEMENT WAS SELECT- David Holcomb and Philip Brashear PLLC, 1000002399; McMurry & Frank Butler and Bill Harris discussed ED FOR FURTHER REVIEW: discussed the contract with the Livingston, 1000002401; Logan & the contract with the committee. A DEPARTMENT FOR COMMU- committee. A motion was made by Gaines, 1000002402; Kerrick Stivers motion was made by Representative NITY BASED SERVICES: Representative Crenshaw to consider Coyle & Vanzant, PLC, 1000002403; Crenshaw to consider the contract as Louisville/Jefferson County Met- the contract as reviewed. Represen- Edward Worland, Jr., PSC, reviewed. Senator Tori seconded the ro Government, 1000001670. Renee tative Horlander seconded the mo- 1000002405; Morgan & Pottinger, motion, which passed with Repre- Close and David Gayle discussed the

THE KENTUCKY GENERAL ASSEMBLY 55 contract with the committee. A mo- the contracts with the committee. A omies in terms of jobs, income, and tion was made Representative Cren- motion was made by Representative overall economic activity. Medicaid shaw to consider the contract as re- Crenshaw to consider the contracts provides coverage to over 798,493 viewed. Senator Gibson seconded the as reviewed. Representative Hor- of Kentucky’s most vulnerable citi- motion, which passed unanimously. lander seconded the motion, which zens and provides coverage to over EDUCATION, DEPARTMENT OF: passed unanimously. JOINT MEETING 59,798 children who are enrolled in Montgomery County Board EDUCATION, DEPARTMENT OF: TASK FORCE ON MEDICAID the Kentucky Children’s Health In- of Education, 1000002797; Madi- VSA Arts of Kentucky, COST CONTAINMENT surance Program (KCHIP). For every son County Board of Education, 1000003315. Hiren Desai and Toyah MEDICAID OVERSIGHT AND dollar received, the Department for 1000002798; Corbin Independent Robey discussed the contract with ADVISORY COMMITTEE Medicaid Services spends approxi- Board of Education, 1000002916; the committee. A motion was made Minutes of the 2nd Meeting mately 2.2 percent for administrative Carter County Board of Educa- by Representative Crenshaw to con- of the 2010 Interim costs. Unprecedented growth in the tion, 1000002917; Pulaski County sider the contract as reviewed. Rep- July 20, 2010 number of new enrollees is due to a Board of Education, 1000002920; resentative Horlander seconded the weakening economy. During the last Letcher County Board of Educa- motion, which passed unanimously. Call to Order and Roll Call biennium, Medicaid added over 3,000 tion, 1000002922; Letcher County WORKFORCE INVESTMENT, A joint meeting of the Task Force new recipients each month compared Board of Education, 1000002929; OFFICE OF: on Medicaid Cost Containment and to 930 per month in the prior bienni- Madison County Board of Education, KCTCS, 1000003768; Eastern the Medicaid Oversight and Advisory um. Medicaid is the largest payer for 1000002933; Paris Independent Kentucky University, 1000003769; Committee was held on Tuesday, July long-term care services both in Ken- Board of Education, 1000002952; Morehead State University, 20, 2010, at 10:00 AM, in Room 131 tucky and the nation. Medicaid has Larue County Board of Educa- 1000003770. Tommy Goins and Deb- of the Capitol Annex. Representative 40,345 enrolled providers. Medicaid tion, 1000002985; Pike County ora Almgren discussed the contracts Jimmie Lee, Chair, called the meeting is the primary payer of healthcare in Board of Education, 1000002986; with the committee. A motion was to order, and the secretary called the Kentucky. Glasgow Independent Board of Edu- made by Representative Crenshaw to roll. Discussion of Medicaid Cost cation, 1000002987; Green County consider the contracts as reviewed. Present were: Drivers Board of Education, 1000002994; Senator Gibson seconded the mo- Members: Senator Katie Kratz Betsy Johnson, Commissioner, Shelby County Board of Educa- tion, which passed unanimously. Stine, Co-Chair; Representative Jim- Department for Medicaid Services, tion, 1000003255; Shelby County mie Lee, Co-Chair; Senators Walter Cabinet for Health and Family Ser- Board of Education, 1000003257; THE FOLLOWING MEMORAN- Blevins, Julie Denton, Dan Seum, De- vices, testified in regard to Medicaid Shelby County Board of Educa- DA OF AGREEMENTS AMENDMENTS nise Harper Angel, Bob Leeper, and cost drivers. Medicaid cost drivers tion, 1000003259; Campbellsville FOR $50,000 AND UNDER WERE David L. Williams; Representatives include extraordinary events, un- Independent Board of Education, SELECTED FOR FURTHER REVIEW: Tom Burch, Bob DeWeese, Joni Jen- precedented eligibility growth, and 1000003260; Shelby County Board of kins, Rick Rand, David Watkins, and cost and utilization growth. New Education, 1000003261; Scott Coun- DEPARTMENT FOR ENVIRON- Jill York. waivers contribute to Medicaid cost ty Board of Education, 1000003282; MENTAL PROTECTION: Guests: Don Putnam for PROOF; drivers. These include the Michelle Danville Independent Board of Edu- Southern Illinois University, Dwayne Johnson, Eric Clark and Ruby P. Waiver, implemented in November, cation, 1000003283; Todd County 1000003702. Allan Bryant, Amy Jo Lubarsky for the Kentucky Associ- 2008; Money Follows the Person, Board of Education, 1000003284; Metzger and Edward Winner dis- ation of Health Care Facilities; Bernie implemented in October, 2008; and Bell County Board of Education, cussed the contract with the com- Vonderheide and Bryce McGowan the ABI Long Term Care Waiver, im- 1000003287; Frankfort Independent mittee. A motion was made by Sena- for Kentuckians for Nursing Home plemented in November, 2008. Also, Board of Education, 1000003288; tor Gibson to consider the contract Reform; Jeff Presser for Dean Dorton there has been increased KCHIP en- Campbellsville Independent Board as reviewed. Representative Cren- Ford; Marty White and Bill Doll for rollment from 53,186 to 59,798 of Education, 1000003289; Fay- shaw seconded the motion, which the Kentucky Medical Association; from October, 2008 to May, 2010. ette County Board of Education, passed unanimously. and Anne Joseph for Covering Ken- Charts were discussed that showed 1000003566; Fayette County Board DEPARTMENT FOR NATURAL tucky Kids and Families. the growth in Medicaid eligibility and of Education, 1000003567; Fay- RESOURCES: LRC Staff: Mike Clark, Miriam Medicaid benefit expenditures aver- ette County Board of Education, University of Kentucky Research Fordham, Lashae Kittinger, DeeAnn age cost per eligible per month from 1000003568; Fayette County Board Foundation, 1000003596. Steve Mansfield, Cindy Murray, Cindy 2007-2010. of Education, 1000003569; Treasur- Kull and Diana Olszowy discussed Smith, Pam Thomas, and Frank Wil- Discussion of Medicaid Cost er Fleming County Board of Educa- the contract with the committee. A ley. Containment Measures tion, 1000003570; Daviess County motion was made by Representative Approval of Minutes Betsy Johnson, Commissioner, Board of Education, 1000003571; Crenshaw to consider the contract The minutes of the November Department for Medicaid Services, Trigg County Board of Educa- as reviewed. Representative Montell 23, 2009 Medicaid Oversight and Cabinet for Health and Family Ser- tion, 1000003602; Boyle County seconded the motion, which passed Advisory Committee were approved vices, testified in regard to Medicaid Board of Education, 1000003605; unanimously. without objection by the members of cost containment measures. Numer- Perry County Board of Education, EDUCATION, DEPARTMENT OF: the Medicaid Oversight and Advisory ous Medicaid efficiencies were dis- 1000003639; Jefferson County North Central Kentucky (AHEC) Committee. cussed. These include post payment Board of Education, 1000003640; Community & Technical College Sys- Medicaid Overview pharmacy audits; prior authoriza- Madison County Board of Education, tem, 1000001631. Hiren Desai and Betsy Johnson, Commissioner, tion for certain drugs; changes to the 1000003649; Knott County Board of Denise Hagan discussed the contract Department for Medicaid Services, early refill limit; requiring that only Education, 1000003710; Pike Coun- with the committee. A motion was Cabinet for Health and Family Ser- prescriptions written by a Medicaid ty Board of Education, 1000003711; made by Representative Crenshaw to vices, gave an overview of Medicaid. enrolled provider are filled; modifying Carter County Board of Education, consider the contract as reviewed. Medicaid is the nation’s major pub- coverage of over-the-counter medica- 1000003759; Woodford County Representative Horlander seconded lic health program for low-income tions; an enhanced lock-in program; Board of Education, 1000003777; the motion, which passed unani- Americans. It finances health and discontinuing payments for hospital Shelby County Board of Education, mously. long-term care services for more than acquired conditions; purchase of dia- 1000003812; Metcalfe County Board With no further business be- 50 million people. Medicaid spend- betic supplies through pharmacy in- of Education, 1000003814. Hiren fore the committee, the meeting ad- ing enables the program to make sig- stead of durable medical equipment; Desai and Terry Holliday discussed journed at 2:45 PM. nificant contributions to state econ- new program integrity support ven-

56 2010 Interim LEGISLATIVE RECORD dor; and payment of health insurance lists. In response to a question by The meeting was adjourned at premiums if Medicaid recipients are In response to a question by Senator Stine, Commissioner John- 11:55 a.m. eligible for group health insurance. President Williams, Commissioner son said that Medicaid does pay Discussion of Medicaid Pharma- Johnson said that the audits by Ma- dispensing fees for over-the-counter PROGRAM REVIEW AND cy Benefit Administration gellan are a service required under drugs because they are paying for the INVESTIGATIONS COMMIT- Betsy Johnson, Commissioner, the contract with Magellan. services since there has to be a pre- TEE Department for Medicaid Services, In response to a question by scription from the providers for over- Minutes Cabinet for Health and Family Ser- Senator Leeper, Commissioner John- the-counter drugs to be reimbursed. July 8, 2010 vices, testified in regard to Medicaid son said that cost savings due to the In response to a question by Call to Order and Roll Call pharmacy benefit administration. change in the refill time limits is no- Representative DeWeese, Commis- The Program Review and Investi- Pharmacy is an optional service un- ticed over time. The longer refill time sioner Johnson said that it is com- gations Committee met on Thursday, der the federal Medicaid rules. It is helps to avoid the diversion of drugs. plex to compare different states’ July 8, 2010, at 10:00 AM, in Room the largest optional service before She also noted that she did not have Medicaid programs. Costs depend 131 of the Capitol Annex. Represen- accounting for rebates and totaled the figures with her on behavioral on what drugs are covered and what tative Kelly Flood, Chair, called the $508 million for SFY 2009, which is health drugs, but she would get that the rebate issues are. meeting to order, and the secretary about 9 percent of the total Medicaid to the committee. Medicaid Rebates called the roll. dollars. Pharmacy costs for dispens- In regard to a question by Sena- Rob Coppola from Magellan tes- Present were: ing fees are $5.00 for generic drugs tor Leeper, Commissioner Johnson tified in regard to Kentucky’s Med- Members: Representative Kelly and $4.50 for name brand drugs. The said the Cabinet is continuing to icaid Drug Rebate Program. The Flood, Co-Chair; Senators Jimmy Pharmacy and Therapeutics (P&T) look at the problem of people that Medicaid Drug Rebate Program was Higdon, Vernie McGaha, R.J. Palmer Committee and the Drug Manage- are on too many drugs, sometimes in created by the Omnibus Budget Rec- II, Joey Pendleton, Brandon Smith, ment Review Advisory Board were excess of 20 different prescriptions onciliation Act (OBRA) of 1990. It and Katie Kratz Stine; Representa- discussed. The requirements for both per month. She said it is a difficult requires drug manufacturers to enter tives Dwight D. Butler, Leslie Combs, groups are set forth in administrative issue to fix because certain health into a National Rebate Agreement Terry Mills, David Osborne, Ruth regulations. Both committees con- issues require a number of different to ensure that their drugs are cov- Ann Palumbo, Rick Rand, and Arnold sist of 15 members, with thirteen of drugs. The Cabinet plans to work ered by Medicaid agencies. Approxi- Simpson. those being voting members. with the P&T Committee to address mately 550 pharmaceutical manu- Legislative Guest: Representa- In response to a question by it further. facturers currently participate. The tive Derrick Graham. Representative Lee, Commissioner In response to a question by program also establishes minimum Guests: Bill Scott, Executive Johnson said that in regard to post Representative Stacy, Commissioner rebate amounts. The rebate program Director; Teresa Combs, Director of payment pharmacy audits, the Cabi- Johnson said that the results from in Kentucky is administered by Ma- Legal Training Services; Kentucky net works closely with the PBA, does studies on cost driver by diagnoses gellan Medicaid Administration. It School Boards Association (KSBA). desk audits, and reviews files. If will be discussed at a future meet- is a fee-based contract with 100 per- Debra Keelan, Parent; Caren Gard- something is found to be amiss, let- ing. cent of the revenue being returned ner, Parent; Kentucky Families with ters are sent to the pharmacies in- In response to a question by to Kentucky. In Kentucky, the OBRA Food Allergies. Bob Babbage; Leslie volved. Quarterly audits are done, Representative DeWeese, Commis- rebates averaged $51.7 million per Scott, Assistant Professor, Univer- and they look at pharmacies with sioner Johnson said that once people quarter in 2009. The supplemental sity of Kentucky College of Nurs- high spending that is out of the are locked-in to a certain hospital, if rebates averaged $7.3 million per ing; American Diabetes Association. norm. they use a different emergency room, quarter in 2009. Sharon Mercer, Practice Consultant, In response to a question by that hospital will be paid only the as- In response to questions by Kentucky Board of Nursing. Mike Representative Lee, Commissioner sessment fee. It will be the job of Representative Lee, Mr. Coppola re- Burnside, Executive Director; Brent Johnson said that if a prescription is the hospital to send them on to their sponded that Magellan is a pharmacy Aldridge, Director of Alternative In- written for a name brand drug, there primary physician. benefits administrator. Magellan vestments and Interim Chief Invest- is no prior authorization because if it In response to a question by makes recommendations to the Cab- ment Officer; Kentucky Retirement is not on the list then it is not cov- President Williams, Commissioner inet and the P&T committee as to Systems. Jim Voytko, President and ered. If the prescription drug has the Johnson said that if a Medicaid re- what drugs should be on the formu- Senior Consultant; Tony Johnson, same therapeutic value, that drug cipient qualifies for group insurance lary. Magellan currently negotiates Senior Consultant; RVKuhns & As- would also be covered. through their employer, the money with 26 states. Magellan receives no sociates, Inc. Don Dampier, Retired In response to a question by will go directly to the employer for additional benefit from the state oth- Kentucky State worker. Representative Lee, Commissioner payment. Also, she noted that Med- er than what the contract states, and LRC Staff: Greg Hager, Commit- Johnson said there are currently 600 icaid is always the second payer if a they have no other sidebar contracts tee Staff Administrator; Rick Gray- recipients enrolled in the lock-in pro- recipient has other health insurance. if they use particular companies. Its carek; Christopher Hall; Colleen Ken- gram, and the Cabinet is expecting In response to a question by reward is a renewal of its contract. nedy; Van Knowles; Lora Littleton; up to 4,000 to come out after the Senator Williams, Commissioner All contracts are fee based with no Jean Ann Myatt; Sarah Spaulding; claims analysis is done. Johnson said that an analysis is done additional benefits to Magellan. Katherine Thomas; Cindy Upton; In response to a question by Sen- to determine if Medicaid is going to In response to a question by Stella Mountain, Committee Assis- ator Denton, Commissioner Johnson pay the reimbursement. President Williams, Mr. Coppola said tant. said that the lock-in program does In response to a question by Sen- that Magellan provides formulary Staff Report: School Health not include dental, but the depart- ator Denton, Commissioner Johnson management for 25 states and is Services for Students With Chronic ment can look into adding that. said that the Cabinet is looking for the pharmacy benefits administrator Health Conditions in Kentucky In response to a question by ways to focus on those over-utilizing for Kentucky and eight other states. Van Knowles summarized the Senator Williams, Commissioner emergency rooms. She noted that There are four other companies that updates to the report. He said that Johnson said that tracking is done it would not be appropriate for all provide the same services. Different questions were raised at the June 10 by the Division of Program Integrity Medicaid eligibles to be in the lock- states get different rebates, depend- meeting about some aspects of the and they have access to the KASPER in for hospitals. Senator Denton said ing on the program they opt-in to. report. The committee requested system. The department also man- that emergency room overutilization There are 11 states in the national feedback from interested parties. ages drugs through the PDL and data needs to be a main focus of the Cabi- program. Compared to private insur- There are several policy issues analysis through prescriber patterns, net, and they need to work aggres- ance, Medicaid rates are the best due and statutory clarifications regarding and also manages preferred drug sively to find a solution. to best price. legal requirements for school health

THE KENTUCKY GENERAL ASSEMBLY 57 services that the General Assembly address the question of possible sur- and the state pays 20 percent. There personnel. Without adequate fund- might wish to address. There is mis- pluses in health department school is no mention of the Medicaid match- ing from the legislature it would be understanding about the schools’ re- health programs. Health departments ing rate in the healthcare reform, so extremely burdensome to school sponsibilities and deficiency in how receive an enhanced reimbursement the rate would go back to $2.33 per districts to have a specific ratio of they are carried out. Recommenda- rate in order to support other pub- $1. nurses to students. School districts tion 3.3 asks the Kentucky Depart- lic health programs. This permits the Bill Scott, Executive Director of need maximum flexibility to provide ment of Education (KDE) to monitor state to apply $2.33 in federal funds the Kentucky School Boards Associa- school health services. Lack of funds how schools carry out their responsi- for every $1 in state funds based on tion (KSBA) gave an overview of the prevents school districts from hav- bilities. The recommendation is also the 70 percent federal match prior association and introduced Teresa ing enough licensed personnel in the key because it calls on the regulatory to the American Recovery and Rein- Combs, Director of Legal Training schools. agencies and other stakeholders to vestment Act (ARRA). Services. Representative Flood asked Deb- provide clear guidance and to advise Information was added about Ms. Combs said KSBA assists ra Keelen and Caren Gardner from the General Assembly if statutory a funding approach used in South school districts in seeking reimburse- Kentucky Families with Food Allergies changes are necessary. Carolina, which permits school dis- ment for covered health services list- to respond to the report. Ms. Keelen Funding is complex and most tricts to contract with the state ed in Individual Education Plans (IEP) said that they support standardized districts do not have a way to sep- health department. Using the health for children who are eligible under guidelines and minimum guidelines arate school health from other ser- department’s Title V status, school both IDEA [Individuals with Disabili- for food allergies. They are also sup- vices. Much of the funding is outside districts bill Medicaid. Federal Medic- ties Education Act] and Medicaid. portive of nurses in schools but real- the scope of the report because it aid authorities have questioned this KSBA has 136 districts enrolled that ize more funding is needed. includes services beyond chronic arrangement because the schools recovered $3.8 million last fiscal year. Bob Babbage said he represents health conditions. actually receive no Title V funds. De- She gave an overview of the types of ADA. He introduced Dr. Leslie Scott, Additional information from pending on the outcome of the fed- services that the districts are allowed an assistant professor at the Univer- Medicaid indicates that health de- eral review, this might be a model for to bill Medicaid for reimbursement. sity of Kentucky College of Nursing partment nurses would not be able Kentucky to consider. KSBA provides guidance on poli- and a nurse practitioner. to bill for services if school districts Mr. Knowles concluded by say- cy and procedures to school districts Dr. Scott said she has witnessed contracted for the nurses to work ing that there was a recent change in with the primary purpose of keeping the struggles and injustices fami- under district supervision. Therefore, Medicaid reimbursement that did not them in compliance with federal and lies of children with diabetes endure the arrangement is not a practical make it into the revised draft. On July state law. Many policies and proce- when it comes to ensuring safe and solution to the problem of sharing 1, Kentucky Medicaid ceased paying dures are in place for the 173 school proper care of their child’s diabetes information. The description of the the state share of health department districts participating in the policy while in school and school-related problems with sharing health and claims. The health departments will service. KSBA’s policy and procedure activities. Dr. Scott strongly sup- educational records was updated ac- have to cover that portion, which service provides updates for school ports the ADA’s goals of ensuring cordingly. currently is 20 percent and may re- districts as new laws and regulations that all students with diabetes are Staff reviewed model policies vert to 30 percent unless Congress are created and school personnel are able to effectively manage their dis- and procedures from the Kentucky extends the enhanced federal match. trained accordingly. The model poli- ease at school and at school-related School Boards Association. Some It is not clear what effect this will cy has been updated to cover KDE’s activities and most importantly, have aspects of the models are commend- have on health departments’ school new regulation on administration of equal access to all educational op- able and others need improvement. nursing services. medication. portunities. Regardless of the written policies and In response to questions from According to federal law, school The inequity of healthcare ser- procedures, Chapter 3 demonstrates Senator Stine, Mr. Knowles said that districts need to provide health ser- vices provided to Kentucky children the need to better implement school the issue of who takes calls in the vices in schools for which a physician with diabetes as well as the lack of district responsibilities. The asso- evening was not covered in the re- is not needed. KRS 156.502 allows equal access to all educational op- ciation could be especially helpful by port. The school is only responsible health services to be delegated by li- portunities has been particularly joining with regulatory agencies and for services during the school day censed personnel who have trained problematic for the past decade. other parties in carrying out Recom- or during school activities. School unlicensed personnel to perform This is primarily due to the fact that mendation 3.3. nurses should communicate with the these health services in the school at that time a significant change in The Department of Insurance primary provider when something setting. diabetes-care regimens was imple- and other sources identified barriers happens at school. This was not dis- Special Education and Section mented in the care of children due to a state mandate for coverage of cussed specifically in the report but 504 law are very complicated. KSBA to advancements in available insulin school health services in addition to is covered by Recommendation 3.3. has a Special Education Service under and delivery devices/systems. the discussion in the previous draft The report addressed the medical the KSBA Training Services, which is The Program Review report report. Chapter 4 was modified to home issue but that the issue has a subscription service to which all should incorporate more explicit and describe the federal laws, such as not been resolved. the school districts belong. Dis- forceful recommendations on how ERISA [Employee Retirement Income Senator Higdon said that in tricts have unlimited access to legal the needs of students with diabe- Security Act], that limit the state’s most instances Passport works well consultation and receive training tes are to be met. For example, the options. Considering the barriers but that Kentucky should not have a and updated information as the law report needs to make stronger rec- and potential costs, the General As- model that excludes the 16 counties changes. Ms. Combs explained IDEA ommendations on how to resolve sembly might consider whether it re- in the Passport region. He would like and Section 504. inconsistencies in services among mains worthwhile to act. The formal to see that problem addressed. In A finding in the Program Review districts. recommendation was removed. response, Mr. Knowles said that the report is that there should be more One of the biggest obstacles yet Information about grants from report has a recommendation that appropriate care and fewer limita- to be overcome is having appropriate Passport Health Plan was added to the parties get together to resolve tions with school nurses. The Ken- personnel to administer insulin, par- the report. Staff calculated that an this issue. tucky Board of Nursing’s advisory ticularly for those children who are amount roughly comparable to the Senator McGaha said that prior opinion is that a nurse shall not del- too young or unable to self-adminis- health department reimbursements to ARRA the Medicaid matching rate egate injections such as for diabetes ter insulin. in the rest of Kentucky would be was $2.33 per $1. In response to a to someone who is unlicensed. KRS According to the report, state law $10.8 million annually for the Pass- question from Senator McGaha, Mr. 156.502 generally says that licensed does not allow unlicensed personnel port region. Knowles said that under ARRA the medical staff may train and delegate to administer insulin at school. The An explanation was added to federal government pays 80 percent these functions to unlicensed school proper reading of the statute is that

58 2010 Interim LEGISLATIVE RECORD medication administration should be Senator Palmer, the School Health In response to questions from Representative Rand said that considered a nursing function only Services for Students With Chronic Representative Flood, Mr. Burnside there have been good investment if it requires substantial specialized Health Conditions in Kentucky re- said that the actuary looks at 30-year years but performance does not seem knowledge, judgment and nursing port was approved by roll call vote. window when making projections. to be what it should have been. In skill. The Board of Nursing advises Approve Minutes for June 10, The actuary assumed a 3.5 percent response, Mr. Burnside said that the that injectables such as insulin and 2010 increase annually in payroll over 30 10-year performance is below the the task of carbohydrate counting Upon motion made by Senator years. No money had ever been bor- 7.75 percent assumed rate of return can only be performed by licensed Pendleton and seconded by Repre- rowed from KRS, but the system was but that it was above this rate for 15 personnel, but insulin administra- sentative Simpson, the minutes of underfunded for 17 years. years. The actuary’s assumptions are tion and carbohydrates counting by the June 10, 2010 meeting were ap- Mr. Voytko said that the next based on 30 years. unlicensed personnel are safe and do proved by voice vote, without objec- generation is when you will see Mr. Voytko said there was noth- not require this level of specialized tion. benefits of a new tier of controlling ing unusual nationally with a return knowledge or skill. These particular Presentation on Kentucky Em- contributions. He noted that the as- of 3 percent over the past 3 years; the opinion statements from the board ployee Retirement Systems Asset/Li- set liability study is not an actuarial 7.75 percent return was not available are the crux of many children in Ken- ability Studies study of the system’s liabilities, a to anyone due to the economy. tucky schools not having adequate Mike Burnside introduced Brent prescription for plan benefits, or an In response to a statement from access to their diabetes medications Aldridge, Jim Voytko, and Tony John- assessment of the affordability of Representative Rand, Mr. Voytko said and adequately trained school per- son. contribution levels. he would not describe the system as sonnel. Mr. Voytko said they are invest- A pension fund’s funding comes unsustainable but that it might be Insulin delivery devices such ment consultants under contract from a savings program and an in- surprising as to how expensive it as pens and pumps are designed to to the Kentucky Retirement System vestment program, which can only gets. Representative Rand replied he be used by nonmedical lay persons. (KRS), Board of Trustees. Asset li- work if there are assets to invest. The was already surprised. Laypeople commonly administer in- ability studies were done for the four savings program is by far the largest In response to questions from sulin safely and accurately and can state plans. Today’s presentation driver of the financial future for these Senator McGaha, Mr. Voytko said the be trained quickly and easily. Car- covers the study for the Kentucky plans. The analysis of the future out- KRS Board of Trustees sets the allo- bohydrate counting cannot be said Employee Retirement System only. come of the plans presented today cation of assets. The board typically to require specific nursing judgment The bottom line of the studies assumes investments returns are accepts their recommendations and or skill; all that is required is reading is that the current benefit program; guaranteed, the board’s goal being monitors the allocation of assets. a food label or guide and performing existing accumulated unfunded ob- 7.75 percent. In response to questions from simple arithmetic. ligations that the system has; the Over the next 20 years, money Senator McGaha, Mr. Burnside said If the state law cannot be in- growing retirement population; the flowing out of the fund will increase that KRS has an internal compliance terpreted to allow administration by savings policy in place in House Bill steadily with the retired population officer who monitors and reports unlicensed personnel, then the law 1, which controls contribution levels; growing, yet the money flowing in by on a monthly basis. KRS’s fiduciary needs to be changed. The report pro- and growing restrictions that nega- contribution will stay steady. This bank also has responsibility for mon- vides a great deal of useful informa- tive cash flows place on the fund’s pattern is not unusual and is seen itoring. Changes in asset allocation tion about the care being provided to investment program results in a large in retirement plans across the coun- do not require changes in statute or students with diabetes in Kentucky current pension funding problem for try. Cash flow will be negative until regulation; the board makes those schools and the policies in place to Kentucky. This is likely to grow con- 2020, at which point contributions changes. Target allocations have not govern this care, but it does not go siderably over the next 5 to 15 years. and payouts will be the same. Contri- changed since 2006. far enough in recommending what Each plan is different but this equa- butions increase from the year 2020 Representative Flood noted that specific changes need to be imple- tion applies to all plans studied. because HB 1 reaches the actuarially this topic was covered in the com- mented. The report should be re- Mr. Voytko illustrated House required amount. By that time, the mittee’s Research Report 352. vised accordingly or the legislature Bill 1 through the example of pay- required amount has grown because In response to a question from should adopt these needed changes ing off a mortgage on a bridge over of shortfalls in the previous 10 years. Representative Graham, Mr. Burnside into law. time. A normal mortgage payment In the later years, the contribution said the report came out just before Sharon Mercer from the Board is constant over a period of time, rates as a percentage of payroll in- the 2008 Special Session in which HB of Nursing said she was concerned paying off the interest and amount crease dramatically. 1 was adopted. about the delegation process. [This borrowed at the same time. Using This pattern creates problems. In response to a question from topic is covered in the Board of Nurs- a payment schedule based on HB 1, First, assuming that 7.75 percent is Representative Graham, Mr. Voytko ing’s latest response to the report.] initial payments are lower but the earned on investments, the payout returned to his presentation. The In response to a question from unpaid interest in the initial period ratio is very high, almost 50 percent, first problem is that the liquidity ra- Representative Flood, Ms. Mercer is added to the balance, resulting in which makes it very hard to run an tio of the fund becomes high. The indicated that she had not been re- a significantly higher total cost com- investment program. second problem is that contribution ferring to the administration of in- pared to making the same payment In response to a question from rates rise to over 40 percent of sal- sulin. Advisory opinion statements each time period. Senator McGaha, Mr. Voytko said ary or higher. The third problem is a do not have the force of law and can In response to a question from that earned income is not included growing unfunded liability. The fourth be changed by the board. She would Representative Graham, Mr. Voytko directly on the slide showing pro- problem is that the funding ratio recommend someone ask the board said benefits in the presentation jected contributions and benefit pay- – the percentage of assets that are to revisit this issue. means the nonhazardous defined ments. in place versus the percentage that Representative Palumbo ex- pension plan. In response to a question from your actuary says you need in place plained that she does not want her In response to a question from Representative Rand about the to fund benefits that are accrued and child’s health to go before a commit- Representative Graham, Mr. Burn- 7.75 percent goal ever having been due – is the same at the end of the tee. side said that at the time when HB achieved historically, Mr. Burnside period as it was at the beginning. In response to a question from 1 [2008 Special Session] was dis- said in the fiscal year to date, they The second part to the study, which Senator Stine, Representative Flood cussed, the KRS’s actuary had said had earned 17.73 percent; in the year is much more complicated, is what replied that there was no fiscal note that HB 1 would have an effect but ended in May 2010, 17.84 percent; - happens if 7.75 percent is not fixed. or a source of funding. not for several years. He was not sure 2.6 percent for the past 3 years; 3.85 [This part was not covered due to Upon motion made by Repre- if KRS was asked to comment on the percent for the past 5 years; and 3.59 time constraints.] sentative Palumbo and seconded by payment schedule. percent for the past 10 years. Mr. Dampier, who is retired from

THE KENTUCKY GENERAL ASSEMBLY 59 state government, submitted a writ- Senator Smith said he wanted to month, Mr. Judge reviewed the state painted on barns as part of a tobacco ten statement. He summarized by change his “yes” vote for approving projects approved by the board in its heritage trail. The board agreed with noting that retirees are a renewable the report to “not voting.” He under- previous session. a GOAP staff recommendation of no resource. As state employees, they stands this issue as a parent but also During the Cumberland Farm funding because of lack of direct pro- were taxpayers and as retirees they from the perspective of schools that Products Association discussion, ducer impact. continue to pay taxes and contribute may face additional costs. Representative Comer questioned Representative Adams explained to the economy and society. It is es- Mr. Voytko concluded by saying the need for the project, for which that the funds would have benefit- sential that each retiree has a reason- that the board faces decisions in the the board approved $20,000 to re- ted a tourism project to attract visi- able retirement income that is steady coming years relating to the tradeoff model an existing warehouse for tors to Owen County. According to and reliable. between long term investments to lease to a full-service farm supply Representative Adams, the tobacco In response to a question from increase returns and having sufficient store. The Wayne County Council heritage trail had been studied ex- Senator Higdon, Mr. Voytko said that assets to pay ongoing obligations to identified a general farm supply store tensively and had considerable back- the slide covering projected contri- beneficiaries. as their No. 1 priority, Mr. Judge ex- ing from Owen County community butions as a percentage of salary did Meeting adjourned at 12:18 plained. leaders. not include the insurance fund; there p.m. The GOAP officials responded to Later in the meeting, Mr. Thom- is a separate study for that. Including several questions, mainly from Sena- as said they would provide informa- insurance would add 22 percentage TOBACCO SETTLEMENT tor McGaha, Representative McKee, tion about the Owen County project points of salary to the peak 48 per- AGREEMENT FUND and Chairman Gibson about the to committee members and indicated cent projected contributions reached OVERSIGHT COMMITTEE need and manner of funding for the a desire to work with the applicants in 2029. Minutes Breckinridge County project, which should they desire to reapply. In response to Representative July 7, 2010 was granted $6,120 by the board to The GOAP staff members also Graham’s earlier question about the Call to Order and Roll Call develop a welding training program responded to several questions from equation, Mr. Voytko said the ben- The meeting of the Tobacco Set- for area farm producers. According committee members about the Ken- efits are as written. Changes in new tlement Agreement Fund Oversight to Mr. Judge, the total budget for the tucky Association of Food Banks pro- hires and their pension benefits will Committee was held on Wednesday, project was actually $21,300, with posal to purchase Kentucky-grown take the better part of a generation July 7, 2010, at 10:00 AM, in Room a large portion of that amount to be surplus produce and distribute the to have a material effect. Accumu- 129 of the Capitol Annex. Sena- made up of in-kind services contrib- food commodities to low-income cli- lated unfunded obligations cannot tor Carroll Gibson, Chair, called the uted by welding instructors and ad- ents. GOAP staff had originally rec- be changed. Nothing can be done meeting to order, and the secretary ministrators. ommended funding the application about the growing retirement popu- called the roll. GOAP staff members also re- for $150,000 in state funds, with the lation. The savings policy in HB1 is Present were: vealed to the committee that they applicant urged to secure remain- the legislature’s decision and is under Members: Senator Carroll Gib- had discussed creation of a stand- ing funds of $100,000 from county its control. The growing restrictions son, Co-Chair; Representative Dot- alone program for counties that de- councils. But the board delayed the on the fund’s investment program tie Sims, Co-Chair; Senators David E. sire to fund the welding classes. project. will largely depend on the cash flow. Boswell, and Vernie McGaha; Repre- Discussion also turned to the Senator McGaha and Represen- More cash flow in gives investment sentatives Royce W. Adams, James guidelines that county councils use tative Comer questioned the benefits staff more assets to work with. R. Comer Jr., Charlie Hoffman, Tom in determining what preference must of the project to producers. Senator Representative Rand said bene- McKee, and Tommy Turner. be given to current or former tobacco McGaha indicated it might be a bet- fit levels should be of concern. In re- Guests: Roger Thomas, Michael growers who apply for tobacco set- ter process to give $250,000 directly sponse to a question from Represen- Judge, Joel Neaveill, Jennifer Hudnall, tlement funds locally. The GOAP of- to county councils and have them tative Rand, Mr. Burnside said benefit Christi Marksbury, and Angela Blank, ficials indicated they would forward purchase the food and distribute it. levels are set in statute. Based on the Governor’s Office of Agricultural a copy of their CAIP tobacco-depen- Representative Comer mentioned inviolable contract, benefits cannot Policy; Rodney Dick, Agricultural De- dency policy to committee mem- the desirability of obtaining county be decreased once a person begins velopment Board member; Annette bers. commitments. employment. Bridges, Division of Early Childhood They responded to Chairman Representative McKee noted Representative Rand said the Development; Patrick Smith, REACH Gibson’s observation regarding the that the project is related to legisla- General Assembly has honored its of Louisville. lack of membership turnover on tion passed in 2009 creating a state- commitment under HB 1 in a difficult LRC Staff: Lowell Atchley, Biff county councils. Mr. Thomas pointed wide program aimed at distributing budget year. He is not advocating Baker, Tom Middleton, and Kelly out that legislation enacted in the farm produce to food banks. He de- cuts in benefits but it is not possible Blevins. 2009 legislative session established a scribed the program as a “win-win” to address pension funding without Minutes of the June 2 meet- process to require rotation of council undertaking, but allowed that current considering benefits. In response, ing was approved by voice vote and member terms and to achieve more budget constraints are problematic. Mr. Burnside said he did not disagree. without objection on a motion made diversity on councils. Those chang- Mr. Thomas mentioned a similar, It is a difficult situation. Stopping by Senator Boswell and seconded by es were to take effect in July of this albeit smaller, pilot project that oper- spending is not an option due to the Chairman Gibson. year. ated with tobacco settlement funds inviolable contract. The unfunded Governor’s Office of Agricultural A project that was denied fund- last year. During the discussion, he COLA [cost of living adjustment/al- Policy Report ing, the Owen County Historical also mentioned that GOAP staff had lowance] is an issue. HB 1 reduced it Mr. Roger Thomas, Executive Di- Society, and one that the board de- met with the applicants in an at- to 1.5 percent, but even 1.5 percent rector, Governor’s Office of Agricul- layed for additional information, the tempt to scale down the budget for increases the unfunded liability. tural Policy (GOAP), Mr. Joel Neaveill, Kentucky Association of Food Banks, the latest project. Representative Rand said that he GOAP Chief of Staff, and Mr. Michael both prompted committee discus- Senator McGaha indicated he had not been told that HB 1 would Judge, GOAP Director of Operations sion. did not want to appear callous, but increase the unfunded liability. reported on the actions of the Agri- The GOAP officials responded to he said the amount sought would Representative Graham said that cultural Development Board (ADB) at several questions from Representa- not be significant on a statewide ba- many state employees retired having its June meeting. tive Adams regarding the board’s de- sis. He suggested that local garden- made relatively low salaries and that Following a survey of the Coun- nial of funding for the Owen County ers could make available their surplus reducing the COLA hurts them. It is ty Agricultural Investment Program applicant, which had sought $4,000 foodstuffs. not just an investment issue; the sys- (CAIP) and Share-use Equipment in tobacco settlement funds to pay The discussion prompted a sug- tem was underfunded for 17 years. Program projects from the previous for some murals that would be gestion from Senator Gibson, who

60 2010 Interim LEGISLATIVE RECORD proposed that regional detention other programs, although the initia- tlement Agreement Fund Oversight Commissioner Richie Farmer has is- centers could grow produce that ul- tive may partially pay for services of- Committee was held on Friday, Au- sued a press release on the issue. timately could be donated to local fered by other programs. gust 6, 2010, at 10:00 AM, in Room During discussion, Mr. Thomas food banks. Co-chair Sims pointed out that 129 of the Capitol Annex. Represen- indicated to Senator Boswell that On other issues, the GOAP of- agencies will appear before commit- tative Dottie Sims, Chair, called the the proposal should not affect burley ficials described their recent fact- tees and many times are unable to meeting to order, and the secretary tobacco used in research, rather the finding trip to North Carolina to provide administrative costs for leg- called the roll. type of leaf used in manufacturing visit with officials with the Gold Leaf islators. Later in the meeting, Ms. Present were: cigarettes. Foundation, which was established Bridges pointed out that Mr. Smith’s Members: Senator Carroll Gib- Following that initial discussion, to provide tobacco settlement funds research showed the initiative’s ad- son, Co-Chair; Representative Dot- the committee, acting on a motion for economic impact assistance to ministrative costs were 6 percent. tie Sims, Co-Chair; Senators David by Representative Hoffman, went economically distressed or tobacco- Responding to Representative E. Boswell and Damon Thayer; Rep- on record in asking WHO to exempt dependent regions that state. It also Adams, Ms. Bridges said their pro- resentatives Royce W. Adams, James burley tobacco from the proposal. was revealed that Mr. Judge will be grams extend statewide. Also, grants R. Comer Jr., Charlie Hoffman, Tom In subsequent comments, Rep- leaving the GOAP to return to East- funds are given out on a proportional McKee, and Tommy Turner. resentative McKee pointed out that ern Kentucky University, where he basis, based on the size of counties. Guests: Roger Thomas, Joel burley tobacco can be seen growing taught for several years before join- She responded to Senator Mc- Neaveill, and Bill McCloskey, Gov- now in parts of central Kentucky. He ing the Department of Agriculture Gaha, who followed up on Sena- ernor’s Office of Agriculture Policy; indicated that singling out burley and then later the GOAP. tor Gibson’s questions, saying that, Irene Centers, Bobbye Gray, Dennis does little to help anyone. Division of Early Childhood De- while Early Childhood Development Peyton, Mark Sizemore, Department Tobacco Prevention and Cessa- velopment Report receives approximately $25 million for Public Health; Van Ingram, Amy tion Program Report Ms. Annette Bridges, Director, per year in tobacco settlement funds, Andrews, Heather Wainscott, Office Ms. Irene Centers, Program Division of Early Childhood Develop- those funds are used in tandem with, of Drug Control Policy; Rose John- Manager, appeared before the com- ment, reported on the activities of or an extension of, other funds re- son, Derrick Johnson, Staci Nurse, mittee to report on the activities of the agency. Joining her was Mr. Pat- ceived by programs. and Emily Johnson. her agency in utilizing tobacco set- rick Smith, a Community Planner and Senator McGaha pointed out LRC Staff: Lowell Atchley, Biff tlement funds. She reviewed agency Evaluation Researcher with REACH that a budget sheet provided to the Baker, and Kelly Blevins. budget figures for FY 2010 and FY of Louisville, who discussed an eco- committee did not list the sepa- Minutes of the July 7 meeting 2011, smoking rate data, agency anti- nomic evaluation of KIDS NOW, a rate programs, although the sheet were approved by voice vote and smoking activities, other programs major part of the Early Childhood showed month-by-month revenues without objection on a motion made aimed at reducing tobacco use, and Development Initiative. and expenses. Noting a copying by Senator Boswell and seconded by profiled the activities of the Barren problem, Ms. Bridges promised to Chairman Gibson. River District Health Department. In remarks preceding Mr. Smith’s get a new budget sheet to commit- At the outset of the meeting, Ms. Centers responded to ques- presentation, Ms. Bridges gave an tee members. the committee adopted a resolution tions from Senator Gibson in two in- overview of the Early Childhood De- Responding also to Senator Mc- memorializing and honoring the late stances during the meeting. In initial velopment Initiative and its three Gaha, she described how funds are Janet Lynn (Coleman) Harris, the wife responses, she told the committee main components – Assuring Ma- spent to correct dental caries that of Senator Ernie Harris. Co-chair that the agency reduced ternal and Child Health, Supporting develop in younger children. Governor’s Office of Agricultural its FY 2010 budget by $230,000 by Families, and Enhancing Early Care Representative McKee said the Policy Report monitoring internal expenses. Ac- and Education. $88 million in savings was “very im- Mr. Roger Thomas, Executive cording to Ms. Centers, they dealt Next, Mr. Smith provided an pressive.” Director, Governor’s Office of Ag- with a second budget reduction late overview of the study, which was As the meeting was ending, Ms. ricultural Policy (GOAP), Mr. Joel in the fiscal year, which would have sought by the Kentucky Department Bridges responded to Chairman Gib- Neaveill, GOAP Chief of Staff, and affected funding to health depart- of Education and the Early Childhood son, who asked what would happen Mr. Bill McCloskey, Director of Finan- ments, by using some federal grant Development Authority. The report if $25 million in tobacco settlement cial Services, reported on the actions funds. She also said a carry-over focused mainly on the direct cost funds were no longer available. Ms. of the Agricultural Development should help maintain funding levels savings, such as savings achieved Bridges said they hoped to “make a Board (ADB) at its July meeting. Mr. at local departments in early FY 2011. through the avoidance of medical case” for funding, but indicated that Thomas noted that Mr. McCloskey Later in the meeting, Ms. Centers re- treatments, hospital costs, or reduc- they realize the tobacco funds will would be taking on additional duties viewed the agency’s main funding tion of special education costs. not last forever. If funds are spent on with the agency following the recent sources for the fiscal year -- Master Mr. Smith told the committee early childhood development, then departure of Michael Judge. Settlement Agreement funds, federal that their study estimated $88 mil- perhaps the state will avoid some After a short report on the grant funds, and a federal stimulus lion in cost savings (costs avoided) costs later, she indicated to the com- County Agricultural Investment Pro- grant. She indicated the federal stim- for KIDS NOW programs for which mittee, pointing out that coordina- gram (CAIP) and other programs, Mr. ulus grant funds are specific regard- data were available in 2008. He not- tion will need to improve. Thomas briefed the committee on a ing how they can be used. ed that they applied conservative es- Documents distributed during World Health Organization proposal Responding to Representative timates in their work. the committee meeting are available to ban certain distinctively flavored Adams, who asked how cessation Following Mr. Smith’s segment, with meeting materials in the LRC Li- ingredients in tobacco products. funds are divided between adults and Ms. Bridges responded to committee brary. The meeting adjourned at ap- It has been pointed out the WHO young people, Ms. Centers indicated members’ questions. She indicated proximately 11:45 a.m. guidelines would eliminate the en- that about $2.27 million is allocated she would need to respond later to tire category of traditional American to health departments, which, in Chairman Gibson’s question regard- blend tobacco that contain burley turn aim much of their anti-tobacco ing many people work for the Early TOBACCO SETTLEMENT tobacco. Contending the proposal work at youth prevention and com- Childhood Development program, AGREEMENT FUND would have an adverse effect on bur- munity based activities. both in the Department of Educa- OVERSIGHT COMMITTEE ley farmers, Mr. Thomas indicated She told Representative McKee tion and in the Cabinet for Health Minutes the Governor has sent a letter to an that adult smoking rates in Kentucky and Family Services. She responded August 6, 2010 official in Norway, a country that has stand at to 25-26 percent. She pre- the Senator Gibson that they hoped Call to Order and Roll Call taken the lead in pushing for the to- dicted the rates will be comparable there is no overlap or duplication of The meeting of the Tobacco Set- bacco regulation, and Agricultural in 2010. She said youth smoking

THE KENTUCKY GENERAL ASSEMBLY 61 rates have been declining, with the lenges for states.” program, when there are so many un- current rate for middle school stu- Medicaid, Task Force Co-Chair Rep. Jim- knowns that are going to happen next dents in Kentucky at 9.7 percent. She mie Lee, D-Elizabethtown, said it is year and the year, after or the year after stressed the role of legislators, who from page 3 clear a lot of questions about the new that…you won’t be able to establish can have an impact on school curri- federal law remain. any permanency,” said Lee, who said cula and also stand as role models for better pharmacy managers, Folkemer young people. “I’ve read this (law) five or six there will be two systems--traditional Kentucky Agency for Substance said as she shared recommendations times, and every time I read it I’m to- Medicaid and the new eligibles under Abuse Policy Program Report other states have made to prepare for tally amazed you can put together that 133 percent of poverty—and, in some Three officials with the Ken- the future of Medicaid. large a piece of legislation without a instances, the systems will overlap. tucky Agency for Substance Abuse “We’re getting questions about clue on how to implement it,” said How to overcome many of those Policy (KY-ASAP) appeared to brief what is going to happen between now Lee. He added that in his view, many challenges will be up to the states, said the committee on that agency’s use and 2014 that nobody can really an- provisions of the law will never be en- Folkemer. of MSA funds. Speaking to the com- swer yet,” she said. “We’re really very mittee was: Mr. Van Ingram, Execu- acted. “There are a whole range of deci- tive Director, Office of Drug Control much beginning the process of under- “To those of us who are look- sions…that you at the state level will Policy, Ms. Amy Andrews, KY-ASAP standing the opportunities and chal- ing at huge deficits in our Medicaid need to make,” she said. State Coordinator, and Ms. Heather Wainscott, Branch Manager, Office of Drug Control Policy (ODCP). In initial remarks, Mr. Ingram indicated that KY-ASAP also was required to reduce its budget in the LRC Publications last fiscal year. Because funds were committed to local boards when the budget reductions were initi- Informational Bulletins ated, KY-ASAP met the shortfall by using some ODCP funds and some carry-over moneys, according to Mr. 232 General Assembly Action 2010 Regular Session Ingram. In subsequent remarks, Ms. Andrews noted that while local, sin- gle-county boards received grants of 231 Final Committee Reports of the Interim, Joint, Special, and only $15,600, they are able to raise local funds for substance abuse ef- Statutory Committees forts. In her remarks, Ms. Wainscott pinpointed some individual efforts, such as the Partnership for a Drug- 230 Issues Confronting the 2010 Kentucky General Assembly Free Kentucky. Responding to Senator Gibson, Ms. Andrews outlined how local 229 General Assembly Action 2009 Regular Session boards are to be structured. Senator Gibson stressed the need to include 228 Final Reports of the Interim Joint, Special, and Statutory Com- as many youth on the local boards as possible. In response, Ms. Andrews gave some examples of regional and mittees 2008 county programs that attempt to place attention on under age alcohol and drug use. 227 Issues Confronting the 2009 General Assembly An update of In responses to Representa- tive Adams, they stressed that the Informational Bulletin No. 224 (2008) $128,800 given to the Northern Kentucky board is spent evenly in all eight counties, even though some 226 General Assembly Action, Regular Session 2008 counties are more populous than others. Responding to Co-chair Sims, 225 Final Reports of the Interim Joint, Special and Statutory Com- Mr. Ingram, a former law enforce- ment officer, indicated that drug use is constantly evolving. Currently, mittees (2007) he said, prescription drug abuse is a problem among young people. He 224 Issues Confronting the 2008 General Assembly said one in five young people have admitted using prescription drugs not prescribed to them. He noted a positive aspect KY-ASAP is that it al- lows local boards to generally attack problems at the community level. Mr. Ingram responded to Co- chair Sims that people tend to estab- lish their own journey into drug use. Documents distributed during the committee meeting are available with meeting materials in the LRC Library. The meeting adjourned at ap- proximately 11:30 a.m.

62 2010 Interim LEGISLATIVE RECORD THE KENTUCKY GENERAL ASSEMBLY 63 David L. Williams Greg Stumbo The Kentucky Legislative Research Commis- SENATE PRESIDENT HOUSE SPEAKER sion is a 16-member committee of the major- Katie Kratz Stine Larry Clark ity and minority leadership of the Kentucky PRESIDENT PRO TEM SPEAKER PRO TEM Senate and House of Representatives. Under Robert Stivers Rocky Adkins Chapter 7 of the Kentucky Revised Statutes, Majority FLOOR LEADER MAJORITY FLOOR LEADER the LRC constitutes the administrative office for the General Assembly. Its director serves as Ed Worley Jeff Hoover chief administrative officer of the Legislature MINORITY FLOOR LEADER MINORITY FLOOR LEADER when it isn’t in session. Dan Seum Robert Damron MAJORITY CAUCUS CHAIRMAN MAJORITY CAUCUS CHAIRMAN The Commission and its staff, by law and by practice, perform numerous fact-finding Johnny Ray Turner Bob DeWeese and service functions for members of the MINORITY CAUCUS CHAIRMAN MINORITY CAUCUS CHAIRMAN Legislature, employing professional, clerical Carroll Gibson John Will Stacy and other employees required when the MAJORITY WHIP MAJORITY WHIP General Assembly is in session and during Jerry Rhoads David Floyd the interim period between sessions. These MINORITY WHIP MINORITY WHIP employees, in turn, assist committees and individual legislators in preparing legislation. 2010 Interim Other services include conducting studies Bobby Sherman, Director and investigations, organizing and staffing LEGISLATIVE Legislative committee meetings and public hearings, Research Commission maintaining official legislative records and RECORD other reference materials, providing infor- Robert Jenkins mation about the Legislature to the public, Published monthly by the Deputy Director for Committee compiling and publishing administrative Legislative Research Commission, and Staff Coordination regulations, administering a legislative intern the Interim RECORD is designed program, conducting orientation programs to inform the citizens of Kentucky Rob Weber for new legislators, and publishing a daily of the between-sessions work of the Public Information Officer index and summary of legislative actions General Assembly. during sessions. Paper subscriptions are free upon Joe Cox Publications and Printing Officer The LRC is also responsible for statute revi- request. Contact LRC’s Public sion, publishing and distributing the Acts Information Office, Capitol Annex, Rebecca Mullins Hanchett and Journals following sessions, and for Frankfort, KY 40601, 502-564- Editor, Typography and Design maintaining furnishings, equipment and 8100, ext. 307 to subscribe. supplies for the Legislature. It also functions Mike Sunseri The Interim RECORD can also Chief Photographer as Kentucky’s Commission on Interstate be read on-line at www.lrc.ky.gov/ Cooperation in carrying out the program legislation.htm. If you have a paper Karen Bourne of the Council of State Governments as it subscription and would like to end Jeff Fossett relates to Kentucky. Steve Gatewood your subscription and read the Bruce Phillips Interim RECORD on-line only, Bud Kraft please call 502-564-8100, ext. 307 or Keith Krey send a request by e-mail to bruce. Jeanie Mitchell [email protected]. Scott Payton Chuck Truesdell Public Information Staff Stories may be reprinted without permission, although credit is appreciated.

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